Sell effectively to companies based on their growth
Based on their growth trajectories, firms need different offerings from their suppliers and their buying criteria also differ.
As a current or aspiring partner to a company (or to a division within a company), recognize the speed of growth of your prospect when preparing your messaging and solution offering
Looking at it from another angle; assess the solutions/products which your company offers and whether they will be valued by clients which are in high or more sedate growth trajectories – and focus your sales efforts on ones who will.
Selling to a high growth company/group
High growth companies (divisions, groups), are focused on ramping up fast to meet growth goals, while dealing with multiple situations which are new and unknown.
The main goal for these companies is effectiveness – hit the growth numbers and capture market share.
Since the ramp up is fast situations new and unknown, they recognize that errors will be made. There will be hits and misses.
Efficiency and cost are secondary – market share is key.
If you are looking to do business with these companies (or divisions), your service/solution offering needs to demonstrate how it will contribute to helping them contribute to meeting growth goals.
Three key parameters around which you want to craft your offering and message are
Ability to scale rapidly
Speed of response & responsiveness
High growth companies will pay a premium to those who can help them hit growth goals, recognizing that if they win in the market they will earn much more than what they have paid
At the same time, they recognize that sustained growth is only possible if their products work, systems scale, and customers come back to buy again, hence quality is important.
High growth clients have their hands full. When making choices, they will always lean towards a partner who can ramp fast and take work off their hands while also assuring that the work product will meet quality standards.
Selling to slower growth companies/groups
Slower growth companies (divisions) in contrast tend to be more focused on margin improvement and cost efficiencies.
At the same time, they will be receptive to any opportunities to grow faster by adding new products or markets
When looking to do business with these companies (or divisions), demonstrate that your solution offering can help them improve margins/cost or add a new revenue stream to contribute to their growth.
Three key parameters to focus on in your messaging should be
Margin and cost improvement
Ensuring high quality and minimal re-work
New avenues to help grow topline
When selling to them, the message of margin and cost improvement needs to be also complemented by the one that you will get it done right the first time. These companies want it done first time right because the cost of re-work is high. Hence, they will give preference to suppliers which can demonstrate a higher assurance of quality and reliability.
Very importantly, the drive to improve margins/reduce costs is an ongoing quest. Suppliers partners need to recognize this and ensure that they show continuous improvement in the cost of their own delivery – and share it with the client. That is essential for client stickiness. Those who miss this may see their business at risk and be on the wrong side of re-bids and supplier replacements.
Aside of margin and cost improvement, slow growth companies are continuously looking for avenues to grow topline. If you as a supplier can offer options to help create new product/solution categories, help sell in new markets, or any other initiative to help boost growth for your client – you will create a strategic or preferred vendor status for yourself.
The buying behavior of fast and slow growth companies is different.
When selling to them, you need to recognize it and craft your offering and messaging in a way that it aligns with their goals and expectations from their vendor partners.
The below table summarizes three themes which will resonate with these companies.