How NOT to Handle Customer’s Objections.

 

It is tempting to immediately share

30 years of research with you, and say
Buyer’s Objections Cannot be Overcome!

 

But, that would cause you far too much emotional distress. You don’t want to believe that is true, or you would not have started to read this Blog.

 

 

How to Handle Customer’s Objections?

 

The BEST way, by far, is to AVOID Objections completely!

In order to do that, you must first learn:
What causes objections?

YOU DO!

Yes, that’s right; Sellers CAUSE Buyers to Object!

In thousands of Sales Calls I have logged the Customer Objection,
AND what the Salesperson said  before  the  Customer Objected:

The Sellers gave the price,
then the Buyer said “that’s too expensive!”

The Seller gave the dimensions,
then the Buyer said “that’s too small!”

The Seller gave a delivery date,
then the Buyer said “that’s too late!”

The Seller asked for the order,
then the buyer said “I am happy with my current supplier!”

 

In fact, evidence based fact, the two primary causes of Customer’s Objections are:

1. The Seller giving features, Price, Size, style, speed, feed, location, colour, compatibility, etc.
2. Or, The Seller asking for the order.

If Objections were GOOD things (Buying Signals),
then the best way to get Objections is: to ASK for the Order,
early in the Buying Cycle as this is almost certain to cause an Objection!

 

Are Objections GOOD things, are they buying Signals?

If you look at the straightforward evidence of:

What is the relationship between Customer Objections and Sales success?

This is easy to measure, just COUNT them!

Then,

the MORE Objections you get,
the LESS you sell !

 

Remember:
YOU caused the Objection
by Talking Features or Asking for the Order.

 

ONE Objection?

for example: Price, this MAY be overcome if a ‘trade-off’ is made [often this is Value]

TWO objections?

You are unlikely to get the business, even if you have one good trade off.

 

THREE objections?

You have mis-sold your product or service and you won’t be getting the business.

Hopefully one of the three objections was PRICE,
now you can report to your Sales Manager,
that the Price is too high, rather than YOU cannot sell!

 

Objections are OBSTACLES.

If you believe Objections are welcome ‘buying signals’
then you have given up Rationality, rather than just giving up the sale [or selling].
When you extrapolate fiction, it then becomes fantasy!

Persistence is a trait of many Salespeople,
but continuing to repeat something with little chance of success is “Irrational Perseverance”

Objections are best Avoided.

You can avoid Objections by showing how your Product or Service meets the Buyer’s needs,
and by NOT Asking for the Order, until they are ‘Ready to Order’

 

OK, how do I Handle the one Objection I did get,
by giving them my Price BEFORE I gave them their Value?

First of all 99% of Sales “Objection Handling” techniques DO NOT work.

They are nonsense. I repeat, the techniques taught, and written about DO NOT WORK.

 

I have measured ‘overcoming’ Objections on thousands of occasions,
thousands of objections and the “Skills” to overcome objections DO NOT work.
You can easily measure them too.

Let’s take a widely taught Objection Handling technique “Feel, Felt, Found”.

I understand why you Feel the price is too high.

And other customers have Felt the same way.

However, when they saw the money they saved with it they Found it was really good Value!

I measured this against 300 uses for various objections,
it succeeded less often than just ‘ignoring’ the objection all together!
And, that was only “successful” in less than 15% of the time.

It does NOT work.

Or, “Preemptive” Objection Handling

using a “Script” to introduce a known shortcoming of your product or service,
then attempt to offer a scripted ‘answer’. 

“By presenting these shortcomings or negatives, our aim is to create credibility and gain trust”. 
The actual effect on Buyers is the opposite!

The Seller ‘introduces’ additional Fears, Uncertainties and Doubts in the Buyer’s mind,
then uses a “Rebuttal” or “argument” to overcome it!  Nonsense!

Again, research shows that “When you extrapolate fiction, it then becomes fantasy!”

 

What does sometimes handle an Objection is a Trade-off.

In this case trading better Value for a higher Price

 

Let’s take three houses.

 

If we were selling the New House A, the most expensive,
then we would have the “That’s too expensive option”.

We have to Trade Value, for the higher Price.

Against the other house B our ‘Value’ is in a Better Location, with Good Schools.

 

Is it better to have a Good location?

Yes, because this property will increase in Value faster and further than House B, 
So it will be in demand, therefore it may work out cheaper overall!

 

And, what price do we put on having our children happy at school?

If taken over a 10 year period it would be 20,000, or 2,000 per year, or 40 per week.

This money will be recovered in a higher Price when we choose to sell!

 

Against, the current house which, after the new baby, is now too small,
it’s the increased cost of the mortgage 263 per month or less than 10 per day.
However, ALL of this money, and more, will be recouped when you sell the new larger house,
i.e. the extra bedroom will be free!

Trade-offs, against Drawbacks [objections] may convince Customers to buy.

Here are a few Key thoughts about Objections:

• Objections are BEST avoided
• Objections are Caused by Salespeople
• Objections cause lost sales, they are NOT ‘Buying Signals’
• Objections are “Drawbacks”
• Objections can be traded off, sometimes!
• Objections are Statements, they are NOT Questions.
• Objections cannot be overcome with flim-flam,
  psychological nonsense, and 99% of taught techniques do not work

 

BMAC Consultants have developed an Evidence Based Objection Handling model,
based on Avoidance and Trade-off.
This is a Sales Skill, an Interactive Skill based on the ACTUAL Sales Situation. 
If you wish to see other examples e mail Brian.MacIver@Gmail.com

Customer Retention Strategy Selling in Recession

 

Dave Brock has written two insightful Blogs into Customer Retention.

http://partnersinexcellenceblog.com/customer-retention-different-approaches/

and

http://partnersinexcellenceblog.com/customer-retention-whose-job-is-it-anyway/

 

In a recession your ability to keep and grow
existing Customers is the difference between
Business success and failure.

