John Hirth's commentary on sales...

Selling is all about "lowering risk"...

Selling is all about getting people to change and change always involves risk. Generally, when given a choice, most people will always choose to not change. People are creatures of habit and change requires them to break old habits and create new ones. What makes selling difficult is the fact that it requires you to work against human nature by getting people to change (and you thought this was going to be easy!).

If you think about it, much of the resistance (objections, stalls) you will encounter in sales is a function of risk. Most people will resist change if they believe that the risk they take to change is greater than the risk they will experience by deciding to not change. The old belief "better to live with the devil you know, than the devil you don't know" is what makes it difficult to create the inertia you need to get people to change. It is a powerful force that we will all have to deal with.

So, how do we lower risk, or at least lower the perception of risk, to get more people to take the risks they need in order for us to sell. Two critical strategies come to mind for us to consider:

1. Identifying and clearly understanding your prospects problems will lead them to believe that through your understanding, it is less likely that you will sell them a solution that will not work. Asking questions that give you a full understanding of their situation will help to alleviate their fear of risk.
2. Helping them to understand that the "discomfort" that exists now (consequences, circumstances of staying the same) will be diminished by their willingness to go through the "discomfort" of change. Again helping them to overcome the perceived risk.

The first strategy requires us to be good at "information gathering" questions. Questions like:

• Tell me more about the problems that you are experiencing?
• How long have you had this these problems?
• What have you done to try to solve them?
• How did that work?
• Specifically, what impact or consequences do they have on you and your company?
• Do the problems cost you/your company any money?
• Are there any other solutions that you are considering now?
• What happens if you don't fix them?

As you gain information you create the belief that through the information you have gained it is more likely that you will deliver a recommendation that will work...hence, lowering risk (you may also find this is a good strategy that helps to differentiate you from your competition).

The second strategy requires us to ask "consequence" questions. Questions like:

• What happens if this doesn't get fixed?
• Is this something you can live with?
• How would not being able to solve the problems affect you personally?
• Who else is affected by these problems?
• Maybe it's something you really don't need to worry about?

These questions help the prospect understand that not solving the problem may actually be a bigger risk then the risk they will need to take to change. They are often exactly the questions that you need to create the inertia for change.

Your ability to ask both of these types of questions will help you and your prospect understand and limit the risks involved in changing. Lowering risk is one of the keys to being successful in sales!

Action Step:Add these questions to your sales process. Until you can establish that the risk of "not changing" is greater than the "risk of change" the result will be "no sale"!

"Nobody likes change..."

I received a newsletter today from a gentleman who I have worked with in the past, Dr. Alan Zimmerman. Dr. Zimmerman is a well known business consultant who specializes in managing change and communications skills. I presented with him at a conference in France many years ago and was proud to share the stage with him.

His newsletter started with a great quote, "The only person that likes change is the baby with a wet diaper". After a chuckle and a nod of agreement (it's been a while since I was the "Change-er" or the "Change-ee"), I thought a little about the statement and questioned the validity. Is it true, are there ever other circumstances when people enjoy change?

Think about it, everytime you make a sale you create change. When someone buys something new or different from what they have been buying it requires change. When someone buys something it often requires them to change the way they work. Human beings are creatures of habit and fundamentally resist change, it's part of what makes "selling" so challenging. So, initially I agreed with the statement.

However ,the more I thought about it I realized that although change is always uncomfortable there are many things I have purchased that required me to change but after the initial discomfort I have been absolutley thrilled about. I believe the same is true about your prospect and believe that the quickest way to "making a sale" is to find out what, in terms of their current situation, would they like to change. Change is much more acceptable when your contact is not "comfortable" with their current conditions.

Our selling model suggests that in order for you to be successful in sales you need to find out what would "motivate" your prospect/customer to change. Just like the "baby in the wet diaper", people don't mind changing when they believe that the discomfort of change will be outweighed by the benefits of their new outcome. That's why questions about "what they might want to change" can be so valuable to us. If you can find out what they would like to change about their current situation, and if the decision to not change causes "discomfort/pain" then change should be welcome.

Rather than having the fear or discomfort of change create resistance to work against... use it as a tool to create momentum in your favor. Ask people questions like:

    What is it about what you use now that you would like to see work better?

    Why would you want to change from the way you do things now?

    Why would you want to look for a new source of supply?

    What is it about the way you work now that you would like to see improved?

