Sales and Sales Management Blog

July 21, 2011

Questioning the Value of Questions in the Sales Process

I had the honor yesterday of participating in a roundtable discussion organized and presented by Focus.com about the use of questions in the sales process. Moderated by Andy Rudin of Outside Technologies, the panel consisted of some outstanding sales minds:  Dave Brock of Partners in Excellence, Jack Malcolm of Falcon Performance Group, Dan Waldschmidt of Waldschmidt/Arp, and finally, myself, of course.

Our discussion addressed some of the most fundamental myths and misconceptions sellers have about the use of questions in sales.  In fact, we deconstructed the whole idea of questioning as the central aspect of selling.

By all means, all involved agreed that questions are an essential and important aspect of information gathering and rapport building.  Questions help open prospects up so we can uncover new information and help get to core issues and concerns.  Questions can help focus both ourselves and our prospects to dig deeper and look more closely at what’s really going on in a company.

But in the end, questions are only a tool.  They aren’t the be all and end all of our interaction with prospects and clients.

The problem is that some sellers have walked away from their training on questioning feeling that questions are the secret key to success or that in order to be effective sellers they must be ever conscious of asking the “right” question or the “right” kind of question.

That’s simply bull.

Our object with a prospect or client isn’t to ask questions, even though as mentioned above, questions are tremendous tools.  Our object with prospects and clients has to be to communicate—to connect with them in a meaningful way that helps us understand who they are as well as their problems, needs, and wants.

Communication demands far more than an ability to ask questions.  It requires that, as Dan Waldschmidt pointed out, we care—that we care about the prospect, about the issues, about our reasons for doing what we do, about who we are and who we’re dealing with.

Communication demands that we connect on both an intellectual and emotional level.  Communication demands that we go beyond the gathering of information and actually touch the other person’s humanity (as well as our own).

Yes, we did talk about questions and their importance.  But in the end, it was about one human connecting with another, not about how to ask the perfect question.

The real question ends up being why are you asking questions?  Is it to connect and build a bridge to help solve issues for a fellow human—or to get into someone’s wallet?  That, sellers, is the first question that must be answered.

February 22, 2011

Process: Can Success Really Be Just Mechanical?

Today you hear some version of the same message almost everywhere you turn:

“What makes a company successful is process . . . . [successful companies] find a formula that works.”

“You simply cannot be successful in complex sales unless you have a solid process.  A proven process is more important than anything and everything else.”

“If you want to be successful, you must concentrate on developing an effective sales process that produces the results you want because that IS the secret of success.”

“Top producers have a repeatable process.  Everyone else has only unfounded hope.”

All of the above were picked from things I have read in just the past week.  And these are far from the only ones, I could go on and on with statements in the same vein from recent articles and forum discussions. 

Process is the concept du jour. 

Process=Success

No process=Fail 

Everyone’s on the bandwagon promoting the current hot topic.

Now, don’t me wrong, I’m a firm believer in process.  I have a process for almost everything I do and I’m a strong promoter of process.  I’ve written numerous articles and two books that are centered on process.  I firmly believe that a proven, effective, repeatable process is one of the foundations to a successful sales career or a successful business.

I don’t, however, think it is the most important ingredient or the one that determines whether or not one is successful.

Important, yes.  Absolutely, positively, 100% critical?  No, not really.

Success in sales or business is far more than simply turning the right mechanical knobs or punching the right buttons.

Don’t we wish it were that easy?  Simply create a formula that seems to work and success is guaranteed.

We can all think of companies who have a formula that works and appears to be the cornerstone of their success.  Let’s take three examples that we all know: McDonald’s, Disney, and Kentucky Fried Chicken.  I’m taking these because they are familiar to everyone and the real reason for their success is easy to identify.  We could take examples from any industry and any selling situation, but these three are very simple, straightforward examples of where the cornerstone of success for them lay.  In each instance their business formula helped, but it wasn’t the thing that exploded these companies.

What made McDonald’s, McDonald’s?  Was it Ronald or the Hamburglar?  Not at all.  Was it the machine like efficiency demanded of each franchise and the requirement that the food taste exactly the same no matter what franchise one visited?  No, that came later. 

McDonald’s success lay in the heart and soul of Ray Kroc.  Kroc was a never tiring evangelist for McDonald’s.  He lived and breathed McDonald’s.  In a sense, Kroc forced McDonald’s success because he wouldn’t settle for anything less. 

McDonald’s successful formula was built and perfected over time.  Kroc’s drive and determination gave him the time needed to refine and improve the system that the original founders of the McDonald’s concept had begun to devise.  It took Kroc three years and a bunch of money to develop his successful process—a process that is still being perfected today.  If Ray Kroc hadn’t had the passion to demand success, there wouldn’t be a McDonald’s, at least not as we know it today.

In the same manner, Mickey, Minnie, and Pluto didn’t create Disney.  Disney was more a creation of Walt Disney’s drive and passion than Mickey’s popularity.  Long before Mickey was born, Walt had to overcome lost contracts, a former buyer of his cartoons stealing his entire staff of artists save one and his at that time one original cartoon character, Oswald the Lucky Rabbit.  Oswald might have been lucky, but Walt wasn’t.  Most would have folded their tent and given up after having everything they’d built torn down—especially by someone they had worked with and trusted.

But like Kroc, Walt had passion and unlimited drive.  He believed in himself and he believed that success was right around the corner—if he just continued to sell his passion.  His dedication and drive paid off.  Shortly after losing his staff and Oswald, he found Mickey.  Although Mickey was a success, he still wasn’t the success formula that “made” Disney—Mickey gave Walt the money and time necessary to find his ultimate mega success formula which was turning cartoons into feature length animated movies and the spinoffs from them that continue to this day.

Likewise, Colonel Harland Sanders and Kentucky Fried Chicken’s success isn’t due to a business formula but rather to a man who believed so passionately in his product and his vision that retired and broke, he hit the road to sell his chicken formula to cafes and restaurants across the country—and his share if they used his secret recipe?  A nickel for every chicken they sold using it.  It’s hard to make a living at a nickel a chicken—even in 1955.

