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Fundamentals of Strategic Selling
Skill
ianlubis@gmail.com
Chapter 1
Selling in a World of Constant
Change
The Complex Sale:
A number of people must give their
approval or input before the buying
decision can be made.
Strategic Selling: Defined
Premise 1:
Whatever got you where you are today is
no longer sufficient to keep you there.
Strategic Selling: Defined
Premise 2:
In the Complex Sale, a good tactical plan is
only as good as the strategy that led up to
it.
Strategic Selling: Defined
Premise 3:
You can succeed in sales today only if you
know what you’re doing and why.
Strategic Selling: Defined
Profile of a Strategic Professional:
Developed a selling process or method
– Visible, logical and repeatable
– Never satisfied
Strategic Selling: Defined
How Strategic Selling works:
• Focus is on success, not failure avoidance.
• Focus is on your accounts.
Chapter 2
Strategy and Tactics Defined
Contrasting Strategy and Tactics:
• Strategy: A process to lay out moves in
advance of the sales call. Be in the “right
place at the right time.”
• Tactics: An action plan to accomplish
strategic goals. Focus on the account.
Strategic Selling: Defined
Long-term Strategy:
Focus on the account
• Sale or selling event versus Account
• Creating the next satisfied customer Drucker
Strategic Selling: Defined
Setting the Account Strategy:
Four steps
1. Analyze your current position
2. Consider alternative positions
3. Devise an action plan
4. Implement action plan
Chapter 3
Starting Point: Position
Positioning:
1. Identify relevant changes.
2. Rate changes as opportunities or
threats.
3. Define current single sales objective.
(specific and measurable; timing;
outcome; single versus multiple)
4. Test current position.
5. Examine alternative positions.
The New Strategic Selling
“A Unique Sales System”
Originally developed by
Stephen E. Heiman & Robert B. Miller
Updated by
Stephen E. Heiman and Diane Sanchez
Chapter 4
Key Elements of Strategic Selling
Six key elements:
1. Buying influences.
2. Leverage from strengths: Red
flags.
3. Response modes.
4. Win-results.
5. Ideal customer profile.
6. Sales funnel.
Key elements:
1. Buying influences
A. Economic
B. User
C. Technical
D. Coach . . . Your coach!
Key elements:
2. Red Flags/Leverage from Strength
A. Red Flags = “warnings”
B. Leverage from Strength =
“differentiate from competition”
Key elements:
3. Response modes
A. Growth
B. Trouble
C. Even keel
D. Overconfident
Key elements:
4. Win-results
A. Win-Win
B. Win-Lose
C. Lose-Win
D. Lose-Lose
Key elements:
5. The Ideal Customer Profile
A. Anticipate problems
B. Analyze good customers
C. “Be real!”
Key elements:
6. The Sales Funnel
A. Continual prospecting
B. Maximize use of time
C. Work allocation:
“What to do, when.”
Chapter 5
Key Element 1:
Buying Influences
Positioning yourself with the people playing
buying Influencer roles.
1. Understand four Buying Influences.
2. Identify key players in each role.
3. Insure that each player is “covered.”
The Coach
Criteria of a coach:
1. You have credibility with the person.
2. Coach has credibility with the Buying
Influences for your single sales
objective.
3. The coach wants your solution.
Chapter 6
Key Element 2:
Red Flags/Leverage from Strength
Warnings
Opportunities
Chapter 7
Buyer Level of Receptivity
Key Element 3: Response Modes depend on
buyer receptivity.
Traps:
1. Your perception is reality.
2. Your perception is same as Buying Influence.
3. Buying Influences’ perception is wrong or
irrelevant.
Change: The hidden factor in every sale!
Chapter 8
Key Element 3:
Four Response Modes
“People buy when, and only when, they
perceive a discrepancy between
reality and their desired results.”
Chapter 9
The Importance of Winning
Mutual satisfaction is the foundation of
long-term success!
Getting the order is not enough!
What’s desired?
üSatisfied customers
üLong-term relationships (CRM)
üRepeat business
üStrong referrals
Chapter 10
Key Element 4:
Win-results
Key terms of the Win-results concept:
ü Selling - Interactive process based on benefit.
ü Product - Whatever you are selling.
ü Process - Series of activities.
ü Result - Measurable impact of product on your
customer.
