Different types of Goals when selling

written by: Patricia Terrone; article published: year 2007, month 01;



In: Categories » Business » Strategic planning » Different types of Goals when selling

A goal (again according to Funk & Wagnalls dictionary) is "something toward which effort or movement is directed—an end or objective." Customers' goals always involve either achieving a positive result or avoiding a negative one. One of your primary sales responsibilities is to motivate customers to understand their goals. Making goals measurable provides customers with that motivation. Goals become the standards against which customers judge your products. You make the goals customers want to achieve work in your favor. You let logic and measurable proof run their predictable course.

Know Customers' Goals Even If They Don't

Fortunately, most customers do not know what goals they want to achieve. They do not even think in terms of goals; they think in terms of needs. After all, they have mainly been exposed to sales methods that focus on needs, or pain. Yet, your best opportunities arise when customers do not know their goals. Soon they will— thanks to you. As an industry expert, know what your customers' goals should be in case they do not. Everyone wins (except competitors) when you help customers to set quantifiable and attainable goals that accurately reflect their priorities and connect to your unique strengths.

When you ask customers what goals they are trying to achieve, be prepared for blank looks as well as wonderment and appreciation. They will respond, "Gee, I have never been asked that question before." Needs-focused customers and product-focused salespeople do not discuss goals. This lack of goal discussions is to your advantage. Then, they will ask you, "What exactly do you mean by goals?" You must be able to answer their questions by knowing the typical goals of their industry. You will now have positioned yourself as a customer expert. You will have separated yourself from the typical product-packing salespeople. Caution: The rally killer of a sales call is two "What do you mean?" questions in a row. If the customer asks you, "What do you mean?" after you ask what his or her goals are, you can't answer, "What do you mean, what do I mean?" Make sure you know typical industry goals.

Note  The University of North Carolina's Kenan-Flagler Business School conducted a survey of chief executives and senior management. They were asked what they considered to be the most important reason for meeting with a salesperson. More than 70 percent of them responded that a salesperson's knowledge of their industry and company would be the major reason why they would agree to an appointment. Knowing their goals makes you that salesperson.

Therefore, your initial emphasis in sales opportunities is to help customers define their goals. When you help customers set goals, you do not need to wait for them to have an obvious pain to act upon. You act as a catalyst to motivate customers to pursue and achieve measurable goals. You are in control of your own sales destiny when you act (as opposed to when you react).

Note  When a customer doesn't have clear-cut goals, ask what one thing would make his or her company more competitive. Know the competitors of your customers' strengths and weaknesses and you become a valuable asset to them.

One Big Product Reason to Focus on Goals, Not Needs

Often, customers will request a specific feature that your product does not possess. When you question customers on why they need that feature, it is difficult for them not to question your motive. After all, if you cannot provide the feature, it is in your best interests to discourage them from wanting it. Customers find it hard to view you as an objective participant. However, that perspective changes when you know the customers goals—and question them on how that feature helps them achieve their goals.

For instance, a customer says he wants framing material that consists of half-inch-thick titanium. He knows that you only provide quarter-inch-thick framing material. If you question him on why he needs a half-inch and not a quarter-inch thickness, suspicions may arise that you are placing your own interests (keeping the sale alive) over his interests. However, if you know his goal is to prevent rusting, you could then ask him how he thinks half-inch-thick titanium helps him prevent rust. Once you know the answer, you can determine whether the size difference achieves his goal, or just ends up adding costs as a diluting feature.

General Categories of Customer Goals

For examples of general corporate categories and specific customer goals, see the table below

Broad Goal Categories Specific Customer Goals
  • Administrative
  • Maximize organizational resources
  • Ensure compliance with laws and codes
  • Ensure longevity of organization
  • Customer Service
  • Improve customer satisfaction
  • Improve corporate image
  • Finances
  • Improve cash flow
  • Increase return on investment (ROI)
  • Improve shareholder value
  • Increase profits
  • Competitiveness
  • Increase market share
  • Develop new products and services
  • Maximize engineering, manufacturing, marketing, and selling resources
  • Open up new markets
  • Manage growth and change
  • Operations
  • Improve reliability
  • Increase efficiency and productivity
  • Improve work environment
  • Reduce operating expenses
  • Increase safety

Examples of general corporate categories and specific customer goals.

