We delve into the frequently misunderstood world of procurement in the most recent episode of the Expert Insight Interview with John Golden of Sales POP Online Sales Magazine and Pipeliner CRM. Our guest, Mike Lander, a seasoned procurement director, entrepreneur, and master negotiator, sheds light on how salespeople can effectively engage with procurement professionals. This blog post will break down the key insights from the episode, offering actionable advice and thorough explanations to help sales professionals navigate the procurement landscape.
Understanding Procurement’s Role
Dispelling Misconceptions
One of the primary themes of the episode is the common misconception that procurement is an adversary in the sales process. Many salespeople view procurement as a barrier, solely focused on driving prices down and complicating deals. Mike Lander challenges this notion, emphasizing that procurement professionals are strategic partners who aim to enhance profitability, quality, and innovation within organizations.
Key Takeaways:
- Procurement as a Strategic Partner: Recognize that procurement professionals are not just gatekeepers but integral to the decision-making process.
- Value Addition: Understand that procurement can provide valuable insights that benefit both the buyer and the seller.
Engaging with Procurement Effectively
Early Involvement
One of Mike’s critical pieces of advice is to involve procurement early in the sales cycle. By doing so, salespeople can align their proposals with the organization’s procurement strategy and avoid potential roadblocks later in the process.
Actionable Steps:
- Proactive Engagement: Reach out to procurement teams early to understand their needs and objectives.
- Alignment: Ensure your offerings are in line with the organization’s procurement strategy from the outset.
Leveraging LinkedIn
Mike suggests using LinkedIn to connect with procurement professionals. This platform allows salespeople to engage with their target contacts meaningfully.
Tips for Effective LinkedIn Engagement:
- Follow and Engage: Follow procurement professionals and engage with their posts by making thoughtful comments.
- Meaningful Interaction: Avoid generic comments like “great post.” Instead, reference specific points made in the post and add your perspective.
Building Relationships Through Thought Leadership
Value Proposition
After establishing a rapport through engagement, Mike recommends reaching out with a value proposition. This approach positions the salesperson as a knowledgeable resource and opens the door for further conversation.
Example Message:
“I found your recent post on [topic] really interesting. Based on our experience in the industry, we might have a unique perspective on this. Would you be open to receiving our thought leadership paper on the subject?”
Authentic Communication
John Golden emphasizes the importance of authenticity in communication. Superficial comments can signal to procurement professionals that the commenter has not engaged with the content meaningfully.
Best Practices:
- Genuine Engagement: Take the time to read and understand the posts you are commenting on.
- Relevant Contributions: Ensure your comments are relevant and insightful.
Avoiding Common Pitfalls
Red Flags in the RFP Process
Mike shares insights on how to evaluate RFPs (Requests for Proposals). He advises salespeople to be cautious of RFPs that restrict access to decision-makers or do not provide clarity on competitors.
Key Considerations:
- Access to Decision-Makers: Ensure you have access to key decision-makers during the RFP process.
- Clarity on Competitors: Seek clarity on who your competitors are to better position your offering.
Types of Procurement Professionals
Distinguishing Roles
Mike distinguishes between purchasing and strategic sourcing roles within procurement. Understanding these roles can help salespeople tailor their approach.
Types of Procurement Professionals:
- Strategic Sourcing Professionals: Focus on long-term supplier relationships and category strategies.
- Purchasing Roles: More transactional and focused on order fulfillment.
Identifying Strategic Opportunities
The Magic Matrix
Mike introduces the concept of the “magic matrix,” which helps salespeople understand where their products fit in terms of supply risk and profit impact. The goal is to be seen as a strategic partner rather than just another vendor.
Magic Matrix Components:
- Supply Risk: Assess the risk associated with the supply of your product.
- Profit Impact: Evaluate the impact of your product on the organization’s profitability.
Building Long-Term Relationships
Proactive Engagement
Mike emphasizes the importance of building relationships with procurement professionals long before a deal is on the table. Salespeople should identify key procurement contacts within their target organizations and engage with them proactively.
Timeline for Engagement:
- 12 to 18 Months Before a Potential Deal: Start engaging with procurement professionals well in advance of a potential deal.
Consultative Selling
Adopting a Consultative Approach
The most successful salespeople are those who adopt a consultative selling approach. They focus on understanding the buyer’s challenges and collaboratively developing solutions that address those needs.
Consultative Selling Tips:
- Understand Buyer Challenges: Take the time to understand the specific challenges faced by the buyer.
- Collaborative Solutions: Work together with the buyer to develop solutions that meet their needs.
Conclusion
In summary, this episode of the Expert Insight Interview provides valuable insights into the procurement process and offers practical advice for salespeople looking to improve their engagement with procurement professionals. By understanding the role of procurement and adopting a collaborative approach, salespeople can enhance their chances of success in the sales process.
Final Thoughts:
- Change Your Mindset: View procurement as a strategic partner rather than an adversary.
- Engage Early: Involve procurement early in the sales cycle to align your offerings with their strategy.
- Build Relationships: Proactively build relationships with procurement professionals to foster trust and collaboration.
For more insights and tips from Mike Lander, listeners are encouraged to connect with him on LinkedIn and explore the resources available through his website, where he shares valuable sales strategies and thought leadership.
Our Host
John is the Amazon bestselling author of Winning the Battle for Sales: Lessons on Closing Every Deal from the World’s Greatest Military Victories and Social Upheaval: How to Win at Social Selling. A globally acknowledged Sales & Marketing thought leader, speaker, and strategist, he has conducted over 1500 video interviews of thought leaders for Sales POP! online sales magazine & YouTube Channel and for audio podcast channels where Sales POP! is rated in the top 2% of most popular shows out of 3,320,580 podcasts globally, ranked by Listen Score. He is CSMO at Pipeliner CRM. In his spare time, John is an avid Martial Artist.
Comments