The Sales Café

While wrestling with your personal social media strategies, ponder this: over the past 18 months, your opportunity as a salesperson to influence the early stages of a buyer's shopping experience has changed radically. Most of your one-to-one prospecting tools (especially cold calling and event networking) are practically useless.

Let's think about recent history for a moment.

I am a salesperson of a certain age (meaning in my mid 50s). I began my B-to-B selling career in 1983, right at the tail end of the three-martinis-for-lunch era. Until about 1982, business buyers expected to be entertained, and a salesperson needed to possess charm, fortitude and an expense account just to get into the game in a serious way. Not being much of a drinker, I was lucky to miss all of that.

As the economy recovered from an awful recession and companies re-engineered for a new era, buyers found themselves doing two people's jobs and had little time for lunch, let alone blowing their minds out for the afternoon. Today that same buyer (be they VP of Sales, CIO, or Staffing Manager) does five people's jobs and barely has time to return a phone call!

In the early to mid-1980s, we entered a twenty-year period that witnessed the professionalization of salespeople. Until roughly 2007, to be a salesperson meant you needed to fill yourself with unbelievable amounts of information to prove to the busy buyer that you could improve their world. You needed to do this in five minutes or less before they would begin to tell you their problems. Charm barely or rarely got you in the door. You needed to arm yourself with product and technical knowledge, competitive and business acumen, team building and leadership skills. You also needed to be a strategist, a consultant, a PowerPoint expert, a great speaker, and a pithy inventor of high-impact value propositions and elevator speeches. Salespeople learned to become knowledge workers, technocrats, leaders, managers, field generals, and politicians. Charm and humor were still required.

Wow, what a change! Most of you readers weren't conscious of this change because you've spent most or all of your career practicing within that environment.

Today, our selling world is changing again. The proliferation of social media and the maturation of Web research tools has truly empowered the business shopper. By the time your prospect returns your phone call or email, they've checked you, your company, your competition, your competition's salespeople, and perhaps even your friends out. They've educated themselves about your product or service and the differences between you and everybody else. What does this mean?

Marketing is the art of communicating and influencing "one to many." The digital universe provides a multitude of channels that allow for easy consumption of product and personal information. Today, the buyer might not allow you in the door until they've completed their research. Does this mean that salespeople are now relieved of the need to know it all before the buyer will talk to us? Not really.

We either need to learn how to partner very closely with our marketing department or become our own marketing department. Our personal and product appeals need to be cleverly crafted and widely placed so that when the buyer is shopping, they can find us.

We are truly selling in a marketer's world.

Here's something simple: how to read your customer's mind. Can you read it with certainty? Of course not. But can you read it with some insight? Absolutely.

Think about this for a moment: many of us rely on good psychics and fortune tellers who are right often enough to make a better living than most ordinary people. They're called stock analysts and brokers. When they're really good, we can make a fortune, or at least quite a few bucks on their predictions. How do they do it? There's nothing like a couple of well placed questions coupled with very good observation skills to predict the future.

What does this have to do with selling? Everything, really. The art of successful selling - and it most definitely is an art when it's successful - relies heavily on the skills of questioning and observation. We know that these are two pillars of selling, but what about before the sale, or aside from actual customer conversations?

Today, I'm going to focus on the most difficult customer mind-reading skill. This is the skill of preparation: studying public information, recognizing patterns, and making intelligent deductions (guesses) that more often than not allow you to peer into the mind of your customer before you ever meet them.
First, how do you prepare for a sales call? Do you psyche yourself up with positive self-talk? Do you spend your time on LinkedIn figuring out who the person is you're meeting and who you might know in common? Do you read 10-Ks and 10-Qs, shareholder letters and websites, competitive analysis and news reports?

Let's hope you're doing all of this and not winging it out there with all the other amateurs. Seriously - you are meeting at the buyer's pleasure, hoping to discover their needs and interests, so that you can earn the right to talk about your solutions. You need to be in the zone. You need to be on-message. And you need to be prepared. This is especially true during the opening minutes of an interaction with a buyer.

Download your customer's 10-Ks, 10-Qs and annual reports. In the management discussions and shareholder letters you will find your customer's view of the road behind and the road ahead - recent and long-term results, and short- and long- term goals. Did you know that you can also find out what your customer gets paid to do? Download the proxy statement and read the compensation committee report.

Now for the mind-reading part. What do the top executives get paid to do? What executive team (plus the direct reports, and the folks who report to those direct reports) ever focuses on anything other than what they get paid to do? The first answer gives you a significant glimpse into the mind of your customer. The second helps you check your assumptions.

