As we are well into the Q2, it's time for rigorous reflection... and it's time to get super-charged for the rest of 2019
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Here are a few questions to ask yourself and your sales team:
+ What did you learn so far 2019 that helped you acquire new accounts? Retain accounts? Penetrate accounts?
+ What did you do that wasn't so successful?
+ What are you going to do better or differently in the rest of 2019 to acquire new accounts and retain/penetrate existing accounts?
+ How much commissions are you going to make in 2019 and what are you committed to doing to achieve that?
One of our favorite books to help us answer some of the questions above at this time of year is: "Your Best Year Yet" by Jenny Ditzler .
In this edition, we share a set of proven best practices that will help your sales team achieve its robust sales goals.
Take these tips, share them with your sales force (during a sales meetings and/or 1:1s) and apply them in daily selling efforts--you'll find that even just using a few of these tips will help you and your people reach your goals and put more money in all of your pockets
The Single Most Critical Instruction in Closing
You are now going to receive the eight most important words in the art of closing. These are the most powerful words spoken on the complex, demanding, and well-paid art of closing. Here they are:
Whenever you ask a closing question, zip it!
Why is it so important to keep quiet?
The first person who speaks after the closing question has been posed owns the product. If you speak first, you (or your company) still own the product. If the clients speak, they’re either going to say “yes” or “no.”
If they say “yes,” whoopee!
If they say “no,” they’ll likely say something you can grab hold of...another talking point that, once covered, allows you to try another closing attempt.
So, keep quiet and don’t risk destroying the buying emotions you’ve worked so hard to build during your presentation. That is one area where average salespeople lose and winners win.
The average salesperson can't wait more than ten seconds after asking a closing question to say something else.
How NOT to Close a Sale
I recently heard a story about a salesperson trying to close a sale. He tried the old “IQ close.” He said, “This option makes the most sense; in fact, this is the option my smart customers chose.” So… I guess they are idiots if they don’t choose that option. No wonder salespeople get a bad rep.
Some salespeople place too much pressure on the customer at this stage. Other salespeople spend too much time trying to find the magic pill for closing. Customers are turned off by gimmicky closing techniques. Customers are turned off by overbearing salespeople who treat the interaction as a win-loss scenario. If they close the sale, they win. If they don’t close the sale, they lose.
Salespeople will also put too much pressure on themselves at this stage. They have a now-or-never approach to closing the sale. Even the term “closing the sale” sounds like a power-trip statement. In this scenario, the focus is on the salesperson, not the customer.
Professional salespeople focus on understanding the customer’s business, needs, and problems
PLEASE COMMIT THIS TO MEMORY: The more time spent understanding the customer, the less effort it takes to move the sale forward. A clear understanding of the customer’s needs earns you the right to ask for their business.
Professional salespeople simplify the process. Closing the sale is not arm-twisting pressure. It’s about moving the sale forward. It’s not about finding a hundred different ways to close every sale, it’s about progressing this sale forward.
In your next sales presentation try this simple two-question approach.
Ask the customer for their thoughts. For example,
“What do you think of my recommendations?” or “Am I on the right track?”
If the customer gives you a buying signal, then ask for the business. For example, “How would you like to proceed today?” “How would you like to move forward today?”
It’s not complex, it’s not about pressure, it’s not gimmicky, and it certainly isn’t about IQ; it’s about the customer’s needs. Once you understand the customer’s needs, progress the sale forward by asking them two questions.
5 New Ways to Handle the Objection: “The Price is Too High”
The price is too high is an objection that is as old has humanity itself. If you think hard enough, I’m sure you can see the ancient Egyptians walking around an outdoor marketplace haggling with sellers using this very objection. And if you think even harder, you can probably envision weak sellers dropping their prices to make a sale. Things haven’t changed much in four thousand years, have they?
The good news is that today there are a variety of proven ways to handle this age old objection. The most obvious way is to see it for it often is: a smokescreen hiding either a real objection or an attempt to haggle and have you to cave in and give a better price. In either of these situations the technique is to isolate the objection first and see what other stalls they come up with are before you negotiate price. You’ll see examples of these below.
Below are five new ways to handle both types of price/budget objections. Pick the ones you’re most comfortable with, then make them your own and practice them until they become automatic. Given the frequency of this objection, you’ll be much more confident once you know how to handle it:
“The price is too high – We don’t have the budget for it”
Response One:
“You’re right, and I know we’re not the cheapest out there – and it’s important that you heard that right – we’re not the “cheapest” service on the market. And there’s a very important reason for that: The quality that you get with us goes far beyond the few extra dollars you’ll invest today, and let me tell you the top three reasons why….”
Response Two:
“And that’s exactly why we offer our introductory program. Here’s the thing: we’re so convinced that you’ll come to appreciate the added services and value we offer that as soon as you begin using our service, you’ll forget all about the small initial cost.
