Mmmmm. Money.....

So let's think about money for a moment. I personally love this topic. We all love money right? In fact, it is one of those "things" that we all have experience with - from a very young age at that. So you would think we should all be comfortable talking about IT?


So why do so many good and presumably smart salespeople fall apart during the money discussion with clients. These are people that will fight tooth and nail for their commission cheque but not for their company's invoice. So let's think about this for a moment.


If we have done our jobs right, then we have established some needs, we have drilled into the detail of these needs, established some metrics around their resolution, defined a solution that speaks to the resolution of these needs and agreed to the value of the solution. We've also set timelines, identified the resources (internal and client) and maybe even a budget. If we haven't done these things then we need to reset - and quickly - or else the pricing discussion becomes premature - not based on value and only viewed as a COST and not an INVESTMENT. There is a subtle but very big difference. We all know that costs are always viewed as something to be minimized. Investments are viewed more by the returns they generate.



Now we get to a pricing discussion. If we have established value then pricing should be moot - so long as it is reasonable compared to the benefits associated with it. Now I am not naive here - of course there are competitive pressures, we know clients are becoming more and more sophisticated in their buying behaviours and your management has been "trained", mostly by you, to accept leaner and leaner margins.


Let's run through a few possibilities in the pricing discussion:

"The price to too high" - I figured I would start with the most common objection. Rather than simply discount, discount, discount - here is how we may want to handle it. First let's figure out the answer to this question; "Too high compared to what?". This is what we really want to find out isn't it? Is our price too high compared to their budget, is it too high compared to what they perceive the benefits to be, is it too high compared to what they were simply hoping to pay? You get the point.

Let's also think critically about this. What are the drivers of cost? Generally they are:

1. People - theirs and ours - in many consulting engagements - we use a number of our people as well as a number of our client's. The allocation and distribution of these resources will drive direct and indirect project/solution costs.

2. Timing - what period of time are we delivering, are they paying, etc? Would a compressed delivery schedule reduce cost/increase cost, would shorter payment terms allow for better financial terms?

3. Scope - obviously applicable to more complex scenarios - the scope of what we are trying to solve or capitalize on will drive the cost of our solution - more scope = more cost, less scope = less cost

When we start pulling these levers we must understand one more important aspect: RISK. Pulling each of these can have either a increase or a decrease in risk for the client and for ourselves. The client must be aware of these risks before we start pulling on the levers.

There is another level - TERMS. This one is a little trickier as now we are approaching corporate territory and some of these are not movable depending on the organization you might be with. If you are an entrepreneur - it's simple - adjust your terms to the point where you KNOW you will get the business. And the best way to know this? ASK!!!

So where does this leave us?

Assuming we have everything together then we can confidently and, with conviction, present the pricing for our services or product. If we have completed all the right steps then we should be ready to put contract to paper (contract negotiation will be for another posting).

Let's now be sure we understand the steps the customer/client will take at this point in order to transform a pricing proposal into a purchase order or agreement. Again, let's do something revolutionary here and ask the client what the process is and how the decisions will be made. WE can then trial close through each of these responses (i.e. so once you have approved this and it has passed through the chain of command what else do we need to do? IF we were to do "that" then are we in a position to move forward?).

This stuff isn't difficult folks - it is just executed inconsistently. It is easier to simply give in on price but where is the fun in that!

Until next time...

Steve

Open Your Ears Laddy...

Hello everyone. Time for me to clear the summer cobwebs out of my skull and drop a few more tidbits...

Sales is a funny thing. We are ALL told that we must listen to our clients. But how many of us really, truly do this?

Think back to some of your recent sales calls. Do you think there might have been an occurrence or two where you might have glossed over something the client said? Were there instances where you left the call thinking to yourself "If I had only asked..." or "I should have found out more about..." These are all symptoms of not actively listening to your clients. Let's face it, we have all done it.

Here is the problem. Everyone goes into a meeting with an objective or set of objectives. As a seller, we go in with a lot of internal dialogue. It is not uncommon for a lot of salespeople to constantly think about the "list of questions" that they need to get through in the call. Or, worse yet, what they NEED to say... Clients want to talk, we all know that. But think back to your personal lives. How do you feel when you get the sense that the person you are speaking with is ignoring you or not really paying attention. Those of you with teen aged children will know of what I write. Now put yourself in the place of a client who has just told you that "something", let's say a business strategy, is really important.... and you blow right past it, continuing with your list of questions (or with the interrogation as it were). What do you think the client feels your level of interest is in his/her needs?

