Jonathan Farrington’s Blog

I expect you have heard the expression, “People who fail to plan, are planning to fail” and nowhere is this more true than when it comes to planning sales activity.

Selling is both an art and a science. To put it another way, a sales person’s skills determine their level of artistry at selling and their strategic planning provides a scientific platform for their sales activities. One of the characteristics that makes a sales person successful is careful use of their selling time. Time is something that doesn’t stop, yet how it is used, affects performance that can leverage the impact of sales activities.

To influence sales results you need to work on your sales activities. For example, all the sales activities you have undertaken in the past have produced your current results. The sales activities you perform today will create your future results. Therefore, there is always a time delay between activities and results. Focusing on activities in a well-planned way naturally increases results. The Sales Platform concept is a sophisticated process for analysing, planning, directing and monitoring the activities of sales people.

The Sales Platform features three main elements:

1. Buying Platform – This comprises of existing customers who are purchasing from you on a one-off basis or a regular basis. This segment of the platform requires two strategic sales approaches:

• Sales actions that reduce the risk of losing customers (a proportion of customers are lost over time due to a variety of reasons)

• Sales actions that can generate incremental business from existing customers (it’s easier to get new business from existing customers compared to prospects)

2. The Working Platform – This comprises of prospects who have been visited yet aren’t currently buying. This segment of the platform is extremely time intensive yet is a crucial part of the development of an ideal customer base. The sales approach in this segment is to accelerate prospects through the pipeline until they become a customer.

3. The Market Platform – This comprises of leads that have not yet been qualified as prospects that have the potential to become customers. This segment of the platform is the vital preparation phase to replace lost customers and grow existing business in the longer term. The sales approach in this segment is to select the right type of opportunities that have the potential to become prospects. Banks of qualified prospects can be built up if appropriate – ready for a concerted attack on a targeted part of the market place.
In an ideal situation and based on the market conditions there should be a good balance between all three platforms.

Excess Buying Platform activity will constrain the growth of the business into those areas that are identified as the opportunities of the future. It is also a symptom that the organisation has got itself into a rut or a ‘comfort zone’, that the communication of policy is poor, that management is not controlling the work, or that people lack the confidence to tackle new areas (or a combination of all of them). Too much emphasis on the Market and Working Platforms is inefficient and will increase the cost of sales unnecessarily. Without a strong base of long-term customers, this will dramatically reduce the potential for growth, and could well lower the reputation of the organisation.

I have been using this method of activity planning for almost twenty years and I can promise you it works!

Today’s News: As you may well know, every week, the Top Sales Experts select ten sales related articles from a very small number of article communities and then vote for a winner; the details are always posted on Sundays at 18.00 hrs GMT: This week’s selection is exceptionally good but you can judge for yourself here. 

Tomorrow: On the JF Guest Author Spot, my very good friend, Jill Konrath is back: I was chatting with Jill on Friday and she is gearing up for Shebang which happens in just one week’s time - if you haven’t booked your place, there are still a few left, but do hurry!

  
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The first sale isn’t the end of the sales process but the beginning of the next sales cycle. What you do after you’ve made the first sale determines whether you get the next one or any referrals. New customers have a tendency to evolve through three phases once they decide to buy from you. Initially they feel very excited about their decision before going through a learning curve where they may struggle with blending in your products/services. Finally, they begin to experience the value that you provide and the relationship settles down and finds its own balance.

During Phase 2 this can be a potentially vulnerable time for a sales person, because without the benefit of an established track record, in the face of possible problems, no matter how minor, this is the time when most newly acquired customers are apt to change their mind.

The process of buying has four main components that all customers will evolve through.

They:

1. Have to be motivated to want to buy from you
2. Make a decision to buy from you
3. Want to feel convinced that they have made the right decision
4. Look for reassurance that they are doing the right thing

Once the customer has placed their order they are at the second stage in the buying process. If a sales person doesn’t provide the relevant reassurance that validates the benefits of their decision, then the likelihood of the customer cancelling their order increases dramatically. This is often referred to as ‘Buyers Remorse.’ Therefore, it’s important to provide tangible demonstrations that the customer has made the right decision. These can include, the use of testimonials, higher initial servicing levels, regular contact and if appropriate training sessions on the areas effected by the introduction of your product or service. There are a number of additional ways that can improve the post sale part of the sales process:

• Set a service agenda for the first thirty days after the sale so that your customer knows exactly what they can expect from you. This may include visits and phone calls at the point when they receive your product or your service begins. This enables you to have established contact frequency at important times when teething problems could occur.

• Ask each customer for their preferences in the way you manage their account and ensure that they have all the contact information for every eventuality.

• After the call send a hand-written note thanking them for their business. This is a personal touch that only takes a moment to do, yet leaves the customer feeling valued and special.

• Identify what areas in particular the customer feels is vital to the way you manage their account so that you can pay close attention to these areas.

• Agree up-front how future problems will be handled.

• Document all successes and evidence of your value in writing. For example: “I noticed that your delivery was received on time last Thursday and am delighted that you now have our products in stock.”

