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How important is it for a sales professional calling on C-level to understand financials
Best Answer
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- Tamara Schenk
Tamara, very very good answer. I have a new book coming out from AMACOM in June called, The Key to the C-Suite and I address this very issue.
I believe one of the keys to communicating with the C-Suite is to first understand your own value proposition and how it impacts a companies financials. In other words is your value prop is to reduce labor costs, then you also affect Net and Gross profit, Operating costs and many other metrics used by the C-Suite to make strategic buying decisions. In addition to understanding your value it is critical to learn and understand the language of the C-Suite. The metrics I mention are keys to success in the C-Suite. Finally, by being able to read an income statement and balance sheet you can tell if a company can even purchase from you. Do they have cash? Are they strapped? What are their DSO's? There is a lot of information you can get from an Annual Report and Financial Statement.
Nice job Tamara! Love it and great question Norman.
Tamara, what a great answer. Dave Brock would be proud of this answer as well. Thanks for the great input
While this may seem rather simple compared to Tamara's exquisitely articulate and considered answer, I would like to add that any sales professional can "up" their game by being aware of the financials. Management, in general, have the added responsibility of always keeping a close eye on the "bottom-line" so the salesperson - or any employee for that matter - who not only delivers their specific craft flawlessly, but can demonstrate an expanded awareness of this mandate, will likely distinguish themselves from the pack and be highly welcomed.
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Interesting question, Norman!
In general calling on C level is one of the challenges a lot of sales forces especially in the technology industry are facing today - selling higher means talking and selling to business leaders and / or directly to the C level suite.
Additionally, understanding financials is another key criteria to be able to sell (and to deliver) customer business outcomes. Outcomes have an achieved end state with a measurable result, are driven by an executive stakeholder with impacted stakeholders, based on a high level program initiative over a life time.
Both elements require a set of specific skills as e.g. the appropriate business language (not an IT language!), understanding the industry's challenges and the prospect's specific challenges, the role and responsibility this specific customer currently has and much more.
I would assume that calls on C level are only processed if the sales professional is well prepared based on internal and external research about the prospect's financial situation. Based on CMI data - tailored to this specific selling situation (purpose and messaging level), such a call should be prepared precisely to identify smart questions and to identify possible scenarios how the vendor could help this prospect to improve financial figures. That brings us again in the middle of the outcome selling scenario which should start with a consultative selling approach, but not to focus only on problem solving, but also to identify future business potentials, future business models, in other words help the customer not only to improve efficiency, but also help the customer to create sustainable growth and to design the future from a strategic and innovative point of view. There was another question here on business acumen – that's exactly what's relevant here in order to talk successfully to the C Level. Understanding financials and transform the findings in innovative future business scenarios – all that requires a deep understanding of markets and industries and a lot of consultative and strategic selling skills.
So, both, calling on C level and understanding financials, is getting more and more important, but requires special skills and needs to be prepared very precisely.