Peady’s Selling Engagement sponsored by IRD Prospector

Have you been in this position?

I was talking with a radio salesperson last week and she was complaining that she had lost one of her larger spenders to a local advertising agency. From her perspective the two issues were:

1.    She’d done a great job building up the client and the loss was beyond her control

2.    Her sales manager had reduced her monthly target by the amount the lost client normally spent, but only for three months.

She admitted to me that the client had been discussing the move “on and off for a couple of months” but it was still “unfair” that they had moved and the sales manager’s decision was even more difficult to swallow.

After a while I asked her if she was looking for advice or wanted to vent….the answer, both!

Here’s what I suggested she do in the future to avoid this situation arising.

1.    All clients aren’t created equal – some are more “equal” than others

2.    Categorise your clients into A, B and C categories.

A = your biggest fans. They provide you with referrals, spend an enormous amount of money each year, and are a pleasure to deal with.

B = they are good clients, many are steady but not huge spenders. Others might do 3-4 campaigns a year but with the right nurturing, they could turn into A’s. Others might be former A category but perhaps haven’t spent for a while. 

C = these are those that are average, small-time, low investment non-committals or “gonnas” (they are gonna spend one day).

3.    Spend time with the A’s by all means. They are the basis of your ongoing success. They deserve all the love and attention you can give them however the real opportunity is with the top tier B category clients. Find the one or two that you can take to the next level. At the same time look for your next B’s from the C’s. Once again look at your best one or two.

4.    The process of categorisation and growth takes time and effort however it pays significant dividends when the unforeseen loss occurs.

By the way most media sales people churn clients at around 20% every year. What’s your churn rate? Whatever it is you need to be constantly looking to keep the big one, nurture those in the mid-range and constantly prospect for new opportunities.

About the Author

Stephen Pead is a media industry veteran of 30 years with significant experience in sales, sales management and general management. He is based in Sydney and specialises in providing training for salespeople and sales managers. He can be contacted at [email protected]