book.chapter Problems with sales process

The traditional sales approach, which has been largely static for over a hundred years, is now ineffective in today's market saturated with choices and informed customers. Originally developed during times of supply scarcity, where the balance of power favored suppliers, this approach is solely focused on completing sales without considering the customers' needs or fostering mutual benefits. Consequently, sales interactions have become predominantly about price haggling, distancing sales professionals from both decision-makers and genuine needs. This approach, which treats sales as a zero-sum game, harms trust and relationships from both ends. Visible signs of this outdated method are evident in organizations that still adhere to old sales philosophies. Sales teams often only deal with purchasing departments, focusing on price rather than value, leading customers to demand further discounts and services that erode profit margins post-sale. Sales training is narrowly concentrated on techniques to close deals rather than on solving problems. Efforts by management to motivate through incentives and reorganizing the sales force, while keeping salespeople out of essential discussions about product design and understanding the end customers' needs, are common. Sales representatives find themselves bogged down with administrative tasks over engaging with customers, and with revenue generation being the primary measure of success, sales leadership may overlook underlying issues. In the current era, where customers can easily find alternative suppliers online, this inward-looking, transaction-focused method does not build the necessary relationships or differentiation to secure long-term loyalty. Even quality products and reasonable prices are insufficient when competitors provide more customized solutions. Business experts like Ram Charan have pointed out that reactive quick fixes have little effect. Instead, visionary leaders are adopting more customer-centric sales models that emphasize creating mutual value, enabling suppliers to consistently outperform competitors and achieve better returns, regardless of their strategies or innovations. The essential change needed is to define success by the success of the customers and to generate value that enhances their performance. According to Lou Eccleston, CEO of Pivot Inc, sales should be the outcome of effective communication and a deep understanding of the customers' real needs. With the abundance of suppliers, sales professionals need to become ambassadors who leverage their social skills and product knowledge to offer personalized solutions. This partnership approach builds trust in the supplier and clarifies their role in adding value to the customer's offerings to their market. Developing this advisory skill is crucial for maintaining resilience through economic fluctuations and disruptions.