Monday, June 2, 2008

Elephants, Deer and Rabbits: Are you hunting the right business?

Written by: Greta, ProActive Training & Consulting

A few years ago, I heard this great story about hunting. Hunting??? Well, only because it’s directly related to sales (isn’t it amazing how everything seems to relate to sales)?

Your ability to sleep at night is directly related to the quality and quantity of new business that you and/or your sales team bring in. That’s a fact. So how do you decide what’s good or not so good? How do you aim in the right direction so that the all-important business comes in?

Here’s a test: list your six best customers. Identify the measurable criteria common to those six (size, profitability, distance, your product fit to their needs, etc.). Now, list the common criteria you can’t measure (what you value about them, what they value about you, etc. Think of things like “they place value on your contributions, they want to partner with you, they don’t beat you down on price, they pay for performance,” etc.).

Now rank the top five criteria on each list. Give each customer a score on a scale of 0-10. Two lists with five items each will yield a possible score of 100 points. Grade each customer and study the results. Now apply the 80/80 test: if 80% of your customers don’t score 80 or more points, your sales force in hunting in the wrong place, the wrong way, or both.

So here’s how to get them hunting the right business:

The first thing to do is have your sales team identify your accounts by category: A, B, or C.

Category C is rabbits. Rabbits are plentiful. In the world of hunting for food, if you shoot a rabbit, you’ll eat for a day.

Category B is deer. Deer are a bit more challenging. You have to be a little savvier, and a bit better than your competitors. But if you shoot a deer, your village will eat for a week.
Category A is elephants. Elephants are tough. Everyone wants one. They’re only in one part of the country. It takes real skill and a long time to develop the strategy and plan the attack to get one. If you shoot an elephant, your village will eat for a month. But if you miss, you’ll starve.

So how does this relate to sales? Because we usually only want the elephant account. We spend all of our time and energy going after this most elusive of prey. So is everyone else! Meanwhile, your plentiful rabbit accounts are always there if you do a good job and get plenty of referrals.

A deer is in the middle. It’s an account you establish a good, strong relationship with. You’re seen as a consultant and you directly help them. They pay you on time because there’s no “red tape”, and you can get directly to the decision makers.

So here’s the big question: why do we waste so much time on “the big gray ones”? It might be ego, or it could be the thrill of the chase. Maybe it’s something else. But here’s the truth: if you only chase elephants, you’ll starve.

So here’s some homework to keep from starving, and to make sure plenty of business is on your table. Take a good look at your accounts and prospects. Categorize them. Who are the elephants? Who are the deer? And who are the rabbits? Once you decide, work your plan. It should consist of 60% deer, 20% elephants and 20% rabbits.

20 million years ago, our ancestors lived or died based on how well they hunted the right opportunities. They had a plan. So how’s yours?

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