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Price and Substance of Sales Objections

Posted by Dennis Connelly on Tue, Jul 08, 2014 @ 13:07 PM

Objections 070814 175pxWe all know the prospect who waits to the last minute and then tells you everything is fine except for the price. “What can you do about the price?” or “If you can match these guys’ price, the deal is yours.” or “The committee is prepared to approve the start date with you, but we need to get to our budgeted number. If you do that, we're good to go.”

When coaching clients, I like to ask them questions when they have prospects who seem to be changing the game at home plate. Here are some examples:

  • What was the return on investment (ROI) at your quoted price? 
  • What was their compelling reason to work with you? 
  • Before you gave them your proposal, when you asked them if they could spend this much money with you to solve all their problems and/or realize all these gains, what did they say?

Is price really the problem? Or does the problem lie in the execution of the sales process? We shouldn’t be in a position where nothing matters at the end but price. If we find ourselves there anyway, then we must not have uncovered a good enough reason to buy, or there is not enough urgency, or we haven’t differentiated ourselves, or we don't understand the decision process, criteria, and timeline, or all of the above. In other words, we weren’t following an effective sales process. Or they’re bluffing!

Recently, I was coaching a client who faced another problem. His prospect told him at the last minute, “Your product needs to have this one other feature,” adding, “That would really make it work for us, and we'd be prepared to say 'yes' now.”

I asked my client the following questions:

  • Were they already getting this feature from the incumbent? No
  • Are there other features you're providing that were important to them and that they couldn’t get anywhere else? Yes
  • And without this ‘important’ feature that they 'really need,' do they have a compelling reason to buy from you? 
  • Can they spend the money? 
  • Do they believe you understand their issues and have the capability to solve them? 
  • Do you understand the entire decision making structure?” 
  • Etc.

In short, doesn’t this look a lot like the price issue?

At the home stretch, your prospects have one last chance to exercise their leverage before committing to the deal. At this moment, they believe they can extract stuff from you – a better price or more features. Why not try, after all? But if you have followed the sales process correctly, then you know where your leverage really is, and you know whether or not they are bluffing.

The trouble is that they might really believe that they need these issues solved at the last minute. They need that price lower. They want the additional features. It would be just great! And even if they are bluffing, it might not be conscious. Such a devilish place to be, no?

Moving past these objections means acknowledging their concerns and requests, and then reverting back to what's really important. "I understand getting to your budgeted number is really important to you. Can I ask you a few questions about what we talked about in our first meeting?" If you do this well, they might even forget they brought it up.

Following the correct sales process for your business is critical to avoiding this endgame. Does your team have a process that they follow religiously? Do your sales managers know how to effectively coach to your process? Do they hold their people accountable to the sales process? Are your sales people getting one incremental step better every day? Maybe it’s time to find out.

evaluation_checklist_cta

 

If you would to see Dave Kurlan talk about the value of an evaluation, click on the link below.

evals

 

If you would like to send one or more of your sales managers to a two-day Sales Leadership Intensive, or would like to learn more about it, click on the following link.

Sales Leadership Intensive

 

Image Credit: Copyright: icetray / 123RF Stock Photo

Topics: sales process, sales leadership, Salesforce, kurlan, salesforce evaluation, objections, sales objections, handling objections

Sales Process Gone Wrong or A Negotiation Tactic?

Posted by Dennis Connelly on Tue, Jun 17, 2014 @ 12:06 PM

28604675 s Negotiating TimeToCloseThere are critical moments when many deals fall apart. It’s after you’ve gone through the whole sales process, have a proposal on the table, believe you have the right solution, and believe your prospect knows it. Suddenly, they throw a curve ball. “This is twice what we want to spend. Money’s tight this year and we just can’t do it at this price.” You scratch your head, “Where did I go wrong?” Failure to proceed, at this critical moment, the right way is likely to kill this deal.

Many sales professionals reading the above might be thinking, “You failed to find the budget. You didn’t do a trial close. Your ROI (return on investment) wasn’t large enough,” or some variation of, “You screwed up, silly. This is your fault.” But you’d be right…and wrong. You're right that it might have been possible to avoid this in the first place. But it might be that there something else going on.