Process is a tool for a salesperson just as a paintbrush is a tool for an artist.  Put a paintbrush in the hands of an artist with the passion and drive of a Leonardo and it becomes an instrument to create beauty; put it in the hands of someone one who is only looking to make a buck and it is nothing more than a tool used to paint a wall.

The same is true with sales.  Put an effective process in the hands of someone with the passion and drive of Harland Sanders and it becomes an instrument for changing lives; put it in the hands of someone who is disconnected and only interested in making money and it becomes nothing more than a way to make a sale every once in awhile.

By all means, find a predictable and effective process; it will help you make sales.  If you want success, you must marry that process to deep, heartfelt passion and drive because whether we like it or not, success isn’t mechanical; success is nothing more than the outward expression of one’s passion, drive, and vision.

August 26, 2010

Guest Article: “So you Say You Have a Sales Process?”, by Rick Page

Filed under: Sales Process — Paul McCord @ 8:26 am
Tags: ,

So You Say You Have a Sales Process?
By Rick Page

The Second-Best Process Finishes Second – and Sometimes Doesn’t Finish at All.

We talk to many sales executives about sales effectiveness and of course we do discovery with prospects to see where their needs are. Many of them say that they already have a sales process for opportunities and it is true that many companies invested in the funny sales processes of the last dozen years or so.

But when we drill down and examine what they call a sales process refund that many of them are lacking the components that it takes to win. Just having a process is no longer enough you have to have the best sales process — a complete process.

Some of what sales managers call a sales methodology is actually a forecasting process. I sat with one sales executive to review what they were doing and he showed me a spreadsheet with the faces of his sales cycle as the columns in the names of his reps in the rows. He was focused on moving or his numbers from one column to the next. I asked him, “But about the individual deals that make up those numbers?” He didn’t know because he was more focused on counting the business than winning business. This is called flogging the forecast for how much and when. Just defining the phases in your sales cycle is not really a sales process because it doesn’t show you how to win.

Another client, a consulting firm and a very elaborate flowchart with many steps and who was responsible for each one. This is certainly a necessary element but it’s not a strategy either.

Since the birth of consultative selling in the early 70’s many companies have invested in training that teaches their people how to:

1.  Discover and listen for customer needs

2.  Link solutions to requirements and needs

3.    Present back to the customer their vision of a solution

These fundamental skills and process are certainly necessary to any sales process – they define your solution strategy and your value proposition – but they are no longer enough to win a complex sale. Unfortunately this where many sales processes stop.

In last year’s survey by CSO Insights, (we recommend you subscribe) respondents said that of forecasted deals only 49.3% actually closed. Respondents said that 27.2% were lost to competition and the remaining 23.5% stalled out and bought nothing from anyone. This is directly related, in my opinion, to our finding that many sales methodologies fail to address competition and politics, and closing on a source of urgency that is emotional and political rather than just financial.

The closer you are to winning, the closer you are also to losing. That is because of the upheaval of the buying process at the decision-making point of the buying committee — the place we call the crucible. This is where the committee realizes that they are not going to reach consensus, they disagree on their priorities, the issues change, and often a power struggle breaks out. This is where multimillion dollar deals turnaround in a day.

Without a sales strategy process that addresses the political reality that not all buyers are equal or have unequal pains, your sales rep will lose control of the deal at this point. You have to identify all the potential stakeholders, their needs, their preference for you, their power and then identify a strategy for each individual to really get their vote or live without it.

You can win without a strategy, it’s called luck. You also need another dimension to your sales process if you are to win against competition. You must anticipate how they plan to win, predict their tactics, and defeat their strategy. The earlier you do this, the better.

Great salespeople that we know win they’re deals during the discovery phase long before any presentation. Their competitive strategies include developing inside informants who prefer you, planting questions that expose their weaknesses, suggesting changes to the buying process that favor you, and of course getting to the executives with your messaging first.

One of the reasons that so many forecasted deals are lost to competition is that salespeople fail to anticipate any competitive counterattack in the crucible. Once a competitor figures out that they are not winning, you should anticipate and predict that they will slash price and try to go over the project team’s head. The first thing great salespeople do after they get the good news is to immediately prepare these defenses.

Finally, good sales process should address getting the deal closed — especially since 23.5% of forecasted deals stall out. And in this economy, RO I alone will not close a deal because most CFOs have several proposals in front of them, all with good ROI’s, but only so much cash to invest. Without connecting your solution to a source of urgency that is emotional and political two powerful sponsors, your deal will sit on the forecast for a long time. The customer will not change until the pain of not changing exceeds the pain of changing. And a lost opportunity to save money may not be politically painful.

In addition, this is when procurement and legal become involved in your deal and a process called commoditization begins. After months of demonstrating differentiating value they suddenly can’t seem to remember any of it. That’s because these people are trained to ignore it. Some procurement people would buy a pacemaker from the lowest bidder. They just know your price is too high. No matter what it is, it’s too high.

While procurement may try to isolate you at this point from the end-users, you should have negotiated earlier for their assistance at this point. Only they understand the true value of your solution and the relative risk of the legal issues. If they are powerful enough they can help push it through procurement or legal. In this economy, it often takes as long to close a deal as it does to win it.

In complex sales, you either win or you don’t. They either close or they don’t. A partial sales process and strategy won’t produce a partial sale. Outcomes are binary. The worst outcome is to finish second, late.

Without a complete opportunity sales process including:

1.  Solution and value strategy

2.  Competitive strategy

3.  Political strategy

4.    Closing strategy

you are basically going to a gunfight with a knife.

A recognized authority in the complex sale arena, Rick Page, Founder and CEO of The Complex Sale, Inc., has trained salespeople from more than 50 countries during his long and distinguished career. One of the foremost experts on sales management and selling, Rick continues to develop innovative sales programs and is the author of Hope Is Not A Strategy – The 6 Keys to Winning The Complex Sale and Make Winning A Habit – 20 Best Practices of the World’s Greatest Sales Forces.  Visit his website

August 9, 2010

Guest Article: “When Bad Needs Analysis Happens to Good Sales Reps! by Paul Castain

When Bad Needs Analysis Happens To Good Sales Reps!
by Paul Castain

The Needs Analysis is no doubt, a critical step of the sales process. Execute properly and and you pave the way for a higher probability sale. Execute poorly and you disconnect!

