Two products that some may say independently epitomise America and Britain are chewing gum and tea. These two items have played a role in dramatically changing our lives.
Not because the Americans are known for chewing gum and the Britain's are known for drinking tea, but those two products have represented their countries in being the very first to wear a barcode.
When Andrew Melrose chose to sell tea for a living, did he know what landmarks he would bequeath? In 1833 Melrose's became the first company to legally land tea independently of the East Indies Trading Co. William Wrigley only went into the chewing gum business after discovering that the gum he gave away as an incentive to buy his father's soap was more popular with customers than the soap itself.
Was it choice or circumstance that chewing gum pieces in the USA and tea in the UK would be the first to start the Epos industry rolling?
In the UK we have nothing left to celebrate this great achievement. The keymarkets supermarket in Spalding, Lincolnshire was absorbed by another giant in the 80's, the identity of the would-be famous shopper who bought those teabags is unknown as is the fate of that first bar-coded box of tea bags. The person who used the barcode scanner is also unknown.
However, the packet of Wrigley's chewing gum that was the first American product to be barcoded and scanned in June 26, 1974, at Marsh's supermarket in Troy, Ohio - now proudly sits in the Smithsonian Museum alongside other objects of distinction such as the Hope diamond. The customer is known as Clyde Dawson and Sharon Buchanan (now retired) was the cashier who made the first UPC scan.
We don't know why the Keymarkets store in Spalding (UK) was chosen or whether it was a blanket operation and it just happened to be the branch that used the scanner first. Surely they would have used the Boston branch for their tea party?
We do know that the Troy store was specifically chosen because of its close proximity to the Dayton based NCR Corporation, the designers of checkout counter.
Three decades later, let's look at some comparisons. The actual scanner used was from PSC Inc., and at the time cost $4,000 (the entire check-out counter cost $10,000). These days, scanners cost a fraction of that, we can buy a CCD reader for £55.00 ...a far cry from $4,000.
The box of tea bags at the time didn't have a factory-applied barcode, Keymarkets shop workers stuck the barcode labels on products before they were put on the shop shelves ready for customers to buy. Because Keymarkets no longer exist, we can look at the other giants; J. Sainsbury, for example, operated 201 stores in 1975. Today it has 735 and the vast majority of those have at least double the floor space of those mid-70s stores. At that time grocers only stocked a couple of thousand or so product lines at the most. Simply because of the logistics in putting price stickers on all those products allbeit boxes, packets, bags, bottles or cans, the intellectual load on staff who had to know how much each individual product cost and also because of margins for error made this an impossible and expensive task.
Despite the fact that the price of barcode scanners and barcode reading equipment has plummeted, the 1970s UK inflation peaked at 28%, now it hovers around the 2% mark. Prices are bound to go down when almost every shop and store in the modern world uses them. Bulk buying and mass production aside, technology has enhanced reliability.
CCD readers are the most popular type of bar code reader for low to medium use. No moving parts means a high level of reliability and robustness. Unlike the bar code wand/pen reader which has to be 'swiped' across the code, the CCD remains still during scanning - the scanner normally being activated by depressing the button/trigger.
The limiting factor to the type of code you may scan with this sort of reader is the physical width of the read head - either 65mm or 90mm. If you need to scan a code wider than 90mm, you need to specify either a Linear Imager or a Laser Scanner.
How is it used....?
The read head is placed on the bar code and the trigger depressed. The reader connects to your computer via either PS2 keyboard wedge, RS232 serial interface or via USB
Was the barcode invented just to assist the retail industry? Are bar code systems strictly for big business or can a small or medium sized business or service centre adopt bar code systems to streamline operations, increase profit and save money? Are the Mac or Windows suitable platforms for bar code based data collection and control?
In 1959 David J. Collins earned his master's degree and went to work for the Syvania Corporation, whilst they were researching military applications for computers, Collins had his mind on a new venture. He had previously worked for The Pennsyvania Railroad and knew that there was an urgent need to create a system that could identify, track and handle the gathered information relating to the movement of freight cars. A coded label seemed to be the cheapest solution. Instead of being black and white, labels were orange and blue.
The system worked and it pushed Collins to look at other applications. In 1967 he approached his bosses at Synania and said that he wanted to develop a black and white version for conveyor control and just about everything that moves. The bosses refused to invest in the idea because they felt they had a massive market already. Collins was adamant that the future was in the black and white bar codes and resigned, he co-founded Computer Identics Corporation.
Whilst Sylvania never made any money from their system and suffered during the recession, Computer Identics Corporation truly prospered. It used laser ( Light Amplification by Stimulated Emission of Radiation ) as opposed to a milliwatt helium-neon beam used by others. The fine red stripe was absorbed by the black bars and reflected by the white. The great advantage was that lasers could read the codes several feet away from many different angles and still read damaged labels, useful for warehouse, point of sale and many other applications. .
