Michael came to me with an interesting situation. He had a prospect that clearly identified a need (they said their customers’ were beating them up over a problem with their product that Michael could help them solve), they also told him that he was their top choice, and there was a budget line item that could be tapped for this purchase. They originally said they would be placing an order in two weeks, but since then, several months had passed. In the meantime, the prospect continues to engage, but has focused Michael on explaining and addressing one technical question after another, with no end in sight.
I asked Michael how the company was doing, business-wise. His quizzical look encouraged me to explain further. “Are they profitable and growing or are they struggling in any part of their business”, I added. He shrugged his shoulders and said, “they’re fine”. I pulled up a browser, performed a search, found their financial reports and reviewed their most recent quarterly filing. The results cited an $11 million loss as well as a 17% decline in revenue for the product set related to Michael’s contact.
Michael squinted as if he was processing this information, but remained silent. So I asked him, “if you were the CEO of this company, had to report a profit loss and a significant decline in revenue for a key product segment, what would you be doing?” Michael grimaced and replied, “I’d be pinching pennies”.
“Exactly” I replied in support. Michael nodded his head and said, “so I guess I should drop this prospect and look for another to replace it”, seeking my agreement.
“On the contrary”, I replied, “you’re in the driver seat now, and should leverage the opportunity.” I went on to suggest Michael sit down with his contact, review the financial results to gain agreement the opportunity was on hold because of the current financial predicament. When he gains agreement, I suggested he offer to collaborate on a strategy. If, in fact, they were getting beat up about a shortcoming in their product, this could probably be the reason for the revenue decline. The strategy would be to approach upper management with Michael’s solution as a way to reverse the revenue decline and address the profit problem. In effect, Michael’s solution could be projected as a strategic solution to a concern the CEO’s is anguishing over.
Companies are like people. When a crisis hits, most behave very predictably; usually to their detriment. Often times, they need help seeing a way out of their crisis, but more importantly, if you have the key to the solution, you have power. The challenge is to thread the subjects together and convince your sponsor to take you up the chain to gain buy-in. I’ve found that sponsors are much more likely to open the door to upper level management in a crisis situation than they are in an even keel situation.
Personally, I’d rather sell to a prospect in crisis over a prospect that is fat and happy.
However, it’s not always evident there’s a crisis, especially with lower level contacts. Worse, they may decide it’s better to string you along rather than tell you they’ve been put into a spending freeze, hoping time will eventually heal the situation. But as the saying goes, “hope is not a strategy”.
I encourage you to look up the financial news and recent press releases for your top opportunities, if not all. Then put yourself in their shoes to anticipate their behavior. You may find that your solution is exactly what they need to address a strategic problem versus a tactical problem, and that puts you in the driver seat to request access to more senior level decision makers.
After all, there’s really no such thing as a spending freeze. They’re still paying the light bills and other necessary expenses. It’s better described as a stringent prioritization initiative. Your job is to help them see how your solution should be re-prioritized in light of the current crisis.
For a very interesting story about this subject with a huge payoff, read my previous post entitled Buyer Psychology In Times Of Crisis.
Kevin Temple guides sales teams to be more agile and improve revenue outcomes. He can be contacted at firstname.lastname@example.org. The Enterprise Selling Group is a leader in delivering sales training, coaching and project oversight to improve the agility of sales teams around the world.