Ditch the Elevator Pitch and Take the Escalator or the Stairs

As tech infiltrates every aspect of our personal and business lives, efficiency becomes an ever-more celebrated virtue. This is as true in communications as elsewhere. Think one-word book titles (Blink, Switch, Drive); think the obsession with CRM metrics; and think the Elevator Speech.

You know the “Elevator Speech.” It’s the hypothetical answer you would give if you were alone in a high-rise building elevator with the CEO of a potential client. Presumably the CEO says, “Tell me about your company,” or “Tell me why we should work with you.” Your presumed answer – sometimes called “the elevator pitch” – turns out to be a good solution in search of the right problem.

There are situations where a 30- to 60-second answer to those questions is exactly what’s called for. But there are other situations – far more, in fact – where different approaches are called for – let’s call them the Escalator Speech and the Stairs Speech.

THE STANDARD ELEVATOR SPEECH

Try searching “elevator speech.” Depending on whom you read your elevator speech should last 30 seconds – or maybe 120. It should answer the question, “What do you do?” or maybe it should just make an impression. It should – or shouldn’t – be a sales pitch. It is applicable to a job hunter, as well as to an entrepreneur in search of venture capital.

One size does not fit all, of course. But there is one simple question to help you craft your response speech, and it is this: What does the other person really want from you?

There are three possible answers, each requiring a different “speech”:

  1. Do I want to be involved with these people?
  2. What can these people do for me?
  3. Who are these people, and do I care?

Let’s examine each.

DO I WANT TO BE INVOLVED WITH THESE PEOPLE? THE TRUE ELEVATOR SPEECH

If you’re an entrepreneur pitching a venture capitalist, there is a definite frame of reference established simply by naming those two roles. A venture capitalist’s key question is, “Shall I invest more time, and ultimately more money, in developing an investor relationship with these people?”

Answering that question is part of what venture capitalists do. They deal in business models, competitive analyses, concept descriptions, and corporate story lines. A snappy 60-second comprehensive, high-talk, low-listen pitch is very right – if you’re an entrepreneur in an elevator with a venture capitalist.

WHAT CAN THESE PEOPLE DO FOR ME? THE ESCALATOR SPEECH

That question rarely comes up in other corporate roles. A line executive doesn’t spend much of his time interviewing consulting firms or deciding on systems or communications vendors. Even an HR executive doesn’t spend a lot of time interviewing candidates.

If such clients are approached by someone in a captive audience situation and forced to endure a 60-second speech – no matter how insightful or clever – their reaction is likely to be one of resentment. They didn’t ask to be informed about the benefits of a relationship. If anything, it feels presumptuous if a consultant or vendor starts to talk about one. If they’re with you on a trip to the 46th floor, this is when they hit the 26th floor button and say, “Oh, I just remembered, I have to…”

And yet consultants and vendors are often encouraged to think about the “elevator speech” concept – to emulate the entrepreneur – and begin telling their “life story” to a stranger who hasn’t invited a relationship conversation.

Meanwhile, the client is stuck back at something like, “Relationship? Slow down – I don’t even know what you can do for me. Let’s not put the cart ahead of the horse.”

This is the question more commonly being asked in a happenstance business encounter. The client is not interested in an investment relationship, but they might be interested in a simple services relationship. It depends on what we can do for them. So, answer that question. Do it with what I’ll call the “Escalator Speech.”

The Escalator Speech should be limited to about 20 seconds and culminate in a question. The rest of the time is entirely up to the client—who can, after all, choose to invite you to continue the conversation on whatever building floor they choose.

Your “speech” needs to sound something like this:

Mr. Jones, I’m James Smith from XYZ Associates. We’ve worked with a customer of yours, ABC, and I’m acquainted with Janice Johnson of your firm. We work to improve trust levels in our clients’ sales processes. It’s always seemed to me there’s untapped potential for improved customer relationships in your insurance business by changing the way benefits payments are transmitted. Do you see it that way too? Why isn’t there more personal contact at that critical point in the industry’s business process models?

Then shut up and listen for the rest of the escalator ride. There are two possible outcomes to this conversation, and both are good:

  1. The client says, “You’re right, it’s a constant source of amazement to me that we don’t do a better job on that. Let’s talk some more about how you’ve gotten organizations to do that.” Good conversation ensues.
  2. The client says, “Ah, that’s what many people think, and it sounds right at first, but there’s a hidden reason it doesn’t happen this way, and I’ll let you in on it. The reason is….” Even better conversation ensues, because you learned something, and the client had the pleasant experience of giving a smart person an even better education. They get to look smart – always a fun thing. Your original insight doesn’t have to be right; it just has to be intelligent and thoughtful.

The Escalator Speech starts off by giving the bare minimum of information required for social comfort, then it offers a piece of free insight to the client, ending with a genuine question. This gives the client total control over whether to take the conversation further.

DO I CARE WHO THEY ARE? THE STAIRS SPEECH

Both the elevator and escalator speeches happen in a business context – a semi-random event within a non-random environment. But other situations arise as well. You sit next to someone on an airplane who turns out to be a potential client. You go to a neighborhood cocktail party and run into someone who works at a potential client organization.

In such a situation, even an escalator speech is presumptive because the occasion is largely social. The impression you make here is based first on obeying the social roles that govern the situation. And rule number one is you don’t get deeply into business.

In this situation, if someone says, “What do you do?” they’re not inviting you to assess their business, much less pitch your own. And remember, they probably don’t care much about your answer. Their question was a social nicety; they didn’t come to this event looking for business contacts.

Here, you need to say something like this:

“I spent 12 years in consulting. I then joined a small healthcare client company as their CEO. Last year, I started my own consulting firm focused on the health industry. And you – what do you do?”

The rules of this dialogue are that it’s back and forth, and you shouldn’t spend more than 30 to 60 seconds on your side before tossing the conversational ball back to the other side. Your only business objective here is to give the client enough information to know if they care who you are. If they do care, then further discussions can be held later – exchange business cards or email addresses, and look for signs that the other party prefers to start talking about football. Follow their lead.

