Sales and Sales Management Blog

January 28, 2011

Trust on Decline Unless You’re Recognized as an Expert Study Finds

Leanne Hoagland-Smith suggested I take a look at a very interesting post by Steve Rubel that draws attention to some recent research his company, Edelman, the largest PR firm in the world, has done in the area of trust.  His findings are most interesting for sellers and small business owners even though his real target is larger corporations engaged in constructing advertising and public relations campaigns.

One of the major findings is that there has been a decline in the number of people who trust in a person “just like myself.”  Rubel goes on to give his analysis: ”I believe the reason for this is that, as more of us join social networks, there’s been devaluation in the entire concept of ‘friendship.’”

Another finding was that trust of credentialed experts increased to 70%.  According to Rubel, “This is a trend that began last year. In addition, for the first time we looked at the credibility of technical specialists inside a company. Trust in this group is off the charts (64%). This hits home the need to identify those with expertise inside a company who can engage across different channels, many of which today are digital – or will be soon.”

Very important for us in sales, the study also found that in developed countries such as the US and the UK people need to hear a message as many as NINE times—and from multiple channels to effect behavior change.  Now this study was looking at media communication, but human nature doesn’t change—if it takes multiple hearings in multiple channels for marketers to change recipient behavior, it’s logical to assume the same is true when dealing directly with prospects and clients (one of the reasons historically we’ve had to we talk to them, give them collateral material, and make formal presentations to them—multiple hearings from multiple channels).  The key here is how many times the recipient had to hear the message before behavior changed.  Nine.  That’s a lot—and most of us probably give up on a prospect long before they’ve heard our message nine times.

You can get a mini-whitepaper of the study here.

January 7, 2011

Guest Article: “The Five Steps To Successful Sales Communication,” by Nick Morgan

Filed under: Communication,Persuasion,sales,selling — Paul McCord @ 11:21 am
Tags: , ,

The Five Steps To Successful Sales Communications
By Nick Morgan

The sales world has accumulated many myths about what makes for success, especially in the tricks and techniques for communicating during the sale — a huge part of any sales process. Following are some myth-busting insights from the latest communications research. Follow these five steps and see your close rate skyrocket!

1. It’s not about your product, it’s about listening to your customer’s need.

Most salespeople know that they should listen to the client, but too few of them do, and usually not soon enough. And they don’t listen in the right way. You should be listening for the underlying messages more than the superficial ones. What emotion is the (potential) customer putting forward? Excitement about a new purchase? Fear about a new technology? Resistance to change? Resentment at the old product?

What’s memorable — and important to people — in communication is emotion; that’s what you should be listening for and responding to, not just the expressed content. If you acknowledge a client’s emotions, and figure out an appropriate way to respond to them, you’ll be his favorite salesperson in no time.

Begin by reflecting back the basic messages. “So what I hear you saying is that you’re in the market for a new flibbertigibbet, is that right?” Once you get the basics settled, then move on to the emotions. Ask questions to elicit them, like, “Were you sorry to see the old one go, or was it good riddance to bad rubbish?”

Keep it light; this is a sale, not therapy. But don’t duck from stronger emotions if they come up. Put on your therapist hat and go to work. Your goal in all this is to be able to complete the following sentence: “Customer X is in the market for a Y, and she’s Z about it.” X is the customer, Y is the product, and Z is the customer’s attitude.

You’ll have time to sell your customer on products, features, and upgrades later. For now, focus on establishing a connection. We want to feel that connection is real and strong enough to last through the after-sale (or repeat-sale) care, so don’t rush it or fake it. Connections between people get established at the surface first, but if they’re to be durable, then they must have emotional glue to hold them together.

2. It’s not about eye contact; it’s about personal space.

Of course we all know that eye contact is important to communicating — and selling. But it’s not as important as most people seem to think. The exquisite dance of eye contact between two people who are talking to one another is largely regulated by our unconscious minds. The point is to signal — along with a symphony of other gestures — when one person is done or almost done and the other person should start talking. It’s only noticed when one person indulges in too much — or too little — eye contact. Then it interferes with the regulation of the conversation.

It’s like catching the eye of a waiter. A good waiter makes it effortless; the harried or incompetent make it difficult.

More important to communication and to sales is the amount of space between the two people. We all have incredibly sensitive monitoring capabilities keeping constant track of where we — and everyone else — is in space. It’s for obvious safety reasons, it’s mostly unconscious, and it works very well.

We monitor four zones of space. Twelve feet or more is public space — and our unconscious brains don’t pay much attention to that, because that means that people are far enough away that we have time to react.

