September 15, 2009 Comments Off
Getting the best out of your sales organization over the long term means building a dynamic, results focused, forward looking and positively motivated team. As sales team with one common and over arching goal that is totally committed to making the numbers. Sales team performance is part sales skills and part attitude. Finding the winning mix that enables your sales team to liberate their full potential and over-achieve is the key to success in Sales Management today.
Everything is moving rapidly and irreversibly to the web. Capturing customers via the online channel is the new center of gravity for Sales and Marketing. Helping today’s customers to find your services online, self-diagnose, enter into a conversation with your company and other users, thought leaders and recommenders. Then try and buy online is the key to accelerating time to revenue.
The Sales Cycle is dead. It has out lived its usefulness. Why? Because the sales cycle is all about us and our interests and not about the customer or his/her interests. The sales cycle is something that we do to the customer and not for the customer. We have all seen sales cycles that were driven by internal factors such as making the end of the quarter number or additional discounts designed to stimulate demand to offset a short fall in sales. This is about us and not them.
Consider the various steps of the sales cycle: Prospecting, Qualifying, Needs Identification, Proposing, Negotiating and Close. This language describes where we are in a series of actions that result in ‘closing’ the prospect.
The world has changed, things have moved on. Today, success in sales is all about understanding how people make buying decisions. The Sales Cycles has been replaced by the Buyer Decision Process. The good news is that there are 5 simple steps in the Buyer Decision Process and they always occur in exactly the same sequence. So then success in sales today comes from understanding where your prospects and customers are in the Buyer Decision Process and helping them move to the next decision step. Success in sales today means helping people to buy. ie. Put yourself on the same side of the table as them. This means replacing our traditional selling-centric paradigm with a buying-centric paradigm.
The 5 steps of the Buyer Decision Process*:
1. Person: You must always start here to create trust and personal credibility. The buyer won’t go the next decision step until you have successfully completed this step.
2. Company: ‘Sell’ your company before you start to ‘sell’ your product or service. Over look this step at your own peril.
3. Product: Many of us start here and spend most of our time on this decision step. Why? Comfort factor, probably. We understand our products and services, and we want to show our people how knowledgeable we are. In reality, most buyers today have done extensive research online. They know exactly what they are looking for and often they know as much or more about a specific product or service than we do.
4. Price (Value): Most buyers have done their homework and know exactly or have a very good idea what prices are and which products and services fit their budget and which one don’t. Help buyers navigate this step by validating their product choice and advising them on different options, packages, service bundles that will deliver superior value to the bottom line in their usage scenario.
5. Why Now? This is where you can be of real service to your prospects and customers. How often have you seen a prospect fly through steps 1 through 4 of the buyer decision process only to arrive at this step and suddenly get stuck in ‘inability to make a decision’ or ‘indecision to take action’. Your role here is simple. Create a sense of urgency by pointing out all the reasons why the buyer needs to take immediate action and more importantly help the buyer to calculate the cost of indecision or delay.
Remember. Everyone goes through exactly this decision process when making a buying decision. All you have to do is determine where they are in the process and provide the required information by asking insightful diagnostic questions that will help move their thinking to the next decision step in the process. Do this and you will add value by helping your prospects and customers make logical, rational buying and investment decisions. Use the Buyer Decision Process and your prospects and customers will reward you with more and higher value buying decisions.
*based on ideas from the book: Action Selling by Duane Sparks, The Sales Board, Inc.
Have you ever sat through a really bad presentation, meeting or workshop? I guess we all have and more often than we wish to remember. What was it that made it bad? Now think about a really great meeting, workshop or presentation that you have attended recently. What made it great? What were those things that made it successful? Somewhere on your list will be involvement and audience participation. The signs of a highly successful meeting are the quality of discussion, the exchange of ideas and points of view, and the sharing of knowledge and experience, in short audience participation.
How do you unlock audience participation?
