I want to tell two business-related stories. One has to do with sales tactics gone awry, and the other with customer service issues that leave you with a bad taste in your mouth. Both of these stories are completely true, and happened to us in the same week.
Triple Dog Dare Media is in the midst of obtaining a GSA Schedule 541--in other words, we're trying to become a certified vendor of Web-based marketing sevices to the federal government. As anyone who has been through the GSA schedule process knows, it's not an easy thing. You have to jump through a lot of hoops, fill out plenty of forms, and hope that you get it right the first time.
Because of the huge learning curve, Hope and I have been sucking up information left and right. We've visited web sites, talked to folks who have been through the process, signed up for email newsletters, and even attended a very nice GSA conference in Palm Springs over the holiday break.
Naturally, when we received a postcard from the B2G Institute inviting us out to the Marriott in Round Rock, Texas to learn about landing government contracts, we figured "Why not?" We knew we were going to hear a two-hour sales pitch, and that they were probably going to try to sell us on workshops or consulting services to expedite the process of obtaining a GSA schedule. Nonetheless, we figured we could pick up a few more pieces of the puzzle along the way.
Well, what a mistake that turned out to be. We showed up at this free workshop, and the sales pitch started. The guy who gave the presentation was supposedly a cofounder of the institute. I say "supposedly" because I don't know if I can trust what he said, as we pretty much caught him in several exagerrations, fibs, and outright lies.
Whenever he posed a question to the audience and then heard responses that weren't in line with his program, he would say something like, "Well, you're at a free workshop in the middle of the day, what does that say about how busy you are?"
Later on in the presentation he asked if we had a written business plan or strategy. Some of us did, but many didn't. He said, "You know, if you don't have a plan, you can't call yourself a business owner. You're really just a guy who got laid off and is trying to make ends meet. You gotta have a vision, and you have to communicate that vision to others in writing."
As much as I agree with the sentiment, I didn't agree with his approach. It's not like we had paid him to assess our business acumen! He was trying to get our money, for Pete's sake--and there he was in full insult marketing mode!
Next he gave us an example of a woman who won a $1 million contract maintaining US government web sites. "Now, anyone can do web design. This is a no-brainer people!" Hope and I just exchanged a look with several other IT consultants in the room and shared a chuckle. This guy was scoring points left and right!
As the 2-hour workshop started winding down, our presenter started to wind up his pitch. Basically he was trying to get us to sign up for a weekend-long class on getting government contracts. He mentioned that Texas companies only secured 28% of the federal money for our state, that other folks out of state were grabbing up the lion's share of the deals. What was wrong with us here in the Lone Star State--were we stupid or something?
He closed by saying, "Look, this three-day workshop is normally $5,995, but for you guys in Texas, we're going to knock it down to $2,995. If you don't have $3000, you really don't have a business. You don't have it today, and you won't have it 10 years from now."
Wow. There was no way we were going to part with our money at this point. We would figure out this federal government contracting thing on our own, thanks. The B2G Institute had a perfect opportunity to teach us a few things, maybe even enlighten us, and then lead us right to the sales close, but they opted for the hard, obnoxious sell.
You may ask, did it work? I watched as 7 folks (out of about 20) signed up for the program. Every single one of them had self-identified as baby business owners or gonnabe/wannabe business owners at the start of the program. I spoke with a few people who walked out without signing the paperwork, and every one of them were disgusted by the hard sell and were experienced business owners.
Okay, so here's Part 2. We've been banking with Wells Fargo for about 4 years now. The relationship is okay most of the time, which is to say, that normally, we blissfully ignore each other except to make deposits or write checks.
One of our biggest clients wrote us a sizeable check last week, which we promptly and happily deposited. With money in hand, we met our obligations (including payroll) and went on our merry way.
The day after pay day, I was trying to make an online payment for a product and my debit card kept getting declined. When we investigated, we found to our horror that there was no money in our business checking account and that our line of credit was maxed out. What happened? We frantically started making calls.
Turns out that our client's check had cleared our bank, then had been cancelled by their bank, Bank of America. There was no reason given. No one was notified. It just happened.