The principle I am floating is ACTIVE LISTENING. The term itself seems simple enough. Listening - we know what that is. But what do we mean by ACTIVE. Quite simply, this is the act (or art) of being involved in the conversation - turning off the internal dialogue and intently listening to the information that is being provided - assimilating it - and then utilizing this information to guide future questioning, discussion, positioning... whatever...

Let's get pragmatic for a moment. How can you do this? It is easy enough to say one needs to actively listen, it is quite another to actually DO IT and execute on the principle!

As with many of the principles I am fond of articulating - mastery starts with practice. The great thing about this skill is that it can be developed in absolutely every aspect of your life. So let's take it one step at a time.

In order to listen you need to hear. So clean the wax out of your ears, perk them up and pay attention. This means making direct eye contact with the other person. I am still amazed at the number of professionals that I work with that can not maintain eye contact, have a tendency to allow their eyes to wander and then require reiteration of points and information. Practice this with a friend, a partner and even your children if you have them. The next time you speak with them - look them directly in the eyes (remember to blink else they think you "weird"). Try and compare the amount of information you understood versus those times where you weren't really paying attention. Incidentally, my wife calls me on this one all the time!

Next step - "clear your mind Daniel-san". Face it, when we are on sales calls we are thinking about stuff: "what are those questions I need to have answered, how much is this deal going to be, can I afford that fancy new tie with my commission, what was that next question again, I wonder what's for dinner tonight...." You get the point. The key to active listening is to move those mental distractions away. I assume most of you are quite conversant in your products and services, your sales process and what you really need to know - so don't worry about them at this point! The more involved you are in the conversation at hand, the more possibilities for exploration will open to you.


Final step - assimilation and information utilization. Assimilation (not not the Borg-type - sorry - geek moment) is critical. When we are receiving information we need to file this in terms of our current understanding of the client. This means that as the client is speaking, we are intently listening and the information is being processed against our current understanding - sometimes changing it. Now is the time to analyse what we have heard and use this as the basis for further exploration. This requires some relatively rapid analysis and some quick thinking. An easy way to get into this habit is to simply think of some HOW or WHAT questions as follow-up. It will be easier than you might think.

That's it for now. Try this out - again in all areas of your lives - and I am sure you will find the quality of your discussions will improve and you probability of understanding those with whom you are speaking will certainly be enhanced.

Until next time.

Cheers,

Steve

WHY, WHY, WHY

As some of you may already know, I am not a huge fan of subscribing to every new whiz-bang sales method that is out there. I have covered this before and, if you don't know where I stand, I do believe most sales methods are pretty much the same. They cover similar principles generally using different, albeit very colourful, nomenclature.

I am sure, buried within most of these tomes, is something about asking questions. I have covered this as well but wanted to focus on one word today: WHY

Why is an interesting word. It is the question that we believe we want answered:

"Why are you considering implementing a new ERP application?"
"Why would you contemplate switching service providers?"
"Why are you looking out the window when I am saying something very important?"
"Why do I feel the uncontrollable urge to sing at the moment?"

Interestingly, the use of the word WHY generates an interesting response in some people. I have actually observed clients cringe when the word is use. I have also seen clients "shut-down" when WHY-questions are used. Again, let's be pragmatic here, there may be some instances when WHY could be appropriate (I'll need to think of a few). But let's think about WHY this reaction occurs:

Theory I: The 3-year old syndrome
This theory of negative reaction to the word WHY generally applies only to those people who have had considerable exposure to young children. For those that do, you will relate. For those that do not, think hard to when you were a very young child.

What are children notorious for asking? WHY? And they ask this of everything. Personally, I think it is fantastic. This is how children make sense of the world and their place in it. It is how they figure things out. It is how they seek guidance. I honestly wish most salespeople would adopt this mentality. And those that I see that do actually do ask the WHY questions. It is OK to adopt the inquisitive mentality but it is not OK to adopt the behavior! The reality is clients that fall into this bucket-theory will be the "cringers" - reflecting on a young child who incessantly asked WHY of everything. Let's adopt the inquisitive nature but raise the level of discussion.

