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How Sales Contests Kill Sales

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Salespeople are motivated by money and competition.  If you want them to sell more, offer more money, and have them compete for rewards.  The sales contest is the perfect motivational combination.

Or so goes the conventional wisdom.  But it’s wrong—and many of the best salespeople will tell you so.  Here’s why.

Money and competition are about getting more money from your customers than other salespeople can get from theirs. And contests are typically short-term affairs—usually a matter of months, a year at most.

Salespeople in a contest are therefore in a rush to see who can extract the most cash out of his customers the fastest.  As one of the hoary old “jokes” about sales goes, “selling is the fine art of separating the customer from his wallet.”

I don’t happen to think that joke’s funny, and I doubt too many customers do either.  But that’s the mentality fostered by a race to extract maximum money per short term time period.

It turns customers into objects.  It telescopes time into the (very) near future.  And so it flies in the face of developing relationships based on helping the customer, and based on a longer time-frame that allows the evolution of strategies beneficial to both seller and buyer.

Here’s the paradox (there always is a paradox when it comes to trust).  Sales contests are usually held to juice up short-term results.  But the best short term results actually come from the ongoing execution of long-term strategies.  Sales contests actually hurt long-term performance.

The mania for measuring short-term has led many companies to execute a massive faux pas—managing for the short-term.   You know the saying: “you can’t manage it if you can’t measure it.”  The unspoken corollaries are, “more measurement is better,” and “if we can measure it short term then we’d better manage it short-term.”

None of it is true.  If you were to manage all the other relationships in your life this way—maximizing the short-term monetary benefit you can extract from your spouse, your friends, your children—then you would live a shallow life that will come to bite you.  It is no different in business.

Do you grant your loyalty and future business to someone who views you as primarily a source of their own short-term financial gratification?  If not, why should you expect anyone else to?

Sales contests are just one of the more obvious manifestations of this mania for short-term, treat-‘em-as-wallets, manage-like-you-measure mentality. It infects comp systems and sales process designs as well.

If you’re a sales manager, measure short-term results—but teach everyone that the best way to get them is to manage long-term.

If you’re a salesperson, then—unless you’re a year away from retirement and don’t give a damn about your reputation—act as if you plan to be in service to your customers for a long, long time.

That’s how they return the favor.

And there’s that paradox again.  The best way to make money is to stop selfishly looking to make money.  Instead, be trusted—by being trustworthy.

When On-message Marketing Makes for Off-trust Sales

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Being “on-message” is a sort of  First Principle for marketers.  (You may be more aware of the term through politicians, who in recent years have become astute consumers of marketing technologies).

The “on-message” concept is closely allied to the broader strategic term “alignment.” The core idea is—if you get all the parts humming in sync, you will certainly avoid contradictions, and probably create synergies.

Who could argue with that?

Well, like any good concept taken to excess, it can turn nasty.  That’s what happens when marketing pushes the “on message” concept too hard onto sales.

What caught my eye was the cover story of the September 2007 issue of PharmaVoice (though it’s not an issue unique to Pharma—it can be found in professional services or technology as well):

The pharmaceutical industry can no longer afford to be off-message—not even once—in this exceedingly competitive marketplace…
Innovative pharmaceutical companies are redefining the communications process by tearing down the walls between the different factions: agencies, sales, marketing, and public relations.

By including “sales” with agencies, PR and marketing in a broader process called “communication,” sales is potentially being set up for lowered trust.

Sales should be about dialogue between seller and customer. That means two-way conversation—synchronous—at the individual level. PR and marketing by contrast are largely one-way—asynchronous—a monologue, and almost always one-to-many, rather than individual (one-to-one marketing is largely aspirational).

Customers have no problem with marketing, as long as it doesn’t claim to be personal and synchronous. Customers have no problem with sales, as long as it is a true personal dialogue.

