I recently was traveling through an airport and came across a kiosk selling customized music CD's. I approach the booth and was met with a warm, confident outstretched hand and a big "Hello, how's your day going?"
After we exchanged pleasantries I asked the guy "so what's this all about?" I expected to ask the question and then sit back and listen to the "spiel". He said, "We make customized music CD's for kids that includes the name of your child in the various songs over 40 times throughout the entire CD - do you have kids?" I nodded and he asked for one of their names. Thinking I was on a slippery slope to a lengthy demonstration I qualified my time by saying that I had a flight in a short while and didn't have a lot of time. He said, "no problem, you can go when you have to, it's easier and quicker to show you then it is to explain it, it'll only take a minute". I gave him one of my boy's names and true to his word he had a live presentation for me in less than 15 seconds.
While he was doing the demo he asked about my other kids names, their ages and if the music would be appropriate for the older boy. I said it wouldn't be. He asked if the other two boys were familiar with the two different kid's musicians he was playing and whether or not they liked the music. I said they were and they did. When the demo was over he said, "What do you think of that?" I mentioned it was very cool and that my boys would love to hear their name incorporated in their favorite music CD's. I then asked "how much?" He told me the price and then simply asked, "It takes 3 minutes to burn a customized CD, should I do one up for each boy with each of the different groups you just heard?"
Done deal. I'm happy because I got an early birthday present out of the way and my boys will love it.
There were a number of things this guy did right - let's have a look:
- Engage immediately. As soon as he saw me looking he approached me. Friendly, inviting and smiling are hard to resist.
- Excitement. He had a good response to my question, "what's this all about?" Why? Oh maybe because he hears it 1000 times a day! Prepare good answers to common questions that grab attention and create some excitement. Don't try to wing it all the time.
- Optimism. He was not deterred by my comment about having to go soon. He understands that catching your flight is on everyone's mind in an airport. He understands that it doesn't mean the person won't stay and listen, but that it is just the customers' escape route they are setting up in advance should they need it. Imagine how successful he would be if when someone said they only had a short while and he rushed them off with an informational brochure? Again, he had a good logical response. He alleviated my concerns by saying I could go any time and educated me as to how long it would take and what the benefit was to my hearing the presentation.
- Involvement. His odds of making a sale go up if he can get to a presentation so he asked for it right away. He had a smooth transition and a logical reason/benefit for me to hear the actual product not just hear him talk about it. Selling is leading. Are you taking the lead in your sales conversations?
- Professional presentation. The guy new what he was doing; he was practiced. He was quick and to the point and new exactly the best way to show value in his product. Can we say the same about the way we explain our products to people?
- Polite and not presumptuous. He got my input on what I thought about the product before moving to the next step of the sale. Do we get the clients involvement during the sales process? Are we asking confirmation questions to check our progress?
- Solid conclusion. He knew time was an issue. Why prolong the process? I saw the product and answered all the questions in a way that suggested this might be something I'd consider buying - what else is there? It's not complicated. He asked for the sale. He brought it to a logical conclusion by riding the momentum he had gained through a good interview and presentation. Standard sales practice: ask questions, demonstrate product, get feedback from the prospective buyer and, if positive, ask them to buy. Are you asking for the sale every time you present a product?
How often is the sales process all herky-jerky and unorganized because the sales person isn't leading? Make sure you have a plan for the more common questions and products you deal in. Don't complicate the process with unnecessary points and steps. Create momentum with a planned approach that leads the client to a buying decision.
1. Be optimistic
2. Interview and get acknowledgement of a need.
3. Present your product professionally and efficiently
4. Get feedback from the buyer.
5. Ask for the sale.
Thursday, February 14, 2008
How To Rise Above Your Competition
I sell aircraft for a living, but I didn't get to that level of sales by accident. I paid my dues by selling various products, taking part in many, many sales training processes, owning a retail business, and finally becoming a master of promoting myself. Promoting yourself is another subject I'll be writing about soon. Currently, I sell jets by day and have an online business. Follow the steps below and you'll reach a new level of selling.