Let’s call this the Stairs Speech – so named because you take it one step at a time.

The next time someone says to you, “So, tell me, what is it that you do?” ask yourself what that questioner really wants to know.

  • Are they just being polite? Give the Stairs Speech.
  • Are they interested in what you might do for them? Use the Escalator Speech to escalate from monologue to dialogue.
  • Are they interested in investing serious time and money in you? Use the Elevator Speech to show you’re on top of your business and respectful of their time.

There are several ways to get up in a building, and only one involves an elevator.

Handling Sales Rejection Without Becoming a Narcissist

You know the age old saying, “It’s not personal, it’s business.” We’ve all heard it countless times, in office settings and in the movies. It may be something you try to tell yourself after a deal you worked for so hard for goes sour – yet you still have trouble believing it.

Yet, with all that wisdom awash in the atmosphere – why is it that we continue to take sales rejection so personally?

It’s one of the hardest parts of selling – that knife edge space where company revenue stream meets interior personal psychology. The fact is – it is business, and it is personal.

Most solutions share one problem; they are narcissistic, leading the salesperson to believe it’s all about them.

But it’s not all about you. And the sooner you build that insight into your selling, the better.

This is a topic I wish I had written more about in Trust-based Selling, so I’m glad to amplify it here.

Why Dealing with Rejection Messes You Up

Let’s start with the obvious. If you’re not getting some rejections, you’re probably not taking enough risks. So if you avoid rejection, you’re avoiding risk; which means you’re losing sales.

But that’s not all. If you’re avoiding rejection, on some level you know it. If you know you’re avoiding something, you know you’re not doing what you know you could do; you’re not living up to your own self-image. That soaks up a whole lot of energy; it makes you inward focused and unhappy. None of which helps you as a salesperson.

So avoiding rejection hurts your business, and it makes you feel unhappy. Inability to handle rejection hurts you everywhere it counts.

The Three Usual Solutions to Rejection—and Their Weaknesses

There are three common approaches to dealing with rejection. I’ve given them each distinctive names. They are:

1. Endure it. This approach suggests there is some natural relationship between the numbers of rejections you have to endure to get to the good stuff. If you spin the wheel long enough, your number will come up. Get out there and dial for dollars.

The problem: it’s hard to treat prospects as people if you’re just counting their no’s.

2. Shrink it. This approach says. “It’s not about you, it’s not personal, you shouldn’t feel hurt.” Bring in the shrinks; think your way into not feeling.

The problem: it really is personal. In fact, it’s about as personal as it gets – and you know it.

3. Motivate through it. This approach relies on getting you ‘motivated,’ which usually means pumped up, psyched, and able to just play through the pain.

The problem: prospects don’t appreciate being bulldozed.

Why “Handling Rejection” is Narcissistic

All those solutions have one defect: they’re all about managing your psychological response to an issue called “rejection.” But here’s the key: rejection is an imaginary concept – a fiction, a figment of your imagination.

“Rejection” is a belief that if something happened that affected you, then it must have happened to you – that it was about you, concerning you, because of you, etc. And that’s what I’ll refer to as narcissism – a tendency to view everything as being about you.

(Not-so-ancient societies used to believe that the sun and the planets revolved around the earth. There’s a very natural human tendency to believe that we are at the center of our own anthropomorphic universe, our own private Idaho. Much of growing up is getting over this idea, and most of us are only partially successful at it).

Instead of “dealing with rejection” let’s focus on what’s really going on in the real world – the world outside your head.

Curiosity is the Real Antidote to Rejection

Think of selling as a scavenger hunt. On a scavenger hunt, you go off into a relatively unstructured environment, looking for pre-defined items to collect. Of course, you’re interested in winning; but the game itself is fun as well.

In the game, you decide how and where to spend your time. You set priorities, and notice how and what your competitors are doing. There is skill involved in collecting the items. And you often end up in blind alleys when a particular path didn’t pan out for you.

What you don’t feel on a scavenger hunt is rejection. There simply is no such thing. It is not about you; it is just a process involving many people, of whom you are one.

All you need on a scavenger hunt is curiosity. And curiosity is a perfect emotion to bring to sales. Curiosity means you don’t have to ignore your emotions, or play through them, or convince yourself you’re immune to them. Instead, you’re just paying attention to a different set of issues. Let’s call those issues ‘reality.’

In the real world, nothing is being rejected; there are simply solutions and fits, or not-solutions and not-fits. It’s not a struggle – it’s a puzzle. If you’re a good solution to that puzzle and are curious enough, you might solve it. If you’re not a good solution for it, and/or aren’t curious, then you probably won’t.

So where’s ‘rejection’ in all this? In your head. So just stop it.

Three Steps You Can Take to Reject Rejection

1. Make a list of questions you’d like to know about each of your key prospects. Real questions, things you’d really like to learn.

2. Just as you would in a scavenger hunt, keep track of what you’ve learned at each blind alley. You don’t win scavenger hunts sitting back at the office; you learn by going out and finding blind ends.

3. Be alive. Have fun. Keep your ears open. There’s no point in blinding your senses in a scavenger hunt; why blind your emotions in the sales hunt? Just use them to figure out the puzzle.

Did the post-Copernican western world feel “rejected” by the sun when they found out it didn’t revolve around the earth? Of course not – though they probably did feel deflated. But that was just because they were cosmologically narcissistic. You don’t have to be that dumb or that narcissistic.

Nobody can reject you without your complicity in defining ‘rejection.’ Any time you hear ‘handling rejection,’ learn to laugh at yourself for thinking it’s about you – and go back to being curious.

Santa Does Trust-based Selling

Some of you are partaking in the annual ritual of watching Christmas movies – most notably the perennial It’s a Wonderful Life. This is not about that movie.

