Getting to the root of objection

When it comes to making a sale you have to sift through a lot of problems before you can get to the root: the pain.  Perhaps you’re sifting through price oppositions or busy schedules? Indecision-makers or budgetary constraints? Whatever you’re selling, it’s a solution.  The fact is you can’t provide solutions without really understanding the problem.  And every problem is rooted in pain.

Why pain is important

It would be careless of a doctor to diagnose before giving a full exam.  In sales it’s equally careless to focus on you/your product/your company when you should be focused on your prospect.  In general it demonstrates a lack of concern, and without knowing the pain you can’t prescribe the remedy. Unlocking the pain creates a simple connection between your prospect’s problem and your benefit.

The sore spot: what causes pain?

If you can get to the pain of your prospect you can establish a relationship of value.  One where your client feels heard and allows you to deliver results that matter.  The challenge is getting there.  Because it takes relentless pursuit and a boldly direct approach.  My advice: get direct; it saves everybody a lot of time.  Ask questions.  If they are looking for a new provider, what was wrong with the previous one? If they insist on bottom line pricing, find out why.

How to spot pain

If you’re like me you tend to make your pain heard.  Others try to hide their pain.  Spotting pain is easier than you think.  Just listen for incongruent statements.  For example:

Prospect: Sales in our LED signage department have been declining steadily in the last two years.

Sales: Is that so? Why do you think that is?

Prospect: It’s because the bulbs we use are poor and keep failing in stormy weather conditions.

Sales: Have you considered switching to a more reliable bulb provider?

Prospect: Yes, but it’s not in the budget.

Back to the question:

Can you put a price on pain? Ultimately only the person in pain can tell you how much it hurts. If the pain is fresh it might be at the top of their mind.  But often the pain has gone on so long it’s more like a dull ache they’ve learned to live with.  Putting a price on pain is a good way to push an issue out of contradiction and into decision.  You can help by identifying missed opportunities and applying cost estimations.  Note that not all cost can be measured in dollars but measurable losses can be deduced down to sense.

Test your knowledge and beliefs on these 5 questions.

1. Can optimism be learned? (and, what can Rory McIroy teach us?)

Most people would agree that being an optimist is a great advantage in sport and in life.  But can optimism be learned?

Every golf fan now knows that 22 year old Rory McIroy is being touted as the next Tiger Woods after his record breaking US Open win on Sunday June 19, 2011.  Rory’s victory, however, was as much about overcoming adversity as it was about playing brilliant golf for 4 days.

After his much talked about (and spectacular) collapse at the Masters earlier in the golf season – when he squandered a 3-shot lead going into the final ride – everyone wondered if was he going to choke again in the final round of the US Open.  So how did he overcome the mental hammering that his psyche must have suffered following his Master collapse?

We don’t know for sure, but maybe it has something to do with “the story he told himself,” known as what psychologist Martin Seligman calls our “explanatory style” or “the story we tell ourselves” when we fail.

Our explanatory style can be seen as the way we rationalize and deal with “bad stuff” that happens to us.  There are 3 components to your explanatory style that determine how you rationalize failure and how quickly (or slowly) you will bounce back.

Here is how Rory may have responded to the 3 components that make up explanatory style:

• Is what just happened permanent? “No. I’m a great golfer – this is just a temporary set-back.”

• Is it pervasive – does everything in my life suck? “No. I have so much to be grateful for – just having been to Haiti the week before the open as an ambassador for Unicef put things in their true perspective.”

• Is it personal – was it my entire fault? “Yes. I did have a bad last round but I showed my potential in the first 3 rounds when I got myself in contention.”

According to Martin Seligman – who has great credibility in his field of applied psychology – optimism is something that can be learned [“Learned Optimism” – by Martin Seligman]

The essence of “learned optimism” is to challenge the negative stories we so often tell ourselves in response to the 3 explanatory style questions: “Is this problem permanent, will I never be the same again or is this just a temporary set- back? Is it pervasive – does this affect all aspects of my life? Is it personal? Learning to challenge the story that you personally might be entirely responsible.

