Strategic Selling: Establishing Market Opportunity in Setting Targets for Sales Reps

March 11th, 2009 by

By Pat Hinds

Companies that are focused on strategic vertical and account selling should be establishing the market opportunity for strategic accounts.  Establishing market opportunity builds the foundation for taking a long-term strategic view of accounts, versus a short-term deal focused view.

Market opportunity is a cumulative of the product opportunities within a strategic account; you can use vertical finger printing (see my blog, “Establishing a Vertical Finger Print”) and opportunity gap (see my blog, “Defining the Opportunity Gap”) to help define the product opportunity.   This information should be defined and populated in a CRM package so the sales rep is able to establish a revenue target for each strategic account. 

The following is an example of market opportunity for the oil and gas vertical and cellular products:

·         Vertical Finger Print – Establish how the oil & gas industry uses cellular. Example: cell phones, smart phones, laptop automation and custom applications.

·         Establish Quantity – Current install base for each product.  Example: 1000 employees, 600 smart phones and 400 voice only.

·         Establish Average Cost – What the average price that customers pay for each of the services; in the case of cellular, it is called Average Revenue per User (ARPU).

·         Establish Product Opportunity – Product adoption multiplied by average revenue per user.

·         Establish Market Opportunity – Add your results from each product opportunity and the cumulative total is your market opportunity.

·         CRM Integration – Create a field in your CRM called “market opportunity” and populate it with the market opportunity data. 

Topics: Business Intelligence