Instead, I want to remind you of an interesting lesson from the seasonal also-ran, Miracle on 34th Street.

Nominally a cute tale about the existence of Santa Claus and the power of belief (featuring a starry-eyed 6-year-old girl, and the comic relief of the US Post Office dragging in all those letters to Santa as proof-of-existence), it has a hidden gem buried within about the power of trust-based selling.

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The “real” Santa (a kindly old man who is or is not deluded) is employed by Macy’s in its flagship store as, of course, Santa. Santa is nearly fired by a numbers-driven Type-A middle manager for suggesting to a shopper that she buy the toy from Gimbel’s across the street.  (The cynical shopper confounds the manager by congratulating him on “this wonderful new stunt you’re pullin’.”)

This “stunt,” of course, is the Acid Test of Trust-based Selling: the willingness to refer a customer to a direct competitor, if that is the right thing to do for the customer. But it doesn’t end there, with a whimsical sappy Santa.

Macy’s President happens along and instantly realizes that Santa’s customer focus is far more effective for Macy’s than the conventional approaches to sales.  He announces:

…not only will our Santa Claus continue in this manner…but I want every salesperson in this store to do precisely the same thing. If we haven’t got exactly what the customer wants, we’ll send him where he can get it.

No high pressuring and forcing a customer to take something he doesn’t really want. We’ll be known as the helpful store, the friendly store, the store with a heart, the store that places public service ahead of profits.

And, consequently, we’ll make more profits than ever before.

Exactly.

If you focus relentlessly on the customer, you-the-seller will do just fine. Even better “than ever before.”

The good news is you don’t have to believe in Santa Claus to do this. You just have to follow the Four Trust Principles:

  • Customer focus for the sake of the customer
  • Long- not short-term timeframe
  • Transparency
  • Collaboration

Sometimes we view this as a paradox: relentlessly focusing on the Other ends up serving You as well – but only if you do it genuinely, rather than as a means to an end.

Paradoxical yes, but a Truth well-known to most who delve into human relationships. You get back what you put out. Do unto others. Pay it forward. Be the change you want. And so forth.

Truly a message for the season. And not just for sellers.

The Consulting Industry: the Critical Role of Interpersonal Relationships

This is the first in an occasional series on trust in particular industry verticals. This post looks at the consulting industry.

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In consulting, some things are changing. And some are not.

The biggest trend is, of course, the digitization of the firm’s service offerings. For example, nearly three quarters of one large consulting firm’s HR practice consists of moving processes into the digital age. Naturally, firms increasingly put more emphasis on technical qualifications of their consultants.

Another change, nearly as big, is the shift in business development practices (this one isn’t unique to consulting). Depending on who you talk to (Marketing BlenderGartner), something like 50-60% of the buying process is complete before the buyer meets a seller. This number is only going higher. Naturally, firms focus increasingly on managing that non-personal-contact front end of the business development process.

However, the critical role of interpersonal relationships is not going away. Paradoxically, the increasing role of technology and automation does not mean that the role of relationships is decreasing – in fact, it means exactly the opposite. Here’s why.

On the project side, expertise is a commodity. The markets for human capital are efficient, and widely accessible. On the business development side, virtually no client wants to buy a significant project without understanding, and meeting, the people who will staff it.

This is an important fact of human biology. Reducing the time spent on human interaction merely increases the leverage that such time has on final decisions. Those infrequent interactions take on geometrically more importance as their duration declines.

The implication for consultancies?  The ability to rapidly and genuinely create trust with clients is more critical than ever. You don’t have the luxury of schmooze time to establish comfortable relationships; it’s got to be done deeply and quickly, and done right.

Trusted Advisor and Trust-Based Selling workshops, are aimed at this need. 60% of our work is done in various professional services clients, with consulting a heavy component.

For a discussion about these issues, drop me (Charles Green, CEO, Trusted Advisor Associates) an email at cgreen-at-trustedadvisor-dot-com. You’ll not go onto an email list; there are no automated follow-ups; no cost, no obligation. Just let’s talk.

Don’t Confuse Your KPIs with Your CSFs

I spoke with BigCo, Inc. They wanted their B2B salespeople to become trusted advisors.

They felt (correctly) that greater trust levels with their customers would result in greater intra-customer market share and greater profitability. And they were right – as far as that goes.

But they then described to me their implementation plan. It consisted of breaking down the objectives into finer and finer components and matching them up with accountable business units – pretty standard practice.

As we dug deeper, a pattern emerged. The higher penetration levels, for example, were broken into more sales calls, more proactive ideas, and greater time spent up front. On the face of it, that sounds perfectly reasonable: if penetration were to increase, you’d probably see these changes in activities.

But there’s a causation/correlation problem here. Simply increasing the number of sales calls won’t do a thing; they have to be good calls. Simply offering more ideas won’t do a thing; they have to be decent ideas. Simply spending more time up front won’t do a thing; the time has to be well-spent. And simply assuming good calls, decent ideas, and well-spent time does not make it so.

This sounds perfectly obvious in the telling, but I have found that BigCo’s story (which is a composite of several clients) is common. It may even be the norm.

BigCo confused key performance indicators (KPIs) with critical success factors (CSFs). They confused correlation with causation. They confused measurements with the things being measured. And since we live in a management world that uncritically worships metrics (“if you can’t measure it, you can’t manage it”), this confusion has critical and strategic implications.

That’s especially true when you’re trying to implement a values-driven strategy – such as becoming trusted advisors.

Measurement and Management

Just because something sounds obvious in the retelling, it doesn’t mean it’s obvious when you’re in the middle of it. Case in point: BigCo’s flawed logic in their approach to trust-based selling.

Increasing penetration requires more sales calls, they thought, and they’re probably right. Their mistake lay in thinking that “more sales calls” was a cause. It’s not – it’s an effect.

