Why Closing Is Hazardous to Your Sales Health

If you’re focused on closing sales–then you are most likely hurting your sales. You need to stop closing–so that you can start selling.

The Implication of Closing

You may have been trained in various kinds of ‘closes’—the assumptive close (“shall I start the credit check now?”), the either/or close (“would you like that in red or green?”), and many others. What all “closes” have in common is they are all ways to persuade the buyer to do what the seller wants.

And “persuade” is a nice word. There is a whiff of coercion, trickery, and manipulation about the term—at least from the buyer’s viewpoint. The simple truth is: closing is not buyer-centric–it’s seller-centric. And all of us as buyers know what it feels like to have another person try to force their will on us—and deny it’s happening even while they’re doing it.

Closing sends the wrong message–that you are getting your customers to do something you want them to do. This works with some people in the short run; but with very few people in the long run.

Here’s what you want your buyers to feel; what closing actually conveys; why we focus on closing; and 3 things you can do to stop closing, and start selling.

You Want to Convey Trustworthiness

Nothing—nothing at all—makes a buyer feel like buying more than the feeling that they can trust the seller. And the best way to be trusted is—to actually be trustworthy. That is not a vague concept: trustworthiness means four precise things.

1. Credibility. The credible salesperson conveys, “I am smart–and I will share my knowledge with you.” The effect is to create a confident buyer.

2. Reliability. The reliable salesperson is conveying, “You can depend on me to do what I say I’ll do; I’m a person of integrity.” The effect is to encourage reliance on the part of the buyer.

3. Intimacy. A salesperson who scores high on intimacy conveys, “You can share information, concerns and questions with me; there are no stupid questions, and I will never abuse your confidence.” The effect on the buyer is to genuinely share their concerns—all of them—with the seller.

4. Other-orientation. An other-oriented salesperson conveys, “I am genuinely interested in and curious about you; I’m in this for you.” The effect on the buyer is to think, “This person has my best interests at heart.”

If a customer feels all those things about you, they will trust you. And if you’re giving them honest advice that truly is for the best of them—they are very likely to buy.

Closing Says You Are Untrustworthy

Closing generally conveys the opposite of trustworthiness.

Credibility: Closing says, “I am smart–and so you should trust me when I tell you what to do.”

Reliability: Closing says, “You can depend on me to always come back around to asking for the sale.”

Intimacy: Closing says, “You are taking up my valuable time by asking unnecessary questions, to which I know all the answers—and I’ve already told you.”

Orientation: CIosing is not other-oriented, it is self-oriented. It says, “I am focused on my best interests–which are to get you to buy. Now are we ready to close yet?”

People who are ‘closed’ may or may not buy; but they won’t be happy about it, and they’re less likely to buy again. And they’ll tell their friends how they feel.

Why We Get Obsessed with Closing

We want to control our outcome, to increase our success. This is perfectly natural, and certainly common. But there are two problems with it:

1. Most people don’t like to be controlled (do you?)

2. Most of those who do get controlled will resent it and not re-buy

They’ll also tell others you’re not trustworthy. And nowadays, that means email, facebook, and twitter. Your reputation can degrade like wildfire.

Three Ways to Stop Closing, and Start Selling.

1. Stop being attached to the sale itself. Accept that you may not get every sale–including this one. Instead—focus on doing the right thing for the customer, whatever that may be. Learn to trust that doing so will gain you at least as many initial sales, more repeat sales, and far more referrals. Not to mention a reputation of trustworthiness.

2. Understand where the customer is coming from. Don’t answer questions or “handle objections” until the customer really feels you understand their concern. Focus less on the answers—more on empathy and understanding.

3. Don’t say your favorite closing phrase. Instead, just ask: “What do you want to do now?” Then do what they say.

You’ll like the feeling of being trusted. And it sells.

The Paradox of Selling

One obvious purpose of selling is to persuade buyers to buy what you are selling. Most people have no trouble agreeing to that proposition.

And yet—the harder you try to get people to do what you want them to do, the more likely they are to push back, resist, and generally behave contrarily. Again, I think most people would agree.

Put these two statements together, and we can easily see selling as an ongoing struggle to get people to do what we want, without making them feel that we are trying to get them to do what we want. Selling has at its heart a struggle to reconcile these two truths. You want to sell. They don’t want to be sold.

When two truths collide, one tends to lose, or they both tend to get watered down. But the way out is not to give up one goal (to sell) or the other (to not cause the feeling of being sold); it is to fully recognize both and transcend the apparent paradox.

It can be done. Here’s how.

The Tension Between Sellers and Customers

This paradox is hardly new. Sellers have palpably felt since time immemorial the tension to selling. Most sellers resolve the tension by one of three strategies:

Defaulting to Truth One: Hard-sell 24-7 to anyone who comes within feeding range;

Defaulting to Truth Two: Being nice and giving away money, relying on the hope that guilt will induce a sale;

Living with It: Internalizing some of form of denial, schizophrenia, or multiple personalities.

But there is another way:

The Other Way: Time, Gifts and Trust

People resist being sold. But people love receiving gifts. In fact, receiving a gift induces a sense of obligation on the part of the recipient. Which suggests a strategy of gift-giving might be the best form of selling.

For services businesses, there is an analogue to gifts—it’s what’s called sample selling in product businesses. Sample selling in the services might mean brainstorming; a small project; a lunch-and-learn; a webinar; a series of articles; a series of conversations for which you don’t bill time; sharing of some previous work.

Sample selling works even better in intangible services than in businesses with “hard” products. The best way for a client to learn how to work with you is to let them work with you. Create a sample experience.

But that’s only half the problem. The other half is, if you set out to give a gift with the express intent of inducing guilt-based buying, you’ll get the reverse—outraged backlash at what is perceived as bait and switch, duplicity, two-facedness. A gift has two features: it is open-ended, and it implies an ongoing relationship. (Think of Don Corleone’s in the movie The Godfather: “Perhaps, some time In the future, and that time may never come, I will call upon you for a favor.” It is non-specific; it is not legally or logically binding; but it carries huge emotional obligation.

When we try to use the language of the market: “If you give me this, I will give you that,” “If you do this for me, I will do that for you,” things change. That is the language of a contract, of money, of transactions.

We violate social norms when we offer a social good (like a gift), but really mean it as a market good (“you owe me”). In one case, there is no binding—yet we feel personally bound. In the other, there is explicit market binding—and we feel market-bound, not socially bound.

The trick is for the seller to give up attachment to the specific short term outcome of a particular gift to a particular buyer in a particular timeframe. To give a sample as a gift, not as an obligating transaction.

That power of a gift is unleashed if it is given without overt conditions of time or obligation. But a gift is diminished if it is conditioned on anything—it turns the gift into a market exchange at best, a bribe at worst. If the gift-giver puts conditions on the recipient, the receiver immediately knows it is not a genuine gift, and the magic connection is ruined.

Applied to selling, this means a strategy of loosely controlled sample selling is far more powerful than a tightly controlled strategy of transactions. In simple terms, if you’re generous as a policy to a sensible group of people in the short term, many of them will buy in the long term.

But only if you don’t ruin it by trying to control them, by treating them transactionally.

Why This is So Hard to Practice

The best salespeople practice this technique already: they freely give of their expertise—a tiny bit to everyone, a lot more to a select group of people. They don’t expect sales from any particular person at any point—yet they definitely expect an aggregate amount of sales from an aggregate amount of leads. They don’t know from just whom or when; but as long as the return rate remains high, they are quite happy not to be more controlling with any one lead.

Unfortunately, this line of thinking is the opposite of what passes for Received Wisdom in sales these days. Tools like Salesforce.com reinforce the idea of more control, not less; of smaller time increments, not longer; and of more metrics, not less. The dominant theme in improving sales is about efficiency, not effectiveness. Break it down, parcel it out, check it off.

