Thoughtful Thursdays - Managing your prospect list

All your customers were once prospects. Without prospects there will be no customers. Yes we have heard it all before.

Today's thought is about managing  your prospect database. It is one thing to have a long prospect list and another to be working the list for maximum return.

Can you have too many 'hot' prospects? My answer would be yes, if it means your level of service is being negatively affected by the work load. Trying to be everything to everyone at the same time can be a risky and stressful way to do business.

One way to mange your prospect list is to grade including the following criteria:

• Sales potential, short term and long term
• Profitability of the potential business
• Probability of closing the sale
• Likelihood of the sale closing in 1 month, 2 months, 3 months or longer
• Where they are currently in the buying cycle

It makes sense to focus on confirmed high potential sales targets that have a high probability of closing in a short period of time. This information will also allow you to more accurately forecast sales.

Many times I have seen sales people spending too much time on low potential prospects. On the other side of the coin, be mindful of being seduced by the lure of a huge apparent potential with little chance of closing the deal. Make sure your information is sound and that the insights you draw are realistic.

Be wary of "Hopium" and "Happy Ears" as described in detail by author and sales expert Dave Kurlan.

Good selling,
Richard

Thoughtful Thursdays - A worth objection

During a recent client meeting I was asked two related questions: "How do you convince a prospect that the services offered are worth the investment?" and How do you approach the skeptical response?"

A bit of background first. The prospect belongs to the target market identified by research conducted. The prospect also confirmed a situation where the service offering might very well be part of a solution to their needs, yet they were still not convinced.

My response to the questions came in the form of two of my own questions:

1. Can you provide a detailed list and have you considered all of the prospects confirmed needs?
2. Have you done the math to quantify the benefits?

The point I was making was that sometimes we take for granted that our prospects will see the benefits without having them explained in detail. We think they will join the dots and make the leap to understanding how our products/services will return much more than the original investment.

It is not always a reasonable expectation. After all, it is likely they are not experts in your field and that is one reason they are talking to you.

It is reasonable to expect to encounter an objection if your prospect is not clear about how your offering is going to address their needs.

Today's thought is about being a good consultant. Get to know how your prospect and their business. The skeptical response usually cones as a result of not clearly articulating the value you are offering. Ask a few more questions - find out where the disconnect is and address it. Be patient and listen closely before you respond.

This wraps up Thoughtful Thursdays for another year. Thank you for tuning in and all the best for a successful 2012.

Good selling,
Richard

Thoughtful Thursdays - Is it okay to ask for more?

The other week I happened to catch a  few minutes of the 1948 version of Oliver Twist, enough to see the famous "Please sir, I want some more" scene.

At the risk of being perceived as unsympathetic to the grim situation Oliver found himself in, let me make myself clear that there is absolutely no disrespect intended.

It starts out innocently - a small revision here or a payment extension there. Some call it scope creep. We are happy to do the favour as it seems harmless enough and what the heck, it keeps the customer happy. You bet it does, wouldn't you be happy getting more for less?

Before you know it the requests become more frequent and the favours larger. By that time it can be too late. The concessions you have made in the past have gone unnoticed and the customer now expects that as routine behaviour.

Be like the brave Oliver Twist - it is your turn to ask for more. More respect for the way you conduct business. More dollars for the additional value you bring every day.

Go the extra mile and do the favours, but make sure your customer knows what you are doing. Sometimes it is advisable to toot your own horn if it gets you the right kind of attention.

Be mindful and respect your time and your customers will too.

Good selling,

Richard

Thoughtful Thursdays - It's that time of year again

As the calendar year draws to an end, there is no better time for many businesses to review performance versus plan for the previous 12 months and confirm objectives and strategies for the next 12 months. Enjoy your successes and set the plans for continued growth.

For owner/operated or micro businesses it means exchanging the tactical mindset of day to day operations to strategic thinking of a business owner. Using the information gained from the field during the past year and developing insights to create plans and objectives for the next.

Block off an adequate amount of time and do not let anything change that schedule. To avoid being distracted you may want to do this outside of your office, especially if you are home based. I believe it is also a good practice to ask peers for objective feedback.

Respect the exercise, each part of your business, marketing, operations and finance, are depending on you to set the course for sustainable growth.

Maintain sight of the vision you have for your business and ensure that your objectives, strategies and tactics are working in tandem to achieve that vision.

Good selling,
Richard

Thoughtful Thursdays - Shortening your sales cycle

Today's thought is about shortening your sales cycle and finding the gold quicker. If one was to analyze their sales cycle and determine where the bulk of time is spent before closing, it is likely in the area of making connections with the right people. What if you could get to the right person faster?

Are you using all the resources at your disposal? Does your contact list include everyone you know, not just from business but personal as well?

Review and update your contact list. Make sure everyone you know is on the list. Before making contact with a prospect, mine your contact list and seek out the ones who might know someone at your prospect. You may be surprised with the results. We all know that once you have a referred contact name, the task becomes so much easier.

Give it a try.

Good selling,
Richard

Thoughtful Thursdays - mmm love that morning coffee...

...and I have three suppliers to choose from. So why is it that I favour one over the other two?

Comparing the three options, lets look at the product offering first. Supplier number one has a good selection and features individual cup brewing. Supplier number also has a variety of coffees to choose from and supplier number three at this point has one choice. In the morning they are all busy, so the coffee is brewed often. In my case having a variety of blends to choose from is not a big advantage as I am not a fan of flavoured coffees. Freshness and flavour are important as I drink coffee straight up. There is no clear winner here.

What about price? They are all in the same range. The differences are not enough to cause me to make this the reason for choosing one over another.

Okay, is it convenience? They are easy to access. The favoured supplier is actually the furthest from my office.

Reviewing product, price and convenience the field is level.

