Collaborative Selling
by Tony Alessandra, Ph.D., CSP, CPAE

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TECHNOLOGY

For most products and services, technology no longer provides a means of differentiation. The same technology is available to virtually everyone; if not today, then tomorrow. In the past, it was possible to develop a technology that would give a company a competitive advantage for years. Now, however, technological advantages are so short lived that their ability to differentiate the company is fleeting, at best. Only a few dominant companies can claim that their product is radically different for very long.

THE GLOBAL MARKET

We are now in a global economy that affects every company. There are more and different competitors than in the past; and they have helped create a confusion in the marketplace, not only for corporate executives, but for their customers.

SUPPLY EXCEEDS DEMAND

For most products and services, in most parts of the world, supply exceeds demand. Customers today are experiencing overchoice, a phenomenon that was conceived by Alvin Toffler in his book, Future Shock. Over choice is a stressful state caused by too many choices. Buyers are overwhelmed with more choices of products and suppliers than ever.

SOPHISTICATED BUYERS

The positive side of overchoice is that it has created a world full of sophisticated, well-informed consumers. People are more willing to 1) research their options; 2) slow down the decisionmaking process; and 3) insist on doing business with companies and salespeople whom they like.

The upshot of these market influences is that the differentiated products of yesterday are the commodities of today. Differentiation is, however, the only way to be successful in today's market. Differentiation must come from quality, price, or service; and few companies can survive competing on price. This is a monumental challenge that every company faces. It is a challenge met by collaborative selling, a system in which salespeople can create differentiation and its accompanying competitive advantage every time they attempt to get and keep business.

Collaborative selling begins with a commitment to the long term. Today's customers are looking for long term relationships with suppliers who will be reliable resources over the long haul and who can produce measurable quality in the products and services they sell. In fact, many companies are awarding lifetime contracts to their supplier partners. Collaborating companies are networking their computer systems to expedite order entry, just-in time inventory control, and electronic payment.

The transition to collaborative selling and the emphasis on long term relationships is evident in the words and phrases that are used to describe modern buyerseller relationships: strategic alliances, partnering, collaboration, sustaining resources, single sources, integrity, values, and ethics. Call it what you want, it is taking place throughout the world on a macro level (industry to industry) and on a micro (salesperson to customer) level.

Today's customers buy differently, so today's salespeople must sell differently. Customers know there is no urgency to buy because good deals, good salespeople, and good companies come along every day. Price is less of an issue because buyers are not just interested in great deals, they want great value and great relationships.

Collaborative selling means handling every aspect of the sales process with a high degree of professionalism. There are six basic steps that describe how the collaborative sales process unfolds:

TARGET

The first step is a marketing necessity: understand exactly what the product/service is and identify the specific markets that can best use it. This is done on a company level in their marketing plan and should be done by individual salespeople as well. It takes some time, but careful planning focuses effort and provides a greater return on time and money invested. Collaborative salespeople know they must concentrate on prospects who have a high probability of buying.

CONTACT

The next step is to contact target markets in a costeffective and professional way through some combination of letter, phone, or personal contact. Collaborative salespeople convey their desire to explore needs and opportunities. They build credibility and trust . They express their sincere desire to be of service, and they make their competitive advantages known without jumping into a presentation.

EXPLORE

During the explore stage, collaborative salespeople convey the message: "Let's explore your business situation to see if there are problems to solve or opportunities to seize." They conduct research, meet with their prospects frequently, and do whatever it takes to become an expert on their prospect's business. That sets the stage for indepth exploration of options that may culminate in a sale. Collaborative salespeople make it clear that they want to help, not just make a sale.

COLLABORATE

Collaborative salespeople never dictate solutions to their prospects. Instead, they form "partnerships" in which prospects play an active role in the search for the best solution. The collaborate phase is conducted in the spirit of "let's work together on the solution and together build a commitment to its successful implementation." This team approach to problem solving ensures that prospects will be committed to solutions. Customers are equal partners in problem solving.

CONFIRM

Collaborative salespeople move on to this phase only after they have received assurances that their customers are in agreement with them on everything that has been discussed. This agree as you go process eliminates the need to "close" the sale. With collaborative selling, the sale is a matter of when and not if. Confirming the sale is the logical conclusion to an on going communication and problemsolving process. There is no need to "close" them. People commit when all their buying criteria are met.

ASSURE

Collaborative salespeople keep in touch after the sale. They communicate regularly about delivery dates, installation, training, and other relevant matters. They make sure their customers are satisfied with their purchases. They help customers track their results and analyze the effectiveness of the solution.

Collaborative selling is cl arly the sales process of the future that helps professional salespeople build large, loyal customer bases that generate future sales, provide referrals, and act as lifetime annuities.

Copyright 1995 Tony Alessandra