Theory II: Implied Insult Theory
Let's work through a scenario. The client has agreed to meet with you. You are having a discussion on some of their business issues, some of the challenges, etc. You determine that they have decided to make a purchasing decision for an MPLS solution (inside joke). You are puzzled because this doesn't seem to make sense. You ask the questions "Why would you consider implementing an MPLS at this time?". The client, who is already somewhat nervous about this decision hears the following "Why would you consider implementing an MPLS at this time - DUMMY?". Prefacing your question with WHY can have the opposite desired effect. Again, we need to get to a higher-order of thinking on these things. What do we really want to know?

We may want to know "WHY" but let's think this through with some higher-order thinking. When asking why we are seeking to understand underlying motivations: "Why are you doing that?" - becomes "What is your motivation for dong that?". Now, I am not suggesting that you simply transform every why question to a motivation-based question - doing so will smell of prescribed dialogue and borders on method-acting. All I am suggesting is that you seek to understand more than just WHY. There could be a lot more you could discover. Asking WHY is a lazy way to get at information. Asking WHAT, HOW, WHEN and WHO-type questions are much more effective and a lot less personally invasive. But they do require forethought.

So these are some of my thoughts on this simple three letter word. What I am suggesting is that the thought is fine, the mentality is fine but let's think through and PRACTICE using some different language that leads us to a higher-level of understanding about the client.

Until next time.

Cheers,

Steve

"I object!" If only it were that obvious...

Sorry I have not been around lately. My bad.

I thought I would throw out a rehash of a very common and probably over-discussed issue. What is most amazing is how poorly this issue is understood and how poorly it is executed.

I am referring to objection handling.

So, traditional thoughts on client objections are when the client says something negative. Typical examples have been "The price is too high", "I don't think we need that", or better yet "NO!!!". While these are objections, let's first take our definition to a higher level.

Let's first define an objection is anything that a client does or says in the course of an interaction (or even outside of an interaction as it may be).

We can argue this point but go with me on this one please.

If we define an objection as anything a client says or does that seems pretty broad - and it is. Some examples:

The client asks a question: "Is your company big?"

Our immediate temptation is to assume we understand the motivation behind this question as being "they know we are big so they need someone big" and we eagerly reply "Yes, in fact we are the biggest damn company in the space". We should be very proud of ourselves right? WRONG!!! The client then says "That's too bad because we wanted to work with a small organization that would be more responsive to our needs"....

The client is consistently viewing his/her Blackberry or other mobile device (I guess iPhone's are way cooler)

We have been trained and our ego tells us to ignore this as saying something may be perceived as rude (especially if we are Canadian where we are so damn nice we would apologize for someone stepping on our toes).

The client makes a comment "I am concerned about the recent offer made to acquire your company".

Again, the temptation is to simply go into defensive mode and describe all aspects of the transaction in every manner of detail. HOW MUCH DO YOU UNDERSTAND ABOUT THE UNDERLYING MOTIVATION BEHIND THAT COMMENT?

Let's go through each of these with some high-level thinking.

Question: Is your company big?
Potential Responses: How does your company define big? What aspects of organizational size are you interested in? In selecting an organization with whom to work, what aspects of size are important to you?

Client Action: Not paying attention to you but Blackberry or other
Potential Responses: Mr/Ms. Client, I have noticed you have been looking at your Blackberry quite a bit during our meeting - my concern is that we might not have caught your interest, is this the case?

Client Comment: I am concerned about these recent reports.
Potential Responses: What is it in these reports that is a concern for you? What aspects of the transaction are a concern for you?

The real key here is to gain a deeper level of understand, to understand the underlying motivations and needs of your clients - in everything they may say or do. This will allow you to respond to their specific needs and not the surface-level questioning or objections we typically receive.

I often suggest to sales professionals to adopt the 3 year old mentality of constantly staying in questioning mode - not just when in discovery with the client but in EVERY interaction.

I am not suggesting you do this on every occasion. Let's use a little common sense and courtesy but what I am suggesting is that if you are able to get at the real issues, put them on the table, address them then and there, you stand a much better chance of removing objections, clarifying ambiguity and moving a sales forward than if you were to do nothing or simply respond based on what you THINK the client MAY want to hear. I suggest trying it the next time anyone asks you any type of question - it'll be fun.

Cheers,

Steve

Higher Order Questioning - A Practical Guide

I am feeling a little impatient. I want to get some information to everyone on an area that drives me crazy.

