Changes In Buying Attitudes

21st century Sales and Marketing is about solutions, win-win outcomes and lifetime relationships.  It is about rapport, understanding and value.  It is about co-operation, appreciation and service.

We have to be careful that our behaviour and language do not turn the experience into confrontation, win-lose and one hit sales.  And the situation is more or less identical across most sectors.  I even talk to my friends the undertaker and the wedding planner about how to get repeat business!

Much as it was advocated in some quarters in the past, I'm not certain the 'wham, bang, thank you' style was ever hugely productive; and it is almost certainly going to be ineffective with today's more sophisticated buyers.  So what is it that is making buyers more sophisticated?

The answer lies in communication and information - in short, it lies in the internet.  'Googling' what it is they want gives them access to remarkable amounts of information from more suppliers than ever before.  In the past their decision making was far less informed, but now they will know a lot more before you ever get to talk to them.

There is a risk, however, that this increased product knowledge will become merged in the buyer's mind with price!  Buyers may well reject initial quotes out of hand, even from favoured suppliers.  They will try to treat your product or service as a commodity.  Buyers will be thinking that, if they can save a few pennies, they will do so.  If your product or service isn't a commodity, don't let them believe it is!  It has never been more necessary to understand their fundamental problems, the circumstances in which those problems exist, and to propose solutions that reflect why you are uniquely placed to help solve them.

It is also vital to understand the customer's decision making process - one of many 'circumstances' - and this may well have changed recently.  Companies are becoming more risk-averse than ever; decisions are being referred to and made by committees; and no-one wants to take personal responsibility for anything.  People are becoming terrified of being held accountable.  But you can, and should, be offering certainty - but this should also carry a price premium.

Technology is not all bad news though.  It can give access to more information about your competitors' offerings; it can make internal sharing and discussion of information easier; but it can also make it simpler for you to by-pass 'gatekeepers'.

Increased buyer sophistication is also leading to the increasing popularity of referrals.  Networks, customers, unconverted prospects, suppliers, social acquaintances and many other contacts can be approached for referrals, and should be!  It might be as simple as giving you the name of a key decision maker, but it all helps.

Most customers are seen as loyal and most want to be, but as supplier you should never take them for granted.  It is the service with which you deliver your product (or service) that counts.  Keep a customer ecstatic and they won't be tempted away, even by a cheaper rival.  It remains true that people buy from people they know, like and trust.  It is the value that the buyer derives from the purchase that matters.  The more salespeople understand what value means to the buyer in a given situation, the more they can help the buyer.  So make sure the buyers know why you are asking all these probing questions.

But what if yours is a commodity?  How can you compete against, say, cheap imports from the Far East?  The answer is for the sales team to enable their customers, and thus themselves, to fully understand the fundamental problems, the circumstances in which these problems exist, and the way in which the buyer's own performance will be judged.  In this way it becomes apparent what 'total package' is required, and the customer can be helped to see the full value of receiving it.

Key pointers for future behaviour of your sales and marketing team.

• More customer communication and contact
• More 'business knowledge' - Not just product knowledge
• Being more available
• Reducing bureaucracy
• Less 'pitching by quotation'
• More discussion and agreement face-to-face
• Better 'keep in touch' systems
• More and better induction and ongoing training
• Build more rapport and better relationships
• Understand how buyers want to buy
• Understand 'problems and circumstances'
• Don't make sales presentations - Don't dictate
• Be beneficially different
• Give buyers choices

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Recruit And Train Your Sales Team

One of your reasons for attending a Networking meeting should be to recruit and train members of your surrogate sales team.  You are lucky if you can sell to someone in the room; you need to have them and their address books selling for you.  Pretty obviously they'll have no idea how to do this and no motivation to try, until you have told them.

Coupled with another of your reasons for attending - the ability to meet and get to know strangers - this means that 'recruitment' will be on your agenda.  Please be careful!  Don't try to rush into 'induction training' too early, and don't neglect further training for existing team members.  People who already know you, what you do and who you do it for, can be re-invigorated by some pertinent Continuing Professional Development (CPD).

Assuming you've broken the ice, established some rapport and are starting to enjoy each other's company, there is some pretty fundamental stuff you need to communicate, and then be sure has been received, understood and stored.