Then you might be thinking, “Well, they just don’t like you. They want to bow out gracefully. You missed an important part of their buying process or overlooked key internal politics.” All very possible indeed, and you might not find that out until this deal is either won or lost – until the last phone call is made.

These are the moments where laziness and complacency lose. This is the moment when you need to look carefully at your schedule and figure out what you can move, because this is time sensitive. If you’re confident you've done everything right, then you are not dealing with a normal objection; you are dealing with a negotiator, and they just signaled that it’s time to close the deal.

It’s important to learn and understand the distinction between an objection and its close cousin, a negotiation. It is precisely your understanding of the mechanics of the sales process that will guide you. Executed properly, one must have faith in the process. Run through the checklist. Figure out if you missed anything. Read the cues from your prospect. Where are they coming from? What’s in their tone?

I’ve worked with a client recently who heard the phrase, “You’re really not treating me fairly, and I don’t like it. Who at your company put you up to this? Was it the president?” And they went on to close that deal. How?

An objection is a deflection. Treat it like an opinion. Don’t get caught up in it or there will be no end to them. As Dave Kurlan points out, an objection often comes when you are too close to closing the deal for comfort, in the mind of the prospect. Read his excellent article on the subject here

Objections throw you off track, put you on the defensive, weaken your position, and are meant to delay the process. In a negotiation, your prospect wants to do all of that and extract something from you.

Let’s get back to our example, “You’re not treating me fairly.” Inexperience or the tendency to get emotionally involved might lead you to defend yourself. “We don’t mis-treat people around here.” Big mistake. And this is why deals at this stage are often lost. Don’t get defensive. Don’t defend. Don’t convince them that they are wrong about you. The essence of getting too emotionally involved is getting yourself caught up in what you are going to say. Read another article by Dave Kurlan about getting emotionally involved, here. It’s when the chatter inside your head drowns out your prospect. You cannot properly hear them, and you lose control of the process.

Here is just one example of a response that might work better. “I’m sorry you feel that way. This is the solution that will work for you. Anything short won’t work and you’ll be wasting money.” Treat the harsh words like an objection and acknowledge their opinion. As soon as you feel accused, you’ve lost. Stay in control. If you’re right about this deal, then the response above does two things: 1) You avoided a battle you can only lose; and 2) You remained steadfast and gave them a reason to say ‘yes.’

There is a delicate moment here. If you even start down the road of defending the accusation, you’ve created a new environment where that concern must now be resolved before you can work together. By letting it run off your back and moving on, it might not need to be further addressed.

In these final moments of negotiation, it is important to stay on top of it. They’ve given you an indication that this deal will get done in the next couple of days by lobbing out something provocative. It is the time to focus and drive through a final deal. In this example, an agreement was reached the next day for a number close to the original proposal.

 

Can your people do this?

Can they recognize a negotiation for what it is?

Can they consistently “handle” objections properly?

Can they stay emotionally uninvolved and maintain control?

Will they roll up their sleeves and finish the deal?

Are they too complacent?

Do they have ‘need for approval’ getting in their way?

Do they have the necessary closing skills?

Do you have the right sales people?

How effectively does sales management coach through this process?

 

A sales force evaluation would answer these questions among many others. And to learn more about sales force selection, download this white paper. If you believe your sales force could or should be performing significantly better than they are, and want to chat about that, send me an email.

 

Photo Credit: Copyright alphaspirit / 123RF Stock Photo

Topics: Emotionally Involved, Hidden Weaknesses, sales management, sales leadership, sales evaluation, negotiation, screwed

Sales Management - The Most Important Job in the Company

Posted by Dennis Connelly on Tue, Jun 10, 2014 @ 11:06 AM

12059360 s SalesManagement 061014When we see sales organizations move from a state of underperformance to a state of high growth, we’re consistently reminded that the sales manager has the most important job in the company.  If you’re a CEO, sales director, sales VP, and/or otherwise lead a team of sales managers, you understand the outsized influence this group plays on the success of their teams and the company as a whole, dwarfing the role of individual salespeople, and even sales superstars.

