In our HBR article,¹ we suggested that the Chief Sales Officer annually evaluate and, as appropriate, redesign the sales organization structure to ensure that it supports the company's strategic goals. Often, this involves finding the right balance between generalist and specialist sales roles. We believe a common mistake is to jump to the conclusion that what is needed is a hunter/farmer sales model. At a recent conference,² we described what we believe is wrong with this model and the alternative approaches that may be more appropriate to consider when sales specialization is required. The purpose of this Short is to summarize key points from that presentation.
SHORTCOMINGS
Aside from the fact that the Hunter/Farmer model does not portray a very favorable mental image to customers (i.e., who wants to think of themselves as either being hunted or farmed), we find it has the following serious shortcomings:
- Rests on the assumption that the business of selling to new customers is transactional rather than consultative; hence, it is easy to "hand it off":
- Assumes that the skills required for the hunter and farmer business development roles are fundamentally different
- Assumes that there is more business to be had from new than existing customers - not always the case
- Trivializes the cost of the hand off from hunter to farmer
- Disregards that the hunter may leave a fair number of "loose ends" since they don't have to deal with the consequences of on-going customer relationship
¹ Jerome A. Colletti and Mary S. Fiss, The Ultimately Accountable Job: Leading Today's Sales Organization, Harvard Business Review, July-August, 2008
² The Future of Sales Organizations, Jerome A. Colletti and Richard Ruff, PhD., 11th Annual Sales Symposium, Ohio University, April 17, 2008
WHAT'S AN ALTERNATIVE SOLUTION?
Sales specialization defines how a company chooses to focus its sales roles to do business with customers. The trend toward specialization can be attributed to a combination of factors: revenue growth, product line expansion, and mergers that aren't followed with careful product line rationalization. Too often and without the benefit of in-depth analysis, we have seen companies jump to the conclusion that a hunter/farmer model will provide the solution to the need for sales specialization.
There are four basic models of sales coverage from which to choose: 1) Sales generalist; 2) Market sales specialist; 3) Product sales specialist; and, 4) Activity specialist. Many companies, because they operate in several markets and offer broad product portfolios, use two or more of these models to go to market. Interestingly, the hunter/farmer model is a hybrid sales specialist model - it focuses on a subset of total sales activity for a defined set of accounts (customers or prospects) - for all or a sub-set of products.
Below is a table that illustrates how a company's objectives impact the decision about which specialization is required (as an alternative to a hunter/farmer model):
| Objective |
Sales Model |
| Win more new accounts |
BD Specialist |
| Protect business with key customers; expand sales through existing or new product sales |
Retention/Upsell Specialist |
| Launch and sell new product successfully while retaining existing product sales |
Product Sales Specialist; dedicated to selling new products while other sales reps focus on current business |
| Provide one stop shopping for customers |
Account manager + product or activity sales specialist |
|