You can also use these same 'headings' when someone is recruiting and training you into their surrogate sales team.  If you don't understand these things about them and their business, you won't be an effective member of their team, so don't be afraid of letting them know you haven't quite got the full picture.  They will thank you for letting them help you be a better ambassador for their organisation, and they might just get better at explaining themselves in the future.  You will need to know:

• How to identify their Ideal Customers, using only public domain information - e.g. 10 to 40 person accountancy practices within 30 miles of Cambridge
• What 'symptoms' to look out for when you encounter one - e.g. Suffering from cash-flow problems
• How to check these really are symptoms of a 'disease' they can cure - e.g. They can only fix some of these personally: Low sales? Unprofitable sales? Excessive debtor days? High overheads? Inefficient staff and/or procedures?
• How to explain how wonderful life would be without these symptoms
• How to indirectly establish enough credibility for them, to allow contact

Neither of you is trying to get the other to sell their product or service for them!  What what both of you want the other to do is gain permission to broker an introduction, and then do so.

The sales training you do with your team on these occasions can be similar to training a 'regular', employed sales team.

• Some members of the team will be performing better than others, so study and analyse what they do, and share the ideas with the rest of the team
• Make study and analysis a continual activity, not a one-off fait accompli
• Best practice has to constantly evolve - something new might make the best even better
• Best practice may need to adapt rapidly to sudden changes in the market
• Don't neglect the 'tried and tested' techniques that new recruits can adopt, without fear of your (management's) disapproval
• Ask the entire team for ideas - "What's working for you right now?"

Again the best could get even better.  Modelling the best is just a starting point, a benchmark, a springboard, so accept ideas from anywhere.

Just as with a 'regular' team, you need to encourage communication within the team and with 'management'.  Encourage discussion of difficulties and have systems in place for team members to debate specific issues amongst themselves as well as with you.

As well as understanding prospects' problems and circumstances, all the team must be able to access the information which allows them to understand your problems and your circumstances.  By this I mean that they need to know the questions you (management) will ask as part of monitoring their performance, so they will have asked their own questions of the prospect and have answers ready for you.  They will be able to monitor their own performance against these well-publicised and understood rules too.  Bi-directional feedback will be of great help in resolving any bottlenecks.

For your surrogate team, out there prospecting on your behalf, processes and later developments of them will only work if the team 'buy into' them.  Your surrogate team need to feel listened to, the processes need to make sense, and they need to be extremely simple to follow.

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Sales Presentations Are So Last Century

My advice to anyone asking about a sales presentation would be, don't do it!  What purpose do you think it will achieve?

Why would you ever need to make a sales presentation?  If you don't yet understand inside-out and upside-down the prospect's fundamental problems and the circumstances in which they exist, how can you possibly know what to present?

And if you do understand, it's not a sales presentation, is it!  You will be presenting your suggestions, your proposal, won't you?

Yet many thousands of words continue to be written on the subject of sales presentations, by well respected people in their books and in well respected publications.  Just looking recently at a small number of articles on this subject revealed some amazing things.

I find it frightening that this stuff is being broadcast to sales teams as state of the art, immutable fact, under the banner of professional bodies who claim to represent these teams' interests.  Within the 'sales advice' community there seems to be this continued fixation with:

1. Giving sales presentations - Generally involving PowerPoint or something similar
2. Having a 'one size fits all' sales presentation, yet one that is flexible
3. Letting specialist outside companies produce your sales presentations

Authors identify the five situations where they feel you ought to want to give a sales presentation:

1. In meetings with buyers
2. In corporate account presentations
3. When helping your 'customer champion' to convince their colleagues
4. At events where 'customers' gather
5. As a response to a request for information!

The advice seems to be grouped into four categories:

1. General Advice
2. Detailed Advice
3. Presentation Design
4. Detailed Design Steps

My own reactions to all the points raised can be summarised as one of:

• Hear, hear! - because I agree
• Why? - because I don't believe they've justified their assertion
• Amazing! - said with huge irony
• Well, yes! - said with almost as much irony
• Expletive deleted! - said in genuine amazement that anyone could still think that way

Let me give you the detail on the first two.

