Grow Your Training Business

How to Get Face Time with Prospects

This is a great article from the Wall Street Journal that should be read by anyone working to build a training business... 

By MIKE MICHALOWICZ

Nobody likes getting a cold call from a salesperson. The last time I received an unsolicited sales call I was annoyed and uncomfortable. The very last thing I wanted to do was buy something from a stranger who had just wasted my time.

About the Author

Mike Michalowicz is the author of "The Toilet Paper Entrepreneur." He is an advocate of a business philosophy by the same name, believing the greatest business successes come from underfunded, inexperienced entrepreneurs. His website is www.ToiletPaperEntrepreneur.com.

So if sales calls are out, how do you get key decision makers to give you the time of day? Simple: Ask them for advice.

Most people love giving advice because it puts them in the role of expert. By asking prospects for their feedback on your product or service, or your industry as a whole, you're telling them, "I see you as an authority, someone with valuable knowledge, someone I can learn from." Who can resist that? Not many. Even those who would rather not give you advice or don't have the time to sit down with you will at the very least be flattered by your request, and may hand you off to someone else on their team.

There is a right way and a wrong way to use this strategy. First and foremost, your question, your "ask," has to be genuine. While this is a shortcut to getting face time with prospects, it's not a ploy. You must never pretend to want their advice; you actually have to want it, appreciate it and, if warranted, use it. Prospects will be suspicious of your motives right from the start, anticipating your big sales pitch. And that's why you're never going to pitch, sell or even coyly ask if they might someday be interested in working with you.

Everett Collection

Alan Arkin plays salesman George Aaronow in the 1992 film Glengarry Glen Ross.

The ask is much easier if you're following up on a referral. So before you try this, reach out to your network of personal and professional contacts and ask for referrals to people similar to your prospects. Let your contacts know you are looking for honest feedback about your product, service, idea or industry – and nothing more. You'll want to cold call the people on your wish list of ideal clients eventually, of course, but it's best to start on the path of least resistance.

The strategy is simple. First, call one of your prospects and make your request. You might say, "I know I'm asking for something big here, but I'm trying to improve my services/product, and I'm not sure if I'm there yet. I don't know what I don't know. I have nothing to offer or to sell. May I buy you a cup of coffee and simply get some advice from you? It won't take longer than 15 minutes."

Next, prepare a short list of specific questions for which you genuinely want their insight. You might ask, "What would wow a company like yours?" Or, "What could I do to make this product/service better?" You could also encourage prospects to share their frustrations with you. When you ask, "What is the worst thing about your industry," you not only learn what not to do, you also gain a starting point for innovation. If a prospect is frustrated by something your competitors do or don't do, you can do the opposite, thereby solving the problem and filling a void in the marketplace, which is always a good thing.

More Mike Michalowicz

How to Hook a Prospect? Check Its Job Ads

Prospects for Pennies: Finding Gold in Abandoned Ads

How to Master the Art of Negotiating Price

Take notes. Keep the meeting to 15 minutes, unless your prospect wants to keep talking. And no matter what, never, ever ask for the sale. Don't ask if a prospect would be interested in your product or service. And don't say you'll follow up later. Just thank him or her profusely, end the meeting and go on your merry way.

This strategy doesn't just get you in front of key decision makers. This strategy is a litmus test for your company. If a prospect wants to use your service or buy your product, you'll know. He or she will just ask. And if the prospect doesn't ask, you haven't made a strong impression, which means your next best step is to go back to work and improve your offering. Refine it, get advice from more prospects, and keep refining it until someone asks you to carry on the dialogue.

When a prospect says, "I want to learn more about this," or "Let me know how this works out," you know you've struck a chord and you're on to something. And when a prospect says, "How can I get this (product or service)," you know you've perfected your offering. At that point, the sale is inevitable.

