Transactions to Solutions: Are You Ready to Transform your Sales Culture?

By Walt Zeglinski, CEO & Chief Client Advocate, Integrity Solutions

Are your salespeople focused on selling products or creating value?

Do you have the foundations for a customer-centric culture?

What will it take to make the transformation to solution selling? 

For over forty years we have worked with organizations across industries and around the world. During that time we have been confronted by a wide range of sales challenges, but one stands out above the rest:

“How do we get our sales team to sell solutions?”

Through experience we have learned that there is no “one size fits all” answer to this question. Selling solutions requires an organization to make significant changes. When you ask a sales person to shift their focus from product seller to problem-solver it can be traumatic. So it’s important for an organization to reach consensus on the answers to three questions: How to Define Solution Selling? What are the Barriers to Solution Selling? Will the Payoffs Outweigh the Challenges? Once clear on these three issues an organization is ready to consider embarking on this transformational change.

How to Define Solution Selling?
   
By definition a solution is a method for successfully fulfilling a want or need. It stands to reason that if a sales team is to succeed in becoming solution oriented, they must begin by establishing their capabilities as problem-solvers. But developing the commitment and competence to problem-solve is not always easy. There are many other dynamics within an organization that become barriers to their success. For example, if a company has a market leading product they may devote lots of resources to promoting it. Sales people in this environment are likely to get comfortable in the role of persuading prospects and customers to buy this product and expand that approach to other products as well. Solution salespeople are more likely to define their role with the value their solutions provide to their customers. Although it is a matter of degree, the latter role definition will encourage salespeople to focus on developing and communicating the benefits of a solution rather than the features of a product.

What are the Barriers to Solution Selling?

After arriving at a common definition for solution selling, an organization might decide that making the transition is not in the best interest of their business. We have experienced situations where a given industry, market or product does not lend itself to a solutions-driven approach. In other cases a company may not have the patience (or cash flow) to stay the course long enough to achieve their goals. The latter can be a problem because solution sales can create longer selling cycles since they involve more comprehensive decisions. We also have found that some sales processes and/or the people that execute them can’t adapt to the changes. If any of these scenarios are present an organization may decide that the changes are too difficult, too expensive or both.

Will the Payoffs Outweigh the Challenges?

We are not suggesting that solution selling is somehow better than other sales strategies, but it can have a significant payoff for an organization. It really depends on whether a sales person truly understands the value expectations of their customers and prospects. Not every customer wants or needs a solution. Some are product buyers and only care if your products or services can fill their functional needs. However, if salespeople can avoid the commodity perception by differentiating their total offering, they can become solution sellers.  If an organization can elevate their value to their customers, they will be richly rewarded.

Building a Foundation

Every employee who interacts with a customer has the potential for providing a solution. Even transactional salespeople can distinguish themselves by demonstrating sincerity and caring. Their commitment can set them apart from their competitors and might create value for a subset of their customers. But well-intentioned salespeople are not enough to accomplish the difficult transformation to solution selling. A company must make a conscious decision to place their customers at the center of their business before they can hope to change perceptions of the market.  Building the foundation for a solution-driven sales culture requires consideration of three critical indicators:

1. Market Positioning

When an organization’s message in the market is dominated by language that focuses on products or services, they will attract transactional buyers. Messages that promote products generate a commodity perception and interest based almost solely on price. These customers will not pay a premium because they do not experience “extrinsic value” that goes beyond the products/service to a business or personal result.

Companies that sell solutions are successful at defining their value in terms of the problems they solve, not the products they sell. A notable example is the McKinsey consulting organization that organizes its website by industry and/or business issue. By emphasizing the business value that exists beyond its services, they established themselves as a solution provider. Another example is UPS who has retooled its value proposition from delivery services to logistic experts. Customers will pay a premium for expertise.

With careful messaging and a multi-faceted marketing strategy, an organization can separate itself from its competitors. By emphasizing experience and expertise in a certain industry or business issue, a company can communicates to the market that it has developed into customer-centric sales culture.

2. Cross-Functional Alignment

An organization’s mission, values, strategies and leadership must support and reinforce the behaviors that ensure a solution-driven sales culture. Every department must accept their responsibility in the value-creation process. For example, when an accounts receivable person fails to respond to a billing question from a client, he/she sends the message that the organization is not customer-focused. Another example is when a product development team cares more about creating products they think are great because of their technical sophistication without consulting with their customers. These examples suggest organizations that are more interested in transacting business than providing solutions to problems. Everyone in a company from the loading dock to the executive suite can have an impact on customers, either directly or indirectly.

Likewise, systems can cause misalignment. CRM, compensation, and performance management systems that focus on internal operational excellence rather than external customer concerns can create a barrier to developing a solution-driven sales culture. In fact, many compensation systems reward salespeople who favor short-term revenue over long-term relationships. This almost certainly will undermine adherence to a customer-centric sales process and is sure to cause conflict by rewarding short term payoffs over creating customer value.

3. Customer-Centric Sales Process

The implementation of a customer needs-focused sales process might be the single most critical factor in an organization’s transformation from transactions to solutions. An effective solution selling process must be flexible enough to mirror the buying process of a prospect or customer both in timing and content. Value will not be created for a customer until they are receptive to the solutions that are being offered. If a sales process is out of sync with a prospect or customer expectations they will resist. We have found that the best solutions-driven processes track whether the key outcomes at each step of the process align with the needs communicated by the customer. This will ensure they will get what they want, when they want it.

