In today's marketplace, offering discounts seems to be the number one technique people are using to try and get business. Management has bought into the age-old argument that the only reason their salespeople can't sell more is because their price is too high. It's time to put this to rest. This argument of cutting prices actually reveals the lack of selling skills by the salespeople who are using it. It also indicates a management team failing to provide necessary strategic planning and direction for the company.
Rarely does a salesperson say that the reason for a lost sale was their inability to uncover the customer's true needs or to create a sound price/value relationship. Salespeople are by nature confident people, so they automatically assume the loss of a sale couldn't have anything to do with their own skills. The natural progression in their logic is that "it is management's fault" or "the price is too high."
I am not offering specific steps a salesperson can do to alter a customer's behavior. Rather, I'd like to focus on the steps a salesperson must take in how they view their role in the sales equation. It starts with the salesperson no longer going into a selling situation believing they are all-knowing in terms of how they will handle any situation. Too often they walk into a situation and within 30 seconds believe they've summarized how the sales call will go, and that their incredible selling expertise will allow them to close the sale. Here is where I start to laugh, because the solution the salesperson always comes up with is the exact same process they used yesterday. In fact, it's the same sales strategy they use on nearly every sales call. Then, as if on cue, as soon as the customer starts to show any signs of resistance, the salesperson immediately starts to think the only way to save the sale is by cutting the price.
Behavior modification on the part of the salesperson is the only way to get around this problem. Many people believe if they just give the salesperson some new marketing materials, some really great testimonials, or a proven list of questions they can ask, they will be able to overcome the urge to offer a discount. Yes, I agree that each of these do help, but the problem is they tend to be short-term solutions.
When a salesperson is given new tools like these, many times they will go out and find some success in closing more sales and doing so without offering a discount. Eventually, however, the newness of the sales tool wears off. The salesperson before long is facing a hesitant customer, and they fall back into their old habit of offering a discount.
Long-term behavior modification comes only when the salesperson truly believes in their pricing strategy. This seems obvious, but I have often found that salespeople don't believe in their company's pricing strategy. This perception is then reinforced (sometimes subconsciously) by emails from management about the state of the business and the pressure to make a number. A key behavior killer is when management puts out a report detailing sales results. Many companies release reports stating why certain sales did not occur. When companies do this, they encourage (or expect) the salesperson to provide reasons. The salesperson is often going to point to price. Do you see the vicious cycle that occurs? Price cutting becomes the "go to" method to keep bringing in sales (but quantitatively, profit is going down).
In my 10 years of sales consulting, I've watched this single report do more to kill the behavior of salespeople than anything else. There is a stigma that prevents the salesperson from admitting that the reason they didn't get the sale was because of their own doing, not because of price. To eliminate the effect of this stigma and the "price is too high" excuse, management needs to stop compiling reports that require a salesperson to say why they didn't get a particular sale. There are other far more effective ways to measure the value of a salesperson than by creating a report that encourages a salesperson to not state the truth.
A second matter that requires management's attention is to stop cramming every cost reduction technique into the laps of the sales team. When the majority of correspondence a salesperson sees from management has to do with how and why they need to cut expenses, it only winds up reinforcing in the minds of the salesperson that they too need to cut the price they're charging customers.
Yes, this is a challenge – finding ways to hold down expenses without deflating the pricing perception of the sales team. It might be a challenge, but this is what management gets paid to do – to make the tough decisions without impeding the end goal of making quarterly sales and profit numbers. This is no different than a parent/child relationship. There are many times a parent will make a decision that impacts the child but doesn't tell the child in a way that leaves the child feeling upset or scared. For example, a parent tells their child to fasten their seat belt while in the car. They do this to protect the child, but they don't go into detail about all of the things that could occur to them should there be in an accident. An approach like that would leave the child feeling scared about riding in the car. When we apply this same concept to the environment of sales, I think we would all agree that management doesn't want their sales team "scared." Fear is not the greatest motivator for long-term positive results.
A third behavior change is one the salesperson must do themselves. It starts with removing from their thought process that offering a discount is even an option. If a salesperson knows a discount is an option, they'll take it. I call this the "last-dollar principal," which says it's amazing how fast your money will go until you suddenly find yourself down to your last dollar. When you have only one dollar left, it's amazing how far you can stretch it. You could have handled your money more frugally when you had more, but because you had more money at the time, you didn't feel the same pressure to save and protect it. When you get down to your last dollar, you sense that pressure more acutely.
