To Sell or Not to Sell

Getting ready to head off to do my radio show, it was a typical Sunday afternoon as I ran to answer the incessant ringing doorbell.

Who could this be on such a beautiful day?I peeked out the small window at the top of the door and saw no one. Likely a neighbor’s visitor realized they were at the wrong house. Just about to trudge back upstairs, the doorbell rang again. Hmmm… funny business here. I opened the door and at first saw no one until I looked down and there was this miniature human of about eight years of age with a small box tucked under one arm. He looked up at me with the archetypical big eyes of an eight year-old that wants something. I brace myself for the inevitable cookie, candy or magazine pitch. You know the old, “Good afternoon sir. Would you help me to win a chance to summer camp this year,” and so on.This kid stares me straight in the eye and says: “This your place?” Stunned I blubber, “Yea.””You’ve got nice plants,” he says.”Yea they’re not bad,” I stammer feeling dumb.”They’re kind of like a forest. Did you grow them yourself?” my amateur Botanist asks.”Yes it’s taken several years but we pretty much planted all of them ourselves.””Who keeps them clean?” he inquires.”Well we have a gardener and we keep after it. Are you wanting to do yard work for people, or something?” Now I’m beginning to wonder what this is all about. Next this kid says something that completely blows me away.”Nah, I don’t do manual labor. But I bet you get pretty tired doing all that planting.”I laugh and figure OK, I’ll play along. “Yea, sometimes we do get tired.”Suddenly this kid beams with a huge smile. He thrusts the nearly forgotten box directly in my face. “You need energy then. You need to buy some cookies.”Now I’m rolling on the floor laughing. “OK, you’ve got me kid, give me a box.”I hand him the cash, he turns to go, then stops and turns back around to look at me. “Have you got any friends that need energy?”Naturally I relieve the kid of his entire remaining inventory of cookies and realize I probably just met the next Bill Gates.
After my interaction with the eight year-old genius, I was again reminded that sales is not about jamming your product down somebody’s throat, or laying on a pitch so thick it makes the prospect gag for fresh air. It’s about getting people interested in YOU by being interested in them. Smart entrepreneurs, professionals and technical experts know that the true secret of success lies not in how great your product or service is, but rather, in how skilled YOU are in building genuine relationships with others. Many people view great salesmanship as great showmanship. This is sometimes true. Showmanship is characterized by the development of sophisticated and polished presentation skills that almost unfailingly dazzle (but do not always win the business). Using enthusiasm and showmanship can help us to encourage more interest in our product or service and build greater conviction. But the art of salesmanship is often times the concealment of salesmanship. Some might even say the art of salesmanship is the absence of salesmanship.

The art of salesmanship is the concealment of salesmanship and is often characterized by well-prepared, interactive questions that elicit the “right responses” from the customer. This creates greater interaction with and feedback from the customer. Of course leading questions usually reveal what you think the issues and problems are, not what the customer knows they are.It often takes a lifetime in sales before one has the confidence to say almost nothing and communicate effectively. And that, as the wise old sage said is the “true art of salesmanship, and of life.” When you’re coming at things from their perspective or point of view, you’re selling from legitimacy. The switch is on, and you can solve or understand any problem. When you’re not, it’s off.Reflect on your own growth regarding the art of salesmanship. Pick out a single habit or practice that you know could be improved regarding legitimacy and customer communication. Work on it every day until it’s much better. Then move on to some new weakness.Stand aside from the situation and ask yourself, “If I were this customer, and knew everything that he knows about my competitors, my products and the application of my products in his situation, would I buy from me?”If the answer is yes, welcome to the world of legitimacy. All you need to do is get up to speed on the knowledge and communication skills needed to transfer your understanding and wisdom to the customer.If the answer is no, you’d better start adding value until you can say yes, because the only alternative to legitimacy is the old ‘razzle-dazzle.’

The Most Profitable Sales Call: Calling Past Due Customers

This weeks business update comes from Abe WalkingBear Sanchez, a business expert based in Colorado. Check out his website at: www.armg-usa.com

Current Credit Customers Keep Buying and Buying and Buying

Miami
The four day national business conference featured about 40 business speakers. One of the speakers was a sales management expert; I was speaking on B2B credit management.

I was telling the “Sales Management” speaker that as a corporate credit manager I’d print out a list for each sales person of their past-due credit customers. I’d might as well have called it the “Avoid” list.

“Don’t sales guys understand that the most profitable sale is the repeat? That it costs 8 to 14 times as much to find and sell new customers as it does to keep and sell to existing customers?”, I asked.

“Unlike you, Abe, most salespeople like people and want to be liked in return. They avoid anything they think of as being confrontational.”, he said. It’s a good thing for the smart aleck that I haven’t hit anyone since I quit drinking.

Hold or Hide
Believe something and it’s true, at least to you. In business there still exists an out of date and misguided belief that past due credit customers are bad; that past due credit customers can’t / shouldn’t buy. This “risk management” view of credit and A/R management results in credit managers spending much of their time releasing orders from the “credit hold / do not sell” list, and leads to salespeople crossing streets to avoid an oncoming past due customer.

The only credit customers that should be placed on “credit hold” are those few who for whatever reason can’t pay or who are trying to avoid paying. The vast majority of past due customers are good for the money and will pay. There are good reasons why most past dues don’t pay within terms.

Past due customers not only represent potential lost sales, they also represent an opportunity to elevate customer service levels. Listen to past due customers they’ll also tell you how to improve on your business processes.