Answers to these questions help them to create their own reasons for change and                                  it will become leverage instead of resistance! Think more about what your prospect would like to              change     than what you  would like to sell and you'll make a lot                                                           more sales!                                                                                                                                     

"What determines a productive sales call...?"

I think for most sales people, determining what makes a productive sales call requires you to start with the "end in mind" and then gauge your success on the progress you make towards that end. You get paid to "write business and close sales!", and all activities that move you closer to your end goal are productive. The real key is identifying those activities and outcomes that move you closer to your goal and managing to make those outcomes happen.

Because your goal is to "write business and close sales", establishing a list of outcomes that would help you move closer to that end is critical in gauging your success. Knowing the intended outcomes will not only help you measure your success but will also create an "end goal" for you to work towards. Without a goal you will be much less likely to achieve the results that you want. "If you don't know what you want, then how will you know whether you got it or not?"

Let's start by defining what "outcomes" or goals that we might like to accomplish to make our sales calls effective.  In our "Sales Mastery" program, we discuss the need for every sales call to have an outcome. There are five potential outcomes that are possible, four we encourage and one we discourage. You will need to manage your call to one of these four acceptable outcomes and not accept the unacceptable one. The acceptable outcomes are:

1. Yes- a commitment to buy or commitment to a "time and issue specific" moving forward next step.This means a clearly defined outcome like "let's get together with the head of my department next week on Tuesday at 1:00pm to discuss his/her goals for this project", rather than "give me a call next week and I'll see if I can get our department head to set time aside for a discussion". You'll need to be vigilante in your ability to recognize "non-commitment" vs. real "commitment". Otherwise you'll make non-productive sales calls and waste time.

2. No- A clear negative response which identifies no further action is necessary. "No", is o.k., and a preferred outcome to a "stall" that identifies no further action is necessary. For most of us, "no" does not mean forever, just not now. You'll need to decide whether a call back is necessary or not. Through your "CRM" or "contact management system" set up a tickler or "nuture plan" to stay in touch automatically.

3. Future- A commitment to a date in the future (beyond 30 days normally) to resume contact due to inappropriate timing of current meeting (i.e., they may not have budget now or need to finish a project first before they can consider yours). Again, be vigilante and make sure you are not accepting a a stall or non-committed answer.

4. Lesson- Having lost or been out of control in the sales process what can we learn that will help us in the future? Losing is o.k. if we can learn from it and profit by the lesson. Losing and not understanding why we lost has no value and will cause us to repeat the same mistakes. (Hint: as time goes on you should be getting fewer lessons!)

5. Stall, indecision, TIO (Think it over)- Leaving a call with no decision or commitment to a time and issue specific future action. Stalls always leave us feeling there is "still hope" but usually end up in "no sale". Decide ahead of time that this is not an acceptable answer.

Obviously, items 1-4 are the acceptable outcomes and item 5 is the one we should not accept. Any prospect who is unwilling to commit to an action oriented next step is not a prospect and should be driven to a "no" conclusion. Realizing that "no" is a better outcome than "in-decision" will help you be more successful in your ability to make productive calls.

Action Step: Commit to these acceptable outcomes and don't accept indecision or "no movement". As soon as you define the outcomes you want, your ability to manage the call to one of these productive outcomes will improve dramatically, and so will your success!

   

Create a "Non-Selling Posture..."

People love to buy, they hate being sold. You've heard that before and know it's true, yet many salespeople still go in with the objective to "sell" the prospect.  We often start by asking questions but when we see that first opening (need)...bam, we're sellin'! Often, unintentionally, the "feature benefit machine gun" comes out and were blasting the prospect with our "best stuff." They feel pressure and ironically so do we!

One of the great challenges that face all of us in sales is the reputation that has been left by all of the "amateurs" that have come before us. Whether you like to admit it or not, there is a negative stigma still associated with the sales profession. Remember the old game "password", I give you a word and you come up with clues (synonyms), to get the contestant to guess the word. If the word was "salesperson" what would some of your clues be??  I'm not asking you to think of yourself but of all those "other" sales people out there. If you're honest, it's not pretty.

In my last post, on how to answer "what makes you better", I began to reveal the essence of the "non selling posture". Saying anything or doing anything that typical sale people do will have you digging a hole for yourself and on the fast track to creating "sameness". The strategy will give you a label you really don't want. That's why it's so important to take a "non selling posture" and to not be afraid of sounding a little negative. It will go a long way to building trust with your prospect and help you to avoid sounding like a typical "sales person".

