When I started selling years ago, my first sales manager coached me to qualify an opportunity by asking if there was a budget allocated to my product or service. That was his entire definition of a qualified opportunity. Even worse, I was hired as specialist selling a new “revolutionary” product, so there were no budgets developed or allocated for my product. With his definition, not a single prospect I had targeted was qualified.
Since then, I have had the privilege to sell many more disruptive technologies that didn’t have the luxury of a healthy budget tide to smooth the waters. So I’ve developed a much more refined vision of qualification which doesn’t necessarily include a question about budget in the direct manner described above. My perspective is that qualification is a spectrum of potential positions. Ultimately, the best qualified opportunity is one that has just given you a purchase order, and anything less than that is somewhere on the spectrum of being developed into a qualified opportunity. I have a grouping of four buckets that help determine the level of qualification of the opportunity.
The first checkpoint involves the level of synchronicity between the prospect’s view of their problem and our solution as the answer. In other words, do they view my solution as the best way to address their challenges and contribute to resolving a critical business issue? If they don’t view my solution as the best, or that it will address their challenges, or that it will contribute to resolving their current business issue, than this qualification component is weak. This also implies that I must confirm their view on these subjects as part of my qualification process.
The second component is directly related to their sense of urgency and priority for my sale. My objective is to develop or uncover the impact of taking action or not taking action in order to help the prospect motivate themselves to take action. If I don’t explore this dialog, I have hampered my ability to heighten their motivation to take action, and my ability to qualify their intent.
Next is the stakeholder and authority aspect of a decision. The qualification of an opportunity is directly dependent upon the ultimate decision maker deciding he or she sees the impact of your solution as having a significant priority (second component above), and that it is the best solution to resolve their challenges and contribute to resolving a critical business issue (first component above). Qualification of this category also requires that the decision maker has discretion over funds and can allocate budget if none exists. Further, this category should also take into account the backing or opposition of the purchase by other stakeholders who can sway a decision maker.
Finally, the last bucket incorporates their decision process. Do I know their decision criteria? Have they verbalized when the decision must be made and why that timeframe? Do I have these items confirmed back in some written form? The confirmation of the subject is the highest level of qualification for each individual category. So how does this help a sales person sell more? The major contribution is to provide a guide. If the seller is setting out to answer the questions I’ve outlined, they will actually be doing a better job of facilitating a purchase. This reduces the contribution of “no decisions” to the outcome of a forecast in two ways. With this process, some opportunities can be moved from a “no decision” outcome to a winning decision, usually by helping to illuminate the connection to the impact and the current business issue. Further, disqualifying opportunities that have no chance of making a decision allows the seller to focus their efforts on opportunities that do have a solid chance of being won. It’s a tragedy to miss a perfectly good opportunity because the seller was focused on a deal that never had a chance of being won. That’s two losses in one.
ESG provides qualifying and disqualifying training that will improve sales, decrease sales cycles and differentiate you from lower cost alternatives. For more information, visit our website at www.enterprise-selling.com and read our most recent white papers on Enterprise Selling and Sales Transformation