In fact, you’ll find that in the long run our (product or service) is not only affordable, but it saves you time AND makes you money. And that’s something you’re interested in doing, isn’t it?”
Response Three:
“_________, if you really think about this from a business perspective, you’ll soon see that this is actually something that you can’t afford NOT to do, and let me tell you why: If you don’t put this (product or service) to work for you, while you may save a bit of money today, you’ll be losing money tomorrow in terms of (lost revenues, extra work, lost sales and opportunities, etc.). As a operator, you just can’t afford to keep doing that.
Response Four:
“You know, a lot of business owners (V.P.’s, etc.) at first think this is an expense, but think again: if it helps to bring you more business, and/or helps you keep the clients and customers you already have, then it becomes an investment in your success, doesn’t it? And that’s how all successful companies grow – they invest in their business.
And that’s what you have the opportunity to do right now. So let’s get you started…”
Response Five:
“I hear you _________, and let’s just say that I could wave a magic wand and get you the money (or reduce the price to where it would fit within your budget). Level with me: what other reasons would you have for not at least considering putting this to work for you today?”
[Now listen for the real objection and deal with it appropriately]
So now you have five new ways of handling the price objection. Make sure and listen for what the real objection is and then use the right script to overcome it.
The Number One Cause of Price Objections
Fairness is how you hope the other person will treat you.
Last year, a survey of 500 people identified the causes of price resistance. Limited resources, fear, and lack of differentiation ranked toward the top, but they were not number one. The top driver of price resistance was a perceived lack of equity. They said things like, “I want a fair deal” or “I don’t want to feel I’ve been taken advantage of.” Buyers wanted to feel that they are getting at least as good as they are giving. Most defined value as a return greater than the investment.
The equity theory of motivation proposes that humans compare outcomes to inputs. If the payoff is equal to or greater than the investment, the buyer perceives equity and is motivated to buy. Perception plays an important role in the appraisal of value. It is always the buyer’s perception that counts. Perceived inequity results in no purchase.
As a salesperson, you can demonstrate the equity of your solution by demonstrating the short and long-term gains of your solution. Discuss the full value of your end-to-end customer experience. They must enjoy a return on their investment over time. Price is a one-time thing. Customers must perceive your value as an annuity. This way, they experience a return on the investment long after they pay the price to acquire it.
The Root Cause of Many Lost Sales Opportunities
I was visiting an old friend not long ago and he reminded me of the great ping pong tournaments we used to have when we were in college. He also told me he had just purchased a ping pong table and it was “waiting” for us in his game room. My buddy quickly grabbed one paddle; I picked up the other. It's been decades since we last faced off against each other. We were never very good, but we were always competitive.
After a brief warm-up period, I felt the old rivalry re-emerging.
My friend had moved too far to the right side of the table. With a nice hit to the left corner, I could score an easy point. Maybe even a bragging point.
Eagerly, I whacked the ball into just the right spot -- or so I thought. Instead, it sailed six feet beyond the table into a potted plant. (Too much adrenaline!)
Moments later, another opportunity presented itself. My pal was playing too close to the table, making it difficult for him to hit a long ball placed directly in front of him.
I swung hard and fast. It hit him in the chest. Another big miss for me.
The Problem
After a few more lost points, the root cause of the problem became glaringly obvious. My eagerness to score big was causing me to make rookie mistakes.
To win, I needed to control my emotions -- which, as you might imagine, is easier said than done.
We have to do that in sales too. Good sales opportunities get my adrenaline flowing. We can see how we can help. We know we can make a difference. We want to pounce on our prospect.
It doesn't work. Instead, it creates serious, sales-ending obstacles. Prospects don't want to play with you anymore. They think you're only out for yourself. It's probably not true, although I have to admit that early in my career it was.
The Solution
If you really want to win at the game of sales, it's crucial to control your emotions. Sometimes the first step is hardest -- recognizing your own actions are causing the problems.
Then you have to figure out new ways to respond and even learn new skills. It's hard work, but it's worth it.
As for my ping pong game, I realized that mastering the skills I needed to beat my friend would take longer than my weekend visit. I decided to focus on having fun instead -- and keeping the ball in play.
Sell Value Not Price
Selling value is the number-one obstacle that salespeople face. It is challenging but not impossible. Big box superstores, category killers, and discounters of every stripe are attempting to re-define the concept of value by using the word value as a euphemism for cheap. A solution that fails to perform for a customer is lousy value, regardless of the price. To sell value, let’s begin with an understanding of value—what it is not and what it is.
Value is not bloated, feature-rich products. Value is not layers of services that a company offers. Value is not a cheap price. Price is a product feature—like size, color, packaging options, etc. Why allow yourself to have a sale derailed over a product feature when the real issue is value? This reminds us of the famous Mark Twain quote, “Never argue with a fool, onlookers may not be able to tell the difference.” Salespeople that allow themselves to be sucked into a price debate think no differently from the person who raises the price issue.