Don't be afraid, on new prospect calls, to start out by saying things like:

    I'm not sure we can help you.

    Our product/program may not be what you need.

    Why were you considering an option like this?

    We're helping a lot of companies like yours, I'm not sure we can do the same for you.

On your next new account call try some of these phrases and see if taking a "non selling" posture will remove some of the natural defensiveness from your prospect. It may seem awkward at first but most new behaviors do. I'm confident that this approach will pay dividends and improve your winning percentages! On second thought, "maybe it won't work for you..."

"Dealing with information seeking questions..."

Not the ones you ask... but the ones your prospects/customers ask! You know how it usually goes... you're on a call and the customer asks you about a product or service that you provide. Of course you see this as the opening you've been waiting for. (salivating) You get out the feature benefit machine gun, cock it and load it and engage in a quick round of "pray and spray", dumping all your best stuff and thinking there is no way they can resist buying. Unfortunately, it just doesn't go that way and instead of saying "I'll take two" they say "can you send me some literature"? Dumbfounded, you walk out in disbelief wondering what went wrong??

Information seeking questions are usually driven by hidden agenda's, or have multiple answers with only one being the winner. Your zeal to answer and provide knowledge is often a mistake and can end up costing you a lot of money. You may be better off not answering but finding out why the questions were asked in the first place.

Information seeking questions are often best handled with a communication strategy called "reflecting". Reflecting involves simply "asking a question about the question" that reflects the original question back to the prospect to get more information. Some types of information seeking questions you need to be cautious of and that need to be reflected are:

1. Questions about your products or services.

2. Questions that ask you to compare your product against another.

3. Questions about your competition.

4. Questions about delivery, price, quality, service, etc.

All of these questions are asked in context with additional information that you are not aware of. Your ability to understand the context within which they are asked will give you a higher percentage chance of providing an answer that will benefit you.

Think about a questions that revolves around product. "Tell me a little about your "knutten valve"?" Now, if you had a "knutten valve" instead of telling them about it, you might be better served by saying "I'd be happy to... was there a reason that you have an interest in our "knutten valve"?" There is always a reason and your ability to find out what it is will put you in a much better position to give an answer that will benefit you.

"What/or who's knutten valve are you currently using and is there something that you would like to change about what you are using now?" If they are not happy with what they currently have how could you possibly solve a problem that you are not fully aware of? Not knowing what the problem is might get you to make a suggestion on a feature they have already tried and didn't work!

We'll expand on this concept called "reflecting" in upcoming posts but for now ask your self "should I answer or should I ask?" I think you'll find out "not answering" will be your best strategy and have you on the way to making more sales!

Action Step: Write down five questions that you regularly get on sales calls. Then write down the answer you are currently giving. think of what a good questions about the questions would be and plan to use your new "reflectors" on your next sales call.

Can I tell them..."I don't know the answer to that question?"...

I often have sales people ask me if it's o.k. to tell someone, "I don't know the answer to that question". I always tell them "sure it is, in fact it's a lot better than trying to make something up that could backfire or be wrong!" No one knows everything (well, almost no one!) and no one expects you to have an answer to every question. In fact not having all the answers will make you seem a little more "human" and probably set people at ease...besides nobody likes a "know it all".

However, not having the answer and saying "I don't know" can become a problem when you've said it ten times and your prospect/customer begins to feel that you bring them no value. In a business that has highly complex products or services that require a lot of technical knowledge this can become a real problem for both sales people as well as their sales managers.

For sales people, lack of product knowledge can create "call reluctance" because not knowing the answer over and over again can make people feel like they are "failing". It also extends what we refer to as "ramp up time". Ramp up time refers to the length of time required to learn all of the product knowledge required to be able to answer questions and be effective on sales calls. In some cases, this could make the time it takes a sales person to "get ready" to make calls extremely long. In fact in some situations almost impossible when you consider  some of the companies that have literally thousands of products, how could anyone know everything?

So when you get a questions that you don't have an answer to instead of saying "I don't know..." try finding out why they asked. Instead of answering or not knowing, simply say "that sounds important, why did you ask"? You might be surprised by what you find out.

Here is a hypothetical example that relates to a company that sells drill bits:

How long should I expect one of your carbide drill bits to last?

Now, let's suppose you don't know. You could say "I don't' know, let me get back to you". You end up providing little value, lengthen the selling cycle and leave your prospect "vulnerable" to someone else who might have the answer.

