Posted by AndyM on February 24, 2010 under Business Growth | 
Do you dread going into a “sales call?” It takes a certain kind of individual to get excited about such a meeting — to truly relish it. Well, that’s not me. Some days I wish I was “that guy,” but I’m not. Nevertheless, I have (if I do say so myself) a tremendous amount of value to offer, and it takes money to get it from me…somewhere in there a sales conversation HAS to happen, right?
The answer is “yes” and “no.” Yes, a sales conversation takes place, but no — it’s not the dog and pony show that one thinks of as a sales meeting. From my perspective, a typical sales meeting is setup for everyone to fail. The prospective client wants to get as much information as possible about the product or service being offered, while revealing only as much as necessary about their business or problem. They are usually dreading the meeting and just hope they can learn what they need to learn to make a decision without getting pinned down about timing or budget from an aggressive sales person.
The sales person, on the other hand, wants the prospect to reveal as much as possible about their situation so as to suggest the winning combination of products or services to meet their needs and budget. Sounds o.k., right? But they worry about getting caught revealing too much — giving away the answer to the prospect’s problem without getting paid for it.
So what happens? Well, there is great likelihood of an elaborate dance, and only a moderate chance of a highly productive meeting. Here is a suggestion for going against the grain to improve your sales meeting experience, and win more deals. I call it a no-selling sales conversation:
- Let your prospect know in advance that you will not use more than a few minutes of the upcoming meeting to describe your products or services. Instead, you want to use the time as a true consultation to help them better understand the problem they are facing and the options for solving it.
- Send them questions in advance that will help you both understand their circumstance better and ask them to have answers available at your meeting.
- Put them at ease by letting them know that you will not be proposing a next step or recommending a product or service of yours for them to consider purchasing. They will have to ask you for information about how to work with you or buy your product.
When it comes to the day of the meeting, here is a good agenda to follow:
- After some small talk to establish a connection, open with just a few comments about your background, service or product you offer, and some of what your happy clients have experienced.
- After these few minutes, switch gears to ask about your prospect’s current circumstance. Use the questions you sent in advance as your guide. Your prospect will already have let their guard down after realizing that you meant what you said — you indeed would not be torturing them with a typical sales pitch! Be sure to ask clarifying questions about their current challenges — when did the problem start? what solutions have they tried so far?
- After you have a good picture of their current situation, ask them what a completely resolved state would look like. Getting them to envision a future without this problem or limitation will help them realize how much they really want it.
- Next, ask them to think about what stands between their current state and the future they want. You may only be able to offer part of a solution to that problem. Resist the urge to tout your solution. All you really need to accomplish at this point is helping them truly see what needs to be done.
- Next, ask them to describe how important it is to reach the desired state. Is it something they are willing to invest in to accomplish?
- Finally, simply ask them if they would like you to describe how you work with clients that face similar challenges. “No thank you” is a perfectly acceptable answer, but not one you will get often with this sales approach!
Your sales task is not to get your product or service into their hands. Your task is to help them realize the benefits they are seeking — actually reach the desired state they want. By presenting yourself as someone truly interested in helping them get there, you will set yourself apart and have prospects eagerly asking you to share how they could work with you!
Posted by AndyM on February 11, 2010 under Business Growth |
If you are in sales, you have probably heard that statement more times than you would like to remember — “I’ll have to think about it.” When that phrase falls on your ears, you just go ahead and translate it to “no” in your head, don’t you(?) I know I can react that way when it happens. But of course you feel compelled to follow up with that prospect, to at least show that you are organized and diligent. Plus, aren’t people like me always telling you that thorough follow up is essential? Ugh, it feels like a trap at times — damned if you do and damned if you don’t.
Well here is a thought to help you strike the right balance. First say this to yourself — “my time is valuable and my [product or service] is valuable too.” This, of course, assumes that the prospect you are talking with is a good fit for realizing the value you promise. Okay, hold onto that mindset. You’ll need that in the front of your mind as you take this uncomfortable path…
- When you get that reaction — “I’ll have to think about it” – ask your prospect if they need any more information to make a decision. Anything at all. Have you educated them sufficiently about how you could help, or what your product is capable of doing? Have you helped them understand their problem more thoroughly, so as to determine the importance of fixing it?
- If they raise any issues, then there is your task. Fill in any blanks, answer any questions, schedule the next meeting to include the additional players that will participate — all so they are fully armed to make a decision.