Well, our very wonderful client issued a second check, which we deposited, and we got everything sorted out after 12-14 hours.
The day after that, we get a letter in the mail from Wells Fargo, dated 5 days earlier. The letter stated that the check from our client had been withdrawn by Bank of America. This information was valuable, but had arrived several days too late to avert disaster.
So Hope got on the phone to Wells Fargo to find out if she could get signed up for instant email alerts. We figured a quick email would be cheaper for Wells Fargo (no stamps or printing of letters, no envelopes, etc).
Once again we were sadly mistaken. You would have thought we asked for the moon!
Hope spoke to three different people at Wells Fargo, asking about getting email alerts, and repeating the reason why each time. She was finally deposited into a voice mail survey.
We don't know if anyone at Wells Fargo will listen to our issue. We don't know if it's even been played by anyone who can do anything.
Why don't they put a form on their web site that allows us to sign up for daily email alerts? We don't know. That's life in the business banking fast lane.
Both of these things happened to us in the same week. It all struck me as a bit silly--here's one group of people using obnoxious tactics to acquire new customers, and the other group not really paying attention to the customers they already have. Perhaps the first group thinks its information is so valuable we'll claw our way forward, checks in hand, no matter what they say. Maybe the second group figures its too painful for us to move on to another provider.
Why am I telling you all of this? You can guess that I'm pretty miffed at the B2G Institute and the banks involved, but that's not the point.
Having such an eventful week brought a lot of things into sharp relief for me. They certainly got me thinking about our core beliefs. Then I realized that we probably hadn't shared our core beliefs with you, so I decided to do that.
Here they are:
Educate, inform, empower--then sell. Technology should serve the business, not just be a cool conversation piece. Respond to the customer, no matter what, as quickly as you can--but get the whole story! Take the Obnoxious out of marketing and sales.
Basically, I try to do the opposite of a lot of folks in our industry. Everyone knows that software development can be a dicey proposition (70% of all projects fail for one reason or another), and we just refuse to be the kind of firm that abandons a customer if a project gets too sticky.
Do we stand by these core beliefs 100% of the time? I have this theory that standing by core beliefs is like server uptime. You can try to reach 100%, but you'll do just as good if you achieve 99.999999% proficiency. (And perhaps I'm being too hard on Bank of America--maybe one of their core beliefs is to act irrationally and make grief for others.)
That being said, if you find that we've violated a core belief, feel free to contact Hope Doty (our president) at 512-751-9107, or Thomas Myer at 512-750-3835. We will listen, we will act, and we won't be obnoxious.
Thomas Myer is the Top Dog of Triple Dog Dare Media, an Austin TX Web consultancy that helps customers turn their online marketing dreams into reality. You can go to http://www.tripledogs.com to get more tips on online marketing, or become a member of the Lead Generation Center at http://www.tripledogs.com/leads to learn how to maximize your lead generation efforts.
Article Source: http://EzineArticles.com/?expert=Thomas_Myer
Wednesday, July 11, 2007
Sales Strategy - How to Close More "I Want" Sales
Here is a question I recently received from a home electronics and appliance salesperson:
"I sell electronics and appliances at a Sears store. My biggest difficulty is selling to a customer who does not "need" a 42" plasma screen, but just wants one. If someone feels they need a product I am very capable of selling it along with upgrades and accessories. Yet, when someone would just like to have something, the percentage of actual buyers drops off quickly. How can I close more 'I want' sales?"
What is the primary driver for demand for your product or service? Is it need or want ? This is an important question because the sales process can differ substantially based upon which situation you are dealing with.
The "I Need" Sale
When you are pursuing an "I need" sale, the prospect usually has one or more fairly significant problems they need to solve. If you can help the prospect solve his or her problems and provide an attractive return on investment (ROI) , you will probably make the sale.
Here are some typical steps in an "I Need" sales process:
1. Asking questions to determine which problems the prospect is facing
2. Asking questions to determine how each problem impacts the rospect, both professionally and personally . (This engages the prospect's emotions, which is a critical step in motivating an individual to make a buying decision.)
