SalesCoach — Sales Training Articles

The Rules

Mon, 31 Aug 2015 23:24:26 GMT

If I act like a salesperson, I’ll be treated like one. 2. Prescription before diagnosis is malpractice. 3. My prospect must convince me he has a problem that needs to be fixed. 4. The harder I push for a “yes,” the more likely I am to get a “no.” 5. No pain, no change. 6. Prospects mislead salespeople; it’s genetically encoded. 7. If they don’t have the money, even my best sales pitch isn’t likely to help them find it. 8. A “think it over” is just a slow “no” with a free torture treatment. 9. I will reduce my chances for success by 50% if I’m not in front of the decision maker. 10. Not everybody is a prospect; so “no” is okay as long as I’ve qualified properly. 11. Successful selling is collaborative, not adversarial. 12. My job is to get information, not give it; I need to shut up and listen. 13. I don’t need to offer discounts to get the business if I’ve found enough pain. 14. I don’t make presentations to people who can’t, or won’t, make a decision. 15. My time is incredibly valuable and my prospect has to earn it. 16. My attitude is that I’m financially secure and don’t need the business. 17. Trust is the foundation of every sale - people buy from people they trust. 18. Questions are my most effective tools for success. 19. I’m capable of a quantum leap in my sales; there is no limit to what I can accomplish. 20. See rule number 1.

Self-Study Assignment:

Read over these rules; turn them into affirmations by placing a copy where you can read them at least one a day.

If You Sense It, Say It (Nicely)

Mon, 31 Aug 2015 23:16:31 GMT

If we’re paying attention, prospects will often give us clues to roadblocks we might have to overcome during the sales process. A word here, a facial expression there, and we know something is happening. Sometimes it’s not good. Your intuition tells you that something is wrong and needs to be discussed, but you don’t know how or are not comfortable bringing it up.

Here are a few fairly common issues that fit this category.

Their budget may be inadequate to address the problem.
There may be others who will influence or make the decision.
They have a long-standing relationship with an existing vendor and it would be difficult for them to change.

Have you ever said

to yourself

during a sales call, “I get the feeling that….”?

If you have, it’s important to deal with the issue early on before it becomes a bigger problem or even a deal breaker. You might say something like this:

Salesperson:

“Sue, I’m not sure why, but

I get the feeling

that it would be very difficult for you to make a change, given the long standing relationship you’ve had with your current supplier.”

Prospect:

“We have had a good relationship with them, that’s true. But recently they’ve had some quality problems and we’ve decided to look at alternatives.”

Salesperson

: “Really. Are you sure that you’d be willing to make a change?”

Prospect:

“Yes. The issues are pretty serious.”

Sometimes, during a sales call, your prospect will say something that conflicts with a previous statement. You’re confused, but you don’t know how to bring it up without seeming to be confrontational. When this happens, act like Colombo.

This tactic is especially useful when you need to get more information. It involves acting somewhat confused (on purpose) in order to encourage your prospect to open up and clarify a particular issue. Lt. Colombo (Peter Falk of the TV show

Colombo

) used this approach to perfection. It’s totally disarming and puts the prospect in a position to help you, the “confused” salesperson, get things straight. It sounds like this:

Prospect:

“We’ve decided to wait a month or two to make our decision.”

Salesperson:

“I’m a little confused.

You said this problem was costing you $10,000 a month and was a top priority to fix. Can you help me understand why you want to delay now? I must be missing something.”

Prospect:

“Well, here’s the real problem…”

Self-Study Assignment:

Think back over the past several weeks where using this tactic could have brought something to the surface quickly. How do you think your prospect would have responded? How would that have helped you?

“Send Me Some Information”

Mon, 31 Aug 2015 23:12:25 GMT

This put-off is as old as the hills.

It kept many a marketing department busy coming up with new collateral material. And salespeople historically took it as a real sign of interest. Prospects learned long ago that asking for information was a fail-safe way to get rid of salespeople quickly. On cold calls this scenario seemed to be played out with consistent precision. The prospect would say, “I don’t have time to talk right now, but why don’t you drop some literature in the mail for me to look at.” The salesperson, misinterpreting this for genuine interest, would put together a “package” of information and put it in the mail. A week later, he’d call the prospect only to hear one of two responses.

“I haven’t had time to look at it.” (And the chase would begin.)
“I don’t recall receiving it.” (At which point the salesperson would send another package, and the marketing department would marvel approvingly at how fast their collateral was flying off the shelves.)

Remember, some prospects simply don’t want to hurt your feelings. They’d rather have you chasing windmills (remember Don Quixote?) than ruin your day with another rejection. If you’re still falling for this old trick, here are several ways to deal with it.

Reward & Refocus:

“I’d be glad to put something in the mail. Can you tell me specifically what you would like to have information about?” (Prospect responds.) “That’s interesting, why is that important?”

Easy Exit:

“Sometimes when people ask me to send information what they’re really saying is that they’re not at all interested, but just don’t know how to tell me that. Is that the case here?”

Colombo:

“I’m a little confused. Why would you want me to send information?”

Let’s Pretend:

“Let’s pretend I sent you some information and you liked what you saw. What would happen then?”

Self-Study Assignment:

How often do requests for literature happen to you? How often are they sincere expressions of interest? If you get this request frequently, you must commit all of these three scripts to memory.

“I Need To Get Some Other Quotes”

Mon, 31 Aug 2015 23:09:56 GMT

You’ve just made your million-dollar presentation, and your prospect counters with this one. What do you do now? The traditional salesperson will frantically go back in his memory bank and come up with one of the following snappy one-liners, none of which is going to win the Pulitzer Prize for sales excellence.

“Okay, but I think you’ll find that our prices are quite competitive, especially when you consider the overall value.”
“I know how you feel. Other people have felt that way, but when they found the terrific value our products offer, they didn’t hesitate to buy.”
“Well, I could come down a little. Would that help?”

Here are three more effective ways to deal with this put-off.

Reward & Refocus

“I can see that you’re not happy with our proposal. Can you tell me what you were hoping we’d come in with?” (This may give you some insight as to what was wrong with the proposal, after which you may be able to negotiate an acceptable alternative.)

Sense It & Say It

(plus Reward & Refocus) “Bill, I get the feeling that our proposal really missed the mark. Is it just a price issue or something else?” (This will get you additional information to determine exactly what the roadblocks are. Sometimes it’s not price. You need to be sure before you attempt to deal with the situation.)

Easy Exit

“Sounds like we might be pretty far apart. Should we close the file or should we try to see if we could find a solution that works for both of us? Your choice.” If you learn how to apply these tactics to this stall, you’ll find yourself more confident, more in control, and closing more business.

Note:

Refer to Core Competency #42 which states that as a general rule both you and your prospect should be on the same page with respect to what the problem’s approximate financial impact is and how much your solution might cost before you agree to make a formal presentation. Following this advice will eliminate 90% of your price objections.

Self-Study Assignment:

Learn these three simple scripts by heart so that the next time you hear this stall you don’t have to wimp out or start over-selling.

Eliminate Your Competition Early

Mon, 31 Aug 2015 23:08:03 GMT

Change is difficult. Don’t let your prospect use it as an excuse not to buy from you.

When a company has a long-term relationship with a vendor, often it has developed processes around doing business with that vendor. In addition, close personal relationships are developed with vendor personnel that can be painful to sever. Frequently salespeople are told, “We really like you guys, but it’s such a hassle to change suppliers that we’ve decided to stay where we are.” That’s one reason why nearly 25% of proposals go nowhere…the prospect decides to stay put.

That’s called inertia and it’s the silent proposal killer.

Typically problems fall into the “fix it” or “forget it” category.

It’s often easier, less painful, to do nothing. To get problems solidly into the “fix it” category, salespeople need to be exceptional at uncovering the prospect’s pain, as pain is the accelerator for change.

No pain, no change.

Hearing “we’ve decided not to make any changes” is especially frustrating after you’ve spent a good deal of time (and money) qualifying the prospect, researching alternatives, developing a proposal, getting staff involved, and making the presentation. The key here, when you realize that change will be difficult or old relationships will be tough to discard, is to

face the problem head on and deal with it early

in the sales process. So when a prospect tells you they’re thinking about making a change, challenge them politely with the following:

“I’m glad there might be an opportunity for us to help you, but you know, change is difficult. Your current vendor is well respected in the industry. Why would you want to change?”

Their answer, when asked this low-key question, will tell you volumes. If they don’t respond immediately with some convincing reason as to why they’d want to go through the hassle of change, you should think twice about spending a lot of time on this “opportunity.” Another approach might be to employ the “biggest concern” tactic, as follows:

“My biggest concern is that we’ll spend a lot of time meeting and exchanging ideas, but at the end of the day, you’ll tell me that ‘change is difficult and we’ve decided to stay with out current vendor.’ What’s the likelihood of that happening?”

Self-Study Assignment:

How often does this situation happen to you? Even if it’s infrequent, this is a great thing to say to a prospect early on to get him to divulge his pain. Learn the script and use it on your next call.

“Can We See a Demo?”

Mon, 31 Aug 2015 23:05:44 GMT

Many companies place a great deal of reliance on demos to showcase their products and services. While a demo can be a great way to show off your product, often it is not being properly utilized to close business.

Salespeople arrive, anxious to “demo” their product to show how it will improve the prospect’s situation. They demo every feature and discuss every benefit. Typically when the demo is finished, the prospect expresses interest, says he needs some time to think it over, and invites the salesperson to follow up in a week or two. Whatever the final result, salespeople don’t seem to be very effective at using demos to close business. It’s yet another case of the buyer using his system successfully. He gets the salesperson to cough up his information (the product demo) early in the cycle, carefully avoids making a commitment when the demo is concluded, and forces the salesperson to invest considerable time following up. Unfortunately, sellers believe that if the prospect would just take the time to see how the product works, he’d recognize the benefits and buy. Too bad that doesn’t happen as often as we’d like. The real problem lies not with the demo itself, but with the way the salesperson deals with the opportunity.

Use your demo to close business.

A prospect that asks for or agrees to a demo is not necessarily a qualified prospect. Take the time to find out not only what the issues are, but also his budget and decision making process. And when you do agree to do a demo, make sure you’ve asked these three questions beforehand:

“What issues do you want the demo to address?”
“How will you determine if those issues were addressed successfully?”
“Assuming we are able to address your issues successfully, what would happen at the end of the demo?”

By getting answers to these questions you’ll be able to accomplish several very important things. First, you can focus the demo on the prospect’s pain and avoid showing other features that may not be relevant. Second, you’ll get an understanding of how your demo will be measured and you’ll have the right to ask whether or not you were successful. Finally, you’ll know what the next step should be and avoid the ubiquitous “I need to think it over.” In fact, you may even get an order.

Self-Study Assignment:

A demo can be a lot of things, not just a demonstration of equipment, hardware or software. Identify situations within your product and service mix where prospects want to “see something” and whether or not the above approach will work. Remember, demos can be a good opportunity to close business, not just to do “unpaid consulting.”

Break the Rules & Win More Bids

Mon, 31 Aug 2015 23:03:54 GMT

Many companies are frustrated by the RFP bidding process. More than in any other type of sale, the buyer is in total control of the process. The opportunity to meet with the prospect and gain information is limited, and the low bidder often wins. Yet information is critical to determine if it is worthwhile to participate in the bid process.

Before you decide to participate in an RFP (RFQ), try to get positive answers to the following questions:

Did you know about the RFP before it came across your desk?
Did you have any influence in the creation of the RFP?
Are you able to meet with the prospect before completing the RFP?
Is the playing field level, or does one company appear to have the inside track?
Will the effort to complete the RPF be worthwhile if the bid is won?
Is the revenue significant, and profitable, for your company?
Does the business fit with the strategic direction of your company?

If you can’t answer these questions without meeting with the prospect, here are two strategies to consider:

Re-Direct:

Get the buyer aside and say the following, “We’ve looked at the bid specs and see some problems. It looks like you might have made some mistakes in planning. If we bid the contract the way it’s set up, you’re going to have problems. By the way, if you’ve ever awarded a contract only to discover that there are cost overruns, lots of change orders, and the work not done on time, it’s probably because the specs were flawed from the beginning.” (Most contracts have cost overruns, changes orders, etc. because the specs are often flawed, so the buyer can usually relate to those issues.) Continue with this tactic to take control of the bid process. “If you want us to bid, here’s what we suggest…let us come in and review the bid specs. We’ll have to charge for this service, but you’ll avoid lots of potential problems and we’ll credit the money back if we’re awarded the bid.”

Time Trade-Off:

“Mr. Buyer, in order for me to be responsive to your RFP I’ll need to spend two hours meeting with you and those most affected by the purchase. I’ll need to do this so that I can deliver something that is meaningful and truly addresses your issues. You should also know that my company and I will have to invest (_______) hours of time to put our response together. When can we set a time to meet?” Sell the analysis, re-write the specs to favor your company and enjoy a much higher close rate and higher margins. If the prospect is unwilling to give you the time to so you can do a better job for him, you must seriously re-consider whether or not this is a good investment of your time.

Self-Study Assignment:

If you participate frequently in RFPs and need to do something to gain a competitive advantage, discuss these tactics with your manager and peers. See how they feel about trying something that’s a little unconventional.

“Your Price Is Too High”

Mon, 31 Aug 2015 23:01:55 GMT

One of the most common objections salespeople get is about price.

Typical comments are:

“That’s a bit more than we were thinking about paying.”
“Your prices are kind of high.”
“That just doesn’t fit our budget.”

Salespeople tend to be very aggressive in their attempts to overcome price objections, and quickly begin dropping their price to get the sale. And, more often than not, once the price issue has been “resolved,” another objection comes to the surface. Prospects may use the price objection as an excuse not to buy when, in fact, the real reason is different. Think about it. How often have you said to a salesperson, “That’s more than I wanted to spend” when what you really meant was it doesn’t have the functionality you were looking for, or the style just wasn’t right, or because you had no real conviction that solution will work.

Sometimes price objections are real, and sometimes they’re smoke screens. Your job is to figure it out correctly.

In fact, 68% of salespeople from a wide range of industries thought that price was the customer’s main concern based on a recent survey conducted by The Sales Board. In contrast, when customers were asked what was most important to them in a purchase their response was much different. The majority of people were more concerned with quality, service, and relationship than price. The first thing you must do when you hear a price objection is to make sure that price is the real issue. So ask the prospect this question:

“I don’t know why this is, but many times when we hear the price is too high, it’s something else in the proposal that you didn’t like, and not necessarily the price. Is that the case here, or is it just the price?”

Now the prospect has two alternatives: he can tell you what the real objection is or he can say that everything else is fine, and it really is just about price. If it’s something other than price, you must deal with that. If it really is price, you should find out how far apart you are, and determine whether or not you can be responsive. Assuming you have some flexibility, ask him what would happen if you were able to reach agreement on price. If his answer is anything other than “we’ll have a deal,” you need to do more qualifying, or consider walking.

Self-Study Assignment:

Reflect on how often price objections come up, and how you handle them now. Practice the above script and use it the next time you get a price objection.

“I’m Happy…Why Should I Change?”

Mon, 31 Aug 2015 23:00:17 GMT

Salespeople are frequently hit between the eyes with this objection in the very first moments speaking with a new prospect. The pressure on the salesperson immediately rises to the boiling point, while the prospect sits back and watches his adversary squirm. It’s actually fun, when you’re the prospective buyer. Salespeople react predictably…most attempt to “pitch” their way out of the jam. They ramble on about the quality of their products, their many satisfied customers, the personal attention they give to their clients, competitive prices, and leading edge this and that. But that’s the wrong approach. The buyer has heard all those claims before; in fact, he could have recited what the salesperson said almost verbatim. The pitch has no value, no credibility, and no chance. Perhaps another approach, something totally different is in order.

Instead of trying to convince your prospect that you really are different,

show him

how different you are.

Try this approach. “Maybe you shouldn’t…”

“Maybe you shouldn’t change. I can’t honestly tell you that we’d be a better supplier for you than __________. After all, I don’t know how strong your relationship is. Based on your comment I’d guess it’s pretty strong. Actually the only reason you should even consider a change is if there’s something in your relationship with ____________ that you’d like to improve. If there isn’t, you ought to stay where you are. Having said that, could we spend a few minutes discussing that relationship and what you look for in a supplier? If there’s something missing, we can talk further. If everything’s okay, then I’ll close the file and move on. Does that sound reasonable?”

You might call it a “pattern interrupt.”

Your prospect will certainly sit up and take notice when you say, “Maybe you shouldn’t change” because

he’s not expecting that response.

But it’s the truth. Until you’ve determined that there’s something in the prospect’s current vendor relationship that’s causing some pain, there probably is no reason for him to change. Removing the pressure by using an Easy Exit (Core Competence #48) is a perfect way to handle this brush off. You’ll find that the prospect, thrown off balance, will open up and speak truthfully once you have taken the pressure off.

Self-Study Assignment:

Practice the “Maybe you shouldn’t” script until you know it backward and forward. Record it and add it to your library of audio clips.

“Sorry, My Boss Has To Approve This”

Mon, 31 Aug 2015 22:58:02 GMT

At least 50% of the time salespeople are either denied access to the ultimate decision maker or too timid to fight for it. The results are predictably disastrous. When you don’t have access to the decision maker, you cannot get a “yes” when you ask for the business. You will have to trust a subordinate to sell your idea to his boss, something that he cannot do as well as you. So the first rule is to fight for access to the boss. Use

“My Biggest Concern”

tactic.

My Biggest Concern:

“One of my biggest concerns is that your boss will ask you questions about my proposal that you might not have answers to, and the whole thing will fall apart. Would it make sense for me to be with you to answer the hard questions when you talk to your boss?” Nevertheless, there will be times when you are denied access to the boss and you decide to make a presentation to someone who can’t say “yes” anyway. That’s your choice. So here are several tactics you might consider to improve your chances of winning the business when the prospect says…

“I need to talk to my boss to get approval.”

Traditional (Incorrect) Response:

“Okay. When should I call you to see what she says?” (Stay away from this response as it will get you nowhere.) Here are several other ideas to use when you simply can’t get to the decision maker, and are dependent on someone else to sell your ideas.

Reward & Refocus:

“Jan, I appreciate your telling me that, but I’m curious. What will you recommend to your boss when you speak to her?”

The Easy Exit:

“Tom, don’t take this the wrong way, but the last time someone told me that they were really trying to say that they just weren’t interested. Is that where you are?”

Colombo:

“Gosh, I’m kind of confused. I thought you had the final authority to approve this purchase. Did I miss something?”

Let’s Pretend:

“Jan, let’s assume your boss says we should go ahead. What happens then?”

