Hunting versus Farming Sales Strategies

Hunting versus Farming Sales Strategies

Within the domain of sales, two primary strategies are used: Hunting and Farming. Each strategy requires its own unique approach and focus. Both play a crucial role in a company's revenue generation.

The Hunting Sales Strategy and the Hunter

Hunting, as the name suggests, involves actively seeking out new customers. Hunters are typically aggressive, focused, and have a short-term perspective. They excel in identifying potential leads, initiating contact, and closing deals swiftly. This strategy is particularly effective in industries where customer acquisition is paramount, and the market is vast and untapped. Hunting sales characteristics:

Target Audience: This strategy targets potential customers who have not yet purchased from the company
Approach: The approach is proactive, aggressive, and deal oriented. Salespeople using this strategy are often referred to as ‘hunters’ because they actively seek out and ‘hunt’ for new customers
Key Tactics: The key tactics used in this strategy include cold calling, prospecting, negotiation, and closing deals. These tactics are designed to identify potential customers, initiate contact, and convert them into actual customers
Ideal Environment: This strategy is most effective in high-growth markets with many potential customers. In these markets, there are plenty of opportunities for customer acquisition
Success Metrics: The success of this strategy is typically measured by the number of new customers acquired and the revenue generated from new contracts

The Farming Sales Strategy and the Farmer

On the other hand, Farming is a strategy that focuses on nurturing existing customers to generate repeat business. Farmers are patient, relationship-oriented, and have a long-term perspective. They excel in customer service, account management, and cross-selling or up-selling within the existing customer base. This strategy works best in industries where customer retention, loyalty, and lifetime value are critical. Farming sales characteristics:

Target Audience: This strategy targets existing customers who have already purchased from the company.
Approach: The approach is reactive, relationship-oriented, and service-focused. Salespeople using this strategy are often referred to as ‘farmers’ because they cultivate relationships with existing customers and ‘farm’ for more business opportunities.
Key Tactics: The key tactics used in this strategy include account management, customer service, cross-selling, and up-selling. These tactics are designed to maintain and strengthen relationships with existing customers and maximize their value.
Ideal Environment: This strategy is most effective in mature markets where customer retention value is high. In these markets, maintaining customer loyalty and encouraging repeat purchases are crucial.
Success Metrics: : The success of this strategy is typically measured by the customer retention rate, the repeat purchase rate, and the customer lifetime value.

While both strategies have their merits, the choice between hunting and farming often depends on the company’s goals, the nature of its products or services, and the characteristics of its target market. A balanced sales strategy often involves a mix of both hunting and farming to ensure sustainable growth.

Advantages of Hunting Sales Strategies

Potential for rapid growth: Hunting can lead to a quick increase in customers and revenue, especially in untapped markets.
Competitive advantage: Aggressive hunting can help a company outpace competitors in acquiring new customers.
Flexibility: Hunters can switch targets easily if a prospect doesn’t convert.

Disadvantages of Hunting Sales Strategies

Short-term focus: Hunting is often focused on immediate sales, which may not contribute to long-term customer loyalty.
High cost: The cost of acquiring new customers is typically higher than retaining existing ones.
Unsustainability: Constantly hunting for new customers isn’t always sustainable, especially in saturated markets.

Advantages of Farming Sales Strategies

Customer retention: Farming focuses on nurturing relationships, leading to higher customer retention rates.
Cross-selling and upselling: Existing customers are more likely to buy additional products or more expensive versions of their current products.
Cost-effective: It’s usually cheaper to retain customers than to acquire new ones.

Disadvantages of Farming Sales Strategies

Missed opportunities: Overemphasis on farming can lead to missed opportunities to acquire new customers.
Complacency: There’s a risk of becoming complacent and not seeking to innovate or improve.
Dependence: Over-reliance on a few big customers can be risky if they decide to switch to a competitor.

Balancing Hunting and Farming

An effective sales team usually employs a balanced mix of both strategies, customized to their specific industry and business objectives. The choice between hunting and farming often depends on the company’s goals, the nature of its products or services, and the characteristics of its target market. A balanced sales strategy often involves a mix of both hunting and farming to ensure sustainable growth.

How to Implement Hunting and Farming Strategies?

Implementing a Hunting and/or a Farming strategy effectively in your sales process involves a careful understanding of your business context, customer base, and market dynamics. Here are some general steps you can follow:

UNDERSTAND YOUR MARKET AND CUSTOMER BASE: Analyse your market to understand its size, growth potential, and the characteristics of your potential customers. This will help you determine the balance between hunting and farming strategies.
DEFINE YOUR SALES GOALS: Are you looking to quickly expand your customer base, or are you more focused on nurturing existing relationships and increasing customer lifetime value? Your sales goals will help determine which strategy to prioritize
HIRE/TRAIN YOUR SALES TEAM: Equip your sales team with the skills necessary for both strategies. For hunting, this might include prospecting and negotiation skills. For farming, this could involve training in account management and customer service.
ASSIGN ROLES BASED ON STRENGTHS: Some salespeople might be natural hunters, while others excel at farming. Assign roles based on these strengths for maximum effectiveness.
USE CRM TOOLS: Customer Relationship Management (CRM) tools can help you track interactions with potential and existing customers, making it easier to implement both strategies.
MEASURE AND ADJUST: Regularly measure the success of your sales strategies using relevant metrics (like new customer acquisition for hunting, and customer retention rate for farming). Be prepared to adjust your strategies based on these measurements.

Remember, a balanced sales strategy often involves a mix of both hunting and farming. The choice or mix between the two should align with your company’s goals, the nature of your products or services, and the characteristics of your target market. It’s all about finding the right balance for sustainable growth.

⇒ Can you think of an additional aspect of hunting versus farming sales approaches? Please share.