Why Don’t They Pay When Due?
Many credit customers become past due because they’re disorganized or lazy about their A/P function. Some are playing games with paying vendors and suppliers; mistakenly thinking that practicing cash management (using vendors/suppliers as a form of short term financing and not paying late charges) is a good thing. Many more past due customers don’t pay because something is wrong.

There are also customers who don’t have the ability to pay when due, but can and will pay in the near future. A small percentage of customers can’t pay and have no idea when they will be able to pay. These are prime candidates for a bankruptcy filing. The smallest percentage of past due customers are those who are trying to avoid payment altogether; the best thing to do with these “avoiders” is to write them off and assign them to an enforcer; a collection agent or attorney.

The reason for contacting past due customers is not to collect, that what the enforcers do, but to “complete the sale.” The goals being to keep credit customers current and buying, and to identify and control the small percent that represents a potential for loss.

Four Steps in Sales/Completing the Sale
The same 4 major steps are found in both sales and in completing the sale (past due A/R management).

Step One: Contact the Decision Maker
In sales the decision maker is the person who can say “yes.” In past due A/R management it’s the person who can tell you when you’ll be paid and just as importantly why you weren’t paid when due.

The best opening in a completion of the sale call is “Our records show invoice number so and so, dated __day of __ for ___dollars still being open, can you please help me with this matter? Shut up and listen.

Step Two: Determine Need / Desire / Type
In sales we ask questions about the customer’s needs or desire so that we know their “hot button.” In completion of the sale we ask questions about why the customer hasn’t paid so that we can determine the account type.

Step Three: Push the Hot Button
In sales we want to point out how our product/service meets or exceeds the customer’s expectation, their hot button. In completion of the sale we want to resolve why the account is delinquent.

If a customer is disorganized or lazy we become a friendly squeaky wheel.
If something’s gone wrong, we fix it.
If a customer has a short term cash flow problem, we work with them and encourage them and continue buying from us.
If a customer has no idea when they’ll be able to pay we need to cut off further credit sales and move at once to improve our position on the account (liens, notes, personal guarantees, returns, barters).
If a customer is uncooperative, lies and breaks payment or other arrangements we need to cut off further credit sales and then get them out to a collector.

Step Four: Close and Follow Up
In both sales and completion of the sale, we want to repeat the understanding and then calendar the account for follow up.

Telemarketing to a Captive Audience
One of the best credit managers I’ve ever met was a woman in Evergreen, CO. The first thing you noticed in her office was a bulletin board covered with pictures of children. There were black kids, white kids, Asian and brown children. They were her customers’ children.

“I love my job” she said. “I get to come to work and call my friends all around the country on my employer’s long distance service.” By coincidence all her friends worked for her employer’s customers in the A/P department.

Calling past due customers can be enjoyable, if you make it so.
Early and cheerful contact combined with fixing things that go wrong, and the identification of potential losses leads to reduced losses, better cash flow, more repeat sales and higher customer service levels and customer retention.

The Author
Abe WalkingBear Sanchez is an International Speaker / Trainer on the subjects of Profit Centered Credit / Sales and bottom line enhancement. A hard hitting and fast paced speaker, Abe brings life and energy to a critical business function whose true potential has yet to be realized by most businesses.

TEC (The Executive Committee), “Inc.” Magazine Annual Business Conference, CU (Denver), CSU (Ft. Collins), Texas A&M, NACM, IDA, AWCI, ARWI, PEI, BCFM, RAB, STAFDA, WIMA, ISD, Pet Industry Distributors Assn., Rain Bird, American Lock, Southern Wholesalers Assn., IBM, Touchstone/2000 Software are but a few of the groups, schools, companies and associations for whom Abe has conducted programs.

Abe can be reached through:
A/R Management Group, Inc.
P.O. Box 457
Canon City, CO 81215
(719) 276-0595
e-mail: Abe@armg-usa.com
website: www.armg-usa.com

Copyright 2004 A/R Management Group, Inc. www.armg-usa.com All Rights Reserved.

The Art of Persuasion

While preparing for the “Attract More Business” workshop I began to think about the two schools of thought in approaching customers. The more conservative alternative has always been to propose benefits to customers in an attempt at building value. The more recent approach encourages discovering the customers “pain” and emphasizing their problems rather than your company’s benefits. Both approaches seem to hold merit but I began to think about how I could reconcile the two, when a recent experience came to mind.