General Advice

• Your presentation must be flexible - Repeated ad nauseam - Amazing.  So why try to have a one size fits all?
• Cover your scope and capability - Why?  Surely it should be about what the customer will get out, not what you can put in!
• Use a specialist presentation design company - Why?  Apart maybe from graphic design and PowerPoint coding, shouldn't your sales and marketing team be well enough skilled and well enough trained to write the copy themselves?

Detailed Advice

• Keep it to 15 slides so you don't bore the audience - #ED!  And 15 won't?
• Think from the buyer's point of view - Amazing!  Is there any other way?
• Don't just blow your own trumpet - #ED!  Words fail me!
• Start your presentation by describing the state of your marketplace - Why?  What interest does the audience have in that, that they aren't aware of already?
• Get an early agreement on something, anything - Hear, hear!
• Use your smartness to create a pleasant surprise - #ED!  And being a smart-arse is the way to build lasting, win-win relationships?
• Convince the audience by showing what you can deliver - Well, yes!  But if, and only if, what you deliver is being described in 'value to the customer' terms - which is quite a different thing from benefits - and is pertinent.
• There is often too much focus on what the salesman wants to say rather than on what the buyer wants to hear - Amazing!  And yet you're still trying to push the idea of a sales presentation!
• The salesman is trying to promote change and all change is risky - Hear, hear!
• Few sales presentations actually address the senior decision makers - Amazing!  You could never guess they would be involved in the decision making, could you!
• You don't need to be the biggest or the best to win - #ED! You don't say.
• Linking content to customer outcomes gives you the ability to quote higher prices - Why?  Linking content to outcomes allows the buyer to see the value, and thus see the return on their investment!
• Your audience is under time pressure and is inwardly focussed - Well, yes!  So cut the crap and get them to admit the value outcomes to themselves!
• Only present when you've established a potential need - Amazing!  Unless there is a full-bore want, why waste time on a presentation?
• Your presentation should turn 'need' into 'desire' - Amazing!  And there was me thinking your 'conversation' should allow the 'prospect' to do this for themselves!
• Research your audience and their business requirements - Hear, hear!  But do use the best source for that information - Your audience!
• Address the concerns of each member of your audience individually - Well, yes!
• Hone your abilities at handling supplementary questions in the Q&A session at the end - Well, yes!
• Spread enthusiasm and take your time - Well, yes!

There is another way, a better way.  If you recognise yourself or your organisation in any of these, please allow me the chance to talk to you and start to explain that there are other ways.

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Sales Myths And Folklore

Research has shown that some of the preconceptions about sales folk are in fact untrue.  Apparently salespeople are not 'only interested in deals', 'only motivated by money', 'lazy', or 'mercenary'.  What has emerged from the surveys is that salespeople are 'influential', 'hardworking', and 'passionate about their contribution to the business'.

On the other hand some of the generalisations that salespeople themselves like to believe, have been shown to be well founded.  For example, over 70% of salespeople are men, who are likely to be paid more and probably have a more senior position than their female counterparts.  Unsurprisingly there is a variation in the figures from industry to industry and from one region to another.

Over 50% of salespeople never planned a career in sales and barely 20% of salesladies look on sales as a lifetime career, compared to almost half of the salesmen.  However, the ladies felt far more positive about the way their careers had progressed in recent years, compared to the men.

Salespeople are proud to be in sales, and 95% enjoy working in the profession.  Of the 5% who say they don't, a large number are in IT and Telecommunications where earnings are generally highest.  The sector with the highest 'enjoyment factor' is Business to Business with 98%.

Salespeople tend to judge their own work primarily by performance against targets, but this maybe because that is what others measure them by.  With advances in technology being applied to the sales process, face-to-face selling is still reckoned to be the most effective way to secure business.  Perhaps surprisingly, sales divisions were reckoned to have the most influence in over 60% of companies, with accounts/finance at 20% and marketing at 11%.  But then the researchers were surveying sales people!

Unfortunately almost two-thirds of sales people do not feel well-managed, with 'laissez-faire' and 'distant' criticisms coming to the fore, rather than 'aggressive' or 'dictatorial'.  Almost as many claimed they could fulfil their line manager's role more effectively than the incumbent.  Amongst the managers of this group specifically, 'aggressive' and 'dictatorial' did dominate.