Are You a Counterfeit Prospector? (Part 3 of 3)

Assuming you have worked to develop a high level of prospecting motivation and actually have a propsoecting plan in place, what do you actually say to the prospect? Most actual prospecting activity begins with an initial telephone call, or in some cases, an initial meeting where the salesperson “drops by” without an appointment, hoping to introduce themselves to the prospect.

In either case, the best way to begin is with a brief opening BENEFIT statement, followed by a carefully planned and delivered question that tests for receptivity.  Whether prospecting on the telephone or in person, here are a few examples of opening benefits statements and tests for receptivity that can open a call nicely:

"Mr. Molitor, our company is committed to delivering solutions that improve the motivation, morale and performance of both students and educators, but I obviously don't know specifically how we could best be of service to you. Could I ask a few questions to help us both quickly decide whether or not you and I should talk in more detail?”

Here’s another example:

"Mrs. Watkins, as the industry leader, our company is in a unique position to help you enhance the morale, motivation and performance of both your students and your faculty. And the fact that we have local facilities means your working with a national, reputable company, and you also have the convenience and personal attention of a local business. Could I could ask you a few questions to help you and I both decide whether or not we should talk in more detail?”

This approach works well because you gain control without being pushy as you complete three critical steps: First, you get the prospect’s attention with a positive benefit statement, then test for receptivity by politely asking permission to ask a few questions. Second, you ask carefully-crafted questions to determine need, decision-making ability and financial potential. And third, you advance in small steps, requesting only a modest time commitment from the prospect – making it easy for them to say “yes” to the next step.

Now, most often, with this approach, you’re going to have a prospective customer agree to a few questions.

Occasionally a prospect won’t be willing to answer questions, and we’ll deal with methods for handling that situation in a moment, but for now let’s assume that the customer agrees to a brief conversation with you. So you need to have a few questions prepared.

And, while we know that eventually there are many, many things you need to discover about the prospective customer, initially you want to focus on three areas. Asking questions to determine: Need, Potential and Decision Making Authority.

Determining the degree to which the prospect has a NEED for your product or service is pretty straightforward, but you don’t want to make the common mistake of asking overly direct questions. Because at this point the prospect isn’t usually highly motivated to give you the information you need to sell them, so asking for that information needs to be done subtly and graciously with carefully crafted questions.

You also want to avoid asking overly OBVIOUS questions. Some salespeople call these “duh” questions, because, even if the customer answers them, what their really thinking is “duh, what do you EXPECT me to say?”

“Mr. Jones, this is George Plotter with Globetron, if I could show you a way to save money and improve your project at the same time, could you be interested?”

“Mrs. Wilson, are you interested in way to have better service, with fewer headaches and hassles?”

Asking obvious or overly direct questions can make the prospect feel uncomfortable, and make the salesperson look, well – like a typical salesperson.

The ability to ask intelligent, relevant questions at the right time is THE most important prospecting skill. Carefully crafted questions accomplish the following three important sales objectives:

• Controlling the sales process without appearing aggressive or pushy.
• Getting the prospect’s attention and require them to “engage” with you mentally.
• Building comfort and rapport with the prospect.

Remember, the key to an effective prospecting call is to open with benefits, gain permission to question, then ask carefully crafted questions to determine need, potential and decision making authority.

Here are the basics of an effective prospecting plan:

• Commit to a specific prospecting time each week.
• Be prepared with a list of names before you start calling.
• Get organized BEFORE your prospecting time.
• Work without interruption during your prospecting time.
• Consider prospecting during off peak hours.

Part 1

Part 2

Are You a Counterfeit Prospector? (Part 2 of 3)

The first step toward developing greater internal prospecting motivation is to identify and replace any limiting beliefs you may have about the growth potential of your business. Have you convinced yourself that robust growth just isn’t possible in your territory? If so, that belief will stop you cold.

How do you decide what the growth potential of your territory is? Counterfeit Prospectors generally just look at what they’ve done in the past, and what others in the same region have done, and to them that represents the territory potential. As long as their growth rate isn’t too far out of line with historical averages, they feel pretty good about their results. But iternally motivated prospectors don’t compare their results with past performance. Instead, they compare their results with the true territory potential.