Or, you could say, "that sounds important, why did you ask". You might hear something like this:

Our current supplier can't seem to get us anything that will last and we are forced to slow down production because we have to stop and change drill bits to often".

Now you've found the real reason they asked the question and can have a better discussion on what might solve the problem. So next time don't be so quick to say "I don't' know", instead of giving an answer try asking a question!

Action Step: Create a list of questions that you think you might get and practice this technique.

 

"Who breaks the tie...?"

I was in a "pipeline management" meeting with one of our clients, running what we affectionately refer to as a "bid scrub". These meetings are tough, but productive, and help to realistically assess the likelihood that we can close what has been bid. This was a new client and had not yet implemented our selling process... hence there was still a lot of "quote and hope" strategy at work!

Initially non-threatening, people catch on quickly and as they go "painfully" through each opportunity it becomes apparent why and how their deficiencies occur. Defensiveness can sometimes get in the way but people at the end of the process have a distinct advantage and leave with a much better handle on managing their own pipeline. In the end they recognize the futility in trying to justify what is often a weak position. In fact many have the good sense of starting out the story with "I can see I am missing a lot of information but I'll go ahead anyway" and accept the "beating" with humility. As uncomfortable as it may be, it is a vital learning experience that will ultimately help everyone be more successful, make more money and reach their goals (getting what they want out of life).

We were well into discussing one of the last opportunities when we ran into a problem. The deal was far along in the selling process and at the point where the sales person felt comfortable and had made an offer. There were strong buying motives, the project was budgeted and we had qualified the decision process and the people making it. With this information at hand the sales person felt confident enough to say this one is a "lock".

Some questions followed and we found out that there were two different groups with an equal number of people and slightly different agendas. I asked a question that had not been asked by the sales person, "what happens if there is a tie, one team votes one way and the other team votes the other way?". There was silence, and then the answer "I don't know"...  followed by a sheepish look of confusion.

However,and with aplomb, the sales person quickly recovered and suggested that a tie would be "highly unlikely..." to which we asked "could it happen", followed by the answer "yes". Then, I asked "if there is a tie who breaks it?". More silence... which confirmed my concern that we had not covered all of the decision makers.

The lesson; when working with multiple decision makers we need to ask "what happens if people can't decide and there is a tie?" The answer will be "the real decision maker". Businesses are not democracies, they are monarchies and for that reason there is always someone who can break the tie. The tie breaker is who you really need to get to and is the "real decision maker".

Action Step- When selling to multiple decision makers ask how many people/departments are involved and if it is an even number make sure you ask the question "if there is a tie who breaks it?" It may be all you need to know to get the deal!

"Stop Educating your prospect!"

Companies spend thousands of dollars every year building product knowledge "Universities". They send their sales people to these product schools to learn the features and benefits of their products. They have them go through the process of becoming "product" experts, with the hope that the expertise they gain will propel them to sales success.

Unwittingly, they promote and fund a process that ends up creating "non supportive beliefs" in the minds of their sales people that can actually inhibit their success and lose them both sales revenue and profit margins. Those beliefs include the following:

       Disseminating product knowledge to my prospect will build my credibility and make sales.

       In order for the prospect to understand the value of my offer I must educate them.

Unfortunately, we have found this type of thinking, or "non supportive beliefs", end up creating very difficult selling problems. Once we understand the problems these non supportive beliefs create we can begin to change both our thinking and behavior that will lead us to greater success in sales.

Although being credible to your prospect is important , we believe that having them trust you to provide a solution that will limit the risk they take in making a decision to buy from you is much more important. The way you build that trust is by demonstrating to your prospect, through a complete understanding of their problems,  that you reduce the chance of making a mistake in the recommendation you make.

Logically, to gain an understanding of what your prospect needs, would require us to ask questions. Through your questions, you gain a greater understanding of their situation and thereby lower the risk of making a recommendation that is inconsistent with what they need. Asking questions about typical problems and understanding the impact they have on your prospect is much more important than giving out information.

Also, we have found that educating your prospect about your value allows them to use your information and recommendations as a way to "shop" you against the competition, frequently building RFP's and RFQ's around the unique value you have educated them about. This "shopping" model allows them to get competitive bids built around your recommendations that literally extinguish your value and end up creating sameness. This "free consulting" is particularly frustrating and damaging to our technology and intangible service customers.

