Sales Tips from Hoolock Consulting
We hope that you find these useful. We try to post a new tip every week so please check back for updates.
Whenever we engage with a potential customer and they show some interest in our product, there is a tendency to pursue them at all costs, no matter whether they say no after a while. We invest our time and emotions in opportunities and it is sometimes difficult to give them up when they are lost. We carry on chasing them even though we are wasting our time.
Walking away from lost opportunities is hard but an important thing to do. If you know that a customer has decided against your product, continuing to chase them wastes your time and risks future deals by annoying them. You are better off walking away, learning why you lost out and applying that learning to the future. Continue to engage with the customer in a non-sales way so that they will consider you next time. There are, as they say, plenty more fish in the sea!
I was at a sales and marketing exhibition recently. Walking around, looking at booths, I was amazed by how few stands made it easy for me to understand what the company did. One company had "Augmented Monetisation" as a feature on their booth. Intrigued, I stopped top ask what this meant. The person that I spoke to had no idea and was completely unable to explain it to me.
There are some very basic things that companies need to do. Firstly, make it easy for your customers to know what you do, don't make them hunt for the value of your product. Secondly, make sure that everyone knows what you do and can articulate it.
Make it Easy
Gary Player is famous for having said “the more I practice, the more lucky I am”. There are a lot of sales people who are believed to be lucky, turning up just at the time that a customer needs their solution. There is no doubt that there is always some luck involved but there is a lot more practice and skill involved as well.
Researching your client in advance should give you some good clues as to their potential needs and the possibility that they could need your solution. The more you look for the right signs, the more you will see the most relevant ones and the more successful you will become. Practice asking questions that draw out the right information to enable you to determine the true nature of your client’s problems. Do this on a regular basis and you will get better at spotting the clues. All professionals practice their skills, there is no reason why a sales person should not.
Recently, I wrote a reference for a sales person who used to work with me. One of the things that I wrote about was his enthusiasm for what he was selling. He was always genuinely excited about the products that he was selling. This enthusiasm is infectious and encourages the client to want the product more.
The tone that you have makes a big difference to the quality and outcome of your meetings. If you are positive and enthusiastic, your customer is more likely to be. If you are circumspect and quiet, your client might think that you don’t really believe in your product. If you don’t believe in your product, how can you possibly expect your client to? Project confidence and belief that the product is going to solve the client’s problems.
Value is not determined by those who set the price. Value is determined by those who choose to pay it. This is why it is so important for a sales person to think like their customer. The simple process can be described as the customer has a problem which is costing them money, you have a solution which can solve the problem, if the solution costs less than the problem, you can make a sale.
Clearly, as the sales person, you know what you would like to charge for the solution. To find out if it is less than the cost of the problem, you need to not only understand the problem but the impact on the customer. Many sales fail to be concluded because the cost of the impact is never determined and so the case for the change can never be made.
Remember to ask about the cost of the problem when you discuss it with your customer. Find some way to calculate its impact and compare it to the cost of your solution. As ever, try to make it as easy as possible for the customer to adopt your solution.
A man from an exhibition called and left me a message this week. He just asked me to call him back, no reason why, just wanted me to call him. This is an exhibition that I am planning to go to so I am at least a little intrigued as to why he is calling. However, I’ve not called him back because he hasn’t given me a compelling reason to.
Just leaving a message for a prospective client is not sufficient to get them to call you back. They are busy with their own work and need to have a compelling reason to want to call back. If you can’t give them one, then its not worth leaving a message. Think of the single biggest reason why a company should want to talk to you and tell them that. If they still don’t call back, the chances are they don’t see a current need for what you have. This can help to qualify whether they are a good prospective customer or not.
Negotiation is a process of movement to reach an agreement that is fair to both sides. It is critical to remember that it must be fair to both sides otherwise it is not a good deal. You only reach this stage of the sales process when both sides want to do a deal. For a sales person, this means that you have effectively won – you just need to agree the commercial terms.
People will not negotiate with you unless they believe that you can help or hurt them. So, if your customer is negotiating with you, it means that they want the product that you have. You should have qualified them well enough by this stage that you know they can afford it and what value it will bring them. This gives you a strong position to negotiate from.
Not all of your customers are perfect. Some of them might be very difficult to work with. There is a natural tendency to want to please everyone all of the time, no matter how badly they treat us. As the saying goes, the customer is always right.
I don’t believe in this. There are more customers out there than you can possibly manage. Its perfectly reasonable to choose the best customers to work with and to avoid working with the difficult ones. See www.paddilund.com for more on this.
Define a set of criteria by which you judge all of your customers and rank them. Then chase the ones that come out top.
If you are going to make a presentation to a client, be sure that you know why you are presenting. If you simply want to raise their awareness of the products that you offer, then you can make a generic marketing presentation. The purpose of this should be to try to determine from the client whether they can see a need for your solution in their business.
A sales presentation comes late in the sales process and should be specific to the client you are presenting to. It should focus on their specific needs and how you are going to help to solve them. It should be part of the process of closing the deal, not a means of finding one.
Sales is a process and each stage needs to feed into the next one. You can think of it as a journey and one that your customer needs to come with you on. To do so, they must be convinced that the next stage is worth their time. This means that you have to sell it to them. Only at the end of the process will you sell your product.
For every stage of the process, consider what the next step should be, is it a first meeting, is it a presentation, is it a meeting with a executive. Whatever it is, make sure that your customer understands why it is important and what they will get out of it. They are giving up their time for you – there has to be some value to them.
Sell the next stage
Behavioural economics incorporates the study of psychology into the analysis of decision making. Nudge Theory explains how small interventions can encourage individuals to make different decisions. For example, we are more likely to donate our organs if we have not opted out rather than we have chosen to opt in.
In sales, most of our customers are not looking to buy our solutions today. However, they are much more likely to buy our solutions tomorrow if we have been nudging them in the right direction today. Try to incorporate some form of nudging into your monthly work. It might be a simple email (like this one!) to remind the client of your products; it might be pop up adverts based on internet searches or it might be a coffee with your contact as you just happen to be passing by.
However you do it, try to remind your customers of what you do on a regular basis.
Everyone has personal motivations in their work. When you are working with someone for a sale, the chances are that they are thinking about how the deal can help them with their goals. Whether it is a promotion, new opportunity or a bonus, there will be something personal that is driving their behaviour. If you can help them with their goals, you have a greater chance of making the sale as their success matches your success.
You are perfectly entitled to ask your customer about this. You don’t need to be blatant about it – ask in an informal setting when it is just the two of you. They are unlikely to open up in a room full of their peers. However you can do it, you should aim to find out their motivation and how you can help them so they are more willing to help you.
Why are you unique?
Its highly likely in any sales scenario, that there is an alternative that the customer might choose to purchase. There are many different types of smart phone for example and no one company dominates the market. The reason that a buyer selects one product over another is related to the uniqueness of their product – what is it that they do that no one else does? If there are no differences, then price will be a factor but if you are offering something unique, you need to ensure that the customer knows about it.
For each feature of your product that is unique, you also need to know why this matters to the customer. If it doesn’t matter, it is not worth highlighting. However, if you have something unique that is important, then you need to shout it from the roof tops. To know what matters to the customer, you need to understand their needs during your research.