The past does not equal the future and historical growth rate IS NOT a true indicator of territory potential. How much business could you be doing if you had 100% market share, with EVERY prospective customer buying the highest-margin products? Whether or not that goal is achievable, it does represent the true POTENTIAL of your territory. And internally motivated prospectors are determined to achieve as much of that potential as possible.

Take a close look at your beliefs regarding that growth potential of your territory and ask yourself if you’ve been basing your growth assumptions on the past, rather than the true potential of your territory.

The second step toward developing greater internal prospecting motivation is to find YOUR reasons for wanting better prospecting results – not your sales manager’s reasons. Not Jostens’ reasons. YOUR reasons. If you’re money-motivated, then set a financial goal and decide how you’ll reward yourself when you achieve it. But there may be other factors that are more motivating to you: competitive drive, recognition, pride, etc. You’re the expert on you, so find a compelling REASON for better prospecting results that works for YOU.

The third step toward developing greater internal prospecting motivation is to develop a consistent prospecting plan that you know you can execute throughout the rest of your selling career. Not a one-time shot, but a consistent prospecting approach.

 

Developing a consistent prospecting plan that you can live with for the rest of your selling career can have an enormous impact on your business. Because in addition to increasing your actual prospecting results, it also helps keep your selling skills finely tuned. The old saying “use it or lose it” applies as much to selling as to anything else, and whether you realize it or not, if you spend most of your time with current customers, you’re likely to lose some key skills: Asking tactical and strategic questions, identifying and confirming needs, handling stalls and objections, etc. Salespeople who are always actively prospecting, on the other hand, have to use these skills every day, which keeps them better prepared to work with prospects AND current customers.

So how do you develop a consistent prospecting plan? First, commit to a specific prospecting time each week, and mark in on your planning calendar just like any other important event or meeting. You may set aside 30 minutes every weekday, or a larger block of time one day a week. The amount of time and the specific schedule is up to you, but 2 to 4 hours should be the MININIMUM.

Second, be prepared with a list of names before you start calling. Not being prepared with a list of names will force you to devote much, if not all of your prospecting time to finding the names you need. You’ll have been busy, and feel as though you worked hard, but you will have made few calls.

Third, be organized. Use modern technology to maximize the effectiveness of your prospecting and follow-up. The contact management system you choose should allow you to record a follow-up call three years from today with no more difficulty than it would be to record one for tomorrow.

Fourth, work without interruption. Don’t take incoming calls (except from prospects) and don’t schedule other meetings during your prospecting time. This helps you to take full advantage of the prospecting learning curve. As with any repetitive task, the more often you repeat the task during a contiguous block of time, the better you become. Prospecting is no exception to the rule. Your second call will be better than your first, your third better than you second, and so on. You’ll find that your prospecting technique actually improves over the course of your prospecting period.

Fifth, consider prospecting during off peak hours when conventional prospecting times don't work. Conventional cold calling hours are between 9:00 AM and 5:00 PM, but when those hours are not working for you, consider switching or supplementing your prospecting time by prospecting during off peak hours. Some of your best work will be done between 8:00 AM and 9:00 AM, between 12:00 PM and 1:00 PM, and between 5:00 PM and 6:30 PM. And vary your call times. We are all creatures of habit, and so are your prospects. In all likelihood, they are attending the same meeting each Monday at 10:00 AM. If you cannot get through at this time, learn from your lack of success and call this particular prospect at other times during the day or, on other days.

And one final suggestion: Make your prospecting calls brief. The objective of the prospecting call (either on the telephone or in person) is to get the appointment to have a more in-depth discussion. You certainly will need to share some information with the prospect initially, but if you get bogged down in a detailed conversation you may very well talk yourself out of the chance to have a more substantive conversation.