Maybe the great Jack Nicklaus – summed it up best when he said this about Rory’s attitude, “He’s humble when he needs to be to be humble, and he’s confident when he needs to be confident.”

Fact or Fiction?

Answer: Fact. Optimism can be learned (from Rory McIroy)

2. “ABC” or Always Be Closing!

This imperative was made famous in the movie Glengarry Glen Ross and is as far from the truth as any of the false myths.

The truth is you can only close people who have figured out that they want to buy from you. It’s your job as the sales person to help the prospect reach the right conclusion and that includes deciding not to buy from you – which may be the right decision!

The better imperative therefore is “always be qualifying;” uncovering a real need and if you have that then proceed to discuss money matters and the prospect’s decision making process before making any presentation.

Too many sales people have a tendency to prematurely move to presentation mode or trying to close before properly qualifying the prospect. They then try to use outdated “closing” techniques and aggressive harassment to try and close the deal.

Fact or Fiction?

Answer: Fiction.  Qualifying is a far better approach (than hounding) to closing the right sale.

3. “Ask for the order?”

Why do you need to ask (or beg) for the order if you have properly qualified the prospect? You don’t.  Just keep in mind that until such time as the prospect gives you a “yes” or a “no” (both of which are okay!) the process remains open.

Fact or Fiction?

Answer: Fiction.  The only rule here is to get a definitive answer. NO MAYBES.

4.   “Sales People are born, not made.”

If you are a man who is 6+ feet tall, has superior intelligence and are very good looking, with all other things being equal you would definitely have the “edge” when competing  against another male sales person less than perfect in natural attributes.

But of course that takes no account of the human spirit and the capacity and determination to want to win. There are so many ways to offset natural disadvantages.

The best piece I ever saw was the story of Bill Porter from the Fuller Brush company, a door to door salesman born with cerebral palsy living in Oregon, Washington.

Bill was physically handicapped and had a speech impediment. As a young man he was given the worst sales territory and then proceeded to score amazing success over 25 years retaining customers and growing the business each year.

Growing up Bill’s mother always told him he “could do anything.” Bill, with his indomitable spirit, believed her. The world came full circle when it became his turn to care for his mother when she developed Alzheimer’s. Bill’s story was one of courage and perseverance against the odds – someone who made full use of every bit of potential he was given.

Bill became famous on ABC’s 60 Minutes before his story was made into the successful full length feature movie, Door to Door.  Bill was truly a remarkable man whose story reminds us about the power of the human spirit overcoming adversity. We all like to think we have a little bit of Bill Porter in us.

Fact or Fiction?

Answer: Half Truth.  Never discount the power of the human spirit in overcoming adversity.

5. The most critical period in the life of a sales person is the first 6 months of their new job.

I asked a sales person who recently got a new job how things were going. Here was his response:

“The new position got off to a bit of a slower start than I would have hoped.  Basically, they offered me the position and that was it, no orientation with the company, training, etc.  So I’ve spent 3 weeks finding out who does what, arranging my own training, figuring and ordering my own gear, etc.  On top of this I just found out that I might not be able to sell in the northern part of the territory and since my industries of focus are mining, forestry, and environmental consultants, this changes the game as I have a lot of contacts in this area and this area is where most of it happens.  I don’t know whether it’s stupidity on my part or just my own stubbornness to succeed, but I am still pushing forward full tilt.”

You might say his company’s lack of support  seems absurd, but this not as uncommon as you might think.

Why is this? Probably because too much emphasis is placed on getting up to speed on product knowledge and the internal processes for things like executing orders and expense reports. After this “initial training” the new sales person is then given a quota sent on the road after spending a week shadowing one of the incumbent reps and told to “get out and sell.”

All of this is fine – but what’s missing?

