Posts Tagged Sales Performance Improvement
Questioning Your Sales Training Investment?
Posted by Rick Pranitis in SALES BEST PRACTICES on June 16, 2014
Does this sound like a familiar conversation within your organization? “We don’t spend money on outside sales training because it never seems to do much good. In the past we’ve had training companies come in and work with our team but as soon as they leave it seems like our people are just back to doing what they were doing before. Training is just a waste of our time and money.”
Many company leaders have the above attitude because their experience has been that the training they paid good money for didn’t change their sales team’s behavior—at least not for long.
After having that experience a couple of times it would seem rational to eliminate the outside training expense because obviously training companies can’t make the fundamental changes to people that they claim they can.
The company leader assumes that the root of the issue lies with the training company and its inability to have a long term impact on the sales force.
But is that really the problem?
Certainly the issue could in fact lie with the company that provided the training. But are a number of possible reasons apart from the company hired to perform the training for sales training failure–from treating sales training as an event instead of an ongoing behavior change process, to salespeople who view attending sales training sessions as torture, to the company’s failure to provide follow-up coaching for the sales team. All of these are real issues that can negate any potential success you might experience from your investment in sales training.
There is another factor that is often the real cause for the failure of the training—intentional or unintentional sabotage by the sales team management.
Are your sales managers trying to take the edge off their charges having to go to training by reassuring them, “yes, you have to go to the training, but don’t worry; just go and when you get back, sell the way you’ve always sold?”
Maybe they don’t believe in the training and are intentionally training their team members in different processes and tactics?
Possibly some sales managers don’t want to invest the time and energy in learning new strategies and tactics themselves and consequently don’t care whether their folks adopt the training.
If you fail to get full buy-in from your sales management team to the specific training you are presenting, you will not have comprehensive and universal implementation of the training.
Your front-line sales managers who work with their team members have more influence on how your salespeople sell than anyone else—more than senior executives, more than middle sales management, more than the training department, more than HR, more than the expensive sales trainers you hire.
If they don’t believe, the salespeople won’t believe.
If they don’t reinforce the messages, the strategies, and the tactics, those occasional training sessions will be nothing more than expensive exercises in futility.
How do you get all of your sales managers on the same page?
Before you ever put a salesperson in a training workshop or seminar, each and every manager must have gone through the management version of the training. Each manager must understand what the company’s comprehensive, unified sales process is and how the particular training that is scheduled fits in the big picture; what short and long-term results are to be expected; what their job is in reinforcing and coaching the training; and what criteria will be used to determine the success or failure of the training.
Most of all, each manager must believe in the process and strategy. .
Whether the training is presented by an in-house trainer or by a professional trainer brought in from outside, each segment of training should consist of a management segment designed to gain manager buy-in and to give them the tools and knowledge they will need to coach sellers once they are back at the office and a segment for salespeople that is attended by their managers.
And although the initial cost of training in terms of both time and money will increase, the long-term result will be reduced waste of training dollars and increased sales. That wished for unified sales process will begin to become a reality because the biggest determent to success has been turned into the biggest promoter of success.
Is the Paredo Principle Outdated in Sales Operations?
Posted by Rick Pranitis in SALES BEST PRACTICES on May 21, 2014
Sales operations leaders are generally in agreement they can reduce the amount of time sales people spend on non-core-selling activities by eliminating, expediting or automating certain activities. But how do you decide which problems to tackle first? Sales operations leaders often reference the 80/20 rule when prioritizing efficiency improvement efforts.
The 80/20 rule, also known as the Pareto principle, is a common rule of thumb in business and states that 80 percent of the effects come from 20 percent of the cause. For example: Eighty percent of our profits come from 20 percent of our customers, or 20 percent of sales reps produce 80 percent of sales revenue. The implication for sales operations is that efforts should focus on identifying and eliminating the 20 percent of activities that are causing 80 percent of wasted time for sales reps.