• Actively ask questions to check their satisfaction. For example, “Was everything as you had expected?” “Is there anything we need to change?”  This helps to flush out problems and manages the customer’s expectations so they feel they are genuinely being looked after. If there is a problem, the earlier you know about it the sooner you can remedy it

• Finally, resolve any complaints quickly and to the customer’s satisfaction.

Today’s News: There are now just a few places left for the sales event of the year, Shebang, which is being organised by my very good friend, Jill Konrath: Many of the Top Sales Experts team are amongst the speakers, including: Wendy Weiss, Kim Duke, Joanne Black and Anne Miller. You can find full details over in the left hand column.

Tomorrow: After three weeks in the UK, I am heading back home to France and all the home comforts: It has been a great visit; I got to spend some time with one of my favourite clients; we finished the new Sales Practitioners site; launched the sampler of “JF’s Blogging Good Year”; made considerable cosmetic changes to the superb Sales Leadership Zone ; began work on the new Top Sales Experts site, having expanded the team considerably and found a publisher that I respect - phew!

As ever, wherever you are, have a really great weekend and I will be back on Monday - JF

 

 

 

 

The JF Guest Author Spot

In Part 1, I examined how the proliferation of media such as magazines, TV, radio, and the internet has made the salesperson as the provider of information and guidance to prospects obsolete.  Now, we examine the impact this change will have upon salespeople.

In reality, this change in the way prospects view salespeople has just started.  It will continue to grow month by month, year by year.  And, unfortunately, this isn’t simply a change in the way salespeople need to market.  This is a fundamental change in the way people buy.  This is a change in what sales is.  This is the eventual death of sales as we know it for most consumers and most salespeople.

Does this mean the death of the salesperson?  Yes, as we currently know salespeople.  There will still be salespeople.  Most will be nothing but order takers, customer service reps with the title of salesperson.  It will still take years to come to full fruition.  However, it is well on its way.  The only conversation most “salespeople” will have in the future will be a variation of “Do you have it in red?”  “Great.  What’s your price?”

Yet, the very nature of this change is offering a select few salespeople the opportunity to make more money than ever before.  This change in the way people view marketing and their desire to make their own decisions based on knowledge and information give salespeople who grasp the opportunity the ability to become a dominate force in their local markets.

There will always be a segment of the market that understands they need guidance by experienced, skilled salespeople.  No matter how dominate the do-it-yourself mentality becomes; there will always be those who want to work with experts.  In addition, many who will be tempted to go the do-it-yourself way will gladly pay more to work with someone they perceive as a genuine expert. 

We are in the process of changing from a sales environment to an expert environment.  Salespeople are becoming dinosaurs, relics of a bygone era.  But just as dinosaurs were replaced with mammals, salespeople will be replaced with experts—publicly recognized forces in their industry within their local area.

What is an expert and how do you become one?  How do you not only survive in this changing environment but also become a dominate force?

We must first understand what an expert is.  An expert isn’t the “best” in their field from a technical standpoint.  An expert isn’t necessarily the most technically capable financial planner, insurance agent, networking engineer, IT consultant, telephony consultant, or Realtor.  That is a myth.  Thousands of the top technicians wash out of business every year because although they may be among the best technically, they have on one to sell to.

An expert is an expert because they are perceived to be an expert by their target audience.  They have the image and reputation of an expert. 

If you want to become a top producer in the new expert environment, you must develop a public reputation as an expert.  You must develop a local reputation as powerful as the experts writing the articles, giving the interviews, and being quoted in the news media. 

Developing that image and reputation doesn’t happen by accident.  Those who are recognized as experts work very hard at creating their image and their reputation not by using the traditional marketing techniques and strategies used by the majority of salespeople, but by using the tools and strategies that create a public image and then supplementing that image and reputation with well thought-out marketing.  Marketing is still present; it is simply an adjunct to the salesperson’s lead generation, not the focus.

Creating a pubic reputation takes time and effort.  You must learn how to use the tools, then create and implement a plan.  It doesn’t happen overnight, nor is it simply using a couple of strategies.  Creating a public image and reputation requires the use of a number of media and tools in combination, each reinforcing and branching off from the others.

Although it isn’t necessary to use every possible reputation-building tool, an expert reputation requires the use of such things as press releases, blogs, writing educational articles and books, becoming an expert source for media and freelance writers, educational websites, public speaking, developing strong referrals from clients and customers, and creating alliances and partnerships with other experts.  Of course, there are other methods and strategies available. 

Creating a public reputation as an expert is moving from a marketing mindset to an educational and publicity mindset.  It captures the power of education and combines it with a message of unique status and stature within the salesperson’s field.  It converts selling to education and eventually brings it back to selling. 

If you want to thrive in the new expert environment, learning how to convert your business from being a salesperson to being a recognized expert is mandatory.  Whether you are relatively new to sales or an old pro, now is the time to begin to seriously work on moving your business to a recognized expert platform.  The change in how people buy is well on its way and grows daily.  Companies are actively preparing for the change and salespeople must also prepare.  And although the change will not favor the majority of salespeople, the future is brighter than ever for those willing to invest their time, money and energy in learning the new realities of selling.  