“More sales calls” may be a KPI, but it’s not a CSF. It may be an outcome, but it’s not a driver. “More sales calls” is a metric. It is not the thing that “more sales calls” is intended to measure. That “thing” is something like “more high-quality interactions driven by mutual curiosity.”

This confusion between actions and measurements, causes and effects, and KPIs and CSFs is not just common – it’s becoming rampant. It’s a real issue for digital age businesses in some ways even more than old-line businesses. Let’s look at some examples.

Gaming the Numbers

We’re all familiar with the salesperson who knows how to tweak an imperfect system to maximize his commissions at the expense of, say, the company’s gross margins. “Hey, I’m just following the incentives you built in,” he might say. That salesperson seized on a metric that imperfectly measured the company’s intended sales behaviors. (The proper management response would be not to change the metric, but to insist on a higher set of principles that overrule one misguided number.)

The next time you get a customer service operator on the line, check to see whether they conclude by saying something like, “May we say that I gave you excellent customer service today?” You are experiencing a system that is driven by metrics to the point where operators shamelessly beg for ratings. The metrics have been pimped out to serve a goal other than the customer service they were meant to measure.

See for yourself. Go to Amazon, and search for books under any significant topic you like (e.g., sales). Make sure you sort on relevance. It’s amazing how many books are rated over four stars (out of five). The reason is simple: we have been taught to look for ratings. Of course, the emphasis on ratings suborns all kind of perjury, misleading comments, and even outright falsehoods.

It’s not just books. Look at the flood of “recommendations” on LinkedIn. Look at the massive follow-me-I-follow-you dynamic on Twitter and other media. Or just look at your own behavior. What do you do when a friend asks you to rate a book, promote a blog post, or recommend them? There is monstrous grade inflation in most customer-rated aspects of business today.

Much of this comes down to our obsession in business with metrics. It goes back to the invention of the spreadsheet and the success of books such as Reengineering the Corporation. Numbers-all-the-time is today’s secular business religion.

The Wages of Confusion

The “so what” is big indeed. Assume any metric, almost by definition, has to be a pale reflection of the “thing” that is to be measured. We accept anniversary gifts as tokens of our love, market share as an indicator of competitive success, and, in the case of BigCo, numbers of sales calls as indicators of trusted advisor relationships. But we all know an anniversary gift does not a marriage make.

The only way to become trusted advisors to your customers is to gain the trust of your customers. You do not cause trust by increasing the number of sales calls; rather, greater trust causes more invitations for you to call on prospects. Doing the dishes doesn’t cause a great marriage; instead, a great marriage results in your doing the dishes willingly.

Confusing KPIs with CSFs causes KPIs to be artificially inflated. We know this intuitively, and so we discount them – while still trying to get higher scores on more of those discounted-value KPI metrics. We all know the game is rigged, but we keep playing it faster and faster.

What’s at stake is nothing less than how we implement things like “better client relationships.” You don’t get there by measuring metrics and deluding yourself that you’re addressing root causes. You get there only by understanding what it takes to interact with your very human customers—and then doing it.

Do that, and the numbers will take care of themselves.

Buddhist Capitalism: Why Trust and Collaboration Outperform Competitive Selling

When we think of capitalism, we typically think of competition as a central, driving force. At a macro-level, we have enshrined the value of competition in our antitrust laws. We think of competition between providers as a way to increase innovation and reduce costs. Adam Smith is frequently (and somewhat inaccurately) cited as the prophet of competition in his concept of the “invisible hand.”

At a micro-level, we have also glorified competition. Athletic competition is seen as a metaphor, as well as a proving ground, for competition in business. Businesses line up to sponsor major athletic events and athletes. And nowhere in business is competition more revered than in sales.

The truth is much of what we think about competition is dysfunctional, suboptimal, and actually destroys value. By contrast, what I’ll whimsically call Buddhist Capitalism shows another way that adds more value. I’ll explore this theme first at the business world level, then at the sales level.

Business Competition in the Real World

In the real world, pure competition leads directly to monopoly. Competition is inherently unstable, resolving to dominance of one more powerful firm over all the others. What we call “competition” in the modern Western world is a finely tuned mix of rules and regulations, as well as a few customs, that serve to keep behavior within socially acceptable bounds.

If you doubt this, think of what the U.S. economy would look like in the absence of the FTA, the FDA, the FAA, the SEC, or the FDIC. Or just look back a few decades in the history books. Maintenance of a state of competition depends enormously on the power of the referees.

Pure competition, even where regulatory regimes are strict, rarely exists. There are imbalances of labor, education, geography, and a hundred other variables. The point is in nearly every industry, there is an imbalance of power, exploited by one party at the expense of the weaker parties. “Competition” in the real world is more or less about zero-sum games, with one party holding the stronger hand.

The definitions of “capitalism” have been hijacked by extremist theoreticians in recent years: people such as Milton Friedman, Ayn Rand, and Alan Greenspan, who believe in a moral purity produced by competition. (Never mind that an ethics built on selfishness isn’t worthy of being called ethics in the first place.)

Buddhist Capitalism

By contrast: imagine an economy relatively unencumbered by laws and regulations, but where trust and custom abounded. An economy with not nearly as many lawyers, but with fewer legal battles. An economy where the frictional costs of competition (and the regulation of competition) are lower, and innovation is higher.

You get such an economy when you introduce the concept of trust and collaboration. Zero-sum games shift to 1+1=3 games. Stephen MR Covey Jr.’s book The Speed of Trust is all about this: when trust is present, speed goes up and cost goes down.

If my Buddhist friends will forgive me the crude colloquial language, I’ll call this Buddhist Capitalism. What I mean is that it focuses on collaboration, not competition; on getting along harmoniously rather than vanquishing; on letting go attachment to outcome rather than obsessing over goal achievement.

It’s far from crazy. The lesson of the Prisoner’s Dilemma work in game theory is that a collaborative strategy always, always beats a competitive strategy if played long term. Research shows that collaboration produces more innovation than solitary introversion. Collaboration and trust build on each other, increasing knowledge of both parties to the point where they can jointly add value, cut costs, and reduce risks.

