Breath of a Salesman....
"Sharing the wisdom only experience can bring"
Breath of a Salesman

OMG, they’re changing the commission plan!

Anyone who has been in sales for a long time has worked for a company that has unexpectedly changed their compensation plan.  For salespeople, that kind of announcement can be scarier than a blind date with Dame Edna; and for good reason.   The truth is most companies change their commission plan because of one or both of the following reasons:  1. It’s not motivating the kind of behavior needed for salespeople to be successful or 2.  Salespeople are making too much money.

 

Reason #1 is, in my opinion, is the best reason for any business to restructure their commission plan.  The best plan always drives the kind of behavior desired by management, i.e. rewards high sales productivity (growth) and penalizes complacency.  Some plans, especially those that reward repeat business with residual income, tend to foster complacency.  Salespeople that have worked for years building residuals tend to coast along once they reach an income level that they are comfortable with.  For most businesses, that’s the kiss of death.  While repeat business is critically important, year to year growth in business is what keeps a company healthy and profitable.  That’s why more and more companies are moving toward commission plans that reward growth over prior year or a hybrid plan that combines rewarding growth with rewarding repeat business.

 

Salespeople that have become fat and content don’t much like this kind of change, but, in the end, the change will be doing them a huge favor by providing the necessary motivation to grow sales like they did back in their rookie days.  Of course there are those salespeople who will have a sense of entitlement and not want to have work that hard.  To those I have only one bit of advice: either change your attitude immediately or expect to secure your place in the unemployment line very soon! 

 

Reason #2 may seem totally unfair.  And in many cases, it is.  But nobody said life was going to be fair, right?  Here’s what usually happens.  A company creates a commission plan, but fails to properly project the kind of income reps might earn.  Sometimes the average salesperson ends up earning 2 or 3 times what the company ever thought possible.  What’s more, those high earnings could be 2 or 3 times what the job market commands.  No shrewd business owner wants to pay more than what the market commands.  Hopefully the business owner making this decision has really investigated why he’s paying such high commissions.  It could be that only a small fraction of the sales force is making incredibly high wages.  Is it because those sales people are selling 2 or 3 times what the others are?  If so, the pay plan is probably fine as is.  If not, I can’t blame ownership for making a change.

 

Now before you freak out, overreact and quit your sales job after a commission plan change, you need to honestly ask yourself the following questions:

 

1.      Was the old plan “overpaying” based on the real market conditions?  If so, leaving the job for another similar job paying similar wages is not smart.

2.      Does the new plan highly reward top producers?  If so, you might want to consider becoming a high producer J

3.     Do you have leverage?  That is, are you already a top producer?  If so, you might be able to negotiate a better plan than the other salespeople in your firm.  If you feel you are in this position, do you your homework before meeting with management.  Knowing your ranking among your peers as well as what other employers pay salespeople in your position will help a lot.   If you can prove that the new plan is treating top producers like you unfairly, the smart employer will listen and adjust.  No quality company wants to lose their top talent because of a boneheaded commission plan change.

4.      If, after doing your due diligence, you conclude the plan simply is unacceptable it’s time to look for another employer.  And while it may seem obvious, don’t quit your job until you have a new one!  Oh, and one final thing.  Don’t lie to your employer by saying you got another job offer with the hope that they will offer you a better deal to stay.  Sure, it might work, but if it doesn’t you’ll feel like you just put $100,000 on black on the roulette wheel and the ball landed on red.  Ouch! 

Buying Signals

Selling is a little like driving.  You have to have a destination in mind, know when to stop and know when to go.  In sales your destination is closing the sale.  But to get to your destination, you first need to know the rules of the road.  All of us learn from a very early age about traffic signals.  Green means go, yellow means caution, the light’s about to change and red, of course, means stop.  In sales it’s the customer that is the traffic signal.  However, for a talented salesperson, that traffic signal can be greatly influenced by the salesperson instead.  

Now don’t get me wrong, I am not advocating anything underhanded, unethical or manipulative.  I am simply pointing out the proper way to deal with a customer’s buying signals.  Unless you’re selling a pack of gum, most moderate to high dollar sales situations required a good amount of interaction between the customer and the salesperson.  It’s the savvy salesperson that recognizes and utilizes buying signals to move the sales process forward to the ultimate close.