The Scale:

“I understand. But let me ask you, on a scale of one to ten, with ten being you’d buy it if it were your decision, how do

you

feel about our proposal?” Mastering several of these tactics will give you more options when you run into this roadblock.

Self-Study Assignment:

Read through the above tactics for getting past this common stall. Anticipate what kinds of responses you might get from your prospect if you used them. Select 1-2 to try next time you get this put-off.

They Won’t Return Your Calls

Mon, 31 Aug 2015 22:56:10 GMT

“I can’t get him to return my calls.”

Sales managers hear this all too frequently from their salespeople. The “hiding” game is played on a daily basis in selling. Prospects seldom seem to live up to their commitments to return calls, regularly placing salespeople in voice mail purgatory. Salespeople, frustrated by their inability to get their prospects to return calls, employ the only tactic they can think of which is to be persistent, leaving messages of ever-increasing desperation to “call me back.” Eventually, the prospect perceives the salesperson as a pest (which he undoubtedly has become) and the entire relationship becomes more and more strained. This is one of the most frustrating scenarios for salespeople. The

Rescue Call

is appropriate when you are engaged in an ongoing dialogue with a prospect and have left two or three messages over a period of 10-14 days

with the reasonable expectation of having the calls returned

. Left as a voice mail with the appropriate tonality, it goes like this:

“Bob, it’s Bill Smith with ABC again. I must admit

I’m a little confused

. Several weeks ago we agreed that our next step was to (specify what you agreed to do) and now

I can’t get you to return my calls

. I’ve left several messages and I’m starting to

feel like I’m becoming a pest

. Maybe I’ve

done something to upset you

, but I’m not sure what that might be. Perhaps you’ve just been really busy, but then again maybe you’ve decided to go in another direction and just weren’t comfortable telling me. In any event, I’m

not sure what to do

at this point. Our last conversation was positive and I’m interested in pursuing a business relationship with you, but maybe that’s not a mutual feeling. Anyway, I’d sure appreciate an update on things, so I can

close the file

if that’s the appropriate thing to do. Thanks.”

Yes, it’s a long message, but very effective. Here’s why: you’ve taken a very “not okay” position and put a bit of a guilt trip on the prospect. He feels like he’s the cause of your frustration and it makes him feel good to straighten the matter out and “put you back together psychologically.”

Skeptical? You’ll get your calls returned

quickly

75% of the time. (The other 25% probably deserved to have the files closed anyway.)

Self-Study Assignment:

Identify several prospects that are avoiding you to try this tactic. Write out what you will say and practice it using the appropriate tonality before you make the call. Also, be prepared for the possibility that you will actually reach the person and will have to deliver the message to him or her personally.

“I Need To Think It Over”

Mon, 31 Aug 2015 22:53:28 GMT

Salespeople continually hear prospects say, “I need some time to think it over.” Typically this occurs after the salesperson has made a proposal for the business. Unfortunately, this seems to be the standard response when people want to get rid of the salesperson without going through the hassle of saying “no” and then being pressured into changing their minds. Despite the fact that this statement is often misleading, the prospect knows it is effective because most salespeople will simply accept the “think if over” and agree to call back in a few days.

All too often “think it overs” are simply slow “no’s” with a free torture treatment.

This puts the salesperson in “chase” mode, requiring frequent follow up that typically results in a “no” anyway.

If you’re going to get a “no,” it’s best to get it early and move on.

You can avoid 75% of these scenarios if you have a good Closing Plan with your prospects. (See Core Competency #53.) However, if you neglected to do a Closing Plan and you hear this stall, here’s how to proceed. You need to blast through the BS and determine the prospect’s real meaning when he says he needs to “think it over.”

“Mr. Prospect, often when someone tells me they need to ‘think it over,’ I find that they’re just trying to be polite instead of giving me the bad news that they don’t think we’re a good business fit. Is that the case here? I’d rather hear ‘no’ now than spend a lot of time being a pest and chasing you around.”

The idea is to give the prospect an “easy exit” (See Core Competency #48) as opposed to pushing harder for a decision.

You’ll find that by making it safe for prospects to tell you “no,” they’ll open up and be more truthful.

If, in fact, you determine that there is a valid reason for the delay (and there sometimes is), ask the prospect to commit to a clear next step regarding when is a reasonable time to reconnect and specifically what will happen at that time.

Don’t be afraid to hear “no.” It’s not the end of the world. In fact, hearing it at the early stages of the sales process can save you a lot of time.

Self-Study Assignment:

How many times have you heard, “I want to think it over” from prospects who probably had no intention of giving you any business? How much time did you waste chasing them around when you could have been doing something more productive? Learn the above script so that you can get the prospect off the middle of the fence and either move forward or close the file.

Keeping Customers Satisfied

Mon, 31 Aug 2015 22:51:50 GMT

Winning the business is hard work. Keeping it is often taken for granted. Lots of attention is lavished on the prospect during the “courting stages” prior to the sale being consummated. Once the product or service has been delivered, attention to the customer often falls by the wayside as the salesperson looks for new opportunities. This is a big mistake.

Studies have been done that indicate people seek alternatives not so much because of poor quality or high prices, but because they don’t feel appreciated.

Most people have a subconscious

“satisfaction index.”

Subconsciously they form impressions of their vendor relationships. They assign adjectives to describe those relationships from highly satisfied to neutral to dissatisfied (and maybe a few other adjectives as well). How do we know we are satisfied with a business relationship? Simple.

Satisfaction = Performance – Expectations

Satisfaction is a function of actual performance versus expectations. If you want repeat business and a never-ending supply of referrals, exceed your client’s expectations.

Over-deliver

. This is the key to success in business. All too often salespeople (and the companies they represent)

over-promise and under-deliver.

They do not exceed their client’s expectations – just the opposite. Perhaps they are under pressure to win the business and are willing to exaggerate somewhat to improve the perception of their offering, or maybe they simply have an inflated belief in their product or service’s benefits. Whatever the reason, failing to exceed your client’s expectations makes your job that much more difficult.

Here are some simple ideas to exceed expectations:

Handle problems quickly and completely (with a smile).
Keep them informed, not surprised.
Give them something extra at no charge.
Go the extra mile when you have the opportunity to do so.
Make it a habit to thank them for their business on a regular basis.

Remember, your new customer is your competition’s best prospect.

Self-Study Assignment:

Take a few minutes to make two lists: things you do that create dissatisfied clients and things you can do to exceed their expectations. Evaluate your major client relationships

objectively

to determine their satisfaction index. Create action plans to correct problem areas.

Winning Negotiating Tactics

Mon, 31 Aug 2015 22:48:26 GMT

Attitude.

You must approach any negotiation with the right mindset.

Your objective should be to create a win-win result;

both parties need to be satisfied with the result. You should also be prepared to walk away if a win-win agreement cannot be reached.

Preparation.

Preparation includes the following:

Do your research.

Know as much information about the company you’re negotiating with as well as the individuals involved in the process. Information is power. Know what’s at stake for both parties.

Know your position.

What do expect to achieve? What does your ideal outcome look like? What is the worst possible circumstance in which you agree to do business?

The Fundamentals.

Here are three basics that will help you be successful:

Use a Meeting Agreement

to set the structure for the meeting. Try to establish the ground rules and take charge yourself. Discuss time, mutual objectives, and the possibility that an agreement may not be reached, necessitating a dissolution of negotiations if there’s no mutually agreeable outcome.

Ask questions.

You control the negotiation by asking questions and listening, not by monopolizing the conversation.

Don’t argue.

An argument will hurt any rapport you might have developed and sow the seeds of failure. Negotiating successfully depends on a collaborative effort to share information, not on trying to prove who is right or wrong.

Concessions.

Deal with concessions properly.

Never respond immediately to a request for a concession.

Take your time. A pause will add uncertainty for the other party. It will give you more time to consider your response, avoiding a snap judgment that you may regret.

Never make a concession without asking for one in return.

Unilateral concessions send the wrong message. If you are asked for a concession, you can simply respond, “The only way I could do that is if you could do something for me. I’d need you to ____________. How do you feel about that?”

Never give up a concession without giving the prospect the impression that they’re asking for too much. “A 5% price reduction! That’s going to be a tough one. We really don’t have a lot of room to spare.”
Let’s Pretend.

Present a hypothetical situation and ask the prospect what he would do. “Let’s pretend we could agree to that, what would happen then?”

Self-Study Assignment:

For your next negotiation, prepare a list of concessions you would be willing to give and another list of concessions you would like to receive. Rank them in order of importance to you and your prospect. Review this list before you start negotiating.

Common Negotiating Mistakes

Mon, 31 Aug 2015 22:46:07 GMT

In a business-to-business environment negotiating can be everything from a simple, one issue “give and take” to a very complex process requiring multiple meetings. Since most salespeople seldom formally enter “formal” negotiations, the intent here is to provide you with some basic negotiating tactics that will help you level the playing field.

The biggest barrier to success is that most salespeople are woefully unprepared to negotiate, since they are too emotionally involved in the outcome.

They simply want the business too badly to be objective.

Common Negotiating Mistakes

Getting emotionally involved.

Avoid statements like, “We’d really like to get this done,” as it indicates a willingness to do most anything to get the prospect to buy, and the smart prospect will try to see how far you actually will go.

Making unilateral concessions.

A unilateral concession is agreeing to a prospect’s request too quickly, without asking for anything in return. It demonstrates inexperience, and sends the message that you are willing to give in easily, encouraging the other party to ask for more concessions.

Not understanding the prospect’s pain and his alternatives.

This is your “ace in the hole” and without it you are defenseless. The more you understand about the prospect’s need to get something done and his options, the more leverage you have.

Talking too much.

When you are monopolizing the conversation it’s impossible to “read” the other party or learn what his specific needs are. You’re giving information, not receiving it. Falling into this trap is a sure way to lose. Remember the 70/30 rule.

Not understanding your own objectives clearly.

Failure to have worked out, in advance, your list of primary (best case) and secondary (fall back) objectives will create confusion and indecision for you. If you aren’t crystal clear on what your objectives are, you’ll just end up winging it. This is a certain path to disaster.

Not understanding the buyer’s tactics.

These include playing one supplier off against the other (”ABC Company can do it for me at this price”); the “flinch” (“Wow. That’s really expensive!”) accompanied by the proper body language and tonality; getting the salesperson to make the first offer, then negotiating from that point; and splitting the difference. All are designed to give the other party the upper hand.

The successful negotiator will avoid all of these mistakes.

Self-Study Assignment:

How many of the above mistakes do you make when you are negotiating with a prospect or customer? How do these mistakes impact your ability to be successful? Make a commitment to doing a better job the next time you have to negotiate something.

Dealing with Competition

Mon, 31 Aug 2015 22:44:13 GMT

The sale is made. You won and dislodged your competitor. But sometimes you still have a battle on your hands because the competitor doesn’t always depart gracefully. In fact, sometimes he takes one last, desperate shot at keeping or winning the business. It’s called

competitive retaliation.

Normally the competitor’s tactic of choice is to call your new customer and offer to lower prices to keep the business, but other incentives could be offered as well. Unfortunately, there are times when this tactic is successful. You’ll get a call from your new “customer” saying, “I just got a call from XYZ Company and they’ve lowered their prices. It’s a significant savings and I’ll have to go with them unless you can match their price.” Now that’s a call we all love to get, isn’t it? Here’s how to deal with it. Head ‘em off at the pass, so to speak. In a highly competitive situation, after your prospect has committed his business to you, you should say,

“Thanks for giving us the business. I appreciate it. But, you know, I have one concern that I’d like to share with you if I might.”

Your customer will ask you what it is, of course. And you’ll reply,

“This has been a very competitive situation, as you know, and I’m wondering just what XYZ will do when they find out that you’re giving your business to us. What do you think they’ll do?”

A typical reply might be, “Well, they’ll probably come back in and offer us a better deal or some other incentive to stay with them.” Your response, simply, is,

“If they do that, what will you do?”

This tough question takes some guts because you’re testing for bad news.

If they say that they’d have to consider it, then you know that the sale is not made. But at least you’re there, face-to-face, to deal with the situation. That sure beats getting the voice mail (date and time stamped well before or after office hours so they don’t have to talk directly to you) saying, “Sorry, our current vendor offered us a better deal and we’re going to stay with them.” All your hard work down the drain. In reality, it’s usually not bad news when you ask that tough question. If you’ve done a competent job qualifying, found lots of pain, and positioned yourself as a valued resource and not just a product pusher, you’ll feel great when they tell you that they have no intention of changing their mind because you are the best choice for them. Once they’ve made that commitment to you it’s more difficult for them to go back on their word.

Self-Study Assignment:

How often do your competitors retaliate when you have won the business? How often are they successful? Regardless of their success, get used to using this tactic whenever you’re in a tight competitive situation where this problem might occur.

Handling Buyer’s Remorse

Mon, 31 Aug 2015 22:42:38 GMT

Occasionally, a sale falls apart after it’s been made. In other words, the parties had agreed to do business, but something happened at the last minute to derail it. Usually

buyer’s remorse

happens when the purchaser has “second thoughts” about his decision. Something just didn’t seem right and he got cold feet. Buyer’s remorse is more of an issue in consumer sales than business to business: cars and insurance come to mind because the investment is significant in terms of total dollars or ongoing payments. Typically buyer’s remorse is caused by pressure – the salesperson pressuring the prospect to make a quick decision. Often a buyer will succumb to the pressure and agree to buy, only to have second thoughts later when he realizes the magnitude of the commitment he’s made. Sometimes, when the buyer has recourse to nullify the sale, he takes that option. That usually happens after the salesperson has left and cannot rescue the deal. Selling is not about arm-twisting a prospect into submission so you can make a buck. Selling is about helping people get what they want - about solving problems for people. You should always make sure your customer feels he made a good decision. Repeat business and referrals will be your reward.

Eliminating Buyer’s Remorse

Regardless of how much or little pressure is used to get the sale, there’s a very simple tactic to eliminate 90% of buyer’s remorse. You should always check for buyer’s remorse before you leave the meeting. You might say,

“Before I leave I’d like to make sure you’re totally comfortable with what we’ve agreed to do. If you aren’t, if you have any hesitation whatsoever, let’s talk about it.”

Whether you’re in a consumer sale or a B2B situation, testing to insure your customer is comfortable with his decision is a good thing to do. Nine times out of ten your new customer will reaffirm his decision to do business with you. But if he does have some unresolved issues, you are there to deal with them directly. Either way, you both win.

Self-Study Assignment:

How often does buyer’s remorse happen to you? Try to analyze why it happens. Insure you’re not putting pressure on the prospect to make a commitment. Make sure that you test for buyer’s remorse before you leave every successful sales call.

Traditional Closes & Trial Closing

Mon, 31 Aug 2015 21:59:43 GMT

Since selling has changed over the years from the simple, transactional sale to the more complex, high dollar relationship sale, salespeople need to be armed with as many weapons as possible. These traditional closes are most appropriate in a lower value, transactional sale. However, virtually all salespeople will find themselves in situations where these closes can be employed successfully, so they’re worth learning. The most appropriate time to use these closes is when the prospect has sent some

buying signals

(“I like what I see”…”looks good”…“this would work for us”…etc.) and has enough information to make a buying decision.

The Presumptive Close:

This involves simply assuming that the prospect has already made the decision to do business with the seller. Used correctly, it can be effective. Used prematurely, it can be seen as manipulative.

Prospect:

“This makes sense for us.”

Salesperson:

“When would you like us to start?”

Prospect:

“Let’s get started on the first of the month.”

Salesperson:

“I’ll call the office to get it scheduled.”

The Alternative Choice Close:

This involves giving the prospect two choices, both of which

assume

the sale has been made. In retail, they simply say, “Will this be check or charge?” Another example would be:

Prospect:

“Looks like this would be a good fit for us.”

Salesperson:

“Great. Would you like the $100 or $250 deductible plan?”

Prospect:

“I think the $250 would be best.”

Salesperson:

“I’ll write it up now.”

The Trial Close:

This close is often used to deal with objections. It gives the salesperson the chance to ask a “what if” question designed to bring the sale closer to completion. The traditional trial close concludes with, “Would we have a deal?” Not bad for a transactional sale, but it does put pressure on the prospect. You might consider saying, “What would happen then?” instead. Open questions always get more information than closed questions and are less pressure oriented.

Prospect:

“We like your products, but your prices are about 3% higher than

we’re paying our current supplier.”

Salesperson:

“I see. Let’s assume we could match that 3%. What would

happen then?”

Prospect:

“We’d have a deal.”

Self-Study Assignment:

See if any of these closes would be appropriate in your selling environment. Avoid using them when the sale is very complex, however.

Presenting Your Solutions

Mon, 31 Aug 2015 21:53:12 GMT

While some would put a great deal of emphasis on delivering a great presentation to close the business, what you do

before

your presentation, especially in the area of gaining a superior understanding of your prospect’s business challenges, is the most important part of selling in a complex, relationship sale. People usually develop buying preferences long before presentations are made. (The best investigators close the most business.) That being said, here are some presentation rules.

Rule #1. Never make a presentation until you have completed the qualification process.

Premature presentations cause premature rejection. You must understand the prospect’s challenges (pains) completely, you must have an idea about the monetary investment they would be comfortable with and you must understand their decision making process.

Rule #2. Never make a presentation to anyone who does not have the authority to make a decision.

If the decision maker is not present, you cannot get a commitment. You can only get a “think it over” or worse, have someone with no authority tell you “no.” Don’t trust anyone to sell your solution for you. No one else can do it as well as you can. Nothing but problems will result when you don’t present to the decision-maker.

Rule #3. Never overload your audience with irrelevant information that has nothing to do with the prospect’s pains.

Keep your presentation focused on the problems you’re being asked to resolve. Extraneous information can create objections and cause decisions to be postponed (“We’ll need to evaluate this new information.”) A good rule of thumb is to fix the problems first and save the “education” until later.

Always test for progress.

Throughout your presentation you should continually “test” for acceptance by asking questions such as…

“Are you with me so far?”
“Does this make sense?”
“Will this work for you?”
“Do you have any reservations about this?”
“How do you feel about what I’ve shown you?”

If you are doing a good job, you’ll get positive responses. If you run into hesitation or concern on the prospect’s part, deal with it before you move on.

When the prospect indicates acceptance, you should say: “What should we do now?”

Self-Study Assignment:

Take a few minutes to reflect on some of the presentations that you’ve made in the past month or so. How many of these ideas have you been using? Make a commitment to doing a better job of the three rules, and make sure you are always testing for progress when you make a presentation.

