Sales Laundry

Posts Tagged ‘solving client problems’

Q&A’s are excerpts of questions I have answered as part of Sales Laundry or other forums that I am apart of. If there is a relevant sales message for the masses I post it here to share, gather feedback and discuss.

Q: What do you do when your client tells you that your proposal is twice the price of your nearest competitor?  My client just called me and told me that my quote was 2X more expensive than the highest bid received from other companies.  What do I do next?

A: First, don’t panic.

At least your client is talking to you.  They could have just as easily thrown your proposal in the trash and never contacted you.

This could just be a ploy by your client to get you to lower your price or it could be a legitimate question about why your price is so high.  Either way, your next move is to contact the client as soon as possible.

Your client is theoretically trying to make the best decision possible for their business and that is how you should approach this problem as well.  Be a resource to truly help them figure out the best course of action.

If your price is 2X your nearest competitor, either:

A.  You misunderstood the requirements.
B.  Everyone misunderstood the requirements except you.
C.  You are offering something of additional value that your competitors are not offering.
D.  You are priced too high for your market.

If you have a great relationship with your client, I would ask to meet with them and help them compare the competitors proposal to your own to make sure it is a fair comparison.

I would do the following:

1.  Review the specific issues that the client said was important to have addressed in the proposal.  If you can get the client to rank the issues in order of importance, that would be even better. (See point #8.)

Doing this exercise should tell you if you and your client are in agreement on what all of their issues are that should be addressed in the proposal and help you identify if the problem with your client is A, B or C above.

2.  If you have a unique service or offering that would be of value to your client that your competitor is not capable of matching, you can try to get that service included on the “important issues to address” list, though you should have done this the first time around.  I would just say make sure you keep your clients best interests in mind when making this decision.

3.  Once you are certain you and your client are in agreement on what issues need to be addressed in the proposal, ask to review the quotes.

4.  Compare your quote and the competitors quote to the ranked list of issues and point out the specific spots where the proposals differ from each other or the list.

5. If you have addressed issues in your proposal not on the list or that the client does not want it is up to you to offer to remove the item or convince the client that they need it and to pay the additional cost associated with it.

6. If your proposal has addressed everything on the list, but your competitors proposal has not, ask the client if the item the competitor left off is important.  If it is important, the competitor needs to add it, if it is not truly important, take that item off your proposal and adjust the price accordingly.

7.  If your competitor has offered a very low price to get the business that you do not think they can honor, explain your concern to the customer and offer a fixed price or a guarantee to meet the price you quoted to eliminate the advantage such a tactic might give your competitor.

8.  If the client did rank their issues in order of importance and price seems to be their ultimate concern, you might offer to remove the lowest ranking issues from the proposal and reduce your price accordingly.

9.  OPTION: Offer up a discount/rebate or refund if you are wrong.  You could offer to charge a lower rate if your actual costs are lower than what you are predicting in your proposal.

Good luck!

How many hours each year do we keep new sales representatives cooped up in a room somewhere loading their minds with product information?

 Probably too many.

 The better question is how much time is spent teaching new sales representatives how to use that product knowledge?

 Would you like to field “smarter” sales representatives and help the middle 60% of your sales force close more opportunities?

 Then we need to look at how we build actionable product knowledge into our sales representatives in our efforts to get them ready for the field.

 Having sales minds loaded with product knowledge, in and of itself benefits no one, not even the “loaded” sales representatives.  It is in fact, a cost.  It is in the application of product knowledge to customer problems that value is realized for the owner, sales manager, sales representative and customer alike.

 In practical application, we have to load sales minds with product information, but we should spend at least an equal amount of time, if not twice that, training them how to wield the new weapon they have been given.

 

Moving From Product Knowledge to Actionable Product Knowledge

 Put your new sales representatives and the “middle 60%” of your existing sales representatives in role playing situations that force them to ask questions, a lot of questions, to uncover what issues a client might be facing.  Help them shape their questions and truly understand both the answers and the ramifications of those answers they get back.  Teach them questions that have answers tied to your products features.  Educate them with questions that will uncover problems the majority of your prospects have in common.  Teach them the questions that will help them locate problems your product solves that your competitor’s cannot.  Teach them the questions to ask when you are at a competitive disadvantage.

 

 Begin by teaching them a product feature, then teach the problems solved by that feature, and finally teach them the questions to ask to uncover those problems, if they exist, in your prospect’s business.

 Once the questions have been asked an equally important step is what to do with the valuable answers provided.  Show the sales representatives how to turn those answers and the problems those answers uncovered, into creative solutions built with your products and services with role play.  In the advanced form of this training, add time, budget, and political constraints they have to work around.