Some of these are obvious and some are not.   If a customer calls you or they come into your showroom, that’s an obvious buying signal.  Sure, I know that some of them aren’t really serious, but for the most part, a customer making a proactive move to seek out information is a huge and obvious buying signal.    Ok, so much for the obvious.  Now let’s explore the kind of buying signals that sharp salespeople know how to spot.

1.  Questions (The absolute best buying signals):

• How much?
• How long will it take to get?
• Do you deliver?
• What’s the warranty?
• Does it come in blue?
• Do you install?
• Do you take credit cards?
• What’s your return policy?

2.  Statements:

• I really love it!
• Wow, that’s a really good price!
• I “need it.”
• I “want it.”
• I’ve been shopping around.
• I saw your ad.
• My friend told me about your company.
• My bank has pre-approved me.

3.  Body Language

• Physically touching, trying or otherwise involving themselves with the product
• Proactively approaching you vs. having to be approached (retail situation)
• Leaning in or nodding affirmatively when listening to the sales presentation
• Business associates/husband and wife/ friends looking at each other with a positive, excited or content facial expression during the sales presentation

Unfortunately for salespeople, potential buyers are preprogrammed not want to show their real interest in the product or service.  How many times have you gone into a retail store and responded to the question: “May I help you?” with “Just looking.”  The average prospect is actually subconsciously afraid of being sold, even though they may really want or need the product in question.  So since most insist on not be entirely open, the great salesperson will always look for the buying signals that open the door to closing the sale.  But be careful.  You must respond to these buying signals with great care.  Closing too quickly or too late may be fatal. 

For example, body language alone usually isn’t enough to tell a salesperson it’s time to close.  Instead it’s a great indicator of how the salesperson’s message is being received.  However, when combined with one of the questions or statements above, it’s likely the traffic signal has turned green.   Imagine a prospect midway through your presentation, looking at his wife with a big smile, stating that he really loves it and asking if you deliver.  Now believe it or not, I have seen salespeople ignore those signals and keep on blathering away.  Of course the right thing to do in that situation would be to ask for the sale, shut up and wait for the answer.  In most cases, the sale will be made then and there.

In other cases a trial close will be more appropriate.  Imagine that same couple, but this time the wife asks, “What’s the warranty?”  Now it would be a bit premature to ask for the sale in response to that question.  However, it’s a great place to use a trial close that will provide a bridge to the final close.  You might respond by saying, “The warranty is 1 year parts and labor; however, we offer a 3 year extended warranty for only $75.00.  Which option do you prefer?”

No matter how she answers that question, you have successfully gotten her to begin the decision making process moving things closer to the close.  For example, if she says, “Well, I really like the peace of mind an extended warranty provides” it’s likely the time to ask for the sale.  In this case I might respond by saying, “I completely agree.  A small investment now can save you a bundle down the road. Did you want this delivered or do you prefer to pick it up?”  Yes, you guessed it.  Either choice closes the sale!

Say What?

II think it’s obvious that good communication skills are necessary to assure success in sales.  Yet time after time I hear salespeople say things that make me cringe.  Here’s what I mean.  We’ve all heard the old adage stating, “It’s not what you say, it’s how you say it.”  In sales that is oh so true!

For example, I recently heard a salesperson say to a prospective customer, “Can I ask you what you are currently paying?”  The customer responded by saying, “No.”  I would have said the same thing.  In the above example the salesperson made the egregious error of asking the customer if they could ask a question.  That immediately sends up a warning flag alerting the customer the salesperson is uncomfortable asking the question.  This puts the customer on the defensive and results in a big fat NO! 

Now let’s say the salesperson simply were to say, “How much are you currently paying?”  That’s a very matter of fact question that, said with confidence, sounds quite reasonable.  Much of the time, prospects hearing that question will respond by telling the salesperson exactly what they are paying.  Why?  Well, isn’t it obvious?  The sales person asked!

