During my 18 years in Sales Leadership at Oracle Corporation, it seemed to me that the business oscillated between “generalists” - Reps who sold all products - and “specialists” - Reps who sold just one, often deploying both at the same time. “Overlay” in Oracle parlance, horrible term!
In the latter part of my career, I came to understand that, if a business has critical mass and can afford it, then having both can be beneficial.
One thing I learnt during my time as CEO of AMT-Sybex Ltd is that having a Rep own existing accounts and hunting for new logos doesn’t work (usually). Selling to existing accounts can be easier than winning new logos so Reps will target the base first and not prospect for new logos if they can avoid it, especially if the sales compensation plan is not constructed correctly (see Compensation Drives Behaviour elsewhere in this blog).
In this article we’ll look at the Pros and Cons of Hunters vs Farmers. While both play pivotal roles in the sales ecosystem, understanding their unique characteristics and weighing these pros and cons is essential to formulate a balanced and effective sales strategy.
Hunters: The Pioneers of Acquisition
Pros - Customer Acquisition: Hunters are skilled at creating and pursuing new sales leads. They thrive on seeking out potential customers, making initial contacts, and sparking interest in your product. They qualify quickly, and hard, moving on to the next one if there’s no opportunity. They can be thick-skinned and not demotivated by rejection - it’s a numbers game, remember! This proactive approach is crucial for expanding the customer base.
Relatively High Sales Volumes: The relentless energy and drive of a Hunter often leads to quicker sales closures, resulting in faster revenue generation for your business.
Versatility: Hunters are typically versatile and adaptable, able to navigate diverse market segments and industries. This agility enables them to capitalise on emerging trends and market shifts effectively. They tend to embrace change and thrive on challenges.
Cons - Limited Relationship Building: The emphasis on new logo acquisition can sometimes lead to a lack of focus on building strong, long-term relationships with customers. This may result in missed opportunities for upselling and customer retention. In a SaaS world, you may need to consider having a separate Customer Success team responsible for renewals and upsell. More on this in a later article.
High Turnover: The nature of the hunter's role can be intense, and may lead to higher staff turnover rates as the constant pressure to acquire new customers can be taxing. However, with the right team structures, complans, and Management support, churn can be mitigated.
Farmers: Cultivating Lasting Relationships
Pros - Relationship Building: Farmers excel in cultivating deep, meaningful and long lasting relationships with customers. This encourages loyalty, repeat business, and referrals, all of which are valuable for revenue retention, renewals and to reduce customer churn.
Upselling and Cross-selling: By understanding the customers' long term needs and preferences, Farmers can identify opportunities to upsell or cross-sell additional products or services, contributing to increased revenue and greater customer satisfaction.
Stability and Predictability: Farmers provide a sense of stability as they focus on nurturing existing accounts, providing a predictable revenue stream for your business. A good Farmer will drive up customer satisfaction which will increase the chance of greater revenues.
Cons - Slow(er) Revenue Growth: The focus on relationship building and nurturing existing accounts may result in a slower close rate compared to the more aggressive acquisition-focused strategies of Hunters. On the other hand, it might result in bigger deals.
Market Expansion Challenges: Farmers might find it challenging to explore and penetrate new markets, limiting your growth potential. To take market share in your TAM/SAM/SOM you probably want to consider Hunters, not Farmers.
Striking the Right Balance: A Hybrid Approach
In my experience, the most successful sales teams find a strategic balance between Hunters and Farmers. Recognising that both approaches have their merits, a hybrid approach combines the strengths of both personas to create a well-rounded sales strategy.
Pros of a Hybrid Approach - Comprehensive Sales Coverage: By employing a mix of hunters and farmers, you can cover a wider base of customers, ensuring both acquisition and retention efforts are in play.
Optimised Revenue Growth: The hybrid model optimises revenue growth by focusing on both new customer acquisition and nurturing existing relationships, striking a balance between speed and stability.
Adaptability and Scalability: A hybrid strategy allows for adaptation to varying market conditions and the scalability necessary to fuel sustained growth.
In my experience, understanding the distinctive traits of Hunters and Farmers, and recognising the strengths and limitations of each approach, is key to shaping a successful sales strategy. A balanced, hybrid approach that leverages the best of both worlds can lead to a robust sales ecosystem, driving growth and fostering enduring customer relationships.
If you’d like to know more about this and discuss how to maximise your Sales Force Effectiveness, please contact me
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