Posts

Riding the Shark: Vanquishing Fear in Selling, part 2 of 4

/5 Comments/in , /by

4 Sharks Of Fear (photo via Iggy.)There are many ways to think about sales and selling. You can focus on value propositions, sales processes, sales management, motivation, techniques, and models. In this blogpost series,  I focus on something else that’s common in sales – fear.

In Part 1 I talked about the importance of dealing with fear in sales. Here I’d like to talk about how to recognize and categorize fear. In Part 3 I’ll talk about solutions, and in Part 4 I’ll talk about Shark-proofing your market – how to replace fear permanently.

The Four Sharks of Fear

There are many ways to categorize fears, just as there are ways to categorize sharks. I like to lump them in progressively more fearful categories, from relatively tame to terrifyingly fearful.

  1. Execution Fear. “I might mess up in doing this sale; I might not do it right.”
  2. Competence Fear. “I might not know how to do this sale right; I may not even know what I don’t know.”
  3. Outcome Fear. “I might not get the deal at all – everything I wanted to happen won’t happen.”
  4. Shame-based Fear. “They’re not going to like me or respect me anymore; and they’re probably right.”

The first thing you’ll notice about that list is that it gets “worse” as you go down the list – it starts off with incomplete education and ends up with self-loathing. All of us find it a lot easier to deal with the former than the latter.

But they all can drive equally negative impact on sales.

How Fear Affects Selling

Whether your fear is tactical, existential, or in between, it will keep you from doing something right.

  1. If you have execution fear, you are likely to not make the call, schedule the appointment, or send the email. You will be physically not present. You will miss opportunities and appear undependable.
  2. If you have competence fear, you are likely to appear ragged, unconfident, changeable and second-guessing.
  3. If you have outcome fear, you are likely to annoy everyone around you, because you try to over-control, micro-manage, obsess, and frequently blame others; you are in a bad mood because the world doesn’t obey your commands.
  4. If you have shame-based fear, you are mentally not present; you are probably chronically sick, or often busy elsewhere; you are probably inconsistent, moody, and often a poor listener. And in sales, the inability to listen is a major handicap.

Have you been mentally jotting notes?  Write them down. Which type of fears do you seem particularly prone to?

Negative Feedback Loops

One of the most pernicious aspects of fear is its self-fulfilling nature. If you don’t make the appointment for fear of making an error, you have made an error. If you’re afraid of appearing competent, almost anyone will perceive that fear and interpret it as – incompetence.

If you’re afraid of a bad outcome, some kind of karmic rule of life intervenes – you nurture what you fear. And if you are ashamed of yourself, nobody will be comfortable  being around you; which of course is more fish-food for the shark of shame.

This feeds-on-itself aspect of fear is powerful – picture a feeding frenzy when sharks congregate around some little piece of distress, compounding the terror.

The Wrong Shark Repellent 

Unfortunately, people are almost hard-wired to respond badly to the Sharks of Sales. In the real world, if we see a shark in the water – we run.  Good call; avoiding the shark is the right thing to do.

But with Sales Sharks, that’s exactly wrong. In almost all cases, fear of doing something wrong drives us to not do something that is right. Think sins of commission and sins of omission.

We are so afraid of saying the wrong thing that we say nothing. We may not lose what we have (dignity), but we create a much bigger failure to get something we wanted (the sale).

Imagine a lifeguard who sees someone drowning. If the guard dives in to save the person, and it turns out the person was just playing, the lifeguard may be slightly embarrassed, and feel put out.

But what if the person really was drowning and the lifeguard thought, “Well, I’d look stupid if I dove in after them and it was a false alarm, let me wait a bit longer and see.” Wrong answer!  Yet that is the mistake that fear drives us to make in sales.

The pattern is clear: fear drives us to avoidance, which ensures failure. You can probably envision some of the solutions to fear in sales, but in any case, that’s the next post. Stay tuned.

Riding the Shark: Vanquishing Fear in Selling. Part 1 of 4

/7 Comments/in /by

photo by: Steve GarnerThis is the first of a four-part blogpost series. In Part 2, we’ll discuss the 4 types of fear. In Part 3, I’ll go over how to fend off the sharks of fear. And in Part 4, you’ll learn how to shark-proof your market and vanquish fear altogether.

There are many ways to think about sales and selling. You can focus on value propositions, sales processes, sales management, motivation, techniques, and models. I’d like to focus on something else that’s common in sales – fear.

Just When You Thought It Was Safe to Go Back in the Market 

Remember the first time you saw the movie Jaws? The tale of a giant shark tapped into a primal human fear. The follow-on, Jaws 2, raised the ante with one of the most famous taglines in movie history – “Just when you thought it was safe to go back in the water.”

Who could look at the beach again without some kind of shiver? Selling has some of that same flavor. We’ve all had some negative experience in selling – and like Jaws, it keeps some sort of control over us ever after. “Just when you thought it was safe to go back in the market…” is all too real.

All kinds of selling involve some fear. Some forms of selling involve more fear than others.  Fear comes in many flavors; the form it takes varies by industry, by products being sold, and of course by the individual salesperson. There are multiple ways to deal with fears. None is always better than the others; and often more than one approach is necessary to overcome fear.