Closing Plans

Mon, 31 Aug 2015 21:51:11 GMT

Traditional selling approaches suggest that the “close” comes after the presentation is made. One-liners are memorized, salespeople are reminded to always ask for the business, and in high pressure sales salespeople are taught the ABC rule:

Always Be Closing.

However,

as selling gets more complex and trust becomes the key to winning the business, the traditional closes become less effective.

The Closing Plan accomplishes two very important functions:

It enables you to get a sense of what might happen if your presentation successfully addressed all the prospect’s pain issues.
It encourages the prospect to give you a clear decision at the end of your presentation.

All this is done

before

you make your presentation. 1. The first part is to

“test the waters”

before you present your solutions. This will give you a clear indication of your prospect’s readiness to accept your proposal if he perceives it as a good solution to his problems. You might say this:

“If you have the conviction that we can solve your problem and it makes sense financially, what will happen then?”

“If you felt that our solution was exactly what you need to eliminate these problems, and it fit your budget, what would you do at that point?”

If their answer is ambiguous, you may have to re-evaluate your decision to conduct an interview. 2. The second part of the closing plan is to agree on a date and time for the presentation, insure all the decision makers will be present, and

ask for a decision

at the end of the presentation. Here’s a good way to express this:

“Can you make sure that everyone who has a stake in this decision will be there for the presentation?”

and

“Can we agree that at the end of the presentation you could give me a “yes” or “no” answer? And if I miss the mark, I would expect you to say “no” to me. Is that fair?”

Using a closing plan will help you stay in control, get a conditional commitment before you present, and eliminate “think it overs.”

Self-Study Assignment:

What do you do now before you make a presentation for someone’s business? Make a commitment to establishing a good closing plan before your next presentation. Record both parts of the closing plan and listen to it regularly until you have it memorized.

Maintaining Your Price

Mon, 31 Aug 2015 21:38:39 GMT

Dealing with price objections is a constant challenge for salespeople.

It’s part of the territory, and here’s why.

We, as buyers, seem to be culturally conditioned to ask about price. You will always be tested. It’s part of the game.
As salespeople, we often send signals that we are willing to negotiate price in order to win the business. This exacerbates the situation.

You

may be part of the problem. Salespeople often send the wrong message.

The price is negotiable – “I want to work with you on this.”
They invite the customer to beat them up – “Tell me where I need to be.”
They encourage the customer to shop – “Check around. You’ll see that we’re quite competitive.”
The customer flinches (“Wow, that’s expensive”) and the salesperson caves in – “Let me see what we can do.”

With these realities, price often becomes an issue when it should be irrelevant.

The price issue will be raised, and you need to know how to deal with it. Suggestions:

The more pain you find, the less price will be an issue.
If

you

have reservations about your prices, overcome them.

Don’t ever be defensive about your price.
Just say “no,” “no,” and “no” again. The prospect will be more likely to give up if he sees you have conviction about your price.
Understand that you’re the only one who can cut your price…your competition can’t.
Reframe you discussion about price into a discussion of value.
Stop talking about “price” or “cost” and use

“investment”

instead.

If you can’t get your price, know that walking away is always an option.
If you must negotiate your price, get something of equal or greater value in return.

What to say:

“The real issue is not what it’s going to cost, but what’s the value of it once you buy it and implement it. And if it doesn’t bring more value than what it costs, then you absolutely shouldn’t do it.”

Self-Study Assignment:

How do you feel about the pricing of your products & services? Hopefully you feel your prices are entirely justified. If you are having trouble maintaining your target selling price, evaluate the suggestions above to see if they will help.

Handling Objections

Mon, 31 Aug 2015 21:36:43 GMT

Like it or not, you’re going to get objections. While they’re not always “our best friend” as some of the old time trainers say, there are some positives to objections.

They reveal the customer’s interests and concerns.
They present a good opportunity for you to ask questions about his concerns.
They show that the customer is actively involved and interested.
They give you an opportunity to sweep away potential roadblocks to winning the business.

Most salespeople wilt under the pressure that they feel when they get objections. They try to oversell and, in so doing, you create a more defensive prospect than you had before. Your ability to deal with objections successfully can improve communication and trust with the prospect, and ultimately win more business for you. Having a procedure for handling objections makes the job easier. Here’s a process that works.

Self-Study Assignment:

List several of the most common objections you receive (“your price is too high”…“your service is too slow”…etc.) and practice handling these objections using the above formula.

Clearing the Objection Minefield

Mon, 31 Aug 2015 21:31:22 GMT

The military clears a minefield before they move forward. They know (or suspect) that landmines exist and realize that failing to clear them will spell disaster. Selling is no different. Often we suspect that a landmine (a potential objection or roadblock) exists, but we typically ignore it in the hopes that it will disappear. Most of the time it doesn’t.

Successful salespeople are good at anticipating problems.

Here are some common problems (with their eventual stalls) that, if ignored, can sabotage even the best efforts to win the business.

When you think you might be denied access to the decision maker. (“Sorry, we have to take this to Fred for a decision.”)
When you are worried that the final decision will be based solely on price, and low price is not your strong suit. (“Your proposal was good, but we needed better pricing.”)
When you suspect that you are just being asked to provide a proposal so the prospect can use it to negotiate a better deal with your competitor. (“We wanted to give our current supplier an opportunity to respond to your proposal and they…”)

“My Biggest Concern”

When you encounter a red flag situation that looks like it has the potential to give you problems down the road, address it as soon as possible. For example, if you get some signals that their decision might be based solely on price, you might say the following (using the appropriate tonality):

“Bob, my

biggest concern

is that your decision will be based strictly on price. We’re competitive, but seldom the lowest price. Will that eliminate us from consideration?”

This forces you and your prospect to deal with the price issue now. You will likely get one of two answers:

“Yes” and then you can ask further questions to decide whether or not to disengage, or
“No” which will come with a more detailed explanation of their decision criteria and the relative importance of price.

This tactic is not intended to be confrontational. If you want to neutralize the landmines before they ruin your day, it’s a great tactic.

Self-Study Assignment:

Think back on the last few calls that you’ve made. See if you can recall situations where this tactic could have been used successfully. Write down how you might have handled each situation.

Improving Your Closing Average

Mon, 31 Aug 2015 21:29:26 GMT

A recent survey by

CSO (Chief Sales Officer) Insights

revealed the following dismal forecasting facts:

94% of forecasted sales are incorrect (they don’t close when forecasted or for the $ amount forecasted)
54% do not close at all, with…
30% of forecasted

sales

going to the competition, and…

24% of the time the buyer does nothing

This demonstrates that, by and large, salespeople don’t have much of a clue about what their prospects are going to do. There are two primary contributing factors:

poor qualifying skills

and

weak pipelines

where salespeople are hesitant to let anybody get away. Thus, salespeople are chasing “deals” that will probably never materialize, wasting their time, and creating attitude problems for themselves. Before you even agree to give the prospect a proposal, there are some serious questions you need to ask yourself. Give yourself a rating from 1-5 (highest) on each issue. If your total points don’t add up to at least 20 (out of a possible 35), you have to wonder why the prospect is even in your forecast.

understand the prospect’s problem

thoroughly and can provide, at a minimum, a satisfactory solution.

The prospect

has to do something

– it is NOT an option to do nothing. (If doing nothing is an option, they might very well select that option.)

The prospect has the

necessary resources

to solve the problem and is willing to spend those resources. (If they don’t have the money to invest in your solution, you’re wasting your time. Period.)

You have

access to the decision maker

and will make your presentation to him/her. (Never make a presentation to someone who can’t say “yes.”)

The prospect needs to implement a solution in a

time frame

that makes sense for you from a business standpoint. (Time kills deals.)

You understand the prospect’s

selection criteria

and have a reasonable chance of meeting them successfully. (If this is a price driven deal, for example, and your prices are normally higher than your competitor, chances are you won’t win the business.)

The prospect is considering only a

small number

of solution providers and is not putting the deal out to every competitor in town. (If the number of players still at the table is large, it only reduces your chances of winning.)

Self-Study Assignment:

Complete this analysis on every prospect to whom you are ready to deliver a proposal. If any score doesn’t exceed 20 points, determine whether you need to continue the qualifying process or pull the plug.

Eliminating Pressure

Mon, 31 Aug 2015 21:27:04 GMT

In martial arts the defender uses the attacker’s momentum against him. This involves

doing the unexpected -

beating the adversary at his own game. In selling, this technique, called

“going negative,”

is quite counterintuitive, but incredibly effective.

Instead of following the traditional selling tactic of trying to

push

the prospect into buying, the salesperson does the opposite, giving the prospect an “easy exit.”

It’s very disarming and completely removes any pressure to buy. Freed of pressure, prospects often open up and share more information than they ordinarily would. Here’s an example:

Prospect:

“I’m not sure what to do.”

Salesperson:

“Maybe the issue just isn’t as important as you thought.

Maybe we should just close the file.”

Prospect:

“No. We’ve got to do something.” Notice how the prospect “refused” to let the salesperson close the file. The prospect went from a confused state of vacillation to saying he needed to do something. It happened because the salesperson did the unexpected and removed the pressure.

The prospect provided the momentum to move the sale forward.

The salesperson simply got out of the way. If, in fact, the prospect said that closing the file was the appropriate thing to do, there probably wasn’t much pain in the first place, and closing the file might have saved everyone some time and preserved rapport. Using an easy exit (sometimes called a “

takeaway

”) can never hurt the salesperson, because if the prospect agrees, it’s easy to simply say, “I thought so.” Here’s another example:

Prospect:

“That’s really more than we wanted to invest.”

Salesperson:

“I see. Sounds like you have some serious reservations.”

Prospect:

“No, we really like your program. It’s just that our budget

is a little tight right now. Can you help us with some

payment terms?”

Warning:

Easy exits are not for everybody. They can’t be used in every situation, and

shouldn’t be overused

. Practice them in some non-critical situations to get used to them.

Self-Study Assignment:

Consider how traditional salespeople would put pressure on the prospect when an objection or stall came up, and the consequences of pushing too hard to turn the sale around. Make a commitment to learning the Easy Exit (Takeaway) in the next week or two.

Questions – The Salesperson’s Best Friend

Mon, 31 Aug 2015 21:03:21 GMT

The first step in becoming a good communicator is being able to control the direction of the sales interview with questions. In selling, the focus needs to be on the prospect, so getting him to talk is important.

When they don’t feel like the information they give will be used against them, people are comfortable answering your questions. The person who is asking questions, not the one talking, is in control. There are four basic types of questions that salespeople can use to get information.

Closed:

These solicit only a “yes” or “no” answer. These questions have a place in your repertoire, but the amount of information you might get will be limited, as they don’t encourage the prospect to provide much information beyond the simple “yes” or “no” answer. Examples are:

“Do you currently have a retirement program for your employees?” (Yes)
“Are you familiar with my company?” (No)

Open:

These are questions that must be answered with more than a simple “yes” or “no.” The six principal open-ended interrogatives are

who, when, where, what, why,

and

how.

These are great questions that encourage the prospect to speak in greater detail, which helps you in the investigation step. Examples are:

Who

will be part of the decision making process on this initiative?”

When

do you need to get a solution implemented?”

Where

are the system users located?”

What

are the major challenges you’re facing in growing your sales?”

Why

did you decide to invest in this technology?”

How

will you evaluate the options available to you?”

Encouraging:

Getting the prospect to provide answers to your open questions is one thing, getting him to elaborate and tell you more is still another. Here are some ways to do that:

“Is there anything else I need to know about that?”
“Interesting. Keep going.”
“Can you be more specific?”
“What does that mean?”

Leading (

not recommended

Leading questions are often manipulative as they attempt to “set-up” the prospect by soliciting only answers that are favorable to the salesperson’s cause. These types of questions have no place in a selling environment that relies on trust between buyer and seller. Examples are:

“You’d be interested in saving time and money, wouldn’t you?”
“You wouldn’t want to miss out on a good opportunity, would you?”

Let people talk. They won’t argue with their own data.

Self-Study Assignment:

Make a commitment to use more open and encouraging questions on your sales calls, and watch how much additional information you will receive.

Controlling the Sales Interview

Mon, 31 Aug 2015 21:00:55 GMT

During a typical sales call, there is a “tug of war” going on. A tug of war to see who can get the most information.

Your job, as a sales professional, is to get as much information as possible when you are qualifying an opportunity. Yet your prospective client feels

his

job is to do the same when he is exploring his alternatives, all the while taking care not to expose any weakness that might put him at a disadvantage. (See Core Competency #25.) The salesperson

must

have superior questioning skills.

The person who is asking the questions is in control of the direction of the conversation.

That should be you. On a typical sales call, your prospect has a number of questions to ask you to determine if he might want to do business with you. As you have undoubtedly experienced, prospects are quite skillful at turning salespeople into “unpaid consultants.” In order to achieve your objective of being a great investigator and obtaining lots of information, try a tactic called

rewarding and refocusing

It enables you to maintain control of the conversation by answering the prospect’s question (or respond to a statement) with a question of your own. A “

reward”

functions as a transition from the prospect’s question to yours, such as, “That’s a good question” or “I’m glad you asked me that.” The reward is then followed by a question

(refocus)

that relates to the prospect’s question. The intent is to keep the prospect talking until you can obtain enough information to deal with the issue effectively. It might sound like this:

Prospect:

“How would you solve a problem like this?”

Salesperson:

“That’s a good question. What have you tried so far?”

Prospect:

“Well, we’ve …” A word of clarification is necessary here.

This tactic is not designed to be deceptive or manipulative.

In fact, sometimes a

short answer

followed by a question is quite appropriate. “We’ve found that _____works quite well. What have you tried?”

Tip: You can’t put your foot in your mouth if it’s closed. Keep your prospect talking at least 70% of the time.

Self-Study Assignment:

Make up a short list of rewards (“I see”… “Okay”… “That’s interesting”…etc.) that you would be comfortable using. Practice rewarding & refocusing in non-threatening situations until you are comfortable with the concept. A word of caution – don’t over use this tactic. It’s not a game, just a conversation.

Getting Access to the Decision Maker

Mon, 31 Aug 2015 20:55:20 GMT

The more complex the sales opportunity the more complex the decision process will be. Salespeople must be very assertive in gaining access to the decision maker or risk losing the sale.

Failure to gain access to the final decision maker

(the one who can get the purchase approved and the check signed) will reduce your chances of getting the business by up to 50% and

is the number one reason why sales become stalled.

It’s important to understand that people who don’t have the authority to make decisions present you with two serious obstacles:

They can’t say “yes” (but they can say “no”), and usually just say, “maybe.”
They’re not very effective at selling your solutions to their superiors, certainly not as good as you would be.

When you are not at the highest level, you probably won’t even know the real issues the company is trying to rectify. You’ll easily

double your closing rate

by working harder to get yourself in front of the right people.

Here a few tactics for gaining access to the decision maker:

START AT THE TOP (Rule #1)
Assume it.

Early in the sales call ask, “When am I meeting with the decision maker?” If you get some resistance, you need to say, “I’m confused; why can’t I meet with her?”

Bargain for access.

Some lower level folks who want to protect their “turf” or are on an ego trip may deny you access until you’ve “proven” yourself. In cases like this it’s important to find out under what circumstances they would introduce you to the decision maker.

Justification.

Simply say, “I need to understand the issues from everyone’s point of view. If I don’t understand what the decision maker’s issues are, my proposal may miss the mark. That’s probably not a good strategy for either of us, is it?”

“Biggest concern.”

“My biggest concern is that I won’t be able to meet with the decision maker and that might hurt my ability to completely understand the company’s challenges and hurt my chances to ultimately present a really good solution. Can we try to avoid that?”

Asking for help

. People want to help other people. Use comments like, “I’ve got a problem and I need your help” or “I’m a little confused.” You’ll be surprised at how much mileage you get from this tactic.

Self-Study Assignment:

Make a list of the negative consequences that occur when you don’t have access to the decision maker and you have to present your solutions to someone else. Make a commitment to doing a better job of getting in front of the decision maker in the future.

Understanding the Decision Process

Mon, 31 Aug 2015 20:09:12 GMT

Once you’ve qualified the prospect for pain and financial issues, simply ask one of the following questions to lead into the decision process.

“What process will you go through to make the decision?”
“How does your company go about making a decision to invest $ _____ to fix a problem like this?”

The more complex the sale, the more information you will need to discover in order to gain a good understanding of the prospect’s decision process. There are

several key areas

you must ask understand.

The Players.

“Who has ultimate authority to make this decision, and who are the other people who will influence the decision?”

You need to understand where the authority for the final decision rests and what role the subordinates (influencers) play. It’s critical to conduct your sales efforts primarily with the decision maker, not the subordinates. Attempting to secure the business by working with people without real authority is a poor strategy, leading to extended sales cycles and low closing rates.

Timetable.

“When will you need to make a decision, and why is that date important?”

Their timetable often provides clues as to the severity of their pain and how they prioritize this business challenge. Their timing also will help you understand how to manage your time for this opportunity.

Decision Criteria.

“What criteria will you use to make this decision?”

Ask the prospect to explain these criteria and rank them from the most the to the least important.

Proposal Content.

“What do you need to see in the proposal so you’ll have all the information you need to make a decision?”

When you present a proposal, your objective should be to give the prospect the exact information that he needs to make a “yes” or “no” decision – no more and no less. This approach greatly improves your chances of securing the business.

Roadblocks.

“What roadblocks might you run into trying to get this implemented?”

Checking for roadblocks that could delay implementation of the solution helps to ensure that qualification is complete and eliminates surprises. If you can obtain answers to all of these questions, you’ve done a great job qualifying for decision process.

Self-Study Assignment:

Record the above questions along with the other qualifying areas (pain and resources), and commit them to memory. Add any questions that you think might be relevant to your situation.

Discussing Money

Mon, 31 Aug 2015 20:06:46 GMT

Understanding the financial details relative to the sale is critical. The following pieces of information are an important part of the qualifying puzzle:

The financial impact of the pain on the company and the prospect.
What the prospect is willing to invest to eliminate the pain.
The financial resources available (budget) to address the pain.

This area is critically important in a complex sale where you are selling expensive solutions. By doing a complete diagnosis and determining the cost of the pain, you are able to start building value for your eventual solution.

Here are a few good questions to ask:

“Do you have a budget to take care of the problem? What would it be, approximately?”
“What kind of resources has the company committed to fix the problem?”
“Can you put a finger on what the problem is costing you? Is that a lot of money for your company?”
“I suspect, based what you’ve told me and what we’ve for done for others, that you’re looking at somewhere between $_______ and $_______ to fix it. Is that kind of investment reasonable for you?”
“If it cost _____ , would you be willing to make that kind of investment?”
“If you came to believe we could fix it and it would cost somewhere in the $ ________ range, would that money be available?”

