Tag Archives: sales training

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Web Delivered Sales Presentations: The Good, The Bad, And The Ugly

Sam is stuck in a grind. He works for a large software company, delivering web based sales presentations day in and day out. Like most large organizations, this company has specialized roles in the overall sales process. His role is to present his solution, and then, if the prospect is interested, he hands the lead to a field rep. . His company has a well developed marketing automation solution so he gets plenty of appointments for sales presentations. He could deliver them in his sleep and often does. He told me he dreams about delivering sales presentations as a recurring nightmare. He’s bored, feels like he’s got more potential than this assignment, and worse, the conversion rate for these prospects is trending down so the answer seems to be to do even more of the same just to keep up.

When Sam related his story to me, I conjured up a vision of one of those dystopian movies filmed in sepia tone where dozens of other young, smart and talented sales professionals are chained to their desks enduring the same grueling process day after day. 

We talked about his career goals and what would make his current assignment more fulfilling. Then we reviewed his current sales presentation.  It was supplied by the marketing department, included very slick looking graphics and followed a familiar pattern:

  • Let me tell you about my company…
  • Let me impress you with the logos of our Fortune XXX customers…
  • Now let me tell you how this product works…
  • And, lets end by talking about next steps.

I was tasked with delivering this format as a young sales person, have witnessed it in full swing at dozens of companies around the world, and just this week, subject to it when I expressed interest in a new technology solution. 

It reminds me of the quote attributed to many including Benjamin Franklin and Albert Einstein (while neither probably actually said it), “The definition of insanity is trying the same thing over and over again, but expecting different results.”

I suggested we turn his grueling process into a more engaging dialog and have fun experimenting with different ways to implement it. Here’s what we did to the format:

  • A discussion about the problems and challenges the customer has getting the job done with the current solution. (The variation was starting with a blank slide to have the buyer lead the list, versus a partially filled out list to let the seller lead the dialog and encourage the buyer to add to it.)
  • A discussion about how these problems roll up to create executive level headaches. (Which I call “business issues”) For example, how a broken process delays the time to market for a new product or increases development costs. (Again, varying having the buyer lead or having the seller lead and guiding the buyer to supplement the dialog.)
  • A discussion about how these problems are impacting the business in terms of time or money. With the dialog lead variation option as well.
  • Segue to how the seller’s solution addresses the identified problems. Specifically tailoring the presentation to the problem list.
  • A short overview of a similar customer with similar problems and the resulting outcome. (Try the logo slide here as another variation.)
  • A dialog about who else is impacted by the problems identified.
  • Next steps.

After the first day, Sam called to tell me the results. Some of his observations included how the day flew by, how he was looking forward to each new meeting, and how much more dialog oriented the meetings were versus monologue centric. 

After about 30 days, Sam noticed that his choice to lead each diagnosis subject with examples or let the buyer lead was most productive based on the apparent presence of even keel attitude or lack thereof. If they were even keel he would lead, if they sounded like they had done their homework and were really serious about a purchase, he would encourage them to lead.

Now came the interesting part. Sam reported that after 90 days of this experiment, his conversion rate (from interest to purchase) almost doubled, he was told he was on top of the list to take on the next open field assignment, and he no longer experienced recurring nightmares about sales presentations!

If you’re one of those people stuck with a marketing presentation that doesn’t fulfill you, or a sales leader trying to get more performance out of your team, try this and let me know how it goes.

 

 

 

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Control The Buying Process: Gives and Gets

As we roll into the holiday season, its time to think about giving… and getting.

Research by CEB indicates top performing sales people exert more control over the buying process than their colleagues. In this article I’ll share two powerful tools for exerting more control over the buying process which can result in higher win rates and shorter sales cycles.

One of the key premises for control is a healthy balance of give and get. If your buyer values you and/or your solution, they should be demonstrating this by collaborating with you when the process hits a snag. If the balance is heavily lopsided in their favor, you are most likely not their first choice.

Gives and Gets

The discipline to routinely ask for something in return is a powerful control tool when it comes to improving sales results. Consider some of the common requests potential buyers make of you:

  • Can we arrange a demo?
  • Can we install your solution on site for 30 days to evaluate it?
  • Can you provide budgetary pricing?
  • Can we see your five year roadmap?
  • Can we talk to your subject matter experts?
  • Can we talk to a reference?
  • … and more!

