Upside down, you’re turning me
Lyric from the song ‘Upside Down’
By Diana Ross
I am continually surprised to hear the approaches some leaders take to grow their companies.
The head of finance of a third-generation family manufacturing company told me about his company, whose revenues were declining without any sign of stopping. He was curious to know whether his expectations of the sales group were off base. They were not.
Still, the organization’s leadership remained resistant to changing what was obviously not working.
The company could not quickly correct the problem because it ignored some go-to-market fundamentals. Further compounding its problems, it had never developed a cohesive strategy from which to work.
Without a plan and supporting systems, the Sales Manager was reluctant to provide a forecast for the next three months. Ouch!
How could this have happened to such a long-tenured organization? Could it happen to you?
Does your company have a clearly defined go-to-market strategy? What makes a go-to-market strategy upside-down or right-side up? What rules can you follow to best set yourself and your organization up for success?
Does your company have a defined go-to-market strategy?
Unfortunately, the answer for the company mentioned above was no.
The company had never determined how it differentiated itself from its competitors or what made it indispensable to its clients. Consequently, it had no specific points of focus on which to rely.
As a result, it is incredibly vulnerable to market downturns, shifting customer preferences, or changes in the competitive landscape.
Without a plan, they were flying blind and making mistakes.
What makes a go-to-market strategy upside-down or right-side-up?
The organization has an excellent board member adept at new product development, and the company is embarking on that path. The problem is that regardless of how viable the products turn out to be in the medium to long term, the approach offers no help in the short term, which must be remedied. It is a distraction that removes their focus from where it needs to be.
The new offerings will be sold to new markets that take time to develop. Their success is unproven, and their outcome is uncertain. It would be a different story if there were interest and demand from its existing customers.
Without realizing it, leaders often abandon the lowest-hanging fruit before those opportunities have been exhausted and take paths that are more challenging than they need to be.
Many companies mistakenly believe that selling new products and services to new customers is their best growth option. I find this perplexing because it is the riskiest, most challenging, most protracted, and most expensive way to increase Sales. It represents an upside-down strategy.
Would you rather:
- reduce your risk?
- take the easier route?
- shorten your Sales Cycles?
- spend less money?
If so, please follow these fundamental rules of thumb when prioritizing the initiatives that make up your sales and marketing strategies.
- The easiest, fastest, best way to grow revenues is by selling more of the same products and services to the same customers.
WHY? You are already in a relationship with them and have earned their trust with your product, service offerings, and salesmanship. The most challenging obstacles to generating sales have already been resolved in this scenario.
- The second-best way to increase Sales is by selling something New to an Existing Customer. Because you are already in a relationship with them, and they have already extended their trust in you.
WHY? You have trust and rapport. You are now requesting that customers expand their confidence level in your company into other areas.
- The third-best way to grow revenues involves selling your
Existing Product or Service, for which you already have market credibility, to a New Customer.
WHY? While you have not yet established a relationship with them, you have a proven track record of success servicing other customers who share their problems and aspirations with your existing areas of expertise.
- Selling something new to a new customer is the riskiest, most challenging, and most expensive way to grow revenues.
WHY? In this scenario, you must develop the customer’s trust and credibility in yourself and your company and their trust in the product or service you are introducing to the market.
Thus, you cannot rely on your existing relationship or previous market successes as a point of strength to leverage your Selling and Marketing efforts.
When sales decline, all marketing and sales efforts should focus on the first two options, primarily the top one. No energy should be placed on the third or fourth Sales options until the top two have been exhausted. Choosing to start here would be upside down.
Growing sales is difficult enough. Why make it any more complicated than it needs to be?
Please follow the “right-side-up progression” to grow your sales while reducing your risk, selling faster and more efficiently, and spending less Money.
- Same to Same
- New to Same
- Same to New
- New to New
These are some fundamental go-to-market rules to follow. You ignore them at your peril. Preferably, you and your company will build off its top options with a coherent strategy, supporting plan, systems, and processes.
Worthy Considerations:
- Does your company have a clearly defined go-to-market strategy? If so, what fundamentals is it based on?
- Does your organization follow the same-to-same, new-to-same, same-to-new, and new-to-new progression in its Selling and Marketing efforts?
- Do your people know the organization’s strategy and how they can contribute? What systems and processes do you employ to support your go-to-market strategy?
- Have you determined how your company differentiates itself?
- Does a right-side-up approach make sense to you? In what ways does your company violate it?
If you want to discuss ways to develop and grow your leadership to benefit yourself, your team, your family, or your organization, please reach out to me. I welcome the connection.
Robert Hackman, Principal, 4C Consulting and Coaching, helps people live and lead with fewer regrets. He grows and develops leaders through executive coaching consulting, facilitation, and training of individuals, teams, and organizations. He is committed to Diversity, Equity, and Inclusion. He facilitates trusting environments that promote uncommonly candid conversations. Rob is also passionate about the power of developing Legacy Mindsets and has conducted over 50 Legacy interviews with people to date.
A serious man with a dry sense of humor who loves absurdity can often be found hiking rocky elevations or making music playlists. His mixes, including Pandemic Playlists and Music About Men, among others, can be found on Spotify.
Bravely bring your curiosity to a conversation with Rob, schedule via voice or text @ 484.800.2203 or rhackman@4cconsulting.net.