Research done over the last decade suggests we should take a step beyond 80/20 and apply the 4/50 rule, which states only 4 percent of the business issues cause more than 50 percent of delays, defects, waste, rework and cost. In the case of sales effectiveness, we can dramatically reduce wasted sales time, effort and energy if we can identify and eliminate the 4 percent of activities that consume 50 percent of sales reps’ non-core selling time.
Rather than starting with wall-to-wall, floor-to-ceiling designs and complex, expensive rollout plans, we can achieve results faster, demonstrate success, drive adoption and make course corrections rapidly at lower cost using the 4/50 rule. This offers an incremental, measurable and manageable approach to improvement projects, which we refer to as small, manageable chunks (SMACs).
Here are a few key principles of the 4/50 rule, also called the “crawl-walk-run” approach:
- Aim for 50 percent reduction in delay, defects or deviation within six months
- Use small focused teams to quickly solve mission- and profit-critical problems
- Use just-in-time training to achieve organizational learning
- Celebrate each successful milestone
- Accelerate broad adoption by demonstrating success with a small group
The last point may appear counterintuitive but has solid grounding in research on group dynamics, which suggests that when 5 percent of a target population adopts a new technique or practice, the change has begun. To the extent sales people experience a successful improvement project, they will continue practicing the technique. Once adoption reaches 20 percent, the change is unstoppable.
Sales Situations When You Should Slow Down
Posted by Rick Pranitis in SALES BEST PRACTICES on May 2, 2014
Many sales people are notorious for speaking too quickly and this habit can cost them money in lost sales. Here are 15 critical times sales people should slow down:
1. When opening a telephone call with a new prospect. Most people are not fully engaged when they initially answer a call. The majority or still focused on the task they were working on when the call came through so slow down until you have their full attention.
2. When speaking to someone who is calling from their cell phone. Most cell phone connections are not as clear as a landline so it is important to slow down your conversation to ensure that the other person hears everything.
3. Immediately before you ask for the sale. Many people are nervous asking for the sale. To relieve the stress associated with this, try slowing down and taking a deep breath before asking your prospect for their agreement or commitment.
4. When you begin your sales presentation. Too many sales people race through their sales presentations often due to nervousness. When you slow down before a presentation it gives you the opportunity to collect your thoughts and to think about the key points you need and want to make.
5. Before you respond to a question. Instead of blurting out a quick answer, take a few moments and carefully think about your response. This will help you build credibility and gain your prospect’s respect (providing of course that your answer is appropriate).
6. Before sending an email. One of the biggest time wasters is sending an email and forgetting the attachment. Do yourself a favor and slow down before you press ‘send’. Use this time to make sure your attachment is included and that your email is properly written and free of mistakes, spelling errors (including your prospect’s name!) and grammatical errors.
7. When introducing yourself. Do people ever ask you to repeat your name when you introduce yourself for the first time? If so, you are probably speaking too quickly. Slow down when you state your name so people can hear and understand it the first time.
8. Before you respond to an objection. Avoid the impulse to react quickly to an objection. Objections are not necessarily negative and slowing down before you respond can help you position your solution more effectively.
9. When you notice that you’re speaking too quickly. I often catch myself talking too fast, especially on the telephone and during presentations so I constantly remind myself to slow down.
10. If you feel your emotions getting the better of you. Sometimes people will say something that triggers an emotional response. Slow down before you say anything and prevent your emotions from affecting what you say.
11. When you don’t understand the other person’s perspective. When a prospect or customer references something and you are unclear what they mean, slow down for a moment before forging ahead with the conversation. Ask them what they mean by saying, “Can you clarify that for me?” or “What do you mean?”
12. When writing a sensitive email. If you need to write a sensitive email slow down and carefully choose your words so your message is not misinterpreted. However, I highly suggest that instead of sending an email in these situations, that you pick up the telephone and speak directly to the other person.
13. Before returning a call from a customer or prospect. Make sure that you have all the information necessary for the call before you dial. This includes a list of questions you need to ask if it is a prospect calling about a particular product or service. A few minutes of preparation can make a big difference in your results.
14. When you’re rushed. I realize that this sounds contradictory but here’s the rationale. When you are feeling rushed, you are more apt to make a mistake. So, in these situations, make a concerted effort to slow down, check your work and prevent a mistake from occurring.
