Hope is Not a Strategy - Qualifying Opportunity to Maintain Reality

There are tough times ahead for many of us/our business interests and investments - I’m yet to talk with anyone who strongly disagrees with this view.

Conditions will not be bad for all and they will of course change and improve over time but many are figuring out how to survive during the wait for the market conditions that will allow them to thrive.

For those of us with kids, we probably remember asking them how their day was or how they are and receiving a one-word response - "good".

Only to discover later that "good" was far from accurately describing what had happened that day. Their response was driven primarily by the most acceptable but non-engaging description that allowed them to move on to other things as quickly as possible.

But you do not need to have raised kids to recognise very similar/equivalent situations occurring regularly in businesses of all sizes and stages.

"How are sales looking?" , "What's the Revenue forecast this month?", "Are we on track to hit our budget numbers?"

These were some of my most dreaded questions as a CEO in board meetings for some reason and yet they were all perfectly reasonable and logical questions.

But they were questions that often did not have good answers to and that made me very uncomfortable and often moved to a defensive or delayed response when I hoped there might be a better answer.

But hope is not a strategy

and it's this sort of behaviour that leads to many negative outcomes and the"how did we not see this coming" type challenges that organisations often end up in the headlines for or unexpectedly at the end of a viable business path.

Solving or at least improving these challenges is part culture and part process in my opinion.

Creating an inclusive "just" culture and common language around an organisation's key metrics is essential to ensuring effective and optimised management of a business.

Most of us have come across the concept of sales qualification frameworks if we are close to the sales elements of a business.

But fewer of us have evolved our organisational culture to embrace the importance of radical candour at all times and at all levels when it comes to the reality of your business's vital signs - new and existing revenue expectations being two of the most critical.

The classic first signs of an ineffective qualification strategy and culture are often seen in the sales pipeline showing “opportunity drift”.

Deals are portrayed as very close to closing and yet they appear in the same stage of a sales pipeline 6 months later with no additional context as to why they have not closed or at least been moved to another longer-term closing stage.

In my corporate roles, I often played a quiet internal game with myself at sales meetings to predict how many of the same opportunities would be highlighted by certain sales reps as their main focus and closing in the near term.

Some of them did eventually close but not due to the efforts and skills of the salespeople assigned to them - they were simply dead weight not adding value to the closing process - expensive dead weight.

So here’s a quick overview of some of the basics around sales qualification methods.

Regardless of the method you choose, the outcome you're looking for here is genuine alignment company-wide around the common language that allows a business to respond to good and bad news as quickly as possible when it comes to revenue and retention.

While targeted primarily at salespeople I think the concepts and understanding of them should be table stakes required for most if not all members of a an organisation.

I hope you find it helpful.

Effective Sales Qualification Strategies

To move beyond hope and toward a more reliable sales and sales management strategy, sales professionals must embrace a structured approach to sales qualification that is understood and practiced by all.

This involves a combination of consistent activity and the implementation of proven qualification frameworks. Here are 6 key things to consider:

1. Implement a Qualification Framework

Using a structured qualification framework helps ensure that each lead is evaluated systematically. Some widely used frameworks include:

- BANT (Budget, Authority, Need, Timeline): This framework helps salespeople determine if a prospect has the budget for the product, the authority to make the purchase decision, a genuine need for the product, and a timeline for the purchase.

- MEDDIC (Metrics, Economic Buyer, Decision Criteria, Decision Process, Identify Pain, Champion): This framework focuses on understanding the quantitative impact (metrics) of the solution, identifying the economic buyer, understanding the decision criteria and process, identifying the prospect's pain points, and finding a champion within the organization who will advocate for your solution.

- CHAMP (Challenges, Authority, Money, Prioritization): Similar to BANT, CHAMP adds the element of prioritization, ensuring that the prospect's challenges are a top priority for their organization.

My personal favourite is SCOTSMAN

It doesn’t matter what you use - what matters is everyone understands it’s meaning around each deal and what needs to be done/covered to get it to the closing stage.

2. Maintain Consistent and Targeted Activity

Activity is the backbone of effective sales qualification. This means consistently reaching out to and engaging with prospects, asking the right questions and listening carefully to the answers.

Targeted activity ensures that efforts are focused on prospects who meet the criteria set by the chosen qualification framework.

Key activities include:

- Research: Before engaging with a prospect, conduct thorough research to understand their business, pain points, and potential needs.

- Outreach: Use a mix of communication channels to reach out to prospects. Personalise messages to address specific challenges and demonstrate how your solution can provide value.

- Follow-Up: Consistent follow-up is crucial. Schedule regular touchpoints to stay on the prospect's radar and address any emerging questions or concerns.

3. Ask the Right Questions

Asking insightful and targeted questions is essential for uncovering the information needed to qualify a lead effectively. Some examples include:

- "Can you tell me about the biggest challenges your team is currently facing?"

- "What is your timeline for addressing this issue?"

- "Who else will be involved in the decision-making process?"

- "What criteria will you use to evaluate potential solutions?"

4. Actively Listen

Active listening involves fully concentrating, understanding, responding, and remembering what the prospect says. This helps in gathering valuable information, showing empathy, and building trust.

Take notes during conversations and refer back to them in follow-ups to show that you value their input.

5. Leverage Technology

Utilise CRM (Customer Relationship Management) software and other sales tools to keep track of interactions, set reminders for follow-ups, and analyze data to improve the qualification process. Tools such as Salesforce, HubSpot, and Pipedrive can help streamline activities and provide insights into the sales pipeline. There's also always the trusty spreadsheet if you are so inclined.

The key thing is you have 1 place to store, update and communicate:

• All the key information about your deal/opportunity
• An easy way to identify "gaps" in your qualification framework from which to formulate questions and contact with other roles within the prospect's organisation
• A "pipeline" that calls the deals that are close to closing and those that need more work

6. Apply Continuous Improvement

Regularly review and refine your sales qualification process. Analyse what works and what doesn’t, and be open to making adjustments. Seek feedback from your team and consider attending sales training programs to stay updated with the latest techniques and trends.

By adopting a structured and strategic approach to sales qualification, sales professionals can move beyond hope, reduce inefficiencies, and achieve more consistent and predictable results.

In Summary

Too many organisations do not have an effective sales culture when it comes to communicating a realistic picture of revenue and retention.

This often leads to confusion, focus on the wrong priorities and unwelcome issues around cash flow and solvency.

Avoiding accuracy and delaying bad news in the hope that something new and positive will pop into the sales pipeline is a key sign of a culture that could operate more effectively and has an urgent need to understand and qualify the business that is closing in the near to medium term.

Implementing a common language around sales pipeline and qualification will drive better performance and predictability over time and help an organisation avoid many crunchy challenges "coming out of the blue" regarding solvency and liquidity/cash flow.

For more on all things Sales and Sales Culture head over to Salescult or send me an email directly - [email protected] .