How a decision is presented is detrimental in how the choices are perceived and considered. This is not anything new. Here is something more specific. According to an article in The Boston Globe people respond more favourably to a request if it is framed as securing a gain and not avoiding a loss. In sales it is more effective to keep a success in sales maintained and not as not having someone lose a job. The example given is of a charity. It is better to present a request to donate blood as a way to “prevent someone from dying” rather than as a way to “save someone’s life.”
THE RULES OF BUSINESS ECONOMICS IN AN INCREASINGLY ONLINE WORLD
This book makes an important albeit, perhaps, obvious point. It is something that most people younger than a certain age instinctively understand.
The long tail in the age of Internet is a model where abundance and endless variety is available and can be found and filtered. Costs being near zero this long tail of goods – although the book clearly focuses on music and film – is a revenue stream equal to or superior to the head, which in mainstream parlance is the hits or what is available in a typical retail outlet. The book was initially instigated when author Chris Anderson, who at the time edited Wired magazine, was meeting with someone at a company called Ecast and was surprised to find how deep the sales `tail’ extended. That is, how much obscure titles sold in aggregate. Also, the title of the book stems from the type of curve representing powerlaws an example of which is linguist George Zipf’s observations on frequency of words’ usage (and many other things). Note: clearly an obscure product would not sell as much as a well-publicized or mainstream one, but in total the sum of available non-mainstream `long tail’ products would match or surpass their better-known cousins. Now imagine a business (on the net) that can supply an infinite choice to its customers not constrained by what page 94 calls the “tyranny of the shelf.”
Incidentally, and as an aside, pages 90 and 91 taught me that there are no atoms in bits – something I had believed was unimaginable. The author makes mention of how one can reduce atoms to zero as well as getting rid of atoms. I didn’t know what to make of it and had to ponder the physical reality of it.
Here are the secrets to the Long Tail business:
1- Make Everything Available 2- Help Me Find ItDon’t panic. In the model described costs are near zero. Traditional economics are placed on its head. As the author reminds us economics is the science of scarcity, but while many things like money and time remain scarce the shelf space or incremental cost of the net are approaching a cost of zero.
The principles are focused on CD (music) and DVD (film) likely because it is still the dawn of Internet and the available data is limited. Still, at the book’s end there is a perfunctory attempt to go beyond the aforementioned markets. Having said that, still half the non-music and film examples are Internet-related. What is more, likely partly due to the data and the industry and partly due to the author’s location the data, if not the conclusions, is US-centric. It is still universally applicable but Yahoo, Rhapsody, Netflix are all USA-based. These are several of the main companies the author cites as case studies.
Anderson thinks that this model not only supports his central thesis, but also proclaims the end of the era of central command and control. Not so fast, he should check who owns most of these Internet bits and bytes assets. The answer is the same moguls and conglomerates that own everything else. More importantly, the medium is now the centre. Never mind. He makes a point about fragmented and decentralized micro niches being the end of hits and the mainstream.
The concept discussed is really a simple and observable one that the author takes to in detail. Occasionally it is inarticulate and occasionally it is self-servingly elongated. Ultimately, it is not improbable to see how it could have been an article (in Wired magazine?) or a Blog post (which it once was) given its data, theme and conclusion.
Finally, I bet former Google CEO Eric Schmidt is misquoted from the company’s first shareholder’s meeting where he did not say, “we were able to capture very large and historically undeserved businesses…” or perhaps he was not!
ARE YOU SAVVY?
This sales book certainly promises a lot and one wonders whether the author, Florida-based E.F. Suarez, can deliver within its hundred pages. The author has 20 years of sales and management experience under his belt.
Unsurprisingly, and right away in the book’s Introduction, Suarez brings in a fallacy, namely criticizing “draconian regulations.” The hyperbole aside, regulations are good for sales for two reasons. Firstly, regulations necessitate compliance and reporting, which often amount to sales and secondly a lack of regulations inevitably lead to excesses in the system, which diminish or collapse economies and, subsequently, business. The plights of the Enrons and Adelphias of the world in 2000-2001 or the recent sub-prime mortgage bubble debacle are obvious examples. Yet, the myth lives on.
The Savvy Salesperson spotlights both selling skills (hunter) and territory planning (farmer) because, the author contends, these are elements one can control. Then, without a hint of mockery, Suarez notes that his content addresses real sales and not marketing conjecture.
The book features plain language, although the recurring word ‘creditability’ is less than popular in the vernacular. There are also fragmented sentences, the use of ‘sales person’ versus ‘salesperson’ (the book’s title notwithstanding) and ‘sites unseen’ versus ‘sights unseen.’
What about the meat of the matter? Is the book basic? Possibly, but the basics are important and to Suarez’s creditability he actually has sold and, more importantly, remembers how it is as he wrote the book. He presents applicable points – as elementary as they may occasionally be or as unheralded as they often are – and discusses concepts that are practical and relevant. In an ocean of sales books, there is some good advice within.