While you're psyching yourself up and trolling LinkedIn for your next call, spend the time to research the public reporting and answer those two questions. Use your answers to prepare how you will explore your customer's interests when you meet them.

I'm interested to know how this works for you on your next few sales calls. If it does anything less than focus you and your customer on what's important to them and doesn't cause a few of your competitors to melt into the woodwork, I'll be very surprised.

Welcome to the Sales Cafe, our new name for the Random Thought Generator. Until now, this blog focused, as the title implied, on ideas of interest we wanted to work out in writing. The purpose of the Sales Cafe is to focus on sales and the universe that surrounds the people who practice and manage it. This is where we spend much of our time as well. 

We aim to fill a tall order here. The blogsphere does not lack for sales blogs, but then the real world doesn't lack for cafes. Everybody has their favorites and some of them have something special going for them. That's what we hope to build; someplace special where you can stop in on Tuesdays and Thursdays for thought provoking information. Think of it as your drive-in, take-out sales blog, where you can come by to learn something, change something or try something. 

Our writers sell, market, manage, and consult for a living. They practice in very interesting and challenging environments, large and small, simple and complex, mainstream and cutting edge. We think there's a lot to share. Between us, we've covered just about every industry and just about every position in sales and marketing, so we think the perspectives will be refreshing and most of all get you to think. 

Here at ELA, we're driven by our mission to make people smarter about their business, and we hope on your trips through the Sales Cafe you will walk out feeling smarter than when you came in.

Today, Erik Sherman writes about Apple's success with the iPad on BNET.com and we think it's a perfect example of the Outside→In™ approach in action:

 Apple's iPad Is Wildly Successful Because... Apple Actually Thinks About Users

Though Mr. Sherman is referring to product development, Apple's combination of development and marketing translates to an enormous rate of sales for the company. He lists some of the reasons for Apple's home run with the iPad:

"Apple succeeds because it delivered the following:

• an easy interface
• uncomplicated operation
• relatively light weight
• long battery life"

It's not the first time Apple has struck a chord with consumers. (How many iPods do you have in your home? At last count, there are 5 in mine.) It's amazing what can happen when you listen to your customers--in this case, an entire marketplace--and act accordingly. Eventually, we will all be working on Pads, whether they carry the Apple logo or not.

By Jim Horan

It must be something about my background or upbringing. When I hear “supervision” and “accountability,” I go to the negatives. When I think of supervision, I think of hall monitors, playground supervisors and prison guards. When I think of accountability, I think of disappointment, warnings, bruised egos, reprimands, enforcement, retribution and big brother.

If you find yourself obsessed with accountability and supervision, I question five things:

1. Did you hire the right people?
2. Do your managers know how to lead?
3. Are you focusing on the right things?
4. Does everyone in your business understand who the customer is and what benefit the customer is expecting from your products and services?
5. Does everyone in your organization understand his or her role, responsibilities and outcomes?

These are big questions. Few of us, if pushed to answer honestly, would be able to give a resounding yes to all of them. So the question is, do you have processes to assess these issues, and action plans for continuous improvement? If not, are you just hoping the problems will go away?

So how do we manage a sales force we don’t see eight hours a day? What is the proper role of supervision and accountability in this 21st century?

My philosophy is simple: Help people be the best they can be and find the right work! I believe when people find the right work, in the right environment, properly encouraged and supported, they need little supervision. They manage themselves and hold themselves accountable to a much higher standard than you or I ever would. Your top producers do this; you just wish everyone did.

This type of relationship, in my opinion, starts with ensuring the people you select truly understand the nature of the work they are going to do and know it’s a good fit for them. How do you do that? Explain the job, the role, the work. Explicitly describe who your business serves and what your clients expect. Be very clear about the outcomes and results you expect, and share stories about people who have been successful and why.

Now here is a radical suggestion! When you think you have found the right person and you’re ready to make an offer, ask him or her to write a business plan — concise and to the point — for the new job. Buy a day’s worth of his or her time at market rates, and don’t be cheap.

Here is what you will learn from this process. The individual will either embrace this process or not. That alone will tell you a lot. When you read the plan, you will learn if he or she heard, understood, agreed and knew how to pursue the opportunity. You will also learn a lot about how he or she thinks and plans to act. You will be able to make a much more informed decision about whether this person is a good fit for your company. And you will have a much better idea of how much energy you will have to spend supervising and holding this individual accountable.

Enforcement is a drag; leave it to the police! Encouraging, supporting and watching your people grow and prosper is the ultimate work. Make better hires, and maybe “supervision” and “accountability” will drop from your vocabulary.