15. When you don’t know the answer to a question. Many sales people feel obligated to respond to questions even when they don’t know the answer. Instead of falling prey to this fatal mistake slow down and tell your prospect that you don’t have an answer and that you will get it for them.
Speed isn’t everything especially in sales. You can stand out from many of your competitors by slowing down at opportune times. Great sales people know that slowing down at the right time can improve their sales results. Determine which of the suggestions in this article most apply to you and begin integrating them into your sales approach.
Are Your Sales Suffering Because You’ve Picked The Worst Times To Contact Prospects?
Posted by Rick Pranitis in SALES BEST PRACTICES on April 16, 2014
In the digital age, more and more communication takes place via email and text messaging, but a person-to-person conversation is still the most engaging way to contact a prospect and convert him into a customer. If your sales are down, perhaps you should reconsider your timing and preparation for making contacts.
Why Cold Calling Still Works
Cold calling, contacting someone you don’t already to know, is one of the most effective ways to make a business connection because it’s so direct and personal. Note, however, that once the conversation begins, you only have about 20 seconds to launch a great first impression.
Your prospect’s reaction is decided in moments and you’ll likely be able to gauge by the end of the call whether the prospect is warm or cold. On the other hand, a marketing email or campaign piece, though effective and compellingly well-written, is less personal and once mailed, is beyond your control; it may not even be opened and read for days (or never), and even if opened, you may not get a response.
Cold Call Timing
Research has shown that the best time to contact a prospect is between 8:00 and 9:00 a.m. and between 4:00 and 5:00 p.m. Calling at these times catches the prospect first thing in the morning when his mind is fresh and he has not yet become too involved in the workday. Likewise, at the end of the day, he is winding down and preparing to relax and therefore may be more receptive to a call that could help him with tomorrow’s work.
The worst time to call a prospect is between 1:00 and 2:00 p.m. when he is returning from lunch and energy is at its lowest point of the day. The best weekday to call is Thursday, followed by Tuesday then Wednesday. On Thursday, the week is nearly over and minds are beginning to focus on the weekend. Fridays and Mondays are the worst days to contact prospects as these are the least productive days of the work week.
Peak Interest Timing
Additionally, Stride’s analysis of response metrics has revealed another optimum time for contacting prospects. Stride had a set time in the a.m. for contacting prospects after collecting their opt-in responses to their email drip but discovered the open rate for these email contacts was very low. Changing the strategy to contacting prospects within 30 minutes of receiving their opt-in address dramatically increased open rates.
Calling prospects within half an hour of demonstrated interest in your business is the optimum time for you to close sales. While interest is fresh in their minds, they are much more likely to be open to engagement, as opposed to say calling the next day, when they have already forgotten what you’ve spoken about.
Achieving Positive Results
According to research done by Forbes, businesses lose 46 hours and 53 minutes before they pick up the phone and call a lead and only make 1.3 call attempts before abandoning the lead and moving on to the next. These are warm opportunities lost from prospects who have already shown interest.
Rather than engage the lead while interest is high, businesses allow the lead to languish and then don’t do enough to follow through and establish contact. Following up within 30 minutes, as Stride discovered, may be seen as positive and responsive by the prospect and direct the path toward closing a sale.
To increase your conversion rates, take steps to improve the quality and effectiveness of your sales calls and make them during the optimum contact hours. Research your prospect in advance and find out as much as you can about his organization and needs.
Get a working understanding of the industry and determine specific and viable solutions you can offer to resolve actual challenges. Your prospect may appreciate your knowledge and be more receptive to an approach tailored to real needs than a canned, generic sales pitch.
Speak naturally and never read from a script; it always sounds practiced and insincere. Once you’ve engaged your prospect in conversation, take good notes and review them immediately afterward to ensure you capture the pertinent issues while the conversation is still fresh in your mind. Pay attention to your prospect’s responses and listen more than talk. When you follow up, you will have your notes to remind you of what you discussed.