Paul McCord, president of McCord and Associates, a Houston,Texas based sales training, coaching and consulting company, is an internationally recognized authority on prospecting, referral selling, and personal marketing. His best-selling book on referral generation,Creating a Million Dollar a Year Sales Income: Sales Success through Client Referrals (John Wiley and Sons, 2007), is quickly becoming recognized as the authoritative work on referral selling. His next book, SuperStar Selling: 12 Keys to Becoming a Sales SuperStar will be released in February, 2008. He may be reached at pmccord@mccordandassociates.comThis e-mail address is being protected from spam bots, you need JavaScript enabled to view it or through his sales training website at www.powerreferralselling.com 

Today’s News: There is a great interview on Salesopedia today - one of the newest members of the Top Sales Experts Team, Rochelle Togo-Figa, is in conversation with Clayton Shold and you can listen in here

Tomorrow: “Understanding The Three Post Sale Phases” - Yep, there really are three!!

The JF Guest Author Spot 

Death usually comes slowly in sales.  More salespeople died in sales in the 20’s because of an inability to find enough prospects to sell than for all reasons combined.  Same in the 30’s, and the 60’s, and the 90’s, and every decade in-between.  Finding prospects and marketing to them has always been the leading killer of sales careers, and that death has typically been a slow, agonizing one due mostly to a lack of effort on the part of the salesperson or more often, the ineffective use of the marketing methods they chose to employ to reach prospects. 

Today, the very marketing methods that have been used by both successful and failed salespeople for the past 100 years are themselves dying a slow, agonizing death.

There was a time, not too long ago, in fact, when prospects and clients looked to salespeople for advice and guidance.  Prospects knew they needed information.  They knew they needed help in finding and evaluating alternatives and solutions to problems and issues. 

In an environment where prospects needed salespeople, the personal marketing methods salespeople employ such as cold calling, fliers, direct mail, and such worked well to reach out to and influence prospects.  Moreover, a skilled salesperson could use those methods to set themselves apart from their competition.

Nevertheless, the sales environment is fundamentally different today from in the past.  Today’s reality is that prospects no longer need and a rapidly growing number no longer want salespeople involved in their purchasing decisions.  For most salespeople, the world has moved beyond them; however, they have yet to recognize it.  They’re still living in the past, in a world where prospects and clients needed them. 

For a great number of prospects, both individual and business, the salesperson as supplier of information and guidance is outdated.  These individuals and businesses have passed over the divide from those who feel a need to rely on a salesperson for guidance, to those who believe they can make better choices without a salesperson involved in their decisions.  Moreover, the numbers who are moving over to the do-it-yourself side of purchasing are growing larger everyday.

With the proliferation of the internet; the avalanche of books, magazines, and white papers addressing every conceivable subject; cable TV with programming covering everything from personal finances, to virtually every business subject one can think of, to the most intimate personal, family, and social subjects, a huge number of prospects believe they already have the information they need to make decisions.  Now, all they need is someone who will provide the cheapest price for the product or service the prospect has determined will solve their problem or meet their need.

The sales environment is undergoing a swift and dramatic change.  Over the past decade, prospects have become more aware of the bombardment of marketing they face everywhere they turn.  Their mail is dominated by direct mail offers.  Almost every internet site they visit is flooded with marketing and advertising.  Newspapers and magazines are more than 50% advertising.  Radio and TV are, of course, marketing driven.  Everywhere one looks is marketing:  billboards; the side of the car next to you may well have a magnetic sign marketing something; the license plate frame on the car in front you advertises the dealership the car was bought from; the pen in your pocket may well have some company’s logo; and the horde of cheap signs on the street corner advertising shops going out of business, cheap internet, cheap insurance, cheap everything. 

Then, of course, the cold calls.  Cold calls for investments, insurance, internet connections, phone service, you name it.  Cold calls at work.  Cold calls at home.  How many do you get everyday?  5?  10?  More?

Of course, we’re not done.  Spam.  How many spam messages do you get?  How many lotteries have you won this week alone?  How many dead princes, long lost relatives, and just plain old Good Samaritans died and their representatives have contacted you this week for you to claim your inheritance–or someone wants you to help them sneak ill-gotten funds out of some third world country?  How many lonely hearts have you heard from this week wanting to become “friends?”  How many offers for discount software, discount drugs, or incredible stock tips have you received this week?  How many legitimate businesses have stuffed your e-mail box with junk that you didn’t request and didn’t want?  I will typically get about 1,500 pieces of spam every week–over two hundred a day.  Everyday.

And what do all of these things have in common?  Well, besides being unwanted, all of the businesses pushing products or services claim to be the best.  They all claim to have the best price or the give the most value.  They all claim to have the best customer service. 