Modern cost effective hand held barcode laser scanners
Older types of laser scanner had spinning mirrors and prisms and were rather prone to damage if handled roughly. Modern devices have cut down on the amount of moving parts and so are much more reliable. Many such scanners now carry 2, 3 and 5 year warranties.
There are a number of substances which 'Lase'. Modern laser devices such as these, are based on a semiconductor which is excited by a current which then emits light of a single wavelength (normally red) which is then focused. Many household appliances such as computer printers, CD and DVD players, now utilise the unique properties of Lasers.
Friday, February 9, 2007
Citizen Watches
Citizen Watch Company is a watch brand that was established in 1924. The men who established the company chose Citizen as the name so that it would be easily recognizable to people everywhere. Citizen has become a world wide company in the last seventy-five years and is now recognized as a global brand. Every year since the year 1986 Citizen has been recognized as the largest watchmaker in the world. Citizen is also recognized for the innovative technology that they use to make Citizen watches. Citizen has been first for many types of watches. They were the first to create the world’s slimmest LCD. They had the first voice recognition watch. The Citizen dive watches were the first to have an electronic depth sensor. New to Citizen watches is the Eco-Drive collection, which is ecologically friendly. Eco-Drive watches are powered by light rather than a battery.
Citizen Watch Company is accessible a few different ways. You can access their website. Their website has a section that tells about the company. It also allows you to shop for watches. When you shop on the website for watches you can do specific searches. For example, you can search for ladies Citizen watches in $201 to $300 range. You can also do a search for Citizen watches by keyword. The website also includes links for press releases, a store locator, my favorites, corporate gifts and technical support. The store locator link will help you find the nearest Citizen Watch Company store. The My Favorites link lets you keep a list of your favorite watches so that you can easily find them again. The corporate gifts link shows you a watch to give as a gift from your corporation to an employee. The technical support link gives you information regarding setting your Citizen watch, recharging guides, FAQs, and Service information. You can also go into one of their stores. A third way you can access Citizen Watch Company is to call them.
Citizen Watch Company makes watches for men and women. They make every kind of watch you can think of. There are Citizen dress watches. There are Citizen diving watches. You can find Citizen sport watches. There is a wide range in the price of Citizen watches online. They start at about $135 and go up to $700. If you are interested in purchasing a Citizen watch you should shop around. Citizen retailers are all over the world. If you prefer to shop on the internet, then you can find discounted Citizen watches if you do an internet search, rather than paying full price through the Citizen website. If you purchase a Citizen watch online make sure you are doing so through a reputable dealer. Also make sure that the payment gateways are safe. You will want to be sure that you check into the price and guarantee to make sure they are not hiding anything from you. It might be helpful to ask around and order from a site that people you know have ordered from and had success with previously.
Citizen Watch Company is accessible a few different ways. You can access their website. Their website has a section that tells about the company. It also allows you to shop for watches. When you shop on the website for watches you can do specific searches. For example, you can search for ladies Citizen watches in $201 to $300 range. You can also do a search for Citizen watches by keyword. The website also includes links for press releases, a store locator, my favorites, corporate gifts and technical support. The store locator link will help you find the nearest Citizen Watch Company store. The My Favorites link lets you keep a list of your favorite watches so that you can easily find them again. The corporate gifts link shows you a watch to give as a gift from your corporation to an employee. The technical support link gives you information regarding setting your Citizen watch, recharging guides, FAQs, and Service information. You can also go into one of their stores. A third way you can access Citizen Watch Company is to call them.
Citizen Watch Company makes watches for men and women. They make every kind of watch you can think of. There are Citizen dress watches. There are Citizen diving watches. You can find Citizen sport watches. There is a wide range in the price of Citizen watches online. They start at about $135 and go up to $700. If you are interested in purchasing a Citizen watch you should shop around. Citizen retailers are all over the world. If you prefer to shop on the internet, then you can find discounted Citizen watches if you do an internet search, rather than paying full price through the Citizen website. If you purchase a Citizen watch online make sure you are doing so through a reputable dealer. Also make sure that the payment gateways are safe. You will want to be sure that you check into the price and guarantee to make sure they are not hiding anything from you. It might be helpful to ask around and order from a site that people you know have ordered from and had success with previously.
Sub Prime Internet Mortgage Leads
If you are a loan officer or mortgage broker looking for sub prime internet mortgage leads. Look for a lead provider that allows for you to view the lead before you buy it.
Also, look for lead providers that gather information that is important to loan officers looking for sub prime leads. For example, when working with sub prime customers, you want to have leads that offer a comment section so that you can get a good idea of what the customers needs are and you can than base your decision to buy the lead based on this information.
