| It is the age old question. Is there a secret sauce | | | | trust and loyalty. If a farmer was given 100 |
| that all great salespeople have, or are successful | | | | prospects, they would naturally try to develop |
| hunters different from successful farmers? Over | | | | long term relationships with most of them. |
| the past couple of years it has become clear (at | | | | Organizing Your Sales Force into Hunting and |
| least in my head) that there are two distinct | | | | Farming |
| types of salespeople: hunters and farmers. I | | | | Growing revenue is always a priority in business, |
| decided to write this article because I have had | | | | so hunters are always needed when the business |
| several discussions over the past two months | | | | is small and growing. As the business starts to |
| with salespeople who want to know whether | | | | grow and you see potential for profitable long |
| they are a hunter or a farmer, and with sales | | | | term relationships with current customers, you will |
| executives that want to know how to organize | | | | need to add farmers to your mix. The most |
| their sales force based on the two distinct types | | | | common mistake I see business make is to under |
| of salespeople. As always, I would love your | | | | invest in their farmers. This is primarily because |
| opinions on hunters vs. farmers, and what your | | | | by the time you need farmers your sales force is |
| company's sales force looks like! | | | | filled with hunters that don't value farming. Take |
| Let me first articulate what I mean by hunters | | | | great care to check your hunters and invest in a |
| (Ex. "New Business Development Executive") and | | | | farming unit. The type of farming unit you need |
| farmers (Ex. "Account Manager"). Hunters largely | | | | will depend on several factors: size of client (gross |
| work at the beginning of the sales funnel, both | | | | revenue), complexity of client's business, |
| prospecting and qualifying sales opportunities. They | | | | importance of your products/services to client's |
| generally will find a solution to a qualified prospect's | | | | business, complexity of your product/service |
| expressed need and work to take the | | | | portfolio, and of course revenue potential. As |
| opportunity to closure, but are not responsible for | | | | those criteria grow, there is the opportunity for |
| post-sales activities. Farmers largely work at the | | | | more investment in an elite farming group. |
| back end of the funnel, and are responsible for | | | | Farming units vary from cheap inside sales reps, |
| servicing existing customers and identifying/closing | | | | to expensive Strategic Account Managers. |
| new sales opportunities with their assigned | | | | The investment in splitting your sales force into |
| accounts. | | | | hunters (New Business Development) and farmers |
| Differences Between Hunters and Farmers: | | | | (Account Management) is large. You will need |
| One of the shocking things that I learned when | | | | additional management layers, dedicated sales |
| getting to understand what makes great hunters | | | | operations and enablement personnel, and other |
| farmers was that many of the major | | | | support roles. You should always run the numbers |
| competencies that make someone successful at | | | | to make sure that each NBD and AM unit is |
| one type of sales role actually work against them | | | | profitable and can support itself. Sales should |
| in another! If you have been engaged in this | | | | always be a revenue center. |
| debate or are wondering if you are a better | | | | Weaknesses of Implementing the Hunter/Farmer |
| hunter/ farmer, here are some key differences | | | | Model |
| between the two types of sales roles. | | | | One of the things that I have come to believe in |
| Emotional Resilience vs. Emotional Intelligence: | | | | my time studying and working with businesses is |
| Hunters must be emotionally resilient to deal with | | | | that every management model has its |
| the high levels of daily rejection that come with | | | | weaknesses. Splitting up your sales department |
| prospecting (ex cold calling); they have to bounce | | | | into hunter and farmer departments is no |
| back in a matter of seconds from rejection and | | | | exception. Here are two problems that I have |
| reach out to another potential prospect. Because | | | | seen businesses encounter and how to overcome |
| hunters spend a lot of time prospecting, this is a | | | | them: |
| key aspect to their success. On the other hand, | | | | First, companies think Account Management |
| farmers must be emotionally in-tune with their | | | | (farming) is the same as customer service....IT IS |
| account team and the customer team. After all, | | | | NOT. Certainly customer service is a large |
| customer satisfaction is an emotional feeling and | | | | component of account management, but the |
| farmers must be adept at sensing that. | | | | primary focus of Account Management is to grow |
| Hunt vs. Fulfillment: Hunters are driven by the rush | | | | long term revenue......which should be reflected in |
| of the hunt (go figure!), and the thrill of the "kill". | | | | their incentive plans. I find too often that Account |
| Given how exciting that rush is, everyday details | | | | Managers do not work on any form of |
| can seem pretty boring. Because the primary | | | | commission, and therefore don't seek out new |
| duty of a hunter is to hunt, this works out well. In | | | | sales opportunities. If you don't incentivize your |
| contrast, good farmers like to get their hands | | | | farmers to grow the business, you will get a |
| dirty with the details, and consider themselves | | | | reactive group of folks who don't grow your |
| solid and dependable. This caters well to fulfillment | | | | most fertile customers. Keep in mind that it costs |
| duties, which are vital to managing an account. | | | | 8-10 times as much to sell to a new customer |
| Independence vs. Team: Hunters are | | | | than to an existing one, so your farming unit |
| self-motivators and work very well independently. | | | | should have a great expense to revenue ratio. |
| They sometimes even have a disdain for | | | | The strongest objection to the separation of a |
| marketing or sales operations folks that try to | | | | sales force into hunters (new business |
| work with them, and often don't like team work. | | | | development) and farmers (Account |
| This is a vital characteristic because hunters work | | | | Management) is that it makes for an awkward |
| primarily by themselves during the prospecting | | | | transition for the customer after they have |
| and qualifying phases and have to be highly | | | | signed on the dotted line. This is a VERY valid |
| self-motivated. They rarely get help in their jobs | | | | point. After all, the customer has purchased from |
| unless an opportunity has passed the qualification | | | | you because they have had a great experience |
| phase. By contract, farmers are team players and | | | | with your hunter and might perceive a transition |
| collaborators. They work closely with their | | | | as a bait and switch. It is important to get your |
| account management team and the client, often | | | | Account Managers involved with sales |
| framing business challenges and creating solutions | | | | opportunities as early as the proposal writing |
| alongside their client. | | | | process and as late as the final presentations. |
| Qualifying vs. Nurturing: The best business | | | | You should also develop a value proposition for |
| development people out there are superior | | | | your customer's transition to the Account |
| qualifiers. Hunters can be given 100 accounts and | | | | Manager during the proposal/presentation process. |
| very quickly tell which five are worth pursuing. In | | | | You need to ask for your new client's approval to |
| business development, it is essential that hunters | | | | transition to the new Account Manager, and you |
| spend their time on prospects that might close or | | | | should only fully transition them when the clients |
| else they are wasting their time. This is the | | | | feel comfortable. This part does require a lot of |
| biggest barrier to a hunter's productivity, so the | | | | "managing", but is well worth the price to put your |
| ability to qualify quickly and accurately is crucial. In | | | | employees in roles that align with their |
| contract, farmers are great nurturers. They look | | | | competencies and put your customers in good |
| at relationships from a long term perspective and | | | | long term hands. |
| are interested in getting to know their clients on a | | | | As always, I would love to hear what you think |
| multitude of dimensions. In account management, | | | | of the hunter/farmer model, and what your sales |
| it is essential that salespeople develop thick long | | | | force looks like! |
| term bonds with their customers to promote | | | | |