Success Metrics
To measure your success rate, track all metrics on your sales calls, including the number of calls you make, the time of day and day of the week you called, whether you actually spoke with the prospect or left a message, the length of your conversation, level of engagement and number of sales closed. Analyze your results over time and look for correlations between metrics. This will give you valuable information for adjusting your timing and increasing your conversion rates.
Reconsidering the times you make your sales calls and really knowing and understanding your client’s industry and needs can contribute to helping you close more sales. It’s all a matter of research and timing.
This article was originally posted to the PointClear Blog by Mike Kamo on April 10, 2014.
Is your Sales Process Fresh?
Posted by Rick Pranitis in SALES BEST PRACTICES on March 12, 2014
One of the most devastating conditions to a seasoned veteran sales person is the onset of complacency. This can occur anytime is a sales person’s career. But usually it follows a period of repeated success or recognition of achievement. It’s easy to fall victim, and easier to not recognize it’s happened. The best way to avoid such a situation having an impact on continued success is to be constantly looking for means of improvement. The best place to start is a regular review of your sales process.
As a professional sales person, you know the value of having a sales process or strategy which must be followed to be successful. In developing an effective strategy, it’s often helpful to look at the progression of the sales process as relates to your particular business or service. By reviewing the specific aspects of each step in the process, you can determine an effective method to apply. When you break the sales process down into specific steps, you can often improve your sales results by focusing on areas where you feel you may be weak.
Prospecting – The first part of the sales process is looking for promising leads which can bring you a sale. This can include cold calling and leads generated by referrals. Prospecting is not limited to the phone. This can be done via email or in person.
Appointment Setting – Once you have made the initial contact with the prospective client the next part of the sales process is to set an appointment with the client. It is always preferable to have an in-person appointment. If this is not possible, a phone appointment is acceptable, but you should try to turn it into a face-to-face meeting with the potential client.
Qualifying – The goal of qualifying the prospective client during the sales process is to make sure the client has a need for your product or service, is interested in buying your product or service, and, most importantly is in a position to buy. Part of the qualifying process is to make sure you are talking to the person who can actually make the decision to purchase your product or service.
Presenting – The presentation is undoubtedly the most important part of the sales process. It’s important you be prepared. This includes knowing your product and service inside and out. It also includes knowing the needs of the customer inside and out. You need to make sure your presentation is professional, interesting and relevant to the needs of the prospective client. Try to make your presentation interactive and fun. Make use of different media to keep it interesting. Don’t read your information, but have it memorized and present in a natural manner. Handouts should be relevant, fresh and simple.
Answering Questions and Resolving Concerns – As perfect as your presentation may be, the client is bound to have some questions. This may be one of the more difficult parts of the sales process. Many sales are lost when a sales person is not able to satisfactorily answer objections posed by the prospective client. If you’re not prepared, you may very likely not get the sale. If you are prepared, it makes your product or service look good, it makes your company look good, and it makes you look professional.
Closing – In this part of the sales process, you have completed your presentation and answered all questions and concerns. Now you ask for the sale. Many sales people skip this part of the sales process thinking that the presentation is the same as asking. You must directly ask the client to buy your product or service. You don’t go through the whole process and expect the client to stand up and yell “I’ll take it!” You need offer them the opportunity to buy.
Referrals – After the success of the sale, you feel good and, very often, the customer feels good too. This is the perfect time to ask for referrals. The client may know of other companies or individuals who would be interested in your product or service. Once you have the referrals, the sales process starts again with a new client.
It is important to have a sales process to follow. The sales process will help you to stay on track, keep focused and will allow you to break down each step you take that leads to the sale. Breaking the process down will allow you to make changes and adjustments in any of the stages where you might be able to improve. Reviewing your process and making necessary adjustments regularly will help you to avoid complacency in your activities and keep you on the path to continued success.
Ten (too often ignored) Rules for Conference Calls
Posted by Rick Pranitis in GENERAL DISCUSSION on February 18, 2014
We waste so much time in meetings and conference calls, some of which are unnecessary and others that take way too long. We all know this. And yet how often do we leave a conference call or a meeting asking ourselves: “was all that really necessary?” If we just follow these simple rules when considering a meeting or a call imagine how much more productive our time could be.