Educating your prospect may make you feel good but it will end up being your downfall. It's a dead end street that will force you to define your difference by a low price!

Action Step: Learn to control your conversations better by taking control at the beginning of the call. Create a list of "business problem questions" that will guide the conversation to your value.

      

      

"We just need to tell our story...!"

I was meeting with the Vice President of Sales and Training Director of a major automobile fleet leasing company discussing plans for an upcoming sales training initiative. Their company had a great value proposition for the management of large leased vehicle fleets (1000+ vehicles) but they were having trouble effectively communicating it to their prospects with consistency and in a way that could clearly create a difference. Their market was extremely competitive and an inability to differentiate and add value was driving margins into the toilet!

My contacts made the comment "we just need to get in and tell our story because we know once they hear it they'll understand our difference, can you help us with that?" They were confident of their value, had a great program, were passionate about what they could provide and should be winning more opportunities. How could I suggest to them "tactfully" that telling their story might not be the best  way to "translate" their value, providing them with the ability to differentiate and sell for more?

I suggested that the story they wanted to "tell" may not be exactly what the prospect wanted to "hear". Rather, why not let the prospect tell their story and see if you can add a happy ending that you'll both enjoy! Instead of you telling your story ask questions to get the prospect to tell theirs which will help you identify what parts of your "story" would be relevant and valuable to your prospect.

I went on to suggest that often the way sales people tell their story may not be completely relevant to the prospect and worse, may be told in a way that is not clearly understandable. They often include details with little or no interest and frequently include features and benefits presented in a way that is just not compelling or understandable. Worse yet, they end up sounding vaguely familiar to what the prospect currently has leading them to the conclusion that there is really no difference. Sadly, the differentiator now becomes "price".

Looking a little frustrated they responded "what would you suggest?". Let's start with questions about their current situation (story) and find out if there is something about the situation (story) they would like to change. If we can find something they want to improve on or are having problems with we might be able to complete the story in a way that is beneficial to both of us. The other problem with telling your story is you provide to much information that would enable your prospective buyer to go out into the market place, share the information with other competitors who then end up "cloning" your offer. Ouch!!

Similarly, when "telling your story" you make it clear to your prospect (unintentionally) that the only story worth discussing is yours. You end up sounding like the bore at the cocktail party that can't stop talking about him/her self, not typically someone people want to be around or ask back for another meeting.

I know  that what compels people to want to "tell their story" is the firm belief in the value of their offer. However, next time you feel compelled to "tell your story" asking some questions first about what story to tell may actually work better.

Action Step: Take what ever you want to tell people and turn your story into a series of questions (Our "Value Translation Strategy" workshop will help define this strategy for your company) .

"Can you meet the price...?

Have you ever been in a situation where you have offered a product/service at a specific price and then been asked the question "can you meet the competitions price?"...Interesting dynamic here... one most sales people don't really understand and one that needs to be explored to put you in a position to succeed!

First, arm yourself with supportive beliefs and thought patterns. Your most powerful selling tool is your mind and the way you look at your business and situations that occur in it! It's never really the price they object to but rather they object to not getting enough (value) for the price you are asking. This can be driven by a host of issues that we have already explored in other posts.

However, let's get back to our example... you've made your offer and now they have said "that's not good enough I have a price from "Dewey, Cheatham and Howe" that I would like you to beat. Take solace here and understand that you are in the drivers seat... here's why.

First, If they had no interest in buying from you they never would have come back to ask you to meet the price. If it was a "price only" transaction they would have taken the lower price already. the fact that they have come back to you tells you something... it is what we call a "demonstration of preference". They have come back to you and given you the final look because there is something about your product, service or company that they prefer. Because of that "preference" you should be able to get more.

There are many "options" that could apply here but let's start with a simple idea. If you could get 1% more margin on every deal like this what could it mean to your business?... how about 2% or 5%. Small differences over large $'s, consistently, can be the difference between a good year and a fair year!

Try suggesting that you can't meet the competitions price but you can get close... but first ask them why they were willing to give you the "last look". This simple questions might reveal how much more you might be able to get. Then, suggest that you can't meet the price but you can be within 2%. This is just a guideline not specific to all businesses and circumstances but most people (because of preference) will be willing to give you a little more!

So next time you are confronted with this "opportunity" resist the easy way out, don't offer to match, get a little more... you're worth it!

Action Step: Practice the strategy and be prepared for your next opportunity!