Closing the sale is a skill we're asked about frequently - and one surrounded by a great deal of mystery. One area of confusion that can, when demystified, result in a healthy increase in closing rates, is the difference between "closing" and "trial closing."
Closing is the act of seeking a decision, usually through the use of a direct question.
"Can we move forward?"
"Would you like to place an order today?"
Trial closing, on the other hand, is not about directly seeking a decision, but is a method of seeking an opinion - in other words, a way of testing receptivity.
"Does that sound good to you?"
"What do you think so far?"
Trial closing is an extremely important (and often omitted) component of the selling process, because it gives the seller some insight into the relative interest level of the prospective buyer before closing questions are asked.
When a seller receives positive, enthusiastic responses to trial closing questions, then he or she knows the buyer sees value in their offer or proposal and will be inclined to move forward with the sale.
Conversely, if trial closing questions are answered negatively or with little or no enthusiasm, then the prudent seller knows that something has gone off-track; needs were not properly assessed, some form of miscommunication has taken place, etc.
In this latter instance, the best track is to go back to assessing and clarifying needs, interests and priorities, and then testing the waters again with additional trial closing questions.
It's important to realize that the selling process is seldom thrown completely off-track when trial closing questions yield negative responses. In fact, the negative responses give the seller an opportunity to correct errors that were obviously made during earlier steps, and increases closing rates in the end.
Showing posts with label sales growth. Show all posts
Showing posts with label sales growth. Show all posts
Thursday, June 17, 2010
Wednesday, June 2, 2010
Buyers Are... (How would you complete the title?)
If you were asked to complete the sentence fragment in this article’s title with only one word, which word would you choose?
In other words, fill in the blank: Buyers Are _______________.
Based on our poll, a number of popular choices include – “Buyers are scarce.” “Buyers are savvy.” “Buyers are cautious.” “Buyers are beautiful,” and “Buyers are gold.”
[Click here to see top 10 answers]
However, in the midst of a casual conversation among acquaintances, a veteran sales person recently stated an option I had neither considered nor heard before.
“Buyers are liars,” he said!
When asked to explain his view, he went on to say that “Buyers are liars because they don’t tell you what they’re looking for… what they really want; or, they tell you what they want and then go and buy something different from someone else.”
Despite the rep’s experiences with those he perceives as less-than-forthcoming buyers, the simple fact is that “buyers” are not responsible for defining their needs. In fact, it is the “seller’s” responsibility to assess each potential buyer’s needs.
People are often unaware of all available options and, in many cases, have not properly assessed their own needs. The reasons for this vary – it could be a simple matter of convenience – as opposed to reading the “small print” – or that the product or service being considered is complex, as in the case of medicine, medical treatment or legal advice. Without the help of those “selling” these solutions, it is highly unlikely that a consumer would be capable of properly assessing his or her options and making a prudent choice.
Nearly every product or service has relevant features, benefits or nuances that need to be presented by an educated source (seller) in order for the buyer to make a truly informed decision. In fact, a good rule of thumb for any sales professional who aspires to truly differentiate themselves while best serving customers is to never assume the customer has a sufficient amount of information to make the best decision.
But please note the use of the word “relevant” in the above paragraph! The first step for every seller is to assess and confirm needs before presenting features, benefits or solutions.
“You can never trust that buyers have enough information,” one real estate professional said. “As a prudent seller you must assess and educate.”
We couldn’t agree more!
In other words, fill in the blank: Buyers Are _______________.
Based on our poll, a number of popular choices include – “Buyers are scarce.” “Buyers are savvy.” “Buyers are cautious.” “Buyers are beautiful,” and “Buyers are gold.”
[Click here to see top 10 answers]
However, in the midst of a casual conversation among acquaintances, a veteran sales person recently stated an option I had neither considered nor heard before.
“Buyers are liars,” he said!
When asked to explain his view, he went on to say that “Buyers are liars because they don’t tell you what they’re looking for… what they really want; or, they tell you what they want and then go and buy something different from someone else.”
Despite the rep’s experiences with those he perceives as less-than-forthcoming buyers, the simple fact is that “buyers” are not responsible for defining their needs. In fact, it is the “seller’s” responsibility to assess each potential buyer’s needs.
People are often unaware of all available options and, in many cases, have not properly assessed their own needs. The reasons for this vary – it could be a simple matter of convenience – as opposed to reading the “small print” – or that the product or service being considered is complex, as in the case of medicine, medical treatment or legal advice. Without the help of those “selling” these solutions, it is highly unlikely that a consumer would be capable of properly assessing his or her options and making a prudent choice.
Nearly every product or service has relevant features, benefits or nuances that need to be presented by an educated source (seller) in order for the buyer to make a truly informed decision. In fact, a good rule of thumb for any sales professional who aspires to truly differentiate themselves while best serving customers is to never assume the customer has a sufficient amount of information to make the best decision.
