Always give the customer a chance to say No!

The golden rule always was 'don't give the customer a chance to say NO'. That is don't ask any questions that could result in a 'NO' answer and consequently sabotage your sale.

For example, don't ask the customer 'is this something that you might be interested in' if there is a chance he/she could say 'NO'. The logic was keep listing the benefits, the features and with persistence and charm you will eventually get the sale.

Now, if you are selling door to door, or over the phone that logic is fine. But, if you are selling complex or high value B2B solutions you will want to hear a 'No' as much as you will want to hear a 'Yes '. That is because the nature of the answer is irrelevant in terms of prequalification and consultative selling.

With sales cycles lasting months, you had better find out as early as possible if what you have could be of interest to the customer. If it is not, then either you need to go back to the drawing board and find another solution, or go back to your prospect list and find another potential customer.

Getting a 'NO' in week 2 is much better than getting it in week 22, after multiple futile sales calls, presentations and even a proposal. Your sales time is precious so make it easy for the customer to tell you if you are wasting your time, or at least going in the wrong direction.

Here are some of the questions you want to ask, regardless of whether the answer is YES, or NO:

· - I am not sure if this is something that you might be interested in?

· Is now a good time to talk?

· Is this the right time for you to consider this option?

· Is this a priority for your business at this time?

· Do you have a budget for this?

· Do you have decision making responsibility for this?

· Is there a reason why you are talking to us, given that you have been a customer of our competitor for so long?

If 'NO' is the answer then how will it help you advance your sales process, or does it suggest that your sales efforts would be better invested elsewhere.

Now more than ever you need a plan…

Do you have a game plan for how you will see out the market slowdown? Is everybody clear on what needs to be done, when it needs to be done and what it will cost?

With so much talk of a slowdown there is a fair degree of panic among sales people and their managers. How to keep your head when everybody around you is losing theirs? Well, by putting an action plan together and then putting it to work.

No more than ever you need a plan. With the economic slowdown taking effect it is vital that you respond to the challenge in a proactive and thought-through manner, focusing your limited sales resources clearly.

The Chinese saying warns that 'planning without action is a dream and action without a plan is a night mare'. So, let's be clear about the type of plan that is required - an action plan, including priorities, tasks (over 30, 60 and 90 days), budget, responsibilities, timeline, etc.

Brian Tracy suggests that every minute spent planning saves 10 minutes in execution, as a result giving a 1,000 percent Return on Energy. Well, I am not sure about the maths, but I sure do believe in the necessity of planning.

Click here if you would like to read more on what should be in your plan, or the questions others are likely to ask regarding your plan.

The Psychology Of A Slowdown…

Psychologists have an interesting way of describing how we deal with set-backs, disappointments and disasters.  So, it struck me that the same principles probably apply to how we deal with such events as; a market slowdown, or a sales slide. 

In particular we, as sales managers, move through the key stages of; denial, anger, depression and acceptance?

Now, very few people are in denial regarding the present market slowdown - the media coverage has made sure we are all fully aware of the economic reality.   Here is a typical example:

'we already see a dramatic drop off in the number of government tenders  and we are anticipating the private sector to do something similar...'   No denial there - that manager is prepared for the worst.  But, what is he going to do about it?

John O Gorman and myself talk to dozens of managers every week, for sure some are 'angry' - 'the government, or the banks shouldn't have….' and many more are 'depressed' - 'I don't know where we will be at the end of it.. there is no real appetite for  business development in the short term at least...'

However, a growing number of sales managers have reached the all important acceptance stage and are now empowered to take action.  They are focused on the key strategies required for selling in a slowdown – increasing the level of sales activity, sharpening their sales skills, etc.

Here is an example: 'With the redundancies out of the way we are now very clearly focused on getting out in front of our customers, as well as potential customers – we know exactly what we need to do.  We need to sell, sell, sell...'

So, which stage are you in?  Is the rest of your management team at the same stage?  Do you know exactly what you need to do?

ROI - Yes, everybody wants it, but nobody believes it!

