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Improve Sales Forecasting Accuracy: Confirm the Customer’s Opinion During Opportunity Development

We have worked with over seventy individuals in a Sales Kickoff Workshop that took place in Australia and New Jersey. There were many bright stars within these groups, meaning the top 10 % that simply gets things done. But for as long as we have been doing this (over ten years), it never ceases to amaze me when sales people, some very experienced, do not clearly communicate with their prospect about what comes next in developing an opportunity.  These same salespeople will be asked to forecast the likelihood of success in converting this piece of business from an opportunity into revenue at some time in the next 3-12 months, yet many don’t know what is coming next.

The cult-like sales movie Glen Garry Glen Ross cites the acronym “ABC” when it comes to sales, or “Always be Closing”. Well, this tired old tactic simply won’t work in today’s buyer-driven world. Instead, we embrace a concept, and practice this with our customers, that includes a related approach to “ABC”, or Always Be Confirming. For those of you who do this every time, we offer a round of applause. For those who skip it, or only do this when it feels comfortable, read on.

At each step of the customized sales process that we build with our customers, there is an action that the seller must take to qualify that the person they met with sees value in the conversation they just conducted, and agrees to proceed to the next step. This can be a formal document, or a simple follow-up email to identify clear next steps. In either scenario, we are asking the customer (or prospect) if we have a mutually agreed upon understanding of where this opportunity may go, and how they will work together to get there. This includes a situation when the two parties do not agree, and decide to stop. In our program, a “no” is okay, especially when it comes sooner as opposed to later in opportunity development.

The one confirmation of progress that all sellers will document is when they win. This is validated with a signature, check, or purchase order. But what about the 4-5 steps that come before, especially when it comes time to commit serious resources to winning the business? This generally plays out in the form of a demo, presentation, proposal or reference account to validate your ability to perform. Are your sales people making certain that when they provide that information, they will get an answer? Or is it left in that limbo zone of getting back with you when they’ve made a final decision.

By proactively managing the sales process, you can organize how the opportunity develops, and let your customer/prospect know that you will be asking for confirmation at certain intervals to confirm progress. Without doing so, many sellers are flying blind and can’t tell how well they’re progressing until very late in the game, which makes for messy forecasting and poor execution. To avoid this, make sure your team is trained on opportunity development and knows how to track progress from the very beginning of the customer engagement.

 

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7 Common Sales Myths to Avoid

 

sales_mythHere’s a summary of common beliefs salespeople have that will do them more harm than good.

1. I need to educate my prospect; presentation skills are my most effective tool.  Premature presentations are the biggest challenge salespeople face today.  Let’s face it, no one ever lost a sale by listening too much.  When you’re educating, you’re talking.  When you’re talking it’s difficult to understand your prospect’s challenges and he will realize that and conclude that you bring little value to the relationship.  Your job is to qualify your prospect and investigative skills are your most effective tool.

2. Everyone needs what I sell; hearing “no” is a failure.  If you feel that “no” is a failure, you’ll resist it at all costs, creating a pressure filled atmosphere that will turn a skeptical prospect into a defensive prospect who’s main objective is to get rid of you.  If you believe that everybody needs what you sell, it’s difficult to be objective.  The buyer will conclude that your self-interest is greater than your desire to help.  A more productive belief is that not everyone is a prospect for what I sell and “no” is not a failure as long as I’ve qualified the opportunity adequately.

3. When the prospect says, “I need to think it over,” there’s still a chance.  Many “think it over’s” are just slow “no’s” with a free torture treatment. Prospects rarely say “no” to salespeople even when they have little or no intention to buy.  They believe that it is polite not to hurt the salesperson’s feelings or they want to avoid the pressure that they feel the salesperson will apply when rejected.  Sometimes prospects won’t say “no” simply so they can bring the salesperson back to pick their brains for more information.  Instead, you’ll be put in the chase mode, making a long sales cycle even longer.  You should be skeptical (not reassured) when your prospect tells you that he needs to “think it over.”

 4. My features and benefits differentiate me from my competitors; they give me an advantage.  Face it, most salespeople show up with the same tired old platitudes (‘we have the best quality in the industry, our service is outstanding and our prices are very competitive”).  It’s called “fluff.”  If you rely on features and benefits, you’re probably going to sound just like everybody else, and your prospect may conclude that what you sell is just a commodity.  When you’re perceived as a commodity, price becomes the most important buying criteria.  Bad news for you.

