Archive for the ‘sales process’


5 Key Dreamforce Sessions and 3 Tips

5keyThere is a lot going on at Dreamforce. How do you choose which sessions to attend? This year there are many overlapping sessions, and conflicts between the keynotes and some fabulous breakout sessions.  It is not possible to cover everything, so you need to be judicious in your selections.

Tip: Remember that Salesforce make most of the keynotes available on YouTube very shortly after the event – so you will be able to catch up on these later.

 

My 5 Key Dreamforce Sessions for Sales Professionals

Tip: To get straight to these sessions in the Dreamforce Agenda Builder, first login to Dreamforce and then click on the title of the sessions here.

 

1. Sales Summit @ Dreamforce 2014: Mon 10/13 @ 10:00am

This is one mega event really. One day. Five sessions. Twelve of the world’s most respected sales minds. This promises to be one of the most educational (and entertaining) days at Dreamforce for sales executives. Bring your toughest questions. Walk away with answers — and a million new ideas on how your company can motivate sales teams and win more sales.

2.  How BMC Software Achieves Smart Sales Transformation: Wed 10/15 @ 8:30am

I am part of this session. BMC’s sales transformation story is amazing – a complete look at how to prepare a sales organization for our increasingly pressurized world.

3. Social Selling: A Live Conversation with Jill Rowley and Koka Sexton: Tue 10/14 @ 4:00pm

Two of my favorite social selling gurus, Jill and Koka think your sales team is on the brink of extinction! They will talk about the why, what and how to do Social Selling.  This session will not be boring!

4. How Salesforce.com uses Account Planning: Wed 10/15 @ 10:00am

If you use Salesforce, and you care about maximizing revenue from your key accounts this is the session to attend. I am thrilled to host two charismatic leaders from Salesforce.com to tell their story.  Everyone who attends this session also gets a free copy of Account Planning in Salesforce.

5. Triple Your Revenue With a Dedicated Sales Development Team: Wed 10/15 @ 2:00pm

There is a strong body of opinion on the rise of Inside Sales or Business Development.  This panel of 7 thought leaders in the area has a lot of insights to share.  Not to be missed.

 

3 Tips to Get The Best Out of Dreamforce

1. Attend the Early Sessions

Early sessions are better – energy level is higher and generally you get presenters who are at the top of their game.  Attend breakout sessions in the morning and visit the Cloud Expo in the afternoon.

2. Appropriate Clothing – Leave the Laptop

Ladies – leave the fancy shoes at home.  There will be a lot of walking. I am told that heels are a no-no. I wasn’t planning on wearing heels anyway :).

Ignore the forecast. It rains in San Francisco – so pack some light rain gear or a small foldable umbrella.

Don’t try to carry your laptop – it will get heavy really quickly. Ideally get a keyboard for your tablet, or carry an old-fashioned notebook and pen!

3. Be Social (Virtually and Physically)

There will be 125,000+ people at Dreamforce this year.  Connect on the Dreamforce app, or on Twitter or LinkedIn. There is a great opportunity to network.  Apart from the gala there are loads of parties – and they often fill up quickly – so pick the ones you want to attend and register.

 

 

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What Sales Managers Can Learn From The Music Business

music_industryThere’s a Jackson Browne song called These Days which he wrote at the tender age of sixteen. One of the lines in the song goes, “Don’t confront me with my failures; I have not forgotten them.” A sixteen-year-old wise beyond his years.

For those of you who are not old enough to remember Jackson Browne, he was a seminal influence in the ’60s and ’70s music movement that came out of Sunset Boulevard/Laurel Canyon, Los Angeles—where at the time you’d have found Frank Zappa, Crosby, Stills & Nash, Joni Mitchell, The Byrds, Jim Morrison, Eric Burdon, Neil Young, Orson Welles, The Rolling Stones…and in more recent times Slash, Red Hot Chili Peppers, and so on.

