by Marcia Gauger
Question:
I finished presenting a proposal & pricing for a fairly large project that I am about to undertake. I have a verbal commitment from my customer, now what should I do in terms of the next step? Should I put together another proposal outlining the specific pricing that we looked at?
Answer:
Assume the sale! You said you have a commitment from your customer, so proceed as if you do. If you put together another proposal, you may give your customer reason to second-guess the decision. The bottom line is, make it easy for your customer to move forward. For instance, if after reviewing your proposal the customer and you agree on certain aspects but not others, you may simply put together a letter of confirmation stating the work to be accomplished and a timeline. You may even say something like, “I’ll get started on the first phase of the project and in the meantime I’ll put together an outline of our agreement for our records.” Don’t say, “Now that we’ve had a chance to meet, let me revise the proposal and get it back to you for your approval.”
Salespeople have to be very careful not to become their own obstacles to gaining commitments. Even though I don’t like losing control of my billing, I appreciate that my satellite radio service automatically bills my credit card at time of renewal. They assume that you want to renew and I don’t think twice. Can you imagine how many sales they would lose if they asked for the commitment again at renewal time? On the other hand, every time I receive a renewal notice for products and services, I re-sell myself on whether or not I actually want or need the service. In some cases, I could be swayed either way. The same is true with your customers.
I recently received a call from a company selling network solutions. It just so happens that I am in the market for those services so I scheduled an appointment for a technician to diagnose my problem. However, instead of sending a technician, they sent a salesperson to tell me about their company and “gain a commitment before work would start.” They added an unnecessary step to the process causing me to question them. If they had sent a technician to take care of my immediate issue, they could have clarified bill rate and possibly secured a long-term customer. Instead of engaging me as a customer, it was just another sales call.
If you are nervous about starting work on a project, ask yourself if you really have a commitment? If you are unsure, review your letter of agreement with the customer and check the pulse by asking, “Does this meet your expectations?”
Convenience is often a major factor in gaining commitments in business. Our partner company, Synergyworks, recently asked a group of salespeople to share examples of how they “pull out the stops” by making it easy for the customer to do business. Here’s some of them:
After having difficulty getting customers to come in for spring service, a lawn & garden equipment dealership decided to set a schedule each spring where they pick up customers’ lawnmowers for service. They bring the mower back to the dealership, conduct the required maintenance and deliver the lawnmower to the customer in ship shape and ready to go. The feedback they receive has been so positive that most customers don’t think twice about buying a second piece of equipment from the dealership.
An online clothing retailer offers real time on-line customer service help with a guarantee that if they don’t like the product when they receive it, they can return it with the pre-paid return label. It’s absolutely no risk. Because of the immediate personalized service, the company has very few returns.
A local farmer of organic produce, meats and eggs was experiencing less customer traffic. While customer feedback was always good, he was at the mercy of whatever foot traffic happened to stop by or read his road sign. He decided to offer online pre-orders. Now, customers can go online and order what they need for the upcoming week with the option of home delivery or pick up at the farmer’s market. The program has been so successful that the farm has nearly doubled its sales volume.
Realizing the mayhem that back to school shopping can cause for parents and the need to capture market share, a savvy retailer created pre-packaged school supply kits hand packed according to individual teacher specifications and delivered to children on the first day of school.
What can you do to “pull out the stops” in your business? A little brainstorming may make a huge difference in customer commitment.
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
Sharing best practices in sales and sales management www.salesassociation.org
Thursday, March 17, 2011
Tuesday, March 15, 2011
Sell the “Product of Your Product” to Differentiate Yourself From a Commodity
by Marcia Gauger
Question:
I hear talk about stressing value to differentiate products and services, but how does that apply to commodities? From the customer’s perspective, the products we sell are absolutely no different than anyone else who distributes this product. All we have to compete on is price.
Answer:
Don’t get hung up on the product itself. You need to think about what you do for the customer. For instance, when we purchased a new copy machine for the office, we could have purchased the exact same brand and model for less than what we paid from a number of distribution sources. However, the company that we chose added value by offering advice that we needed regarding networking the machine to our computers and other online materail distribution issues that we were facing. Even though we paid thousands of dollars for the machine, the company we employed is in the business of selling service, not machines.
Make a list of everything you do that adds value for your customers – This is the first step in differentiating yourself. If you can’t list anything, you might want to consider another line of work! Consider the value that you bring to your accounts from a customer’s perspective. For instance:
Next, quantify the value for your customer – For example, if you can indeed show better response times than the customer is accustomed to, quantify what this means to the customer. Use the customer’s figures. If you are able to provide just in time delivery, how much does that mean for that particular customer in terms of saved inventory costs?
Define value for each individual customer – The problem with the word “value” is that it means different things to each customer. Stressing what you think may be important to one may not be to another. Some customers are strictly price shoppers and won’t give you the time of day. Others value expertise and welcome your advice. Somewhere between these two groups are customers that don’t know what else to ask about except price. And, given the opportunity, will share their aches and pains. Find out what’s important to each and stress value accordingly. For instance, the last time we bought computers for the office, one of my business partners tried to convince me to invest in the largest monitors available. While this particular feature just seemed like added cost to me, it was a significant value for my partner who was having trouble seeing the screen. Value is almost always measured in terms of increased time, decreased time, increased profits or some other personal pain or goal.