Make sure you really need it in the first place. If this is really just an update, perhaps a memo would be better to save everyone the time.
On the other hand, be proactive about using a quick meeting or conference call to focus on and resolve/decide on an issue or question that otherwise would become the longest email string in the world that never really reaches consensus or action (you know exactly what I’m talking about).
Make sure everyone is required. Every attendee should be an active participant. Anybody who is just “listening in” should save themselves the time and read the memo/recap afterward. If you are playing Candy Crush while “attending” your next conference call, this probably means you.
Set up a dial-in line vs. “conferencing people in” across multiple phone numbers. Make it really easy for everyone required to join in independently of one another.
If you are the leader or moderator, join the call five minutes early. If another participant is late, that’s bad enough, but having everyone sit around waiting for the leader is far worse and a huge waste of everyone’s time.
Distribute an agenda in advance. You’re doing this for live, in-person meetings right? They’re just as important for phone-based meetings to keep them disciplined, focused and efficient.
If you’re a required participant (which means you’ll be participating) don’t multi-task. Focus with everyone else on the topic/question/decision at hand so it can get done as quickly as possible.
If you are the leader or moderator, actively manage the focus and length of the call. If you scheduled 30 minutes, ensure you can get your business done in that time or less. Also police the discussion so that you stay focused on what’s important for that call only (i.e. on the agenda).
End the call as soon as you’ve completed the agenda or made your decision. Don’t allow the “hey, one more thing since we’re all on here…” It’s not likely that everyone on the call needs to be around for that.
Think long and hard about whether a “recurring” conference call on everyone’s calendar is truly necessary either 1) at all, and 2) that often. Could one of you taking that time to write up a summary/recap memo get the same information disseminated and save others the time? Could you make the call far shorter by focusing that together time on decision-making or problem-solving, and preserving the status updates for the memo? Would you be bold enough to cancel a recurring meeting if there were no decisions to be made, only status updates?
A Sales Checklist for Improved Outcomes
Posted by Rick Pranitis in SALES BEST PRACTICES on December 23, 2013
Need proof of the value of a checklist? In a study funded by the World Health Organization, eight hospitals deployed a simple 19-point checklist to help doctors and nurses avoid errors. The list focused on basic safety measures, such as requiring that all members of the surgical team introduce themselves, counting instruments and sponges used during surgery to verify that none were left inside a patient, and ensuring that patients receive antibiotics to prevent infection.
The checklist was credited with a forty percent reduction in deaths and serious complications from surgery, and the study authors concluded that if all hospitals used the checklist, they could save tens of thousands of lives and $20 billion in medical costs each year.
Many studies have been performed and much has been written at length about the value of aligning the sales process with the customer buying process. A typical sales process includes a series of stages through which B2B buyers pass before making a complex purchase and correlates to the actions a seller takes (e.g. analyze needs, qualify, identify solution, propose solution) to manage opportunities through the pipeline.
But that’s not nearly enough. A best practice sales process goes beyond the high-level stages and includes knowledge inflection points and observable outcomes associated with each stage. An observable outcome, similar to a checklist item, is a measurable, verifiable and specific response from – or an action taken by – the buyer. Here are a few examples:
- Did the buyer verify that there is budget available?
- Has the buyer provided access to all decision makers?
- Has the buyer provided decision criteria?
- Did the buyer schedule a follow up meeting for a demonstration?
- Has the buyer provided resources to assist with a detailed design?
You might think that following a sales process, complete with observable outcomes, would be an ingrained habit by now, especially for senior-level sales reps. But with complex selling situations and the pressure on reps to demonstrate results, it’s all too easy to skip critical steps. Sales operations should evaluate sales process stages and observable outcomes every six to 12 months, and then consult with sales leaders to build or update these outcomes as sales process stage progression criteria within the sales automation tool. The need for precision, consistency and repeatability isn’t limited to doctors and surgeons. Best-in-class sales organizations apply discipline and rigor to each sales stage, carefully crafting observable outcomes to avoid critical errors, wasted time and misdirected company resources.
