How to Sell Strategically

If you want to maximize your sales performance, take a strategic approach to selling. After all, wouldn't you agree that "the 80/20 rule" applies to customers, where approximately 20 percent of customers produce approximately 80 percent of sales?

The starting point for strategic selling is figuring out a) which customers produce the bulk of your sales, and b) what they are buying. Armed with this information, you can strategically plan how to increase sales.

Critical Data Elements

If you want to sell strategically, you need to have access to specific data elements. Plus, you need to be willing to perform data analysis.

Which data elements do you need? This list provides a reasonable starting point:

  • Customer Name
  • Revenue by Month by Customer
  • Gross Margin or Gross Profit by Month by Customer (this is only necessary if it impacts your performance measurements)
  • Product or Service Name (for each product or service purchased by each customer)
  • Product or Service Quantity (for each product or service purchased by each customer)
  • Product or Service Unit Price (for each product or service purchased by each customer)
  • Product or Service Extended Price (quantity x unit price)
This data can be used to analyze the buying habits of your customers. Sort it in various ways to answer the following questions:
  • Which customers buy the most from you?
  • What is the trend for each customer's purchases? Are they buying more or less when you compare the current month to preceding months? How about when you compare the current month to the same month in the previous year?
  • Which products or services are they buying?
  • Are the amounts purchased in line with your expectations and the commitments that have been made by your customers?
  • Which products or services are they not buying?
  • Why aren't they buying these other products or services?
Once you have completed the first stage of analysis, consider this next set of questions:
  • How much time should you allocate to each customer in your territory? (Tip: You should spend 80 percent of your time with the customers that buy the most and/or offer the greatest potential for sales growth.)
  • What is your plan for increasing sales to each of your customers? (This includes selling more of what they have already been buying, and selling other products or services that they haven't purchased from you previously.)
  • Which new prospects should you pursue? (Tip: Which prospects can your existing customers refer you to? Which prospects have the greatest potential to produce significant sales?)
It may not be easy for companies to extract the data that is required to support strategic selling. However, arming salespeople with this data is the best investment a company can possibly make. Strategic selling enables salespeople to maximize their sales, which in turn maximizes the company's overall sales and profitability.

How frequently should the data be made available to salespeople? If sales cycles are relatively short, it would be ideal for the data to be available on demand, with the minimum frequency being weekly. For longer sales cycles, providing the data on a monthly basis may be adequate.

Strategic selling begins with data availability. If you are going to maximize sales, you need to be able to analyze your customers' buying patterns to determine how to prioritize your efforts. Which customers should you spend the bulk of your time with? How much time should you allocate to each customer? How will you increase sales to specific customers? Which new prospects should you pursue?

Plan your work, work your plan, and compare your results frequently against your quota and personal goals. Sell strategically to maximize your sales, minimize unpleasant surprises, and maximize your earnings!

Copyright 2005 -- Alan Rigg

Sales performance expert Alan Rigg is the author of How to Beat the 80/20 Rule in Selling: Why Most Salespeople Don't Perform and What to Do About It. To learn more about his book and sign up for more FREE sales and sales management tips, visit http://www.8020performance.com.

In The News:


pen paper and inkwell


cat break through


The Art of Sales (And Tips On How To Manage Your Sales Team)

Selling. Cold calls, introductions, interviews, appointments, proposals, referrals, call cycles,... Read More

The Achilles Heel of Management Coaching

While heading home at day's end, you begin reflecting on... Read More

Stop Drowning: Nine Strategies For Managing Your Priorities

I just got off the phone with Susan. She is... Read More

Hiring--A Vital Key In Sales Management Success

Recently, I was asked to spend some time on the... Read More

Sacking Clients: Brand Power Wheel

Remember in the last message we talked about your directional... Read More

Online Sales: Secret To Increase Your Sales By Bundling Your Products

Microsoft has used this online sales secret to become a... Read More

How To Become A Better Sales Manager

YIPPEE! Kendra won, or should I say, "She was hired,"... Read More

How You Can Raise Your Business Earnings By 50% With An Age-Old Magic Truth

Imagine increasing your business earnings by 30, 40, or 50%.... Read More

How to Develop a Proactive, New-Business Sales Team!

I don't know about your business but in my experience... Read More

The Hidden Competition: Avoiding the 2 Most Common Competitors

There are really only two types of competitor:1. Obvious2. HiddenThe... Read More

7 Tips for Testing Your Sales and Marketing

One marketing technique may work wonders for someone, but that... Read More

Moving a Business Relationship from Free to Fee: Turning Strangers to Friends with Power of Freebies

In the last issue I shared with you a technique... Read More

How Do I Manage Workplace Conflict?

Workplace ConflictConflict is an inevitable part of business life and... Read More

Is Sales Process & CRM Stopping Sales?

Standard metrics and KPI's (Key Performance Indicators) are created usually... Read More

Hire A Six, To Consistently Produce Sales Success

For many years as a sales manager, I would only... Read More

SEZ WHO? Tips About Recommendations, Sales Cycles, and Trade Shows

Here's the scene. You're at the trade show, having a... Read More

Sales Plan? Whats a Sales Plan?

In the past, if you said the word "plan" to... Read More

Run a Productive Business From Your Car-Office

The way we do business has changed dramatically over the... Read More

Is Your Sales Trust Factor High Enough to Win Against the Competition?

How high is your sales trust factor?Is it higher than... Read More

Leadership - How To Turn The Vision Into A Reality

Be clear about where you are now. Audit your strengths... Read More

Increase Your Sales Accept Credit Cards, Part 2

In part two we will discuss overcoming objections, which credit... Read More

The Get Dangerous Quickly Approach to Product/Service Training

In 2000 a computer distributor hired me to help them... Read More

The Sales Carpenter

I remember moving my family to Argentina as Vice President... Read More

A Coachs Handbook For Sales Managers

This article may be reprinted in its entirety with express... Read More

How Your 60-Second Elevator Script Can Transform Your Staff, Your Sales, & Your Business

When attending a Chamber of Commerce breakfast networking get-together, I'm... Read More

It?s Time For A Sales Management Revolution

Are you dog tired because of the way you manage... Read More

The Hardest Job Of A Trade Show

You've heard this before: There were four people named Everybody,... Read More

Do You Know How to Fire Up Your Sales Staff (When Money Isnt Everything)?

Money is the only thing that motivates a salesperson, right?... Read More

Increase Retail Sales With Meetups

I recently attended the monthly Italian language Meetup here in... Read More

The Differences Between A Commercial Collections Agency & Lawyer

If your letter writing and phone calls have all failed... Read More

Building Trust For Lifetime Success

Trust.One word.One very powerful word that can increase both first... Read More

Sales & Marketing Plan Strategies

Design and Implementation of a new Sales & Marketing campaign... Read More

Snowflakes Improve Holiday Sales

Snowflakes are beautiful!For the Winter Holiday sales season handcrafted snowflakes... Read More