Lets say you call a prospect and they tell you that the bank has already begun the foreclosure process. Chances are, this is a dead lead for you.
Now, if you have the opportunity to view the lead before you purchase it and you can see what comments the prospect has made on the lead and they stated that they were heading into foreclosure, you probably never would have bought the lead to begin with if you did not specialize in foreclosures.
Take the time to research the internet lead providers that are out there. There are many, so take your time.
Here are a few things you can look for.
Where does the internet provider obtain their leads from?
Make sure the lead company that you are considering obtain their own leads. By this I mean, make sure they obtain them through lead generation web sites they own and operate on their own.
Steer clear of the mortgage lead companies that are recycling their leads or are purchasing their leads from third party vendors than selling them to loan officers at a profit.
You don’t want to call a customer and have them tell you that you are the tenth person to call them this week.
Also, make sure you speak with someone in customer service. It is always good to know that there is someone to speak with in the event you need some assistance or you are looking for a refund on a bad lead.
And remember, the type of customer service you are provided with should be a clear-cut indication of the quality of the leads you receive.
Also, look for lead providers that gather information that is important to loan officers looking for sub prime leads. For example, when working with sub prime customers, you want to have leads that offer a comment section so that you can get a good idea of what the customers needs are and you can than base your decision to buy the lead based on this information.
Lets say you call a prospect and they tell you that the bank has already begun the foreclosure process. Chances are, this is a dead lead for you.
Now, if you have the opportunity to view the lead before you purchase it and you can see what comments the prospect has made on the lead and they stated that they were heading into foreclosure, you probably never would have bought the lead to begin with if you did not specialize in foreclosures.
Take the time to research the internet lead providers that are out there. There are many, so take your time.
Here are a few things you can look for.
Where does the internet provider obtain their leads from?
Make sure the lead company that you are considering obtain their own leads. By this I mean, make sure they obtain them through lead generation web sites they own and operate on their own.
Steer clear of the mortgage lead companies that are recycling their leads or are purchasing their leads from third party vendors than selling them to loan officers at a profit.
You don’t want to call a customer and have them tell you that you are the tenth person to call them this week.
Also, make sure you speak with someone in customer service. It is always good to know that there is someone to speak with in the event you need some assistance or you are looking for a refund on a bad lead.
And remember, the type of customer service you are provided with should be a clear-cut indication of the quality of the leads you receive.
Sunday, January 21, 2007
Be a Successful Salesperson in Five Steps
Want to get your business or career into high gear? Look first at the top line on a profit and loss statement - revenue is the engine that drives all businesses. What's the best way to add value and increase revenue? Needs satisfaction sales techniques.
Many people think of sales as a dark art or as something that's practiced by con artists. Done properly, sales is nothing of the sort - it's merely a process. Like a carpenter building a house, a needs satisfaction salesperson uses a step by step process to satisfy customer needs. Far from a con job, it's a needed and helpful customer service.
Every time we come into contact with a customer we are selling. Follow the below steps to help customers and get your business into high gear.
Step 1. Qualify
Find out whether or not you are dealing with a customer. A "customer" can be defined as someone who does or may need or want your product and who has the immediate ability to purchase it.
When first dealing with a customer, qualify yourself. Explain to the customer why you are an expert in your product line. Tell them that you want to find out about their purchase so that you may use your expertise to help them.
Step 2. Profile
Gain as much information as possible about the customer and their needs and wants. Find out the who, what, where, when and why of their purchase decision. Ask as many questions as are reasonable in the context of the product or service that you are selling.
Generally, the larger the purchase the more complete the purchase profile. Attempting to sell a shirt with the detailed profile required to sell a nuclear power plant will have your customer searching for the nearest exit. In the reverse, your customer will question your ability and the legitimacy of your company.
Step 3 Demonstrate and Gain Agreement
Using the information gained in (and, in many instances, as part of) step two, interact with the customer to demonstrate how your product meets their needs. If they are looking for a blue shirt, show them blue shirts and ask which shade of blue they had in mind. As you propose solutions ("is this right shade of blue?") and the customer chooses from among them, you are accomplishing step 4.
Step 4. Finalize - the "C" word.
Closing a sale is not an event, it is a part of the process. Presuming that (a) you've identified your customers needs and wants and (b) your product or service meets those needs and wants, closing a sale is the natural outcome of your contact with the customer. If a customer describes a shirt that they wish to purchase and they've agreed that the shirt in your hand is that which they've described, the sale is closed except for the paperwork.
Step 5. Overcome Objections
If at any point the above process stalls or stops, it is what's termed "an objection" which is usually a communications failure. Except in relatively rare instances of a "hard" (insurmountable) objection, either you've misunderstood or you've been misunderstood at some point in the process.