Start with the End in Mind. What are your desired outcomes for the presentation, meeting or workshop? List the Top 3 objectives you have as outcomes of the meeting. Think carefully about this when choosing a name for your presentation, workshop or meeting. “Quarterly Business Review” sounds like exactly that. A meeting who’s title is “Identifying and finding ways to remove costs that won’t negatively impact revenue growth” creates a totally different perception and expectation about the desired outcomes of the meeting. Set expectations upfront and challenge your audience to find at least 3 personal “Take Aways”: actionable ideas that they can put to work immediately.
Engage them immediately. Skip the personal introductions and normal meeting protocol. Go straight to your desired outcome and your expectations. Connect with your audience immediately by soliciting their ideas, input, agreement/disagreement, opinions and feelings. Encourage interaction and exchange of ideas. How? by asking questions. By asking for their opinions, asking for examples and stories that illustrate a point, or simply asking for their validation of the item being discussed. Get them involved and keep them involved through frequent and continuous inclusion.
Think like a Facilitator. Use “the answer is in the room” thinking. How? Don’t answer the question, put it to the room. What is the difference between a Presenter and a Meeting Facilitator? When running a meeting or a workshop you are not a subject matter expert, you are a process expert. Your role is to liberate the tacit knowledge, opinions and collective experience of all participants. Leverage the power of simplicity. Speak less and say more. Remember, briefness equates to effectiveness.
Maintain Momentum. Use stories, storytelling, anecdotes and humor to keep things moving. Energy and engagement tend to drop off after a while. You can avoid this by telling stories and encouraging participants to tell stories. Relevant stories embody key ideas and are memorable. People love stories, they engage us and they energise us. Start building a library of personal stories that you can use in your next workshop, meeting or presentation.
Finish Strong. Review key actions, learning points and agree next steps. Summarise their ideas; recognise the value of their ideas. Point out the positives, build on them, test and challenge them. Invite comments and inclusive group discussion. Do this and you will make your presentations, meetings and workshops productive, constructive, energising and highly memorable.
Buyer thinking has changed, forever. Pre-economic crisis buyer thinking rewarded relationship based selling. When the economy was strong, growing and things were relatively predictable, buyers rewarded continuity and business relationships.
Today Decision Makers are reassessing every spending and investment decision they make. They are looking for ways to reduce, delay or cancel purchases and investment decisions and they are seeking certainty that desired results will be achieved as planned. Maintaining a predominantly relationship focused sales approach will not cut much sway or add relevant value to buyers with a ‘spend less, delay or cancel’ mindset. To succeed in helping today’s buying decision makers you must move your style to a results focused approach.
3 Steps to Mastering Results-Focused Selling:
1. ‘Euroize/Dollarize’ the problem. Help your client to quantify the cost of his/her problem or lost opportunity by determining an approximate cost or financial benefit. This will allow the customer to prioritize their buying or investment decision and create a sense of urgency to take action. The rule is: the bigger the problem (€), the bigger the solution (€).
2. Use Creative Thinking (Divergent Thinking) Create a list. Work with your customer to draw up a list of as many possible ideas and actions that could minimize or resolve the problem and deliver the required outcomes. The goal is to capture the maximum number of possibilities without judging or eliminating any ideas. Target: Create a list of 20 possible solutions.
3. Use Critical Thinking (Convergent Thinking) Make a choice. In this phase of the process help the Decision Maker choose the best solution that meets his requirements: cost or investment, and delivers the desired results. Demonstrate how you can assure that the desired results will be realized? Provide value assurance by helping your customers achieve their desired results in a measured and predictable manner.
Relationship Based Selling is no longer a meaningful differentiator to buying decision makers in the post-crisis world. Buyers are looking for results and you must demonstrate that you are results-focused by helping them: 1) identify, 2) quantify and 3) deliver desired results. To succeed in tomorrow’s post-crisis business world you must become a Results-Focused Trusted Advisor.
Success in sales comes from creating clarity in the mind of your customer. Clarity in understanding the problem to be solved, clarity in evaluating the possible solutions available and clarity in determining the real value to the business that each solution provides today and in the future.