1. RESEARCH: If you remember nothing else, remember this: Always bring something of value to your prospect. He/she will appreciate your knowledge and be more apt to take your call again. Research your prospects competition, prepare a market report surveying the current trends, compare your prospects product/service to his/her competition. Give an analysis of past market trends and where you think the market is heading or why you feel the market is down trending/up trending. If you are selling something non tangible such as advertising, then prepare a report of how your advertising medium reaches more subscribers than the competition. Draw graphs and use concrete numbers in your report. Decision makers are usually very numbers oriented, they'll be interested to learn that 30% of their target audience doesn't listen to the country music radio station they are advertising on.
2. PRESENT: When you call to make your appointment, tell your prospect you have interesting information he'll want to know. I will use terms like, "The market is on-fire or holding steady" then give a brief description of why. Of course, save the real interesting info for your meeting. If you have to leave a message, get an email address from the receptionist or executive assistant, then send a follow up email with the same information you've left on his/her voice mail. This may seem a bit redundant, but it works and you'll be remembered. Once you are in front of your prospect or have phone contact, present your information. You'll want to present this information in a conversational manner, leaving him/her plenty of opportunity to comment. Be prepared to expound upon your findings.
3. DISCOVERY: As you present your research findings, ask questions about the company, the product/service. If you are speaking with the owner, ask about his/hers short term goals, long term goals for the business. If you make this a very relaxed conversational meeting, your prospect will be at ease and more willing to contribute to the conversation. Stay away from any questions which ask your prospect to disclose financial or otherwise private information. If you stumble and blurt out something that triggers a negative reaction, back pedal as quick as you can. Apologize and quickly move onto another subject. You'll be able to tell when and if he/she begins to relax again.
4. If you have a product which constitutes a short selling cycle then ask for the sale. I don't like to ask " How can I earn your business?" because it usually brings a stiff reply which gets you absolutely nowhere. My theory is you are the expert and you know how to earn their business. A good question might be " What is important to you?" Then fill the need he/she has described. If you have a product which constitutes a long sales cycle, I don't usually ask for the sale at this point. I offer to provide more information and to keep in touch.
5. Follow up with an email, letter, note card whatever you prefer. Just be sure to follow up. If they are close to making a decision of using your company/service then, start an email campaign making contact every few days. Again, remember to try to bring something of value. If you have absolutely nothing to offer, then ask if they have any further questions regarding the information you presented. You are developing a rapport and becoming a trusted source. If this is a long sales cycle, set them up on your calendar to receive more info in a month, six weeks, 3 months whatever is appropriate.
1. RESEARCH: If you remember nothing else, remember this: Always bring something of value to your prospect. He/she will appreciate your knowledge and be more apt to take your call again. Research your prospects competition, prepare a market report surveying the current trends, compare your prospects product/service to his/her competition. Give an analysis of past market trends and where you think the market is heading or why you feel the market is down trending/up trending. If you are selling something non tangible such as advertising, then prepare a report of how your advertising medium reaches more subscribers than the competition. Draw graphs and use concrete numbers in your report. Decision makers are usually very numbers oriented, they'll be interested to learn that 30% of their target audience doesn't listen to the country music radio station they are advertising on.
2. PRESENT: When you call to make your appointment, tell your prospect you have interesting information he'll want to know. I will use terms like, "The market is on-fire or holding steady" then give a brief description of why. Of course, save the real interesting info for your meeting. If you have to leave a message, get an email address from the receptionist or executive assistant, then send a follow up email with the same information you've left on his/her voice mail. This may seem a bit redundant, but it works and you'll be remembered. Once you are in front of your prospect or have phone contact, present your information. You'll want to present this information in a conversational manner, leaving him/her plenty of opportunity to comment. Be prepared to expound upon your findings.
3. DISCOVERY: As you present your research findings, ask questions about the company, the product/service. If you are speaking with the owner, ask about his/hers short term goals, long term goals for the business. If you make this a very relaxed conversational meeting, your prospect will be at ease and more willing to contribute to the conversation. Stay away from any questions which ask your prospect to disclose financial or otherwise private information. If you stumble and blurt out something that triggers a negative reaction, back pedal as quick as you can. Apologize and quickly move onto another subject. You'll be able to tell when and if he/she begins to relax again.