Trouble happens when one mode pretends to be the other. And that is what happens when sales is forced to operate mainly in the “on-message” mode. For a salesperson to be “on-message” means they are “off-dialogue” and asynchronous—while still pretending not to be. Result: customer disconnect.

Basically, we don’t trust people who insist on mouthing ad slogans at us.

That doesn’t mean salespeople should be random content-generators, or that they should shy away from marketing dialogues. It simply means that, past some point, treating sales as an extension of marketing will erode sales effectiveness.

What that point is, is hard to define. Just where do the plains end, and the mountains begin? The fact that the transition point may be hard to define doesn’t mean mountains don’t exist.

Think of it this way. If marketing is in charge of all your sales collateral materials—you may be an “on-message” abuser. If marketing is scripting selected sentences at the individual word level—you may be an “on-message” abuser. If marketing gives sales a list of “don’t-talk-about” topics—you may be an “on-message” abuser.

If you believe sales could and should be replaced by significant improvements in targeting and delivery via alternate media—then you probably are an on-message abuser, because you don’t believe in the unique value of human one-to-one contact.

Humans have their own message wave-length. And if you want your message to be heard, you’d better start with hearing theirs.  Being on message isn’t much good if it means no one’s listening.
 

I Can’t Make You Love Me–If You Don’t

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That’s the title of one of my favorite songs; a soulfully beautiful breakup song by Bonnie Raitt.

I’m not alone; one commenter on the song says, “I personally consider this the best song of the 90s.”

My favorite detail: the very first notes on the track are a brushstroke and two taps on the snare drum, followed by a big, mellow electronic piano-cum-bass drum chord. The mics on the drums reveal a warm small-room echo—this is live, real, unprocessed music by a pro—singing about reality. Like the song.

Songfacts says the song

…was written by the songwriting team of Mike Reid and Allen Shamblin. Reid got the idea from a newspaper article about a guy who got drunk and shot up his girlfriend’s car. When the judge sentenced him and asked him what he had learned, he said, "You can’t make a woman love you if she don’t."

Never mind my taste in music. Red and Shamblin had an ear for one of those micro-moments that serve as metaphor for larger truths. You can’t make a woman love you if she don’t.

Ain’t it the truth.

And ain’t it a metaphor. You can’t make a man love you if he don’t, either. You can’t make your child do what you want, if they won’t. You can’t make your ex- do what you’d like, if they won’t. You can’t make an alcoholic stop drinking, if he won’t.

You can’t make someone trust you, if they don’t. You can’t make a person change, if they won’t. You can’t make an organization change, if it won’t. You can’t make someone buy from you, if they won’t.

You can’t make someone like you, if they don’t. You can’t make someone want what you want, if they don’t (even a great song). You can’t make someone believe what you believe, if they don’t.

There are pretty much only two things you can do. One is to give up the attachment to those outcomes. The other is to change yourself.

Because you can do all those things—to yourself.

You can make yourself love someone; as Steven Covey reminded us in Seven Habits, love is a verb, not a passive state of consciousness.

You can make yourself happy—or not. You can make yourself trust someone—or not. You can live in the moment—or not. You can stop drinking, or eating, or smoking—or not.

Like the man in court found out, trying to make other people do things they won’t is like taking poison and waiting for the other person to die.

Pain is inevitable—but suffering is optional. You don’t have to take the poison. There are other girls, other guys, other days, other organizations.

Detach from the outcome.

Then go create yourself a new one.

Blogging vs. Podcasting

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Some time ago, Suzanne Lowe published a posting called The Myth of Intellectual Capital.  In it, she commented on a talk by Paul Dunay  , Bearingpoint’s Director of Global Field Marketing.

According to Lowe, Dunay sang the praises of podcasting over blogging, on the grounds that it required less time.

According to Dunay, who then commented, he was merely pointing out the higher return on investment of publicizing content.

Alan Weiss also chimed in, saying “First, it’s blogging, then podcasting, then video, then something else, with each one expected to take over the world.”