In other words, every transaction is treated not only in isolation from others, but is broken down even more finely. Behaviors are sliced and diced, incentives more finely tuned. Qualifying the lead happens more and more frequently at shorter and shorter time intervals.

The net effect on the customer is to feel more and more mechanically processed. How does a buyer feel to be on the receiving end of a process which constantly evaluates his or her financial worth to the seller? Buyers will predictably feel resentment, and will push back. They don’t want to feel sold, to feel a pawn in someone else’s game. And any attempt to introduce social norms will backfire if they are tainted by overt commercial attempts at precise control. No one wants to be treated as a means to someone else’s ends.

How to Do It

It takes a strong personality to not give in to the general business demand for short term and impersonal sales techniques. But the rewards of staying the course are great. The way to think about it mainly comes down to two changes: less control in timing, and looser control in metrics.

Timing. Take a longer view of the desirability of a particular lead. One-off gifts from strangers don’t work as gifts; they just raise suspicion. It’s the ability to show a sustained, genuine interest that offers the chance of a relationship. A focus on transactions kills relationships; a focus on relationships allows transactions to blossom. This doesn’t mean you don’t screen and exclude buyers; it means you do it more definitively, and less frequently.

Selling this way doesn’t mean accumulating specific checkmarks—it means a periodic account review where the decision is simply ‘do we keep investing in this lead—or not?’ Maybe that review happens every 6 months, maybe a bit less. But it is not an ongoing, automatic, short-gated decision. If you’re investing in a client, invest in them—until you decide not to.

Metrics. If you loosen up the timeframe, you can also afford to loosen up the criteria. In a longer timeframe, you no longer have to be bound by 3rd level input metrics to evaluate the worth of a lead: at a longer timeframe, things can get simpler. Are you being invited in, or not? Are they returning calls, or not? Is there a real project being discussed, or not? If yes, keep it up. If not, stop it. The decision metrics become far simpler, and selling can focus on relationships, not evaluating transactions.

The Paradox of Selling

Yes, you still want to sell what you sell. And yes, they still don’t want you to control them.

Don’t choose one or another, and don’t sub-optimize. By lengthening your timeframe and reducing the precision and number of metrics, you open up space for the natural human instincts to work. In that context, you can intelligently give the gift of sample selling; and you can reduce the need to control that gift. That way people can feel the natural inclination to reciprocate, rather than the resentful guilt or rejection that short-term control induces.

Does Trust Really Take Time?

Those who sell professional services know the power of being trusted, and strive to be seen that way. I’m often asked: how long does it take to become trusted? Consider these statements:

Haste makes waste. He who hesitates is lost. Which is right?

Action without vision is a nightmare. Vision without action is a daydream. Which is right?

In both cases, it depends. Each of the apparently contradictory aphorism pairs makes perfect sense in a particular situation. The trick, of course, is to know which situation faces us.

In the same vein, consider “trust takes time,” and “trust your gut.” Which is right? Is trust gained only with the passage of time? Or is it something that comes in a flash, a moment of intuition or feeling?

Most people in business, if asked without reflection, will come down on the side of “trust takes time.” And their approach to selling reflects this. They believe that people buy after they come to trust the seller; and that this trust is based on a track record and a history of promises kept.

The belief that trust takes time is true enough—but it’s only about 25% of the story. The rest of the story is a story of trust that hardly takes time at all. And that the sales process—far from depending on the prior establishment of trust—is itself ground zero for the creation of trust.

TRUST AND TIME

The tendency to over-weight the importance of time in establishing trust isn’t just limited to sales. It is reflected in other parts of business, and of society, as well.

In his recent book, The Speed of Trust, Steven H.R. Covey Jr. links trust, time and cost: as trust goes down, speed goes down and costs go up; as trust goes up, speed goes up and costs go down.

A few years ago, Warren Buffett bought McLane Distribution, a $24 Billion food distributor, in a $1.5 billion transaction. He did no due diligence beyond a 2-hour meeting. Buffett said, “I trusted Wal-Mart, I trusted the people I worked with.” This decision saved Berkshire Hathaway millions in foregone legal and accounting costs; total elapsed time, one month.

The US auto industry is notorious for its history of combative relationships with employees (the UAW) and its various suppliers. By contrast, the Japanese auto industry has seen its suppliers as integral parts of a larger system. The resultant lower costs per car probably contribute more to the Japanese industry’s competitiveness than the US industry’s health care and pension costs.

The general business costs of low trust are massive. Think of the expenditures on legal fees. The added accounting costs based on Sarbanes Oxley. The costs of disclosure. Of regulation.

The burden of low trust shows up in sales as well—and, like the auto industry, much of it is the fault of sellers ourselves.

  • Seeking sales “efficiency” by tightening qualification processes means giving up face-to-face marketing with potential future clients or referrals. The focus is on our own immediate needs. Result: trust down, costs up, time longer.
  • Defining sales mainly as a process dehumanizes it. Outsourcing sales over-emphasizes the economic self-serving component of sales, at the cost of client focus. Result: trust down, costs up, time longer.
  • Shortening evaluation timeframes and cranking up reliance on monetary incentives over-emphasizes the monetary and transactional aspect of sales. Result: trust down, costs up, time longer.

Even in the sales call itself: “trust takes time” only in part: the part that has to do with reliability. Most other forms of trust come from the “trust your gut” dictum. Which can be far faster. And far cheaper.

THE TRUST EQUATION

The concept of “trust” is about as varied as any aspect of human relations. We use the term in many ways. The bulk of those ways are reflected in the four factors of the Trust Equation :

Of these four factors—credibility, reliability, intimacy and self-orientation—only one of them necessarily requires the passage of time. That factor is reliability, because by definition it requires repeated experiences.

The emphasis on reliability is what drives so much of the approach to selling primarily used in professional services: references, lists of past clients, success stories, resumes, and processes. All are heavily built around the idea that being trusted accumulated experience built over time.

But reliability is only one factor of four. And the other three often, sometimes mainly, are created in a conversation, even a moment.

  • Credibility is established not just in histories, but in symbols, credentials, and insights—and in a firm handshake, a look in the eye, and a straight answer.
  • Intimacy is established not only by knowledge acquired over time, but by a knowing nod, a sense of empathy, and a recognition of the personal.
  • Self-orientation is not just established through a history of customer-focused behavior, but by how we conduct ourselves daily, what questions we ask, and whose concerns dominate our reactions in the moment.

When these areas of rapid trust creation are understood, it follows that we don’t have to wait for the passage of time to be trusted. To a great extent, we can demonstrate our own trustworthiness—and thereby earn the trust of our clients—in the sales process itself. Selling doesn’t depend passively on the development of trust; selling can itself be the engine of trust creation.  Learn more about The Trust Equation.