Part 1

Part 3

Are You a Counterfeit Prospector? (Part 1 of 3)

The search for new customers and increased business from current customers should be a never-ending part of any successful selling career, but prospecting is hard work, it’s sometimes uncomfortable, and not always a whole lot of fun. So it comes as no surprise that many salespeople stop prospecting as soon as they can, which is usually when they reach their financial comfort zone.

A recent study of more than 800 salespeople in 27 industries indicated that prospecting activity diminishes dramatically as soon as salespeople are able to describe their financial situation as “comfortable” or “very comfortable”. For many salespeople, prospecting is a lot like going to the health club to exercise. You know it’s good for you, and you know that if you do it consistently, the results will be positive, but you still don’t do it as often as you should.

There are three common prospecting “profiles” among salespeople: a) The Non-prospector, b) The Counterfeit Prospector, and c) The Internally Driven Prospector.

The Non-Prospector is easiest to spot. Because they don’t prospect. Period. They may not TELL you that they’re not prospecting, but they decided at some point, either consciously or unconsciously, that the pain associated with prospecting just wasn’t worth the potential rewards. Much like the person who doesn’t bother even GOING to the health club anymore, because it just isn’t worth the effort.

The Internally-Driven Prospector is almost as easy to spot. They don’t need a sales manager or anyone else to motivate them to prospect. Their prospecting “radar” is always at work, scanning for potential business. Even though prospecting may not be their favorite activity, an intense desire to grow the business is their dominant driving force. Like the athlete who exercises daily, without complaints or excuses, because of a strong personal motivation to be fit and healthy.

The Counterfeit Prospector, on the other hand, is often very difficult to recognize. They usually APPEAR to be prospecting regularly – making initial phone calls, asking for referrals, following up on leads, meeting with potential customers, etc. – but their actions are driven externally, by a sales manager, financial pressure or some other external factor pushing them to prospect. They do what they know is expected of them, but their heart isn’t in it.

Counterfeit Prospectors often don’t even recognize themselves, because they ARE generating prospecting activity. Their sales reports look good. Everything seems fine, except for the actual growth rate of their business, and they can point to many other factors dampening growth potential. But because they lack a true internal drive to prospect, they often spend time VISITING with prospective customers, thinking that this counts as a prospecting call. They make phone calls to prospects to “check in” and “touch bases” and “see how you’re doing”. When introducing new products to a current customer they don’t passionately and professionally ADVOCATE the new product. Instead they call on the customer and “run it up the flag pole” to see if it flies.

When Counterfeit Prospectors spend time VISITING with prospect, they tell themselves they’re prospecting, and they believe they are, but in reality, they’re just hanging around, hoping for low-hanging fruit to fall off the tree. And occasionally some does, so they feel good about their efforts.

Like the person who goes to the health club regularly, but spends more time in the sauna than actually exercising, they feel good about what they’re doing – look at all that sweat! – but ultimately the results speak for themselves. Now, since they often don’t recognize themselves, is it possible that YOU are a Counterfeit Prospector without knowing it? Answer the following questions.

• Is building and maintaining strong personal relationships with customers the key to your selling success?
• Would you describe your current financial status as “comfortable” or “very comfortable”?
• Is your business growing LESS than 15% ANNUALLY?
• Do you have friendly relationships with many prospects you’ve called on numerous times, without generating any business?
• Is maintaining and strengthening your CURRENT business relationships more important than developing NEW business relationships?

If you answered “yes” to three or more of the questions, it’s quite possible that you’re a counterfeit prospector. This doesn’t mean that you’re not prospecting at all or working to generate new business. But whatever your prospecting activity level, you may not have the internal drive necessary to be a truly effective prospector. And learning new prospecting skills isn’t necessarily the answer, because you probably have the skills – what you lack is internal prospecting motivation.

If you take a hard, honest look at yourself and realize it’s possible that you might in fact be a Counterfeit Prospector, does that mean you’re a hopeless case? Of course not. In fact, identifying motivation as your key prospecting challenge is a first huge step toward becoming an extraordinary prospector. Because you CAN develop greater internal prospecting motivation. And when you DO develop a high degree of internal prospecting motivation, backed up by an effective prospecting plan, you’ll find that you’re prospecting calls begin to consistently produce RESULTS, not just activity.

