Congrats, You're Starting a New Territory
Since there are many companies launching new territories and very little information tied to the process of launching a new territory, I will be devoting the next couple of posts to the topic.
Variations of new territory
Your new territory probably falls into one of three basic categories:
- Accounts once served by a salesperson no longer with your company and largely ignored for a lengthy period of time.
- A collection of previously underserviced accounts (sometimes called house accounts) where no salesperson has actively worked with the customer, yet some business has found its way to your organization.
- New geography where your company previously conducted very little business.
The strategies for each variation is different, but many of the practices to carry them out overlap. That being said, we will address each individually, noting similarities and differences.
To start, one of the major similarities when attempting to conquer any of these new territories is the need to create new relationships.
Who do I call on and how do I create new relationships?
Those new to their territory often struggle with deciding where to focus their energy. Since nearly every sales call requires extra efforts in getting appointments, setting up the right call is critically important. Exacerbating this point is the need for quick sales results – often manifesting itself as pressure from a sales manager to make lots of calls.
Not to bore you with war stories from another decade, but before the internet, salespeople often hopped door-to-door in business parks generating lots of wasted activity trying to get names from closed-mouthed receptionists. The calls went something like this old joke:
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Seller:
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I would like to the person responsible for buying left
handed widgets.
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Receptionist:
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I am sorry but they only see salespeople with
appointments.
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Seller:
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Can you give me their name and I will reach out via
phone?
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Receptionist:
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I am not allowed to give you that information but our Purchasing Manager is Helen Waite.
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Seller:
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So if I want to talk to people I can go to Helen Waite?
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Receptionist:
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Exactly…
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Trust me, there was a lot of waiting required. Was the activity productive? Every fifth or sixth visit might generate a real name. Most were purchasing people, but at least it was a start. And, I might add, the call reports generated did show proof of activity. Sadly, a lot of people actually confused all this motion with progress. It wasn’t.
Thankfully, today there are tools to find the right person to start a conversation. LinkedIn, especially, allows a new seller to find the right name and start the process in earnest. We wrote a sales aid called how to stalk customers for fun and profit. If you are uncertain as to how to find people on LinkedIn.com, shoot our not so closed-mouthed receptionist, Jenny an email and she will forward it to you. The point is, you can now find the right person to call without much effort. The question is, who do you call first?
Go after accounts already in your system.
Prioritizing sales prospects works this way. It’s 5 (or 12 -depending on who you believe) times easier to sell to an existing customer than a brand new customer. Just to illustrate, existing customers, even if not very active, have an account set up on your computer system with approved credit. Making a sale to them doesn’t require a great deal of administrative paperwork on your end.
The first batch of calls should go to people who purchased something, actually anything, in the past couple of years. Often the purchases are for an item only your company carries (an exclusive product line) or a product you stock that the competition doesn’t (maybe you stock lots of European Fuses because one major customer buys them regularly). In the case of accounts abandoned/ignored when the previous seller left the organization, there might even be significant business being purchased.
The best approach for these accounts.
Once identified, don’t go into the account with your selling six-guns a-blazing. Instead, take a service approach. The conversation leading to an appointment might start off this way:
“Hi, I’m Juanita and I noticed you have purchased some Acme Widgets from us in the past. I have been assigned to your account and would like to stop in for a brief meeting. This is not going to be a sales call. Instead, I would like to learn more about how you used the product and what I could do to better our service.”
Once an appointment is set up, stay true to your word. Think of this opportunity not as a tool for selling today, but rather an information-gathering interview for the future. Come prepared with sample questions like these:
- Was the product you purchased used as a repair part or for a new application?
- Do you maintain an inventory of parts in a storeroom or maintenance crib?
- Do you track the warranty of parts like this or leave that to the supplier?
- Are there related pieces of equipment you sometimes buy?
- Do you think of us as your primary supplier for this part or was there an issue with your regular supplier?
- Does your team need training on these past purchases?
- Do you have an up-to-date user’s manual, catalog, product safety sheet, etc. for this product?
Remember, this is just a short sampling. It is important to
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| What happens if you wing it... |
Leave the call with some reason to come back
Even if your next call is tied to bringing back some trivial piece of paper, reinforce the point that you are solving one of the customer’s issues with a return visit. Solving problems and returning again sets the stage for other sales activities and the building of a relationship.
One more point on the relationship thing – invest 55 cents
Much of the sales game is about creating a relationship and building trust. Marketing types call every interaction with the customer a “touch” and these “touches” need not always be in person. One easy way to increase your interactions with a new customer contact is via a post-call thank you note. Note (excuse the pun): I said “note” not email.
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| And no, attaching the pic to an email does not count! |
After these introductory calls, I recommend investing 55 cents and an envelope to send a hand-written card along with your business card. First, nobody gets a card these days. You will cause the customer to pause. Secondly, about the time the customer was thinking you were just another sales guy – they get something without asking.
A few final thoughts
Regardless of which of the above-mentioned situations you
find yourself in, the need for establishing a professional relationship with
your customers is paramount to success. I believe the same can be said
for any seller stepping into any territory for the first time. The newly
assigned salesperson must establish a relationship and a level of trust with
their customers.
While some experts expand on the relationships customers
have with companies on a “corporate” level, the real connection is
person-to-person. A customer might trust your company, but until the
seller proves himself as an individual, the connection is weakened. Our
business is littered with customers lost to competitors when someone retires or
moves to another role in the company.
In selling solutions, the old saying, “People buy from
people” remains unchanged. Further, I believe our customers buy
from people they trust. Building a relationship and reputation as a
person who can be trusted is every bit as important as the products you
sell.
Next time: Strategies for the seller assigned to a long-ignored territory.
Care to comment:
I know many of those reading this were once a new salesperson in a new territory. We would love to hear from you either via comment or by email. Drop me a line.
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