They all have the same message, which means none have any message.  Every direct mail piece is virtually the same, only with different pictures.  Every salesperson sounds exactly like all the other salespeople.  Every ad is just like the others.  None can be heard over the din of the racket made by all this marketing.

Is it any wonder people despise marketing?  Is it any wonder people will go to great lengths to avoid salespeople?  Is it any wonder that marketing and sales as it has been practiced in the past is dying?

Why are these millions of personal and business consumers convinced they no longer need you?  They believe they no longer need you because they are getting their information from “objective” experts, not from biased, commission-oriented salespeople.  They are making their own decisions without need for you because they have read an article or book, or heard a report by an unbiased expert who gave them “objective” information that they can act upon.  Rather than relying on the slanted and obviously prejudiced information a salesperson gives, they turn to the experts who they believe don’t have a dog in the fight. 

Prospects don’t want to be sold, despite what some salespeople and even some sales trainers think.  They want to be educated.  They want real information as a basis for making their own decisions.  They don’t want marketing; they want knowledge.  They don’t want sales brochures; they want reporting and facts.  They want to be dealt with as educated people capable of making their own decisions based on reliable information.  And whether they are right or not, they don’t believe salespeople provide that information.  Instead, they rely on recognized experts.

Moreover, companies are reinforcing this belief by rushing to provide these prospects with the means to make their do-it-yourself purchases at the lowest possible price.  There are companies in almost every industry you can think of that are catering to this growing mass of consumers.  There are thousands of these companies, and the list is growing daily.  Some companies even try to have it both ways by maintaining a traditional sales force while undermining their sales team by at the same time trying to lure prospects by providing a do-it-yourself internet site or 800 number where the prospect can purchase without having to speak with a salesperson.

Companies such as LegalZoom.com turn many legal document issues into a cheap, fill in the blank exercise.  Esurance, AIG, Geico, Progressive, and many others encourage consumers to eliminate the insurance agent for auto insurance, while other companies are doing the same for home, health, life, and even business insurance—after all, it’s just insurance and who needs an agent to make the purchase more expensive?  Mortgages, investments, real estate transactions, and hundreds of other products and services also have their version of the do-it-yourself product and service provider.

In part 2, on Thursday, I look at what this radical change in buyer behavior means for salespeople and personal marketing.
Paul McCord, president of McCord and Associates, a Houston,Texas based sales training, coaching and consulting company, is an internationally recognized authority on prospecting, referral selling, and personal marketing. His best-selling book on referral generation,Creating a Million Dollar a Year Sales Income: Sales Success through Client Referrals (John Wiley and Sons, 2007), is quickly becoming recognized as the authoritative work on referral selling. His next book, SuperStar Selling: 12 Keys to Becoming a Sales SuperStar will be released in February, 2008. He may be reached at pmccord@mccordandassociates.comThis e-mail address is being protected from spam bots, you need JavaScript enabled to view it or through his sales training website at www.powerreferralselling.com

Today’s News: The more observant of you will have noticed a new widget in the left - hand column; yep, “JF’s Blogging Good Year” is ready to download: It is a sampler edition and as I said in the introduction, I do hope you feel compelled to buy the hardback version, which will be on the shelves before Christmas.

Tomorrow: ”The Two Combat Strategies Regarding Objections”

Sales presentations become so much more compelling at the point when you have identified and agreed all your prospects requirements, and have tailored your presentation so that it illustrates how you can completely satisfy their agreed requirements. If you can then add your unique strengths to what the prospect is looking for, your proposal becomes stronger and much more persuasive.

Here are ten suggestions that help improve the effectiveness of any presentation:

1. Find out in advance how much time you’ll have and plan that your presentation will take approximately 75% of the allocated time. This leaves sufficient time for questions and through handling of any objections that you may encounter.

2. If you are in a competitive situation, find out when the other suppliers are scheduled to present and if possible try to be the last presenter. The reason this can be so important is because your prospect can make a proper comparison of your presentation in light of your competitor’s presentations, meaning that they are better equipped to recognise the added value you provide. This also creates a stronger possibility that you can get a decision from them at the end of your meeting.

3. When structuring your presentation start with a quick review of the prospects’ goals and objectives, and then list their agreed requirements. This will determine the sequence and structure for your presentation, because ultimately you’ll want to highlight how your solution meets each one of their requirements. During your fact-finding meeting you should have obtained a priority of their requirements so that you can address their most important requirements first.

4. Throughout your presentation incorporate relevant customer testimonials that validate the points you are making, and if you refer to research statistics ensure that you quote the source.

5. At the beginning of your presentation you want your prospect to be interested and compelled to listen to what you are about to present. That’s why structuring your opening in a format to appeal to all types of prospects makes it easier for them to understand your message. Therefore, open your presentation by addressing 4 main questions:

• Why will the prospect benefit from your presentation/products/services?
• What will be covered during your presentation?
• How will you be conducting your presentation?
• When will the prospect be able to ask questions?