“Don’t confront me with my failures; I have not forgotten them.” I heard this song on the radio today and it reminded me of a conversation I heard about recently between a sales manager and his salesperson. It went something like this:

Manager: “You lost the deal!”

Salesperson: “Yes, I know.”

Manager: “You’re behind quota!”

Salesperson: “Yes, I know.”

Manager: “I can’t believe you lost the deal!”

Salesperson: “Suspending belief doesn’t help.”

Now, not a lot of progress there. Unfortunately, this conversation, or something similar, happens too frequently and, notwithstanding the personalities involved and the obvious absence of any semblance of mutual respect, it’s for one main reason: The only data the sales manager has is historical. He lives every day trying to predict the future based solely on lagging indicators, so the only conversation he can have with the sales person is a conversation too late. The deal was won, or it was lost—in which case the sales manager can only confront the salesperson with his failures—and as we see from the conversation above, that’s not much good.

But what if the sales manager (and the salesperson himself) had access to leading indicators and not just lagging indicators? What if he could look inside the salesperson’s pipeline and understand the true pipeline velocity, not just the number, size, or the deals? What if he had intelligent insight into the health of each deal? Would it help if he could gain foresight from automated analysis of past trends, usual sales cycles, “typical” deal-blockers, and areas of risk? Of course it would.

Then you would see uncommon productivity. The end of weekly sales calls as we know them. No more “Can you tell me what you did this week on the ACME opportunity?” Rather, a conversation that’s productive: “I can see we’re running in to a possible problem with that deal—here’s how I think I might be able to help, based on what I’ve seen work in other deals.” That’s when a sales manager can become a sales leader.

While there is no technological prosthetic for a broken relationship between a sales manager and his team, there are smart sales playbooks available today and collaborative tools that help plan effectively for sales calls to deliver measurably better sales results. You might consider how to apply them in your business so you don’t lag behind.

Incidentally, Jackson Browne was managed by David Geffen, who founded Asylum Records. Geffen never signed a contract with any of his acts and, according to him, none of them ever left him. He said his role was to be a buffer between his artists and the maelstrom of the music industry and to help the musicians in every way he could so that the artist could perform. Sounds like a good model for a sales leader to me.

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13 Things Marketers Need To Know About Sales

There are few distinct viewpoints in business that are as polarized as those of marketing and sales professionals. Marketing is glamorous, sales less so. Sales are measurable, marketing less so. The uneasy relationship between sales and marketing is widespread and infects almost all types of businesses.

The truth, of course, is that mutual respect and understanding, and a shared perspective, between the sales and marketing teams is essential if you want to be sure you have the right products to sell, the right marketing messages, and ability to call on their support when you need it. When that happens, uncommon sales velocity occurs, and more deals are won faster—and that’s a good thing.

So, from a salesperson’s perspective—here’s a list to consider.

  1. Selling is hard. Harder than you may ever realize. So if I seem stressed, cut me some slack.
  2. Selling is personal. When I make a promise I have to keep it. If you force me to break that promise (by changing processes, features or a rollout schedule) I will never forgive you.
  3. I’m trying to change people’s minds, one person at a time. So unless you give me a smart sales process to follow, I can’t tell you when the sale will close. (You need to follow the process as well—so then we will both know what works and what doesn’t.)
  4. I love selling. I particularly love selling great stuff, well marketed. Don’t let me down. Don’t ask me to sell lousy stuff, poorly packaged.
  5. I’m extremely focused on the reward half of the equation. Salespeople love to keep score, and that’s how I keep score. So don’t change the rules in the middle, please.
  6. There is no comparison, none, between an inbound call (one that you created with marketing) and a cold call (one that you instructed me to create with a phone book.) Your job is to make it so I never need to make a cold call.
  7. I need you to fill the top of the funnel—you know that. But your deal doesn’t stop there. I need marketing support to help move deals through the funnel.
  8. I know my job is to work my network and keep my customers happy so that I can find opportunities on my own as well.
  9. Sometimes customers lie when they turn me down. They make up reasons. But every once in awhile I actually learn something in the field. Ask!
  10. I know that sometimes you’d like to get rid of me and just take orders on the web. But that’s always going to be the low-hanging fruit. The game-changing sales, at least for now, come from real people interacting with real people. Here’s a short book about that.
  11. Selling is hard and unpredictable. But I also know that you’ve got to be prepared to measure and predict and plan. That means that I can’t keep what I’m doing a secret. I need to provide feedback to you.
  12. I also know that the two worst pieces of feedback I can give you—because neither is really actionable or especially effective—are a) lower the price, and b) make our products just like our competitors.
  13. When you work hard and deliver real opportunities to me, my job is to follow up promptly. Sometimes I don’t do that—sorry.