This is when a sales professional enters into a discussion with the best of intentions - to discover some of the business issues the client is facing - in order to understand the fit with his/her organization's products or services. But during the course of the discussion, when the client is providing MANY opportunities for meaty discussion, the intrepid salesperson simply glosses over the issues with a "that's great" or "very interesting"...

Let's go through a simple process here: We will assume all of the niceties and pageantry have occurred with the client and we are into some level of discussion on wants & needs.

1. Let's get to some semblance of a list of issues, objectives, problems, priorities - whatever you want to call them. Please make sure this list is accurate and complete - validate this with the client. A great question: "Is there anything else?" or "what others do you believe would need to be addressed?".
2. Let's prioritize this list. Which of these areas would the client wish to address first. Use whatever manner of questioning to get the client to select but keep in mind that you will only be able to discus a few of these (if your lucky). Best to discuss the one that is most relevant to the client. Sample questions: "This is a great list. If we were to select only a couple of these to discuss today, which would you suggest we discuss?" or "If we were only able to address one or two of these issues which would be the priority?".
3. Time to understand all we can about the issue. How is it defined? How does the client know it is an issue? what is or isn't happening in the organization that should or shouldn't be? How do they measure "stuff" around this issue?, etc. Bottom line folks - get as much GOOD information as you can surrounding the issue. Sample questions: "Perhaps you can tell me a little about issue X?" or "You mentioned issue X as a priority, what is letting you know that this is an issue?".
4. Now you have to determine what success in addressing the issue might look like. Let's paint a picture here people. How would the business change? What results would be derived? What would have to happen and what changes would need to be made in order to address this issue NOTE: I am not a big fan of the following question but it may be useful in some instances; "What would it mean if you did nothing?". I am still trying to figure out when this is not insulting to the audience.
5. Now determine what addressing the issue will mean from a financial perspective or how other metrics may be affected. If clients are reluctant to provide details get them to guess - best estimate, gut-feel, whatever it takes. Let's just determine whether addressing the issue is significant enough that our solution even makes sense (i.e. be sure the potential benefits are much larger than the potential investment in your products or services).

That's all I wanted to cover today. The key to this is to slow down during the conversation and ask yourself this question: "Do I know enough about or fully understand what the client just said?" - and since you are asking this of yourself your ego shouldn't be in the way!

Have fun folks.

Cheers

Steve

Does the Player/Coach Model Really Work?

Time to get really real here folks.

I don't know how many times I have either come across organizations (or even worked for a few) that have tried to operationalize the Player/Coach model.

For those of you that are not familiar, the Player/Coach model is one where the employer attempts to gain benefit from a senior sales executive in building a sales pipeline while also managing a team (large or small - though usually small).

This is generally a means for attracting top talent in sales strategy and execution. But, most often it is a role filled with platitudes and empty promises.

Here is the issue:

Good salespeople are hard to find.
Good sales managers are even harder to find
Lots of people want to be sales managers (usually fatigued salespeople - of which there are many - for a number of reasons)

The hiring organization needs to be VERY crisp in its role definition. If this is a Player/Coach role - it is vitally important that you truly understand your expectations of the individual. How much time do you expect to be spent on individual sales contribution (i.e. carrying a bag) and how much on managing a team. If these expectations are not understood and clearly communicated, the candidate will only hear what he/she wants to hear. So if the person is management-inclined that candidate will only hear and retain the management aspects of the role. If the candidate is sales-oriented then the focus will be on the quota and individual contribution aspects.

And please don't kid yourself. If you really want a salesperson then call it out. Don't call the person a Senior Vice President of Sales and promise management responsibilities "down the road". You know and I know that this will likely NEVER happen. By the same token, really reflect on your needs as a business. Do you have an existing sales team, does it require focused leadership and have you thought about the costs and returns of adding this layer of leadership.

I have seen, all too often, organizations entering into this Player/Coach arrangement with best (and sometimes nefarious) of intentions only to be surprised when someone whom they perceived as a high-performer not delivering on individual business development targets. Well, I can tell you the culprit is usually an overzealous recruiting process with mixed-messages coupled with an eager wanna-be sales management executive hoping to secure a focused management role.
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Bottom line folks - get very REAL about what you need in your organization, communicate it clearly and ensure candidates clearly understand and match your requirements.