We’re on the cusp of a new year. Now is a perfect time for evaluation of your sales process and implementation of the steps necessary to assure continued improvement and success in our business.
Quantifying your value proposition
Posted by Rick Pranitis in SALES BEST PRACTICES on November 12, 2013
Quantifying your value proposition requires creating and communicating a clear, compelling picture of how your solution will drive your customer’s business results – allowing sales reps to make their business case. It requires translating the benefits of your solution into high impact, measurable outcomes that matter to the customer. When done effectively, it enables you to maximize the competitive advantages that differentiate you from your competitors.
Quantifying a value proposition involves three steps:
– First, list the business outcomes your solution impacts (e.g., improvement in the percentage of just-in-time deliveries).
– Second, select a customer metric that will demonstrate the impact of the business outcome (e.g., reduction in inventory x annual inventory carrying costs = value of just-in-time deliveries).
– Third, determine the most compelling anchor which will bring the metric to life (e.g., compare the outcome of your solution against the status quo or compare it against your estimate of the competitor’s solution or against other companies in the customer’s market space).
What are some best practices for quantifying value? Having a simple and straightforward planning process for the quantifying value is one piece of the puzzle. As is often the case; however, the real difficulty and creativity lie in the execution. Hence it is useful to explore four best practices for quantifying and selling value.
1. Sell the Concept First. Top performers do a superior job quantifying their value proposition but they don’t just “sell by the numbers.” Even a great set of numbers will fall on deaf ears if you have not established a foundation-level of understanding of your solution and a high level of trust. What’s the worst possibility? The quantitative analysis is viewed as a selling ploy and therefore discounted accordingly.
2. Remember the Ripple Effect. Often in addition to the primary impact of your solution, there are, as well, secondary and tertiary positive outcomes. The other benefits might occur in another division, in a different time frame or for an alternative set of players inside the organization. Make sure you have uncovered and demonstrated the payoffs of the Ripple Effect.
3. Translate Soft Differentiators. If your only major competitive advantage is price, the challenge of quantifying your value proposition is simple and straightforward. On the other hand, if you have other competitive advantages – such as integrity, superior integration, and creativity – the challenge exists to translate those soft differentiators. It is easy to quantify that part of your value proposition that is easily measurable, like price. However it is equally important, although much harder, to generate quantifiable proxies for soft differentiators.
Soft differentiators tend to fall into two categories: Value Adds and Strategic Opportunities. Value Adds focus on improvements to the quality of the business operations. Examples of intangible benefits include:
– Providing better information and/or more timely information
– Improving customer good will
– Improving service image
– Identifying problems on a timelier basis
Strategic Opportunities are those intangible benefits that help the customer expand its business. They might include:
– Protecting a company’s competitive position
– Increasing market share
– Venturing into new markets
4. Tell the Integration Story. Many companies have created integrated solutions. However, they continue to sell the individual pieces – hence there is a huge opportunity for differentiation for those that get it right. One solution: help the customer connect the dots and understand the power of an integrated solution by displaying a unique set of numbers that tell the story.
Effective Sales Coaching – It’s All About Timing
Posted by Rick Pranitis in SALES LEADERSHIP on October 18, 2013
The fundamental mistake which sales managers make, which is perhaps the worst culprit in terms of de-motivating a sales force, is managing only results instead of the behaviors and activities that lead to the results.
It came be seen as entirely rational for sales managers to focus on results because that’s how we are measured and, of course, compensated. Unfortunately, it’s not very effective at motivating salespeople.
Here’s why…
A sales “result” is what comes about as a consequence of the sales process or processes preceding. Sales managers who manage by results, by which I mean a sales manager who waits until a poor result is produced and then confronts the salesperson about the poor production, is like a “Monday morning quarterback.” They are criticizing what happened after it happened, and much too late to do any good.
To be an effective sales manager you must focus on the input side of the production equation, the sales behaviors and activities that contribute to the sales results.
