- Customers are demanding more value than they ever have.
- Investors are demanding lower and lower costs.
How can companies succeed at what appears to be two diametrically opposed objectives?
It’s by delivering more value—faster, better and cheaper.
The Death of the Product-driven Model
Many companies consider themselves product-driven. They come up with the best solution for the marketplace and then design, develop, commercialize and deploy that solution. However, these same companies are recognizing that that model is not working in the face of increasing global competition.
“We’re seeing more new entrants into the home market, and we’re also seeing those same companies trying to bring their products into new and emerging markets,” says Mike Shields, president of consulting group, eLogic Group. “So between those, you take what used to be a single customer-to-company relationship and turn it into a set of global capabilities that you have to have.”
Global competition forces a company to differentiate itself further and further in the types of products it offers. In other words, bringing its products and services down to a level where the customers get exactly what they want.
This type of selling is truly demand-driven. “You start with the customer and their needs, and you align that with your best product fit,” says Shields. “Then you turn that into an executable order for fulfillment.”
#1 Must Have for Demand-driven Selling Success
“One of our mantras is ‘clean quotes drive clean orders,’” says Shields. “Companies that make specialized and differentiated products—everything is quoted. Whether it’s a product that happens to be standard or whether it’s something that you’ve never done before. At some point or another, that customer needs to tell you what they want, you need to interpret that and you need to offer a solution that best meets their needs. Those who do that the best win.”