I was talking to a successful business owner who was interested in hiring our firm to do business improvement coaching and consultation. I couldn’t help but tune-in to the negative way he spoke about his current situation.”Business has really been in the tank lately,” he told me. “This economy has hurt us and I don’t think we have that edge over the competition anymore. It doesn’t seem that our people are working as a team or that they’re even pulling in the same direction.”I nodded gravely matching his look of somber seriousness. “Our marketing isn’t working as well as it has in the past and I don’t even know why I bother to advertise anymore,” he concluded shaking his downcast head over slumped shoulders.I asked him some more questions and he proceeded to paint a picture as dark and depressing as any Edgar Allen Poe story. It seemed that no matter what I asked this fellow he had a negative response. I began to notice a trend.Finally, he asked if we could help him. I told him I thought we could and that it would take six months and a specific amount of money to bring about the desired change. When he heard this he said, “Wow Mark, that’s a lot of money and six months is a long time.”This is what I told him: “I understand how you feel. You have a difficult decision to make. You have to decide which is worse. Is it WORSE for you to invest the time and money. Or is it WORSE for you to wait and see if it’s going to get better all by itself, knowing that it very well may get WORSE.”Which do you think this person chose?He called me not long after this and told me, “Mark, I gave this a lot thought and I can’t afford NOT to do this.”In other words he made the decision to purchase our services based upon comparing the risk of purchasing the service versus the risk of letting his situation get worse.Ordinarily I would encourage this person to purchase our services based on the benefits or the opportunities we would offer his company. But because I noticed this person was more focused on the negative elements in decision-making I switched my orientation from benefits to risk. To this person, reducing risk is far more important than improving performance or creating opportunities.This is not true for every person because each person’s decision-orientation is different. It takes strategic listening to discover the other person’s decision-orientation. Only when we discover this can we adjust our language and unspoken communication to fit the other persons perception and orientation. Some may have heard of “mirroring.” This technique is similar but a hundred percent more powerful.Many communication specialists today have made a clear connection between language and persuasion. In essence what they all agree on is that different people respond in one of two ways: positive orientation or negative orientation.Dr. J. Mitchell Perry talks about this in his book, The Road to Optimism. He says that these two types of people display opposite and opposing traits in decision-making. Those that make decisions that “capitalize on their strengths” or those that “compensate for their weaknesses.” The person who compensates for their weaknesses will usually be looking at “what is wrong” and the person who capitalizes on their strengths will usually be looking at “what is right.” This has a bearing on how we approach them.The person who compensates for their weaknesses is typically the type of person who will do everything they can to minimize risk. The person who capitalizes on their strengths will look for opportunities. Understanding your customer’s orientation is critical in persuading them to see things from your point of view.Decision-orientation is just an example of the kind of communication technique, which we will practice at our upcoming workshop, “Attract More Business.” There will be very little lecture at this event. It will be very interactive and focus on applying and practicing new marketing approaches so that they create a dramatic impact in your business.

Take a Step Back

Most of us have experienced that, “too close for comfort” feeling. You know what I mean. That’s when someone decides they will stand or sit just a little too close to us for our comfort. I spent a lot of time in Asia as well as in Europe and I quickly became aware of these cultural differences.

I noticed that the Japanese would never stand too close. They would never even touch my arm in a gesture even after we became very good friends. It seemed to them that getting physically close to a person implied some sort of personal, off-limits, intimacy – something which had to be earned.On the other hand, I found that the Europeans (Italians, Spanish and French) would often stand very close when speaking with me. They would touch my shoulder or hand when making a point and even put their arm around me. I would keep backing up until there was no where else for me to go. I was hoping they would get the hint. I wanted to say, “give me some elbow room!” It was a tough situation at first. If you tell this person to stay out of your space, feelings will be hurt and a potential business relationship could be lost. Initially, I felt they were invading my personal space but after a while I realized there was nothing strange about this. It was just their way.Don’t Get UsedOften times selling can be like this. The closer we stand to the customer, the more they want to back up. Why? – out of self-preservation. They want to protect themselves from being sold or from being forced or tricked into a decision. Some customers are even more strategic. They feel that if they can keep you at bay, play hard to get, then you will work that much harder to get closer to them. In the mean time they will play you for all you’re worth. While you’re working your tail off at trying to add value and build a relationship, they will be extracting all of your knowledge in an attempt to use it to “improve their current deliverables and price.”In other words they will use your information to “beat up” their current supplier to get an even better deal or better service. In either case all of your efforts to “get closer” to the customer have failed to get you the business. You thought that since the customer allowed you to “get close” that you were building a good relationship which would result in you getting the business. Sadly just the opposite is true. In most cases the sale is typically lost or gained in this very critical rapport step. The die is cast in the first meeting when seller and buyer are eyeing each other up. How can we ensure that we don’t get used?Rapport is a Two-Way StreetIt is interesting to note that while salespeople have a reputation for being manipulative, disingenuous and shady; it is the customer that seems to most often manipulate circumstances to their advantage. Think of how many times a prospect or a customer has told you they were interested and that they would get back to you yet they never did? Or how often they gave you strong buying signals, positive affirmations on your product or service or even a purchase commitment only to never return your phone calls or emails? If you’re like most, this happens more often than not.The bottom-line is that rapport is a two-way street. To be an effective salesperson we must be skilled at creating “influence.” Good “influencers” go beyond building rapport with the customer. They create an environment that helps the customer feel good about building rapport with the salesperson themselves! The biggest barrier to building rapport is what I like to call the “salesperson act.” This is where the salesperson focuses on building value by presenting features and benefits, looking for objections to “handle,” and side-stepping the customer’s questions about price. Remember rapport is a two-way street. Look for ways to get the customer to be comfortable with you. Let them see that you are, in fact different from all of the other salespeople that call on them. Hold the customer accountable to the same standards for which you hold yourself accountable.It’s All About PerspectiveWhen customers understand that we really are more interested in their viewpoint rather than making a sale they will tend to become more honest with us. How can we accomplish this? It’s quite simple really – by asking a series of strategically planned and well-thought out questions. Asking intelligent questions of the customer demonstrates that we have done our homework. It gives us the opportunity to show that we really do care, that we really have done some deep pre-approach and that we understand their pains, motives and political circumstances. It also demonstrates to the customer that we are wiling to take on the customer’s perspective. But most of all it gives us the ability to “take a step back.” The customer does not feel threatened. They do not feel as thought they need to defend themselves by manipulating you. They feel as though you are “willing” to be part of their solution. While this type of selling culture may be awkward and different for most, I can assure you it works.So if you’re looking for a way to “get closer” with your customers and clients, take a step back.I hope that this “Business Update” has been helpful. For more information on the Small Business Advisory Network, please feel free to contact me at 310-320-8190 or mdeo@sbanetwork.org.