Each of these requests presents an opportunity to ask for something in return. I recommend asking for information or activities that will shorten the time to decision. Some examples:

  • Access to other stakeholders, especially those with the power to say yes to a decision.
  • Insight into key metrics that could shed light on the value proposition for making a change.
  • Insight into key competitors and their differentiators that might be important to address.
  • Collaboration on the internal justification document.
  • Confirmation of the current business issues demanding attention in the buyer’s C suite. (This gives you the opportunity to tie your solution to a strategic initiative.)

Keep track of the Gives and Gets outcomes to provide you with a view of the health of your relationship with your buyer. Wins usually have a balanced Give/Get ratio, losses and no decision outcomes are usually biased toward the buyer’s demands with little representation of the seller’s requests. A one sided relationship usually indicates that you are not the first choice, and you are probably being used as column fodder against another preference.

A Series of Formal Agreements

As you navigate your way through the buying/selling process, take notice of the number of informal agreements you establish along the way. For example, which stakeholders you can access, how long the evaluation will take, the decision criteria, when a decision will be made, and so forth. Each of these agreements presents an opportunity to exercise more control by formalizing the agreement in writing. I’ve seen top performers build a list of agreements into something I call the mutual action plan, however, it doesn’t have to be a signed document; it can be a simple email recap with a request to acknowledge the agreement.

The act of formalizing the agreement is valuable in itself for exerting control; however, the most powerful use of the concept comes about when your buyer breaks an agreement. This is when you have the right to ask for something in return! Think of this as a level two Give and Get.

For example, let’s assume you have documented the terms of an evaluation. But now the buyer comes to you and says, “I know we asked for 30 days to evaluate your solution, but we ran into some other distractions that got in our way. Can we extend the evaluation another 30 days to make sure we have ample time to conduct a proper evaluation?“

If you have established a more formal agreement, you should be entitled to ask for something in return. Once again, ask for something that will help you shorten your sales cycle, like access to other important stakeholders, or validation of metrics that can support the need for change.

Conversely, if you failed to document the agreement, you have less ground to stand on to ask for something in return. It doesn’t mean you can’t ask, and it doesn’t mean they won’t grant a return request, but the odds go up for granting your requests when a more formal agreement is in place.

Summary

To shorten sales cycles, reduce the number of no decisions, and set expectations for the dynamics of your relationship, consider using Gives and Gets as well as Formal Agreements to exert more control. Lastly, tracking the positive acceptance or negative denials for Give/Get requests may provide you with advance insight about the outcome of the process.

If you want to change your discipline in this area, consider mounting a poster above your computer to remind you to look for Give/Get opportunities and Formalize AgreementsHere’s an example you can modify to fit your needs.

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The Secret To Cross Selling Or Up Selling More Effectively

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 with consistent results. But the good news is there is a simple way to enable individuals and whole organizations to cross sell or up sell more effectively.

For simplicity, the information I’m about to share applies to both up selling and cross selling, but I’ll condense the terms into one for ease of reading.

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. (Since we’re in an election year, I thought a little hyperbole might sound familiar.) The crucial point is that capabilities focused training doesn’t promote cross selling as much as the alternative I’m going to explore.

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.

A Simple Lesson In Up Selling

I was taught a lesson in up selling by a Best Buy sales person a long time ago. When I went to buy a home entertainment system, I was confused by the complex system specification lists displayed in front of each product. I had a scratch pad in hand and was furiously taking notes, trying to find the best value. A salesperson approached me and asked if I was overwhelmed by the choices. I sheepishly nodded my head in acknowledgement. He glanced down at my then five year old son standing next to me who was not hiding his lack of patience in the matter, and said, “I could ask you one question that will make this very easy to figure out”. He had my attention. He continued, “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. Needless to say, I went home with the most expensive system on display!

Dell Learns to Cross Sell

Years ago, I received a call from Brian Powers, the director of training for Dell Computers at the time. Brian said my name was handed to him by a Gartner representative who said I could help them with a big problem. 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 the blink of an eye across three new product lines and several hundred sales people!

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.

With the lesson learned from buying a home theater solution, here’s what we did to reshape Dell’s outcome. First we broke down each major product into a set of problem probing questions. These questions come from analyzing the problems that can be solved by the new product, not the capabilities themselves. 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. It also lowers defenses. Its much easier for a buyer to acknowledge a problem than analyze a complex or expensive addition to their purchase.