While we'll leave specific techniques for overcoming objections for a future article, in general objections are overcome with more or better information. Find out as much as possible about the objection (profile it); from that information determine where the communications failure lies and correct it.
Sales is a key component of any successful business. Learning and practicing needs satisfaction sales techniques can make the sales process as enjoyable as it is profitable.
Many people think of sales as a dark art or as something that's practiced by con artists. Done properly, sales is nothing of the sort - it's merely a process. Like a carpenter building a house, a needs satisfaction salesperson uses a step by step process to satisfy customer needs. Far from a con job, it's a needed and helpful customer service.
Every time we come into contact with a customer we are selling. Follow the below steps to help customers and get your business into high gear.
Step 1. Qualify
Find out whether or not you are dealing with a customer. A "customer" can be defined as someone who does or may need or want your product and who has the immediate ability to purchase it.
When first dealing with a customer, qualify yourself. Explain to the customer why you are an expert in your product line. Tell them that you want to find out about their purchase so that you may use your expertise to help them.
Step 2. Profile
Gain as much information as possible about the customer and their needs and wants. Find out the who, what, where, when and why of their purchase decision. Ask as many questions as are reasonable in the context of the product or service that you are selling.
Generally, the larger the purchase the more complete the purchase profile. Attempting to sell a shirt with the detailed profile required to sell a nuclear power plant will have your customer searching for the nearest exit. In the reverse, your customer will question your ability and the legitimacy of your company.
Step 3 Demonstrate and Gain Agreement
Using the information gained in (and, in many instances, as part of) step two, interact with the customer to demonstrate how your product meets their needs. If they are looking for a blue shirt, show them blue shirts and ask which shade of blue they had in mind. As you propose solutions ("is this right shade of blue?") and the customer chooses from among them, you are accomplishing step 4.
Step 4. Finalize - the "C" word.
Closing a sale is not an event, it is a part of the process. Presuming that (a) you've identified your customers needs and wants and (b) your product or service meets those needs and wants, closing a sale is the natural outcome of your contact with the customer. If a customer describes a shirt that they wish to purchase and they've agreed that the shirt in your hand is that which they've described, the sale is closed except for the paperwork.
Step 5. Overcome Objections
If at any point the above process stalls or stops, it is what's termed "an objection" which is usually a communications failure. Except in relatively rare instances of a "hard" (insurmountable) objection, either you've misunderstood or you've been misunderstood at some point in the process.
While we'll leave specific techniques for overcoming objections for a future article, in general objections are overcome with more or better information. Find out as much as possible about the objection (profile it); from that information determine where the communications failure lies and correct it.
Sales is a key component of any successful business. Learning and practicing needs satisfaction sales techniques can make the sales process as enjoyable as it is profitable.
We Sell Like We Buy - The Ying and Yang of Sales
Those of us who work with sales organizations, especially with senior leaders, have an interesting vantage point of the ritual of sales, and how it unfolds in different organizations. From this perch we get to see these people in both “buying” and “selling” mode, and with that it has become very clear that with few exceptions, these leaders and their respective sales organizations sell very much like they buy.
This is no surprise as in most cases the nature and character of the whole sales organization is a reflection and extension of the VP of sales. After all they set the tone and direction, forming the foundation on which the culture of the organization is built. This can lead to both positive and negative consequences on their teams’ performance and success.
For example, I recently worked with a company that is a leader in their field, a provider of precision technology; six figure deals with six month cycles. The VP of Sales was looking to help his team maintain and improve their edge and increase their ability to engage and sell executives. He had worked with a number of sales improvement firms in the past and was keen to expand his teams’ knowledge and ability.
From the start, he was very clear as to how he was going to evaluate the providers he was talking with; what his key drivers were, how he would weigh and measure things; what he was willing to invest; what his must and nice to haves were. He was clear on his timelines for exploring, evaluating, deciding and committing. In hind site, when he did sign, he had very effectively executed his “buying process”. And it was no surprise that his team executed their clearly defined “sales process” consistently and efficiently. They were keen to improve, and worked hard to include the new methodology our program delivered. In fact this is the key reality behind why people DO sell like they buy. Many “sellers” do not have a “buying process”, many are not aware of the buyers’ process and its role in the sale. Some are not even cognizant that the important process at play is not their own “sales process”.
This is a common problem; many sales organizations pay only lip service to the prospects’ “buying process”. A study of information management product buyers, showed sellers are more often than not out of synch with their prospects’ buying process, timelines, decision criteria, etc. This is because most Sales VP’s do not have a buying process for their purchases, and therefore do not focus on its importance when they lead their teams. As a result, most are terrible buyers. I worked with another VP, nice guy, but terrible buyer; not terrible because he didn’t buy from me, he did! Terrible because of the way he went about buying. Unable to meet deadlines, constantly shifting priorities, procrastinating and hesitating throughout. Funny, because when he called us; he was concerned about the length of his teams sales cycles, he believed his people were letting the cycle linger, and lacked focus when they executed the “sales process”.
