Complex sales
Encyclopedia
Complex sales
, also known as Enterprise sales, can refer to a method of trading sometimes used by organizations when procuring large contracts for goods and/or services where the customer takes control of the selling process by issuing a Request for Proposal
(RFP) and requiring a proposal
response from previously identified or interested suppliers. Complex sales involve long sales cycles with multiple decision makers. Multiple stakeholders and stakeholder groups contribute to every complex sale.
Any product or service may become a complex sale. In some instances a complex sale occurs when the market is mature and the stakes high enough to warrant attention from a variety of stakeholders in the buying organization. In other instances a complex sales process is needed when the buyer has never had experience with the vendor, technology being sold, or if the solution is business critical or impacts the buying organization on a strategic level. The series of filters, purchasing steps, and stakeholders involved are designed to reduce the risks associated with making the wrong buying decision.
Often the need to have multiple stakeholders or buyers involved relates to the level of risk that is involved in the purchase or sale of goods and/or services. As the buyer or buying organization if the purchase only impacts a small group of people or component of the buying organization then often the decision is made by one buyer and the process tends to be quite transactional.
If the purchase impacts the entire organization, affects the company strategically, or can change the buyer business process then often the sales person is required to have a set of skills that are more in line with a subject matter expert or consultant than a traditional sales person. This type of sales person can often be referred to as a Key Account Executive or Complex Sales Executive.
Large or complex sales opportunities that are international in nature require an additional set of personal and sales skills. The need for cross-cultural awareness may add an additional layer of complexity in the sales process.
The larger the purchase and the buyer risk the more trust and credibility required from the Vendor. As a Key Account Executive or Complex Sales Executive in addition to product knowledge and consultative selling skills top producing sales executives also have the ability to build strong client relationships and navigate and avoid the political pitfalls within client organizations.
Sales
A sale is the act of selling a product or service in return for money or other compensation. It is an act of completion of a commercial activity....
, also known as Enterprise sales, can refer to a method of trading sometimes used by organizations when procuring large contracts for goods and/or services where the customer takes control of the selling process by issuing a Request for Proposal
Request for Proposal
A request for proposal is issued at an early stage in a procurement process, where an invitation is presented for suppliers, often through a bidding process, to submit a proposal on a specific commodity or service. The RFP process brings structure to the procurement decision and is meant to...
(RFP) and requiring a proposal
Proposal (business)
A business proposal is a written offer from a seller to a prospective buyer.Business proposals are often a key step in the complex sales process—i.e., whenever a buyer considers more than price in a purchase.-Overview:...
response from previously identified or interested suppliers. Complex sales involve long sales cycles with multiple decision makers. Multiple stakeholders and stakeholder groups contribute to every complex sale.
Any product or service may become a complex sale. In some instances a complex sale occurs when the market is mature and the stakes high enough to warrant attention from a variety of stakeholders in the buying organization. In other instances a complex sales process is needed when the buyer has never had experience with the vendor, technology being sold, or if the solution is business critical or impacts the buying organization on a strategic level. The series of filters, purchasing steps, and stakeholders involved are designed to reduce the risks associated with making the wrong buying decision.
Often the need to have multiple stakeholders or buyers involved relates to the level of risk that is involved in the purchase or sale of goods and/or services. As the buyer or buying organization if the purchase only impacts a small group of people or component of the buying organization then often the decision is made by one buyer and the process tends to be quite transactional.
If the purchase impacts the entire organization, affects the company strategically, or can change the buyer business process then often the sales person is required to have a set of skills that are more in line with a subject matter expert or consultant than a traditional sales person. This type of sales person can often be referred to as a Key Account Executive or Complex Sales Executive.
Large or complex sales opportunities that are international in nature require an additional set of personal and sales skills. The need for cross-cultural awareness may add an additional layer of complexity in the sales process.
The larger the purchase and the buyer risk the more trust and credibility required from the Vendor. As a Key Account Executive or Complex Sales Executive in addition to product knowledge and consultative selling skills top producing sales executives also have the ability to build strong client relationships and navigate and avoid the political pitfalls within client organizations.
Forms of complex sales
- Selling consulting engineering services
- Enterprise technology sales such as CRMCustomer relationship managementCustomer relationship management is a widely implemented strategy for managing a company’s interactions with customers, clients and sales prospects. It involves using technology to organize, automate, and synchronize business processes—principally sales activities, but also those for marketing,...
or POS solutions - Commercial insurance sales
- Real EstateReal estateIn general use, esp. North American, 'real estate' is taken to mean "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; an item of real property; buildings or...
development - Large fleet vehicle sales
- Mining equipment sales (ie Caterpillar tractors and large tunnel boring machineTunnel boring machineA tunnel boring machine also known as a "mole", is a machine used to excavate tunnels with a circular cross section through a variety of soil and rock strata. They can bore through anything from hard rock to sand. Tunnel diameters can range from a metre to almost 16 metres to date...
s) - Scientific Solution Sales (Data analysis and management)
Sales Controlling
Due to the high costs of proposals in complex sales the hit rate i.e. the percentage of successful offers is a valuable indicator of the performance of the sales force.See also
- MarketingMarketingMarketing is the process used to determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development. It generates the strategy that underlies sales techniques, business communication, and business developments...
- Industrial marketingIndustrial marketingIndustrial marketing is the marketing of goods and services by one business to another. Industrial goods are those an industry uses to produce an end product from one or more raw materials....
- promotionPromotion (marketing)Promotion is one of the four elements of marketing mix . It is the communication link between sellers and buyers for the purpose of influencing, informing, or persuading a potential buyer's purchasing decision....
- Contract of saleContract of saleA contract of sale is a legal contract an exchange of goods, services or property to be exchanged from seller to buyer for an agreed upon value in money paid or the promise to pay same...
- list of marketing topics
- AIDAAidaAida sometimes spelled Aïda, is an opera in four acts by Giuseppe Verdi to an Italian libretto by Antonio Ghislanzoni, based on a scenario written by French Egyptologist Auguste Mariette...
- Tendering