As a general rule both you and your prospect should be on the same page with respect to the problem’s approximate financial impact and how much your solution might cost before you agree to make a formal presentation.

Key Points

Budget must be addressed

after

the pain is uncovered, not before, since premature budget discussions tend to create early price resistance.

The prospect needs to convince you he would be willing to spend the money if he had the conviction your solution would work.
If the prospect’s budget is inadequate or if he’s unwilling to make the necessary investment, you don’t have a very good prospect.

Self-Study Assignment:

Make a list of the most critical things (besides the above) you need to find out from your prospects in the financial area and turn them into questions. Add whatever questions above are appropriate for qualifying for money and add them to the recording you made on the pain conversation. Then commit them to memory.

The Pain Conversation

Mon, 31 Aug 2015 20:04:05 GMT

The best investigators are the best closers.

What you do

before

you make the presentation, the diagnosis you perform on the prospect, is the most important element in a complex sale. When prospects believe you understand their challenges better than your competition does, they have more confidence in you as a solution provider. Think of the confidence you have in a doctor’s prescription after he completes an extensive diagnosis. Selling is no different. Discovering the prospect’s real pain is a process. It’s a series of questions that is designed to

take the prospect from an intellectual, big picture level to an emotional level describing personal consequences and commitment.

Here are the types of questions that will help you become a world-class qualifier.

When a prospect says,

“We’re just not getting the kind of support from our widget vendor that we need,”

you’d follow up these questions…

“Can you tell me a little more about that?”
“How long has this been a problem?”
“Why do you suppose it’s happening?”
“What’s the financial impact?”
“What have you done to try to fix the problem?”
“How did that work?”
“What happens if you don't fix it?”
“How does it affect you personally?”
“Who else besides you cares?”
“What priority does this have?”
“What does a perfect solution look like?”
“Do you think I have a good understanding of the issues you’re trying to resolve?”

Summarize and Feed Back!

“So what you're saying is..................”
“Let me see if I understand.................”

Keeping Buyers Talking

“What else is there?”
“Can you elaborate on that?”
“Is there more?”

Tip: The prospect must convince you that there’s a problem, that the problem is serious, and that it’s important to find a solution.

Self-Study Assignment:

Record yourself asking the above pain questions as if you were with a prospect. Be as realistic as possible. Listen to this recording over and over until you have the questions memorized. This is the fastest and most effective way to learn how to qualify for pain.

Pain Symptoms

Mon, 31 Aug 2015 19:57:59 GMT

Sometimes it’s easy. Sometimes the prospect simply gives you a description of his problem on a silver platter (at least as he understands it). But sometimes it’s not so easy. When it’s not, you must be prepared to initiate the pain discussion to determine whether or not your prospect has an issue you can help him resolve. A pain symptom is just the tip of the pain “iceberg.” There’s a lot more beneath the surface of the water.

Pain Symptom Questions:

You might try a few of these questions to encourage your prospect to start telling you about his or her pain:

“What are the main concerns you’re having with respect to_________?”
“What challenges are you facing that a ___________company like mine might be able to help you with?”
“Usually people come to us for help in one or more of the following areas (list 2-3 problems you solve for people). Are any of these issues for you?”
“We do many things for our clients to help them improve the results of _______________. So that I don’t run on about things that may not be of interest to you, why don’t you tell me which areas you might be concerned about.”
“When we set this appointment to discuss ___________, what kind of things were you hoping I would cover?”

When you ask questions like this, look for your prospect to make statements (pain symptoms) like:

“My sales are not where I want them to be.”
“Our current supplier is having problems with___________.”
“We’re having trouble processing all this paperwork efficiently.”
“I don’t think I’ll be able to maintain my current lifestyle when I retire.”
“Our system crashes frequently.”
“We’re spending too much on ____________.”
“We’re not happy with ______________.”

“No is okay.” Your Secret Weapon:

You must make it safe for your prospect to open up and have an honest dialogue with you without the fear of being “sold.” This means that before you start asking questions about issues and challenges, you must tell the prospect that if, after your conversation, it doesn’t appear that there might be a good fit between your two companies, he should feel comfortable telling you that.

Enabling your prospect to say “no” to you without the fear of being pushed into buying will build trust and open the lines of communication – a key to selling successfully.

Self-Study Assignment:

Identify several good questions that you would feel comfortable using to start the pain conversation. Practice them on your calls over the next few days to see how they work. Make adjustments if necessary. (See Core Competency #41 to find out how to conduct the pain conversation.)

What Motivates Your Prospect to Buy?

Mon, 31 Aug 2015 19:55:44 GMT

good

prospect will have some unresolved business or personal issues. Trainers commonly call this the prospect’s

“pain.”

It’s the difference between the prospect’s current reality (situation) and tomorrow’s expectations - the difference between what they have and what they want. If the gap is wide enough, they will take action. If it’s not, they will decide to live with the problem.

Motivation typically falls into one of three categories. They want to…

Resolve

a pressing business or personal problem (pain).

Achieve

something that would improve their situation (gain).

Avoid

something that has the potential to damage them (fear).

Curiosity is not a motivator!

If none of these are present, you do not have a prospect.

They will not invest in your product or service because there would not be a benefit to do so. Politely disengage from these folks quickly as they will do nothing but waste your time. Two other important characteristics of motivation are that’s it’s always

personal

, and must be

important

enough to take action. If there is no personal motivation…if your prospect is not impacted personally by the problem…there is no reason to do anything. That will seldom be the case, but if it is, you will need to find the person(s) who

impacted by the problem.

Motivation always relates to one (or more) of the following issues:

Time –

(will resolving the problem give me or my staff enough extra time to do other things?)

Money –

(will it save me significant money or create significant additional revenue?)

Security –

(will it provide me with more financial, personal, or job security?)

Status –

(will it improve my status with my peers and my superiors?)

Problems always fall into one of two general categories:

Business (or personal) problems

– (our sales are off; we need to improve our company’s image; we need to fund our retirement better; etc.)

Product or process problems

– (we need to decrease the backorder rate on our widgets; our current accounting system is not geared up to meet our growing revenue; etc.)

Self-Study Assignment:

Review the top five prospects you are currently working with. Determine for each what their motivation is (resolve, achieve, or avoid), which issue(s) it relates to (time, money, etc.), and which category the problem falls into. This will give you much greater insight into why they might buy from you.

Selling Has Changed. Have You?

Mon, 31 Aug 2015 19:52:40 GMT

Years ago, the typical sale was transactional in nature. Small dollar deals were consummated in one meeting. Products were seen as commodities and were sold that way. The pressure on the seller was tremendous since he knew he usually had but one chance to close the deal. If he didn’t get the business, his competitor would. Faced with that challenge, sellers were trained to use manipulative techniques in an attempt to gain the upper hand.

Selling has, indeed, become more difficult.

Today the typical sale has become more relationship oriented and far more complex. The reasons for this are:

The typical sale has become larger in dollar terms.
Buyers have become more sophisticated and more knowledgeable.
The impact of a poor buying decision becomes greater as the dollar amount of the sale increases.
With greater risk, companies often involve more people in the decision process, which extends the sales cycle.
The relationship between the vendor and the client often continues for some period of time, perhaps indefinitely, so

trust is critical.

People are looking for

problem solvers, not product pushers.

“Day by day, nothing seems to change, but pretty soon…everything’s different.”

Calvin, of Calvin & Hobbs

Salespeople have had difficulty noticing the change, and adjusting their selling approach.

You should

not

use the same strategies and tactics to sell an expensive, complex solution that you would use to sell a simple, low-tech product such as furniture, cell phones or even cars.

Here’s a comparison of the skills needed for the different types of sales.

You may find that your selling environment has elements of both types of sales, and lots of gray areas in between.

For example, opening a new account with a company that will place orders on a regular basis may be more complex and relationship oriented. The regular orders you receive are more transactional in nature. Make sure you use the right selling tool for the job.

Self-Study Assignment:

What type of sale do you find yourself in? Think about what happens when you use the tools for a simple sale when you are in a relationship sale, and vice versa.

The Qualified Prospect

Mon, 31 Aug 2015 19:47:58 GMT

Most salespeople can’t tell the difference between a SUSPECT and a PROSPECT!

suspect

is a company or person who would

seem

to have the right demographics and psychographics to be a prospect, but has yet to be qualified. Some suspects do not become prospects. A

prospect

is a company or person that

has three qualities

Pain:

They have a problem that your product or service can resolve. If they are buying what you sell from a competitor and there is some dissatisfaction, they have pain. If they are satisfied, they are not a prospect. (No pain, no change.)

Resources:

The have adequate resources (money, etc.) to buy and implement your product or service.

Authority:

They have the authority to make the decision to buy your product or service.

The only way your can effectively qualify a prospect is to ask questions.

There are no shortcuts. You have to do it. Yet when it comes to qualifying, salespeople take shortcuts. Qualifying a prospect can be “risky!” After all, the more questions you ask, the greater the probability that you will discover something that might

disqualify

the prospect. Then it’s back to the task of more prospecting. So salespeople choose not to ask the hard questions, making assumptions instead. Every time your assumption is wrong, you diminish your chances of making the sale.

Here are a few of the most common assumptions:

Everybody needs what I sell. (Yes, and everybody needs a refrigerator, but if yours works okay, will you buy another one?)
Anybody who buys from a competitor is a good prospect. (Try selling somebody who is really happy with your competitor.)
When they hear my sales pitch, that’ll get their attention! (They’ve heard it all before.)
She said she was the decision maker – it must be so. (How many times have you bought that line 100% and found out it was a lie?)
The problem must be serious; I’m sure they’ve got to do something. (Unless they told you that it’s serious, this is a very bad assumption. It’s easier and less threatening for the prospect to maintain the status quo. That’s why 25% of the proposals salespeople present are never acted upon.)

Self-Study Assignment:

How effective are you at qualifying your prospects? Think about some of the deals you’re currently working on. Do you have a really good understanding of their pain, resources, and authority? If not, make a list of the areas where you need to do a better job and try to be more thorough on your next call.

Common Sense Selling® Overview

Mon, 31 Aug 2015 19:46:03 GMT

You’re familiar with the buyer’s process and the traditional seller’s response (see Core Competency # 25). The traditional feature & benefit selling approach has seen its better days and is ineffective in complex sales today. Obviously, if it’s not working it needs to be changed. So, here’s a sales process that has been proven to work well in over 200 different industries. Called

Common Sense Selling

, it was developed specifically to deal with the buyer’s process and the inefficiencies of traditional selling, and it works! Here are the steps:

Opening Meeting Agreement:

Designed to accomplish several important things - set mutual expectations and agendas for the meeting, remove pressure, build trust, and put the salesperson in control of the process.

Investigate:

Qualify the prospect in terms of their pain, resources, and decision process.

Closing Plan:

Set expectations for the presentation; find out, before you present your solutions, what would happen if the prospect felt your solutions were a good fit.

Present Solutions:

Show your prospect how you will eliminate the pain and get agreement to form a business relationship.

Implementation:

Deliver your solutions as promised.

Monitor:

Insure you are exceeding their expectations so you can increase your business with your client and get referrals.

Common Sense Selling® insures that the following benefits are achieved:

A high level of trust is developed and maintained with the buyer.
A thorough diagnosis is completed

before

solutions are presented.

The prospect’s buying motives are engaged at an emotional level, as opposed to a intellectual level.
The prospect is given freedom of choice; traditional pressure tactics are not used.

Having a good selling process has many benefits for you. Among them are:

You are able to troubleshoot when things go poorly and learn from your mistakes.
It’s easy to stay on track and know how you are progressing.
You will be more comfortable and obtain better results.

“A good sales process can turn ordinary mortals into rock stars.” Neil Rackham, author of

SPIN Selling

Self-Study Assignment:

Do you have a sales process? Can you list the steps in your process without having to think twice about it? Does it resemble Common Sense Selling or is it closer to the traditional Seller’s Process mentioned in Core Competency #25? If it’s more traditional, consider the benefits of incorporating some new ideas today.

Making a Great First Impression

Mon, 31 Aug 2015 19:35:24 GMT

When you meet someone for the first time, subconsciously you form an opinion of that person in the first few seconds. These are called snap judgments, and they’re formed in the “blink” of an eye. In fact, best selling author Malcolm Gladwell’s book

Blink

supports this theory. Right or wrong, the first few seconds of your first meeting with a prospect can determine the success or failure of your efforts. Therefore, first impressions are extremely important, and you’d be smart to put your best foot forward. Here are a few things to remember if you want to make a great first impression.

Dress professionally, yet appropriately for the occasion.
Be on time – actually five minutes early is perfect.
Relax and take a deep breath before you go in. Remind yourself that this call is not a life and death situation.
Smile.
Be ready with a sincere “Good morning, Lisa. Thanks for taking the time to see me.” or “Hi, Bob. It’s nice to meet you.” “Howyadoin?” doesn’t win many points unless you’re calling on beer joints in Brooklyn.
Match the person’s handshake. If they give you a limp handshake, back off from your usual vice-grip.
Look them in the eye (but don’t overdo it).
If they ask you if you want coffee or water, decline unless they are having something to drink. Then walk back to the coffee place with them. They’re not your server.
Don’t sit down until they offer you a chair and sit up straight.
Know exactly what you will say to open the meeting, just in case your prospect gets lockjaw. You could mention something you saw in the lobby that caught your interest; you could have a question ready about something you discovered in your pre-call research.
Be as prepared as possible for the meeting – it will boost your confidence tremendously. (Core Competency #11)
Make sure you’ve paid attention to personal hygiene issues before you arrive.
If you’re a smoker, be aware that the tobacco smell on your clothes and breath is offensive to some people these days.
By all means be ready with your Meeting Agreement. (Core Competency #35)

Self-Study Assignment:

Think back on some meetings you’ve had with customers, prospects, or even salespeople where the first impression has been either extremely negative or positive. What happened to create that first impression? Evaluate your approach with new people you’re meeting and incorporate as many of the above ideas as possible.

Controlling the Sales Process

Mon, 31 Aug 2015 19:32:55 GMT

As demonstrated in

The Buyer’s Trap

(Core Competency # 25), salespeople seem to have lost their ability to take and maintain control of the sales process. The Meeting Agreement is one of the best sales tactics ever to regain control and build an incredible amount of trust with the buyer. This simple, yet overlooked tactic will separate you from your competition and put new energy and success into your selling.

The Meeting Agreement (Remember “TAP Dance”)

Obviously this is a very elementary example of a Meeting Agreement. The words can (and should) be changed to fit the situation and the individual’s style.

Where to use Meeting Agreements

At the beginning and end of every meeting.
After you’ve made a future appointment on the phone, set the Meeting Agreement. Reconfirm it when you arrive for the meeting.

Benefits of using Meeting Agreements

We ensure that we have enough time to have an effective meeting.
Both parties understand the purpose of the meeting.
The salesperson has permission to ask questions, and the prospect understands that the salesperson is trying to understand his situation completely in order to be a problem solver, not a product pusher.
The prospect knows he has permission to say “no” if there’s not a fit. This removes any hint of sales pressure.
If the meeting is a success, a specific next step will be discussed. The often-heard response, “I need to think it over,” is eliminated.

Self-Study Assignment:

Develop your own Meeting Agreement for a first meeting with a prospect. Make sure you are comfortable with the words. Run it past your manager to make sure it fits the above criteria. Practice it until you are comfortable delivering it smoothly and professionally. Remember, the fewer words, the better.

The Trust Formula

Sun, 30 Aug 2015 23:29:59 GMT

Selling is a business of trust. The more complex the sale, the greater the investment necessary to resolve the problem, and the greater the need to have absolute trust between the buyer and the seller.

You would not spend large sums of money on an important project with a company or a person in whom you had little trust. According to Webster, trust is defined as the

confident expectation of something

. In sales, often the prospect’s “confident expectation” is that the salesperson will use manipulation, may over-promise and under-deliver, won’t take “no” for an answer, etc. Salespeople start out with two strikes against them. Here’s a unique way to look at the components of trust from a selling perspective.

Rapport.

This is the personal feeling or connection we have with someone; how much we like or dislike them as a person. Elements could include friendliness, common interests, etc.

Reputation.

The external perception that you or your company has in the eyes of others is an important element in determining trust. Elements could include client lists, testimonials, business history, service to the community, etc.

Reliability.

The ability to demonstrate to clients that you are reliable and can be trusted to behave in a consistent manner is also important. Elements might be prompt communication, being on time for meetings, meeting deadlines, etc.

Self-Interest:

Obviously, earning as many points as you can in the above areas can build trust to a high level. However, all your “credits” can be nullified by what your prospect considers your self-interest, your eagerness to make a sale without regard to the prospect’s welfare (and possibly at his expense). Talking too much, pushing too hard for the sale, etc. sends a message that your self-interest is high. Do the math! If you can earn 10 points each for rapport, reputation, and reliability you have 30 points. If your prospect believes your self-interest is low (as it should be), let’s say a 1, you have a trust factor of 30. However, if your prospect thinks your self-interest is high, let’s say a 10, then your trust factor is 3. You’ve lowered your trust factor by 90%! That’s a fatal mistake and will cost you the sale every time.

The point is that it’s all about the prospect - not about you!

Self-Study Assignment:

List 2-3 additional elements for each of the four factors that make up the trust formula. Pay special attention to the self-interest area and identify anything that you personally are doing that would cause your prospect to conclude that you are more interested in helping yourself than helping him. Then stop doing it.

Matching & Mirroring

Sun, 30 Aug 2015 23:19:59 GMT

Consciously communicating with someone in a style that is similar to his or hers is called

matching and mirroring

. It is a subtle communication expressed through

body language, tonality, and words

. Remember, all things being equal,

people do business with people they like…and they like people who are “like” themselves.

Matching & mirroring is not designed to be manipulative or obvious, but instead very subtle. The objective of matching & mirroring is to create a level of comfort, so that the other person gets the feeling that you are “just like them.” Take a closer look at the three elements that are the foundation of communication.

Words

(7% of the total message) – When talking to prospects, don’t talk up (use big words) or down. Use words that are at the same level as those used by your prospect. Avoid buzzwords and jargon that may be unfamiliar to your prospect; otherwise, you run the risk of confusing them and making them feel uncomfortable. Listen for their favorite words and use them, unless to doing so would seem manipulative.