4. If you have a product which constitutes a short selling cycle then ask for the sale. I don't like to ask " How can I earn your business?" because it usually brings a stiff reply which gets you absolutely nowhere. My theory is you are the expert and you know how to earn their business. A good question might be " What is important to you?" Then fill the need he/she has described. If you have a product which constitutes a long sales cycle, I don't usually ask for the sale at this point. I offer to provide more information and to keep in touch.
5. Follow up with an email, letter, note card whatever you prefer. Just be sure to follow up. If they are close to making a decision of using your company/service then, start an email campaign making contact every few days. Again, remember to try to bring something of value. If you have absolutely nothing to offer, then ask if they have any further questions regarding the information you presented. You are developing a rapport and becoming a trusted source. If this is a long sales cycle, set them up on your calendar to receive more info in a month, six weeks, 3 months whatever is appropriate.
Wednesday, February 13, 2008
Sales Coaching - 3 Skills to Focus On
A sales professional's success is determined by your willingness to invest in yourself. There are two areas for personal development that most will invest in, and one area only Top Producers invest in. Those who aren't Top Producers never even think to invest in themselves in this way.
That's not to say you shouldn't invest in all three areas because you should. The two areas you're familiar with are self-improvement and sales process training. The area you may not be so familiar with is customer focus.
Self-improvement development is designed to help you to increase your personal productivity, enthusiasm, and energy level. Yes, you need to be focused on doing the things that directly lead to business with enthusiasm for what you have to offer and with an energy level that reflects your commitment. Salespeople who are lacking in these areas tend to be very busy doing lots of "things", but have little production to show for their efforts.
Sales training development is essential. There's no question you need the skills to prospect, present, overcome stalls and objections, and close the sale. Without proficiency in these key sales skills you struggle only landing the occasional easy sale.
Client focus development is the critical difference between the average salesperson and the Top Producer. When you've developed your client focus skills you're able to: clearly understand the clients goals and get the client to openly share those goals with you, you're able to work with the client to develop a plan for the accomplishment of those goals in a mutually engaging on-going conversation, and you're able to develop a relationship with the client based on integrity and accountability leading to repeat business and referrals.
That's not to say you shouldn't invest in all three areas because you should. The two areas you're familiar with are self-improvement and sales process training. The area you may not be so familiar with is customer focus.
Self-improvement development is designed to help you to increase your personal productivity, enthusiasm, and energy level. Yes, you need to be focused on doing the things that directly lead to business with enthusiasm for what you have to offer and with an energy level that reflects your commitment. Salespeople who are lacking in these areas tend to be very busy doing lots of "things", but have little production to show for their efforts.
Sales training development is essential. There's no question you need the skills to prospect, present, overcome stalls and objections, and close the sale. Without proficiency in these key sales skills you struggle only landing the occasional easy sale.
Client focus development is the critical difference between the average salesperson and the Top Producer. When you've developed your client focus skills you're able to: clearly understand the clients goals and get the client to openly share those goals with you, you're able to work with the client to develop a plan for the accomplishment of those goals in a mutually engaging on-going conversation, and you're able to develop a relationship with the client based on integrity and accountability leading to repeat business and referrals.
Sales Coaching - Outcome or Opportunity
Do you view prospecting as an outcome or an opportunity? Do you think of prospecting in terms of a process or an event? The way you answer those questions makes a big difference in the results you experience.
Many people view getting the attention of a prospect as the outcome. That's not a good thing, and it causes you to miss many opportunities. Getting the attention of a prospect is simply an opportunity for you to develop and continue a relationship with that prospect.
Most people who treat getting the attention of a prospect as an outcome aren't able to capitalize on that attention. That's because to them the appointment was what they wanted and what they got. They weren't necessarily able to convert that appointment into a client and they didn't have anywhere meaningful to go with the prospect once the appointment ended.
Oops, big mistake. You get yourself in these dead end situations because you think of prospecting and the appointment as an event when you should be thinking of them in terms of a process. Getting the attention of a prospect is the first step in a process that builds a relationship with the prospect leading to a meaningful sales conversation where you're both there for the same reason.
