Hello friends!
We all know the importance of a sales plan and sales strategy.
Sometimes, we use these words together or interchangeably.
Are they the same?
It is a common misconception that these two terms are interchangeable, but they are not.
A plan may outline the steps needed to achieve a goal, but a strategy is a well-thought-out approach that takes into account potential obstacles, your strength, your positioning and provides a roadmap to success.
By recognising the distinction between these two concepts, you can make better decisions and achieve your objectives more efficiently.
Dr. Roger Martin is the best resource I have seen for explaining at the differences between a Plan and Strategy. You want to take advantage of this insightful video from HBR.
So, let’s apply this to b2b sales.
A sales plan is not a sales strategy.
A sales plan is a set of activities the sales team or salesperson decides to do. While the activities are essential, the result will not necessarily make your numbers.
For example, responding to RFP’s, launching an event with marketing, and updating your CRM.
In contrast, Strategy is an integrative set of choices that positions you on a playing field in a way that you win.
🎯The Strategy has a theory.
🎯The Strategy has sets of data on which you can base your theory.
According to Professor Roger Martin, author of “A New Way to Think,”
🎯 Strategy is choice.
🎯 Strategy is not a long planning document; it is a set of powerful, interrelated choices that position the organisation to win.
For example, in creating a sales strategy with a large account you cover, you need a comprehensive account profile (these are your data sets to develop a theory) that provides information to make the right Strategy.
Who are the influential leaders in your account?
What are their purpose and goals?
What are YOUR purpose and goals?
Who are your competitors, and what are their ecosystems made of (and much more!)?
Based on this data, you can create a strategy that will make you win.
Before proposing or presenting a product or service, consider your positioning in the account and your approach.
A strategy is more than just a list of activities; it’s a coherent set of choices that positions you to win in your chosen market. - Dr. Martin
It’s about understanding your account, its key players, their goals, decision-making habits, and your competitors.
A robust strategy considers these factors and guides you to victory.
Now that we know the difference between Strategy and a sales plan. How do we build our Sales Strategy?
There are 5 components:GICUS
Goals & Objectives
Ideal Client Profile
Competitive Strategy
Unique Value Proposition
Sales Materials
1. Setting Clear Goals & Objectives
The first pillar of a strong B2B sales strategy is clear and measurable goals and objectives.
What do you want to achieve, and by when? What will be your main focus? What are the accounts you are going to chase and not going after?
These objectives should be ambitious but also grounded in the reality of the market and your company’s capabilities. Ensure that everyone in your company is aligned with your key goals and objectives. This is your company’s North Star.
The adage “you can’t manage what you can’t measure” rings particularly true here — these quantifiable goals act as a compass guiding your decisions.
2. Ideal Client Profile (ICP)
Every time I press the publish button on my newsletter, my heart beats so fast! Why?
I am afraid of people unsubscribing. But it’s similar to the notion of ICP.
I am not for everyone, and neither are you! -David Leddick
Selling to everyone is selling to no one.
What problems are you solving? To whom are you selling?
This question is often answered in broad strokes—the industry, the company size, and the job title. However, a strong B2B sales strategy goes further, crafting a finely tuned ideal client profile.
Who are the decision-makers, and what challenges do they face? What deal breakers are, and where can you provide the most value? An ideal client profile becomes the strategic lighthouse for tactics to home in on valuable opportunities.
It’s defining your ideal client and what clients you are not chasing.
Last week, we covered finding your ICP; access it here with the template! #073:How to Find your ICP
3. Competitive Strategy
There is no one way to enter an account and before deciding how to enter that account, you need your “set of data to create a theory”.
Once you deeply understand your client, industry, competitors, and positioning and know your positioning, you can choose your approach.
There are five competitive strategies. I learned this during my Alcatel-Lucent days, and it has been an effective "thinking tool".
1. Direct Strategy
A direct strategy is adopted when you establish your solution’s superiority over the customer’s needs.
This approach involves directly showcasing how your offerings can better address the customer’s needs, problems, or goals than any other solution on the market.
2. Fragment Strategy
A fragment strategy involves dividing the opportunity into smaller pieces and focusing the customer on a particular part of the solution.
This approach can be particularly effective when dealing with complex solutions or large-scale projects. By breaking down the sales process into manageable parts, you can guide the customer through the decision-making process in a more focused and streamlined manner.
It also helps you position your products and services where it matters to your client.
3. Develop Strategy
A development strategy is used when the customer does not have a defined need or requirement.
It’s a long-term selling cycle.
Engaging early, developing relationships, and providing value is essential in strategic accounts. By positioning yourself as a trusted advisor rather than a simple vendor, you increase your chances of being the go-to choice when the customer decides to purchase.
4. Defend Strategy
A defence strategy is necessary when you are an existing provider and must defend your solution against competitors.
This Strategy involves reinforcing the value of your solution, reminding the customer of the successes they’ve experienced with your product or service, and highlighting the potential risks or downsides of switching to a different provider.
5. Flank Strategy
A flank strategy shifts the focus of the customer’s buying criteria to new or different issues favouring your solution.
This approach involves redirecting the conversation towards areas where your product or service shines. Doing so allows you to move the spotlight away from areas where competitors might have an edge and towards aspects that highlight your unique value proposition.
5. Unique Value Proposition
A distinct and compelling value proposition that speaks directly to the client’s needs and key decision points is an instrumental part of your Strategy. It must encapsulate how it solves their problems and why it’s different from the alternatives or a no decision.
We unpacked how to build your UVP read here: #59:The Ultimate Framework for Crafting and Delivering a Winning Sales Pitch.
Sales Materials
Internal and external sales materials will help you and your organisation in each sales process step, build credibility, and enable clients to make informed decisions.
These materials serve as a roadmap, guiding your team through various sales process stages.
They provide comprehensive information about your products or services, enabling your team to confidently articulate the value proposition to potential clients.
Well-prepared sales materials can demonstrate your credibility, professionalism and commitment to providing high-quality solutions, which can foster trust and confidence among prospective clients.
Visual diagrams and clear supporting documents makes a positive difference in your sales interactions (of course content is key too).
Examples of External Sales Materials
Case Studies
Whitepapers
Testimonials
Product Demos
Sales Presentations
Pricing Sheets
Competitive Comparison Charts
Internal sales materials are documents to help you think through, strategise and validate your decision making and next steps.
Examples of Internal Sales Materials
Account Plan
Sales Goals and Objectives
Sales Strategy
Opportunity Profile or Go- No Go
Competitive Analysis Grid
Client Relationship Map
Conclusion
Remember that a successful B2B sales strategy doesn’t just happen overnight - it requires clear goals and objectives, a well-defined ideal client profile, a competitive strategy, a unique value proposition, and effective sales materials.
These are living documents.
As we continually refine our sales processes, we should always learn, adapt, and improve.
Now, I’m curious - what’s the main thing you’re taking away from today?
How did I do? I would really appreciate your feedback!
🚀If you’re ready to shift your focus from just planning to strategising, grab your personalised ➡️B2B Sales Maturity Score.
Give yourself the gift of knowing where you are in your ability to create a strategy, use a process, and apply behaviours to encourage clients to make a decision and consistently win business.
It will make a significant impact.
Thank you for being here, see you next week!🫰🏼
Ren
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