Tonality

(38%) - You remember when your mother said, “Don’t use that tone with me!” Tonality is how we sound when we speak. Your tone is 4-5 times more important than the words that you use. Tonality includes how fast or slowly we speak (pace), how loudly or softly we speak (volume), how high or low our voice is (pitch), and whether we are animated or speak in a monotone. Think about this. What does a slow speaker think of a fast speaker?

(He’s trying to put something over on me.)

What does someone who speaks softly think of someone with a big, booming voice?

(What a loudmouth!)

Our perceptions are heavily influenced by what someone sounds like. It may not be fair, but it happens. People like people who sound like themselves.

Body Language

(55%) - Body language is the message that you communicate with your body. It might start with a handshake. Remember the old rule…

always have a firm handshake

? Basically, it’s a good rule, but not in all cases. What does someone that has a weak handshake think of someone that has a strong handshake?

(Aggressive and overpowering.)

You communicate with your smile, your posture and your eyes. Remember the old rule about always having direct eye contact? That too may be misleading. You’ve met people who never seem to want to “look you in the eye” haven’t you? Attempting to draw them into a lot of eye contact may make them uncomfortable. It may be too intense, too intimidating for them.

Self-Study Assignment:

The next time you are in a public place, like a restaurant, watch two people sitting together. Try to determine from their body language whether they are in or out of rapport. On your next sales call, pay close attention to the customer’s body language and try to mirror it slightly without being obvious.

Selling To Controllers (C)

Sun, 30 Aug 2015 23:18:03 GMT

Controllers (often called

analyticals

cautious thinkers

) live a very disciplined, logical life. They focus on the details, avoid quick (risky) decisions, and hate to make mistakes. They are skeptical of most salespeople’s claims unless backed up by volumes of data. You will often find them in technical or financial positions. They make up just 14% of the population.

Initial Impression

They tend to be reserved, analytical, and skeptical.

Tendencies

Work well alone
Like procedures, structure, and following the rules precisely
Like the details, often having ”analysis paralysis”
Not big risk-takers; dislike change
Highly organized
Hate to be wrong
Avoid conflict and confrontation; very diplomatic
Have high expectations of others
Task oriented

How To Communicate

Don’t mistake their willingness to go along for satisfaction.
Don’t try to become their “buddy” too soon.
Don’t get too close; respect their “space.”
Don’t interrupt them.
Get down to business quickly.
Listen carefully and show sincerity.
Tone of voice should be controlled, direct, and precise.

How To Sell

Don’t force them into a quick decision
Don’t act like a salesperson.
Provide details, facts, and proof as they are not risk-takers
Use words & phrases like proven, here are the facts, guarantee, take your time, etc.
Be conservative regarding any claims you might make.
Be very well prepared.
The color yellow attracts their eye.

Self-Study Assignment:

Identify several Controllers in your customer/prospect database as well as several Controllers in your personal or business life. On a scale of 1-5 (best), how well do you get along with them? Make a list of the things you will do differently to relate to them more effectively.

Selling To Steady Relaters (S)

Sun, 30 Aug 2015 23:15:46 GMT

Steady Relaters (

amiables

) are great team players, yet more reserved by nature than influencers. They like stability, and are warm and accommodating to others. They dislike risky situations and place trust as a high priority in relationships. They make up 40% of the population.

Initial Impression

They tend to be reserved, but friendly and cooperative.

Tendencies

They don’t readily show their emotions; they are hard to “read”
Like procedures, structure, and a steady, calm atmosphere
Like the details
Not big risk-takers
Dislike change
Will accommodate requests, even if they are busy
Good listener
People oriented

How To Communicate

Don’t mistake their willingness to go along for satisfaction.
Be friendly and try to build a personal relationship.
Don’t interrupt them.
Take time for friendly chitchat.
Listen carefully and show sincerity.
Tone of voice should be warm, soft, steady, and calm.

How To Sell

Don’t force them into a quick decision.
Provide facts and proof to overcome their fear of risk.
Use words like

guarantee, security, promise, etc

Present your ideas slowly.
Get “little” agreements throughout.
The color blue attracts their eye.

Self-Study Assignment:

Identify several Steady Relaters in your customer/prospect database as well as several Steady Relaters in your personal or business life. On a scale of 1-5 (best), how well do you get along with them? Make a list of the things you will do differently to relate to them more effectively.

Selling To Influencers (I)

Sun, 30 Aug 2015 23:13:10 GMT

Animated, energetic, and friendly, influencers (also known as

extroverts

socializers

) are great talkers, but poor listeners. They are optimistic and trusting, and relationships are their top priority. Rejection is very difficult for them. They tend to live an undisciplined, fast-paced life. You’ll often find them in positions that require lots of contact with other people, like sales. They make up 28% of the population.

Initial Impression

They tend to be outgoing and friendly.

Tendencies

Will monopolize the conversation
Tend to be disorganized and lose track of time
Everybody is their friend
Overly optimistic about everything
Not concerned with the details
People oriented

How To Communicate

Ask lots of questions about them.
Be friendly and try to build a personal relationship.
Don’t be impersonal or task oriented.
Take time for friendly chitchat.
Tone of voice should be enthusiastic and animated.

How To Sell

Talk about the recognition they will get.
Mix business with social events (lunch, etc.).
Use words like

exciting, fun, etc.

Emphasize the good feelings they will have.
Talk about their dreams and visions.
They like showy, innovative products.
The color red attracts their eye.

Self-Study Assignment:

Identify several Influencers in your customer/prospect database as well as several Influencers in your personal or business life. On a scale of 1-5 (best), how well do you get along with them? Make a list of the things you will do differently to relate to them more effectively.

Selling To Drivers (D)

Sun, 30 Aug 2015 23:10:42 GMT

Drivers like challenges and want to be in control. They are big-picture oriented and hate the details. They like to make important decisions on key issues, and then delegate the rest of the work. They are risk-takers, goal-oriented, and very businesslike. Sometimes called Type A personalities, you’ll often find them in positions of authority. They measure success by the results they achieve. They make up 18% of the population.

Initial Impression

They tend to be extroverted and direct.

Tendencies

Can be argumentative & aggressive
Quick to anger
Want to win, sometimes without regard to the costs
Will try to dominate the conversation
Competitive, with a win-lose philosophy
Task oriented

How To Communicate

Set a clear agenda with a Meeting Agreement.
Don’t ramble on and waste their time.
Don’t try to build personal relationships or chitchat.
Be well prepared and organized.
Tone of voice should be strong, clear, confident & direct.
Disagree with the facts, not with them.

How To Sell

Talk about the big picture & results they will achieve.
Provide facts & figures and probabilities of success, but don’t overly dwell on the details.
Use power words like

bottom line, results, be the best, new & unique

Provide alternatives for consideration.
Move quickly, as they want to make a decision and move on.
The color green attracts their eye.

Self-Study Assignment:

Identify several Drivers in your customer/prospect database as well as several Drivers in your personal or business life. On a scale of 1-5 (best), how well do you get along with them? Make a list of the things you will do differently to relate to them more effectively.

Poor Listening Habits

Sun, 30 Aug 2015 23:07:39 GMT

All of us have some poor listening habits that we may be able to get away with when talking to family or friends. In a business environment, however, one must leave these bad habits behind.

Here are just a few common bad listening habits.

You do all the talking.
You interrupt when people talk.
You never look at the person talking or indicate that you are listening.
You continually toy with a pencil, paper, or some other item while talking.
Your poker face keeps people wondering whether you understand them.
Because you never smile you come off as too serious.
You change what others say by putting words in their mouth.
You put people on the defensive when you ask a question.
You ask a question about what has just been said, showing you weren’t listening.
You start to argue before the other person has a chance to finish.
Everything that is said reminds you of an experience you’ve had and you feel obligated to digress with a personal story.
You finish sentences for people if they pause too long.
You wait impatiently for people to finish so you can interject your own comments.
You overdo the feedback you give – too many nods or the head or “uh-huh’s.”

Every one of these sends a clear message to your conversation partner that they are not important to you and, as such, contributes to lowering levels of trust and rapport. We subscribe to the

70/30 theory.

Since you were given two ears and one mouth, you should endeavor to use them in that proportion.

It’s far better to be interested, than to be interesting.

There are two types of people. You know them well. Those who come into a room and say, “Well, here I am,” and those who come in and say, “Ah, there you are.” Which one are you?

Self-Study Assignment:

How many of these poor listening habits are you guilty of? Make a list of the things you will stop doing immediately and how those improvements will help you.

Active Listening

Sun, 30 Aug 2015 23:03:47 GMT

People need to trust you in a selling situation. They need to feel comfortable opening up to you and sharing their concerns, fears, and hopes. You need to be viewed as a trusted advisor to succeed in sales.

An important part of gaining someone’s trust and being a good communicator is to be a great listener.

Next to survival, one of the greatest needs we have as human beings is the need to be understood.

Known for their “gift of gab,” salespeople, unfortunately, seem to spend most of their time in

transmit

mode when they should be in

receive

mode.

Poor listening habits can lead to numerous misunderstandings and conflicts. Research indicates that, on average, we retain about 50% of the main content of a ten-minute speech immediately after listening to it. A conservative estimate is that most people retain no more than 25% of what they hear after two days. People often listen with the intent to respond, instead of listening with the intent to understand. Basically, we communicate in four ways. We speak, we write, we read, and we listen. The first three we learned in school, but we were not taught the most important part of communication – how to listen. As a result, most people are poor listeners, even though it is one of the most prized inter-personal skills. We typically listen at one of the following levels:

Prospect says, “We won’t hit our numbers this year.”

Add some of these types of active listening responses to your repertoire and watch your ability to communicate more effectively skyrocket.

Self-Study Assignment:

Are you a good listener? Are you dominating the conversation, or practicing active listening? On your next call, make a concerted effort to be a better listener, and see how much more information you are able to get.

Common Mistakes That Destroy Trust

Sun, 30 Aug 2015 22:59:01 GMT

Selling is often characterized as adversarial; there’s a winner and a loser. No wonder selling has a bad reputation.

It’s amazing the number of ways salespeople have found to shoot themselves in the foot and mess up rapport.

If the salesperson wants to become a valued resource to the buyer, open communication is critical. However, prospects typically do not trust salespeople. They feel uncomfortable, pressured, and possibly even threatened. As a result, they resist open communication, preferring to withhold important information so that it cannot be used against them. Salespeople often exacerbate the situation in many unintentional ways, including the following:

Being so upbeat and positive that it’s obnoxious.
Manipulating the prospect by asking leading questions or using other tricky sales tactics.
Not being willing to accept “no” from the prospect and pushing too hard to make the sale.
Taking too much time.
Talking too much.
Acting like his product or service is something everybody needs.
Using a canned presentation.
Using buzz words or jargon that the prospect doesn’t understand.
Being late for the appointment.
Making an obviously insincere comment about something in the prospect’s office to break the ice.
Having a cell phone go off during the meeting.
Presenting a solution before doing a complete diagnosis.
Popping surprises, like bringing the boss along without telling the prospect.
Being unprepared.
In general, acting like a salesperson will destroy trust and rapport.

Sales resistance is not a natural part of the sales process; it’s a direct result of the salesperson’s behavior. To eliminate sales resistance, the salesperson must change his behavior.

Self-Study Assignment:

How many of the things on this list are you guilty of? Make a short list of the changes you need to make immediately in order to improve rapport and trust with your customers and prospects.

The Buyer’s Trap

Sun, 30 Aug 2015 22:56:57 GMT

It takes two to tango, and here’s a dance that’s been going on for a long time.

The leader is the prospective buyer, and his salesperson “partner” eagerly follows in perfect rhythm.

This scenario is played out tens of thousands of times every day, to the point that it has become conventional wisdom that this is just the way selling is done.

But now it’s time for salespeople to

WAKE UP!

A closer look at what’s happening shows that this process gives the buyer a huge advantage. It demonstrates how the buyer fights for control because he distrusts you (after all, you’re a salesperson), turns you into an “unpaid consultant,” and accomplishes his objectives 85% of the time.

How do you know if you are being seduced into the buyer’s trap?

You get put-offs instead of decisions and your sales cycle seems endless.
Your closing rate is about 20%, or lower.
You’re never really sure of what will happen next.
You’re frequently being asked to drop your price to get the deal.
You seldom have access to the real decision maker.
You’re frustrated because selling isn’t as easy as you thought it might be.

What can you do about it?

Change your approach. Get a better sales process. (See Common Sense Sellingâ in Core Competency # 37.)

Self-Study Assignment:

Take a few minutes to examine some of the deals you are currently working on. How many are being conducted by the prospect’s “rules”? How is that affecting your ability to succeed? The sooner you recognize how powerful the prospect’s system is, the sooner you will begin to change your approach.

Features & Benefits

Sun, 30 Aug 2015 22:48:39 GMT

“Features & benefits” have been a selling “staple” for many years. Salespeople have been trained on product knowledge and told to educate their customers about “our features and benefits.” This is a strategy that has seen its better days. F&B was the right strategy when the salesperson’s job was to educate the prospect about the various components of a product (the features) and how those components would be useful (the benefits) to the customer. Today, in the “information age,” customers have ready access to this information via the internet and other sources, and the salesperson’s role has changed.

The salesperson is expected to add value by being a problem solver, not a product pusher

spouting features & benefits and wasting the customer’s time. As selling changes from the simple, transactional sale to the more complex, relationship sale, selling F&B becomes less and less effective. Yet companies and their sellers continue to focus on F&B, with increasingly unsatisfactory results. Here are some of the problems you’ll encounter selling F&B if you’re in a complex sale where relationship and trust are paramount.

The commodity factor.

Compare your features to those of your competitors. How similar are they? Chances are good that you’re telling pretty much the same story. When companies look alike, you appear as a commodity in the eyes of your customer. Then you’re selling on price.

The retention factor.

When you pitch features and benefits, your prospect will not recall much about the details, and half of what he might remember will be wrong. People forget quickly, so what’s the point?

The enthusiasm factor.

If the prospect was enthusiastic about your presentation, but was unable to make a decision when you made the presentation, what happened to the enthusiasm after one week? If you said it diminished, you’re correct.

The “trapped” factor.

After you have presented your F&B there is only one thing left to do – you’re trapped into asking for the business. From this point on every time you contact with the prospect it is associated with bringing the sale to a close, and the pressure associated with closing.

If you’re in a complex sale, learn how to uncover the prospect’s pain. If you’re in a transactional, low value sale and have but one chance to close your prospect, keep selling features & benefits.

Self-Study Assignment:

Each of your product’s features was developed to address a pain that your typical customer has. Select several features and try to determine what problem this particular feature addresses. For example, a 24-hour customer service hot line (feature) might have been installed because clients were frustrated that they couldn’t get answers to problems 24/7 (pain).

Networking

Sun, 30 Aug 2015 22:45:16 GMT

Networking can be a great place to develop relationships that can lead to business, if you do it right. But there are some definite rights and wrongs to networking.

Definition:

A network is a group of people with whom you have a relationship through which you can send and receive information, introductions, and referrals that contribute to your business success. The best places to network are civic or business organizations; the worst, generally, are leads clubs.

How can you make your networking efforts more successful?

Get on a committee and become involved.
Have a clear purpose when you go to the event.
Prepare well – have your elevator speech ready when they ask you, “What do you do?”

The five things you should

not

do at networking events.

Don’t spend all your time with friends. 2. Don’t spend all your time with one person. 3. Don’t sit at an empty table. 4. Don’t sit in the back row. 5. Don’t sit by an empty chair.

What are the five most critical questions you should ask someone?

“What brought you here today?” 2. “What does your company do?” 3. “What do you do with the company?” 4. “What is your target market?” 5. “What can I do to help you in your business?”

When you get a business card, take time to write the following information on the back of the card.

Grade the card: A is a potential referral source, B is a potential prospect, and C has no potential (toss the card). 2. A bit of information that will help you remember them. 3. Date & event where you met them.

The best way to conclude a conversation with someone whom you would want to have further dialogue with is to say,

“I enjoyed meeting you. Looks like we have a similar target market and may be able to help each other develop business. Are you open to discussing this further? Can I call you tomorrow?”

Self-Study Assignment:

When was the last time you attended a networking event? How successful were you? Make it a priority to attend at least two events to in the next 30 days and memorize the questions to ask.

Upgrading Your Referrals

Sun, 30 Aug 2015 22:24:15 GMT

When receiving a referral, most salespeople are quite happy to get a name and a number to call. They thank the referring source and then start the process of

making a cold call

on the (often unsuspecting) referral. This is usually a frustrating process that yields poor results.

A better way is to “upgrade” your referrals. Here’s how.

When you get a referral from someone, here are a few steps to follow with the referring source:

Probe for pain:

“What problems does he have that you think I could help him with?”

Solicit their help in making the initial call:

“Would you feel comfortable calling her to see if she wants to speak with me?” (Let the referring source make the cold call for you. It will save you time, and the referring source will have better luck getting through than you will.)

Try for an introduction:

“What would you think about the three of us having lunch one day. I’ll buy.” (If you can get a personal introduction, the referring source will be your best advocate and will do much of the selling for you.)

Get as far as you can in upgrading your referrals. Simply getting a name and a number will give you less than a 5% conversion rate, while an introduction will be 50% or higher.

Give More to Get More

Referring should not be a one-sided activity. The more referrals you give, the more you will get. There should always be something in it for your referring source. For example:

Try to provide them with referrals in return. Make a point of asking your clients whom they would like to be introduced to and see if you can help them.
You can make them look good if your product or service benefits referral.
You might provide a reward such as lunch or a small token of appreciation.
You could pay a referral fee (assuming their company, and yours, has no policy against it).
They’ll feel good about helping someone.

Self-Study Assignment:

Think back on the last few referrals you received. How many times did you miss the chance to “upgrade” them? How much more successful might you have been with that little bit of extra effort? Make it a regular part of your approach from now on.

Referral Prospecting

Sun, 30 Aug 2015 22:21:04 GMT

Referrals are the best way to increase your sales.

When you begin to build your business through referrals you will lessen your dependence on cold calls and other less productive (and frustrating) prospecting activities. However, a prerequisite for getting referrals is that you must provide outstanding service, superior products, and be professional in every way in order for anyone to consider providing you with referrals. No one wants to refer a friend or business colleague to someone who may embarrass them.

Most salespeople don’t get nearly enough referrals, primarily because they don’t ask. Here are some suggestions.

Setting the stage:

Here are two approaches.

Provide referrals yourself. Ask your customer, “How can I help you grow your business? Who are you looking to get connected with? Maybe I, or someone else in my company, can help.” Chances are good that they’ll reciprocate.
Whenever the time is appropriate, you can ask, "How do you feel about referring me to people who might have an interest in what I do?”