HOW TO ENHANCE RAPID TRUST CREATION

There are things we can do to increase the power of rapid trust creation without compromising on the validity or deservedness of that trust. They can all be done within the sales process itself. Here are a few:

  1. Give up spin control. Speak the truth—simply, plainly, without embellishment. Answer questions directly. Don’t withhold truth. Behaving this way builds credibility rapidly—often within a single conversation. You become known as a truth-teller—one who places integrity and honesty over outcome. Truth-telling enhances credibility more than carefully doling out truth.
  2. Admit your limits. If you don’t know something, say so. If you’re not the best at something, say so. If you don’t have all the answers, say so. If you’re not clear on something, say so, along with what you are clear about, and what you need to get clear on the rest. This enhances your credibility (after all, who lies about their ignorance?), and your intimacy in your willingness to be transparent.
  3. Offer other approaches. If the only recommendation you ever have for a client is “me/us,” then no client can ever trust your recommendation. Have recommendations for alternative providers if the client can’t afford you, or wants an answer sooner than you can deliver, or requires services that aren’t cost-effective for you to deliver. Having alternative suggestions shows high client focus and low self-orientation, as well as enhancing your credibility.
  4. Take an emotional risk. If you’re feeling something, say it. If you notice an emotional fact about the client (distracted, passionate, concerned), comment on it (“you seem a little distracted,” “I get the sense you’re really passionate about this,” “I’m sensing some real concern from you about this one aspect”).There is no trust without risk, and you can’t expect the client to lead on risk-taking. The most common form of risk is emotional risk—the intimacy factor—and the inability to be open about emotions. Enable that openness. Do it with respect for the client and with appropriate caveats—but do it.
  5. Address the other two agendas. Of course, state your own agenda for a meeting. But that’s only one agenda. There is also the client’s agenda—ask for it.Finally, there is a third agenda—the agenda for the relationship itself. Not every meeting needs a specific relationship agenda item, but the question ought to at least be raised—“do we have a chance in this meeting to improve our relationship?” Raising the other two agendas lowers your self-orientation.
  6. Give up control in the meeting. Of course you want the sale. Of course you can’t give away work for free. And of course you should define objectives and agendas for each meeting. But once in the meeting—let it go. Give up control. Simply help advance the best long-term interest of the client and the relationship. That demonstrates your willingness to collaborate, and your lowered sense of self-orientation.
  7. Deliver on more promises. This one has to do with reliability. Reliability is the one factor that by definition takes time, but there are ways to shorten it. Make more promises; then keep them. Say you’ll end the meeting at 11:00—then end at 10:59. Say you’ll deliver the package by tomorrow; then have it there at 9AM. Promise short-term follow-ups, and then deliver. (And don’t make a habit of over-delivering—that just undercuts your credibility. The occasional over-delivery helps—reliability is enhanced by a history of dependability, not by surprises).
  8. Always context transactions within relationships. Don’t approach sales, or negotiations, or even meetings, as if they were stand-alone events. Link them to future sales, other negotiations, future meetings. Doing so demonstrates collaboration and a commitment to client focus—all of which helps raise credibility and lower self-orientation.
  9. Trust your gut. Much research on the establishment of personal trust suggests it happens very rapidly—often instantaneously. Sometimes this can be dangerous for the one doing the trusting—that’s why con artists make a living.However, gut instincts help us deal efficiently with complex lives. Our “gut” is capable of very sensitive, discriminating and highly accurate judgment—with respect to all three factors of credibility, intimacy and low self-orientation. If others are willing to trust their gut, and your own intentions are clean—then help them do so.

We don’t have to wait for the passage of time to create trust, and then the right to sell. We can develop trust within the sales process itself—rapidly, and legitimately.

For continued reading about Trust and Time check out: The Biggest Trust Myth of All Time

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THE TRUSTED ADVISOR FIELDBOOK

The pragmatic, field-oriented follow-on to the classic The Trusted Advisor. Green and Howe go deep into the how-to’s of trusted business relationships—loaded with stories, exercises, tips and tricks, and deeply practical advice.
FIND OUT MORE



TRUST-BASED SELLING

TrustBasedSelling“Sales” and “Trust” rarely inhabit the same sentence. Customers fear being “sold” — they suspect sellers have only their own interests at heart. Is this a built-in conflict? Or can sellers serve buyers’ interests and their own as well? The solution is simple to state, hard to live—and totally worth the effort.

FIND OUT MORE



THE TRUSTED ADVISOR

The Trusted AdvisorThis classic book explores the paradigm of trust through the filter of professional services. It is a blend of thought and practice, clear ideas and practical suggestions, and it has found a place on many professionals’ working bookshelves.

FIND OUT MORE

The Trust Equation: A Primer

The basic elements of trustworthiness are contained in the Trust Equation.

T stands for Trustworthiness—how much the buyer/client trusts the seller, or consultant.

C is Credibility—it speaks to words. Can we be believed, based on our credentials and truthfulness?

R is Reliability—it speaks to the consistency of actions. Do we meet expectations, and do our actions reflect our words (integrity)?

I is Intimacy—it speaks to the security or safety a client feels. Do we connect with and understand them? Do they feel safe sharing information with us?

S is Self-Orientation, the lone term in the denominator, and it has a double meaning. Partly it’s about selfishness. Are we client-centric for the sake of the client? Or client-centric like a vulture?

But Self-orientation is also about our attention, our focus. Are we listening just to get data to pursue our own hypotheses and ends? Or are we listening to truly hear the client? Are we obsessed by our own desires to succeed or win, and by our insecurities? Or do we truly focus on the client, paying attention to whatever it is that helps them succeed, or makes them insecure? Only the latter builds deep, long-term relationships.

High numerator scores build trust: a high score in self-orientation destroys it.

Most of us lead with the first two factors—credibility and reliability. These are quantifiable, and “rational.” Consultants overrate these as the “obvious” virtues—so do clients. Clients aren’t comfortable “confessing” that they have feelings, intuitions, instincts and chemistry. They don’t want to reject someone based on “we just didn’t have a good feeling for you.”

But most humans—including clients—buy from the heart, and justify it from the head. That means the Intimacy and the Self-Orientation factors are very powerful in buying.

Rational thinking (including C and R) is about defining benefits and payoffs. But any expected value must be discounted by the client’s confidence that they’ll get the results promised. The I and S factors speak to this. Can I collaborate and be honest with this person—and he with me? Does she actually care about me and my company, or are we just means to her ends? The I and S factors in the trust equation represent the non-rational impact that every client applies to their estimation of stated benefits to calculate their true net expected value.

Watch Video: Charles Green on Trust Equation 



The trust equation reflects the human balance of mind and heart. Together, it creates powerful economics. Many con-men are credible, and sharks are reliably shark-like. But if we get a sense that a seller understands and appreciates us—and that they seem to have our better interests at heart—then we allow their intelligence and dependability to be of service to us.

The economics of repeat business are massively lower costs, and higher value, for both trustor and trustee. Relationships are built not on one-off transactions, but on longer term commitments by each to the success of the other. It’s this commitment to the other that paradoxically creates more value for each. Relationships trump transactions, with trust at the heart of the matter.

For continued reading check out: The Trust Quotient and the Science Behind It

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THE TRUSTED ADVISOR FIELDBOOK

The pragmatic, field-oriented follow-on to the classic The Trusted Advisor. Green and Howe go deep into the how-to’s of trusted business relationships—loaded with stories, exercises, tips and tricks, and deeply practical advice.
FIND OUT MORE



TRUST-BASED SELLING

TrustBasedSelling“Sales” and “Trust” rarely inhabit the same sentence. Customers fear being “sold” — they suspect sellers have only their own interests at heart. Is this a built-in conflict? Or can sellers serve buyers’ interests and their own as well? The solution is simple to state, hard to live—and totally worth the effort.

FIND OUT MORE



THE TRUSTED ADVISOR

The Trusted AdvisorThis classic book explores the paradigm of trust through the filter of professional services. It is a blend of thought and practice, clear ideas and practical suggestions, and it has found a place on many professionals’ working bookshelves.

FIND OUT MORE

The Point of Listening is Not What You Hear, but the Listening Itself

What’s the role of listening in the sales literature? Here are two examples culled from internet searches:

Successful sales are based on discovering what customers need and providing solutions to these needs. Always focus your questions on moving toward a greater understanding of your customer’s needs.

The secret to selling like a professional is to listen closely to the client. Find out as much as possible that might be relevant to your service. Ask questions about their expectations. Then when you have that knowledge, discuss only the aspects of your service that have a direct bearing on your clients stated needs.