Fear is the Enemy

But with all this diversity around fear, one thing is unambiguously clear: fear is the enemy. Fear destroys sales. It separates you from your customers, makes you behave in narrow ways, lowers the value you can add, and in a thousand ways cuts your sales effectiveness.

Some may disagree.

  • Some say, “Fear helps keep me on edge, sharp, focused.” But if you require fear to keep you sharp and focused, then you lack any positive customer-based motivation. That means you’re sub optimizing – for your customers, and for yourself.
  • Some say, “Fear keeps me on my toes, always looking around for new trends and issues.” But if you seek new trends and issues only to assuage your own fears, then simply feeling comfortable will make you oblivious to trends and issues.
  • Some say, “Fear gives me adrenaline, energy, passion, things that my customers pick up on and love.” Note that drug addicts and alcoholics also believe that they are flat, boring and uninteresting unless hopped up. Are you different?

No. Fear, in all cases, is the enemy. If you’re fearful, you’re not selling as well as you can. And if you’re not selling as well as you can, someone else will. And you should be afraid of that. (And if you are, you increase the odds of precisely the thing you fear, because fear of fear is just as destructive as any other kind).

Unless you can ride the shark – vanquish your fears – you will always be sub-optimal and at risk – always afraid to go back in the water. It’s a lousy way to live.

It also doesn’t have to be that way. That’s what this four-blogpost series is about.

In the second post, The Four Sharks, I’ll tell you where to look for fear in sales. The first rule in shark-fighting (unlike Fight Club) is – we talk about Sharks. I’ll go through the Four Fears – the Big Sharks that account for about 95% of our fears. That should give you an acute sense of pain for just “where it hurts most” in terms of your fears, and help you zero in the issues unique to you, in your business, in your industry.

In the third post, Riding the Shark, I’ll go through solutions.  There are four of them, but they don’t match up one-on-one with the Four Sharks. Instead, they are comprehensive, and offer differing ways to fend off “shark attacks,” making you less vulnerable and more able to sell correctly.

In the last post, Shark-Proofing Your Market, I’ll write about what you need to replace fear – to stop being vulnerable to shark attacks altogether. Because you can’t just fight defensive battles all your career – you need to come from a place of security and confidence.

Stay tuned for the next three parts: and I welcome your comments about the subject in the meantime.

Selling to Mr. Spock

/2 Comments/in , /by

Nowhere am I so desperately needed as among a shipload of illogical humans. –Spock in ‘I, Mudd’

Star Trek’s  iconic Mr. Spock was half-Vulcan, half-human. It’s the former we first notice in Spock – Vulcans are governed entirely by logic and rationality, unencumbered by emotions.

But it’s the latter that takes Spock from caricature to character. Spock mirrors our own schizophrenic, rational / emotional natures. He is the sock puppet for humanity, allowing us to look at ourselves afresh.

Of course, you wouldn’t know that from looking at economists, strategy consultants – and much of the B2B sales literature. They suggest that people, particularly smart business people, are mostly rational decision makers, persuaded by well-established rules of scientific evidence, logic, and the inexorable rules of mathematics.

In other words – they treat buyers like Vulcans.

But as with Spock, the truth for buyers is far more complex.

My Brain’s Bigger than Yours

In recent weeks I’ve spent a lot of time with B2B sales organizations. I’m reminded of how much businesspeople have bought – hook, line and sinker – the idea that customers buy through rational decision-making. The economists’ models are live and well in sales training programs.

Feeding the ratiocinating Vulcan side of buyers is necessary. But it is almost never sufficient. The true role of the intellect in B2B buying is as follows: Buyers scan options rationally, but they make their final selection with their emotions – then rationalize that decision with their brains.

The cognitive role in buying is vastly over-stated. Brains don’t rule. Spock is not 100% Vulcan. Neither is your customer.

Your Customer is Not a Vulcan

Question: What do the following things have in common? Value propositions; challenger selling; strategic fit; problem definition; pricing; negotiation; objection-handling.

Answer: In B2B sales, they usually center around analytical economic value, assuming that the rational resolution of each issue is the key to helping a buyer achieve a decision. Look for these buzz-phrases; clients buy results, you’ve gotta show the bottom line, the key is to demonstrate value, and so forth.

Nothing wrong with that list; but what’s missing are the things that actually trigger a buyer’s decision – not just justify it. Those include, for starters:

  • confidence that the seller can deliver what (s)he promises, and
  • the resulting ability to sleep through the night
  • integrity
  • character
  • commitment to principle
  • a long-term relationship focus
  • a sense that the seller has the buyer’s interest at heart
  • the seller’s ability and willingness to defer gratification
  • vulnerability of the seller
  • a set of values beyond economic value
  • a sense that the seller is a safe haven for conversation.

In short – trust in the seller.

Your customer is not a Vulcan. Your customer is Spock – partly human.

The Cognitive/Emotive Disconnect

I spend my time with smart, complex-business, B2B professionals. Every single one of them will acknowledge the importance of the above list. Yet every one of them lives in an organization where 90% of attention is focused on the buyer’s Vulcan side, doing slide decks, spreadsheets, valuations and scenarios.

