It’s not surprising that one of the barometers used to measure the success of a sales department is its ability to secure net-new business—taking down a client, and unseating either another dealer or a manufacturer direct in the process (that’s ample reason in itself to ring the bell extra hard). It’s often baked into quotas to ensure a desired balance with renewals.
Being able to flip a client is a highly sought-after skill. But reps usually aren’t flying solo, as some dealers have in-house or third-party telemarketing teams whose main objective is to furnish leads. And there are some great software titles on the market that can quickly ferret out opportunities within their territory. Still, it’s one thing to lead a rep to a prospect and quite another to close it out.
As part of November’s State of the Industry theme on sales success, we paneled some noteworthy dealers to discover just how hard it can be to scare up new business, and gain insight into the variables that make them so successful.
The world of net-new is difficult for many mid-sized dealers, especially with competitors acquiring companies to add base. One variable that helps Charleston, South Carolina-based Levifi is their reps are paid on gross profit, and they make more gross profit on new business as opposed to existing, notes Lance Redler, CRO.
“Everyone’s fighting over the same 10% of the business that doesn’t get retained by current vendors,” he offered. “So it’s been a tremendous challenge to be different from others. That’s where Google reviews is a great source for referrals. But we also love the old-fashioned, person-to-person referrals. That’s how we thrive.”
Having a tenured sales staff is desirable for obvious reasons, but one of the drawbacks is some reps primarily stick to the accounts they’ve had from day one. Jay Feldman, senior vice president, client management and strategy for LDI Connect, notes compensating for net-new selling behavior is one of the ways the Jericho, New York, dealer spurs business development.
Dealers need to furnish the ammo, and for LDI Connect that comes in the form of new business programs that offer competitive lease rates, competitions and, of course, higher compensation. Making it a key qualifier in the director’s club/president’s club metrics, with either revenue or new logo targets, can help yield results.
There are other routes to net-new. “A year ago we had an Octoberfest, which captured well over 100 customers and new business opportunities, and that was a great opportunity to show our value beyond print, extending to A/V and unified communications,” Feldman said. “And it still generated opportunities in the print space. We have other themed events slated for the coming months that will help spark net-new.”
For Repeat Business Systems of Albany, New York, ZoomInfo has been an effective tool in furnishing information on the businesses and contact points for prospects not currently in the funnel. But perhaps the greatest asset, according to President Dawn Abbuhl, is the reputation the dealership has cultivated within the business community in its territories, heightened by fundraising endeavors and participation in boards for local organizations.
“We’ve been here a long time, and that means something to people,” she said. “We’re a trusted partner in the region, so prospects feel very comfortable about at least listening to us. It’s also been a benefit with recruiting.”
Net-new business is a focal point for EDGE Business Systems in suburban Atlanta. According to company partner Josh Salkin, it begins with an amazing service and support staff that provide top-flight care to current customers.
“That leads to lots of references and referrals, as well as opportunities to share our best practices with new clients looking for answers,” he added.
At Applied Business Concepts of Baton Rouge, Louisiana, net-new is a key part of the dealer’s quotas and bonus structure, but sourcing new logos has not been too difficult. Scott Bonck, vice president of sales, feels his team has made more strides recently, led by a sales contest that exceeded expectations. The reward is a week’s vacation with expenses paid by the company.
Bonck noted the dealership was also slated to hold another contest in the second half of the year. “The second one ends in December, which should give us a strong finish to the calendar year,” he said. “Compensation drives behavior in sales, so the more you can compensate them, the better off you’ll be.”
Sam Stone, president of Stone’s Office Equipment in Richmond, Virginia, growing a business boils down to either acquiring a competitor or taking the net-new route. The key lies with guiding the behaviors of account representatives.
“Make it a priority to gain new business if you haven’t already,” Stone said. “We incentivize our team to bring new logos to our company.”