 Write case studies on your past performance, good and bad if you can stomach it, to help your sales representatives see real problems your company has identified and real solutions you have developed in the past.

 To keep your training relevant, have your new sales people travel with your Top 20% on new sales calls with the express objective of writing down questions they hear and the answers provided.  Review the trainee’s notes with the sales veteran’s perspective to make sure the new sales rep understood the conversation and was able to accurately translate what he heard.  Incorporate anything new and fresh into the ongoing training program.

 There is no value in being a talking brochure.  That ship has sailed.  No one cares what your product can do; they only care what your product can do for them.  Talking about features and benefits with a prospect just comes across as noise if the features/benefits are not relevant to his situation.  Smart questions bring clarity.  Clarity allows for accurate custom tailored solutions designed to solve specific client problems and answer the biggest unspoken question your buyer has, “What’s in it for me?”

Image courtesy of http://www.craigharper.com.au

Remember when you only had to find and fill a Need to get a sale?

 Remember the good ol’ days when the sun was shining and everyone including our clients were augmenting their budgets with bags full of cash that randomly fell out of the backs of garbage trucks, freely spending bucket loads of money on big, medium and small needs alike? 

Me either, but don’t tell the new guys.

Today, clients aren’t spending their money so freely and sales are down, but the good news is we are saving a lot of money on printer ink because these forecasts are just so much shorter.  Apparently the majority of our clients do not have any needs that need filling right now, so what is an enterprising Sales Representative to do?

 Stop looking for needs.  Start looking for agony with flaming critical, heart ripping consequences.

 Corporations are the legal equivalent of people, so if it helps, look at them that way to get a better understanding of how to approach them.  Think “injury” here.  

You can live without a Band-Aid, it may not be as neat and tidy, but you can live.  Think bigger.  Start looking for companies in Intensive Care Units, needing your product in order to survive.  Those needs will get addressed, because if they don’t fix them, they die or face catastrophic game changing consequences.

 “But Val, I sell fly swatters, if they don’t buy my product the worst thing that happens is there are a few more flies buzzing around, how does that help me?”

 Maybe you change your message from “Get rid of an annoying pest” to “Avoid diseases that flies transfer from dung heaps and decaying matter to your food that can lead to kidney failure in young children, seizures in toddlers, or in some cases, death*.”

 If your customer’s are not buying, it is because the need your product is filling is not a real or percieved priority right now.  Change the priority, change their perception, find a client with a bigger need you can fill, or find something else to sell.    

Want another example?  Look at what Kellogg is doing to reposition Mini-Wheats.

If you are stuck and can’t think of any deeper problems, add a comment and I will give you my best ideas, otherwise watch for a post in the near future that will detail a step by step process to help you find those deeper problems.   

 

*I am not making this stuff up.  Read Diseases from House Flies.

 

part⋅ner [pahrt-ner] –noun   1. what every book on sales says a salesperson or business owner should become in order to be successful and make cow choking quantities of money that one could not hide under a house, let alone a mattress.

 Webster’s Dictionary would define the word partner a little differently, I am certain, but we are not talking about the dictionary for normal people, we are talking about the Zigler-Hill Unabridged Dictionary for Sales Professionals & Business Owners.

 

What is a Partner? 

A partner is a trusted resource that can be counted on to assist on an as needed basis in a mutually beneficial, but not necessarily equal, relationship.  We help solve our client’s problems with our expertise and they help solve some of our problems with cash.

None of us are experts on everything we have to make decisions on in our daily lives.  We need partners, advisors, parents, attorneys, accountants, carpet cleaners, plumbers, electricians, cable guys etc. to help us make good decisions and keep our lives running.

By saying you want to be a partner you are saying you want to occupy that small slice of someone else’s life that you happen to be an expert in.  There are only so many available slots so how do you get to be that guy?

 

How do you become a Partner?  Here are eight thoughts to get you started.