If you said customer service, you would be correct. But what part of the service tips the scales? It is not the speed of being served or completing the transaction. Without fail it begins with a cheerful and sincere "Good morning" with a smile. Add to that the parting "Thank you" and finish with "Have a great day, see you tomorrow." If I happen to miss a day they ask where I was. They make me feel like they want to have and appreciate my business - every time I am there.

It is all about the experience of the transaction that makes me a regular at supplier number two.

Do all you can to make your customer's experience enjoyable and the added value will increase the likelihood of loyal repeat business.

Good selling,
Richard

Thoughtful Thursdays - Tipping the sales scale in your favour

Last week I talked about about levelling an uneven playing field. Today's thoughts are on tipping the scales and creating the uneven field that works in your favour.

The list of examples from last week's post about levelling the the playing field is a good place to start when thinking about ways to secure and maintain your advantage. Most speak to value beyond what the products and/or services offer to your customer.

In today's competitive marketplace one is constantly challenged to find ways of bringing additional value to the customer. When discussing the subject with my clients I ask them to put themselves in the shoes of the customer and think about what characteristics they appreciate in a supplier - what would tip the scales in the favour of one supplier versus another?

• Bringing new business to your customer
• Knowing your customers' customer wants and needs
• Being knowledgeable about the industry your customer participates in
• Offering to help your customer in all facets of their business - sharing best practices

Taking off the selling hat and wearing the customer hat can be good exercise for identifying ways to tip the scales in your favour.

Good selling,
Richard

Thoughtful Thursdays - Feel like it is an uphill battle?

If you have never been faced with an uneven playing field, you must be new to the sales profession. We face the situation every day, your competition works hard to create it and it is your job to level it and then tip it in your favour

This competitive situation can be caused by any number of reasons and today's thoughts are about ascertaining them. Only when you know what is causes can you begin to mitigate them. Trying to level the field without knowing what is making it uneven in the first place can have negative consequences for your business.

Here are a some examples of what can contribute an uneven field.

• Customer service
• Terms and conditions of sale
• Comprehensive offering
• Price
• Availability of product
• Guarantees
• Warranties
• Response time
• Product quality
• History
• Reputation
• Relationship

As a sales professional it is your task to assess the situation and develop the correct strategy to make the field level. The most common reaction when encountering and objection is to counter with a price concession. This can also be the most dangerous - not only to your business, but to the market you are participating in as well.

It is important to know what you are up against before choosing your tools. In my experience there are few objections that can not be overcome. It comes down to whether or not you are prepared to do what needs to be done. In come cases it is better to walk away and go on to the next opportunity. You are not going to win them all.

Whatever action you decide on, be sure to have all the information first. Talk to the righr people and ask questions that will get you the information you need to know.

Next week: Tipping the scales it your favour.

Good selling,
Richard

Lest we forget

In Flanders fields the poppies blow

Between the crosses, row on row
That mark our place; and in the sky
The larks, still bravely singing, fly
Scarce heard amid the guns below.

We are the Dead. Short days ago
We lived, felt dawn, saw sunset glow,
Loved and were loved, and now we lie
In Flanders fields.

Take up our quarrel with the foe:
To you from failing hands we throw
The torch; be yours to hold it high.
If ye break faith with us who die
We shall not sleep, though poppies grow
In Flanders fields.

Thoughtful Thursdays - Is knowing customer needs enough to make the sale?

Every good sales person will tell you that one of the keys to success is to correctly identify the needs of the customer. They will go on further to say that the skill set required includes the ability to pose the right questions and to listen carefully to what the customer is telling you.

These are all characteristics of a good sales person. A great sales person will add one more skill and this is the subject of today's thought.

Is it enough to nail the needs and offer solutions to meet them? Can you do more to make it easier for your customer to choose your business as their supplier?

Do you know why your customers think they need what they say they need? You can gain great insight into the real benefits they will realize by having a clear understanding of the reasons these needs have been identified. Once you quantify the benefits, you will have a more compelling story to tell and make it easier for the customer to say "yes".

Taking the time to fully understand the needs and resulting benefits of meeting them can result in a shorter sales cycle.

Good selling,
Richard

Thoughtful Thursdays - Get it in writing

Today's thought stems from working with business owners who are also new to business and one of the avoidable issues that arises with more regularity than one might think - getting paid on time

A business infrastructure detail that is often left on the back burner by small and micro business owners is Terms and Conditions of Sale. In the excitement of getting orders followed by operational demands required to fulfill those orders, the finance manger's hat is often left alone on the rack, and does not get dusted off until suppliers begin demanding payment and you find yourself having trouble collecting receivables.

It can be difficult even when all the documentation is in place, but without signed sales agreements or contracts the task of collecting what is owed can take months or even years.

Before you go through the list of convenient reasons for not using agreements or contracts such as:

• We don't need a contract, I know them
• I don't want to risk losing the customer with extra paper work
• Legal fees to draw up documents are too high
• A handshake is good enough for me
• We understand each other
• I trust them

Think about how much it might cost you if you do not have documentation in place. Is it worth the risk?

Good selling,
Richard

Thoughtful Thursdays - Stuck with entry level pricing?

Many new business owners are so anxious to make sales they set aside sound business management practices and sacrifice price for revenue. In some cases the need for cash flow is a driver, in others it may be thought that the a price concession will be a strategically wise decision. Whatever the reason for the concession,eventually you want to quickly get prices up or the consequences may be less than desirable.

I was very pleased to hear recently that a client of mine successfully increased prices. They overcame the fear of losing the customer and proposed a plan to ramp up prices over a reasonable period of time and the proposal was accepted. If this sounds too good to be true, it may have been if they had not first planned their strategy objective and tactics for the increase.

