Sales and Sales Management Blog

December 23, 2010

Guest Article: “How to Differentiate Yourself When You’re Selling,” by Ian Brodie

Filed under: marketing,sales,selling,small business — Paul McCord @ 9:52 am
Tags: , ,

How To Differentiate Yourself When You’re Selling
by Ian Brodie

We talk a lot about differentiation in marketing. Differentiation is something that sets us apart. Unique attributes of our services that are valued by our clients but that can’t be easily reproduced by our competitors.

At it’s simplest level, it could be a service we can deliver that no one else can. Or perhaps we specialise in working with a particular sector so we have more experience and knowledge in that field.

Differentiation in marketing can make us the obvious “go to” person for a client who recognises they need our unique skills and capabilities.

We talk much less about differentiation in selling however. But it’s just as important.

If we’re face to face with a client trying to persuade them to choose us over a competitor then unless we’re different in some way, the client will end up choosing on price.

Differentiation at this level is hard. By the time a client is talking to us face to face they’ve already discarded the firms and individuals who aren’t specialised in their sector (if that’s important to them) or who don’t deliver the services they’re looking for.

At this stage, the short list almost always comprises firms who can perfectly well help them address their problems or opportunities (or at least claim they can). They might do it in a different way to us. But at the end of the day, it’s highly likely that they’ll claim they can achieve the same end results.

If a client says they want to reduce their indirect procurement costs by 20% – all the consultants pitching to them will say that’s what they’ll deliver.

If a client says they want a smooth divorce that doesn’t impact the kids, all the lawyers will say that’s what they’ll deliver.

If a client says they want their accounts done quickly and efficiently with minimum hassle – then pretty much every accountant they speak to will say that’s exactly what they’ll do.

And if everyone is saying they’ll do the same thing – then the only thing that sets them apart in the client’s mind is their price, right?

That’s not good. Certainly not if, like me, you price at a premium because you believe you deliver a premium service.

So when it comes down to the crunch. When you’re sitting 1-1 with a client and discussing what you’ll do for them, how on earth do you differentiate yourself?

Well, the first thing you need to accept is that simply identifying the client’s needs and then telling them you’ll address them isn’t enough. Everyone will do that.

Here are some ways you can differentiate yourself in these competitive selling situations:

The “Safe Pair of Hands” Strategy

You may all promise you’ll deliver what the client wants. But from the client’s perspective, there can be major differences in how confident they are that you’ll make good on that promise. If you’re able to prove through testimonials, references, or just how much you seem to understand their situation, then they’ll feel more confident that you’ll be able to deliver what they want. And so they’ll pick you rather than selecting on price.

The “Relationship” Strategy

People choose to work with people they like and trust. They won’t pick you if they don’t think you can do the job. But once you’ve proven that, then they’ll almost always choose someone they like and feel they can partner with over someone they don’t.

The “Change the Game” Strategy

When you’re interacting with a potential client and talking about their needs – if you can identify problems or opportunities that they haven’t thought of themselves – then you can mark yourself out as being different. The quality of your diagnosis immediately marks you out as being an expert – and (rather fortuitously) can prompt the client to question the abilities of your competitors who didn’t highlight these new ideas.

It can be a risky strategy if the client has fixed ideas about what they need and doesn’t want to be challenged. But it can be a particularly powerful way of pulling the rug from under entrenched incumbents who have better relationships than you and are seen as safer pairs of hands.

What’s Your Strategy?

These aren’t the only strategies you can use in sales situations – but they’re good ones. Ones which I’ve seen work time and time again.

Whenever you’re in a competitive selling situation you absolutely must have a differentiation strategy in place. Just diagnosing the client’s needs and saying you’ll meet them is not enough. That’s the baseline – everyone will do that.

Unless you want to end up competing on price you must have a compelling reason why they should choose you. It might be different for every client – but you need one for every client. And that means in every competitive sales situation you’ve got to put the time and effort into developing it.