But it’s not a he-said she-said thing.  And contrary to Weiss, much more is at stake here than the latest fad and flavor of the day.

There are distinct parts of the human decision making process; and different media drop into different slots in that process. That’s true for old media, and for new as well.

Podcasts are aptly named. Like their cousins “broad-“ and “narrow-“, they are one-to-many media—non-interactive even in audiences of one.
Podcasts are also consumed in very constrained time limits—a 120-second podcast is going to take—approximately—120-seconds for someone to listen to.

Blogs are more interactive—you can hit “comment” right now in response to this blog, and get the instant gratification associated with seeing “you moron Charlie!” pop up and knowing it can be read in Thailand—right now!

We can also read at varying speeds, including—frequently—a whole lot faster than listening.  And the reader controls the speed.

Over to buyers.  Buyers want many many things, and at different times in their decision-making process. Sometimes they want to interact; sometimes they don’t. Sometimes they want information; sometimes they want visual and aural assurance.

If you’re selling to someone with a buying process more complex than getting a #4 at Burger King, you’ll want to match distinct parts of the buyer’s decision-making process with access to distinct media that help the buyer decide.

It’s not a trivial exercise, anymore than is a decision to buy billboards or broadcast TV or newspaper is for an ad agency serving any client.

Politicians are still sorting this out too. Watching on television as sound-bite based politicians “respond” to blown-up computer screens showing YouTube clips is a crazy mash-up.  Enough to make you agree with Alan Weiss that it’s all a popularity contest.

Except it’s not.  Smart politicians—and other sellers—will integrate media, using each for what it’s best at.

Kennedy didn’t beat Nixon just because Nixon looked bad on TV; TV was part of the package.  And people distrust the absence of a coherent package more than any particular package per se.  

The Dark Side of Trust? Not!

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This blog regularly sings the praises of trust. It greases the wheels of commerce, ennobles human interactions, and generally makes the world go round.

Could it possibly be that trust has a downside? Omigosh.

From the always-provocative Harvard Business School Working Knowledge series  comes another  case of good data, flawed interpretation. This time it’s about plumbers in Philadelphia.

The Dark Side of Trust  summarizes research by Harvard Business School professor Felix Oberholzer-Gee and Victor Calanog, a doctoral student at the Wharton School at the University of Pennsylvania, in "The Speed of New Ideas: Trust, Institutions and the Diffusion of New Products."

They researched the introduction of an innovative new product (a plumber’s product called TrapGuard) to 596 plumbers and plumbing firms in Philly.

Now, some of those plumbers had strong relationships of trust with their suppliers—who presumably hadn’t told their customers about TrapGuard.  As HBSWK puts it:

The basic question at hand: Would TrapGuard encounter significant barriers to entry from plumbers who enjoyed trusting relationships with their suppliers? In other words, would plumbers be less likely to consider new products, even though innovative, because they were content with their current suppliers?

It should surprise no one that, indeed, plumbers who strongly trusted their suppliers were less inclined to pursue a promotional brochure for TrapGuard when sent one in the mail.

Here’s Oberholzer-Gee:

I wanted to see whether there was a downside to building trusting relationships between buyers and suppliers. In some sense, the study reveals a dark side of trust.

Trust is a double-edged sword. In the short run, working with trusted suppliers reduces transaction costs and furthers the buyer’s competitive standing.

But trust can also make you blind because it can make it harder to see opportunities that arise outside established relationships. The managerial challenge is to build trusting relationships without losing sight of outside opportunities.

Oberholzer-Gee clearly sees the double-edged sword nature of trust.

But presenting this as some kind of  “fair and balanced” offset to the positives of trust is at least a blinding flash of the obvious, and more likely disingenuous.

For example:

• The dark side of trusting your spouse to be faithful is you might not notice him consorting with that hottie;

• The dark side of a child trusting his parents is they might be homicidal maniacs;

• The dark side of loving (as any oldies station will tell you) is a broken heart.

