Best Two Sales Strategy Types for Your Business

Creating an effective sales strategy often hinges on two key elements: customer type and sales channel.

• Customer Type: This typically refers to the characteristics of your customers, such as their size, industry, region, or the specific products they purchase.
• Sales Channel: This refers to the method you use to reach these customers, whether through direct sales, partners, or self-service channels.

The most effective sales strategies integrate both customer type and sales channel. Let’s explore how these work together.

Sales Strategies Based on Customer Type

Choosing the right sales strategy starts with segmenting your target customers, usually by size, region, product, or industry.

Segment by Company Size:

Enterprise Companies vs. Small and Medium-Sized Businesses (SMBs):

Enterprise Companies

Focus on securing high-value deals with large corporations. This approach typically involves longer sales cycles, more complex negotiations, and a higher level of customization to meet the unique needs of each enterprise client.

SMBs:

Target a higher volume of lower-value deals. This segment often requires a more streamlined sales process and solutions that are scalable and easy to implement. The goal is to reach a larger number of potential customers with a more standardized offering.

Segment by Region:

Local and Regional Nuances

Different regions may have unique business practices, languages, cultural nuances, and regulatory requirements. By tailoring your sales strategy to these regional differences, you can better meet the specific needs and preferences of customers in each area. This approach helps build stronger relationships and improves the likelihood of success in diverse markets.

Segment by Product

Legacy Products vs. New Products:

Legacy Products

Often have an established customer base and market presence. Sales teams focusing on these products should emphasize reliability, performance, and long-term value.

New Products

May require more education and a different sales approach to gain traction. Assign dedicated sales teams to promote these products, ensuring they receive the attention needed to succeed without overshadowing the established products.

Segment by Industry:

Industry-Specific Expertise

Grouping sales teams by industry allows them to develop deep knowledge of the unique challenges and opportunities within each sector. This expertise enables them to offer tailored solutions that address specific pain points, such as supply chain issues in manufacturing or compliance requirements in financial services. By demonstrating a thorough understanding of industry-specific needs, sales teams can build trust and credibility with their customers.

Sales Strategies Based on Selling Channel

After segmenting your customers, align them with the right sales channel based on their buying preferences: direct sales, channel sales, or self-service sales. Typically, companies start with one channel, excel at it, and then diversify to create multiple revenue streams.

Direct Sales:

• One-on-One Relationships: Direct sales involve personal interactions between a sales representative and the customer. This approach is ideal for products that require detailed explanations, customization, or a high level of customer service. Building strong, long-term relationships with customers is key to success in direct sales.
• Complex Sales and Large Deals: Products or services that are complex or involve large deal sizes benefit from a direct sales approach. This strategy allows for thorough exploration of customer needs, detailed presentations, and careful negotiation to ensure the best possible outcome for both parties.

Channel Sales (Partner Sales):

• Leveraging External Partners: Channel sales involve working with external partners such as resellers, distributors, and vendors to reach customers. This approach allows companies to expand their reach without significantly increasing their own sales force.
• Cost-Effective Growth: By utilizing partners, companies can achieve growth more efficiently. Partners bring their own customer relationships, market knowledge, and expertise, which can help drive sales and reduce costs associated with direct selling.

Self-Service Sales:

• Online Purchasing: Self-service sales enable customers to buy products or services directly through online platforms, such as e-commerce websites. This approach is particularly effective for straightforward products that don’t require extensive explanation or customization.
• Subscription Models: Self-service channels are well-suited for subscription-based products and services. Customers can easily manage their subscriptions, make purchases, and access support without needing to interact with a sales representative. This convenience can lead to higher customer satisfaction and retention.

By combining customer type and sales channel, you can create a robust sales strategy that is both targeted and flexible, maximizing your chances of success. Understanding your customers and the best ways to reach them ensures that your sales efforts are efficient and effective, leading to sustainable growth and profitability.