 

How do you set a Good Sales Defence Strategy?

 

I can no more give you a Formula,
than the plan that Napoleon had that ended in his ignominious retreat from Moscow,
instead of the victory parade in he planned.

 

 

 

 

 

Sales Defence Strategy will be determined by
YOU, your Customer and the Competition.

The factors in formulating a good defence are building high walls, in business this is “Barriers to Entry”, or at the very least a very high Cost of Entry. IBM, was very successful in this by using proprietary software, in the 1980’s if you wanted the software, it only ran on an IBM Computer. Open-architecture, and Plug-Compatibility put an end to this approach!

 

What are today’s ‘Barriers to Entry’?

Functionality can be a barrier

If you do what the Customer wants done, and others cannot do it, then you can defend the Account.
However, relying on USP’s and Functionality alone is, no more than, a short term defence,
it won’t last, the Competition will catch-up, they may even leap frog you! [Blackberry]

 

Today’s barriers are Customer Experience.

That is, in great part, how Sales sold the first deal.

What were the “Expectations” of the Customer,
what are their current “Perceptions” of their experience?

How satisfied are they with your Value delivery? 

In planning a ‘Defensive’ Sales Strategy, you MUST listen to the “voice” of the Customer.
One way is in Complaints Handling, if these are well done,
then you create a Positive ‘voice’,
if handled poorly then it’s a Negative ‘voice’.

Financial Barriers, can be the hardest to erect

And, during recession this can be the weakest point in your defence.

This is not only PRICE, but is VALUE as well.
A well-defended account, will have kept a ‘Customer Perceived’ Value REGISTER,
showing the Financial BENEFITS, which the Customer expected and they perceived that we delivered.
This is NOT a wall you want to try and erect AFTER you are under attack!

That is called ‘Panic Discounting’, a paper thin wall, offering little or no defence.

Relationships are the third wall in Sales Defensive Strategy.

We know that you cannot Sell on Relationships alone,
nor will you be able to defend on relationships alone.

But, they are a vital part of Defence! A good Account Defence, is based on a broad set of Sales-Customer relationships, from the front desk Receptionist through to the CEO.
The front desk may well be your first ‘early warning’ of Competitive Activity in the Account. 
Build an ever growing network inside your Customer,
connect them back into your Company, KEEP ON SELLING!

When I conduct Customer Retention Strategy Workshops,
I always ask the same starting question:

What would you do to win this account?

We spend a lot of time working out the BEST competitive Acquisition Strategy against us,
then, and only then, do we begin formulating our Customer Retention Strategy,
to hold onto [and often Develop] our Customer.

Just a final note, I was at Burroughs [now Unisys] when they adopted the Tactic of Hunters and Farmers.
Against IBM and Hewlett Packard this was a DISASTER,
as fast as our Hunters Won new Business,
our Farmers Lost existing business.

A New Business Salesperson with a Sales Acquisition Strategy
will always take Business from an Account Manager
who has not both planned AND executed their Customer Retention Strategy.

Start Building those walls today!

The SIX Hour Sales Call

 

“What’s the ruling?” he asked.

I gave him the rule straight from the Rules of Golf.

“It’s an unplayable lie, you can move the ball [after marking it] under penalty of one shot.
Rule 27-1 lets you play your shot again from where you last played.
Or drop a ball on the line between your marker and the pin, as far back along the line as you wish.
Or, drop a ball no more than 2 club lengths from the marker NO nearer the hole.”

“It’s your choice!”

While he was thinking,

it occurred to me that Golf has RULES which make it fair and enjoyable.

 

What, I wondered, were the rules of SELLING?

When, like me, you have a Prospect [or Customer] with you on the golf course for six hours?

It is probably best to begin with a few DON’Ts:

1. Do NOT try and have a six hour Sales Call!
   This will strain both you and your Client to breaking point
   
2. Do NOT just have a ‘social’ round of Golf 
   Play a competitive round, which fairly tests both of you
   
3. Do NOT play at your rhythm and speed of play but at the Client’s pace, Play READY Golf
   it’s their day If you are a fast golfer, take your time, if slow then get a move on!
   
4. Do NOT drink alcohol DURING the Game 
   It will not improve either your game or, your behaviour!
   
5. Do NOT talk business for the first six holes, or the last six,
   only the middle six and then in the bar afterwards.  That is a TWO Hour Sales Call,
   but it is best done between the Green and Tee, so it is only 20 minutes on the course.

Before talking about the DO rules,
its best to consider WHY you are inviting your client to a Golf Day.
[and why they are accepting]

 

It is Classic “Relationship Discovery and Development”,
getting to know one another, it’s about building Trust.

 

Fair Play on a Golf Course may not indicate fair play in Business.  But, unhelpful, unfair and aggressive Play on the Golf Course, may indicate to a Buyer,
what you are like in business.

Demonstrate Fair Play, helpfulness and collaboration.

It’s important that you KNOW, and abide by, the Rules and, just as importantly, the Etiquette of the Game. The purpose of the day, no matter the actual Goal for the day is to establish that they would want to do business with you!

The Five DO’s are:

1. DO Only invite People who matter.
   You want key people from the Decision Making Unit, NOT their best Golfers!
2. DO have Goals for the day.
   Rehearse any Suggestions, or Requests, you may make, DO NOT be spontaneous!
3. DO Play the best Golf you can on the day, do not play to lose.
   This is obvious manipulation, a fair win is better than a ‘planned’ loss.
4. DO Be a good Golf host
   ENTERTAIN on the course have some great Stories, and tasteful jokes, be Great Company
5. DO Play for the 20^Th hole, not the 19^th, it is what happens next that counts.
   Send a follow-up letter, a photo or souvenir of the day, to remind them of their Golf Day.

