Cross-Selling in Services Companies? You must be joking?
You have done the expensive bit…
All the research tells you …. Gaining a new customer is 5 to 7 times more expensive than selling to existing clients.
You did all the proposals, you attended all the meetings. All the planning.
You landed the big fish… Now it’s time to expand your foothold.
You start to work through your major account planning processes
All goes really well. Account plans are drawn up.
Then you review progress. The needles of business growth are moving but not much…
There is growth but only in one area of service or product… The one you started with…
Hmmmm what’s the problem?
A case of the Cross-Sell Killer?
In our experience, it comes down to … Your people don’t trust each other.
(Our Business Development Training Workshops can explore this topic as well as others)
OK. That may be over stating it.
However you have a BIG problem. Why?
Because if don’t expand in existing clients you are condemning your company to the high cost of selling.
If you keep LANDING but not EXPANDING your costs will stay high.
You need that “cheaper to get” business from existing clients to improve your profits
Try this test…
Surprise your account leaders
Ask them to try to sell to you another one of your product or services lines..
Expect lots of avoidance and excuses. What you may well find is that they can’t do it…
- Don’t know enough about the people in other areas of your business
- Don’t understand how the other teams in your company operate
- Don’t know what benefits the other services team can bring to clients.
- Have no stories of of their thrilled clients to tell.
- May have been burned in the past by bringing other people into “their” accounts
- Don’t know what problems the other teams solve
- Certainly don’t know the good questions to ask to see if your client has these isssues
Those are the reasons, consciously or not, they avoid broadening the conversation.
They may even doubt one another’s competence.
Regardless of why, you have internal issues that you need to deal with.
You can have lots of account planning meetings but the other services won’t grow.
This is not a skill issue. Rarely is it a value delivery or capability issue.
Most companies say that they trust each other to collaborate.
Make no mistake this lack of cross-selling is a silent, chronic wet blanket dampening strategic account management success.
What do you do about it?
There’s no one answer. You have to know what’s going on and why before you can solve it.
Try asking yourself and your team these questions:
- Is there a lack of trust here at our company?
- What are the reasons we are not cross-selling?
- Lack of knowledge of all of our capabilities?
- Lack of knowledge about how other divisions make a difference?
- People don’t know each other well enough to trust each other?
- Actual quality issues that, as a company, you need to solve?
- You’ve solved previous quality issues but people don’t know that yet?
Once you have some answers, you can start solving the problems.
It just may be the key to unlocking major revenue growth in your accounts.
If you need our help with Cross-selling issues contact us on 0333 444 1955 or firstname.lastname@example.org