My point is simple; don’t ever allow your fears, lack of confidence or lack of planning (script) to jeopardize your selling opportunities.  You usually get only one opportunity to make a sales presentation.  So treat it like an audition and learn your lines!  Here are a few more examples of the wrong and right way to say the things that we salespeople commonly deal with:

Wrong – Would you be interested in learning about my product (or service)?

Right – I have read your company’s annual report and saw that your CEO has pledged to cut costs by 10% this year.  My company has developed a software application that will allow you to cut your shipping costs by as much as 20% annually!  I’d like to schedule an appointment to show you how you can realize these savings immediately.  Would tomorrow afternoon work for you or would later in the week be better?

Wrong – Hi, My name is John Smith with Acme Insurance.  How are you today?  I’m sorry to bother you, but do you have a minute to talk about life insurance?

Right - Hi, this is John Smith with Acme Insurance.  I saw your wedding announcement in the Daily News last week.  Congratulations!  Given that you and your fiancée, Linda, are undergoing a major life change, it's the perfect time to create a financial plan to make sure your family is properly protected.   Would you and Linda have time to meet one night this week, or would Saturday be better?

Wrong – Here is my proposal.  Please let me know if my price looks low enough.

Right – Here is my proposal.  Here’s why it provides the very best value…..(go on to review how your proposal address his/her needs)

Wrong – I will need you to sign this contract.

Right – I will need you to ok this agreement.

Wrong – Give it some thought and let me know if you want to go forward with the purchase.

Right – Would you like that delivered tomorrow or would Friday be better?

Wrong – Hi, Bob.  I’m calling today to make sure everything is going well with your new tractor.  All is well, you say?  Great!  Is there anything else I can do for you?  No?  OK, have a nice day!

Right – Hi, Bob.  I’m calling today to make sure everything is going well with your new tractor.  All is well, you say?  Great!  I’m glad to hear that.  By the way, I want to also let you know that we are having a 10% off sale on all tractor accessories through the end of this week.  I remember you mentioned you might want to add the mower option to your tractor.  I can have it delivered by the end of the week and you will save over $100!  How does that sound?

I can go on and on, but I think you get the point.  Now go out there and boldly sell like you’ve never sold!

Selling in a bad economy

Yes, I know you’re asking does the world really need another opinion on how to make it through this horrible economy?  Well, ready or not, here it comes.  Make no mistake about it I am not one of those people who see the world through rose-colored glasses.  In fact, I have a reputation for seeing things in a very realistic way.  Trying to fool myself into thinking things are wonderful when they really aren’t simply isn’t how I operate.

So, it is with sincere conviction that I admit that this economy is really, really bad!  I have friends and family members that have been laid off due to this economy.  And even though I am quite fortunate to be working in a company that is solvent, I do admit to feeling the sting of plummeting investments.  Oh, how nice it would have been to have spent my money on a Ferrari!  But alas, the money has evaporated thanks to Wall Street greed, people who took out loans they had no hope of repaying and, of course, the incompetence of our government.  Ah, the hindsight Trifecta!

Ok, enough lamenting.  Let’s talk about what we can control.  Thankfully our nation is still functioning.  People still have needs and almost 90% of us still have jobs.  That means that people are still buying things, albeit less in many cases.  So, since there is less business to go around, the smart salesperson has to find a way to take more of what’s left. Instead of complaining that business is bad, they must be creative enough to move more customers into their camp. 

These days if you sell products people or businesses must have to survive you have a huge advantage.  To stay in business or to simply stay alive, purchases must be made.  In times like these, however, these “necessary” purchases won’t be made the way they were a couple of years ago.  People that wouldn’t dream of changing vendors or their favorite supermarket are now exploring all options to save where they can.

This is a doubled edged sword.  On one side there is the real chance that you can lose life long customers to competition willing to drastically undercut you to earn much needed business.  That means that salespeople who thrive on repeat business must be proactive before it’s too late.  Now, more than ever, salespeople should be making more contacts with their key clients, offering extra incentives in exchange for long term commitments, and by all means, showing empathy.   Don’t think that burying your head in the sand will help you weather the storm.  Go ahead and acknowledge that things are bad and that you, as their business partner, are willing to help.  This kind of approach will be appreciated and go far in securing future business.

