Whether negotiating for a better price, more favorable terms or to schedule the next step in the selling process, it is important to maintain a proper perspective about two pivotal factors – relationship and outcome.
In selling situations, the relationship between the buyer and seller is key. It often determines success or failure, and it is the glue that holds the selling process together over time, assuming repeat sales are an objective.
The outcome of each negotiation is more involved. Sure, there is a simple outcome – a person either buys or not. But at what price does one buy? What terms might one accept? And how accommodating a customer might one become?
The most successful sales people are able to simultaneously focus on both relationship and outcome. While they carefully nurture and preserve their relationships, they also avoid “over-accommodating” their customers.
Over-accommodating occurs when a seller puts too much emphasis on the relationship component of negotiating at the expense of outcome. As a result, the seller regularly agrees to virtually all buyer demands, and is prone to sell products or services at very low margins.
At the other end of the spectrum are the sales people who place too much focus on outcome. They strive to make sales and gain the most favorable terms at all costs – often damaging relationships in the process.
To maximize results, develop a fair and balanced perspective between relationships and outcomes.
Tuesday, August 31, 2010
Saturday, July 10, 2010
Tradeshow Selling
Participating in a tradeshow is a common component of most business development efforts. The experience can be fun - the crowd, excitement, change in scene, and new product info are all stimulating, and there is the lure of developing new sales leads.
You might even sell something!
But lots of sales managers will tell you that "shows" can be expensive, and in many cases yield nothing.
One frustrated VP of Sales even expressed disappointment with his group’s after-the-show effort. "We had a pile of business cards that nobody really knew anything about; as a result, any attempted follow-up was ineffective."
So the question is, "Are tradeshows worthwhile?" The answer, simply stated is, "Yes!" As long as we make productive use of floor time...
The Secret to Success
Planning, goal-setting and follow-up are all very important, but the secret to tradeshow success is to properly deal with the known prospects, friends, competitors, and "suspects" that you encounter. "Suspects" are the key - we can call everyone else anytime, in theory, because we already know who they are!
In addition, everyday sales presentations are best left at the office on tradeshow days, as it becomes important to:
1. Quickly meet many suspects
2. Identify the true prospects
3. Note contact information
4. Strategically & quickly disengage
5. Follow-up on Monday
You might even sell something!
But lots of sales managers will tell you that "shows" can be expensive, and in many cases yield nothing.
One frustrated VP of Sales even expressed disappointment with his group’s after-the-show effort. "We had a pile of business cards that nobody really knew anything about; as a result, any attempted follow-up was ineffective."
So the question is, "Are tradeshows worthwhile?" The answer, simply stated is, "Yes!" As long as we make productive use of floor time...
The Secret to Success
Planning, goal-setting and follow-up are all very important, but the secret to tradeshow success is to properly deal with the known prospects, friends, competitors, and "suspects" that you encounter. "Suspects" are the key - we can call everyone else anytime, in theory, because we already know who they are!
In addition, everyday sales presentations are best left at the office on tradeshow days, as it becomes important to:
1. Quickly meet many suspects
2. Identify the true prospects
3. Note contact information
4. Strategically & quickly disengage
5. Follow-up on Monday
Thursday, June 17, 2010
Closing v. Trial Closing... Improve Your Results!
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.
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.
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!
Thursday, May 27, 2010
Bridging The Communication Gap
Miscommunication can be a costly occurrence.
Defined simply by Merriam Webster as failure to communicate clearly, the causes of miscommunication can vary significantly – lack of forethought or preparation, poor verbal skills or intentional deceit on the part of the sender; lack of comprehension,
poor listening skills or distraction on the part of the receiver.
In a 2005 article, author and conflict resolution expert Tristan Loo suggests that miscommunication is also the primary contributing factor to conflict.
“Miscommunication opens up the triangle of other factors that inevitably leads to conflict,” he says.
He goes on to explain that people tend to fear the worst outcome. In miscommunication the mind will fill in missing information with its own creative insight, which is often fear-based. Our minds naturally seek logical explanations to events as well. Absent those explanations, our minds frequently switch to a fear-based mode in which we satisfy our need for answers with that of assumption. Once we lock-into our assumptions the tendency is to believe them as truth, thus resulting in conflict.