As humans have evolved, we’ve developed pattern recognition for identifying problems, not solutions. We learned to identify a number of predators, feel discomfort with extreme temperature change, or stop at the edge of a cliff with very little coaching. The answers to addressing 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 incentivize 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 publicly 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 $15 Billion annual revenue contributor to their business. This is a prime 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 or up 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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There Are Two Types Of Prospects…

Mary runs a sales development team for a technology company based in San Francisco. She was previously employed by another customer of mine, so we had some positive working history. Her boss was breathing down her neck and demanding results. She asked me to listen in to phone calls her reps were making to identify the problem.

After listening to multiple calls by various reps, I codified their process into the following:

  • Hi, my name is <Name>
  • I work for <Company Name>
  • We are the leader in <Solution Definition>
  • I’m calling you today because <Ask>

I pulled her team together, wrote this list on the board, but made two changes. The first was that I put all of my information in the brackets, such as, “Hi, my name is Kevin Temple, I work for ESG,” and so forth. The second change I made was I added another step, “I help SDR’s who are frustrated by low hit rates, phone hang ups, and escalating pressure to improve results”.

Then I asked them one by one to vote for the one topic that would cause them to want to talk with me. Unfortunately for my ego, it wasn’t my name, my company name, or my consulting practice description; but I knew that before I asked the question.

Without exception, they all selected the added line, “I help SDR’s who are frustrated by low hit rates, phone hang ups, and escalating pressure to improve results”. When the realization sank in, I saw the heads slowly rise and fall with understanding. Then I asked them to apply the same thing to their prospecting.

Before you run full blast forward with this notion, I should explain there are two types of prospects;those that don’t know they have a problem that can or should be solved, and those that know they have a problem and are looking for a solution. In either case, the problem set is the key to getting their attention.

In the first category, the prospect is more likely to resonate if they are approached with a problem they would recognize. It turns out this is much easier than it may sound. I’ve found there’s a variation of Pareto’s law at play here; about 80% of prospects for any specific solution have a predictable overlapping problem set. It’s even stronger for prospects within the same market vertical. For example, one insurance company probably has a very similar problem set as the next insurance company. Its simply a matter of identifying the problem set.

My approach to the problem identification task is to make a list of the best capabilities of the solution/product/service, and then identify the problem that each capability solves. For instance, let’s say you sell services, or services that augment your technology solution. Most service capabilities include installation, customization, and training. There are typically three problems that connect to these service capabilities:

  1. Lacking enough resources to get the job done.
  2. The current resources lack the skill or knowledge to get the job done.
  3. The current resources would provide more value by working on core activities, not secondary activities like installation or roll out.

The objective is to use these problems as the interest generating topic. It may take a little trial and error to find the top three for your list, but in short order you can have a very succinct list of attention getting problems to use in your outbound prospecting activities.

As you recall, the second set of prospects are those that know they have a problem and are probably seeking a solution. These people tend to be the ones that have visited your website, downloaded a whitepaper, attended a webinar, read certain periodicals, and the like. They are actively identifying themselves as prospects. In essence, they’re saying “I know I have a problem, now I’m trying to find out who solves it better then anyone else.”

In this case, our objective is to use the problem set to either make our differentiators stand out, or expand the problem set to tee up our differentiators in other areas of our solution. In this second case, the process is the same. Make a list of your differentiated capabilities in all major solutions, then identify the problem each one addresses. The seller uses the problems that link to clear differentiators in the core solution, or differentiators that link to secondary solutions to expand the criteria. For example, one of my current customers’ provides solutions for identifying the origin for open source software code that ends up in a software product. Their attention getting problem probe might sound like this:

Almost all software developed today has open source software aggregated from outside sources. While many development teams understand there are legal licensing implications (core solution problem target) that can result in huge financial liabilities, many are not aware of the number of security vulnerabilities (expanded problem set to differentiate against lesser solutions) that are being introduced by this process.

When Mary’s group edited their voice scripts to leverage the most common problem set they address, their hit rate for conversations tripled, and their pipeline almost doubled within 30 days.

What are your salespeople using to get attention?

And do they identify which prospect type they are engaging?

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Do You Qualify a Prospect, or Create a Qualified Buyer?

When I started selling years ago, my first sales manager coached me to qualify an opportunity by asking if there was a budget allocated to my product or service. That was his entire definition of a qualified opportunity! Even worse, I was hired as specialist selling a new “revolutionary” product, so there were no budgets developed or allocated for my product. With his definition, not a single prospect I had targeted was qualified.