Here are several of the mistakes I see sales professionals make. I’ve included several tips on how you can ace your next needs analysis.

1)    Failure to have the proper selling environment. This includes everything from not having enough time, to allowing people to tell you “we know exactly what we want so you don’t have to ask us those questions” etc. Let’s be clear. We need to be respectful and control the meeting without being controlling (there’ s a huge difference) but by the same token, would you go to a Doctor’s office and say “Put away that Stethoscope Doc. It’s my bladder so I just need you to work up a quote on surgery?” Selling should never be different. If someone is rushing your due diligence to the point that you know that this will be a “screw you” down the line, get the screw you today instead and insist (respectfully) that they allow you to be the professional you are.

2)    Allowing Your Needs Analysis To Take On A “20 Questions Guessing Game” Vibe. Maybe it’s the impatient New Yorker in me coming out, but why get into this “Is it animal or mineral” BS? I like to cut to the chase and ask a question at the start of my needs analysis that goes like this “Granted I called you . . . what prompted you to take this meeting today?” It gives me a direction to go in 9 out of 10 times and saves everyone the annoyance of questions that have nothing to do with “where it hurts”.

3)    Asking a lame question. This includes everything from questions that you could have answered yourself by taking a time to research (How many locations do you have? etc) to weak questions that don’t serve you or the prospect. So how does one ask a better question? By mentally firing yourself from your industry and rehiring yourself in theirs! If you were the dude/dudette buying what you sell, what would piss you off? I would imagine it could be things like quality, deadlines, surprise costs, communication, managing multiple vendor relationships, internal customers, dealing with sales people, navigating around internal external buying policies, how to sell a change to the internal team, cost containment etc. On a more positive note, there are things all businesses want such as more customers, more market share, more profit, happy customers, employees and shareholders, lower turnover, better image and brand awareness, increased efficiencies, quicker to market turn times, innovation etc. What questions can you ask to get them thinking about this? This is the stuff they want fixed! Want to take this over the top? Think of one killer, “knock you on your hiney” question. I’m talking about one question that flaws the prospect and makes them think “Holy schnikees. Nobody ever asked me that before. The insurance industry has the ultimate “If something were to happen to you, could your family meet its financial needs?” Whoa! Way to stun me long enough to make me listen to you dude!

4)    Asking a good question at the wrong time: When we jump right in with a more intimate question, a prospect might think “Who the heck is the person to ask me that? I don’t know them or trust them” and then they shut down on you. Personally, I like to ease into my questions by starting with more situational types of questions and then increasing the intensity at a pace dictated by my read of the prospect.

5)    Answering your own question. Don’t laugh. It happens more than you think!

6)    Asking a clichéd question: Example “What keeps you up at night?  “On a scale from 1-10 how is your present service?” “What would it take to make them a 10?” Don’t get me wrong, I could think of worse things to ask a prospect, but why sound like every other sales person who sits in the hot seat? I know this is harsh, but when someone asks me cliched, used and abused questions I immediately think “is that all you got?”

7)    Asking a set up or “salesy” question: These are the questions that they see coming from like a hundred miles away. My favorite “If I could show you a way to blah, blah, would you seriously consider blah?” I think the 80’s called and wants their monkey style kung fu  back!

8)    Being so attached to your questions on paper that you don’t follow up on the answer or allow the conversation to “go there”. My best suggestion here (aside from being flexible enough to allow a “discussion” to occur) is to memorize by the topics your questions fall under. This way when a conversation goes from something that’s a deadline issue to a communication issue, you know how the questions execute out of sequence.

9)    Not asking continuation questions and racing to your next question. The best information you can get is usually when a prospect is encouraged to continue or expand. You can facilitate that by simply following up their answer with: “Tell me more” “can you give me an example of that?” “what happened as a result?” and even using some strategically placed (get this) silence. People have an innate need to fill silence. Let it be your prospect. One disclaimer: If you wait too long you might get  a “Bless your heart” and a pat on the head.

10) Making “I wasn’t listening statements” after they answer your question. Examples: “Fair enough” “Interesting” First of all, what the hell are you saying to me? When someone says “Interesting” I feel like you are doing some amateur psychoanalysis and you just concluded I was a bed wetter or something. Are you judging me? “Fair enough” WTF is that? Is that you feeling I was defending an opinion that you don’t agree with? Was that your reentry back into our conversation after an outer body experience and it came down to either saying that or shouting out some other random word like “DAISEYS”  Either way, congrats, you are conditioning me to not give you so much on the next question. Gold star, Rain Man! Here’s an idea. Don’t know what to say after someone responds, thank them for their answer and move on.

11) Asking questions that are so full of prefacing and tangents that they confuse the prospect. I’ve witnessed a bunch of those in my career. The best was when the prospect just stared at the sales rep when he finished and said “I have no clue of what you said, or where you are going with that last question. Was it a question?”

12) Making the Needs Analysis an interrogation instead of a conversation. I offered to help someone the other day with a challenge they were having. I came prepared with a page and a half of ideas. I didn’t get a chance to help this person because they just kept peppering me with questions. At one point I resisted the urge to ask her if I should get my attorney. The cure (in my opinion) is to use different types of questions and to make the exchange conversational and collaborative. Otherwise you are encouraging the prospect to shut down on you.

13) Failure to validate feelings. When someone tells you about a challenge or an incident, don’t race to the next question, acknowledge and validate. This goes back to something I say all the time in this blog “Everyone has a story and wants to be heard” How about a little “I give a damn? How about an “I’m sorry to hear that” or “that would bother me too, and what a testimonial to your professionalism that you kept a cool head” Remember: race to your next question too quickly and you might brand yourself as insensitive and cold. The best part, is that they might not even be able to articulate that. It may hit them as more of a “gut feeling”. When that happens, classic fight or flight kicks in and we simply avoid.