3 Steps to Increase Your Internal Prospecting Motivation

1. Identify and replace any limiting beliefs you may have about the growth potential of your business. (The past does not equal the future and historical growth rate IS NOT a true indicator of territory potential).
2. Find YOUR reasons for wanting better prospecting results – not your sales manager’s reasons. Not Jostens’ reasons. You’re the expert on you, so find a compelling REASON for better prospecting results that works for YOU.
3. Develop a consistent prospecting plan that you know you can execute throughout the rest of your selling career. Not a one-time shot, but a consistent prospecting approach.


Part 2

Part 3

 

"Suck It Up" is Not a Strategy...

But sometimes it is good advice.

This blog is dedicated to stories of individuals who have managed to drive sales growth during tough economic times. And most of the examples we cite have reinforced the perspective that it is rarely one single good idea or strategy that works, but instead the most successful salespeople generally employ a broad range of new ideas, experiments, messages and strategies. Some work out exactly as planned. Some flop. And some are staggeringly effective beyond anyone’s expectations. And in the excitement of sharing this bounty of innovation and out-of-the-book thinking, I must admit I have tended to ignore one of the simpler solutions available to all of us: Just suck it up and work harder.

I have not just ignored this solution. I have actively derided it because I have seen too many salespeople and sales leaders fail because that was their only solution. “Suck it Up” is not a strategy. “Work harder” is not a plan. But I was recently reminded of the raw value of exceptional effort when I met Lavar Manchek, who works at Javana, a small coffee shop in South Florida.  This area of the country had been experiencing a housing-driven downturn at least a year before the rest of the country.

Levar was a real estate agent, had a nice run of business for several years, but when the Florida market tanked, his career plummeted with it. “I went for almost four months without selling a single home. No income. No unemployment insurance. Nothing. Which wiped out my savings, and I ended up borrowing money from my parents,” he says. 

He has three children, and his wife was working full time at a Javana. There was an opening for a part time position at the shop, working a different shift than his wife. Out of desperation to bring in even a small amount of cash, he took the job. “I hated every minute of it,” he says. “I had a bad attitude, and it showed. One day the manager of the shop sat me down and said I was about to be fired unless my attitude changed immediately.” If Levar had felt low before because he was working a job he felt was beneath him, being fired from that same job for poor performance was even worse. “My manager was almost ten years younger than me, but she said something very smart,” he remembers.

“If you are going to do this job, then do it, “the manager said. “If you’re not, then go somewhere else and do that job, whatever it is. But don’t waste your life and someone else’s money pretending to work someplace you’re not.” 

Levar’s wife worked a different shift at the coffee shop, which allowed them to take turns watching the kids. But she still heard about his bad attitude from other employees. He came home from his chat with the manager to find her both angry and scared. “We need the money,” she said. “So I don’t care if you think this is beneath you. If it is, then it must be beneath me too. Unless you think you’re better than I am.” Her last words out the door as she left for work were “This job is not beneath me. Putting food on my kid’s table is not beneath me. Or you. So be a man. Suck it up.”

 It was tough talk. But apparently it was what he needed. From that day forward, Levar became a model employee. He worked hard, put in extra effort, and both employees and customers noticed. He stayed late, sometimes without pay when there was work to be done. He even took a second part time job at another coffee shop a few miles away, and again, he was a model employee there.

Both jobs eventually became full time, and he still tried to sell real estate on the side. “That was the hardest I ever worked,” he says now. “Two full time shifts at two separate coffee shops, my parents watching the kids when we both had to work. All I did was work and eat and sleep. Barely saw my kids or wife. But we were paying our bills,” he says with pride. And he did manage to close one real estate deal. After paying back his parents there wasn’t much left from the commission, but he kept plugging away.

