Bad Reputation

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May 102010
 

Another day and another couple of people giving the sales profession a bad name.

According to New Mexico’s KOB TV a couple of men have found a new way to give the sales profession a bad name. What is the novel way? Threatening and cursing potential customers.

The two young men have put the neighbourhood on edge by knocking on doors and abusing the residents who do not wish to buy magazine subscriptions. But that is not where things stopped. One resident claims that upon refusing the offer at his door he was threatened by one of the door-to-door men that he will tell his dad to come over to the door of the owner who refuses to buy. The young man also managed to add that his dad is a retired Marine Corps member. The salesperson left when the resident responded with musings of his shotgun.

Another neighbour states that the same two claimed to be working with University Of New Mexico’s the Children’s Cancer Center. They insisted that their proceeds go to charity. They had no proof and no ID to back up the claim.

It is important to distinguish the professionals with integrity from the detritus.

Go to www.kob.com for more.

*Things That Need To Go Away: salespeople threatening potential customers.

Listening Skills

 Articles, Management, Negotiating, Prospecting, Selling, Selling More, Uncategorized  Add Comments »
Apr 172010
 

Steps To Effective Listening:

1- Listen – yes, oddly enough one has to listen without prejudice or interrupting.
2- Listen For The Main Idea – what is the main and specific idea being put forth?
3- Listen For The Reason – what is the rationale and reason behind the ideas discussed or proposed? Is the premise correct and based in fact?
4- Organize – give the message conveyed an organization and order. It helps results gel and and for the listener to retain the information.
5- Ask Questions – once the speaker has ended ask questions. Be sure that your own biases have not tainted what you heard.

Taking notes is a good idea. It shows that the listener is interested. It also is a better method of keeping record than memory alone.

*Things That Need To Go Away: listening meetings where the decision has already been made and conclusion already reached.

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Marketing Techniques

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Apr 042010
 

I recently read a story about how when customers were offered several dozen tastes of jam sales decreased compared to when potential buyers were offered a mere four choices. This has been an intuitive finding of many marketing and sales professionals. Put yourself in the shoes of a customer given too many choices. Too many options often lead to paralysis. One goes back to the drawing board. One figures that there is a need for more research. Perhaps more investigation is needed? Should I consult friends? Read up more on the Internet?
In other words, choice is bad. Capitalism loses. Do not confuse your customers by offering too many choices.

While I am here, another counter-intuitive nugget is how companies want their salespersons to sell their top-of-the-line and most expensive offering. In that case, that option needs to not be the most expensive option. What? Precisely that. This is a sales technique that Starbucks perfected years ago. When faced with $6, $4 and $2 options most customers opted for the $4 option. Knowing that most customers would shy away from choosing the most expensive option and would also avoid the cheap option, most Starbucks customers picked the quasi-coffee product the company really wanted them to buy in the first: the $4 option. It was just that Starbucks had added a ‘luxury’ $6 alternative of which it didn’t expect to sell too many.
If your goal is to sell your ‘gold’ or top-of-the-line option then be sure that your offering includes a ‘platinum’ or topper-of-the-line choice for your customers to not choose.

The Purchasing Department

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Mar 152010
 

A good salesperson knows that unless the product being sold has to do with ‘purchasing’ or ‘supply chain’ or ‘procurement’ then he or she is not ultimately selling to the Purchasing Department. The purchasing agent or manager is shopping or buying for another group within the organization.

This can be empowering for the seller. For one, the purchasing department has rules and regulations it needs you to follow. Ask what those are, follow them and you have a level playing field of sorts (more on the “of sorts” in a moment). Secondly, if the purchasing department is speaking with you then the decision to buy has likely already been made. The purchasing agent is simply relaying the information and seeking to fulfill a request. Whether the action was prompted through your activities or in the background is a different matter. At this juncture, one can stop selling (not in the need creation sense) and concentrate on following the rules set forth. One of these might be the procurement of the lowest price possible; however, this requirement is usually offset by minimum quality standards imposed upon the product and the vendor. Countering a lower price request with information on the quality, reliability and service of your company is sensible at this juncture.

