 Track Selling Times - December, 2000
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Track Selling Times
The Voice of the Sales Profession
Issue No.133
December 1, 2000
Published by Max Sacks International,
Home of 100% Guaranteed World Class Sales Training
Developers of the Track Selling System™.
Author/Editor: Roy Chitwood, President, MSI
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"Unique selling proposition answers question:
'Why should I buy from you?'"
by Roy E. Chitwood, CSP, CSE |
"Why should I buy from you?" is one of the most important, yet unasked and unanswered questions the buyer has on her mind, and rightfully so. And many times with the inherent at-odds relationship between buyer and seller, this question is often a deal determiner and the prospect must clearly see the difference between similar offerings. In our training programs, salespeople regularly cite this question as one of their biggest hurdles.
We teach salespeople to resist their temptations to list the obvious (including price, quality, client list or company history) because they've become givens. If a salesperson's offering or company is short on any, getting sales will be a continuous struggle. We recommend that salespeople replace this temptation and answer with their own unique selling proposition (USP). USP's differentiate a company in more breadth and depth than price, quality, etc., and are highly specific and unique making them powerful selling tools.
The following are a few of the most common USP's. I encourage you to consider developing those relevant to your company, offering and using them regularly.
- Knowing your customers' customers. The more vertical understanding you have of your clients business, the more you will sell. I recommend that you take a 'big picture' approach to servicing your clients. Rather than narrowly focussing on only meeting your clients needs, broaden your outlook to include their business goals and objectives. If you can align your product or service with your clients overall business strategy, it will become more valuable and may differ greatly from solely a needs-focussed recommendation.
- Prospect generation. By this I mean prospect/provider matchmaking. At every opportunity, move beyond only being a product or service provider by matching your client's needs with products and services offered by your other clients. If one of your clients is a specialized database software developer and another one of your clients has mentioned the problems she's having using her old, unstable database, why not introduce them? You'll be providing a valuable service to both and will gain more of their trust and confidence, further solidifying your position.
- Free training and support. A common complaint among many buyers is not understanding how to fully use a product or service they've purchased or inherited. Many salespeople fail to ask a client if she wants to be trained to use what she's purchased. This is perplexing and is not good business. Make it a practice to follow up with a client in person after she's received her order and run her through its use. Make it an informal, purely informational meeting and stay until she is completely comfortable using it. This will gain her respect and demonstrate that you're committed to meeting her needs, not just to earning a commission.
- ROI proof through case studies. ROI is the reason people buy and it must be proved. Third party endorsements are a good way to prove ROI, with case studies being the most effective. Case studies outline a specific challenge one your client's was facing, shows how your product or service helped the client meet the challenge and quantifies the result (ROI). Their third party status in combination with their real world application makes them a prized resource that should be used strategically, but liberally.
- Value adding through your personal knowledge, experience and expertise. This is the most important, unique and effective USP you have: you! The lines between price, quality and performance is becoming so blurred that your personal expertise must be used to differentiate yourself from your competitors. Position yourself as an expert, a consultant - a partner - and you'll prove too valuable to lose. As Tom Peters states, "Be distinct or extinct."
Tough competition, shrinking budgets and unclear needs are among a few of the many selling obstacles you face. Being able to share you and your company's unique USP will help you more easily overcome them, paving the road to more sales.
Integrity Pays:
"When the right solution isn't your solution."
by Roger McClung
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Roger McClung is a training and development professional with a broad base of experience in product, management, systems, and software training. He is currently Vice President of Consulting Services at Redmond, Wash., based BreakAway Consulting which helps companies achieve their productivity and profit goals through leadership training and delivery of custom training programs. For more information please visit www.breakawayconsult.com.
In the recent past we were working with a Fortune 100 company to help design a project that would increase productivity. We had several meetings including a comprehensive phone interview and felt we had a good understanding of their needs. Accordingly, we scheduled an in person meeting to perform more qualification and then recommend our solution.
However, upon meeting with the prospect, we received a much clearer picture of what they wanted. They had a highly focused and narrow view and were having difficulty seeing our broader recommendation. I'm a big believer in the "under promise, over deliver" approach to sales and customer service. And in this situation, what the prospect wanted wasn't necessarily what they needed. Although we could have easily solved their problem, however, our conversation revealed we weren't the best solution for this specific challenge. We therefore referred them to another vendor whose solution was a tighter fit.
The result was favorable in two regards. First, it helped our positioning with our competitor and opened lines of communication for future referrals. And second, it opened the door to ongoing communication with this prospect. In fact, I'm still in frequent contact with this company and am told that when the need arises, which it inevitably will with their growth history, they'll contract for our services.
