Tag Archives: consultative selling

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Sales Agility: Selling Around I.T.

Y’all a bunch of coal miners in a gold mine!”

The words stung when they first rolled off of Hank’s tongue. I felt like it was an insult to our sales team, but rather than show my irritation, I asked Hank to clarify what he meant.

Hank was a new board member brought on to help our software company revitalize its lost growth luster. He smiled his approval at my curiosity, and explained. “Every day your sales team comes the work, it’s like they walk through a long dark tunnel to spend the day hacking away at the wall to generate a few hundred dollars’ worth of coal. On their way through the tunnel, they keep tripping over these large yellow rocks, so they kick them out of the way. What they don’t realize is those rocks are made of gold.” His Texas accent only made the analogy more powerful for me.

Hank was explaining that selling to IT was like coal mining. He continued by pointing out our own IT department had a budget equal to 1% of the company’s planned spending, while our sales department had 26% of the overall budget. His point was well made. We were working like dogs to scratch a living out of selling to IT. And they never had a kind word for us in return.

I spent the next nine months leading our sales team to be more agile in selling to the real stakeholders in their accounts. It didn’t happen overnight, but the results were mind blowing. Our largest deal size before Hank spoke up were in the $1M -$3M range. Within a few months we were booking $15m – $20M deals.

Although selling to General Managers and CEOs seems like a no brainer, we had to overcome years of ingrained habits to succeed. Here’s a short list of the challenges we faced in this particular situation:

  • Our messaging was tailored to I.T., not CEO’s.
  • I.T. did not have the mojo to sponsor us to the business side, nor did they want to.
  • Most of the business leaders who would benefit from our solution had no idea who we were.
  • Our sales people lacked the confidence to take on a new stakeholder conversation.

Sound familiar? Almost every technology company I’ve helped since then faced the same set of challenges.

Here’s how we overcame these challenges and became gold miners.

  1. We profiled the problems faced by the executives in our major target verticals. This means capturing their business issues, underlying problems, potential impact of changing in dollars, and the connection to our solution. We drilled this into our sales team, even requiring them to become certified in this type of dialog.
  2. We created new messaging that focused on the business issues, problems and impact that we could deliver to these new stakeholders with stories to illustrate real life examples.
  3. We went through an exercise to calculate how much value we contribute to the world on an annual basis. Without an exception, every sales rep came to the same conclusion. We delivered billions in cost savings and revenue acceleration, yet we were only billing about $200M at the time. We implemented this exercise to build the confidence within our sales people to carry their message to more powerful stakeholders.
  4. We challenged our sales people to take this message to three senior leaders in their accounts. We tracked and measured the initiative. Almost every sales person uncovered an opportunity that over shadowed previous projects. This alone fueled their appetite to prospect even more opportunities outside of IT, and created a workforce of gold miners.

In addition to the deal size growing tremendously, we had several other benefits emerge as well. Our discounting practice dropped by over 30%. Our breadth of products per transaction jumped dramatically, and our services bookings jumped from $2M the year prior to over $98M in less than nine months. This initiative revitalized our growth to the 30% range and took us to the billion dollar revenue mark in a few short years.

Although changing a culture to target business leaders outside of IT seems like a sales challenge, it’s really a leadership challenge. I’ve worked with many technology companies on this challenge, and the one common denominator for success with this level of agility is leadership.

Do your sales managers need to become sales leaders?

Kevin Temple guides sales teams to be more agile and improve revenue outcomes. The Enterprise Selling Group is a leader in delivering training, coaching and project oversight to improve the agility of sales teams around the world.

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Sales Agility: "No Budget"

This is my favorite objection! Ever!

Ok, it’s not really an objection, it’s an invitation. So it’s my favorite buying invitation,ever!

Every seller has heard “lack of budget” as an excuse on multiple occasions. When I conduct AgileSelling workshops I gather the most frustrating sales challenges from the audience. Lack of Budget is usually in the top five.

Let’s start by translating what it really means. When a contact says, “we don’t have a budget for this”, they’re really saying, “I don’t have the authority to change the budget.” This means someone else does have the authority to execute a reshuffle of the budget.

Now comes the interesting part: The agile seller uses lack of budget as an invitation to meet the real budget authority and sell larger deals.

A couple of days ago, I had a LinkedIn message exchange with a former colleague of mine, Steve Flannery. Our quick exchange reminded me of a time when Steve had overcome this challenge in spades. I recall reviewing his year in advance forecast with him during a Q1 Ops review. During the review Steve revealed his largest customer, Unisys, would not be spending any money on our solution in the coming year. They were dropping from spending over a million dollars a year to zero – nada, zilch. When I asked why, he described a situation where Unisys was consolidating from five product lines down to one and laying off personnel, leaving them saturated with our software solution. He ended his story with the words, “so they slashed the budget”.