A Client Golf Day is all about Relationship and Trust,
it is NOT about Product or Company.

You have an ideal opportunity to observe [close-up] your Client’s Problem Solving,
their Decision Making process, and their Interpersonal Skills.

There are a number of models you can use:

One is the Socializer, Relator, Director, and Thinker model

http://www.mindspring.com/~lindaross/audi/pdf/personality_types.pdf

Make use of these insights to appeal to your Client’s Personality Preferences.

 

 

 

The Perception YOU make
with YOUR Customer,
will be their view of you,
and of your Company
…..Manage Yourself.

 

 

 

Non-Golfers can participate in Golf Days by being ‘Hosts’
both before and after the game. 

 

If you are thinking of learning the Game of Golf,
then learn from a Golf Pro, that’s your advantage.

Self-taught Golfers, like Self-taught Salespeople, often don’t play by the rules and have more bad habits than good habits. So, take lessons!

 

BMAC Consultants run Business Golf Training sessions in both Spain and Scotland: 
“How to get the best from your Company Golf day”

Do you think The Challenger Sale methodology is superior?

Jill Rowley (‏@jill_rowley) of Eloqua
Winner of the 2013 Sales Representative of the Year – Stevie® Awards

http://www.youtube.com/watch?feature=player_detailpage&v=HTJQyce2Qf0

 

 

Asked me a simple, straight forward question:

“Do you think The Challenger Sale methodology is superior?”
[to the IBM Signature Selling Methodology SSM]

The short answer is “yes”.

 

The longer answer is below!

IBM’s ‘Structured’ Sales Methodology (SSM) gave them significant Competitive Advantage, across multiple Sales Channels. I was consulting with Big Data Storage when we noticed an increase in sales being lost to IBM Distributors in the early 2000’s. We were used to winning the lion’s share in this arena because it was not IBM, not IBM sales, not IBM process. It was a ‘soft’ Market. I did a number of lost business reviews, and we interviewed several job applicants from IBM Distributors.

We found SSM.

“Over one-third of IBM’s employees use the IBM Signature Selling Method every day as they develop solutions to client problems. IBM has learned that the professionals who have trained on and use this method sell two to three times more than sales personnel who have not. The method is supported by a portal to allow IBM sales representatives to hone their selling skills and to help with soft-skills development, such as self-image and rapport-building, that is necessary for sales success.

IBM’s learning transformation story. 2004

SSM is an elegant methodology which gives IBM and its Sales Channels a common language, allows for rapid scaling and experience sharing. IBM drove it from Marketing, which gave SSM reach and funding.

It is based on the process that Rackham had published several times, most specifically his 1999 “Rethinking the Salesforce”, accurately subtitled as: redefining selling to create and capture Customer value, which he co-authored with John De Vincentis.

Rackham’s Process is described in Chapter seven “Sales Process light in a long dark tunnel”,
where the basis of IBM SSM is covered.

The KEY point is that Sales, unlike other departments, do not have clear boundary “handoffs”, where ‘lean’ improvements can be made.

Rather Sales have an end to end process…….The BUYING Cycle!

And, Sales have to fit with that.

But then you knew that!  Jill, you are the EloQueen.

What you may find interesting is his “Seven Characteristics of a Good Sales Process” page 217.

And, that was what IBM did,
they tested their Sales Process against those seven Characteristics.

From 2003 on in Big Data Storage and Data Services which, compete head to head with IBM, we have used an SSM, underpinned by Consultative Selling Skills based on SPINFAB to successfully compete with IBM and its distributors. If you do not have a SSM, you will lose, a lot, against IBM. In Big Software we underpinned our SSM with Enterprise Selling based on Advanced Selling Skills using VALUE CONSTRUCTION.

When 2008 happened, we had problems all over. Delayed decisions, status quo decisions, losing to the cheapest competitor, and really, really tough Price/Cost negotiations with procurement. Sales were down, margin was down, and profits were down. Yet some Salespeople were doing OK, Revenue Growth, Margins held, and they were earning good Commission!

We audited and assessed the Salesforce. Compared to previous audits there was no skill drop off, but there was substantial activity change. Late entry [or even last minute entry] in the Buying Process was becoming the ‘Norm’. Selling was becoming a matter of weeks of FRANTIC activity followed by months of inactivity in both Strategic accounts and Major accounts.

 

 

In 2010, in London, I held a breakfast briefing with clients from Big IT, Big Data Storage, Big Telco and Big Software, where I suggested that Relationship Based Selling was NOT working.

It did NOT go down well!
We had a lot of toys thrown out of prams.

 

 

 

Some of these Corporations were betting their shirts that the ‘relationships’ they had been building [for 10 or more years] with their clients in Banking, Government, Industry, Transportation, Energy and Petro-Chem were going to sustain them through the “turbulent” economic climate.

Relationships, did not help.

By 2012, we had the following general situation.

 

Yes, SIXTY per cent of the Profit contribution
was coming from only 15% of the Salesforce.

This means that losing a Sales Top Performer, a Rock Star,
was really hitting the bottom line.

Just promoting the Top Performer, could seriously impact Profit performance.

 

In several Telecom Clients in 2010-2012
we took the step of cutting the bottom 15% of Salespeople
who were causing a 20% profit contribution LOSS.

We then gave their accounts/territories to the Top 15%.

It had a very positive Profit Contribution response.
(This technique was used by Unisys in the 1970’s)

 

Then, in late 2011, we began hearing about some of the SEC-CEB research,
and the forthcoming Challenger Sale. I read Rackham’s endorsement,
and obtained an early copy of the book.

Jill, I have worked in Evidence Based Selling skills for 30 years, ~
I am NOT taken in by Fads, silver bullets or Hyperbole. I am a Sales Skills Sceptic.
To be even more precise I use an ‘eliminative philosophy’ which simply says:

“If what you tell me is true, then show me the proof and let me TEST it!”