Since then, I have had the privilege to sell many more disruptive technologies that didn’t have the luxury of an existing line item in a budget. So I’ve developed a much more refined vision of qualification which doesn’t necessarily include a question about budget in the direct manner described above. My perspective is that qualification is a spectrum of potential positions. Ultimately, the best qualified opportunity is one that has just given you a purchase order, and anything less than that is somewhere on the spectrum of being developed into a qualified opportunity. I have a grouping of four buckets that help determine the level of qualification of the opportunity. I’ve organized it into a formula for making it easy to remember:

Customer Qualification = Vision x Impact x Power x Proof

Vision

The first checkpoint involves the level of synchronicity between the prospect’s view of their problem and our solution as the answer. In other words, do they view my solution as the best way to address their challenges and contribute to resolving a critical business issue? If they don’t view my solution as the best, or that it will address their challenges, or that it will contribute to resolving their current business issue, than this qualification component is weak. This also implies that I must confirm their view on these subjects as part of my qualification process.

Impact

The second component is directly related to their sense of urgency and priority for my sale. My objective is to develop or uncover the impact of taking action or not taking action in order to help the prospect motivate themselves to take action. If I don’t explore this dialog, I have hampered my ability to heighten their motivation to take action, and my ability to qualify their intent.

Power

Next is the stakeholder and authority aspect of a decision. The qualification of an opportunity is directly dependent upon the ultimate decision maker deciding he or she sees the impact of your solution as having a significant priority (See Vision above), and that it is the best solution to resolve their challenges and contribute to resolving a critical business issue (See Impact above). Qualification of this category also requires that the decision maker has discretion over funds and can allocate budget if none exists. Further, this category should also take into account the backing or opposition of the purchase by other stakeholders who can sway a decision maker.

Proof

Finally, the last bucket incorporates their decision process. Do I know their decision criteria? Have they verbalized when the decision must be made and why that particular time frame? Do I have these items confirmed back in some written form? The confirmation of the subject is the highest level of qualification for each individual category.

So how does this help a sales person sell more? The major contribution is to provide a guide. If the seller is setting out to answer the questions I’ve outlined, they will actually be doing a better job of facilitating a purchase. This reduces the contribution of “no decisions” to the outcome of a forecast in two ways. With this process, some opportunities can be moved from a “no decision” outcome to a winning decision, usually by helping to illuminate the connection to the impact and the current business issue. Further, disqualifying opportunities that have no chance of making a decision allows the seller to focus their efforts on opportunities that do have a solid chance of being won. It’s a tragedy to miss a perfectly good opportunity because the seller was focused on a deal that never had a chance of being won. That’s two losses in one.

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Turn a Boring Corporate Presentation Into a Compelling Sales Presentation

Mark was a former client of mine. I hadn’t heard from him for a while so I was pleased to get a message from him on LinkedIn. He was wrestling with a problem and asking for my opinion. He had recently taken on a new sales leadership assignment with a large multinational company. His team was not doing well. The were way short of achieving quota and their pipeline was poor. His analysis indicated they could get the first meeting, but the second meeting was elusive. Upon further probing, I found they were using a presentation as a key part of their first meeting, so I asked to take a look.

It was a case of the unpersuasive corporate deck.

I’d like to share what I’ve learned about making a presentation more persuasive, but I should acknowledge it’s right in line with Aristotle’s work on Rhetoric describing Ethos, Pathos, and Logos. So if you have any college flashbacks, good or bad, you can thank/blame me.

Before I begin a summary of how I helped Mark and his team, keep in mind that a persuasive sales presentation is supposed to answer three questions for your audience. “Why Change?” “Why Change Now?” and “Why Us?” Your objective is to heighten their emotional perspective on the requirement for change, and lead them to your solution as the best option given their circumstance. Alternatively, a lack of persuasion translates to leaving it up to the prospect to find the motivation to change on their own. For those who may have forgotten, I’ll remind you of the saying, “hope is not a strategy!”

1. Problem Identification. People are motivated for their own reasons, not yours. A persuasive presentation should start with a focus on the problems they’re having in their business. (Not your company bio, or your client logos! See my post on Selfies). Within the first 3 or 4 slides, there should be a problem identification slide. This is where you get the customer to confirm the problems they’re experiencing in their business. It can be a list of common problems other customer’s have shared. It can be a “situation creates problems” visual, or it could be a blank slide with bullets reminding you to start a dialog about problems. Even better, blank the screen out and have a discussion (In Powerpoint, Ctrl B turns the screen black, ctrl W turns it white). You’ll be amazed at how many people wake up, put down their mobile devices and contribute.  Don’t forget to capture their input in plain view.