Value is an outcome, the result of your solution. Value is return on investment, yield, or the impact of your solution on the customer’s world. Price affects this outcome no more or less than any other product feature. Salespeople lose the value argument when they get lost in the weeds of price justification. Like price-shoppers, they lose sight of the real purpose of a solution—to create something of value for the customer.
The value of something is determined by what customers sacrifice measured against the outcome of the solution. Sacrifice includes price and ownership costs. Outcome includes what the solution does and how it affects the customer. If the outcome of the decision is greater than the sacrifice, it is great value. If the sacrifice is greater than the outcome, it is lousy value. Price is a piece of the sacrifice, not the whole of it. At the heart of buying decisions, customers want great value, not just cheap prices. Salespeople, who find themselves arguing over price versus selling their value, must heed the advice in Proverbs: “Answer not a fool according to his folly, lest you be like him yourself.”
IF YOU'D RATHER GET A ROOT CANAL THAN MAKE A COLD CALL READ THIS...
“I’ve been absolutely terrified every moment of my life – and I’ve never let it keep me from doing a single thing I wanted to do.” Georgia O’Keeffe, 20th-century American Artist and Painter
You may not feel what Georgia O’Keeffe is describing here, but if you are like many salespeople, you probably experience varying degrees of cold call reluctance.
Cold call reluctance is the fear, unwillingness, or hesitancy salespeople experience when they think about reaching out to customers whether they are cold calls or repeat calls. This can range from mild to severe. It includes prospecting by phone, in-person canvassing, networking, or asking for referrals.
Call reluctance is either a problem of will or skill. If it is a problem of will, it includes the fear of rejection, the belief that cold calling takes too much effort, or the attitude that it is not a viable way to build your business. If it is a problem of skill, it means that you have never been taught an effective way of cold calling. Simply, you lack the necessary skills to make this a viable business-building strategy.
If it is a problem of will, consider the possibility that you can build your business by reaching out to prospects. Rejection is highly overrated. How can anyone reject you personally when they really don’t know you? All they are rejecting is your messaging. Do some serious soul-searching, and ask yourself why you do not like reaching out to prospects.
If it is a problem of skill, you can reread and PRACTICE the SMART training module entitled,
"Turning Cold Calling in to Gold Calling. "
Reaching out to prospects is still a viable way to build your business. A study of calling habits found that 80% of salespeople still cold call as a way to fill their pipelines. A successful cold-calling campaign requires planning, practice, and persistence.
The Power of Surprise in Customer Service
“FIRST TIME I’VE EVER LOST A GAME THAT WAY. FIRST TIME I’VE EVER SEEN A GAME LOST THAT WAY.” -NICK SABAN
Saban is referring to his surprise loss to Auburn in the 2013 Iron Bowl. With one second left, Alabama attempted a 50+ yard field goal. The ball soared through the air, on target, but it didn’t have the distance. The ball fell eight yards short into the arms of Chris Davis, an Auburn receiver. Davis ran it back for a touchdown to win the game. The Auburn nation was in a euphoric state while Alabama was devastated. Although the game was just another win and loss, there was one element that made this game larger-than-life, surprise. Surprise can have the same effect in customer service.
Surprise has the ability to make every service experience that much better, or make everything worse. In fact, a recent Harvard Business Review article mentions that surprise can amplify whatever emotion you are experiencing. The article also argues that surprise is one of our most powerful marketing tools. Surprise can make or break your customer experience.
However, surprise is becoming more and more difficult. Companies benchmark themselves against their competitors. Companies are too quick to say “me too” instead of “Surprise! We’re different.” Companies are changing to become the same, rather than changing to surprise their customers.
Given, the ubiquitous nature of products and services, it shouldn’t surprise you that only 7% of customers are delighted. In a recent customer service survey sponsored by American Express, customer experiences are average or below average 93% of the time.
To surprise customers, we must look for opportunities. Customers will give us hints, but we need to recognize these hints as opportunities. If the customer shows the slightest hint of dissatisfaction, it is an opportunity. The slightest hint of satisfaction is also an opportunity to heighten the experience.
To surprise customers, we must also find a way to say yes. When a customer needs our help, we say yes. When a customer needs more information, we say yes. When a customer asks “can you do this,” we say yes. There are several ways we can say yes. For example, if you don’t know the answer, find out who does. If the customer problem is unique, research a solution. If they need to vent, then listen. I recently met a business owner who understands the importance of saying “yes” to customers. Surprisingly, the name of his company is Yes Cleaners.
The next time you are presented with an opportunity to surprise a customer, say yes. They will remember the experience. Think of the last time you received surprise service.
If you'd like to become a better sales coach (or help your managers to be effective coaches) call me at 323-854-1713 or email me at petercmclees@gmail.com
To your greater success,
Peter C. Mclees, Principal
Smart Development
We help sales reps and sales organizations accelerate their sales.
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