Once you have done everything reasonably possible to secure existing business, it’s time to go on the offensive.  A “take no prisoners” attitude is now in order.  And while you may not have led with price in the past, price better be at the forefront of your presentation now.  Better still, selling superior value should be your mantra.  Frankly, that’s a great mantra in any economy.  However, in this economy, talk is cheap.  To get your customer’s attention and ultimately win the business, you better serve up a terrific offer.  For example, my company sells healthcare consumables.  Fortunately for us, people still get sick and consequently hospitals still need to buy supplies.  Because we keep current on our industry we know that CEO’s from coast to coast are forcing their department heads to slash budgets because even though people are still getting sick, revenues are way down due to more people being uninsured, reduced charitable donations and people putting off elective procedures. 

In response we have gotten really aggressive.  Right out of the gate we are reminding our prospect that “we get it.”  After getting their agreement that they must cut their budgets, we then make a value proposition that is almost impossible to resist in this economy.  We are offering products of equal quality for a lot less – guaranteed!  In fact, in exchange for them committing 90% of their to business to us, we will guarantee them an overall savings of 20% vs. what they were formerly paying!  Now that’s impactful!

Sure, our margins have declined a little, but our overall profit has grown.  Yes, grown!  I am proud to say they we are one of the few companies still growing.   The beauty of this approach is that not only are we making sales, we are getting long-term commitments in the process.  In the past we tried the very same thing, but never before have we gotten people to stop and take notice like they are today.  As strange as it may seem, our bad economy is actually opening new doors for us. 

No matter what you are selling, there are still people buying.  Your job, should you decide to accept it, it to go out and get it by using the most creative and bold methods you can think of and still remain profitable.  By doing so, you too can turn this economic mess into something good.  Yes, I long for a return to the good times.  But until they return, I will continue to blow away the competition by advancing my troops.  General George Patton said it best, "In case of doubt, attack!”

Top 40 Selling Rules

A few days ago one of my newer reps asked me if I had any specific advice on how to be successful in the new sales position.  After thinking about it awhile I realized that I had lots of advice that ended up turning into the following list.  I think they're all self-explanatory, but if not, I'll be happy to explain.  

1 Always be professional
2 Always follow up
3 Always sell value
4 Anticipate objections
5 Ask for referrals
6 Ask for the sale
7 Ask questions before providing answers
8 Associate with the most positive and knowledgeable people
9 Be honest
10 Be open to change
11 Be prepared
12 Be sincere
13 Do what you hate first
14 Dress the part
15 Have measurable goals
16 Hit for average
17 Keep a positive (and realistic) attitude
18 Keep feeding the hopper no matter how well you’re doing
19 Keep learning
20 Keep the customer’s best interest first
21 Know that good times and bad times never last
22 Know your competition down cold
23 Know your presentation and objection responses down cold
24 Know your product or service down cold
25 Network
26 Never get complacent
27 Never raise your own objections
28 Never sell junk
29 Never underestimate the customer’s knowledge
30 Prioritize
31 Religiously use customer contact management software
32 Save for a rainy day
33 Share your knowledge
34 Show up
35 Stop associating with toxic people
36 Stop complaining
37 Track your progress
38 Under promise and over deliver
39 Use leverage
40 When you think you’re finished for the day make one more call

Have you gotten lazy?

You may have gotten lazy, but you may not even know it.  Here’s what I mean.  I have managed salespeople for many years.  And I am not afraid to admit that I have made my share of mistakes over that time.  Fortunately those mistakes have not been major.  And more importantly, I think I have learned from those mistakes.  Here’s a case in point.  I recently asked my sales crew to learn a new script for a very important campaign we were about to embark on.  The script was easy and straightforward so I didn’t think the staff would have any problem learning and applying it.

After a couple of weeks of allowing them time to learn the script, I asked the management team to do some role playing just to make sure everybody was good to go.  Much to my chagrin many reps did very poorly!  Why?  Well, the answer is simple.  They got lazy. 

Some of them, even my superstars, thought they were so good at their job they didn’t really have to prepare.  So when the role-play took place they came off as unprepared amateurs.  Since this campaign was directed toward high-level decision makers, I knew there was no way we could succeed unless we turned things around in a big way. 

