Selling Skills

05/20/2015

3 Reasons why you should qualify your customers carefully

If the shoe doesn't fit, should you  still  wear  it?

Too many businesses work too hard selling to customers that don't fit.
 
Every business has an ideal customer; a customer whose demographic and psycho-graphic profile make that customer an ideal fit for the company's offering.   And because we live in such a diverse world, not every customer will fit that profile. And if a customer doesn't fit, no amount of effort is likely to make that prospect a happy promoter of your brand. Just as its important for a business to size up and identify a customer's ability to fit into that profile, it's equally important for a business to identify those who don't.  And if the customer doesn't fit, don't sell to them.
 
Perfect ProfileEarly in my sales career, I was hell-bent on hitting my quota.  So rather than viewing each prospect through the lens of ideal customer profile, I viewed them through lens of potential revenue.  There were times when I worked extremely hard to sell my product to a prospect that didn't quite fit.  Sometimes I was successful, and other times, I was not.
 
The efficiency of selling, and the efficiency of any activity can be measured through   Return on Effort.  Return on Effort measures is the quantity of desired results you achieve, in proportion to the amount of effort you invest.   The objective is to achieve a lot of results through minimal effort.  If you work this way, you'll have more "effort in the tank" to achieve more results.  (Or, you may choose to invest that extra effort in refining your golf swing.)
 
Back in those early selling days, I was using too much effort twice.  First, since I was selling to prospects that were a poor fit, I had to invest more time and effort to convince the prospect to buy my solution.  In other words, my average sales cycle was longer than it should have been.  Instead of completing a sale from the first call to the signing of contract in 30 days, I'd be spending 60 to 90 days to achieve the same result.
 
Once the new customer began to use the product, it took more effort to keep the customer happy, since the product wasn't a perfect fit.  So I'd inevitably invest more time making more account management calls in attempt to appease the customer.  Time spent there was time that I couldn't be out selling to new customers, generating new revenue.
 
Since I was spending too much time selling and keeping customers that were not a good fit, my Return on Effort was low.  But that's not all that was low.  Since the product wasn't a perfect fit for the customer, I'd usually have to make a price concession to help the prospect justify the purchase.  And price concessions reduce profits.
 
Wasted effort selling the prospect, wasted effort managing the customer, and wasted profit are three good reasons to carefully select prospects that fit your ideal customer profile.  Have the discipline to  disqualify.  Don't invest your effort into selling to the first prospect you see; instead, invest that effort into finding more qualified prospects.
 
There's nothing like the comfort of a shoe that fits.
 
A well-fittinng shoe

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01/02/2015

A 2-Step Process to Writing a Perfect Elevator Pitch

"What does your company do?" 

That can be a hard question to answer,  because the question itself is vague.


So, the first thing that you need to do is re-frame the question by adding a purpose, like:

  • What does your company do to make the world a better  place?
  • What does your company do to serve its market?
  • What does your company do to generate income?
Elevator pitchAdding a purpose to the question will help you to create a response that's more meaningful and memorable to the asker.
 
The second thing you need to do is construct the answer using the  Challenge>Solution>Outcome framework.
 
  1. Define the challenge:  What challenge organizations or people face, that your company helps them overcome?
  2. Define the solution: What does your offering do to enable them to overcome that  challenge?
  3. Describe the outcome: What happened to the companies from using your solution?  What results did they achieve?
Let's say that you sell CRM software.   When someone asks, "What does your company do?" you can say (assuming a purpose of making the world a better place) something like the following:
 
[The challenge] "Today, more customers expect to be treated like VIP's, but it's hard for companies to give them personalized treatment.  
[The solution] We developed a software product that helps these companies personalize how they each of their customers.  
[The outcome]  Over 200 companies have begun using our software to manage their customer interactions, and they report on average, a 22% improvement in customer retention. So, we've been able to help our customers give their customers a better experience, and keep those customers longer, to grow their businesses faster."
 
Using the Challenge>Solution>Outcome framework has an added advantage.  I puts your response into the 3-stage story structure which will make it more memorable to the asker.
 
When someone asks you what your company does, do that someone a favor by adding a purpose onto their question, and then answer it by describing the challenge, defining your solution and describing the results achieved by your customers and their customers.
 
Now  tell me, what does your company do?
 
 
Challenge solution outcome

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12/30/2014

What's the best way to reduce the cost of customer retention?

 

“If you love something, set it free. If it comes back, it was, and always will be yours. If it never returns, it was never yours to begin with."  -  Sherrilyn Kenyon 

 

Too many companies spend too many resources trying to keep customers that they should never have sold to in the first place.    Many of those companies would be better-off shifting resources from trying to retain customers that are a poor fit, and use those resources to more carefully target and acquire customers that are a better fit for their offering.  These ideal customers value the offering more, and are therefore less likely to leave in the first place.

