Lean Selling: What You Need to Know

Introduction

Lean and how lean impacts selling, sales organization and sales strategy starts with a simple premise: Sell the right product. 

Sales, as a discipline, have always sought out ways to streamline, automate, and improve the selling process. The results are numerous sales automation tools, CPQ solutions and CRM packages that offer many valuable benefits to the user often being included in organizational sales strategy. CPQ software is especially valuable for companies selling complex products that require detailed configuration and pricing. These tools can help a great deal, but, at the heart of any selling effort, there are two critical elements that must be well served: the salesperson and the buyer, with a strategic focus on price to ensure value-based selling. Sales automation tools, such as advanced product configurators, help manage product configurations and streamline customization. 

We are going to look at how lean selling serves both the buyer and the seller. 

There are numerous lists of “pet peeves” cited by sales professionals online. A large percentage of these issues are related to the time and efficiency of the sales strategy. Sales folks hate wasting time, and they despise unnecessary tasks. And therein lies the intersection of selling with lean. Adopting the right technological infrastructure and tools is key to enhancing efficiency and reducing waste in sales operations. 

 

What is Lean Selling? 

Lean selling is a sales approach that applies lean thinking to the sales process. At its core, it aims to eliminate waste, maximize value for the customer, and deliver more with fewer resources. Originating from the principles of lean manufacturing introduced by Taiichi Ohno, lean selling focuses on delivering value to the customer rather than just making a sale. This approach involves a scientific method to sales, using data and analysis to inform decision-making. By focusing on “selling less, selling better,” lean selling ensures that every action taken in the sales process is purposeful and adds value to the customer. This not only streamlines the sales process but also enhances the overall customer experience. 

For example, common sources of waste or inefficiency in traditional sales processes include redundant paperwork, unnecessary meetings, and delays in communication. Lean selling addresses these examples by identifying and removing such inefficiencies, leading to improved productivity and a more efficient workflow. 

 

Lean and Selling Are Natural Friends 

Lean seeks to make every effort count. In the world of lean, effort should be directed toward customer benefit. In lean selling, understanding the relationship between prices and customer loyalty is crucial for maintaining profitability. That doesn’t mean giving away freebies or pricing the product below the cost. Customer benefit means that the customer will derive some good from the process or activity in question. Effort expended that does not achieve this is defined as waste. 

The classic example is the cotton in the neck of a bottle of pills. Years ago, pills were simple compressed power. They were fragile and prone to breaking down and returning to their original powder state. Cotton was jammed in the pill bottle to prevent pills from breaking down when they rattled around in the bottle. Today, pills are bound together more strongly, and the cotton is wholly unnecessary. Lean selling eliminates cotton in your sales process. 

For sales people, this is good news because they are central to applying lean principles in the sales process. Sales people play a key role in identifying value, managing customer interactions, and continuously improving sales flow to reduce waste and improve efficiency. Sales folks hate wasting time on processes that do not help them achieve their goals. If you want to make Sales miserable, ask them to spend time on activities not related to selling. Lean sets out to facilitate selling processes that eliminate unnecessary effort. 

This does not mean that lean will just go down the “sales throat” like 12-year-old Scotch. But lean, positioned properly, will win the hearts and minds of the Sales organization very quickly. 

 

 

The Intersection of Lean and Selling 

Lean impacts the selling process in several places. Lean selling also emphasizes the importance of high service levels to enhance customer value-add activities and protect profitability. An effective sales team is crucial for implementing lean selling strategies and managing the collaboration required in complex sales environments. Each of these are important individually. But selling is a complex activity, and none of these stand-alone without impacting or being affected by others. 

 

Velocity of Selling

Unlike many activities, the metrics of success and failure in sales are easy to identify and evaluate. It generally comes down to how much revenue you have generated over a given period of time. Sales reps that meet or exceed their targets are heroes; those who don’t are unemployed.  

Sales organizations have to be relentless about meeting their revenue figures but more importantly, they have to challenge themselves to sell faster.  

There isn’t a sales rep alive who hasn’t expressed frustration with the length of time needed to close business. Time spent closing one sale often comes at the expense of closing another. Eliminating the unnecessary, valueless and useless activities required during the selling cycles will facilitate a quicker closing and ultimately more sales over time.  

 

Sell It Once, Sell It Right

General George Patton once balked at an order requiring him to abandon one front for another. His view was he hated “paying for same real estate twice.” In selling, we see this frequently. A selling cycle moves forward without adequate communication of need or requirement upfront.  

Confidence in the proposed solution is based on a lack of information or assumption. Ultimately, the inadequacy comes out, and everything in the selling process resets to day one. The competition comes right back into the picture, and all progress to date has been a waste of time.  

Lean makes the selling process more methodical. Step one is achieved and documented, step two builds on step one and facilities step three. Accurate and relevant data drives the selling process. 

 

Proper Qualification

Nothing is more wasteful in Sales than selling something to someone who can’t use it or doesn’t need it. Prospects will engage with Sales for any number of reasons—boredom, curiosity, make-work and self-education. Sales reps, especially those who are desperate, will do anything to keep the flame of hope alive with a prospect that by any measure has zero intention of buying anything. 