First and foremost was the task of reviewing their operations processes and determining the true cost of delivering the products and services. As is the case with most micro businesses, the owner/operator is responsible for many of the process steps, What is important is to assign responsibility for each step from the business owner's point of view. The step may be an administrative function, research, contracted help or any number of job descriptions. Once the responsibility is assigned. cost out each step based on the going rate for each of those functions.

When it is all added up, a more accurate cost is determined. Applying the appropriate mark-up gets you to the new selling price.

When one is able back up the reasons for a price increase the easier it is to implement. Knowing your cost of operations is the first step.

The worst case is that you may lose the customer, but if it is not profitable, is it really a loss? The best case that the customer sees the value in dealing with with you, remains loyal and your business is profitable.

Don't fear the challenge of increasing prices when your costs go up, be energized and rise to it. Your business is depending on it to survive.

Good selling,

Richard

Thoughtful Thursdays - Social media and customer service

Do you know what is being said about you online? I had an experience last week that I felt needed to be addressed and did not know exactly how to reach the right person - the who would care and be in a position to take action.

I have heard and read of several instances where people have been at their wits end when it comes to customer service only to be rewarded by using social media a the venue to express their dissatisfaction.

I am not sure of the numbers,but am inclined to believe that most large firms are tracking what is being said about their companies online. It makes good sense to to do it and better sense to have a team in place to address the complaints as they come up. We all know how fast news of a bad experience can travel, but do we really understand the sheer volume of people it can reach so quickly.

I had the good fortune to attend the home opening game of the Toronto Maple Leafs last week. In past seasons there was a team of ushers in place at each entrance to the arena seats. In  many cases the teams had been in place for years and knew the regulars my face if not by name as well. Part of their function is to keep people from entering the arena area while play is going on and guiding them to their seats if they do not know where they are located. They would also know if people were in the incorrect seats and quickly rectify the situation.

For what ever reason, this particular evening, their did not seem to be anyone in charge of the entrance. There was an usher present, but the level of service offered was obviously lacking. It was only a matter if time before people were entering the seating area while play was going on and adding to the congestion, they did not know where they were going. The long and short of was that people had to stand while other were finding their seats and in on instance, seats were already occupied. The end result is that sight lines are blocked for unreasonable lengths of time, making for a less than enjoyable experience.

I decided to voice my disatisfaction on a social media venue using the appropriate has tags and wondered if anything wouldcome of it. Two days later I recevied an email asking for some clarificaiton about my experience.

Here is the end result:
"... The manager of event personnel will actually be sharing your case at our ushers’ pre-shift meeting on Saturday and it will be a teaching point for our entire team about maintaining a winning experience for our fans going forward..."

As a customer, I am pleased with the outcome. As a sales professional I am encouraged to know that responsive customer service remains important.

Social media is one way you might be able to access the people you need to, if you use the right approach.

Putting the show on the other foot, is also a way for your customers to access you.
Good selling
Richard

Thoughtful Thursdays - Simply put...

Sometimes there is no reason to use different words to say what has been said before, because it just does not add value to the statement.

Today's thought is concise and to the point. Reading and reflecting on it may cause you to review on your sales approach.

"If you can't explain it simply, you don't understand it well enough."

Albert Einstein

Good selling,

Richard

Thoughtful Thursdays - The unhappy customer

You have probably found yourself in the unfortunate position of being the unhappy customer from time to time. If the degree of dissatisfaction was high enough you probably asked your supplier to resolve the situation. Do you recall how you were taken care of? If you are still dealing with that business, the resolution must have been more than satisfactory.

If you are still purchasing from that same supplier, they are to be congratulated for retaining your business.

Thinking back to that situation, how did your supplier react? If you put the show on the other foot, would you be as successful resolving the situation when one of your customers is not happy with you?

Here are a few tips that may be helpful when you encounter an unhappy customer.

1. Listen to them and be interested in what they are saying.
2. Do not interrupt, let them say what is on there mind.
3. Be sure they are finished before you respond.
4. Be empathetic, recall how you felt when you were the unhappy customer.
5. Do not take a defensive position when responding.
6. Try to quantify their loss.
7. Understand their position, and ask how the situation might be rectified.
8. Worth repeating is to listen and not interrupt.

Do not fear the unhappy customer. View it as an opportunity to review your processes with the end result being better service for all your customers. Be sure they know that as a result of bringing the situation to light, all your customers will benefit.

The unhappy customer is not the end of the world and does not mean you will loose them. In fact, depending on the way you handle the situation it might solidify your relationship with them.

Good selling,
Richard

Thoughtful Thursdays - There is nothing like a happy customer, why are they so happy?

Not many people that I know or talk to do not want their customers to be happy. Given the opportunity, happy customers will more than likely buy from you again and refer new business your way. There are numerous reasons to keep your customers happy.

 

Having said that, it seems to be difficult for some businesses to make the experience of buying from them enjoyable. While unavoidable things do happen and it is impossible to keep everyone happy, many poor buying experiences could have been prevented with some forethought.

 

Take yourself for example. Do you have a favourite restaurant you keep going back to? How about a mechanic or dealership you have been dealing with for years. Maybe it is a golf course, or retail store you frequent. I think everyone has their 'own' hair stylist. Make a list of the businesses or people you purchase from on a regular basis. Add to that list the reasons why you patronize them.

• They treat me like they care
• They are always smiling and pleasant
• They are knowledgeable
• I trust them
• They listen and don't try to sell me something I do not want, they make recommendations based on my needs
• They are not pushy
• They are accommodate my schedule where possible
• They make me feel comfortable
• They make so convenient to say yes
• I get a lot for my dollar
• I like them

Now consider your day to day sales interactions with your customers and prospects. Have you forgotten or taken for granted any of the reasons that affect your buying decisions?

Good selling,

Richard

Thoughtful Thursdays - Stay the course

Today's thought goes out to the entrepreneurs in the throws of launching their business ideas. A subject that often comes up in meetings with new business owners is the feeling of being overwhelmed and not being able to get everything on the to do list completed.