By this view, listening is a key step in a sales process. We listen in order to discover needs. Having discovered the needs, we can then better tune our offerings, or our presentations, to those needs. This allows us to screen out unlikely prospects (improving efficiency) and to better address good prospects (improving effectiveness).

That’s the conventional wisdom. It probably sounds so obvious as to border on the banal. But occasionally, conventional wisdom is wrong. And this is one of those cases.

The greatest value of listening lies not in what is heard, but in the act of listening itself.
To see why, let’s explore the conventional wisdom.

There are three key assumptions in the conventional approach. Every one of them is misleading, and at least partly wrong. They are:

  • Selling is about transactions, or about multiple transactions in sequence;
  • The purpose of listening is to find out information—in particular, needs;
  • The buyer has this information.

In truth:

  • Selling is best understood (and done) by anchoring transactions in the context of relationships—not by treating relationships as a phase in a transactional process;
  • The value of listening goes well beyond “finding out data;” its greatest value is in disposing the client to engage differently with both the salesperson, and around his or her needs;
  • The assumption that the buyer is conscious of his or her needs and will part with them if artfully asked the right questions is a flawed assumption. Buyers aren’t fully conscious of their needs, aren’t necessarily disposed to reveal them, and direct rational inquiry is not the best route to either raised consciousness or enhanced revelation.

Let’s break this down to two issues—sales process models (how we think about selling) and buyer psychology (how buyers think about buying).

SALES PROCESS MODELS

Sales models are ubiquitous in corporate selling. CRM systems are built around them. Sales management is driven by data surrounding them. But almost all sales models are simple linear, sequential models—usually depicted as arrows. Early on in those arrows, we find listening.

The role of “relationships” in those arrows is either non-existent (the model depicts purely transactional sales “events”), depicted as a feedback loop (“go back and repeat from point B”), or is contained in the early-stage process listening step (“listen until rapport is formed; than move to needs-based questioning.”)

But that’s not how it really works. In the real world, relationships function as a substrate, a precondition, a context. Except for a purely cold call, sales do not happen in a vacuum. Farmers don’t plant seed in untended soil, no matter how fertile the ground. They plow it, turn it, fertilize it, water it, and wait for just the right time to plant. That is how really good salespeople treat relationships.

Really successful salespeople are always establishing and deepening relationships with people. Doing so earns them the right to engage in a different form of conversation, around a buyer’s needs and around selling. They use that right with some and not with others; and they use that right at once with some, and later with others.

A really successful salesperson builds relationships with some who may not end up buying. They may build a relationship with someone and engage in selling at a later date.

If you think the “purpose” of building a relationship is to lead you along a process of selling the client, then you are likely to ask questions in order to get answers. Your idea of “listening” will be in service to driving the process model forward.

And your prospect will get the same idea: “He’s listening to me in order to find an opening to best present whatever he’s selling. I’ll go along ias long as it suits me, but I’m on my guard.”

By contrast, if you think the “purpose” of building a relationship has a much looser connection with a sales transaction, then you are likely to ask questions more out of curiosity, aimed solely at getting to know the person or understanding the broader business context—without a specific agenda, transaction or “opening.”

And your prospect will get the same idea: “He’s listening to me genuinely, with some interest in me and in how I see things. This is good, he’s coming to understand me on my terms, not to sell me something. I’m willing to continue talking.”

If you work from a linear process model that makes listening a tactic to achieve a transaction, then you are only listening to hear your pre-conceived ideas. You are, in a nutshell, self-oriented. That is seller-centric selling. And it doesn’t promote trust.

BUYER PSYCHOLOGY

Ask a client what they want, and they’ll tell you “expertise; credentials; someone who’ll meet my needs.” Ask them what their needs are, and they’ll tell you.

But ask really successful salespeople (or honest clients with experience in buying) and they’ll tell you how it really works. Clients only ask for credentials and expertise because they’re not really sure what else to do. In truth, they’d rather get in range with expertise, and then decide based on their trust in the seller.

Clients will tell you their needs because they think they’re supposed to, and because they’re afraid if they don’t, you’ll take advantage of them. But if you can engage them in honest discussion, they’ll admit their uncertainties, and discuss, engage in and evolve their views of what their needs are.

It all depends on why you’re listening.

If you’re listening to hear an answer to a predetermined question, then you will hear the “canned” definitions of needs that clients have prepared for you. You’ll hear their request for credentials and expertise at face value, and not hear the undertone in the question, or in the bored way they listen to your answer.

Because what clients really want to talk about is what everyone wants to talk about. Themselves. When someone says, “tell me about yourself,” they’re just being polite—whether it’s on a date, at a social event, or in a sales call. The right answer is not to tell them about your vast experience with other clients—it is to get them talking about themselves. And to listen as they do so.

THE QUALITY OF LISTENING

The usual form of listening is conditioned by sales models looking for answers, and by flawed views of buyer psychology focused on surface dialogue. What is required is a different quality of listening.

The main reason for listening to customers is to allow the customer to be heard. Really heard. As in, actually being paid attention to by another human being.

This kind of listening is listening for the sake of listening. Listening to understand, period—no strings attached, no links back to your product, no refined problem statements. Because that’s what people in relationships, at their best, really do. They listen because they want to know what the other person thinks. About whatever the other person is interested in talking about.

This kind of listening validates other people. It connects us to them. It provides meaning. And—among other things—it sets the stage for sellers and buyers to interact—if that is the right thing to happen next.

Brooks and Travesano (“You’re Working too Hard to Make the Sale”) note that people greatly prefer to buy what they need from those who understand what it is that they want.

Read that over again, carefully. People prefer to buy what they need (stuff they’re going to buy anyway), from those who understand them on the basis of what they want (things in life they’d love to have—wishes, hopes, desires.)

You don’t even have to give them what they want; it’s enough to understand them.

To bring it full circle back to listening: Relationships are the context for successful selling. Relationships are based on trust; they predispose us to engage in qualitatively different kinds of sales conversations. And listening—unrestricted, unbounded, listening for its own sake—is the way we develop such relationships.

And therein lies the paradox. The most powerful way to sell depends on unlinking listening from selling—and instead, just listening. Listening not as a step in a sales process, and not as a search for answers to questions. Listening not as a means to an end, but as an end in itself.

The point of listening is not what you hear, but the act of listening itself.

MAKING IT WORK

Here are 5 tips to listening this way. Number five is the most powerful.

1. Ditch the distractions. You cannot multitask undiscovered. Being multitasked feels insulting. Close the door. Face away from the window. Blank the computer screen. Turn the blackberry over. Now—pay attention.

2. Use your whole body. Lean toward the speaker—even on the phone. Use facial expressions. Use hands and arms, shake your head, use ‘non-verbal’ verbals. This improves your listening—and indicates you are listening.

3. Keep it about them—not you. Use open-ended, not closed, questions. Let them tell their own story—don’t use them as foils for your hypotheses.

4. Acknowledge frequently. Paraphrase data, empathize with emotions. Make sure you are hearing both correctly; make sure they know you are.

5. Think out loud. The biggest obstacle to listening is your own thinking. Be courageous—postpone your thinking until they’re done talking. Be willing to think out loud—with the client. Doing so role-models collaboration and transparency, which reinforces trust. I hear you. I value you. I respond to you, with no hidden agenda. I trust you. You can trust me.

That’s the message of listening.

My Client Is a Jerk: Three Keys to Transforming Relationships Gone Wrong

Have you ever had a difficult client? I don’t mean the client from hell, I just mean garden variety difficult. Difficult clients come in lots of different flavors.

• There’s the client who will not take the time up front to share critical information, explore ideas, or otherwise involve you in early stages;

• There’s the client who just cannot make a decision, regardless of how much data or analyses you provide at their request;

• There’s the client who is frozen by politics or fear or ignorance, who will not face facts about critical issues;

• Finally, there’s the client with personality issues, who argues, or rejects, or is otherwise disrespectful to you and your team, and who often shows favoritism to someone else rather than us.