Another VP I met with last summer, a technology company; top quadrant in a crowded field, not quite a commodity play, but they were being challenged. They were experiencing difficulties acquiring, growing and maintaining clients. As you would expect they have a “sales process”. As is often the case, all the talk about the sales process was never balanced by an awareness or focus on the clients’ “buying process”.
When she was describing her challenge she knew what was “wrong”, she explained:
* Average deal was size $32,800, this was usually about 78% of list price
* Her staff is able to get the small revenue - - small margin deals, but is challenged as the deals get larger.
* Deals under $28,000 they were closing 56% of proposals, at between 80% - 85% originally proposed (list) price.
* Deals over $45,000, they were closing only 17% of proposals, and a great many of those at 60% - 65% of original proposed price.
* They were challenged calling the right people, high within companies in the target base.
* While they were seeing growth, year over year it was slower than their segment which was impacting market share.
When she first took the appointment she told me she has been working with a known global provider to achieve her sales training goals. She went to great length to reiterate this when we met; her current provider was “helping her achieve what they needed to once they were in front of a prospect”. This seemed to be at odds with the facts and stats she laid out a few minutes before. She did however acknowledge that her team could benefit from more meeting with real decision makers higher in their client/prospect organizations. Based on the way we cold called her, agreed to let us interview her team to gain a solid understanding of the “ground truth” as a basis for a proposal for a prospecting regiment program.
She did like the program we presented, but right away informed us that the price was too high. I asked what had led her to that conclusion, she told me the other provider was charging half the price, and since they were a “global leader”, our price must be out of whack.
We discussed the team’s results, her awareness that the team was not engaging either with the right people or in sufficient numbers, and while her team has been reduced to price selling, a bigger challenge was the fact that they could not consistently even get in the game to be able to present a price that they would ultimately cut to get the deal. Still she could not get past the price.
Let’s give this some perspective, the cost of the program for the team of 11 reps was less than one new sale; in terms of net margin, just under two additional new sales. (We are talking by the whole team, not each!)
This type of scenario is not uncommon; just speak to anyone who regularly sells to heads of sales organizations. I have heard this from CRM, lead generators, and recruitment professionals. No clear buying process is a clear indicator of a team that has problems with their sales process and related activities.
The real damage here is to her team, not because they are not getting the training they need, not because the training they are getting is a CYA exercise delivered by a “global leader” (full coverage). The real damage is the message it sends to her team, and the resulting culture it produces.
When she was evaluating our proposal, she started and ended with price. She acknowledged the worth of the program; recognized that reference companies we provided had successfully implemented the program, and are now consistently finding and converting sufficient prospects to grow both top and bottom lines. Yet her focus was strictly price; we offered to tie aspects of compensation to specific metrics, but no, she wanted a discount. Sounds a lot like the way her team sells!
What do you think her team is thinking?
The not so subtle message is you can’t beat the status quo unless you discount. While “we talk value, but we buy on price” must be the way everyone buys. “You can discount unconditionally, without reciprocal concessions from the prospect”. Their “sales process” drives this, and the lack of a “buying process” reinforces it. Of course she, like many, would deny that this is the case, and would never articulate in such terms to the team. But it is clear their culture is one of aim low and discount higher. The team sees this in action every time their VP does anything; she says one thing and acts another.
These are but some examples, but over the years the trend is clear and unfailing, they sell the way they buy.
We can predict early in the game as to how things will unfold by asking and understanding early how they went about buying things in the past. Other training, CRM, incentive management systems, what have you. Their answer to those questions gives us immediate insight to how the sale is likely to unfold.
Time after time it has been confirmed to us that if your sales leader does not have a proper understanding of it’s own “buying process”, that is how decisions are made, why, and how they will measure the impact, then we will have to work much harder to earn our money. Not only because the cycle is likely to be longer and harder, but more importantly changing their culture and behavior of the team, the managers, and the VP, will require much more work if we are to make that change lasting. The reason for that is we have to change the way they sell because of the way they buy.
On the other hand if they have a clear methodology for evaluating, buying and measuring their acquisitions, we have a much easier time selling and delivering quality and value. No matter how rigid the system, if it is clear and logical it makes our task easier, both to sell and at times disqualify the opportunity. And as stated above their teams are generally much better to work with, this is equally true in high end solution sales teams or teams selling commodity goods. Sales leaders spend a lot of time “talking” about the “sales process”, the steps needed to build a proper sale, but then undermine their message with their actions. “Results at any cost, more results at a discounted cost”.
