The Birth of a Strategist – A New Approach for Manufacturing Sales

Introduction

In the manufacturing industry, the role of sales has always been unique. Unlike sectors where aggressive sales tactics might have been the norm, manufacturers have long recognized that success in sales depends heavily on technical expertise and the ability to provide tailored solutions. However, even within this more nuanced approach, there is a growing need to evolve from traditional sales methods to more strategic, value-driven processes. This evolution is crucial in an industry where decision-makers are more informed and are looking for partners who understand their challenges and can offer strategic solutions.

Drawing from Chet Holmes’ book, The Ultimate Sales Machine, particularly chapters four and six, this blog post explores how manufacturers can refine their sales processes to better serve their customers. We’ll look at how to implement educational selling techniques effectively, understand the importance of the Buyers Pyramid, and leverage the power of a focused Dream 100 strategy.

Chapter 4: From Technical Sales to Strategic Education

Understanding the Strategic Shift

In the manufacturing industry, sales professionals have traditionally been seen as problem-solvers with deep technical knowledge. Their role is not just to sell products but to understand complex technical requirements and offer solutions that align with a customer’s specific needs. This level of expertise makes finding the right sales talent a significant challenge. Often, the most successful approach involves splitting the sales process into specialized tasks, allowing technical experts to focus on solution development while other team members handle customer engagement and relationship-building.

However, even with this structured approach, there’s an opportunity to enhance the sales process by incorporating strategic, educational elements. Holmes argues that today’s buyers are looking for more than just a transaction; they want to work with companies that can help them navigate the complexities of their industry. This is where educational selling comes into play.

The Buyers Pyramid: Understanding Your Audience

Before diving into how educational selling can be implemented, it’s crucial to understand the concept of the Buyers Pyramid. Holmes’ Buyers Pyramid is a model that helps sales teams understand the varying levels of interest within their target market at any given time. The pyramid is divided into five sections:

1. 3% are actively buying now.
2. 7% are open to the idea of buying.
3. 30% are not thinking about it.
4. 30% think they are not interested.
5. 30% are definitely not interested.

This model highlights a critical point: only a small percentage of your potential market is actively looking to buy. Therefore, if your sales approach only targets those ready to purchase, you’re missing out on a significant portion of your market.

The Stadium Pitch: Engaging the Entire Pyramid

With the Buyers Pyramid in mind, Holmes introduces the concept of the “stadium pitch.” Imagine you have the opportunity to address a stadium full of your ideal customers, encompassing all five sections of the Buyers Pyramid. Your challenge is to craft a message that keeps everyone engaged, not just the 3% ready to buy now.

In the context of manufacturing, this means creating a pitch that speaks to the broader industry challenges and offers valuable insights, regardless of whether the listener is ready to purchase immediately. For example, rather than focusing solely on your latest product, you might discuss trends in manufacturing efficiency, emerging technologies, or regulatory changes that could impact operations. This type of content resonates with a broader audience and positions your company as a knowledgeable and trusted partner.

Building the Core Story: Educating Without Selling

Central to Holmes’ strategy is the development of a “Core Story,” a structured narrative that educates your audience and guides them through the sales process. Importantly, the Core Story does not involve pitching your product until the very end. Instead, it focuses on educating the customer about broader industry pains and potential solutions.

The Core Story is divided into five key parts:

1. Global Pain: Start by addressing a universal issue affecting the entire industry. For manufacturers, this could be something like the impact of rising raw material costs or the need for greater sustainability in production processes.
2. Targeted Pain: Drill down into specific challenges that your ideal customers face. For example, how the downtime of machinery directly impacts their production output or how new regulations could require significant changes in their operations.
3. Solutions: Present solutions to these challenges, but crucially, these solutions are not about your product. They are broader strategies or methods that can help alleviate these pains, such as predictive maintenance or the adoption of more energy-efficient technologies.
4. Reset Buying Criteria: Educate your customers on what they should consider when evaluating potential solutions. This step is about guiding their thinking so that when they decide to buy, they are more likely to see your product as the logical choice.
5. The Logical Choice: After educating your audience, the final step is to present your product as the natural solution that fits perfectly with the criteria you’ve helped them establish. At this point, the decision to choose your product becomes logical and almost inevitable.

This approach positions your company not just as a supplier, but as a valuable resource that helps customers make informed decisions, thereby building trust and loyalty.

Chapter 6: Dream 100 – The High Art of Targeting the Best Buyers

The Concept of the Dream 100

The Dream 100 strategy is one of the most impactful tactics in Holmes’ playbook. It involves identifying the top 100 potential clients who could significantly boost your business if they become customers. In the manufacturing sector, this means focusing on companies that not only need your products but are also a good fit in terms of profitability, ease of service, and long-term potential.

Rather than spreading your efforts thin across thousands of leads, the Dream 100 strategy calls for an intense focus on these key targets. This approach is particularly effective in industries like manufacturing, where relationships and reputation are critical.

Implementing the Dream 100 Strategy in Manufacturing

Here’s how you can apply the Dream 100 strategy:

1. Identify Your Dream Clients: Start by analyzing your current customer base to identify the characteristics of your most profitable and ideal clients. Consider factors like profitability, ease of doing business, and the potential for long-term relationships. Use this analysis to compile your Dream 100 list.
2. Research and Personalize: Once you’ve identified your Dream 100, invest time in researching each company. Understand their business challenges, goals, and what drives their purchasing decisions. This deep understanding allows you to craft personalized messages that resonate with them.
3. Creative Outreach: In manufacturing, where technical expertise is valued, your outreach needs to be both creative and technically relevant. For example, Holmes shares a case study involving a computer systems company that targeted large companies with aging systems. Instead of a generic pitch, they sent a Rubik’s Cube with a note that read, “Puzzled about how to double or triple employee productivity?” This creative approach got their foot in the door, leading to significant new business.
4. Follow-Up Relentlessly: Persistence is key in the Dream 100 strategy. It might take months or even years to convert these high-value clients, but the potential return on investment makes it worth the effort. Regular, thoughtful follow-ups that add value and keep your company top of mind are essential.
5. Measure and Refine: Continuously track your progress and refine your approach based on what works best. This might involve adjusting your messaging, outreach methods, or even the list of companies you’re targeting.

Real-World Example

Let’s take the example of a business computer systems company struggling to secure larger deals. Most of their sales ranged between $10,000 and $28,000, which were decent but didn’t significantly increase their revenue. However, they stumbled upon one sale worth $160,000, which made them realize that focusing on larger companies could dramatically increase their revenue.

By narrowing their focus to 2,000 large companies in their area, they identified 508 companies with outdated computer systems. They initiated a creative outreach campaign by sending these companies a Rubik’s Cube with a note promising to find 12 ways to increase productivity or give them a $5,000 reward. This approach led to immediate responses, including one from a company with 355 employees, which became the biggest sale in the company’s history.

Moreover, the campaign led to 15 more appointments, and within six weeks, the company had more business in play than it had in the entire previous year. This example demonstrates the power of the Dream 100 strategy when applied with precision and persistence, leading to a tenfold increase in appointments per week and nine times more business overall.