A couple of years ago, I conducted some not very scientific research about the biggest problems facing sales people. https://www.hoolock-consulting.com/blog/world-cup-of-sales-problems if you would like to read about it.
The conclusion was that the biggest issue is not persuading a customer to change before trying to sell a product. Before a customer can buy a product, they need to understand how that product will change their existing processes and why that change is a change for the better. If the product is simply presented to the customer without them understanding why they need to change, the opportunity will frequently be lost. Indeed, studies have shown that up to 60% of opportunities are lost to no decision rather than to a competitor. Without a clear understanding of the risk of doing nothing or a compelling vision of “what better looks like,” customers will tend to do nothing.
This means that rather than selling a product, we first need to sell a reason to change and then demonstrate that our product is the means to effectively deliver this change. There are many reasons why a business might choose to change their processes such as:
1. To be more efficient
2. To respond to a competitor
3. To comply with new regulations
4. Changes in the economy
However, before they can decide to change, they need to learn something new. For example, they may decide that they need to be more efficient as a result of a new technology that enables this; alternatively, they may realise that they need to change as a result of learning about a new government regulation that they have to comply with. The need for change comes from learning something new.
Indeed, the Transtheoretical Model of successful behaviour change starts with learning something new:
1. Pre-contemplation – you need to think differently, receive some new information;
2. Contemplation – research, what can I expect?
3. Preparation / Determination – take action, start to see results;
4. Action – doing things;
5. Maintenance – it becomes part of normal life.
So, to successfully sell our product to a new customer, we need to first need to tell them something that they do not already know. This needs to make them think differently about their business. However, this is not sufficient to be successful as any change comes with some risk. So, we need to help the customer to understand the implications of the change. This includes:
· What do they need to change?
· Who will be affected by the change?
· How will the change be implemented?
· What problems might occur?
· What will success look like?
Only once your customer understands all of these implications can they proceed to parts 3 and 4 of the Transtheoretical Model. Part three should involve buying your product and part four should be the implementation of that product.
So, if you want to be successful selling a product to a new customer, you must first identify a reason for them to change and demonstrate how much better off they will be as a result of the change. Then, and only then, can you position your product as the means to achieve this change.