Has Buying Changed and Has B2B Selling Adapted?

Posted by Dave Kurlan on Wed, Jan 05, 2022 @ 10:01 AM

b2b

My articles begin with analogies so we'll start by asking, has baseball changed?  

Games take longer, there is role specialization, starting pitchers rarely complete games, hitters are stronger, pitchers routinely throw in the mid 90's and there is a trend towards either hitting a home run or striking out.  But it's still baseball.  It is still played the same way.  The changes are superficial.

And in the context of how it affects salespeople, has buying really changed?

If you believe what is so frequently written by digital marketing folks, then buying has changed dramatically.  But just because a digital marketing person wrote it, does that make it true?  

We must discuss buying in the context of buying from salespeople so we will begin by differentiating facts from claims. Let's begin with what we know for absolute certain.

B2B buying can be broken down into the following categories:

  • Point and Click Transactional Purchases (navigate to a website and buy it)
  • Talk and or Meet with an Expert (salespeople)

For transactional purchases, salespeople have been eliminated so to that extent, sales has changed dramatically!

For other B2B purchases, salespeople still have significant involvement - for now.  Prospects search Google, visit websites, learn about products and services, and even get a sense for pricing.  For their part, salespeople who regurgitate the same information that prospects can find online are simply redundant, fail to provide any value, and won't be around for long.  It is imperative that salespeople provide value by actually being the value and from that perspective, one of the salesperson's responsibilities has changed.

It is more difficult for salespeople to reach decision makers of larger organizations as they are better protected than before and tend to rely more on group decision making.

When the onset of the pandemic introduced virtual selling to the masses, more buying options than ever before became available because the business that is 3,000 miles away is suddenly no further away than the one down the street.

The way that buyers find salespeople has changed.  They may use the aforementioned Google search, but are just as likely to find a trusted source from an expert Blog, through LinkedIn, or Facebook.  While marketers will use that as proof that outbound selling is dead, that proclamation is propaganda, not fact.  Inbound marketers generate a lot of interest and leads on which to follow up but the quality of those leads is questionable and inconsistent and there are big problems when handing them off to salespeople.  Salespeople who still do their own prospecting by phone schedule plenty of quality meetings to keep their pipelines full.

So how buyers and sellers find each other has changed, decision makers are more effective insulating themselves, and there are more buying options.  What happens after that?

The digital marketing folks say that the buying journey is 57% complete when a buyer first reaches out to a salesperson.  Most ineffective and underperforming salespeople agree that prospects seem to know what they want and all they have to do is quote prices, prepare proposals and take orders.  Of course that's why they are ineffective and chronically underperform.

Today's buyers are self-educated and salespeople mistake that knowledge for readiness. Salespeople tend to take the path of least resistance and the knowledge they mistake for readiness lulls them into the quote, proposal and order taking mode.  As a result, they don't follow their company's sales process or worse, the company's sales process has been modified to reflect buyers being ready.  If the buyers were truly ready at this point they would actually buy but the additional options prolong instead of shorten the sales process.

The top 20% of all salespeople have not fallen victim to the false sense of security offered by poor quality inbound leads or the myth of the buyer journey being 57% complete.  They leverage new tools and technology to take a more consultative approach, follow their sales process, nicely challenge prospects who seem to be ready, uncover the reasons and consequences that led them to buy, get them to think differently and get prospects to see them as subject matter experts. They qualify more thoroughly than ever, talk with and/or meet decision makers, and close two to three times more business than their underperforming, order-taking colleagues.

Buying has changed to the extent that it's easier to start the process and reach out to potential vendors.  Selling has changed to the extent that most salespeople are less effective and top salespeople are closing a bigger percentage of the business than ever before.

This can all be fixed.  How?  

A Sales Team evaluation identifies the issues.

A Custom Sales Process helps salespeople to meet the correct milestones with the proper people at the optimal time for the right reasons.  Integration of the sales process into a CRM application that is designed for how you sell and who you sell to is crucial.

Sales Leadership Training and Coaching train your sales leaders to coach up their salespeople.

Sales Training that demonstrates a consultative approach, utilizes role-play and models what great selling looks and sounds like. 

An integrated approach to sales development changes everything.  Isn't it time?

Image Copyright 123RF

Topics: Dave Kurlan, Consultative Selling, sales process, closing, crm, inbound, buyer journey, outbound

Follow This Advice to Schedule More Meetings and Spend Less Time Doing It

Posted by Dave Kurlan on Wed, Aug 25, 2021 @ 13:08 PM

toadYesterday I watched a toad walk across the outdoor side of our kitchen window.  Picture it!  I wish I had video but it ran so counter to what I have observed toads doing over the past 65 years that I froze.  I performed a google search and found exactly one image of a toad on a window. Please understand that the dirty window and sill are not mine - I found the image via a Google search.