There are many good books on the subject of getting things done including the book by that same name by David Allen.

One of the keys to successfully tackling the to do list is scheduling and sticking to that schedule. Every time your schedule changes, there is a chance that some tasks will get moved out. Be mindful of the consequences when you do make changes and accept them. Life happens and delays are often unavoidable.

Something that works for me is to check my schedule every day before I do anything else. Confirming what has been already been planned helps prevent the addition of tasks when there is no time available. Another practice is to resist changing the schedule once it is in place, especially if you are in the middle of doing something that was planned.

These days you can spend a great deal of time processing email. When I receive an email I do one of three things with it.

1. Delete it because it does not concern me
2. Respond immediately
3. If if can wait or something has to be done before responding, schedule the time in my calendar for the necessary work.

Minimizing the number of  messages in your inbox is a one way to help reduce the stressors that can contribute to the feeling of being overwhelmed.

Good selling,
Richard

Thoughtful Thursdays - Value selling, quantifying the benefits

You have examined the features of your products/services and defined the benefits. The thought for today is to take the process one step further and quantify the benefits you have worked so hard to identify.

I have not yet run across a benefit that could not be quantified in dollars. Doing the arithmetic is another way to make it easier for your customer to say yes.

Does your product save time, increase productivity, reduce down time or cost less?

Being able to quantify the benefits requires research and is often a subject does not always come up in the first meeting. You will need to ask your customer questions to correctly convert the benefits to a realistic dollar value.

• If your benefits relate to time saving, hourly costs X the time saved equals a dollar benefit.
• Productivity could mean making more units per hour, thereby reducing costs
• Productivity could also mean reducing time consuming activities, again time X costs of that time equals a dollar benefit
• Downtime is expensive. If your product/service can eliminate down time, the dollar benefit is equal to the cost of down time X the down time eliminated

Take the time to do the research and calculate the dollars that your business will add to your customers bottom line. The sooner you can quantify the benefits, the sooner the sale will close.

Good selling,
Richard

Thoughtful Thursdays - Relevant information adds value

You know that following up with your customers is important. Have you ever found yourself in the situation where you just do not know what to say beyond what you have already said and consequently avoided making the call?

You do not want to be a pest and reiterate what has already been stated and understood, but you do want to stay top of mind with your customer.

Maintaining contact without being a pest can be a challenge. One way to look at the task is to always be mindful of adding value when communicating. Relevant information is valuable and if you become a know source for reliable information it can work in your favour.

Communicate information your customer will be interested in. This could be industry news or information about their target markets. Do not assume they see everything  that is published. One way to source this type of information is to set up a Google alerts that come into your mailbox. Social media is another way to keep your finger on the pulse of an industry. Follow credible tweeters, join and participate in Linkedin groups that have relevance to your business.

This kind of information is often appreciated and will help keep you top of mind with your customer.

Good selling,
Richard

Thoughtful Thiursdays - Back to basics

Today's thought is a simple one, getting back to the basics of sales. Here are a few pointers you may find helpful.

• Dress appropriately
• Know what makes your product/service different
• Prepare for every call
• Arrive a few minutes early
• Bring a great attitude
• Know what you are going to say
• Listen more than you speak
• Thank your customer for their time
• Never conclude your call without knowing when the next contact is going to take place
• Complete your call report and analysis of the call when it is fresh in your mind - do it right after you leave the customer.
• Follow up
• Follow up
• Follow up
• Make your process routine

Good selling,
Richard

Thoughtful Thursdays - How's the bottom line?

Over the years I have witnessed apparently successful businesses exit the market place. Many reasons are given, but in the end, if it was not a planned exit, it came down to insufficient cash resources to run the business.

Today's thought is about maintaining margins as costs continue to rise.

Continued non-response to increasing costs will put the profitability of your business at risk. Small business owners often absorb increases for fear of loosing their customers if they raise prices. If the market is unwilling to accept a price increase, then the business must find a way to reduce their costs.

A thorough examination of operations including mapping of all processes will provide a good indication of where improvements might be implemented, the result being in cost reduction. This should be done on an ongoing basis to keep costs under control. Owner operated businesses are often so busy managing day to day activities, this type of exercise pushed aside.

Do not use the excuse of "We might loose the customer if we raise our prices" to avoid taking the time to accurately nail down your costs, do your homework. Recall how hard you worked to get your customers. Reinforce the value of doing business with you and if a price increase is justified the chances of successfully implementing it will be greatly increased.

Reduced profit margins are every business owner's concern.

Good selling,

Richard

Thoughtful Thursdays - Learn from the people you buy from

I would be willing to bet you have a list of product or service providers you prefer to do business with.

Maybe it is the favourite restaurant you frequent and no matter hwo many times you read the menu, you end up ordering "the usual". Your server may already know you and ask if you if want "the usual".

It could also the service station you have to drive a bit further to get to now, but you always go there when your car is in need of service.

How about the hair stylist you have followed from salon to salon over the years?

The list goes on...

Today, think about why you continue to take your business to these businesses and list the reasons. Review the list and ask yourself if your customers feel the same way about you.
You can learn a lot from the people you buy from.

Good selling,
Richard

Thoughtful Thursdays - Sharing experiences

I had the pleasure of moderating an entrepreneur panel this week for group of people preparing to launch their business ideas.

The panel was comprised of three business owners from diverse backgrounds. Their businesses represented products, services and a combination of both. The length of time since start up ranged from five to seven years.

Although the businesses were different and the backgrounds of the owners diverse, it quickly became clear they shared many points of view. I want to share a few of these thoughts today.