With all due respect to the Purchasing Department, which has an important role to play in ensuring various rules and regulations are followed and that the organization takes delivery of the correct service or product it requires, selling to this department is often not fruitful. The needs are determined by the various lines of business and relayed to the company’s buyers. Spending time to create needs and describing a product or service’s pay-off does not belong to this part of the organization. Neither does excessive price negotiations because, at the end of the day, this branch of the buying firm has to be, and is, concerned with taking timely delivery of the correct product without subsequent deficiencies or defects. The price negotiation, if any, is simply the methodical processing of a buyer’s duties.

Which CRM (Customer Relationship Management) software?

 Articles, Management, Marketing, Prospecting, Selling, Selling More, Uncategorized  2 Comments »
Feb 172010
 

I was recently part of a discussion on CRM and the best way to choose a Customer Relationship Management package. With CRM/SFA/contact management becoming mainstream and accepted more and more questions come up about which one of the myriad of options is the better one.

I have been part of sales team for Oracle CRM and Sage CRM. I have also been the user, competed against or part of the buying process for Siebel, SAP, Salesforce and Sage. Here are my thoughts.

First and foremost, the starting point should not be the features and functionality of the technology. The departure point is the needs of the buyer, the existing processes of the company, how they need to change and improve and the goals that need to be realized. If these factors have not been mapped then the company is not ready for a CRM purchase.

Moreover, which software has proven capability in the buying firm’s niche, vertical or broad industry?

Next, remembering that CRM is there to enable the company to know itself and its customers, how does the productivity tool play with the company’s actual data and processes? This is where a customized demonstration including the aforementioned information is very helpful. No, not a generic demo and no not a downloaded sample of the program. Can one see the needs fulfilled in the CRM and can one see the desired improvements fulfilled in the potential package? If any integrations are required, can this be demonstrated? What about the reporting capabilities, formats in which the reports are available and, crucially, their ease of use? Which vendor gives you the best training for their product?

Incidentally, avoid paying for features one does not need and will not use.

I don’t want to get into the hosted versus on-site flavours of CRM discussion here, but should one be considering a hosted or SAAS (Software As A Service)/cloud software (the cloud refers to the nebulous Internet mode of delivery) the question to ask is what happens at the end of the contract period. Who owns the data? How can one receive it from the hosting company? Is there an additional fee attached to these stipulations?

Of course, cost is a factor. SAAS operates on the leasing model (low up-front costs/potentially more expensive overall), while the traditional method gives you the software in perpetuity (except there is an installation cost and time-line that needs to be factored in). As I said, won’t get into this aspect more at this time.

The technology’s capability will only follow the determination of wants, needs, processes and desired outcome strategies. Mastering these has the added benefit that they necessitate consulting and working with the end-users of the product, thus helping obtain their buy-in. What is the purpose of buying CRM if sales, service or the marketing department really do not want to use it?

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Outsourcing Telemarketing, Lead Qualification Or Generation

 Articles, Marketing, Prospecting, Selling  1 Comment »
Feb 142010
 

A professional marketing contact brought up the topic of outsourcing telemarketing and lead qualification and generation this week. What are the advantages and pitfalls of such arrangements?

Marketing departments like these services and gravitate towards such arrangements. Sales managers are desperate for sales and are looking for solutions. Salespeople are often less amiable. The arrangement frequently leads to tension between the sales and marketing departments, within the sales departments and even discourages the sales team from pursuing any leads that have been generated if the initial pass is less than optimal.

Outsourcing is no longer exceptional at companies of any size. Respective marketing departments feel that outsourcing agencies are a simple and relatively pain-free answer to the demands of the organization for lead generation and lead creation (after all that is part of what marketing does). The sales department is constantly asking for more and better leads. It all seems to come together. Consequently, the number of outside agencies that take over some of the functions of sales and marketing departments has ballooned. From being the front-line for inbound calls to outbound calling and even setting appointments the outsourcing firm stands ready to do all or a part of it.

Marketing is looking for a Return On Investment justification.