For the sales managers, long hours, long weeks, short holidays, working whilst on holiday, and taking insufficient exercise all loomed large.  These managers stated that their biggest motivator was winning the respect of their teams.

At a higher level, the sales directors still work long hours but not long weeks.  Far more than the managers, the directors were applying their own skills to their CVs and other career related activities.  Somewhat bizarrely, the directors and the non-managerial salespeople do seem to take plenty of exercise.  Looking at other aspects of lifestyle, most salespeople eat healthy lunches, with less than 10% resorting to burgers, chips and pies.  One in eight claimed never to eat lunch.

Rather worryingly, one third of salespeople had received no sales training at all in the previous twelve months, and only 10% had received more than 5 days.  Amazingly not even half had taken it upon themselves to read a self-development book, and a quarter said they would not be interested in a free newsletter dedicated to sales improvement*.  Once again it was in the Business to Business sector where the greatest proportion reckoned they actually had received adequate training.

The researchers concluded that:

• Sales is getting tougher
• Salespeople's needs are more complex than just money
• Salespeople are hardworking
• Sales needs more women
• Salespeople enjoy their work and are proud of what they do
• New talent needs to be better nurtured and developed
• Salespeople want to improve their sales skills

*There's lots more advice like this in my regular bulletin.
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You Can't Do Everything For Everybody

One of the crucial rules of marketing is that you're almost certain to fail if your strategy is to take a small slice of a large cake.  The idea sounds so plausible, doesn't it!  We must be able to take 1% and make a decent living for ourselves, mustn't we!  The trouble is it just doesn't work like that.

You might still fail, but you'll have a greater likelihood of success if you change your plans and aim to take a dominant slice of a different cake.

Imagine you've decided to take 1% of the illegal drugs supply into London.  Do you think you'll survive - and I mean that quite literally - your first day?  Will you even still be alive to enjoy your first coffee break?

You need a different strategy.  Either you and 10,000 heavily armed friends can go for 99% of London, or you aim to be the exclusive supplier to one addict.  Either way you have to plan to dominate.

You have to focus on a specific, under-served market niche if you want to be really successful.  Find a niche and carve out a reputation for yourself as the expert in that field.  A common mistake is to develop the niche product before establishing whether the niche market exists, and whether it's buying.

In their book "The 22 Immutable Laws of Marketing", Al Ries and Jack Trout list as their first two laws:

1. It's better to be first than it is to be better
2. If you can't be first in a category, set up a new category you can be first in

To find your own niche ideas, start by getting into the habit of writing down your ideas as you have them.  Don't try to filter anything out at this stage.  So, where to look for ideas?

1. Solve an existing problem
2. Use freely available, public domain information
3. Ask your current customers and website visitors
4. Combine products into new packages
5. Sell 'own label' products
6. Improve an existing product
7. Adapt an existing product for a different market
8. Exploit today's "must have"
9. Look at your own hobbies and interests
10. Combine ideas and improve on them

Expanding on this last point, if you can marry two diverse ideas, 2 plus 2 can often equal 5!  For example:

• Gutenberg combined a coin stamp with a wine press and invented printing with moveable type
• Long ago, someone combined two soft metals, iron and tin, and produced a strong alloy, bronze
• A French chemist launched a hair colouring product but soon branched out into cleansing and beauty products.  The modern name of his company is L'Oréal.

You can take an existing product and try to think of ridiculous ways to make it work.  Trevor Bayliss combined the electronics of a radio receiver with the mechanism from a wind-up clock to create the clockwork radio.

You can make unlikely pairings of businesses or people and create the most superb results; an idea particularly used in music:- Stéphane Grapelli and Yehudi Menuhin, Freddie Mercury and Montserrat Caballé, Luciano Pavarotti and U2.  Or in business, the car maker Mercedes Benz and watchmaker Swatch combined to create the Smartcar

You can take two everyday products and create a third which has a whole new market:- A trolley and a dustbin make a wheelie bin; a copier and a telephone make a fax machine.

It isn't always easy to create a new category.  In the field of human endeavour, we're all different, so you'd think that would be simple, but after a while it starts to get ridiculous.  I can't imagine the Guiness Book of Records having a category for the first left-handed pilot with red hair to fly solo across the Atlantic!