This simple structure is based on David Kolb’s work on learning styles, where he categorised people’s ability to learn into four learning dimensions:

• Concrete experience - learning from specific experiences, relating to people, and sensitivity to feelings and people

• Reflective observation - careful observation before making a judgment, viewing things from different perspectives, and looking for the meaning of things

• Abstract conceptualisation - logical analysis of ideas, systematic planning, acting on intellectual understanding of a situation

• Active experimentation - ability to get things done, risk taking, influence people and events through action
Bernice McCarthy, developed “The 4MAT” system based around these four main learning styles, each of which asks different questions and displays different strengths during the learning process.

The Four Learning Styles are integrated into a cyclical approach that:

- Begins by explaining WHY the audience will benefit from your presentation. This provides concrete motivation in an innovative way to create interest and an openness to want to hear what you have to say.

- The process then continues by explaining WHAT you are going to talk about. This enables the audience to think through the concepts you are about to present and formulate them in an analytical way.

- The next stage is the abstract conceptualisation stage that explains HOW you’ll be delivering your presentation.

- This then leads to the final stage; the active experimentation stage where you want to encourage IF questions so they can apply what you have said to different contexts.

6. Use visuals in your presentations because a picture is worth a thousand words. Support your important points with graphics and images yet keep them simple to maintain interest while conveying relevance. This is particularly important if your prospect has a dominant Visual communication style.

According to the Robbins Research Institute, they have identified the 12 most persuasive words to use when selling.

These are: Discover, Free, Guarantee, Love, Money, New, Proven, Safe, Save, You, Results and Exciting.

By combining some of these words into your visuals as well as in what you are saying will help ensure your prospect remains alert and interested.

7. A good presentation will clearly communicate all of your unique strengths and reasons why you are their best choice. Ultimately, most prospects want to know two things:

- Can you do what needs to be done?
- How can you do it better than the other options we are considering?

8. Seek to gain agreement throughout your presentation either non-verbally or by asking questions, for example, “How does this sound?” After demonstrating a capability you could ask, “How would this be an improvement?” or “How would this help?” Interactive presentations keep prospects more involved and interested. Throughout your presentation focus your attention on your prospect, checking that they are receiving your proposals positively.

9. Handle small customer objections as they occur and agree to handle larger
objections at the end of your presentation. This ensures that the flow of your message remains on track, and you may have answered their objection during the process of presenting.
 
10. If your prospect is not in a position to make a decision at the end of your presentation, schedule another appointment. Come up with a reason to get back in there.

Even if the decision is not in your favour, you’ll receive some valuable feedback that you can incorporate when you next present to other prospects.

Today’s News: Yesterday, I issued the Prospectus to the expanded Top Sales Experts team, together with our vision for 2008 and the response was fantastic: Clearly, this group of sales gurus are going to work so well together and I am tremendously excited.

We also finished the cosmetic changes to SLZ - www.salesleadershipzone.com and I have to say the team have done an amazing job with the new Group site - www.thesalespractitioners.com

Tomorrow: I rest? I wish :-(  I have the copy of the “JF’s Blogging Good Year” sampler to read through and blog postings to prepare, plus planning three days with my favourite clients next week - oh, and of course, gearing up for the biggest rugby match for four years: Wherever you are in the world, have a great w/e and if it’s in Paris on Saturday, come and say “Hi” you will easily spot me amongst the 50.000 England fans Swing Low You Sweet Chariot - Just bring me home.

The JF Guest Author Spot

Do you sell features or benefits? Do you know the difference? All too often salespeople think features are key. Of course, it’s because that’s what they’ve been shown. ‘Look at all the bells, whistles, and gadgets!’ It’s as if the more gadgets, the more valuable the product or service. Well, that’s only true if your prospect NEEDS all those things.

Have you ever been shopping for something where the salesperson keeps telling you about all the features, yet never once asks you what you need? Or they ask you what you need but go ahead and tell you everything else? Is that how you sell? Do you think that if you don’t tell them EVERYTHING, you’ll miss out on the one thing your prospect is looking for?

STOP!

Stop talking. Stop thinking. And please, stop selling. Your prospect doesn’t want to listen to you ramble on about things they don’t care about.

Ask a few questions, listen, and then address only what you hear. Let’s explore this process.

1. Ask a few questions

And I mean a few. Examples are: -What are you looking for the product to do? What do you need or want to accomplish with this product? What matters most to you? (Here you can offer some suggestions – price, volume, speed, reliability . . .) With these questions, you are trying to get the prospect to tell you exactly what they want/need. You can also ask if they will need certain functionality that you know the product or service offers. Be careful to continue to ask and listen here – don’t explain or sell.

2. Listen

Listen to the answers. This is where you’ll find out which features solve your prospect’s problem; which features meet their needs. Their answers may lead to more qualifying questions. Go ahead and ask them and then LISTEN. You are working to discover which features you should share with your prospect.

3. Address what you heard

Now that you’ve heard what your prospect needs, you can show them how specific features will benefit them. You have a well-rounded idea of what they are looking for so you can tailor a solution specifically for them. You won’t regale (translated to: bore) them with features that don’t matter to them.