Some people have voiced concerns to me about “guessing” with the wrong problems. My answer is that if none of the problems you can solve resonate with the prospect, you should walk away from the engagement and find a prospect that does have problems you can solve. Further, it’s not necessary that all the problems resonate. Just enough to help them answer their first question “Why Change?” and compel them to share problems not listed on your slide.  I’ve also received push back on this suggested activity when the seller feels uncomfortable engaging in a subject that seems obvious to the prospect. “They know what problems they have!”, I’ve heard as an explanation. But in fact, they don’t know all of the problems they have, and they will be grateful when you point out problems that add to their perspective. (This is called delivering insight.) At a minimum, you get credibility points for demonstrating that you understand the problems they’re facing. More importantly, the list of problems becomes your long term motivational carrot and stick. (See item 5 below.)

2. A Compelling Story. This can be an anecdotal story about a company/person similar to your audience, an analogous story about some every day experience, or it can be an foreign land based mythical story. In the former, your story depicts another organization or person in a situation similar. More important is to describe the problems this other character was experiencing… you want them to relate to your character, and problems are their common ground. Then you describe how you solved the problem set and the outcome or payoff for the customer. I call this the Hollywood format, since it follows almost every movie script format ever produced. In the analogy or foreign land story, you are doing the same thing as the anecdotal story; you introduce a character ( your dog, or a giant in medieval times for example), you describe the problem (your dog won’t take his medicine, or the giant is terrorizing the village), you describe how the problem was overcome (your mother suggested wrapping the medicine in peanut butter, or the small child uses his slingshot to fell the giant), and then you draw out your point ( sometimes solutions come from collaboration, or fear can cripple grown warriors) and connect it to your message for the day.

Stories do more than illustrate the “Why Change?” question. They build rapport with the audience and they make you more accessible. They also last longer than your presentation. People can easily forget the details of your presentation, but many will remember a story for months or years. If you can remember the details of a book or movie that you haven’t viewed for years or even decades, you are your own proof that stories have staying power.

3. Build Anxiety. If you’ve done a brilliant job of answering “Why Change?”, your next goal is to answer the question “Why Now?” Your audience needs to be compelled to take action. Although some people are motivated by opportunity, a vast majority are motivated by fear or pain. Your job is to get the audience to experience the pain of not taking action. This can be achieved with a Provocative Question, another story with a disappointing outcome, or a third party prediction.

A Provocative Question is designed to tap the personal ramifications of not changing. It might sound like, “So if the your team misses their milestone delivery date, how does that impact you personally or the group?” Your objective is not necessarily to get the answer, in fact, you may already know the answer. Your objective is to get them to experience the outcome while they are sitting in front of you. Ideally, the receiver thinks through the outcome and comes to some conclusions in their mind such as… “I won’t be getting my bonus.” or, “I’ll have to dust off my resume”, or “There will be some late nights and weekends for everyone.” Basically, you want them to move from the logical reasons for change to the emotional reasons for change. The best answer you can hope for is the prospect asking you, “so how can you help us with that problem?” ..teeing up item 4 below!

If you decide on another story, the structure is the same as above – identify the character, describe the problem – however, now you reveal the lack of action, or a different decision (such as they tried to solve it themselves). Then you describe the outcome. Only this time its pain oriented. Loss of money, competitive disadvantage, personal heat from their boss, etc. Help the audience to feel the ramification for not taking action, or for taking the cheap way out.

In using a prediction, its best to refer or cite an outside source that has credibility. “Gartner anticipates that 40% of businesses will double their cost of application support every year without the use of analytics.” The objective is to get them to experience a pain in the future that has been verified by a credible third party. On a side note, I’ve witnessed lots of corporate presentations with compelling quotes sprinkled throughout. Unfortunately, most presenters fail to leverage the quote, or simply read it aloud. Try engaging the audience around the quote. You might ask, “so does this quote seem appropriate to your situation?” Or, “do you think that number is high or low?” You want to get them to live in the moment of the quote and tap into their emotional drive to help you with your objective to act now.

4. Connect Your Differentiators To Their Problems. Now we want to answer, “Why Us?” When you reach the section of your presentation where you are describing your solution, you want to call out the problem you captured earlier that connects directly to the capability you’re about to disclose.  If you captured their input of the problem definition on a white board or a flipchart, go to that location and circle the problem that your capability addresses. If you captured the list in your notebook, verbally call out the problem again and even better, identify the person who brought it up. “Mike, were you the one that said there was a problem with redundant processes for the team? (Mike nods agreement.) Good, next I want to show you how we address that better than any other solution available.” Make sure you identify when your capability is unique or at least does a better job addressing problems than other solutions, including a DIY solution.