Whom to ask:

Your best referral prospects are people that are pleased with your products or services, and people that have business or personal connections with the kinds of people and companies that you would like to do business with.

When to ask:

The best time to ask for referrals is when you have a really satisfied customer, especially if you have exceeded their expectations. (Although some would say that anytime is a good time to ask for referrals.)

How to ask:

Here are a few do’s and don’ts.

Don’t begin your question with "Do you know anybody..............?" The typical answer is, “No, but I’ll let you know if I think of anybody.”
Do begin the question with "Whom do you know................?" This focuses them on a person or company, instead of a simple “yes” or “no” answer.

Referral Rules

You won’t be referred unless you are exceeding their expectations.
The more referrals you give, the more you get. If you don’t ask for referrals, you usually don’t get them.
Never put any pressure on people to give you referrals.
Don’t let them guess whom you’d like to do business with. (See Core Competency #14.)
Anytime you get a referral you must tell them how you will handle the referral. They don’t want any unpleasant surprises.

Self-Study Assignment:

Who are your top five referral sources? When was the last time you asked someone for a referral? Make a commitment to identifying people who could be good referral sources for you and contact them in the next 30 days.

Marketing v. Selling

Sun, 30 Aug 2015 22:18:59 GMT

Most salespeople have their “Top 10 Prospect List” - important companies in their territory that have the ability to generate significant sales dollars for the company, and significant commissions for the salesperson. These companies are usually difficult to get an audience with, especially if you have had little or no prior contact with them. After all, they probably don’t know who you are…you have no credibility with them. When you’re having difficulty getting an appointment, you’ll have a tendency to get frustrated and abandon them for greener pastures.

“Seven Touches”

Studies have been done which indicate that when trying to establish a business relationship from scratch,

most prospects need between 7 and 15 “touches”

(exposures to the company by phone, advertising, etc.) before enough credibility has been established so that the prospect is willing to meet with the salesperson. Further, studies show that

most salespeople give up after no more than 3 attempts

(touches). The area between the third and seventh attempts is called the

Lost Opportunity Zone.

So, when a key “suspect” in your territory gives you the cold shoulder, stop trying to “sell” them, and start “marketing” to them. They need to be removed from your “sales funnel” and moved to your “marketing funnel.” You need to develop that important credibility before they decide that you’re worthy of their time.

There’s a difference between selling and marketing.

Selling is a short-term strategy designed to position you as the solution provider of choice for an opportunity that exists now.
Marketing is a long-term process designed to build credibility and position the company as a potential vendor partner for future business opportunities.

Trying to sell when the prospect is perfectly satisfied with their current vendor relationship, when pain (or fear of future pain) is non-existent, is a weak business strategy that pays very poor dividends on your time and may alienate your prospect.

You should adopt a strategy of staying in touch

without

each contact being interpreted as an attempt to sell them something. Provide them something of value, use a mailing campaign, try to meet them at industry events, invite them to events you are sponsoring, etc.

Get creative, but don’t be a pest.

Self-Study Assignment:

What are some ways you can stay in touch with your key prospects without being considered a pest? See how many unique things you can come up with and create your own Seven Touch Marketing Campaign around your ideas.

Using Voice Mail Effectively

Sun, 30 Aug 2015 22:15:10 GMT

Voice mail can be a tremendous asset, if used properly. However,

most voice mails are not returned because the salesperson failed to create a compelling reason for the recipient to call back.

Think of the voice mails you receive from salespeople. Most make unsubstantiated (and ridiculous) claims or are so lame that that the message is deleted before it’s over.

What not to say:

“I’m Bob Smith with XYZ Printing. We’re the premier printing company in the area. We’ve been serving local businesses for over 20 years and have the most advanced digital printing equipment in town. Our specialty is quick turnaround and competitive pricing. I’d like to set an appointment to meet with you to find out more about your printing needs, and show you how we can save you time and money on your next printing project. Please call me at 555-1234. Thanks and have a nice day.”

Voice Mail Tactics

Develop a credible message that will give them the opportunity to find out something they don’t know or that will show them how to improve their business.
Establish credibility

by referencing a referring source, research you have done, or something that makes you an expert in their industry.

Pique their curiosity

by referencing successes you’ve had with similar companies or ideas that may be able to help them.

Speaking directly to the person is preferred, although you will only get through 10-15 % of the time. Consider leaving your new voice mail message any time you fail to get through to your prospect.
Listen to their voice mail greeting. Try to

match their tonality

with the message you leave. (See Core Competency #33 for more info.)

Close confidently.

Here’s a better way:

“Jim, this is Mary Higgins with Gold Star Marketing. I noticed that you will be an exhibitor at the upcoming Widget International Trade Show in Los Angeles. We recently completed a research project on how to improve trade show attendance through the use of a proprietary targeted marketing campaign. Participants have seen an average increase in booth attendance of 38% and reported that the quality of the prospects has improved dramatically. This means a much better ROI on your trade show dollars and more overall business. If this is something that might interest you I can be reached at 555-1234. I look forward to getting together.”

Self-Study Assignment:

How are you dealing with voice mail now? Using the above ideas, develop several new voice mail messages that would prompt the prospect to think…”

This message piques my curiosity enough so that I will return the call.

”

Working with Gatekeepers

Sun, 30 Aug 2015 20:51:19 GMT

Definition:

A gatekeeper is someone in the organization who has the responsibility of deciding who gets to talk to the boss, and who does not. Typically this person has the title of executive assistant, executive secretary, or administrative assistant and knows what’s going on in the company. They are very skillful at sorting out who is given access to the boss and who is not. Usually these people have a high level of trust with the boss and can make things happen if they wish. Gatekeepers can also be lower level managers who have been given the responsibility of gathering information for the decision maker. Traditionally, “getting past the gatekeeper” has been seen as a game, and manipulative tactics have been used to win the battle. Today, this is a mistake. Considering the gatekeeper’s importance and ability to influence outcomes, new approaches are recommended. After all, they will decide whether of not to grant you access to the boss.

Do’s and Don’ts

Do use their name; ask for it if it’s not offered.
Do respect them and their position; they may hold your future success in their hands.
Do ask for their help. If they like you they can be very helpful.
Don’t use deception. It may appear to offer positive short-term results, but the overall impact will be negative in a relationship sale.
Don’t try to intimidate them into giving you access to the boss.
Don’t treat them as if they are stupid – they’re not.
Don’t try to get “past” them. Work

with

them instead.

The Question - “What is this in regards to?”

You must be ready for this question. It will be asked, and your answer will determine immediately just how successful you will be in getting an audience with the boss. The gatekeeper will be trying to determine whether or not you will waste the boss’ time. You might say something like:

“We’ve developed a new program that’s helping distributors like yourself reduce transportation expenses by an average of 17%. Is this something that he might be interested in talking to us about?”

(And you’d better be able to support whatever statement or claim you make.)

Self-Study Assignment:

How do you now answer the “What do you do?” question? If your response is weak or if it changes every time you get that question, take a few minutes and come up with a better response. Run it by your manager to see if it is acceptable.

Cold Calls

Sun, 30 Aug 2015 20:47:02 GMT

Telephone cold calls can be very frustrating. Most salespeople find all sorts of excuses not to make them. Yet cold calling can be effective,

you have the right message. Too many salespeople are defeated from the start because they use the wrong message and sound like a product pusher.

Here’s an example of how

not

to make a cold call.

“Mr. Jones. I’m Bob Smith with Fidelity Telcom. How are you today? We’re a leading long distance provider, and I’m sure we can save you money on your long distance phone bill

and

improve your service. I’d like to come over and provide you with a complimentary analysis of your phone bills and show you how we can save you money every month. I’ll be in your area on Thursday. Would morning or afternoon be better for you?”

CLICK!!

What’s wrong with this approach?

Bob sounds like every other salesperson that needs an appointment.
He makes claims that may not be true (“save you money,” etc.).
The prospect knows Bob really doesn’t care about “how he is” today.
Bob assumes the prospect will meet with him…bad assumption.
Bob interrupted and did not ask the prospect if he had time to speak.

Here’s a better way to make a cold call.

First introduce yourself, get permission to take a moment of his time,

then

give him a compelling reason to give you an appointment. If you can connect him with a problem he’s experiencing, you might just get his attention.

“I’m Jim Tyler with ABC Training. Sorry for the interruption. Obviously, this is a sales call, but if I promise to be brief and right to the point, could I take a quick moment to tell you why I called, then you can decide if we have a reason to speak further. If we don’t, then you can get back to what you were doing.” (Prospect says go ahead.)

“We’re a training company that helps companies improve their sales results. What’s unique about us is that we teach a proprietary sales process that’s counterintuitive to the way most people sell, and that’s why it works. Usually people come to us because they’re under pressure to increase sales and improve margins. To do this they need to increase their overall prospecting activity and stop wasting time with prospects that will never buy. Are any of these issues for you?”

If the answer is yes, ask permission to ask a few more questions. If there is no pain, thank him and move on to the next person on your call list.

Self-Study Assignment:

Develop your own cold call script and make as many calls as you can until you get comfortable with it. Then keep making calls until you have more appointments than you can handle.

20 Second Commercials / Elevator Speeches

Sun, 30 Aug 2015 20:44:08 GMT

The 20 Second Commercial (Elevator Speech) answers the basic questions that salespeople hear every day –

“What do you do?”

“Tell me about your company.”

You must be prepared to respond confidently and professionally. There’s a right way and a wrong way.

The wrong way is typically company focused

and makes statements that are often regarded with skepticism by the prospective customer. An example is…

”We’re a leading national widget provider. We’ve been in business for over 20 years, and have a great reputation for excellent quality and service. We have a long list of satisfied customers, and I’m sure our widgets can help you improve your manufacturing process.”

This may sound good, but it fails to differentiate you from the rest of your competition because they’re saying exactly the same thing.

Here’s a better way.

Notice that it focuses on the problems you help people resolve, not worn out platitudes about how good you are.

“We’re a leading widget supplier. What’s unique about us is that we have a proprietary method for calibrating our widgets that has increased the accuracy rate by 23% over our nearest competitor. We work with companies that require a very high level of accuracy in their manufacturing process. Usually people come to us because they’re frustrated with too much costly waste and concerned about equipment downtime. Are any of these issues for you?”

Professionals introduce themselves by the problems they solve for people.

Explain what your company does
Explain why you are unique (

hopefully there is something that is a real differentiator…stay away from platitudes like “our service is really terrific”)

Describe your typical client

(modify as necessary to fit your audience)

Explain why they use you

(mention 2-3 common problems that your clients want you to help them resolve)

Test for pain…

“I’m curious, are any of these issues for you?

and, if appropriate…

“Really? Can you tell me more about that?”

This approach focuses on the problems you solve for your customers, and becomes a quick way to determine if you are speaking with someone who might be a prospect for you.

Self-Study Assignment:

Using the ideas above, rewrite your elevator speech so that it focuses on the problems you solve for people. Eliminate all unnecessary references about how great your company is. Run the new speech past your manager and your peers to see how they feel about it. If it passes muster, commit it to memory.

Your Recipe for Prospecting Success

Sun, 30 Aug 2015 20:37:30 GMT

When prospecting, salespeople usually focus on the wrong end of the problem.

They focus on results (number of appointments made, number of sales, etc.), which, unfortunately, are virtually impossible to control with any degree of certainty. When they don’t achieve those objectives, prospecting becomes a very negative activity. Yet we all realize that without enough prospecting activity, you’ll likely fail in your selling efforts.

When you focus on what you

can

control, every prospecting day can be successful.

Build yourself a recipe for success by focusing on the only thing you can control, which is the

number of prospecting attempts

you make. It’s an old cliché that selling is a numbers game…and in many ways it’s true. The first step is to determine what you desire as a monthly income, then how many sales you need to close to make that income. From there you’ll need to determine how many proposals you have to make to close one deal, and how many fact-finding meetings with a decision maker you must have to be invited back to present a proposal. Obviously, you’ll need to determine how many decision makers you need to speak to in order to be invited in for an initial meeting. Finally, how many attempts (this can be cold calls or whatever prospecting activity you focus on) do you need to make to reach one decision maker? The attempts (activity, behavior) are the only thing you can control. Here’s a relatively simple example.

PROSPECTING ACTIVITY PLAN

Key to success:

Focus on the attempts needed to achieve the result, not the result itself. The only thing you can control is your activity (number of prospecting attempts).

Self-Study Assignment:

Develop your own personal Prospecting Activity Plan. Modify the above as necessary to reflect your business realities. Commit to making the appropriate number of attempts each day or week to achieve your monthly income goals.

Your Ideal Prospect

Sun, 30 Aug 2015 20:27:41 GMT

Prospecting is a process of sifting through many leads until you find one that fits your criteria. As such,

prospecting is a discarding activity

. They’re all

suspects

until you qualify them, then they become

prospects

. You have to know what you’re looking for. After all, if you know what you’re looking for, you have a much better chance of finding it. And if you’re looking for referrals, sharing with a potential referral source what your ideal prospect looks like removes all the guesswork on their part. Without a specific focus, most requests for referrals wind up with, “Let me see if I can think of someone and I’ll call you.” You know from experience that people seldom call you back with a referral after they’ve made that comment to you.

Big Picture:

What companies in your market are likely to have the kinds of problems you solve, and whom in those companies has the responsibility for solving those problems? That’s your ideal prospect. Here are some ideas about what to include.

Description:

(ex. an owner of a small to medium sized business who has a sales force; VP of Sales for a larger company)

Typical Pains:

(ex. who is frustrated with excessive turnover; not making his/her sales goals, etc.)

Mindset:

(ex. who is open minded about training; deadly serious about growing the business)

Geographic area:

(ex. located in …)

Products & Services:

(ex. is used to going outside the company for sales training)

Profit/Purchase Potential:

(might have a budget of $ ______ for training)

Etc.

This approach will also help you focus more effectively on your overall prospecting efforts.

Self-Study Assignment:

If you haven’t already done so, take a few minutes to write down a description of your ideal prospect. Check with your manager to insure you are both in agreement.

Prospecting Campaigns

Sun, 30 Aug 2015 20:25:24 GMT

Any successful prospecting campaign starts with identifying sources of prospects. What are the best places to look for those folks that are your Ideal Prospect? (See Core Competency #14.) Fishermen have learned that it’s important to move from spot to spot to insure they improve their “luck.” Like a fisherman, you should explore as many places as possible to improve your prospecting luck.

There are many places to find prospects.

Not all are lucrative for everyone. Your task is to conduct the exploratory work and determine which are best for you. Here’s a good, but partial, list.

Buy a list from a list broker.
Join a trade organization; attend meetings; join a committee.
Join the local Chamber of Commerce.
Research your company’s lists of old customers.
Lead clubs often can provide a good source of prospects for some businesses.
Scan local papers or business journals for names of companies and decision makers.
Attend networking events.
Go to trade shows as an exhibitor or simply to walk around and talk to people.
(Always the best source of good prospects.)

Once you’ve identified and assembled a list of prospects, there are many ways to contact them, yet not all will yield the same degree of success. You need to identify the 2-3 best approaches for you and do them consistently. Here are a few ideas.

Cold calls
Direct mail campaigns
Personal letters
Emails
Voice mails
Walk-ins

Don’t expect miracles after the first 2-3 attempts to contact your prospects, and don’t quit then either. Research shows that it normally takes 7-15 exposures (see Core Competency #20) before you have built enough credibility for your prospect to agree to meet with you. Most salespeople quit after the third attempt…way too soon.

Remember: You can’t fail at prospecting unless you fail to prospect.

Self-Study Assignment:

What are your best sources of prospects? How do you know they are the most effective for you? Are there any other sources you might look into? Make sure you don’t put all your eggs into one prospecting basket. Have several sources you can count on.

Debriefing Your Sales Calls

Sun, 30 Aug 2015 20:23:08 GMT

Professional football teams watch the game films the day after the game. They’re trying to determine what went right, what went wrong, and how they can improve for the next opportunity (game).

Professional salespeople always conduct a post-mortem of their sales calls

as well. This activity is just as important as call preparation. This is a partial list of some of the things that you might want to include in your debrief checklist:

Determine the behavioral style of your prospect (DISC).
Compare the call objectives to the call results.
What problems (pains) are they are trying to resolve?
Is the pain significant...do they have to do something?
Who are your competitors in this account, and how well entrenched are they?
Do they have adequate resources to solve their problems?
Do you understand their decision making/buying process?
What is their timing for making a decision or implementing a solution?
Do you believe you can provide an excellent solution?
Have you met the right people?
What’s your strategy for getting access to the right people?
Does this appear to be a profitable account if you are able to win it?
Does this account fit in well with your overall business objectives?
What are some potential roadblocks to getting this business, and what is your plan to overcome them?
What are your strengths & weaknesses relative to this opportunity?
What is your next step with this prospect?

Self-Study Assignment:

Think back on some recent appointments. How much time did you take afterwards to reflect on what happened? Did you forget any important details? Examine any call debriefing forms you are now using for content and completeness. Insure you make call debriefing a regular part of your selling.

Pre-Call Preparation

Sun, 30 Aug 2015 20:15:55 GMT

The best-prepared salespeople are often the most successful.

All of us have experienced that empty feeling of nervousness on a sales call when we’re not prepared. Proper preparation will help build your confidence with the knowledge that you are ready for any eventuality and that confidence will come across to your prospect. You’ll look more professional than your competition, giving you an early advantage. Your questions will be more focused, more relevant to the prospect’s situation, helping to build trust. Since first impressions are so important, being properly prepared can get you out of the gate in front of the pack.

Here are some areas to focus on to get ready for your sales calls.

Research

– Find out everything you can about the company. Look at their website, see if they have posted any recent press releases that are relevant to your business or could be a discussion topic.

Set objectives

–Determine what your primary objective for the meeting would be. This should answer the question: “If this was a

great

sales call, the following objective(s) would have been achieved.” Then set a secondary objective in case you don’t achieve the primary objective.

Anticipate

– What

roadblocks

might you encounter, and how will you handle them? What

questions

will your prospect ask and how will you respond? What other customers have you worked with that have similar issues, and how have you helped them?

Communicate

– Insure that you and your prospect are on the same page with respect to the

time

allowed for the meeting and the

meeting objectives

. (See Meeting Agreements on Core Competency #35). Call a day or two ahead to confirm your meeting.

Rehearse

– How will you open the meeting? Practice your

Meeting Agreement

in the car before you go into the meeting. Take another look at the

questions

you plan to ask. If necessary, write them down someplace where you can refer to them during the meeting. Mentally envision yourself having a very successful meeting.

