How to Develop Credibility - When You're Not Credible

What are the main issues you face when you target new vertical markets where you don't  have any experience in that area. Also, how do you overcome these problems?

I get asked those questions frequently. But usually it's after the decision has already been made and the poor salespeople are struggling to gain a foothold in the new vertical market.

If you're considering moving your company in a new business direction, here are my suggestions:

Your biggest issue will be credibility. Corporate decision makers don't want to be your first client in a vertical market. They don't want to have to educate you since it takes up their precious time.

Even though you're a good company, they know that your lack of experience could lead to time-consuming and costly errors. They don't want to risk this happening.

1. Move into the market slowly.
Don't bet your company on success in the new vertical. Study the industry. Learn their terminology. Know their competitors. Double check for "fit". I've seen way to many companies leap into new markets because they sense greater opportunity there than in their current market space.

2. Define the business case.
Uncover how they're currently handling things related to your offering. What are the common status quo scenarios? What business objectives will they have difficulty achieving unless they change the status quo? What are the financial ramifications of these? Then define the value they'll get from changing to your product/service.

Potential clients need to hear a strong value proposition that clearly articulates the business outcomes they'll realize by using your offering. Use business terminology, not techie talk.

3. Create linkage.
If possible, try to create a link between your current customer base and your new one. If all your clients are schools and now you want to move to theme parks, you need to be able to clearly articulate why it's relevant.

As an example, last week I had lunch with a good friend who spent over 20 years in marketing with a large accounting firm. She was laid off a while back. Now she wants to work with technology companies.

After analyzing both industries, combined with her experience we realized that her expertise was in helping company's implement strategic changes in their marketing. That positioning makes sense to potential decision makers - and minimizes the "you don't have any experience with companies like mine" objection.

4. Pursue smaller opportunities first.
This significantly reduces the decision maker's perceived risk in moving ahead with a new player in the market. Then, make sure you do a superb job on delivering on what you promised. After that, pursue additional opportunities within the account to expand your footprint.

5. Train your salespeople on all the above.
Without this knowledge, they will flop. That I can guaranteed 100%. Ultimately these people have to make it happen. Don't send them into the field with some worthless PowerPoints explaining your technology in excruciating detail. They need to be able to have intelligent business conversation with decision makers.

6. Create field-ready sales tools.
Focus especially on the early stages of the sales cycle. Your sales reps are going to have a tough time setting up meetings. Show them how to integrate their value proposition into phone calls, voicemails and emails.

Give them relevant white papers and case studies that are closely aligned with this new market segment. They must be able to show your company's expertise to customers, so this is a necessity - even if you're moving to a new market.

Create a "question matrix" that outlines what they should be looking for on calls and the questions they should ask to uncover this information. Develop customer-focused PowerPoints to use on follow-up meetings.

7. Pray!
It takes a lot of hard work to succeed in a new marketing segment. Implement the above suggestions and your chances of success increase. Rush blindly ahead and you'll most likely waste tons of money, put your firm in financial distress, frustrate your sales force and create incredible internal animosity.

Comments

[Dave Stein]

Jill,

Great list.

About your first point: I've always found www.brint.com to be a terrific resource when coming up to speed on a new industry. Make sure you read those trade magazines (and websites)!

[Michael Goodman]

I love this post Jill. Not just because of the great photograph of a baby praying which I now have to print and put somewhere I can see daily, but because of your great explanation. You always make things so easy to understand.

One of the things I thought about a long time was something you mentioned, start with smaller opportunities first. What I have found is that starting not only with smaller opportunities for me, but smaller opportunities against the client P&L statement reduces their risk and therefore takes a little less credibility to accept me.

Simply put, a 10 dollar sale to a 5 Billion Dollar a year company takes a lot less credibility than a 900,000 Dollar sale to a Million dollar a year company.

You always keep me pumped up.

Thanks!

[Pam Irving]

Great post, but I think there is one area you missed...and that is building and deepening business relationships. A new book I just read, “Get Noticed, Get Referrals” by Jill Lublin explains that process in painstaking detail. The title of the book is a bit misleading in that she covers a lot more than business referrals. Jill also offers systematic advice on using focus to accomplish goals over an extended period…and to be certain, business credibility is built over time. If you want more brilliant business tips from Jill, you can sign up for her free newsletter and be notified about special promotions happening this week with thousands of give-aways. Just click here:
http://www.jilllublin.com/newsletter.php

[Clara Anthony]

Nice post and definitely a word of caution to those who are treading on unknown territory at the strength of an existing brand. This can become a double edged sword as a flop can lead to a collapse of the brand you are riding pillion on. Never the less outsourcing can be considered as a plausible option and especially companies like Cleaveglobal who have valuable insights and understanding about business in the health, telecom and finance sectors can be a good option when venturing into the not so familiar territory.
http://www.cleaveglobal.com/

[Kim Duke, The Sales Divas]

Hey Jill!

Really looking forward to seeing you at the Sales Shebang!

As a former media chick - something that sooo many businesses forget to do when launching in new directions is to get into the media with a cool story.

One of the fastest ways to gain credibility is to be seen as an expert in the media. The viewers, listeners and readers of all local and national media get to sample your expertise.

The trick? Create an idea for a reporter that will capture the attention of the public. Pitching your new product/service will just end up in the garbage can.

Kim Duke
www.salesdivas.com

[Jill Konrath]

Thanks for all the great feedback on this post. Like many of you, I've seen companies totally abandon their current customer base in the hopes of finding Nirvana in some other market segments. Not a smart move! Typically they lose whatever momentum they had and everything comes crashing down around them.

In short, don't throw the baby out with the bathwater!

[Craig Elias]

Jill hits the nail right on the head, again.

I teach at 13 different entrepreneur schools and the biggest reason most entrepreneurs lose a sale is that the buyer's perception of the risk they take on is greater than their perception of the entrepreneurs’ credibility.

The three best ways to reduce the buyer's perception of risk are:
1) Compliment what the buyer already has don't try to replace it
2) Reduces the scope of your initial sale
3) Increase the risk of inaction

As Jill says the best way to offset risk is with credibility and there are three forms of credibility:
1) Relationship
2) Leveraged
3) Expertise

I hope this helps.

Craig Elias – Creator of Trigger Event Selling

[Jill Konrath]

Craig - Your comments on reducing the buyer's perceived risk in working with your firm are right on. Thanks for sharing. Jill