So for those upcomings bids, pitches and sales meetings you’ve got: what’s your strategy?

Ian Brodie has been helping some of the world’s leading organizations with their marketing and sales challenges for over 16 years. More importantly, he’s “walked the talk” and sold multi-million dollar consulting engagements across multiple countries and cultures. For more information, visit his blog

June 15, 2009

Boost Your Sales series: “Laying the Foundation for Referrals,” by Ian Brodie

It’s Referrals and Word of Mouth week at the Boost Your Sales blog series. 

We start off with Ian Brodie’s advice on how to prepare your clients to give quality referrals

Tuesday it’s Bill Cates with “Make Sure You Get One Great Referral”

Wednesday Joanne Black is here with “There’s No Such Thing as a Warm Sales Call”

Thursday Dr. Martin Russell discusses “Marketing Is What You Do When Your Product Is No Good”

and finally, on Friday I up with “Your Connections are Your Key to Your Success”

 

Stay tuned in next week as a great list of experts—Jeb Blount, Nigel Edelshain, Cindy King and Ardath Albee give great guidance on “Prospecting and Social Media”

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Laying the Foundations for Referrals
by Ian Brodie

A lot of what’s been written on Referrals over the years has been on the practical strategies and methods for getting them. And there’s no better source for the best thinking on these topics than Paul’s book: Creating a Million Dollar a Year Sales Income: Sales Success through Client Referrals (Wiley: 2007).

But I want to take a slightly different slant in this post. Assuming you know how to prepare and ask your clients and business partners for referrals in an effective way – how can you increase your chances of a strong referral occuring?

I’m going to cover three topics: 1) What motivates people to give referrals in the first place? 2) How you can help your referrers get better at giving referrals and 3) How to attract referrals without having to ask for them.

Motivating Referrers
What motivates someone to actually give a referral? What’s in it for them?

In my experience across multiple professions, I’ve found that clients and business partners are actually very generous when it comes to giving referrals. Their main concern is less one of self interest, and more one of helping their own clients, colleagues and friends.

But what they are concerned about is risk. They will want to be absolutely sure you will do a good job before they refer you to people whose relationship they value. They simply can’t afford to take the risk of you doing a bad job and their reputation and relationship suffering.

Your current and recent clients should have the confidence in you to know this won’t happen. But for business partners (and also perhaps for ex-clients from a while back) you will need to invest time to make sure they are fully confident in your capabilities and your intent to do a great job for whoever they refer you to. And you must be able to demonstrate this – not just claim it. Far better to invite a referral partner to a seminar you are running where you showcase your expertise than to simply tell them you have it.

The other risk for business partners is that you may attempt to “steal” the relationship from them (perhaps unintentionally in some cases). It’s advisable to set out clearly how you would proceed should they refer you – and emphasize that you would ensure they retained the primary relationship.

After these risks have been dealt with, you can increase the urgency and dedication with which your referral partners go about referring you. The prospect of reciprocation (if genuine) can obviously help. But sometimes referral relationships are by nature one-sided.  Accountants, in particular, are often able to give more referrals to lawyers than they get – simply by nature of the number of long-term business relationships they have. So making sure you are “going the extra mile” and visibly doing whatever you can to get high quality referrals back to them helps. In addition, you may be able to help them in other ways: introducing them to wider circles of contacts, giving them specialist advice on their own affairs, allowing them to showcase their expertise as guest presenters at your events.

Helping Your Referrers Get Better at Giving Referrals
In some cases your contacts would like to give referrals to you – but are simply not good at spotting referral situations and making the initial contact. Sometimes they just need a little help.

This is particularly important when the need for your services is not immediately apparent from outside. Companies contemplating layoffs and in need of employment advice don’t often advertise the fact in advance, for example. A close confidante may be privy to discussions that would alert them to these sorts of needs – but often most people don’t see the signs until it’s too late to act.