I wrote a Philosophical Criticism about The Challenger Sale in November 2011.

http://brianmaciver.blogspot.com.es/2011/11/philosophical-criticism-of-challenger.html

I cautioned, TCS would be misunderstood, and it is now the most misrepresented Sales Methodology around. It has ‘disciples’ who don’t get it, and it has “critics and detractors” who don’t get it, either. I suspect that many who comment for, or against, the book have never read it!  Not understanding the Book, the Research, or the Practice does not seem to stop anybody from commenting about it.

Remarkable!

2011, and The Challenger Sale, I already knew that Relationship Selling was NOT working. The startling new Information that the book offered was a sound statistical basis to take a fresh look at Selling,
since the 2008 financial collapse

The emergence of The “Challenger” profile, as distinct from the “Lone Wolf” was really helpful, as both in my research, and is most other research, they were both in the SAME category “Top Performer”. However, now we could measure that one type of ‘top’ performer was in decline, and the other in ascendancy in current Market conditions.

The TCS comparative Statistical Analysis on the ‘Challenger’ out-performing the ‘Relationship Builder’ by more than 10:1 in Complex Selling, was even more than our calculated 7:1.  We had a Validation for what we had perceived in 2010, and had implemented by restructuring the Salesforce population.

Now Jan 2012, the real work began:
“What were the Sales BEHAVIOURS being used by Challengers, and Relationship Builders,
which were defining their success and failure?”

Challengers are “Challengers” because of what they DO,
not because of who they ARE!

Likewise for Relationship Builders.

Early research, we had a 15 year database of Sales Behaviours and Sales Performance results to examine, (n=3000 approx.) We had 300 hours of Video to review. And a current base of 350 audited and assessed salespeople to improve behaviourally.

 

We had several early wins.

Challengers and “Lone Wolf” both used more Suggestions than Proposals unlike Relationship Builders, who used almost exclusively Proposals. This is NOT published in the TCS book and is unique to BMAC Consultants.

What do I mean?

• A “Proposal” is a Statement: “You should do this!”
• A “Suggestion” is a Question: “How would it be if you (or we) did this?”

Challengers and the Lone Wolf by using Suggestions
were having a 60% Buyer agreement rate and a 40% disagreement rate.

Relationship Builders by using Proposals
were having a 60% Buyer rejection rate and a 40% agreement rate.

i.e. this behaviour alone was proving to be 50% MORE successful.

The second early win was on Challenger “Insights.”

See: http://brianmaciver.blogspot.com.es/2012/05/putting-challenger-sale-to-work-four.html

This was the method we used, very successfully,
to generate insights for Big Software to sell Cloud Based substitutes for Enterprise Software.

We then looked at the Behavioural Practice to deliver the insight content.
Again using the Challenger group and comparing behaviours to Relationship builders.

Challenger exhibited a 60:40 ratio of DISAGREEING to Agreeing

Relationship Builders exhibited a ratio of 40:60 disagreeing to AGREEING

It has to be noted that Challengers disagreed rationally, by saying WHY they disagreed,
and delivering an insight, RB’s tended to agree with Customers without saying WHY they agreed.

The Impact on the Buyer is noticeably different!

The Buyer would accept the RB’s agreement and reinforce their current approach.

The Challenger’s rational disagreement would cause the Buyer to defend their current approach and enter into Customer Engagement where the Challenger could PROVE their insight.

So, the question

“Do I think The Challenger Sale methodology is superior?”
[To IBM’s SSM], is:

That they work together!

Using a Structured Selling Process is better than not using a Structured Process.

(NB. it’s very worthwhile to test your “Structure” against Rackham’s Checklist,
just any old “structure” will not do!)

Using the Challenger Approach to initiating Customer Engagement, is superior to most alternatives, especially the Problem Discovery Question based, then Solution offered approaches.

Hence, the furore over “solution selling” is dead discussion.

My research leads me to conclude that Salespeople will NOT learn the ‘behaviours’ of a Challenger just by reading the book, but anyone in Selling can become a successful Challenger by learning the Challenger behaviours and USING them correctly!

 

 

The Golden Triangle, the very Top 5%, Performers in Sales can be developed by careful construction and combination of:

• Revenue Generating Sales Activity [an SSM],

• Evidence Based Selling Skills [including TCS] and

• Business Knowledge [access to Business Insights or an Insight Generation system].

 

 

 

And, all of this fits right on top of current best Practice in Marketing from Companies like Eloqua’s cloud-based marketing automation and revenue performance management software.

Eloqua’s modern marketing cloud delivers best-in-class capabilities to ensure every component of marketing works harder and more efficiently to drive revenue. Having a robust Evidence Based Structured Selling Methodology and an Evidence Based Sales approach, with Validated Sales Behaviours delivers the REVENUE and PROFIT results!

Closing is a Dysfunctional Selling Skill

 

In his blog http://thesaleshunter.com/never-leave-a-sales-call-without-closing-on-something/

Mark Hunter offers advice on how ‘Closing’ [asking for continuance in this case] should be done when a Sales Call is going badly. The premise he uses for this is the “Try Harder”, “persist longer”,
the “never give up” Sales school.

 

Mark writes:

 

“It is essential to always remember there is no such thing as a final sales call. If a sale can’t be made, there is still a sale that can be made and that’s selling yourself and creating a next step.”

 

 

 

What is the Evidence Basis for this view?

Well, Top Sales Performers use the opposite approach.

They ask themselves what is the likelihood of winning this business?
Unless their chances are high [the algorithm they use I will write about at a later date] they cut and run.

Their most important resource is their TIME, and they don’t waste it, on unlikely sales.