Anyone would guess they are coming and so the sports analogies soon arrive. It is frankly not a yoke on this side of the pond, but Americans, North Americans, just cannot stay away from a baseball analogy here or a football metaphor there. It is a cliché however and a concern when authors and instructors don’t even realize what a wide swath of audience one leaves behind: men who don’t follow millionaires, women who don’t either, the world where most people have never even heard of the Saints or Vikings (or have only of the actual ones).
One interesting section of this book is its discussion of prioritizing accounts based on potential. This is a major downfall of salespersons (activity versus achievement) and not a minor concern of sales managers either. The author’s, and the book’s specialty, is ‘route sales’ obviously and travelling from customer to customer. Here the concept of travelling based on a customer’s potential is of extra concern. Pages 63 and 64 offer good advice for analyzing and evaluating prospects and buying potential in as an educated manner as possible even if customer has not given the salesperson answers in this regard and the buyer and seller haven’t spoken. The author makes a case for potential analysis and forecasting based on history and the previous actions or reactions of the buyer and customer. On the flip side, the opposite is this reader’s sentiment regarding page 87’s statement that a salesperson must always be prepared with an answer for customers’ answers, question or objection. The art of psychology makes such a feat impossible. The concept of active listening and genuine rapport makes it inadvisable. This is especially pertinent in the era of information and empowered buyers. On the other hand, the author has reserved a web page called www.therightanswerinc.com.
The Savvy Salesperson is more a book of general sales and account management advice and less a script or process like Sandler or SPIN would be. Then again, there are many examples and topics examined, which is best practice sharing at its core.
*This book was sent to me compliments of the author or publisher
As we transition from 2012 into 2013 a number of sales imperatives either manifest themselves, become more important or the tendency takes more of a solid form.
Traditionally, sales has followed an established outline. This pattern, it is now clear, over-emphasized the needs of the seller.
Moreover, since human behaviour and reaction is almost unpredictable the process often failed.
The process went roughly as such: 1- Understanding one’s capabilities and the products or services represented 2- Prospecting in order to narrow down a vast marketplace to a list of prospects 3- Qualification or Marketing to prospects and gauging Money, Authority and Need or Desire 4- Presenting 5- Removing Objections 6- Trial Close including repeating 4 and 5 as necessary 7- Closing
http://www.alighaemi.com/wp/?p=646
This model is still valid and prevalent partly due to training and largely due to companies’ narrow focus and tight time-lines.
Nevertheless, based on my observation and experience, here are my predictions for factors that gain increasing prominence in sales for 2013 and beyond:
#1 Customers control the buying process – sympathy and servitude become increasingly important.
Buyers are more and more informed. Comparing brands, products and capabilities is less and less difficult. Salespersons need to educate buyers as early as possible and to do so from the ground up. Some might call this un-educate.
#2 Delivering more value
Selling will require better understanding why your solution is better than not only your competition’s, but also better than other requirements and the status quo.
Customers are armed with ample information. Could the seller better that?
#3 Salesforce specialization becomes more important.
Whether it is verticalization by industry or a technical specialization (by specific product or technology) focus will gain new prominence in sales. Increased customer knowledge requires similar improvement in account managers’ body of knowledge. Indeed, many a seller might find himself at a disadvantage knowledge-wise compared to the prospect in regards to the seller’s offering.
(Almost) everything is a commodity. How do you educate the buyer on what sets you apart? There is something (real) that sets you apart, right?
#4 Sales culture needs to become pervasive
Organizations that overhaul their internal culture to align marketing, analysts and products and management with sales win.
Currently, much time is wasted in internal squabbles and misalignment. Corporate jockeying is unlikely to end soon, but those who create ‘one organization’ may anticipate positive results.
One for all and all for one is difficult to instil unless driven at all levels at all times in every direction.
#5 Sales compensation has to be re-modelled to compensate the new reality in selling. Company representatives should be compensated for what it takes to turn a prospect into a customer today – not how it worked last year or the decade before. Networking, company and product representation (where customers look, think Social Media) and team selling and cooperation is what it takes nowadays. Are employees co-aligned? Their effectiveness and the company’s success depends on it. A move away from variable compensation is also underway in more innovative organizations. As a bonus, this evolution, when advertised, also garners customer trust.
I believe some elements will never change:
Salespersons who work hard, no matter any other circumstances, win http://www.alighaemi.com/wp/?p=443
Salespersons who challenge customers’ knowledge, perceptions and ‘blow things up’ win
Salespersons who ask questions win http://www.alighaemi.com/wp/?p=335
Salespersons who establish genuine and bi-directional rapport win
Who Is My Biggest Competitor?
In sales one typically thinks of his competitors as the other companies in the same industry.
- Belvedere sales staff likely fret over Johnson & Johnson’s shelf space
- Dell marketing targets HP
- Burger King is upset about Wendy’s taking over the number 2 spot.
- Mazda likely issues internal collateral on how its people handle Toyota customers
- Etc.
Based on experience, however, would you agree that other companies producing goods or services in the same vertical should every time be relegated to the number 3 spot every time? Consider that. There is that much slack in market for sales and prospects. If only one could convert those into sales, but if one’s direct competitors should be third on the list who or what occupies positions one and two?