The following considerations would be a good start:

• Understanding and getting “buy-in” for the quota given and what makes an ideal client target
• If you are expected to both “farm” existing accounts and “hunt” for new business, how much time should you be spending on each?
• What typical objections will you face and how best to handle them?
• Regular check-ins on a daily basis to see how things are going
• What differentiates your product from the competition and how do you best sell that?
• Being very clear about expectations on reporting and who to go to for help

Fact or Fiction?

Answer: Fact.  Getting the right knowledge is critical to your sales success.  But the key is knowing what the “right” knowledge is.

This typically only assumes direct costs, before factoring in lost opportunity costs, not to mention the negative impact on other team members and your long-term relationship with clients.

Therefore when making new sales hires you need to give the process the time and commitment it warrants.

How can we increase our chances of success and avoid hiring “jerks”, “idiots” and “morons?”

Lots of books have been written on this subject, so this is not meant to be an exhaustive list.  We’ll focus on 3 important things that could help you hire better sales people.

1 – Start by clearly defining exactly what you are looking for.

At Sandler* we use a process that goes by the acronym SEARCH – that helps you get very specific in respect to what you are looking for in your new hire.

* Sandler Training is a global leader in business development.

This SEARCH model can be used for any position (not only sales) and embraces 6 steps:

·         Skills – what specific skills are you looking for in this job ? No one has all the skills – so what are the critical ones. Does the job require relationship skills as well as problem solving skills or perhaps the person needs to be good at process. Is the selling cycle short or long which may determine how assertive you want this person to be.

·         Experience – what essential prior experience are you looking for? Can the candidate prove that they have already had some similar success in a prior job that has some similarities in respect to the product and the type of customers. Do they already have established relationships  in place with the end customer you are selling to?

·         Attitude – Microsoft in more junior & middle management positions gives more weight to this than to experience or skills – believing that on the job training can fix a lack of experience and skills – but there is nothing they can do if you don’t have “the right attitude”. It’s hard to define attitude, so maybe you want to start by talking about the candidates beliefs  which drive behaviour .Beliefs about such things as  themselves , the competition, rejection and selling at the “C” level

·         Results – what results have previously been achieved – often a good indicator of future performance

·         Cognitive skills – some jobs require right brain, others left brain and others both !

·         Habits – an example here might be that the person works out on a regular basis and keeps abreast of industry trends

2 – Use psychological profiling.

The use of online psychological profiles can provide other useful insights about your potential new hire that you may not be able to pickup on in the interview process for two reasons:

1 – Candidates are often well coached in what to say and may be good “actors”

2 – Personal bias – “we like people who are most like us”

There are two popular types of psychological profiles: Disc and Devine

Disc is one of the most commonly used profiles available, used worldwide and based originally on the work of Carl Jung. Disc tells us how we like to communicate with others and what energizes and de-motivates us.

Disc also helps us distinguish between “hunters” and “farmers”. The former typically being better at finding new customers – while the latter are better at client retention. [Click here for sample report]

Devine is an alternative tool that complements Disc and measures a candidate on 30 different specific selling attributes from “listening” to “ego” [Click here for sample report]

3 – Think outside the box!

Let me make the point by telling a true story.

In the mid 90’s I was hired to run a building products company with revenues at that time of just under $10 million. Over the next 4 years sales grew to nearly $40 million.

Originally we had only one sales person in Eastern Canada.  We then hired a person in Western Canada followed by 6 regional mangers in the US. I used a headhunter in the US to recruit the 6 regional managers. We set the bar high in respect to qualifications: a post-secondary degree and industry experience were key, and the age was to be in the 30-45 age bracket. We must have spent +/- $ 200,000 on headhunter fees for the hires. In the case of the Western Canada appointment – this happened more by chance than any good management.

The candidate in Western Canada approached me – he was in his early 60’s, had no degree and I’m not sure I really liked him! He was happy to work for a low base of $3000 and 10% commission.

I had no other candidates at the time so I thought, “what the heck? with very little downside risk in respect to compensation or contractually, I have little to lose!”

Fast forward to 4 years later, what were the results? This man consistently out-performed all the other sales people – not by a small amount but by a significant margin.