Clarity helps the customer to move forward with commitment and confidence. How do you create clarity? The first step is to listen. Warning: Do not be deceived by the apparent simplicity or obviousness of this critical first step. Listening is the foundation of success in sales. Listen intently while the customer describes his or her current situation, and then describes their future desired state so that you can help the customer to quantify the size of the gap between the two and move your collective thinking to how to close the gap. The key to success here depends on your ability to listen intently and this means being able to temporarily suspend your self-interest and avoid doing all the talking. Listening is an underdeveloped skill in many sales professionals today and listening is vital to being able to create clarity for your customer. 3 simple steps to follow to create clarity:
Listen to Learn
Mind-set Tip #1: Listening to learn is vital to your success in creating clarity for your customers. It is all about wanting to learn which transcends the desire to simply understand your customer. When we are in learning mode we are open and receptive to new and different ideas and able to explore and play with them freely. Listening intently in this frame of mind will significantly help your customers to clarify their thinking and their decision making.
Listen with Your Eyes
Mind-set Tip #2: Listen with your eyes by focusing your attention on observing your customer. Observe the customer’s body language as she describes her challenges and the ideal solution she would like your help to deliver. Listen with your eyes in an objective and nonjudgmental way. Observe her thinking. Look beyond the words she uses. Look for the hidden drivers of her behavior. Focus your observation on looking for insights into how she responds to your questions, how she makes decisions and what motivates her to commit to take action.
Listen with Your Mind
Mind-set Tip #3: Listen with your mind by listening for the unconscious forces at work in the head of your customer. Think about how they process information. Do they want facts and figures and benchmark data, or do they prefer anecdotal customer stories and case studies, or do they show a preference for testimonials and references? This will help you to understanding how they: 1) think, 2) decide and 3) behave. Knowing this will allow you to navigate your way successfully through the complexity of their decision making process.
Success in sales today is about helping your customer move from chaos to clarity. Do this by listening to learn about how they think, process information and make decisions. When you create clarity your customers will commit to moving forward with you and be confident in achieving their desired outcome.
Understanding your own value – the value of your products and services – and being able to connect that value to your customer’s business drivers is what makes customers want to buy. Customers want the benefits, the business benefits that your product or service can create and deliver to their business.
In today’s business climate customers are critically reviewing and reassessing their businesses, rethinking their options, re-allocating resources and re-prioritizing their business strategies. You can assist your customers in this process by helping them to identify and quantify value gaps or value opportunities, demonstrating how value can be created, implemented and then measured to ensure that the value realised meets or exceeds plan.
Value maximisation followed by value assurance is what your customers desperately want and need today. Show him or her how they can achieve these two goals and you will create more than a customer, you will create a business partner for life.
Price Advantage -> Product Advantage -> Competitive Advantage -> Value Advantage!!!
To learn how to create your own Value Advantage read “The Prime Solution” by Jeff Thull. You will learn how to close the value gap, increase margins and win the complex sale. Go to http://www.primeresource.com/ to download a free copy of the foreword, introduction and chapter 1.
Woody Allen said “80 percent of success is showing up.”
Thinking about it, this is very practical advice, and for people in sales a good rule to live by. You can’t influence, persuade, or sell yourself or your ideas if you aren’t sitting in front of the person you need to influence. Now ask yourself this.
How often have you chosen to simply send an email or make a phone call rather than holding to a face-to-face meeting?
Essentially you are choosing between sending your message vs personally delivering your message. Using email and the phone is easier for sure. However, it is also easier for the other person to choose to ignore, misunderstand or fail to take the desired action in response to your message. Less investment in time and effort equates to less commitment to influence. So, showing up wins? Yes, no contest. But, I think that there is a critical and unstated assumption here. Let me explain. Showing up, how and in what state of mind? Showing up when you are unprepared, uncommitted, de-motivated, tired, or sick means that we may have been better off sending an email or making a phone call. Showing up when you are well prepared: having a plan, being fully committed and having a positive mental attitude is what will deliver success.