It may sound like a Beatles song—the more you give, the more you get—but it’s true.

Buddhist Selling

What does all this have to do with sales? Selling is just the micro-version of the same thing. We as human beings have a primal desire for survival, which can easily revert to competition. But we have an equally strong desire for connection, collaboration, and cohesion.

Except for pure commodities (and not even water or electricity is a pure commodity), buyers prefer to buy from sellers they trust. Trusted sellers have their customers’ interests at heart, ahead of their own. They play the long game because they know that the best way to long-term success is through their customers’ success, and, therefore, no particular sale is worth sacrificing the long-term relationship.

Trusted sellers are also not attached to a particular outcome. They don’t keep meticulous score at a detailed level, and they are willing to let their agenda be influenced by client needs. Finally, they keep no secrets from their customers because they see their interests and their customers’ interests as one and the same, and the value of shared information to both parties exceeds the value of secret information privy to just one party.

Of course, these attitudes are hard to come by in a world that prizes competition. Sellers everywhere are taught to compete not only with their competitors, but also with their own customers. Not getting a sale is considered bad form, if not unacceptable. Metrics in sales are short-term, incentives are largely extrinsic, and motivation basically consists of war chants.

But a seller who can “think Buddhist” will outperform a competitive seller over time because customers prefer to deal with sellers they trust. And they do not trust people who are in it for themselves.

The ultimate irony: by being willing to forego a sale and do the right thing, the “Buddhist seller” will end up selling more than the competitive seller.

 

 

 

 

 

 

Trust and Selling to the C-Suite: Interview with Ken Roller

Ken Roller is an experienced B2B salesperson; he spent the past 35 years in Corporate America working for 2 industry leaders (including 21 years at Intel), serving Global 1000 customers.

Ken’s classic sales credentials are impeccable: he exceeded his quarterly sales quota for over 20 years straight – 83 quarters in a row – in a time and in industries that faced brutal competition and roller-coaster global economic conditions.

I came to know Ken during his tenure at Intel; he was extremely helpful to me at a time I was writing Trust-based Selling. We’ve stayed in touch; I asked Ken to share with us some hard-earned wisdom from his career.
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Charlie: Ken, it’s great to have you ‘here’ on Trust Matters. I’ve always thought you embodied many of the things I write about.

Ken: Thank you. I’ve always thought that we’re kindred spirits in our concepts and feelings on how we work and relate to customers and people. One of the inflection points in my professional career was when I read “The Trusted Advisor.” It succinctly captured the essence of selling with integrity, something that is paramount to my being and who I am.

Charlie: Well then, you’re a great person of whom to ask this question: How do you establish trust with “C” level execs at some of the biggest companies in the world?

Ken: First, I’ve always taken seriously my counsel with my customers and would never jeopardize their livelihood, career and their family’s future with my guidance. That’s not pablum, that’s truth; it is the root of my answer to your question.

It’s easy to tell somebody about your experience and the benefits of your products and services. It’s harder to demonstrate that you “truly care.” That has always been a differentiator for me. You quote the late great George Burns as saying, “you can’t fake sincerity.” He’s right, and the continued attempt to do so is why there’s a pervasive view of salespeople being the proverbial “used car salesperson,” with their only concern being themselves and their company.

Charlie: Now, let me just get this straight. I ask you about selling to the C-suite, and your answer is “you have to care?” I don’t think that’s the typical canned response from most sales ‘experts,’ is it? Maybe you can give an example of how you showed a customer “you cared” in this manner?

Ken: Sure. I was blessed that the companies I worked for had world-class products. Even so, the reality is that not all products are always great – or even good.

I was working closely with the CTO and his staff at one of the largest Financial Services companies in the world. Our competitor’s product was 78% faster than our comparable product out of the box! That was the context in which I put together a several day meeting at our facility in Ireland, and had this company’s entire senior staff fly in from Europe and the US for a strategic update.

During the meeting, I asked them if our technical team could work with them to ensure that they implemented our solution properly so we could have a fair bake-off – and, I told them, if our competitor were to beat us, they should purchase their product and shame on us.

When I said that, you could hear an audible gasp come from my company’s execs. They had a look on their face of “Did Ken really just say what I think he said”?
The thought that my career was over suddenly crossed my mind.

However, my customer’s CTO noticed the ruckus I caused and immediately stood up. He said, “Thanks, Ken, for putting together this wonderful 3-day gathering; you’re a breath of fresh air in an industry that is polluted with unscrupulous salespeople.”

“You educated us to the fact that your next generation product, coming out in a few quarters, will have a new micro-architecture that will enable you to leap-frog the performance of your competitors. We believe you, and trust you, and are looking forward to testing your new platform ASAP. We want to work with you Ken.”

He basically told my executive management that my candor and “caring” should be applauded; and if anything were to happen to me, my company would lose their future business.

And…our next generation product did perform as promised, and has been the industry leader ever since.

Charlie: What I called the Acid Test of trust is whether you’re willing to recommend a competitor to a client. In effect, that’s what you did here.

Ken: It’s not that hard if you have a long-term perspective. If you want to build a long-term strategic relationship, and have faith that the next iteration of your product will fix your issues, you’d do what I did. If not, you might sell them your current product, but your reputation will be ruined forever.
Be honest and live to sell another day!

Charlie: Switching gears: I think when a lot of people find themselves in the C-suite, they get tongue-tied. Their pulse rate goes up, they get flustered, and they end up making any number of rookie mistakes. Advice?

Ken: Senior executives have no time for those who are in “awe” of whom they’re meeting.
Confidence – especially, confidence in yourself – is critical. You don’t have to be an expert in everything – but you’d better be expert in something, very clear about the boundary lines – and just as forthright about what you don’t know. Be prepared, and do your homework: then tell the truth. Honesty trumps ignorance.

