Monday, July 18, 2011

Are You Prepared to Undo Doubt?

Question: Lately, new potential customers have requested references from me early in the sales process. When and how is the best way to approach this?

It’s important to understand why your customers are asking for references. Simply providing references may or may not address the issue. Additionally, if receiving this request is out of the norm for you, you may want to examine any changes you have made to your sales interactions. In other words, are you doing something to cause concern or prompt the request?

Generally, when a customer asks for references, there is uncertainty or doubt about what you or your company can do for them. Do they doubt that you can do what you say? Or do they want reassurance that you will service what you are providing? Anytime you experience doubt in a sales situation, you need to prove that there is no reason to be concerned. Before you do, make sure that you understand what the true concern is. You may simply ask your potential client, “What do you expect to learn from the references that I provide?” How they answer may reveal a concern that you can answer on the spot, and may give you an opportunity to resell your product.

Your proof sources should be someone other than yourself. Think through all of the possible situations where you may experience doubt on sales calls, and collect proof sources to handle these. Make sure you carry your proof sources with you on all of your calls so you can eliminate concern as they occur.

Here are some examples:


No matter how prepared you are for the skepticism and doubt that you will encounter, some customers will still need references. Here are guidelines for utilizing them:

Be Respectful of Your Reference Sources - It’s perfectly acceptable to share an established reference list with serious potential customers. However, be careful not exhaust your current references by responding to every request with a complete list of phone numbers and contact names. Give potential customers a list of current successes and a list of client companies. Explain that once you get closer to an agreement, you will supply phone numbers and contact names. Don’t be afraid to tell them that you respect your references and don’t want to overwhelm them.

Call Your References – If you are placing names on a reference list, make sure you call each and ask their permission to do so. When a potential customer asks for references, determine who would be the best resource for the concern that the customer has. Try to give no more than two or three names and phone numbers at a time. Then, make contact with the reference to let them know that they will be called. Briefly review the purpose of the call and what you would like them to stress. And, be sure to thank your references! A handwritten thank you note is a nice touch.

Ask for Written Testimonials – It will be important for some potential customers to make direct contact with your reference sources. However, most will be satisfied with written testimonial letters. There are several advantages. First, written testimonials eliminate the amount of calls that your references are exposed to. Secondly, using written testimonials will enable you to control the quality and content. Collect written testimonials whenever a customer raves about you! You may simply say something like, “Thank you so much. Would you mind if I shared your experience with our company with others whom are considering using our services?” Then, offer to draft a letter recapping what the customer stated and send it to them for approval.

Tuesday, July 5, 2011

Define it or Deny It – What’s the Problem With the Word “Sales”?

How you feel about the word “sales” largely depends on the culture of your organization. Companies that are driven by sales vision and leadership tend to embrace and reward the sales role. More operational focused companies, or those that don’t traditionally see themselves as sales focused, do not embrace the semantics as well.

Many recent LinkedIn discussions have focused on the word “sales”. “Does the word “sales” have negative connotations?” “Should you call yourself something other than “sales”? “What is the difference between “sales” and “business development?”

While working with a client to define sales and service outcomes, one of the project team members said, “This is exactly what we need. One thing though, let’s not call this sales. Let’s think of a different title, one that is not so intimidating.” We had agreed to the expected outcomes of the program, which was for representatives to recognize customer needs and position solutions to help them reach their personal and business financial goals. Sounds like sales to me!

Titles are not that significant. What really matters is that you define what “sales” means to your organization and to your customers. My advice to the client was simple – “Call it what it is. Don’t deny it – define it!”

As the sales profession has evolved, so have the methods, beliefs and descriptions thereof. We define the primary approaches to sales and service as transactional, emotional and consultative. Most sales-oriented companies have embraced some form of consultative selling. With that said – that does not guarantee that everyone in the organization understands what that means to the company or what it means to customers, or that they are skilled in related competencies. Communicating your company beliefs and expectations regarding sales and customer service is critical. If your people are uneasy about the word “sales”, consider clarification such as:
  • You are not going to “convince” anyone to buy anything if they do not have a need or want, realized or not.
  • Great service is foundational to customer relationships and is foundational to the sales process, but it is not selling. Just providing good service will not gain you more sales.
  • Selling is a two way street – the solutions should be good for you and for your customer.
  • Consultative selling is a matter of understanding the customer’s core business, their goals and needs and positioning solutions that are valued for each individual stakeholder.
  • You should feel good about what you recommend to customers, that taking your recommendation is positive for them.

Three Ways to Define Sales

Traditional/Transactional Selling – Those who subscribe to traditional selling tend to take a product-oriented approach to sales. They respond to customer inquiries with little regard or understanding of the customer’s situation or latent needs. They may seek to understand customer needs, but with the focus on making a sale. Traditional salespeople tend to stress features and benefits over value for the customer. Presentations tend to be more of a monologue.

Emotional Selling - This is very seller-centric. Those who subscribe to emotional selling take the stance that if the customer likes them and they provide good service, that is most important and they will get whatever opportunities are available. This is a very non-assertive approach to selling, one which is not a good use of time for the customer or the salesperson.

Consultative Selling – Salespeople who use a consultative approach are collaborative and agile, adjusting to the needs of the customer and their specific circumstances. They are advisors, seeking to understand their customer’s core business, their goals and vision and the motivation for each influencer. They position solutions according to the impact on the business and address value for each influencer.

If you embrace consultative selling, or a similar approach, then defining what that means should encourage your people to embrace the word “sales” as well. Make sure that you are specific. Enlist your employees to help set the corresponding expectations and standards in order to promote ownership.

Marcia Gauger is Partner at DVR Learning, LLC, specializes in the design and delivery of performance-based learning programs and materials for sales professionals. Her blog is: http://www.dvrlearning.com/blog You can contact Marcia at email or call 262-642-9610. www.dvrlearning.com