The Five P’s: Proper Preparation Prevents Poor Performance

No doubt you’re thinking that this is a lot of preparation. It is. But, it’s virtually impossible to over-prepare for a sales meeting with a prospect. A good rule of thumb is –

the bigger the opportunity, the more preparation is required.

Self-Study Assignment:

Think back on some appointments you’ve been unprepared for. What were the results? How did that impact your ability to get the business, to build rapport with your prospect? Examine any call preparation forms you are now using for content and completeness.

Rejecting Rejection

Sun, 30 Aug 2015 20:10:43 GMT

As the story goes, when Colonel Harlan Sanders left Kentucky with his pressure cooker and his recipe for cooking fried chicken, he received over 300 rejections before he found someone who shared the same passion for the recipe that he did. Novelist Stephen King got so tired of publishers rejecting his first novel

Carrie

that he tossed the manuscript into the garbage. Fortunately his wife retrieved it, and King went on to be one of the most successful authors ever. Neither Sanders nor King quit – they persevered and they became wildly successful.

How you

choose

to perceive “rejection” will dictate how you handle it.

If you see rejection as a negative, it won’t be long before you let if affect your performance. If you see it as simply an event, perhaps even a positive event, you will handle it quite differently. It’s your choice what kind of energy, positive or negative, you attach to it. Let’s say you made 25 cold calls without making an appointment. If you see it as 25 failures, you will not be very motivated to continue making calls. However, if you believe that it’s impossible to continue making calls without somebody saying, “Let’s meet,” you’ll see the activity in a different light. You’ll see it as having positively identified 25 suspects who were not, at least today, interested in meeting with you, and you’ll know that you are just that much closer to successfully making an appointment with someone who is interested. Let’s look at it in another (positive) way. When you call someone and they decline to meet with you,

your situation didn’t get any worse…it stayed the same.

You never had an appointment in the first place.

SWSWSWSW - Some will, some won’t, so what, someone’s waiting. This is a good affirmation for you to use.

Key Point:

You can’t control whether someone will give you an appointment, so don’t beat yourself up for something that is out of your control.

You can, however, control your own activity;

in this case it’s making the

attempt

to get an appointment. So for every attempt to get an appointment you should give yourself a pat on the back for the effort.

If you fall down ten times and get up ten times, that’s a success!

Self-Study Assignment:

How have you normally felt about rejection? Has it gotten you down from time to time? What have been the consequences to your ability to function at 100%? Write down your old script about rejection, then re-write a more positive script. Examples might be: “I hate being rejected” and “Every ‘rejection’ gets me that much closer to a success.”

Emotions & Their Role in Selling

Sun, 30 Aug 2015 20:07:26 GMT

In the 1960’s Eric Berne developed the concept of

Transactional Analysis.

The foundation of this theory was that people have three primary “ego states” (Parent, Adult, & Child) that are developed in their early years from observing other people, and these ego states are accessed throughout their lives by various stimuli in their environment. The applications in selling are profound. Here’s a summary:

Parent:

There are two distinct dimensions to carry out the parental role.

Critical Parent

tends to be opinionated and judgmental. Says things like “You should”…“Don’t do that”…“Be careful”…etc.

Nurturing Parent

is the more helpful of the two. Says things like, “It’s okay”…“’Things will be fine”…”Don’t worry”…etc.

Adult:

The CEO of our personality. Gathers & evaluates info objectively; makes decisions on the facts; logical and objective. Says things like, “I think”…“In my opinion”…“How much?”… and asks open-ended questions to gather facts.

Child:

The Child is simply a bundle of unrestrained emotions. Filled with anxieties; creative and spontaneous; self-centered and fun loving. Says things like, “I’m afraid”…“I’m worried”…“I need help”…“I want”…etc.

People buy emotionally, and make decisions intellectually or logically.

We can go in and out of these ego states instantaneously based on the external stimuli we receive. Here’s the application in selling.

Salespeople should spend 50% of their time in the Nurturing Parent state, and 50% in the Adult state.

Be nurturing with your prospects (“I understand”…“That sounds serious”…etc.). In the

Adult

state ask questions to gather the facts (“Tell me more about that”…“How does that impact the company?”…“What have you done to fix it?”…“How do you feel about that?”…”Who else cares?”…etc.).

Prospects need to be in the emotional Child state initially, with their emotions taking charge

(“I’m concerned about”…“I need to do something”…“I want this problem to go away”…etc.). The

salesperson’s questions should stimulate these types of responses.

Then their logical Adult takes over and gives the Child permission to do something

(“Your solution makes sense”…“Let’s get started right away.”)

Salespeople must NEVER be in the Child ego state (“I need this business,” etc.) as it will cloud their judgment and make them ineffective at the investigating process.

Self-Study Assignment:

Can you recall any instances recently when you noticed the prospect go from one ego state to another? How about instances when you were in the Child ego state and were emotionally caught up in the sales opportunity? Did it cloud your judgment? Try to pay attention to these changes in your prospects when you’re on sales calls, and don’t get yourself caught up in the Child ego state.

Do Your Beliefs Support Your Sales Mission?

Sun, 30 Aug 2015 20:04:40 GMT

Change your beliefs and win more business.

Your beliefs (or attitudes) cause you to behave in a certain way. Your behaviors determine your results. (See Core Competency #2.) Therefore, beliefs play an important part in how successful we will be in our selling career.

Are your beliefs helping or hurting your sales effectiveness?

In today’s world of complex sales, prospects are looking for problem solvers, not product pushers.

These negative beliefs mentioned above will create problems if you are attempting to develop relationships based on trust. (You’ll push too hard to make a sale, and destroy trust.) Problem solvers have developed more positive beliefs that allow them to function more effectively in a complex, relationship sale - a sale based on trust.

Self-Study Assignment:

Re-read the negative beliefs above and reflect on times when you might have felt that way, and what the consequences were.

You’re a 10! Now Sell Like One!

Sat, 29 Aug 2015 23:59:14 GMT

How we feel about ourselves plays a huge part in how successful we will be.

The inner game (how you manage yourself) is as important as the outer game (how you sell). Selling is one of the toughest businesses there is. Salespeople have to face skeptical, even antagonistic, prospects that reject their selling propositions on a daily basis. Rejection begins to wear on salespeople and although they are encouraged not to take it personally, they often do. How a salesperson feels about himself dictates his actions, and of course, actions create results. The better a salesperson feels, the more positive his self-image, the more successful he will be.

However, we often don’t feel like we are a winner.

This is a result of our being

role-dependent

for our self-image (or self-esteem). It works like this. We all have multiple roles that we play in life...salesperson, father, daughter, friend, husband, golfer, and so on. Seldom do we perform these roles to perfection (10) on a day-in and day-out basis. We have good days and not-so-good days. That’s why few people would say that, in the area of self-esteem, they are a perfect 10, because they know that they are seldom a 10 on a consistent basis in the performance of their roles.

Simply put, we get beat up in our roles and we let it affect our self-esteem.

Comfort Zones

– If we feel like we’re “only a 6” conceptually, then we will perform in our roles at a 6 level. Our self-image will not permit us to consistently perform at a higher level. So our comfort zone becomes our regulator. When we have a “good day” we feel like we were lucky, and “know” that we cannot sustain that performance.

So, we adjust to get back in our “comfort zone.”

The secret to performing better in all your roles is to embrace the concept that

you are a 10

...that you are a perfect human being that has ups and downs in the roles you play. If you can grasp this concept (I’m a 10), then you will lay a solid foundation for improvement in your roles.

Here are a few ideas to improve your self-esteem.

Associate with people who believe you are a 10 and are willing to tell you so.
Read

Think & Grow Rich

, by Napoleon Hill, one of the best self-help books ever.

Use daily affirmations.
Eliminate negative influences in your life.
Set goals and celebrate achieving them.

Self-Study Assignment:

Take the time to make a list of all the successes (big and small) you have had in your life. This will have a very positive effect on how you feel about yourself.

Making the Most of Your Time

Sat, 29 Aug 2015 23:56:13 GMT

There are 40 hours in the average workweek; 2000 hours in the year. How many of them do you waste? If you’re like most people, perhaps as much as 25% of your time could be spent on more productive activities. With better time management, you can increase your income substantially.

What’s your time worth?

If you make $50,000 per year, you’re worth $25 per hour, $100,000 per year and you’re worth $50 per hour. So when you waste an hour on something that’s not producing income for you, you’re throwing away money. The biggest time wasters are bad habits – things that we do on a regular basis that seem to become just a normal part of our day. Some of the worst habits we have are:

Letting people interrupt us on non-essential things
Failing to delegate things that others could do
Spending time with prospects where the chances of winning the business are poor
Handling paperwork more than once
Procrastination
Lack of organization
Dealing with the easy stuff first, not the important stuff

One of the best ways to make the most of your time is to have written goals and plans, and to focus your energy (and your time) on them.

Goals help you identify what’s important to you…what you should be spending your time doing. If you’re doing something that’s not related to one of your goals, you need to question why you are doing it.

Spend your time on high payoff activities. Here are some other good ideas.

Make a To Do List every day. Prioritize each task and do the important things, not the easy things, first. 2. Stay focused. Put distractions aside and keep the end results in mind. 3. Set specific deadlines for getting important things done. 4. Divide projects into smaller units. 5. Get help; sometimes you can’t do it alone. 6. Attack difficult jobs when you are mentally sharpest. 7. Reward yourself to keep the motivation going. 8. Make a commitment to getting the important things done first.

Self-Study Assignment: What are the most significant time wasters for you? Make a list and develop a plan to eliminate them. Stick to the plan until you are successful.

Planning: Achieving Goals Step-By-Step

Sat, 29 Aug 2015 22:18:25 GMT

“A journey of a thousand miles begins with one step.” Lao-Tzu, Chinese philosopher

Once you have developed your SMART goals, you need a roadmap to make them happen. This involves establishing a step-by-step process of getting from where you are to where you want to be. A well-written plan is one that, if given to a colleague to execute, would be detailed enough to eliminate any confusion as to how it would get done. Here’s an example:

Goal:

Hire an administrative assistant by (date). (This is important to me because I will be able to delegate routine work, freeing me to spend time on more important, high payoff activities that will increase my income and give me more free time to spend with my family.)

Action Plan:

Identify primary and secondary tasks for the job by (date).
Develop a formal job description by (date).
Write an ad and research best places to advertise for help.
Develop a list of questions to ask on phone interview.
Place the ad.
Screen resumes.
Call the ten best candidates for phone interviews.
Invite the best five candidates for personal interviews.
Rate the candidates from best to worst.
Invite the best candidate in for a second interview.
Make an offer to best candidate.
Negotiate the start date and compensation.

Anyone could come in and execute this simple action plan with little or no prior experience. It’s quite clear what needs to be done. Reduced to a series of simple steps, the goal seems easy to achieve.

The benefits of comprehensive action plans are:

Provides a perfect roadmap to the completion of the goal.
Breaks the process down to small, manageable tasks.
Allows you to execute one small step at a time.

“Reduce your plan to writing. The moment you complete this you will have given concrete form to the intangible.” (Napoleon Hill, author)

Self-Study Assignment:

Using the SMART goals you developed in Core Competency #3, develop a plan to achieve each of your goals.

Goal Setting & Achieving

Sat, 29 Aug 2015 21:53:19 GMT

Studies done with the graduating class at Yale University in 1953 showed that 3% had written goals, 13% had goals that were not written, and 84% had no goals at all. Twenty years later, a subsequent study of the same graduates showed that the 3% who had written goals had achieved greater financial success that the other 97% combined. The goal setters also enjoyed better health and relationships. Without goals we are like a ship without a rudder, wandering aimlessly and risking failure to achieve our true potential. Goals give us something to shoot for, a roadmap for success. The evidence is quite compelling. Goals are dreams with a timetable. When setting your goals, insure that they meet the SMART criteria.

Specific

What specifically do you want to accomplish?

Measurable

How will you know when you have achieved it?

Achievable

Is it realistic in terms of your ability to make it happen?

Relevant

Does it fit in with your overall lifestyle and values?

Time specific

Does it have a completion date?

Here are examples of poorly defined goals, and SMART goals.

Poor goals:

I need to lose some weight.

I’m going to make more money next year.

SMART goals:

I will lose 15 pounds by January 1 of next year.

I will make $100,000 in salary and bonuses this calendar year.

The benefits of setting SMART goals are…

You have a purpose & direction.
You will accomplish something worthwhile.
You can track you progress effectively.
You will feel good about yourself when you accomplish it.
Setting SMART goals is a habit that will bring you success in life.

Ask yourself why you are setting this goal. The

how

will be difficult unless the

why

is important enough. When you set your goal, determine a reward that you will give yourself when the goal is achieved. (People always respond more positively to incentives.) Put your goals in writing. Finally, share your goals with someone who is supportive and wants you to succeed.

Self-Study Assignment:

Develop at least one SMART goal for each of the following areas of your life: business, educational, health, financial, and family. Add others if you desire. Share them with someone who is supportive and wants you to succeed.

Overcoming Self-Limiting Beliefs

Sat, 29 Aug 2015 21:39:16 GMT

Many of us carry around negative beliefs (head trash) that keep us from being successful. As Albert Einstein said, “Imagination is a preview of life’s coming attractions.” That means if you think you can, you most likely will, but if you think you can’t, you won’t.

Many people would rather be right than improve.

It’s so easy to say, “I told you so. I told you it was too hard.” Thus, it’s easier to make excuses for poor performance, blaming other people or circumstances, than it is to make an effort to overcome obstacles and improve. And it’s all because of our head trash. Funny the way things work. Beliefs cause us to act in a certain way, which causes our results. Our results often seem to reinforce our beliefs.

Here’s a short list of common beliefs that negatively impact salespeople’s performance…and the results they cause.

“I can’t call on C level executives. I’m just not at their level professionally.“ (You will call at lower levels in the organization, damaging your ability to discover the real issues, and eliminating the possibility of getting a decision when you present your solutions.)
“Business is very competitive, and I must have the best prices to beat my competition.” (You will prematurely determine that price is the most important issue to everybody, and sell on price alone.)
“I understand why people need time to ‘think things over.’ They need time to evaluate their options. That’s how I make decisions.” (You won’t be able to ask for a decision when you make a proposal, allowing people to stall for time and letting the opportunity slip away. Remember, time kills deals.)
“I need to educate my prospect on what we do.”
“It’s impolite to ask about budgets.”
“Asking a lot of questions is rude and might upset my prospect.”
“Cold calling is a waste of time.”
“I just don’t have time to prospect.”
“My products & services are expensive.”
“If they like me they’ll buy.”

Self-Study Assignment:

These ten non-supportive beliefs are common with salespeople. Which ones do you have? Try to create more positive beliefs in the form of affirmations about any that affect you.

The Four Principles of Sales Success

Sat, 29 Aug 2015 00:14:26 GMT

Selling is one of the world’s most popular professions. It’s estimated that there are approximately 15 million people in the U.S. alone who are employed in sales. Many enjoy the freedom afforded by sales and are attracted by its generous income potential. Yet, while the selling profession is relatively easy to break into, it’s difficult to excel at. Too many salespeople don’t take their career seriously, thinking that an outgoing personality, the gift of gab, and a few good one-liners will bring success. Unfortunately it’s not that easy. Your ability to succeed and become a top performer is dependent on mastering four things, which we call the

KASH

concept.

nowledge

Having a thorough understanding of your company’s products and services
Understanding your industry and your customers
Learning all you can about your competitors (strengths & weaknesses compared to your company)

ttitude

How you feel about yourself and your ability to succeed (your self-esteem)
How you feel about your company’s ability to compete effectively in the marketplace
How you feel about the growth potential of your industry

kills

Having an effective selling system
Having the tactics to execute the sales process
Having good people skills

abits

Setting goals (both business and personal)
Having specific action plans to achieve the goals
Completing the daily or weekly activities necessary to achieve your goals

Self-Study Assignment:

Rate yourself on a scale of 1-5 (5 = excellent) in each of the twelve areas. Develop an action plan to improve yourself in the weak areas.

Create the Atmosphere

Wed, 13 Mar 2013 00:03:45 GMT

Problem:

A year or so ago we recall having a disagreement with a prospective client, Susan, on the subject of “pain.” We agreed that the concept of pain was valid in that it focused on the needs, wants, challenges, etc. that the prospect was facing. There was no argument that the sales interview should focus on the prospect’s pain and not on the product’s features and benefits. Where we disagreed was on how the pain was developed in the first place.

Analysis:

A well-known sales training firm had trained my prospect. Their position relative to pain was that the salesperson’s job is to “create” pain…even if none existed. Susan was a real “driver” personality and her philosophy was that any sales call that did not result in a sale was a failure. The training she had received fit well with her personality style and she accepted it as gospel. So, in order to make a sale, she would often employ an extraordinary barrage of manipulative and aggressive tactics. This inevitably made prospects defensive, destroyed rapport, and she became very dissatisfied with her results.

Solution:

First, we had to refocus her attitude toward what the goal of a sales call really was. When she agreed that not everyone was a prospect (a real leap of faith for her) and that she’d be happy if she were simply able to get far enough in the relationship to ask the right qualifying questions, she had made her first significant step in the right direction. Then we discussed creating an atmosphere where the prospect was comfortable discussing their pain with her. She learned to do an effective meeting agreement where she got permission to ask questions in order to understand the prospect’s issues better. She even became comfortable telling the prospect that it was okay to say “no” if it didn’t look like there was a fit. She learned to tone down her aggressive style so that the prospect wasn’t threatened. Doing these things helped create an atmosphere where the lines of communication were more open and her results improved dramatically. It began with an attitude change followed by some solid technique, and her sales greatly improved!

Instant Success?

Tue, 12 Mar 2013 23:52:52 GMT

Problem:

Paul was an average performer in his company and marveled at the incomes and status of the top performers. He had been to a few one-day seminars and read a book on motivation but it didn’t seem to be working fast enough for him and his motivation was decreasing. He complained frequently and was thinking about moving on to a better opportunity so he could make more money.

Analysis:

There is a lot of pressure today to get results quickly. The media publishes stories regularly of people who became "overnight successes" without paying their dues like most people. People become programmed to think that if they are not one of the overnight successes they are experiencing failure. The truth is that overnight successes are very, very rare and that’s one reason why they become newsworthy. These stories create unrealistic expectations and cause anxieties that hinder progress. As a result people "give up" or "move on" when a more focused effort and greater conviction could help them break through to a higher level.

