Think of your sales strategy as the frame for your finished art piece – without the frame, the art piece would be incomplete. Something significant is missing.
The same is true for sales – your sales model and strategy are what hold everything together and create the foundation for your sales efforts.
There are several different sales models to choose from, but not all of them will be the right fit for your business. It’s important to select the model that will be the most effective in achieving your sales goals.
But how do you know which one aligns best with your goals?
We’ll go over that and more in this article, so when you’re done reading, you’ll have a good understanding of the different sales models and identify which one is right for you.
What is a Sales Model?
A sales model is a sales methodology that consists of a set of assumptions about how sales will be made. It can include the products or services to be sold, the markets to be served, the sales channels to be used and the pricing strategy. A sales model helps salespeople plan their sales efforts and measure their progress.
There are many different types of sales models, but they all have some common elements. Some commonly used ones are the product sales model, the market sales model, and the sales funnel.
The product sales model is based on the assumption that people will buy a product or service because they need it or want it. The market sales model assumes that people will buy a product or service because they think it is a good value. And the sales funnel assumes that most people will not buy a product or service the first time they hear about it.
Some sales models are very complex and involve many different steps, while others are very simple. However, all sales models need to take into account the basic concepts of supply and demand.
When there is more demand for a product than there is available supply, the price of the product will go up. And when there is more supply of a product than there is demand, the price of the product will go down.
What is the Purpose of a Sales Model?
The purpose of a sales model is to help sales representatives sell products or services. A sales model provides sales representatives with a roadmap for how to approach potential customers and sell products or services.
This roadmap will improve sales results by helping sales representatives focus on the most important steps in the sales process. Additionally, a sales model can help sales representatives determine which products or services to sell to a particular customer.
By using a sales model, sales representatives can better understand the needs of their customers and deliver a solution that meets those needs.
This sales approach is not only beneficial for sales representatives but also customers. A well-designed sales model will help customers understand the benefits of purchasing a product or service and make it easier for them to make a decision.
In addition, a sales model can help customers understand how the product or service works and what to expect from it. This transparency builds trust between the customer and the business and can lead to more successful transactions in the future.
Sales Model vs Sales Process
Although they sound like the same thing, a sales model and a sales process are entirely two different things.
A sales model is a high-level overview of how your company sells its products or services. It includes the different methods you use to find and close deals, as well as your overall sales plan. A sales process, on the other hand, is the specific steps you take to execute a sale.
Your sales model should be based on your company’s unique selling proposition (USP). What makes you different from your competitors? Why should customers buy from you instead of them? Once you have a good understanding of your USP, you can start outlining your sales methods and sales plan.
7 Steps to Selecting the Most Effective Sales Model
The sales process can be complex and overwhelming, but it doesn’t have to be. To make the process easier, it’s important to select the most effective sales model for your business.
There are a variety of sales model examples to choose from, so it’s important to understand the differences between them before making a decision.
The 7 steps below will help you select the most effective sales model for your business.
1. Consider Competitors and the Market Possibilities
The first step in selecting your ideal sales model is to consider your competitors and market possibilities.
What sales models are your competitors using? What is working well for them, and what isn’t? What do consumers in your industry want or need that your company can provide?
Once you have a good understanding of your competitive landscape and the needs of your target market, you can begin to evaluate the different sales models that might work best for your business.
2. Create a Buyer Persona
Next, you’ll want to create your buyer persona. This is a fictionalized representation of your typical customer. It will help you better understand their needs and how to reach them.
You’ll want to include key demographics like age, gender, income and education level. You’ll also want to think about what motivates this buyer persona and what pain points they’re trying to solve.
This will help you choose your sales model by identifying the right sales channels and content to create. Creating a buyer persona is a great way to get to know your target market better. It will help you better understand their needs and how to reach them.
3. Create a Buyer Journey Map
Creating a buyer journey map will help salespeople visualize the customer’s buying process and understand how to best interact and sell to them.
The buyer journey map will show the sales process from start to finish, including when potential customers are most likely to buy and what sales channels are most effective.
It will also help salespeople determine what needs to be done before, during, and after a sale to close more deals.
Creating a buyer journey map is a great way for sales teams to improve their sales processes and close more sales, which makes it essential for selecting the appropriate sales model for your business.
4. Develop a Sales Strategy
To find the right sales model, you need to develop a solid sales strategy. This will detail your target market, lead generation tactics, messaging, pricing strategy and more.
To make a great sales strategy you’ll need to:
- Know your target market: You can’t sell to everyone, so it’s important to know who you’re selling to. Define your target customer and understand their needs, wants and pain points.
- Generate leads: Without leads, you won’t make any sales. Use a variety of lead generation tactics such as content marketing, social media, tradeshows and more to bring in new leads.
- Establish your messaging: Your messaging should be clear and consistent across all channels. It should explain what you do, how you do it and what benefits your customer will get from working with you.
- Price your products correctly: Don’t undersell or overprice your products. Find the right price point that meets the needs of both your customer and your business.
- Use a sales process: A sales process will help you close more deals. It should guide your interactions with prospects, from initial contact, to proposal to close.
Having a solid sales strategy in place is key to finding success in any market. As long as you keep your customer’s needs in mind, you can’t go wrong.
5. Use the Right Sales Tools
Using the right sales tools is key to choosing your sales model. By using the right tools, you can more easily identify and qualify potential customers, as well as track your progress.
Sales tools come in all shapes and sizes, from simple contact management software to comprehensive CRM systems. The most important thing is to select the tools that fit your sales process and work style.
- There are several factors to consider when choosing sales tools:
- How many contacts do you have?
- What kind of leads are you most likely to close?
- What’s your budget?
- How much time do you have to spend on sales?
Once you’ve answered these questions, you can start browsing for the right sales tools. No matter which tools you choose, make sure they fit your sales process and work style. Trying to use a tool that doesn’t quite fit will only lead to frustration and wasted time.
6. Boost Your Sales Team’s Performance
When you boost your sales team’s performance, you’ll be able to find a sales model that is perfect for your company. You will also be able to increase the productivity of your sales team and find new ways to improve your sales processes.
Boosting the performance of your sales team can seem daunting, but it doesn’t have to be. Just be sure to focus on the following key areas:
- Training and development: Make sure that your sales team has access to the latest training and development tools. This will help them stay up-to-date on the latest sales tactics and strategies.
- Leadership and support: Your sales team needs strong leadership and support to be successful. Make sure that you are providing your team with the resources they need to be successful.
- Communication: The communication between you and your sales team should be open and honest. This will help them feel supported and motivated to achieve their goals.
- Tools and resources: Make sure that you are providing your sales team with the tools and resources they need to be successful. This includes everything from laptops to contact management software.
- Focusing on the customer: Make sure that your sales team is focused on the customer and their needs. This will help them to build better relationships with their customers and close more sales.
7. Measure, Analyze and Optimize
The last step in finding the ideal sales model is to measure, analyze and optimize the results. This step is essential to ensuring that your sales model is effective and profitable.
There are a variety of tools and techniques you can use to measure the results of your sales model, including surveys, focus groups, interviews, customer data analysis and A/B testing.
Once you have determined which measurements are most important to your business, you can analyze the data to identify trends and patterns. From there, you can then use the information you gathered to optimize your sales model to improve performance.
Now that you understand the buyer persona, how it impacts the sales process and why it’s important to choose the right type for your business, you’re ready to put this information into practice.
But don’t stop there! At Wizard of Sales®, we can help you take things one step further by providing training and resources so you can start having seamless customer-centric selling conversations with your clients.
Revolutionize your sales process today – contact us for more information!