Regular readers know that I'm all about the data and I have written nearly two thousand articles based on data from Objective Management Group's (OMG) assessments of more than two million salespeople.  Occasionally however, I see data where incorrect conclusions have been reached and like the toad on the window, my conclusions run counter to theirs.  One such example is a beautiful infographic from sales playbook company Xant. I am going to share some of their data, graphics and conclusions and I'll provide my counter argument to their conclusions.

I'm not challenging the data, only their conclusions.

They cited data from tens of millions of outbound follow up calls to leads showing call conversion rates being significantly better on Mondays, Tuesdays and Thursdays.  Their conclusion was that salespeople should make their outbound calls on those three days.

I see it a bit differently.  Wednesday is hump day and Friday is the beginning of the long weekend.  Both days are notorious for being slacker days so it's not that prospects are less likely to schedule meetings when you call them on Wednesdays and Fridays as much as salespeople tend to be far less effective on Wednesdays and Fridays.  So if Xant is suggesting that salespeople focus their calls on Mondays, Tuesdays and Thursdays you should absolutely make your outbound calls on Wednesdays and Fridays when there is less noise and competition but while being as effective as you would on the other three days.

The data also showed that contact rates were best in the morning and they suggested that you make your calls then. Of course, I see it differently!  I have always suggested that outbound calling be performed for no more than 4 hours per day because salespeople become exhausted and less effective as the day goes on.  I believe the poorer afternoon contact rates are due to salesperson fatigue; not prospect behavior!  Therefore, if Xant is suggesting that you call in the morning, begin making your calls in the afternoon when fewer salespeople are calling!

There was one conclusion that I wholeheartedly agreed with and that is the time elapsed from lead to follow up call.  Five minutes does seem to be magical with a conversion rate that is 8X better than waiting even ten minutes before your call!  FOLLOW UP IMMEDIATELY!!

Their data shows that most salespeople - 81% - make fewer than 5 follow up attempts but the data isn't filtered by title. Calling the C Suite requires more attempts than calling a manager but salespeople suck at reaching decision makers.  Read these articles.  Despite that, it is very clear that you must be persistent! The reality is that the contact rate for between two and six attempts is much better than for one attempt and more than eight attempts.  My advice, call every day until you reach the person that generated the lead.

When it comes to lead follow up, I have a few suggestions.

Do it quickly and you won't have to do it a lot.

Do it effectively and you'll have a better conversion ratio.

Do it a lot to become more effective.

Let's pivot to a baseball analogy.  If the batter fails to get a hit, one of three things have occurred:

  1. They made solid contact but hit it right at a fielder - bad luck.
  2. The pitcher got them out with good pitching.
  3. They got themselves out with lack of plate discipline.

Don't get yourself out with lack of outbound calling expertise.  Practice every day and become awesome.  When I first began selling I hated cold-calling with a passion.  Since I was spending 6 hours per day doing what I hated I vowed to become good enough at it so that I could do it in one hour.  Remember, the better you are, the less calling you'll have to do!

Topics: Dave Kurlan, assessments, prospecting, cold call, outbound

The 14 Lies Preventing Salespeople From Getting Their Prospects into a Buying State of Mind

Posted by Dave Kurlan on Fri, May 17, 2019 @ 13:05 PM

lies

Most lies are truths to the people who state them.  Take climate change for example.  Climate change is clearly a real thing. The planet has been warming exponentially since the ice age!  But to think that humans are responsible, that humans can stop it, or else we'll be dead in 12 years, seems ludicrous to me.  My statement is a lie to every reader that doesn't agree with it, but rings true to those who agree.   Lies are in the minds of the beholders.

Let's cover some of the lies being told to companies with sales organizations and how those lies prevent sales organizations from being their best.  Over the past 10-20 years, we have seen and heard the following proclamations (and you can find most of them with this Google search link:

Selling is dead.  Circa 2001. This is obviously false!  Currently in the US, there are around 4.5 million B2B salespeople and nearly 16 million salespeople overall and those numbers are growing.

Cold Calling is dead.  This lie was so freaking good that people actually believed it!  Why?  If they could justify not making cold calls anymore, then their lack of prospecting might not look so bad because, Didn't you hear?  Cold calling is dead, right?" Referrals and introductions are at the top of the food chain but a cold call is much more likely to convert to a meeting than a cold email or an inbound lead regardless of how many follow-ups are attempted.  More importantly, you'll experience far less competition for your prospect's attention by using the phone than if you use web-based cold approaches.

Inbound is King (so selling is dead).  False. How many years running did we hear this lie?  Hubspot, the Lion King of inbound, has a large sales force placing outbound calls to generate sales.  How's that for alive and well?

SPIN Selling is dead. False.  I first read this in 2008.  While it it is true that only the top 5% of all salespeople can execute SPIN, it's still being taught and it's still being (kind of) implemented and executed.  It's one of the oldest forms of consultative selling which, by all accounts, is supposed to be dead!

