Why do customers buy from you?

Why do customers buy from you?

Last week I found myself in another conversation trying to make the case to the owner of a medium sized manufacturer that his best shot at survival was to focus obsessively on a niche where he could add value in some way to customers that his competitors could not match, where he had a competitive advantage.

As often happens, the need to deliberately choose to ignore a possible ‘walk in’ was winning the day, the  desire to be all things to all people ‘just in case’.

It is a common challenge for all businesses, not just small ones.

In the course of the conversation, I recalled a sense of confusion that occurred last Christmas.

My wife bought me a couple of shirts. I needed them, but hardly inspiring.

As ‘Santa’ handed the wrapped pack to me, she said “I did not know what to buy you”.

In that moment, I realised that while the woman I had been married to for 35 years did not know what to buy me, I got emails every day from Amazon offering me stuff that I would really like!

A bloody algorithm knows me better than my wife!

Go figure that one out if you can.

Jeff Besoz has made a huge dent in the world, and one of the quotes attributed to him is: ‘Amazon  does not sell to customers, we help them to buy”

Pretty good advice, and to do that, you must know them intimately, at least as intimately as possible.

Bezos insists that there is an empty chair in every meeting at Amazon representing the customer, to continually remind all and sundry of why they are there.

Simple really. Customers will buy from those who know  them well enough to anticipate and deliver on their needs.  Customers are not interested in us, they are interested in them. The extent to which we can help them, they will be prepared to buy from us rather than someone else who exhibits less interest in them.

9 considerations when planning  sales follow up

9 considerations when planning  sales follow up

You never fail to get a sale because you followed up too much, but understanding the inflexion points in the process when you reach them is critical, and it will vary almost every time.

You might follow up poorly, or with inappropriate ineffective material, but the number is important.

Most sales functions operate on some  sort of commission basis, and this encourages cherry picking, and limits follow up, which takes time away from the less obvious cherries. However, there is often great value in the follow up when done well, it builds a depth of understanding that can significantly enhance the lifetime value of a customer, rather than the short term transactional relationships so encouraged by default.

Besides, it is unusual in B2B to make a sale on first contact. There is plenty of research around that points conclusively to the majority of sales happening after the 5th follow up.

So here are some thoughts on follow up.

  • People buy when they are ready to buy. They do not buy when you are ready to sell, at least not without significant inducement. They might be prime prospects, just not at the moment, and failing to follow up risks them not coming back to you at the time they are ready to buy.
  • Pepper your follow ups with smart questions, things that encourage meaningful conversations, and demonstrate you are across the issues that the prospect faces.
  • Continuously demonstrate the value of your solution by demonstrating how it can solve the problem they face.
  • Use old fashioned snail mail with handwritten envelopes and notes. Because they are so rare now, and the investment of time you have made is obvious, snail mail always gets opened, usually read and understood.
  • Have a follow up plan, a sequence that is logical and suites the industry and circumstances of the lead you are nurturing.
  • Ensure the material you follow up with is appropriate to the prospects position in the buying cycle.
  • Make it easy for the prospect to take the next step.
  • Give yourself permission to follow up again. E.g. Don’t just leave a message saying you called, leave one that primes them for the next time you call.  ‘I missed you today, but will try again tomorrow morning at 8.30, as I think this may be important to you’.
  • Try the dead horse approach. At some point, you have to move on when all else fails. However,  before you do, ‘Dead Horse’ is a technique that has some sort of psychological motivation, so it often works, e.g.. ‘I have called and left a number of messages, none of them have been returned. While we are both busy, I thought this might have been important for you, but apparently not, so I will not bother you again. If you would like to reconnect, I would be happy to do so, but until, then, I assume we are done. Have a great day.’

Even doing a couple of these will lift your sales hit rate significantly, so don’t let the ‘hunter’ instinct of many sales people  move them onto greener pastures too quickly.

How to build a sales process for your human salesforce.

How to build a sales process for your human salesforce.

These days great sales people, real ones, those that go and talk to customers and potential  customers are expensive, and hard to find.