Poor Sales Performers, on the other hand, don’t give up.

They flog dead horses. Poor Sales Performers appear to lack judgement,
they do not use an Algorithm.
They spend 4 times as much time on No-sales as Top Performers.

Mark then writes:

“Minimally, strive to agree on what is keeping the customer from making a decision to buy.
Doing this helps to clarify in both your mind and your customer’s mind where the issues are.”

This is a highly Dysfunctional Selling Skill!

Agreeing with a Customer’s Objection is called “Objection Reinforcement.”

This was used disastrously with the Positive-Negative Close.

“You’re too expensive!”
“Yes, we are expensive, and it’s this Price ‘exclusivity’ which many of our Customers enjoy!

Agreeing with ANY Customer objection reinforces the Objection.

Xerox PSS in the 1970’s used a step in Objection Handling called “Confirm and Isolate”
e.g. “You believe we are expensive, is this the only reason why you won’t go ahead?”

Salespeople who used this were found to be 10 times less likely to get the business,
than Salespeople who missed this step out!

 

First of all recognise,
that YOU have most likely made mistakes both before, and during, the call.

Poor pre-call qualification, poor proposition or insight preparation or just poor selling skills during the call.

Don’t make it worse by “Reinforcing the Objection”,
or by causing further Objections through more ‘Closing’ or Commitment requests.

 

So, how can you manage the ending to a ‘difficult’ call?

DISAGREE with what is keeping you apart,

ask for a time-out and a new appointment.

 

 

Give a positive reason for the next meeting,
see three great selling skills that really work.

 

http://brianmaciver.blogspot.com.es/2012/02/three-great-selling-skills-that-really.html

And, finally if you did a good job in the Call, and it did not payoff, use the Algorithm “Move on!”

Sometimes Your Cheese really has Moved!

Be the Type of Salesperson who uses an Evidence base to Support their Sales Behaviours, not speculation.

Sales, a Job for Life! Part Two

 

Why some Sales people consistently outperform others.

Transferable Selling Skills are not COMMON sense.

If the skill is just “COMMON” in Sales then it is usually “Common Nonsense.”

 

“The last thing the Sales Manager saw and heard
before the Salesperson won the business was the Salesperson Asking for the Order.”

The Sales Manager used inductive reasoning
and made note of what he had seen. 

He saw it again soon after.
Then, again and again.

 

 

 

 

 

Considering the “evidence” he had seen, the only conclusion he could draw,

by INDUCTIVE REASONING, was Asking for Orders, CAUSED Buyers to Buy!

 

He labelled this Sales Behaviour “Closing” –

Closing the Sale or Asking for the Order.

The Sales Manager left his job and became an independent Sales Trainer.
He called himself an “Expert” and claimed to have discovered the “Secret of Selling”.

He promoted his Master Class in Selling under the Title

“Close the Sale!”

So sure was he about his “secret” that he offered a money back guarantee, if you did not win more sales by learning his secret!

Some people tried to claim their money back.
But, he simply said “It works for everybody else!”
And, then he added
“You are not doing it properly,
with great confidence and a positive mental attitude”.
So, he did not refund their money.

But, he did carry out some more research.

He found that Closing did NOT always work, the first time,
so he altered the “secret” and said you have to ‘Close’ FIVE TIMES to win the Business.

His Training now said “you can’t close too early and you can’t close too often!”
He developed many ‘types’ of Closing to give variety to the repetitive close five times!

The Assumptive, and the step by step,

The direct ask, and the indirect ask,

The alternative, and the trial close,

The Ben Franklin, and the Half Nelson close,

The Sharp-angle close, and the Positive-negative close.

His original 2 hour session was now a TWO DAY Sales Workshop called:

“101 ways to Close the Sale, the SECRETS to Sales Success.”

He performed in larger and larger venues.
He was a Rock Star, and the show went from Teaching to Theatre.

 

He trained over 200,000 people.

 

His Sales Training ‘heirs’ have passed his secret on to Millions of Salespeople,

through several generations of Salespeople.

But, He never conducted the simplest of all research, a behavioural experiment:

“Do Salespeople who Close MORE often, SELL more,

  than Salespeople who Close LESS often?”

If he had conducted that experiment,
then he would have uncovered that:
People who ‘Close’ LESS often SELL MORE, and
People who ‘Close’ MORE often SELL LESS.

What he had been selling as “The Secret to Selling”,

was in fact, a DYSFUNCTIONAL Selling Skill.

THE MORE YOU DO, then THE LESS YOU SELL.

If he had used Evidence Based Research, simple behavioural research,
instead of Inductive Reasoning, then he would have found that:

The most likely Buyer response to an “Early Close” is an OBJECTION.

He would have also been able to observe that:
the more often you close, the more objections you get!

And, he would have been able to empirically measure that:
the MORE Objections you get then, the LESS YOU SELL!!

When a Positive Attitude to Closing is displayed
by “Closing” too Soon and too Often then:

You do NOT succeed in Sales!

Sales, Jobs for life!

 

Nobody has a lifetime Contract of Employment,

which is strange because Employers want Customers for life.

 

How do we understand a “Job for Life” in 2013?

I believe it is found in the concept of “EMPLOYABILITY”

An ‘employable’ person is one who has desired Skills and Competencies,
which they can use to generate Value for their Employers, they are always in demand.

 

 

As a Sales “Employee” you have the right that your Employer shall at least maintain your current employability.

It is to their current benefit
and it is of vital future importance to YOU.

Employability, for a Salesperson, is having a Portfolio of transferrable Selling Skills,
which will enable you to bring Value to your Employer whoever that is.

 

 

 

 

 

If a Salesperson’s Selling Skills are developed and maintained,
then I believe they will have a job for life.

Selling skills, FUNCTIONAL Selling skills, serve as a good foundation for Management and a great foundation for General Management.

