In the world of B2B sales, the key role in the successful completion of a transaction is played by the decision maker. Working with him is a strategically important stage for any sales manager, since it is this person who determines whether the deal will take place, under what conditions and in what time frame.
Interaction with the decision maker helps the seller quickly go through the approval stages and conclude an agreement. In the article you will learn who a decision maker is in sales and how to reach the decision maker.
Who is a decision maker and how does he help increase sales?
Author: Vladislav Afonin
Introduction: who is a decision maker
This decision maker is an authorized person, usually a legal entity, who makes key decisions regarding purchases, partnership agreements, or other business interactions within the company. This term is used to refer to the person in the organization who determines the final “yes” or “no” in the negotiation process.
If you work with a representative, this greatly simplifies the trading process and eliminates the need for coordination with intermediate links. If the salesperson understands who the decision makers in the client’s company are considered to be, he can build interactions more purposefully, offer solutions and arguments that correspond to the interests of this person.
Often, sellers do not immediately find out who the decision maker is, and mistakenly mistake him for any senior employee who participates in negotiations. However, this is not always the case, since an organization may have several levels of management, and not all of them have the authority to finalize the decision to cooperate.
Therefore, the ability to find and work directly with a representative is an important skill for sales managers, which determines how productively and quickly a deal will be concluded.
Advantages of working with decision makers
- The negotiation cycle is shortened. Direct contact with the decision maker allows you to avoid long chains of approvals. This reduces the likelihood that a sentence will get lost in the middle stages or be interpreted incorrectly.
- The risks of misunderstandings are reduced. When communicating directly, you can clarify all the nuances and make sure that the proposal is correctly understood. This reduces the risk of misunderstandings or misinterpretation of product or service information.
- The chances of a successful transaction increase. When you work with a person who has the power to make decisions, your efforts are directed directly at the key person. This makes it possible to promptly respond to his objections and emphasize the most important points for him, which significantly increases the likelihood of successful completion of the contract.
- Costs are optimized. The fewer approval stages and the faster the decision is made, the lower the costs of attracting and retaining a client.
- The position in negotiations is strengthened. With direct contact with the decision maker, you can immediately discuss favorable conditions and offers, without resorting to workarounds, which makes it possible to flexibly adapt to his needs and requests.
The company offers sophisticated software that automates business processes. If you work with a representative in the person of the IT director or head of the automation department, you will be more likely to gain valuable information about the current needs of the enterprise, as well as formulate a proposal so that it corresponds to the strategic goals of the organization.
The role of LPR
The official is primarily responsible for the following main aspects:
- Determines the needs of the company. The decision maker has accurate information about what products or services the organization needs to achieve strategic goals. For example, the CFO may be the one who makes decisions about whether to purchase new accounting software, while the marketing director may be the one who selects the promotion contractor.
- Controls the budget. Most proposals are not accepted without financial approval. The decision maker participates in the discussion of the economic framework and the distribution of funds. For example, the head of the purchasing department will make a decision based not only on functionality, but also on the price of proposals.
- Analyzes risks. The representative is responsible for potential crises that involve decision-making and often assesses threats or works with the department that manages risks. The decision maker checks whether the new proposal meets the safety standards and corporate culture of the company.
- Takes final approval. The official has the right of final approval, since he is responsible to the management of the organization for his decisions. This makes him a key player when a deal is struck.
Let’s consider who the decision maker is in the company and what role he plays: in large corporations, the role can be played by a whole team, where each participant is responsible for a certain part. For example, the finance department is responsible for the budget, the IT department is responsible for technical aspects, and the HR department is responsible for personnel.
Why do you need to identify decision makers?
Finding a representative is an important stage in the sales process, as it directly affects whether the transaction will be successful. Let’s tell you why it is necessary to identify decision-makers:
- Sales efficiency increases. When a salesperson knows who to talk to, he can immediately focus his efforts on demonstrating the value of his offer to a specific person who has decision-making authority.
- Resources are saved. Long-term communication with employees who are not decision makers leads to a waste of time and financial resources, since each additional stage of negotiations requires funds.
- The transaction process is accelerated. If you interact with a representative, this will speed up the completion of the contract due to the absence of unnecessary approval stages.
Today, the decision maker is a professional who is focused on the sustainable development of the company. His choice is based not only on the cost of the proposal, but also on factors such as product innovation, business benefits, flexibility of cooperation and prospects for long-term partnership.
Where to find information about decision makers
- On the official websites of companies. Here you can find sections that are dedicated to the team, structure and key employees, which will help to get an idea of who the decision maker might be.