ü Win - Fulfillment of a subjective promise.
ü Win-result - Business result giving Buying
Influences a subjective, personal win.
Wins – Results
“Companies get Results, people Win.”
Results:
1. Impact product on
business process.
2. Tangible,
measurable,
quantifiable.
3. Corporate.
Wins:
1. Fulfillment of
promise made to
oneself.
2. Intangible, not
measurable or
quantifiable.
3. Personal
Summary of Win-results
• Product leads to improved process
producing results and persons win.
• Understand how buying influences win.
• Connect your proposal to buying
influences self-interest.
• Use a coach to focus on buying influences
results and how they win.
• Win-win conclusion
Chapter 11
Getting to the Economic Buyer
Common questions:
• “How do I get to the Economic Buying
Influence?”
• “How can I effectively utilize a strategic
Coach?”
• “What about the competition?”
Remember:
Manage every one of the sales
objectives to a Win-Win with all Buying
Influences!
How Economic Buying Influences are
different from User or Technical buyer:
• More difficult to identify.
• More difficult to reach . . . Physically and
psychologically.
Root problems to getting to the
Economic Buying Influence:
1. Can’t identify the Economic Buying
Influence.
2. Blocked from getting to the person
playing the role.
3. Uncomfortable with talking to the
person.
Profile of the Economic Buying
Influence
• Sale-specific
• Highly placed in the organization
• Paid to be future oriented or focused
Solving the problem 1:
Perceived risk in terms of five variables:
• Dollar amount of sale.
• Business conditions.
• Experience with salesperson or firm.
• Experience with product
• Potential organizational impact
Solving the problem…the next step.
Zeroing in on the Economic Buying Influence:
• Ask the person directly.
• Get some coaching.
• Guess.
Solving Problem 2:
Handling the block: Three methods.
1. Show blocker how to win.
2. Go around the blocker.
3. Go along with the blocker.
Solving Problem 3:
Reasons for being uncomfortable:
qIntimidated by position of person.
qUncertain about what person wants or
needs.
Solution:
Have a valid business reason for contacting
the Economic Buying Influence.
Be prepared!
ü Know what the person doesn’t want.
ü Understand the concept, as in Conceptual
Selling.
ü Establish credibility.
ü Like-rank…peer…selling.
ü Advertise past successes.
ü Executive briefing.
ü Bring in a “guru”
ü Keep in touch
Final Position Check
Four key questions:
1. What do I need to find out?
2. What do I want the Economic Buyer to
Know?
3. What do I want the the Economic Buyer
to Do?
4. What do I want the Economic Buyer to
Feel?
Chapter 12
The Coach:
Your prime information source.
Your coach can:
• Help you find the players.
• Identify strengths and red flags in your
position/proposition.
• Help you understand perceptions and response
modes (Growth, Trouble, Even Keel and
Overconfidence)
• Help you understand how to develop a Win-
Win result.
Coaching Criteria
1. Your credibility.
2. Coach’s credibility.
3. Desiring your success.
Choosing your coach:
üAvoid “false coaches.”
üBe careful of a “friend.”
üChoose a coach that gives unique &
useful information.
üChoose inside salespersons as coaches
carefully.
üAvoid the mentor…it’s about the sale not
you.
Coaching focus on a specific sale:
• Economic Buyer as coach is best possible
situation.
• Ask for coaching…the coach doesn’t do
the selling.
• Set up a coaching network…safety in
numbers.
Final Test
Trust your feelings and instincts.
Chapter 13
What about the Competition?
Four reasons maintaining a competitive
edge is difficult.
• Lack of differentiation
• Increased savviness in market
• Rise in different types of competition
• Obsession with the “other guy”
Don’t focus on the competition:
Danger: “It’s a hidden message…not
“better than” but “me too.”
• Allows the competition to write the rules.
• Advertises weaknesses not strengths.
• Invites price slashing.
• Makes you look stupid.
• Deflects attention from customer’s
concerns.
The proactive alternative:
Restoring Differentiation
• Practice Strategic Selling & keep on focus
– ID and cover Buying Influences
– Determine Response Modes
– Deliver Win-Results
– Leverage from Strength, eliminate Red Flags
– Engage a good Coach
The proactive alternative: (continued)
• Focus on the customer
• Make a contribution
ü Something of Value
ü Cannot be obtained elsewhere
• A good offense
Non-methods
• Schmoozing for a losing.