Maintaining a Positive Mindset
“Your altitude is determined by your attitude.” If you don’t think for yourself, someone else will do it for you. You must manage your mindset so that you can manage their mindset. How do you maintain a positive mindset or a positive mental attitude? Well, it starts with having a clear end game in mind, to know where you are going. To have clearly defined desired outcomes. “Visualizing something organizes one’s ability to accomplish it.” says Stephen Covey. It brings a sense of clarity and a sense of purpose to everything we do. Mental creation proceeds physical creation. Attitude equals thinking win-win and attitude is everything.
Keep your attitude in check by reminding yourself of the desired thinking, behaviors and beliefs that you want to reinforce using attitude affirmations like these:
· I will think of myself as Successful!
· I will have positive expectations for everything I do!
· I will remind myself of past successes!
· I will not dwell on failures, I just will not repeat them!
· I will surround myself with positive people and ideas!
· I will keep trying until I achieve the results I want!
Maintaining a Positive Message
The words you use and the way you deliver them is what determines your ability to get your message across and make it memorable. Words and how we use them are like a paint brush and a canvas in the hands of an artist. You are creating a master piece, a spoken master piece; you are using your words to paint a beautiful picture of your vision in the mind of the people you are meeting. Words work best when they are conveyed with e-motion (energy in motion). Emotion is what speaks to people’s hearts and minds. Emotion is what moves people to action. Emotion is what makes messages memorable and what creates lasting impact.
Maintaining Positive Momentum
“Plans are useless, but planning in indispensable.” – Dwight D. Eisenhower
Before the meeting replay in your mind your previous successes and big wins. Think of all the possible positive outcomes that exist. Then lay them out in front of your audience. Show them how you can help them bring positive change to the organization and the people you are meeting. Create the positive future that you desire by moving their hearts and minds and focusing their thinking on the next step; the decision to take action. The best and simplest way to do this is to ask the following question. “Where do we go from here….?” Then describe the 3 scenarios, alternative solutions or courses of action that you would recommend. “From what we have discussed together today the 3 possible courses of action that I see are…….” Then help them chose the best possible solution for their situation. Concur, confirm and validate. Agree with their decision and point out all its advantages. Then openly accept responsibility for making it happen by owning their decision. “Based on our discussion we agree that the best course of action is …………. because it delivers the highest level of new customer trails and maximizes the try-to-buy conversion rate by ensuring the best overall user experience for 1st time users. I am committed to working with you and your team to make this happen over the next 90 days.” Sale made!
Three Golden Rules for Managing their Mindset:
1. Always make the effort to meet with people in person face to face. The sale starts when you see eye to eye.
2. Be prepared. Plan out the objectives of your meeting and anticipate different outcome scenarios.
3. Check that you have a positive mental attitude by holding in your mind at all times a clear vision of your desired outcome(s).
Then as Woody Allen says 80 percent of success is showing up.
“When the going gets tough the tough get going.” – Joseph P. Kennedy (JFK’s Father)
We are entering a period of enormous change and uncertainty. We are witnessing the emergence of a new world order and a new business era. The Financial Crisis will impact the global economy, but where, when and by how much we don’t yet know. One thing is for sure. The “New World” will be less tolerant and less forgiving of much of our current “Old World” sales practices. In a downturn, customers will reassess their activities, expenditures, suppliers and business relationships to see where they can make savings, streamline their business and find new levels of operational efficiency to drive down costs. This presents the New Era Sales Professional with an unparalleled opportunity to take the lead by helping guide their customers through this reassessment process.
A simple and effective way to move your thinking to a NESP (New Era Sales Professional) is to ask yourself the following questions:
- What will help my customer’s business in the new world economy?
- How can I leverage my understanding of my customer’s business, my knowledge of their industry and my products/services to do this?