Sales is looking for increased sales leads or slam-dunk sales.

Sales management is hoping for the same as above two, and needs to ensure the integrity of its processes and effort.

I have been involved with organizations that have hired outsourced firms several times. The results have been uneven. The promise, inevitably, exceeds what is delivered. There is no silver bullet and if anything is too good to be true, then it is.

Here are several tips and factors to consider:

  • Marketing must involve and integrate the sales department into its decision-making process. If the decision is made to go ahead then the salespeople – the direct beneficiaries of the outsourcing – should be part of the team that trains the outsourcing firm’s team.
  • Do not short-change training.
  • Plan for change management. How are product updates handled? How are changed versions taught? How is a change in company goals and target market communicated? Have you budgeted for these including trips, visits and training?
  • Do not discount the need for airtight definitions including leads, prospects, hot ones, credit, time-lines that are acceptable, appointments (should that be part of the mandate) and the definition of acceptable and unacceptable leads, calls, appointments, sales, etc. While outsourcing companies often provide some credit or replacement time, calls or leads for any ‘returned’ results that were not acceptable, these can quickly become overwhelming and a source of dispute. Moreover, companies do not always have the best feedback mechanism set up internally.
  • Similarly, what are the metrics, what is the formal mechanism for feedback and what rights does it confer upon the two parties?
  • Could you, for efficiencies sake, integrate and automate your internal sales tools and software with the outsourced agency’s?
  • What is your fallback and contingency plan? Should the new arrangement not succeed have you kept an infrastructure in place that can be reactivated internally?
  • What is in the contract cancellation clause?
  • Do not allow the new arrangement to become a source of conflict between different departments. Involve all concerned prior to pulling the trigger (see first bullet above) and have an internal charter, agreement and buy-in before proceeding. To do otherwise, is to contribute to disappointment and create resentment and disenchantment just the opposite of what the sales and marketing groups sought.

Asking – Level III

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Jan 162010
 

Most serious salespeople know that asking questions is better than talking when selling. The most elementary type of questioning is what I call Level I questions. Example, “How much do you have to spend?” or “what features are you looking for?” Standard stuff, but better than telling a customer your cars are $30,000 or that they come with three DVD players inside without caring to find out about their budget or needs in the first place.

Level II questions are posed when the salesperson goes beyond the obvious, customizes and probes deeply. I have never come across better Level II questions than what SPIN Selling offers. “How much lost produce would not having an irrigation system result in annually? Could you quantify that?” Level II questions address implication and consequence in a personalized manner.

Most people in sales, however, are not aware of the Level III. These questions relate not so much to what you need to do as they do what the buying person/firm/group needs to do. Politics, Personality, Proof, etc. are all reasons a sale either does not happen or is postponed.
A Level III questioner asks about the buyer’s internal processes recognizing that there are always internal processes at play. Level III questions ask what is going inside the labyrinth the buyer lives in. By knowing this, the seller can begin assisting managing the internal issues. Just because the sales team has done an outstanding job producing compelling reasons for the sale to happen with which the buying team has no argument it does not follow that internal buyer mechanisms have been triggered. Be a Level IIIer and ask how you could work to take agreement to a Purchase Order.

While you are it review the below article.
The Other Side

Selling To The Overly Difficult

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Dec 292009
 

Sooner or later every salesperson comes across a buyer who believes in him or herself to such an extent that doors are shut even before the sales process begins. These prospects are potentially current or former Mr. or Ms. salespersons that either consciously wants to make life difficult for the salesperson or have a point to make regarding their own tough as nails trait. There are two ways to manage this difficult situation.

Firstly, be prepared to declare your intention to abandon the sales process. “Ms. prospect, I can see by your reaction that no matter what I say or show today, you are not interested. Given that, I believe it is a better use of both our times for me to leave.” It is a stronger version of Sandler’s ‘negative reverse’ (“I am not yet sure whether we have a solution for you). It is like verbal judo. Their grisly exterior and standoffish personality used to inform the prospect that they have gone too far with the closed-mindedness and you will not be a victim. Time to fold.