When critiqued, some of the reps made excuses, and others just shrugged it off.  Quite frankly, I have to take full responsibility their poor performance.  So instead of sweeping this under the rug I figured it was time to get back to basics.  That meant that every rep (and sales manager) had to swallow their pride and once again become students.  We revisited the basics of the sales call, including the proper way to get by the gatekeeper, how to quickly grab the prospect’s interest, dealing with objections and, of course, closing the sale.

None of these things were new to this group of mostly veteran reps, but it was amazing how so many of them had allowed their basic sales skills to slide.  As Steven Covey said in his best seller, “7 Habits of Highly Successful People,” you must take time to sharpen the saw.  Or to put it more simply, one must keep practicing and refining their skills. 

So another lesson learned.  As a manager I got complacent assuming my staff was sharpening their saw.  We have always focused on training, but virtually all of it was on the “new stuff.”  Now you can bet I will see to it that every rep keeps a sharp blade.  My advice to you?  Well, don’t wait for your manager to remind you to sharpen your saw.  Instead see to it that you regularly examine how you are doing.  Practice your skills and never ever think you are so good that you can get by on cruise control.  This advice should serve you well, especially in these uncertain economic times.

The importance of attitude

Yes, I know what you’re thinking.  Everybody knows you should have a good attitude to be successful in sales.  That applies to all jobs, right?  Of course it does, but I truly believe it applies to sales more than any other.  For example, let’s say you’re an auto mechanic.  Sure, your attitude is important, especially when it comes to doing what your boss asks of you.  However, you can be negative, withdrawn, depressed and just unpleasant to be around, but if you show up on time, every day and fix every car perfectly, guess what?  Chances are you will probably have a job for life.

Now let’s apply that same attitude toward selling.  Who in his or her right mind would want to buy from somebody like the auto mechanic described above?  I realize I am stating the obvious, but I am doing so to make sure what I am about to say isn’t misinterpreted.  While being positive and upbeat is terrific, being that way without also having a realistic attitude can be problematic.

Any long time reader of this blog knows that I manage a lot of salespeople.  Each with their own unique personality and approach to their profession.  The one thing I have noticed over the years is that attitude isn’t always what it may seem.  Sure, it’s easy to predict that somebody like our auto mechanic friend is going to be an immediate failure in the sales game.  But frankly, I have never met anybody quite that bad in my career in sales.

Instead I routinely run into people that, on the surface, seem very friendly and positive.  It’s not until you see them in action over a period of time do you find out what they are really made of.

Here’s the problem.  Some people go into the job thinking their cheery attitude will be all that’s needed to succeed and overcome obstacles.  I have been to countless seminars that feature inspirational speakers.  They all stress positive attitudes, but I have found that they also tend to sound like idealists.  Frankly, that’s never worked for me.  I live in a very real, and sometimes cruel, world.  I think it’s unrealistic for anybody to stand before an audience proclaiming how you always must be positive.  The old saying, “you can if you believe you can”, sounds terrific, but I am pretty confident that just thinking you can isn’t enough.  Sure, that positive attitude can go a long way, but it’s the attitude you apply to the real obstacles of selling that really matter.  Here are a few examples of how a realistic attitude can serve you well:

1. Cold calling – Most everybody hates it, but all good salespeople know it’s a must.  I have never had what one would call a great attitude about cold calling, but I have always had a realistic attitude.  Bottom line:  I know it’s a must and I accept that.  I don’t love it or even pretend to like it.  I just do it because it’s necessary.  Now I’m sure there are many better people than I that can genuinely say they love it.  Good for them!  I think they are the exception and not the rule. If I were to try to pretend to love cold calling I would go nuts because I would only be fooling myself.  

2. Conflict with management  - Unless you own your own business you’re going to have to deal with some management decisions or rules that you won’t like.  I think it’s ok to disagree and respectfully verbalize your position.  It can be very cathartic.  But in the end your attitude needs to be realistic.  Again, you don’t have to pretend to be happy about everything, but being realistic and accepting that everything won’t always be perfect is a good thing.