Lean gets the right prospects in front of your selling organization. It goes beyond BANT by identifying prospects who have self-qualified through their own behaviors. Real prospects have needs they are trying to fulfill. They research and study solutions long before they think of talking to anyone associated with selling. Facilitating that research and providing answers to those inquiries, especially by promptly responding to customer inquiries as a key aspect of timely engagement, is how sales cycles are started. 

 

Responsiveness to the Voice of the Customer

Not all customer communication comes via personal letters, emails, or RFPs. Prospects are always communicated.  What pages do they visit on your website? What data sheets or collateral do they download? How often do they attend your user meetings? What LinkedIn groups do they belong to? What do their social interactions tell you?  

Listening to the customer or prospect is critical. Knowing how to listen properly is what lean selling helps to accomplish. Lean selling ensures that sales strategies are aligned with customer needs by providing not just products but also customized services to enhance value. A car company recently spent a small fortune improving the drive-away quality of one of their popular car models. This resulted in no increase in sales. If they had spent any time on the owner’s club social pages, they would have discovered that quality was not an issue with their buyers—their buyers wanted more power. The quality was fine; the issue that killed the car was its lack of power.  

Lean collects the right market data to support the right marketing decisions. Aligning those decisions with sales drives a successful sales organization.  

 

Benefits of Lean Selling 

Adopting a lean sales approach offers numerous benefits to businesses. Firstly, it enables companies to deliver more value to customers with fewer resources, which leads to increased customer satisfaction and loyalty. By reducing waste and improving efficiency in the sales process, companies can achieve significant cost savings and improved margins. Lean selling is also a powerful driver of revenue growth and profitability, as it allows businesses to differentiate themselves from competitors by focusing on delivering value to the customer. This approach improves sales performance by reducing unnecessary selling effort and ensuring that every interaction with the customer is meaningful. Ultimately, lean selling helps businesses to enhance their market position and achieve long-term success.  

 

What Does the Lean Sales Cycle Look Like? 

Traditional sales cycles are composed of many two-way streets with sellers and buyers moving back and forth until they hopefully line up and arrive at a sale. The lean sales cycle is more of a one-way street. Prospects and Sales move down that street smoothly with no protracted stops and arrive together at the sale. There is no back and forth, no try again, no hoping for the best.  

Implementing a Lean Sales Approach 

Implementing a lean sales approach requires a deep understanding of the customer’s needs and pain points. This involves redesigning the sales process from the customer’s perspective, obtaining regular feedback, and using data and analysis to guide decision-making. A lean sales approach also necessitates a collaborative effort, involving multiple stakeholders to ensure that the focus remains on delivering value to the customer. To successfully implement this approach, businesses should prioritize eliminating waste, reducing costs, and improving efficiency in the sales process. Additionally, they should continuously monitor and improve their sales performance, always keeping customer satisfaction and loyalty at the forefront. By adopting a lean sales approach, businesses can not only improve their sales performance and reduce costs but also increase revenue in the long run, ensuring sustainable growth and success.  

 

 

The Role of Sales Leaders in Lean Selling 

Sales leaders are pivotal in embedding lean principles into the sales process and shaping a culture of continuous improvement within their organizations. Their leadership is essential for driving the adoption of lean thinking, which goes beyond simply cutting costs—it’s about maximizing customer value and enhancing overall sales performance. By championing lean principles, sales leaders empower their sales teams to focus on high-value activities that directly address customer needs and pain points, while minimizing wasteful steps in the sales cycle. 

Effective sales leaders foster an environment where sales reps are encouraged to take a proactive approach to understanding and solving customer challenges. This involves providing the right tools, support, and training to help sales teams develop a deep understanding of customer preferences and requirements. By leveraging data and insights, sales leaders can guide their teams to make informed decisions that improve the sales process and drive business growth. 

Moreover, sales leaders play a critical role in aligning the sales strategy with lean principles, ensuring that every stage of the sales process is designed to deliver value and enhance customer satisfaction. By continuously evaluating and refining sales processes, they help their organizations stay agile, responsive, and competitive in a rapidly changing market. Ultimately, the commitment of sales leaders to lean thinking is key to achieving sustainable improvements in sales performance and long-term business success. 

 

Managing the Sales Pipeline with Lean Principles 

Applying lean principles to the sales pipeline transforms the way sales teams manage opportunities and engage with customers. By systematically identifying and eliminating wasteful activities—such as redundant data entry, unnecessary movement of sales data, and time-consuming administrative tasks—sales teams can streamline their sales processes and focus on what truly matters: delivering value to the customer. 

A lean sales pipeline prioritizes high-value interactions, enabling sales reps to personalize their approach and provide critical information that supports customer buying decisions. This focus on the value stream ensures that every step in the sales funnel is purposeful and aligned with customer needs, leading to more effective sales efforts and improved overall sales performance. 