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Sales Metrics That Matter

The best sales professionals are constantly looking for help.  Winners are honest in their self-assessment of the skills and competencies – or at least as honest as they can be.

  1. Only 61% of sales reps think they are good at uncovering customer problems. Until they can do that they can’t know how to apply their solutions to help.
  2. Just over half (54%) know how to access Key Players in the buyer’s organizations. The Key Players are critical in the buying decision.
  3. 80% of sales reps think are good at qualification. But 51% of forecasted deals don’t close. Sellers who qualify effectively are 58% more likely to make quota.

Here’s an infographic based on some research we did.

Sales-Metrics-That-Matter-smallJ

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Battling the 57% – Part 3: Getting Ahead of the Curve

Much has been written about the research that suggests that a buyer is 57% through their buying process before they engage with a vendor. I have written about this how I think the ‘57%’ is sometimes misinterpreted. Sometimes buyers engage with you early, and sometimes the call you after they have done their own research. Strong patterns exist that correlate the level of awareness that a buyer has of a need to act as he rushes headlong to that 57% Point, directly with his propensity to buy something. That is really no surprise. The parallel pattern however is that his level of awareness is inversely proportional to your opportunity to create value. This is a vital opportunity to which every sales strategist should be paying attention and that’s because most effective selling happens before the buyer calls someone for a solution.

 

ACCOUNT PLANNING IS THE NEW MARKETING

Selling early means working in the areas traditionally assigned to marketing: raising awareness, generating interest, and being top of mind as the buyer develops a preference. Our way of expressing this mindset is “Account Planning is the new Marketing.”

Think about what good you can do for your customer early rather than waiting for them to call. This gives you an opportunity to apply account planning principles early and helps you deliver superior value.

Focus on creating, developing, pursuing, and winning business that delivers mutual value to you and your customer. If you can work on a project that’s good for the customer and good for you, it’s more likely to be non-competitive and less price sensitive. By delivering more value to your customer, you’ll improve your opportunity to succeed.

KNOW YOUR CUSTOMER

You need to have a deep understanding of your customer’s business problems and you need to know their people. Our surveys tell us that only 61% of salespeople think they’re good at uncovering their customer’s business problems, and only 54% of sales people believe that they know how to discover this key information. That’s a challenge that you must address and overcome to assure success. If you don’t understand the business problems and don’t know and understand the people, you’re unlikely to create value or make a sale.

SUMMARY

Every buying decision is subject to these four phases: (1) Awareness of need, (2) Interest in solving the problem, (3) Developing a preference for a solution, and (4) Deciding to make a purchase. You need to determine

if you acting before the buyer develops a preference or not? Whenever you can, act early to have a greater opportunity to create value. If you determine that you’re acting after the 57 percent point, you can still prevail if you qualify carefully and work from deep insight about the prospect’s business needs. Then, flank toward your strengths with unique business, target the people who can assist you – and win.

Please feel free to download our latest publication:

Battling the 57%: Deconstructing the Buyer Seller Dance.