'Yes, everybody wants it, but nobody believes it!' its not a cryptic clue, we are talking about ROI models. Buyers want to see them (and will be very suspicious if you don't have one), but don't believe them once they are provided.

We have listened to buyers on the subject and here are the reasons why the ROI models provided by sales people are not working:

1. We have our own – 'we prefer to use our own model' – 'salespeople only use a model to give them ammunition to sell' – 'some information we don't want to share'

2. Our business is different – 'that model is more suited to small companies…'

3. It is too complex – 'there are too many sheets, too many calculations, too many assumptions, etc.'

4. It is biased – 'what else would you say (being a salesman)'

5. It doesn't consider the total cost of ownership –'OK, you put the cost at 1.5 million, but that is just your charges, there will be a lot more cost on our side'

6. The assumptions made are not verified – for example 'the efficiency gain you have put at 50%, but what is that based on?' Is that backed up by research, or by your customers?

7. It is presented as a 'fait accompli' – 'if we are not involved in creating the model, then we don't own it'

8. It is confidential – 'we cannot share that information because it is confidential to our business'

Recognizing these obstacles provides clear guidance as to how ROI models can be made more effective. It is not about the perfect model, but an easy to use and credible tool that engages the buyer in exploring the key benefits of your solution to his/her business.

In fact it is probably a series of tools. This is important, as the first introduction to the concept of payback or financial return from your solution is likely to be at a high level, perhaps using standard industry figures, or benchmarks and based on the results typically achieved by other customers.

As the sales cycle progresses the seller will hopefully get a chance to get into more detail and will be involved in building a business case that is tailored to the specifics of the customer's business. However, the business case should always be communicated right from the initial sales meetings and presentations, using examples and averages based on other clients.

If the business case conversation is left till the sales cycle is advanced, then there is the risk that it will take place without the salesperson being involved. When this happens the danger is that the buyer will say we have our own business case, but the information contained therein is confidential. Obviously one concern that the buyer will have is that any costings used will set the expectations of the seller regarding price and therefore prevent a competitive tender.

Having such a model is also vital to quantifying how customers have benefited from your solution - which in itself represents the most powerful marketing information your sales team needs. Indeed, it is the zenith of understanding in terms of the compelling reason to buy your solution.

Sales training is not enough!

What type of training do we traditionally provide to sales people? Well here is a list:

- Selling skills
- Presentation skills
- Negotiation skills
- Closing techniques
- Computer skills
- Product knowledge

But, think of the characteristics of top performing sales people:

- Confident
- Driven
- Determined
- Motivated
- Relationship builder
- Good communicator
- Product knowledge
- Contacts & Network
- Sales process

Now, compare the two lists. 80% of training is based on developing knowledge and skills, where as 80% of the characteristics of sales champions are attitude based.

Most training focuses on knowledge and skills, where as to be a top performer is 80% attitude. The implication is that developing sales champions cannot take place in the classroom alone. Hence the important role of coaching in developing top performing sales people.

The Challenge to Stay Positive

Motivation is the vital X Factor in Sales, however with so much talk
of a market downturn it can be a challenge to stay positive.

So to counterbalance all the negativity here are some
quotes from business gurus to encourage you:

'Like a chicken your business is healtiest when it has to search for
its food'.
Henry Ford

'There are no such thing as growth industries….only companies
organized and operated to create and capitalize on growth
opportunities.'
Theodore Levitt

'A company [or person] cannot grow while staying the same. It is
literally impossible. So the upheavals experienced by a company
[person] are lessons from the outside world that must be learned...'
James B. Wood

'All good-to-great companies [persons] began the process of finding a
path to greatness by confronting the brutal facts of their current
reality.'
Jim Collins

Selling in a Down-turn

In the mist of all the doom and gloom here are 5 tips managers are applying to gain a higher proportion of a smaller number of orders during the slowdown and be primed and to be ready when the downturn is over.

1. Stay positive

It is vitally important not to succumb to the negativity that will
de-motivate and paralyze so many. Don't get involved in complaining - the
market is still big, even in a downturn.