A Five Point Plan to protect your existing business and maximize your sales in an economic downturn:
1. Keep cool. Stay positive, confident and motivated. We are entering a radically new business environment. Things are going to be difficult (maybe), different (definitely). Your ability to maintain your energy, enthusiasm and conviction are vital. A positive mindset determines your ability to achieve and to succeed by overcoming obstacles, barriers and constraints that are going to appear to surround you. The first victory is over one’s self.
2. Keep close to your customers. Look for new and innovative ways to make your customers more competitive by demonstrating how you can save them money. Gain a deeper understanding of what is truly important and of value to your customers – and know why. Visit your customers more often. Get to meet and know more people in the customer’s organization. Set a goal to meet 2 new contacts on each visit you make. Call high and wide. Know your customers better than anyone else.
3. Keep focused on customer value. To succeed in the New World of business stay focused on 2 critical things: 1. the customer and 2. the customer’s unending pursuit of performance improvement. In the New World business value will captured in 3 areas: i) achieving lower costs, ii) gaining high levels of productivity from smaller organizations, and iii) striving to create sustainable competitive advantage. Look for new and innovative ways to better serve your customers. Innovate and re-validate your current product/service value proposition. Actively seek ways to add value to your customers above and beyond your current product and service offerings.
4. Keep prospecting. Selectively target new clients. Prospecting has and always will be the base metric of success in sales. In the New World the focus shifts from prospecting to prospecting effectiveness. Quantity (Old World) yields to quality (New World). New Era prospecting means being ruthless in deciding how and where to invest your time and effort to develop new business opportunities. That means deciding which prospects and which prospecting activities you are going to stop so that you can concentrate on New Era Prospecting.
5. Keep growing. Invest in yourself. Develop your New Era Sales Skills and your personal value proposition. It may seem counter-intuitive, but when it gets harder and harder to fell big trees it is time to stop and sharpen the saw. Sharpening your sales skills means setting aside time to develop your skills through reading, listening to podcasts, attending seminars and conferences, participating in training programs and joining expert groups. In the New World you are responsible for your own self development.
By finding ways to deliver new levels of business value to your customers, above and beyond what they are used to today, you will stand out from the crowd especially during an economic downturn.
“Its not what happens to you in life. Its how you react to what happens to you that makes the difference.”
One of the biggest challenges a leader faces today is learning to live with volatility, uncertainty, complexity and ambiguity despite an increasing oversupply of information. This makes decision making more difficult and problematic than ever before. How can we deal with this growing confusion in our world?
Using Resilient Thinking we can turn around the above with a combination of Vision, Understanding, Clarity and Agility. The 4 antidotes to Volatility, Uncertainty, Complexity and Ambiguity work like this:
Volatility Yields to Vision:
Vision means having a clear intent, a clear direction for your actions. Vision is much more important than foresight since it seeks to create a future, not just study the future. With clear vision, creative space opens for innovation within the parameters you specify. A bold vision sees beyond volatility, with a calm perspective not trapped by assumptions of the present.
Uncertainty Yields to Understanding:
Listening leads to understanding, which is the basis for trust. You must learn to listen carefully without judging too soon. Today’s world creates urgency to act quickly, but sometimes it is a false sense of urgency. The best leaders have the presence and calm inquisitiveness to listen before talking.
Complexity Yields to Clarity:
Leaders must help others to make sense of complexity. Today’s world rewards clarity because people are so confused that they grasp at anything that helps them to make sense out of the chaos. The thoughtful leader’s quest is to be both clear and accurate, simple without being simplistic.
Ambiguity Yields to Agility:
Leaders cannot surrender to ambiguity; that would lead to paralysis and confusion. Rather, they must learn how to be agile and respond to attack and a continually changing business environment. Today’s world rewards networks because they are agile, while it punishes the rigidity of command/control hierarchies.
How can Leaders embed these four values into all levels of their organizations? It starts with applying the Foresight -> Insight -> Action Cycle which will be the subject of a future blog post.
*Based on ideas from the book: “Get There Early. Sensing the Future to Compete in the Present” by Bob Johansen, publisher by Berrett-Koehler, 2007
Get There Early: Sensing the Future to Compete in the Present
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