Importance of Business Acumen in Sales

What is that one thing that sets roof installation sales leaders apart from everyday reps? Why is it that some people are good and very effective in closing deals while others are not? Why is it that some reps are able to skyrocket their career growth so quickly? This is where business acumen comes in. Business acumen refers to the ability to combine experience, perspective, knowledge, and awareness to make sound business decisions. It is a practice of good judgment and the capacity to consider a holistic and long-term view of organizational needs.

There are many reasons why salespeople need business acumen and here are some of those reasons.

Becoming a better internal collaborator

Today’s world is highly connected and being a lone survivor in the area of sales will never work. Salespeople need to work within the context of their organization as a whole. If you close a new business by regularly offering huge discounts, you might hit the sales numbers and impress your manager but doing so will put the finance department in a huge fix. The salesperson will win because they have closed a deal, but the implementation and customer success teams will struggle to deliver on those promises.

Helps in understanding complex prospect situations

If you want to develop a good understanding of product features, service packages as well as business benefits, then a client may visit a site. However, there is something more they need from you, and that is guidance and assistance. You need to have a good understanding and consult with your prospects to understand their perspective.

To have a full understanding of business issues and opportunities, there are certain skills you need to develop. Here are important elements that can help you on matters of business acumen.

Assessment

You should be able to look at business situations and easily identify what factors come to play and how they can fit the big picture. If you are experiencing a high customer churn rate, you need to look at any issues facing your customers and have them resolved within the shortest time possible. If your company worked on a recent price change, chances might be your customers are churning because of those issues.

Long term vision and discipline

You need to think beyond daily outreach goals and quarterly numbers. You also need to consider the company’s yearly and long-term goals and align your actions and behavior to support your goals. If your company’s goal is to attract a smaller group of more qualified and high-end customers, ensure your goals are equally aligned. You can challenge yourself to read books about enterprise sales, or even find an experienced mentor who is really good.

Emotional intelligence

Business acumen is not only about meeting your own needs, but meeting the needs of your clients and company at large. You need to have a keen understanding of your clients, know what they might need, and work towards giving them solutions tailored to their needs. It is important for you to also learn about organizational processes.

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