Cross Selling or Cross Purposes?

by Ford Harding

The merger between TopTek and Rossberg Lee was suppose to be a great success for both parties. CEO John Vaunt has noted to his trusted VP for HR Anna Tucker that since the acquisition many problems have arose. Complaints from customers, his own sales staff and newly acquired consultants has him thinking that his company needs some restructuring. Vaunt employs Tucker to troubleshoot from the inside out o try and discover what changes need to be made to keep TopTek flourishing. What Anna finds through discussions between the different divisions is that the transition since the merger has been anything but easy and profitable. The sales force believes the consultants are unable to effectively sell to customers. The consultants feel that the sales force is not tech savvy enough to sell solutions after initial sale. The biggest issue was the compensation structure that rewarded the sales force who had won the account years ago and still gave the sales force commission for the consultants current sales.

Key Issues with Suggested Solutions

• Consultants feeling short changed because commissions are going to the sales force. TopTek's current commission structure could be modified to appease the complaints of the consultants. However, this may lead to appeals by the sales force who have worked with this structure  and have found the most efficient way to meet their quotas. 
• The sales force perception of the newly acquired consultant firm. Many of the sales force voiced their opinions regarding the consultants as not being able to trust them with their clients. This is a very crucial problem which needs to be fixed. Both sides of this merger appear to be unhappy so management needs to mend these relationships before it becomes detrimental to accounts. A company wide training or meet and greet could promote better bonds within divisions of the organization. 
• Customer dissatisfaction after the recent merger. Trying to push sales to an established client will only lead them to feel overwhelmed and annoyed by your staff. Both companies should educate one another on current clients needs and the direction the account reps are currently taking to ensure a fruitful and continued business relationship.
• Better strategy with productive pairing. There was one case where both sides from the sales force and consultants worked great together. Each person had only the best to say of the other and together they were able to seal an large account for a good amount of business. Using this as an example TopTek should work to try and mold better pairings among the divisions so that there is a trust built between the individuals. This would create a better work environment for both sides that may lead to less concern about the commissions structure and focus on account handling. 

Consultant's Viewpoint

The current commission structure is asinign and unfair. Why am I working so hard to sell solutions to these clients if the commission is going to someone I haven't even met yet here at TopTek? Sure they closed the account years ago but now I am the one adhereing to the customers needs and introducing new products to them, where is my cut? This structure needs to change in order to be more rewarding for my hard work and time.

Sales Force Viewpoint

Although I can see the frustration among the consultant division, I must ask them who they would be selling these new solutions to if we hadn't closed the account? We are trying to bring in more and more accounts that the consultant division can continue to grow the account. Shouldn't they be grateful for our continued success of closing new clients rather than complaining about commission? Now that we've merged our structure should not change to appease their shortcomings.

CEO Viewpoint

After hearing from both sides, the best course of action would be to integrate the way both divisions work in order to highlight the best that both do. With the sales force becoming more knowledgeable of the customer's and the consultants realizing when and how to sell to a client we can be more productive without losing any key members from either staff. Potentially in the future we can discuss a restructuring of commissions but for now we will continue to use the current system.

The Sales Learning Curve

The initial motivation to increase sales force capacity to sell a new product is the wrong approach. Taking the time during the initial stages before the product's launch to learn about the customer, their needs and proper use with a new product, can save a company a lot of money and man hours. Without the proper research a product's potential can be compromised with an early launch, especially if the product has yet to be fully developed as seen with companies like Scalix and Veritas. The research can be demanding but it will ensure that a company's product will traverse the learning curve at an optimal level to reach a product's full value within the market.

Key Issues with Suggested Solutions

• Sales force capacity being increased too early. This causes a company to waste funds and end up failing to meet sales expectations. Using resources to make more accurate projections to know when the correct time to "ramp up" the sales force. 
• Under-developed products being launched into the market. Communication between engineers and marketing teams is essential for a product's success. Keeping the engineers in the loop until the product matures in market can help marketing teams predict potential issues that may arise. With both side knowing what it takes to make the break-even point, a better strategy can be formed. 
• Reaching the Break-Even Point and Profitability quicker. Tracking sales yield over time and making the right adjustments to the go-to market strategy enables a company to shrink the revenue gap and reach the break-even point. Once reached, the company can focus its attention on the customer base it has acquired and perfecting a sales strategy to become the standard model. 

Seller's Viewpoint

Our product needs to get out into the market fast! What a ground-breaking new idea that everyone is going to love. Let's fast track a sales force for our product immediately to generate a customer base that we can profit from long term. Some minor tweaks will need to be made but with a product this good, we cannot wait to introduce it to the public!

Buyer's Viewpoint

This product could be amazing but I'm finding some issues that have no resolutions. How could they have released this product without making sure it works correctly? Clearly this company was out to make a quick buck and put quality to the way side. I will not be buying any future products from this name brand.

Airwide International 

The Airwide International Case shows the importance of key account selling strategies and how market fluctuation will continue to keep a company searching for solutions to persevere. The interaction between Mr. Zhang and Mr. Wei revealed the difficulties a business faces while struggling to grasp a customer's/market's reaction. Addressing the issues through insightful thinking enabled Airwide to dissect the dilemma(s) at their core. With a better understanding of the market Airwide can approach its customers with a greater knowledge of needs to sustain more lasting business relations.


Key Issues with Suggested Solutions

• Struggling performance of sales in the eastern region. Concentrating efforts to discover problems with accounts that have been growing over the past three years. Brainstorming different diagnoses to these problems and ranking potential profitable outcomes. 
• Sales representatives being worn too thin attempting to meet advanced quotas. Hiring more employees to help meet quotas and weeding out those who are under performing. Questioning sales reps as to what will keep them hungry to make more sales and what incentives will keep them driven.
• Shifting towards a market-driven mentality rather than the traditional sales-driven approach. More training sessions with sales representatives and staff can provide more efficient techniques to assure customers that their interests are the number one priority within transactions. Lowering prices just to make the deal sweeter is not what Airwide's customer's are looking for, they want to do business with a trusted ally rather than someone looking for another notch on their sales belt. 
• Keeping account information fresh to adhere to the changing needs of the customer. Using social media and the Internet can allow Airwide to maintain better business relationships. More research into the customer's necessities and an advancement of leads will allow Airwide to gain a competitive advantage. 

Seller's Viewpoint

Solving this "mystery" as to why customers are choosing to sign with competitor's has been quite confusing. Especially with customers who have been on the books for a number of years. Where do their loyalties lie? What, in their eyes, has changed with our methods of conducting business? A more strategic approach to winning bids must be implemented to conserve our brand name. Our sales force needs to work harder to keep business relationships current while continuing to find new clients to increase revenues. 

Buyer's Viewpoint

The Airwide brand is well-known and trusted, yet I'm finding my demands are being overlooked. It can't hurt to seek an alternative to find out what I may be missing out on even if it means acquiring a new contract. Some of Airwide's competitors may be willing to cut a deal that will work out better for my company in the long run. Severing ties with a reliable associate seems misguided but will their strategy become more in tune with today's ever changing market? It might not be worth the wait.