Complex Sales

What are Complex Sales?

The complexity comes down to three key areas:

1. The product:
   • It's technically or intellectually complex.
   • It requires a certain level of knowledge from buyers to understand it.
   • The customer takes on some risk by adopting it.
   • Examples: Industrial Internet of Things (IIoT), low-code platforms, advanced manufacturing technologies, corporate insurance systems, intellectual property law, and high-level consulting services.
2. The customer:
   • They are typically large or medium-sized companies.
   • Many different stakeholders are involved, and their connections aren't always clear.
   • The way they make decisions is often complicated and not very transparent.
   • The people involved may have conflicting interests.
3. The interaction:
   • The sales cycle is long (from six months to several years).
   • The deal value is high (often in the hundred thousands).
   • It requires thorough and sustained work with the client.
   • Every client is highly valuable because there's a limited number of potential customers.
   • Many people from both the seller's and the buyer's side are involved in negotiations.

You can use the following test to see if your sales are complex. If most of these points sound familiar, your sales likely fall into this category:

• You sell a complex product.
• Your sales cycle is long (six months or more).
• Many people from both sides are involved in the process.
• The deal value is high.
• Each client is extremely valuable because your potential customer base is small.

In these types of sales, salespeople need special skills and knowledge to explain the intricate technical details of their products and to guide buyers through a complicated decision-making process.

How Do Complex Sales Differ from Simple Sales?

The main difference between simple (or transactional) sales and complex sales is how you work with clients and how your business processes are organized.

Based on the experience of leading companies, trying to mix simple and complex sales within the same business is usually a bad idea. Large companies often separate these, for example:

• Tool manufacturers create separate product lines for everyday consumers (simple sales) and for professional use (complex sales).
• Car companies have different brands for the mass market and the premium segment.
• In IT, cloud providers might create separate brands specifically for simple, transactional sales.

Attempting to combine these approaches often leads to lower efficiency. Complex sales can get dragged down into a transactional model, which hurts the business's margins and profitability.

In Which Industries Are Complex Sales Common?

Complex sales are used in many industries where sophisticated products or services are sold. Key areas include:

• IT: Industrial Internet of Things, low-code platforms.
• Manufacturing: Implementing advanced production technologies.
• Insurance: Corporate insurance policies for large clients.
• Legal services: Areas like intellectual property law.
• Consulting services.

In each of these fields, sales require a deep understanding of the product, a long decision-making cycle, and high-value contracts.

How to Organize the Complex Sales Process