How To Effectively Sell New Products To Current Customers Salespeople often ask how to effectively sell new products to current customers. Some clients are satisfied with the current service they’re getting and they’re not keen on investing in another one. There is a way through this sales ordeal. Thomas Steenburgh teaches business marketing and sales at the Darden School of Business. He’s also an administrator and has stayed with the school for seven years. His team did a five-year research project on how to effectively sell new products to customers and what’s so hard about it. Looking at the problem Thomas’ team looked at various factors: The different ways people sell The types of people who excel in the process The organization’s structure The culture that the companies/organization create The combination of these processes which is finding the right process, finding the right people, finding the right organization, and finding the right culture is the key to making this happen. The challenge If given a choice, most sales reps would love to sell new products because it gives them an advantage at the clients’ accounts. The question, however, is if they’d continue to put the same amount of effort from beginning to end. Selling new products takes a lot of energy and more time. Thomas and his team found out that selling a new product takes about 30-40% more time as opposed to selling an extension of a line. On top of that, sales reps need to meet with a lot more people in the buying process and develop a different network site to be able to sell. It is very resource-intensive. On the customers’ side, when you’re selling a new product, everybody wants to talk to you because people naturally want to know what’s going on in the marketplace. Sales reps become hyped due to the attention but not for long. When the reality sinks in, they’ll realize that there’s a change in the buying organization. It’s actually late in the sales cycle. This is problematic from the seller's perspective. What felt like traction would suddenly feel like getting stuck in the mud. Sales reps aren’t making any progress beyond the hype, they become discouraged, and eventually stop devoting effort in selling the product. When you face resistance, your numbers don’t go down quarter to quarter. What happens is that it becomes harder to figure out how to make that sale and investment. But if you persist, the effort will pay off in the long run. t can be difficult to make that commitment to selling new products when you have numbers to think of but in time, you will get there. New products take a while to sell Thomas’ research on several companies that did well shows that new products take a while to figure out how to sell. There are a couple of different types of mindsets for reps. One is the performance mindset sales reps who think of the quarterly numbers and the one who gets the joy out of learning and solve problems. Research shows that the trajectory of sales from these two mindsets is very different. Performance reps don’t invest in learning the product right after launch. The sales go down initially because they failed to learn how to sell the product. For learning-based reps, there’s a big drop early on because they spend that time learning the product instead of selling and marketing the product. In the long run, the sales of the performance reps recover but they go up only so much. For the learning-based reps, their sales go up at a rapid pace but it’s very late after the launch. Learn how to effectively sell new products to current customers by finding the...

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