2. Re-double your Sales Efforts (work harder)

- Increase the level of sales activity - a market downturn means you
are going to have to work harder. If you did 6 sales calls last month
then do 8 or 10 this month.
- There are still people buying so be proactive – get out from behind the desk more often and get in front of more potential customers.

3. Focus on sales effectiveness (work smarter)

- Revisit your sales proposition - can you offer the customer a more compelling reason to buy?
- Put a personal, as well as a business; sales plan or campaign
together so as to guide you in what needs to be done.
- Sharpen your sales skills, take a sales course, attend a seminar, or
buy a book/audio cassette.
- When budgets are tight it is important to sell higher (i.e. to more
senior level managers)
- Prequalify early and often, it is important to focus your sales
energies where they can deliver results
- Look at ways of reducing the level of risk / commitment on the part
of new customers (e.g. small initial assignment, pilot project,
phasing of payment, etc.)

4. Leverage what you have got

- Leverage your customers and contacts - ask for referrals and
recommendations from them
- Follow up all leads and revisit any dormant accounts
- Focus on cross selling and up-selling among your existing customer base

5. Help your customers through the down-turn

- Show how your solutions/services can cut costs, or increase
sales in their business.
- Keep customers, by growing relationships and improving service

The barriers to generating more appointments

What are the key challenges to generating more appointments? Well, here are the key factors identified by approx. 50 UK sales people and their managers at a workshop I participated in recently:

1. 1. 1. Motivation, discipline and resilience / overcome the fear of rejection

2. 2. 2. High levels of confidence (it is important to come across as such)

3. 3. 3. Having a good list to work from and a system to manage and schedule contact

4. 4. 4. Being well equipped to overcome objections

5. 5. 5. A good opening – got to get their interest in the first 15 seconds

6. 6. 6. How to deal with gatekeepers, no names policy and voice mail

7. 7. 7. Staying in contact so that you are 'on the buyers mind' when the timing is right to buy

Time for a New Approach to Lead Generation

As lead generation is the genesis of all sales and most sales people say it is a real barrier to them selling more, a new approach is required.

Indeed, 9 out of 10 managers say their sales people are not meeting enough potential customers – making it the number one barrier to accelerating sales growth. Little wonder it keeps appearing in this blog (click on the labels panel to view more on the subject)!

Most sales people are still responsible for generating the majority of their sales leads, and once contacts and referrals run out, they struggle.

Our research shows that, in most companies, less than 20% of leads are generated by marketing activities, with surprisingly high levels of dependence on cold calling. Amazingly only a minority measure marketing in terms of leads generated.

Something as important as lead generation needs to be put on a firmer footing. It should not just be part of the reps job description, but an integral part of the entire organizations sales and marketing plans, structures, etc.

If something is so hard (as lead generation is for most reps) then there must be something wrong with the way it is being approached. Instead of leaving it to individual sales people and to cold calling; there needs to be a more planned, structured and systematic approach to lead generation.

Time for a New Approach to Lead Generation

As lead generation is the genesis of all sales and most sales people say it is a real barrier to them selling more, a new approach is required.

Indeed, 9 out of 10 managers say their sales people are not meeting enough more potential customers – making it the number one barrier to accelerating sales growth. Little wonder it keeps appearing in this blog (click on the labels panel to view more on the subject)!

Most sales people are still responsible for generating the majority of their sales leads, and once contacts and referrals run out, they struggle.

Our research shows that, in most companies, less than 20% of leads are generated by marketing activities, with surprisingly high levels of dependence on cold calling. Amazingly only a minority measure marketing in terms of leads generated.

Something as important as lead generation needs to be put on a firmer footing. It should not just be part of the reps job description, but an integral part of the entire organizations sales and marketing plans, structures, etc.

If something is so hard (as lead generation is for most reps) then there must be something wrong with the way it is being approached. Instead of leaving it to individual sales people and to cold calling; there needs to be a more planned, structured and systematic approach to lead generation.