I suggested it was an invitation to meet with the person who slashed the budget.

Steve set up a meeting with the General Manager of this particular Unisys division. When Steve met with the GM, he found the situation was even worse that he previously understood. As a result of waves of personnel layoffs, their best remaining people were shopping their resumes and were likely to jump ship. That meant the GM wouldn’t have enough of the right people to get their only remaining product line to market.

Steve ended up closing a $75M contract for services to insure the one remaining product line succeeded.

Here’s what I learned from Steve’s experience:

  1. If there’s a big problem lower in the organization, it’s probably more painful higher up.
  2. Budget is an amorphous solid. If you forgot your high school chemistry, an amorphous solid is one that can change shape, usually by adding some heat.
  3. The Agile Seller uses lack of budget as a reason to meet with the person who can reshape a budget.
  4. An effective problem diagnosis can create a larger opportunity with the person who has the authority to move money around.

Let’s exit Steve’s example, and talk about the everyday, ordinary selling campaign. Can a seller still use lack of budget as way to get to a decision maker and overcome the obstacle? The answer is yes, if…

If… the seller does an agile job diagnosing the problem set and uncovers the impact of not taking action. When done effectively, the contact will usually respond positively to a request to collaborate together to get the purchase funded, including taking the message to more powerful budget holders.

So the next time your hear “no budget”, translate it in your head as an invitation. It’s an invitation to diagnose effectively, meet other stakeholders and create a larger opportunity.

Kevin Temple guides sales teams to be more agile and improve revenue outcomes. The Enterprise Selling Group is a leader in delivering training, coaching and project oversight to improve the agility of sales teams around the world.

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Sales Agility: Gaining Access to Decision Makers

One of the most frequent complaints I hear from sales people is the frustration of being held at arm’s length from the actual decision maker. In the course of my sales effectiveness consulting career, I have helped countless sales people overcome this challenge on a consistent basis, and many of my client companies have gone on to establish executive access as a cultural norm and competitive advantage. Access to power is a sales agility challenge. It takes an effort to tailor a message that will resonate with the power person, and motivate the sponsor to take you there.

Let’s break this challenge down into one simple concept. You will be taken to the person you sound like. If you sound like a technical person, you will be sent to the technical evaluator. If you sound like a VP, you will eventually be taken to the VP. If you sound like a CFO, your request to meet the CFO will be earnestly considered.

Your messaging should be crafted to interest the person you want to access. If you unconsciously repeat your sales messaging without crafting it, you will find yourself stuck at the same level of every organization you approach, usually an evaluator level.

Crafting a message sounds easy right? Unfortunately, most people get into a habit, and are not self-aware of their own behaviors. Let’s test our self-awareness and our agility in crafting a tailored message.

Here’s a simple test: Take a pen or pencil and jot down the most critical business issue facing your top prospect.

If you don’t know it, and can acknowledge you don’t know it, that’s the first step in self-awareness. Go to their website and look at their recent press announcements. Look for business problems. Next, go to your favorite search engine, type in their company name with an added word like “problem”, “issues”, or “challenges”. See what pops up. Then look at their operating statement. Are they any numbers that are worse than they were the year before? Do any of their numbers look worse than their closest competitor? Going through this five minute exercise will usually give you a better understanding of their business issues, find at least one business issue you can contribute to, and will prepare you to craft a compelling message that attracts more powerful stakeholders.

If you think you know the business issue, and the answer has any of your solution description in it, you’ve shot yourself in the foot. Nine times out of ten, when I ask a seller to describe the business issues’ facing a prospect, their answer is a solution request, “They need our XYZ product…” or, “They’re not happy with the competitive solution and want to evaluate ours.” In either case, the seller is seller focused, not customer focused. Until they become self-aware of this orientation, they cannot craft messaging that will attract decision makers.

Let’s assume you found the most current business issues facing a company. Now write down the top three to five problems they have addressing this business issue. The unaware seller will usually describe the situation with answers that don’t specify problems, such as, “They have 50 offices.” or “their existing solution is out of date.” These answers might insinuate a problem, but they don’t explicitly disclose a problem. They need to articulate the problems more succinctly, such as, “They have so many offices, management can’t scale to cover them all effectively.” Or, “Their existing solution caps out at 50 users, and they have several hundred requiring access at the same time.” Most executive buyers don’t have the time or the first hand usage experience to be able to connect situational information to a problem that is impeding the resolution of their business issues. An agile seller is specific in the problem diagnosis.

Lastly, describe the business issue in terms of impact. Most sellers want to describe the quantified benefit of their solution through the eyes of other customers. “Research shows our customers’ produce 15% more widgets than their competition.” While this is a valuable proof statement, validating your success, it does not equate to their value proposition. Instead, quantify and confirm their business issue from their perspective. “From what you’ve told me, your cost of sales are 18% higher than your competition, creating a $75 million profit problem. Who would be interested in solving this issue?”

