How Are You Going to Pay The Buyer For His, or Her Time?

How are you going to pay the buyer for his or her time in meeting with you?  Just what will the reward be?

 

What is Your Return On Sales Encounter

The challenge is not just to demonstrate the benefits of your products and services, but also the benefits for the buyer of even meeting with you.  After all, the meeting has not been free!

Calculating the Cost of the Sales Meeting
Many sales managers have calculated the cost of a sales call and even a sales cycle. The figures can be frightening. However, few have stopped to consider the buyer’s costs and what he or she is getting in return! We call it the Return On Sales Encounter.

Return on Sales Encounter

Imagine the buyer took a calculator in hand and calculated the return on an encounter with a salesperson, starting with the cost of a meeting in the first instance and the inevitable follow up emails and calls that will result!

     Buyer's Direct       Cost of

     Salary Cost           1 Hour

     60,000                    47

     80,000                    63

     100,000                  78

     150,000                117

So, you have just cost the buyer anywhere between 47 and 117 euro, dollars, or pounds depending on how senior he, or she is. But of course that has just covered his direct salary cost, so his, or her encounter with you has to be worth a lot more than that!

Have you been worth it?

Now of course, very few buyers will do the maths, but that does not suggest that they are not acutely aware of the value of their time. There are not enough hours in the day and there are lots of other things that the buyer could have been doing instead of meeting with you. Not least of which is dealing with the many emails and voice mails that are now waiting.

How to Buy Yourself More Time?

It is time to show your value, to demonstrate your worth. So, tell the buyer something that he, or she did not know, or knew but had forgotten about. Instead of delivering your features and benefits pitch, share an insight that is relevant to the performance of his, or her business. Tell him, or her what his competitors and peers are doing and the implications, or lessons to learned.

What else is required?  Well, recognize the value of his, or her time. Don’t take up an more of it than is necessary. That includes not calling, or emailing unless you have some value to offer, that is something interesting and useful to say. It means that if you say your meeting is going to last for 40 minutes, keep it to 40 minutes.

If that is too difficult, then just write the buyer a check for him, or her time instead!

Buyers Cringe as Telemarketing Numbers Rise

I talked to a manager in one of the leading telemarketing agencies today. He told me of new offices opening worldwide and the addition of hundreds of new telemarketers. Needless I wished him and his team well. It was the only polite thing to do. However, privately I shuddered. Here is what I was really thinking – 'great another couple of hundred cold calling telemarketers is exactly what the world’s buyer DON'T need!'

At the same time many of our clients have been very slow to wean away from their dependence on traditional lead generation methods and in particular cold calling. That is in spite of the fact that response rates for the past 12 months have been falling beneath the floor.

The reality is that those who are depending on cold calling and telemarketing to generate new prospects and new customers are in for a world of pain. To those managers we say ‘take the next cold call that comes into your business and see how you like it!’

Like it, or not the telemarketer is the first causality of the buying revolution. The good news is that there are lots of alternatives that are much more effective and much more buyer friendly. Also there are a great number of ways to warm up even the coldest of calls.

Revolutionary Ideas: Ask Fewer Questions In Your First Meetings

Question With Care!

Salespeople have been told to talk less and listen more. In this way they can gain a better understanding of the needs of their customers and prospects. That means salespeople are arming themselves with more and better questions aimed at qualifying the prospect, understanding his needs, eliciting information regarding the buying process, the budget, etc.

However, like any technique that is overused it can become ineffective, even dangerous. This is particularly the case where salespeople have an unrealistic expectation as to the number or type of questions they can ask at early stages of the relationship with the prospect.

To Ask or Not To Ask, That Is The Question!

Just how many questions can you answer on an initial call, either by phone, or face to face? To this question most sales people say.

Just how many questions can you ask in a:	Most sales people typically answer:
first meeting	4-8.
telephone call	2-3

Are these numbers right? Well they seem fair, but perhaps talk of numbers misses the point. It is not just how many questions are asked, but what is asked, how it is asked, when it is asked, and most importantly why it is asked.

Why Buyers Are Weary of The Seller’s Questions.

One thing is certain buyers are increasingly weary of salesperson’s questions. That is a good place to start with a word of warning – when buyers hear questions they fear closing. So, salespeople must question carefully.

There is a reason why buyers sit back and let sales people do all the talking, that is because that way they feel more in control. When the salesperson stops talking, he generally starts asking questions that the buyer may not want to answer for any or all of the following reasons:

· Political, or other sensitivities (somebody’s nose will be out of joint, or I don’t want to look bad)

· Genuine information gaps (we don’t have that information)

· Issues of confidentiality (I don’t want our competitors finding out)

· Issues of trust (I don’t know you)

· Perceived relevance, or appropriateness (why are you asking that)

· Issues of competitive fairness (if I tell you I will have to tell all the others competing)

· Fear of being sold to (if I tell you, you will use that to sell to us)

· Don’t want to prejudice your response (we want to hear your suggestions, not just a regurgitation of our answers)

In particular buyers are weary of questions designed to: box them buyer in, to prequalify them, to uncover and accentuate pain, to hastily pin-point a solution, or create tension for change.