• “I’m worth it.”
• “You really oughta wanna.”
• First choice for second place.
• Fake sincerity ploy.
Tricky Cases
1. The competition is entrenched.
2. You’re firmly entrenched yourself.
3. You’re the higher-priced supplier.
4. The customer just wants you to bid.
Chapter 14
Key Element 5:
Ideal Customer
Focus on Win-Win!
Chapter 15
Ideal Customer Profile:
Demographics and Psychographics
Demographic characteristics:
• Size of market
• Number of end-users of product
• Age and condition of customer’s equipment
• Location
Note: These characteristics are measurable.
Ideal Customer Profile: (continued)
Psychographic characteristics:
• Importance of company reputation.
• Ethical standards…published “code”
• Attitudes to stakeholders
• Openness to innovation and change
• Importance of quality versus quantitiy
Chapter 16
Time, Territory and Money
“Selling time is any time spent talking to a
Buying Influence about Growth or Trouble,
or asking questions of a Buying Influence to
uncover a Growth or Trouble discrepancy.”
What the Sales Funnel does:
üDefines position in the selling process.
üTracks each of the sales objectives.
üSets priorities focused on objectives.
üAllocates time at each level.
üForecasts future income.
Chapter 17
Key Element 6:
The Sales Funnel
Four Parts of the Funnel:
1. Prospect
2. Qualify
3. Cover the bases
4. Close the order
Note: Work smart!
Preliminary tips:
Use of the Sales Funnel:
• Helps sort and track progress of
individual order not account.
• Two things decrease as order moves
down the funnel – Time & Uncertainty.
• Prerequisites must be met before
moving from one level to the next.
Chapter 18
Priorities and Allocation:
Working the Funnel
Working the Funnel:
qSetting priorities for the four kinds of
selling work.
qAllocating limited selling time to each
kind of selling work, on a consistent
basis.
Setting priorities:
Dealing with the roller coaster effect.
1. Do closing work on Best Few objectives.
2. Prospect a narrow universe.
3. Qualify your Above the Funnel objectives
4. Work the objectives in the Funnel.
Great advise: Every time you close something,
prospect or qualify something else.
Allocating time:
Key success factors:
1. Number and type of tasks.
2. Difficulty and amount of work required.
3. Amount of revenue involved.
4. Account potential…LTV.
5. Accommodation of buying cycles.
6. Product-mix quotas…continuous
reassessment.
Chapter 19
Action Plan
The bridge between theory and practice …
emphasis is on practical planning.
Each action that you list as part of your Action
Plan should capitalize on a Strength, eliminate
or reduce the impact of a Red Flag, or do both.
Putting the theory into action:
Focus on these areas:
üYour single sales objective.
üBuying Influences involved.
üResponse Mode of each Influence.
üWin-Results of each Influence.
üLevel and nature of competition.
Final list of actions:
Concentrate on best four or five actions
that are:
• Logical
• Urgent
• Do-able
The acid test
…strategy to tactics and back:
How do you feel and are you comfortable
about the overall situation?
Evolving action plans are engines for
strategic reassessment.
Chapter 20
Strategy When You Have No Time
The solution:
First – Which accounts and sales objectives
call for the “long form” Action Plan.
Second – Adopt a “short form” action
analysis.
Long-form analysis:
When it’s needed:
1. You’ve inherited an account.
2. A high-dollar account is involved.
3. Tough competitive battle.
4. Competition is unknown.
5. A new market is involved.
6. You’re stuck in the Sales Funnel.
7. Essential information is lacking.
Short-form analysis I:
“Project 1” analysis:
üDo I know the Buying Influences?
üDo I know the Influences Win-
Results?
üAm I capitalizing on my Strengths
and working on eliminating
Weaknesses?
üDo I have one reliable Coach?
Short-form analysis II:
“Project 2”
Do I know who my Buying Influences are?
If not, do I at least know who is the
Economic Buying Influence for this sales
objective?
Discussion

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strategic_selling_mgc.pdfjjjkksjkjsdksjdks

  • 1. Fundamentals of Strategic Selling Skill ianlubis@gmail.com
  • 2. Chapter 1 Selling in a World of Constant Change The Complex Sale: A number of people must give their approval or input before the buying decision can be made.