In the real B2B world, all those rational items are the (necessary) justifications for customers looking to rationalize their (emotional) decisions. But they aren’t the decision-driver.

Buyers often (rationally) screen sellers. But they quickly form favorites, unconsciously, and usually before the sellers have even had a chance to address the issue. All the Vulcan-targeted approaches are aimed either at forming a buyer’s opinion (too late, already done), or changing a buyer’s preformed opinion (already set in concrete).  It rarely works.

Proof? Ask yourself how many times your customers failed to see the brilliant case you had made, because they were somehow biased against you. You tried to sell to the Vulcan in your Spock-customer; but that human side kept rearing its ugly head.

How Complex B2B Buying Really Works

Very few buyers will tell their boss, “Gee, I guess I bought from those guys because, you know, I really trust them.” That’s career suicide. Buyers need the air-cover (and, to be fair, the reality check) of a rationality-based argument. It’s our job as sellers to deliver that rationale to them, bullet-proof and logic-tight as it can be.

Because in business, we all need to pretend we’re Vulcans.

But deep down, we all know what’s really going on. People buy with the heart, and rationalize with the mind. Brains are a necessary but not a sufficient condition. Being right, by itself, is a vastly over-rated proposition. Being right too soon just pisses people off. All else equal, a trust-based sell will always beat a rationality-based sell.

The truth is, our emotional instincts are extremely powerful (not to mention frequently accurate). We make our decisions first based on those emotions, and then struggle to justify them according to the rules of the game.  Unlike Spock, we lead with the human, and bring in our Vulcan sides as a check.

Many, many of my clients say: “That may be true for lots of people, but not for my [boss] [client] [customer]. They’re completely Vulcan, data-based, just-give-me-the-facts people. You’ve got to treat them like Vulcans, because they demand it.”  But the fact that they demand to be treated like Vulcans is 95% about ego – and that’s their human side.

Ironically, all this is especially true for those who believe the world works on brains. They are prone to buy even more emotionally, because their self-worth is tied up in thinking that emotions don’t matter – which renders them oblivious to their own human decision-making process.

Even if your customer thinks they’re a Vulcan – treat them like Spock. Address the human side – then give them Vulcan-food to justify their feelings.

It is curious how often you humans manage to obtain that which you do not want.  – Mr. Spock in ‘Errand of Mercy’

Trust-based Selling, the Advanced Course

/1 Comment/in , , /by

Hand The Ball Over, See What HappensI had lunch the other day with Jack S., a client from 5 years ago. At the time, Jack managed a sales organization in the reinsurance business. (If you think insurance is complicated, try understanding reinsurance!).

Since then, the industry has consolidated; Jack works for one of the top three reinsurance brokerage firms. His job has evolved into a sort of senior advisor  to the 100 or so consultative salespersons. As we talked, I realized he is operating at the very top of the trusted advisory, trust-based selling world. See what you think.

Charlie: How do you get asked in to see customers?

Jack: Each salesperson has about 5 clients, and typically at least one is having problems. Since I’ve got deep expertise and experience, and the reps trust me, they invite me in to meet the client.

Charlie: So, you get invited in as an expert? What happens then?

Jack: Yes, the rep typically tells the client I’m some super-expert. They introduce me with a big pitch, my resume, all my qualifications and so forth.  Then they hand it over to me, and that’s when I surprise them.

Charlie: Yes?

Jack: I just ask the client to tell me what’s going on. I can always feel the rep beside me screaming inside his head, “What!? That’s all you’ve got? I pitched you as an expert, where’s your demonstration?”  But I’ve found this works much better.

They can tell pretty quickly that I’m totally paying attention, and that I’m nodding in all the right places. Just a short question or comment from time to time is all I really need to show that I know what I’m talking about, and I always make sure we turn the conversation right back to them.

Charlie: What a concept – open by letting the customer talk!  Any other best practices or tips about how to do that?

Jack: Yes. I frequently ask the rep before we go in to resist their temptation to fill empty spaces in the conversation – to just follow my lead. You know, when you’re trying to sell something, a lull of even half a second in a conversation can feel like an eternity, and you’re worried about filling that gap, keeping the momentum going.

But if you let the customer fill the silence, they almost always will. And they seem to interpret it as permission to go a little further, to tell a little more about the situation.  Which happens to be great – they’re sharing much more with us, and I haven’t said a word.  The rep is often amazed when we leave, “I can’t believe he said that, he’s never talked about that before.”

Charlie: Brilliant. Now, what about failures?  Aren’t there some times where you don’t have a major new insight, you can’t solve the problem?

Jack: You know, I’ve learned there really aren’t any “failures.” Maybe a quarter of the time it turns out that the client is already doing everything they can, I can suggest a tweak or two, but basically they have to just bear down and wait out the situation.

If that’s the case, I just say simply you’re doing the right thing, you’re not missing anything, there is no silver bullet you haven’t found, or at least I haven’t found it either.  And that actually makes them feel better. Because they’ve been fearful and guilty, and I’ve given them permission to feel OK. They could already handle waiting for things to clear up, but they really appreciate the relief that comes from knowing they’ve done what they can.