You're both agreeing to the appointment to determine if there is a reason for you to do business together. To have a process for prospecting you need a multi-step, perhaps even multi-media, plan to continue to connect with the prospect adding value to the prospect so the prospect wants to continue the relationship and know more. Throughout the process you're conditioning the prospect to hear from you and to respond to you. And that gives you the power to turn opportunities into business.
Many people view getting the attention of a prospect as the outcome. That's not a good thing, and it causes you to miss many opportunities. Getting the attention of a prospect is simply an opportunity for you to develop and continue a relationship with that prospect.
Most people who treat getting the attention of a prospect as an outcome aren't able to capitalize on that attention. That's because to them the appointment was what they wanted and what they got. They weren't necessarily able to convert that appointment into a client and they didn't have anywhere meaningful to go with the prospect once the appointment ended.
Oops, big mistake. You get yourself in these dead end situations because you think of prospecting and the appointment as an event when you should be thinking of them in terms of a process. Getting the attention of a prospect is the first step in a process that builds a relationship with the prospect leading to a meaningful sales conversation where you're both there for the same reason.
You're both agreeing to the appointment to determine if there is a reason for you to do business together. To have a process for prospecting you need a multi-step, perhaps even multi-media, plan to continue to connect with the prospect adding value to the prospect so the prospect wants to continue the relationship and know more. Throughout the process you're conditioning the prospect to hear from you and to respond to you. And that gives you the power to turn opportunities into business.
Monday, February 11, 2008
Here's How To Stop Giving Profits Away
At a home accessories and furniture store I saw a couple of large metal wall pieces I liked for my office. This place looked like a family-run operation. The owner saw my obvious interest in one, came over, and asked if I liked it.
I tried not showing too much emotion and asked how much better he could do. His reply was brilliant:
"These are almost double this amount at Robb & Stucky's (a high-end furniture store in Scottsdale). You can have it for only $295."
Great answer!
I'm always prepared to pay full price, but I also like to ask for the sport of it, and, well, because it works. So I then said,
"How much better can you do if I also get that one over there," pointing to a similar piece on the wall.
I expected something solid like, "Same thing with that one. Together, you'll double your savings from anywhere else."
Suddenly, though, he turned into a different person. He caved in, saying,
"Ah, well, OK, I can give you $75 off if you get both."
He gave away pure profit.
Here's something that's not too profound at first glance:
"A dollar in cash money or credit that you give away is always a dollar of lost profit."
However, this has enormous implications when you put it in the context of price objections, negotiations, and concessions, and also special offers, discounts, and incentives to purchase.
And with that context in mind, here's another piece of wisdom:
"The perception of the value of what you give away- in the mind of the receiver-can be greater than its price tag."
OK, so what does all this mean?
Here's an example. A printer had missed a deadline date for an order. It caused me inconvenience. In the past I've had printers who knocked something off the price when they screwed up. Instead, she apologized profusely, and recovered with this:
"Here's what I'm going to do for you. I've run 20% more than what you ordered, no charge. And the next time you do a black and white printing job like this, I'll throw in a second basic color at no charge."
If she would have knocked $100 off the bill, that would have cost her $100. I imagine she probably has to do at least $400 worth of business to make $100 net profit. Instead, she offered to give me 20% more than what I ordered, which cost her very little, since she probably ran 10% more than what I ordered anyway and would have just wasted it, and her additional cost was essentially just for the paper.
As for the second color on the next job, not only is that a clever way to ensure future business (kind of like having a gift certificate-who hasn't made a shopping trip to redeem it even if we didn't need anything?) but it also had a high perceived value to me because it's something I normally pay for.
Her only cost is to run the job through the press a second time, and for the colored ink (which she'd likely have on the press for another job anyway); again much less than the perceived dollar value.
Think of how you might be able to use these ideas to avoid giving away dollars in cash, and persuade people to buy, or buy more quickly.
Here are some ideas.
Understand what's important to them. Of course, all selling gets back to this. Money often takes a back seat to other priorities. For example, if you're in a price negotiation and you also know the buyer is under a time crunch, you could offer quicker delivery instead.
