Chet Holmes' pyramid: understand your relationship with the commercial team
The first step to generating more opportunities and leads is to understand all stages of your potential customers' purchasing journey. And, to help you with this task, the Chet Holmes pyramid was developed. With it, you can increase the performance and results of your sales team.
Therefore, today we will explain to you how this happens. Let's go there?
What is Chet Holmes' Pyramid?
First of all, we'll talk a little about who Chet Holmes was. A great strategic consultant, Holmes is among the greatest sales and marketing gurus in the world. To give you an idea, on the Forbes list, he has already led 9 billion-dollar companies.
Furthermore, on the Fortune 500 list, he has been part of more than 60 businesses. Thus, with all his professional experience, he managed to develop over 65 products for sales and marketing training, with more than 50 different methods, which were sold in 23 countries. So, if you don't know him very well yet, find out more about this genius!
One of his main concepts created by him was the Chet Holmes pyramid, which bears his own name. The concept emerged in the author's book “The Ultimate Machine”, which, translated into Portuguese, we can understand as “The Definitive Sales Machine”.
The success of this book was gigantic, becoming a bestseller. It was the best seller in the Amazon Sales and Marketing category and also on the New York Times list.
Imagine putting all your leads and potential customers at Maracanã, for example, and starting to talk about your service or product. How many people would leave and how many would listen to you? According to Chet Holmes' concept, 90% of the audience would get up and go home, 7% would be willing to listen to your solution and only 3% would be willing to buy from you.
This metaphor was used by him in his book, and was named “The Stadium Pitch”. See below the structure of Chet Holmes' pyramid:
In other words, we can summarize the pyramid with the purchasing interests of your audience.
Sales Funnel X Chet Holmes Pyramid
Do you remember what the sales funnel looks like? Check it out below:
When we invert the funnel, we can notice the similarity with Chet Holmes' pyramid, making it possible to work together. That way:
It is notable that they have a deep connection. So, try to analyze the pyramid data and use it better in the sales funnel. This way, the content of each stage will become more assertive.
For those who are not yet at the point of purchase, use persuasive language a lot. Show how your product or service will solve customer pain. If you already force a purchase through CTAs, for those who are not yet prepared, you will be wasting time.
Review your strategies regarding the sales flow constantly. You could be losing good customers by offering your solution before the ideal time. So, always focus on how to solve your audience’s problems and how to present this.
Pyramid's relationship with Inbound Marketing
O Inbound Marketing is nothing more than a set of marketing strategies that combine the creation and sharing of certain content, for a specific target audience. Therefore, this action seeks the customer's consent to communicate directly. Thus, a relationship begins.
In short, Inbound Marketing is marketing in which the public reaches your business through your content. This makes it easier to present your services and make them customers.
To align this concept with Chet Holmes' pyramid, it is important to think about each step separately:
top of the funnel
At the top of the sales funnel, we must produce content to attract customers; It is the learning and discovery stage, starting the purchasing journey. At this stage, it is important to remember Chet Holmes; 30% of all visitors believe they are not interested in purchasing what you are offering. Another 30% are absolutely certain that they are not willing to buy your service or product.
So, with that in mind, work with content to present your solution: attract the public's attention, generate curiosity, and not just make sales pitches. Your focus should be on converting visitors into leads, to continue the purchasing journey.
Therefore, the best content to work on at this stage are:
- Blog posts;
- Posts on social networks;
- Videos;
- Infographics.
This content is easy to consume and also share. This makes the lead education process easier.
Middle of the Funnel
At this stage, according to Chet Holmes' pyramid, 7% of the public is willing to consider your solution to their problem. Here, the persona already understands their problem and is looking for the best solution.
The person is not yet at the best time to buy, but if the work is done well at this stage, they will be very close to it.
Bottom of the Funnel
According to Holmes, only 3% of opportunities are actually wanting to close the deal. Here, you must work hard on customer persuasion. Present everything that your business can offer: its benefits, differences, advantages, etc.
Furthermore, use concrete evidence, such as your success stories. The lead needs to feel confident that they are in good hands.
Chet Holmes' pyramid and the sales team
As fundamental as applying Chet Holmes' Pyramid theory to marketing strategies is integrating it into the sales team as a whole. After all, it guides the entire commercial process: from knowledge to closing the deal.
Based on a solid and comprehensive structure, the concept offers a holistic view of the sales process, highlighting crucial points to maximize results. This can be very useful for professionals who work in all aspects of a sale, such as the hunter (opening the market), closer (who closes the deal) and farmer (responsible for the relationship).
You have seen throughout this article that Chet Holmes' Pyramid presents three essential pillars: generating leads, converting leads into customers and increasing customer value. In other words, they represent crucial stages of the sales cycle and strategically guide teams to optimize each phase.
