As an executive coach, I work with clients who oversee various aspects of their businesses, including sales, finance, human resources, and operations. Many of my coaching clients hold CEO or COO positions in medium-sized organizations. With my background in sales and marketing and years of business ownership, I have gained expertise in managing both the revenue and expense sides of the house.
To clarify the terms, let’s define the back of the house as the side responsible for expenses, costs, overhead, and spending money. On the other hand, the front of the house refers to the side that generates revenue through sales and marketing. While both sides are equally important, understanding one side better allows us to better serve the other.
Understanding Both Sides: The Key to Successful Selling and Business Growth
My experience managing the back of the house as a business owner and executive coach has greatly enhanced my sales skills and coaching abilities.
One of the main challenges salespeople face is selling value. Often, they focus on the wrong value proposition for the wrong person.
For example, when selling a vacation package to my wife and me, emphasizing saving money and getting more for less wouldn’t resonate with the wife. Mrs. Jamail values the ease and enjoyment of the experience. Highlighting personalized breakfast service, a golf cart waiting at the door, and reserved beach chairs with an attendant ready to serve food and drinks would appeal to her. On the other hand, for me, the value lies in saving money while ensuring my wife’s happiness. If you can convince me that the vacation package saves me from the hassle of setting up chairs and ice chests on the beach while also providing cost savings and making my wife happier, I’m sold.
In this scenario, my wife represents the front of the house, while I represent the back. By demonstrating how our product or service can contribute to the front’s success and customer value, we gain their support and investment. This approach applies to selling to businesses as well.
Selling to the Front of the House: Maximizing Revenue and Value
When selling to the front of the house, focus on helping the company grow rather than solely on cost savings. Understand the sales and marketing side of the business and demonstrate how your offering can make them more valuable to their customers and outperform their competition. By helping clients increase revenue instead of just cutting costs, we contribute to their overall profitability and value.
At the same time, we can serve the back of the house by showcasing the value of their investment. We must show them that we are not just another vendor reducing their expenses but a strategic partner that enhances their return on investment.
For instance, if I save a client $10,000 on their sales training program, my value is $10,000, but that value diminishes if someone else offers to save them $12,000. However, if I help them increase their revenue by $900,000, my value becomes $890,000. Which value proposition sounds more compelling? Furthermore, when competitors attempt to attract my client with lower prices, they won’t be enticed. My competition only focuses on cost savings without contributing to the client’s growth or overall business improvement.
This example holds across industries. Rather than solely selling your product at a lower price, aim to be a valuable business partner. Understand how your product or service can help your clients better serve their customers.
Selling is about understanding the entire business and catering to both sides of the house.
Final Thought: Salespeople play a crucial role in business, whom should aspire to be more than just vendors or salespeople, and our actions speak louder than words. Demonstrating value through our actions, not just through promises or features and benefits, establishes our worth. Be a positive force for business. Instead of solely focusing on what your service does, concentrate on what your client achieves. When their success becomes your success, you become indispensable.