But please note the use of the word “relevant” in the above paragraph! The first step for every seller is to assess and confirm needs before presenting features, benefits or solutions.
“You can never trust that buyers have enough information,” one real estate professional said. “As a prudent seller you must assess and educate.”
We couldn’t agree more!
Friday, April 16, 2010
Selling Change
It’s all new… the latest version!
New and improved, updated; enhanced formula, just released! Hot off the press, the newest style! Less fat, more protein, superior quality, finer taste; easier to use, better, more comfortable, lower price...
At one time or another all of these phrases have been used to sell products or services, and they all promote the same thing – change. The marketplace must like change or marketers wouldn’t flaunt it; change, therefore, must be good.
What’s Good Can Be Bad – “If it ain’t broke…”
But of course change is not always perceived as being good. In their daily quest for new customers, sales people constantly struggle to overcome buyers’ comfort with the status-quo. In organizations of all types people tend to look with skepticism at new policies and procedures, and look with deep concern at new compensation plans or updated benefits programs; and people at all levels regularly cringe at the suggestion that there might be a different or better way to do their jobs!
In the day-to-day real world, change most often promotes uncertainty, doubt, fear, resentment or loss, and this is not news. The concept of “creative destruction” — an economic theory based on the premise that new ideas inevitably bring about the demise of older (more comfortable) ones — was popularized way back in the early nineteen hundreds by Austrian economist Joseph Schumpeter.
Yet without change comes stagnation and potential loss. Current-day examples include Xerox in copiers or Polaroid in instant photography, each experiencing significant declines in market share and profits as competitors introduced new and improved, lower-cost alternatives.
The cassette tape replaced the eight-track, but was then outdone by the compact disc, which is now being undercut by MP3 players; and the list can go on.
Closer to Home – A Selling Mission
If we’re to learn from these examples, then we must accept the fact that change — either in the form of innovation, continuous improvement or both — is a critical component of growth and ongoing success. Without innovation and change we run the risk of losing our competitive position, or worse. “Whatever made you successful in the past won’t in the future,” said the late Hewlett Packard CEO Lew Platt.
But if people tend to resist change as previously noted, how might managers or business owners best go about getting the team to accept it — to buy in? How can we help people more readily embrace improvement programs, try new protocols, accept new pricing models or generally believe in the up-side of change?
Simply stated, we must sell it.
Just like the sales and marketing experts who create the “new and improved” ad copy, slogans and selling presentations, we must sell the concept of change to our staff members and sales teams before trying to present or roll-out new policies, procedures, campaigns, programs or plans.
And just like any sales mission, this will require forethought and planning. We might start by identifying how the team will benefit from a proposed change. What’s in it for them? What are the consequences of not changing? What will it cost? What opportunities might we lose?
What’s the competition doing?
The next step is to determine how to properly position a proposed change. Since we know there is a tendency toward defensiveness, it’s important to make people understand that they are not the problem. In other words, a change in policy or approach need not mean that the team has been doing things the wrong way. Rather, it means the world is changing and we must change too, lest we fall behind.
Finally, once the presentation is made and the new “whatever” is launched, there must be follow-up and assessment. Has everything worked as we’d hoped? Should we modify the new plan? Are there unforeseen consequences? While we don’t want to send a message indicating we’re not resolved to the new program or approach, it is also a good idea to let everyone know we’re fair and open-minded — that at the end of the day we’re all on the same side.
Change may be unsettling, but without it our futures are at risk; and there are clearly ways to minimize the negative effects. It will require effort, planning and persistence, as behaviors and attitudes are not easily influenced.
Margaret Thatcher may have summed it up best when saying, “You may have to fight a battle more than once to win it!”
New and improved, updated; enhanced formula, just released! Hot off the press, the newest style! Less fat, more protein, superior quality, finer taste; easier to use, better, more comfortable, lower price...
At one time or another all of these phrases have been used to sell products or services, and they all promote the same thing – change. The marketplace must like change or marketers wouldn’t flaunt it; change, therefore, must be good.
What’s Good Can Be Bad – “If it ain’t broke…”
But of course change is not always perceived as being good. In their daily quest for new customers, sales people constantly struggle to overcome buyers’ comfort with the status-quo. In organizations of all types people tend to look with skepticism at new policies and procedures, and look with deep concern at new compensation plans or updated benefits programs; and people at all levels regularly cringe at the suggestion that there might be a different or better way to do their jobs!
In the day-to-day real world, change most often promotes uncertainty, doubt, fear, resentment or loss, and this is not news. The concept of “creative destruction” — an economic theory based on the premise that new ideas inevitably bring about the demise of older (more comfortable) ones — was popularized way back in the early nineteen hundreds by Austrian economist Joseph Schumpeter.