5. Follow Up The Presentation With A Recap And Confirmation Of The Problems. When you captured the list of problems, you weren’t just being a good listener or providing insight by bringing up problems they weren’t aware of; you were also planning for the future. As soon as you leave your presentation, the attention of your audience is pulled elsewhere. It might be dreading the upcoming commute home, or it might be getting back to a project deliverable that’s late. What ever it is, there will be many distractions and they diffuse the power of your persuasive presentation by overwhelming the participant with other thoughts. As days go by, your compelling presentation is lost in the muck. Your job is to remind them of the emotional reaction you created for them. When you type up your follow up thank you email, recap the problems (and impact) you uncovered and seek their buy in that you heard it correctly.

“Hey Mike, thanks for sponsoring the meeting yesterday. Wanted to make sure I shared the input I gathered in case you need it for internal discussions. The group identified three major problems 1) redundant process, 2) no way to understand how their product was being used when bugs occurred, and 3) having to reinvent the wheel for each operating system. They said this was driving up costs by 30%, and delaying releases by 2 months or more (leading to disappointment upstairs). Let me know if I missed anything important or if I’ve portrayed the situation correctly.

Your objective is to remind them of their reasons to change and to change now. But don’t stop here. When they ask for demonstration, start the demonstration with another recap and confirmation. One reason to do this is that things can change, but more importantly, you want to refocus them on Why, Why Now and Why Us. When they ask for a pricing proposal, include the problem list and impact in your cover letter. Remind them again of the reasons to change and the priority for doing it now. (It also helps to sell for you if a unknown stakeholder has to sign off and you lack access to them directly.) Think of it as the movie trailer that gets you excited about seeing a movie again.

Summary

When you master the persuasive presentation format, you’ll see shorter sales cycles, lower no decision outcomes, and better access to other stakeholders. After a great presentation, some will want you to repeat the presentation to their boss, or their boss’s boss. On the other hand, if you deliver the same boring presentation as the next sales person, they will want to shield their boss, take their time sifting through other alternatives, and let other distractions mask the urgency of the initiative.

Lastly, back to the story I started with…We retooled Mark’s presentation with this set of guidelines, and he tracked a 87% increase in pipeline in 90 days. Now we’re working on improving their close ratio. 

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Forecasting Accuracy: How to Clear the Fog

In the 1966 film Blow-Up, a London fashion photographer named Thomas unknowingly documents a murder. At first, Thomas doesn’t notice the crime hidden in his photograph. The blurred background accentuated by shadows and foliage make the scene invisible. After he repeatedly blows up the image, zooming in over and over again on what seems to be a minor feature, is the disturbing truth revealed: a terrible crime has been committed and the photograph has made Thomas a witness. The most important thing in the photo had been concealed in the background all along.

I mention this movie because it reminds me of forecasting. Many times the reason for buying or not buying a solution are in plain site, but hidden by the shadows of other priorities. 

One of my client companies sells software to aid in the development of software. They had asked me to analyze a set of loss and no decision outcomes to understand if there were any trends they could get an upper hand on. I first interviewed the sales teams, then I reached out to the buyers for each opportunity. In one particular case, the sales person classified the no decision outcome as a lack of budget. When I talked to the buyer, he told me that the company was growing so fast, and hiring so quickly, they ran out of parking space. It turns out the CEO redirected any excess funds to build a parking garage, pushing many other purchases on to the back burner for sponsor and seller alike.

In this case, the hidden “crime” was actually in plain site. However, to reveal it, the seller needed to ask a few more questions. When I was a young sales person working for a technology software company, I had the pleasure to take Rick, our Senior VP of Worldwide Sales on several high level relationship building meetings with my most important clients. I noticed in every meeting Rick started each conversation by asking about the client’s business… “how’s business?” he would ask, or “I read about the recent acquisitions your company has executed, how are those working out?”, on occasion, being even more direct, “I understand your CEO has announced company wide cost cutting initiatives, how’s that affecting your team?” 

My reaction to his questions varied from wondering why he would ask a senior technical leader about business, to kicking myself for missing the elephant in the room when he had obviously done his homework better than I did. 

After one particularly hair raising insight gained from one of his broad, “how’s business going” questions (my client revealed a merger pending with one of our other customers who had a much better pricing arrangement with us), I began to appreciate the value of his line of questions. He was purposely trying to uncover the priorities of the client both hidden and in plain view. In most cases, the answers provided gave me better insight into the forecast likelihood of the opportunity, both good and bad.