- When you’ve reached the end of that process, and they still need time to think about it, let them know that you will not be following up to check on their progress. Because either they are not interested, and they are just trying to be polite, or they truly need some time to ponder their options to come to a conclusion. Either way, your job is done. You will save yourself a whole lot of time worrying, wondering, checking on their progress — and you will avoid becoming a nuisance.
You’re wondering if you just read that right. I recommended that you have a direct conversation with a prospect to let them know that you will not waste your time, nor theirs, with endless follow up and checking. O.k., so they like you for that. No one wants a pushy sales person. Plus, you can tell when they agree to a date for a follow up call, it’s just a game, right? “O.k., give me a try Thursday…ya, that will work. Right, 1:30…perfect…” Come on, admit it. How many times out of 10 do they really want that follow up call…2?
O.k., so we like this strategy because you get to avoid being a nag. So are you going to just clam up and hope for the phone to ring? Of course not!!! The fact that you want them to come to a decision, and the ball is in their court, is out there. You don’t need to remind them — they know you want the sale. Get busy earning it! Use the law of reciprocity! Instead of checking on them, help them accomplish something valuable. Make introductions, shoot over some tips for increasing their business.
You would have spent time checking on them anyway, use the same energy to truly add value. You’ll get the sale and you’ll have a client for life. Check out our last post for more inspiration Sales “Venture Capital” Style.
Next post, how to have that sales conversation so you get the “I’ll have to think about it” reaction less and less…
Posted by AndyM on January 26, 2010 under Business Growth |
Ever feel like a nuisance when you follow up with your prospects? It’s a frustrating place to be, isn’t it. You wish you had something new to say or some compelling reason for them to budge. When you don’t, it often leads to not making the call at all. If you don’t need the work, then it’s fine to leave the issue alone. If you need the business, then you are better off placing your (lame) call because there is always the chance that they fully intend to do business with you, they just need a reminder.
If you want to take your sales results to another level though, consider this notion. You’re not a sales person, you are a venture capitalist. I’m not suggesting that you impersonate a VC in the hopes that you can trick your prospect into talking with you. I mean you would benefit from taking on that philosophy.
A Closer Look
VCs (especially those involved with early-stage businesses) expect the majority of the companies they invest in to either fail completely or fall far short of expectations. Does this sound a little bit like your pipeline of business? If you expect MOST of your prospects to close, then you’ve got wishful thinking or an amazing close process that I need to learn about 
. Sales is based upon the assumption that only a fraction of the opportunities you pursue will succeed – just like the portfolio of companies that a VC selects.
O.k., so we’ve established one similarity between sales people and venture capitalists — each pursues an array of opportunities knowing full-well that only a fraction will result in “success.” Scratch below the surface and we immediately find an important difference between how VCs and sales people operate. VCs invest in the companies in their portfolio. Not just money, but time and resources as well. They join in the fight to make each company succeed. In the end, they have to be shrewd and cut their losses, invest more in the “winners,” etc. But along the way they are busy trying to help each company reach its goals.
How do you think they would do if all they did was call around to each company in their portfolio on a regular basis to ask “have you made us money yet, how is it going?” Pretty weak, right. So (as a sales person or business owner) how helpful are you when you call around to your active prospects and keep asking, “…have you made a decision yet? Have you talked with your boss or gotten approval from your CFO yet?” Pretty weak right.
So remember, I’m talking figuratively here. I’m not proposing that you have to invest hard money in your prospects. But how can you benefit from that perspective? What would a venture capitalist do? Well, he or she would treat the list of active opportunities as a rolling portfolio of “investments.” In each case he would determine what is needed to make them successful. So stop there. Note the *them*.
Here is where sales people can lose sight. Do you want business from your prospects? INVEST in them to help them realize the benefits you know they want. Can you introduce them to someone in your network to help them get further along in their project or important aspect of their business? Can you point out a resource for promoting their business that they may not be familiar with? Can you give them a taste of the service you provide with a focus on delivering tangible benefits?
Reciprocity is a powerful force. Sure giving your prospects a gift or treating them to box seats at the A’s game may be appropriate at times and make them feel indebted to you. But invest your energies into helping them reach their business goals and you will set yourself apart, and create more winners in your “portfolio” in the process!
