Sales – the winner is often determined by half time

Winning a B2B sale requires not only a lot of skill but also a substantial commitment of time.  Sales cycles are long, multiple players are involved in the decision process, and the competition is keen.

Recently we came across an interesting post by Steve Martin in the Harvard Business Review that reported on a study about when customers make their final decision on who the winner is going to be.  Let’s take a look at the findings and then review what they mean for sales reps.

Sales success by half time

Martin interviewed a 1,000 customers as part of a win-loss analysis study. He found – “Approximately 30% of the time, the winner of the sales cycle was determined before the official selection process started. Another 45% of the time, customers had already made up their minds about whom they were going to buy from about halfway through the process.”

This means that 75% of the time, customers make their final decision halfway through the selection process.

If these results are even half true, it’s a telling story.  This means many sales people may be doing the right thing but at the wrong time. So, what are some of the best practices for addressing such a scenario?  Let’s explore three:

  • Make the call. The results of the study indicate that it is important to know whether you are really a viable competitor for the opportunity.  It takes too much time, effort, and money to simply play it out to the end all the time.  Sometimes it is better to make the call and make the investment of those resources in another account.
  • Lay the groundwork for next time. If you do decide to walk away make sure all the bridges are still standing.  Make sure the customer knows why you are not going to continue to pursue the opportunity.  This is also a great time to correct any misperception about your company and remind folks of your strengths so the groundwork is laid for the future.

As a final note it was also interesting that in the study – “In almost every case, the decision wasn’t even close between the top two choices.”  If that is the case, there must be signals along the way whether you are number one or number two.

In some markets these findings are critically important.  For example, if you have a large number of potential accounts and a small sales force, this one bit of information could be a game changer as to your overall sales strategy.

If you found this post helpful, you might want to join the conversation and subscribe to the Sales Training Connection.

©2012 Sales Horizons, LLC

Technorati Tags: , , ,

About Richard Ruff

For more than 30 years Dr. Richard Ruff and Dr. Janet Spirer - the founders of Sales Horizons - have worked with the Fortune 1000 - such as UPS, Canon USA, Smith & Nephew, Boston Scientific, Owens & Minor, Textron - to design and develop sales training programs. During his career Dick has authored numerous articles related to sales effectiveness and co-authored "Managing Major Sales", a book about sales management, "Parlez-Vous Business" which helps sales people integrate the language of business into the sales process, and "Getting Partnering Right" – a research based work on the best practices for forming strategic selling alliances. Dr. Ruff received his Ph.D. in Organizational Psychology from the University of Tennessee and a B.S. from Rennsselaer Polytechnic Institute.
This entry was posted in Sales Best Practices, Sales Strategy, Sales Training, Sales Training Best Practices, Uncategorized and tagged , , , . Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>