From Vendor to Supplier to Partner

When you focus on customers' needs, you are a vendor. Like a vending machine, you display your products and wait for customers to buy from you. You leave it up to customers with a commodity mentality to choose which goodie they want most. The customers' purchasing decisions are driven by availability of product and price. It is difficult to sell value as a vendor.

When you are a supplier, you concentrate on helping middle-management customers to achieve short-term, measurable goals with the products you supply. Short-term goals usually involve issues that have an immediate effect on only their department, such as improving operations or reducing administrative expenses. You have moved ahead of vendors on the value chain. You also have the opportunity to be compensated for the value your products generate. However, as customers better understand their short-term goals, it becomes easier for them to start picking their products. You now risk becoming a vendor again.

When you help senior-management customers to achieve their long-term business goals, you become a partner. These goals center on Column 2 measurable benefits, such as improving market share, increasing stock price, and reducing employee turnover. You then help customers recognize how your products help them to achieve short-term goals that are consistent with their long-term objectives. Now the Column 1 value of your relationship and the cost of change become greater barriers to customers who consider competitors to be mere vendors and suppliers.

Market Segments and Customers' Goals

When you understand the concept of market segments, you understand the goals that customers want to achieve. Market segments are groups of customers with similar goals that respond to the same offers in the same ways. Their goals are predictable. When you can predict their goals, you can duplicate your sales successes. The market segments sharing goals that your unique strengths or strongest features can achieve are your best sales opportunities. They place the highest value on your greatest strengths. How far you segment a market depends on the point at which customers' goals match up to the unique strengths of your products and your company.

Example

Salesperson Judy Wright sells laundry services to hospitals, but not just any hospitals. She knows that large hospitals and publicly funded hospitals do not make good prospects.

The former have their own laundry facilities when they have more than three hundred beds, while the latter always bid out laundry services solely on lowest prices. She realizes that hospitals are not a market segment because they have many varying factors. Instead, she classifies private hospitals with fewer than three hundred beds as a high-opportunity market segment.

The more specific the market classification, the better the chances that your target market segments respond to the same offer, the same way. Obviously, do not classify market segments to the point where their size is minuscule (niche markets) unless your profit margins on those sales are huge.

The concept of market segments further highlights the differences between goals and needs (pain). Businesses set up their organizational structure to concentrate on different market segments. Almost any company these days has groups of employees who cater to specific groups of customers with similar goals. It would not make sense for this type of structure to exist if customers bought primarily for subjective or emotional reasons (pain, needs).

legal disclaimer

1) Our website is not responsible for the information contained by this article as well for any and all copyright infringements by authors and writers. E-articles is a free information resource. If you suspect this article for any copyright infringements, please read the Terms of service and contact us to investigate the problem.
2) The E-articles directory team is not responsible for inaccuracies, falsehoods, or any other types of misinformation this tutorial may contain and will not be liable for any loss or damage suffered by a user through the user's reliance on the information gained here. Please read the Terms of service

Useful tools and features

Translate this article to...    Send this article to you or to a friend

Link to this article from your page   
If you like this article (tutorial), please link to it from your web page using the information above. Linking to this page, this is the only way to help us improve our service, the same time providing your visitors with a way to improve their online experience.

related articles

1. Strategies for Success and Business Profitability During Tough Times
Many of the strategies that were appropriate and effective in the past are no longer above reproach. In fact, we have learned over the years that the global marketplace is a dynamic place, full of turmoil; therefore, rethinking of past assumptions and engaging in out-of-the-box thinking is always required. Organizations need to address this constant change, focus on the state of the world, both as it exists now and as it may be in the future, and raise their performance to new levels of effort and achievement....