• Acquire knowledge that your client needs but does not have the time/desire to acquire.
• Bring a unique and valued perspective.  If you deal with many clients in the same industry there may be instances where you have seen common problems solved many different ways that you might be able to suggest.  Your unique perspective in this instance is something your client cannot duplicate easily.
• Understand your clients business to the point that your client can just explain the issues without having to explain the business.
• Look ahead for your client.  There are so many fires to put out each and every day it can be difficult to look down the road and watch for issues or advantages that could impact a business.  Be the eyes for your client, keeping them informed of new laws, products, technologies or trends might impact their business.  The better you understand their business the more valuable this type of resource can be.    
• Be consistent and reliable.  You can only be a partner or trusted resource when you are there when needed.  If you are unreliable or inconsistent your customer will find another resource to help solve problems in your area of expertise.
• Make your client’s job easier.  Provide information, insight or resources that help your client do his or her job better.
• Go to bat for your client when needed.  Sometimes your employer’s interest or even your own personal interests can conflict with what is best for your client.  Sometimes your clients need a man on the inside protecting their interests. 
• Respect your client’s time.  If you call or stop by, have something worth saying.  If you want to talk about the latest wiz-bang features on your product then limit it to the features that would make sense for your client and explain them in terms of your clients business.

Establishing partnerships is a mindset not a mission statement.  The easiest way for me to remember to stay in the right frame of mind is to remember a simple line. 

“Help your client build his business so he is in a better position to help you build yours.”

Image courtesy of Visionpoint.dk

Two minutes into a conversation with a good friend, who works for a major national insurance provider, our casual banter took a sharp turn into a series of rants about the technology industry, incompetent sales professionals, ignorant project managers and grossly inadequate deployment teams.

 I had some time to spare so I just listened until finally she took a deep breath, blinked, looked up at me and said “Sorry about that.”

 Two years ago her company decided to gut their technology infrastructure and start over with a major ERP software package.  The plan was to completely integrate their organization in one mass of technology and human efficiency.  Unfortunately, two years later it was still a work in progress, and missed milestones were being measured in quarters, not days or weeks.

 I am certain the account management team thought they had struck gold landing this marquis account, and were already looking for ways to leverage this win into their next opportunity.  In actuality, all they have really struck is one big fat nerve that has an entire organization throwing them under the bus at every opportunity. 

 So what turned a fantastic win for the sales team and the entire company into a life sucking vortex?

In a word, implementation.

 When the implementation team began mapping the existing processes in the organization to mirror in the software they made one fundamental mistake that derailed the entire project on day 1. 

 They built their process map primarily from the information collected from executive and departmental management not the actual people doing the work.  The only input from the front line users came by way of survey forms.

 If they would have interviewed the front line team members and mapped their work processes then confirmed with management and integrated new efficiencies, moving to pilot phase and final implementation would have been a much simpler affair.

 So what is the lesson?  Account Managers, stay engaged until deployment is complete because you have a vested interest in things going well as a hunter or farmer.  What should have been a great sales win leading to many more for this team is instead a disaster they cannot shovel dirt over fast enough.  The next big mistake would be to bury this, you should parade this “loss” and the lessons learned, but that is a different post.

 Sales Managers, the impact of this cluster will never show up directly on a forecast, but it can be an invisible force working against your team morale, your ability to leverage future sales, and your reputation.  Watch for the signs as you performance manage your sales team, evaluate their forecasts and committed numbers for the next few quarters.  I would advise pushing for bigger committed numbers over the next several quarters to counter any fallout or delays this black eye might introduce.

 For the implementation side?  Simple analogy.  Design the new wrench based on what the guy who actually uses the wrench says he needs, not what his manager, a guy that will never use the wrench, says he needs. 

Image courtesy of http://www.all4humor.com

I was reading an interesting article this morning on child behavior, more specifically why toddlers don’t necessarily do what they are told. According to the research, three year olds don’t think like the rest of us.

For everyone older than three, if you realize it is cold outside you can think ahead and grab your coat before you head out the door. The three year old, however, has a different mental process. The three year old HAS to run outside, experience the cold, retrieve the memory of where his coat is, and then go get it.

As I continued to think, though, the article gave me a potential explanation for some curious customer interactions I have seen over the years.

I have seen clients trust their Account Managers recommendation enough to buy hundreds of thousands of dollars worth of hardware and software, but then slash the recommended implementation and training budget thus hobbling the deployment before it even begins.

Curiously, what were two of the top 5 things customers were most unhappy about after their deployments?  Perceived poor implementation and insufficient end user training.

Why does your customer “hear” you and order the hardware and software but then selectively ignore you on the topics of implementation and training?

In short, because the customer, like the three year old, either can’t register what you are saying,  does not have the frame of reference on which to fully comprehend the question, let alone make an informed decision or just does not trust your recommendation in this area. He may very well have to experience the pain, then seek the remedy.

More specifically in these instances, I see two possibilities.

Your client does not take your recommendation because you have not established an unwavering trust in the areas of implementation and training to override his lack of understanding of the potential ramifications.

Or.