14) Asking a closed question. Under this same category (I’m too lazy to make another category) are questions that make it easier to default to a nice safe “no” Instead of asking closed questions, try focusing on “Experiential” questions. That is, questions that bring a prospect back to a time when they experienced a less than favorable result that you can impact with your solution.  The topic of experiential questions deserves its own future post so stay tuned!

15) Recycling Questions (asking the same question multiple ways) Unless you have a really good reason for this and you are really good at disguising repetition, don’t go there girlfriend!

16)  Conclusive Questions (aka putting words in the other dude’s mouth) Example “Tell me about the challenges you are having with your current vendor” Meanwhile, nobody said anything about challenges.

17)  Allowing Unproductive Tangents. Part of your responsibility as the professional is to facilitate a process without being controlling. If the conversation is going in a direction that isn’t beneficial, then you need to get things back on course.

18)  Failure to Customize Your Questions based on your Pre Call Planning findings: Don’t be this creature of habit who must ask the questions they always asked. Better to have your arsenal, and choose your weapon and even create your weapon based on the situation at hand. Besides, doesn’t asking a very specific set of questions, that demonstrates that you did your homework help out in the rapport department?

19)  Committing Any Combination of the 4 deadly sins: Interrupting, talking over, finishing thoughts, rushing the prospect’s answer.   I know someone who has this annoying habit of saying “right, right, right” when you are answering their question or just making a statement they want you to cut to the chase on. Don’t ever do that to your prospect or you will be (once again) conditioning them to not give you the details you need. The best way for you to avoid interrupting or talking over is to simply pause after they answer the question. Done!

20)  Disrespecting the word “Why”. The word “why” can serve you, and in many cases it can hurt you in that it might make the other person feel they have to defend their position. Try changing “why” to “what” as in “what prompted you to take that position” or “what were the events that led to those feelings”  The “what” question gets you into mechanics and processes which can be far more productive. Don’t get me wrong, I love to get to the emotions and the feelings. That’s why I phrased this one “Disrespecting the word “why”.  I can’t emphasize it enough that if we aren’t careful, we literally condition prospects to be guarded! Not a good place to be hombre!

21)  Considering a Needs Analysis A One Time Thing: I hope you highlight this one. I see so many people who conduct a brilliant needs analysis, win the account and then never do it again. Things change my friend. Statistically speaking, just in the time you spent reading this post, something has changed somewhere. Immediate Action Item: Starting thinking of a needs analysis as the annual check up at the Dr. Schedule a check up with your clients and every prospect that you haven’t done a needs analysis in the last year. Some will argue that it should be 6 months. That’s your call to make, not mine.

I won’t lie to you, there’s a lot here to digest. My suggestion is that you print this out, and commit to “owning” these tips.

Your closing ratio will go up dramatically when you do!

He who asks is a fool for 5 minutes, but he who does not ask remains a fool forever

Chinese Proverb

Paul Castain is the Vice President of Sales Development for Consolidated Graphics (CGX) one of North America’s leading general commercial printing companies. Paul has over 25 years of sales and sales leadership experience. He has trained, mentored and coached over 3,000 sales and sales leadership professionals.  Visit his blog: Paul Castain’s Sales Playbook

June 30, 2010

Guest Article: “What Do Formula 1 Drivers and Great Sales Professionals Have In Common?

Filed under: career development,Sales Process,Uncategorized — Paul McCord @ 9:16 am
Tags: ,

What Do Formula 1 Drivers and Great Sales Professionals Have In Common?
David Brock

For sometime,  I’ve been haranguing readers about the importance of the selling process.  Even in a recent post, I considered use of the sales process as a condition of continued employment.  I’m not softening my position on this, the sales process is the cornerstone to personal and organizational performance excellence in selling. 

However, the posts have generated a good amount of discussion and emails.   Some have suggested the process removes creativity and innovation.  Some have said the highly scripted nature of a sales process is not conducive to the highly customer focused/responsive approach to selling we need to be executing.  My colleague, Andy Rudin, has made some outstanding arguments about the need for sale professionals to be able to “call audibles, deviating from the game plan” in order to be responsive to the situation.  I tend to agree with Andy’s concept.

It seems much of the discussion is about the level of precision and prescriptiveness of the selling process.  I thought it would be useful to provide some clarification.

In the past, I’ve used the analogy of a road map.  A sales process is a lot like a road map.  A map offers directions to get from Point A to Point B, in fact it may offer several options based on different criteria (e.g. Freeways, Surface Streets, Scenic, etc.).  A road map doesn’t describe everything one encounters on the journey.  It won’t describe every pothole, twist or turn.  It doesn’t describe road conditions or hazards that might be encountered along the way, nor does it describe what to do when those hazards are encountered. 

While the road map offers directions to get from Point A to B, it still requires a skilled driver to execute it.  The driver’s skill needs to be much higher, if you want to get between points very quickly.  Then you add traffic, it takes even more skill to navigate, while going very fast, with dynamic and changing traffic conditions.

Let me extend the example, I like watching Formula 1 racing.  Anyone that can drive, can drive a Formula 1 race course.  But to drive a Formula 1 course at 200mph, dealing with other skilled drivers, dealing with changing road, car conditions, accidents, and winning at the end requires the highest level of skill and performance.  Formula 1 drivers, think and analyze—very fast, they adapt and improvise quickly.  They change to meet changing conditions.  Above all, they stay on course, that is if they want to finish the race and win.

The sales process is a lot like a map.  It provides general directions, and may even provide options.  But executing the sales process, in the face of changing conditions, while moving at full speed, and beating competition requires the highest levels of skill, performance, ability to “read the conditions,” and adaptability by the sales professional.  The best sales professionals, like Formula 1 drivers, don’t seek to “drive on their own course,”  but learn how to exploit the course/process, adapt it to the current situation and conditions and go on to win.

Formula 1 drivers never blame the course if they fail to achieve goals.  Likewise, great sales people never blame the sales process for failing to achieve their goals.  Great sales professionals know that the sales process positions them to be as effective as possible, but that in the end, it’s all about execution—better, faster, more effectively than anyone else.  They know the execution is not blind, but requires thoughtfulness, adaptation and nimbleness on their part—if they are going to win.