One method to help referrers identify situations where your services would be of value is to educate them about the externally visible “trigger events” which cause a need for your services. An obvious example would be the hiring of a new general counsel – often presaging a change in retained law firm. News of a potential new product may break well in advance of hiring a marketing consultant to help with the launch.

By thinking through (preferably with the aid of some of your clients themselves) the events that triggered the need for your services you can compile a simple list of “things to look for” which can help you and your referrers steal a march on your competitors.

In other situations, it may be that the referrer can spot the need – but struggles to find the words to discuss it with the potential client. In the case of divorce law for example, it may be very clear to your referral partner that someone needs professional advice – but they may be too embarrassed or uncomfortable to broach the subject with the person they are trying to help.

In this case, you need to help them by firstly educating them about the right time to intervene in the person’s best interest – and giving them some examples of words they can use to gently introduce the subject without the risk of damaging their relationship.

Becoming a “Referral Magnet” – How to Attract Referrals Without needing to Ask for Them.
Most of our discussion so far has focused on how to get more and better “outbound referrals”. In other words, referrals where the referrer reaches out to the prospect to recommend you.

However, the same lessons apply to “inbound referrals” – where the prospect themselves contact your referrer and ask for a recommendation. These types of referral can be incredibly valuable – as they are to highly qualified prospects – ones who are essentially saying “I have a need and I need help now”. Being able to attract these sorts of referrals will pay huge dividends.

The challenge here is that since needs for many products and services arise fairly infrequently, by the time your referrer is contacted by the prospect you won’t necessarily be “front of mind”. So they may not give you a particularly strong referral. After all, how many other lawyers does that accountant you count as a partner know and refer to? How many other printers does that consultant you met at the chamber of commerce pass referrals to already? Usually quite a few.

In order to get these referrals – often the most valuable ones – you must be front of mind with your referral partners when they receive the call.

Now, if they are a current or recent client you have done great work for then the chances are that you will be the only one referred. Or if you are part of a “leads group” then members of that group will automatically refer to you. But these situations are in the minority for most referral situations for most people. In order to maximize the number of referrals you get, you need a wide network of high potential referral partners, and you must be front of mind with them despite them not being recent clients or part of a “club” with you.

How do you do this? In the same way you stay front of mind with high potential clients. You invest in and nurture the relationship. You may not be able to work with them daily or meet them every week – but you can keep in touch and you can add value to them with every interaction.

It’s exactly the approach you would take with a high potential client: you would log them on your contact management system. You would invest in the relationship to secure future business. You would schedule regular events with them, send them clippings or news items of interest, proactively offer advice and guidance for free. Doing the same thing with high potential referral partners can have just as high a payoff. If they are regularly being contacted to give recommendations in your field then you must make sure you have a plan to stay front of mind with them.

You can’t do this with all your potential referrers – but you should be able to identify who are the ones with the most potential to refer business to you and to focus on them.

At minimum, you should be reviewing the list of your top referral sources weekly and your next tier monthly, in order to keep them front of mind for you and ensure that during the week you are awake to possible ideas and resources that might help them. Connect with them on Linkedin and monitor their status updates. Track them and their company via Google Alerts or other tracking methods.  Make sure you keep in touch and maintain your relationship by phone and face to face, not just by email.

Above all, if you are genuinely interested and concerned for them as human beings, then the right sort of nurturing behavior will follow.

Ian Brodie works with professional service firms – consultants, lawyers, accountants, surveyors, architects and coaches – to help them attract more clients and win more new business.  Ian has just launched the Rainmaker Network which is a worldwide free to join network focused on helping partners, marketers and business developers in Professional Service Firms to attract new clients and win new business.