When you use this process you will accomplish a couple of things. The first is that you will be showing your prospect that they matter to you. People not only like to be listened to – they like to be heard. They want to know that you find it important to discover what they truly need or want. The second thing you’ll accomplish is that you’ll have a very good understanding of what they need. This will give you the ability to really answer their concerns with your product or service. Your solution will be powerful because it will address the prospect’s concerns – not what you think they should know. This is where the features come in. You present them as benefits – how they help your prospect based on what he/she said.

Remember, it’s not about you telling your prospect all the features of your product or service. What matters is that you show them the benefit TO THEM of the features that can help them solve their problem; the problem you discovered when you asked them questions. So you see there is a connection between features and benefits – when you use them the right way.

Copyright© 2007 Seize This Day Coaching

Diane Helbig is a Professional Coach, and the president of Seize This Day Coaching. She works one-on-one and in groups with small business owners, entrepreneurs, and salespeople to help them create successful business development strategies. As a team, they embrace the possibilities. Diane’s website is http://www.seizethisdaycoaching.com and her blog is http://www.seizethisdaycoaching.blogspot.com

Today’s News: Actually, this is yesterday’s news! Another superb selection of articles this week, over at Top 10 Sales Articles - well worth a visit, I promise.

Tomorrow: If you negotiate, which all of us have to do from time to time, you will enjoy: “The Importance Of Trading Concessions”

Before looking outwards at our prospects and customers we need to look at ourselves, because each of us is a unique human being with our own desires, dreams, problems and thoughts. To understand how we can communicate and therefore sell more effectively, we need to understand the human communication process.

Every minute our unconscious mind absorbs over two million pieces of information through our senses. We are bombarded with sights, sounds, smells, tastes and touches. Yet according to Professor George Miller from Harvard University, we can only process around seven chunks of information consciously at any given moment. That’s an awful lot of information that our conscious mind chooses to ignore or to be more accurate, delete! This means that every individual will process information based on what they a focusing on at that time.

The information that enters our unconscious mind goes through three filters to reach our conscious mind. We delete most of it because there is no way that our conscious mind could cope with what is held in the unconscious mind. We distort the information based on our current situation.  For example, a child may interpret the ordinary sounds of a central heating system very differently if they are left alone in the house. This is why, sometimes people can completely misinterpret what we are saying to them, they are distorting the information because they are focusing on a different meaning to the one we wanted to convey.

We also generalise information. For example; once we have learned what a chair looks like we can instantly identify other ‘chairs’ even though we haven’t seen every type of chair. We can generalise the way most doors are opened, how most cars are driven and even how to identify when a person is either male or female.

After the information has been filtered into our conscious mind, there are only four things we can do with it inside our heads…we make pictures, sounds, we talk to ourselves or we have feelings. The combination of these things creates an emotion that has an effect on our physiology. For example; if we feel embarrassed we might blush, if we feel angry we may tighten up our muscles. Every thought we have affects our body and the way we move our body affects our thinking. Our mind and body are totally interconnected.

If you observe someone suffering from depression, they are often round shouldered, they look down a lot and many of them will be using a lot of negative self talk, “why does this always happen to me?” “I’m useless, what’s the point?”

Contrast this to a person who feels really confident, they stand upright, their shoulders are back and they use eye contact. Because every thought we have affects our body, this means that our emotional state also affects our behaviour, which consequently affects and influences the results we get. Therefore, if we want to change aspects of our lives, including the way our prospects and customers react to us, first we have to change our own thinking.

Today’s News: Since we launched Top 10 Sales Articles back in April, we have been fortunate enough to have such very high quality articles to choose from every week but this week’s batch is exceptional and choosing a winner is going to be incredibly difficult: Judge for yourselves here 

If you are a rugby fan, you will forgive a little indulgence and you will know that I am smiling from ear to ear this morning. First up, my boys produced an awesome front-five performance to totally destroy the Aussies - always doubly satisfying when we beat the men from “down under”: Then my second love, “Les Bleus” produced a performance of real passion and self-belief that only the French can, to destroy the best team in the world for the last four years and tounament favourites, the mighty All Blacks.

And now the bad news: They have to play each other in the semis next Saturday in Paris :-(  

Tomorrow: On the JF Guest Author Spot,”Mr Remarkable” himself, leadership guru, Kevin Eikenberry - be sure to come back.

The JF Guest Author Spot

When I was in the military it seems we never really worried about Return on Investment (ROI). Yet, ROI is the Holy Grail of business. Run this calculation and the business manager will know what to do. Let’s review the calculation in its simplest form: ROI = (Total Benefits – Total Cost) x 100. For example. If the cost to do something is 10 units and the benefit we receive from it is 20 unites than ROI = (20-10) x 100. So, in this case the ROI would be 200%. Not bad, in fact, if business were this easy anybody could do it. But they can’t. They cant because business isn’t that easy and because the calculation is flawed. The calculation of ROI is as elusive as the Holy Grail.