• Listen to the people you are talking to
• Reduce the stressors
• Be mindful, but do not let what is worrying you, stop you
• Focus on the positive and feed from that energy, not what comes from the negative
• Get over your mistakes quickly and learn from them
• When working from a home based office find a way to disengage from work - clear your mind of the distractions
• Pay attention to proper nutrition and exercise
• Create structure and routines and follow them - BE ORGANIZED!
• Join industry-based associations
• Give back selectively, volunteer where it makes sense
• Train your customers to the way you do business
• Deliver on your commitments
• Review your business plan once a year and set annual goals
• Be aware your cash position - monitor what is coming in and going out
• Know what your value proposition is and communicate it - stand out in your field
• Celebrate your successes
• Know yourself - strengths and weaknesses
• Don't think you have to or need to do it all yourself, ask for help - it is out there if you look for it

I want to thank the panelists for generously donating their time and sharing personal experiences with a group of eager new business owners.

Lara Bazant - Bazant Unique Adornments
Clare Kumar - Streamlife
Luigi Benetton - Luigi Benetton Communications

Good selling,
Richard

Thoughtful Thursdays - Be a better listener

Being a good listener is a characteristic demonstrated by successful people in every walk of life and sales is no exception. You can become a better listener by putting into practice a few simple thoughts.

•  Focus on the speaker
• Avoid distractions - turn cell phones off, do not incoming take calls, stay on topic, tune out the noise
• Make eye contact
• Acknowledge and empathize
• Do not interrupt
• Be interested and learn
• A bit of silence is okay

A lot of the selling process is about asking, when you ask a question have the courtesy of listening to the response and hearing what your customer or prospect is saying. Assessing the situation and determining needs is facilitated by being a good listener.

It sounds easy, it may take longer than you think to improve your skills. The improvement in the quality of your conversations will be noticeable with the increased information that becomes available to you. Being a better listener pays off in the long run.

It has been said may times before: You have two eyes, two ears and one mouth. Use them in similar proportions.

Good selling,
Richard

Thoughtful Thursdays - Using objections to your advantage

Past Thoughtful Thursdays have talked about handling common objections and using them to grow your business.

Today's thought describes another way to approach common objections.

Once you have identified the objections that are indeed common in your sales experiences, you will undoubtedly have responses at the ready.

Instead of waiting for the objection from your prospect, try bringing it up yourself. For example: "Many people have felt that the cost of this product is prohibitive, and on the surface that may appear to be true. Allow to me explain how you can save in the by using this product." (advance preparation will allow you to back up your claim)

You can mitigate the chances of encountering many insincere objections by eliminating them before they have the opportunity to surface.

Good selling,
Richard

Thoughtful Thursdays - Commit to do instead of hope to do



The other day I overheard a sales representative on the their telephone say: "I was hoping to get back to you in a day or two with the information."

I could not help but wonder how the person at the other end of the conversation felt about this response. Would it have a negative effect on any future dealings, or in the worst case prevent a sale from taking place?

I do not like to leave the matter of getting back to a customer to hoping. "In a day or two" also makes me cringe a bit. It leaves one open to a range of expectations that is avoidable.

A different approach might go something like this: I expect to have that information in two days and will follow up with you by Thursday. (If the conversation took place on Tuesday) Will that be satisfactory?

I have found that by taking the approach of offering a time line that meets my own requirements is acceptable in the majority of cases. If it is not, the customer will tell me and an action plan to accelerate the process will result.

Make your commitment specific and remember to confirm that it is acceptable.

Good selling,
Richard

Richard

Thoughtful Thursdays - Are we clear?

We spend a lot of time crafting the right message to present to potential customers and communicate the value proposition that will ultimately result in a sale.

We even work on our voice mail messages and techniques to maintain continuity of the information we want to communicate and the way that to best articulate it.

One area that is often forgotten, especially by new owner operated businesses is the telephone greeting. How do you answer the telephone? Do you say who you are, or just hello? If you are working from a home office, are there distracting noises in the background? If you are not able to answer the telephone, is it clear to the caller that they have reached the right number?

Do you realize how annoying it can be to compete with a dog barking or street noise or a baby fussing while trying to talk to someone? These are a good ways to lengthen your sales cycle or worse, stop it before it even gets started.

In my experience nothing can turn off a potential customer faster than thinking they have not reached a business. A home based business is still a business, so treat it that way. Have a dedicated business line to keep personal and business calls separate.

Today's thought is to be mindful of your telephone greeting. If the environment you are in is noisy, do not answer the telephone. Check for a message and call back when there are no distractions. Script your telephone voice mail greeting and be sure it includes relevant information such as your name and business hours. If English is not your first language, consider getting someone to record the greeting for you.

Good selling,
Richard

Thoughtful Thursdays - We have no competitors... are you absoultely sure?

Last week a business owner to be told me that their research indicated they had no competitors. DOH! I must admit that this was not the first time I have heard such a claim nor do I believe it will be the last.

I congratulated him on his findings and said that if his findings are true, he may want to conduct further research for the following reasons:

1) If no one else is doing it, is there a reason? Does a market actually exist for the proposed products/services?

2) Are the proposed products/services being offered in other ways? For example, are they part of a larger offering being made by others? Are they hidden?

3) Consider indirect competition - who else is competing for the same dollar? Do not be mislead to believe that movie theatres are not competing with sports teams. The product is different but they are both pursuing dollars spent on entertainment.

In my experience it is exceptionally rare for a business to have no competition. There are certainly unique products in the market place, but in most cases there are also alternatives that will satisfy the needs of the purchaser.

The point of today's thought is to continue to ask "Why?" and to think beyond your specific product/service offering to what else currently satisfies the need that has been identified.

Good selling,
Richard

Thoughtful Thursdays - Don't bore me with the details

There are lot of benefits to be realized by noticing the "little" things during a sales call. The major benefit being the shortening of the sales cycle.

The "little" things I am referring to relate may help reveal the personality of your contact. The value of knowing your audience is undeniable. The ability to assess and adjust your approach is a competency that develops over a period of time and increases with experience.

