Unlocking the Potential of Sales Techniques and Experience for Product Managers
Several sales technics product managers can adopt to elevate their performance and deliver a greater impact on their organizations.
As product managers, we constantly seek ways to enhance our performance and deliver greater impact. Interestingly, there are valuable lessons we can learn from the world of sales that can significantly improve our role. Drawing on my experience of over 12 years in selling IT projects, software, and SaaS services to medium and large enterprises, I have identified a set of techniques that product managers can leverage to excel in their daily work.
Customer-Centric Mindset
Successful salespeople distinguish themselves by truly understanding their customers. They invest considerable time engaging with customers, virtually or in person, to uncover their needs and effectively convey the value their product brings. Similarly, product managers must immerse themselves in the world of their customers. By actively spending time with customers, participating in qualification sales calls, or even conducting sales itself, product managers can gain profound insights into customer pain points, context, and objections. This deep understanding enables us to build products that address real customer needs rather than getting lost in the realm of hypothetical "great features”.
Segmentation and Prioritization
In sales, customer segmentation is essential for focusing efforts and resources effectively. Salespeople categorize their customers based on industry, revenue potential, and upcoming renewals to prioritize their engagements. Similarly, product managers should adopt a segmentation approach, considering factors such as devices, marketing sources, or other relevant criteria. As your product gains traction and attracts more customers, it becomes increasingly crucial to prioritize based on business and revenue metrics rather than simple user acquisition numbers.
One approach used by salespeople is the ABCDx segmentation method, which categorizes customers based on their needs, objections, and revenue generation potential:
- A: Customers experiencing acute pain who are eager to adopt your product. These are the low-hanging fruit you should actively pursue.
- B: Customers with pain points who require more time and effort to convince. Address their objections and guide them toward a decision.
- C: Customers whose pain points are partially relieved but may not see the full value of your product. Nurture them for future opportunities but avoid excessive investment.
- D: Customers with numerous objections who challenge the fit of your product. They consume valuable time and energy but are unlikely to become loyal customers. It's best to redirect your focus to more promising prospects.
- x: Large customers with unique requirements and customization needs. Pursue these opportunities selectively, based on their potential impact.
Impact-Driven Prioritization
Just like salespeople, product managers should be numbers-driven and focused on impact. Successful salespeople internalize critical figures such as sales quotas, pipeline stages, and revenue forecasts. These numbers guide their decisions about pursuing new opportunities or nurturing existing ones. Likewise, we should prioritize backlog in tools like JIRA based on their potential impact. The ultimate question we need to ask ourselves is: how can we deliver value that can be quantified in terms of money saved or earned? By aligning our efforts with tangible business outcomes, we can ensure our prioritization is grounded in creating meaningful impact.
Closing the Deal
Salespeople are experts in closing deals. It is a fundamental skill for their success, requiring understanding the decision-making process, addressing objections, and creating a sense of urgency. Product managers, too, must master the art of "closing" by delivering features, epics, and improvements that create tangible impact in the market. When we effectively close the loop, we secure funding, launch new products, and gain buy-in from key stakeholders. To excel at closing deals in the product realm, we must intimately understand the needs, motivations, and priorities of our stakeholders. Armed with this knowledge, we can craft compelling cases for our products and significantly increase our chances of success.
In conclusion, applying sales techniques and leveraging sales experience can greatly benefit product managers in their quest for success. By adopting a customer-centric mindset, effectively segmenting and prioritizing customers, embracing impact-driven prioritization, and honing our closing skills, we can elevate our performance and create a more significant impact within our organizations.