———

I’ve written quite a bit about trust-based selling. Besides the book itself by that title, here’s a good article from a few years ago called Three Strategies for Creating Customer Trust.  As I scanned it after writing Jack’s story, I realized he touches on all three of those strategies.  Jack is really teaching the advanced course.

When Being Trustworthy Isn’t Enough to be Trusted

/4 Comments/in /by

In sales, you sometimes hear, “They were pursuing an aggressive strategy – aggressively waiting for the phone to ring.” In other words, sometimes you’ve got to take action.

Much the same is true of trust. If you want to be trusted, sometimes it’s not enough just to be trustworthy. Sometimes you’ve got to take action. But how?

Most of my work over the past 15 years has been on trustworthiness. In The Trusted Advisor and my other books, I’ve put a lot of emphasis on the Trust Equation – more properly, the “Trustworthiness Equation.” The implied (and often explicit) message is, “To be trusted, be trustworthy.”

But what about when that’s not enough?  How do you take action?

To understand what action to take, I need to differentiate between trust, trusting, and being trusted.

Trust, Trusting, and Being Trusted

In all the writing and research I see done in the field of trust, rarely do I see this critical but simple distinction being made. It seems quite obvious, when you think about it. One party trusts, the other party is trusted, and the result is trust. Simple.

And yet – most trust talk obscures the differences. See if you can guess which one is being talked about in these examples:

  1.      Trust in banking is down
  2.      Banks rank low on the trust scale
  3.      People don’t automatically trust their bank anymore.

I’d suggest that probably they mean the following:

1. “Trust in banking is down” – is about trust (e.g. the level of trust that exists between banks and their clients is less than it used to be)

2. “Banks rank low on the trust scale” – is about being trusted (e.g. banks are viewed as less trustworthy than football clubs or hospitals)

3. “People don’t automatically trust their bank anymore” – is about trusting (e.g. these days people are less inclined to trust everything, including, for example, their bank).

But since they all sound pretty much alike, unless you can read the mind of the writer, you can’t be sure. And here’s why that’s important.

The Reciprocal Relationship between Trusting and Being Trusted

The creation of trust between two parties depends on a reciprocating exchange. It begins when party A takes a small risk to trust party B – A is the trustor, the one doing the trusting. Party B is the trustee, the one who is trusted. And if party B agrees to the new relationship, the result is a higher level of trust.

Take something as simple as a handshake at a networking event. Party A goes over to party B and says, “Hi Mark, I’m Charlie – I think your work on the boson participles was great, and I just wanted to meet you (extends hand).”

If party B reciprocates (e.g. “Hi Charlie, delighted to meet you, I’ve heard about you as well, how are things? (shakes hand),” then the result is trust.

If party B does not reciprocate (e.g. B looks at A’s hand, does not extend his own, gives a tight-lipped smile and turns away), then trust is not created.

The key to trust creation is reciprocity – the trustor takes a risk, and if the trustee reciprocates, trust is created. If not, trust is not created.

Therefore: the absence of trust can be caused by:

a. too little trustworthiness on the part of the trustee, or

b. too much risk aversion on the part of the trustor.

Now here’s the key: if you want to be trusted, you have two strategies you can pursue.

  1. Increase your level of perceived trustworthiness (think trust equation), or
  2. Kick-start the reciprocity relationship by first playing the role of trustor. 

You’ve heard the second strategy before. Henry Stimson often gets credit for first saying, “The best way to make a man trustworthy is to trust him.” The same is true of making yourself more trusted – demonstrate vulnerability by offering to trust first.  The natural human reciprocal response is to return the gesture – tit for tat, good for good, bad for bad.

How often have we heard: You get out what you put in, the love you take is equal to the love you make, one good turn deserves another, whether you expect good or ill, that’s what you’ll get. They’re simple statements, but not simplistic – they’re profound.

In game theory, the simple “tit for tat” strategy is shown to beat all others. (You’ll love the link – Richard Dawkins in video with circa 1990 computers).

Using Reciprocity – Rightly 

Reciprocity is deeply wired into our psyches. You can trust it. You can use it. You can depend on it working – if, that is, you don’t abuse it.

Want your customers to trust you? Find some ways to trust them.

Want your colleagues to trust you? Find some ways to trust them.

Want your direct reports, and your report-to’s to trust you? Find some ways to trust them.

Trusting + Trusted = Trust

Trust it. It’ll work for you too.

What Sales Winners Do Differently: Q&A with Mike Schultz

/6 Comments/in /by

For many years now I have been a contributing editor at RainToday.com, the premier online resource for professional services sales and marketing. Besides a ton of articles, books, special programs, and online learning forums, they occasionally do some seriously good sales research. They have just yesterday come out with their latest, a report called What Sales Winners Do Differently.

What Sellers Winners Do Differently

I sat down with friend Mike Schultz, founder and publisher of the Rain Group, and asked him to headline for Trust Matters readers just what they found out. Have a look, then download the full report, compliments of Rain Group.

——————–

Charlie Green: First, tell us – big picture – what did you research, why, and what did you find?