Posted by AndyM on January 12, 2010 under Business Growth |
Ever heard the phrase “plan your work and work your plan?” Well, creating your plan for the year (see my “Groundhog Day” post from December) is the “plan your work” part. As you know having a plan and living your plan can be two very different things! So this post is devoted to “working your plan.” Keeping it in front of you, having it guide your actions, and celebrating your successes along the way.
Accountability Partners
Have you shared your plan with anyone else? There’s nothing more motivating to actually achieve your goals than telling others who will pay attention, and you will have to face on a regular basis. Tell your spouse, your neighbor, your customers (so long as your goals are consistent with delivering greater value to them!).
However, many of those people either won’t be interested in, or shouldn’t be subjected to the nitty gritty of your progress. A great technique to keep you focused and inspired is to form a partnership with one or more similarly motivated leaders. Call it a mastermind group, an accountability partnership, an “I’ll kick your butt if you kick mine” pact…whatever you like.
The key!
Here’s the key that only recently came to light for me. Your team, your partners, are not there to beat you up over missing your goals or falling behind. Stuff happens to get in your way. Your group is there to hold you accountable to tracking your own progress and focusing on what YOU said was important. I am part of a great group of leaders that meet twice per month. We hold each other accountable for attending our meetings, share are successes and setbacks, and help one another stay focused and productive.
So your accountability team is not there to ridicule you for falling down; they’re there to remind you to get back up. The fact that you have associated them with how much you will pay attention to your commitments is what makes it work.
Want to do a better job “working your plan?” Find a couple of like-minded, success-oriented friends or colleagues and commit to sharing your goals, developing a list of daily/weekly actions that will get your closer to your goals, and report to one another regularly.
Posted by AndyM on December 15, 2009 under Business Growth |
If you are like many business owners, this time of year is a mixed bag of regrets over what you didn’t accomplish during 2009 and renewed energy to make 2010 your best year ever. In your dark moments, do you feel like Bill Murray in Groundhog Day…doomed to live the same day, with the same issues and challenges, over and over?
In Greek mythology Sisyphus was doomed to push the rock up the hill, only to have it roll to the bottom over and over again. Is that you? or do you envision yourself the hero, winning battles and conquering all challenges that come before you?
Maybe this is a little out there. Let’s bring it back to the here and now. Go through this little exercise:
- Pull out your new-years-resolution-2009-business-action-plan-list thingy that you created in January 2009. Don’t have one? Proceed to step 3.
- Pat yourself on the back for having a list — we need to celebrate whenever we can! Now, look at the list. How many of the items would still qualify as your top priorities in 2010? 100%? Stop patting yourself on the back. Making a list then completely ignoring it is just as bad as not having one (sorry for making you feel good for a moment, then ripping it away). Proceed to step 3. “Accomplish” 50% of what you set out to do? Excellent. Proceed to step 3 anyway.
- Talk to your customers. It doesn’t matter how well things are going, it is important to be paranoid. Why do they buy from you? What worries or frustrates them? What has been the most helpful, exciting thing they spent money on in 2009 (whether or not it has anything to do with what you provide) and why was it helpful or exciting? Year end is a great time to step back and check in.
- Don’t make your action list for 2010 just yet. Start at 50,000 feet and work your way down. A great technique, that won’t overwhelm you, is to put together a One Page Business Plan.
- When you’ve defined the “what” — get help to make it happen. Commit to executing in 2010 so your list in 2011 is a continuation or expansion on your plans for 2010, not a repeat performance. How can you do that? A great way to start is to read Getting Things Done by David Allen.
So what do you do now? Your “next action” (you’ll get why that is in quotes when you read David’s book) is simply to read up on the One Page Plan (the link above) then buy the book, or check it out at the library. Easy right? 2010 is YOUR opportunity to break out of the Groundhog Day curse!
Posted by AndyM on December 10, 2009 under Business Growth |
“If I had more time, I would have written a shorter letter” is a quotation from T.S. Eliot. I agree that it is hard to boil down big ideas and concepts into brief statements. But the process is so valuable. Not only that, the output is exponentially more valuable the shorter it gets.
You can’t tack a 3″ binder to the company bulletin board, or review it with your team in your monthly meetings. That would be about as feasible as lugging your desktop computer on to BART just so you could keep an eye on email during your 45 minute commute. You wouldn’t do that — that’s what PDAs are for.