Sales Capacity

What is your sales capacity?

How do you know that this really IS your capacity?

I think that most sales professionals grossly underestimate their capacity. There are a number of things that negatively affect our capacity. Here are a few:

  1. The Forecast– Often our capacity is determined by our company’s quota or forecast. We should never let someone else determine our level of success. In my mind our company, quota or forecast should be our “baseline” rather than our capacity. We should set daily goals that exceed the forecast by 20 to 30%. In this way we can ensure that we blow away our quota.
  2. Limiting Thinking– This is a killer for someone in the selling role. Even the most “positive” individuals can impose limitations on themselves. These have often been thrust upon us as children or life experiences cause us to feel that we are capable of only “so much” success. This is why I recommend that salespeople spend at least one hour every week reviewing their vision plan and long and short-term goals. This helps us to focus on the future possibilities rather than the failures of the past.
  3. Misalignment of Goals– Often times our daily activities are out of alignment with our goals. If we are very clear on our vision for the future and the specific goals that we need to reach in order to get there, then we must ensure that our daily activities are a reflection of our vision and goals. For example I play classical guitar and one of the goals is to teach guitar when I am in my 60s. Additionally, part of my vision is to establish a scholarship for students of classical guitarist. My daily activities must include practicing the guitar for several hours if I am going to achieve this vision.
  4. Mistaken Priorities– Another thing that can prevent us from performing to our highest capacity is mistaken priorities. In my coaching, I hear people say, “I’m working as many hours as I can Mark.” We need to ensure that we are working “smart”, however, and not just “hard.” It is most common for people to do the easiest things first. Often the hardest things are the most critical. Yet this just reinforces the procrastination that keeps us from achieving our goals. In order to expand our capacity I recommend that we do the “hardest” things first. This allows us to not only get the most difficult and often critical things finished on or before schedule but it builds motivation and confidence.

I encourage you not to settle for less than your true capacity.

You say you don’t know your capacity?

Then be willing to push the limits.

No one I know ever died from trying to hard!

Have a great week!

Overcome Objections

In his youth, futurist Roy R. Anderson believed that truth alone — when well argued — would convert others to his viewpoint. If his was indeed the best solution, than by force of sheer logic others should agree and follow his advice, putting thought into action.

Many of us have shared this misconception at some point in our lives. Frequently, we have been disabused of it abruptly and with some damage to our egos and careers. The challenge of changing minds has led strategic planner Pierre Wack of Royal Dutch/Shell to rank it as his No. 1 task: “The job of the strategic planner,” he says, “is to change the picture of reality in the head of the CEO.”(Emphasis added.)We’re all familiar with strong-minded managers; we’ve worked for them. Or are them. But the term “corporate culture” — the idea that organizations hold a collective picture of reality — is still a concept with implications we have only recently begun to explore. The CEO we wish to influence may have shaped the culture (as did the elder Watson at IBM, the younger Henry at Ford Motor) or he may merely embody it. Either way it’s there.Today, it may be the most powerful reason that advertising agencies should exist. And the best explanation of why some are better than others.And as Anderson found during his career at Allstate, facts and logic alone are not enough. They are usually necessary, but not often sufficient. Because to sell our ideas, and your products, we must overcome fixed perceptions of reality that all-too-often have little to do with either.To attest that this is no new thought, the quote below is from Aristotle’s Rhetoric. But more contemporaneously, sales training aimed at enabling us to overcome objections does only half the job. Thus, it leaves us frustrated and resentful as we are figuratively tossed out on our ear once again by the big customer whose order we crave. We counter every objection, but he doesn’t buy. And we wonder, Why?”One who attempts to move people to thought or action must concern himself with their emotions. If he touches only their minds, he is unlikely to move them to action or to change of mind — the motivations of which lie deep in the realm of the passions.”
AristotleThe answer lies in the passions, or what we call subjections. Here’s a short list that will show you what we mean:OBJECTIONSPrice
Delivery
Service
Quality
Performance

