7 Strategies for Sales Success in 2015

As we get closer to 2015, many management teams are looking to identify new opportunities for growth to increase revenue. Some companies pursue mergers and acquisitions while others roll out new products and pricing. Regardless of what strategies your company traditionally uses, it is worth exploring a wide range of opportunities for maximum growth. Global management consultant firm McKinsey & Co. conducted extensive research on the primary strategies used by the most successful companies. The results, which appeared in The Alchemy of Growth, are summarized here:

1.Selling existing products to existing customers. This is all about your marketing strategy and how you can encourage customers to buy more frequently. For example, that might translate into offering a piggyback loan to a first mortgage. The key is to add extra value for your customers. Top producers are experts at this approach by their commitment to providing options that are in their customer’s best interests.

2. Acquiring new customers in existing markets. This strategy is based on developing marketing approaches that appeal to specific customer segments. Amazon is a master at this type of market segmentation.

3. Creating new products and services. This is probably the number one strategy used by mortgage companies that often choose to accept more risk by reducing their credit standards. There always seem to be an investor who believes that they have a better handle on controlling risk, including the agencies.

4. Delivering new value. This strategy is focused on adding value for current customers. This is where key partnerships and alliances can be priceless. Mortgage companies typically use this strategy to expand relationships.

5. Moving into new territories.  This strategy entails moving out of your comfort zone to serve a wider area. What states make the most sense? Where is appreciation increasing? Likewise, what areas should you avoid? Do the new markets take you out of your comfort zone? Will new employees match to your culture? Managing long distance can be a daunting task.

6. Creating a new industry structure. This is the mergers and acquisitions approach that has the advantage of creating a greater economy of scale for the combined company. This can be a risky strategy if talent and culture are out of sync in the combined company. Many times in mergers and acquisitions, the cost benefits never materialize.

7. Opening up new competitive areas. Is it time to diversify? Business diversification can include similar products such as home equity and jumbo loans. The caveat to this strategy is do you have the right talent pool for this expanded effort?

Obviously, no one strategy is better than another. Senior management needs to review what matches to their current resources, talent strengths and capital situation.