Mike Schultz: It was pretty quiet in the world of sales approaches for the past 30 years or so. In the last few, however, especially with the popularity of books like The Challenger Sale, there’s been a new vigorous debate about one question:  How should people approach selling these days?

The answers have been all over the place, with wildly divergent ideas and opinions.

To add to the conversation, we asked ourselves, “What are the winners of complex sales doing to win, and what are they doing differently than the sellers that came in second place?”

Charlie: A sensible and forthright question: of whom did you ask it?

Mike: We talked to buyers. We studied more than 700 B-to-B sales (from buyers responsible for $3.1 billion in annual purchases) to find out what the providers they selected did to win their business, and why the providers they didn’t select lost.

What we found is that sellers that win:

  • Connect with buyers as people, and connect the dots between needs and solutions
  • Convince buyers that the ROI is achievable, the risk is worth taking, and that they are the best choice among the available options
  • Collaborate with buyers both in how they behave, and in the sense that they, as sellers, bring ideas and value to the table.

We cover these concepts in depth in the report.

Charlie: OK, let’s unpack this now.  In the report you say, “Winners don’t just sell differently, they sell radically differently, than the sellers who came in second place.” When people make a statement like this, I often find it to be more puff than substance. But when I looked at your data, I thought your statement was quite appropriate.

Rain Survey

Mike: I think you’re referring to this chart. On the left, in dark, are the top 10 factors that most separate the sales winners from second-place finishers. In other words, the buyers reported that these factors represented the greatest gaps between what the winners did versus the second-place finishers.

On the right you see how often the second-place finishers demonstrated the factors on the left in relation to all 42 factors we studied.

Charlie: This chart’s hard to read in the blogpost, but one thing jumps out at you – the top ten reasons the winner won – in dark, on the left-hand chart – ended up really low for those who lost. For example, #2 on the reasons winners won was “collaborated with me.” But the ability to collaborate was way down at #26 for the losers.  And most of the top ten results were more extreme than that!

So, what are some big take-aways?

Mike: Lots, but here are three to start:

First, as you noted, the difference between winners and second-place finishers is stark.

Second, the top two factors demonstrated by the winners are “educated me with new ideas or perspectives” and “collaborated with me.” We looked at 42 factors. Who would have guessed these two would be right at the top? Not us. As you might imagine, we keyed in on them quite a bit to analyze what this told us.

At first blush, they might not seem to go together, actually, but they do. What this tells us is that the seller, themselves, brought value to the table over and above the products and services they had to sell, and over and above the reputation of the company.

Especially in industries where sellers complain about the commoditization of what they sell, the difference between winning and losing lies in large part in how the sellers lead their interactions with buyers.

Third, “understood my needs” and “crafted a compelling solution” appear on this list and also showed up as important factors in a number of other places in the research. As much as some people want to declare solution selling dead, it’s not. Not even close.

Sellers and companies that ignore fundamental solution sales concepts do so at their own peril.

Charlie: Now, I’ve got to ask you; one factor you studied was whether the buyer thought the seller “was trustworthy.” It’s not in this chart. How did the concept of trust show up in the report?

Mike: It’s not in that chart because, for the most part, buyers reported both winners and second-place finishers were trustworthy. It’s not a massive difference between the two groups, but the winner group was, indeed, perceived to be more trustworthy.

Notably, when the second-place finisher wasn’t seen as trustworthy, the buyers reported it as the 8th most important factor for the seller to change in order for the seller to win their business.

We also analyzed the statistical key drivers of buyer satisfaction with the buying process, buyer loyalty, and buyer willingness to refer.

“Was trustworthy” was a key driver of buyer loyalty, and was the #1 key driver of willingness to refer new business to the seller.

Last point, we found that buyers were very tuned in to the concept of minimizing risk. Other factors we studied, aside from the trustworthiness of the seller, related to experience in their industry, experience in the area they had need, whether the seller inspired confidence in the company, how respected the provider was at their organization, and so on.

The factor “was trustworthy” was important on its own, but themes of trust also showed up as important throughout.

Charlie: Can you share with us what some people might believe is important for sales success, but that you found wasn’t as important as the other factors?

Mike: Yes; here are three:

  • People often say to sellers, “Don’t talk too much.” But buyers didn’t really care about this. As long as the seller felt listened to, the airtime taken by the seller was immaterial. How much the seller advocates (talks/educates) and how much they inquire (ask questions) are wholly situational.
  • We tested the importance for the seller of introducing “valuable” ideas versus “new” ideas. You might wonder “splitting hairs?” It’s not; the distinction is amazingly important. If the buyer perceived an idea to be valuable but not new, it wasn’t important for sales success. Buyers don’t need to be validated about something they already knew was a good idea. It’s the newness of the idea or perspective they found important.
  • “Deepened my understanding of my needs” was not typically important. Thus, the ubiquitous advice to diagnose needs shouldn’t be applied everywhere. Situationally it may be warranted, but sellers shouldn’t diagnose as a rule. However, sellers shouldn’t throw out the “needs understanding” baby with the “diagnosis” bathwater. It’s important for sellers to demonstrate they understand the needs, but sellers don’t always need to dig, dig, dig to produce some kind of “ah hah” moment in the needs discovery process.