Moral of the Story

I had gotten lucky and had learned a really important lesson. Clearly defining what you want in a new hire makes sense. That having been said you need to be sufficiently open-minded; that you do not shut down options that are outside your (too) narrowly defined specifications for your ideal candidate. Be careful to watch out for personal bias and prejudice about age and lack of education – they have nothing to do with drive and ambition - a critical component in many positions, especially sales!

“Je m’excuse, Mr. Picasso,” she said with her best pronunciation, “would you sketch me?” and in her request coyly slid a napkin across the table between them.

Picasso contemplated the woman for a moment then pulled a pen from his coat, saying nothing.  When he finished he slid the napkin back to the woman, who nearly wept in exaltation.

“Merci, Merci!” she exclaimed, “what can I pay you?” the woman asked half-heartedly reaching for her purse.

“5000 Francs madame,” replied the painter.

“5000 Francs?! But it only took you five minutes?”

“Je m’excuse madame, in fact it took me all my life.”

The Price Objection

Ah the price objection.  That stubborn, tight-purse stringedness that we understand all too well when we’re the one holding the purse – usually a last resort negotiating tactic for big purchases like televisions. And for some of us the negotiation itself can become such a thrill we find ourselves haggling over $5 trinkets in fishing towns.

But when you’re running a business the price objection is an unwelcome obstacle.  Many of us find it difficult and aggravating to defend our price, especially when that price is already competitive.  There is a better way.

When in business, do like Picasso

Picasso wasn’t daunted by the request of an overbearing tourist asking him to draw her portrait.  Demanding clients are par for the course.  Usually those same demanding clients are the ones who want the best price too.

Leaving aside the “discount debate,” have you ever thought about what you’re worth? Picasso understood that all his years of study and work as a painter created in him a value that extended far beyond five minutes of drawing.  Why defend your price when you can explain your value?

Another way to contemplate value is through your differentiator.  Think about computer programs with their checkmark columns that distinguish the basic kit from the premium from the professional.  In these scenarios it’s obvious to see that the professional package is the most comprehensive – maybe more than you want or everything you need.  But what about your competitor’s “professional package?” When all the checkmarks matchup between you and the competition, inevitably there has to be some differentiator that tips the scales of the customer’s mind – preferably in your favour.

Don’t dare to compare, be different!

Establishing the worth of your time and experience is fundamental in understanding your value.  Once you know your worth you can easily communicate it to your customer.  But there is a caveat – value is perceived in the mind of the customer.  Lead with your differentiator, prove yourself an expert, and insist absolutely on value over price.

Should I use one of these templates?

The short answer is no. Anything that represents your business as a whole should not be template based. To me, and most people browsing on the web, a website now represents more than generic piece of information available 24/7, it’s a direct reflection of your business. Especially since in most cases it is used in the judgement call of doing business with you or not (even in B2B!) if they are getting to know you for the first time.

So, when discussing templates, it really comes down to three main problems that relate to expressing the unique nature of your business: templates are limited in customizability, they often have poor usability, and ultimately lack an expression of your unique selling proposition.

Why is customization a concern?

For one, templates are very image centric, versus content centric. It forces you into thinking about how to fill in the template, rather than on what content you should be presenting to your prospects. For example, you want to add a fifth top level menu for your custom business process, but you can’t, because the template only has room for four top level menu items. You are also likely forced to use image banners of a specific size / type, again limiting your expression. Finally, most templates use Flash, and while this might seem cool, it’s really not. Smart phone compatibility aside, animation, especially one that’s generic, is simply a waste of your visitors time.

Usability is very important to today’s web surfer

More and more people are using the web constantly. In fact, in some demographics they use it more than they watch TV. Designers of templates take little heed in understanding your demographic, how the site is used, and often ignore basic usability guidelines – like how the menu works, or how search is integrated. How do your visitors react? Simply – by leaving your site!