Buyers are right to be reticent in answering questions, after all information is power and by asking questions the salesperson is in effect looking to share the buyer’s power. Take for example, one sales methodology, employing what it describes as the ‘Progressive Questioning Control Technique’.

In the use of questions to control the buying process the salesperson must exercise great care. So question with care and ask questions that show that you care.

Timing is Everything.

Sales people must be careful about asking questions that are inappropriately; invasive, and undiplomatic, or direct. This is principally a factor of the timing. Just as in telling jokes, timing is essential to asking good questions. Even good questions asked in the wrong manner, or at the wrong time, can make a bad salesperson.

Why is this important? Well, inappropriate or simplistic questions highlight to the buyer a deficiency of knowledge, interest, empathy, or understanding on the part of the seller.

The questions depend on the stage you are at. Asking the wrong questions at the wrong time can present problems for both buyer and seller. With this in mind we here is a summary of some of the questions that are relevant at the different stages of the buying cycle (note we use the term buying cycle as opposed to sales cycle).

Stage	Contact	Meeting	Cycles	Orders	Repeat
Objective	Nurture	Explore	Engage	Business Case	Client Success
Questions	Should we be in contact? Do they fit the profile? What needs might they have? What information do they find useful? Should we meet?	Should we be talking? Is this of interest? What else might be of interest?	Should we engage (can we help)? How to engage (help)? Who else should we engage with? What is the need? What is the ideal solution? Who is the ideal supplier? How and when will the decision be made? Is there a budget allocated, etc?	What is the business case? Is it compelling? What are the costs, benefits, risks and constraints?	How are we impacting on your business? What are the metrics? Will you recommend us to others? Can we help you tell the story of your success? How can we help you further?

Is there a Universal List of Questions? Well, no. just as there is no universal sales script, at least not an effective one. Anyhow it is less about the questions than the consultative process and that must be tailored to the client and his, or her specific situation.

The main point to be gleaned from this table is that there is no universal list of questions. The questions asked depends on the stage that you are at with the prospect. Thinking this way is very important. Let’s take an analogy.

Imagine asking how much a person earns on the first date? That is a question for the 5th, or 6^th if even that. Not for the first time buyers are advising us as salespeople to slow down.

What is the objective of the questions?

Another word of caution, don’t spend precision time with the prospect gathering information (e.g. number of employees, product range, etc.) that can be gathered in other more efficient ways (such as the company’s web site).

Similarly, limit the time spent on form filling type questions, as opposed to build and demonstrate understanding, interest or empathy. That is the questions of a salesman, as opposed to a consultant, advisor, or expert.

Earning the Right to Ask Questions.

Remember the buyer owes you nothing, and that includes answers to your questions. The sales person has to earn the right to ask questions and build the trust that will enable buyers to answer freely and in detail. How to do this? Well, by focusing more on how you can help and in particular the information you can share, rather than the information that you want.

In other words the salesperson who shows up at a meeting with a standard product led sales pitch and a list of questions to determine needs and facilitate his, or her sales process prequalification will be seen by buyers as self serving and worthy of being left waiting in the hall. Clearly buyers have preference for dealing with the salesperson that has relevant insights, experiences and ideas to share.

At the early stage of the relationship, salespeople must place more emphasis on the information you give and less on the information you want.

Questions for Early Stage Meetings.

The greatest challenge salespeople seem to face is in respect of questions to be asked in early stage meetings. This stems from the fact that salespeople are trying to achieve too much in their initial customer encounter. They are aiming, somewhat unrealistically, for the one meeting qualification and even close.

However, the salesperson’s rush to elicit needs, propose a solution and prequalify the opportunity is not shared by the buyers. As we have said elsewhere salespeople are having to cut back on their expectations and slow down to the speed of the buyer.

The objective of the first meeting is to share some useful information with the buyer, that is an insight with respect to what his counterparts, or competitors are doing, the challenges they are facing and the results they are achieving. After all that is the most powerful way of communicating the benefits of your solution. Here is an example:

We have worked with a,b,c, to achieve x,y and z, and based on these projects we have… noticed an important trend… identified a range of key success factors… identified a number of factors that are often overlooked… employed a new way of… achieved some surprising results…

So, the questions you ask logically relate to that insight shared, to those challenges, benefits and trends discussed. For example:

• Do you think this (insight) is relevant? Have you seen this trend yourself?

• Who does it affect in your business? How does it affect them?

• Is this something that you would be interested in exploring a little more? What aspects of it in particular?

• How important do you think this could be? Do you think it could be a priority? For when?

• Other companies have faced challenges in implementing (budget, time, other priorities, etc.) do you think these would apply here?