Square pegInvestors and strategists say  that one of the first things a start-up should do before going to market is define its value proposition and its ideal customer. And most ventures will do that.

But sales reps can be quick to ignore the ideal customer profile and sell to any prospect with an ability and willingness to pay.  An why shouldn't they?  A sale is a sale, a dollar is a dollar, and a commission is a commission, even if a sales rep sells a round hole to a square peg.

But here's the problem:  It takes time, money and effort to adjust a round hole to accomodate a square peg.  But if you only sell to round pegs, there's  no need to adjust the hole, and those resources are freed-up for more productive and profitable purposes - like sales and marketing intiatives to attract more round pegs). 

So how to solve the problem?

Re-focus your sales qualification from "Can we sell our product to this customer?" to "Should we sell our product to this customer?"  The traditional qualification process answers these four questions:

  1. Budget:  Does the prospect have funding avaialble?
  2. Authority:  Do we have access to the person with decision-making authority?
  3. Need:  Does the prospect have a need for our solution?
  4. Timing:  Does the prospect plan to buy now?

Adding a fifth criterion - Fit - will change the focus enough to assure that you're selling to the right customer:

     5.  Fit: Does the prospect match the criteria we've defined for our ideal customer?

By properly selecting each customer, you'll have happier customers and more advocates.  You'll also spend less on implementation, customer support and customer retention.  And that means more resources for attracting more of the right customers.

Why should you waste the effort driving square pegs into round holes, when a round peg is a better fit for your offering, and for your bottom line? 

Round pegs

Posted at 08:52 AM in Best Practices, Lead Qualification, Marketing Best Practices, Selling Skills | Permalink | Comments (0) | TrackBack (0)

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12/24/2014

The Value of Asking Questions

Have you ever been to a party full of strangers?  Was it easier to have an enaging conversation with some people, and more awkward with others?  Who asked you more questions?  The easier people or the awkward people?  Asking questions - good, thought-provoking questions - trigger deeper, engaging conversations, even with total strangers.

Cocktail-party-_2502341bWhat works at a cocktail party also works in building customer relationships:

Asking people questions about them makes them more willing to spend time with you.

Asking people challenging questions causes them to think more deeply.  When people think more deeply, they become mentally stronger.

Asking questions leads to answers which lead to new ideas.

Asking questions leads to discussion which leads to new knowledge.

Be the person that builds better relationships, spends time wisely, causes people to think deeply, come up with new ideas, and creates knowledge.

Be the person that asks good questions.

  Students raising hands

Posted at 02:44 PM in Best Practices, Customer Knowledge, Reputation, Selling Skills | Permalink | Comments (0) | TrackBack (0)

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11/17/2014

2 Timeless Selling Skills from a Global Strategist & Political Analyst

This past weekend, I had the good fortune to attend t featuring Global Strategist and former Secretary of State Madelein Albright, and PBS News Hour commentator Mark Sheilds.

The stories, humor and wisdom that they shared was remarkable, and as I looked back on it, I realized that the best part of the wisdom is is that it can be applied to many areas of our personal and professional lives.

There are two pieces that stood out, because I've heard them frequently throughout my professional selling career, and yet, like many others, don't heed them as often as we hear them.  So let's look at them individually:

Madeline albright"If you want to be heard, you  must learn to listen."  

Madelein Albright was referring to the diplomatic exchanges she's had over the years, with foreign dignitaries, and adversaries.  The point was that your message is not likely to be heard by your audience, until you've invested time in listening to them.

Don't try to sell your product until you have a solid understanding of your prospect's situation.  And you won't have that understanding unless you listen; ask, then listen.  Then ask again, ask more questions, and listen to the answers until it's clear to both of you, that you understand the prospect.

This will give you two advantages:

  1. You'll know if and how your product will fit your prospect's situation.
  2. You'll have established credibility with your prospect by listening to her, and therefore,  she's more likely to hear what  you have to say.   

Your prospects will never hear you, until after you've listened to them.

Mark shieldsMark Shields was describing an interview he once had with a rather abrasive politician who'll go unnamed.  The politician asked Shields, "Why is it that some many people immediately dislike me, when they meet  me?"

Shields was quick to reply, "Because it saves them a lot of time."

The sales lesson here is to learn how to quickly qualify your prospects.   When your  time is your primary stock in trade, there's nothing worse than wasting it trying to sell to someone that's not qualified to buy from you.  