5. My job is to convince my prospect that he would benefit from purchasing from me; I need to be a good closer.  This is an antiquated belief and bound to lead to resistance. Following this belief will encourage you to put pressure on the prospect to buy.  People resist pressure in a relationship sale; it’s just human nature.   The prospect’s job to convince you that he has a problem, the budget and the decision-making ability to fix it and needs your help.  Try this attitude on your next sales interview and see how it will change your approach.

6. Financial considerations are the most important factor in determining who gets the business.  This belief puts the emphasis on price and that’s not what you want.  Price is very seldom the real issue in a complex sale. Conviction that you can help them solve their problem and get a return on their investment is the bottom line.  If you can help them increase their business or save them money, your price is relative to their gain.

7. If my prospects like me, they will buy from me.  Trust and rapport are important but the real issue is whether or not the prospect thinks you can solve their problem. If they do, you’re likely to get the business.

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How to Get Sales Operations Right in 2015

 

sales_opsIndustry experts are talking about Sales Operations. Kellogg’s School of Management Professor Emeritus, Andris A. Zoltners, says “sales operations or ‘sales ops’ has become widely accepted as essential for effective sales management.” Seattle-based agency Heinz Marketing says “Sales operations may very well be THE most important and unsung hero for sales teams.”

Why has sales ops become so critical in the eyes of so many?

Much of it lies in the growing importance of technology enablement. Sales teams today rely on many types of technology solutions to provide data analytics, mobile capabilities and lead management. Sales ops professionals are charged with spearheading and supporting these types of initiatives.

But that’s not where their responsibilities stop. They are still burdened with traditional operational tasks like reporting, contract support, and administrative functions. Their job description has become so varied that Zoltners astutely poses the question, “Can one person really handle all this?”

The obvious answer is no. So what to do? Sales ops managers must hire and develop a team of people with both varied and specialized skill sets. The jobs they do as well as their ultimate career paths will be fundamentally different. Managers should also look to outsourced resources to fill in missing competencies.

Ultimately, the key to keeping this diversely talented group in sync is leadership. Scott Shimamoto, Principals at ZS Associates, says, “The best sales ops teams have a clearly articulated mission statement.” Sales operations leaders must create a clear road map for success.

What should be included in that road map? For a great overview, we recommend Selling Power Magazine’s recent article, “Understanding the Role of Sales Operations“.

 

 

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Creating and Connecting the Dots with Brian Tracy

 

20141215_133131-1_resized_1On my way to have lunch with Brian Tracy, I took a moment to consider the conversation that would unfold. On one hand, I was about to sit down with one of the best known speaker-author-entrepreneurs in the world when it comes to optimizing human and organizational performance and results. On the other hand, it was also just a chance to sit down with a neighbor and friend whom I have known for over seven years.

Perspective

In the slim chance that you don’t know who Brian is, hit this link to learn more: http://www.briantracy.com/about. In short, Brian has worked in 80 countries and delivered his programs to over 5,000,000 million people in a 45 year career. He has authored 65 books that have been translated into many languages.

It was refreshing to hear Brian say that when it comes to sales, customer and buyer behavior is the same 80% of the time anywhere that he has worked or traveled. What is different, is the 20% of the equation that is attributed to cultural adaptation, languages and localization as buyers reflect the nuances of the areas in which they live.

Creating and Connecting the Dots

In our conversation, Brian referenced the speech that Steve Jobs delivered at the Stanford Commencement in 2005, saying that the key to success in business or in life is connecting the dots. The dots are the true opportunities that you pursue in your life, sometimes those that are off the beaten path of what “success” looks like. But before you connect the dots, you must be continually creating dots.

In that capacity, Brian is currently focused on a strategic planning program for organizations and individuals that he calls Idealization. This program takes into consideration all of the critical components that organizations and individuals must balance to account for family, careers, health and finances.

He is also working with business leaders throughout the world on Business Model Innovation, and has developed a nine-step process on how to stay ahead in business. The speed at which new technology is being introduced, coupled with the rapid globalization of commerce, both contribute to the demise of business models more quickly than ever before. To stay ahead, business leaders must innovate and Brian is addressing this need with his services.