Fortunately, there is a common thread to all these cases, which—if we understand it—can help us succeed.

The common thread has nothing to do with the clients. The common thread is us.

The Client Situation

First, let’s get some perspective—about our clients, and about ourselves.

We’ve all said, if only in our heads, “my client is a jerk.” But “my client is a jerk” is a terrible problem statement.

First, the client is unlikely to accept it as a problem statement, it’s highly subjective, and it’s quite unverifiable.

And frankly, people in a position to hire outside professionals typically have evidenced some degree of success in life. While it’s popular lately to describe the prevalence of “assholes” in business (see Bob Sutton’s excellent book), my guess is their frequency is overestimated. Most clients are intellectually and emotionally intelligent.

Most clients have spouses, or parents, or siblings, who seem to be quite capable of loving them. Most have a boss who has promoted them. It is wise to assume that, even if their behavior is bad, they have some ability to get by in life. True psychotics are pretty rare in business.

Furthermore, truly bad behavior more often than not comes from decent people who are stressed out. If someone is behaving badly, it’s a good bet that they are afraid—of losing something they have, or of not getting what they want.

If you can identify that fear, then you can replace demonization with a real problem statement—a far more productive approach. If, further, you can talk about that fear with your client, you will create a lasting bond that can serve you both well.

Our Own Situation

What’s true of clients is equally true for us. Particularly in selling, we are loaded with fears. We are afraid, first of all, of not getting the sale. And it goes deeper. We’re afraid of our boss, peers and loved ones knowing that we might not get the sale—afraid of their judgement. We’re afraid of the judging of the client, too—feeling that if we don’t get the sale, it means they think less of us.

But we ourselves carry the ultimate judges around in our own heads. We allow ourselves to be hijacked and held hostage by our own ideas of what constitutes success, or being “good enough,” or whatever value judgments we distill from our past, and apply to ourselves. There’s a thin line between having high standards and beating up on oneself.

If we allow ourselves to act from those fears, we are likely to run from judgment. One of the most emotionally attractive ways out of the tyranny of self-judgment is to blame others. It was not my fault, we want to say; the dog ate my homework. It was a bad hair day. Or—this sale was doomed because I got stuck with a difficult client. If you’d had my client, you couldn’t have done much either. It wasn’t my fault—it was the client.

But blame is more useless to us than our appendix. At least when an appendix gets inflamed, we recognize it and operate to remove it. When blame flares up, people at first commiserate with you, encouraging it. Then as it metastasizes into resentment, people begin to move away from you. Resentment, it is said, is like taking poison and waiting for the other person to die. Misery may love company, but company doesn’t return the favor.

Blaming a client never got you the sale, and it never will; but it may keep you from getting the next one. People don’t like blame-throwers. Clients especially don’t.

If there is such a thing as a truly “difficult” client, the only valid lesson to draw from the experience is to avoid similar clients in future. And that is a lesson best kept to yourself.

Self-Diagnosing

What’s true of clients is equally true for us. Particularly in selling, we are prone to fear, hence to blame. And that leads to nothing good.

The first thing to do is to notice our thoughts. Practice taking a “snapshot” of your thoughts when you are stressed.

Ask yourself, “what is the problem here?” If your mental snapshot answer starts with, “my client won’t…” or “my client doesn’t…” or “I can’t get my client to…” or “my client never…” then you need to step back and reframe your thinking. You are stuck in the blame game, spinning your wheels, and going nowhere.

You need a problem statement that has you in it, first of all. And almost always it should be a problem statement that is joint. If you and your client can’t even agree about why you’re not getting along, you’re certainly not going to make much progress on the substantive issues you want to work on.

Good problem statements are joint. Jointness is reflected in language, e.g.:

• Our problem is we have differing views about the priority of X and Y
• We seem to have a problem in communicating when it comes to Q and R
• It looks like we differ about the timeframe to be considered here.

If you have a “difficult” client, find a “we” statement you can each agree to that gets to the heart of the disagreement.

Fixes

Sometimes, all we need to do is jointly reframe an issue and, voila—our clients no longer seem so difficult.

It never hurts to go back to basics. One reason people act badly is that they have not had someone listen to them. Really listen. Deeply. Without reacting with suggestions or action steps. Just for the sake of understanding. “Just” understanding our clients often ends up being the catalyst that changes everything.

But sometimes, we need to do some advanced work on ourselves—in particular, to find out what we have become attached to that holds us hostage. Here are a few.

a. Don’t hold yourself hostage to the outcome. We should have points of view—that is part of what clients pay for. And we should argue clearly and forcefully for what we believe is right. But we are not responsible for our clients’ actions—only for informing their actions as best we can.
No one ultimately controls another human being without their consent—even at gunpoint. Holding ourselves accountable for changing others is a recipe for misery. Do the next right thing—then detach from the results. You don’t own the outcome.

b. Check your ego at the door. The best way to lose the sale is to try very hard to get the sale; the best way to lose the argument is to try very hard to win the argument. It is not about you. The only one who thinks it is about you is you. Focus on the client, not yourself.

c. Be curious. Is your client “difficult?” Be curious as to why. What is he afraid of? What is at stake for her? What is your role in the situation? What are you afraid of? On what basic issues do you see differently? What do you think the client sees as the problem statement? What problem are you both trying to solve?

There aren’t any difficult clients. Not really. There are only relationships that aren’t working well. And nearly all of those can be fixed. But it must start with us.

As Phil McGee says, “blame is captivity; responsibility is freedom.” To get free of “difficult clients,” take responsibility for fixing the relationships.

Don’t Handle Objections Like Snakes

I googled “sales objections,” and got 43,000 hits. Amazon yields 80 references. It’s a popular topic—objections are what we fear most when we think of “selling.”

The titles indicate how “objection-handling” is viewed. 90% of the verbs that go with “objection” are either “handling” or “overcoming.” (Occasional mention: “eliminating,” “crushing”). And why not? How dare those clients “object” to our wonderful propositions!

All those verbs ooze negativity. The very language we use suggests that “objections” are the enemy—something nasty to be overcome, gotten rid of, dealt with—better yet, conquered, crushed or destroyed.

The way most of us would view having to handle snakes.

Negativity

Here are some typical negative quotes from various selling books. (Note they almost all are based on tangible products businesses, rather than professional services—which makes them sound all the more jarring to a services client’s ear).

On the role of objections:

An objection from a customer can and should be overcome by the closer. There should be no excuse for not overcoming a legitimate, honest objection from the customer. This is the closer’s job: to provide answers, get an agreement, and conquer (close).

A typical logic structure of an objection-handling session:

Salesperson: “What is the reason you are not buying?”

Client: [states his objection].

Salesperson: “Is that the only reason?”

Client: “Yes.”

Salesperson: “Then, if…[eliminates objection]…would you buy?”

Client: “Yes.”

Several elected objection-handling techniques:

The Boomerang: yes, it is expensive, but I don’t think you would want to buy your wife a cheap present.

The Conditional Close: you say you want a red one. If I can phone up and get you one, will you take it today?

The Deflection: Yes, I see what you mean…mmm…Now let me show you the range of finishes you can have…

The Feel/felt/found Model: I understand you feel about that. Many others have felt the same way. And what they have found is that….

These are manipulative, yes—but that’s not the point. They all place us in opposition to the client. They cast the client either as the enemy, or as a hill to be taken.

From this standpoint, “objections” are bound to feel like handling snakes.

The usual, negative, approach to objections is part of a wrong set of beliefs, including:

  • The purpose of business is to make a profit
  • The purpose of selling is to get the revenue
  • The purpose of closing is to get the sale
  • The purpose of objection-handling is to get the close.