Give product instead of dollars. Instead of dropping price, throw in some additional products. Give them something they're not buying from you now. It gives them the opportunity to test something out, which could lead to future sales of that product. This also works great if they are a reseller. They can then make a profit from what you give them. Also, the actual retail price of the product could be much greater than the concession or discount they want, but your actual cost is lower.
I tried not showing too much emotion and asked how much better he could do. His reply was brilliant:
"These are almost double this amount at Robb & Stucky's (a high-end furniture store in Scottsdale). You can have it for only $295."
Great answer!
I'm always prepared to pay full price, but I also like to ask for the sport of it, and, well, because it works. So I then said,
"How much better can you do if I also get that one over there," pointing to a similar piece on the wall.
I expected something solid like, "Same thing with that one. Together, you'll double your savings from anywhere else."
Suddenly, though, he turned into a different person. He caved in, saying,
"Ah, well, OK, I can give you $75 off if you get both."
He gave away pure profit.
Here's something that's not too profound at first glance:
"A dollar in cash money or credit that you give away is always a dollar of lost profit."
However, this has enormous implications when you put it in the context of price objections, negotiations, and concessions, and also special offers, discounts, and incentives to purchase.
And with that context in mind, here's another piece of wisdom:
"The perception of the value of what you give away- in the mind of the receiver-can be greater than its price tag."
OK, so what does all this mean?
Here's an example. A printer had missed a deadline date for an order. It caused me inconvenience. In the past I've had printers who knocked something off the price when they screwed up. Instead, she apologized profusely, and recovered with this:
"Here's what I'm going to do for you. I've run 20% more than what you ordered, no charge. And the next time you do a black and white printing job like this, I'll throw in a second basic color at no charge."
If she would have knocked $100 off the bill, that would have cost her $100. I imagine she probably has to do at least $400 worth of business to make $100 net profit. Instead, she offered to give me 20% more than what I ordered, which cost her very little, since she probably ran 10% more than what I ordered anyway and would have just wasted it, and her additional cost was essentially just for the paper.
As for the second color on the next job, not only is that a clever way to ensure future business (kind of like having a gift certificate-who hasn't made a shopping trip to redeem it even if we didn't need anything?) but it also had a high perceived value to me because it's something I normally pay for.
Her only cost is to run the job through the press a second time, and for the colored ink (which she'd likely have on the press for another job anyway); again much less than the perceived dollar value.
Think of how you might be able to use these ideas to avoid giving away dollars in cash, and persuade people to buy, or buy more quickly.
Here are some ideas.
Understand what's important to them. Of course, all selling gets back to this. Money often takes a back seat to other priorities. For example, if you're in a price negotiation and you also know the buyer is under a time crunch, you could offer quicker delivery instead.
Give product instead of dollars. Instead of dropping price, throw in some additional products. Give them something they're not buying from you now. It gives them the opportunity to test something out, which could lead to future sales of that product. This also works great if they are a reseller. They can then make a profit from what you give them. Also, the actual retail price of the product could be much greater than the concession or discount they want, but your actual cost is lower.
Soft Sales Techniques for Specialty Law Firms
Lock Horns and Hobnob
Make use of past opponents for long-term business development and network development.
The world of specialty law is a small one. Throughout your career, you will encounter the same attorneys you have once argued against. By using the proper techniques, you can maintain good relationships with other lawyers in your field, whether they are your allies or your opponents. Take advantage of prime opportunities to get on friendly terms with an attorney you observed to be a good advocate for his or her client.
Also, note which executives participated in the case; they can also be very good sources of future legal business and networking opportunities.
Don't Lose Touch
After an acceptable time has passed and your opponent has had a chance to lick his or her wounds (or vise versa), reach out to them. Congratulate the fellow attorney for a stellar representation of his or her client, them invite them out for coffee or lunch.
Keep in touch by email. Send the acquaintance copies of articles that you think they might be interested in. Inquire about upcoming conferences or seminars you might both attend.
Keep in mind that future new business opportunities may come from referrals, even referrals from former opponents.
As I mentioned, business executives are also good contacts for networking. Try a more subtle approach to continual law firm marketing. If you service a company on a project basis, such as a merger, invite the inside counsel and executives in direct contact with you out for social events or to a conferences to deepen (and perhaps solidify) the business relationship.
