Selling into large accounts can be challenging. As sales managers, we work so diligently to “even out” territories ensuring everyone has a chance to make lots of money. But, in many instances, we limit ourselves in how we go about reaching the potential of large accounts. Two scenarios with the same problem come to mind, all relating to your own perspective.
We know that large accounts with big names like Apple, Microsoft, Merck, UPS or Citigroup spend a tremendous amount of money to ensure their businesses are successful. They sign very large contracts with other companies, but not with yours. You look at these accounts as small since they currently do not bring in much revenue to your company. Isn’t this a self-limiting view?
What if you looked at these accounts differently? If you’re always thinking of these large accounts as “small,” then aren’t you possibly underestimating their potential? One recommendation is to do more market research, upfront, to understand what each firm is trying to accomplish in big, broad business terms. Such information is typically found in annual reports, analyst calls, 10-Ks, etc. Then, determine the value your product and services can bring to that firm by figuring out some small, medium and large revenue assumptions. Finally, look at the overall potential of the account and then assign territories. Although the potential purchasing timing may not be known, it will give you a better swag at territory development.
Now, these big-name, large accounts may not truly need your product and services, and therefore may be deemed a smaller revenue account. But, as a sales manager, you have to do the research (or have someone do it for you) first to ensure territories are as equally distributed as possible based on valid data.
In this scenario, you have the same large accounts, but you only sell them what will help you make quota. The key issue is, you’re failing to see the potential of the account in totality and/or you are self limiting what you believe is a large investment for your customer. If you only price opportunities at a price point that gets you to quota or a bit above, with no view as to the potential value of the big-name account, then you are most definitely leaving money on the table. Typically, this occurs when you don’t truly understand the value your products and services can deliver to your prospect/customer. Or, you have a self-limiting perception of what a big deal really is. For example, your view of money is limiting if you think $2 million dollars is a lot of money for the customer to spend, even though they get hundreds of millions in value per year.
In the first scenario, you’re limiting yourself since you view the account as small from a revenue perspective – that’s your perspective, not your customer’s. You do the same in the second scenario by limiting the opportunity to fit into our quota. They may pay more money for your products and services, but in your view, you limit yourself by thinking that’s a lot of money, so why bother going for more?
Eliminate those self-limiting thoughts when looking at large accounts. It’s all about the potential of what your products and services can provide to these bigger clients. Determining the size of the deal depends on what you find out by researching the account and talking to executives. Gain perspective on their major initiatives and goals over the next 1-3 years and what the value means to them specifically. That being said, don’t forget about the many smaller accounts that could have just as much or more potential for your products and services. Are you limiting yourself in both large accounts and small, and not selling to your full potential?