So, what might you be observing while listening?

• Is the office neat or does it appear to be in disarray?
• How is the customer dressed?
• What is hanging on the walls?
• Are there family pictures?
• Is there note taking?
• Does your customer keep looking at the time?
• Eye contact?
• Are there interruptions?
• On time, or do you have to wait?

These kinds of observations will help you determine who your audience is. With that knowledge you can adjust your approach to match their personality. There is more value focusing on numbers and details with an analytical personality, where the intuitive type may be more interested in the theory.

Remember the formula: Two eyes, two ears and one mouth, use them in the same proportions to your advantage.

Good selling,
Richard

Thoughtful Thursdays - It's all about helping

Dealing with an unhappy customer is something every sales person will face from time to time and can bring feelings of apprehension to the most seasoned professional.
Lets face it, eventually something will go wrong and just as you are well prepared to address objections to sales, you will do well to be mindful of times when all does not go to plan.
Fears can develop when we begin to think about worst case scenarios. Not that it is not a good idea to be mindful of the worst that might happen, but don't put yourself there until all the facts are gathered. Arthur Conan Doyle said: "It is a capital mistake to theorize before one has data. Sensibly one begins to twist facts to suit theories, instead of theories to suit facts."

The fact is that your customer is unhappy and it is your responsibility to find out why. It is an opportunity to help someone who is in need of your assistance. Think in terms of helping and the task will become easier to accomplish. Employ your best sales tactics - listen and learn before offering any solutions. Be prepared to listen for quite a while as well.

One more suggestion: Contact your customer in real time. That means in person or by telephone, not email or similar. Personal service is the order of the day.

Good selling,
Richard

Thoughtful Thursdays - Starting a business is a full time job

If you are the owner/operator of the business, it might be said that it is more like having several full time jobs. The responsibilities range from setting company values to taking out the trash and everything in between.

It should come as no surprise that time is one, if not the most valuable resource you have. Having said that, it is also one that is most misused. How times have you heard that something did not get done because "I just didn't have the time" or "I ran out of time" or I was too busy" or ...you get the idea.

Many start-ups today are home based micro-businesses. Cash resources are often tight and cash flow management is critical. Once a plan is developed, the priority is to generate profitable sales revenues as quickly as possible.

Here is a short  list of common barriers to making sales many new entrepreneurs encounter:

• Building their own website
• Designing their own promotional material
• Non-business related activities
• Doing laundry
• Taking care of the kids
• Shopping
• Yard work
• Running errands for others
• Conducting unnecessary research
• Not working instead of networking
• Waiting for phone calls

These are activities that take a sales person off the road.

A few good questions to ask yourself before engaging in any activity, is one that a manager might ask: "How will this contribute to achieving sales?" If the activity will not, then are you willing to accept the consequence of not making sales as quickly as needed.? Can your business afford this?

To be successful your business needs you to be all in. If you are not for any reason, then your expectations may need to be reviewed.

Good selling,
Richard

Thoughtful Thursdays - Prospecting

Closing that first new, new customer is a challenging task, yet one of the most rewarding closes a new business owner can make. This is a customer that does not come from a referral or previous business relationship. It is new business developed from a new prospect identified from scratch.

Today's thought is about identifying those prospects in a timely manner.

Networking is a powerful tool that can generate many new prospects. Business directories, industry databases and trade associations are also good sources for identifying prospects. In my experience, it is a combination of resources that leads to successful prospecting.

A colleague of mine provides good advice when he says "Don't go looking for the needle until you identify the correct haystack."

If you are experiencing challenges prospecting, you may not be searching in the correct haystack. If this is the case, revisiting your market research will likely be a beneficial. Does the target market identified represent the people/businesses that are most likely going to want to purchase your products/services? If not, further research will help bring clarity.

If the target market is correct, are you prospecting in the venues where they are most likely to be found? Networking quickly turns into not working if this is the case. Review your activities and confirm  that you are in the right places on a regular basis.

Good selling,
Richard

Thoughtful Thursdays - Damage control

Once in a while best laid plans go off the rails. In a worst case scenario the reputation of your business can be damaged and image re-building is the order of the day.

A recent group discussion based on an Moneyville article brought to light a situation where a business appears to be experiencing a loss of customer confidence.

Without knowing all the details, it looks like a promotion may not have considered the possibility of success beyond expectations, and as a result there are unhappy customers.

Today's thought focuses on how one might initiate damage control when something like this happens.

Although it may seem to be a good time to panic, don't. Many companies have experienced similar consequences of actions and survived to talk about it. In several cases they have come out of these situations with stronger customer confidence.

Being honest with your customer is the common theme in turning bad into good. Do your homework, assess the situation and tell them how you plan to fix it. Clearly communicate the action plan to your employees and then tell your customers. Don't keep anyone guessing. The success of repairing any damage will rest on the precise execution of the plan, so be involved and measure the results. Talk to your customers, be prepared to listen and show that you care.

Next week - how to avoid getting into this kind of situation.

Good selling,
Richard

Thoughtful Thursdays - A few words on personal selling

What are the characteristics of a successful sales person? Recall a buying experience where you had a choice of vendors to choose from and think about why you chose that person. I begin many sales sessions by posing this question to the group and create a list. The following are common characteristics:

• Knowledgeable
• Trustworthy
• Not too pushy
• Attentive
• Asks relevant questions
• Helpful
• Doesn't try to sell me something I don't need
• Truthful

I have had input from sufficient people to have a good sample size. What these lists tell me is that people generally agree on the characteristics a sale person they choose to deal with will possess.

After the list is created I ask one more question: "Are these characteristics that your friends demonstrate?"

All things being equal, people like to deal with people they like - go figure.

Do not underestimate the importance of relationship in your business dealings or the time it takes to develop this relationship. How long does it take you to make a new friend who you trust?

