Sales Prospecting and Discovery

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Questions and Answers

What is the first step to determine if there is a good fit for a prospective merchant?

Researching the prospective merchant (correct)

Meeting the merchant in person

Reviewing customer feedback about Shopify

Analyzing sales patterns in the market

Which of the following is NOT a reason to understand a prospective merchant's revenue?

It determines their customer service level (correct)

It indicates potential growth opportunities

It assists in placing them in the right band

It helps avoid over or under quoting later

Which market segment typically includes larger businesses?

Large Accounts (correct)

Small Accounts

Micro Accounts

Mid-Market

What is the primary goal during the early discovery process with a prospect?

To identify pain points and opportunities Signup and view all the answers

Which indicator suggests a strong prospect for Shopify?

Experiencing barriers to growth Signup and view all the answers

Why is it important to dig into a merchant's specific business needs during discovery?

To understand their workflows and gather examples Signup and view all the answers

Which option does NOT help gauge the probability of a merchant adopting Shopify?

Analyzing competitive pricing Signup and view all the answers

What is the most effective approach when pitching Shopify to a prospect?

Ask questions to understand the prospect's challenges and priorities. Signup and view all the answers

During the discovery process, what type of questions should be prioritized?

Questions based on the specific context of the prospect's business. Signup and view all the answers

How can a good discovery process benefit the sales process?

By confirming merchant fit and aiding product positioning Signup and view all the answers

What should be avoided when discussing competitors with a prospective merchant?

Disparaging other solutions to make Shopify look better. Signup and view all the answers

Which strategy can enhance credibility during discussions with prospects?

Using stats and metrics during the conversation. Signup and view all the answers

What is a key characteristic of Shopify's competitive strategy?

Highlighting how Shopify resolves specific pain points. Signup and view all the answers

In the context of competitor analysis, what should sales representatives focus on?

Understanding the competitive landscape and its tradeoffs. Signup and view all the answers

What is a potential objection that may arise in conversations with prospects?

They are satisfied with their current solution. Signup and view all the answers

What is the role of asking questions during the discovery phase?

To collect detailed insights into the prospect's business needs. Signup and view all the answers

Study Notes

Determining Merchant Fit

Shopify offers a lot, but determining a good fit requires research.
Research the prospective merchant thoroughly, using publicly available information (website, social media, news, third-party tools).
Learn about the merchant's product, brand, and revenue.
Assess the merchant's likelihood of adopting Shopify by evaluating their financials to determine the appropriate sales band (avoid over/under quoting).

Indicators of Good Merchant Fit

Goals: Assess executive alignment on revenue or growth goals.
Executive Alignment: Ensure relevant decision-makers are involved in meetings and have access to the account.
Evaluation Process: Is there a defined evaluation process for merchant requirements and competitor analysis?
Resources: Determine who will be migrating or building (in-house or a partner?).
Opportunity for Unified Commerce: Does the merchant require a mix of B2B, B2C, and/or retail solutions?

Sales Market Segments

Merchants are segmented based on size (Mid-Market).
Common business priorities and challenges may differ based on segment size, but some priorities remain constant throughout a merchant's business growth.

Varying Account Sizes

$2-25M in Online Revenue: Evaluation timeline of 3-6 months
Focus on increasing revenue, reducing costs, and expanding internationally, considering rising customer acquisition costs and return on ad spend (ROAS).
$25-125M in Online Revenue: Evaluation timeline of 3-6 months. Focus on increasing revenue, reducing costs, expanding internationally, and utilizing unified commerce opportunities (B2B, B2C, retail).
Over $125M in Online Revenue: Evaluation timeline of 6-9 months (potentially faster with Shopify). Focus on increasing revenue, reducing costs, expanding internationally, leveraging unified commerce opportunities, improving capabilities and growth.

Discovery Process

Conduct early merchant discovery to identify pain points, uncover opportunities, and get a clear picture of the prospective merchant's challenges and priorities.
Research the prospective merchant before the initial conversation to set the stage for effective communication.
Transition from vague general discussions to specific business needs and workflows. Use case studies to gain insight.

Key Questions for Discovery

How quickly is the business growing?
What digital tools are currently used to improve business performance?
Can the business accurately scale with its current infrastructure?

Customer Acquisition

How are new customers being targeted?
Which channels are being employed?

Checkout

How is the current checkout process driving conversions?

Automation

How much of the workflow depends on repetitive or manual tasks?

Unified Commerce

Which channels are currently being utilized?
How is inventory managed across different channels?

Retail

Strategies for driving in-store customers online.
Strategies for providing consistent customer experiences in-store and online.

Competition

Consider competition to understand Shopify's positioning and value.

Common Merchant Objections

Mid-Market: "Is it worth it?" Concerns about migration costs and bandwidth, SEO, loss of existing infrastructure.
Large Account: "Can you handle us?" Concerns about timing and replatforming, concerns about complexity of the platform.
Enterprise: "Can you meet our needs?" Concerns about risk aversion, platform misconceptions, internal politics.
Objectives surfaced in discovery conversations can be used to inform and tailor the pitch.

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Description

This quiz focuses on the critical aspects of determining a good merchant fit for Shopify. It covers the research methods needed, indicators of a suitable merchant, and the evaluation process involving executive alignment and resources. Test your understanding of how to assess merchants effectively.