Most often in a B2B environment their role is not just closing a sale but developing a relationship that is deeper and longer term than the individual  transaction. Success is measured not just by the transactions, but by the quality of the relationships they build, and the trust, that will take the pressure off price, delivery times, and the other quantitative measures used to judge performance from a distance.

It also true that the first time many sellers know a potential customer is in the market is after that customer has done a considerable amount of research, arrived at a short list, features required and price  point, which gives them the power in the conversation, unless you are able to re-frame it somehow.

The word ‘Process‘  in the headline implies repeatable, subject to continuous improvement, and measureable. In order to achieve these outcomes there are a number of building blocks:

Plan

The old cliché “failing to plan, is planning to fail’ is unfortunately true, that is why it is a cliché.  The caveat of course is that just planning will not generate an outcome, you actually have to implement. The gap between planning and implementation is deceptively wide and full of very hungry crocodiles  that will consume your will, time, and financial resources given the chance.

 

Don’t spend time, Invest it.

We demand a return  on our financial investments, why don’t we do the same for that most valuable of resources, our time? Most of us complete some sort of post capital expenditure review to check that the returns we expected and planned for prior to a capital investment actually materialised.

Why do we not do the same thing without most valuable resource, time?

This may be a challenging idea, but if you allocate your time to the ‘important but not urgent’ category rather than the seemingly urgent, but not important things that consume our lives, the returns will flow.

 

Learn continuously

Being able to learn is a gift, leverage it. Nobody becomes outstandingly good at something without learning from those who have gone before and mastered  the skills. Beyond a base level of skill, you need coaching to learn,  and it is the primary role of a sales manager to coach those in their team, so they learn, do better, effectively leveraging their time and expertise, learnt from those who went before, and their hard won experience.  A core part of learning is being able to be reflective about what worked and what did not, then making those small adjustments, day after day, to test and improve.

 

Be proactive

An old football coach of mine used to bang it into our heads that while defence was a critically important component of any contest, you did not win by preventing the other bloke from scoring, at best, it was a draw.

Being proactive is about experimenting, taking considered risks, searching for opportunities, prospecting for ideas and applications that others have missed, being unafraid of the power of the status quo, and being prepared to ask for forgiveness rather than waiting for permission.

My standard mantra is ‘get out of the building’ meaning nothing different or innovative happens within the context of your normal, routine activities.

 

Follow up obsessively

Few sales are made at the first contact, or second. It takes time and polite persistence mixed with an understanding of why the ‘target’ will benefit from buying from you. Failing to articulate the value of your proposition results in the follow up being Spam, but if the value is genuinely there, follow up builds credibility, and in a small way, a sense of reciprocity or obligation to at least give you the opportunity to make your pitch.

 

Remove ‘busywork’

We all know that work fills the time available, but we also know  that often the stuff being done is just ‘busywork’, stuff that rally makes little difference apart from reassuring yourself that you are needed, and others that you are indispensable. Remove it, ruthlessly, in favour of activity that customers would be prepared to pay for, because that is exactly what they are doing, indirectly.

 

Most of the real work is not digital

It has becomes to easy to rely in digital to do our jobs for us. It won’t, it can only do exactly as it is told. Besides, people buy from those they know like and trust, and I never met a computer I completely trusted, somehow they are not completely human.

 

As noted previously, the term ‘Sales’ is to my mind approaching redundant, as it conjured up in most people minds something less than what it is, or should be. The term I favour is Revenue Generation. This simple semantic change tends to shake perceptions and put the sales function into the spotlight as being vital, not just those people down the hall with company cars who go out to lunch a lot.

Another run for a hobby horse

Another run for a hobby horse

‘Account Based Marketing’ or ABM is rapidly becoming the latest three letter acronym to which all and sundry seem to be hooking their horses.

All sorts of learned crap is being published,  assuring me that ABM is the way forward, so I just googled it, 39.5 million responses.

I always thought that serving key and strategically important customers, the core of ABM, was what successful marketing and sales had always been about.

Must be deluded?

20 years ago as a newly minted consultant hanging out my shingle after a successful corporate career, one of my first products was what I called ‘SKAM’.

While it always got a laugh when I put it up, the acronym stood for “Strategic Key Account Management”.