Yet without change comes stagnation and potential loss. Current-day examples include Xerox in copiers or Polaroid in instant photography, each experiencing significant declines in market share and profits as competitors introduced new and improved, lower-cost alternatives.
The cassette tape replaced the eight-track, but was then outdone by the compact disc, which is now being undercut by MP3 players; and the list can go on.
Closer to Home – A Selling Mission
If we’re to learn from these examples, then we must accept the fact that change — either in the form of innovation, continuous improvement or both — is a critical component of growth and ongoing success. Without innovation and change we run the risk of losing our competitive position, or worse. “Whatever made you successful in the past won’t in the future,” said the late Hewlett Packard CEO Lew Platt.
But if people tend to resist change as previously noted, how might managers or business owners best go about getting the team to accept it — to buy in? How can we help people more readily embrace improvement programs, try new protocols, accept new pricing models or generally believe in the up-side of change?
Simply stated, we must sell it.
Just like the sales and marketing experts who create the “new and improved” ad copy, slogans and selling presentations, we must sell the concept of change to our staff members and sales teams before trying to present or roll-out new policies, procedures, campaigns, programs or plans.
And just like any sales mission, this will require forethought and planning. We might start by identifying how the team will benefit from a proposed change. What’s in it for them? What are the consequences of not changing? What will it cost? What opportunities might we lose?
What’s the competition doing?
The next step is to determine how to properly position a proposed change. Since we know there is a tendency toward defensiveness, it’s important to make people understand that they are not the problem. In other words, a change in policy or approach need not mean that the team has been doing things the wrong way. Rather, it means the world is changing and we must change too, lest we fall behind.
Finally, once the presentation is made and the new “whatever” is launched, there must be follow-up and assessment. Has everything worked as we’d hoped? Should we modify the new plan? Are there unforeseen consequences? While we don’t want to send a message indicating we’re not resolved to the new program or approach, it is also a good idea to let everyone know we’re fair and open-minded — that at the end of the day we’re all on the same side.
Change may be unsettling, but without it our futures are at risk; and there are clearly ways to minimize the negative effects. It will require effort, planning and persistence, as behaviors and attitudes are not easily influenced.
Margaret Thatcher may have summed it up best when saying, “You may have to fight a battle more than once to win it!”
Wednesday, January 20, 2010
Growth Through Strategic Customer Service
There are many components to business development and many ways to grow revenue – and strategic customer service is definitely one of the often-overlooked pieces of the puzzle.
As we've suggested in previous posts, growing a business or sales territory is hard work, especially in more challenging economic times when referrals and leads are less plentiful, customers are spending less and the competition is tougher; and it is especially in times like these that the value of a customerbecomes most clear.
Assuming there are no extenuating circumstances such as a poor payment history, the simple rule is that we should do everything within our power to avoid losing a customer... and providing consistent, high-quality customer service is critically important to that end.
When asked, most people say they do their best to provide good customer service. However, the methods vary sigificantly and tend to be inconsistent. To maximize the effectiveness of your team's customer service effort, it's best to develop and implement a measurable, strategic approach that leverages your organization's unique benefits and that can become both consistent and cultural.
As we've suggested in previous posts, growing a business or sales territory is hard work, especially in more challenging economic times when referrals and leads are less plentiful, customers are spending less and the competition is tougher; and it is especially in times like these that the value of a customerbecomes most clear.
Assuming there are no extenuating circumstances such as a poor payment history, the simple rule is that we should do everything within our power to avoid losing a customer... and providing consistent, high-quality customer service is critically important to that end.
When asked, most people say they do their best to provide good customer service. However, the methods vary sigificantly and tend to be inconsistent. To maximize the effectiveness of your team's customer service effort, it's best to develop and implement a measurable, strategic approach that leverages your organization's unique benefits and that can become both consistent and cultural.
Simple & Strategic
Creating a plan, setting goals, enhancing communication and monitoring results are the key elements of the process. Here are some specific ideas on how you might get started:
- The first step is to learn three key things about your customers what they like, what they don't like and how they feel about your organization
- Next, identify your organization's unique offerings from a products and services perspective (what you offer/do) as well as a cultural perspective (how you offer/do it)
- Note the alignment between these first two items, and then determine the things associated with your culture and unique offerings that your customers value the most: the real benefits
- Develop a communication style that expresses these benefits in terms that are relevant to your customers (rather than to you and your staff)
- Define action steps that exemplify and reinforce your group's culture; keep in mind that in most cases an organization's most distinguishable assets are people
- Create and implement a system in which your organization consistently executes the action steps and communicates in the style noted above
- Monitor and measure results... continually discuss and refine the process; regularly include this topic on staff meeting and sales meeting agendas
Growing a business or sales territory is not easy work, but it will become easier if we can delightand retain our customers.
Possibly Matthew Tashjian, a Senior VP at Merrill Lynch in Hartford, CT sums it up best as he often says, "One way to make money is to not lose any!"
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