Twelve feet to four feet is social space. That’s warmer, and our brains are now paying attention, but it’s still a cool relationship. Things heat up in personal space — four feet to a foot and a half. And things get really hot in intimate space — a foot and a half to zero.

Here’s what’s important: The only significant things that happen between people happen in personal and intimate space. As a sales person, you can’t go into intimate space, usually, so here’s the takeaway — to close a sale you must get into the personal space of the client/customer. It’s why car salespeople spend so much time shaking your hand — they want to build your trust by getting into your personal space repeatedly. Good tactic, just a bit overdone.

For the rest of us, a successful sale involves the delicate art of creating trust without pushing it. Use personal space subtly and tactfully and you’ll accomplish this with style. Let the eye contact take care of itself.

3. To close a sale, you need to first establish two things with your customer: credibility and trust.

To succeed with an audience, or a customer, you need to establish credibility first and trust second. Credibility comes first, because that’s what happens when you show that you understand the customer’s problem. Trust comes second, because that’s what you establish when you solve that problem.

Failing either one, your relationship with the client or customer won’t be durable. Without credibility, you’ll find that your customer will be likely to go elsewhere in search of expertise, even if they trust you as a human being. Do you really understand my paint color issues? Without trust, a client will be tempted to mine you for expertise, and then go make the ultimate purchase from someone else. Will you really follow through on the after-sale?

How do you establish these two key aspects of a relationship? Begin by listening to the customer’s problem. Show that you understand it as well or better than the client does, and you’ll create credibility. She gets that I loathe chartreuse! Finally, someone who knows something about paint!

Then, show how you can solve that problem. You’ll forge a strong bond of trust with that client when you take away the point of pain that sent them to the marketplace in the first place. That shade of lavender will be perfect for the room.

Credibility and trust. The two key ingredients for a strong, enduring relationship with a customer.

4. Closing a sale is all about understanding the customer’s decision-making process.

Where are your clients or customers when they get in touch with you?

Are they happy with the product they have, but want to be reassured that they made the right decision?

Or are they in the throes of the problem, uncertain of which way to go, looking for answers?

Or have they already decided on a course of action, and are basically looking for you to take the order?

Each of these states of mind requires very different handling; it’s axiomatic that you need to understand your customers’ state of mind clearly in order to be able to talk to them effectively.

Customers in the first stages of decision-making just need help with framing the problem. Less information is better. Just give them a statistic, or a very brief verbal portrait of what the future might look like. Do you realize that the 2011 version of the Fabulator uses half the energy of its predecessors?

Customers deep in the problem want information — comparisons, data, detail. This stage is where all that product or service knowledge you have is actually useful. Don’t go to the point of eyes glazing over, but do satisfy the urge for information. Both models will get the job done, but the Fabulator-B is smaller and quieter, not to mention faster operating.

And clients who have already made up their mind will appreciate some visualizing of the benefits, but very little else. They don’t want to be slowed down, so don’t make it hard for them to buy. You’ve made a great choice. The Fabulator Supreme will take care of all your issues and also make you a spectacular cup of morning coffee. Now let’s get that paperwork out of the way.

That’s why it’s so important to listen to your customers before you launch into any kind of explanation. If you don’t know where they are, you can’t point them to where they should be going.

5. Involve your customer with small steps to get them comfortable to take the bigger ones.

It’s imperative that you don’t do all the work in the sales process. If you keep your clients passive, don’t be surprised when it’s hard for them to suddenly get active and agree to close the sale. Too many salespeople think that it’s all up to them. But the real secret is to get the customer working on the deal too. Begin with little steps, steps that don’t involve big commitments, and then work up from there.

In the 1987 comedy Tin Men, 1960s-era aluminum siding salesman Richard Dreyfuss initiates a younger protégé into the magical world of sales. In one call on a housewife, Dreyfuss drops a dollar bill on the floor, and allows the housewife to pick it up for him. He explains to the initiate that he can tell whether or not he’s going to get a sale with this trick. If the housewife picks up the bill, she’s a nice person and can be talked into aluminum siding. If she doesn’t, she won’t be won over.

The psychology is right, but the execution is wrong. Dreyfuss should have been seeking to create a real relationship with his customers, rather than just exploiting them. And by getting them involved, not in sneaky tests of their malleability, but in genuine steps along the road to the sale, he would have increased the amount of aluminum siding gracing the houses of Baltimore.

Take your clients from passive to active. Involve them in the process. Don’t do all the work.

