How do you measure sales success?
Is it all about making quota or is it about having customers that like to work with you? If you were to judge by the way that most sales people are managed, goaled and rewarded, you would say that the only thing that matters is the achievement of quota. What you measure is what you get! So it is little wonder that many companies find it very hard to manage the difficult dichotomy between making the sales number and maintaining happy and delighted customers.
Do your customers need to like you?
There are many businesses that might focus on delighting the customer, and use ‘customer sat’ as a key measure of success. But customers can be very happy and not buy anything. That doesn’t enable sales success does it? Of course the reality is that both are important. But there’s the conundrum. How does a sales leader manage the joint goals of sales quota and customer satisfaction? On the positive side we can see that happy, delighted customers are more likely to be loyal, and thereby more likely to be returning, to be repeat-buy customers. Happy customers will be more likely to provide good references and even introductions to potential prospects. But do happy customers actually ‘like’ the vendor sales people? Presumably they grew to trust them, otherwise they would not have bought from them, but do they need to like them?
The importance of trust
“TRUST – LIKE – DO THE JOB” these are the 3 key tests of any partnership and a buy/sell
partnership is no different. Customers must trust the vendor. They must like the vendor (meaning their people, especially the sales people). And the vendor must be able to do the job that they promised to do
when they sold their solution. The problem for sales teams is that in an increasingly competitive marketplace there are many, many different providers who are actually perfectly capable of ‘doing the job’. Providing the solution just gets you a seat at the table.
How customers decide to buy
Customers make buying decisions based on the sales team and the service, support, implementation team that they feel they can trust and the one that they feel they will actually enjoy working with.
If you are selling a complex solution, or a solution which will involve a long-term vendor/customer relationship, being ‘liked’ is as important as providing a win-win solution. You’re going to be in this together for the long-term. It’s not enough just to be able to say you made quota this year when you made the sale if you lose all the other sales in the future. Or is it?
The answer probably lies in whether you work for a company or a manager who only cares about the quarterly numbers, or one with an eye on long-term, sustainable success.
The importance of customer satisfaction
With so many companies changing their typical go-to-market model to focus more on ‘software-as-a-service’ and other similar service-based delivery models, it will become increasingly important to measure, motivate and incentivize sales teams to deliver long-term customer-satisfaction, not just short-term business results. Many sales teams are ill-equipped to be successful in this new market because they have spent their entire careers chasing the monthly or quarterly target with little regard to the next 2-3 years.
It’s no wonder that so many companies are focused on trying to improve the consultative selling skills of their sales teams.