The current business issues of your customers will dictate their buying behavior. When the sponsor goes to the funder for sign-off, the current business issues that have his or her attention will influence their desire to fund or not fund a purchase request. For instance, cost cutting initiatives will put most purchases on hold, while prioritizing purchases that can save additional costs in other areas. A recent merger announcement can also put purchases on hold until the dust settles. Other business issues like changing competitive landscapes,  or changes in federal regulation could be positive for many selling situations. Rick taught me to evaluate my selling opportunity against the current business issues of my prospect to get a better insight on the forecast likelihood of every opportunity.

Kevin Temple guides sales teams to be more agile and improve revenue outcomes. He can be contacted at kevin@enterprise-selling.com. 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.

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One Reason Buyers String You Along: And How To Turn It Into Your Advantage

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 kevin@enterprise-selling.com. 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.

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Six Buyer Questions Relevant To Every Culture

Years ago, I worked for a great sales manager named Pete who told me selling was different in different parts of the country. He grew up in New Orleans, while I was from Los Angeles. After I teased apart his perspective, I came to understand his point was that customs are different. For example, he would have a hard time closing a large sale in the south if he failed to take a client out for dinner. Whereas, for me on the west coast, getting a buyer to dinner is a challenging task and not usually viewed as a requirement. My clients in Japan have told me that getting a meeting with a senior buying executive in their culture requires having a same level executive or higher from the selling side. In many other cultures, that helps, but its not a requirement. After having conducted business in over 40 countries around the world, I have no argument with Pete’s observation, however, what I have found is that buyers have consistent behaviors regardless of culture or customs. (As I write this article, I’m in client’s office near  London, reviewing opportunities from Russia to South Africa and places in-between.)

Over the years, I’ve literally asked thousands of people from around the world to share the questions they would need answers to before funding a large purchase. Translated from many languages, the core questions are universal among buyers around the globe regardless of culture:

  1. Why should we change?
  2. Why now?
  3. Why this alternative?
  4. What’s the impact?
  5. Who does it impact?
  6. Who can we trust?

The first question is really about impetus. It includes the identification of people/process/technology problems and the connection to the current business issues the executive staff is trying to overcome. When connected together, they form an effective argument for change. Left unconnected, the argument for change can be overshadowed by more effectively articulated options – resulting in no decisionoutcomes for the poorly articulated purchase requests. I’m reminded of a sales person who told me his software sale was delayed because the client wanted to build a parking lot. In that case, someone successfully argued the scaling of the company was being hampered by a lack of employee parking, easily overshadowing the weak plea from engineering for a better code development platform that was not connected to the scaling issue, but could have been.

The second question is about aligning priorities. This is achieved by connecting the people, process and technology problems identified to a business issue that has the attention of the executive staff. If it connects to a business issue that isn’t on the minds of senior leaders, it’s at risk for being delayed until the business issue elevates in priority (if ever).

Weighing alternatives is a multifaceted question. At first glance, it seems like a simple differentiation question, which it encompasses, but can go even further. As pointed out above, it can also be about alternative uses for funds. Or it can be a “make versus buy” question. And lastly, its a test of the current approach, assessing if they can get by with the current solution, albeit potentially lacking. 

Impact is about value.  The return on the investment will need to align with the metric that has their attention, so it’s context relevant. While one company may be focused on improving revenues, the next company may be more concerned about reducing costs. Developing a value proposition that will motivate action requires attention to the customer’s current business issues as the focal point, and it’s their metric, not the seller’s metric that matters.

“Who does it impact” also has multiple levels. The first implication is about sizing the solution. For example, does the problem set impact one person or a hundred? The second implication can be a funding question. For instance, if it impacts sales and marketing, who is going to pay for it? And finally, there’s a political implication; if it does impact sales and marketing, can they collaborate to succeed with the new solution.

Lastly, the question of trust comes in many forms and includes many time consuming activities on the part of buyers and sellers. On-site product evaluations are educational for the buyer, but overall they are a test of trust and credibility. If your product has severe bugs or other quality problems, your credibility suffers and so does the trust.  Reference checks and now social media posts are a test of trust and credibility. Your existing customer list is a testimonial to the trust others have put in your company. Most buyers execute multiple credibility checks to evaluate your trustworthiness.

Although you may have thought of a question that’s not on my list, I’ve typically found its either simply stated differently but aligns with one of the questions above, or its a packaged combination of two or more of the core questions. For example, “what’s the ROI?” is really a concrete example of the “impact?” question. And, “why should we buy the premium provider?” is really a combination of “why this alternative?” and “whats the impact?” providing a means to weigh the added value of their differentiated capabilities. (But please add yours to the comments below if you’d like to dialog about it!)