Don’t dwell on the competition – It is valuable to know how the customer feels about the competition. But, your focus should be on what you can do for the customer, not how you can outdo the competition.
Reduced price is not value – Anyone can cut his or her price. If you are relying on price cuts to gain business, be prepared for high turnover in your accounts. A request for quote is the customer’s way of saying, “I see no difference in what you offer from anyone else”. This is the starting point for you to discover opportunities to help the customer and provide value. You may simply say, “I would be delighted to provide a quote. Let’s get together so I can provide an accurate quote by better understanding your needs.”
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
Question:
I hear talk about stressing value to differentiate products and services, but how does that apply to commodities? From the customer’s perspective, the products we sell are absolutely no different than anyone else who distributes this product. All we have to compete on is price.
Answer:
Don’t get hung up on the product itself. You need to think about what you do for the customer. For instance, when we purchased a new copy machine for the office, we could have purchased the exact same brand and model for less than what we paid from a number of distribution sources. However, the company that we chose added value by offering advice that we needed regarding networking the machine to our computers and other online materail distribution issues that we were facing. Even though we paid thousands of dollars for the machine, the company we employed is in the business of selling service, not machines.
Make a list of everything you do that adds value for your customers – This is the first step in differentiating yourself. If you can’t list anything, you might want to consider another line of work! Consider the value that you bring to your accounts from a customer’s perspective. For instance:
- Do you offer better delivery schedules than the competition?
- Can you reduce the amount of product waste the customer is experiencing by offering suggestions on usage?
- Do you offer training that would increase plant safety as it relates to your product or service?
- Can you offer special packaging that would reduce handling of the product?
- By utilizing a method that you suggest, will the customer increase production or some other quantifiable benefit?
- Can you eliminate their need for other suppliers by serving more of the customer’s needs?
Next, quantify the value for your customer – For example, if you can indeed show better response times than the customer is accustomed to, quantify what this means to the customer. Use the customer’s figures. If you are able to provide just in time delivery, how much does that mean for that particular customer in terms of saved inventory costs?
Define value for each individual customer – The problem with the word “value” is that it means different things to each customer. Stressing what you think may be important to one may not be to another. Some customers are strictly price shoppers and won’t give you the time of day. Others value expertise and welcome your advice. Somewhere between these two groups are customers that don’t know what else to ask about except price. And, given the opportunity, will share their aches and pains. Find out what’s important to each and stress value accordingly. For instance, the last time we bought computers for the office, one of my business partners tried to convince me to invest in the largest monitors available. While this particular feature just seemed like added cost to me, it was a significant value for my partner who was having trouble seeing the screen. Value is almost always measured in terms of increased time, decreased time, increased profits or some other personal pain or goal.
Don’t dwell on the competition – It is valuable to know how the customer feels about the competition. But, your focus should be on what you can do for the customer, not how you can outdo the competition.
Reduced price is not value – Anyone can cut his or her price. If you are relying on price cuts to gain business, be prepared for high turnover in your accounts. A request for quote is the customer’s way of saying, “I see no difference in what you offer from anyone else”. This is the starting point for you to discover opportunities to help the customer and provide value. You may simply say, “I would be delighted to provide a quote. Let’s get together so I can provide an accurate quote by better understanding your needs.”
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
Thursday, March 10, 2011
Quick Ideas For Sales Meetings
by Marcia Gauger
Conducting concise skill-building activities at sales meetings (whether online or face-to-face) is a terrific way to enhance abilities and share best practices. Consider assigning responsibility to a different salesperson for each meeting. Concentrated segments are key! Focusing on one skill set at a time gives salespeople the opportunity to reflect on and integrate skills into the upcoming week. Then, make sure that you review and coach their experiences at the next meeting.
Here are some ideas for quick and concentrated activities:
Objections Drills – Distribute two index cards to each sales person. Ask them to write a recent objection on the card. Collect the cards and redistribute them. Now, ask the salespersons to write responses to the objections on the back of the cards that they received. Collect the cards again and redistribute. The drill begins with a salesperson stating the objection on one of their cards and calling on a person to answer.
To conduct this in an online meeting, ask each salesperson to submit an objection and potential answer. Post the objections one at a time and ask for responses or call on individuals. Online formats are terrific for playing games. Put the objections that salespeople submit in a jeopardy or other familiar online game format.
I’ll Add to That! – This exercise encourages salespeople to share knowledge and best practices while helping develop sales and account strategy. Ask each person to prepare an account analysis or customer profile. If you use a CRM, perhaps you have this information stored. Ask each person to outline a current sales objective, the key players, history and any other pertinent information about the current status of the account. Then, pass the account around the room by asking each salesperson for one idea, suggestion or question to add value for the customer and move the sale forward. Keep going until all ideas are exhausted.