Make use of past opponents for long-term business development and network development.
The world of specialty law is a small one. Throughout your career, you will encounter the same attorneys you have once argued against. By using the proper techniques, you can maintain good relationships with other lawyers in your field, whether they are your allies or your opponents. Take advantage of prime opportunities to get on friendly terms with an attorney you observed to be a good advocate for his or her client.
Also, note which executives participated in the case; they can also be very good sources of future legal business and networking opportunities.
Don't Lose Touch
After an acceptable time has passed and your opponent has had a chance to lick his or her wounds (or vise versa), reach out to them. Congratulate the fellow attorney for a stellar representation of his or her client, them invite them out for coffee or lunch.
Keep in touch by email. Send the acquaintance copies of articles that you think they might be interested in. Inquire about upcoming conferences or seminars you might both attend.
Keep in mind that future new business opportunities may come from referrals, even referrals from former opponents.
As I mentioned, business executives are also good contacts for networking. Try a more subtle approach to continual law firm marketing. If you service a company on a project basis, such as a merger, invite the inside counsel and executives in direct contact with you out for social events or to a conferences to deepen (and perhaps solidify) the business relationship.
Friday, February 8, 2008
Sales Coaching - 9 Mistakes That Will Cause You to Fail
I work with and am friends with a number of financial advisors. In a recent conversation with a veteran in the business we discussed the main reasons new advisors don't make it. Truthfully your odds of making it in the business are pretty slim if you just do what they tell you do to, but your actions determine your results and your future.
Lots of people enter the industry and only are rare few are still in the business after five years, and even fewer are successful. As we spoke we shared our experiences as to why so many people with so much potential fail from the perspective of the veteran who has seen people come and go like a revolving door, and the coach who works with the elite few who are committed to making it. By the end of our conversation we had a list of 9 mistakes those new to the business make that lead to their failure:
1. you still have a wage earner mind-set and lack the entrepreneurial drive to make it work no matter what
2. you think you're selling products
3. you don't understand that it's all about the relationships you're able to start and build
4. you lack focus, direction, and commitment causing you to get off track going in the wrong direction changing directions to chase the next great idea
5. you think you're different that you're a super star, but you're actions don't back up your bravado
6. you have a scarcity mentality and you're afraid to invest in yourself to develop the skills you need to succeed
7. you think you know what to do, but you don't know how to do it
8. you don't know what you don't know and you aren't trying to figure out what you don't know or how to know it
9. you confuse activity with results and burn out with little to show for your tremendous efforts.
Did you recognize any of those fatal mistakes in yourself, or are you thinking you aren't making those mistakes but you know others who are? I know the list is pretty harsh, but review it again and be harshly honest with yourself. If you aren't headed where you want to be it's pretty likely that one or more of those mistakes are getting in your way.
Lots of people enter the industry and only are rare few are still in the business after five years, and even fewer are successful. As we spoke we shared our experiences as to why so many people with so much potential fail from the perspective of the veteran who has seen people come and go like a revolving door, and the coach who works with the elite few who are committed to making it. By the end of our conversation we had a list of 9 mistakes those new to the business make that lead to their failure:
1. you still have a wage earner mind-set and lack the entrepreneurial drive to make it work no matter what
2. you think you're selling products
3. you don't understand that it's all about the relationships you're able to start and build
4. you lack focus, direction, and commitment causing you to get off track going in the wrong direction changing directions to chase the next great idea
5. you think you're different that you're a super star, but you're actions don't back up your bravado
6. you have a scarcity mentality and you're afraid to invest in yourself to develop the skills you need to succeed
7. you think you know what to do, but you don't know how to do it
8. you don't know what you don't know and you aren't trying to figure out what you don't know or how to know it
9. you confuse activity with results and burn out with little to show for your tremendous efforts.
Did you recognize any of those fatal mistakes in yourself, or are you thinking you aren't making those mistakes but you know others who are? I know the list is pretty harsh, but review it again and be harshly honest with yourself. If you aren't headed where you want to be it's pretty likely that one or more of those mistakes are getting in your way.
Subscribe to:
Posts (Atom)
Posts