I have a problem with sales processes that try to be overly prescriptive.  Those that try to anticipate everything that can happen on the journey.  Those that try to describe every twist and turn, every possible road condition, every possible situation that can happen in traffic.  It’s impossible.  Those that try to do this usually fail.  They create a process that is overly complex, too cumbersome, unresponsive, and slow.

At the risk of alienating some of my audience, I think overly prescriptive, highly scripted sales processes demean the sales professional.  The script the sales person has to follow without any deviation or adaptation to the system removes the real time thinking, analysis, and adaptation that is critical to winning fast, efficiently, effectively.  I tend to think that organizations that put this type of process into place do it because they either do not trust their sales people, they do not want to invest the time to train sales people, or they are looking for the lowest level of skills.  These jobs will disappear—they are better executed through the internet or through robots.

Selling is complex.  To be effective, we have to have a road map or a course.  To win, we have to think, analyze, adapt, and execute at full speed.  Great sales processes enable great sales professionals to execute and win like Formula 1 drivers.

Dave Brock is President of Partners In EXCELLENCE, a global consulting company. Partners In EXCELLENCE helps its client achieve the highest levels of performance in developing and executing business, sales, marketing, and leadership strategies. Follow Dave on his blog at http://partnersinexcellenceblog.com, on twitter @davidabrock, or contact Dave directly at dabrock@excellenc.com

February 19, 2010

Guest Article: “The Seduction of Low-Hanging Fruit,” by Jill Konrath

The Seduction of Low-Hanging Fruit
by Jill Konrath

I remember the first time it happened. It was on a Thursday, about 4 pm, and I was worn-out after a day of cold calling. I hadn’t uncovered even one viable prospect. Enough was enough! Time to go back to the office and do some paperwork.

When the phone rang, I answered it tiredly. But by the time I hung up I was a new person. I had just talked to one hot prospect!

Her company was BUYING! Not just looking – BUYING! They needed several new systems to handle their growth. And they wanted to make a decision quickly.

“Can we come in for a demonstration,” she asked.

How could I refuse! They came in the following Monday and we spent about two hours together. We discussed their needs and I showed them several possible options. Things seemed to go really well. In parting, they asked me to call back early the next week.

Tuesday morning I left a message. Wednesday and Friday too. My calls were never returned. It wasn’t till a week later that I finally got my prospect on the phone. She thanked me for my hard work, fast service and excellent demonstration. Then, very apologetically, she told me they’d selected another vendor.

I asked “Why,” but her answer was evasive and focused on minor details. Of course, price was thrown in too – as it always is when you lose.

I’m embarrassed to tell you that this happened to me more than once. And sometimes I invested an inordinate amount of time and effort in those so-called “hot prospects.” I coordinated elaborate meetings and prepared detailed proposals. I even rearranged meetings with prospective customers who weren’t quite ready to move ahead.

Can you guess what happened? That’s right. I almost always lost the business.

Lest you think I’m not too smart, it didn’t take me too long to figure out something was wrong. My proposals, presentations and demos were fundamentally sound, so it had to be something else. But what … When I talked to the more seasoned sellers, I was cautioned on wasting my time with ‘low-hanging fruit” – in other words, companies who are ripe to buy.

They told me that many of these prospects already have made their decision, but are checking the market for two reasons: 1) To prove to higher-ups they did a thorough investigation, or 2) To leverage competitive offers to reduce their preferred vendor’s pricing.

Yikes! That explained a lot of things. Naively, I had assumed that I had a fair shot at every deal.

Learning how to ferret out those opportunities where it was worthwhile to pursue low-hanging fruit was hard. I had to be much more straightforward than I was used to being and ask questions that made me uncomfortable. But by doing this, I saved myself lots of hard work. And, I had more time to spend on prospects where I could win.

* * ******************************************************************

It’s not only individuals who are seduced by low-hanging fruit. Sometimes whole companies are sucked into these ‘get-rich-quick’ schemes.

Several years ago one of my clients introduced a new product targeted at a highly profitable niche owned by their competitor. They were late to this market and, in essence, their product was a higher-priced copycat with enhanced capabilities.

In the months preceding the launch, sales reps continually fed marketing stories about all the money being left on the table because the new product wasn’t ready. They told marketing about all the prospects who called wanting to know when their new system would be available. Everyone was drooling. So many buyers, so little time.

Their entire launch plan focused on the low-hanging fruit. Sales reps, armed with proposal templates and PowerPoint presentations highlighting competitive strengths, were chartered to go after companies on their “Hot Prospects List.”

Hard as I tried, I couldn’t convince them of the folly of this decision. The seduction was complete.

So what happened? In the six months immediately after the launch, very few systems were sold. Their only orders came from existing customers where reps had strong, long-term relationships with key decision makers. Within two years the company quietly exited this market niche because it was too costly to penetrate.

The lure of low-hanging fruit never completely goes away. The chance to make easy money is just too seductive.

I still have to caution myself when I encounter these opportunities. The worst thing about them is the wasted time that could have spent with prospects where my chances of winning were much higher.

Lessons Learned

1. In most cases, you can’t get into a sales process late and expect to win. If your competitor already has a strong relationship with the customer, they’re in the driver’s seat. They’ve likely already established decision criteria that only their company can meet.

2. Be willing to ask tough questions. If your new prospect is ready to buy, make sure you ask them:

- Who else are you looking at?

- Has your company done business with these companies before?

- Why would you consider switching?

If your prospects express strong dissatisfaction with a competitor, you might have a real opportunity. But if they’re just looking around, be wary of investing too much of your time and company’s resources trying to get the business.

3. Your best prospects will be those companies where you already have an established relationship OR where you get in early, before customers are making a decision. In the latter case, by uncovering and developing account needs, you’ll build the strong relationship you need to win the order when they’re ready to make a change.