You have to have great respect for them – but also remember they’re your equal! Deal with your insecurities and don’t psyche yourself out.

Talk about what’s important to the executive. Being STRATEGIC and not tactical is critical. Don’t discuss problems, just solutions. The higher up you go, the more you’ll find people who are surgically focused on growing revenue, innovation, and garnering a competitive advantage.

Charlie: Any additional tips?

Ken: Creating long-term relationships with senior executives is like shooting a good game of pool – you’re always shooting for the next shot!

As we discussed earlier, listen more than you talk, but be prepared based on your research to share some 30-second “nuggets” that will be of interest to them that also demonstrates your reputation as a known expert in your specialty.

Ultimately, if you want a trusted advisor relationship with executives, you have to make sure they see you as a “Player” that a) constantly educates them to things that they and their staff don’t know, and b) does so respectfully but in an insightful, direct manner that clearly shows you have the customer’s interest at heart.

Charlie: In your experience, what’s the single biggest obstacle to a salesperson building trust with their customers?

Ken: That’s an easy one! Sorry for my politically incorrect answer, but it’s imperative that salespeople learn to STFU and LISTEN!

So many salespeople are myopic – enamored with themselves and their voice when the conversation is not about them; it should be about their customers and helping them solve their business / OPEX problems and issues.

That’s why I feel the “Trust Equation” is the single most important sales theory ever created. With Self-Orientation in the denominator, the more you talk about yourself, the less trust you build! So in the words of the Kevin Spacey character from “Swimming with Sharks”, Shut-up, Listen and Learn!

Charlie: Thanks Ken for sharing with us your thoughts and ideas.

Ken: Thank you, as always, it’s been a pleasure!

Perfect Pitch in Sales: 9 Rules

You may know it as the dog and pony show, the beauty contest, the shoot-out. Or you may just call it “the pitch.” The term is especially common in some industries—advertising, executive recruiting, some law firms—but we all know it.

We typically think of it as an event – a rather formal presentation by several professionals made to several members of the client organization that typically lasts 30 to 90 minutes. Secondary characteristics of a pitch often include PowerPoint and a time-slot among a few other competitors who are pitching on the same day.

Let’s be clear: there is no single perfect pitch, since the winning pitch is situational to you and your client. Still, there are some guidelines that hold true. Here are nine rules for perfecting your pitch.

1. When the Best Pitch Isn’t a Pitch

Sometimes the best pitch is one that never happens – because both parties choose an alternative.

Think of a pitch as a blind date where each party is cautious. The quietly cautious buyer wants control and seeks it in an impersonal, formal event. The seller also wants control but expresses it by being assertive. One fears being “sold;” the other fears losing. When both parties are fearful, decisions get made on process, features, and price.

Both parties are often better off starting from a strong relationship. Though both know this, they engage in denial, not wanting to admit it. Sellers may try to go around pitch events. The trick – not really a trick at all – is to explore the possibility of meetings before the pitch during which personal relationships can be established. It’s critical that this be done from a position of respect and honest concern for what’s right for the client.

Sometimes the client then abandons the pitch idea altogether because they find one competitor that seems to understand them uniquely. That’s generally a good outcome for both parties. But do NOT try to force this outcome—you’ll jinx if it you do.

2. The Pre-Pitch Warm-Up

Your objective shouldn’t be to avoid the pitch, but to produce a good outcome for both parties. Any pitch will be improved by prior conversations with as many client people as possible.

If you are meeting the client representatives for the first time at the pitch, your odds are even less than one divided by the number of competitors. It’s less because with total strangers meeting each other, the “none of the above” option frequently appears on the table.

Of course, not every client wants to meet you in advance. Often the intent of the pitch is to prevent such meetings in the first place in pursuit of an “independent, fair” competition. Pushing too hard for meetings can appear distasteful.

How do you know how far to push the suggestion for prior meetings? Simple – ask the client. Point out the advantages of offering all competitors a chance to talk with them in advance, then gracefully yield if the resistance is too strong. You get a few points for offering if you do it respectfully – just don’t push your luck.

If you can talk to people in advance of a pitch, you’ll improve the quality of the pitch for both you and client. Of course, you learn valuable information, and you get to call people by name. But it goes much further than that because the next key to a great pitch is interaction.

3. Interact in the Pitch

Nearly always the client says, “Tell us about yourself.” And nearly all sellers assume that’s what the client wants – after all, they said so!

But the truth is, listening to someone – anyone – talk about themselves for 30 minutes is incredibly boring. Even more important, listening to others does not persuade human beings—they become persuaded by listening to others who have previously listened to them.

Letting clients be heard is critical to successful pitches. If you can’t do it before the pitch, then dare to be great and engineer listening into the pitch. Here are several approaches:

  • Tell the client ahead of time you’d like to ask for reactions
  • Build in “and what about you?” questions into your pitch
  • Offer data about similar situations and ask for comment
  • Ask the client if they’d consider a “first-meeting” approach. Instead of a standard pitch, offer to treat the pitch like a first meeting, as if you’d already been hired, and allow five minutes at the end to talk about how it felt. (This is not a crazy idea; I know of two success stories using it.)
  • If you’ve had any prior-to-pitch conversations, refer to them.

Remember: what you say in the pitch matters less than whether you have listened to them first.

4. Have a Point of View

Your qualifications, credentials, and references are worth absolutely nothing if you can’t show relevance to the client. To walk in without a point of view on the client and the issues facing them is arrogant, disrespectful, and selfish. Those are strong words; let me back them up.

If you want this job, you’ve (hopefully) thought about what you’d do if you got it. If so, why wouldn’t you share it? The probable answer is because you’re afraid you might have gotten it wrong.

But that fear is all about you. Now is precisely the time when not to take a risk is risky. The client wants to see if you’ll do some homework on spec and if you’re willing to engage in real-time thinking about it. They want some sample selling. Showing up with nothing but a track record is like going on a blind date with just a list of past dates. It’s no better as a pitch strategy than as a dating strategy.