Management can help their salespeople steer clear of discounting price by not allowing salespeople to have control over price discounting. In my years of sales consulting, I've worked with many companies that have taken away from the field all pricing flexibility. After the sales force gets over their whining about the loss of control and their proclamations that the world will end, it's amazing what happens to the bottom-line. In each case, the bottom-line profit has gone up. Many times profit has increased not because of more sales, but because the sales that are made are more profitable (no price discounting has occurred).
Finally, a salesperson needs to believe in their pricing as much as they believe in their selling skills. Management and a sales team need to work together to continually reinforce why their pricing is correct. It's no different than a coach and team working together to achieve the highest potential possible. Discounting is for losers, and there's not one person out there in sales or management who wants to be a loser. We all want to be winners, and that means we are proud of what we provide our customers. In the end, it's not the price that matters. The quality of the salesperson will determine the outcome.
It's always rewarding to close a sale and immediately have the new client sign the documents to secure the sale. No matter how many years in the business, this always feels good. We all have stories about new customers who have "fallen into our lap" and bought quickly. For some reason, we can't seem to forget the great rush that occurs from these new clients. I'm here to say that as good as the rush might be when we allow a sale to occur too quickly, we wind up leaving money on the table.
When beginning to talk with a new customer, the salesperson and the customer invariably have the intent of doing so with a specific product in mind. It may be any number of products you sell. The initial interest expressed by the customer always guides the discussion. Once the discussion turns to a specific product, the customer's focus becomes even more closed to any other products. The real danger comes when the customer agrees to buy. At that moment, the customer feels the process is over, and their mind moves to something else, usually something totally unrelated to your business or products.
To avoid a situation like this, the salesperson needs to ask the necessary exploratory questions early to determine the customer's other needs. By asking exploratory questions early, you are able to assess which additional products may interest the customer. If you wait to ask these types of questions until after the initial sale is complete, you will always be behind. This is the whole principle of not closing too quickly. You need and want enough time to explore and determine all of the customer's needs.
What are exploratory questions? Exploratory questions generally are open-ended questions that get the customer talking. Questions may include asking the customer about their job and the types of benefits they receive in the job. A question of this nature is non-threatening and is likely to start a conversation in which the customer shares about the dynamics of their work, particularly the level of security they do or don't have in their position. When a salesperson can get the customer talking and, more importantly, talking about items about which they do not feel secure, the greater the likelihood the salesperson can identify additional products that will alleviate some of the customer's pain.
Whether in a face-to-face meeting or over the phone, the salesperson must take the time to engage the customer early on. The key with the early questions is to not blatantly ask, "What other products or services would you be interested in?" Asking a new customer this type of a question before a relationship has been established runs the risk of alienating the prospect. Plain and simple, they will view you as a "hard-sell salesperson."
Engage the customer in a non-threatening manner and that customer will be more likely to share information without throwing up defensive barriers. Keep your exploratory questions short and simple, so that that the customer can do most of the talking. Customers are much more willing to share key information in short segments rather than long drawn-out responses that more-complicated questions dictate.
Due to the wide number of issues the typical customer faces today, it is a privilege to be a salesperson in today's economy. When you are able to assist a customer with multiple solutions, the customer feels at ease, and you have truly done your job. Building a solid relationship instead of going for the quick close just makes good sense when you are striving to build a long-term sales career. Begin today to incorporate exploratory questions into your sales process as a way of engaging the customer.
It's been said that to be a successful salesperson, not only do your listening skills have to be great, but your closing skills have to be even better. However, I believe that while these skills are helpful, they are not essential. In my opinion, to be a top-performing sales professional, you must be a great leader. It is a fundamental character trait. Although we have all known salespeople who have had stellar years based on the luck of a few great clients, those with sustained, long-term success always exhibit great leadership skills.
What is a leader? Leaders are people who empower others to do seemingly impossible things, whether individually or as part of a group. They help people see issues and opportunities they would not normally see themselves. Most importantly, they instill a level of confidence in people that make them pro-active in dealing with situations they otherwise would be hesitant to handle.