Because you are perceived as an expert in hardware and software, an area where the client acknowledges he has little knowledge, but are also perceived as less than an expert, or worse yet, a corporate shill, in implementation and training, where the client may feel he has some relevant expertise.

The resolution is similar for both.

Put the same level of planning and forethought into discussing the training and implementation as you put into the discussion about your core offering. When you do discuss training and implementation, discuss hard numbers from other similar implementations, with references if necessary, to build the same level of trust you built on your core offering.

Give me your thoughts on this “Theory of 3.”

Image courtesy of http://seo2.0.onreact.com/

I got this email today from one of the LinkedIn groups I am associated with trying to sell me outsourced services for my business.  I opened it up, read the first three lines and deleted it.

 Then I decided to pull it back out and see if I could improve on the efforts of the original sales person and make a sales lesson out of it.  I am ignoring the spelling/gramatical mistakes as I am not an English teacher, I am a VP of Business Development.  The names have been changed to protect the sales or marketing knucklehead that wrote it. 

 

The Original – feel free to skip ahead as I could not get past the first 3 lines of this email on my first pass.

 HEADLINE: For Possible Business Collaboration / Oppurtunities

 Dear Mr.Val, 

I represent ABC Company, an offshore based services outsourcing Organization. We help our world-wide clients with our outsourced services such as;

Global HR Services – All Technologies, All Business Domains, All Business skills, At all levels of expertise & Knowledge.
- Recruitment Process Outsourcing (RPO),
- Worldwide Contractor staffing – Offshore/Remotely working resources/Onsite resources
- Online/Remote/Onsite Training & Development -Technology & non Technology training, e-learning courses development & Administration, Monitoring & Managing Training needs etc.
- Payroll Processing
- Employee records maintenance, & verifications
- Travel &, Accommodation
- HR policies & strategies
- Market /Competitor research
- Employees Compensation & Benefits
- Performance Appraisals processing, Administration & Management.

In addition, ABC Company helps worldwide organizations in the following areas;
1. Information Technology services (IT solutions development, customization, integration, Migration, upgrading, Implementation, Maintenance, Support etc. – All Technologies & Business Domains

2. Knowledge Process Outsourcing (KPO services – (a) Engineering – Mechanical, Civil, Architectural, structural b) Legal Process Outsourcing (LPO – all skills) c) Technical Writing & Communications d) Remote infrastructure Management (RIM – Monitoring & Managing any IT resources remotely, Technical Help desk, Systems & Database Administration, support, e) Animation, 2D, 3D modeling etc.)

3. Business Process Outsourcing (BPO – Document processing, Data entry, help desk, Data analytics, Data/market/IP research, Billing, verifications, Transcriptions etc, Outbound/Inbound Calling services etc – All Business domains and skills)

4. Bioinformatics (Contract/Collaborative Research & Development, Consulting, Life Sciences Software Applications & Tools, Data Mining/Data Analysis, Data & Applications Integration. Clinical Trial I/Medical informatics, LIMS, Internet/Intranet Applications, Multimedia & Virtual Reality Applications, Education & Training)

We have seen the following benefits accruing to our clients from our services;

1. We have a large team of highly qualified, experienced, talented, efficient, young and enthusiastic resources to support your organization in any of the areas shown above.
2. Our teams work as an extended team of onsite teams of our customers, thereby adding more strength and bandwidth and increase your teams’ skills and servicing capabilities.
3. Our resources can work on a 24x7x365 basis; our turn-around time for our service is very short. In most cases, the output will be in your inbox when you reach office the next day morning
4. We help our customers in cost savings of as much as 30-60% on case to case basis
5. We can provide our resources in good numbers at a short notice, and quickly ramp-up to meet your business needs.
6. Our clients save the hassles of constantly searching around for resources, every time, a task needs to be accomplished.
7. Our teams bring to the table, a very strong technical & English Communication (verbal & written) skills, highly professional & helping attitude, business ethics, services delivery expertise & commitment

I would be very glad to know, if ABC Company can be of any help and support to your organization or any of your client organizations, in any of the areas shown above please. I appreciate your time.

My Version

HEADLINE:  Are You Running Your Business or is Your Business Burying You?

 ABC Company helped me save my business!  ABC helped me identify why my operations costs were increasing even as our sales were slowing down.  ABC handles the backend of my operation so I can focus on bringing in new sales.

 Jay Richards, JR Enterprises (VIDEO CLIP:  Jay talks about ABC Company)

 Val,

Imagine I gave you a magic wand that let you eliminate every aspect of your business that you don’t enjoy, or that just seems to take your focus away from the things you feel you need to be doing.