As his attitude and work ethic shifted at the coffee shops, he found himself coming up with ideas to generate more business for them. A lot of the businesses in the area offered free coffee to their employees and customers. Several national vendors own most of this corporate coffee market, and the small local shops rarely even try to break in. But Levar got permission from Javana’s owner to try, so he started making sales calls. He quickly opened accounts with businesses in the immediate neighborhood. They were happy to support a small local business as long as the products, services and prices were equivalent.

The coffee shop owner agreed to pay Levar a commission on every business account he opened. Fast forward almost two years later, and today Levar Manchek is the Corporate Sales Director for Javana, with 8 salespeople covering all of South Florida. And while it has taken a lot of innovation and out-of-the box thinking to grow this business, none of it would have happened without that original “pep talk” from his manager and his wife.

• When I asked Levar what advice he would give to someone in this tough economy who has had to take a job which is a few steps lower on the corporate ladder, here is how he summarizes his perspective:
• If you’re going to take the job, then DO the job. Nothing is beneath you. Paying your bills and putting food on your table is not beneath you.
• Every job in every business has greater potential than most employees are able or willing to see. Look harder for that potential and be willing to do more than anyone else to achieve that potential.

You can work harder and longer and deeper than you are now. So do more. Think more. Be more. And eventually you will get more.

Quick Tip #2 - Prospecting Activity

Prospecting rule of thumb for a down economy – you will need to increase your prospecting activity by 300% to produce the same sales results you were achieving when the economy was solid. This of course can seem like an ominous number. Many salespeople think it is impossible to triple their prospecting activity. But if you understand that this is your objective you may be able to find creative ways to accomplish the goal.

Since salespeople tend to be very competitive, some companies are offering a special bonus to the first salesperson who manages to triple his or her prospecting activity for a given period of time. And when one salesperson achieves this goal, it shows all the others that this is an attainable objective. Not easy, but definitely possible.

A commercial printing company offered a significant bonus to every person on their sales team, including support personnel – but only if every salesperson tripled their prospecting activity for three straight weeks. This caused the entire sales force to work together to achieve the goal, which they did. The bonus was paid, and a whole new standard was set for the company in terms of prospecting activity.

A New Era of Uncertainty for Salespeople

First a reality check. Yes, times are tough for many people. And times may get tougher for many more. But it is not true that we are facing the “worst economic crisis since the great depression” as some of our political and business leaders are fond of saying. What we are facing is a difficult, uncertain economic environment, exacerbated by other global uncertainties. And the reason it feels like the worst financial crisis ever is because we are coming off of an extraordinary period of stability and prosperity. Many who have been selling for 12 years or less have never experienced a downturn like this. So for them, this is the worst they have experienced.

Perception is reality, and sometimes a self-fulfilling prophecy. In our interdependent, rapidly changing world, there are many uncertainties beyond our direct control:

• Global competition, both in business and geopolitics.
• Highly contentious national and local politics
• Climate change (whatever the cause) and diminishing natural resources
• Changes in our particular industries ranging from new competitors to new inventions
• Changes in our particular organizations ranging from downsizing to restructuring, to new leadership, to new people on the team.

So in the midst of all this uncertainty, where does an individual salesperson stand? Since this blog is dedicated to helping salespeople drive sales growth when times are tough, this is an important issue to address.

Stand Together and Stand Alone

During tough times it is important to have a solid support structure of family, friends and coworkers. But it is equally important that you stand alone; rely on your inner strength, don ‘t let the hysteria of the mass media affect your mental or emotional state, set bold and aggressive goals, then set about achieving them.

But how can we plan in the midst of such uncertainty? And how can we build if we cannot make plans? How can we set aggressive goals when we can ‘t even meet our minimal sales objectives? I don ‘t have a clear answer, but I know that this is our only option. Face into the chasm of doubt, create a plan and execute. Adjust instantly as circumstances change, and keep moving forward. 