SUBJECTIONSTriviality
Image
Foreignness (to our experience)
Risk
AestheticsFacts and logic can overcome objections. But only creativity, which speaks to inner needs, can overcome subjections; for example, the concern that a decision may entail more risk than the corporate culture will forgive if the plan fails.As Mike Sloan, a Miami, Florida agency founder says, “Good ads take one of two approaches: an exercise in persuasive logic you can’t ignore. Or an exercise in charm so likable you want to buy the product or service…Great ads are made of superb logic and great charm.”Logic alone might be enough, were it not for the passions we have spoken of that must be charmed.Business relationships are based on utility. If we can be of use, we may be able to form the bond that cements a sale and makes a customer. If we’re of no use, all is lost right from the beginning.Second, business relationships must be characterized by trust. No matter how many contracts are drawn, they ultimately prosper or wane based on the mutually held conviction that the parties will do — not only as they’ve promised formally — but all that their role implies. It is the understanding of this implied obligation, and the grit to meet it always, that separates a trusted business partner from a mere vendor.A third vital element is energy. We trust and rely on those whom we believe to be most active in pursuit of our goals (and protective of our interests). Energy (the ninth sales call) is perhaps the most underrated single element in successful businesses.Finally — and by now almost minor in its role — is advantage (the objective elements of quality, price, performance, service, delivery and the like). This element of business relationships is what we all know best from training and experience. It is what we once thought, perhaps, was sufficient. It is, in reality, fourth in long-term importance, as technology continues to undercut its most essential parameter — time.Advantages once held for product life-cycles that spanned decades now disappear in months. (Look what happened with video games and VisiCalc!) Sophisticated marketers increasingly understand that the “technology game” varies little from product to product and that time is on the side of the lowest-cost providers.But IBM survives and quite nicely, thank you. Not because Big Blue makes the best, most powerful, fastest or cheapest computer. But because the company demonstrates a nearly- amazing capacity to deal successfully with such a wide range of subjections, and satisfy the demands of almost every corporate culture.How do we get there from here?
An honest answer: we know the way but we’ve never been there. In our defense few have, because the new paths are only now being blazed. Industrial advertising is often considered a sort of commercial analogue to bailing a boat — do just enough of it to avoid sinking. In this environment recommending that a client do more of it seems utterly self-serving and irresponsible.Yet advertising does not exist to prevent disaster, but to create prosperity. “We are in the business of changing things,” Paul Harper said. “We, as advertising men and women, are the great energizers of this marketplace.”Indeed, all advertising exists to energize the marketplace, and thereby contribute to increased sales and profits. As such, it is an integral part of selling.In fact, as far back as 1905 it was described as “salesmanship on paper.” There has never been a better definition.The truth is that selling is closer to the nub of things than even many of its advocates like to admit. Like protein and beauty, it satisfies real needs. Like hunger and aesthetics, it is a force beyond the control of politicians and philosophers.”Nothing is so powerful as an insight into human nature…what compulsions drive a man, what instincts dominate his action…if you know these things about man you can touch him at the core of his being.” — Bill BernbachThe marketplace is a Rorschach of human instincts. Chaos is both its limitation and its appeal. Diamonds! Or are they rhinestones? Or cut glass? Whatever, they sparkle in the sun, shrouded by the dust stirred by avid profiteers, indolent browsers, the craven, the hopeful, the young with their dreams, the old people to whom every layered display of goods for sale is both validation of a life’s ambitions, and unalloyed rebuke for all its failures.So the new paths we have spoken of evoke the past as they point to the future. For as technological parity returns us to a focus on the human psychology of salesmanship, it is the utility, and trust, and energy of honest businessmen that will provide the ultimate advantage. And these attributes — based on a new and far more profound analysis of the customer’s real needs and how they are affected by the culture in which he operates — must be conveyed with clarity, impact, and conviction.Conveyed, how?
By advertising.
By advertising that goes far beyond specifications. Far beyond its traditional role of creating awareness of a brand, and some comprehension of its features and benefits. Tomorrow’s advertising will do these things, yes, but almost incidentally.
The minor significance of the old trilogy — awareness, comprehension, and preference — has been demonstrated for years by the Ebbinghaus Curve of Forgetting, which falls off in insolent mimicry of the upward-bound course of these values under the positive pressure of advertising.Yes, what people learn they forget. The more ephemeral the knowledge, the more rapid its loss, and in an age of technological parity most knowledge seems, if not trivial, certainly less than crucial. We are not advertising nylon, or neoprene, or the transistor. We’re stuck with gradations and nuances, generic features and fragile benefits. Forgetting comes easy.So it is essential that we go beyond awareness. Success in the future will depend on opening much more than a sample case of today’s wares; it will necessitate opening up whole companies and merging cultures; of inviting the uncertain prospect in, setting him down and talking turkey.We call this process Access. A major step beyond Awareness, it conveys that you and your company are open and receptive to the needs of your clientele. It validates your utility and trustworthiness. It exemplifies the energy you devote to satisfying your customer’s needs.It overcomes the emotional objections. The end game. Partnership with your customers in a relationship marked by a depth of real rapport, ensuring that they are never likely to forget or forsake you.

High Level Decision Makers

HLDM. What is it? A new drug to counteract high cholesterol? The latest high definition, plasma TV technology? Not at all. HLDM stands for High-Level Decision Makers. And contacting HLDMs can improve sales performance probably more than any another selling tactic.

It comes as no surprise that most salespeople feel locked in at lower levels and are unsure of what to do to get to the hi-level decision maker (HLDM). Hi-level value added selling means selling at the highest levels in an account. It’s a philosophy of partnerships and value creation for the customer. Calling on the HLDM means talking to someone who has the ability to say “Yes” and “No” to your idea. Generally, it’s someone in upper management. They create budgets for ideas they like and pull the plugs on projects they feel waste resources.A recent study concluded that eighty percent of hi-level decision makers admit to getting involved in sales early in the decision process. Yet only 5% of all salespeople ever get to this decision maker. How could this be? Are these decision makers pulling the strings behind the scenes? How can sales professionals influence these decision makers?Why face the HLDM?
Calling on HLDMs shortens your sales cycle, gets you better treatment throughout the account, and creates additional pull for your idea. There’s less competition at the top because most salespeople are too intimidated to call on the HLDM. And when was the last time you heard an HLDM say, “I don’t think there’s enough budget money for this idea I really like.”In the sales and marketing classes that I teach weekly and in my consulting practice, I ask salespeople why they failed to call higher in their accounts. Here’s what I often hear: “I’m afraid I will offend my lower-level contact,” or, “They won’t see me,” and “I’m intimidated by the HLDM.” Lack of confidence, knowledge, or skills hold back most salespeople from calling on the HLDM. There are a number of myths surrounding these HLDMs:

  • They’re difficult to get an appointment with.
  • They’re eight feet tall and bigger than life.
  • Every one of them has a Harvard MBA or law degree.
  • They despise salespeople.
  • They eat their young.
  • They’re better than you.