3.  Dealing with a sales slump or economic downturns – Yes, it’s tough to stay positive during these times.  I think it’s ok to feel down, but only for a brief time.  Who wouldn’t feel down after seeing their income plunge?  However, a realistic understanding that good times and bad times never last can go far.  The old saying, “when the going gets tough the tough get going” is very true.  The only way out of a slump is hard work – That’s reality!  Oh sure, a little luck never hurts, but don’t count on it. 

4. Problems – Back orders, service interruptions, quality issues, tight credit, etc. can make sales a grueling environment.  There are some days when you think you need to get a restraining order against Murphy (as in Murphy’s Law).  Here’s what works for me.  I know that I would have absolutely no selling related problems if I had no sales.  Hmmm, somehow that puts it all into perspective.  

By now I trust you are getting my point.  You don’t have to be a Pollyanna to be successful.  In fact I think that an unrealistic Pollyanna type attitude could actually backfire because the real world just isn’t that perfect.  I have had many salespeople quit because the job proved to be too tough.  It didn’t meet their high idealistic expectations.  By having a realistic attitude with a positive slant you can win big without trying to live up to an unrealistic “super attitude” expectation that so many motivational speakers promote.

Here’s to reality and the success that accepting it can bring!  And to the Zig Zigler’s of the world, please accept my apologies.

The art of negotiating

There have been volumes written on this topic plus countless seminars you can attend to sharpen your negotiating skills.  And while every information source brings value and a unique perspective, here’s my abbreviated take on this very important sales skill.

If you sell anything that requires negotiating price, finance terms, etc. congratulations!  You have a lot more selling power than the guy selling in a structured (probably retail) environment with rigid rules.  That may seem odd since most people don’t get too excited about the prospect of lowering price, bending on terms, etc.  But consider this: negotiating also means you might be able to get more out of the deal not less. 

I think many people look at negotiating as a painful experience.  It certainly can be, but only if you allow it to be.  What I mean is that it will be painful if you’re a salesperson coming from a position of weakness.  A shrewd customer might be able to negotiate price down to the point where near zero commission is the result.  Instead the strong salesperson must always make sure the playing field is at very least level.  Here are a few rules I try to live by when negotiating from the salesperson’s side of the desk:

1. Know that the better your relationship is with the customer, the less you will have to negotiate.  There is no substitute for the trust a long-term relationship will provide.

2. Never negotiate anything until you have made your presentation, including asking the right questions that illicit the customer’s buying criteria.  That means you must get the chance to review your product’s features and benefits and match them to your customer’s needs.  Believe me, you’re going to need to remind your customer of the value of the product/service you’re selling more than once during your negotiation.  Make it meaningful!

3. Know the competitive marketplace.  Don't even consider lowering your price until confirming you are comparing "apples to apples" products or services.  If you truly offer higher quality, sell the superior value of your offering.  Customers will choose value over price most of the time. 

4. Know your bottom line and don’t allow yourself to go below it.  Your time is valuable.  And I am not talking just about the time it will take you to negotiate.   If the resulting sale will require you to do follow up work to complete the sale, factor that in too.  Ask yourself: will the resulting commission be enough to justify my time?  If not, I think it’s OK to walk away from the deal.  You only have so many hours in a day so it’s best to use it selling and servicing customers willing to pay a fair price.

5. Calculate the lifetime value of the potential customer.  It’s sometimes worth taking little to no commission on an initial small order to get your foot in the door.  If you are selling consumables this tactic can be very effective.  Customers usually won’t give you all their business before they can fully trust you.  You can build that trust by giving an offer they won’t refuse.  Just remember to be clear about why you are making such a concession and get the customer to agree to buy at regular price once you and your company have proven yourself.

6. Never give anything unless your customer is willing to give you something in return, preferably a commitment to buy.  It’s the ever popular “If I can, will you” statement that must be in play.  A typical exchange may go something like this:  (Customer) “Your price is too high, I wouldn’t pay over $15,000 for that system.”  (Salesperson) “Mr. Customer, I understand your position. If I am able to get my manager to approve the price of $15,000 will you go ahead with your purchase today?”  If the customer says yes, and you know $15,000 is doable, the sale will be made.  Now this example is highly simplified, but it makes the point that you want to leverage anything you give away to close the sale.