More specifically, here are a few guidelines to help individual salespeople and sales organizations navigate through these troubled times:

Sales organizations must be ultra-flexible. During times like these, everyone gets to see what your real organizational values are, so the first step is deciding what will not change under any circumstances: What are the essential components of your sales organization ‘s values, mission, and identity? Don‘t be too high-minded unless you ‘re truly willing to live up to the soaring rhetoric.

Step two is evaluating everything within your organization for its change-readiness.

Step three is being vigilant about building change-capability throughout your sales organization: Make the necessary adjustments and reversals in policies; create new systems, practices, and competencies; discard anything and everything that doesn ‘t drive optimal performance within your sales organization.

 Step four is transforming sales organization around your high-performers. Build structure, processes and culture that works for them, not for the average masses.

Salespeople must be totally self-reliant. Don ‘t expect anything from anyone. You alone will create your destiny in this environment. So you have to learn. Grow. Develop new skills. Try new approaches. Work every day to adjust your sales approach based upon what the market is telling you. Every sale will be harder, and when you lose a sale sit will be easier to blame the economy. Don ‘t. Take full responsibility for every last sale. Not to beat yourself up, but to keep yourself mentally engaged. The moment you blame some outside force for losing the sale you stop working to “crack the code” on how you might have done things differently to win the business. You stop learning from that particular experience.=

 Your job is to make it happen, no matter what. You are the elite soldier on the front lines of the battle, and it doesn ‘t matter if the enemy has better weapons. Your job is to win. So fend for yourself aggressively. Stay fit and healthy. Sell every day. Keep your options open. Make no apologies.

 Sales managers must negotiate the competing interests of the organization and high-performing salespeople. It is the manager on the front lines who must roll up his or her sleeves and do the hard work of driving sales productivity and quality: Keep the talent pipeline full and then recruit and select the best talent for every position at every level. Get new people on board and up to speed very quickly. Identify and develop the best people and draw them into the organization ‘s core group. Coach, cajole, bargain, inspire, motivate, and reward. Engage in personal retention planning in order to keep the best people-one person at a time, one day at a time.

 Understand and accept that your role is difficult ; plenty of accountability, but probably not enough resources to ensure you can achieve your objectives. You have to figure out creative and innovative ways to make things happen while pushing uphill against corporate lethargy and trying to manage high-performing salespeople, who by their nature are unmanageable. But you do it because when you manage to orchestrate everything properly, it is a thing of beauty and you are able to drive amazing levels of sales productivity, even during tough times.

Why Should I Buy Now?

With an economy that is contracting and prospects for a near-term recovery diminishing, the ultimate question most of your clients and customers are asking themselves is “why should I buy anything right now?” And unless they have an immediate tangible answer to this question, they are not spending a dollar. They are putting all non-essential purchasing on hold, locking down budgets and closing their wallets or purses (either literally or metaphorically). And when they do have an essentially need, they are negotiating tougher than ever, knowing they need to squeeze as much value as possible from every dollar they spend.

It has always been an important role of the professional salesperson to provide buyers with compelling reasons to make a decision. And in today’s economy, this role is more important than ever. But to do this effectively in a down economy, a salesperson has to understand that the customer’s buying psychology has changed. A year ago, a salesperson may have been able to be successful emphasizing long-term benefits (or cost savings) of a product or service, and other factors such as:

• Higher quality
  
• Better service
  
• Pride of ownership
  
• Lower end-to-end (long term) cost

While these types of benefits are certainly still valid, they are usually not enough to drive a purchase forward in today’s down economy. Because clients and customers are in a defensive, protective and paranoid mode. So the benefits you are emphasizing need to speak directly to their fears. Here are the types of benefits that are resonating today:

• Save money now
  
• Reduce risk
  
• Improve job security
  
• Take advantage of the economic downturn

These four benefits are the strongest drivers of buying behavior in today’s economy.  A fifth compelling driver is to reduce stress, however it is not usually effective on its own. You need to combine it with one of the other four primary drivers in order to be effective. Here is a real world example of how shifting the benefits emphasis during a sales presentation has helped salespeople drive sales growth recently.