3. Asking questions to help the prospect quantify (associate dollar amounts or percentages and time frames with) the impact of each problem
4. Comparing the price of your product or service to the quantified impact of the prospect's problems
While "want" can certainly be a factor in an "I need" sale, in many cases the most critical factors factor are the significance of the prospect's business problem(s) and ROI. The larger the difference between the quantified impact of a prospect's problems and the investment required to fix the problems, the easier it becomes to close the sale. If the quantified impact is a multiple of the required investment (for example, a quantified impact of millions of dollars versus a required investment of thousands of dollars), the buying decision becomes "a no-brainer".
The "I Want" Sale
The "I want" sale has a completely different dynamic. While it never hurts to ask questions to see if a prospect is trying to solve specific problems, in an "I want" sale the prospect usually doesn't have any compelling problems they are trying to solve . Instead, the prospect is looking for the gratification that comes from owning something they perceive as desirable.
If you decide you are dealing with an "I want" opportunity rather than an "I need" opportunity, emotion and visualization become the key drivers that will help you make the sale.
Here are some typical steps in an "I Want" sales process:
1. Once a prospect tells you they want something, ask them, " WHY do you want it?"
2. Once the prospect explains why he or she wants the particular product or service, help the prospect visualize what it would be like to have it...in glorious detail. Again, use questions to help you accomplish your goal. Here are some sample questions:
How will you use it?
Who is going to use it with you?
How would it feel for you to be able to show this off to your friends, family, or business associates?
How will it fit into your lifestyle ?
3. Once you have helped your prospect build the most vivid possible mental image of what they want, it's time to find out how BADLY they want it . Be detached and maybe even challenge your prospect a little by asking:
"(Prospect's Name), what you're describing really sounds great! But, is it great enough to justify investing (name the price of the product or service)?"
4.If the prospect responds positively, ask:
"Will your wife/significant other agree? How will you explain your purchase to him/her?"
The benefits of this approach are twofold. By helping your prospect visualize what it would be like to own the product or service they want, you engage their emotions . Then, when you ask them how they will justify the purchase to others, you are helping them build a factual case that will help them avoid buyer's remorse (a key factor in product returns).
Conclusion
Whenever you begin working with a new prospect, it is important to determine whether they are being driven by need or want . If an opportunity is being driven by need , ask questions to determine:
1. The problems the prospect would like to solve
2. How the problems impact the prospect, both professionally and personally
3. The quantified impact of the prospect's problems
If the price of your product or service compares favorably with the quantified impact of the prospect's problems, you will be likely to close the sale.
If you determine an opportunity is being driven by want , take a different approach.
1. Ask questions to determine why your prospect wants the product or service. (Answering your questions will engage their emotions .)
2. Help your prospect visualize (in glorious detail) what it would be like to own the product or service.
3. Ask questions to determine how badly the prospect wants the product or service.
4. Ask the prospect how they will justify the purchase to others. (This will help them justify the purchase to themselves and avoid buyer's remorse later on.)
If you are detached and willing to challenge your prospects a little, you will quickly separate the lookers from the buyers and close more "I want" sales!
Copyright 2007 - Alan Rigg
Sales performance expert Alan Rigg is the author of How to Beat the 80/20 Rule in Selling: Why Most Salespeople Don't Perform and What to Do About It. His company, 80/20 Sales Performance, helps business owners, executives, and managers end the frustration of 80/20 sales team performance, where 20% of salespeople produce 80% of sales. For more information and more FREE sales and sales management tips, visit http://www.8020salesperformance.com.
Article Source: http://EzineArticles.com/?expert=Alan_Rigg
"I sell electronics and appliances at a Sears store. My biggest difficulty is selling to a customer who does not "need" a 42" plasma screen, but just wants one. If someone feels they need a product I am very capable of selling it along with upgrades and accessories. Yet, when someone would just like to have something, the percentage of actual buyers drops off quickly. How can I close more 'I want' sales?"
What is the primary driver for demand for your product or service? Is it need or want ? This is an important question because the sales process can differ substantially based upon which situation you are dealing with.