Managers the world over want to know the ROI on the money they are spending and investing. They are even focused on this in the hiring process. When they sit around the table and discuss whether to extend a job offer they are really asking if the candidate will be worth the investment. This is a noble and worthwhile goal. The formula is fairly straight-forward as we have seen. Measure what you spend, measure what you gain, presto, you know you ROI. Sometimes you can figure it out. Often you can’t. Why not?

Benefits are hard to calculate, costs aren’t. In an attempt to measure ROI we attempt to quantify everything but we can’t. In fact, what really happens is because we are able to identify all the costs of something we are readily able to calculate that part of the equation. We are confident of that number. However, the calculation of benefit can be much tougher. If I invest in safety training I can calculate the cost of that but how will I calculate the benefits of that? If my safety does not get better than does that mean benefits were zero? Or perhaps the training prevented a major mishap but we don’t measure a mishap that didn’t happen so what is the benefit? Zero? I don’t think so. We get so focused on cost that it seems to grow. The font gets bigger and bolder. Unfortunately since we can’t truly quantify benefit we perceive benefit as being less and we minimize it, the font becomes smaller and more difficult to read. Don’t fall into this trap. I am not saying we shouldn’t be aware of what are spending and investing and what we get for it. I am saying to reduce everything to an ROI calculation means you are going to miss out on some big opportunities because you walk away based on a faulty ROI calculation.

As a professional speaker I face this challenge often. The meeting planner wants to know my fee (cost). I tell them and they compare me to the next person on the list and then choose. Actually they often come back and say they really want me but I am outside their budget (cost). I ask why they really want me and they tell me what a great fit I am for the group, they love my energy, they like my style and really think I can impact the audience (these are benefits to some extent). The conversation continues with me asking about other things they haven’t considered and me pointing out other things I do to support the presentation or in conjunction with the presentation (more benefits). I have now shifted the perceptions in their minds from a cost focus to a benefits focus. The font on cost got smaller while the font on benefits got bigger. The challenge for me in this case is how do I truly quantify what the audience will learn? I guarantee they will be entertained and they will learn something but how do I put a dollar amount on that? There are ways to do it but at the end of the day the calculation of cost is pretty solid and one of benefits is less certain.

Yet, many firms will fall back on ROI to make a decision and it is a bad decision. Let’s continue with my scenario. Despite my best efforts I can’t them to shift focus away from cost. They pick the lesser priced speaker who then comes to their event and has less energy, is less of a fit, and presents dated and boring material. Sure, they saved money and the ROI calculation was looking good but now the actual benefit of this lower price provider is clear but it is too late. The audience is wondering why they wasted their time attending such a bad presentation. It happens all the time in every industry. My next door neighbor sells medical equipment and it just happened to him as he was beat on price by a firm that sells a product with proven lower quality. But the purchasing manager isn’t looking at lifetime cost of ownership, just the initial cost. My neighbor has a product with a boatload of benefits but he sometimes he can’t get the buyer to see past cost. In the words of Emeril, BAM, bad decision. ROI has failed again. 

The challenge is to understand and be able to communicate the benefits of any given decision or course of action. That action may apply directly to us or to a business decision but the fact remains, we usually look at cost more than benefit. How do you get the boss to understand the benefits you bring to work every day? This is not a conversation we normally have but it is critical if you are to succeed in corporate America. We naturally don’t do this because it sounds like bragging. Nobody likes a braggart. However, if you don’t brag on your self a bit, nobody else will. Go ahead, tell them what you can do for them.

 Wally Adamchik is the President of FireStarter Speaking and Consulting, a national leadership consulting firm based in Raleigh, NC. You can visit the website at www.beafirestarter.com or email him at wally@beafirestarter.com. His new book is No Yelling (www.noyelling.net) is available online.

Today’s News: I actually should have pointed out to you yesterday, that we have an amazing “Early Bird” discount offer over at the Sales Leadership Zone - for the price of one very average meal with your significant other half, you can enjoy twelve month’s membership - yep, for just $50 (£25) you can have access to the most original and comprehensive site for sales captains, on the entire internet - it’s a “no brainer”

Tomorrow: On the JF Book Review I am going to review Wally’s superb, “No Yelling” 

Customers like to feel reassured that the purchase they are about to make will do everything that the sales person has told them it will do. Why? Because there is a principle based around social proof that effectively confirms, “If other customers like this, it must be good”.

The power of using testimonials during different stages of the sales process increases sales when ‘real’ customers are seen or heard testifying as to how beneficial a product/service has been for them. They increase your credibility because they are third-party endorsements rather than words out of your own mouth. The goal of a customer is to predict the future about a product/service, and by offering real stories from other real customers can turn a picture of your proposition into a tangible experience.

When using testimonials there are a number of elements that can maximise their effectiveness:

The more specific a testimonial is the more power it has for the customer. For example; “Great company, great service” lacks meaning because it is vague and doesn’t tell the customer anything. Consider the impact when a testimonial becomes more specific: “I was really impressed with this company’s speed of service. They pulled out all the stops so that I had product sitting in my warehouse within 24 hours.”

