What is sales modeling, and why should it matter to your business? Today’s sales professionals use a range of strategies and methodologies to connect with customers, generate profits, and unlock new opportunities. A sales or selling model is just one of the solutions a professional can use to boost their chances of closing a deal, and achieving their professional goals.
Using the right selling models, companies not only boost their revenue potential – they also unlock new opportunities to strengthen their brand reputation and improve relationships with customers. Let’s take a closer look at sales models.
Let’s start with the basics: what is a sales model?
A sales model, or sales modeling, is a general framework which outlines how a company approaches the sales process. Sales models are basically step-by-step strategic guidelines for boosting sales. For instance, you may be familiar with common sales models already, such as outbound sales (cold calling), account-based selling, and team sales.
A sales model is a little different to a sales process. The sales process outlines the specific steps a company might take to convert a prospect into a lead, then a sale. A sales model simply describes how you sell, and the strategies you might use.
There are various different types of sales modelling strategies a company can use, based on their specific target audience and business processes. The strategies that work best for you will depend on a number of factors, but here are some common examples to inspire you.
1. SPIN Selling
The SPIN selling model relies on the knowledge that customers tend to buy products to resolve the issues the customer might face. Each portion of this methodology encourages sellers to identify the questions sales associates might ask during a conversation, to learn more about a customer’s needs. For instance, you may ask questions connected to the prospects:
2. NEAT Selling
Similar to many sales modelling strategies, the NEAT strategy revolves around identifying specific pain points and expectations a customer might have during a sales process. It assists companies in ensuring they’re offering products or services which are relevant to a customer’s needs. The “NEAT” acronym stands for:
3. Conceptual Selling
Conceptual selling is a sales model which involves convincing a customer to invest in a “concept” rather than a specific product or service. For instance, if a business was selling accounting software for financial professionals, they may focus on getting customers to invest in the time they’re going to save on dealing with manual processes and eliminating errors.
Conceptual model selling involves learning what kind of issues customers are facing with a current product or solution, what components they’re looking for in a solution, and how the problem is affecting their life or business.
4. SNAP Selling
Companies deploying SNAP selling strategies are highly respectful of their customer’s limited time to make decisions and implement solutions to problems. The strategy revolves around removing as many frictions as possible from the sales cycle, so transactions can be made quickly. SNAP involves four principles, which contribute to the name:
5. Inbound Selling
Inbound selling is an increasingly popular sales model, which involves convincing your customers to seek you out, rather than approaching them. Using a compelling brand voice and advertising strategy, businesses convince clients to reach out for them for insights and advice.
Customers who are attracted to companies through inbound selling techniques are more likely to trust the brand in question, and they’re less likely to feel pushed into a sale. Inbound selling models can involve offering access to a free quote or consultation on your website.
6. The Sandler system
Another well-known sales model example, the Sandler selling system involves building a relationship between your company and the customers you want to serve. The focus here is on building rapport and trust with your target audience through regular conversations. The seven-step process involves:
7. Customer-Centric Selling
Similar to inbound selling, customer-centric selling has grown more popular as customers continue to search for companies who show an interest in putting their needs first. This sales modeling strategy revolves around ensuring the sales representative and business can become a trusted partner and advisor to a customer, through lucrative sales conversations.
Companies leveraging customer-centric selling take the needs of their customers into account, assessing their specific problems and objectives, timeline, and requirements.
The MEDDIC sales model is a structured sales approach commonly used by technology companies. It’s designed to help companies compare the effort involved in a sale to its potential value, helping reps to focus their attention more effectively. The MEDDIC sales model is represented by:
There’s no one-size-fits-all strategy for choosing an effective sales model. The solution best suited to each customer will depend on the sales strategy of the business, the skills their employees can display, and the goals of the company. The right sales strategy should leverage your company’s unique skill set, and help you to develop lucrative relationships with your target audience.