Having a concise way to articulate your business vision, mission, goals and plans brings your strategy into the everyday work life of you and your team. How cool is that? What good is documenting your strategy and translating it into plans if it only gets looked at once a year?
I have become a huge fan of the One Page Business Plan. While I am not affiliated with the organziation, there are good examples to work from on their web site [Sample Plans].
Posted by AndyM on November 30, 2009 under Business Growth |
Isn’t funny that so many powerful tools boil down to just a few simple concepts. I am constantly reading books on business, leadership, self-improvement and the like. At least for me, the most profound insights are the ones that make you go “duh — why didn’t I think of that?”
It may sound backwards, but I submit that it is relatively EASY to pick something — a topic — and “discover” something unique by drilling down into incredible detail. Decide to study some particular kind of insect and spend all of your life on that subject, and I would guess you have a good chance of finding SOMETHING no one else has found. A unique species, recognition of a certain thing existing species do, catching some never-before-seen event on tape, SOMETHING.
I am not belittling people who operate in the realm of details by any means. But I submit that it is HARDER to find or create something unique, powerful, and useful on a BROAD scale. The idea below is one that I don’t think I can take full credit for, so I will err on the side of precaution (and not tout it to the world as “mine”). I am not sure where the idea came from, but I would bet it is the amalgamation of tips I’ve read and a little of my own secret sauce.
A Simple, Yet Powerful, Way to Stay “On Track”
One of the ways I help my clients be more successful is to act as an “accountability partner.” It is not just a matter of being a nag…that’s no fun for anyone. It is a function of helping my clients devote more time and attention on the actions that will move them toward their business goals, and less time and attention on the other stuff. Here is a tip for doing just that:
- On a monthly basis, remind yourself of what the “end game” of any of your big projects is. What will being “done” look like? You may find that you’ve begun working on stuff that is nowhere in the final picture, so is a waste of time. I call this the “where are we going?” question.
- After you refresh your memory about the end game, ask yourself another question — why are we shooting for this goal? Will it help you provide better service to your existing clients? reach a new market segment with your message? improve employee morale? Why are you spending time, money and energy on this project?
- With refreshed clarity on the goal and the purpose it will serve you, your clients, or employees, it’s time to look at your actions. What do you need to do now to take the next step toward the end goal? In the words of one of my favorite authors, David Allen, “what is the next action?”
Simple stuff I realize, but regular application of such simple techniques will take you and your business to places you never thought possible. Where are we going, why are we shooting for this goal, and what is the next action.
Posted by AndyM on November 5, 2009 under Business Growth |
Why is this the “last” step? Well, it is the place in your marketing where you are most likely writing checks, PLUS you have to wait the longest to realize the results. It is best to maximize the benefit of generating new leads by having your “customer-maximizing” house in order.
I’ve put these two topics together because generating leads and converting them are inextricably tied together — one step naturally leads to the next.
Components of your marketing strategy:
- A well-defined target: geographics (where they are), demographics (who they are), and psychographics (why the buy — the emotional appeals that relate to the benefit you can provide)
- Your Unique Comparative Advantage: a good description of the problem you solve or benefit you provide and how/why your product or service is uniquely capable of delivering on the solution your target audience needs (we have a formula for developing a powerful UCA)
- Contact methods: the “portfolio” of media you use to contact those in your target audience at the right time, given the benefit you deliver
- The message: an attention-getting and compelling message that exposes the pain — the deficit your prospect is experiencing because they lack your solution
- The offer: the natural, “no-brainer” step toward a solution for your client that you make easily available to them by simply contacting you.
- The follow-through: your multi-step plan to capture their contact information and nurture the initial interest into a burning desire to meet with you, test your product, order it, agree to your pilot program, etc.
Posted by AndyM on October 21, 2009 under Business Growth |
I get some “pushback” on this point — the idea that setting your marketing strategy should come a whole lot earlier than “step 3.” Some of it is symantics — of course establishing a Vision for your business 1 year and 5 years down the road is a fundamental step in refining your existing business strategy. As for sliding step 2 “Maximizing the Current” into the mix instead of continuing from Vision on to flesh out an overall marketing strategy, think of it this way.
If you decided that you wanted to become a world-class, competitive athlete within 5 years, wouldn’t it be wise to start eating better and exercising right away, even if you hadn’t picked a sport yet?