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On the Road Again – Ringing in the New Year

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John is back in the new year with his first “On the Road Again” video of 2015. Here he is, literally on the road in his hometown of San Diego, CA, talking to us about what we have to look forward to in this month’s Flannery Sales Systems newsletter. Features include an interview with Brian Tracy, one of the world’s leading experts on personal and organizational performance and results, as well as an article on the growing importance of Sales Operations as sellers increase their reliance on technology to interact with today’s more sophisticated buyers.

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Wrapping Up 2014 and Looking Ahead to 2015 in Australia and Spain

 

John and team traveled to the snowy East Coast last week to lead a workshop in Ithaca, NY. In this video, John previews our upcoming newsletter featuring a video from Gerhard Gschwandtner, founder and publisher of Selling Power magazine and long-time FSS partner and colleague. Flannery Sales Systems will be heading to Australia in January (Sydney and Melbourne) and Spain (Barcelona) in February. If you’d like to join us for a session, or meet John for a coffee if your city is listed on our calendar, reach out to john@drive-revenue.com.

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Everyone Knows Features & Benefits Selling No Longer Works…But Why?

 

featuresIf you’ve been following our blog or have attended one of our sales workshops, no doubt you’ve heard us talk about how a Features & Benefits approach to selling is no longer viable in today’s complex, relationship-based world. But have we taken a step back to explain why?

If not, here are some of our top reasons:

  • Features and benefits are used prematurely to create interest, rather than properly qualifying the prospect.
  • Features and benefits are used to differentiate a product from its competition, but everybody’s benefits (and often the features) sound the same (“we can save you time and money, and we’ll stand behind the purchase 100%”). When competitors look the same, buying decisions are made on price.
  • Features and benefits engage the prospect intellectually, and most buying decisions are made emotionally.   Research shows that most people don’t remember the features or benefits after a week or so, and if they felt any enthusiasm at all, it too had disappeared after a week.
  • Features and benefits are the seller’s bag of tricks (“we’ve got this, we’ve got that”), and may not be relevant to the prospect’s buying reasons. People buy for their reasons, not yours.
  • Once you’ve “dumped” your features and benefits, the only thing left to do is close and handle objections and, all too often, discount your price. From there, it’s all pressure, and you can’t go back and qualify further.

So as 2014 comes to a close, remember to work with your sales reps to avoid the temptation to dive into product features & benefits too quickly. Much more important is their ability to establish trust, ask intelligent questions, and thoroughly qualify each opportunity.

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Why Sales Process?

 

Watch Gerhard Gschwandtner, founder and publisher of Selling Power magazine and long-time partner and colleague of Flannery Sales Systems, discuss the importance of having a sales process to achieving company goals.

 

 

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Flannery Sales Systems in Richmond and Monticello, Virginia

Flannery Sales Systems recently traveled to Richmond, Virginia. In this video, John discusses what you have to look forward to in our upcoming blog posts and newsletter, including guest posts from sales leaders like Brian Dietmeyer and a straightforward look at how FSS can help you sell more.

 

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How I Help You Sell More

driveRevenueCycleIt would be great if I could sell to you. But I imagine that you will only buy from me if I can help you to sell more.

In order to do that, there are a few things I need to figure out before you’re ready to buy from me.

1. Who do you sell your stuff to? By this I mean what type of company.

2. What job titles do they usually have in the types of companies they work in?

3. What challenges do those customers have when they don’t have the things that your stuff helps them to do?

4. If nothing changes regarding the challenges that those customers face, what is the financial impact?

5. Do those prospects know enough or care enough about those challenges to make a change?

If they do, proceed to #6. If they don’t, you may need to tell them a story about someone who you worked with that didn’t realize the challenges they faced and how your stuff helped to fix it. See if they care. If they do, proceed to #6. If they don’t, move them into your call back file for later and move on to the next prospect.

6. Once those challenges are shared, and there is a reasonable amount of impetus to make a change, describe how your stuff can help them to address and fix the challenges.

See if you can help the customer to quantify the value that they could recognize with an improvement. If you can you have a qualified opportunity. If not, you may have to tell another story about how you helped someone to address the challenges and what the value was for them. If they agree, you may proceed. If not, put them in the same call back sequence as #5.

That’s it – six things I need to understand before I can effectively sell to you. And, guess what, they’re the same six things you need to understand before you can effectively sell to your prospects and customers.

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