These leadership traits are essential for top-performing salespeople to exhibit on a daily basis. By demonstrating these qualities to your prospects and clients, you are communicating your value to them. They will see that you have their best interest in mind and are not out to just "make a sale." You will create the confidence they need to desire to do business with you. Salespeople who see themselves as leaders are far more likely to provide the client with the services necessary to help them achieve their long-term goals. For example, a salesperson who is a leader will wisely show a 25-year-old the significance of buying life insurance both as an investment tool and a "peace of mind" policy.
Top-performing salespeople understand how positioning themselves as leaders can further their success. You will increase your profits by selling more to an existing customer, so it only makes sense to display leadership to them. In addition, because the best new clients often come from referrals, your existing customers will be much more apt to confidently recommend you. In my experience, I have observed that salespeople who behave as leaders are less likely to need multiple closing techniques to make a sale. I firmly believe that the higher the degree of leadership in a sales professional, the less time spent on closing the deal. Similarly, the opposite holds true, and the result is a loss of valuable time.
Over the years, I have come to believe that "sales is leadership and leadership is sales." The more salespeople with whom I work, the more I confirm the validity of this statement. Although it's important to work on both your ability to listen and your closing techniques, fostering your leadership skills is far more essential. Begin today to set yourself apart from the competition by positioning yourself as a leader to your employees, your clients and your prospects.
Mark Hunter, "The Sales Hunter," is a sales expert who speaks to thousands each year on how to increase their sales profitability. For more information, to receive a free weekly email sales tip, or to read his Sales Motivation Blog, visit http://www.TheSalesHunter.com.
One position that has not been impacted by the economy is sales. Ask any CEO and you will hear that one of their biggest issues is finding and retaining good salespeople. Something happened on the way to a sour economy: Too many companies learned the hard way that their salespeople didn't know how to sell. Instead, their salespeople were good at taking orders and providing customer service. There is nothing wrong with this approach, as long as the marketplace is always going to serve up new customers and keep current customers in business. Does that kind of marketplace always exist? Unfortunately, no.
As a sales consultant who works with a wide number of companies, I am not surprised with the current state of sales. In the past 20 years, books and soothsayers have inundated us with advice saying that the best way to grow your company is through great customer service. (Think of companies like Disney, Marriott and Honda, just to name a few). These are certainly great companies, and I'm personally an avid customer of each one. However, if great customer service is all that is needed to win, then why is each of these companies struggling in today's economy?
I don't offer up this example to generate an in-depth discussion on economics and market share. Rather, I put it out there to say that customer service alone is not going to help a company achieve its growth targets. It is essential for salespeople to be focused on selling as their first priority and providing customer service as their second priority.
Selling is about digging in and working with customers to help them see needs they didn't realize they had. It's about helping customers see how the solution for which they are looking can be found in what you are offering. Selling is not about sitting back and taking orders based on what the customer wants. If that's selling, then there really is no need for a salesperson. The entire process could be done on the internet or over the phone. I know that observation just hit a sore spot to many of you reading this. Possibly, you've watched your industry be decimated by the power of the web. Nowadays, many customers can get what they want, when they want it and how they want it, all through their computer.
If your job was lost because of the internet, then let me share something that you may not like to hear, but is simply true: you weren't selling; you were merely taking orders. I am not putting myself on a pedestal, because one of my first sales jobs I thought I was a salesperson (at least, that's what my business card said). In reality, I was doing nothing more than going around to grocery stores and taking orders from store managers. I wasn't selling. I was conveying information and providing customer service.
Today's economy is crying out for salespeople. Are you someone who is willing to be assertive in making phone calls, meeting with customers, and spending time doing what I refer as the "deep-dive" with high-potential prospects to secure the really big business. If a salesperson is not willing to go face-to -face with a customer, then they have absolutely no right to be in sales. The only thing they are doing is hurting themselves and their employer. The fastest test I know to measure a person's aptitude towards selling is to ask them to explain in detail how they develop leads and handle cold calls.
When a company looks to outsource the lead generation process, or spend so heavily in advertising to try to create enough leads for everyone, then they are setting themselves up to fail. Over time they will wind up with a sales team focused on capturing the easy sales. They do this by making everything a customer service moment. This is akin to a pro-athlete thinking because they are a professional, they no longer need to stick to a physical workout program. When a pro-athlete stops their conditioning program, they may not experience a falloff in performance immediately. Over time, however, the decline will be evident. The same is true for salespeople who are not routinely in the game of prospecting and developing new customers. They will lose their edge. The decline will be so slow that they won't realize it is happening, let alone why it is happening.