7. Know how powerful your position is.  You may not have to give up anything.  For example, you won’t find car dealers negotiating on certain brand new super popular models.  Why?  Because they don’t have to.  In fact, the dealer may be able to get more than the manufacturer’s suggested retail price if the car is popular enough.  While I am all for maximizing profit by getting what the market will bear, I do suggest you be careful.  Your short-term gain could result in a long-term loss by alienating the customer.  Nobody wants to feel taken advantage of.  So remember, if you are in business for the long term, and want customers to come back, treat them fairly.  I have always subscribed to the adage, “pigs get fed, but hogs get slaughtered.”  Don’t be a hog!

8.  If you do have to lower your price, don't give more than you have to.  Beating your competitor by 1% can be equally effective as beating them by 20%.  Customers want to feel like they have won the battle.  That's OK.  However, I recommend that you not let them win in a landslide.

9.  Above all be prepared by having a precise game plan before you enter into any negotiation.

Relationship Selling

Relationship selling is defined as the art of selling in which the primary objective is the building of long-term relationships with customers from which repeat business will flow.  Sounds easy enough, right?  For some it is, but for others it’s a challenge. 

Let’s start out by making sure we all accept the fact that relationships alone won’t make a sale; however, it sure stacks the deck in your favor, especially if you are selling consumables or a service that is necessary on an ongoing basis.  It’s no secret that people prefer to buy from somebody they like; it’s human nature.  So why is it so difficult to get everybody to like you?  Well, my theory is this:  everybody is different and consequently their criteria for “likeability” are different. 

Just look at yourself.  Unless you qualify for sainthood, you don’t like everybody you meet, associate or work with.  I sure as heck don’t.  Of course that goes for customers as well.  We, as salespeople, aren’t going to like some of our prospects and customers.  Naturally the reverse is also true.  So how do you “stack the deck” in your favor?  Simple, adaptability!

Great salespeople are like chameleons; they are able to adapt to their environment.  That also means adapting to the different personality types that one naturally encounters along the way.  Now, if you’re the type that insists that your sparkling personality is loved by all well, I don’t like you already!  You might be thinking that I’m joking, but I am not. I’m a driver – I’ll explain later.

I meet salespeople every day.  And as I have said before, I love to “kick tires” and test the skills of salespeople I encounter.  I’m always so tempted to give them advice, but instead I usually tell my wife how the salesperson I met earlier that day could have improved.  She usually encourages me to share a story or two just before bedtime.  Apparently it’s a wonderful sleep aid, but I digress.

Take me, for example.  I am a self-described “driver” personality type with a hint of “expressive” personality that surfaces in certain situations.  That means that I like salespeople to deal with me in a straight forward no non-sense way.  Early in the sales process I don’t want to chit-chat, I don’t want to exchange trite pleasantries and I sure as heck don’t want to waste time discussing anything not germane to the buying/selling situation.  Boy, don’t I sound like a real jerk?  Maybe, but this much I can tell you, I spend a lot of money on stuff.  And when I do it, I usually do it quickly without making the salesperson jump through a lot of hoops or play any games. 

The really good salespeople I have met immediately sense that.  They are adaptable.  They read my body language, my voice, my questions and statements then respond in a way they know I will appreciate.  The bad ones go in an entirely wrong direction.  The interesting thing about my buying habits is this: once a salesperson gains my trust, usually over time, I change from being a “driver” to a very amiable customer.  Why? Because that salesperson has earned my respect! 

I think most buyer personality types ultimately end up being the amiable type once the salesperson earns their respect.  It’s human nature.  More on that in a minute. 

K. David Katzmire puts people in 4 basic personality categories.   Here’s a link that will give you a very detailed overview of his theory, which I believe in, by the way. There are also lots of books out there that talk about this theory.  A simple Amazon search will give you some options if you’re interested.  In the meantime here’s my abbreviated take on the 4 basic types:

Drivers – They want just the facts presented to them clearly and quickly.  They don’t want to socialize.  Instead they want to deal with somebody that’s knowledgeable and capable of filling their needs now.  They appreciate efficiency and salespeople that get to the bottom line ASAP.  Conversely, the slightest hint of incompetence or lack of ability will cause the driver to say NO!