Insist that your Selling skills, hence your future EMPLOYABILITY are at the highest level.

If your current Employer will not do this, then before you lose what employability you have.
Leave and find an Employer willing to maintain your Selling skills.

In all events, recognise that YOUR future employability,
YOUR Job for Life, rests in YOUR own hands.

Take actions to safeguard your employability, do it for yourself!

Selling against Value, with Price.

 

In these frugal days, Price,
or as Buyers refer to it “COST”, is a very important factor in their Decision Making.

Sometimes, clever salespeople reverse the Price Advantage by offering more VALUE.

It’s a Formula:

Value = Benefits less Cost

Their “Added Value” comes from offering MORE benefits to cover their EXTRA Cost (higher Price)

For example:

They may claim that “due to lower running costs”,
their Total Value over five years is better than yours.
However, YOUR PRICE is less than theirs is, NOW!

 

 

So, “How do you WIN on Price?”

 

There is an embedded preference in most people.
In Human Decision Making we have a marked preference
for Rewards (payback or benefits) that arrive EARLIER.

 

People prefer Rewards sooner, rather than later.

Would you rather have $1 now or wait a year for $3?

If you chose a dollar now, then you are in the majority and you exhibit PRESENT BIAS.

 

You like the certainty of rewards now,

rather than the hope for reward at some future date.

A future which may, or may not, come!

When selling on PRICE, you have to appeal to your Buyers “Present Bias”.
The Value of a lower Price is available NOW.
The Value of “added” benefits only occurs over time and has a lower value than a Reward instantly available!

Who knows
if the projected value over five years will occur?
Who will get the credit, perhaps your successor?

The Time Value of Benefits discounts with time.
The certainty of reward and recognition of a lower Price, to you a lower COST, is available now.

 

 

So, when Selling on Price against a “Value” Seller, make sure you invoke the “Present Bias”.

Make sure your Buyer knows they can have their REWARD from you NOW!

How does PRICE link to Sales forecasts and missed Targets?

Read http://brianmaciver.blogspot.com.es/2012/03/ignoring-sales-forecast-and-missing.html?spref=tw

The Secret to Selling

 

A great sales Guru discovered the Secret to Selling.

It is comprehensive; it is elegant in its simplicity.

Those who learn the secret will have untold success and fulfil their dreams.

Using the secret will bring great wealth, which may then be demonstrated in Property,
possessions of great quality and a five-star life style for themselves and for their families.

They will be respected and valued by their Employers,
admired by their colleagues and loved by their Customers.

The great sales Guru who found and taught the Secret of Selling
retires and disappears to live in secluded luxury.

The Salespeople who learned the secret begin to fail.

They search libraries for new books, watch new videos and attend conferences for the secret.
They consult with Consultants,
they are trained by Trainers and
they seek coaching with Coaches.

They search for the Secret of Selling in Psychology,
they then resort Pseudo-Psychology and Folk Psychology. 

They ask neuroscience if they have found the Secret of Selling
and they are told of a Biological basis to decisions.

Computers are bought to enter, share and manage Data, to Control Relationship Management,
to give Sales Force Automation systems and process to the speculations of ignorance.

As their Revenue numbers drop and their success turns to failure,
their search becomes frantic.
Any street prophet, lunatic or charlatan is paid for advice and, even worse, they are listened to.

Salespeople pretend to their Employers that they still have the secret,
but they are losing the respect and value they once had.
Their Colleagues stop admiring them; instead they begin to resent their high salaries.

Customers no longer love them; in fact, Customers avoid them preferring to buy on-line.

Their five-star Lifestyle is no longer possible and their families resent the change.

And then, the sales Guru returns.

They ask again for the secret of selling.

He smiles then replies,

“The secret of selling is in the skills that you have,

the knowledge that you need, the work that you do,

the strategy that you use and the attitude that you hold.”

“After I left, you forgot this,
you listened to false teachers
and you looked for lazy answers.”

• The secret of Selling is in Evidence Based Selling Skills, not in short cuts or proverbs.
  
• The secret of Selling is in Appropriate Knowledge of Product/Market, not in bluff.
  
• The secret of Selling is in Revenue Generating Activity, not in busy work.
  
• The secret of Selling is in a Good Strategy for Your Customers and Your Competition,
  not in an imaginary Selling Process married to an imagined Buying Process.
  
• The secret of Selling is in a Healthy Attitude to work,
  to your Employers, to your Colleagues and to your Customers;
  not in easy answers, tips, tricks, ploys and dodges.

Putting the Challenger Sale to Work (SIX)

 

Making a Challenger Sales Presentation or NOT?

I love Flip Charts the fresh white surface, the smell of the permanent marker Pens! If you have been to one of my “Early Closing” days, then you know the room fills with Flip-chart pages 20 or more blue tacked to walls, windows and doors. Flip charts filled with 3M post its which are sorted, listed grouped as we identify HOW we will win the sale, and WHAT we have to do to win it!

I do not like “Whiteboards” so much, you cannot bring them with you,
and you are not allowed to take them away after you finish!

The content is temporary, like their Dry Marker Pens (more Dry than Marker) with almost no smell.
The main use I put whiteboards to is as a Projection Screen for presentations, and they are not very good at that either.
They always have a glaring, reflective “hot-spot” which prevents the viewer from seeing the best bit!

It has been with some interest that I have watched the FAD of “Sales White-boarding” grow.
Like all FADS, numerous people claim its invention. Moreover, even more “licenced”
or “accredited” to run a “White Board Sales School” Training Courses.

There is a wide range of Claims for “white boarding”, the basic claim is it’s “better” than PowerPoint.
Additional claims are its memorable, creative, flexible and persuasive.

The CLAIMED out comes of white boarding are SHORTER Selling Cycles, BETTER Sales Margins and
more acceptable to C level Buyers. Most Firms would want these.