I think the most important lesson from this experience is the importance of always considering your solutions from the prospect's perspective. It's imperative that you learn to not only think, but to feel what the prospect is feeling. Mentally picture yourself in their shoes, in their circumstances, and ask yourself, "Would I really buy this solution?" This is an excellent sales integrity test. If you seek hard for the truth, your answer will determine the next step.
World Class Sales Management:
"Lets get rid of management."
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The reality of today's marketplace is change or fail. The major reason that change is not working is because managers are managing in a period of change the same way they managed before, and the old way doesn't work. What many companies are doing today is "downsizing" and calling it "realignment" (re-engineering is now passe). Companies are getting rid of massive numbers of people; and the people who are left are working twice as hard, twice as long while top management is reaping the financial rewards of improved profitability.
Change - in the form of realignment or restructuring - cannot be managed. Only leaders can effectively lead a department, a division or a corporation through the journey of change. Leaders have a mission, managers have a career.
Let's examine the seven myths of change:
- Change starts at the top.
Many of the greatest failures of change started at the top: Westinghouse, Whirlpool, AT&T, IBM, Mobile, Texaco, Johnson & Johnson and many others. A study by the Academy of Management of Fortune 100 companies that downsized during the time frame of 1983 - 1995 showed 18% of the companies actually grew in volume; 25% declined in profitability and 44% went on to additional merger, acquisitions or financial ruin.
- Starting with a clean slate.
Management claims to their employees that "Our people are our most important assets," yet this is often a total lie. They treat people as any other raw material. This leads to the inevitable downsizing, elimination of jobs and destruction of any degree of loyalty, trust or confidence in the future.
- Develop the vision and they will come.
Framed mission statements hanging on a wall don't create a vision. Leaders need to get commitment to change to handle specific business problems and develop a shared vision of how to organize and lead the change necessary to solve the business problem. Every employee needs to be involved in the change process as Raymond Smith, CEO of Bell Atlantic said, "When we created our vision, we had to include 22,000 people."
- Getting everyone committed.
A major misconception about change is that everyone in the organization from the top CEO to the assembly line worker must be involved in the change. In companies where we see change taking place, it usually starts in small units, departments, divisions, plants, etc., many times far removed from corporate headquarters. These units invariably are run by leaders who carry the title of supervisor, manager, divisional manager, or general manager. In most cases it is not CEO. These individuals invariably do not focus on culture changes, organizational or structure changes. They create change to solve concrete business problems. They focus their work and energy on the work itself, not on the culture or the buzzword of the week.
- Total commitment.
The CEO and her executive staff go to some mountain top retreat led by some change guru who focuses the management on reexamining their business, their culture and on developing a vision and mission statement. The philosophy is, "We're going to fix them." Believing that knowledge and attitude of individuals will change behavior, the Human Resource department rolls out program after program after program to educate the employees why change is necessary and to give them additional knowledge. They have the process backwards. The best way to change behavior is to put people into a new organizational structure with new rules, responsibilities and relationships.
- Train our way to change.
It's change you want, not training. One of the first things that needs to occur is take the training responsibility out of the hands of the Human Resource department and give it back to the leaders where it belongs. The company's greatest asset is not its people. Any company's greatest asset is the undeveloped potential of its people. The most important aspect of any company's desire to change is its people. According to a recent study by Harvard University and Warden Business Schools, the surest way to profits and productivity is to treat employees as assets to be developed.
- Must manage change.
Managers don't make change happen, leaders make change happen. Under the old management method, management makes the decision and then communicates that decision down through the ranks. The goal is to build awareness and buy-in so employees will implement the decision. At the same time, management makes any necessary changes in organizational design required by the decision. Under this style of management, people are told about the decision and that's it.
Today it's different. Changes such as realignment, total quality, rapid improvement or becoming a lifelong learning organization requires everyone to change their skills, behavior and working relationships. Such changes are behaviorally driven and the old methods fail to change anyone's behavior.
Managers of the past were watchdogs and police officers. Leaders of the future will be nurturers and teachers and will be judged on how well they take care of their people. Are you a manager or a leader? Your answer to this one question will tell you: Are your people working for you, or are you working for your people?
Focus on the Professional -
"Ed Wilder"
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Mr. Ed Wilder is president of Auto Consultants Northwest (ACNW). With offices in Seattle and Portland, the independent auto buying and leasing company personalizes the buying process and provides a refreshing alternative to traditional vehicle buying methods. For more information please visit www.acnw.com or call 800-635-9717
What prompted you to start ACNW in 1991?