HLDMs do not ascend to the top by being aloof. Many have sales or marketing backgrounds and appreciate the importance of a salesperson wanting to meet with key decision makers. Today’s organizations are flatter, making the HLDM more accessible. They will meet with you if you have something of value to discuss with them.Keep in mindThe first step in selling to the HLDM is to understand their personalities. They are more direct, so don’t take some of their behavior personally. They like to control meetings, processes, decisions, etc. Power is important to them. They take measured risks and make calculated decisions. They are visionaries who live their passion.Their successes are often tied to their ability to induce others to follow. Consequently, they are strong leaders. Time is one of their most important resources and they will measure your value by your sense of priority and efficiency.The things that irritate them most are excessive chit-chat, fire hose feature-benefit presentations, not understanding their business, canned presentations, and trying to close too early. They do not want to conduct business with salespeople who have “transaction” mentalities. They want to establish business partnerships with people who are more interested in making a difference than just making a deal.Speak on Their LevelRemember that HLDMs are not so much concerned with the best price or even the performance of your service or product. They are most concerned with how you and your company can help them reach their goals. They see past the transaction to the ultimate result. When you structure your presentation to a HLDM you want to make sure that you focus on THEIR goals. What’s in it for them? We can’t do this without fully understanding the needs of the HLDM. This requires some pre-approach. Try to find out as much about the HLDM as possible BEFORE you can for a meeting. What has been their biggest accomplishments at the company? What is their management style? What is their vision for the company’s future? Also plan to ask appropriate questions in the meeting with the HLDM. Build on the knowledge you gain in the preappraoch. HLDMs respect someone who has done their homework and who is passionate and inquisitive.Whether you are a small business owner/manager finding yourself in the selling role, or a professional salesperson making your living building relationships, effectively leveraging the HDLM can help you to achieve greater selling success. If you are interested in learning more about how improve your performance with HLDMs enroll in my Monday night Dale Carnegie Sales Class in Long Beach, CA.

Getting More Appointments

Lost Appointments = Lost Business

Earlier this year I found myself at the beach attempting to do a little body surfing. What did I find but an empty bottle (see photo) every 10 or twenty feet propped up in the sand. The string of empty plastic bottles seemed to go on forever.
As I closed in on the bottle I realized there was a message in the bottle with a cork at the top. The front of the bottle had a label with one word; “Lost.” I of course had to open the bottle and unroll the note. This is what it said:
“We are 48 survivors of Oceanic flight #815. We were about 1,000 miles off course when we went down. The black box and radio are useless. Help. Rescue us. Come fast as you can. Please we are “lost.” Look for us Wednesday, September 22 at 8pm.”
The only other thing on the note was a ghosted stamp of the logo for ABC.
Obviously this was a promotion for the TV show, “Lost.” I watched as person, after person picked up the bottles and discussed it with their beach-going friends. There is no doubt that ABC created some buzz over this little gimmick. While all this was happening, I also noticed several of those airplane banners advertising other TV shows to which no one paid any attention. I couldn’t help thinking about how memorable, simple and cost effectiveness this promo was when compared with traditional media like airplane banners, print, radio and TV.

Attracting AppointmentsLast week we talked about how to get more appointments. Imagine if we could apply this type of marketing to getting more appointments. We might be able to “attract” people to us rather than chase after them.
As I mentioned last week many people tell me “if I could only get in front of a prospect then I could sell them my services.” But in getting the customer’s attention and interest we run the risk of losing credibility and being perceived as a “salesperson.” There IS a way to use attraction-based marketing principals to secure more appointments “without” selling!
I will actually be talking more about this in my upcoming Tele-Clinic on Monday Learn how to use a simple yet powerful five step marketing approach to getting more appointments:

  1. Preparation
  2. Reconnaissance
  3. Contact
  4. Rejection
  5. Response

Simply click here and complete the brief registration form to take part in the Tele-Clinic.
Practical ApplicationThis might be great for a television show or a product in the mass market, but what about a B2B product or service such as what most of us are offering? How can we apply this strategy?
It’s quite simple. Here’s my action plan developing a marketing campaign that results in getting more appointments:

  1. Identify the smallest most influential market that you can possibly find – a powerful, yet reputable subgroup that will have interest in what you have to offer.
  2. Create a compelling message that clearly articulates the problem of challenge they are facing.
  3. Figure out a way to give them a small taste of the product. Do so in advance of everyone else.
  4. Empower the leaders of this group to make claims and statements to their community regarding the product that you have created.
  5. Build your marketing right into your product or service rather than tagging it on as an afterthought.
  6. Inject your own passion in what you do. Do it because you believe it. And if you don’t believe it, don’t do it!
  7. Do what you love. Love what you do. Let it show no matter what anyone thinks!