5. Collaborate on Talking Price

Conventional wisdom says don’t quote price until the client has heard benefits so that they can properly calculate value. This makes theoretical sense, but it ignores human psychology; price is the elephant in the room during the pitch.

While everyone listens (or pretends to listen) to your pitch, they are all mildly pre-occupied with what your price is going to be. That pre-occupation is death to their ability to listen to you, so air it.

When you walk in, place a five-page pile of paper on the table, saying, “This is the price part of our proposal—the bottom line and four pages of backup explaining it. We don’t want to focus on it, nor do we want to keep it from you. At any point in the conversation today, you can ask us to turn the page over, and we’ll talk about it. Wheneveryou want.”

The point is not when you talk price; it’s about who makes that decision.

6. PowerPoint Pointers

There seems to be an emerging consensus among presentation professionals that looks like this:

  • Most presentations are written as leave-behinds: build your pitch on the presentation, not the leave-behind
  • Less is more: limit yourself to several bullets
  • Don’t read aloud what’s written: get a picture and talk from that
  • Visuals are great, great, great: use photos, not clipart
  • Except for the title page, lose the logos and backgrounds

7. Handling Qualifications

Most big sales these days follow a two-step process: screening and selection. Most screening is done on credentials. That means if you’re in the pitch, your credentials got you there. The pitch is the sale you already got; stop selling it.

If the client specifically requested a section on credentials, don’t embarrass them by fighting it. But you can touch briefly on credentials, with a large leave-behind set of documents. Go through them only if the client insists.

8. Dissing the Competition

This is an easy one. Don’t. Don’t do it, don’t go there, don’t even think about it. If asked, demur, with, “We respect our competitors. You should talk with them. But they can speak well enough for themselves without our help.” Taking the high road never hurts, and it usually helps.

9. When to Ditch the Pitch

Imagine a pitch where an obstreperous client takes you off script away from the PowerPoint or raises a point well in advance of when you had intended to address it.

Disaster? Not at all. In fact, it’s quite the opposite. This is client engagement – exactly what you want – cleverly disguised as an objection. Greet it with open arms. Ask the client for permission to go off script and deal directly with the issue raised for as long as the client wants.

Remember: despite what the client said, it’s not your PowerPoint they want to see – they want to feel how it will be for you to interact with them. If you respect their wishes, move your agenda to fit theirs, and respond directly with relevant content, you will address precisely that desire. And you will more likely win the pitch than someone who stayed on (Power)Point.

Sales Strategy: Never Let Them See You Sweat?

What’s your favorite sales movie? Glengarry Glen Ross? Wall Street? Jerry Maguire?

Here’s one that might not have made your top ten list for sales, but that may help you take a fresh look nonetheless.

September 1961 saw the release of the classic The Hustler. Starring Paul Newman as “Fast Eddie” Felson and Jackie Gleason as Minnesota Fats (with great performances by Piper Laurie and George C. Scott), it portrays what happens when great talent meets self-destructive impulsivity.

Small-time pool hustler Felson takes on the legendary pool shark Minnesota Fats in an epic all-night duel of young talent vs. old savvy. As the game continues into the early daylight hours, they take a break. Felson, nearly exhausted, collapses sweaty and drained into a chair with yet another pack of cigarettes.

Fats, meanwhile, goes into the men’s room and emerges minutes later freshly shaved, wearing a newly laundered tux. Felson’s confidence is shattered by this show of confidence, and he goes on to lose disastrously.

Never let them see you sweat. That’s the wisdom Minnesota Fats employed, and in a game that’s intensely mental (what games aren’t?), it gave him a decisive edge. A great pool strategy, to be sure.

And a terrible sales strategy.

Unless you’re selling widgets B2C at $19.99, there are three principles that we don’t talk enough about in sales: your objective, your character, and your relationship to the customer. Never letting them see you sweat violates all three. Here’s how.

  1. Your Objective

A game of pool is a zero-sum game, pure and simple. There is a winner, and there is a loser. There is no win-win, and there is no synergy outside the game itself. Within the boundaries of the rules, psych-out strategies to beat the opposing player are fair game. And if that’s how you view sales, you’ll be seduced by Minnesota Fats’ clever stratagem.

But that also means you think of your customer as the enemy. You think your entire customer relationship is a series of one-off unrelated transactions, all win-lose, so there can be no accrued trust or synergy. You will also, quite naturally, seek out more ways to put one past your customer.

What’s the alternative? Think of your customer as your partner. Think every transaction is connected to every other transaction, past and future, in an ongoing narrative of relationship. There are economies of scale and levels of relationship, each adding more and more financial and psychic value at every step.

In this view, your objective is to help your customer, long-term. Period. All else follows.

  1. Your Character

If you believe “never let them see you sweat” is a great strategy, then you have adopted duplicity as a core value. That can be a treacherous decision.

It means you can’t be authentic. It means you can’t relax and let down your guard, lest the customer see your true motives or objectives. It means there is a limit to how much trust, information sharing and collaboration can go on between you and your customer.

Our beliefs drive our actions, and our character drives our beliefs. If you continue to hold a duplicitous perspective in all your customer relationships, you will behave duplicitously and be seen as a duplicitous person. And in a world that is increasingly online, transparent, and available to all, it’s more and more likely that duplicitous behavior will be exposed.

  1. Your Relationship

If you believe “never let them see you sweat,” then you’ll never have a rich relationship with “them” no matter who “they” might be. All human relationships are characterized by a degree of shared risk and vulnerability. There is a reason why in all cultures there is a set of rituals we go through in business before “getting down to business.” They may be as short and simple as, “How ’bout them Bulls,” and “I see you went to State also,” or they may be as complex as late night drinking bouts on successive visits, but they are there for a reason.