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February 13, 2009

Guest Article: “What’s Your Backstory,” by Ian Brodie

Filed under: prospecting,sales,selling — Paul McCord @ 11:47 am
Tags: , , ,

What’s Your Backstory?
By Ian Brodie

One of the most common pieces of “wisdom” we’re repeatedly told in marketing and sales is that since our clients are tuned in to WII FM – What’s In it For Me we need to adjust our messages and our interactions with them accordingly. In other words everything we say about ourselves must be geared to how they can benefit by working with us.

And to a large degree this is true. Our “elevator speech” or “audio logo” must be set in client-focused terms to create empathy and interest – or they will simply switch off. However, it’s not the full story.

Our clients and prospects are not completely self-centered creatures. They are normal human beings. As the old saying goes: people buy from people – and we are all inherently interested in other people’s stories. It helps to humanize and cement relationships.  Think of the strongest relationships you have with your best clients: are they purely business oriented? Or, in fact, haven’t they transcended the “what’s in it for me” and moved to a level where you are genuinely interested in, and care about the interests of the other party?

So in addition to the business-focused elements of your elevator speech and the initial discussions you have with people at networking events – you must be able to move on and open up about yourself in an interesting way which lays the foundation for a deeper human relationship with your prospective client.

One of the best ways to do this is with a compelling backstory. In fact a frequent follow-up question in initial meetings is “so how did you get here?” or “what’s your story”.

In the world of literature, TV and the movies, the backstory is the history of the characters. How they got to where they are today. It gives logic and legitimacy to their thinking and their actions. Helen is bristly and reluctant to form close relationships because of a painful divorce she went through. John is lacking in self-confidence because he was always told he was no good as a child.

In similar manner, a well-constructed and engagingly told backstory can really help further your relationships on both a business and personal front:

  • Your personal backstory humanizes you – it helps people see inside to what motivates you and why you do the things you do and why you are the way you are.
  • It provides mental hooks for people to remember you by. “You’re the guy who gave up the big corporate job to focus on helping local businesses”, “Ah yes, you’re the lady who was thrown in at the deep end and learnt her selling skills the hard way.”
  • Most importantly, it provides evidence and credibility to back up the claims you make about your business. Did you spend 5 years in Japan learning their quality methods? Perhaps you witnessed the pain of your parents’ messy divorce and were motivated to become a divorce lawyer who did things a better way.

Used in this latter way, your backstory can stand alongside testimonials and qualifications to “prove” you are highly competent at what you do. And it feels so much less “salesy” and more natural than trotting out customer quotes or a string of letters.

Of course, it goes without saying that your backstory must be true. But unless you think about it and prepare it carefully you won’t be able to articulate it well and link it to the key selling messages you are trying to get across. You need to look at your value proposition or USP and think through: what is it I have done that makes me uniquely qualified to do this? Then find a way of articulating this in your backstory.

My own personal backstory focuses on how I have both consulted for 15 years in strategy, sales and marketing to some of the worlds leading firms – and have been in the trenches myself selling professional services (in my case consulting projects). It tells of how I learnt the hard way through mistakes – so it’s a relatively self-deprecating backstory and doesn’t sound like I’m showing off. The key is that it tells potential clients in a subtle and understated way that not only have I expertise from consulting, but I have been in their position and “walked the talk” and sold professional services successfully myself.

One of the best backstories I’ve heard is from a local accountant (Jesse Oldfield of Lymm) who, before returning to accounting, ran a number of small businesses as MD himself. Without shouting it out loud, this tells prospective clients that he really knows what they’re going through running their own business. Any accountant can claim to be able to give solid business advice to their clients – but Jesse can do so with real credibility because of his backstory.

You won’t use your backstory every time you meet someone. But you will be asked about your history or “how you got here” surprisingly frequently. And if you’ve prepared an interesting backstory, you will be able to cement their perception of your credbility – while enhancing your personal human relationship with them.

Ian Brodie is Managing Director of Lighthouse Business Consulting – a business advisory and management consultancy firm based in the North West of England specialised in helping clients grow their businesses through improvements in their strategy and sales approaches.

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