Therefore, as explained previously, the base of the pyramid focuses on generating leads, the vital fuel for sales success. Important for inbound marketing? Yes! But also essential for hunters.
Next, converting leads into customers is covered, highlighting the need for effective sales strategies and persuasive techniques to close deals. Exactly the main responsibility of closers.
Thus, the top of its pyramid focuses on increasing customer value by encouraging teams to cultivate lasting relationships, provide ongoing support, and seek opportunities to expand sales with existing customers. This is the time for farmers, after-sales and costumer experience teams to take the lead.
Therefore, Holmes was a visionary in emphasizing the importance of relationships with customers to make sales, even in the early 2000s. Now, today, this has become paramount.
In short, this theory provides a clear, structured roadmap for sales teams. Not only outlining the key stages of the sales process, but also highlighting the interdependence between these stages, encouraging an integrated and strategic approach to driving business growth.
Advantages of applying Chet Holmes' Pyramid in your company
After reading all this, I think its advantages are clear, right? With it, your audience’s purchasing intention becomes much clearer. Furthermore, it is possible to work better on content and be more assertive at each stage of the sales funnel.
You will better understand all the results of conversion rates, and improve them. This way, the entire process ends up becoming easier to work with.
How to apply Chet Holmes' Pyramid in my business?
Now, the time has come to put theory into practice. To apply it, it's very simple, just work with it and your sales funnel, side by side.
This way, you will understand if you need to produce more content for the stages of the funnel, understand all your conversion rate results and align your strategies with the audience's needs in mind.
So, at the end of it all, the sales team will receive leads prepared to close purchases. The team's work will be made easier and they will be able to achieve a notable increase in the number of conversions.
Recommended materials
As you have seen throughout this text, although Chet Holmes is deeply known for his famous pyramid, this great executive certainly has a lot to teach us.
After all, his career of more than 30 years leading successful companies has given him unparalleled expertise in marketing and sales. This knowledge was materialized in the book “The Ultimate Sales Machine”, from 2007, considered by many to be a true bible of the contemporary business world.
The Ultimate Sales Machine, 2014
Although its original English version was published in 2007, the book that brings together Chet Holmes' main knowledge arrived in Brazil in a translated version only in 2014.
It is a manual full of practical and proven strategies, basically with the content we discuss in this article. In this way, the work highlights the importance of a holistic approach to the sales process.
Guiding readers through each phase of the sales cycle—from lead generation to conversion and increasing customer value—Holmes shares valuable insights on how to improve persuasion skills, establish lasting customer relationships, and implement effective marketing and marketing strategies. sales.
Packed with practical examples, actionable tips, and inspiring stories, “The Ultimate Sales Machine” not only offers a blueprint for boosting sales, but also challenges readers to adopt a results-oriented mindset and operational excellence.
Deepening your studies
If you want to understand more about Holmes' strategies, in addition to drinking this knowledge directly from the source, we have separated other indications of materials that can be useful in this process.
First of all, I point out that most of them are in English. However, it is worth making the extra effort and passing the content through artificial intelligence for audio and text translation, if applicable. Let's go?
Podcast: Chet Holmes' 12 Key Strategies To Turbocharge Yout Business
This is an episode of The Home Service Expert Podcast. In it, Amanda Holmes, the daughter of Chet Holmes and current CEO of Chet Holmes International, is interviewed. She shares some secrets of the consultancy created by her father, which has already helped countless companies double their business performance.
Blog: Chet Holmes International
The website of the institution founded by Holmes has a rich blog, full of content that offers insights for businesses in all segments. The contents are quite in-depth and even called a “Learning Hub”, or learning center, in Portuguese.
In addition to texts, there you will also find videos and podcast programs led by Amanda Holmes. She delves deeper into the themes covered in the book “The definitive sales machine”, drawing parallels with the current business context.
Who is Chet Holmes?
I couldn't finish this article if I told you a little more about the great mind behind such an important concept. So, let's look at a brief biography about Chet Holmes.
An American, he was a renowned business strategist and influential author, recognized for his significant contributions to the field of business development.
Holmes began his career at a very young age, working for Charlie Munger, at Berkshire Hathaway, where he absorbed valuable business lessons. After successful stints at several renowned companies, he became co-founder of the consulting firm Chet Holmes International.
It was during this period that he stood out as one of the leading business growth consultants, helping companies of all sizes optimize their sales and marketing strategies. All the expertise that was highlighted in the best-seller “The Ultimate Sales Machine”.
Its main recognition involves its innovative approach and methodology, emphasizing the importance of operational excellence, sales strategies and continuous improvement for business success.
Despite his untimely passing in 2012, his impact endures in the business world due to his ability to simplify complex concepts, offer actionable strategies, and prioritize efficiency. Even today, Chet Holmes is a reference for entrepreneurs and business leaders.
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