Yes, you need a great sales team, full of A players. Yes, you need great marketing to shout from the highest perch about your products and services. Yes, you need great organizational leadership. And yes, you need a good reason for anyone to do business with you. But it doesn’t mean a whole lot without sales. And sales will flourish or wither on the skills and mastery of sales management.

So what’s the single most important job of the sales manager? Coaching. And coaching should account for about half of your managers’ time. Yep. Half. The sales manager is not an administrative function. Watch how a basketball coach paces on the sidelines, calling out instructions or screaming at the refs, watching every player’s every move, gauging the resistance posed by the competition, and redirecting the team. That’s like sales management. It’s in the moment, real time, hand-to-hand, and total commitment.

I know I’ll get pushback from the folks who spend most of their time on business and product strategy, organization and reorganization, planning, managing compensation, internal company issues, dealing with crises, and direct selling. Some or all of those tasks are vital to your success and all are good functions of sales management, just like watching the tapes and devising a training program for your basketball players. Keep doing them, but make coaching a larger part of your day.

The coach watches how the job is getting done and provides expert advice on how to get even better. The coach turns a player with promise into a real contributor. A great coach can turn a star into a superstar. How many big stars have you seen fall off the radar after they move to a new team? How many salespeople have you hired that were superstars elsewhere but fell flat at your company. But for a precious few elite self-winding sales machines, often, their stardom was a function of the organization and the attention they received from management. Read Dave Kurlan's terrific article on the keys to making significant improvements in your team.

Sales Managers must view coaching as their primary function. But let’s break down what that means by first talking about what coaching is not:

Coaching is not…

  1. A pipeline review
  2. The daily plan
  3. Yesterday’s rundown of prospecting activity
  4. Tips on presentation skills
  5. “How’s it going with the Jones deal?”

Rather, these are all opportunities to advise, motivate, and hold people accountable – very important. And while one can argue that coaching is part of the discussion, they are not really getting at the heart of high-impact coaching.  Managers often do a good job of discussing opportunities as they unfold but it is often ad hoc and momentary – good enough to provide direction, but not deep enough to change behavior. It looks a lot like coaching, but it’s not enough. 

Coaching is…

  1. A structured, regularly-planned, one-on-one conversation
  2. A deep dive into a specific opportunity
  3. A careful strategizing of an upcoming opportunity
  4. Finding where the process broke down
  5. What went right; what went wrong
  6. How to do it better the next time
  7. How to go back and undo a mistake
  8. Elevating your salesperson’s game

Similarly, coaching sales managers means ensuring that these steps are taken, that administrative functions are minimized to what is truly important, and that a culture of coaching is fostered.

One measure of a good salesperson is how well they find and close opportunities. One measure of a good sales manager is how well they develop their team. To carry this one step further in the organization, a sales VP should be concerned with the development of each salesperson reporting to the manager.  This, and the corresponding growth of the organization, is the measure of the sales manager’s success. The manager makes sure he or she has the right team and coaches their people to close more business. The VP makes sure he or she has the right managers and coaches them to ensure they are developing their team.

A culture of coaching and constant day-to-day improvement is the secret to continual record-setting growth. The other functions of the sales organization support this activity. Does your sales organization have the skills, DNA, aptitudes, will, and commitment to get to this level? Maybe it's time for a sales force evaluation. The quality, ability, and willingness of your sales team to sell depends on the activities of your sales managers. If you believe you you’re not hitting your full potential, look carefully at this position, and ask if your organization regards it with the importance it deserves as the most important job in the company.