Dr. Nick Morgan is one of America’s top communication theorists and coaches. In his blog he covers modern communications from a variety of angles, including the latest developments in communication research, the basic principles and rules of good communication, and the good and bad speakers of the day. His passion is to connect the latest brain research with timeless insights into persuasive speaking and writing in order to further our understanding of how people connect with one another.

December 8, 2009

It’s Time to Leave Orwellian Selling Behind

What words do you use to describe yourself and your products and services?  Are there words you intentionally try to keep out the mind of your prospects or clients?  Do you use euphemisms instead of plain English when making a presentation in order to try to elicit a particular feeling or response from your prospect?

As salespeople, we’ve been taught to frame our conversations and presentations in ways that lead our prospects and clients to the conclusions and decisions we wish them to arrive at.  In order to do this, we are advised by some to refrain from using certain words that may evoke a negative reaction—or to use words that will evoke a negative reaction, depending on what we want our prospect to think or feel.

Much of this advice is based on the idea that if we control the conversation we control the prospect’s attitude, thinking, and ultimately, their decision making process.  In other words, by carefully controlling the words used in the conversation, we can control the prospect’s thought process. 

Some sales trainers even go so far as to recommend we not bring up potential negatives—don’t address a non-existent objection so as not to plant a potential objection in the prospect’s mind.  Or if an objection is raised, deflect it and return to the presentation or closing the sale.  Gloss over the objection and it will go away.    

It seems George Orwell has become the director of sales training.  Orwell’s Newspeak is now the new “sales speak.”  No longer is communicating with a prospect as a rational human sufficient; now we are exhorted to in essence treat them as nothing more than a computer, inputting only the data we want them to compute–as though if we don’t give them the words, they won’t be able to think the thoughts we don’t want them to think.

Orwell believed that words are the keys to thought.  If the words don’t exist to communicate a particular thought or concept, it isn’t possible to think the thought or concept.  Consequently, if you can control the words someone has available to them, you can control not only what they think, but eventually how they act.  Orwell later repudiated the concept.  Unfortunately, a version of this concept has become quite popular in some areas of sales training.

Like Orwell’s world of 1984, some view the world of sales as an arena where words are not simply powerful in influencing thought and behavior; they are the creators of thought and behavior.  If we don’t say it, the prospect will never think it.  If we can frame it using the words we want, the prospect will never think of their own words to describe it or question it.

Rather than trying to communicate, we are told by some that if we create the conversation we wish to have with the prospect, the prospect will unknowingly go along with us.  If only we learn the right words and phrases to use—and the words and phrases to avoid, we can direct the prospect to the ”proper” decision.  Selling in this view is simply an exercise in rhetoric.

So, we learn the right words and the right phrases; we engage the prospect by making sure we eliminate any words that might evoke thoughts, feeling, or concepts we don’t want them to have; and we ask for the order.  Instead of the automatic ‘yes’ we expected, we hear a resounding ‘no.’

What could possibly have gone wrong?  We did everything right.  We used the right words; we avoided the wrong ones.  We were careful to implant the ideas, concepts, and emotions we wanted the prospect to have.  We executed perfectly.  And they said no.  How could this possibly have happened?

Could it be that they did the unthinkable–they actually thought words and concepts that we worked diligently to keep out of their head?  Despite our best efforts to implant the right “data,”  when we pushed the “enter” button they exercised independent thought and rejected our attempt to manipulate their decision making process?

Is it possible the words we use aren’t as important as the communication and connection we make with the prospect?  Is it possible that our attempt to finesse the prospect by trying to direct their thinking through the careful manipulation of language isn’t as effective as we have been lead to believe?  Is it possible that less rhetoric and more communication would serve us better?  Could it be that more listening, more understanding, and more straight answers to prospect questions could prompt more trust in the prospect?

Maybe it is time to rethink the Newspeak of selling and learn instead to listen, to answer honestly and forthrightly, to drop the euphemisms and begin once again communicating with prospects and clients using plain English.  Maybe rather than the belief that the words we use will create the reality we want in the prospect, we should seek try to understand the prospect’s needs, wants, and issues and try to present our best solutions to those needs and wants as honestly and forthrightly as possible. 

The Orwellian experiment has been tried—and failed.  Orwell recognized the failure of the concept before he died.  Certainly, many trainers in the areas of communication and persuasion recognize the legitimate uses of rhetoric in the sales process.  Yet, there are still large numbers of trainers selling the Orwellian concept of easy sales through language manipulation and its false promise of controlling prospect thought and behavior.  There is a difference between the legitimate use of persuasive influence and the intent to deviously manipulation. 

