When the CEO Stops Selling

A while back I read that Bill Gates (when he was active in the management of Microsoft), and Michael Dell would spend nearly 60% of their time in "customer facing engagements.".  That's pretty amazing when you consider the scope of their other responsibilities.

However, its not so amazing when you consider what they learn when they are out in the field.  There is now better way to get market feedback than to talk with customers.  Successful companies need market feedback on a regular basis, allowing them to both react to changes in the market place or to adapt the company to meet the needs of a major customers.  Large customers want to know the direction of their suppliers so they can adapt accordingly.  And of course, you want to know the direction of your major customers so you can do the same. 

During one of these sales calls,  a large Fortune 500 company complained to Michael Dell about the way PC manufacturers made Life Cycle Management difficult for large customers.  Michael quizzed him deeply, digging into the specific needs of that market segment.  He immediately went back to his company and implemented several new ideas, winning him tens of millions of dollars in business based solely on this new aspect of the business.

The reverse happens when the CEO stops selling.  He / she  loses track of market conditions.  Loses track of customers needs and wants.  Lets customer relationships get stale.  All bad news for a growing company, and could be a fatal mistake as your competition reacts faster to a shifting market.

I personally saw this happen with a company in the Life Science industry.  The CEO spent nearly all of his time "building the brand" through speaking engagements and trade associations.  All of this is important, for sure.  But not at the expense of customer relationships.  Sales went south, and only picked up again when he got back into the marketplace and started to rebuild those important customer relationships.

When a CEO is actively selling, good things happen.  Customers respond more quickly.  Sales increase.  Morale of the sales team improves as salespeople feel that the CEO better understands what they are up against in the field.   Quality problems are noted and solved faster.  Customers don't drift away for the simple reason that they feel they have a personal connection "at the top" of the organization.

So get out in the field.  Travel with your VP of Sales, and also travel with your regional managers.  Be selective about the customers you spend time with, of course.  Visit those customers who are generating the biggest volume of business as well as those prospects who have the potential to deliver high volumes.  But don't stop there.

Remember too, that your business is made up of various market segments, all of them important to the top and bottom line.  Visit a few key customers and prospects in specific market segments (small - medium sized companies, institutional companies, or up-and-coming segments of the market. ) This will keep you tuned-in to what is happening across all field of your business, allowing you to see opportunities that would have otherwise gone un-noticed.

And never stop selling...

Dedicated to increasing your sales in North America

Jim Worrell, CEO, The American Entrepreneur