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Battling the 57% – Part2: Flanking to Win

I have written before about the statistic that is out there ‘buyers have progressed 57% through their buying process before they engage a salesperson’ – is in fact an average and that how you act before and after ‘the 57%’ is a matter of choice, not a function of averages. It really comes down to whether you engage first with the buyer, or react to their engagement with you. In this post I will set out some guidelines on how you might react ‘after the 57% point’ if you find yourself in that situation.

Let’s first consider the whole spectrum of engagement – the Sales & Marketing Continuum.

57-2-smc620

For any purchase, the customer goes through a number of phases, beginning with Awareness. At this point, they learn that you and your product exist. This is followed by Interest where they care about what you (and others) have. The next phase is the critical one. This is where they establish Preference for a given solution or supplier.

When you overlay the 57 percent point on the Sales and Marketing Continuum, you can see that it lies at the critical juncture between Interest and Preference: If they’re already 57 percent through the decision process before they engage you, there’s a high probability that they’ve already established a preference.

57-2-smc2-620

Consider what happens if  you’re late to the game. If that is the case, you’re probably chasing a sale that will be hard to win. In this case how you respond is really important. At this point your competitor is probably in the lead and has been established as the preferred supplier. You need to shift the focus of the customer’s buying criteria to a new or additional issue — one that your solution will uniquely deliver. This is called a Flanking Strategy and can reset the conditions of the sale in your favor.

57-2-flanking620

There are four things to consider:

  1. Don’t follow the rules. (Your competitor is already winning under the current rules.)
  2. You need to have internal executive support. (You’re changing the game, and someone powerful must help.)
  3. Make your move last.
  4. Don’t open the door to alternative solutions.

However you can’t just arbitrarily adopt a Flanking strategy, you must also have the right conditions in place.

  1. A flanking strategy requires that you offer a solution with unique business value informed by genuine insight about the customer’s needs.
  2. The proposed solution must also favor your unique strengths.
  3. You are devising a specific benefit or value for the customer that your competitor can’t match.

Let’s look at some examples:

In the 1990s, Oracle and Siebel dominated the CRM market. In 1999, salesforce.com entered the field. Rather than asserting, “We’ve got a better CRM,” Salesforce focused attention on a new perceived value by stating that their approach of delivering enterprise software from the cloud would yield a 10X easier deployment cycle. They didn’t sell based on CRM features. Their proposition was that Salesforce was easier to use and easier to deploy – a benefit against which the others couldn’t compete: a unique business value that the customer cared about. Over the last fifteen years Salesforce used a flanking strategy flawlessly and changed the rules in a big way.

In our own case at The TAS Group, we also adopted a flanking strategy to introduce our solutions. We examined the business of sales training, methodology and effectiveness tools: $10 billion of expenditure every year. But research showed that on average 87 percent of that training was ineffective after thirty days: $8.7 billion wasted. Clearly, traditional approaches weren’t the most effective investment for improving sales team productivity. Our solution, Dealmaker – embedded decades of sales methodology in a smart, easy-to-use software application – uniquely helps companies to operationalize their sales effectiveness initiatives – for true, sustained sales transformation. Our flanking strategy was born of this insight and helped us establish a new market category: “How do you operationalize your sales effectiveness? What do you do when the sales trainer leaves?”

While customers have an ever-increasing opportunity to research their own solution before they engage with a supplier you have an opportunity to shape the subsequent interaction by helping them to learn what you want them to know.

Feel free to download The TAS Group’s latest publication, Battling the 57%: Deconstructing the Buyer Seller Dance or for a more detailed treatment of how to add value to your customers, check out the #1 Amazon Bestseller Account Planning in Salesforce.

 

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Battling the 57% – Buyers Buy Different Things

There’s a statistic out there that buyers have, on average, progressed 57% through their buying process before they engage a salesperson. That ‘average’ piece seems to have been lost, and a commonly held-belief now is that this 57% is a fact in all cases.

How you act before and after ‘the 57%’ is a matter of choice, not a function of averages. Buyers buy different things, and sellers sell differently. You get to choose. But first, let’s explore the differences.

As we researched this topic, we spoke to many of our great customers to see what they had observed. Here’s their buyer’s point of view.