Many sales managers haven’t clearly defined the behaviors and activities sales representatives need to be successful. Here’s a test for you. Suppose you were to email five of your salespeople and ask them to each reply to the following question: “Please describe to me the specific behaviors and activities you need to perform to achieve the sales results our company expects.”
How many different answers would you receive? If you’re like the managers who have actually tried this test, chances are quite a few. In too many sales organizations, there is a lack of clarity about and understanding of the behaviors needed for success. Your salespeople, then, are selling on instinct.
Now imagine you’re a salesperson. You’ve just had a bad month. Your boss confronts you about that bad month, but he or she doesn’t have a clue what caused the bad month. The manager just pushes the button that sales managers always push when they don’t know what caused poor production-: “You’re not making enough sales calls. Increase your activity level and you’ll sell more.”
If you were a salesperson, how would that make you feel? I suspect you’d probably be demoralized. You feel like you worked hard, and don’t really know what to do differently. You would appreciate a more constructive coaching discussion, but you’re not getting it. Your boss just tells you, “get out there and sell more.”
To be a great sales coach you need to define the behaviors and activities your sales force needs to know and do to achieve maximum sales success. Put those in a document titled “Standards for Excellence.” And communicate them clearly and repeatedly to your sales team. Have your salespeople practice new skills and approaches while you observe so you can give them specific tips. Give them the opportunity to ask questions and get feedback early in the sales cycles.
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This article was originally posted to the TopLine Leadership Blog by Kevin Davis on November 20, 2012
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Payoffs to Asking Questions in Sales Calls
Posted by Rick Pranitis in SALES BEST PRACTICES on October 1, 2013
If salespeople are going to bring value, new ideas, and insight to customers, they must understand the business issues and the challenges their customers face. Questions are a primary consultative tool for getting that done.
Bringing value can be achieved just as well by the thoughtful question as by fact telling. For example, if the customer seems to be thinking about a business strategy that involve risks, asking questions about how they plan to manage the risks shows you understand their situation and enables you to offer a thoughtful solution later in the discussion. Here are five specific payoffs for getting good at asking questions:
1. Asking questions leads to more memorable interactions. Well-planned questions go a long way in establishing your credibility particularly when they are framed around issues and challenges important to the customer.
2. Second, they help salespeople avoid the temptation to jump into the conversation too soon. A common scenario is for the salesperson to start the conversation by asking some thoughtful questions … the customer says something about an issue or concern … and then the salesperson immediately jumps in to provide information related to the answer. Equally often that is a trap since the definition of the problem is incomplete and/or all the issues are yet to be surfaced.
3. Alternatively, asking follow-up questions is an effective way to better understand the scope of the problem as the customer sees it and to explore what the possible strategic, operational, and financial ripple effects might be. Follow-up questions help a salespeople drill down to gain a better understanding of the problems facing the customer, as well as, helping the customer discover new insights about the nature and extent of the problem. It also means that salespeople avoid the temptation of talking about their products too early in the call.
4. Next, questions can be used to assess the potential value of a solution. Questions are not only valuable for exploring the scope of the problem; they are also useful for assessing the potential value of a solution.
By asking questions you can obtain insight about the customer’s view of how the overall situation would be better off if the problem is resolved and the possible downsides of maintaining the status quo. This approach to questioning also provides an opportunity to add a benefit that the customer may not have envisioned as an achievable outcome.
5. Finally, consider using questions for shaping the customer’s point of view. Shaping helps customers redefine a problem in a way that brings value to them and creates a better fit with your capabilities. It is important to emphasize that this use of questions is only legitimate when shaping brings new useful insight to the customer. Trying to persuade the customer to a point of view that is not in their self-interest must be avoided at all cost.
There are two major times in the sales cycle where shaping comes into play. The first time is in the early part of the sales process when the customer is defining their needs.
The second time is when the customer is defining the decision criteria they will use to decide between competitors. Helping customers think differently about the criteria and your capabilities to meet them can be helpful to them and can help position you as the best qualified candidate to deliver the solution.
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This article was originally posted to the Sales Training Connection by Janet Spirer on September 27, 2013.
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