We are selling to independent beings who exercise their capacity to think autonomously of our attempts to stage-manage their actions and decisions.  The sooner we recognize their independence, the sooner we can get back to creating relationships built on trust, not on linguistic manipulation.

November 25, 2009

Book Review: Own the Room: Business Presentations that Persuade, Engage, & Get Results

Put a classically trained actor, an award winning director, and a clinical psychologist together and what do you get?  Why a book that should be on every seller’s bookshelf, of course.

David Booth, Deborah Shames, and Peter Desberg, the authors of Own the Room: Business Presentations that Persuade, Engage, & Get Results (McGraw Hill: 2010), are not the typical authors you’ll run across when looking for a book that can help you increase your sales and income.  I wouldn’t be surprised to learn that none of the authors can define the Puppy Dog Close, write a top notch cold calling script, or coach you through the negotiation process with a tough customer. 

They don’t know sales; they know people, they know presentation, they know how to connect with others.  They know how to use words, body language, voice, props, and silence—all the things that we sellers use every day, usually with little grace and less control—to gain and keep someone’s attention.  More importantly, they know how to turn attention into genuine interest. 

Own the Room isn’t going to close deals for you, but it is going to give you the opportunity to close deals by showing you how to really engage your prospects and make presentations that will bring the prospect along with you; and frankly, you can’t sell if your prospect has turned you off and is daydreaming about what they’re going to have for lunch—or the relief they’d feel if they could throw you and your damned PowerPoint presentation out the window.

From your opening sentence—you’ve got 30 to 60 seconds to grab (or lose) your audience’s attention—to your closing remarks, Own the Room gives solid, tested and proven guidance.  Guidance is what you  get in Own the Room, not just tips and tricks, and because the authors are giving guidance and I’m dense, I sometimes wished they’d been more concrete and said “Thou shalt do this in exactly this way” instead of giving an example of the concept and leaving the rest up to me.   

Booth, Shames, and Desberg take on all aspects of the presentation from preparation to dealing with stage fright to using PowerPoint to using physical movement to make your point to how to make effective team presentations.  The book seeks to be comprehensive in scope without smothering you with needless detail.

Whether your make presentations to a single potential buyer or to a room of thousands at a formal dinner, you’ll walk away from Own the Room with some very practical guidance that will make your presentations more effective—or very likely, transform them altogether.  Either way, you’ll sell more of whatever you’re selling.

October 30, 2009

Guest Article: “Ten Secrets of Persuasion,” by Nido Qubein

Filed under: Closing Sales,Handling questions,Persuasion,sales,selling — Paul McCord @ 10:14 am
Tags: , ,

Ten Secrets of Persuasion
by Nido Qubein

Do you want to boost your selling power?  Then, add power to your persuasion.

But how can you add power to our persuasion?  How can you become more effective at persuading your customers to buy?

Let’s look at the way the skilled professionals put power into their ability to persuade.

Let me share with you ten secrets I’ve learned from some of the most persuasive salespeople in America — ten ways to add power to your persuasion.  I call them the 10 P’s of persuasion.

(1) Be positive.

One of the most successful insurance salesmen in America is a country fellow from South Georgia, who says, “You can no more sell something you don’t believe in, than you can come back from some place you ain’t been.”

Successful salespeople are positive people.

They have positive mental attitudes about themselves, the companies they represent, the products or services they’re selling, the prospects they’re attempting to persuade, the country they live in.  They’re positive about everything.

Enthusiasm is contagious.  When you’re excited about life and the work you’re doing, you can persuade with power, because you can get other people excited.

(2) Prospect. 

Successful salespeople have learned to direct their persuasive power toward people who have the resources to buy and have good reasons to buy what they are selling.

Professional salespeople pinpoint prospects who are likely to provide long-term profitability.  They analyze the possibilities for cross-selling.  They know that it takes an average of three calls to cross-sell an existing customer but seven to sell to a new customer.

In short, the powerful persuader targets all efforts at the person who has the resources, the motivation, and the authority to buy, and the potential for profitable repeat sales.

(3) Prepare. 

Red Motley, who started Parade magazine, said that the average salesperson will work like crazy to get an appointment, then blow the opportunity with a poor presentation after the decision-maker has agreed to the interview.

You don’t make sales to busy people by rambling on for 40 minutes about features and benefits.  Usually, after such disjointed presentations, neither the salesperson nor the prospect can summarize what’s just been said. 

