Faucets or Drain Plugs: Which sale is more important?

Why isn't my business growing?

Most businesses have a similar goal. They want to grow. What frustrates so many leaders, especially sales leaders, is that no matter how much they work on finding new customers it's always a struggle to grow their business. They invest in marketing tools, customer relationship managers (CRMs), and now even artificial intelligence (AI) to give themselves the edge to win that one more deal. They innovate and develop products that change the way business is done, or that will revolutionize their industry, but so many continue to struggle.

In today's market we're seeing companies cut costs, reduce the number of employees and strictly scour any and all new tools so that every dollar is stretch to the extreme so that they can be more efficient and profitable. This can slow innovation, cause missed deadlines, and in some cases can cause the sales team to lose business because their prospects can't always wait for that new feature to be developed.

I've been working in sales now for the better part of a decade following a longer career in electrical automation. During that time I've fully immersed myself in the age-old debate about what constitutes "real" sales.

When you think about sales, what is the first thing that comes to mind? It's probably something like a used car salesman, right? You're not alone. There is a real art to sales that most people outside of the industry aren't aware of, and the great salespeople out there understand that the best way to earn new business is to identify the needs of the customer. These needs could be to increase productivity, reduce inefficiencies, decrease costs, or increase revenue, and it's up to the salesperson to demonstrate how their product or service can meet that need.

Congratulations! If your salesperson has done their job successfully your company has just grown... or has it?

If this is the only thing that the sales staff does, you've got a problem. Why are my customers leaving for my competition?

This is like trying to fill a bathtub by turning on the spigot, but you haven't plugged the drain.

The "age-old debate" I referred to is about what constitutes real sales. Some companies think that the same person who earned the new customer is going to be just as good with customer retention as they are with customer acquisition. Like Admiral Ackbar in Star Wars said, "It's a trap!"

There is a very different mindset which is usually accompanied by a different skillset for customer retention as opposed to acquisition. Both are sales, and both are critical to your business. Very often though they can't be the same person.

Acquisition sales is about constantly hitting the street, pounding the phones, going to events or conferences and finding those opportunities to talk to new companies. This is a lot of work, and it requires immense talent, especially in the world of corporate, business-to-

business sales. This is usually cold sales, and it requires some serious mental toughness.

On the other hand, Expansions is warm, so many mistake that as easy. Here you have existing customers who are familiar with your company and at least some of your products. If the acquisition team did their job right you'll have the background information about what problem has been solved for, and who the key players within the customer's company are. It looks easy, right? Not so fast.

Sales Expansion is what plugs the drain and allows your company to build on the recurring revenue that they've already developed. This department is not just about getting your company to renew, or to buy the same thing again and again. This is about helping that customer to grow and use more of your products or services, and this requires trust.

Trust takes a long time to build, and only a moment to destroy.

While both teams are responsible for selling to your customers, they are not the same. Expansion, otherwise known as either Account Management or Client Success, requires building relationships with your customers. It requires running to problems when the occur to fix them without feeling compelled to sell the customer something immediately. When customers are happy they are much more likely to put their trust into the salesman who fixed their problem because people buy from people they like.

Bifurcated business models are not a new concept but I continue to see companies resist the concept. Understanding that there is a major skillset difference and hiring key people for both roles will unlock new levels of success for your company. Of course your company wants to earn new business, and allowing your acquisition teams to focus on that task without the distraction of managing existing customers will allow you to find new business faster. Making the investment in your current customers by hiring and enabling a professional sales management team will reduce customer churn and allow you greater opportunities to grow your base. You'll be amazed what will happen with your company once you have this in place!