Continuous monitoring and analysis of sales data are essential for identifying bottlenecks and areas for improvement within the sales pipeline. By working closely with the marketing team, sales leaders can ensure that sales and marketing efforts are aligned, maximizing the effectiveness of lead generation and nurturing activities. This collaborative, data-driven approach not only enhances customer loyalty but also drives sustainable growth for the business. 

By adopting lean sales pipeline management, companies can significantly improve their sales performance, reduce wasted time and resources, and create a more agile, customer-focused sales organization. 

 

Identifying Key Stakeholders in the Lean Sales Process 

A successful lean sales process begins with accurately identifying key stakeholders involved in the customer’s buying process. Sales reps must go beyond surface-level contacts to understand the full decision-making unit, including influencers, decision-makers, and end users. This deep understanding allows sales teams to personalize interactions, address specific pain points, and deliver valuable insights tailored to each stakeholder’s unique concerns. 

By taking a customer-centric approach, sales teams can build trust and credibility with key stakeholders, supporting them throughout the buying process with relevant information and solutions. Sales leaders play a vital role in ensuring their teams are equipped to engage effectively with all stakeholders, fostering a culture of research, empathy, and strategic communication. 

Understanding the customer’s business environment, goals, and market dynamics enables sales reps to provide tailored recommendations that enhance customer satisfaction and drive long-term success. Engaging key stakeholders early and often in the sales process not only increases the effectiveness of lean selling principles but also helps businesses achieve their objectives by aligning solutions with real customer needs. 

 

Achieving Long-Term Success with Lean Selling 

Long-term success with lean selling is built on a foundation of continuous improvement and a systematic approach to optimizing the sales process. Sales leaders must cultivate a culture of lean thinking, where sales reps are encouraged to regularly assess and refine their sales strategies to better meet evolving customer needs and deliver high-value interactions. 

Leveraging tools such as CPQ software enables businesses to streamline complex product configuration, pricing, and quoting processes, reducing wasteful activities and enhancing the overall customer experience. By focusing on minimizing waste and proactively addressing customer pain points, sales teams can provide valuable insights and support throughout the buying process. 

A commitment to continuous improvement ensures that the sales process remains agile and responsive, allowing companies to significantly improve sales performance and drive business growth. By prioritizing customer satisfaction and aligning every aspect of the sales strategy with lean principles, businesses can build lasting relationships with their customers and achieve sustainable, long-term success. 

Ultimately, lean selling is not a one-time initiative but an ongoing journey that requires dedication, adaptability, and a relentless focus on delivering value at every stage of the sales process. By embracing this mindset, companies can position themselves for continued growth and leadership in their markets. 

 

Five Principles of Lean Selling 

Oskar Olofsson, a consultant with World Class Manufacturing, identifies five principles that characterize lean selling.  

1- Identify what constitutes value from the customer perspective.  

2- Understand your sales process by mapping it out step by step.  

3- Identify and mitigate any constraint or choke points in the process.  

4- Embrace a demand flow or demand-driven manufacturing process.  

5- Minimize and eliminate waste wherever possible.  

Lean doesn’t replace CRM or CPQ or any specific sales tools that you might be using. Lean makes those tools work more efficiently to better serve your customer and your sales rep.  

Lean selling, like all lean processes, starts with eliminating waste. Get rid of the unnecessary, ditch the stuff that serves no purpose and forget about everything that doesn’t enhance the value of what you are providing to the prospect or customer.  

 

FAQs  

1- How to sell lean?

Lean selling focuses on maximizing value for customers while minimizing waste. To sell lean, businesses should streamline sales processes, eliminate inefficiencies, and leverage data-driven decision-making. It involves understanding customer needs, reducing unnecessary steps in the sales cycle, and continuously improving sales strategies.  

 

2- How do you sell lean?

Selling lean requires a structured approach that prioritizes efficiency. This includes automating repetitive tasks, reducing bottlenecks in the sales funnel, and focusing on customer-centric solutions. By leveraging technology and agile methodologies, businesses can shorten sales cycles and improve conversion rates.  

 

3- What is selling lean?

Selling lean refers to a sales methodology that aligns with lean principles, emphasizing value delivery, process optimization, and waste reduction. It ensures that every action in the sales process contributes to customer satisfaction and business growth.  

 

4- What is the definition of lean selling?

Lean selling is a strategic approach that eliminates non-essential activities in the sales process to enhance efficiency and effectiveness. It focuses on delivering the highest value to customers while reducing time and resource wastage.  

 

5- What does lean sales mean?

Lean sales are the application of lean principles to the sales process, ensuring that efforts are streamlined to focus only on activities that generate value. It eliminates redundancies, enhances customer engagement, and improves overall sales performance.  

 

6- What is the lean sales process?

The lean sales process is a structured framework designed to enhance sales efficiency. It involves identifying customer pain points, simplifying workflows, leveraging automation, and continuously optimizing sales strategies. By eliminating unnecessary steps and focusing on high-value interactions, businesses can improve their sales outcomes.