Candidates - PLEASE DON'T KID YOURSELVES. If you are in the Player/Coach role - you WILL be having two jobs with high expectations. Look deeply in yourselves and honestly ask yourselves whether you have what it takes to do the job at hand. Failure to do so will have you searching for your next opportunity sooner than you may think.

For those that can make it work - this can be a rewarding role - both financially and form a career development perspective.

Good luck.

Cheers,

Steve

Please feel free to review FREE (no catch, no information collected) sales development videos and material at http://www.professionalsellingnetwork.com

NEW PUBLIC PROGRAMS FOR SELLING IN ACTION ANNOUNCED

Hi everyone,

As you may notice as you read through my posts, I am not a shameless advertiser. Other than Third Core's Professional Selling Network , which is free anyhow (and I make no money from it - at least not directly), I do want to let my Toronto/GTA/Ontario-based readers know about an exciting program we are running. These programs are generally reserved for Third Core's enterprise clients. We are now offering access to Third Core's process on a limited public basis.

Here are the details:

Public Selling In Action Program

Program Overview

Selling in Action is an intensive, rewarding and immersive experience that will fundamentally and permanently change sales professionals’ approach to executive selling.

The program immerses sales professionals in a sales campaign with a real prospect company. Participants compete against one another to win business from the company, whilst receiving support, coaching and guidance to enable them to hone their capabilities.

Specifically, the program:

• Provides an environment in which sales skills required for access to, consultation with and commitment from executive decision makers may be applied.
• Provides sales professionals with continual feedback on their performance.
• Provides sales professionals with learning regarding the principles of selling strategically at executive levels.
• Provides sales professionals with a clear understanding of what is required to consistently apply their sales skills at this level.
• Provides sales professionals with clearly identified skill and competency gap profiles for self development.
• Provides all participants with access to feedback directly from real prospects and customers, allowing them to take direct responsibility for their development based on unfiltered opinions.

Benefits of the Program

Third Core’s acclaimed Selling In Action program has been used by some of the world’s most successful organizations to rapidly enhance the capability and productivity of their sales forces. When sales methodology alone has been exhausted as a route to enhance performance, Selling In Action provides a stretching, transformational experience that changes the game completely for strategic sales professionals.

To quote one of our clients:

“I have been in IT Sales now for over 20 years and worked for some of the largest IT companies in the world, including Compaq, HP, and EDS. During the last 20 years I have participated in many different sales training programs including Target Account Selling, Holden Power Base, Value Added Selling and IBM Large Account Marketing.

The Third Core program is by far the best program I have participated in. This is not a classroom setting. It is the most realistic sales exercise I have ever seen. The feedback from the executives, the time spent observing and coaching your team and the personal coaching you receive is invaluable.”

The focus of the program is on creating replicable and sustainable sales performance improvement. To quote another client:

“There was a 104% increase in the revenue per deal closed, and a 170% increase in total new revenues, versus the same period last year”.

Offering

Third Core will be offering two initial dates for the public version of Selling In Action – 21st/22nd May and 15th/16th July 2008. Location will be at Third Core's Toronto offices.

The price per participant is $1,000 per day

The minimum number of participants for each session is 8. The maximum program size is 12 participants.

Pricing details

The price of $2,000 per participant includes the following:

Full access to program pre-work;
Attendance at the two-day Selling In Action program at Third Core’s premises;
Facilitation of the program;
Engagement with real Canadian senior business executives;
Coaching throughout the program;
Fully documented competency-based feedback, delivered to participants’ managers;
90 days of access to videos of participants’ engagement with the customer for the program – for coaching purposes

Points of negotiation/variability

Any company that books 4 salespeople onto one of the public programs may send a sales manager, free of charge, to take part in the program. The manager will be personally involved in leading and guiding their sales people through the program, offering them a unique opportunity to be involved in accelerating results from the program. A full competency-based assessment will be produced to help the manager focus on their areas of strength and development.

Those companies wishing to discuss volumes of more than 4 sales people may benefit from a custom program. We will discuss this on an as-needed basis.

If you are interested and would like to register or require more information please contact us at sia.admin@thirdcore.com

So there is the sales pitch. Bottom line folks, if you are interested in this that's great. I have seen the value that is derived from participation in these programs - not only on the part of the participants but their managers and organizations. If you are not interested, that's OK too. Keep reading these posts, go to PSN and get what you can from all sources.

As always, have fun.

Cheers,

Steve