Sales Drive - Growth and Competitive Advantages through Sales
"95 percent of our core competence lies in sales," replied Prof. Dr. h.c. mult. Reinhold Würth to my question of whether he would describe his company Würth as a sales-oriented company, as a "Sales Driven Company." A success story that is also suitable for other companies? From my point of view, clearly YES. But what does one actually understand by the often-quoted "core competencies"?
Core competencies arise from the combination of knowledge and skills in specific areas. They are the basis for strategic competitive advantages in management. Every company that works strategically professionally will therefore deal with the topic of core competencies and their development and maintenance. It is rare for companies to build core competencies in sales, as Würth does. Sales is for most companies the channel or interface to the customer, a part of the marketing mix, an operational function. This falls short of the possibilities. I refer to companies as Sales Driven Companies that consider sales as a differentiating factor in competition. They strive for optimizing sales and integrating it holistically into the company to effectively differentiate themselves from the competition and grow above average.
The prerequisites for the success of your company as a Sales Driven Company are the following aspects:
- The sales itself must create real added value for the customers.
- This added value must be appreciated and perceived by customers.
- Your sales approach should not be easily imitated by the competition.
"Sales Drive" in this sense is a means of differentiation. It can be developed and utilized in competition alone or in combination with other differentiating factors (e.g. innovation, product advantages, etc.).
To turn a company into a true Sales Driven Company, aligning the company as a whole towards sales orientation, you should consider the following components.
Strategy of a Sales Driven Company
How do you differentiate yourself today compared to the competition? Most companies do not have a clear answer to this. Genuine advantages are rare today. Could sales be a differentiating factor for your company? If yes, this topic becomes a top management responsibility from today onwards. Is sales part of your strategy? Is it mentioned there? What does your company really need to do to be better than the competitors?
Structures and Processes of a Sales Driven Company
"Structure follows Strategy," also applies here. If sales is to be your competitive factor, you must anchor it accordingly. Is sales anchored at the executive level, the C-level? Does this person also have the necessary expertise, or was the responsibility merely delegated away? Have you created structures and processes that give sales the necessary enforcement power? Do you know your sales processes? Can you measure and systematically optimize them?
Systems of a Sales Driven Company
"Sales Drive" is generated by aligning your systems optimally for sales tasks. Do you have a powerful Customer Relationship Management (CRM) system, for example? Even more important is the question: Does this system really support the processes and is it used by employees convincingly?
Culture of a Sales Driven Company
The dimension "culture" consists of two elements here. Firstly, the direct corporate culture, the values, behaviors, norms, and other historically developed aspects of the work style in the company. Does your corporate culture support sales? Do your employees (not just those in sales) think and work in a sales-oriented manner? In addition, there is the leadership culture, which is primarily shaped by the behavior of leaders. Do your leaders exemplify sales orientation? Are they involved in sales and do they support it?
Employee Competencies of a Sales Driven Company
This aspect includes all activities of personnel development, especially training, career paths, integration of new employees, and formal and informal socialization processes. I like to speak today of the necessary "intellectualization of sales." Personal selling only has a future if it is done intelligently and strategically. Do you systematically develop sales-oriented competencies of employees and especially of leaders?
Once a company has created the prerequisites that distinguish a Sales Driven Company, it should intensively focus on the employees. Our experiences from various research and consulting projects show that so-called "Sales Driven People" are not born. Their skills and abilities can be learned. They have nothing to do with personality. What distinguishes employees who are "sales driven" and who are significantly more successful in sales than average or less successful employees? And how do you uncover these secrets of success? Well, we look at performance indicators and examine what these individuals systematically do better and differently than others. It is particularly the following factors:
Sales Drive is based on Diligence
It is trivial, but they are simply more successful because they are significantly more diligent. They make many more contacts and thus fill the so-called sales funnel with more customers to work with further.
Systematic Customer Segmentation Focuses Sales Drive
Immediately we realize that diligence alone is not enough. It is about addressing the right customers or working with them further after a brief evaluation. In a project at the University of St. Gallen, top salespeople made 100% more A-contacts, 50% more B-contacts, and the same number of C-contacts as average salespeople. A wonderful example of diligence and focus. Sales Drive with added value and high prices.
Good sales in demanding markets is intelligent today. Sales Driven People analyze their customers precisely and manage to offer added value that competitors (also called "admirers") cannot provide. In this way, they can command higher prices and defend them confidently. Note: Despite the need for in-depth consultation, traditional sales skills remain essential. Sales end with closures, not consultations!
From satisfaction research, we have long known: Customers are satisfied when their expectations are exceeded. This is demanding, especially in the long run, but that's exactly what it's about. Surprising the customer. For top salespeople, it's a basic attitude.
Conclusion: Sales Drive is a factor for competition and growth. Possible starting points for companies and individuals are known. The implementation is in your hands. For further inspiration, questions, and projects, I am at your disposal for you and your teams.
About the Author
Prof. Dr. Dirk Zupancic is an independent entrepreneur, supervisory and advisory board member. He is also a habilitated lecturer at the University of St. Gallen and a Top 100 Speaker at Speakers Excellence. He advises and supports companies in developing Sales Drive to create sustainable competitive advantages and growth.
Learn more about our Top 100 Speaker Prof. Dr. Dirk Zupancic at: https://www.speakers-excellence.de/redner/dirk-zupancic-leadership.html