Unless these leaders change and come to understand how to “buy”, they will always have a challenge selling. Until they understand the art of “buying” they will continue to make their job and that of their reps more difficult than it has to be. It is the Ying Yang of sales: You sell the way you buy, and you cannot succeed at one without succeeding at the other!
Tibor Shanto, is a Principal with Renbor Sales Solutions Inc., Renbor Sales Solutions Inc. enables companies achieve sustained growth, by focusing on critical aspects of revenue growth. By recognizing that an outstanding sales force is THE differentiator in today’s environment, our clients with our help, focus on the development of both strategic and tactical initiatives to foster a winning team that will out think, out sell and out perform competitors while consistently gaining market share.
Renbor’s Objective Based Selling (OBS) is a structured approach to delivering ongoing results and improvement by focusing the entire sales organization on a key set of objectives. The overarching objective for any sales organization is to achieve exceptional and sustainable revenue growth. This is accomplished by creating a culture of sales excellence built around the principles and processes adopted by world-class sales organizations.
This is no surprise as in most cases the nature and character of the whole sales organization is a reflection and extension of the VP of sales. After all they set the tone and direction, forming the foundation on which the culture of the organization is built. This can lead to both positive and negative consequences on their teams’ performance and success.
For example, I recently worked with a company that is a leader in their field, a provider of precision technology; six figure deals with six month cycles. The VP of Sales was looking to help his team maintain and improve their edge and increase their ability to engage and sell executives. He had worked with a number of sales improvement firms in the past and was keen to expand his teams’ knowledge and ability.
From the start, he was very clear as to how he was going to evaluate the providers he was talking with; what his key drivers were, how he would weigh and measure things; what he was willing to invest; what his must and nice to haves were. He was clear on his timelines for exploring, evaluating, deciding and committing. In hind site, when he did sign, he had very effectively executed his “buying process”. And it was no surprise that his team executed their clearly defined “sales process” consistently and efficiently. They were keen to improve, and worked hard to include the new methodology our program delivered. In fact this is the key reality behind why people DO sell like they buy. Many “sellers” do not have a “buying process”, many are not aware of the buyers’ process and its role in the sale. Some are not even cognizant that the important process at play is not their own “sales process”.
This is a common problem; many sales organizations pay only lip service to the prospects’ “buying process”. A study of information management product buyers, showed sellers are more often than not out of synch with their prospects’ buying process, timelines, decision criteria, etc. This is because most Sales VP’s do not have a buying process for their purchases, and therefore do not focus on its importance when they lead their teams. As a result, most are terrible buyers. I worked with another VP, nice guy, but terrible buyer; not terrible because he didn’t buy from me, he did! Terrible because of the way he went about buying. Unable to meet deadlines, constantly shifting priorities, procrastinating and hesitating throughout. Funny, because when he called us; he was concerned about the length of his teams sales cycles, he believed his people were letting the cycle linger, and lacked focus when they executed the “sales process”.
Another VP I met with last summer, a technology company; top quadrant in a crowded field, not quite a commodity play, but they were being challenged. They were experiencing difficulties acquiring, growing and maintaining clients. As you would expect they have a “sales process”. As is often the case, all the talk about the sales process was never balanced by an awareness or focus on the clients’ “buying process”.
When she was describing her challenge she knew what was “wrong”, she explained:
* Average deal was size $32,800, this was usually about 78% of list price
* Her staff is able to get the small revenue - - small margin deals, but is challenged as the deals get larger.
* Deals under $28,000 they were closing 56% of proposals, at between 80% - 85% originally proposed (list) price.
* Deals over $45,000, they were closing only 17% of proposals, and a great many of those at 60% - 65% of original proposed price.
* They were challenged calling the right people, high within companies in the target base.
* While they were seeing growth, year over year it was slower than their segment which was impacting market share.
When she first took the appointment she told me she has been working with a known global provider to achieve her sales training goals. She went to great length to reiterate this when we met; her current provider was “helping her achieve what they needed to once they were in front of a prospect”. This seemed to be at odds with the facts and stats she laid out a few minutes before. She did however acknowledge that her team could benefit from more meeting with real decision makers higher in their client/prospect organizations. Based on the way we cold called her, agreed to let us interview her team to gain a solid understanding of the “ground truth” as a basis for a proposal for a prospecting regiment program.
She did like the program we presented, but right away informed us that the price was too high. I asked what had led her to that conclusion, she told me the other provider was charging half the price, and since they were a “global leader”, our price must be out of whack.
We discussed the team’s results, her awareness that the team was not engaging either with the right people or in sufficient numbers, and while her team has been reduced to price selling, a bigger challenge was the fact that they could not consistently even get in the game to be able to present a price that they would ultimately cut to get the deal. Still she could not get past the price.