Charlie: You mentioned the plan is to turn this research into a book. Is there something you can share with us from the research that’s not in the report, but that we might see in the book itself?

Mike: We looked at how opportunities originally arrived on buyers’ radar screens. When the buyer reported they were likely to be loyal to the provider, 22.9% of the time, “a seller brought this opportunity to my attention.”

When the buyer was likely to be a switcher (not loyal), they found out about the opportunity from the seller only 7.8% of the time.

In other words, loyal buyers were about three times more likely to start a buying process because the seller brought something to their attention.

And you’ll like this; the key drivers of buyer likelihood to buy again were all factors related to trust, including confidence in the company, seller professionalism, experience, and, of course, the trustworthiness of the seller as a person.

Charlie: Tell me if I’m hearing this right: greater trust leads to greater openness and receptivity to new ideas; is that what you’re hearing? It surely makes sense from a trust perspective. And it means brilliant ideas alone don’t carry the day – first you’ve got to be listened to.

Mike: That’s right. The data say that the more the buyer trusts, the more likely they’ll be open to a seller’s ideas – both accepting meetings with you to discuss new ideas and opportunities, and eventually moving forward with them. Trust is a huge factor in what is perhaps the greatest opportunity to increase revenue at most companies: the ability of the seller to create their own opportunities and drive their own demand.

That’s pretty powerful.

Charlie: Mike, this is great stuff.  You’ve done a real service here; I can’t wait to dig into the survey itself.

Again, people can get their complimentary download of What Sales Winners Do Differently. Mike, I hope you get a boatload of people reading it.

Mike: Thanks Charlie, I appreciate the opportunity to share it with the Trust Matters readership.

 

Half of What You’ve Learned About Sales is Wrong

/4 Comments/in , /by

Maybe you’ve heard the old line, “Half of advertising dollars are wasted – you just don’t know which half.” Something like that is true in sales – except that you’ve got a much better chance of telling which part to keep.

(Many thanks to Chris Downing and Anthony Iannarino for helping develop this thought).

The Challenge

Take this quiz, based on your own business:

1. I think closing is:

  1. obviously critical to selling
  2. one of the more harmful concepts in sales

2. I think cold-calling is:

  1. a tough, but necessary, and improvable process
  2. to be avoided like the plague

3. I think the customer wants:

  1. a clear value proposition
  2. a relationship
  3. a fast, cheap transaction

4. The critical job of sales management is:

  1. motivation
  2. training
  3. supervision

5. Price should be:

  1. mentioned up front
  2. not mentioned until value is established
  3. not talked about between sophisticated people

Now total your scores: Give 1 point for each a), 2 points for b) and 3 points for c). Now add them up. What does it all mean?

Pretty much nothing, I’m afraid.

It. Simply. Depends.

One Size Doesn’t Fit All

We all know this, of course.  B2B is not like B2C. Internal customers are not like external customers. Inside sales is not like external sales. High-ticket items are sold differently than low-price point items. Intangible services are not the same as tangible goods.

We know that.  And yet – an enormous amount of sales advice out there doesn’t make the distinctions.  Here are some examples from page 1 results of Google searches on some terms:

15 Ways to Improve your Closing Ratios.  Probably great advice. For someone. Is it great advice for you? Darned if you can tell by reading the article, because it’s addressed universally.

How to Write a Value Proposition. An excellent article, by an excellent organization. But where does it rank in the scale of importance to your business?

When to Quote Price: Useful information in dealing with “be-backs” (i.e. “We’re just not sure, we’ll be back”). But how important are be-backs if you’re selling systems integration projects?

How to Turn a Relationship Into a Sale. Great advice for an industrial paper business; but do I want the counter guy at Dunkin’ Donuts establishing a relationship with me?

And I could go on; and so could you. I didn’t pick bad articles – those are pretty good ones, some of them excellent. But – they don’t explicitly deal with the relevance of the advice to you.

Fitting Your Size

How, then, to figure out what advice to take?  You might start by characterizing your business across several continuums (continua, if you prefer):

For example, draw five lines (one for each characteristic), connecting the two endpoints:

     a. from frequent to infrequent purchases

     b. from high to low price point

     c. from tangible to intangible goods

     d. from high margins to low margins

     e. from transactional to continuing revenue relationships

Then mark the midpoint for each continuum.

Now – for each issue – on which side of the middle does your business fall?

Now ask yourself – what’s the right answer for the other side of the spectrum? And what’s the right answer for my side? How and why do they differ?

========

A little reflection can go a long way.  If you’re a law firm, and you’ve figured out you need sales training (which you probably do), don’t go hiring sales experts from retail B2C businesses. If you’re selling web-hosting services, you may not need the world’s best advice on building deep relationships.

Another way to put this might be: if something doesn’t feel right to you – your gut may be telling you something valid. Have enough courage to at least ask questions about it.

Don’t just do what someone who wrote about selling tells you. Their advice might be in the “other half” of sales advice – the wrong half for you.

It depends. On you.

I’m Selling Hammers, You Look Like a Nail

/9 Comments/in , /by

iStock_000000212423XSmallYou know the old line, “If you’ve got a hammer, everything looks like a nail.” It means we tend to see the world through our own frames of reference. It’s a good reminder to watch out for unconscious biases.  And in sales, it shows up in a very particular way.

