Companies looking for more profitable growth often turn to the following three common strategies. But each has a major flaw that causes you to continue leaking precious margin. Do any of these sound familiar?
1. Pricing and discount strategies: You've developed new pricing policies, you've rearranged the compensation plan to encourage more profitable deals, and you've even started aggressively tracking and reporting discounts, but you are still discounting too much.
2. Sales process and methodology: You've installed a consistent set of sales steps to follow, applied more discipline to your sales cycles, and embedded those steps into your CRM, but you haven't seen the uptick in business you were promised.
3. Customer acquisition and expansion: You've put more resources into demand generation campaigns and you've built opportunity management and account planning playbooks, but you are still selling the same stuff to the same people.
The rest of this article looks at why you're struggling to get results from these strategies and provides counterintuitive ideas for making each one more effective.
Discount Strategies: Embrace the Tension, Don't Flee It
The reason operational changes in discount policies, comp plans, and software analytics haven't fixed the problem is that discounting is a people problem—more specifically, your people's reaction to the tension they face in sales cycles.