Analytical – These are the “bean counters” of the world.  They love data, the more the better.  They want all the facts and figures of the product they are thinking of buying presented to them in a systematic and logical way.  They want to compare, they want to shop and they want to do their due diligence before they purchase.  Hey, I can’t fault somebody for wanting to make an informed decision.  So if you can’t beat ‘em, join ‘em.  Give them what they want; however, it’s important not to let this get out of hand.  In other words, give them enough to satisfy them, but don’t forget to steer them to the close.  If you don’t, you may grow old waiting for them to run that one last spreadsheet.

Amiable – Ah, these are the “nice” people all salespeople just love.  Hey, I’m a driver and I love them too.  And why not?  These are people that are friendly, open and easy to work with.  For these people you must meet their expectation that you too are a nice person.  That means you are going to want to engage them in conversation that involves things like the weather, their most recent vacation, the beautiful jewelry they are wearing, the picture of their grandkids.  You get the point.  Amiables tend to be very loyal.  So don’t let their open empathetic pleasant personality fool you.  They want to please everybody, so saying no isn’t easy for them. 

They have a hard time saying, no and instead they may make up excuses not to say no.  They prolong the sales process because it’s easier than raising an objection.  So be very careful and look for the signs.  If you’re dealing with a super amiable person, you aren’t getting any objections and instead are finding yourself making sales call after sales call with no results, it’s time you take the bull by the horns and either close the sale now or move on to your next prospect.

Expressive – These people tend to be very enthusiastic and motivated people.  They are confident and full of ideas.  However, many times they are very scattered and impulsive which makes making decisions that actually stick, a challenge.  They usually like to talk a lot and may have a flare for the dramatic.  Often times these people are in positions of authority because they can be very confident, convincing and controlling.

In reality everybody is a blend of these 4 basic personality types.  However, most of us tend to have personality traits that are far more dominant than others.  Like I mentioned before, I think I am mostly a driver type, but I must admit to having expressive tendencies.  That means that I need to feel like I am in control.  And contrary to the driver personality, I do sometimes like to talk and socialize, even be the center of attention as a performer or speaker on a stage.  So salespeople dealing with the expressive personality need to let the customer talk and feel like they are in control of the buying decision.  They will also want to skillfully fill the ego of the expressive by asking questions that prompt them to talk about themselves or about what they know.

I want to close by reminding you that you don’t have to change your personality to succeed with the different personality types mentioned above.  Instead, you just need to adjust your personality to suit the personality you are selling to.  Once you understand and implement that philosophy greater success will be yours!

“Hey, I tried that once, but it didn’t work!”

Yes, that’s right, expert advice doesn’t always work.  Not even mine.  However, the good news is that following great advice will most always increase your chances of success. 

I decided to write about this topic because I deal with salespeople on my staff every day who have to be reminded that the sales game isn’t a cake walk.  Even with the best of talent, knowledge and selling tools nobody closes every sale.

Allow me to reach into my favorite baseball analogy bag to make my point.  Any baseball fan knows that even the greatest hitters are only successful 3 out of every 10 times at bat.  These are the best of the best.  They go through rigorous training, study their swing, see a sports psychologist, practice all the time and perhaps most important of all, they apply what their coaches teach them. 

Yet, even with all that help, they still aren’t successful most of the time.  But the best hitters work very hard anyway because they know that by applying proven batting techniques, they will improve their batting average by as much as 10%.  Now that may not sound very impressive, but, in baseball, that can mean the difference between being an average player, batting .270 and the player that’s going to the hall of fame because he’s batting .300!

Just like great hitters, great salespeople understand that they can’t bat a thousand.  However, they do know that consistently applying the right techniques and heeding good advice will raise their closing average exponentially.  What’s more, unlike the ball player, a salesperson can double, triple or even quadruple their average (not to mention their income)!

So don’t despair.  Instead, make your commitment now to do what it takes to be a hall-of-famer!