Let’s give this some perspective, the cost of the program for the team of 11 reps was less than one new sale; in terms of net margin, just under two additional new sales. (We are talking by the whole team, not each!)
This type of scenario is not uncommon; just speak to anyone who regularly sells to heads of sales organizations. I have heard this from CRM, lead generators, and recruitment professionals. No clear buying process is a clear indicator of a team that has problems with their sales process and related activities.
The real damage here is to her team, not because they are not getting the training they need, not because the training they are getting is a CYA exercise delivered by a “global leader” (full coverage). The real damage is the message it sends to her team, and the resulting culture it produces.
When she was evaluating our proposal, she started and ended with price. She acknowledged the worth of the program; recognized that reference companies we provided had successfully implemented the program, and are now consistently finding and converting sufficient prospects to grow both top and bottom lines. Yet her focus was strictly price; we offered to tie aspects of compensation to specific metrics, but no, she wanted a discount. Sounds a lot like the way her team sells!
What do you think her team is thinking?
The not so subtle message is you can’t beat the status quo unless you discount. While “we talk value, but we buy on price” must be the way everyone buys. “You can discount unconditionally, without reciprocal concessions from the prospect”. Their “sales process” drives this, and the lack of a “buying process” reinforces it. Of course she, like many, would deny that this is the case, and would never articulate in such terms to the team. But it is clear their culture is one of aim low and discount higher. The team sees this in action every time their VP does anything; she says one thing and acts another.
These are but some examples, but over the years the trend is clear and unfailing, they sell the way they buy.
We can predict early in the game as to how things will unfold by asking and understanding early how they went about buying things in the past. Other training, CRM, incentive management systems, what have you. Their answer to those questions gives us immediate insight to how the sale is likely to unfold.
Time after time it has been confirmed to us that if your sales leader does not have a proper understanding of it’s own “buying process”, that is how decisions are made, why, and how they will measure the impact, then we will have to work much harder to earn our money. Not only because the cycle is likely to be longer and harder, but more importantly changing their culture and behavior of the team, the managers, and the VP, will require much more work if we are to make that change lasting. The reason for that is we have to change the way they sell because of the way they buy.
On the other hand if they have a clear methodology for evaluating, buying and measuring their acquisitions, we have a much easier time selling and delivering quality and value. No matter how rigid the system, if it is clear and logical it makes our task easier, both to sell and at times disqualify the opportunity. And as stated above their teams are generally much better to work with, this is equally true in high end solution sales teams or teams selling commodity goods. Sales leaders spend a lot of time “talking” about the “sales process”, the steps needed to build a proper sale, but then undermine their message with their actions. “Results at any cost, more results at a discounted cost”.
Unless these leaders change and come to understand how to “buy”, they will always have a challenge selling. Until they understand the art of “buying” they will continue to make their job and that of their reps more difficult than it has to be. It is the Ying Yang of sales: You sell the way you buy, and you cannot succeed at one without succeeding at the other!
Tibor Shanto, is a Principal with Renbor Sales Solutions Inc., Renbor Sales Solutions Inc. enables companies achieve sustained growth, by focusing on critical aspects of revenue growth. By recognizing that an outstanding sales force is THE differentiator in today’s environment, our clients with our help, focus on the development of both strategic and tactical initiatives to foster a winning team that will out think, out sell and out perform competitors while consistently gaining market share.
Renbor’s Objective Based Selling (OBS) is a structured approach to delivering ongoing results and improvement by focusing the entire sales organization on a key set of objectives. The overarching objective for any sales organization is to achieve exceptional and sustainable revenue growth. This is accomplished by creating a culture of sales excellence built around the principles and processes adopted by world-class sales organizations.
A Sales Tip You Can Use: Don't Step On Your Buyer's Toes!
I’m getting really impatient with articles and their authors that tease you with a great title and then fail to deliver even a single tip we can use.
Yesterday, I read a promising piece about staying positive. It did a fine job of developing the problem of creeping negativity, but it didn’t offer a single antidote.
So, let me disclose up front, something you can use every day in selling. It’s a simple idea, but powerful:
Stay out of the way of genuine buyers!
These are folks that enter a typical retail store or who call you on the phone and they’re MOTIVATED. Obviously in a buying mood, they’re scanning your wares or your mind for something to take home.
All you have to do is be pleasant, and be available to answer their occasional questions.
But don’t ask them where they’re from, or if you can help them to find something.
If they’re motivated, or they want something from you, they’ll talk.
Just stay pleasantly within range, so when that small buying question comes up, such as, “Do you have these boots in size 12?” you’ll be Johnny on the Spot with an affirmative reply or a suitable alternative.
Speaking of boots, I was shopping for a pair because my Lama lizards were cracking from a little too much exposure to the elements. It was time for a trade-in, so I found a retailer through the web and spent a half hour on the highway to try on some replacements.