When you can string these three topics together, you’ll find doors opening to more influential stakeholders. Contrast Seller A and Seller B:

Seller A: “We have the fastest widget in the industry, used by 450 of the Fortune 500.”

Seller B: “I noticed your new product revenue is down 22% over last year, complicated by a lack of skilled talent, longer development cycles, and the currency crisis in Europe. Who in your organization would be interested to hear how we can address these problems?”

Seller B has crafted a tailored message that is customer focused and does not rely on a solution description. They have a much higher chance of being taken to more stakeholders than Seller A.

Access to power is an agility challenge that requires self-awareness, some research, and an effort to deliver a message that fits the customer’s issues and problems. Falling into the pattern of talking about your product without the context of the customer’s parameters, will box you into an evaluator level dialog.

Are you agile enough to learn how to create a tailored message and use it to gain access to decision makers?

Kevin Temple helps sales teams optimize their behavior and improve revenue outcomes. The Enterprise Selling Group is a leader in delivering training, coaching and project oversight to improve the agility of sales teams around the world.

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Sales Agility: Cross Selling

Almost every sales leader is familiar with this problem. Pareto’s law, otherwise known as the 80/20 rule, applies to most sales organizations. Eighty percent of their revenue comes from less than 20% of their solution portfolio. If you combine this with Forrester’s research finding it’s five times less expensive to sell to an existing customer than a new one, you will probably reach the conclusion that selling across the product line to existing customers should be a major component of any revenue growth strategy. Unfortunately, most sales teams lack the agility to execute on this skill set. But the good news is it can be learned at an individual contributor level and at the organizational level.

There are two factors that dictate the agility of a sales organization when it comes to selling across the product line. First, the learning model they apply to the challenge, and second, the accountability factor.

Left to their own devices, most organizations unconsciously apply the same failed learning model for new products. They shovel facts and capabilities at the seller, load on a couple of reference logos and call it a day.

Unfortunately, most sellers, even the brightest, hit learning saturation and can’t digest nor retain this information. Worse, this information does very little to prepare the seller to create need for the target product or differentiate in the face of competition.

I’ll share a real life example.

Years ago, I received a call from Brian Powers, the director of training for Dell at the time. Brian said my name was handed to him by a Gartner representative. He was calling to get my input on a cross selling challenge they were facing. At that time, Dell was in transition. They were attempting to fuel revenue growth by adding servers, storage and services to their solution line up. This was not a single new product addition; they were expanding their portfolio dramatically in an instant across three new product lines!

When I asked to see their training materials, I would describe them as glorified data sheets. They were attempting to shovel facts and specifications into the minds of their sellers, thinking this was going to get the job done.

I was not surprised to hear the initiative was not meeting expectations.

I was taught a lesson by a stereo sales person a long time ago. When I went to buy a home entertainment system, I was confused by the long system specification lists displayed in front of each product. The seller approached me and asked if I was overwhelmed by the choices. I acknowledged I was. He glanced down at my then five year old son, standing next to me, and said, I could ask you one question that will make this very easy to figure out. He had my attention. He asked, “do you envision entertaining adults in one room or on the patio with some nice music while the children are kept occupied in another room with a movie or TV show? I said yes. He then pointed to the system at the top of the shelf and said there was only one model that could do both. I went home with the most expensive system he had.

With that lesson in mind, here’s what we did to reshape Dell’s outcome. First we broke down each major product into a set of need creation questions. These questions come from analyzing the problems that can be solved by the new product, not the capabilities. For example rather than asking, “Would you like services to install a consistent operating system image on all 200 PC’s you’re buying?”, we had them alternatively define a problem set first. “Does your support team run into problems when the operating system installs are not consistent across the organization?” This creates the need for the solution by focusing on a problem rather than the solution itself.

As humans have evolved, we’ve developed pattern recognition for identifying problems, not solutions. We learned to identify a predator, feel the temperature change, or stop at the edge of a cliff with very little coaching. The answers to each of these problems took much longer to learn, pass on, or execute with consistency. From a learning perspective, problem identification is a more productive learning model than solution definition. This applies to sales as well. As exemplified by my stereo example, the seller only had to remember one problem definition to make the sale, versus digesting hundreds of specifications for comparison.

But learning isn’t the only obstacle. Accountability is as well.

Customers don’t typically demand the secondary products in a seller’s portfolio. Worse, if a seller spends time on a new product and gets beat by a competitor, they shy away from a similar time investment to insure they spend time on the in demand products.

