We dive into the dynamics of sales probability and why leveraging whitespace analysis is critical for maximising growth potential within existing customer accounts
CREDIT: This is an edited version of an article that originally appeared on SBI
Research by Forbes indicates that the probability of selling to a new prospect is between 5% and 20%. In contrast, the likelihood of selling to an existing customer is significantly higher, ranging from 60% to 70%. While further research shows that upselling and cross-selling to current customers can boost revenue by 10% to 30%.
Whitespace analysis is a process sales teams may use to uncover opportunities and untapped growth potential within existing customer accounts through detailed data analysis. Various types of information can aid in identifying whitespace within an account, including the account’s industry, the company itself and the individuals within that company.
Conducting a PEST Analysis
PEST stands for Political, Economic, Social, and Technological factors that can impact an industry. This framework is a powerful tool for understanding the strategic issues that influence your customer’s industry.
For instance, changes in government leadership, regulations, and tax policies can transform a company’s business environment and influence its strategic priorities. Social changes can greatly affect a company, its products and services, and its business operations. Additionally, emerging technological trends, such as AI, can also significantly impact an industry.
Company
Conducting company research should provide you with a comprehensive understanding of growth trends, recent news, key initiatives, organisational changes and competitors. This information will help you better define your value to their enterprise.
People
The final area to research is the people within the company. It’s important to understand who the key players are and how they interact with each other. More importantly, assess their level of commitment to you, your company and your solutions. Identify who is likely to champion any proposed initiatives and who might be obstructive.
Finding the white space
Components of whitespace analysis include: a list of all the solutions you offer, identifying which solutions are currently utilised within the account, and evaluating the applicability of unutilised or underutilised solutions to the account.
To quantify whitespace, multiply your available solutions by the number of possible instances. After identifying the whitespace in an account, your sales team can use the following four account management tactics to grow the account:
Expand: Increase the usage of your solution within the account
Up-sell: Offer an upgraded version of a solution currently used by the account
Cross-sell: Broaden the number or types of solutions within the account
Retain: Extend the duration the account utilizes your solution(s)
In conclusion, whitespace analysis emerges as a pivotal tool for uncovering growth opportunities and helping sales teams to effectively nurture and expand relationships.
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