  • Xerox sells many things, including copier paper. Copier paper is a commodity. As a buyer I don’t need a lot of advice. I’m going to buy frequently and only care that the price/quality is reasonable.
  • Hewlett-Packard provides most things an IT buyer might need, including a cool laptop called the HP Envy – a little more complex than my copier paper.
  • If I wanted a temperature control system in our building, Honeywell is the place to go. It’s a more specialized purchase than a laptop.  I am probably going to need guidance and advice.
  • Harmonic sells media controller systems that manage video workflows in some of the world’s largest and most demanding video environments. That’s not something I want to buy on my own. I’ll need some consultative advice.
  • Box provides enterprise online data sharing and large-scale content management services. Buyers want to engage strategically when determining their enterprise content strategy. It’s a big commitment.
  • If you are choosing Salesforce as your CRM, it is likely to have significant impact on your business. You know it is important to get some serious advice.

As evident from these examples, there is a lot of variability in how buyers need to engage before buy, so let’s look about how you might deconstruct that.

Organizational Impact is a Driver of Buyer Engagement

If you engage early with the buyers in their buying cycle you will be more successful.  That is a core tenet of my book Account Planning in Salesforce (free extract here). Being a buyer isn’t as easy as it might seem. Understanding and articulating their own needs and then finding the best solution can be a stressful exercise.  The greater the organizational impact, the more stressful it gets.  Buyers need help.

p2

The two axes on this graph are cost and intellectual property (IP) intensity.  As they increase, so does organizational impact. Buyers then need help in establishing criteria, evaluating options and choosing a solution. The engaged salesperson can create value for their customer and gain more control of the deal.

There are also two other factors that matter: risk and frequency. Organizational risk is higher when choosing a CRM system than it is when buying copier paper. The buyer performs greater diligence and needs more guidance. Also, greater frequency translates to greater familiarity and less need for help. I buy copier paper more often than I buy a temperature control system so I know how to make the copier paper purchase on my own.

p1

In the chart here you can see in the top right quadrant, our buyer is more likely to engage the supplier early, because a business process infrastructure project is usually high cost, contains a lot of IP value and a bad decision carries significant risk.

Conversely, there is less IP value in purchasing utilities (e.g. electricity). The difference when buying office equipment is even more striking; Cost, IP and Risk are typically low and Frequency is high, so buyers are less likely to need a seller to guide them.

Here’s the thing: If your solutions don’t fit into the bottom left quadrant, your buyers likely want to engage with you (or your your competitor) much earlier in their process, and there are many things you can do to influence the outcome.

In the next post, I’ll help you understand how to respond when the buyer is in fact well along the path to developing a buying preference. In the meantime, please feel free to download our latest publication Battling the 57%: Deconstructing the Buyer Seller Dance.

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Battling the 57%: From Sex to Romance – The Ultimate Flank

Don’t be put off by the title. This might not be what you expect.  And sometimes that’s the point.

There is a lot of nuance behind the 57% statistic – the CEB research that says buyers are 57% through their purchase cycle before they contact a supplier – and there are things you should do before, during, and after, the 57% point, if indeed this applies to your business.  (I promise I will get to the romance shortly.)

I think it is important to reflect on what the 57% really means and the limit of its impact. It is getting a little out of control. (I have organized a webinar on March 25 to dispute/clarify/de-bunk/resolve a few of the myths.)  What is obvious is that you want to be in a position where you can educate the customer before they get to the 57% point. But let’s say that your buyer has indeed progressed 57% through their buying process before they contact you.  What do you do?

If the buyer is 57% through the cycle, then they will most likely have a preference for someone. If it is you then you might have a short sales cycle. Perhaps their search has been truly unbiased and you are now part of a short-list. But if their preference is for a competitor, you will need to change the criteria they have used to get this far.  Redefining customers’ purchase criteria is one of the most powerful ways you can wrest leadership from a competitor.  In the TAS methodology we refer to this a Flanking Strategy – and that gets me to a story I read in the December 2013 issue of Harvard Business Review.

