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Selling Services

Michelle was nervous. She told me she was worried she would lose her sales job for a well known technology company. As a single mother of two teenage boys, her anxiety was difficult to avoid noticing and uncomfortable to watch. As she detailed her situation, varying between 70-90% of her quarterly quota for several quarters in a row, I had to agree with her. If she didn’t do something soon, she would need to dust off her resume.

In her defense, she described several reasons for the shortfall in performance: the flagship product was experiencing new competition at the low end of the price spectrum, her territory had been cut in half the year before, and several new product introductions failed to meet expectations for revenue growth across the company. After some prodding, she shared the good news, she had several loyal accounts that stuck with the flagship product, had been open to evaluating the new products, and in general, were still steady state revenue producing accounts.

After poking on several strategies for improving her performance, I asked about her services revenue. She scrunched up her face and explained that she has tried to sell services but the notion usually falls on deaf ears. As I dug deeper into the subject, I concluded she was selling services with a datasheet, not by creating need. 

Here’s the strategy we developed to help Michelle turn the lackluster results into a quota achieving business. 

People buy services for three reasons:

  1. They don’t have enough people to get a task completed. Almost every team feels like they are short handed, so probing for this problem almost always hits pay dirt.
  2. They don’t have the skills or knowledge to complete a task. While difficult for some to admit, if there is a change in technology, or the product you’re selling is new to the customer, it makes it easier to uncover.
  3. The requirements to maintain low value activities robs resources from higher value activities or vice versa. If they are bailing water out of a small boat, its difficult to take time to start the motor… meaning its difficult to focus on more value added activities if they’re swamped with mundane tasks. On the other hand, if your customer has to choose between installing your software or responding to a fire drill imposed by a prominent internal customer, you lose as well. In either case, services can unburden your customer so they can focus on high value add activities while you execute on low level activities like installation or training.

The challenge for the seller is to uncover one or more of these conditions to create the need for services. Simply laying out your service capabilities (data sheet selling) isn’t sufficient to create the need for services to augment a product sale.  The seller has to surface the problem and then tie that problem to a lack of results.

The second challenge is to develop this problem definition with a level of authority that would not perceive services as a competitive threat to their own job. The lower your contact level, the more likely they will view a service option as undermining their value add to the organization.

Michelle picked three organizations that still had not deployed her solution since their purchase months before. A key part of her strategy was to target senior level management who were more sensitive to the lack of results than they were to insecurity about outsiders contributing to the initiative.

The results were truly life changing for Michelle. All three of the opportunities identified by Michelle agreed that one or more of the problems above were impeding their deployment of her flagship solution which in turn was delaying their achievement of financial results. Even more powerful, when one of the target accounts implemented deployment services, they realized they needed more product, so Michelle created more product opportunity by getting the shelfware deployed.

Michelle ended up at 107% of quota for the year, and has since integrated a services strategy into all of her major sales opportunities.

If you’re looking for a way to improve revenue results, build more loyal customers, lock out competition, and elevate your value to your customers, I suggest you take a look at a services sales strategy. You’ll need to get comfortable looking for the three people related problems identified above, and bringing the problems to the attention of a senior leader who has a stake in the outcome of the initiative at hand.

Kevin Temple guides sales teams to be more agile and improve revenue outcomes. He can be contacted at kevin@enterprise-selling.com. The Enterprise Selling Group is a leader in delivering sales training, coaching and project oversight to improve the agility of sales teams around the world.

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