  • 3. Strategic Selling: Defined Premise 1: Whatever got you where you are today is no longer sufficient to keep you there.
  • 4. Strategic Selling: Defined Premise 2: In the Complex Sale, a good tactical plan is only as good as the strategy that led up to it.
  • 5. Strategic Selling: Defined Premise 3: You can succeed in sales today only if you know what you’re doing and why.
  • 6. Strategic Selling: Defined Profile of a Strategic Professional: Developed a selling process or method – Visible, logical and repeatable – Never satisfied
  • 7. Strategic Selling: Defined How Strategic Selling works: • Focus is on success, not failure avoidance. • Focus is on your accounts.
  • 8. Chapter 2 Strategy and Tactics Defined Contrasting Strategy and Tactics: • Strategy: A process to lay out moves in advance of the sales call. Be in the “right place at the right time.” • Tactics: An action plan to accomplish strategic goals. Focus on the account.
  • 9. Strategic Selling: Defined Long-term Strategy: Focus on the account • Sale or selling event versus Account • Creating the next satisfied customer Drucker
  • 10. Strategic Selling: Defined Setting the Account Strategy: Four steps 1. Analyze your current position 2. Consider alternative positions 3. Devise an action plan 4. Implement action plan
  • 11. Chapter 3 Starting Point: Position Positioning: 1. Identify relevant changes. 2. Rate changes as opportunities or threats. 3. Define current single sales objective. (specific and measurable; timing; outcome; single versus multiple) 4. Test current position. 5. Examine alternative positions.
  • 12. The New Strategic Selling “A Unique Sales System” Originally developed by Stephen E. Heiman & Robert B. Miller Updated by Stephen E. Heiman and Diane Sanchez
  • 13.
  • 14. Chapter 4 Key Elements of Strategic Selling Six key elements: 1. Buying influences. 2. Leverage from strengths: Red flags. 3. Response modes. 4. Win-results. 5. Ideal customer profile. 6. Sales funnel.
  • 15. Key elements: 1. Buying influences A. Economic B. User C. Technical D. Coach . . . Your coach!
  • 16. Key elements: 2. Red Flags/Leverage from Strength A. Red Flags = “warnings” B. Leverage from Strength = “differentiate from competition”
  • 17. Key elements: 3. Response modes A. Growth B. Trouble C. Even keel D. Overconfident
  • 18. Key elements: 4. Win-results A. Win-Win B. Win-Lose C. Lose-Win D. Lose-Lose
  • 19. Key elements: 5. The Ideal Customer Profile A. Anticipate problems B. Analyze good customers C. “Be real!”
  • 20. Key elements: 6. The Sales Funnel A. Continual prospecting B. Maximize use of time C. Work allocation: “What to do, when.”
  • 21.
  • 22.
  • 23. Chapter 5 Key Element 1: Buying Influences Positioning yourself with the people playing buying Influencer roles. 1. Understand four Buying Influences. 2. Identify key players in each role. 3. Insure that each player is “covered.”
  • 24.
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  • 26.
  • 27. The Coach Criteria of a coach: 1. You have credibility with the person. 2. Coach has credibility with the Buying Influences for your single sales objective. 3. The coach wants your solution.
  • 28.
  • 29. Chapter 6 Key Element 2: Red Flags/Leverage from Strength Warnings Opportunities
  • 30.
  • 31.
  • 32. Chapter 7 Buyer Level of Receptivity Key Element 3: Response Modes depend on buyer receptivity. Traps: 1. Your perception is reality. 2. Your perception is same as Buying Influence. 3. Buying Influences’ perception is wrong or irrelevant. Change: The hidden factor in every sale!
  • 33. Chapter 8 Key Element 3: Four Response Modes “People buy when, and only when, they perceive a discrepancy between reality and their desired results.”
  • 34.
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  • 37.
  • 38. Chapter 9 The Importance of Winning Mutual satisfaction is the foundation of long-term success! Getting the order is not enough! What’s desired? üSatisfied customers üLong-term relationships (CRM) üRepeat business üStrong referrals
  • 39.