[Trivia tidbit: the hammer/nail line is credited, in Wikipedia, to Abraham Maslow in 1966. But elsewhere, it’s attributed to Bernard Baruch – who died in 1965. Someone’s wrong.]

Hammers and Nails in the Field of Sales

Occasionally you get a salesperson who actually sees a wrench and mistakes it for a nail. But that’s an uninteresting mistake – that’s just incompetence.

A much more frequent occurrence is that once the salesperson sees the wrench, and recognizes it’s not a nail – they leave! They assume that the lack of nails means game over; nothing to see here folks, turn the lights out on your way out the door.

And it seems obvious, right? If you’re selling hammers and you find yourself in a nail salon, you say “whoops” and  ask directions to the hardware store. And you leave.

Because – wrong kind of nails. They’re never going to buy hammers, not from you, not from anyone. Because the only nails here are getting manicured. They…do…not…have…nails.

And in case it’s still not obvious you should leave, sales organizations reinforce it at every step. Don’t waste your precious time. Salesforce efficiency. Ruthlessly prune the lead list and the funnel. Deploy yourself where real nails are to be found. Go where the real nails are. Get out.

A Blinding Flash of the Non-Obvious

In our haste to get out of the nail salon and scramble to a He-Man nail store, we forget one thing. You just passed up a chance to do some high impact marketing.

And it’s easy. You were already there, standing in front of someone who probably buys. There are a hundred things you could have said to the lady at the nail salon:

  • Hey, I noticed your screen doors are getting a little worn – I know someone who fixes that, would you like his number?
  • Well, aren’t I the silly one! Unless, that is, you’re looking for a present for that special man in your life; if you tell me about him, I can tell you what kind of hammer to get him – and believe me, any man loves a new hammer.
  • You know what, as long as I’m here – you got any drawers that are always sticking, maybe an appliance that isn’t working right? I’ve got 10 minutes until my next call, anything I could help you with?
  • Tell me, what kind of ladies come in here, from where? How would I know if my wife would like this salon? What kind of friends should I refer here to you?
  • This is so funny, I was just thinking the other day about nails and nail salons, and they’re actually pretty similar – tell me, what works best for you in finding new customers, and in getting repeat customers?
  • Oh well, that’s my bad sales story of the week. Not so bad, really. How about you? You ever have a bad day in here? What would you say was your worst day in this business?

In other words – engage with and serve the customer in front of you. If you always do that, word will get around. The lady from the nail salon will tell friends, “A funny thing happened today; a guy came in selling hammers, and it turns out he’s really interesting…”

What does it cost you to make an impression? Compare the cost of that impression to a mailing, a phone call, a social media campaign – and then factor in the qualitative impact of that impression.

Sales Goals and Sales Outcomes

So much of what makes sales fail (and give selling a bad name) is thinking that the goal of selling is the sale. And so in single-minded pursuit of your sale, you leave negative impressions or no impressions at all as you bounce around the world – because you leave as soon as your goal is not immediately evident.

The better way to think about it is that the sale is an outcome – a byproduct – a consequence. It’s an outcome of a very different goal – the goal of helping people you run into, including a few who turned out not to be the nails you thought they were.

Don’t pass up a marketing opportunity because of your obsession with the sale. Play the long ball. Make your goal service. And if you do that – the outcomes, the byproducts, the consequences turn out to be at least as much, if not more.

Sales, Surgeons and Profits

/9 Comments/in , /by

iStock_000002256780XSmallThe NYTimes recently published Salesmen in the Surgical Suite, a look at some questionable sales practices in the US surrounding a robotic surgical technology called the da Vinci Surgical System, a product of Intuitive Surgical Inc. The article cites a case of severe damage to a patient due to inadequate training of surgeons, and a variety of documented practices by Intuitive pushing the limits of proper training and supervision.

My point is not to argue the case for or against the company; that’s being done already in a case filed against them. What I do want to touch on is how we should think about issues like this. In other words – just what kind of a problem do we have here?

Profit vs. Patients?

The ultimate issue, I suggest, is the relationship between a for-profit business and the well-being of the end-user customers. Health care is an extreme case, because of the direct link between the two; but in a sense, this is the same issue we face in a capitalist society for any good or service. Healthcare, and surgery in particular, are extreme cases, thus useful for clarifying issues.

There are three commonly heard points of view:

1. There is an innate conflict between the interests of the profit-seeking business sector and the ultimate good of the patients; this conflict must be regulated by a third party of some sort.

2. There is no innate conflict between business and patients, except insofar as business is regulated by governmental and other third parties, who inevitably just distort the ideal workings of pure markets.

3. There is no innate conflict between business and patients, except insofar as business misreads its own long-term self interest by being addicted to short-term fixes, leading to regulation – a self-inflicted shooting in the foot.

The first two arguments are endlessly hashed over, with much heat and little light, in all the various venues of the day: from Congress to HuffPost to talk radio to coffee shops. (I suspect this debate is largely a US debate, as most other developed economies have tilted toward the first viewpoint, far away from the second). I’m not going to change anyone’s mind about the relative merits of one and two.

