Finding the "Good Fit"
Many companies are coming to realize that competitive pricing isn't everything. Marketing and sales is shifting from an emphasis on transactions, sales volume, and competitive pricing to an emphasis on qualifying, closing and retaining the right customers, because customers whose needs fit a companyís core offerings are likely to make for a profitable relationship. The critical issue in relationship-oriented marketing is determining whether there is a fit between the prospectís needs and the companyís products or services. In other words, it is important to disqualify ìprospectsî that have needs the company canít satisfy.
Trying to force a fit is inherently inefficient. When one chases customers that donít fit their companyís core competencies, they end up with more liabilities than mutual relationships. And the demands of a single ìbad fitî customer can be costly to a company, even in a short-term relationship.
No Mutual Mystification
In the early stages of a new business relationship, a proposal has to be explicitly communicated and definite in its terms, there should be no ambiguity in what is offered to a prospect. But most communication between salespeople and prospects starts fuzzy at best. Neither side usually opens up and communicates with a candor that allows them to come away crystal clear about what transpired between them. In fact a prospect may say something like:
"Well George, based on what you're telling me so far, all things being equal, apples to apples, it really looks good. You're very close. I don't see any reason in why we wouldnít move forward with you, assuming things fall into place and everything works out."
Most salespeople would rush back to their office with this kind of answer and say, "Itís in the bag!" when they actually have nothing at all. A seasoned salesperson would recognize the prospect's wishy-washy response and wouldnít stop without getting a more definitive answer, even a definitive ìnoî answer, from the prospect.
Questions and Answers for Fit
How does a company get past the ambiguity and determine whether a prospect is a good fit before they get too deeply committed to a relationship? Asking all of the right questions up-front, uncovering all of the qualifying factors so that when a proposal is fashioned, it is simply a plan to enmesh the companies into a mutually beneficial relationship.
Now, customers expect a new supplier to have all the answers, so before a salesperson can begin to determine whether their company can resolve a customer's pain, they have to get the prospect comfortable answering all of the questions that need to be asked to define it. Most prospects arenít used to this kind of due diligence from a vendor candidate, so it wonít always feel comfortable when you're doing it.
Itís also important to recognize that while the salesperson is asking questions and recording answers, the right person is doing most of the talking--the prospect. Questions shift the focus away from the salesperson to the prospect, which is exactly where it belongs. This customer-focused questioning demonstrates that the salesperson is interested in them and their needs, and even more importantly, their compelling reasons to do business or ìpainsî.
While questioning, the salesperson can also begin to form in their mind whether or not they have some solutions to offer, and if a ìfitî is becoming apparent. Areas of poor fit become apparent in this process too, and a company can begin to weigh these factors against the areas of potential mutual benefit.
Interestingly, questions can also begin to help a prospect solve, or at least more clearly see their own problems. Walking a prospect through all of the dimensions allows them to ìthink out loudî, organize together some seemingly unrelated factors, and often discover some new truths about their situation. And finally, questions allow a prospect to discover their emotional perspective as well as their intellectual assessment of a companyís product or service. This is often the most important dimension to develop with a prospect because people buy emotionally; and then they justify their decisions intellectually.
Good Fit = Win/Win
Fortunately many companies now believe that competitive pricing isnít everything when trying to capture new accounts. And companies need to acknowledge this fact with existing customers when exploring ways to grow their base business. While finding a "good fit" takes a little more skill on behalf of the vendor company, this diligence benefits both the vendor and the customer, and results in a win/win relationship. Developing a foundation of good fit customers is one of the keys to long-term success for any company, in any market.
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