Professional salespeople always do their homework.  They know that the better they’re prepared, the more persuasive they’ll be when they walk in to make a presentation. 

They research to find out everything they need to know about the prospect.  They plan what they will show and what they will say.  And they practice, practice, practice.
 
(4) Perform. 

Amateur salespeople complain furiously when they are beaten out by a competitor.  How could that customer buy that overpriced, poor-quality product? He must be an idiot!

The customer was no idiot.  The complainer was just outperformed by a more competitive salesperson. 

Remember: People don’t buy; they’re sold.  In fact, nothing is ever bought.  Everything has to be sold.  If you don’t make a strong presentation, you can’t persuade your prospect to buy.

Powerful persuaders are like stage actors playing to a full house.  They are artists at making their presentations.  They’re entertaining and informative to watch and hear.

To succeed in business, you have to make every second of every minute of your “action time” count.

(5) Be perceptive. 

Powerful persuaders are alert to everything that happens during a sales interview. 

They are not preoccupied with personal problems, with airline schedules, or even with the next call they are going to make.  They know that reaching a sales goal always begins with making the sale at hand.

Powerful persuaders tune into their prospects and look for the motivating forces in the life of each.  Once they discover that motivating force, they play to the motivation.

To add power to your persuasion, learn to read your prospects and to discover the motivations they have to buy or not to buy.

(6) Probe.

Average salespeople do a lot of talking.  They can give you a 30-minute speech on any subject you want to name.

That’s why silence is so threatening to most salespeople.  The instant a prospect pauses to take a breath, the amateur will jump in with a sales spiel, just to break the silence.

But powerful persuaders use questions to diagnose the needs and concerns of a prospect much as a skilled physician uses them to diagnose the problems of a patient.

They become masters at asking penetrating questions, and they use those questions to draw prospects into the selling process.
 
(7) Personalize.

The most powerful word in selling is you.

The emphasis on you marks the difference between manipulative and non-manipulative selling.

Manipulative selling is self-centered.  It focuses on what the salesperson wants and needs.

Non-manipulative selling is client-centered.  It focuses on the needs and desires of the prospect.

A person who is looking at the business proposition you are offering wants to know just one thing: What’s in it for me?

If you want to add power to your persuasion, personalize every part of your presentation to meet your prospect’s own personal needs and wants.

(8) Please. 

Powerful persuaders seek to close sales by pleasing their clients.  When prospects become excited about the idea of owning what you’re selling, they become customers.

Professional salespeople know that they can’t force their prospects to buy.  Their challenge is to make them want to buy.  So they seek to please them in so many ways that they create the desire to buy.

(9) Prove.

Salespeople with selling savvy don’t make statements they can’t back up with facts. 

And they don’t expect their clients to accept at face value everything they say.  They are always prepared to prove every claim they make — to back up those claims with hard data, with test results, and with performance records.

One of the best ways to persuade by proving is to give proof statements from people who are happy with your products or services.  Third-party endorsements go a long way in building credibility for your claims, and for your products.

Facts and testimonials are very persuasive.  Learn to use them, and become a powerful persuader.

(10) Persist.

Call on good prospects as many times as it takes to sell them.  About 80% of sales are made on the fifth call or later.  Yet studies have shown that:

·  50% of America’s salespeople call on a prospect one time, and quit.
·  18% call on a prospect twice, and give up.
·  7% call three times, and call it quits.
·  5% call on a prospect four times before quitting.
·  Only 20% call on a prospect five or more times before they quit.

It’s that 20% who close 80% of the sales in America.

You don’t have to become a dynamic personality to sell.  You don’t have to put pressure on people, or out-talk people to sell. 

The most effective thing you can do is to apply your own selling savvy to these ten ways to add strength to your persuasion.

Learn how to persuade more effectively and you will boost your selling power.

Nido Qubein is president of High Point University, an accredited undergraduate and graduate institution with 3,000 students from 50 countries and 44 states. He has written numerous books and recorded scores of audio and video learning programs including a bestseller on effective communication published by Nightingale-Conant and Berkley. Qubein’s business  savvy led him to help start a bank in 1986 and today he serves on the board and executive committee of a Fortune 500 financial corporation with 115 billion-dollars in assets and 25,000 employees. He is also chairman of Great Harvest Bread Company with 218 stores in 42 states. He serves on the boards of several national organizations including the La-Z-Boy Corporation, one of the world’s largest and most recognized furniture retailers. Learn more about Nido Qubein at www.nidoqubein.com

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