Trust without risk is not trust at all. But of course. Trust is human risk management, a response to uncertainty—but one wholly unlike the rational, risk-parsing quantitative techniques typically taught and used in academia.

And here’s where it gets insidious.  HBSWK summarizes:

trusting relationships can also have a negative side that managers must take into account

HBSWK, and HBS, and Every Business School preach the Gospel According to Analytics. According to this gospel, managers “must take into account” some analytic cognitive insight at pretty much every turn, every transaction.

Never mind that “must” reeks of arrogance.  Note simply that if you subject every micro instance of trust to a micro-consideration of its worth, you destroy trust at the macro level.

Want a philandering spouse? Let her know every day how much you fear her infidelity. Want a suspicious, self-serving supplier? Constantly check them for suspicious, self-serving behavior.  Want thieving employees?   Give them all monthly lie detector tests. 

You empower what you fear.

Trust is a macro-response to life’s micro-issues.  You’d better evaluate it from time to time, like you would a marriage.  But if you constantly subject trust to the cognitive microscope, you destroy its essence.

“Must” you see the dark side of trust?  Don’t look too hard, you’ll miss all the glory, and ruin it in the looking.

Does Your Customer Trust You? The Acid Test

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Most salespeople will agree—there is no stronger sales driver than a customer’s trust in the salesperson. And, I suggest, the best way to be trusted is to be trustworthy—worthy of trust. You can’t fake it.

Is it possible to know if your customer trusts you? Is there one predictor of customer trust? Is there a single factor that amounts to an acid test of trust in selling?

I think there is. It’s contained in one single question. A “yes” answer will strongly suggest your customers trust you. A “no” answer will virtually guarantee they don’t.

The question is this:

Have you ever recommended a competitor to one of your better customers?

If the answer is “yes”—subject to the caveats below—then you have demonstrably put your customer’s short-term interests ahead of your own. This indicates low self-orientation and a long-term perspective on your part (I’m assuming sincerity), and is a good indicator of trustworthiness.

If you have never, ever, recommended a competitor to a good customer, then either your product is always better than the competition for every customer in every situation (puh-leeze), or—far more likely—you always shade your answers to suit your own advantage. Which says you always put your interests ahead of your customers’. Which says, frankly, you can’t be trusted.

Here are the caveats: don’t count “yes” answers if:

a. The customer was trivially important to you
b. You were going to lose the customer anyway
c. You didn’t even offer a product in the category
d. You figured the competitive product was terrible and you’d deep-six them by recommending them.

The only fair “yes” answer is one in which you honestly felt that an important customer would be better served in an important case by going with a competitor’s offering.

If that describes what you did, and it is a fair reflection of how you think about customer relationships in general, then I suspect your customers trust you.

If not—well, then why should they? Would you?

Don’t Believe What They Say About Listening and Sales

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Try Googling “sales” and “listen.” Here’s a sampling—look for the common theme:

Rhonda Abrams, from Gannett News Service, says:

When calling on a customer, it’s tempting to want to immediately launch into a sales pitch, especially if you’re nervous. But by listening, you can better understand how your product or service meets the customer’s needs and desires.

In Business Week’s Savvy Selling section, Michelle Nichols says:

Although speaking clearly, succinctly, and persuasively are crucial selling skills, sharp listening skills are equally important today. In fact, it’s the professionals who ask good questions and then listen hard for the answers who are closing more sales than peers who are stuck in the "smooth talker" era.

At SalesPractice.com, we get:

We have two ears and one mouth for a reason – we’re meant to listen twice as much as we talk. This maxim is never truer than it is in negotiation. It’s amazing what you will learn about the "true" negotiation position, just by listening better. Don’t do all the talking – keep asking questions and listen to the answers.

The admonition to listen is usually justified—as in these three cases—on the basis of the answers’ content. If you listen more—particularly in response to good questions—then you will hear answers that help you sell. That’s the received wisdom.

If that sounds self-evident, think of what is not being said:

that the larger value of listening lies not in the content of the response, but in the act of listening itself.