Jim Horan is the president and CEO of The One Page Business Plan Company.

By Elisabeth Watson

“Your hold time will be approximately 87 minutes.”

Who likes to hear that? Certainly not your customers.

We spend so much time (or we should) on training customer service people or sales reps or both. We study our potential customers’ responses to every possible method of engaging with them. We tweet, we follow, we friend, we call, we don’t call, we do whatever we think is possible to convert a prospect to a customer.

And then we put them on hold.  Or process their return in 4-6 weeks. Or refer their questions to someone who has no understanding of the product or how they use it.  After the romance of the sales cycle, that is more than a little abrupt.

We’ve done the hard part, convincing someone to buy from us, but then we often drop the ball. Revenues, especially new revenues, are the Holy Grail and it’s easy to forget that the cheapest and the easiest sales come from our existing customers.  And no matter how relevant our collateral or how effective our message, referrals are our most credible sales resource. It’s vital that we make it easy for our customers to pass along those referrals, long after they’ve signed the contract and committed to our products and services.

So how do we ensure that our customers have a great experience throughout the lifecycle?  By applying that old management adage, what gets measured gets done.  We need to evaluate each aspect of the customers’ experience from their perspective and look at how it impacts the customer experience—from that first call through every interaction.  We forget that our cost centers touch the customer, too. As Nigel Blair-Johns, Operations Manager at HP often reminds me, “Paying the bill is part of the customer experience.”  If our invoices are inaccurate or not timely, paying us can cost the customer money, not to mention frustration.

I know, I know, you can’t spend money and time on those cost centers. You need to focus on revenue. This economy is brutal.  I understand.  But.  Yes, but.  You can start with something as simple as your attitude.  Look at each of your processes from your customer’s perspective.  Just for a minute, stop channeling your accountant and consider ALL of your organization’s customer touch points.  Are any of those customer experiences less than great?  If so, that experience is hurting your customer retention, not to mention your brand.

Are you thinking that good service costs more than bad service?  Maybe, maybe not.  A customer-focused invoicing process, supported by reasonable technology, might mean fewer interactions, electronic funds transfers, and improved DSO (Days Sales Outstanding). That translates into lower costs and faster access to cash, which will enable you to return to channeling your accountant.

Reviewing, analyzing, and updating your processes, in the context of your customer experience, could not only improve your top line, but will help your bottom line as well.  What if you cut your fulfillment and invoicing costs by 20%?  What if accounts receivable process made your cash available 3 days sooner?  What if you cut an FTE from your invoice processing staff?  Or redeployed that FTE from problem resolution to reporting or fulfillment?  What if you could cut your accounting error management by 5%? That would be good news, but what’s even better?  Lots of pleasant encounters with—and, maybe even a few referrals from—those people you worked so hard to sell, your customers.

It seems that some people were born with the genetic makeup to do their job. A case in point is the New York Times crossword editor Will Shortz. Mr. Shortz has gained prominence in his job as the puzzle king for the past 16 years at The Times and was the subject of the 2006 documentary about crossword puzzles, Wordplay.

For me, reading his story (which you can see at Talk to The Times: Crossword Editor Will Shortz) brought up the inevitable question, can you excel at your job if you are not predisposed in some way to that job? Do you have to be "born to sell" in order to be a successful sales leader?

What do you think?

Did you know that people who hold a cup of coffee or a hot drink are more prone to agree to things than people with a cold drink?

This tip, called the Coffee Cup Effect, came from the Twitter feed of @atra_intelexis (Alfredo Trabulsi) and it's had an extraordinary effect on my day, making me wonder:  What other things can we do to help people say Yes to us?

If we are in sales or marketing, it’s our job to make people agree to what we are offering them, whether it's a specific product, service or idea. I suppose the best place to start is to be agreeable ourselves. The next step, it seems, is to extend that feeling and proffer something warm and sweet. One successful sales person I know carries a large bag of Tootsie Pops around with her and hands out two with her business card. “Who doesn’t like a Tootsie Pop?” she asked me. And, by her sales results, she’s on to something.

I know that bringing chocolate and sweets to a meeting makes people more agreeable—especially during the mid-afternoon slump time. The word "Free" gives people an all-over warm feeling, too, as does the sound of their own name. (This depends on the tone of voice, however. Hearing my name spoken in a condescending way makes me quite disagreeable.)

In the end, it’s whatever you are selling that must light the ultimate sales fire for the customer. Without a strong product, service or idea, you just might leave them cold.

What do you do to get a prospect or customer to warm up to you?