If you know anything about my professional career, I’ve done a lot of work in the broad area of peak performance, but more than anything else I’m branded as a business development and sales guru. I wear that badge with pride since I’ve been teaching sales and management teams how to sell with complete integrity and go against the grain of what is common practice for over two decades. I know what works and what doesn’t and I see much more of the “what NOT to do” when I’m meeting with potential clients or seeing what is being disseminated out there under the guise of effective sales training.
Lately, I’ve seen a pattern of developing conditions that most organizations are failing to address properly. So my bold prediction is this:
The tipping point is here. Businesses disruption is about to cause a big path of destruction for companies that don’t take important corrective action.
We are in a unique time in history for many reasons. There is a perfect storm brewing and those who weather the storm will set themselves up for healthy growth and profits for years to come. And those who don’t weather it….well, let’s just say, it won’t be pretty!
There are five key factors which are converging that companies must address with their sales and marketing strategy.
1. More Competition
Competition is at an all-time high. You are no longer competing locally. Globalization has increased your competition while changing your customers’ perceptions of where and how to buy. Accessibility to products and services is easier than ever. And the growth of start-ups according to the Kaufman Index of Entrepreneurial Activity is well above the dot.com bubble of 16 years ago.
2. Lack of Differentiation
With all the competition, it’s harder than ever to differentiate between similar companies. Whether you’re a law firm or an IT company, you probably appear to be much like other law firms or IT companies respectively. So why should I want to pay you for services instead of your competitor? If you can’t clearly and quickly (10 seconds or less) articulate your difference with confidence, you lose.
3. Less Client Loyalty
Loyalty is not a given. In fact, in a recent discussion I had with a group of CEOs, an overriding complaint was that customer loyalty is dying. In my work, I wouldn’t say customer loyalty is dead, but there are more factors that are impacting loyalty and you can’t continue to do things the same old way and get raving fans. You have to recognize that buying behavior is different with different generations and that is one area where disruption is about to explode.
In addition, competitive pressures and changing technology are among the factors impacting loyalty. Companies that are going to thrive must maximize and deliver value to customers consistently across multiple platforms and not just give it lip service.
4. Price Sensitivity
Consumers are more price-sensitive than ever. It’s easy to shop the competition online and find the best deal. Quality is expected. Customer service is demanded. If you’ve failed to differentiate yourself in a meaningful way, you are going to be stuck in a price war where you are slashing profits or losing business to lower-priced competitors. Neither bodes well for your long-term success.
5. Changing Of The Guard
In many organizations, there is a tremendous brain drain happening. Senior team members are hitting retirement age or choosing to exit early to pursue other opportunities. At the same time, Millenials are joining the ranks. This matters and it matters now. Managing and leveraging the passing of the guard is critical to preserving key knowledge and accounts.
The passing of the guard also means that businesses have to get their younger Millenials up-to-speed while learning how to tap into their growing power as a consumer group. In fact, today’s millennial generation has the power of huge numbers – roughly 85 million people between ages of 14-34. And that power is going to continue to strengthen as they rise in the ranks.
So what does my prediction and the alignment of the perfect storm conditions mean to your business? It means that your profits and revenue growth are in jeopardy if you do not have a clear and effective way to address the conditions that will cause ongoing disruption. And it can’t just be addressed on a macro-level. Each employee who has customer interaction, particularly those in a sales or business development role, must be trained and empowered to lead the charge. In fact, if your sales team is not better at offering genuine solutions, more engaged in building deeper relationships and fully equipped to delivering more value than the competition; you are in for a world of hurt.