The irony is that when someone else finds a new niche, we all say, "Why didn't I think of that?"


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Destroying Your Reputation And Your Relationships

There are many ways to build a better reputation and great relationships.  It's probably true that it takes less time to destroy them than it took to build them, and it may well take even longer to re-build them.  We tend to notice these 'many ways' most readily when they go wrong in a big way, but often we are doing ourselves and our chances no good at all in small ways yet we don't realise we're doing it!

Communication
In our conversations and written communications we might be guilty of being patronising by asking lightweight, rhetorical questions at which the other person takes offence.  Even something as simple as, "Would you like to save time and money?" could be seen as patronising.

Then, our more heavyweight questions might be seen as too aggressive.  For example, "Are you sure you're getting it right every time?"

Many people dislike undue familiarity too soon in a relationship.  Using people's Christian names without even unspoken permission can set them against you, and they almost certainly won't tell you directly why they've now gone cold towards you.

Another gaffe to avoid is the use of highly dated clichés.  It just shows you've only learned what you know from a textbook, and you couldn't be bothered to buy an up to date one either!  This applies both to 'Sales speak' and to 'Adviser- or Sales Manager speak'.  Who wants to read, let alone hear, "And that's not all.  Just wait and see what else our product can do for you" or "Remember, people buy from people".  The thoughts may be correct but please, craft your own version of the message.

It is easily possible to get somebody's back up by being assumptively critical, so don't.  "You too can have an apartment in Monte Carlo like mine," isn't the best thing to say.  And putting people into categories when it's obvious you've had no prior contact doesn't do you any good at all, even if it's based on public domain information.  "As someone with two outstanding County Court Judgements against you ..."

Reliability
As well as in conversation and communication, another sure way to damage your reputation is by being seen to fail to deliver on promises you have made.  I have already explained elsewhere that the making and keeping of promises is an essential part of building people's trust in you.  If you behave like that before they're paying you, how much better will you be once they start?  And conversely, if you keep breaking promises before they start paying you, how likely is it you'll change your behaviour once they start?

The problem is that the apparent breaking of a promise can often be the result of the two parties having a different interpretation of what the promise actually was!

At its crudest, there are three elements to a promise.  For the sort of small promises I advocate you make and keep - actually I recommend you 'trade' them - continually, much of this doesn't require to be written, but it's still a good idea to make sure it is understood in the same way by both of you.

A promise generally consists of three elements, and it's essential to agree on these at the outset.

• Deliverables
• Payment
• Timescale

I believe deliverables are easy, but then my degree is in Engineering!  In that world there are some simple rules:

• If you want it, ask for it
• If it isn't in the design specification, don't be surprised if it isn't delivered
• The specification should be a list of 'questions' not 'answers' - You're paying for the 'answers'!
• If the form of the 'answer' is that important to you, it should form part of the 'question'

Going back to Henry Ford's quotation, don't ask for a faster horse if what you want is to be able to get 300 miles from Chicago to Detroit in just one day!
However, if you want to win the Derby, then ask for a faster horse!

Another thing that needs to be agreed up-front is how both parties will agree that the deliverables have been delivered - the Acceptance Criteria.  As I said, with very simple promises it's so easy it doesn't need writing down.  "I'll call you tomorrow at 10:30," contains the design specification, the acceptance criteria, the payment and the timescale.  But with more complex promises, failing to agree on the acceptance criteria at the outset leaves you open to a game of, "Oh yes I did - Oh no you didn't."

Agreeing the payment seems to be fairly simple once the deliverables and acceptance criteria have been agreed.  But, if you get into a negotiation, take a little care.  You may have to adjust the 'package' in order to reach a mutually acceptable 'price', so don't forget to feed back these adjustments into the specification and acceptance criteria.

So far, so good, but when we get to agreeing timescales, especially short timescales on more complex promises, things can get heated and emotional, if allowed to.  Only one person can control your use of your time, and that's YOU!  And it follows that you cannot control other people's use of their time.
They must do it for themselves.

On a complex promise, you need to get 'buy-in' from the rest of the team when it comes to timescales, and this must be done in an atmosphere where everybody feels free to say, "I just can't do all that you are asking within the time you are suggesting."

