Strategy: What are the best approaches to define good sales strategies?
Maximizing sales outcome with strategy.
Strategy is key to any success. Planning is everything but also narrowing the focus. As a human, team or company you operate with limited resources and need to efficiently get to your goals. The strategy definition exercise has the ultimate objective of defining the lowest resistance and effort pathway to success. It starts with substantial knowledge of your industry and customers. Following is a high level view of those strategic exercises. First the Go-To-Market strategy, which aims to define at a high level how you are going to crack and increase your market penetration. Second, the sales strategy, which aims to define how you are going to actually acquire customers and profitable bookings. I am mentioning right away profitable because it is very easy for sales to sell things below what they are truly worth. The sales strategy should encompass how the tactics, approaches, mindset and tools the sales team is going to utilize to price right and negotiate terms in line with the business and cash flow needs. Let’s now take a deeper look at both levels of the strategic process.
Go-To-Market (GTM) Strategy
A GTM strategy is a comprehensive plan that encompasses the entire process of bringing a product or service to market. It is a broader concept that includes the sales strategy as one of its components. A GTM strategy typically includes:
Market Research: Analyzing the market landscape, including target audience, competitors, and industry trends.
Product Positioning: Developing a unique value proposition that highlights the benefits and features of the product or service.
Marketing Strategy: Outlining the overall approach to promoting the product or service, including messaging, channels, and tactics.
Pricing: Determining the optimal pricing strategy based on market conditions, competition, and perceived value.
Distribution: Selecting the most effective channels for delivering the product or service to customers.
Sales Strategy: (As described below)
Sales Strategy
A sales strategy is a detailed plan that outlines the specific tactics and actions a sales team will implement to achieve revenue goals and acquire new customers. It focuses on the operational aspects of selling a product or service and typically includes:
Target Market & Customer Segments: Identifying the specific group of customers most likely to purchase the product or service.
Sales Objectives: Setting clear and measurable goals for the sales team, such as revenue targets or customer acquisition numbers.
Sales Methodology: Determining the overall approach to selling, including the sales process, tactics, and techniques used to engage and convert prospects.
Sales Channels: Selecting the most effective platforms and mediums for reaching the target market.
Sales Team Structure: Defining roles and responsibilities of team members and establishing a clear hierarchy.
Sales Tools and Resources: Utilizing technology and software to streamline processes, track performance, and enhance overall efficiency.
Competitive Analysis: Evaluating strengths and weaknesses of competitors to identify opportunities for differentiation.
Sales Messaging & Collaterals: Crafting compelling communication that resonates with the target market. This includes defining the content also called collaterals to use in the different stages of the sales process.