Templates also often lack proper search engine optimization (and as mentioned above use Flash more often than not). Template designers care little about this important aspect. The fact is templates are designed with you in mind, since you are the one buying, not your consumer.

Highlighting your business’ uniqueness

Above all, the greatest problem with templates is that they lack an expression of your unique selling proposition – your position in the market. Your website is part of the sales process, whether it’s simply used for information, or for actual interaction like product demonstrations or white papers.

Using a template greatly limits your own thought process, and de-values the process of thinking about your position, your brand, and the importance of the content you present. Instead you spend time thinking of how the content can fit the template, and filling in the gaps.

If you are not different, and do not present any added value, you can easily go down the slippery slope of becoming a commodity – perception is reality. And if you’ve ever dealt with selling or buying readily available commodities you know that it can only come down to one thing – price.

So where do I go from here?

When thinking about web presence your goal should be to represent your business and it’s uniqueness as clearly as possible. Prospects that aren’t personal referrals (and even in some cases when they are) first go to your website to get an idea of who you are, how you work, and who you’ve done business with in the past. Making a good first impression on your site is important and can give you a real leg up.

I know it can seem like a hassle, especially when you have the easy option of getting a template in 5 minutes, but spending some time early on to really explore how you want to express yourself online can pay big dividends. It will provide you with positive re-enforcement of your unique value, attract the right type of prospects, and ultimately greatly shorten your sales cycle.

Trying to make the transition from successful “corporate guy” to “wannabe entrepreneur” was a big challenge – digging deep into my savings and my ego!

It was a painful adjustment waking up to the “new reality.” In the corporate world I’d taken plenty of things for granted. There was an established brand and sales momentum and my pay cheque came in every month – even when I went on holidays! I had a team with complementary skills who could compensate for my own shortcomings, others to share goals and dreams with, people who would also hold me accountable, and, most of all, at the end of the day there were successes and failures to celebrate or commiserate.

Now that I was on my own all that was gone. Yikes! What had I done?

The Turning Point

Things continued along rather scarily until about the 18-month mark, when I made the decision to take on a partner and together we started building a real business.

I was extremely fortunate to have worked with Chris in one of my last corporate jobs. He was younger than me, but we had complementary skills and personalities and we respected each other – so critical in any relationship!

In the summer we would meet prior to a round of golf to “work on the business.” We would have a hearty breakfast and then spend a good couple of hours mapping out our future strategy. We would sometimes continue our discussions as we walked on the course and sometimes we’d finish the day with a “cleansing ale.”

Friendship, competitive golf and some real business development – things were turning around indeed!

Complimentary communication Styles

From a communication perspective my DISC* style tended to be more expansive than Chris’ (some might even say “rambling!”). Chris on the other hand tended to be more fact-based and incisive, asking more tough questions.

Neither style was better but we appreciated and respected the differences. We operated better together – especially in a team selling and training environment, where there were always two sets of different ears operating simultaneously; picking-up parts of the conversation the other party might have missed.

* DISC is an assessment that classifies a persons preferred communication style with others. It was one of the innovative tools used by Rider Cup team captain, Paul Azinger to determine his best pairings for the winning U.S. Ryder Cup team in 2008

Capitalist values and the trend to home offices

In our capitalist world we value qualities like independence, being self-sufficient, not asking for help. Paradoxically these same values can potentially rob you of the support, fresh perspective and new ideas that others can bring to a situation.

In today’s economy many people are working from their home offices. This is the “new normal” and a trend that will only increase with time. It might be efficient from a time perspective but it comes at a price. We run the risk of being isolated and without the support of others can become increasingly less motivated and less productive.

The Solution

Simulated “survival tests” show that an effective team will always outperform talented individuals working on their own. Recognizing this to be true we may need to consider hiring others for support and to complement the skills we may not possess ourselves. Of course it may not be possible to hire someone permanently or it might make sense to form a “strategic alliance”. Regardless we can all operate better and feel better if we build a diverse support group which will allow you to tap into the rewards and skills of a “virtual team.” Nobody is perfect – but a team can be!