To conduct this in an online meeting, display the profile forms so all can see and use the same process. Tip – Make sure that you truncate the form so it is visible to all or send the completed forms to participants in advance to study and make recommendations.
Technology or Competition Study – Assign a competitor to each salesperson. Ask each to research the competition and prepare a comparison of your advantages and disadvantages to the group. Be sure to provide specific guidelines about what they should report. Ask the group to draw conclusions about how they measure up. The same exercise can be used for technology education. Ask each salesperson to research a new technology and report or demonstrate how they have used the technology to advance sales objectives. You could focus on a specific technology such as LinkedIn, or even cell phones. Or, assign a specific technology to each person.
To conduct this in an online meeting - Pass controls to each person and ask them to demonstrate what they have learned.
Market Penetration – Ask each salesperson anonymously submit what they would do to increase sales and market penetration if they were given unlimited resources. Compile the master list, distribute and discuss. Prioritize and vote on recommendations as a group. Then, act on the recommendations!
To conduct this in an online meeting – Consider using polling features to vote on responses.
Invite an Expert – This could be someone from another department, or someone from outside of your company. It is highly motivating for salespeople to hear what others are doing to be successful. Be certain that you give clear guidelines to your guest. Consider inviting a top performing salesperson from a sister company or unrelated industry to share successes.
To conduct this in an online meeting – Invite a guest to be present via video conferencing. Or, find one of your favorite experts on YouTube and play an excerpt.
Invite a Customer - Make sure you give the customer a clear understanding of why they have been selected to attend. Ask the customer to explain their business needs, what they like about your services and what they like about the competitive solutions they may opt for. Allow the salespeople to interact and ask questions much as if they were on a sales call. They will learn from the customer and from observing each other.
To conduct this in an online meeting – This is best conducted face-to-face. To conduct this in a live meeting, video conferencing is best.
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
Conducting concise skill-building activities at sales meetings (whether online or face-to-face) is a terrific way to enhance abilities and share best practices. Consider assigning responsibility to a different salesperson for each meeting. Concentrated segments are key! Focusing on one skill set at a time gives salespeople the opportunity to reflect on and integrate skills into the upcoming week. Then, make sure that you review and coach their experiences at the next meeting.
Here are some ideas for quick and concentrated activities:
Objections Drills – Distribute two index cards to each sales person. Ask them to write a recent objection on the card. Collect the cards and redistribute them. Now, ask the salespersons to write responses to the objections on the back of the cards that they received. Collect the cards again and redistribute. The drill begins with a salesperson stating the objection on one of their cards and calling on a person to answer.
To conduct this in an online meeting, ask each salesperson to submit an objection and potential answer. Post the objections one at a time and ask for responses or call on individuals. Online formats are terrific for playing games. Put the objections that salespeople submit in a jeopardy or other familiar online game format.
I’ll Add to That! – This exercise encourages salespeople to share knowledge and best practices while helping develop sales and account strategy. Ask each person to prepare an account analysis or customer profile. If you use a CRM, perhaps you have this information stored. Ask each person to outline a current sales objective, the key players, history and any other pertinent information about the current status of the account. Then, pass the account around the room by asking each salesperson for one idea, suggestion or question to add value for the customer and move the sale forward. Keep going until all ideas are exhausted.
To conduct this in an online meeting, display the profile forms so all can see and use the same process. Tip – Make sure that you truncate the form so it is visible to all or send the completed forms to participants in advance to study and make recommendations.
Technology or Competition Study – Assign a competitor to each salesperson. Ask each to research the competition and prepare a comparison of your advantages and disadvantages to the group. Be sure to provide specific guidelines about what they should report. Ask the group to draw conclusions about how they measure up. The same exercise can be used for technology education. Ask each salesperson to research a new technology and report or demonstrate how they have used the technology to advance sales objectives. You could focus on a specific technology such as LinkedIn, or even cell phones. Or, assign a specific technology to each person.
To conduct this in an online meeting - Pass controls to each person and ask them to demonstrate what they have learned.
Market Penetration – Ask each salesperson anonymously submit what they would do to increase sales and market penetration if they were given unlimited resources. Compile the master list, distribute and discuss. Prioritize and vote on recommendations as a group. Then, act on the recommendations!
To conduct this in an online meeting – Consider using polling features to vote on responses.
Invite an Expert – This could be someone from another department, or someone from outside of your company. It is highly motivating for salespeople to hear what others are doing to be successful. Be certain that you give clear guidelines to your guest. Consider inviting a top performing salesperson from a sister company or unrelated industry to share successes.
To conduct this in an online meeting – Invite a guest to be present via video conferencing. Or, find one of your favorite experts on YouTube and play an excerpt.
Invite a Customer - Make sure you give the customer a clear understanding of why they have been selected to attend. Ask the customer to explain their business needs, what they like about your services and what they like about the competitive solutions they may opt for. Allow the salespeople to interact and ask questions much as if they were on a sales call. They will learn from the customer and from observing each other.
To conduct this in an online meeting – This is best conducted face-to-face. To conduct this in a live meeting, video conferencing is best.
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
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