The reason: we do not trust people who never let us see them sweat. We interpret their guardedness as secretive, threatening, fearful, and unfriendly, masking motives about which we know nothing but which are suspect. If you don’t let me see you sweat, I conclude you’re probably hiding something, and you’re not the type I can trust. That’s no way to win a sale.

Never let them see you sweat? Au contraire. In Finland, they literally invite customers into the sauna to sweat together! Other cultures have their own approaches, but the aim is the same. Good selling means customer-focused objectives, a habit of transparency, and a commitment to relationship.

If you get those right, you won’t have to sweat in the first place.

 

 

 

 

 

 

Why Listening to Sales Experts May Be Hazardous to Your Sales

A sales expert, I’m not. A trust expert, I think I’ve become. And it turns out, there’s a big overlap.

One of the interesting points in Neil Rackham’s classic SPIN Selling is that certain techniques developed for small-item selling – notably closing – actually backfire when applied to larger, more complex sales. In other words, “sales expertise” of a certain kind may actually be hazardous to your sales health.

That may not seem like much of an insight more than 25 years after the book’s publication. Since then, we have seen major growth in thinking about B2B sales, as well as the transformative impact of the internet on the sales function. Nowadays no one would be caught dead trying an “assumptive close” in a modern B2B sales interaction.

But does that mean all sales expertise these days works more or less? I don’t think so. In fact, there’s a glaring assumption at the heart of almost all sales systems, which, if not properly understood, will actually decrease your sales effectiveness just as much as improper closing techniques.

It is the assumption that the point of selling is to get the sale.

What Is the Point of Selling?

That may seem like a stupid question, with an obvious answer. What else could the point of selling be except to get the sale? And I’m not talking about the difference between single transactions and repeat business either. I’m talking about the very purpose, the underlying goal, aim, and objective of the salesperson, sales process, and sales function. What else could the purpose be except to get the sale?

The alternative purpose, may I suggest, is to help the customer. That is not a trivial distinction; it’s a meaningful one. It’s also a powerful distinction, and it’s one easy to achieve. But if you do achieve it, you’ll do better on many dimensions – including sales.

To see why, let’s first explore what it would mean to have a different purpose for sales – a purpose other than to get the sale.

Design Implications of Helping the Customer as a Goal

Suppose your primary purpose was to help a customer.  Just suppose, just for a minute. What exactly would you do differently?

You’d be less concerned about whether you won or lost the sale. You’d spend a little more time on situations where you thought you could help – and a little less time where you thought you couldn’t. You’d take more time with leads to help them determine the best way for them to get help. You would often end up referring them out to other related-service providers where you thought they might get better help.

You’d seek out slightly different leads and targets than if you focused solely on where you thought you could sell. You’d view your competitors differently – as alternative offerings to help your customers get what they need. You’d give up your time and expertise on occasion if you felt it would help your customers advance a key cause. Conversely, you might be quicker to embrace value-billing in cases where you clearly bring value to the table.

You’d talk less about your own capabilities, and more about what would be good for your customer. You’d be naturally curious about what your customer needed and what would make their business better. Your curiosity would extend outside and beyond your company’s service offering to include those of other firms.

If your organization similarly supported a goal of helping the customer, then the metrics you operate under would be changed as well. Instead of an emphasis on quarterly sales results, progress against closing, and forecasted probabilized backlog rates, you’d see consumer-focused metrics that speak to customer performance and result of that performance. Noticeably absent would be much of the fine-toothed combing by lawyers enumerating the thou-shalt-nots of the relationship.

Operationalizing a Customer-Helping Goal

Looking at the above statements, you’re probably having one of three thoughts:

  • “Those aren’t that bad, actually. We could do with a bit more focus like that.”
  • “Yes, but you have to make money.”
  • “Yes, but you can’t let customers just take advantage of you.”

Note that thoughts two and three have an implicit assumption: that if you don’t focus on getting the sale, you probably won’t get the sale. And that’s where the miracle happens.  Because precisely the opposite is true.

People don’t like to be told what to do. People don’t like to feel controlled. People respond positively to a sense that they are being listened to, and to people whom they feel have their best interests at heart. We respond positively to generosity, and we respond negatively to greed. We tend to return favors and avoid those who have burned us.

In short, we reciprocate. The lessons of game theory, marriage therapy, and political organization all point in one direction: favors done, attention paid, and interest shown all beget the same in return. This simple truth is deeply embedded in our simplest human interactions (think handshakes and smiles) and our most complex ones as well (cultural affinities and political alliances).

The main result of reciprocation is – more reciprocation. If you listen to me, I will listen to you. If you treat me well, I will keep coming back. If I buy from you and you respond well, I’m likely to keep buying from you.

Unless, that is, the seller gets selfish. All bets are off to the extent that we perceive the seller as self-oriented, selfish, manipulative, and driven only by his own needs. If we as buyers feel objectified, treated solely as walking wallets by the seller, then we reciprocate. We coldly calculate the value of the seller to us and become willing to walk partly because we also feel insulted by such behavior.

The Paradox at the Heart of Great Selling

The best sales come from interactions where the sale is not the goal, but a byproduct – where the sale is a natural outcome of an attitude of other-focus, genuine concern, and focus on the other. Where the attitude is long-term, not transactional, and built on an assumption of win-win rather than of scarcity.

There’s a paradox here. You do your best selling when you stop trying to sell, when you simply focus on doing right by the customer. That doesn’t mean you turn into a non-profit charity. There is still a role for profitability metrics, CRM systems, and funnel statistics. But they must become subordinate to the broader goal: helping your customer. Dial them back 90%, lengthen their timeframe, and don’t think of them while interacting with customers.

Are there customers who’ll take advantage of you? Sure, though not nearly as many as you think. And those who act that way are the ones you gift to your competitors.

If you help your customers, they’ll help you. That’s a rule that doesn’t need your thumb on the scale to work. Don’t force it. Make customer help your goal.