Each client with whom I have the privilege to work hears this message: The responsibility of finding and retaining new customers is the responsibility of every employee. Salespeople by the very nature of their position must take the lead and be assigned weekly, monthly and quarterly goals of prospecting calls they must make. Management owes them the tools that encompass an effective sales process. This process must include employees outside of sales whose primary responsibility it is to provide customer service. After all, salespeople should focus first on selling. They need the time to achieve this realistic expectation.
Mark Hunter, "The Sales Hunter," is a sales expert who speaks to thousands each year on how to increase their sales profitability. For more information, to receive a free weekly email sales tip, or to read his Sales Motivation Blog, visit http://www.TheSalesHunter.com
Discounting on price is not a sales strategy. It's an impulsive move made by desperate salespeople. In a tough economy, customers think and expect everything is going to be discounted. Because of this, salespeople feel it necessary to oblige the customer to close the deal. Unfortunately, however, this leads to a downward spiral, much like an addiction to an illegal drug. Once a discount is offered to one customer, it becomes easier and easier to offer it to another one. Before they know it, the discount is being offered to everyone. Like a drug, the "fix" is in the additional sales the salesperson is able to gain. However, just like with the addictive drug, there is a "withdrawal." Sales come at a reduced or a very reduced margin. To make matters worse, the discount ends up altering the attitude of the customer who now believes the real value of the product or service they bought is the reduced price and not the full one. Overcoming this mislabeled sales strategy of offering a discount can only be done when the salesperson is willing to change their way of thinking, despite how difficult it may be.
The first step necessary to correcting the salesperson's mindset is to help them believe in their ability to close the sale. Competent salespeople know why the customer is looking to buy and are able to capitalize on the needs the customer has disclosed. When sales professionals begin to feel the need to discount, it's usually because they don't believe they've established a solid reason why the customer should buy from them. They have failed to ask the right questions to get the customer talking and then avoided the critical skill of following up. When a salesperson has spent all of their time touting product features and not uncovering the benefits to the customer, their presentation may not include what the customer actually needs. Only when the salesperson has taken the time to probe deeper will they truly understand why the customer wants to buy. They need to ask the right questions and then listen to the responses. Then they will be able to capitalize on the information provided them.
The second step necessary to avoid the need to discount is to keep the message on the immediate return-on-investment the customer will receive when making the purchase. Keep in mind that businesses don't buy anything, they only invest in things. Every purchase made by a business is seen as an investment in helping them achieve their own goals. For this reason, the message must focus on the immediate gain that will result from their decision to buy. This emphasis is best brought out when the salesperson ties their questions into exploring how and what the customer expects to achieve immediately, as well as how they've measured results in other purchases they've made.
The third step is found in knowing how to respond when the customer asks for a discount or states that the price is too high. Salespeople need to be ready for these objections and not be concerned or disarmed by them. The first time the customer brings up this issue, the salesperson should not even acknowledge what was said. Often, customers feel an obligation to inquire, and once asked, they've done what they were "supposed" to do. The salesperson should only respond to the customer when they have brought the issue up for the second time, and the way they handle it is critical. They need to ask a question that is pointed directly at the most significant need the customer has. This will serve to shift the customer's thinking back to why they're looking to buy to begin with. After they respond, the salesperson should continue the dialogue with a series of follow-up questions designed to uncover even greater needs. The more the customer is focused on their need, the less they will be focused on a lower price.
Finally, salespeople must keep in mind that there will be times when they must be willing to walk away from an order. Although this can be scary and risky during these tough times, it's essential for them to believe they don't need every sale. Not only does walking away help them realize that there are other opportunities out there, it also serves to strengthen their resolve to hold their line and maintain the value of what they are selling.
Holding on price in a down economy is not easy, but it is doable, and, in fact, it is essential! When sales professionals believe in their product or service with complete conviction, focus on the immediate ROI, and ask the questions necessary to uncover the customer's greatest need, resorting to the mislabeled sales strategy of offering a discount will be unnecessary. Maintaining your pricing integrity in a down economy is truly a winning strategy because, in the end, profit margins are higher, the ability to service a customer is better, and the confidence of the salesperson is greater. Especially in today's marketplace, that's worth pursuing.