What is the reality?    Have a look at this video.

http://www.youtube.com/watch?v=r_CAZkris4Q

Are their Claims met?    Is it ´operator error´ or is it the concept?

Let us compare this to a simple PowerPoint Presentation on a similar subject.

http://www2.bt.com/static/i/media/pdf/secure_internet_teleworker_presentation.pdf

There is a “script”, which the presenters are trained to “tailor” to their audience.
If it is no better, it is certainly no worse.

 

Let us look at some static images

   then this one      

 

Which is a C-level graphic, which is a play ground doodle?

 

These are two BLOG graphics from one of my favourite bloggers, a really smart guy…….

     or   

 

 

 

Many smart people are being mesmerised by this approach,

especially in MARKETING, but MOST Sales people CANNOT use it effectively,

only a very few who do use it, use it even fairly well.

 

What you did………

         what you tried to do…….  

 

My conclusion: if you have an arty degree,

especially in the graphic arts this tool may help you.

If you do NOT have any talent in lettering or drawing,
if you always lose at Pictionary,
then remember the Saying

“A fool with a tool is still a fool!” (Thanks Tamara)

 

What does all this have to do with Challenger Selling?

I have watched a series of great opportunities being blown due to inappropriate amateurish,
even childish efforts to whiteboard.  And, at the same time as the CMO is sending
more and more people of for “Training” in the ART.

Buy a copy of “The Challenger Sale” for your Salespeople instead, it’s cheaper,
the outcomes are SHORTER Selling Cycles, BETTER Sales Margins and
more “Challenging Selling” is a lot more acceptable to C level Buyers, than DOODLES.

If your PowerPoint Skills are poor, then get trained.

If your PowerPoint Presentations are boring or extra-long then buy the book “Beyond Bullet points”,
and realise the power of Great Storytelling, together with great graphics
in a really SALES PROFESSIONAL way.

 

In Challenger Selling,
you do a lot of hard work to earn your Presentation Opportunities,
DO NOT BLOW IT,
Tailor and Control it instead.

Putting Challenger Selling to Work–One

 

Top Performer Challenger Salespeople BEHAVE differently from Average (or Core) Challenger Salespeople. What is it that Challengers DO which either holds them back or makes them more successful?

One of the differences is in HOW they Challenge the Customer!

 

 

I have just reviewed a quantity of recorded sales calls.
I was running Behavioural Analysis on BOTH the Customer and the Salesperson.
Running the recordings both Forwards and Backwards

i.e. WHAT did the Sales person say to CAUSE the Customers response and

HOW did the Customer Response ENABLE the Challenger Process.

Let me share with you an Insight gathered from the recordings.

Some of the BEST Customer responses, which enable a Challenger Process,

Teach, Tailor, and Take Control were questions 
prefixed by the Salesperson with the word “HOW” in their question.

 

“How” is a very challenging question!

• HOW do you do that currently...HOW would you like it to do it in the future?
• HOW does that work...HOW should it work?
• HOW could it add more value?

Some of the WORST Customer responses were to Sales Questions prefixed with WHY.

• WHY do you do it that way?
• WHY have you not considered making Changes?
• And “any Customer Statement” then the Sales person responded WHY?

WHY, seems to put Customers into a defensive “Justification” mode,
explaining WHY they do things.

HOW, seems to put Customers into an open “Explanation” mode,
HOW things are (or How things work)

The Power of “HOW” was published in 1987 by Miller & Heiman in:
“Conceptual Selling” (P. 119), in a slightly different context.

 

Sales Challengers should be aware of HOW

it can increase their effectiveness.

Sales Challengers should be aware of WHY

they might struggle!

.

Three Great Selling Skills that really work.

 

Opening The Sale

is becoming a lost art.

During recent Sales Field Coaching
I have watched a few Rookies and some Veterans fumble the opening ball pretty badly.

We are in the Customer’s office;
the social pleasantries have been completed now it’s time to

OPEN THE SALE!

· “Right then, down to business!”

· “How’s business?”

Both are equally BAD,
even though one is a statement and the other a Question they BOTH immediately lose you control of the call.

You are now on the Customer’s Agenda (usually ill-prepared; as you had asked to meet them so they thought you were going to prepare an agenda.)

 

 

There are three evidence based techniques to OPEN THE SALE.

They are:

1. Initial Benefit Statement

2. Initial Problem Statement

3. Initial Value Statement

None of these are elevator pitches.

An elevator pitch is a general statement about
What your Capabilities are and How that may be of general interest to Suspects.
Keep Elevator pitches for chance meetings with strangers and elevator journeys.

Bob Apollo has written a useful guide to Elevator Pitches on this link 

http://tinyurl.com/74xggs3

Do NOT use Elevator Pitches in face-to-face sales calls, they DON’T work!

1. Initial Benefit Statements,
take a LIKELY need and show how your capability can fulfil it.

“Many Commodity Traders need the LOWEST POSSIBLE LATENCY (time delay) to make their trades early. We offer the lowest Latency from the City of London to the Frankfurt Market.”

“Would this be of interest to you?”

(36 words) with TWO simple ideas: The need for Speed and our ability to deliver Speed.
The Client was a the Head of Trading in a German Investment Bank

 

2. Initial Problem Statements, take a LIKELY Problem and show

how a Capability we have is being used to overcome the Problem.

“Recently we are being asked by more and more Clients

to help them REDUCE STAFF TURNOVER, without increasing Payroll costs.”

“Could we show you how we would be able to help you do this?”

(34 words) with TWO simple ideas, lower staff turnover and no increased costs.
The Client was the Head of HR in a Call-Centre.