Solution Selling is dead. False.  I first read that Solution Selling was dead in 2007.  Most of the tech companies I have worked with, including now, in 2019, had been using some form of Solution Selling prior to my arrival so it's clearly not dead.  I believe that there is a fatal flaw within Solution Selling that makes the methodology far less effective and efficient than it could be (learn more here) and than others are, but it's far from dead.

Consultative Selling is dead.  False.  According to Objective Management Group (OMG) which has evaluated and assessed 1,861,244 salespeople from  companies in countries, 59% have not even begun to sell this way yet!  How can something that is still trending up be dead?

Sales Process is dead.  False.  See Consultative Selling is dead.  According to the same statistics, 52% of salespeople are not following a staged, milestone-based, customer-centric sales process.  This is a huge improvement from just 10 years ago when the percentage was only 9!  This too is trending up, not down, so not only is it not dead, but CRM without an integrated sales process is just a data warehouse.

Traditional Selling is dead.  False.  This one depends on how you define traditional selling.  If we define traditional as features and benefits selling (FAB), then it should be dead and buried and forgotten.  Unfortunately, it's far from dead because more than half of all salespeople - the weak half - are still selling this way.

The old way of selling is dead.  See Traditional Selling.

Relationship-building in sales is dead.  False.  In 2011, Harvard Business Review, the biggest publisher of junk sales science, declared Relationship Selling dead.  That alone should be reason enough to call it a fake news.  As a sales methodology, Relationship Selling prioritizes taking making friends and building a relationship over time because people buy from people they like. In the 60's and 70's, a good relationship was more than enough for people to justify buying from you. Today, not so much.  While people DO like to buy from people they like, the relationship is no longer the only criteria.  If you can help your prospect as well as anyone else, the relationship could be a difference maker but if you can't meet the other important criteria, your relationship won't help you.

Always-be-closing is dead.  This. Should. Be. Dead.  It fits right up there with traditional selling and FAB selling.  Of the salespeople that are selling this way, most are misinformed  and the rest are sales bullies.  It should be dead because it leaves people with a bad taste in their mouths and gives salespeople a bad reputation.

Social Selling is dead.  Already?  Talk about fads!  We've only been selling socially for several years so how can Social Selling die as quickly as Pokemon Go?  The reality is that Social Selling never existed in the first place.  Personal promotion?  Sure.  But selling?  Nobody sells anything over social networks.  Everything is marketing, advertising, blogging, tweeting, videos messages, connecting, and building networks and followers.  Sounds like PR and marketing to me.

Outbound is dead.  False.  See this article.

Artificial Intelligence (AI) will replace salespeople.  False.  I'm sure you're getting the same cold emails as I do.  They all promise to grow your business, generate leads, make appointments, and if you don't respond to their first attempt, then several more emails will follow.  Each email is powered by AI.  Each email is worse than the one that preceded it and are so awful that I'm sure that the recipients hit the delete button faster than you can say thank you.  Further, AI will never be able to replicate a human having a deep, thoughtful conversation that helps a prospect become emotional.  Prospects buy emotionally.

For example, check out the following consultative questions I taught a sales team to use yesterday.  I used generic versions of the questions and hid the responses but you should be able to easily understand the flow.  Identify a business issue that you frequently uncover and use that as you convert the questions and answers to your business.

Salesperson:  So why do you need this?

Prospect: Response.

Salesperson:  How were you handling that problem up until now?

Prospect: Response.

Salesperson: How long has that been going on?

Prospect: Response.

Salesperson:  If you've been doing it like that for all this time, why change now?

Prospect: Response.

Salesperson: Tell me about the last time that happened.

Prospect: Response.

Salesperson:  How much it that cost when that happens?

Prospect: Response.

Salesperson:  So over this period of time, what has the total cost been?

Prospect: Response.

Salesperson:  How does you that affect you?

Prospect: Response

Salesperson: How do you feel about that?

In each case, the salesperson can't ask the follow up question unless they get the appropriate response they are hoping for.  And as the questions become more emotional and more difficult, the tonality, pace and facial expressions must change along with it?  Can you imagine this type of exchange taking place over email driven by AI?  No. Freakin. Way.

All of the lies we are told create excuses for salespeople to not learn, embrace, practice and apply the most important aspects of successful selling.  The lies mask the best practices of great salespeople and great sales organizations because they suggest that there's an easier way to sell where you can hide behind your keyboard and monitor.  Well, I've got news for you.  There are no shortcuts, no easy paths, no magic pills, nothing but doing the hard work.  If it isn't challenging, and you aren't challenging yourself to improve, then AI will replace you.

Join the discussion and leave your comment at the LinkedIn post.

Image copyright iStock Photos

 

Topics: Consultative Selling, solution selling, Relationship Selling, inbound, SPIN Selling, outbound, AI

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Best-Selling Author, Keynote Speaker and Sales Thought Leader,  Dave Kurlan's Understanding the Sales Force Blog earned awards for the Top Sales & Marketing Blog for eleven consecutive years and of the more than 2,000 articles Dave has published, many of the articles have also earned awards.

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