My partner and I loved the car business but thought there had to be a better way to buy a car minus the headaches, hassles and games commonly experienced. So we created a one-stop shop consumers could use to research new and used vehicles, leasing and buying from one unbiased resource.
Are the stigmas correct for car salespeople?
You read a lot about how the industry is changing yet I still hear the same complaints from our customers. In fact, that's often why they call us. They want honest, up front information, a fair price, and truly personal service. It's my understanding that these are still commonly lacking at traditional dealerships.
What do your customers say are the benefits of your service?
One word: Painless. Without question, this is the top answer when we ask this question. We're almost always told that we've made the car buying process painless. Plus we offer very competitive pricing along with personalized service.
How has the Track Selling System complimented what you're doing?
The most important takeaway from the program is that it's giving my salespeople and me a roadmap to follow and holds us to an expectation. Prior to completing the workshop, we were quite successful so obviously we were doing many things right. However, we weren't conscious of what those things were and we weren't following an orderly process. For example, the Agreement on Need step is awesome and reveals whether you move forward or perform more qualification. Prior to learning this, I focussed on building rapport, asking questions, and then unwittingly moving directly to Fill the Need. This practice often wasted time and lost sales because I assumed a solution but failed to verify it with the prospect. This step saves much time and keeps the sale on course.
Book Review -
Tuesdays with Morrie: An Old Man, a Young Man and Life's Greatest Lesson
by Mitch Albom
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As we enter the holiday season, I believe that regardless of your religious or spiritual beliefs, it's important that you consider what matters most in your life. In Tuesdays with Morrie, award-winning sports columnist turned best selling author Mitch Albom compels you to discover your own meaning.
Albom recounts how by sheer luck he's reunited with his former college professor and mentor, Morrie Schwartz, with whom he has lost contact with for nearly two decades while relentlessly climbing his career ladder. What was intended to be a final visit to his dying mentor turns into 14 visits on Tuesday's which make up Mitch's last 'class' which he titles: the meaning of life.
While the book is based upon the death, it warmly, passionately, and at times, tearfully, celebrates life. Albom's retelling of Morrie's teachings and his personal lessons learned force you to question the sanity and humanity of a life or career focussed solely on material and monetary gain while simultaneously revealing the importance of love, family, spirit, friendship and understanding. Isn't that what the holidays are about?
If you or anyone close to you hasn't read Tuesdays with Morrie, I urge you to do so. It's a short, engaging read and its meaning can help direct your life. For those of you who have read it, read it again as it can still do the same.
| Ask Roy
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Craig Donahoe of Detroit asks:
"Considering the rapid advancement of technology, in your opinion, what are the prospects of selling as a career in the next decade and beyond?"
Roy's Answer:
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This is a terrific question and one that has been widely debated over the past five years. It was commonly predicted by experts that upon entering the new millennium, or soon thereafter, the need for quality salespeople would be dramatically reduced. Such evolutions as the Internet, wireless devices, PDAs, and powerful database and procurement systems would automate the selling process leading to faster delivery times and lower costs. This was nice in a vacuum yet I disagreed. It was and still is my belief that this theory is fundamentally flawed for a single reason: it devalues and possibly eliminates the importance of human interaction and consultation.
Disagree? Just consider the dot com implosion over the past six months or the dramatic steps brick and mortar retailers are taking to personalize their service. The heavy investments these companies have made creating online stores in the anticipation of massive shift from in person buying to online buying have typically generated under whelming returns.
An uncertainty of online purchasing combined with in person service is prompting consumers to use available technologies to research products and services yet driving them into physical stores to make purchases. In fact, Sears, Barnes & Noble, and REI are now allowing customers to return products purchased online to any store.
So, while technology can eliminate many non-productive sales positions (and non-productive salespeople), it will never eliminate the need for the high earners, as predicted. Remember that in selling top salespeople earn big money because they sell a lot. They are the only people in a company that create rather than cost revenue. That's why it's one of the few professions with unlimited earning potential and has a tremendous future outlook.
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2. What else would you like to see included?
3. If you have sales questions for Roy, or know of a salesperson, sales manager or integrity story that should be featured in Track Selling Times, mail it to:
The Editor, Track Selling Times
c/o Max Sacks International
2442 NW Market Street #409
Seattle
WA 98107
Tel: (206) 706-4119 Fax: (206) 706-5359
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