Q&A listening for content is the hallmark of consultative selling and needs-based selling. You got a need? I probe and find out the specs of that need; I tune my offering to meet it. And so forth.

Nothing wrong with that; but it doesn’t begin to scratch the surface of the power of a different kind of listening.

Needs are just mechanical specifications for stuff we gotta have anyway—toothpaste, audits, bicycles.

Wants, by contrast, are where the action is—wants are hopes, fears, ambitions, wishes, desires.

>Listening for answers identifies needs; but listening for listening’s sake gets to wants;

>Listening for answers generates a list of specs; listening for listening’s sake generates a connection;

>Listening for answers generates transactions; listening for listening’s sake builds relationships.

If your listening always has an agenda—to sell—then you’re not doing much to build trust. If your listening has no agenda beyond being in service to that customer in that moment, then you are potentially creating a trust bond with that customer.

We often hear that listening is a skill that we should practice. But that’s Q&A listening they’re talking about, listening with an agenda—your agenda. And it’s got limited benefits.

By contrast, listening for listening’s sake is not a skill; it’s a gift—the rare gift of your fine attention. It’s also one of those gifts that gives back.

And—the icing on the cake—listening for listening’s sake ends up more powerfully driving sales than does listening to execute the sale.

It’s a trust thing.
 

Negotiation and the Short Term Performance Trap

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Economists and psychologists love intellectual puzzles like The Prisoner’s Dilemma, a game that posits a 2-person bargaining or competition situation.

In The Prisoner’s Dilemma, one person goes free if he “rats out” the other prisoner and the other prisoner stays mum. Unfortunately, if both rat out each other, they each get life in prison.  If both stay mum, they each get off with just a year.

When the game is played with strangers—one time only—the most common result is the double-rat-out.  Oops.

The challenge to economists is to explain why people so frequently do not act “rationally.”

The answer shows up when you play it ten times in a row. With a friend. With eye contact.

But—especially—from playing it ten times in a row.

Then the players quickly learn to cooperate.  (Though sometimes they’ll turn vicious again the last round.  Or maybe not. Think reality TV shows.)

The point is: it’s smart to think collaboration, cooperation, medium to long term focus.  Not a one-time, zero-sum, confrontational me-vs.-you outcome.

The learning for managers, sales managers, brokers, etc. is clear: if you think you’ll never see this customer again, nor have to deal with this customer’s spouse, friend, or cousin, and you think no one will ever hear what you’re about to do, and you’ll gladly trade a good reputation for money—then go ahead, squeeze the customer, try to win the negotiation—treat it like a transaction.

All others: operate on the assumption of multiple transactions—which, for lack of a better term, let’s call relationships.

Assume you will have repeat customers; that your reputation matters, even in terms of simple self-interest; that what goes around comes around; that six degrees of separation in today’s world is a vast overstatement, and it’ll bite you if you don’t believe it.

It’s a simple enough answer. People in social situations routinely act as if they’re a member of an ongoing social group, even if they’re not. (See for example similar results regarding The Ultimatum Game).

That, however, is in social situations.  At the business level, particularly with customers, another belief system often gets in the way.  I hear it frequently.  It sounds like this:

You don’t understand, Charlie; around here, you get measured on short-term results. So there’s a lot of pressure. You have to be a lot tougher on customers—terms, pricing. Trust is nice and all that; but I’ve got a job and a bonus structure and I’ve got to make a living. Go tell it to my boss.

OK, let’s tell it to”your boss.”

Every time you treat a customer from a transactional point of view, you are hurting your long-term profitability. And the short term has a way of turning long-term very quickly. You run out of new customers to squeeze to get all you can in one deal.  And if you rat-out your customer, and your customer rats you out in return, you just bought yourself long-term low profit prison terms.

Put another way:

The best short-term performance does not come from short-term management—it comes from medium- and long-term management done well.