The "I Need" Sale
When you are pursuing an "I need" sale, the prospect usually has one or more fairly significant problems they need to solve. If you can help the prospect solve his or her problems and provide an attractive return on investment (ROI) , you will probably make the sale.
Here are some typical steps in an "I Need" sales process:
1. Asking questions to determine which problems the prospect is facing
2. Asking questions to determine how each problem impacts the rospect, both professionally and personally . (This engages the prospect's emotions, which is a critical step in motivating an individual to make a buying decision.)
3. Asking questions to help the prospect quantify (associate dollar amounts or percentages and time frames with) the impact of each problem
4. Comparing the price of your product or service to the quantified impact of the prospect's problems
While "want" can certainly be a factor in an "I need" sale, in many cases the most critical factors factor are the significance of the prospect's business problem(s) and ROI. The larger the difference between the quantified impact of a prospect's problems and the investment required to fix the problems, the easier it becomes to close the sale. If the quantified impact is a multiple of the required investment (for example, a quantified impact of millions of dollars versus a required investment of thousands of dollars), the buying decision becomes "a no-brainer".
The "I Want" Sale
The "I want" sale has a completely different dynamic. While it never hurts to ask questions to see if a prospect is trying to solve specific problems, in an "I want" sale the prospect usually doesn't have any compelling problems they are trying to solve . Instead, the prospect is looking for the gratification that comes from owning something they perceive as desirable.
If you decide you are dealing with an "I want" opportunity rather than an "I need" opportunity, emotion and visualization become the key drivers that will help you make the sale.
Here are some typical steps in an "I Want" sales process:
1. Once a prospect tells you they want something, ask them, " WHY do you want it?"
2. Once the prospect explains why he or she wants the particular product or service, help the prospect visualize what it would be like to have it...in glorious detail. Again, use questions to help you accomplish your goal. Here are some sample questions:
How will you use it?
Who is going to use it with you?
How would it feel for you to be able to show this off to your friends, family, or business associates?
How will it fit into your lifestyle ?
3. Once you have helped your prospect build the most vivid possible mental image of what they want, it's time to find out how BADLY they want it . Be detached and maybe even challenge your prospect a little by asking:
"(Prospect's Name), what you're describing really sounds great! But, is it great enough to justify investing (name the price of the product or service)?"
4.If the prospect responds positively, ask:
"Will your wife/significant other agree? How will you explain your purchase to him/her?"
The benefits of this approach are twofold. By helping your prospect visualize what it would be like to own the product or service they want, you engage their emotions . Then, when you ask them how they will justify the purchase to others, you are helping them build a factual case that will help them avoid buyer's remorse (a key factor in product returns).
Conclusion
Whenever you begin working with a new prospect, it is important to determine whether they are being driven by need or want . If an opportunity is being driven by need , ask questions to determine:
1. The problems the prospect would like to solve
2. How the problems impact the prospect, both professionally and personally
3. The quantified impact of the prospect's problems
If the price of your product or service compares favorably with the quantified impact of the prospect's problems, you will be likely to close the sale.
If you determine an opportunity is being driven by want , take a different approach.
1. Ask questions to determine why your prospect wants the product or service. (Answering your questions will engage their emotions .)
2. Help your prospect visualize (in glorious detail) what it would be like to own the product or service.
3. Ask questions to determine how badly the prospect wants the product or service.
4. Ask the prospect how they will justify the purchase to others. (This will help them justify the purchase to themselves and avoid buyer's remorse later on.)
If you are detached and willing to challenge your prospects a little, you will quickly separate the lookers from the buyers and close more "I want" sales!
Copyright 2007 - Alan Rigg
Sales performance expert Alan Rigg is the author of How to Beat the 80/20 Rule in Selling: Why Most Salespeople Don't Perform and What to Do About It. His company, 80/20 Sales Performance, helps business owners, executives, and managers end the frustration of 80/20 sales team performance, where 20% of salespeople produce 80% of sales. For more information and more FREE sales and sales management tips, visit http://www.8020salesperformance.com.
Article Source: http://EzineArticles.com/?expert=Alan_Rigg
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