Business-to-Business Example

Roberta Hastings sells photocopiers and other office machines. She has been among the top salespeople for her company during the past 5 years. Her products are not the cheapest in the market ; in fact, they are among the most expensive. But they also incorporate the latest technology and productivity-enhancing features. One of the keys of her success has been her ability to work with business managers and purchasing agents to show them how her products improve employee productivity and job satisfaction while reducing long-term costs with regular preventative maintenance. She does a careful needs analysis and then links the client’s needs to these benefits.

However, Roberta admits that her approach began falling flat with business managers about six months ago. “They were still nodding their heads and agreeing with me,” she says, “but they were not executing purchase orders. I knew something was wrong, and at first my approach was to sell harder. I dialed up my presentation and emphasized those benefits even more. But the bottom line is that they just weren’t buying.”

Roberta could have easily convinced herself that with a tough economy, she would just have to accept that her business was going to shrink. Even her sales manager began talking in sales meetings about “just doing enough to survive and stay above water” until the economy turned around. But Roberta didn’t want to just survive. In fact she had recently purchased a new home and had planned on increasing her commissions by at least 10% in order to easily pay the mortgage. She tried a lot of new ideas and approaches over the course of several months, most of which did not change a thing. She did prospect more, so she had more leads in her pipeline, but she was still struggling with actually closing deals.

Then one afternoon she was making a presentation to a prospective client, and the purchasing agent seemed agitated. He was impatient not especially interested in her “pitch” as he called it. And finally eh interrupted he and said “Look, you seem like a nice lady. But I’m not interested in long-term efficiency right now. I’m interested in saving money now. Today.  And saving my own job. Period.  You got anything in your PowerPoint slides about that?” She didn’t.

As she was driving away, Roberta played through the presentation in her mind. As rude and abrasive as he had been, the purchasing agent also had given her a gift. His blunt words stuck with her. She went back to her office and re-engineered her sales presentation by asking and answering the following questions:

• For the customer who needs to save money today, what do I have?
• For the customer who is worried about his own job, what is my recommendation?
• For the customer who has a tight budget and is worried about the economy, why should he buy today?

She didn’t have immediate answers to these questions. But her sales manager agreed to discuss them at the next sales meeting, where the entire sales team brainstormed specific ideas and messages. They came up with a value proposition that focused on immediate savings, and built a presentation around short-term benefits. Here are some of the benefits she now presents to her clients and prospects:

• “In a tough economy like this there are always companies that need to cancel their equipment leases, even though there is a significant financial penalty. We end up with almost-new equipment being returned, which has a much lower cost structure for us. And if your company is in a position to make a purchase, you can end up with a significant cost savings as we pass that lower cost structure on to you.”

• “If your company is absolutely committed to no additional purchasing for the near term, it might make sense for us to enhance the preventative maintenance agreement so that we can make sure your older machines don’t break down. This would prevent you from getting into a stressful situation where a machine breaks down and you don’t have the budget to repair or replace it.”
• “Because the economy is so tight, we are offering an amazing financing option that will save you money, get you the best maintenance agreement at no additional cost, and ensure that you are able to operate effectively through the downturn, while keeping your costs down.”

Of course just adjusting the sales message doesn’t guarantee closing the sale. And Roberta’s numbers are down slightly from a year ago. But they are significantly up from where she was before she adjusted her messaging. Now she no longer avoids talking about the economy with her clients., She embraces it.

This is what they are thinking about anyway. So she draws out their fears and concerns, then positions her products and services as a direct answer to those fears and concerns. While this is really just basic consultative selling, the challenge many salespeople have is that they got into a cetain pattern of communication that worked for them when the market was up, and they haven’t yet recognized that this pattern of communication is now hurting them when the market is down.

So the final recommendation is this ; ask yourself what you customer’s greatest concerns and fears are, then develop sales messaging that speaks directly to them.