Ten Reasons Salespeople Lose Deals
The following post is in response to the Harvard Business Review blog post, Ten Reasons Salespeople Lose Deals – Harvard Business Review.
Dave Christofaro’s 10 reasons for why salespeople lose deals:
- No Decision – With the global economy growing slowly, it’s still critical for each business decision to be based on Value/ROI. One of the core fundamentals of Solution Selling® is Value. It includes Verifiable Outcomes, specifically, the Evaluation Plan. This enables a salesperson to validate if the buyer commits to move forward toward a buying decision. When a buyer won’t commit to the steps in an Evaluation Plan, it may be an indication that either a competitor is preferred or a No Decision outcome is likely.
- Stalled Sales Cycle – Verifiable Outcomes enable a sales person to continually test/validate if a buyer is still moving forward in their buying cycle. If the buyer stalls, then the salesperson can work to understand why and reallocate their time to other opportunities, thereby improving their efficiency.
- Inability to Penetrate New Accounts – The business development tools in Solution Selling® improve penetration by targeting business issues (as opposed to product) and positioning Value.
- Product Commoditization – The Consultative Dialogue Models (9-Block, 6-Block, 4-Block) in Solution Selling® integrate key differentiators to enable a salesperson to differentiate a product that may be commoditized.
- Price vs. Value – The Value Cycle in Solution Selling® not only identifies an Initial Value Proposition. The salesperson also works with the buyer to refine that value and have them take “ownership” of it, making it THEIR value as opposed to your value.
- 800-Pound Gorilla – While the “Gorillas” will certainly win their share of business, buyers must still prove value and ROI (see No Decision above). The salespeople that do that best will win their share against the “Gorillas.”
- “Nice-to-Have” Product – Again, this comes back to establishing value early (initial), and then refining it with the buyer so that they own it.
- Internal Sale – The 1st step is identifying the buyer’s internal selling process and then, supporting them as they work to navigate that process. Solution Selling® helps the salesperson with this complex task by providing the following:
- “Three Sales within a Sale”
- Transition Issues & Capabilities Worksheet and Email
- Evaluation Plan
- Administrivia – Solution Selling for CRM (SS4CRM) will align the selling process with virtually any CRM system.
- Pre-Sales Resources – Pre-Sales Resources are typically scarce, so allocating them to an opportunity typically requires some level of qualification of that opportunity. Solution Selling® helps sellers and managers better qualify opportunities through PPVVC (Pain, Power, Vision, Value Control). If salespeople apply PPVVC, then their opportunities will be better qualified (or disqualified, meaning that little to no resources should be allocated), and their request for pre-sales resources will be better justified.