One’s biggest competitor is always ‘doing nothing.’ This ‘do nothing’ is where a value or cost-benefit is not identified and companies choose to maintain status quo. Inattention to you has cost you a sale.
The second biggest competitor is likely something outside one’s industry. Any entity has limited resources, which it needs allocated and assigned according to actual or perceived priority. Perhaps your prospect has declined to move forward with the snow removal machines you were pitching in favour of upgrading the in-house cafeteria (or the endless permutations of that scenario)?
Also somewhere in there is commoditization. In our contemporary society there are so many on-going things and change happening at such speeds that not only customers are tired of you and your offering, but also your industry has become pedestrian. There simply is that much competition out there.
Consider the revised competitor line-up in your next sales and marketing effort.
*Things That Need To Go Away: A broader sense of the competition for your prospect’s dollars.
Do you remember IBM Computer Watson? It competed against two Jeopardy champions in 2011 and won.
http://www.bbc.co.uk/news/technology-12491688
The computer is back with a more practical and serious purpose. New York’s Memorial Sloan-Kettering Cancer Center and IBM are using Watson’s computing capability and massive database of 1.2 million current and former patients spanning 20 years to help the specialists diagnose cancer and recommend treatment options. Watson will tap into both the patient records and outside data, something it successfully demonstrated ability for on Jeopardy.
The question is whether Watson is as good in diagnosing alternatives as it is in reaching out into a datamart of facts, figures and general information.
Watson has been tasked with working on lung cancer to start.
Video has fast become a must-have for content marketers. With the advent of high-speed Internet and the ready availability of tools marketers have gradually, but surely, taken to increasing the video volume of their content marketing.
Evidence of that is everywhere. Video marketing, video blogs, video brochures and video channels are not novel any longer. Video, alongside or as part of Social Media engagement, is prevalent. The increase in Internet speeds around the globe has accelerated the trend not only from the supply side, but also from the demand side… but is that statement factual? Do more ‘audience’ members watch marketing-related videos? Is this something that the audiences demands or engages in? Yes, but consider that most of the world is on smaller mobile screens.
I was prompted to think about the subject not only because of the increase in video content, but also by a recent and credible article on SEO (Search Engine Optimization) which noted that Google ranks websites with video higher than those without. Incidentally, thank goodness this website has embedded YouTube videos. Should I add more?
Still, my question is whether the audiences is engaged with and interested in video Content Marketing? It certainly is more descriptive and obviously more visual, but it also requires a large investment of time if, that is a big if, focus and attention are given. Moreover, just like text, there is no shortage of media to disseminate the videos whose storage has become cheap.
Not knowing, or ignorance if put another way, is not typically a vaunted or flaunted quality. Leaders or managers are not fans of being, or at least advertising being, ignorant either.
However, educator and musician Craig Coggle in the United Kingdom thinks not knowing is not a bad thing. He considers it an opportunity to learn. Silver lining perhaps?
On a website called changethis.com he writes, “Innovation and creativity can only exist with the wonder of not knowing. I wonder what will happen if I mix this thing here with this thing over here. I don’t know but would love to find out. Curiosity is born from not knowing. Not knowing therefore can help us change and grow.”
He does have a point. Professing a lack of knowledge leads to more active listening, openness, curiosity and a more comfortable adjustment to change. It also makes one more comfortable with ‘not knowing.’
It does not lend itself to a quick and efficient exchange, it requires thinking, preparation or imagination and is at odds with ‘soldier mentality’ and the speed of modern business.
Yet, storytelling is one of the most effective and enduring techniques to sell and market a product, service or idea.
Whether selling or marketing incorporating a story will have a sublime effect on the sales and marketing effort. People love hearing stories and often retain it better than an unthreaded pitch.
Leveraging storytelling as a technique is a good idea to start. It has a soft feeling that likely rekindles memories of one’s childhood and comfort or speaks to the narrative mind of mankind.
Nonetheless, storytelling does not exempt one from rules of sales and marketing.
- Does the story invoke feelings and the warmness that is half the point of the technique?
- Does the story allow for the recipient’s imagination and cognitive abilities to work and fill in the blanks? Are there numbers and facts included?
- Like any sales pitch or marketing methodology the story cannot be perceived a false and bereft of logic.
- Does it relate to the listener?
- Does the story have a call to action?
In another sign that the sale of software has gone online and Cloud/SAAS is gaining prevalence Microsoft has ceased selling packaged software in China. Packaged software is CD or DVD-based software sold in packaging through a store. Microsoft is likely the largest vendor of retail software and this is yet another death knell for software packaging.
To be careful, this announcement relates to Microsoft’s anti-piracy efforts and is directing customers to download software for on-premise use. Nonetheless, with Microsoft already having a large Cloud/SAAS footprint via Hotmail, CRM, Office 365 et al how long will be before the software resides exclusively off the premise? Microsoft famously has not been on the vanguard of off-premise software hosting.
With Microsoft not selling retail software the retail channel may not even be there for offline software sales.
*I do work on behalf of Microsoft