Solution:

There is no such thing as instant success in selling and/or growing a business. Achieving excellence is an ongoing process. It starts with a desire to accomplish something significant and demands patience during the process. You should create a picture or written description to remind yourself regularly of what your goals are and your plans to achieve them. If you can see it, you can achieve it. Now comes the hard part. You develop true conviction not only by thinking about what you want, but also by taking action toward it. Accept the reality that you will have to do things that are uncomfortable, tolerating failures on the road to success and using them as positive learning experiences. Understand that successful people are constantly pursuing knowledge. Begin a program of learning cutting edge selling strategies and tactics that will give you an edge on your competition. Associate with positive people and engage a coach to guide your progress. Constantly reinforce what you learn by practicing and repeating the key skills until they are second nature and you don't have to think about doing them. Commit yourself to success and do what it takes to get there. Be a winner, not a whiner.

The Prospect’s First Test

Wed, 06 Mar 2013 23:59:34 GMT

Problem:

“What am I doing here?” Robert said to himself. He was twenty minutes into the initial meeting with this prospect, and he was clearly fighting an uphill battle. All his attempts to develop rapport were met with apathetic, almost frigid responses. His questions, simple and innocuous though they were, received little more than one or two word responses. What’s going on here? he wondered. This guy won’t even crack a smile and yet he gave me the appointment. Is he just having a bad day, or do I have a hygiene problem? He just couldn’t figure it out, yet he kept at it, trying to pump some life into this dying appointment. He wanted to quit, but his ego wouldn’t let him. And after all, it was difficult to get meetings with people these days. We’ve all been there. We work hard to get an appointment and are determined to take the sales process all the way through to the end, to make that “all-important” presentation. No matter what. And it almost never pays off.

Diagnosis:

Some prospects just aren’t worth the effort. Let’s face it, there are “good” prospects, and “bad” prospects. In fact, a bad prospect is not a prospect at all. Any prospect that is antagonistic, vague and even non-communicative is a bad prospect. But salespeople, despite the obvious danger signals, are almost completely reluctant to disengage. The old “hope-a-hope-a” strategy is firmly entrenched, along with a liberal dose of denial of the obvious warning signs. This old adage comes to mind…if it walks like a duck and quacks like a duck, it probably IS a duck. Well, if it exhibits all the initial danger signs of a bad prospect, it probably is a bad prospect.

Prescription:

The good ones deserve our time and effort. The rest should be dumped like a bad habit. Every prospect must pass the first qualifying hurdle, or you must disengage quickly. There are definite warning signs, and fortunately, they show up early in the process and are easily recognizable, if you know what you’re looking for. If you can’t answer positively to these five quick qualifying questions, your continued efforts with the prospect probably are not worthwhile. Here they are…

Is the prospect friendly?
Will the prospect answer your questions?
Does the prospect know what he wants?
Does he want it in a relatively short time frame?
Will the prospect work with you on an exclusive or relatively exclusive basis?

If you’re getting a bunch of negative answers to the above, it is probably time to say “Adios” and move on. Here’s a nice way to do it. “I don’t think we’ll be able to help you. Generally the folks we work with are…(tell it like it is). Would you like me to make a suggestion as to a company that might be better suited to your needs?” (Send him to your competitor and let him deal with the problem.)

Show Me the Money

Wed, 06 Mar 2013 23:39:06 GMT

Problem:

Why is money so difficult to discuss? Salespeople frequently hear from prospects that budget is “no problem” at the beginning of the sales call. However, once things start to get close, the story often changes. We’re told that we “have to sharpen our pencil,” “get more competitive,” or offer “additional discounts.” And yet, once the sale is won, price seems to evaporate as an issue and pressure is put on the vendor to improve quality or service. Often we hear from salespeople that money is the number one issue in getting and keeping the business. “We need to have more competitive pricing, better discount structures or we just can’t compete.” Sound familiar?

Diagnosis:

There are several reasons that investment or budget is discussed only superficially. First, is the unfortunate, self-limiting belief (that afflicts many, but not all salespeople) that discussing financial issues is impolite. Second, experience has shown us that a discussion of price typically deteriorates into a negotiation situation which is uncomfortable. Third, we’re afraid that the prospect may not be able to afford our product. Fourth, deep down, we may not be convinced that our product is really worth what we’re asking.

Prescription:

Don’t ever get yourself into a situation where you’re making a proposal without finding out two things: 1) how much the problem is costing the prospect, and 2) how much they’d be willing to spend assuming your solution completely fixed the problem. It’s imperative that you understand all the financial parameters related to the sale. One effective way to make sure budget and related money issues are discussed is for you to set a “trap” for yourself. It goes something like this: “Mr. Prospect, one of the things that I sometimes find difficult to discuss is budgetary issues related to purchasing my product. I’m not sure why that is, but I want to make sure that we take some time to talk about that today. Is that okay with you?” This “trap” lets the prospect know up-front that money issues will be part of the discussion and gives you an excuse to bring them up. You might say, “Do you remember that we wanted to discuss your budget for this type of purchase? Can we do that now?” Oh, yeah! One last thing -- don’t spend your valuable selling time with someone who doesn’t have the financial resources to buy your product or service.

The Qualification Trifecta

Wed, 06 Mar 2013 23:20:59 GMT

Problem:

Gerry was fortunate. His company’s new marketing program resulted in a great deal of incoming calls. He received at least 2-3 leads daily from interested prospects who wanted to see him. It was a salesperson’s dream. No more cold calls and lots of appointments. But at the end of the quarter, his sales had not increased. In fact, his closing rate had declined to 15%. What happened?

Analysis:

Prospects are motivated by a number of things and it’s critical to understand the motivational hierarchy of pain (or gain), fear, and interest. Pain is a problem today, fear is concern about a future problem, and interest is often nothing more than simple curiosity. People spend the most to fix pain, and the least on interest. Gerry was often mistaking interest for pain. Let’s take a moment to understand these concepts better. People will spend a lot of money to eliminate pain, especially if the pain has serious financial implications, and they’ll spend it now. Fear is compelling as well, although generally less compelling than pain. Since it’s not as urgent, they’re likely to allocate less funds and will postpone the purchase for a short period of time, depending on the imminence of the problem they’re worried about. Interest, on the other hand, is by far the least compelling. People will spend very little on “interest” and making an investment quickly is likely only if the cost is minimal. It is, however, important to note that many purchases seem to begin with nothing more compelling than a mild interest in the product or service. The skilled salesperson, by asking questions, is often able to uncover the true motivations which, in some cases, may not be that apparent to the prospect. Thus, the salesperson can play an important role in helping the prospect elevate the motivation from interest to fear and, perhaps, to pain.

Prescription:

Sometimes the most important qualifying questions are the ones you ask yourself. Do you really know the prospect’s level of motivation? Are you mistaking “interest” for “pain”? If you’re not sure, try asking yourself the following questions as you interview the prospect: “What am I dealing with here? Does the prospect have a problem that she is committing to fix now or is she just worried that if she doesn’t start to address some issues she’ll have a problem later? When is later? Or, is the prospect simply fishing for information?” If you can’t answer those questions, you haven’t done a very good job qualifying the prospect. Keep working the qualification process until you’re positive which of the qualification trifecta (pain, fear or interest) you’re dealing with. Then you can decide how much time to invest with the prospect.

Come To the Edge… And FLY!

Mon, 04 Mar 2013 23:11:24 GMT

Problem:

Salespeople have difficulty “breaking out” of their comfort zones. Despite increased activity (usually in frantic spurts), trying new techniques and approaches, and resolving that things will be better next month, things somehow manage to stay pretty much the same, and results show little or no improvement.

Diagnosis:

What you see as “reality" is defined by your comfort zone. Envisioning success beyond the bounds of our current reality is difficult for most of us. In fact, we’re often blinded by what we think is reality but which is simply a reflection of our past.

Prescription:

Understand that life and true success starts at the very edge of our comfort zones. Getting to the next level (perhaps a level of success which you have difficulty even envisioning at this point in your career) requires stretch, discomfort, and vision. Don’t be held back by your lack of vision. As the French poet/philosopher Guillaume Apollinaire wrote: “Come to the edge.” “We can’t. We are afraid.” “Come to the edge.” “We can’t. We will fall!” “Come to the edge.” And they came. And he pushed them. And they flew.

Learn how to fly. You can, you know.

Singing the Santa Claus Blues

Mon, 04 Mar 2013 22:43:49 GMT

Problem:

The holidays are a curious time of year for salespeople. They tell us that after the Thanksgiving holiday something strange starts happening. It seems as though they're not able to contact as many prospects, make as many appointments, or close as many sales. If you sat in a room full of salespeople discussing the matter, you might get the impression that Santa Claus was public enemy number one!

Analysis:

There are two schools of thought here. The first is that the whole idea of the slowdown in activity is in your own head. It's kind of self-fulfilling. Initially you don't believe it when your colleagues tell you that things are slowing down. You demonstrate your positive attitude and deny it. Within a short time, after a few unsuccessful attempts at cold calls, it is remarkable how quickly you become convinced that your colleague's assertions are true. The next thing you know you’ve completely bought into the idea. By contrast, the other prevailing point of view is that there truly is a slowdown this time of year and it has always been that way. The salespeople who believe this do so because they keep track of their activity ratios and can prove it if challenged. In writing about this, we are not concerned with what school of thought you believe in as much as what you do about it.

Prescription:

Here are two ways to handle the Santa Claus blues. First, challenge yourself to overcome your "head trash" and keep your prospecting efforts up. If the majority of salespeople are thinking that nobody will talk to them, there will be less competition for the prospect’s attention. Your results will improve and at the very least you will have planted some good prospecting seeds for next year. The second way to tackle the problem is to use the extra time you have now to do things you normally don't have time to do. One example is setting goals and mapping out your sales strategy for the upcoming year. Another could be to write those lead generation letters you always wanted to write. Join in the festivities. Invite your best clients to lunch and have some fun while improving your relationships. It’s critical to maintain a positive mindset. You are in control of how you deal with reality and what actions you take. Why sit around singing the blues when you can get an edge on sales for next year and hit the ground running on January 2?

The Babble about “The Best”

Sat, 02 Mar 2013 01:54:10 GMT

Problem:

Talk to many salespeople today and you may hear some familiar remarks. "We have the best _____ in the market today." You fill in the blank: best product, service, quality, pricing, technology, research, etc. You know the script. You may even have said it yourself. Instead of being impressed, most prospects respond to such claims with remarkable indifference, even skepticism.

Analysis:

There are at least three issues with asserting that you are the best that create problems in the sales interview. First, your claim may be untrue. Of course, you are not intentionally making false claims but if you are in any competitive business (and who isn't?), there are usually worthy competitors who offer comparable, or better, products and services. The second problem is that you sound like a traditional salesperson which scares the heck out of most prospects. Think about how you feel when you are being sold. Finally, and most importantly, your prospects couldn't care less about your claims until they discover how they might impact them personally. They care about themselves, their issues, their dreams, their goals and their world.

Solution:

Get the prospect to reveal their challenges to you before making any claims. Stop telling, stop assuming, and start asking. Ask questions to help a prospect discover what their concerns are and to demonstrate that you care about them. As soon as they recognize that you are more interested in them than yourself, rapport will increase and they will be more likely to open up and share the real issues with you. Next time a prospect asks you why she should invest in your product or service, try responding with a disarmingly honest answer: "That's a good question. I don't know enough about you yet to know if there is a match between what I have and what you need. If you would be open to sharing a little about your situation with me, maybe we can see if there is a fit. Sound fair?" Try being the "best listener" you will experience the magic of a receptive prospect.

Rather Make a Friend Than Make a Sale?

Fri, 01 Mar 2013 23:24:37 GMT

Problem:

Stacy and her boss just couldn’t understand why she continued to struggle to make quota. She was a very outgoing person who was extremely well liked by all her colleagues and her customers. Stacy constantly went out of her way to be friendly to everyone and appeared to possess a good knowledge of both her product and the selling process. Her failure to excel was confusing to everyone.

Analysis:

A major weakness that many salespeople have is called "need for approval.” This means the salesperson's need to be liked is stronger than the need to close business. This need to be liked is very common and causes the salesperson to be overly polite and to avoid any confrontation. This also means that they will be unlikely to ask the tough but important qualifying questions and will rarely risk testing a prospect's commitment level before preparing a presentation. More acute cases of this weakness cause salespeople to avoid hearing a “no” at all cost and accept too many stalls and put-offs. These salespeople unconsciously get paid in compliments rather than in dollars. Extroverted people often suffer from this weakness as they value personal relationships greatly and are loathe to do anything (such as asking for the business) to upset that relationship.

Solution:

Research suggests a salesperson with a need for approval will be about 35% less effective than someone without this major weakness. Overcoming the need for approval can be a difficult problem but it can be overcome with proper reinforcement and commitment to change. Here are several ideas to consider that will help to reduce the need for approval:

Be aware that selling is a highly paid profession to advance business goals, not a social event. The purpose of sales interactions is to collect information about prospects by asking qualifying questions. Selling is no place for meeting your personal needs (wanting to be liked and showing how much you know).
Remember that it doesn't matter what anyone thinks of you, says about you, or feels about you. The only two things that matter are that you have fun and get a qualified prospect to do business with you.
Get comfortable with hearing "no.” “No” is an acceptable response when the prospect does not qualify to do business with you and you have done a good job asking questions to draw out the information you need. Learn to help people say "no" rather than put you off.
Learn to ask the tough qualifying questions to get information you really need. For example, it may not be comfortable to ask about money, details of the decision-making process or to test commitment, but you have to do it.

Remember this quote from the famous actor Bill Cosby, "I don't know the key to success but the key to failure is trying to please everybody."

Column Filler

Fri, 01 Mar 2013 21:11:51 GMT

Problem:

Lisa was angry. It had happened too many times. She recalled the old movie, “Network,” where the veteran news anchor said, “I’m mad as hell and I won’t take it any more!” After submitting yet another proposal, she determined that she was just one of several vendors who were being used to satisfy the prospect’s need to obtain competitive bids. They had already selected a vendor (often the incumbent), and Lisa’s numbers were just needed to fill in column B or C. That way the prospect could say that they had gotten several competitive bids. So that’s exactly how Lisa felt…”mad as hell.” She had no chance of getting the business - none, nada, zero. Although she suspected the worst, she spent hours developing her proposal - unpaid consulting at it highest form. The prospect misled her (again) and she didn’t know what to do.

Diagnosis:

First of all, prospects don’t always play it straight with salespeople. (Big surprise, right?) Basically, they’ll get away with whatever they can. Who can blame them. But, prospects aren’t the problem; salespeople are! First, they believe everything that the prospect tells them so when an “opportunity” presents itself, salespeople tend to think the probability of it closing is a lot higher than it really is. (Salespeople would make lousy bookies.) Second, they just don’t have the guts to ask the tough questions to find out if they’ve got a chance to get the business. Finally, they’re not sure how to broach the subject without upsetting the prospect.

Solution:

If you sense it, say it. (Gut check here.) “Mr. Prospect, I may be off base here, but I get the feeling that you’ve already made the decision to stay with Incumbent, Inc. and my biggest concern is that you may be asking for a proposal just because you need to have several bids, and the bottom line is I have little chance of getting your business. Is that a fair statement?” Pay close attention to the answer, not just the words, but also the tonality and body language. Was there tacit agreement or did the prospect make a good case for your having a good chance to get the business? The prospect’s job is to convince you that you do have a chance. If they can’t convince you, you’re just going to be column filler.

Networking… An Opportunity or a Waste of Time?

Fri, 01 Mar 2013 21:02:54 GMT

Problem:

Have you ever gone to a networking function and spent 60-90 minutes or more and left without one good, qualified lead? If you’re like many salespeople, you can undoubtedly relate to this type of lost opportunity. Networking functions are a great way to meet people who are potential business partners, but typically we are disappointed with the results.

Diagnosis:

Think about how you spend your time at networking functions. Many will spend their time with a friend, safely inside their comfort zone or take the easy road and meet only one or two people, failing to get a lead from them. Why does this happen? There are lots of reasons, but the main one is that we’re uncomfortable in networking situations because it’s a sales situation. We’re asking someone for a lead and are afraid we’ll be perceived as being pushy. We ask, "How can I get some business out of this? Who can you refer to me? What if they say no to me?" The focus is clearly on us.

Solution:

Change the focus! Focus on the prospect. Find someone whom you know you can help. Approach them with the idea that you have someone to refer to them (of course you must actually have someone). Here is what it might sound like: “Do you have a moment? I’m ____________ with ___________. My company does ______________. I think I have someone who could use your product/service, but I want to make sure. Can you tell me a little more about what you do?” After they’ve had a chance to talk, you can offer them the referral, if it‘s appropriate to do so. In either case, they’ll be appreciative that you wanted to help them and I’ll bet that they’ll be thinking about how they can help you. It is Emerson's Law of Compensation in action which, when simplified, states: "the more you give, the more you will get in return." Obviously, you may have to do some preparation beforehand, but you can bet that the effort will be rewarded.

Don't Get Stuck in the Middle

Fri, 01 Mar 2013 00:31:19 GMT

Problem:

Meagan came back from a sales call and told me a story that I have heard many times before. She said that the sales interview went well. She had good rapport and the prospect liked her. The prospect said he would call her next week to give her a decision on whether he wanted a proposal as soon as he gets back from a company meeting. Meagan really wanted to believe that her prospect would call her back but her "gut" told her that a return call was unlikely.

Diagnosis:

Two major faults could be the source of this problem: first is not knowing what a

genuine

commitment from a prospect sounds like; and, second is being afraid to ask for it. Salespeople are often overly cautious after a first interview and hesitate to press for a commitment of some kind from a prospect. This is especially true when they have good rapport and they do not want to risk destroying it by being "pushy.” It is far more comfortable to be optimistic and believe that a prospect is more interested than they really are.

Solution:

First, early in the meeting obtain agreement that there will be a clear outcome by the end of the meeting. The prospect must realize that it is acceptable to tell you that they do not see a fit between what you are selling and their situation. When a prospect feels that "no" is an acceptable response, they will be less likely to feel pressure to feign some sort of commitment to get rid of you at the end of the meeting. This may not completely eliminate the problem because prospects are not used to dealing with salespeople who will accept "no" as a response. You will know a genuine commitment when you hear it because it includes a specific action to be completed by a certain date leading toward the decision to be made. When faced with a prospect who does not indicate commitment near the end of an interaction, an effective step toward determining their intent is to take a fall back position and ask a negative question. You will not be perceived as "pushy" if you say something like, "My sense is that you have doubts about whether we should move forward. Would you agree?" or "I get the feeling that this is really a low priority for you and you don't know how to tell me that. If you don't see a fit, I'll understand, okay?" When using this approach the prospect will either agree with you (it may be over) or move in a positive direction (they will convince you of their commitment) and you will avoid getting stuck in the middle.