  • 40. Chapter 10 Key Element 4: Win-results Key terms of the Win-results concept: ü Selling - Interactive process based on benefit. ü Product - Whatever you are selling. ü Process - Series of activities. ü Result - Measurable impact of product on your customer. ü Win - Fulfillment of a subjective promise. ü Win-result - Business result giving Buying Influences a subjective, personal win.
  • 41. Wins – Results “Companies get Results, people Win.” Results: 1. Impact product on business process. 2. Tangible, measurable, quantifiable. 3. Corporate. Wins: 1. Fulfillment of promise made to oneself. 2. Intangible, not measurable or quantifiable. 3. Personal
  • 42.
  • 43.
  • 44.
  • 45. Summary of Win-results • Product leads to improved process producing results and persons win. • Understand how buying influences win. • Connect your proposal to buying influences self-interest. • Use a coach to focus on buying influences results and how they win. • Win-win conclusion
  • 46.
  • 47. Chapter 11 Getting to the Economic Buyer Common questions: • “How do I get to the Economic Buying Influence?” • “How can I effectively utilize a strategic Coach?” • “What about the competition?”
  • 48. Remember: Manage every one of the sales objectives to a Win-Win with all Buying Influences! How Economic Buying Influences are different from User or Technical buyer: • More difficult to identify. • More difficult to reach . . . Physically and psychologically.
  • 49. Root problems to getting to the Economic Buying Influence: 1. Can’t identify the Economic Buying Influence. 2. Blocked from getting to the person playing the role. 3. Uncomfortable with talking to the person.
  • 50. Profile of the Economic Buying Influence • Sale-specific • Highly placed in the organization • Paid to be future oriented or focused
  • 51. Solving the problem 1: Perceived risk in terms of five variables: • Dollar amount of sale. • Business conditions. • Experience with salesperson or firm. • Experience with product • Potential organizational impact
  • 52. Solving the problem…the next step. Zeroing in on the Economic Buying Influence: • Ask the person directly. • Get some coaching. • Guess.
  • 53. Solving Problem 2: Handling the block: Three methods. 1. Show blocker how to win. 2. Go around the blocker. 3. Go along with the blocker.
  • 54. Solving Problem 3: Reasons for being uncomfortable: qIntimidated by position of person. qUncertain about what person wants or needs.
  • 55. Solution: Have a valid business reason for contacting the Economic Buying Influence. Be prepared! ü Know what the person doesn’t want. ü Understand the concept, as in Conceptual Selling. ü Establish credibility. ü Like-rank…peer…selling. ü Advertise past successes. ü Executive briefing. ü Bring in a “guru” ü Keep in touch
  • 56. Final Position Check Four key questions: 1. What do I need to find out? 2. What do I want the Economic Buyer to Know? 3. What do I want the the Economic Buyer to Do? 4. What do I want the Economic Buyer to Feel?
  • 57. Chapter 12 The Coach: Your prime information source. Your coach can: • Help you find the players. • Identify strengths and red flags in your position/proposition. • Help you understand perceptions and response modes (Growth, Trouble, Even Keel and Overconfidence) • Help you understand how to develop a Win- Win result.
  • 58. Coaching Criteria 1. Your credibility. 2. Coach’s credibility. 3. Desiring your success.
  • 59. Choosing your coach: üAvoid “false coaches.” üBe careful of a “friend.” üChoose a coach that gives unique & useful information. üChoose inside salespersons as coaches carefully. üAvoid the mentor…it’s about the sale not you.
  • 60. Coaching focus on a specific sale: • Economic Buyer as coach is best possible situation. • Ask for coaching…the coach doesn’t do the selling. • Set up a coaching network…safety in numbers.
  • 61. Final Test Trust your feelings and instincts.
  • 62. Chapter 13 What about the Competition? Four reasons maintaining a competitive edge is difficult. • Lack of differentiation • Increased savviness in market • Rise in different types of competition • Obsession with the “other guy”
  • 63.
  • 64. Don’t focus on the competition: Danger: “It’s a hidden message…not “better than” but “me too.” • Allows the competition to write the rules. • Advertises weaknesses not strengths. • Invites price slashing. • Makes you look stupid. • Deflects attention from customer’s concerns.