Ask the right questions of the right people early in the process, to determine if you  should spend more  time with them.  If you determine that the prospect isn't qualified, cut your losses, and move on.  But unlike an abrasive politician, you don't have to dislike the prospect. Keep the relationship positive,  because (unlike the personality of an abrasive politician!), a prospect's  situation may change!

How well do you  ask questions, and listen to your prospect, before telling them about your offering?

How well do you qualify your prospect early in the process, to determine if you should spend more time selling to them?

  Time is money

 

 

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03/09/2014

The Sweetest Selling Skill of All

I've always felt that the best way to sell is to be human.

Be open, be honest, and be a fellow human to your prospect - don't be a sales person.

Seth Godin said it best in this blog post last week.  Read it, and digest it.  It'll be the best two minutes of sales training that you'll receive this week.

I love Thin Mints. 

What's your favorite?

Thin mints

 

Posted at 09:27 PM in Selling Skills | Permalink | Comments (1) | TrackBack (0)

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08/12/2013

A 3 - Step Process for Getting More Sales Refferals

Sales professionals are taught to ask their customers for referrals.   Some do it well, some do it poorly, and some don't do it at all.

Sales Refferals 1I recently bought some term insurance from someone who's been in the business for over 30 years.  (I should point out that a good friend referred the agent to me.)  After we finalized the details of the policy, he did what I expected him to do - he asked me for the names of other people to whom I could refer him for business.  But how he did it made all the difference.

My agent followed a smart, effective three-step process that can be used by any sales professional in virtually any industry:

Step 1: Connect with your Prospect on LinkedIn early in the Sales Process.
The insurance agent requested to connect with me on  LinkedIn early in the sales process; specifically, he requested the connection immediately after our first phone conversation.  I accepted.  This connection made my Contacts visible to him, and gave him plenty of time to complete the next step.

Step 2: Pre-select the Referrals.
The agent took the time to review my Contacts, and carefully select those in a certain geographic area (his sales territory) who would likely have a need for the insurance products he offered (executives and business owners).  

Step 3: Be Specific with your Request.
A Best Practice in asking for referrals is to :  Instead of simply asking your customer, "Can you think of anyone else that might benefit from my offering?"  sales reps are told to ask, for example, "What other (technology executives) or (business owners) do you know, who may benefit?"

The  theory is that if you can help your customer to focus their thinking, you'll be more likely to get a referral.  My agent took this a step further; he used our LinkedIn connection to identify specific prospects by name, and presented me with his carefully pre-defined list of names. This served two advantages:

  1. It focused my thinking,  thus making it easier for me to identify referrals for him
  2. It increased the number of potential referrals that I'd give him.  (If you make a general request, you may get one or two names.  If you present a specific list of 10 - 12 referrals, you're likely to get 3 - 4 referrals.)

Asking your customer for referrals is a great way to fill your sales pipeline with qualified prospects.  Following a process that capitalizes on your access to information, pre-qualifies likely buyers, and focuses your customers' thinking will increase your chances of getting more high-quality referrals from your customers.

 Do you make it easy for your customers to give you referrals?

Do you use a smart, repeatable process?

  Sales refferals focus

 

 

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05/27/2013

How Gillette's "Kissing" Campaign Uses Classic Selling Tactics

It's been said that people buy based on emotions, and use logic to justify for their decisions, often after the fact.  Most sales and marketing professionals know this to be true, and the savviest among us use that it into our sales and marketing messaging.

85%Gillette's current "Kiss and tell us" campaign incorporates this time-tested theory in a fun and memorable way.  Before we  go into the details of the campaign, let's take a quick look at the shaving market dynamics among young men - the future of Gillette's revenue stream.

Guys in their early shaving years are growing more facial hair, and hence, shaving less. That means fewer razor,  blade and shave cream sales for Gillette.  And since this demographic has more razor-buying years in front of them than any other male market segment, it makes strategic sense for Gillette to get these guys to change their habits, and start shaving more often.  But how, especially when it's become so cool to be unshaven?  

Men will have better luckThat's where  the emotions come in.  Remembering that buyers buy based on emotion, the best way to get a twenty-something to shave his face more often is to connect shaving more with something that he really cares about; something that he may not see as having any connection to what you're trying to sell him.  
But that's where your job counts... to make that connection for him, and present it in a way that's so simple, it needs no further explanation.  And provide statistics, to form that logical wrapper.

That  said, what's the primary motive of young single men that shave less  often?
  1. Their careers
  2. The college options for their yet un-conceived children
  3. Attracting women
If you said "3" you're correct.  While it may be socially correct to say "career," that's not the right answer.  For men at that age, there's plenty of time to establish a career.  Other needs must be satisified sooner.