The Solution – Trial Closing
In the selling world, a great deal is lost to misunderstanding and conflict. Buyers tend to buy from people they like and trust – but miscommunication, as noted above, breeds uncertainty, conflict and distrust.
To bridge the gap, Loo suggests people adopt an open mind with respect to alternative possibilities. To facilitate this, increased use of clarifying questions by all parties during need assessments, business meetings, conversations and presentations is the key.
Since it is an accepted principle that the primary sender of communication must take the responsibility for the quality of the communication, then the person who is selling, promoting or persuading should be the one to initiate these clarifying questions which, when properly used, will confirm both understanding and receptivity.
Defined simply by Merriam Webster as failure to communicate clearly, the causes of miscommunication can vary significantly – lack of forethought or preparation, poor verbal skills or intentional deceit on the part of the sender; lack of comprehension,
poor listening skills or distraction on the part of the receiver.
In a 2005 article, author and conflict resolution expert Tristan Loo suggests that miscommunication is also the primary contributing factor to conflict.
“Miscommunication opens up the triangle of other factors that inevitably leads to conflict,” he says.
He goes on to explain that people tend to fear the worst outcome. In miscommunication the mind will fill in missing information with its own creative insight, which is often fear-based. Our minds naturally seek logical explanations to events as well. Absent those explanations, our minds frequently switch to a fear-based mode in which we satisfy our need for answers with that of assumption. Once we lock-into our assumptions the tendency is to believe them as truth, thus resulting in conflict.
The Solution – Trial Closing
In the selling world, a great deal is lost to misunderstanding and conflict. Buyers tend to buy from people they like and trust – but miscommunication, as noted above, breeds uncertainty, conflict and distrust.
To bridge the gap, Loo suggests people adopt an open mind with respect to alternative possibilities. To facilitate this, increased use of clarifying questions by all parties during need assessments, business meetings, conversations and presentations is the key.
Since it is an accepted principle that the primary sender of communication must take the responsibility for the quality of the communication, then the person who is selling, promoting or persuading should be the one to initiate these clarifying questions which, when properly used, will confirm both understanding and receptivity.
Monday, May 17, 2010
Malpractice!
Defined as "...prescribing medicine or medical treatment without sufficient knowledge of the patient's condition," malpractice is an odious word.
Similarly speaking, the sin of "sales malpractice" is committed countless times each day, often with devastating consequences. Business relationships are compromised, orders are lost, time is wasted and needs are left unfulfilled because of sales malpractice.
Sales malpractice happens when sales people fail to properly assess or recognize customer needs, interests and priorities. The transgression tends to be committed unintentionally, as well-intentioned sellers plod on with ineffective pitches, one-sided sales spiels and misdirected presentations, offering solutions that don't quite fit.
Fortunately, the malady is easily avoided!
Creating and then diligently executing a customer needs assessment (CNA) plan is the answer. And, to avoid any misconceptions, the CNA must be conducted early in the selling process, and must be regularly confirmed during more lengthy selling cycles.
In addition, an effective CNA must go well beyond asking customers what they think they need!
Successful needs-assessment involves learning about what each customer is trying to accomplish; it requires thoughtful questions, focused listening, a situational analysis and confirmation of the facts.
In today's consultative selling model, all customer needs must be assessed and confirmed before any solutions are offered; no presentation can be made, no advice given, no proposal written, no quote submitted until all factors have been carefully considered.
Only then can a solution be offered in good conscience.
Similarly speaking, the sin of "sales malpractice" is committed countless times each day, often with devastating consequences. Business relationships are compromised, orders are lost, time is wasted and needs are left unfulfilled because of sales malpractice.
Sales malpractice happens when sales people fail to properly assess or recognize customer needs, interests and priorities. The transgression tends to be committed unintentionally, as well-intentioned sellers plod on with ineffective pitches, one-sided sales spiels and misdirected presentations, offering solutions that don't quite fit.
Fortunately, the malady is easily avoided!
Creating and then diligently executing a customer needs assessment (CNA) plan is the answer. And, to avoid any misconceptions, the CNA must be conducted early in the selling process, and must be regularly confirmed during more lengthy selling cycles.
In addition, an effective CNA must go well beyond asking customers what they think they need!
Successful needs-assessment involves learning about what each customer is trying to accomplish; it requires thoughtful questions, focused listening, a situational analysis and confirmation of the facts.