The salesman HOVERED, something I can’t stand. He pestered me with questions. I couldn’t get a second to myself to calmly evaluate the pair I was settling on.
Snapped right out of a definite buying mood, I saddled up and sped off.
No sale for that guy!
The following day, I selected a better outfit where the buying tone was just right, and so was the selection, and at this very moment I’m wearing the results on my feet.
Here’s the tip-off.
If the buyer is scanning your inventory with laser eyes let him take the lead, and his good, old time.
Develop your sensitivity.
Recognize when further involvement on your part will only result in stepping on your buyers’ toes!
Yesterday, I read a promising piece about staying positive. It did a fine job of developing the problem of creeping negativity, but it didn’t offer a single antidote.
So, let me disclose up front, something you can use every day in selling. It’s a simple idea, but powerful:
Stay out of the way of genuine buyers!
These are folks that enter a typical retail store or who call you on the phone and they’re MOTIVATED. Obviously in a buying mood, they’re scanning your wares or your mind for something to take home.
All you have to do is be pleasant, and be available to answer their occasional questions.
But don’t ask them where they’re from, or if you can help them to find something.
If they’re motivated, or they want something from you, they’ll talk.
Just stay pleasantly within range, so when that small buying question comes up, such as, “Do you have these boots in size 12?” you’ll be Johnny on the Spot with an affirmative reply or a suitable alternative.
Speaking of boots, I was shopping for a pair because my Lama lizards were cracking from a little too much exposure to the elements. It was time for a trade-in, so I found a retailer through the web and spent a half hour on the highway to try on some replacements.
The salesman HOVERED, something I can’t stand. He pestered me with questions. I couldn’t get a second to myself to calmly evaluate the pair I was settling on.
Snapped right out of a definite buying mood, I saddled up and sped off.
No sale for that guy!
The following day, I selected a better outfit where the buying tone was just right, and so was the selection, and at this very moment I’m wearing the results on my feet.
Here’s the tip-off.
If the buyer is scanning your inventory with laser eyes let him take the lead, and his good, old time.
Develop your sensitivity.
Recognize when further involvement on your part will only result in stepping on your buyers’ toes!
Friday, January 19, 2007
Selling, a Great Career Choice, Part 8 of 8, Virtual Selling for Multiple Income Streams
Selling takes place everywhere, not just in stores or on the telephone. By far, the area of fastest growth in selling is 'virtual' selling or internet selling. Make no mistake about it, if you want to sell anything on the internet you will need to possess virtually all the same skills that are needed to sell successfully in a regular brick and mortar outlet.
In fact, I suggest that in some cases, selling online successfully requires master salespeople. Consumers shop online for two main reasons. They are searching for a product or service that is not readily available in their local marketplace or they are so fed up with dealing with 'average' or 'poor' salespeople that they choose to bypass them altogether.
Complete well rounded sales training will give the online marketer the edge and tools to avoid many of the mistakes that plague undertrained salespeople in the physical marketplace.
If you master selling in a regular business, you can develop multiple streams of income easily and inexpensively by selling online in addition to your regular job. What you offer may be completely different from how you earn your living day to day.
It might be information or a product that you create or have access to. It might relate to something that is of special interest to you or something that you are passionate about. You might even simply sell as an affiliate without your own product at all. The possibilities are endless, but one thing is certain virtual selling can be set up to pay you 24/7 because the internet never sleeps.
Selling as a career can unlock so many doors and so much potential for you if you simply choose to explore it, get yourself properly trained, prepared and take necessary action to make things happen. Yes, you can succeed!
This is the final article in an 8 part series. I invite you to check out the others to discover if a career in selling might serve you or someone you know.
In fact, I suggest that in some cases, selling online successfully requires master salespeople. Consumers shop online for two main reasons. They are searching for a product or service that is not readily available in their local marketplace or they are so fed up with dealing with 'average' or 'poor' salespeople that they choose to bypass them altogether.
Complete well rounded sales training will give the online marketer the edge and tools to avoid many of the mistakes that plague undertrained salespeople in the physical marketplace.
If you master selling in a regular business, you can develop multiple streams of income easily and inexpensively by selling online in addition to your regular job. What you offer may be completely different from how you earn your living day to day.
It might be information or a product that you create or have access to. It might relate to something that is of special interest to you or something that you are passionate about. You might even simply sell as an affiliate without your own product at all. The possibilities are endless, but one thing is certain virtual selling can be set up to pay you 24/7 because the internet never sleeps.
Selling as a career can unlock so many doors and so much potential for you if you simply choose to explore it, get yourself properly trained, prepared and take necessary action to make things happen. Yes, you can succeed!
This is the final article in an 8 part series. I invite you to check out the others to discover if a career in selling might serve you or someone you know.
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