76%Gillette sells shaving to these young men as a way to get more women.  That's the emotional part.  But remember, when you're selling, you also need to provide logic; sound, objective reasons for making the buying decision.  And that's what Gillette does so well in this campaign: They combine the emotional appeal and the logic into a clear, uncomplicated message:
  • 85% of women prefer to kiss a clean-shaven man.
  • 2 out or 3 women said men will have better luck with them, if they are clean-shaven.
  • 76% of women would give a longer, more passionate kiss to a smooth-shaven man.

Sure, the campaign may appear a little "tounge-in-cheek," but it beautifully exemplifies how emotions and logic can combine to pursuade a buyer.  In fact, it can lead us to ask ourselves some important questions, to evaluate and improve our selling results:

Do you incorporate both the emotional appeal, and the logical support, in your sales and marketing messaging?

Do  you know what the emotional factors are, that drive your customers to buy your products?

How can you appeal to those factors in your selling and marketing messages?

What logical components can you use, to justify the emotional decision? 

Are there ways that you can combine the logic wtih the emotion, as Gillette has done, for a more compelling message?

 

Posted at 08:00 AM in Communication, Marketing Best Practices, Selling Skills | Permalink | Comments (0) | TrackBack (0)

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04/08/2013

3 Reasons Why We Should All Send More Handwritten Notes

Three years ago, my wife placed an on-line order for a gift for our daughter, from a company we'd never heard of.   A day after receiving the gift,  my wife received a handwritten note from the employee who processed her order, thanking her for the business. 
 
Before placing that first order, we'd never heard of the company. 
After receiving their hand-written note, we never forgot them. 
 
There's something about a handwritten note that captures our attention and stokes our emotions in a very subtle, genuine and powerful way. There are three particular reasons why hand-written notes can be such a powerful way to connect:
  1. NoteHandwritten Notes stand out; they're remarkable.
    The more email and text messages we  receive, the more rare, by comparison,  the handwritten note becomes.  That which is rare, is remarkable.
  2. Handwritten Notes convey caring.
    It takes a lot more time and effort to draft and deliver a handwritten note, than it does to send an email or text, or make a phone call.  Nothing communicates like caring.
  3. Handwritten Notes endure.
    Many years ago, when I was visiting with a large customer, I stopped by the cubicle of the purchasing agent who was responsible for placing orders for my products.  Several months earlier, I'd sent him a note thanking him for a particularly large order that he placed on the last day of my quota year.   That note card was tacked to his cubicle wall, next to his son's little-league baseball card.  Handwritten notes stick around as reminders.
A lot has been written (pun intentional) about the power of the handwritten note, including this post by John Coleman on the HBR Blog Network.
  
Another testimonial to the note is one that I remember  from reading  "Straight from the Gut," by Jack Welch in 2003.  One of the things that impressed me most about Welch (arguably the most powerful executive on the planet at that time) was the frequency with which he drafted hand-written notes to his managers throughout this 300,000 person enterprise. In fact, the book contains many images of these notes, including those written to Jeff Immelt, when Immelt was being groomed as a successor. 
 
Here's the good news:  You don't have to become the CEO of a Fortune 500 to use this technique.  If you  have access to pen, paper and postage stamps, you can start today.  Granted, Welch probably did not have to go out to buy stamps.
 
Do you have a story about handwritten notes that you'd like to share?  I'd love to hear it!

Pen

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02/03/2013

The one thing that every sales rep needs to be trained on.

Training a Sales Person is like selling to a Customer:

You cannot assume that they understand the benefits of your product; you must connect the dots for them, so that they get the value proposition well enough to explain it to others.

Ligtbulb2Just because a sales person is experienced, and has been effective in other organizations does not automatically translate to success in your organization. Yes, the social skills of selling (networking, making the calls, etc.) are hugely important, and those are the areas where you should not need to train as much.

But the sooner a sales person can articulate the BENEFITS that result from the ADVANTAGES that come from the FEATURES of your product, the sooner they can be truly effective.

Connect the dots for your salespeople, so that they can connect the dots for their prospects.Training a Sales Person is like selling to a Customer:

You cannot assume that they understand the benefits of your product; you must connect the dots for them, so that they get the value proposition well enough to explain it to others.

Just because a sales person is experienced, and has been effective in other organizations does not automatically translate to success in your organization. Yes, the social skills of selling (networking, making the calls, etc.) are hugely important, and those are the areas where you should not need to train as much.

But the sooner a sales person can articulate the BENEFITS that result from the ADVANTAGES that come from the FEATURES of your product, the sooner they can be truly effective.

Connect the dots for your salespeople, so that they can connect the dots for their prospects. Connect the dots

Posted at 02:36 PM in Selling Skills | Permalink | Comments (0) | TrackBack (0)

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