In order to apply some level of accountability to cross selling, some teams stratify the quota by product line. Some incent with SPIFF’s. While others simply set expectations, measure, provide feedback and reward in other, non-financial ways. The success of any accountability strategy is highly dependent on the culture of the organization and leadership bench strength. Dell’s approach was the latter of the three. They maintained visible scoreboards, and publically acknowledged the success of the early adopters.

In any case, the learning model needs to be supported by an effective accountability model that compels application and rewards outcomes.

Within 30 days, Dell was able to track a 26% increase in their “attach” metric, an indicator of multiple products being sold in each transaction. This fueled their new product sales which grew to become a $15B contributor to their business. This is an example of a large organization learning to become agile again.

How well does your team sell across the product line? Do they need to improve their cross selling agility in order to continue reaching revenue growth expectations?

Kevin Temple helps sales teams optimize their behavior and improve revenue outcomes. The Enterprise Selling Group is a leader in delivering training, coaching and project oversight to improve the agility of sales teams around the world.

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What Clint Eastwood Would Do After A Consultative Selling Workshop

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Remember the movie “The Gauntlet” with Clint Eastwood? He’s been ordered to pick up a prisoner and deliver her to the courthouse a few hundred miles away. What he doesn’t know at the time is that he was selected to fail. As the plot progresses, it seems like everyone is out to kill him. The conspiracy runs right up to, and includes, the police commissioner.

The same goes for sales reps that are chartered to sell consultatively. (Insert your favorite: Solution Selling, Value Based Selling, Challenger Selling, etc…)  It’s as if everyone’s against them as well. From the moment they finish their introduction to a consultative selling model, it’s as if the entire world is against them.

Imagine the scenario that plays out every day all around the world. A successful product sales person has just completed the world’s best consultative sales training workshop and they are anxious to engage their first prospect to practice their newly acquired knowledge.

The first obstacle they encounter is the customer. The first words out of their mouth are usually something to the effect of, “so what does your product do?” If a seller is particularly tenacious and holds her ground by asking to understand more about the customer’s business, it’s not uncommon to hear the prospect elevate the defense by stating, “you don’t need to know that, just tell me what your product does”. A very seasoned consultative seller can navigate past a “See-more”, but the new consultative seller will need some help and guidance with establishing credibility, leading a dialog, and controlling the steps, especially if they run into multiple “See-more’s”.

Let’s talk about the second obstacle. Clint’s character, Ben Shockley, was chosen for this job because his alcoholic fueled lone wolf behaviors had defined many failures in his career. Like Ben, many sales people can be their own worst enemy. When their product expertise is the primary source of their value to a prospect, their strength becomes their weakness. At the first sign of a difficult consultative dialog, many reps will readily fall back to educating on product capabilities. They enable themselves. Worse, when the prospect provides positive feedback for an deep dive on the product capabilities, the sales rep internalizes it as good behavior. Nothing could be further from the truth. Focusing on the product keeps access to other stakeholders to a low level, and hands over the only thing the prospect values too early in the process.

Now let’s go to the wolf in sheep’s clothing: the sales manager. Unfortunately, this person was usually given a battlefield promotion for selling more product than the next rep, but that doesn’t often translate to possessing consultative selling skills. They are often ill equipped to role model the expected behavior and are generally inclined to forego early customer diagnostic dialogs to focus on closing meetings where they mistakenly believe they are having the greatest contribution to success. Many are also not prepared or developed to coach effectively. They tend to fall back on “watch how I do it”, only to role model the best product centric habits. While it seems intuitive that the sales manager plays the most critical role in transforming a product centric seller to a consultative centric seller, they are a leading reason many sales reps’s fall back to previous behaviors.

Now the invisible enemy; the seller’s own company. Its ironic the company is expecting the seller to suddenly begin consultatively selling, while unfortunately, their marketing messaging is still touting product capabilities, their recognition and reward systems still incentivizes old behaviors, their leadership hasn’t defined success in a very tangible way and probably didn’t attend the same training experience, and their solution training is still product centric. Imagine moving to a foreign country to learn a new language, but everyone speaks nothing but English. You’re not likely to learn very much.

The transformation of a single sales person to sell consultatively includes many enemies, most of which are unconscious they are undermining success. The transformation of an entire sales organization only magnifies the problem.

So how did Clint finally deliver on his promise? He had help. You may remember that his former partner helped him with information and coaching. For a sales team to succeed with this task, they need help as well. They need help from their manager, from their company, and from their customers. Further, each of these stakeholders need help. The company needs to become aware of how their processes and ecosystem support old behaviors, not new ones. The manager needs to be developed to be a better coach and role model. And the customer needs to understand why engaging in a different dialog is in their best interest. Lastly, the rep needs to know about these traps in their quest so they can more effectively navigate the challenge.

 

The Enterprise Selling Group provides sales transformation strategy, planning and execution services. If you’d like more information about successfully transforming your team to a consultative selling model, please visit our website at www.enterprise-selling.com