You can’t get rid of the snake-handling feel without getting rid of this snakes’ nest of bad thinking.

Here’s an alternative, positive set of ideas:

  • The purpose of business is to add value where none existed
  • The purpose of selling is to jointly articulate and point the way to greater value
  • Closing reflects agreement on a common view of the greater value to be created
  • Objections vaguely indicate lack of agreement on a view of a greater value to be created.

Rethinking Objections

At the outset of a professional relationship, we bring some strong ideas about how to add value. So do our clients. This is as it should be. Working collaboratively with the client to take the best of both perspectives creates the maximum value.

The concept of “objections” undermines that potential synergy. It suggests that selling is a struggle of ideas, a contest of wills, and that our job is to persuade the client of the superiority of ours. Hence we get objection-“handling.” Like snake-“handling”, it has overtones of danger—if we don’t know the tricks of savvy handlers, we’re likely to get bitten.

But we don’t need to go there. If we can approach the client with an open-minded, curiosity-driven, adventuresome, mutual attitude of discovery—then “objections” no longer look like snakes. They are simply emotional statements about the buyer’s readiness. They are information, not attacks.

Of course, there will always be issues of timing, budget, politics and alignment. We need to proactively identify them along with the client. To do any less is unprofessional.

Then there are the issues your tummy tells you are emotional, not rational. Price is a common one, but any objection can be nominally about one thing, and in fact about something else. Most objections have multiple layers.

The temptation is to treat every “objection” as being about what it claims to be. But people buy for emotional reasons, then justify it later in rational terms. We must deal with the emotional underlying the rational.

Sometimes this is best done overtly (“I get the feeling you’re not happy about this; can you say more about it?”) Other times, it is enough to tacitly acknowledge the feelings. The point is to deal with the underlying reality.

Speaking the New Language

We and our clients get stuck in the old language of “objection-handling” and “closing.” We need new language to communicate new approaches, but also to signal ourselves and others that something fundamental has shifted.

Here are some phrases to get rid of, and some new ones to add.

1. Get rid of the word “objections” itself. The term suggests a negative reaction to something we proposed—but this shouldn’t be about us! Let’s start with the client, not with us. Start with the idea of a client’s concerns—not ours.

2. Every client is concerned about change itself. They simply want to know that they have covered all the bases, that they haven’t left anything out. Our role is to help them make sure they have thought of everything—and, where there are answers, to articulate them. And where there are not, to articulate that too.

Your client does not want an advocate, but a trusted advisor. Help them by uncovering all their concerns, not by “handling” their “objections.”

3. Get rid of—completely—the old “if I could meet this objection, then would you buy?” language. It is manipulative, but more importantly, it is all about you and your objectives—not about the client.

4. In initial conversations, start a joint running list of issues and concerns that the client has. Share that list at all times—and work on in it jointly. Introduce issues with the phrase, “If I were in your shoes, I imagine I’d be concerned about…” Make sure that you include some emotional and political issues on your list, e.g. “I would imagine you’d be concerned about how your internal clients will perceive the price you end up paying; is that right?”

5. At several points—particularly after resolving some concerns—look jointly at the list and say, “How are we coming along here? Is this process helping the decision? Are we meeting your time schedule? Are there any concerns that have emerged since we last talked that we need to get onto the list?”

6. If at any point you sense hesitation, say, “I sense that you’ve got some other concern here that we haven’t written down. Is that right? Is it the process itself? Tell me how you’re feeling.” You need to use direct, honest talk here, otherwise the client can withdraw—in which case the trusted relationship you’re working to cultivate can fall down. Honest, unselfish concern is the antidote.

Your objective is not to handle the objection, or close the deal, or get the sale. Those things happen naturally, as outcomes—as long as you don’t make them goals. Making them goals turns your client into objects, and you end up handling them like snakes.

Don’t handle objections; help define and solve client concerns. Let go your concern about the outcome—paradoxically, that willingness the outcome go will improve your outcomes.

Trust in Business: The Core Concepts

Trust relationships are vital to the conduct of business. Some base level of trust is required just to have employment contracts, or to engage in commercial transactions. Beyond such minimum thresholds, trust also plays a major role.

The level of trust in business relationships—whether external, e.g. in sales or advisory roles, or internal, e.g. in a services function—is a greater determinant of success than anything else, including content excellence.

How can we think about trust? What conceptual frameworks do we need in order to intelligently assess and improve on trust relationships, and in particular on our levels of trustworthiness?

This article lays out the core trust models I have developed and adopted over the years. They are taken from The Trusted Advisor (with Maister and Galford, Free Press, 2000), and Trust-based Selling (McGraw-Hill, 2006). There are three.

  1. The Trust Equation: a deconstructive, analytical model of the components of trustworthiness;
  2. The Trust Creation Process: a process model of trust creation through personal interaction—mainly conversations;
  3. The Trust Principles: four principles, or values, which serve as guides to decision-making and conduct to increase trust.

The Trust Equation

Trust is a bi-lateral relationship—one trusts, and the other is the trusted. While the two are related, they’re not the same thing. The trust equation is a model for the second—the one who would be trusted. It is about trustworthiness.

Often we intend more than one thing when we use the word trust. We use it to describe what we think of what people say. We also use it to describe behaviors. We use it to describe whether or not we feel comfortable sharing certain information with someone else. And we use the same word to indicate whether or not we feel other people have our interests at heart, vs. their own interests.

Those four variables can be described as Credibility, Reliability, Intimacy, and Self-Orientation. They can be combined in an equation.

The Trust Equation

Credibility has to do with the words we speak. In a sentence, we might say, “I can trust what she says about intellectual property; she is very credible on the subject.

By contrast, reliability has to do with actions. We might say, for example, “If he says he’ll deliver the product tomorrow, I trust him, because he’s dependable.”

Intimacy refers to the safety or security that we feel when entrusting someone with something. We might say, “I can trust her with that information; she’s never violated my confidentiality before, and she would never embarrass me.”

Self-orientation refers to the focus of the person in question. In particular, whether the person’s focus is primarily on himself or herself or on the other person. We might say, “I can’t trust him on this deal—I don’t think he cares enough about me, he’s focused on what he gets out of the deal.” Or—more commonly—“I don’t trust him—I think he was too concerned about how he was appearing, so he wasn’t really paying attention.”

Increasing the value of the factors in the numerator increases the value of trust. Increasing the value of the denominator—that is, self-orientation—decreases the value of trust.

Since there is only one variable in the denominator and three in the numerator, the most important factor is self-orientation. This is intentional. A seller with low self-orientation is free to really, truly, honestly focus on the customer. Not for his own sake, but for the sake of the customer. Such a focus is rare among salespeople (or people in general, for that matter).

Looking at trust this way covers most of the common meanings of trust that we encounter in everyday business interactions. Note that the meanings are almost entirely personal, not institutional.

People don’t primarily trust institutional entities, they trust other people. The components of credibility and reliability are sometimes used to describe companies or Websites, but at least as often to describe people. The other components—intimacy and self-orientation—are almost entirely about people.

Trust in selling requires good “scores” on all four variables in the equation. But the most important, by far, is low levels of self-orientation.

Living the four trust values is the best way to increase your trustworthiness.

The Trust Creation Process

Trust typically gets created at the individual level, between people, and usually in conversations. The Trust Creation Process is a five-step model for that process:

  1. Engage the client in an open discussion about issues that are key to the client;
  2. Listen to what is important and real to the client; earn the right to offer solutions;
  3. Frame the true root issue, without the language of blame, via caveats, problem statements and hypotheses; take personal risks to explore sensitive issues—articulate a point of view; create by giving away;
  4. Envision an alternate reality, including win-win specific descriptions of outcomes and results, including emotional and political states; clarify benefits—make clear what’s at stake; be tangible about future states;
  5. Commit to actionable next steps that imply significant commitment and movement on the part of each party.