Mark Hunter, "The Sales Hunter", is a sales expert who speaks to thousands each year on how to increase their sales profitability. For more information, to receive a free weekly email sales tip, or to read his Sales Motivation Blog, visit http://www.TheSalesHunter.com
Making your sales goals in a good year is one thing, but attaining them in a difficult year is an entirely different challenge. Putting aside the common cliché that when times are tough, great salespeople are made, the reality is that making your goals puts more money in your pocket. Therefore, I keep reminding salespeople to think of how many times in the past they've watched a customer materialize out of nowhere only to become a major player in helping reach their year-end objectives. If you've been in sales for any length of time, you've had this happen. I am not advocating that you kick back and relax while you wait for the big customer to appear. I understand that it takes work to make your goal, but, at the same time, don't lose sight that occasionally nice breaks do occur. The good news is that you can be successful if you're willing to take the time to work through the following steps, despite the current state of the economy.
The first step to help you make your sales goals in a tough economy is to break down your goal into weekly objectives. Keep in mind, however, that these should not be based on closing "x" number of sales, but instead on accomplishing "x" number of activities that you've found are critical to your success. When your goals are strictly measured in terms of sales dollars or units, you can easily become dejected by numbers you're not happy with. Activities to monitor may include making prospecting phone calls, conducting customer presentations, or having follow-up meetings. This breakdown strategy is similar to the way coaches successfully motivate their teams. By dissecting the game into a series of activities that the coach knows the team can accomplish, they will be in a better position to win the game.
Second, find a peer with a positive attitude who is willing to take an interest in you. By reciprocating the interest, you will motivate each other. Meet together at least once a week, preferably in person, but by phone or web conference if that's not possible. Keep your conversation focused solely on the positives of the previous week to discuss the lessons you've learned from them and then how you'll be able to leverage those lessons in the weeks to come. Remember, there's no point in bringing negative baggage to the meeting. If you blew it, don't dwell on it. Move beyond it! We all know that it's very easy for one person's attitude to rub off onto another. A positive outlook can create a heightened level of energy that will result in both of you being able to think more clearly and foster new ideas and opportunities. At the conclusion of the conversation, make yourself accountable to the goals for the upcoming week by discussing exactly how you intend to make them. Then, at your next meeting, make sure you take the time to review each other's goals to ensure both of you kept the focus where you expected it to be.
Next, use the time in between each meeting with your positive peer to focus on your key activities. At the end of every day, ask yourself what you've done toward accomplishing the week's objectives. By doing something daily to move yourself towards achieving the goal, it will give you motivation for the next day. Try to avoid putting expectations on yourself to accomplish an entire week's goal in one day. If you can attain it in that short of a time period, you've set it too low and you'll never reach your full potential in sales. At the same time, don't allow the weekly goal to be so difficult that you rarely achieve it. Remember, the breakdown of the activities must be achievable. Missing your weekly goals too frequently will cause you to walk away from the entire process.
Finally, never allow yourself to be influenced by negative voices. Today's economy has created an incredible amount of pessimism, especially in the news media. If the news is negative, don't listen to it! This may include not reading the newspaper, avoiding certain websites, and changing the dial on some radio stations. Furthermore, your friends and fellow employees may even contribute to the buzz. Consider cutting them off before their opinions sway you. For those of us in sales, it's important to remember that people who aren't going to make their goal are going to do everything possible to ensure their peers don't either. The last thing they need is for somebody to show them up. Don't allow anyone to take control of your goals.
It goes without saying that achieving your sales goals in a tough economy is not easy. But, like a leaky roof, ignoring it and refusing to take action doesn't make it go away just because it isn't leaking on a sunny day. Resolve to stop the problems that contribute to your discouragement. You can't control what the economy is doing, but you can control what YOU are doing. Take the necessary steps to motivate yourself to achieve those weekly goals, which, in turn, will help you successfully reach your year-end objectives.
Mark Hunter, "The Sales Hunter", is a sales expert who speaks to thousands each year on how to increase their sales profitability. For more information, to receive a free weekly email sales tip, or to read his Sales Motivation Blog, visit http://www.TheSalesHunter.com
