Moving Beyond Transactional Sales: Finding Purpose in Transformational Sales

Finding the value gap

I’ve been contemplating writing about this topic for quite some time, but the courage to finish it has eluded me. This subject closely mirrors my entire professional journey, making it feel like I’m penning my own memoir. It holds valuable lessons, especially for those starting their careers in Sales or those navigating their way through 3 to 4 years on this path. Sales is demanding and challenging, but it’s undeniably one of the most rewarding professions in the world. So, without further ado, let’s dive into the heart of the matter: What’s wrong with transactional sales?

The Problem

Transactional sales, as the name suggests, are transient and initially enjoyable but tend to lose their charm quickly. Sales representatives often find themselves in a relentless cycle of chasing targets and measuring achievements every quarter. While everything seems rosy when you’re hitting your numbers, problems arise when you hit a roadblock.

Let’s break down the issues I encountered during my early years in transactional sales:

1. Smaller Customer Learning Curve:

• Low-ticket products may impact customer learning, but the curve is often shallow.
• Learning is further reduced through videos, guides, and FAQs.
• This disconnects sales reps from customers who could provide more business when they switch jobs.

2. CXO Interaction is Minimal:

• Higher-value products involve more stakeholders.
• CXO buy-ins or executive sponsorships are crucial for such deals.
• Most significant deals demand substantial interaction and face time with CXOs.

3. Low Stakeholder Involvement:

• Both internal and external stakeholder management is less intricate in low-ticket deals.
• Large deals require sales reps to coordinate meetings among various teams on both the customer and company sides.
• This skill helps understand the intentions of those involved, such as gatekeepers, influencers, or champions.

4. It’s Not Just About Budget:

• Budget constraints are a leading cause of deal failures.
• In high-ticket sales, sales reps must create budgets involving multiple departments and stakeholders, which is an art in itself.

5. Timing is Key:

• Timing plays a crucial role in small-ticket deals.
• High-ticket sales involve long sales cycles, reducing the importance of timing.
• Dependency on timing is lower in high-ticket sales compared to low-ticket ones.

6. Low Incentives:

• While high-ticket deals don’t always yield higher earnings, they generally outperform earnings from multiple smaller deals.

7. Burnout:

• The relentless pursuit of quarterly quotas often leads to mental stress and burnout.
• High-ticket sales are typically reviewed on a half-yearly or annual basis, reducing the quarterly pressure.

Ways to Overcome

Having explored the challenges of low-ticket sales, it’s crucial to transition from transactional, smaller deals to higher-ticket, transformational ones. Here’s a three-step guide:

1. ROI Calculation:

• Before joining a company as a sales rep, thoroughly understand the product and its value to customers.
• If the ROI isn’t a seven-figure number, you might be dealing with a product that only has a peripheral impact on the customer.

2. Average Ticket Size:

• Inquire about the average ticket size of the sales organization you intend to join.
• Even if enterprise deals are in the millions, if they are combined with SMB and mid-market deals, and the average still totals $30k or more, you’re in the right place.

3. Sales Cycle:

• The sales cycle duration is a key indicator of whether you’re dealing with transactional or transformational deals.
• Sales cycles lasting from six to twelve months indicate a sales organization focused on complex value sales.

Conclusion

In conclusion, I don’t despise transactional sales, but it’s essential to recognize that transitioning from low-ticket, transactional deals to high-ticket, transformational deals is a natural progression for a sales rep’s career. This journey should be embraced as an opportunity for growth and fulfillment. The rewards and satisfaction of transformational sales go beyond quotas and targets, offering a deeper sense of purpose in the world of sales. So, whether you’re just starting your sales career or well into it, remember that the path to transformational sales is a journey worth taking.