 

Phote Credit and Copyright: neilld / 123RF Stock Photo

Topics: sales, sales management, sales leadership, assessment, evaluation, sales VP, world class, sales conversation

The Overlooked Conversation Between Sales Managers and Sales People

Posted by Dennis Connelly on Wed, Jan 08, 2014 @ 11:01 AM

coaching,sales management,assessments,sales leadership,conversation,selling,consultative

Did you ever wonder what the sales conversation is supposed to sound like?  Not the one you’re thinking about (between the sales person and the prospect), but the other one.  The market is full of books, blogs, and articles on the important conversation between sales people and prospects.  This very blog space addressed the topic of using conversational skills to differentiate oneself in even the most lopsided of sales environments.  If you’re curious about that, click here to read the article.  And if you haven't read Frank Belzer's article from yesterday, click here.  He addressed the important topic of how organic growth impacts sales architecture.  In that article, he gets more to the point of today’s topic by looking at the structure of the sales team as it grows.  When it has grown organically (read “without strategic planning”), it is not always supportive of the kind of management required to compete and win in today’s business climate.  And it’s this very structure which helps create an environment to foster the right kind of conversation happening in your company, with discipline and skill, every day.

Very likely, the single most important conversation, which has to happen so that your salespeople can have the right conversation with prospects, is with their sales manager.  Do you know what that sounds like today?  We have metrics of all shapes and sizes.  We look at calls, leads, inbound leads, qualified opportunities, revenues, margins, recurring revenues, demos, proposals, and on and on.  Some sales organizations have a daily handle on these metrics and can even speak about the gap between exactly where they are today and where they want to get to.  Most can’t.

But, how many CEOs, sales VPs and other leaders understand what the conversation between sales management and sales people should sound like compared with what it sounds like today (that's if there is a conversation actually taking place)?  How many know how critical this daily activity is to the success of the organization?  How many are listening and measuring the quality of this conversation? Our research at Kurlan & Associates reveals that only a tiny fraction of companies can say they do.  And fewer know just what that conversation should sound like.

In today's sales environment, we now know that up to 50 percent of a sales manager's time should be spent coaching sales people.  This is not to be confused with mentoring, motivating, or jumping up and down with your hair on fire.  Coaching is different, and it's the key to sales success.

Coaching is a specific kind of conversation.  It is a formal meeting (not water cooler), occurs daily, and can last for 30 minutes with each rep.  That's every day, with each rep, talking about either an upcoming meeting or call, or a previous meeting or call that didn't achieve the desired result.

Do your sales managers know how to have that conversation the correct way?  Can they affect deliberate, incremental, meaningful improvements to the skills of each of their sales people everyday?  Here's an example of what such a conversation sounds like: [insert link to Dave's coaching call on Wistia]. 

  • How many of your sales managers could have a conversation like that? [Dave Kurlan 1-minute video on this topic]
  • Can they roleplay what the call will sound like before it happens?
  • Can they roleplay how the last conversation went and pinpoint where the wheels fell off? [Frank Belzer 1-minute video on this topic]
  • Can they make the proper corrections to prevent the problem from reoccurring?
  • Can they instruct how to salvage a deal going the wrong way? [My 2-minute video on this topic]
  • Do they understand the hidden weaknesses of their sales team and incorporate that into their instruction? [Chris Mott 1-minute video on this topic]
  • Can they help their people move past personal barriers and head trash to execute the skills which they are learning?
  • Do they understand their own weaknesses and work to overcome them?

What would happen to your company if your sales team were methodically improving every day for one month, six months, or even a year?  How much better would they be?  If you are not sure about some of these questions, you might be interested in learning more at our webinar on February 5th at 11:00 am Eastern Time.  And I recommend that you check back soon to read Chris Mott's article on the challenges of managing technical salespeople.   

The next time you think about the sales "conversation", think about the conversation your sales manager is having with the reps to understand the impact of the performance on the team. 

  • Does he or she have the capability, knowledge, and skill to impact the effectiveness of the team? 
  • Who on your team will accept daily coaching?
  • Who can improve, and by how much?
  • Is it worth training your sales manager how to do this? 
  • Can they learn or do they believe they have it all figured out?
  • How much better can this conversation be at your company?

Join me and a panel of sales experts for a powerful one-hour webinar which will address this subject on February 5 when we discuss, "Leading Your Ideal Sales Force - Part 1" at 11 AM Eastern Time. 

Image credit: Public Domain

 

 

Topics: coaching, assessments, sales management, sales leadership, conversation, selling, consultative

Inbound Marketing Part One - Leads Are Up But Why are Sales Down?