 How much better would your business be if you enjoyed everything you did and had the time to focus on growing your business?

 What could you do if all of that extra weight was lifted off your shoulders?

 My name is Val King and I specialize in helping guys like you offload all the excessive weight that keeps your business from soaring.

 It is not magic, though, it’s our business. 

 Here are the Top 5 things our customers typically ask us to offload for them.

 Human Resources.

Payroll.

Insurance & Benefits Programs.

IT Services & Help Desk.

Billing & Collections.

Call me at 800-xxx-xxxx and let’s identify the Top 5 things weighing down your business.

If it makes sense, I will offload your Top 5 list for Free for a few weeks so you can experience our brand of magic and experience the impact you can have on your business once that excess weight is gone.

Val 

 ABC Company manages all of the time consuming aspects of my business that I hated.  Our business is growing again and I spend my days doing what I love.  Thanks ABC.

 Dave Johnson, Johnson Medical (VIDEO CLIP:  Dave talks about ABC Company)

LESSONS LEARNED

The original email reads like a laundry list, these guys are into everything from 3d animation to Life Sciences and Bioinformatics.  They list a lot of capabilities but this sales guy has no idea what my problems are, so he just lists everything they do in this email to make sure they cover every sales base possible.

LESSON:  Research your customer and avoid firing a shotgun email like this one.  Narrow your focus to what you are absolutely best at. 

The intent of this extensive list of services is to show me that they can help me in many different areas of my business with a huge stack of sales offerings and services.  However, I read this feeling that they could not possibly do all of this well.  I have no way of knowing which sales offering is their strongest, nor do I want to take the necessary time it would take to figure it out, so my instinct is to hit the delete key.

LESSON:  Avoid the temptation to send out a laundry list disguised as a marketing email.  It weakens your message and erodes some of your credibility.

The original email establishes no credibility for this company.  I have never heard of them and the only person telling me how great they are is the sales guy.

LESSON:  If the only person saying your company is good is the sales person then no one is saying anything good about your company as far as I am concerned as a customer.  Use legitimate references I can call or for a bigger bang for the buck, use video references I can watch.

There is no tie to what any of these services do for me, the guy that is supposed to pay for this fabulous service.  The sales professional should paint some sort of picture of how my life as the business owner or how my company might be better if I just offload this stuff to them.

LESSON:  It is your job as the salesperson or as the organization sending the email to explain to me how I will benefit from your product.  If you don’t make that connection, don’t expect me to respond.

There is too much text in this flippin’ email (and probably this post.)  The text is small, there are acronyms all over the place (RPO, KPO, LPO, RIM, and LIMS.)

LESSON:  Be as short and concise as possible as you are imposing on my time with your email and use language that is plain and free from industry jargon.

They use the work “all” eight times in the email.  Example:  ”Global HR – ALL Technologies, ALL Business Skills, at ALL levels of experience and knowledge”

LESSON:  Horsefeathers.  I don’t believe it.  I will delete it.  

There are 7 stated benefits for me the customer.  Some are ridiculous adjective fests…

Benefit 1:  Large team that is highly qualified, experienced, talented, effiecient, enthusiastic and as if that was not enough they are also described as being young.  I don’t know about you, but I feel better already. 

Some are not benefits to me at all; they are minimum standards like…

Benefit 7:  Our teams bring very strong technical and English communication skills.  

LESSON:  It is only a benefit if it benefits me.  Write your email as if you are standing in my shoes, not trying to talk me out of them.

This was the closing line.  “I would be very glad to know if ABC Company can be of any help and support to your organization…in any of the areas shown above…  I appreciate your time.”

When I read this closing line what I get out of this email and what the salesman wants me to get out of this email are clearly two different things.  I am sure the salesman would like me to look at the list like some sort of ala carte menu, make a few selections and get back to him so he can work up a quote.

What I read is that the salesman at ABC Company is too lazy to figure out what my business is or what I do all day.  He has effectively hit me with a list of SIC codes and a Scan-Tron asking me to color in the little circle next to my selection with a #2 pencil and get back to him.

LESSON:  Figure out what I need to buy before you try to sell me something.  It seems to work better that way.  If you are going to be lazy and not do the research then don’t send the email at all.

 

Got a suggestion of your own to improve on my improvement?  See another lesson here worth covering?  Add a comment.

“Cleaverly disguided” photo – courtesy of  http://rlv.zcache.com

“English photo” courtesy of - http://www.flickr.com/photos/40741986@N00/399082864

“2 shoes” photo – courtesy of http://www.flickr.com/photos/conqenator/2952567054/