The order in which these sentences occur in a conversation has as much impact as the sentences themselves. That is, you could do a wonderful job on framing the issue or on the commitment to action—but if you do them before you do listening, then the trust process breaks down, or freezes. This becomes clearer when we translate the trust creation process into a sales context, as follows:

  • Engage: I hear X may be an issue for you—is that right?
  • Listen: Gee, that’s interesting; tell me more; what’s behind that?
  • Frame: It sounds like what you may have here is a case of Q.
  • Envision: How will things look three years from now if we fix this?
  • Commit: What if we were to do Z?

The most powerful step in the Trust Creation Process by far is the Listening step. The two most common errors in practice are:

  • Inadequate listening, and
  • Jumping too quickly to the final, action, step.

The Trust Principles

Being or becoming trustworthy cannot be reduced to pure behaviors. You can’t bottle it in a competency model. Our actions are driven by our beliefs, and our beliefs are driven by our values or principles. Trustworthy behavior is way too complex to fake without the beliefs and values behind them. If your values don’t drive you to behave in a trustworthy manner all the time, you’ll be found out quickly.

Hence, the Trust Equation and the way we use the Trust Creation Process model are really just outcomes of the principles we hold. The way to become trusted is to act consistently from those principles—and not just any set of principles will do. There are four specific principles governing trustworthy behavior:

  1. A focus on the Other (client, customer, internal co-worker, boss, partner, subordinate) for the Other’s sake, not just as a means to one’s own ends.We often hear “client-focus,” or “customer-centric.” But these are terms all-too-often framed in terms of economic benefit to the person trying to be trusted.
  2. A collaborative approach to relationships.Collaboration here means a willingness to work together, creating both joint goals and joint approaches to getting there.
  3. A medium to long term relationship perspective, not a short-term transactional focus.Focus on relationships nurtures transactions; but focus on transactions chokes off relationships. The most profitable relationships for both parties are those where multiple transactions over time are assumed in the approach to each transaction.
  4. A habit of being transparent in all one’s dealings.

Transparency has the great virtue of helping recall who said what to whom. It also increases credibility, and lowers self-orientation, by its willingness to keep no secrets.

Applying these principles to all of our actions will develop the fullest possible sort of trusting relationship.

For continued reading about Core Trust Concepts, check out: Understanding The Trust Equation

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TRUST-BASED SELLING

TrustBasedSelling“Sales” and “Trust” rarely inhabit the same sentence. Customers fear being “sold” — they suspect sellers have only their own interests at heart. Is this a built-in conflict? Or can sellers serve buyers’ interests and their own as well? The solution is simple to state, hard to live—and totally worth the effort.

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THE TRUSTED ADVISOR

The Trusted AdvisorThis classic book explores the paradigm of trust through the filter of professional services. It is a blend of thought and practice, clear ideas and practical suggestions, and it has found a place on many professionals’ working bookshelves.

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Are You Client-Focused, Or A Client Vulture?

Much has been written about client focus. We hear about sophisticated clients who will leave if we don’t focus on their needs. We hear about the virtues of client loyalty, and the virtues of measurements like client profitability. The key to competitive success is to do a better job serving clients than the next guy. And so on.

But there’s a dark side to that theme. The reason to be so client-focused is almost always phrased in terms of the benefits to the seller. And that changes everything.

Client focus, as it is too often practiced in business today, is the focus of a vulture. It is all about the benefit to the firm—not to the client. When client benefits are discussed, they are as discussed as a means to the seller’s ends. Yes, we want to serve clients better—but for our sake, not theirs.

Should we be surprised, then, when clients become cynical, send out RFPs, and refer us to third-party buying agents? In our rush to dissect the client brain, we have forgotten that motives matter.

I’m not talking about ethics—I’m talking about the simple facts of trust. We trust those we believe to have our interests at heart, and we distrust those we believe to have their interests at heart. But we particularly distrust those who pretend to be the former, while behaving like the latter.

Sometimes it’s hard to see trust faults in our own business. By way of metaphor, consider an industry recently hard-hit by trust issues—pharmaceuticals. One of the drug manufacturers’ wounds is self-inflicted—the failed relationship between physicians and reps.

Doctors long relied on reps to keep them up to date on new drugs—an important and valuable advisory role. In recent years, the drug companies tried to increase reps’ sales effectiveness. They increased the number of reps per doctor, focusing on hiring young and attractive people. They introduced complex measurement systems to evaluate rep performance, and purchased sophisticated statistical data to calibrate the impact of rep visits on physician prescriptive behavior.

Sensible steps all, it would seem: but they’ve produced negative results.

  • Less than one rep visit in 10 now results in a conversation with a physician, and lasts on average only 90 seconds;
  • Personal relationships have been reduced and curtailed; reps are valued only for the samples they leave, turning them into pill-pushers;
  • The doctors have little respect for the reps, which in turn is debilitating for the reps.

How did this happen? Each change in the system was motivated largely, if not entirely, by a desire to increase physician prescription-writing of drugs produced by the pharmaceutical company. That motivation was very clear to the doctors—and they saw no benefit evident to them. Like most clients, the doctors reacted negatively. A past trusted relationship was degraded because the seller was motivated only by the seller’s needs.

Relationships and Fake Trust

When client focus becomes a tool for seller profit improvement, clients notice and become cynical. Lately, the language of client focus is adopting the language of relationships, fostering yet another layer of cynicism.

Think of “relationship,” “loyalty,” and “trust.” All once had significant emotional connotations—for “loyalty,” think “semper fi” or “’til death do us part.” For “trust,” think the bonds of a handshake, or of fiduciary responsibilities.

Today, loyalty gets defined behaviorally as repeat purchasing behavior. “Client relationship management” software is sold on the basis of its ability to create client profitability analyses (to the software owner, that is, not to the client).

In the dating world, it’s considered forward to say you want a relationship on the first date—but in business, some firms have gone one better and built “relationship” into a marketing slogan before even meeting the client.

Relationship concepts have been hijacked in service to selfish motives. When a company’s ad copy says, “you care about your children; that’s why we here at XYZ corporation are doing blah blah blah” the company is not only lying, but lying baldly and shamelessly about their motives.
What is at stake here is no less than the meaning of words, and therefore the credibility and trust of the company saying them.

Being Truly Client-Focused

The most difficult act for us as sellers of professional services is to stop viewing everything from our own perspective. And it has to be a personal act—a self-willed, psychological belief or attitude.
The economics of trust-based selling™ rest on a paradox: if we do what is good for the consumer, we will eventually gain more than our proportionate share of business. It may not come from this transaction, in this quarter—or even from this client—but it will come. Nothing motivates repeat business or referrals better than a trust-based relationship with the provider.
If our motives for being trusted are not truly client-focused—then it all falls apart. This is the paradox. Great results come from client focus—but only if you stop doing client focus in order to achieve results for yourself.

In today’s business climate, “best practices” and financial analyses are defined in ever-smaller, ever-shorter, ever-narrower slices. They are often not “best,” but among the most insidious.
These practices are harmful because they blind us to opportunities to serve our clients.

In the perennial Christmas movie Miracle on 34th Street, Macy’s Santa Claus is nearly fired for recommending that a client go to competitor Gimbel’s for a particular product. That is, until Macy’s Chairman realizes the profound increase in client trust produced by Santa’s approach—having faith that doing right by the customer will end up helping Macy’s anyway.
Being truly client-focused means believing in the superiority of client relationship strategies over competitor-focused strategies; the medium- and long-term over successive short-terms; and truth-telling over spinning.