Jill Konrath, author of Selling to Big  Companies, is a recognized sales strategist in the highly competitive business-to-business  market. A popular speaker at sales meetings, she helps her clients crack into  corporate accounts, speed up their sales cycle and generate demand for their offering.  Visit her website http://www.sellingtobigcompanies.com

March 20, 2009

Guest Article: “Is Provocative Selling a new kind of Selling Eloquence or just the same old Blarney?” by Niall Devitt

Filed under: sales,Sales Process,selling — Paul McCord @ 8:41 am
Tags: , , ,

Is Provocative Selling a new kind of Selling Eloquence or just the same old Blarney?
by Niall Devitt

Ireland is a small Island on north-west of Europe with a population of just over 4 million people. Mass emigration means however, that over 80 million people worldwide are now of Irish decent. This Irish Diaspora is over fourteen times the population of the island of Ireland itself. From JFK to Barack Obama, Joyce to U2, Guinness to Riverdance, tomorrow is St Patrick’s Day; when we invite the world to join with us in celebrating all things Irish.

One famous Irish landmark is the Blarney Stone; legend has it that kissing the stone gives the gift of eloquence. Eloquence is the ability of expressing strong emotions in striking and appropriate language, thereby producing conviction or persuasion. The term is also used for writing in a fluent style.

The story goes that Queen Elizabeth the 1st requested an oath of loyalty from Cormac Teige McCarthy, the Lord of Blarney. She received a response that promised loyalty without “giving in”. Elizabeth proclaimed that McCarthy was giving her “(a lot of) Blarney”, thus apparently giving rise to the legend.

One man who definitely has the gift of eloquence is my friend and colleague, Dave Brock. Dave and I have been exchanging ideas about the concepts behind” Provocative Selling”. We thought our different views complemented each other-rather than merging them, we thought we could stimulate discussion in the community by posting both and encouraging you to read each.  Read Dave’s views in his post “The Big Idea, Solve Your Customers’ Big Problems”

So is “Provocative Selling” a new kind of selling eloquence or just the same old Blarney?

It talks about moving our thinking and methodology about selling from focusing on “What keeps our customers awake at night,” to “What should keep our customers awake at night.” The premise is in changing the objective, you change the discussion. Different conversations lead to different outcomes with the goal to find bigger problems which in turn will lead to bigger sales.

While I not entirely convinced that what keeps and what should keep our customers awake at night are actually that far apart, I am impressed with identifying the need for a different type of conversation. What I really like about Provocative Selling is its process, the how to get from A – Z bit. The simple fact of having a much more open starting point to our dialogue with prospects, will I believe lead to having much better conversations. Too many of us continue to talk customers in the same way about the same things and it’s stopped working.

Maybe there is not something spanking new here, but perhaps we do all need reminding that what we should be talking to our customers about is “how we can help them to help their customers”. The reality is that no other conversation is worth having at the moment. The combination of expertise, knowledge and skills required is high, but maybe it’s now “a must have” in the salesperson’s toolbox.

Another important facet of this approach is that it increases the worth of the salesperson, not just in the eyes of the customer; but more importantly perhaps in the eyes of the salesperson. Dave often speaks of how salespeople need to “create value in every interchange with customers” Surely the starting point must be salespeople who have first built upon their own intrinsic value before customers and sales.

Top salespeople are constantly looking to add to their repertoire of knowledge and expertise. There is a subtle yet powerful difference, between finding opportunity and having the ability to go and create it. Could it be that in many ways? Provocative Selling is what top salespeople are already doing

 

Niall Devitt is the founder of Beyond the Boardroom (www.btbtraining.com), a leading Irish business development consultancy specialising in providing highly tailored solutions in the areas of sales training and recruitment.   To date, Niall experience spans both B2B and B2C, where he has delivered training programmes for the IT, Construction, Medical, Utilities, FMCG and Financial sectors. Niall brings success to companies and individuals by assisting them to maximise potential through identifying, resolving and overcoming performance issues.

March 17, 2009

Can We Reclaim Our Place in the Sales Process?

It used to be that when we connected with a prospect we had a pretty good idea of what would be expected from us by the prospect.  Typically, we were expected to help the prospect understand the root cause of their issues and needs and to develop solutions that addressed those issues in a manner we thought would be of value to the prospect.  Whether we were the first solution provider the prospect spoke to or not, our job was to help the prospect understand and analyze their needs and/or problems and then to develop a satisfactory solution.

For a growing number of us today, we are no longer being called upon to offer our needs analysis expertise to prospects-and worse, many times we’re not even expected to offer a solution but to rather simply supply the product or service needed to implement the solution the prospect has crafted. 

With the enormous volume of information and analytical tools available to prospects today at no cost on the internet and through other media, more and more prospects are investing a significant amount of time researching their issues-and the potential solutions to those issues-long before we enter the picture.  In increasing numbers, prospects are looking to us only to provide the pieces to the solution they themselves have developed.  In other words, a growing number of prospects are no longer looking at us as providers of expertise.  Instead, salespeople are increasingly being viewed by prospects as commodity vendors, providing the specific products or services the prospect needs to implement their pre-determined solution.

Prospect self-diagnosis and self-medication completely changes our profession from one of essential solution developer to being simply a commodity supplier; and when all we can do is supply a commodity, our expertise has little or no value over and above the market value of the product we sell. 

For example, in the past we may have used product X that had a retail value of $1,500 in the solution we developed to address a prospect’s issue. We changed the prospect $10,000 for implementing our solution, meaning our expertise was worth $8,500.  In a world where the prospect no longer relies on our expertise, just our product, our value to the prospect is simply the $1,500 the product sells for.  We have no intrinsic value of our own because the prospect is now doing what we used to change $8,500 to do.

The movement to self-diagnose and develop one’s own solution is spreading throughout the marketplace, in both business-to-consumer and business-to-business activities, and with increasingly sophisticated and complicated issues.  The list of industries where prospects are relying less on the professional and more on themselves to analyze their issues and develop their own solutions is huge.  Securities, insurance, residential and commercial mortgages, software applications, accounting and bookkeeping, legal proceedings, business structures, and dozens and dozens of other areas.

How do we as salespeople fit into the sales process in this changing climate?  Can we claim a place at the table when our prospects now have available to them in a couple of clicks of a mouse more information than we were capable of giving them in the past? 