Good selling,
Richard

Thoughtful Thursdays - I can't take your call...

 

... personally right now, please leave a detailed message...

Voice mail, how do you handle it? Some tell me they never leave messages, others always do.

 

I always leave a voice message when given the opportunity. It is part of my overall sales process. In fact I also have a script prepared to remind me what to include in the message. I will also practice the message, there is nothing more annoying to me than listening to an unorganized rambling, unintelligible message, and I have to believe there are others that feel the same way.

 

Here are some suggestions for what to include in any message you leave:

• Who you are
• Your name and company name
• Who referred you (if applicable)
• Why you are calling
• Be clear and concise
• Call to action
• When you will call back

You want to be able to communicate this information in less than 30 seconds. That does not mean a one minute message jammed into 30 seconds. I do not set the expectation of receiving a return call, so I will always indicate when I will be calling back if my prospect does not have the opportunity to do so.

I believe that leaving a voice message is an opportunity to communicate with a prospect that is missed by many sales people. It establishes a reference point to measure your sales process on and allows you to plan your next actions so you can get on to the next call.

Good selling,

Richard

Thoughtful Thursdays - Yes, we do use that product/service...

...but I must tell you that we have a supplier we are quite happy with. I have your card and will call you if anything comes up.

Do you say "Thank you for your time." and leave or is there another way to approach this? Most importantly, are you prepared to handle this objection?

When I encounter this kind of objection, my immediate thought is "Game on", and what do I need to do to get the prospect to listen to me? I appreciate that they will get back to me if "anything comes up", but I certainly do not expect them to do so without having a good reason.
Today's sales thought is about providing that good reason for your prospect to contact you when something does come up.

• Ask if they would consider having an alternate source
• Have a follow up strategy to make sure you are not forgotten and execute it
• Prepare for a longer sales cycle - persistence is key
• Clearly demonstrate the value in considering you as a supplier
• Become knowledgeable about the prospects industry
• Challenge yourself to connect with the prospect on a regular basis
• Communicate your competitive advantage 

Good selling,
Richard

P.S. Did anyone else loose posts this week due to the day long Blogger outage? I thank my RSS feed for providing copy and enabling this re-post.

Thoughtful Thursdays - Dealing with the "but"

Thank you for presenting your proposal earlier this week. We like what you are offering, but we just can't afford to pay that much. There is a competitive situation we must consider. Is there anything you can do about your price?

Okay star, how will you handle this common objection? Are you prepared to respond? The way this is handled may make or break the deal.

Today's thought may provide you a few ideas on how to handle this kind of objection. Let's assume that your research is sound. You have correctly identified the needs and proposed your best solution. There is not much wiggle room with price and you are not prepared to just drop price to get the order unless absolutely necessary. There may be some points that need clarification.

• Is the customer making a fair product/service comparison with the competition?
• How far apart are the prices and what is the total impact over the entire order?
• If you are the incumbent, has the customer considered all the costs of changing suppliers?
• If you are not the incumbent, have you considered the cost to your customer of changing suppliers?
• Can you make up the price gap with value added services other than price of your product/service? Examples include improvement of cash flow or inventory planning.
• Is the lifetime value of the customer significant? Are they strategically significance to the long term goals of your business?

You are looking for ways to establish value that do not directly impact your proposed price. It may not always possible. By exploring all possibilities you are likely to secure a higher percentage of your business at the prices you want.

Good selling,
Richard

Thoughtful Thursdays - Ten plus one sales thoughts

1) Always know the reason why you are calling

2) Set objectives for every call

3) Prepare your questions to address your objectives before the meeting

4) Take notes

5) Listen more than you talk

6) Listen more than you talk

7) Create an action plan with your customer for the next meeting

8) Set up the next meeting before you conclude the current meeting

9) Thank your customer for their time

10) Review the results - did you meet your objectives? If not, determine why and get back on track

11) Confirm the outcomes with your customer

Good selling,

Richard

Thoughtful Thursdays -

A sure way to lengthen your sales cycle is to put off making your follow up calls. It is fitting that lengthening one thing can also shorten another. In this case you may be shortening the length of time you are employed or the the life of your business.

There are many good reasons for not following up. The most common excuses I hear include:

• They probably won't be in
• I don't want to bother them
• They won't be interested anyway
• Something else came up
• I'm going to do it tomorrow

I doubt any of these reasons would be acceptable for you business not compensating you for you, so don't expect your business to accept them for not doing what you need to do.

A great way to rid yourself of any doubts or reasons not to make those follow up calls is to make a habit of determining the when and how the follow up will take place before the end of every call you make.

Good selling,
Richard

Thoughtful Thursdays - We have it, loose it, regain it

It can come and go without notice. We research, analyze, plan and practise to build it. In what seems to be a blink of an eye it can be lost and once lost it can take a long time to regain it. Even the most experienced have lost it.

I have heard some say that successful people exude it, some quietly while others are more in your face with it.

You know when it is in the room and can also spot it from a distance. You have it too, we all have it at some level.

Today's thought is about confidence and how it relates to sales. It feels good when you go into a meeting or make a presentation with a high degree of confidence. In my experience, a large part of being confident is believing that you will be helping your customer and in turn what will be accomplished as a result and communicating with a positive attitude. A combination of experience, research and preparation will build that confidence.

What helps many is to anticipate objections and develop appropriate responses. Identify and be prepared to address questions you find challenging or fear. Doing some basic research can also help mitigate the fears you might have that might undermine your confidence. Know your audience and speak their language. If this information is not available, be prepared to address analytical as well as intuitive personalities.

Remember that you are helping, know the relevant benefits that your products and services bring to your customer. Articulate your competitive advantage and believe in it.