A customer-centric process for selling solutions …

  • Is an exchange of value.
  • Is not about selling something to a customer, but doing something for them.
  • Develops trust and rapport before any selling activity.
  • Understands a customer’s wants or needs before offering a solution.
  • Always gives way to values-driven principles.
  • Stress truth, respect and honesty as a basis for long-term relationships.
  • Never exert pressure on a customer until they communicate they want a solution.
  • Is never manipulative in dealing with customer concerns. 
  • Develops solutions that are a victory for both the salesperson and the customer.
  • Is committed to ethics and values rather than techniques or strategies.

We have found that successful sales professionals clearly define explicit wants and needs before providing solutions. In fact uncovering and articulating business and personal challenges and desired outcomes is the centerpiece of any customer-centric sales process. Our research suggests that possessing the confidence and competence to understand the gap between a  current and desired situation and its consequences and/or rewards is the key to a customer-centric sales process that will create a competitive advantage. 

Transforming your Culture

“Cultures don’t change – people change – and changed people, change cultures.”

With a foundation of Market Positioning, Cross-Functional Alignment, and a Customer-Centric Process, an organization is well on the way to transforming their sales culture from transactions to solutions. However, as John Kotter said in his breakthrough book, Heart of Change, “The central issue is never about strategy, structure, culture, and systems. All of these elements, and others, are important, but the core of the matter is always about changing the behavior of people.”

If people are the central ingredient in any change initiative, it is important to start by assessing their readiness for change. An online survey or field assessment can quickly determine if there are any significant barriers to success. It will help you to develop a plan for change that considers the current skills, attitudes, beliefs and values of your team, in order to mobilize the resources to execute within a reasonable timeframe.

Let’s discuss five key principles for building your “roadmap” for transformational change:

Principle #1: “Walk the Talk”

Leadership teams that say one thing and do another will undermine any change initiative. If leadership is pushing product sales yet say they want to see more solutions selling, they will create confusion. This also means that frontline managers must be prepared to coach to the skills, attitudes, beliefs and values that drive customer-centric behaviors. We have found that these managers have the pivotal role in any change process that aims to align an organization with its customers. 

Principle #2: “You Can’t Send your Ducks to Eagle School"

To paraphrase Jim Collins – without the right people on the bus and in the right seats, an organization will struggle to transform their business. Often the most difficult challenge facing organizations that decide to become solution-driven is the realization that the salespeople they have hired in the past, went to work for a culture that emphasized product features versus solution benefits. Some or many of these individuals may not be capable of making the transition to problem-solvers. Solution selling cultures develop a profile that defines the capabilities that will insure customer-centricity and adhere to a rigorous and discipline selection process. 

Principle #3: “Create a Burning Platform”

Without a compelling reason for your sales team to transform its sales practices from transactional to solution-driven, they will most likely resist the change. However, linking your initiative to a business and personal payoff will get their attention and their commitment. For example, if an organization has a stated goal to increase market share by 10%, it would be important to make a customer-centric sales process a key component to the success of the initiative. Equally important, managers must learn to communicate what it will mean to each member of their team if they are successful. If you do not link your sales culture change initiatives to important business and/or personal payoffs, it is improbable to sustain change over time.

Principle #4: “What Gets Measured Gets Done”

Objective business metrics like revenue, profitability and employee turnover are easily measured, but the same is not true for the day to day behavior of a sales person. To determine if salespeople are operating transactionally or as problem-solvers requires leaders to define “what success looks like.” Until they delineate the ideal behaviors that are instrumental to a successful solution-driven sales culture, it is difficult to coach people to an objective and measurable set of standards. Once defined, these behavioral norms need to be shared, committed to, and tracked for progress against a set of agreed upon objectives. Clear accountability is an essential component of any successfully executed change initiative.   

Principle #5: “Celebrate Success”

Communicate, communicate, communicate!  Frequent, impassioned success stories from the field put the “tail on the kite” of culture change. Sales organizations should proactively seek out examples of a sales person that has successful solved a customer’s problem and/or created value in some other fashion. By spotlighting the people who have demonstrating customer-centric behaviors, an organization can send the message that it’s a priority and it expects more of the same. Communicating success stories may happen both formally, in newsletters and bulletins, or informally in speeches and water cooler conversations. However these examples are shared, they will serve to sustain a focus long enough to complete the transformation. 

Don’t be a Statistic

In the end, even a well-planned and executed solution selling strategy can fall short of expectations. Research suggests that between 75% and 90% of change initiatives fail to deliver promised results. We have found that the primary reason for failure is the lack of “buy-in” from front line employees. This is the essential ingredient to transformational change. Sales professionals who are engaged and aligned with their culture, and understand the potential payoffs, will succeed. As long as their organizations have built the right foundations and enabled them with a roadmap for transformational change. 

Committed organizations can make the shift from transactions to solutions if they are ready for change. Those that are successful will be rewarded with customer loyalty, profitable growth, and employee retention. They will have a distinctive competitive advantage.

Notes:
1. John Kotter, “The Heart of Change” Harvard Business School Press, 2002.
2. Jim Collins, “Good to Great...” New York: Harper Business, 2001.

Walt Zeglinski is the CEO & Chief Client Advocate for Integrity Solutions a performance improvement company that helps its clients to create value for their customers. Walt has over 20 years of successful experience in the corporate performance industry, applying his expertise to successfully diagnose, plan and implement practical solutions for complex business challenges. He has worked with executive teams and frontline sales and service teams across most industries including financial services, health-care, technology, hospitality and manufacturing.

Email: wzeglinski@IntegritySolutions.com
Integrity Solutions | www.IntegritySolutions.com | 602-253-5700