Have a great reputation and satisfying relationships.

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Whatever Happened To Joined Up Thinking - Part 2

The title implies that joined up thinking used to be widespread but recently we've lost the skill.  Not necessarily true; maybe we never had it!  But even ancient Greek generals debated the unpredictably far reaching effects of ripples on a lake when you lobbed in a stone.

People who can foresee the unintended ought to get a more than fair hearing, but often the opposite is the case.  They get labelled as negative, or resistant to change, or not being team players.

Even the most reasoned arguments don't guarantee that the foresight will be listened to, let alone accepted.  By 2001 scientists at the University of New Orleans were already publishing papers on the risks of having built a city near the sea, protected by levees that cause the ground behind them to sink below sea-level, as it was no longer being topped up by soil deposits from the tidal waters.

In the 1930s, sociologist Robert K Merton listed five causes of 'unanticipated consequences'.  The first two were Ignorance and Error, but the fifth is the one I find most fascinating.  The fifth cause is the Self-Defeating Prophecy, in other words the fear of a foreseen consequence drives people to find solutions before the problems happen.  The prediction then becomes false because it itself changes history.  Think of warnings of the future depth of horse manure on the streets of London, made in the 19th century!

Incidentally, it was only sometime later that Merton turned his original phrase on its head and coined the more well-known expression, the Self-Fulfilling Prophesy.

Whilst unintended consequences can hinder progress for the common good, I believe the real criticism should be levelled at the scale of the 'unintentionality', which is sometimes vast.

Popularly known today as a 'lack of joined up thinking', the possession of Critical Strategic Foresight is far from universal.  As noted in an earlier post, it seems extremely thinly spread amongst politicians of all persuasions!  Maybe President Obama can break the mould.

Merton's third cause was 'imperious immediacy of interest', that is to say a vested interest coupled to a short-term action.  Here longer-term consequences are often deliberately ignored - totally different to the genuine ignorance of the first cause.  As an example, consider the enforced adoption of spreadsheets, where the user has to enter the formulae themselves.

If you are ignorant of the appropriate algorithms and their purpose, the spreadsheet will just help you to arrive at the wrong answer more rapidly.  The time spent performing manual additions and long multiplications might well have allowed greater insight into the problem, and so resulted in you arriving at the correct answer.

Many corporations lack the infrastructure to help gather Critical Strategic Foresight, or fail to use their infrastructure correctly.  Similarly individuals need the mental 'infrastructure' to consider these, "OK.  What if ...?" questions before getting their sleeves rolled up and starting the task.

Critical Strategic Foresight is unlikely to arrive conveniently, just when you're looking for it.  Murphy's law says it will be after strategies and tactical plans have been formulated and signed off!  Because the pressure is now off, and the understanding is a lot more complete, the mind can wander laterally and those, "Oh my goodness!" moments start to happen.

One answer is to create a list of testing questions by which individuals and organisations can challenge and judge new ideas and the resulting Critical Strategic Foresight.  These question may well be of the "If, then how?" variety, or with 'how' replaced by any of the other five ways of starting an open question.  Without such an infrastructure, someone who is Critical Strategic Foresight savvy will more likely be seen as a Luddite than as an innovator.

This was noted by Merton as the fourth cause of 'unanticipated consequences', the Basic Values; in other words the very culture within which change is being sought risks stifling that change, or else its implementation will destroy the culture.

So how can Critical Strategic Foresight be cultivated?  Both individuals and organisations can adopt creative thinking methods like negative brainstorming and devil's advocacy, based on seeking out counter arguments and not shying away from, "What could go wrong if ...?" questions.  Such a culture implies that inconvenient and challenging questions will be welcomed at any time, and will be given fair consideration; an important thought when, as was noted earlier, Critical Strategic Foresight doesn't always arrive just when you ask for it.  The understanding needed for Critical Strategic Foresight to flourish can take time and experience.

New strategies and technologies can usually be explained in broad terms when required, but unintended consequences often arise from the detail.  Therefore strategies should be defined in detail, prior to their implementation, and the detail not left to be created as the project goes along.  Views of consequential outcomes should be sought from those with an in-depth understanding and years of experience - the sort of 'nit-picking Luddites' who actually welcome progress, but not change for change's sake.

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