aQuity

Introducing the 4×4 Matrix – Are you a struggling sales person? A frustrated business owner or maybe a disappointed Sales Leader?

Do you want to grow your business, make more sales, avoid wasted selling time, succeed in B2B engagements and inspire confidence in your target Client base? Then listen up! 50 years of experience in the B2B trenches has provided the framework for success!

What is the 4 x 4 Matrix?

The 4×4 Matrix is the backbone of the aQuity Opportunity Management Methodology, being the methodology that we recommend as part of your Sales Strategy. It provides a structured and easily understood process to manage all your B2B Opportunities. It is termed the 4×4 Matrix because it consists of 4 Dimensions, each with 4 Elements. Let’s review these in turn and then at the end summarise the complete Matrix. It isn’t complicated because it observes the rule of First Principles – going back to basics and applying some logic.

Dimension 1

Imagine that you have uncovered new opportunity. What should be on the forefront of your mind? In every engagement, whether new or existing, there should always be four questions that the astute professional will strive to answer. The responses will serve as the backbone of the professional’s approach. Let’s review the first dimension of the 4×4 Matrix. This 1st Dimension consists of four simple questions or elements like the 3 remaining Dimension. Hence the name 4×4 Matrix. The 1st Dimension poses the four logical questions:

1. Should they buy?
2. Can they buy?
3. Will they buy?
4. Will they buy from me?

Can it get any simpler? These four questions and their responses naturally determine the progress through the Stages of the Sales Cycle.

Dimension 2

Of course, the Client is also at a fundamental level, processing four similar questions. The timeline of these questions won’t necessarily coincide with those in the 1st Dimension. However, the astute professional should frequently reverse roles to understand where the Client is at and the progress through the Stages of the Buying Cycle. Meaning that the professional should frequently adopt the role of the contacts in the buying organisation. This assumes that the salesperson can put themselves in the shoes of the aspirant buyer. This is the second dimension of the 4×4 Matrix. In a sense, it is to move to the other side of the desk and ask the questions:

1. Should we buy?
2. Can we buy?
3. Will we buy?
4. Who will we buy from?

Simple. These first two dimensions of the 4×4 Matrix already serve as significant qualifiers. You should review The Dimensions of the 4×4 Matrix with the initial contact regularly, during the engagement. It behoves all entrepreneurs and focussed sales people to observe these two dimensions. Ignorance of the frank analysis that either of the first two dimension provides, demotes all your efforts to that of amateur status. In addition, they also serve as a validation mechanism for the Sales Leader, when reviewing the Status of an Opportunity. These dimensions clearly serve to guide the members of the sales team.

Differentiation

The significance of the first two dimensions is that it largely determines the engagement approach. It obviates the tendency to follow the ‘classical sales’ approach of promoting the products and services on the price list. This approach serves to focus all your attention and efforts on what matters to the Client, thereby establishing a vastly different level of rapport to ‘classical sales’. We have found that this approach aids in 11 key areas, by:

• Focussing on that which is foremost on the buyer’s mind – the desired outcome.
• Establishing a results based relationship.
• Promoting your perceived status of seller to that of ‘consultant’ and in time to that of a trusted advisor.
• Elevating your status above that of the typical competition.
• Enabling you to gradually take control of the Buying Cycle, through mutual and purposeful intent by focussing on the outcome.
• Promoting your access to others in the organisation, by displaying your intent.
• Creating the opportunity for alternative solutions.
• Providing you with the opportunity to delve beyond the symptoms of the Client’s issue and uncover the cause.
• Serving as a catalyst for you to develop a unique value.
• Uncovering the budgetary constraints and authority levels.
• Most importantly, this approach aids in developing the perceived value of your solution.

Result

This all results in a far more risk free approach to that which we have observed in frequent engagements. It helps you to qualify early, avoid wasted effort and it establishes credibility. Competitive cavalier efforts are often eliminated.

Progressing the Sales Cycle against the Buying Cycle is a direct function of the Client’s acknowledgement of your professional value that you have added to the engagement. This in turn shifts the power in the engagement from the buyer to you, thereby allowing you to take control of the Buying Cycle and align it to the Sales Cycle. Jim Holden explains this concept very ably: Recognition + Value = Power. And Power promotes Control.

Dimension 3

Let’s discuss Dimension 3. This all about determining who is who in the engagement zoo. There are always a minimum of four participants in any engagement. Three of these are obvious – the Client, the Selling organisation and the sales person. What about the Source of the requirement? The person or department in the Client that needs a solution? You must identify this entity or person. Mine it for information and your efforts should be to convince him/her of the viability and efficacy of your solution.

However, your efforts may fall short if you haven’t identified and convinced the prime person that matters in the equation. The fourth participant of most engagements – the Champion. You are almost guaranteed to succeed, if the Champion is also an amenable Source. But, who is the Champion? She is often not the Source. She is frequently consulted on important decisions. Her influence reaches upper management and the board room. She is the trusted advisor inside the Client. Frequently the Source of the requirement does not have the necessary influence or authority. The Champion then becomes the essential target in your efforts.