  • 65. The proactive alternative: Restoring Differentiation • Practice Strategic Selling & keep on focus – ID and cover Buying Influences – Determine Response Modes – Deliver Win-Results – Leverage from Strength, eliminate Red Flags – Engage a good Coach
  • 66. The proactive alternative: (continued) • Focus on the customer • Make a contribution ü Something of Value ü Cannot be obtained elsewhere • A good offense
  • 67. Non-methods • Schmoozing for a losing. • “I’m worth it.” • “You really oughta wanna.” • First choice for second place. • Fake sincerity ploy.
  • 68. Tricky Cases 1. The competition is entrenched. 2. You’re firmly entrenched yourself. 3. You’re the higher-priced supplier. 4. The customer just wants you to bid.
  • 69. Chapter 14 Key Element 5: Ideal Customer Focus on Win-Win!
  • 70. Chapter 15 Ideal Customer Profile: Demographics and Psychographics Demographic characteristics: • Size of market • Number of end-users of product • Age and condition of customer’s equipment • Location Note: These characteristics are measurable.
  • 71. Ideal Customer Profile: (continued) Psychographic characteristics: • Importance of company reputation. • Ethical standards…published “code” • Attitudes to stakeholders • Openness to innovation and change • Importance of quality versus quantitiy
  • 72. Chapter 16 Time, Territory and Money “Selling time is any time spent talking to a Buying Influence about Growth or Trouble, or asking questions of a Buying Influence to uncover a Growth or Trouble discrepancy.”
  • 73. What the Sales Funnel does: üDefines position in the selling process. üTracks each of the sales objectives. üSets priorities focused on objectives. üAllocates time at each level. üForecasts future income.
  • 74. Chapter 17 Key Element 6: The Sales Funnel Four Parts of the Funnel: 1. Prospect 2. Qualify 3. Cover the bases 4. Close the order Note: Work smart!
  • 75.
  • 76. Preliminary tips: Use of the Sales Funnel: • Helps sort and track progress of individual order not account. • Two things decrease as order moves down the funnel – Time & Uncertainty. • Prerequisites must be met before moving from one level to the next.
  • 77. Chapter 18 Priorities and Allocation: Working the Funnel Working the Funnel: qSetting priorities for the four kinds of selling work. qAllocating limited selling time to each kind of selling work, on a consistent basis.
  • 78. Setting priorities: Dealing with the roller coaster effect. 1. Do closing work on Best Few objectives. 2. Prospect a narrow universe. 3. Qualify your Above the Funnel objectives 4. Work the objectives in the Funnel. Great advise: Every time you close something, prospect or qualify something else.
  • 79. Allocating time: Key success factors: 1. Number and type of tasks. 2. Difficulty and amount of work required. 3. Amount of revenue involved. 4. Account potential…LTV. 5. Accommodation of buying cycles. 6. Product-mix quotas…continuous reassessment.
  • 80. Chapter 19 Action Plan The bridge between theory and practice … emphasis is on practical planning. Each action that you list as part of your Action Plan should capitalize on a Strength, eliminate or reduce the impact of a Red Flag, or do both.
  • 81. Putting the theory into action: Focus on these areas: üYour single sales objective. üBuying Influences involved. üResponse Mode of each Influence. üWin-Results of each Influence. üLevel and nature of competition.
  • 82. Final list of actions: Concentrate on best four or five actions that are: • Logical • Urgent • Do-able
  • 83. The acid test …strategy to tactics and back: How do you feel and are you comfortable about the overall situation? Evolving action plans are engines for strategic reassessment.
  • 84. Chapter 20 Strategy When You Have No Time The solution: First – Which accounts and sales objectives call for the “long form” Action Plan. Second – Adopt a “short form” action analysis.
  • 85. Long-form analysis: When it’s needed: 1. You’ve inherited an account. 2. A high-dollar account is involved. 3. Tough competitive battle. 4. Competition is unknown. 5. A new market is involved. 6. You’re stuck in the Sales Funnel. 7. Essential information is lacking.
  • 86. Short-form analysis I: “Project 1” analysis: üDo I know the Buying Influences? üDo I know the Influences Win- Results? üAm I capitalizing on my Strengths and working on eliminating Weaknesses? üDo I have one reliable Coach?
  • 87. Short-form analysis II: “Project 2” Do I know who my Buying Influences are? If not, do I at least know who is the Economic Buying Influence for this sales objective?