I know it sounds counter intuitive, but learning to disqualify can help you build your sales funnel faster. If you happen to be one of the many that are hustling to rebuild a year end depleted funnel, this article may help.
Back in early 2009, during the height of the recession, I took on a new client named Imprivata. They deliver single sign on solutions to improve security in the healthcare marketplace. They were perplexed by their situation. After investing a lot of money into marketing automation, they had more leads than ever before, but their close rate was getting worse. It would have been easy to rationalize the decline of their close rate around the impact of the recession, but they wanted to be sure.
In an effort to flush out the answer, we implemented a disqualifying process, and the results were phenomenal. They ended up closing about 20% more opportunities per rep than the year before, and their average contract value increased 19%, all during the most significant economic downturn many of us have ever experienced. (Tom Brigiotta, VP Sales, Imprivata)
To understand how these results were achieved, I’ll start with a basic description of the disqualifying process and then connect it to the outcomes.
For Imprivata, we designed a two tier qualification question set. The first tier included:
- Can the prospect define the problem set that needs to be addressed?
- Can the prospect identify the impact of the problems?
- Can the prospect identify the current business issues of their company or organization?
The problem identification question doesn’t have to be cut and dry. The sales person can also help the prospect develop the problem statement. As an example, if they contact a prospect because they engaged in some marketing automation activity that flagged their interest, the sales person would reach out and begin the dialog. A key part of that dialog would be to ask them why they were looking at this solution, in essence, getting the prospect to verbalize the problem set. If the prospect couldn’t verbalize the problem set, the rep could probe for existing problems: “Do your employees leave their passwords on sticky notes in plain sight?” “Does this pose security challenges?” “Do you have to abide by HIPAA regulations?” The objective is to surface the problem definition to identify the reasons for change and gain agreement on the problem set.
However, if the prospect wouldn’t agree to a problem definition, the qualifying question is rated as a “no” and they move to the second tier qualifying question explained below.
If the prospect could define the problem set, the next question in tier one is intended to uncover the implications of the unresolved problem set and help the prospect rank the problems against others that might be competing for their attention. Again, if the prospect can’t answer the question directly, a set of probing questions could be offered to help the prospect understand the value: “Have you been put on notice or fined for any security violations?” “Have you or your colleagues’ ever lost productive time due to lost or forgotten passwords?” “How long does it take for IT to help reset passwords?”
If the prospect still can’t mutually help develop the value proposition, then the second qualifying question is rated as a “no” and the seller would jump to level two.
Lastly, if the answers to the first two qualifying questions were positive, the prospect is asked to identify the current business issues of their organization. The objective is to connect the problem set to a higher level business issue that has the attention of senior management, which helps justify and prioritize this expenditure against a more circumspect criteria set. Many purchase requests are shot down because they don’t align with senior management’s current agenda. Again, if the prospect couldn’t identify the current business issues, the rep would be prepared to probe with an examples such as: “Most of our customers are focused on… lowering costs, or seeing more patients in each workday, or scaling their operation… do any of these apply to your situation?
As with the first two, if the answer to this qualifying question was rated a “no”, the second tier qualifying question was applied.
Tier Two Qualifying Question: “Can you introduce me to someone who can answer these questions?”
If the contact contact couldn’t answer the first tier qualifying questions, and refused to introduce another stakeholder, the engagement was put on hold, usually by politely putting the contact into another automated marketing nurturing process to be followed up when another trigger was tripped. On the other hand, if they did introduce a new stakeholder, the qualifying process was repeated with the new contact.
So how does this help you build a bigger funnel and sell more? The answer is twofold.
First, most enterprise selling professionals report no decision outcomes as representing 30-60% of their selling efforts. No decisions outcomes are frequently caused by sponsors that can’t effectively articulate the need to change, prioritize the need to change against other initiatives that are competing for the same money, or they fail to align their needs with the current agenda of their superior management who find it easier to ignore requests that lack meat. By removing these contacts from further activities that have no chance of producing a positive outcome like demonstrations or follow up communication, the seller is freeing themselves to pursue other opportunities that can buy.
I’m reminded of the adage taught to me by a sales manager I had early in my career. “When a prospect fails to buy, they have robbed you twice. First they rob you of the time you spent on them, and second, they rob you of the opportunity to spend that time on someone who can buy.”
Secondly, the qualifying questions actually help a buyer buy more effectively which leads to higher contract values. In essence, the answers to the qualifying questions help the contact to shape the problem definition more articulately, justify the purchase more clearly in light of other competing options, and more effectively compel senior management to take action with their own interests. This framework frequently compelled decision makers to expand the scope to include other organizations or stakeholders that weren’t included in the dialog but could benefit from the application.
Kevin Temple guides sales teams to be more agile in their disqualifying process and improve revenue outcomes. He can be contacted at email@example.com. The Enterprise Selling Group is a leader in delivering training, coaching and project oversight to improve the agility of sales teams around the world.