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 company’s 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 prospect’s needs and the company’s products or services. In other words, it is important to disqualify “prospects” that have needs the company can’t satisfy.

Perceptron of Plymouth built its business by creating a “good fit” for the inspection of auto bodies and body panels during the initial assembly process. Since 1981, Perceptron has provided automotive customers with accurate laser sensors and integrated software solutions that allow the analysis of features or surface contours of complex parts and assemblies. Plant technicians use this information to identify, correct and control the assembly of auto bodies and the fit of exterior body panels and glass.

The 2008 downturns in the automotive sector brought new impetus for Perceptron to diversify, and Harry Rittenour, president and CEO, is seeing measured progress in breaking into new markets, such as inspection of critical pipe threads and extrusion products.

“The biggest challenges have come in scaling our technology for analysis of smaller-sized projects and different component features to match the needs of manufacturers that have never used our technology. This has required that we identify problems in their manufacturing and then take a solution-selling approach to resolve them,” Rittenour said.

“Our success in penetrating the new segments is still an open issue, but reorienting our company and going all the way back to the beginning in these new segments and asking ourselves: 'What value can we bring to our customers?' has been healthy for Perceptron,” Rittenour said.

Trying to force a fit is inherently inefficient. When one chases customers who don’t fit their company’s core competencies, they end up with more liabilities than mutual relationships. And the demands of a single “bad fit” customer can be costly to a company, even in a short-term relationship.

Clarity is critical
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 wouldn’t 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, "It’s in the bag!" when they actually have nothing at all. A seasoned salesperson would recognize the prospect's wishy-washy response and wouldn’t stop without getting a more definitive answer, even a definitive “no” answer, from the prospect.

Candor 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 upfront, 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 aren’t used to this kind of due diligence from a vendor candidate, so it won’t always feel comfortable when you're doing it.

It’s 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 “pains.”

While questioning, the salesperson can also begin to form in their mind whether they have some solutions to offer, and if a “fit” 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 think out loud, 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 company’s 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.

Finding 'good fit' benefits vendor, customer
Rittenour admits: “The downturn has changed my job a lot. It’s new and though it’s frustrating at times because we are now venturing into uncharted territory, it has caused my staff and me to rethink our strategy and grow our skill set. Hopefully, we are now stronger than ever.”

Fortunately many companies now believe that issues like competitive pricing aren’t 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 segment or market.

©Copyright 2010 - Marr Professional Development Corporation

Joe Marr is a public speaker, sales and management consultant and trainer, and runs the Sandler Sales Institute at 501 Avis Drive in Ann Arbor. Phone him: 734-821-4830 or visit his website at: www.sandlerannarbor.com