Posted by Dennis Connelly on Wed, Aug 07, 2013 @ 16:08 PM

Inbound Marketing, sales call, sales force evaluation, sales and marketing, Frank Belzer, Dennis Connelly, Dave Kurlan, Trust of Salespeople, sales leads, Sales, Social Media, Sales LeadershipIn Frank Belzer’s recent book, SalesShift: How inbound marketing has turned sales upside down making it more difficult and more lucrative at the same time, he convincingly demonstrates that the nature of the lead has changed and many salespeople are having trouble adapting.  It’s true that in an Inbound world, marketing must work in tandem with sales creating an information feedback loop which propels new sales.  That is also one of Frank’s points.  Where salespeople get into trouble is thinking that a lead is a lead is a lead.

The reality is that all leads are not created “equal.”  As different as a referral is from a cold call, an inbound lead is different than those generated through traditional marketing channels.  When marketing works well, it performs the first part of the sales function.  It generates interest, exposes a potential issue, and may even lead to someone picking up the phone and calling your company for a rep appointment.  When it’s done well, the sales department can get hooked on this approach, even to the point of developing an “order taker” reputation.  The prospect, in this case, is already interested.

But inbound leads are different.  They are born on a different continent.  They are ethnically and culturally different from a traditional lead.  A potential prospect might have been doing research on the internet, watching a cool video, or simply wandering around on the web when an opportunity presented itself.  Taking advantage of the opportunity might have involved a simple mouse click.  Then after typing in an email address and answering a couple of multiple choice questions where your computer usually fills in all the details for you - free stuff arrives on your screen.  Behind the scenes, a company is collecting that information and calling it a lead.  The “prospect” barely lifted a finger in this case, and might not have thought about it very much.

Now back to that lead that is sitting in the rep’s inbox. It has the look and feel of someone who wants your product - just like a traditional lead.  It looks "bigger and badder" than it is.  But it is fundamentally different.  The person on the other end actually might be stunned to get a call from you - “What?! You mean I triggered a sales call? I just wanted to see the video. I’m not in the market for anything.”  But this is exactly the point where the path forks.

What is this fork, you ask?  Yogi Berra said to “Take it.”  Okay, let’s take it.  And here are your choices.  You can continue reaching out to leads who appear to be deer caught in headlights, make assumptions, and watch them run away, or you can develop your selling skills, approach them differently, and convert them.  That’s why Frank said that it’s more difficult, yet more lucrative.  With a few critical tweaks, your sales team can convert more of these kinds of leads and outproduce the competition.  And isn’t that the point?  As the economy comes back and as it lifts all of the boats in your market, are you concerned that your vulnerability to the competition will be masked in the short run as sales increase?  The market winners will be those who outpace the competition or those who beat the competition relative to each other rather than where they were last year.

Throw away "solution selling".  Toss aside spin, dodges, and dropping five dollar bills.  (Reminds me of the Barry Levinson movie, Tin Men, about two rival aluminum siding salesmen!)  Read Dave Kurlan’s Whitepaper on Trust for additional insight in that area. Get rid of "technique" altogether and embrace a conversational and consultative style, like you might with a friend or an uncle.  Back off.  Don’t push.  Ask questions.  Assume nothing.  And most of all, slow down.

In Part 2 of this Inbound Marketing blog series, I will let you in on few secrets.  There are two key selling weaknesses, which most sales people have, that prevent them from having this consultative-style discussion.  Having or not having these two key weaknesses makes all the difference.  And there are three others which could also cause your people to get in their own way and lose more of these opportunities than they need to.  But your staff can overcome them with help, and open the doors to a wealth of opportunity generated by Inbound Marketing.  You may want to consider having your sales force evaluated to see whether the current team can executive your objectives and whether they can both embrace and be effective selling in an Inbound world.

 


Here is the link to "Inbound Marketing Part Two - Leads Are Up But Why are Sales Down?" 

 

Topics: Dennis Connelly, Dave Kurlan, Inbound Marketing, sales leads, sales, sales force evaluation, sales call, sales leadership, frank belzer, sales and marketing, Trust of Salespeople, Social Media



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