- Through databases and CRM. There are specialized information resources that collect information about company contacts, including heads of departments and other decision-makers, for example, SPARK.
- At events and conferences. Attending industry events is a great way to meet representatives directly, discuss potential collaborations, and make personal connections.
How to calculate decision maker
Understanding and identifying the person responsible requires analytical skills and effective search techniques. Below are key tactics and strategies that will help you understand how to reach decision makers:
- Analyze the company structure. Start studying the organizational structure of the organization if it is available to you. On the websites you can find a management scheme and lists of department heads. Most representatives are department heads, supervisors, or members of the management team responsible for budgets and strategic decisions.
- Conduct surveys and research. If you already have contact with any employee of the company, ask him for information about who is responsible for the area that interests you. Sometimes a general idea of the role of the decision maker can be obtained by asking leading questions. This can be either direct or indirect questions like “Who usually deals with such issues?”
- Contact the decision maker through other employees of the company. If the first person you meet at the company is not considered a decision maker, ask him to introduce you to the decision maker. This approach not only helps to find the right representative, but also builds trust with the organization’s team.
- Analyze the company’s customers and partners. Firms often interact with other organizations, and important insights can be gained through joint relationships. For example, if you have friends in the company your potential client works with, they can recommend who to contact.
Let’s say a person works for a B2B company that supplies equipment to manufacturing companies. In this case, the representative will likely be the purchasing director, technical manager, or finance manager.
The seller can contact the sales department and ask to call the right person. In some cases, sellers leave working contact information so that the decision maker will call or write back at a convenient time.
Difference between LPR, GLPR and LVR
For successful sales promotion, it is important to distinguish between three concepts: decision maker, GLPR and LVR. Although they are similar in meaning, each of these terms denotes different levels of influence on a company’s results.
GLPR (main decision maker). This is the representative who has the greatest authority, and in most cases the final approval remains with him. GLPR manages larger budgets and is often involved in strategic planning, unlike the decision maker. For example, in a large company, the financial director may be the CEO if large amounts of investment or purchases are involved.
LVR (person influencing the decision). Does not make the final decision, but directly influences it. These could be specialists, consultants, engineers or technical managers, whose opinion has weight in the eyes of the decision maker. LVR plays an important role, since they are the ones who can support or, conversely, oppose your proposal.
Imagine that an employee proposes a solution to automate the accounting department. In this case, the decision maker may be the head of the accounting department, who sees how much the proposal will help in the work. GLPR is the financial director who allocates the budget, and LVR is the IT specialist who evaluates the technical features of the product and makes recommendations to the financial department.
How to reach decision maker
Actions to contact a representative require careful preparation, since the success of communication with him depends on the first contact. Make sure your message stands out, generates interest, and immediately demonstrates the value proposition. Here are a few strategies to help you connect:
- Prepare in detail. Before contacting the person in charge, you will need to collect as much information as possible about the company and its needs. Understand what company problems your products or services will help solve so that the offer immediately looks as relevant as possible.
- Compose personalized emails. Avoid boilerplate messages—instead, craft a unique message that emphasizes that you understand the company’s needs and how your solution can help. Decision makers often receive dozens of proposals, so your task is to immediately catch his interest.
- A call with a hook. If you decide to contact by phone, then think over a short introduction that will be interesting to the representative. This could be an interesting fact about the organization or its industry, news about the market, or a feature of your product. For example, you could say, “I noticed that your competitor recently implemented a similar solution, and we can offer you more flexible terms.”
- Networking at events. Meetings and industry events provide an excellent opportunity to meet decision makers in person. At such events, those in charge are usually open to new contacts and are ready to discuss current proposals and innovations in the industry.
- Be active on social networks. The seller can not only write a message, but also comment on the decision maker’s posts, participate in discussions, show his expertise and interest in their professional activities.
Mistakes to avoid when approaching a decision maker:
- Obsessiveness. Do not try to contact the representative too often – this may lead to a negative reaction. One or two messages or calls are enough for the first contact. If the person doesn’t respond, try again later or change tactics.
- Don’t call without a clear plan. One of the common mistakes is communication without a clear conversation plan. When a decision maker hears an unconvincing and generic presentation, he is likely to lose interest.
- Submit your abstract by mail. Try to avoid overloaded texts – be concise and specific so that the manager can quickly assess the essence of your proposal.
Bottom line
It is important for salespeople to demonstrate industry expertise, know trends, and be prepared to offer customized solutions that closely align with the company’s current priorities.
Digitalization of sales allows for the active use of omnichannel approaches: contacting decision makers through different channels – from instant messengers and corporate social networks to online meetings – thereby creating a convenient and accessible interaction algorithm.
Source: rb.ru