Our C-Level buyers are always dealing with three primary concerns. They are constantly thinking about how they need to accomplish the following:
1. Increase revenues,
2. Increase productivity, and
3. Decrease net operating expenses.
Whenever I conduct a sales training session, I ask my class how companies can increase revenue. In every session someone speaks up and says a company can increase revenue by cutting costs. That is totally not true. The example I often use is a simple math example.
Suppose a company last year brought in $ 1.0 million in revenue, and they had $ 400,000 in expenses. This would provide $ 600,000 of gross profit. But let’s suppose that this year they still only generated $1.0 million in revenue, but lowered their expenses down to $ 300,000. Now their gross profit would have gone up to $ 700,000 but revenue remained the same. The challenge that C-level buyers and managers are always dealing with is how to increase revenue to $ 1.5 million or higher, and be able to lower expenses down to $ 200,000 by increasing productivity or other cost-cutting methods in its operations. This would be the best of all worlds for an organization.
If you are like most sales people, you no doubt have many different types of industries that you currently sell. You could be selling to manufacturing, health care accounts, and educational institutions within your markets. Let’s take a minute and think about your different customers and what they might be trying to do to increase their own revenues. A manufacturing operation must produce more widgets or sell their current widget line to brand new customers. Another option is to create a new type of widget to sell to all their customers or to sell to a totally new widget market. With this idea of new widgets, if they were to continue to sell their current widgets to their current customers, the net effect will be to increase their revenue.
Educational accounts need to find ways to put more students in more seats within their institutions. A friend of mine has a business where he works with colleges to recreate their marketing materials in order to increase the number of students attending the schools, or using other strategies like online marketing. His goal is to make the school look as attractive as possible to new students trying to fill more classroom chairs in order to increase revenue for the school.
Today health care accounts must find ways to attract more patients to their clinics to increase their daily census. Twenty years ago it was almost unheard of to see billboards marketing hospitals and their service. Today hospitals are on billboards, radio and television all to market that they are “# 1 in heart surgery” or “the top cancer treatment center in the region.” This is all designed to get more people to come to their institution for treatment and therefore, increase hospital revenue.
Competition is strong in every factor of our economy and it’s a major concern for everybody at the C-Level. Larger institutions are buying smaller competitors and even the other way around, in order to gain more market share. The CEO Level is charged with finding new approaches to increasing revenues, cutting costs in their operations, getting more done with less, all to gain a competitive advantage over others in their industry. When we call on C-level buyers, we must think like C-level buyers! We need to be thinking about ways that we might be able to help C-Level buyers accomplish their company goals.
Please visit me at http://www.mccannmotivations.com