Naturally, this applies if you have exhausted your options. For instance, as a prerequisite, have you really listened to the customer? If not, read this: http://www.alighaemi.com/wp/?p=411. In all cases, control your emotions, save yourself the wrinkles and simultaneously de-escalate. As always, do not take it personally. It is not personal. Even if it is on the customer’s side, do not make it personal on your part.

Secondly, do strongly consider packing it up and leaving. After all, wouldn’t you rather speak to someone who wishes to give you a fair chance and consider your service?

Two New Books Made Me Think

 Articles, Management, Marketing, Negotiating, Prospecting, Selling  Add Comments »
Nov 262009
 

Common wisdom in sales and management circles has revolved around the need to set personal goals, visualize, negotiate, and achieve.
A new school of thought suggests that the secret to success could actually be to take the opposite route.
Two new books regarding happiness, success, communication and persuasion argue respectively that happiness should not come at the expense of realism and the way to negotiation is to be receptive and listen with purity.

Barbara Ehrenreich’s Bright-Sided: How the Relentless Promotion of Positive Thinking Has Undermined America, from the author of over a dozen other books, has used her experience as a breast cancer survivor to argue that the advocates of positive thinking are doing their followers a disservice. She insists that being positive about everything is not always good or superior. In other words, in corporate-speak, not every problem is a challenge and not every challenge is an opportunity. Ehrenreich claims that the incessant abuse of positive thinking has lead to a culture of not confronting problems. This school of thought leads to tangible problems.

Dr. Mark Goulston’s Just Listen: Discover The Secret To Getting Through To Absolutely Anyone comes from the perspective of a psychiatrist and an FBI negotiator. He claims that the contemporary needs for ‘producing’ costs us business and personal relationships. Should we accept that sales, marketing and management have relating and relationship building as their cornerstones then we would do well to delve deeper into his thoughts. The book takes the stance that the best way to achieve what we want – be it a sale, a promotion or a concession – is to be receptive to the other party – i.e. empathy. The book insists that taking a more ‘natural’ stance is actually the better way to succeed. Goulston believes by listening, and listening even more deeply, could one get through to the angry customer, narcissistic co-worker or dissatisfied employee. He goes on to insist that the social media does us a disservice by emphasizing quantity over quality. According to the book, the best way to listen is to listen without an agenda. This would be the purest form of listening. Oddly enough, he does have a Facebook account!

Just Listen To Buy The Book

Just Listen More information

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Bright-sided To Buy The Book

Bright-sided More information

brightsided

Relating To The Seller

 Marketing, Selling  Add Comments »
Oct 262009
 

Among the common criteria usually prescribed for achieving sale success, ‘rapport’ and ‘relating’ are two that are often cited.
The idea is that we buy from those we like or share experiences or traits with. This idea is not revolutionary. We seek the safety of the known and avoid dark places.

A new Canadian study for the Journal Of Consumer research, however, takes the study one step further and offers even stronger evidence in this regard. The study claims that, what it terms, “incidental” traits help persuade a consumer to make a purchase. These motivating factors include extraneous factors like shared names, shared birthdays and hometowns.
The sales process is irrational after all.

Journal Of Consumer Research

This actually reminded me of my Whistler trip where the facilities’ employees – lifts, counter staff and the like – wore tags depicting their name and country of origin. I now know that many Australians and Japanese work at Whistler.
What the study highlighted makes me think. By deduction, the opposite can be true as well. Could the information that the workers at Whistler are Japanese and Australian be detrimental to my purchasing decisions?
It is possibly a double-edged sword.

What does this idea say about the desire of many buyers to have a ‘trusted advisor’? Trust is a function of time and experience. Could relating to a seller be a stronger factor in situations involving smaller purchases? Very possible.
And could being a ‘trusted advisor’ or ‘relating’ also be a double-edged sword in that the relationship requires a higher level of service and knowledge?
After all, one would expect a higher quality of engagement from the ‘trusted advisor’ or someone one has a rapport with than from any seller. The relationship has a lot longer to drop.

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