Any change in your account’s business performance or an unexpected market shift may signal a new selling opportunity. So how do you stay current on the latest challenges faced by your customer’s executives? Review transcripts from the company’s quarterly earnings calls. All it takes is three easy steps.
Step 1: Find your customer’s transcripts
Many companies make transcripts available on their Web sites. Also check third-party sites such as http://www.earnings.com. Be sure to also sign up for e-mail alerts so you’ll know when new transcripts become available.
Step 2: Start with the analyst ‘Question and Answer’ section
You’ll find the Question and Answer section at the end of the transcript. It’s the part of the call where the analysts who follow your customer year-round grill executives about underperformance or results that didn’t meet expectations.
Not only will you identify selling opportunities, you’ll also strengthen your credibility with your target executive by demonstrating your timely knowledge of the account and aligning your value to his or her most pressing priorities.
Three examples
Analyst to Starbucks: “Last year, you talked at the analyst meeting about a 20% top line and 20% to 25% bottom growth rate for three to five years, and now you’re talking about 18% top line and 20% to 22%. Is this a permanent slowdown in the growth rate of your business … or just the recognition that there are some temporary pressures both on the top and bottom line and we might resume that 20% to 25% in the future?”
Your take-away: Insight for a conversation about revenue. For example: “Our solutions help retailers drive revenue by capturing new customer segments, increasing average transaction size and increasing repeat customers…”
Analyst to Qwest: “A couple of quick follow ups on the margins. The $24 million in facility cost reduction, I’m wondering how repeatable that is on a quarter-over-quarter basis. Looking at the cost of sales line item, it was roughly flat on a sequential basis.”
Your take-away: The basis of a conversation on gross margin. For example: “Our solutions help service providers improve margins through improving product/service mix, helping maintain price points and generating new, high-margin service revenue…”
Analyst to MasterCard: “Should we continue to see $25-30 million sequential increases in G&A, and I mean beyond this year, or are you in a building process that runs through the end of this year and then we should see more modest G&A growth?”
Your take-away: Rich background for a conversation on operating costs. For example: “Our solutions help lower operating costs by reducing G&A expenses and reducing depreciation costs through asset reductions…”
Step 3: Scan the executive’s prepared comments
Each key executive will offer a take on the quarter’s performance, following the opening disclaimer. Compare the current period to historical performance and identify trends you can leverage.
- What is the forecast for growth?
- What reasons do they cite if the forecast is not good?
- What initiatives are highlighted as part of their strategic plan?
Also look at solutions you have already sold them. How can they be applied to underperforming areas? What other steps would you propose?
Whether you’re a manager looking for quick ways to boost your team’s CXO relevancy or a busy account exec looking for effective shortcuts, use quarterly transcripts and you’ll stay on top of new selling opportunities.
