In the last six years, the cost of acquiring new customers has increased 60%.
Updated: May 3, 2021
Why is Customer Acquisition Cost rising? It begins with sales laziness not taking the time to learn how your average customer feels about you and your firm. How do they behave? Do you know where your buyers are (current place in the buying process? ) What emotions are exposed, values they perceive, and beliefs? Do you know where you rate with them?
How about pairing your customers and salespeople sales styles?
Sales Hunters, Farmers, Rainmakers/Partners and Challengers will help reduce CAC immediately!
If you are seeking a Hunter sales rep you can expect they are clever, creative, and thick-skinned. Hunters are the most sought-after sales leader’s because they seldom get down on themselves despite constantly hearing buyer nos. They are especially good at cold-calling, highly independent, self-driven and can connect with the hardest to reach new business opportunities. Hunters are in demand but depending on your firm’s sales requirements. There are other sales styles to consider like Farmers, Rainmakers, and Challengers.
Farmers most often are opposite styles of Hunters and like servicing existing customers versus finding new ones. They are talented at growing current client spend levels. Farmers are more customer-centric, detail-oriented, leaning more towards protecting the customer’s happiness, more attuned to developing a relationship bringing loyalty along to your brand. Farmers are not selfish, greedy, or customer challenging. They are generally content, and not necessarily money motivated.
Rainmakers sometimes coined Partners have structured connections and abilities to nurture sector relationships that bring significant revenues to the company or firm. Rainmakers work behind the scenes emailing, calling, and networking at events and social functions. Based heavily on personal and corporate connections associations and contacts, somewhat like today’s digital influencers that are solely managed. Rainmakers can be considered marketing gurus who consistently find creative strategies to present a company's products/services.
Rainmakers in business are defined by their ability to come through with big business deals and to motivate existing clients to spend more money. They are analysts, deep thinkers, and very strategic.
Challengers are focused on how the salesperson sells. Challengers use deep understanding of customers' businesses to push their thinking and take control of sales situation and conversations. They're not afraid to share potentially controversial views.
In the book, Challengers by Gartner the characteristics that set Challengers apart are noted as things like offering the customer unique perspectives, has strong two-way communication skills, knows the customers’ value drivers and business economics, can pressure the customer, and talk about money. These are important, but standard, pieces of advice given to salespeople to succeed, and have been for decades. However, the stronger the relationship (the kind based on insight, trust and value), the more willing a buyer will be to listen and take your advice in the first place, be persuaded by your arguments, and accept your coaching.
Challenger sales development provides tailored insights and considered one of the most critical steps in a sale. When the appropriate moment arises to help customers think differently about their business, you want your team armed with customer personalized insights. Without a portfolio of custom client insights, you will have no grounds on which to challenge customer thinking. Utilizing and coupling ‘Sense Making’ should be factored into the initial training, helping reps better empathize with customers.