Of course, there will always be a segment of prospects who will seek advice and guidance from salespeople they believe to be experts in their field.  That group is, however, shrinking.  In order for us to become relevant to those who believe they no longer need the advice, guidance, and expertise of a professional salesperson, we must:

  • Do a better job of educating prospects and clients on what we do. Many prospects see us as offering nothing but a biased, self-serving sales pitch rather than an effective, prospect oriented solution to their issues. If we want to regain relevance with prospects who have decided they are better off doing their own research and developing their own solutions, as well as retaining those who haven’t yet moved in that direction, we will have to change their view of what sales is and who we as salespeople are.
  • Educate before proposing a solution. Many prospects believe that our ‘solution’ to their problem is nothing more than a canned product or service that we claim is customized to meet their unique situation. And why should they believe anything else since so often we salespeople ask a half dozen questions and magically propose ‘the solution?’ Prospects are no longer willing to settle for canned solutions. Prospects today want to be educated on both the cause of their issues and the possible solutions-and the pros and cons of implementing the various solutions. If we want to become relevant once again-or stay relevant to those who haven’t yet deserted us-we will have to become educators before we become salespeople. Education must become the foundation of our sales process. And our education will have to be real education, not some slick sleight of hand marketing mumbo jumbo disguised as education.
  • Walk away when our products and services don’t meet the prospect’s need. Prospects are skeptical of salespeople because we always have what they need. Seldom has a prospect met a salesperson that referred them to another company because their products, services, and/or expertise wasn’t appropriate to meet the prospect’s needs. Prospects expect the salesperson to try to sell them whether the product or service will meet their needs or not. If we want to be taken seriously, we have to be willing to work in the prospect’s best interest, even when that means walking away from business.
  • Generate more value for the prospect than the prospect can get on their own. Why should a prospect pay us if we can’t bring more value to them than they can generate on their own? We have to be able to create tangible value for the prospect, whether that value is in terms of dollars, time, or security. We must be able to clearly demonstrate that we can produce greater results than they can produce, save them more time and/or energy then the cost of our products or service, or give them more security and safety than they can acquire on their own.
  • Earn our place in the sale. We must recognize that in most instances prospects no longer need us. If we are not prepared to do an exceptional job, we are expendable. One of the reasons we find ourselves being replaced by discount providers, websites, 800 numbers, and a myriad of other cheap alternatives to professional salespeople is that we believed that prospects had to have us if they wanted or needed our product or service. Not so. Just ask the full service securities broker, the mortgage loan officer, the business banker, the pharmacist, the realtor, the telecommunications expert, and hundreds of others who were ‘indispensible’ and who are now clawing to stay alive. We can no longer take our place in the sale for granted.

Our profession is changing.  We are slowly becoming a profession where there is an elite group catering to the highly profitable prospects who seek the advice and guidance of top experts in their field and a mass of order takers working with those prospects who believe they can formulate their own solutions and just need a salesperson to provide certain products or services at bargain basement prices.

Unfortunately, it doesn’t appear that the move to self-diagnosis and solution development will cease anytime in the foreseeable future.  If that’s the case, the question becomes which do we as salespeople want to be-the expert who deals with the highly profitable segment of the market that seeks advice and guidance from a real expert–or the order taker who deals with the discount shopper?  The choice is ours, but we have to make the choice because the change in the marketplace isn’t going to stop just because we don’t like it.

March 12, 2009

Doctor, Doctor, Mister MD, can you tell me, what’s ailing me?

Filed under: Closing Sales,Handling Prospect — Paul McCord @ 12:59 pm
Tags: , ,

Pain–the moving force in sales today.  Every company and every individual is hurting in some way or another-most have a great many pains.  But overshadowing all other pain right now is cash flow, income (sales), and security (stability).

The title of this post dates me, but The Young Rascals hit song asks the primary question each and every one of our prospects is asking-”What’s the cause of my pain–and most importantly, how do I eliminate it?”

More than ever before, if we want to become indispensable to our prospects and clients, we must become great diagnosticians.  We have to be able to analyze our prospects situation and develop a solution that will address their most pressing issue.  And we have to do it in a way that creates a crystal clear vision of what the value gained will be.

In today’s tight economy, prospects aren’t buying ‘maybes’-maybes are too expensive, too vague to invest in today.  If all you’re selling is a maybe, you’ll be selling at a rock bottom price if you’re selling at all.  Prospects will, however, buy-and pay well for-a clearly defined solution that demonstrates a clear path to eliminating their pain.

Although the economy has put a real damper on business, for most of us in sales it has to some extent made our jobs easier.  The central issue for almost all of our prospects and clients is financial.  Cash flow, income, or security-one or more of these issues is almost certainly the primary pain our prospects and clients are feeling.

Knowing there is a high probability that one or more of these issues is the pain our prospect seeks to eliminate makes our job significantly easier in one sense.  Knowing that these are the issues we’ll be dealing with 80 or 90% of the time allows us to focus our attention on understanding how our products or services contribute to solving these issues for our prospects.

On the other hand, knowing the likely pain beforehand can create significant problems if we aren’t diligent:

Laziness: Just because we know what the likely problems will be doesn’t mean that these will be the basic issue for every prospect we encounter.  We must still do a comprehensive needs analysis-with an open mind–before we determine what the issues are and where and how we can help.

Canned Solutions: Just as dangerous as being lazy in our analysis and understanding of a prospect’s situation is going in with a canned solution.  Each and every prospect’s situation is different.  The issue may be the same, say cash flow or lack of sales, but that doesn’t mean the solution is the same.  Now more than ever we must customize a solution for the prospect if we expect to maintain profit margins in today’s economy because our prospects can get a canned solution from almost any of our competitors at a discounted price.

Presentation Lite: If we’re dealing with the same two or three issues time after time, we run the risk of becoming somewhat bored.  We begin to shorten our presentation-after all, we don’t want to bore our prospect also.  So, instead of giving a complete explanation of how our solution will impact the prospect and detail the results they will experience and how those results will add value and reduce their pain, we leave some gaps, expecting the prospect to make the connections.  Hope or maybe won’t sell today’s prospect.  We have to make sure the prospect understands exactly what our solution is and exactly how that solution will address and ease their pain.  The prospect has to believe in the efficacy of the solution or they won’t write the check.