Having now had a look at some of the ABM stuff coming out, they have done little beyond update the technology and call something that is core to sales and marketing success by another name. Then because they are calling it something new, try and flog it to unsuspecting and perhaps intellectually compromised people with too much money and perhaps not enough experience to understand what marketing really is all about.

Too snarky?

Perhaps, but it is this sort of nonsense that gives those of us who are thinking about this stuff, and have been for a long time, a bad name.

Those who read my musings regularly will know I have a corral full of hobby horses which I let out for a run occasionally. This is one of those occasions, so forgive my rant, but it is fun, and it is my blog!

The absolute best way to overcome objections to a sale

The absolute best way to overcome objections to a sale

Over many years and considerable experience in developing sales programs, one of the regular stumbling blocks is how to respond to objections.

The single best way I have ever seen to overcome a sales objection is to articulate the objection before the sales target gets the chance to do so. That usually shoots it down in flames as a serious objection if the conversation continues past that point.

For example, a while ago doing an assessment of a client’s sales efforts I sat with one of their sales people as they made the initial contact over the phone after the lead had been qualified by a reasonably robust process. My clients product is a quality offering in  a crowded market that has a number of cheaper offerings without the value added capabilities and guaranteed longevity. The qualification process filters out many of those for whom the feature additions will add no or little value, so those with whom we were trying to have a sales conversation had been judged to be genuine leads with a need we could fill. However, in the early parts of the conversation almost always  price was raised as a problem, and often it ended the sales process before it really got started.

When we turned the scripts around so that the sales personal brought up the premium pricing, acknowledging it was not for everyone, as not everyone values the assurance that comes with the quality built in to the design and fabrication of the product, price was removed as a barrier to the sale.

It worked almost every time multiplying the ‘conversion rate’ which was in this case gaining  the face to face opportunity to demonstrate the product in an operational context. From there, the sales conversation rate was already pretty high.

Following is a list of the common other barriers to completing a sale I have seen. Being creative about the manner in which they are handled has a great impact on the conversion rates.

Lack of perceived value in the product

Lack of urgency in purchasing the product

Perception that an alternative is superior

Internal politics in your customers business

Lack of funds to purchase

Personal issues with decision makers

Conflicting corporate initiatives

A no decision no risk attitude

Lack of trust in your company

Lack of personal rapport with you

Your inability to communicate effectively with them

Now you have a list of the possible objections, workshopping the responses is extremely useful

In short, make a feature of the things that you think they will object to, and remove it as an objection before a potential customer has the time and opportunity to bring it up themselves.

7 steps before the close to double conversion rates.

7 steps before the close to double conversion rates.

Sales people for 100 years have been coached on how to do a close, often after a mini close or two.

These techniques all have their place, and in the past have worked enough for them to become the default, after all it is a numbers game.

However, when you last looked at your close rate, what was it?

Most would be in single figures.

100 leads, converts to 50 warms leads, converts to 10 hot leads, converts to 5 transactions.

What if there was a way to double, even triple that rate, make the 5% 10% or even 15%

There is.

Every sale is a journey, has a starting point and an end point, what happens in the middle determines your conversion rate.

  • Identify the prospect
  • Qualify the prospect as a lead
  • Understand their buying processes
  • Provide social proof
  • Make sure you are talking to the decision maker
  • Gain the support of those who influence the decision maker
  • Ensure your offer is irresistible

Making  the offer irresistible means that you do not talk about the offer from your perspective, you talk about what the offer means to them, the outcomes of accepting your offer.

Conversely, the result of passing it up

If I was selling you a lead generation process for your product selling for $499, and I promised to triple the conversion rate from its current 5% to 15%, would you take it?

The maths becomes very easy, $499 is either a great offer or a pile of rubbish, you can make the choice.

However, if I just concentrated on closing you on a lead gen process for $499 using all the old fashioned techniques, I would almost certainly fail, as it is all about me, and my stuff for $499, not about you, and the return you will get for a modest outlay of just $499. (Be quick offer closes at midnight. Could not help myself, as time linked offers do make them more compelling irrespective of anything else)

In other words, focus on the outcome, not the process, at each stage of the process.

Sell the hole, not the drill.