Wired for Sales

Just for fun, I decided to track every mention of the phrase “Target Account” since the start of the new year. As we approached the end of January, I personally logged 25 conversations tied to the “Target Account” concept. Nowadays, everyone wants to target accounts. Maybe that’s a good thing.

Research indicates companies that have well-thought-out targeting processes are 40% more likely to reach their sales goals. What’s more, the concept works in both good and bad economies. But the topic causes me heartburn for one main reason: The term “Target Account” is used ubiquitously in our industry. The issue is, the phrase has been defined differently by different people.

This lack of definition creates wasted time and effort and eliminates opportunities for improving the process. Worse yet, when distributors and their supply partners use the term to describe dissimilar intentions, one or both companies may lose money, and in some instances, reputations are damaged.

Stepping back in time, I remember my first encounter with the target phrase. I had just been introduced to the top seller of one of my newly assigned distributors. We had a short chat about the current situation, some new products, and personal interests. When the time came to leave, his parting words were, “Call me next Monday and we can target some accounts.” I answered yes, but I was unsure about his true intentions. When we spoke a few days later, I figured it out. He wanted to make joint calls to companies with no sales to gather more information.

Over the years, I have seen Targeting Accounts defined in many ways. Here is a short list:

(1) Joint call prospecting with a supply partner.

(2) Doing a product pitch to your top 10 accounts.

(3) Joint calls at the distributor salesperson’s largest account.

(4) Making an extra number of sales calls for a specific product.

While all these activities could conceivably boost sales dollars, they are not targeting.

MY DEFINITION(S) OF TARGETING ACCOUNTS

I have two distinct definitions of targeting, each with its own purpose and sales finesse. Although they may interact, both require an understanding of the customer’s situation.

Product Targeting: The introduction of a product to a customer who is very likely to apply it. Here, the salesperson employs what they know about the customer to determine the potential level of interest. The more the seller knows about the customer’s situation, the higher the probability of making a sale. Selling time productivity is maximized.

For example, the seller discovers a sensor designed to operate underwater. Instead of taking it to all their accounts, they make an appointment to show it to a company making boat docks and a company whose manufacturing process must happen underwater. In both instances, the product is warmly received, and the probability of sales success is maximized. Making a sale is almost guaranteed.

Company Targeting: A plan for capturing additional wallet shares from an existing account. In this instance, the salesperson devises a plan to systematically pick off weaker competitors until their company becomes the dominant supplier to the customer. In the best cases, the seller not only adds new products to the customer’s market basket, but they also introduce services that embed them into the customer’s manufacturing process.

Here’s how it might work: While reviewing their top accounts, the seller discovers that Acme Anvil purchased many products across several categories but is missing a half dozen smaller product groups. After making some subtle inquiries with key contacts at the account, they learn the customer’s spend is significant, but the competitor selling the product provides little or no service. The salesperson continues to gather information and presents options for conversion to key customer contacts.

Both kinds of targeting involve strategy and opportunities for a sales manager to coach and mentor their sellers. Both types of targeting improve the customer experience. Sales calls become customer solution-focused. It’s easier to bring a supply-partner’s local teams into the equation when they know your process. Planning time replaces wasted person-to-person selling time.

If your version of “Targeting Accounts” doesn’t contain either of these methodologies, you’re giving up advantage and opportunity.