The Detractor

However, let’s discuss the alter-ego of the Champion. The Champion can also be the Detractor. This is someone who is actively promoting an alternate solution to yours, despite your efforts with the Source. Without the Champion supporting your cause and despite all the merits of your solution, you will almost always fail. The Champion could be a senior executive or a member of middle management or merely occupy an advisory or oversight role.

You must identify the Champion and prove your value. The Champion has two key characteristics. They will always decide what is best for their organisation, while also opting for that which is best for their own fortunes. The Champion will almost always be consulted before important decisions are made. During the Discovery process it is vital that you identify the Champion and that your value is acknowledged by him. In summary, the four components of the third Dimension are:

1. The Client
2. The Champion
3. The Selling organisation
4. The Sales Team

If you are not getting traction or occupancy with the Champion, your value is not being recognised and you should rethink your strategy and approach.

Dimension 4

The final component of the 4×4 Matrix almost completes the aQuity methodology. In conjunction with the previous three Dimensions it is about reliably determining a key component – the Status of an Opportunity. We have observed the unreliable practice of applying arbitrary percentages to a Sales Funnel. The input to the Sales Funnel is often based on guesswork and wishful thinking and frequently contains the entire Pipeline. Then this weird mixture of untested Opportunities is used as the basis for reporting on the likelihood of future business value. How much gut feel has been assigned to this? And then by some divine intervention the Sales Forecasts is composed. The credibility of such projections and that of the Sales Leader are consequently often found wanting.

Our experience rather promotes a more scientific based classification, providing a higher degree of certainty and reporting credibility. Dimension 4 contains four progressive Statuses of an Opportunity. The components being:

1. Lead
2. Suspect
3. Prospect
4. Forecastable Prospect

Marketing and Prospecting efforts typically produce lists of names, which have not yet been qualified. There has been a limited engagement with these names and much is unknown. We call these ‘Named Opportunities’, which do not ever feature as an Opportunity worthy of a Status classification. Converting an Opportunity into Client becomes the final Status and is of course the objective.

The process to progress through the Statuses should be governed by a strict qualification mechanism to provide credibility to the outcome and the projections. The aQuity Methodology provides 30 of these QQ’s (Qualifying Questions), which have been tested in a myriad of Opportunities.

Why does the 4×4 Matrix work?

The 4×4 Matrix has been tried and tested over countless engagements and forms the basis of the aQuity Methodology. It is the combination of experiential and qualitative knowledge, resulting in a quantitive probability of success. The alternative to a 80-90% certainty is the current industry average success rate of below 20%. The application of reliable knowledge in a structured approach will always promote a more reliable outcome. Hope and guesswork are the foundations of failure besides being a waste of time, effort and resources. The processes contained in the aQuity Methodology will within a short timeframe provide confidence in the  sales outlook and over time also promote confidence in the process itself. Success breeds success, and with the application of the principles described, will empower the practitioner to develop confidence and purpose in her engagements.

We invite frustrated entrepreneurs, struggling sales people and disappointed Sales Leaders to review a more in depth explanation of this unique approach, here.

Outcome of the 4×4 Matrix

Our experience is that some of the advantages and even some benefits provided by 4×4 Matrix framework are:

• It provides reality as opposed to guesswork and wishful thinking
• It serves as a guide and roadmap during an engagement
• It avoids the uncertainties in the Sales Forecast in favour of credibility and accuracy
• It provides a clear delineation and separation between the contents of the Sales Pipeline and that of the Sales Forecast
• It serves as a common basis for a mutually understood terminology
• It contributes as a catalyst for critical thinking
• It promotes the development of professional engagement practices
• It is a credible mechanism to neutralise the competition
• It is a practical and mature mechanism for the acquisition and retention of quality Clients
• It avoids wasted effort, wasted valuable selling time and needless resource allocation
• It focusses your efforts on real Opportunities – doing what matters
• It frequently serves to identify potential opportunities for diversification and innovation
• Above all, it increases your and your organisation’s confidence in the engagement process

Why opt for the 4×4 Matrix?

We are the first to admit that pat formulae don’t necessarily allow for the vagaries of unexpected events, misjudgments and changing circumstances. These tend to be outliers. Clients want to solve issues, get ahead and grow their businesses. They will listen to and engage with people who can address their challenges, which they don’t have the time or acumen to resolve themselves. They need help and you need the business! The only barrier to bridge this gap is to differentiate your efforts in support of their desired outcome. That is why B2B Engagements matter.

Most sales people view the plea for help as an opportunity to sell what is available on their price list. The astute professional considers it an opportunity to provide an enduring solution and a continual business flow. The aQuity Methodology supports this quest. Please find further detail here: 4 x 4 Matrix.

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