| What a week! Seven speaking engagements and | | | | sell, you may be looking at a logical and profitable |
| sales training in five cities in Washington, California, | | | | business expansion. When your experience |
| and Texas, and five flights provided for an | | | | removes some of the learning curve related to |
| exciting but tiring trip. When my wife picked me | | | | new products and services, profitability show up |
| up at the airport, the last thing I wanted to do | | | | more quickly. |
| was dine out. However, she had had a long week | | | | If possible, use existing business assets and |
| as well. She was prepared to have a quiet dinner | | | | resources |
| at home, but I surprised her by suggesting we go | | | | If you sell related products and services out of |
| out for dinner. | | | | the same location or process, you have the |
| Jensen's Café in Burnsville, MN is a | | | | potential for successful diversification. Examples of |
| wonderful breakfast and lunch restaurant, open | | | | this include selling a new product on an existing |
| from 7 AM to 2:30 PM. The Jensen's are third | | | | sales call, adding a product to a catalogue or |
| generation restaurateurs, with another store called | | | | website, and including new sales materials in |
| Jensen's Supper Club in Eagan, MN. On my flight | | | | existing promotional mailings. The mantra of |
| home I read that they were diversifying their | | | | up-selling is McDonald's "Do you want fries with |
| business by using the Jensen's Café | | | | that?" You can do the same thing with when you |
| location to launch Jensen's Wine & Dine, | | | | up-sell in existing space and process. |
| which uses the same facilities and opens at 4:30 | | | | Provide better service to and more profitability |
| PM. They have an entirely different crew that | | | | from existing customer relationships |
| comes in to provide a warm, upscale, but | | | | Sometimes new product offerings make sense |
| reasonably priced dining experience with fine | | | | when you consider the impact on existing client |
| wines, an excellent menu, and an entirely different | | | | retention. In the old days, the "Three 'L's' of |
| feel than you would find if you showed up earlier | | | | Banking" were 1) Loans, 2) Loans, and 3) Loans! In |
| in the day for breakfast or lunch. | | | | the 1980's, banks started to offer non-traditional |
| What does this have to do with sales? Jensen's is | | | | financial services, such as investments and |
| growing their business using four principles of | | | | insurance. Today banks derive a much greater |
| successful diversification. To be successful we | | | | percentage of their income form non-interest |
| must focus on what we do best, but when we | | | | income than in the past, and thus improve their |
| become successful, we can diversify our business, | | | | profitability with better customer service through |
| and add exponential growth to our bottom line. To | | | | broader product offerings. |
| diversify your sales business you can use the | | | | Use diversification to expand your customer base |
| same strategies, which are: | | | | Common sense dictates that your existing |
| 1. Stay in your area of experience and expertise | | | | products will not appeal to every prospect. |
| 2. If possible, use existing business assets and | | | | However, a related or slightly different service |
| resources | | | | converts prospects that have said "no" to old |
| 3. Provide better service to and more profitability | | | | offerings into new customers. Investment |
| from existing customer relationships, and/or... | | | | brokers found that when they offered |
| 4. Use diversification to expand your customer | | | | guaranteed or insured investments in addition to |
| base | | | | investments with market risk, they could attract |
| Stay in your area of experience and expertise | | | | new clients. With time, these new clients might |
| Many salespeople (and businesses) create success | | | | also consider the brokers' traditional offerings. |
| in a particular business and then diversify into an | | | | Diversification equals growth |
| entirely different area of expertise in which they | | | | Don't forget to focus on the profitability of |
| lack experience. Too often the new offering of | | | | expanding your offerings; it has to make sense |
| products and services creates a drain on the | | | | from a business perspective. Once you have |
| original business. Old customer relationships | | | | established yourself and become a solid presence |
| become strained with "growing pains" being the | | | | in your marketplace, offering additional products |
| excuse. Diversification becomes "deworseification." | | | | and services allows you to increase your |
| Be cautious when expanding your offerings | | | | profitability and take advantage of scale. Take a |
| outside of your area of expertise. However, if | | | | look at what you can offer that will build on and |
| you see sales opportunities in products and | | | | strengthen your existing business. Build a plan to |
| services that are related to what you currently | | | | grow...and execute your plan! |