2. The Six Major Challenges Of Successful Enterprises
The evidence is clear that to survive and succeed, enterprises must change their approaches to conduct successful business in the globalized economy. Whereas gradual change has always been required to adapt to new conditions, the pace is now accelerating and incremental change is no longer sufficient. There are many reasons behind the needs to change. 1. Work is becoming more complex resulting from — Continued efforts and advances to streamline business and automate routine tasks. ...

3. Significant Planning Guidelines and Policies
Planning guidelines and policies are statements or ground rules that provide a framework for management decisions and actions that are related to the achievement of organizational objectives. The framework established by these guidelines and policies also affects decisions made within the context of the strategic plan. It is not concerned with day-to-day decisions as long as those decisions are consistent with strategic objectives. This framework, in general, serves three important purposes: It (1) provid...

4. How to Control Interruptions
How much time do you lose each day to interruptions? Thirty minutes? An hour? Two hours? Are most or these interruptions of value? When you are interrupted, do you find that when you go back to what you were working on it takes almost as long to get back to where you were as it took to do the work originally? If so, all the work you did originally and all the time you invested are wasted. If you are one of the many people who are constantly interrupted, you’ll benefit enormously when you use the ideas that follow...

5. What Does It Mean That an Enterprise Is Effective
Fundamentally, an enterprise is effective when it is able to reach its goals and satisfy its objectives. Its goals and objectives must be realistic and reachable and in line with the enterprise’s purpose. From more practical perspectives and in detail, for an enterprise to be effective requires that its functions be executed efficiently in close support of its intent and desired direction. It also requires that the enterprise innovate and renew itself from top to bottom. A basic goal of any enterprise &...

6. Comparing Product Oriented and Customer Centric Organizations
The design and implementation of a customer-oriented strategy, having as a central concept the Customer Lifetime Value (CLV), represents a very good example of a complex operation which necessitates a radical reorganization of the company. Such reorganization is not necessarily in terms of physical structure, but rather in terms of philosophy and process management. In a product-oriented organization, the firm studies the market and its own resources, attempting to create a better marketing-mix offer than the competitors...

7. How to Prepare a good Business Budget
Sales Planning Consider the historical patterns of behavior for your customers, your markets, your products, and your competitors. The success of your company depends on the success of your customers. Company sales will be affected by the economy. Identify how future economic events will affect your business. This includes looking at consumer outlook, inflation, taxes, political events, and the business cycle. Ask the sales organization for its input. The salespeople know the customers ...

8. Basic strategies of Business Planning
There are a number of reasons why planning is necessary: The future is not an extension of the past. The rate of change in the marketplace will continue to accelerate. Technological progress is taking place at an extraordinary rate. Regulatory issues require constant attention. Population changes, demographics, and geographic shifts require constant adjustment of marketing strategies. Global competition is common in almost every industry. B...

9. How to Sell Solutions at the Highest Level
Sales take place at different levels. Some sales require what I call the clerk approach. If I’m buying a toothbrush and the store clerk started asking about how often and how long I brush, I’d run. I just need a toothbrush. Some sales require the salesperson approach. If I’m buying a computer, I need to buy one that will help me with the kind of work I do. Knowing the number of gigahertz and gigabytes doesn’t help me much, except to assure me that it’s big and fast. If I am making strat...

10. Strategic Issues and Action Plans for Business Success
There is a lot of talk these days about how this period of prosperity cannot last forever. This is certainly a true statement, because nothing lasts forever. The fact is that many public companies have already begun to report reduced earnings. There are many explanations for this. 1. Companies that sell to Asia or Europe have already been experiencing a recession. Those with heavy investments in the Far East have certainly been having severe problems for the past few years. The Japanese stock market is do...