From Sex to Romance – The Ultimate Flank.

Pfizer launched Viagra (the erectile dysfunction drug) in April 1998, with a record 600,000 prescriptions in that month alone at a price of $10 per dose. Pfizer created an entirely new market on the basis of one key criterion of purchase: efficacy. The drug got the job done! By 2001 annual sales had reached $1.5 billion.

Not long after that Cialis entered the market. Whereas Viagra was effective for four to five hours, Cialis lasted up to 36 hours, making it potentially much more convenient for customers to use.

At the time, the key criteria that physicians considered when prescribing were efficacy and safety with a combined relative importance of 70%. Duration had a relative importance of 10%.

The marketing team behind Cialis decided to emphasize the benefits of duration—being able to choose a time for intimacy in a 36-hour window, and set the price higher than Viagra to underscore its superiority.  The new criterion of purchase – marketed as romance and intimacy rather than sex – caught on. A BusinessWeek article reporting on an early positioning study stated, “Viagra users who had been informed of the attributes of both drugs were given a stack of objects and asked to sort them into two groups, one for Viagra and the other for Cialis. Red lace teddies, stiletto-heeled shoes, and champagne glasses were assigned to Viagra, while fluffy bathrobes and down pillows belonged to Cialis. In 2012 Cialis passed Viagra’s $1.9 billion in annual sales, with duration supplanting efficacy as the key criterion of purchase.

Flanking – redefining customers’ purchase criteria – is one of the most powerful ways you can wrest leadership from a competitor; you will undoubtedly have a powerful competitor if you truly only enter the deal 57% of the way through the process. To flank successfully you need something to flank to (i.e. your competitive UBV that the customer cares about) and someone to flank with (i.e. a supporter with the buyer’s organization who will help you navigate the last 43%).

I will discuss this and ways to avoid the 57% trap altogether on the webinar. I would love if you can join the conversation.

 

 

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7 Principles for Successful Sales Leadership

One of the perks of my job is the interaction I am privileged to have with so many great sales leaders. During the beta phase for a new solution we just launched (to help sales managers understand the potential vulnerabilities in the sales performance of their teams), I had more intensive interaction than usual with a number of sales leaders.  Going beyond the challenges of the front-line sales manager, which is really the problem that Dealmaker Sales Performance Insight helps with, I was struck by some common principles that seem to be consistently applied by those sales leaders who are at the top of their game.  Here is my synthesis of those conversations.

1.    Lead with Purpose:  Your team cares less about what you are telling them to do, but more about why you are asking them to do it. With a shared understanding of where you are headed together, you can more easily collaborate and communicate.  If you can articulate a higher purpose than just hitting the targets – they know they have to do that without you telling them – they will understand the ‘why’ you are taking the direction you are taking, and that is always more powerful than the ‘what’.  When ‘why’ is understood, the team has a better chance of figuring out the ‘how’.

2.    Set High Standards – Hold Everyone Accountable:  Inspire your team to execute to the best of their ability – every time. Every single internal and external interaction matters.  It reflects on your values if you let poor practices develop without instant intervention. Slow response to a customer, casual email communication, bad manners to internal colleagues, poor quality proposals to customers, or arriving late or unprepared to a meeting, all let you (and the whole team) down.

3.    Write the Plays – and then Play them Right: Sales strategy is relatively easy. Constant execution and sales discipline is harder, and separate the great from the mediocre.  From business development through follow-up after the sale, the overall sales process (or go-to-market strategy) will contain milestones, trigger points, best practices, disciplines, and specific recommended tactics. Writes the plays, and then ensure that they are rigorously adopted, every day.

4.    Be the Role Model: As a sales leader you will undoubtedly have other things on your plate distracting from your core task. De-prioritize these time thieves.  Spend your time on exhibiting to your team how you are holding yourself accountable to the high standards that you have set.  Lead from the front. Execute your plays. Remember, you are in charge.