But number three is interesting: it suggests that the business-society conflict is unnecessary, and that the solution lies largely within the hands of business itself. All that right vs. left, redneck vs. socialist shouting is nothing more than noise.

Is this a utopian, pollyana-ish view? Or is it very real?

The Best Interests of Business

We can reframe the issue as simply, “Is there or is there not a long-term fit between the interests of business and consumers?” Karl Marx answered in the negative, and claimed that the tension would ultimately result in revolution. I suggest that any right-thinking capitalist must answer in the affirmative – there must be a commonality of interest, else the doctrine of capitalism is of little use or interest.

But if that’s the case in the long run – why then isn’t it in the short run? Why do we see salespeople play with endangering people’s lives in order to get the order in before the end of the quarter? Why do companies fight for less regulation, commit economically foolish acts in order to smooth quarterly earnings, and prefer the net present monetized value of almost anything, rather than the longer-term asset that comes from brand, history and culture?

We live in a very imperfect business world, I suggest. We do not do a good job of assessing economic good, or even of assessing business value. We rely on definitions of value which are narrow, solely financial in nature, and short-term. The tyranny of the discount rate leads us to forego thinking about the next generation – it’s just un-economic to worry about something 40 years out, there’s not enough present value in it to justify it.  The Chinese have a history of looking at hundred-year timeframes; the US struggles to get past quarterly, and three years might as well be a lifetime.

The poverty of our financial calculus can be described several ways. Economists would say we do not take into account externalities, so we delude ourselves about the costs of degrading the environment. Social scientists describe it as resulting in a poverty of the spirit (a tone we hear echoed by those who preach ‘the final days of the empire’).

This poverty of calculus is supported by impoverished thinking. Adam Smith was brilliant; the caricatures of him that came down through Ayn Rand and the Chamber of Commerce retain nothing of his focus on the good of society, much less his work on the moral sentiments. Even business theory is impoverished – NPS and Five Forces just don’t have the sweep that we saw from Peter Drucker or even Sun Tsu.

What I’m suggesting is that business needs to radically re-think itself, across the board, into a long-term partnership with the rest of society. The commercial instinct of mankind ought to be a driver of value and wealth creation for all of society, and not hostage to an ongoing battle between haves and have-nots. Whether we need more or less government, more or less regulation, should not be the issue.  The issue should be how can business and society line up on the same team?

We really should be able to do better.

Hitting a 7-Iron from the Tee Box

/4 Comments/in , /by

This weekend I joined a dozen school buddies for an annual golf outing. Now, I took up golf late in life, which explains why I’m pretty much the worst player in the group.  At least, that’s what I tell myself.

Nobody minds much, except for me; everybody respects everyone else’s level of play. After all, that’s why handicaps exist. That said, once per outing, I will ask one good player for some advice. This time, I got some great advice from Dave.

“Charlie, your drives are too erratic. When they’re good, they’re as long as anyone’s, but much more often they end up in the woods on either side. Put away your driver club and just hit a 7-iron off the tee. You’ll give up 100 yards in distance, but you’ll always be in the fairway.”

An Insult? Or a Challenge?

As golfers know, on the face of it, that’s a bit of an insult. A 7-iron is made for much shorter shots than the driver.  Telling me to use a 7-iron from the tee is like telling a cyclist to use training wheels, or a poet to go work on rhyming. But I know Dave, and he knows me, and I knew he was just trying to challenge my thinking in a creative way. And thinking is at the heart of the matter.

All sports are about one’s mental state to some degree; but no other sport can touch golf in the attitude-to-performance linkage. How can you miss a two-foot putt? Easy – start worrying about missing it.

For most golfers (me included), the tee shot leads the list of stress-inducing moments. There are a thousand ways to think wrongly about your tee shot – and every one of them can make for a self-fulfilling prophecy. The trick is to leave your thinking behind when you finally approach the tee, and let the habit of your muscle memory take over. Over-thinking is the root of all evil in golf.

Over-thinking: a Metaphor for Life

There was no way I was actually going to hit a 7-iron from the tee – these are my buddies, and I’m not all that ego-free! But I realized Dave had given me a gift. All I had to do was envision the result of a 7-iron from the tee – and duplicate it with the driver.

Mechanically, that meant slowing down, dialing back the swing, not trying to kill the ball. Mentally, that meant feeling relaxed, staying within my comfort zone, not pushing the limits – and especially not fearing all the bad things that could happen .

The result was powerful. I gave up some distance (less than 100 yards, though) but stayed within the fairway much more often. Result, better scores.

The Tee Box of Life

How often do you invite failure – because you’re pushing the limits on a dozen variables, living in fear of missing on one of them? Does it happen in sales calls? Client progress meetings? Presentations? Performance reviews?

Maybe you should try hitting a 7-iron from the tee box. Dial back the rough edges; stay within yourself; be very clear about the core message, the core values, the core parts of the relationship. Find your swing, and learn to trust it. Be clear and simple about what you’re doing. You may not make the occasional spectacular shot; but you’ll miss a whole lot of disastrous shots, and improve your score.