•  Has this issue been examined before?  If 'yes', What was the outcome?   If 'no', is there a reason why this issue has not be address before?

• What would you like to do next? Is there anybody else that would be interested?

Getting Real About Prequalification.

Clearly, this is quite a leap from the traditional Budget, Authority, Need and Timing questions and prequalification that has traditionally been employed in a time of buoyant demand. We are not saying that these are no longer relevant, we are saying that by necessity they must be employed rigorously to real sales opportunities not to early stage conversations.

It is time to get real about prequalification. In a market with more supplier than buyers, it is the latter that is prequalifying the former and not the other way around. During the boom years salespeople had justification and indeed pressure not to waste time selling to those that did not have a budget. Today they don't have a choice. They have to sell to all those that could represent potential customers, regardless of whether they are ready to buy next quarter, or 3 quarters out.

Rather than being focused on prequalification – have they got a budget to spend? - the focus is on answering the question ‘Should we be talking?’ and ‘Is this of interest.’ Of course, when a potential sales opportunity emerges and the process of engagement begins then a very different set of questions are required.

Revolutionary Ideas: To Speed Up The Sale You Must Slow Down

Longer Buying Cycles Mean Sales People Must Slow Down.

Shortening sales cycles is something that managers dream about. But in most cases, it is just that – a dream. Yes, longer sales cycles have implications for meeting sales targets and sales costs, as well as for the overall level of visibility, predictability and control in respect of sales.

However, the reality is that regardless of lengthening sales cycles, a slower sale, is better than a lost sale. So here is another revolutionary idea - you need to speed up the sale, you may need to slow down.

To Speed Up, You May Need to Slow Down.

Salespeople often rush between appointments, skillfully avoiding the congestion bottlenecks and finding all the short cuts. They like to drive, talk and sell faster - it is all part of our genetic make-up! However, as buyers have put on the brakes salespeople who can’t, or won’t slow down to the new pace at which buyers are making buying decisions will look in the rear view mirror and find that the prospect is nowhere to be seen.

There was a time when you could prequalify over the phone and close in the first sales meeting. But no longer! It is going to take many calls and many meetings to get to the starting line, not to talk about the finishing point.

To improve win rates in a tough market, sellers have to revisit the timing on their sales pipeline and adjust the timing of their ‘conveyor-like’ sales processes. Specifically, they have to slow down in the following 10 ways:

1. Slowdown before you diagnose the solution – you have seen the situation 100s of times and can clearly see the problem, but slow down so as to ensure that you understand all the nuances, as well as the political and organizational context

2. Slow down before prequalifying – in a market of buoyant demand salespeople were eager to prequalify early so that they could spend their limited time with those who represented the greatest prospect of a sales. Market conditions have changed however and that means selling to those who have a budget is not enough. For every customer who is ready to buy, there are 8, or 9 that have the potential to buy but are not. They may not even be aware that they have a problem and so replacing prequalification that identifies those ready to buy, with marketing that nurtures those who can and perhaps should buy, but are not ready, is key.

3. Slow down in your first meeting – too many sales people are still aiming for the one meeting prequalification and even one meeting close. However, those salespeople are being increasingly boycotted by buyers who want to go at their own pace. That is because for buyers it feels too much like being sold to. Increasingly salespeople are realizing that you cannot understand a buyer, his needs, or his business in one meeting, just as you cannot build a relationship, or establish trust in that 45 minute time frame.

4. Slow down before proposing a solution – take time to understand the buyer’s full needs, to jointly explore solutions, to build rapport, etc.

5. Slow down before asking too many questions, particularly invasive ones – you have to earn the right to ask questions, especially sensitive ones. You have to be willing to share information with the buyer, before he, or she will return the favor.

6. Slow down before delivering a presentation - take the time to first understand the needs and interests of your audience, put the laptop and the presentation slides aside and have a conversation – see where it takes you.

7. Slow down before writing a proposal, the faster you write a proposal the more assumptions you are going to be making regarding the customer’s needs and wants. Getting the customer involved in writing the proposal with you may mean that you have to move the opportunity out by a quarter, but dramatically increases the likelihood of success.

8. Slow down before starting to negotiate – good negotiating cannot compensate for bad selling. Negotiating on price, for example, before the needs have been fully understood, the solution defined, or the business case demonstrated is meaningless and inadequate.

9. Slow down before moving on to your next customer – buyers often complain that the attention – sometimes excessive – that they have received during the sales process quickly diminished once the order is won.

10. Slow down when you see a red, or amber light - as salespeople focused on getting the deal across the line, we can be reluctant to express their concerns, or anxieties, regards an opportunity in play. We can be blind to warning signs, such as we cannot get access to the decision maker(s), we don't have all the information we need, the issue of price is arising too early, etc. However, they are to be neglected at our perril. Yellow and red flags are to be welcomed, this is particularly the case when they are indentified early in the sales cycle – that is in time for the underlying issues to be addressed, or for the salesperson to decide to walk away.