5.    Be Prepared to Rebuild: If you don’t have the team you need, you must be prepared to re-build. Always be recruiting and building a bench. Just like nurturing prospects for future business, the sales people that you want to hire are probably not immediately available the first time you connect with them. Start the conversation early.

6.    Prepare to Win: Winning doesn’t happen by accident. It usually happens when you are better prepared than your competitor.  Methodology helps, but systematic planning will equip you to deal with situations that arise without warning.  Deal reviews, account plans, sales process refinement, smart sales software, are tools you might use. Once the game starts they are usually on their own and it is then too late to help your team.  You need to prepare them in advance to win.

7.    Embrace Change Methodically:  The business world continues to evolve. Buyers change. New competitors emerge. Economic stability fluctuates.  Responding to change is never easy – particularly when things are already going well. When things are going badly you might feel the need to press the restart button. In either case you must accept two constants; (1) you need to make this quarter’s number working with what you have today and (2) what you have today will need to change just in time to serve your needs tomorrow.

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What to do when “No Decision” is not in the customer’s best interest

I have written before about the only two reasons that you lose a sale;

  1. You should not have been there (chasing this particular opportunity), or
  2. You were outsold.

I know I have fallen at both of those hurdles.  Sometimes being outsold means you lost to the dreaded No Decision.  In fact according a report I read from CSO Insights this is happening 26% of the time. Ouch!

Now in most cases when the customer is making No Decision they are in fact making the right decision. They will have objectively evaluated the project, and decided that this particular project did not reach the required threshold of return, or was not as important as another more pressing initiatives.

But in some cases they are just afraid, and No Decision is taking the easy way out.  This No Decision will often be accompanied by phrases like; “I don’t think we have the right team in place to implement this project now”, “We need to learn to walk before we can run”, “I’m not sure the team is ready to embrace this amount of change.” In truth they are just afraid.

They might be afraid of making an investment for which they will be held accountable. They might be afraid of something that is new. They might be afraid of change. They might be afraid of upsetting the status quo lest it might threaten their own status.

In these cases they are not in fact making No Decision, they are making a decision not to fix a problem that is broken. They are taking cover in the status quo where they are less likely to be seen as the instigator of something that went wrong. Sometimes that is a consequence of organizational culture – and in other cases it is  individual responsibility being abbrogated, denied, or ignored. But, is it your job to tell them?

I’ve written before that ‘A bad buying decision usually has a greater impact on the customer than a lost sale has on the salesperson’.  I believe that to be true, and I further believe that it is the sales person’s responsibility to tell the customer if they think the customer is making a bad buying decision. It is part of delivering on the trust that you’ve tried to earn.

In all of this post I have assumed that there was a real problem that the customer wanted to fix, the issues were identified, you were speaking the people who had the power to make the decision, and you had developed a joint vision of the desired end-state.  Then the customer got cold feet.

But how do you tell the No Decision customer that they have made the wrong decision – without it appearing as mere sour grapes, or that all you care about is selling them your solution?

  • First, be honest to yourself and about yourself. Acknowledge that you have failed to provide enough evidence to the customer to make them comfortable to make a positive decision.
  • Second, restate the problem you think the customer was trying to solve and the impact of No Decision
  • Third, withdraw from the sale, pointing out that this maybe the impetus for the customer to act (and maybe buy from your competitor.)   This is in the best interests of the customer. Maybe you’ve nothing to lose anyway, but that’s not the point. The point is that you must maintain your integrity.Your initial contract with the customer prospect was to help them solve their business problem.  That’s where you started and that’s where you should finish.

You have two other alternatives to this approach. (1) You can do nothing except walk away and lick your wounds. That serves neither party well, or (2) You can seek other (perhaps more senior) people in the organization who will reverse the No Decision made by your contact – but that’s the subject of another post.

I’d love to hear your thoughts. This is not a simple question.

 

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