The point of step 2 “Maximizing the Current” is to get in shape. No matter what you decide about your target market going forward, what media mix you will be using, and how you will compel your prospects to want to contact you, there is a sale that is about to happen in your business. Techniques I use in step 2 will help you get more profit from it. You have customers surrounded by potential referrals, but they don’t ever think of you. Techniques I use in step 2 will draw out those referrals. Use the increase in profits that merely “getting in shape” will provide to fuel real lead generation…
But you don’t want to be random about generating new business. Step 3 = Set the Strategy. With your customer-maximizing house in order, it’s time to improve the effectiveness of how you go out and get new ones.
Components of your marketing strategy:
- A well-defined target: geographics (where they are), demographics (who they are), and psychographics (why the buy — the emotional appeals that relate to the benefit you can provide). Analysis of your customer database will help you — who are the most profitable customers you already have?
- Your Unique Comparative Advantage: a good description of the problem you solve or benefit you provide and how/why your product or service is uniquely capable of delivering on the solution your target audience needs (we have a formula for developing a powerful UCA)
- Contact methods: the “portfolio” of media you use to contact those in your target audience at the right time, given the benefit you deliver
- The message: an attention-getting and compelling message that exposes the pain — the deficit your prospect is experiencing because they lack your solution
- The offer: the natural, “no-brainer” step toward a solution for your client that you make easily available to them by simply contacting you.
- The follow-through: your multi-step plan to capture their contact information and nurture the initial interest into a burning desire to meet with you, test your product, order it, agree to your pilot program, etc.
Next week — Generate and Convert. Putting that strategy into practice and monitoring, measuring, and improving it!
Posted by AndyM on October 16, 2009 under Business Growth |
Often times a conversation with a business owner will start with this question – “can you help me get more leads?” The answer (of course!) is “YES,” but in following my own medicine, I never respond with an answer to that question. Why? Because I know that is not the real question that they want answered. It is not the need-behind-the-need — the true benefit they are seeking.
They, in fact, don’t really want more leads. Just like when your gas tank is empty, you may first think that you “want” more gas. But who “wants” gas? It sure doesn’t taste good, and I’ve never met anyone who liked to bathe in it. You don’t “want” gas, you “want” to get from location A to location B. There are many ways to get there – you could ride your bike, walk, get a ride from a friend, or think twice about your plan to go from A to B in the first place. Could you accomplish what you “want” with a phone call?
So back to our business owner. Trust me, they don’t “want” more leads. They want what they believe the leads will bring them — more revenue to pay/retain top staff, profit to bring home to their families, less stress, etc.
When I get the “can you help me get more leads” question, I usually respond with a few questions of my own:
- What are you doing to keep your current customers happy and returning to buy from you again and again?
- Do you have your current and past customers, as well as prospects, organized and segmented in a database so you know how to contact them, what they purchased, how often the purchase from you, when they last purchased and how much they spent?
- Do you have a system in place for keeping in touch with your customers to let them know about new products, improvements, changes or additions that might benefit them? How often do you contact them? When was the last time and why?
- What about referrals…do you have a proactive referral-generating system in place that produces measurable and predictable results time after time?
- When the next sale of your product or service is taking place, what steps do you have in your close process to make it attractive – downright compelling – for them to buy more or add different products and services to the order or contract?
- After that transaction, what are you doing to make it attractive for that customer to “come back” sooner than later? Is it possible to subscribe them to an ongoing service?
I think you get the point. Step 2 of the 4 Steps to a More Successful Business is “Maximize the Current.” Get the most from your existing customer relationships and the business that is happening as you speak. Five of the Seven Levers to Profit Growth are available to you in this step! Make use of them!
- Increase the number of transactions: present your customers with an offer to do business with you again, create a loyalty program, entice them to get a subscription.
- Increase the average transaction value: up-sell and cross-sell. It helps you customers and you.
- Increase your profit margin: as your business grows, you likely have more leverage with suppliers, may be buying in higher quantities, and may otherwise be able to realize the benefits of scale.
- Generate more referrals from customers: develop systematic ways to encourage customers to refer business to you – happily.
- Extend customer buying lifetime: for one, keep in touch. Surveys show that 85% of people who switch their purchasing allegiance due so simply because they felt their previous provider didn’t value their business!
Next week – step back, take a breath, and Set Your Marketing Strategy!