3. Initial Value Statement,
are clear statements of DELIVERED Value in similar situations.

“Typically our Inventory Management System increases stock turns in a business like yours from 6 to 7 or even 8 times a year. This has delivered a 13% up to a 25% stock cost saving.”

“Is this something you would Value?

(40 words) with TWO simple ideas Increased Stock Turns and Cost Savings.
The Client was the Head of Merchandising at a large store.

In all three cases we are INITIATING The Sale with an Idea,

that is LIKELY to be of interest to the Client,

and then we ask for the Client’s agreement to continue.

In the Research none of the three techniques worked ALL the time.
Each should work about 4 out of 5 times.
If they don’t work then review your CONTENT,
it may not be relevant to the Client or the Client doesn’t understand it!

The total words used should not exceed 40.

The Initial Statement should contain only TWO ideas, THEIR need and YOUR capability.

OTS	First:	Then:	Finish
Initial Benefit Statement	NEED	BENEFIT (possible)	Question
Initial Problem Statement	PROBLEM	HELP (never a Solution)	Question
Initial Value Statement	CAPABILITY	RETURN (indicative)	Question

 

Proof Statements, if appropriate, can be used if less than 40 words from Client referrals, Testimonials, Editorials or Articles.

 

In Golf you may “Open for Show” (Drive), but “Close for Dough” (Putt), but

in Sales if you don’t “Open for Dough”, then you never get to “Close for Dough” either!

Don’t Trust the Trusted Advisor.

 

I have just read TAS Group’s white paper “Moving from Vendor to Trusted Advisor.”

http://www.thetasgroup.com/whitepaperdownloads/new/The_TAS_Group_White_Paper_Moving_from_Vendor_to_Trusted_Advisor.pdf

It’s well written. It is a typical piece of Marketing ‘Content’ designed to excite and to promote their “Product” TAS Deal Maker. However, it falls between two stools.
It neither excites, nor was I left gagging for a demo of the Product!

What struck me was The Story of “Salesman Matt”, published by the CEO of The TAS Group
Donal Daly’s “Select Selling Sales Field book” - about a man called Matt.

 

Daly describes Matt as: “the ‘personification’ of the Trusted Advisor.”
And, it is Daly’s detail of
what a Trusted Advisor actually DOES that disturbs me!

A lot!

“Over the 15 or so years we’ve known Matt,
he has had three different employers,
but he has always retained the same four major customers.”

They don’t say that Matt left Employers to join Competitors taking the “HIS” customer with him or not.
But, it is clear that Matt as a “Trusted Advisor” to ‘his’ Customer
should not be treated as a “Trusted Employee”.

 

 

The flaw in this ‘Trusted Advisor’ thinking is that Matt “OWNS” his Customers.

 

HE DOES NOT!

“HIS” personal ‘relationship’ is bought, and paid for, by his Employer.

Those ‘Customers’ are Customers of Matt’s Employer;
Matt simply has stewardship of the Account.

I have had the pain of Managing Salespeople like Matt;
they withhold Key Data about “their” Customers,
while spending Company money on developing “their” relationship “Trusted Advisor”.

Trusted Advisors accept both a Salary and a Bonus,
but reserve ‘their rights’ to act in their own “best interest”.

They are really ‘self-employed’ Agents,
earning their living from exploiting an Employer to fund ‘their’ Business and
their Employer’s Customer to pay a second time for ‘their’ results.

Trusted Advisors should not be trusted.

Not trusted by their Customers as their income depends upon their “Sales”, not their advice.
Not trusted by their Employers in whose interest they are paid to act, to sell,
not to give ‘Trusted Advice’ to a Customer.

Thankfully, we have some Evidence to base our Sales Decision on.
The evidence based models of The Challenger Sale,
would show that the “Trusted Advisor” is in fact part ‘lone wolf’ in ‘relationship’ clothing.

If you want to sell VALUE, then you had better know what Value Is!

Value is in the “Eye of the Customer”,

Whether we Sales and

Marketing believe it or not.

 

 

Customers assign Values to the attributes of our product or service, every Customer assigns different VALUE.

Anyone, who expresses their belief through “Gut Feel” or worse still “Experience” which Product or Service attributes are most important or Values which they ascribe are almost certainly WRONG.

If you want to Sell VALUE then you must first DISCOVER it.

 

YOU CANNOT CREATE VALUE

 

Nor, can your Sales Managers, nor your Marketing Guru, ONLY Customers perceive Value.

And, what your Customer perceives as Value
and how much Value they perceive must be DISCOVERED by you to offer back to them.

Crucially, Value is always expressed in the Customers own words –
hence it can never be written in a Marketing Brochure or Sales Playbook.
Leave the playbooks where they belong – in the playground!

Value, Real VALUE as Customer’s perceive it is first discovered,
and then it is developed by the Salesperson AND the Customer.

This interaction by Sales and Customer is called:

VALUE CONSTRUCTION

Initially, Value Construction is both soft and subjective research in the Customer’s own world, their REALITY. Using one-to-one or one-to-few meetings which identify as many attributes and ideas as possible. These Attributes are “Constructs” which having been sorted, combined as a synthesis produce a Customer Sourced VALUE PROPOSITION.

A frequent Marketing mistake is to take old Value Propositions from existing Customers and PUSH them as Value Statements to New Customers.

DON’T DO IT,
it simply does not work.

Value ‘Reviews’ with Lost Sales and Current Customers
find “their” Value NOT “True” Value,
which can only be found with the actual Customer.

Experience has given Salespeople the realisation,
that Requirement, Expectation and Want all have different Values.

Customer’s Expectations change, Value is NOT a predetermined significance.

The more difficult it is for a Customer to EVALUATE a Product/Service before purchase,
then the more important EXPLICIT VALUE becomes,
the more important Value Construction becomes!

BMAC Consultants offer Value Construction work shops

as part of their Customer Engagement Process.