In today's consultative selling model, all customer needs must be assessed and confirmed before any solutions are offered; no presentation can be made, no advice given, no proposal written, no quote submitted until all factors have been carefully considered.
Only then can a solution be offered in good conscience.
Friday, May 7, 2010
Customer Needs - One Size Does Not Fit All
Regardless of what type of business we're in, gauging our customers' and prospects' needs requires more than a "one-size-fits-all" approach. Here are a few proven best practices:
Never assume the customer knows everything necessary to make the right choice. Most know considerably less than we know about the products and services we provide; and while we may each have a number of "in-the-know" regular or long-term clients who are familiar with what we do, there are still application-related or other nuances that warrant our attention. The best practice is to always ask clarifying questions with respect to each situation, and to go the extra mile toward accurately assessing all the circumstances associated with each situation and each customer's needs.
Focus on what each customer or prospect is trying to accomplish rather than on what service or product type they are "looking for." By asking open-ended questions that relate to each customer's situation or how they plan to use our products and services, we should be able to assess all of their needs, which might include a basic or customized approach, various products, options and accessories, or possibly a specialized solution about which they were unaware.
Look beyond product and service needs for other hidden needs. The more we learn about our customers and prospects, the easier it becomes to structure the most appealing proposals. In many instances, there are issues with respect to company policies, structure, affiliations, specialties, and buying practices that might make a difference in how we'd like to configure our offer. In other cases, there might be personal needs to consider, such as a need to satisfy a demanding boss, a special need for service response guarantees, or the need to feel secure about a supplier's competitive position or reputation (an important issue to the buyer who has been "burned" in the past by a less-than-reputable competitor).
Develop a consistent method of uncovering these basic and not-so-basic needs. Creating a standard list of items to cover, questions to ask and options to present is one good way to develop a dependable and thorough approach. Many have also found that using this type of resource allows them to pay closer attention to each customer or prospect. In some cases, this extra focus will enable us to discover the "little things" that, when addressed, result in closing the sale or in long-term customer loyalty.
Take an extra minute to double-check established needs, specifications and expectations. Sixty-seconds of prudence at the start can often save hours after-the-fact should there be extenuating circumstances or a misunderstanding about features, billing issues or other special requirements. A few final clarifying questions can even make the difference in getting the business, as most customers like to buy from those who show their interest and professionalism.
Never assume the customer knows everything necessary to make the right choice. Most know considerably less than we know about the products and services we provide; and while we may each have a number of "in-the-know" regular or long-term clients who are familiar with what we do, there are still application-related or other nuances that warrant our attention. The best practice is to always ask clarifying questions with respect to each situation, and to go the extra mile toward accurately assessing all the circumstances associated with each situation and each customer's needs.
Focus on what each customer or prospect is trying to accomplish rather than on what service or product type they are "looking for." By asking open-ended questions that relate to each customer's situation or how they plan to use our products and services, we should be able to assess all of their needs, which might include a basic or customized approach, various products, options and accessories, or possibly a specialized solution about which they were unaware.
Look beyond product and service needs for other hidden needs. The more we learn about our customers and prospects, the easier it becomes to structure the most appealing proposals. In many instances, there are issues with respect to company policies, structure, affiliations, specialties, and buying practices that might make a difference in how we'd like to configure our offer. In other cases, there might be personal needs to consider, such as a need to satisfy a demanding boss, a special need for service response guarantees, or the need to feel secure about a supplier's competitive position or reputation (an important issue to the buyer who has been "burned" in the past by a less-than-reputable competitor).
Develop a consistent method of uncovering these basic and not-so-basic needs. Creating a standard list of items to cover, questions to ask and options to present is one good way to develop a dependable and thorough approach. Many have also found that using this type of resource allows them to pay closer attention to each customer or prospect. In some cases, this extra focus will enable us to discover the "little things" that, when addressed, result in closing the sale or in long-term customer loyalty.
Take an extra minute to double-check established needs, specifications and expectations. Sixty-seconds of prudence at the start can often save hours after-the-fact should there be extenuating circumstances or a misunderstanding about features, billing issues or other special requirements. A few final clarifying questions can even make the difference in getting the business, as most customers like to buy from those who show their interest and professionalism.
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