Before heading out on your next sales call, take some time to understand exactly how your products and services will address your prospect’s cash flow, income, and security issues.  You know the likely pain that your prospect faces, so prepare yourself to address those issues in a manner that your prospect can appreciate-helping them reduce their immediate pain.  Selling today won’t get you very far; instead, you have to be the doctor who diagnoses and treats the pain your patients are feeling.  Yes, we’re supposed to be that doctor all the time–but today, unlike during the great economy of the past few years, it isn’t an option.

December 12, 2008

Close More Sales Quicker–Learn How to Keep Your Prospect on Track and Focused on Purchasing

Benefits

Most salespeople follow a chaos theory of managing a sale – whatever happens, happens. Consequently, after leaving an initial meeting with a prospect they wonder how, when and why they should reconnect with the prospect. Not only does this lead to lost opportunities, even with prospects who do become clients the process is difficult, fraught with worry and uncertainty, and wastes a great deal of the salesperson’s time and energy. Managing a sale need not be chaotic. The ladder method is a logical progression process that will allow you to maintain complete control of the sales process, save time and energy by keeping your prospect engaged and committed, shorten the sales cycle, quickly eliminate nonprospects, and create additional and add-on sales and generate quality referrals (in conjunction with the PWWR Referral Generation SystemTM).

Register at Lorman Education Services

Agenda

  1. From Contact to Contract
    1. Understand the Logical Steps From Contact to Contract
    2. Construct the Ladder Before You Hit the Wall
    3. Create Engagement and Qualifying Criteria Prior to Meeting With a Prospect
  2. Create a Sales Path During the Initial Meeting
    1. Determining the Contact Is a Real Prospect
    2. Gain a Firm Grasp of Where You Fit Into Solving the Prospect’s Wants, Needs or Issues
    3. Agree Upon the Next Step – Should Be a Face-to-Face Meeting
    4. Agree Upon the Goal for Next Step
  3. Build Value for Your Next Contact
    1. Value vs. Benefit
    2. Prospect Centered vs. Self-Centered Value
    3. Going Beyond Your Agreed Upon Task
    4. Demonstrate Competence, Professionalism and Trustworthiness
  4. Turn Each Subsequent Contact Into a New Step of the Ladder
    1. Add Extra Value at Each Contact
    2. Gain Agreement That the Task Meets the Client’s Request and the Previously Agreed Upon Goal of the Contact
    3. Agree Upon the Next Logical Step
    4. Agree Upon the Next Step’s Goal
  5. When There Is No Place Else to Go
    1. Prospect Not Ready to Purchase
      1. Can Occur Anytime in the Process
      2. Gain an Understanding of Why the Prospect Isn’t Ready to Buy
      3. Get an Idea of Their Time-Frame
      4. Agree Upon Maintaining Contact Via Your Normal Communication Process
    2. Nonprospect Connection
      1. Typically Determined at the First Meeting or Very Early in the Process
      2. Determine the Reason: No Need, No Money, No Interest, Cousin in the Business, Whatever
      3. Determine Whether or Not Contact Is Worth Including in Your Normal Communication Program
      4. If They Are, Agree Upon Maintaining Contact
      5. If They Aren’t, Thank Them for Their Time and Move On
  6. Create a Communication Program for Prospects Who Aren’t Ready
    1. Every Contact Must Have a Prospect-Centered Purpose
    2. Every Contact Will Train Them to Pay Attention to You Because You Bring Value or to Ignore You Because All You Do Is Waste Their Time
    3. ‘Touch’ Each Prospect at Least 12 Times a Year Via Various Media
  7. Grow the Relationship After They Buy
    1. Maintain Contact Through a Consistent, Client-Centered Communication Program With at Least 12 Contacts a Year – At Least One Via Phone
    2. Learn the PWWR Referral Generation SystemTM to Generate a Large Number of High Quality Referrals From Each of Your Clients and Prospects
    3. Make Follow-Up and Add-On Sales Via Education Rather Than a Direct Sale

Register at Lorman Education Services

Faculty

Paul McCord, McCord Training

Paul McCord, of McCord Training, has more than a quarter century of in-the-trenches experience as a salesperson, manager, executive and business owner in the construction, publishing and financial services industries. His experience is both broad and deep. From selling millwork to apartment and commercial builders and home centers, to wholesaling insurance and securities to NASD broker/dealers, to selling mortgages on both a retail and wholesale level, his background encompasses the full spectrum, from retail to wholesale to direct to business sales and sales management.

Mr. McCord’s heavy sales and management experience across a broad swath of the sales world combined with his years of experience training and consulting with companies of all sizes in dozens of industries has given him a unique understanding of the problems, issues and opportunities salespeople, managers and companies face.

Mr. McCord is the author of two best-selling sales books, Creating a Million Dollar a Year Sales Income: Sales Success through Client Referrals (2006), which was selected as an offering by the prestigious Forbes Book Club and is quickly becoming recognized as the authoritative text on referral generation; and SuperStar Selling: 12 Keys to Be Becoming a Sales SuperStar (2007). His third book, Connected: Turn Your Connections into Your Most Powerful Business Building Tool, will be released in the Spring of 2009.

A prolific writer, his articles, interviews and quotes appear regularly in numerous business and industry publications such as Forbes, Business Week, Selling Power, Advisor Today, Sales and Marketing Excellence, Advisor Today, Hotel and Motel Management, Airport Business, Enterprise Week, SalesForceXP and many others. Mr. McCord is also the author of the highly popular Sales and Sales Management Blog which is often picked up in syndication by Fox Business News, Reuters, Nielsen Business Media, Hoovers and the Chicago Sun-Times.

Mr. McCord’s work with salespeople and companies includes coaching; conducting sales training workshops and seminars; and consulting with companies on a variety of issues such as designing company sales training programs, training managers, and designing and overhauling districts, regions and entire departments.

Mr. McCord’s clients range from small to mid-size companies to behemoths such as GE, Wells Fargo, Microsoft, New York Life, Siemens, Merrill Lynch and others. In addition, he is a frequent speaker to business and industry associations such as The National Association of Insurance and Financial Advisors, REALTOR® associations, marketing and public relation associations, and government groups.

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