Audience for RansomHere’s another example of a campaign that uses these elements which we launched for our radio show last year:
The average life of a radio show is less than 15 months according to a 2001 Aribitron study. The Small Business Hour has beaten the odds, this year celebrating it’s 7 year anniversary on the CBS Network! I attribute this not so much to our super selling skills. Truthfully, my staff and I have spent little to no time selling sponsorships for our show. In fact, I can count the “sponsor presentations” on one hand.
How have we done it? By building a highly targeted audience of listeners and potential sponsors. These are organizations that find it difficult to get entrepreneurs and small business owners to really listen to what they have to say using traditional media. So we targeted banks, accountancies, credit card processors, Professional Employment Organizations and Internet hosting companies. Senior executives of these organizations get so many solicitations for sponsorships, they tend to ignore just about everything. While we’re always involved in viral and buzz marketing campaigns for our show, we wanted to find a way to break through their preoccupation.
How do you get the attention of the marketing manager of Bank of America or AOL? We came up with a rather “shocking” campaign that not only received a great deal of attention it demonstrated how we would get the results that sponsors are looking for. We purchased the cheapest portable CD player that we could find. They cost $7 each and came with headphones. We recorded a message to precede the samples of some of our very best shows with guests like Zig Ziglar, Jay Abraham and Seth Godin. We sent this to several hundred highly targeted prospects. We also created a web site that answered all of the sponsor’s potential questions about the show and helped them to see how the show would solve their most challenging problem, “increasing their small business marketshare.”
This type of compelling, rather controversial message was instantly embraced and we received several sponsorships without investing very much in dollars or time.
Monday Tele-ClinicAgain these are the principles that we will be discussing in our Tele-Clinic on October 18 at 1pm. In this Tele-clinic we will present non-selling principles, approaches and techniques that will get you more appointments with qualified prospects. We will cover:

  • How to establish the ground rules so it’s easier to ask for an appointment.
  • What information your prospect should have BEFORE you meet with them (or even talk with them).
  • How to reach the right person without a battle.
  • The things you should never ask a prospect when you get them on the telephone.
  • The things you must ask your prospect before you set up an appointment.
  • Why you should spend more time REJECTING prospects rather than trying to get them to accept you.
  • How to get a prospect to ask YOU for an appointment instead of you asking them.
  • Why you should give your prospect homework after you’ve set the appointment.
  • Several ways to pre-sell your services even before meeting for the appointment.
  • How to dramatically reduce appointment cancellations.

We are only able to accommodate a maximum of 20 participants for this Tele-Clinic, so sign-up today. Simply click here and complete the brief registration form to take part in the Tele-Clinic.

Forecasting Sales

Sales forecasting is the process of organizing and analyzing information in a way that makes it possible to estimate what your sales will be. This guide outlines some simple methods of forecasting sales using easy to find data. Books containing simple and sophisticated techniques of forecasting sales can be found in libraries and business oriented book stores

If you sell more than one type of product or service, prepare a separate sales forecast for each service or product group.There are many sources of information to assist with your sales forecast. Some key sources are:

  • Competitors
  • Neighboring Businesses
  • Trade suppliers
  • Downtown business associations
  • Trade associations
  • Trade publications
  • Trade directories

Sales Forecasting for a New BusinessThese steps for developing a sales forecast can be applied to most kinds of businesses: Step 1:
Develop a customer profile and determine the trends in your industry.Make some basic assumptions about the customers in your target market. Experienced business people will tell you that a good rule of thumb is that 20% of your customers account for 80% of your sales. If you can identify this 20% you can begin to develop a profile of your principal markets. Sample customer profiles:male, ages 20-34, professional, middle income, fitness conscious.
Young families, parents 25 to 39, middle income, home owners
Small to medium sized magazine and book publishers with sales from $500,000 to $2,000,000
Determine trends by talking to trade suppliers about what is selling well and what is not. Check out recent copies of your industry’s trade magazines. Search the Business Periodicals Index (found in larger libraries) for articles related to your type of business. Step 2:
Establish the approximate size and location of your planned trading area.Use available statistics to determine the general characteristics of this area.Use local sources to determine unique characteristics about your trading area.How far will your average customer travel to buy from your shop? Where do you intend to distribute or promote your product? This is your trading area. Estimating the number of individuals or households can be done with little difficulty using statistics census data. Statistics family expenditure survey can identify what the average household spends on goods and services. Information on planned construction is available from a variety of sources. Directories the Yellow Pages can help identify names of companies located in your trading area. Neighborhood business owners, the local Chamber of Commerce, the Government Agent and the community newspaper are some sources that can give you insight into unique characteristics of your area. Step 3:
List and profile competitors selling in your trading area.Get out on the street and study your competitors. Visit their stores or the locations where their product is offered. Analyze the location, customer volumes, traffic patterns, hours of operation, busy periods, prices, quality of their goods and services, product lines carried, promotional techniques, positioning, product catalogues and other handouts. If feasible, talk to customers and sales staff. Step 4:
Use your research to estimate your sales on a monthly basis for your first year.The basis for your sales forecast can be the average monthly sales of a similar-sized competitor’s operations who is operating in a similar market It is recommended that you make adjustments for this year’s predicted trend for the industry. Be sure to reduce your figures by a start-up year factor of about 50% a month for the start-up months.Consider how well your competition satisfies the needs of potential customers in your trading area. Determine how you fit in to this picture and what niche you plan to fill. Will you offer a better location, convenience, a better price, later hours, better quality, better service? Consider population and economic growth in your trading area.Using your research, make an educated guess at your market share. If possible, express this as the number of customers you can hope to attract. You may want to keep it conservative and reduce your figure by approximately 15%.Prepare sales estimates month by month. Be sure to assess how seasonal your business is and consider your start up months. Sales Forecasting for an Existing BusinessSales revenues from the same month in the previous year make a good base for predicting sales for that month in the succeeding year. For example, if the trend forecasters in the economy and the industry predict a general growth of 4% for the next year, it will be entirely acceptable for you to show each month’s projected sales at 4% higher than your actual sales the previous year.Credible forecasts can come from those who have the actual customer contact. Get the salespersons most closely associated with a particular product line, service, market or territory to give their best estimates. Experience has proven the grass roots forecasts can be surprisingly accurate. Sales Forecasting and the Business PlanSummarize the data after it has been reviewed and revised. The summary will form a part of your business plan. The sales forecast for the first year should be monthly, while the forecast for the next two years could be expressed as a quarterly figure. Get a second opinion. Have the forecast checked by someone else familiar with your line of business. Show them the factors you have considered and explain why you think the figures are realistic. Your skills at forecasting will improve with experience particularly if you treat it as a “live” forecast. Review your forecast monthly, insert your actuals, and revise the forecast if you see any significant discrepancy that cannot be explained in terms of a one-time only situation. In this manner, your forecasting technique will rapidly improve and your forecast will become increasingly accurate. In recessionary times such as these accurate forecasting is critical.