I’ll leave you with one last thought. This list is potentially the most important list a sales professional can keep front and center. If you are helping your buyers to answer these questions effectively, you are enabling them to buy faster, buy bigger, and insure a measurable return to their business. Conversely, if you are not helping them answer these questions effectively, you’re leaving your opportunity open for risk. Just one unanswered question on their part can lead to a delayed decision, a no decisionoutcome, a loss to a competitor or a loss to a better use of funds.

Kevin Temple guides sales teams to be more agile and improve revenue outcomes. He can be contacted at kevin@enterprise-selling.com. 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.

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How To Differentiate

Years ago, I worked for a start up company that carved out a niche in the electronic design automation field with a new product. As the only player in this niche it was like shooting fish in a barrel. It seemed like all I had to do was show up and demonstrate the product, then collect purchase orders. (Ok, it was tougher than that, but it was more about need creation than competitive differentiation.)

When one of the big players in the overall design automation market decided to compete with us, our general consensus was we were three years ahead of them on development, so they couldn’t be much competition. Wow, were we wrong!

One by one, all of my largest target customers started talking about the offering of this particular competitor. Not one to stand around, I did my homework on their product. “But…” I would say in my defense, “they don’t have this capability, or that capability.” Unfortunately for me, it seemed like no one was listening. I started losing orders and growing in frustration.

Then one potential buyer helped me out by accident. When he brought up the competitor’s name, I listed a number of important capabilities they were lacking. His response, “So what, why would I care about those capabilities? Their base product does everything I need, and it’s less expensive than yours.” I pointed out several problems he had identified in his current development process, then I connected those problems to my unique capabilities, challenging him to decide if he could do without solving those problems. Long story short, he bought my solution at a 50% premium over the new contender.

His basic question of why should he care, helped steer me to the most important part of the conversation; his problem set. Then it dawned on me, the key to differentiation is identifying the problem, not the capability.  I repeated this process with every new prospect and turned my win ratio dramatically in the right direction.

Coincidentally, during the same time frame, I witnessed this connection from a buyer’s perspective for myself.

On a lazy Saturday afternoon, I took my (then) four year old son along with me to run some errands. I had recently purchased a new television, and now my focus was on a surround sound system to compliment it. We stopped in the local Best Buy store, only to find too many choices. There were probably 15 different models on display. I was trying to make heads or tails of the differences by reading the summary spec sheet listed next to each one, while my son was getting antsy to leave. They had the less expensive models close the floor, with the more expensive models placed at eye level. I was bobbing up and down making notes on a piece of scratch paper, but it was too much information to process especially with my impatient son in tow.

The sales attendant stepped up to me and asked, “trying to figure out which one is the best value?” I sheepishly nodded my head, and he added, “I can help you with onequestion.”  He looked down at my son, then looked back at me. “Do you ever envision yourself entertaining guests on the patio with some nice background music, while the kids are in the family room watching TV?” I nodded in light of the obvious answer. He pointed to one system on the rack and said, “there’s only one system that will let you do both at the same time.” He got me. I walked out with the most expensive system in the store.

The lesson I learned from these two experiences is that no matter how many differentiators you have, the only ones that count are those that can be tied to problems the buyer is, or can anticipate, dealing with in their environment.

If you are a new salesperson, or you’re dealing with some formidable competition, here’s a simple exercise you can run on your own, or even better, with your whole team. Make a list of your top five differentiators for a particular product or solution. Then make a list of the customer problems each differentiated capability can address. Try to word the problems with problem sounding adjectives. Words like, “difficulty with”,  “lacking”, “frustrated by”, and the like. This will insure that you are articulating the problem and not just rephrasing the capability.

For example,

(Capability) I teach sales teams how to differentiate more effectively.

(Problems to surface) Are you having difficulty winning against lower priced competitors? Are you frustrated by your win/loss ratio in a crowded market? Are your new product introductions taking too long?

In your next discovery meeting, if the buyer doesn’t bring up the problems you’ve identified, try to surface them yourself, just like the Best Buy sales person did for me. When you get to the capabilities part of the discussion, connect each important differentiator back to a problem you discussed earlier.  I’m confident you’ll find more buyers who resonate with your differentiators.

Kevin Temple guides sales teams to be more agile and improve revenue outcomes. He can be contacted at kevin@enterprise-selling.com. 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.