The good news is the field is wide open for firms willing to practice what everyone else only preaches—serving the client, believing that to do so will ultimately return more than the self-serving narrowly calculating strategies of the vulture can ever hope to do.

A truly client-focused relationship strategy built on trust is the best deal going. It is rare; most competitors are afraid to try it. It is powerful; ask any successful salesperson about the power of trust. And it is proven—just look at your own behavior as a buyer in relation to a seller you trust.

Trusting relationships have to start with the selling firm, not the client. Go ahead, take a risk. The ultimate paradox is, taking a risk ends up being the lowest risk. Being trusted is a very low-risk, high-return strategy.

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THE TRUSTED ADVISOR FIELDBOOK

The pragmatic, field-oriented follow-on to the classic The Trusted Advisor. Green and Howe go deep into the how-to’s of trusted business relationships—loaded with stories, exercises, tips and tricks, and deeply practical advice.
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TRUST-BASED SELLING

TrustBasedSelling“Sales” and “Trust” rarely inhabit the same sentence. Customers fear being “sold” — they suspect sellers have only their own interests at heart. Is this a built-in conflict? Or can sellers serve buyers’ interests and their own as well? The solution is simple to state, hard to live—and totally worth the effort.

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THE TRUSTED ADVISOR

The Trusted AdvisorThis classic book explores the paradigm of trust through the filter of professional services. It is a blend of thought and practice, clear ideas and practical suggestions, and it has found a place on many professionals’ working bookshelves.

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Why Your Sales Process Matters Less Than The Psychology Of Selling

Think of the business development training programs you’ve attended—the sales books you’ve read—the internal discussions about selling. What proportion of those efforts focused on:

  1. The business process of selling: lead management, pipelines and sales funnels, account classifications, account planning, call planning, buyer/influencer categorization, account strategy development, forecasting, preparation of marketing and sales support materials?
  2. The personal interactions of selling: the conduct of sales meetings, listening skills, question formulation, reading buyer signals, meeting design and facilitation, handling objections, talking price, presentation skills?

The firms I’ve worked with spend more time and effort on the former—much more. And their sales suffer as a result. Most need more emphasis on interpersonal interactions. This is evident in the numbers, and in buyer behavior.

The Numbers

Suppose every 100 leads your firm gets generates 70 personal sales calls. 45 of these sales calls reach the proposal stage, yielding 20 final sales, averaging $100K each. You can improve your results in three distinct ways:

  1. Get more leads in the door;
  2. Be more efficient at each step, though mainly the early steps;
  3. Be more effective at each step, though mainly in the later steps.

Broadly, 1. is marketing; 2. is process improvement; and 3. is personal sales effectiveness. In this article, I’ll address only 2. and 3. Improving your efficiency reduces “dry holes” – the time you spend on low probability efforts. Suppose you qualify out 40% of leads, instead of 30%, yet manage to keep the same number of proposals—45—of equal quality. You have—best case—saved the cost of 10 personal sales calls. This increases sales ROI by decreasing the “I” factor. By contrast, effectiveness addresses the “R” factor. You might raise the sales yield per proposal from 20/45, or 44%, to 25/45, or 56%, and the average proposal size up 20% to $120K. If your process’s yield rates are higher at the front end (e.g. from leads to sales calls) than at the back (e.g. proposals to sales), then you probably need more efficiency, and should look at process design. But, if your later-stage yield rates are below 50%, and/or your average sale varies widely in size, you will benefit more from improved personal effectiveness.

Buyer Behavior

Do clients buy rationally, analytically, based on the numbers, transaction by transaction, impersonally, with risk built into the price, and with deep product knowledge? Or do they buy emotionally, based on relationships, without full product knowledge, and with an aversion to risk? My clients often tell me two contradictory statements at different times:

  1. Their business is complex, specialized, customized, one-off;
  2. Their business is becoming commoditized and price-competitive.

Looking at products alone, the second is right. An audit, a bit of market research, or an actuarial review of a pension plan will be done similarly by similar firms. But the client-professional relationship itself is almost infinitely differentiable.

Let’s explore just one variable—price. Try listing the last ten competitive bids you lost. How many did you lose on price? Now list the last ten bids you won: how often did the client tell you that you won because you were low bidder? Let me guess: a lot less than you lost. In truth, you didn’t “lose” on price. You lost—and won—on the relationship.

Price is a convenient fiction we all embrace. Claiming price is the deciding factor is convenient for clients because it avoids uncomfortable discussions (picture breaking up with someone, and them saying, “But why—I don’t understand?”). It’s convenient for us because we have little taste for hearing why someone rejected us. (“Rejection! If I’d wanted to deal in rejection, I’d have gone into sales!”)

What’s true for price is true for other aspects of buying: prospecting, benefits, objection handling, closing. Clients buy more emotionally than we like to admit. On the basis of the numbers, and of client buying behavior, most firms should put high emphasis on personal sales effectiveness, and lower emphasis on systemic efficiency. In practice, the opposite happens.

Why Does The “Sales Process” View Dominate?

Because professionals like it that way. It’s a “like” rooted in fear. “Sell” is a four-letter word in professional services firms (PSFs). “Business development” is preferred—in the passive voice, since “developing business” sounds too aggressive. The legal profession still constrains advertising. Some consulting firms (Accenture, KPMG, McKinsey) use sponsorships or image advertising, but often say “we don’t sell.”

Most professionals see “selling” as antithetical to professionalism. Business schools have adopted a research-driven, hard-science-paradigm approach to business education drenched in academic data, statistics, and a strong bias for behavioral descriptions of human relations. In the “real world,” you hear “if you can’t measure it, you can’t manage it” (patently false on the face of it, but that’s another article). There is a bias for measurement, data, behavior, plans and results, gaps and needs assessments, variances, and alignment of quantitative results and rewards. Hardly any top MBA program teaches personal selling—because it isn’t “academic” enough.

Finally, people who become consultants, accountants, actuaries, or lawyers are (relatively) more comfortable with abstractions, numbers, and data than with interpersonal interactions. The result: a desire to keep the world one step removed, reinforced by business schools and business dogma alike. Professionals want to believe that selling can be managed like their content: by data analysis, done comfortably in the office, with occasional forays to client sites—though only after careful planning to minimize surprise interactions. Viewing sales as a process is a comfort zone issue: we fear the reverse. Hence the popularity of colored sheets, classification of buyer power centers, elaborate sales funnel forecasting systems, and—the mother of all data lodes—CRM systems. Unfortunately, just because we like to sell this way doesn’t mean clients buy this way.

Why Buyers Behave Non-Rationally

Buyers are not stupid. What they do makes perfect sense. They first use linear processes and statistical data to screen; they then make selection decisions emotionally. Clients decide with the heart, and rationalize their decision with the brain. Buyers don’t just want a solution: they want to feel good about it. They want to sleep well at night, to believe that surprises will be resolved satisfactorily, and that the salesperson has the buyer’s interests at heart.

A service provider’s trustworthiness is immensely valuable to a client. Clients will pay for that value—if only they can find it. Clients hate buying from the lowest-cost provider. They’d far rather buy what they have to buy anyway from someone they trust.

Trust, Processes, And Psychology

Many professionals believe trust is created through brands, credentials, brains, and great work. Sadly, it’s not. Trust is a psychological relationship between individuals. People trust people, not institutions. Credibility and reliability are just two trust drivers: a sense of intimacy is another. Most important is the buyer’s belief that the seller has her best interests at heart.

Trust isn’t created back at the office, but in real-time personal interactions. And, it’s created—or not—during the sale. All buying situations contain both business process and personal psychology. Most professionals emphasize the former. Selling economics and buyer behavior suggest otherwise. Firms should recognize the rich emotional content of the client’s buying process, and address it more in the ways they approach business development.