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SEGMENTATION BASED ON SALES LOGIC

Effective management of customers and sales differ depending on the purchasing behaviour of your customers. This is in turn determined by the complexity of the deal.

Sales approaches that work for simple, traditional offerings, is not right for more complex ones. In our view, there are different types of sales logics, that you need to take into consideration.

SalesLogicModel2

  • A traditional sales logic is characterized by small investments, and low risks for the customer. What is purchased are standardized and generic products, where price often determines the competition. Decision processes contain few stakeholders, and range from a few hours to days.
  • A complex sales logic is characterized by large investments and high risks for the customer. What is purchased are customized solutions – complex products or services, that customers perceive as complicated purchases. Decision processes contain many stakeholders and range from days to weeks.
  • A distributed sales logic is characterized by strategic urgency for the customer. What is purchased are customized solutions. Decision processes contain many geographically dispersed stakeholders and committees. They range from weeks to months.

If we use the same sales model for all sales logics we risk ending up in semi-complexity – in which we have an approach that is not really effective for any kind of deal. Our studies show that companies that decrease the share of semi-complex deals by as little as 10% can increase their profit margin by at least 1,5 percentage units. It is therefore important to segment your customers according to complexity. 

Materials for use in your work

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