Confidence in what you do also builds with each time you do it. Not every call is going to be a gem and not all your prospects will be converted to customers. Learn quickly from mistakes and put practices into place that will insure they are not repeated. You can be confident that with appropriate forethought and consideration you will be successful a higher percentage of the time.

Good selling,
Richard

Thoughtful Thursdays - Please make it an enjoyable experience

I had an experience last week where a supplier tried to sell me package of services I did not need, resulting in a not so enjoyable experience that led to me driving for a harder deal than I was originally satisfied with.

A bit of background first. It is common knowledge that telecommunications companies are in an extremely competitive market place and variable pricing is commonly strategy. This means that there is often a better deal available to those who ask for it. Based on the services I currently subscribe to and packages available, I felt that I would able to save 15% to 20% a year.

I was ready to spend whatever time it took and speak to as many people as needed to get what I wanted. I was also prepared to move to a competitive supplier if necessary, although I preferred to stay with the incumbent supplier.

It started out pleasantly enough. We reviewed by current service and the representative came back with a recommendation that would net a savings in the range of 5%. Because I was expecting to save more, I questioned the package. They began to talk about all the additional services I would enjoy. Full stop... what additional services? When did I mention I wanted more? I did not even recall being asked.

Instead of backing off to confirm my needs, I was told that this was the best they could do. The experience was starting to go quickly down hill and I expressed my concerns about being sold what I did not need to have. My next conversation was one step up the ladder in responsibility. Once again it began well and once again they did not ask me what I really wanted, they made assumptions that should never be made by any sales representative. I admit that I did not offer an excess of information as I was testing their approach.

In the end I suggested to them what package would be best for me, and why; which services were best to keep and which ones could be taken off the list. I hope they listened and learned as much as I did from the experience.

The final solution was much better than I was expecting, but the fact is that I was would have settled much earlier for a higher price if they had only taken the time to ask the right questions and understand the answers. As a result, I am now be saving 30%.

They left tangible money on the table (an additional 10%). They needlessly spent extra time with me, when they could have been talking to another customer. So how much did it really cost them?

Today's thought: Make the buying experience enjoyable for your customers and the value of your product or service will increase.

Good selling,
Richard

P.S. Yes, I should have made this call a long time ago.

Thoughtful Thursdays - Making your sales job easier

Whether a seasoned veteran or rookie in the sales profession, thoughts will eventually come around finding ways to improve your sales process. How can I make it easier for the customer say yes?

Going through your sales tool kit, you find all the promotional materials you need including business cards, brochures, samples and price lists. You also have up to date scripts that reinforce the features and benefits of your product/service offering. You have anticipated objections and have solid responses to address them. Record keeping is meticulous and you always follow up. It looks like everything is in place for a success and you are successful. You just want to be better and are looking for another sales tool that will help you accomplish that goal.

One that is probably there, but sometimes overlooked is competitive advantage. Some will take it for granted, not be clear about what it is, or know it and forget to tell your customer.

As you are already successful, you must have an advantage over your competition, but are you able to articulate it to your customers? If you know what it is, do not forget to let them know.

If you are not sure what it is, take a look at the features and benefits of your product/service offering. Benefits can be determined by taking each feature and asking yourself "So what?"

You can identify or create your competitive advantage in a similar fashion. Look at your list of  features and benefits. Compare yourself to the competition. Are they talking about them? Are there any that you may be taking for granted that your competition is not talking about? You do not need to unique if you are the first to be speaking out.

In a competitive market place successful businesses look regularly for every advantage and sometimes it can be right under your nose. In my experience competitive advantage is best determined in a group environment. Brainstorm and put everything out there including features, benefits, customer feedback, and what you do best. Although it may be based on what you do or have done, it is about how you demonstrate it better than your competition for your customer's benefit. Once you have come up with your advantage, don't assume it is correct. Test it with your existing customers first, you may find it needs revision.

Quoting Jack Welch: "If you don't have a competitive advantage, don't compete."

Good selling,
Richard

Thoughtful Thursdays - Are you an 'X', or the in the business of 'X'?

A simple enough question, I had two meetings this week where the subject came up. The objection my clients were faced with was the perception that they were the business and therefore limited in what could be delivered.

In order to change that perception these business owners must clearly articulate to their customers that they are in business. I have seen this happen before and have the following suggestion to address the objection.

Focus on your business, the services that can be provided and the value in dealing with you. Increase the customers comfort level in choosing your business as the provider of choice. You represent the business, not the other way around.

Larger businesses have employees and many use sub-contractors on a routine basis. Your business is no different. You can not be an expert in every area, that is why you use outside support.

If freelancing is not where you want to be, put your business owner's hat on and be in business.

Good selling,
Richard

Thoughtful Thursdays - Breaking away...

... and I am not thinking about cycling.

Your first customers are not always, but in many cases, people you know or someone they know. Excellent outcomes as a result of networking and word of mouth. The business is up and running and off to a flying start. It does not get much better.

It is easy to get comfortable during this time, business is coming your way and it seems easy. Your customers are friendly and happy. It is a good feeling, not unlike being in bed on a cold winter day, toasty warm. It is so comfortable that you do not want to get out from under the covers.

Then something happens. Sales either flatten out or begin to decline. Your friends and friends of friends are tapped out, you have saturated the portion of your market that is your current network.

It is now time to make new friends. Breaking away and expanding your network is crucial to the long term health of your business. Time and time again new business owners are face with this. If your desire to achieve the vision you have for your business is not stronger than the fear of making the calls you need to, the consequences are easy to predict.

My suggestion is to take advantage of the good vibes and positive energy from the outset and do not wait for the lull. Begin to make the calls right away, build your contact list and continue to do it. The sales cycle for brand new customers is likely to be longer than with your current network. The sooner you begin, the greater the chances of mitigating any slow down in business.

Get out from under the covers, it is not as cold out there as you imagine.

Good selling,
Richard