Every testimonial should include the customer’s name, title and organisation (if relevant), and ideally a photograph of that person. This helps to convey the authenticity of the testimonial and builds credibility.

Dividing testimonials into different aspects of the sales process can be really useful. When used in context they create more impact. For example; if a sales person is struggling to get an appointment with a prospect, a relevant testimonial could help persuade that prospect to agree to a meeting: “It took me 2 years before I agreed to meet this company. Having worked with them almost a year, I wish I’d seen them earlier.”

Within the context of the sales cycle, testimonials can be used at many stages, particularly:

Initial letters/emails to request a meeting
Sales presentations to reinforce key points
Objection handling and negotiations
Post – meeting follow up to provide reassurance
Managing ongoing relationships with regular contact

Validating the benefits of your product or service can be achieved brilliantly by using a video format for your testimonials at the end of your presentation. This provides a powerful ‘benefits-driven’ summary that confirms and proves your claims. Just remember, the only thing better than saying the right thing at the right time is when your customers do it for you–and better.

You and your team are already acutely aware of your most frequently encountered objections. That’s why testimonials should acknowledge and mention these objections, before explaining why they still decided to buy from your organisation. For example: “I was initially surprised with their prices until I saw the quality of their product and experienced their vast range of promotional services.”

Testimonials are really powerful when they acknowledge an objection that paces the probable experiences of your prospects, and then wipes out the objection with an overarching benefit.

When requesting testimonials you are looking to obtain a genuine viewpoint that praises your organisation/product/service. Therefore, the best time to ask for this is when your customer has experienced the benefits of your product/service. To help busy customers respond to your request, provide them with other examples of testimonials so they can see how easy they are to write. It also helps if you can provide them with a simple structure to follow, for example:

Why did you agree to meet us?
What persuaded you to buy our product?
What benefits have you gained from using this product?
How would you describe our level of service?

Today’s News: If you haven’t already checked out Jill Konrath’s upcoming Sales shebang you really should - I had a very long chat with her last Friday and she confirmed that she fully expects it to be over subscribed.

Tomorrow: You really do not expect me to be talking about anything other than the launch of Sales Leadership Zone tomorrow, do you? It will be live at 12 noon (GMT), that’s 7 am EST for you early birds!

The JF Guest Author Spot

“Aim Small, Miss Small” by Leanne Hoagland-Smith

In the movie “The Patriot“, Mel Gibson as a father tells his two young songs to “Aim Small, Miss Small” as this family works together to save a son and an older brother. Are business sales truly any different?

When we learn to “aim small, miss small”, we can better answer the 5 Why Questions of:

• Why me as the Seller?
• Why you as the Buyer?
• Why your products or services as the Seller?
• Why should I buy now?
• Why should I pay this price?

When you can answer each of these Whys, you are aiming small and therefore missing small. However, if you can’t answer each why, then you are aiming big and missing even larger.

In sales, when you determine the first why, you as the seller, you are actually creating a unique selling proposition. This may or may not be your tag line. As the market place becomes even more crowded, you may have to re-brand yourself to further differentiate you from everyone else. I call this being the “red jacket in the sea of gray suits.”

Within your strategic plan, there should be a marketing plan. This marketing plan helps to address the second Why. With greater clarity specific to your target market, there will be more small aims and more small misses.

Your business and therefore products or services were created to provide a solution. You saw a need within the market place and responded. This is the third Why. For example, I have 3 successful clients who are in promotional marketing, but are responding to different needs within the same marketplace.

To answer the fourth Why begins with your skills as a sales person. You have properly qualified your prospects. Now your open ended questions allow you to widen the gap between where your prospects are now and where they wish to be.

The fifth why is usually answered first and this haste in many cases loses the sale. I call this the 3Ps Sales Virus. What happens is that salespeople infected with this virus ending up puking product, price or proposal before the relationship is even established. As mentioned last week, many in sales answer the fifth Why question of price first. They are infected with what I call the 3-Ps Virus. Before the relationship is built, they puke one if not all of these Ps: product, price or proposal.

Would you like to increase your sales? Then, you may find Simply Speaking, Increase Sales By.. a combination e book and e workbook, of interest at re marketing, selling and planning skills are explored and leveraged to get you more money in the bank.

Leanne Hoagland-Smith, The Chief People Officer, is a nationally (USA) recognized business expert who works with those who want to reach that next level of success. Contact her at 219-759-5601 or visit www.processspecialist.com
Today’s News: Some of you may remember the somewhat light-hearted JF 2006 Directory Awards which Chris Knight over at Ezine Articles picked up on: Why do I mention this today? Well, this year I am going to broaden the scope with more categories and open it up with a fully functional poll, which will open on December 1st and close at midnight EST on December 23rd - yep, I am going play Monsieur Claus this year and hand out the presents (prizes) on Christmas Eve - what larks!

Tomorrow: To wrap up the week appropriately: “What Exactly Is Rapport” - think you know?