LEVERAGE CULTURAL KNOWLEDGE FOR SUCCESS IN SALES

It’s conventional wisdom that suppliers must establish value propositions based on objective criteria like quality, price, and service to win customer accounts. These factors, combined with strategic positioning and marketing, are the basis for corporate buying decisions. But companies of all sizes make culture-based decisions that have little to do with any of the above. Here are some examples:

• A Brazilian automotive company that sources parts from a friend of the founder although his company isn’t the lowest-cost provider
  
• An Italian fabric mill that resists purchasing equipment that would automate time-consuming processes and save on labor costs
  
• A Japanese electronics manufacturer that purchases from a longstanding supplier rather than switch, despite problems with quality
  

Cultural factors can lead to unpleasant surprises and lost revenue for companies selling into new markets if they don’t factor culture-based preferences into their approach. Here’s what they should know about the companies from my previous examples:

• The Brazilian company has a strong Network orientation that prioritizes social connections. In Network contexts, doing favors for personal connections gives businesspeople credit they can use when they need help. And in environments with weak or unpredictable legal systems, people have more leverage over friends and family than they would over strangers. The potential cost savings of sourcing from another supplier may not justify the risk of doing business with an unfamiliar company and snubbing a member of the founder’s network.
  
• The Italian company’s Thoroughness orientation derives from its artisan traditions. Longtime employees are perceived as members of the family, and replacing them could damage morale. And customers in industries with Thoroughness tendencies value continuity and reliability. Once they abandon a supplier, they aren’t easy to lure back. Given that the company has built its reputation and customer base on the knowledge and skills of its employees, converting to automated processes might be too great a risk.
  
• The Japanese company operates in a highly Group oriented environment. It participates in a tight-knit system of relationships with its customers and suppliers. Introducing a new supplier that doesn’t work out would disrupt other members of the network, so members vet new prospects carefully. Given the risk and inconvenience, it may be safer to work with an existing supplier on quality improvements than confirm a new one.
  

So how can this kind of cultural knowledge help businesses moving into new markets?
Understanding the cultural tendencies of international customers can help market entrants predict how potential customers will view purchasing decisions and develop culture-based value propositions. My book The Culture Solution explains how to recognize cultural tendencies and offers detailed, specific strategies for selling to companies based on their profiles for eight cultural dimensions. Here are some for the examples above:
When it comes to Network-oriented customers like the Brazilian automotive company, it’s vital to take time to create a personal connection, possibly by working through mutual contacts. By developing a strong relationship over time, a new entrant can level the playing field with local competitors so that their objective value proposition will be more persuasive.
Thoroughness-oriented companies like the Italian fabric mill revere tradition and prefer incremental change over radical moves, so it’s important to promote new processes gradually and to show respect for company history and reputation. A supplier that acknowledges the importance of continuity and focuses on the long term will avoid the appearance of a hard sell and give its customers time to adjust to proposed changes.
Before approaching a Group-oriented customer like the Japanese electronics manufacturer, it’s helpful to establish credibility with other members of the system. Taking time to gather information on customer needs and meeting the requirements of the lengthy vetting process enthusiastically will help convince customers it’s worth the time and effort to confirm a new supplier.
Leveraging cultural knowledge is the quickest way for expanding companies to change their status from new kid on the block to trusted insider.

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