Management, that is, based on the presumption of a relationship, not a series of oppositional transactions. Management based on principles, not self-interest.  If you want to be in charge of your own long-term career, don’t let “your boss” ruin it with short-term management.  Your customers will remember your behavior, not your boss’s words.

Trust makes money.  Prisoners who rat each other out lose money.

Please tell “your boss.”

Top Ten Things Not to Say in a Sales Call

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Props to Brad Trnavsky, who posts Ten Things a Good Salesperson Should Never Say, and Why.  They are short, sweet, and on the money.  Click through to check it out.

Have you ever found yourself saying, "I was in the neighborhood, thought I’d drop by?"  My chimney sweep company does that.  It’s rarely true, and probably doesn’t fit your business. 

Of course, the grand-daddy of them all—trust me.  I won’t do that rant again just now—Trust Matters readers know that one.

The one that caught my eye and prompted this quickie blog, however, made me wince. "What would it take to have you get started today?" 

Ouch.  Only about a year ago, I got a call from a woulda-been perfect client—a business I know well, a speaking engagement right up my alley.  We had a great conversation.  I quoted my full regular rate.  The client said gee, I dunno, limited budget for this event, etc.  And I—with all good intent, really wanting to help him out, and willing in fact to take a hit on this one if I had to, said, "Look, what would it take…"

He, quite rightly, said, "Wait a minute.  Your book talks about the need to maintain transparent and consistent pricing, and never to offer discounts except in clear specific cases.  And here you are discounting.  You have just destroyed my trust in all you’ve said."

Damn.  That’s one between the eyes.  And I had to admit that my good intentions couldn’t save me here, he was exactly right.  I told him so, we parted, never heard from him again.  100% my fault.

That’s my read on one of  Brad’s points anyway. Good comments on his posting too.  Go check them all out, see if any make you wince.

FUD – Why Sell Is Still a Four Letter Word

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Greg Milliken tells us about the origin of FUD—Fear, Uncertainty, and Doubt.  Think “Nobody ever got fired for hiring IBM.”

In other words, it’s selling by spreading FUD  about your competitor, rather than by focusing on helping the customer.

FUD-based selling, as Milliken eloquently points out, rots the soul.  And while I ultimately think that trust-based selling is more powerful, let’s give the devil his due—appealing to fear is a pretty powerful drug.

FUD is one manifestation of why “sell” is still considered a four-letter word in many parts.  Why don’t people trust a whole lot of salesmen?  Because a whole lot of salesmen aren’t trustworthy!  And many of them use FUD.  But FUD is just a subset of a larger category.

The biggest reason for not trusting a salesperson boils down to this: if they’re in it for themselves, they are not in it for you. And if they’re not in it for you, then you are perfectly right not to trust them.

Great salespeople live with a great paradox:  IF you are able to focus on other people and get them what they want, then—paradoxically—you get what you wanted all along too.  But—here’s the key part—as a side effect, not as a goal.

The modern corporate ethos is almost diabolically designed to thwart this kind of good sales thinking.  It tells us, over and over, in a million ways, to figure out what we want, then figure out how to get it.  Break it down.  Design a process.  Do a needs analysis.  Do competency modeling.  Define metrics.  Measure.  Reward.  Tweak, fine-tune, and repeat. 

Problem is, this way of thinking destroys other-focus from the outset. You will never be hugely successful at selling if you believe the modern corporate litany, because it can only, and always, be about you and your objectives.  That logic leaves no room for the paradox of caring about others.

FUD, of course, fits very well with a goal-oriented, self-aggrandizing methodology.  If the purpose is to gain sustainable competitive advantage over a competitor, then the customer becomes simply a metric, a vehicle, a means to an end.  FUD is a straight line that bypasses any genuine concern for a customer.

FUD fits the unexamined approach to corporate selling.  Which is why sell is still such a four-letter word.

Except, that is, for the exceptional salespeople, who recognize an eternal verity—the best way to get what you want is to focus first on helping others.