Evidence That Demands a Verdict

“That bloody glove doesn’t fit his hand!”

What two letters come to mind?
There are NO two letters that could come to mind other than, OJ.
Why?
Because if “it doesn’t fit, you must acquit.”
I’m not going to get into whether OJ was guilty or not, but you’ve got to admit more than ten years later, we still remember the evidence that his lawyers used to get him off.
If you ask me Johnny Cochran is the greatest salesperson in the world (No offense Og Mandino). He was able to craft a case, produce evidence and ultimately obtain a “Not Guilty” verdict for what was probably one of the guiltiest of men ever to stand trial for murder.
Against overwhelming odds, Cochran gave the jury a reason to buy. While I don’t exactly approve of his tactics or motive, not to mention his choice in clients, I think we can all learn from the power of evidence when properly used.Yet we still see outrageous claims in all kinds of marketing, advertising and selling messages today without any supporting evidence at all. In fact there are so many messages in our media with unsupported claims that customers and buyers are confused and numbed to their effect. In the past there were far fewer choices confronting buyers. In addition there was less information available and less media coverage. All this added up to greater power for the seller.
I remember when I was a kid in New Jersey. My Dad wanted to buy a Ford. He said, “Come on Mark we’re going to the Ford dealer so that we can get our new car.” There was only one Ford dealer in our area so there wasn’t much choice. On the other hand, last week a friend of mine also bought a Ford. He told me he did research on the Internet, visited three dealers and eventually bought the exact model he wanted with all the options he needed from an auto broker. All at a price that was cheaper than all three dealers.
Today the power is with the buyer. Greater availability to information and more competition have given an advantage to the buyer. That’s good for buyers but it makes it tough for marketers and sellers. For this reason marketers must be more strategic about gaining the customers favorable attention and filling their needs. Now I’m not talking about clever marketing gimmicks but I’m talking about truly understanding the buyer’s needs and motives and assembling the evidence that supports the fact that you are not just a possible choice but the ONLY choice. Yet this RARELY happens. Since everybody is saying the same thing, today most product or service choices seem to be identical.It’s hard for a customer to see how any product or service is any better or any different or any worse than any of the other competitors. Unable to determine this they do the most logical thing. They resort to selecting the product or service with the lowest price. I have done this myself.Not long ago we realized our fence needed replacement. Every time we would into the garden or out by the pool we had to look at the brown rust on the rails and the decrepit wood. We had to struggle with the rickety gates and the shrubs were beginning to pull the fence off its moorings. We needed to buy a new fence. My wife of course elected me for this task. But where should I start? Where else – the yellow pages.As I flipped through the pages I noticed that every ad was essentially the same – free in-home consultation, varying sizes and materials, talented experienced professionals, installation you can trust, licensed, bonded, best pricing, blah, blah, blah. Not ONE of these ads stood out or addressed my specific needs. So I started calling. I got only wrong numbers, disconnects and voice mail messages. I started receiving callbacks. Within a week I had three contractors come to my home and quote on my fence. I received quotes of $7500, $6750 and $4485. I could find no discernable differences between the se quotes. What’s more, when I asked the salespeople the differences I got only, we been around the longest, we do work for the stars, if you buy cheap -you get cheap, and other dribble. By the way not ONE of these “so-called” salespeople every asked me a question about my needs.Finally I called the lowest priced bid and began asking some questions of my own. I found out that I could upgrade the fence to have “pressure treated rails.” Which would reduce the risk of rusting. When I asked the salesperson what could be done to ensure that the fence would be solid and not torn from it’s moorings he recommended using two by fours rather than the standard two by threes. I also inquired about how to make sure the gates would wear out and he told me that he always used four hinges rather than two or three on gates this size. All this cost over $1000 more but it was well worth it for me. He won the bid despite his poor marketing, advertising and salesmanship.My point simply is that if any one of these contractors would have asked me some questions to determine my specific needs and presented evidence to support the fact that their fencing company was the only one to provide this unique array of benefits I would have bought REGARDLESS of the price.Are you finding out your customer’s needs, desires and motives? How are you presenting your case to the buyer? Are you giving your client’s and customers a big enough reason to buy? What are you doing to set yourself apart? What evidence can you use to make your product or service different that the competition?These are the questions that every marketer or seller must ask himself or herself today.You can bet OJ is glad that Johnny Cochran did.