Niche Marketing Matters

The best advice I ever received was to slow down.

Like many rookie sales people, I was anxious for success—so I worked harder and faster than everyone else. While I hit my numbers easily, I also ran out of people and companies to call. Also, I was exhausted.

Watching me with amusement was an older, battle scarred salesman named John Randall. In contrast to my frantic pace was his peaceful approach to selling—nothing seemed to phase him and he was never in a hurry. Yes, he hit his numbers year after year.

One day when he saw that wild-eyed look on my face, he pulled me aside for cup of coffee. “Slow down or you might miss something”. Then he walked away.

Not sure of exactly what he meant, I went back to work and tried to slow down. I found that by slowing down I was making few errors in my proposals. When I slowed down, I listened more and talked less. When I did things slower I felt more in control. By slowing down I sold more.

As Master Kan said in the TV series Kung Fu, “Slow down Grasshopper”.

John Bradley Jackson
© Copyright 2009 All rights reserved.

It seems that many employers in the new economy expect you to work like “your hair is on fire”. This most applies to sales people.

In the era of Customer Relationship Management (CRM) software, activity is king. Activities include telephone calls, emails, proposals, face-to-face meetings, product demonstrations, etc. The thinking is that if many sales activities are good, then more activities are even better. The message chanted to sales people is to work faster, harder, and longer.

While I am a proponent of activity being the enabler of sales results, I feel strongly the quality of the activity far outweighs the quantity of the activity. Regretfully, many sales managers driven by the need to increase revenue can put too much emphasis on the number of activities and the documentation of these activities.

A few years ago, FedEx had such a mindset about sales activities for their B2B field sales force. Their sales force was put under tremendous pressure to create activities and log them all in the CRM system so that management could track the trends and forecast better. In practice, the CRM system was so cumbersome and time consuming that the average sales rep was spending about 8-10 hours a week entering their activities in the CRM. Ironically, sales were going down instead of up.

While it took a few months to figure it out, FedEx management ultimately determined that their number one sales activity was entering sales activities in the CRM. How brilliant is that? Needless to say, CRM data expectations were later streamlined. Yes, sales increased when the sales force devoted more time to selling.

A better message to send your sales team is to slow down. Make the most of your customer contact by listening carefully and focusing on the customers’ wants and needs. Trust and respect the sales process and you will be rewarded.

John Bradley Jackson
© Copyright 2009 All rights reserved.

Talk about a high-class problem. You have delivered a specialized solution in a niche market while doing all the right things. What happens? You land an elephant for a customer who has an insatiable appetite for your product or service. By comparison, your other customers look like mice. You hate to admit it, but this customer has incredible influence over your day-to-day decisions, as well as your long term plans for the firm. Secretly, you live in fear that you might lose this giant customer overnight and find yourself out of business.

This is hard one for a small firm. I have seen many small firms prisoner to the revenue stream from one key customer. The reliance on a huge customer can impact the small firm’s cash flow and control its day-to-day decisions, if not its destiny. If the big customer does not pay its bills on time, the firm can struggle to make payroll. When the big customer becomes too dominant, it can direct the day-to-day scheduling of activity, which might sacrifice the needs of other customers. At some point, the small business seemingly has no control over its destiny since the big customer is calling all the shots.

A general rule of thumb is that no one customer should account for more than 25 % of your sales. If a large customer abruptly drops you, you can still right-size your operation until you can find other sources of revenue. Even 25% makes me shudder, but in most cases, you can still adjust to the loss of this dominant customer. It will hurt, but the firm could still survive, presuming that you moved quickly enough.

John Bradley Jackson
© Copyright 2009 All rights reserved.

Times are tough—we can all read the headlines. And selling is tougher than ever. The typical sales management reaction is to push the sales reps harder and demand more sales activity. Some managers will remind the reps that everyone’s job is on the line.

So guess what happens? The reps become even more aggressive and try to push the customer to buy now regardless if it makes sense or not to the buyer. On the customer side, the buyers’ jobs are also threatened and they find the harassment from their once friendly vendors revolting.

The truth is that all the pushing by the sales rep does not really work. It comes across as selfish and self-serving. It only serves to alienate the customer. The customer shuts down and does not return calls.

So what do you do? My recommendation is to focus on the buyers needs and put your product pitches aside. Turn off the PowerPoint and close down the laptop. Acknowledge that times are tough and remind the customer that “we” are in it for the long haul. Look for common ground and seek ways to help them. This is a time for relationship building and for networking. Think of others first. Help when and where you can. Stay in touch but don’t harass. Be genuine.

The orders will come back eventually, so make sure you will be welcome when they do.

John Bradley Jackson
© Copyright 2009 All rights reserved.

Yes, it is hard to lose an order. I hate it also. Yet, losing a sale graciously is the ticket to be considered for the next opportunity.

Sales gurus and trainers have long argued for sales people to always be “closing” and, in effect, to never give up on the order. Positive thinking is a large part of selling and so is assertiveness, but I have found that “No” can be an acceptable answer.

The word “No”, or any objection as far that goes, can be a request for information—thus, it is always appropriate to dig deeper with open ended questions to find out the real concerns behind the sales objection. Yet, there times when your product does not fit, when the customer is not ready, or when the funds are not available for a purchase. Essentially, “No” can mean stop selling now.

“No” means to the seller that you need to focus your energies on other prospects and customers; to the buyer, it means much the same. It is at this point that the skilled salesperson reacts with calm acceptance about the outcome. Rather than pressing harder which might only anger the buyer, the salesperson acknowledges that the conversation is tabled. The words to be said by the seller communicate that you understand. You could say, “I understand” or “I see” or “I can see how you came to that conclusion”.

I recommend taking one more step. I suggest you express “gratitude”. Tell the buyer how thankful you are for being considered. This would also be a good time to acknowledge your appreciation for the relationship with the buyer and the firm—do this only if it is true. If you don’t feel that way, it won’t sound authentic.

This sophisticated salesperson knows that having the chance to do business again is critical to the future. Strong eye contact, a firm handshake and smile will go a long way to making that happen. Consider sending a handwritten note card as a follow up. A polite email of thanks can work, too. Propose a meeting in a few weeks or months to reconnect. Keep the door open.

It just might be your turn next time.

John Bradley Jackson
© Copyright 2009 All rights reserved.

1. My customer moved out of the country without telling me.
2. My therapist told me to take a vacation.
3. My navigation system sent me the wrong way.
4. My suit was at the cleaners and I had nothing to wear.
5. My cell phone battery died and I could not find a pay phone.
6. My laptop had a virus and I could not send the email.
7. The line at Starbucks was really, really long.
8. My password for the WebEx was wrong.
9. My competitor is best friends with my customer.
10. My customer wouldn’t return my text messages.

Got any of your own?

John Bradley Jackson
© Copyright 2008 All rights reserved.

My recent blogs about using questions as a selling tool got many comments from readers who sell to senior executives. I was reminded about how busy C-level execs are these days and how intolerant they are of “discovery” sales calls.

C-level executives (i.e., CEO, CMO, CIO, etc.) need a different sales approach. Gone are the days when the sales rep could have “question and answer time” with the C-level executive to better understand “pains” and key initiatives. Today, this senior-level buyer has no time for such idle banter. The phone is ringing, the Blackberry is vibrating, and the in-box is bulging with unanswered e-mails. Instead, these senior buyers expect you to come in with answers rather than questions.

Therefore, you have to adjust your sales approach. Sometimes you only get one shot with this character, so you have to be prepared. This necessitates that you thoroughly research the customer prior to discussing business. This means scouring the website, the SEC documents (if the firm is public), and calling others in the firm to learn about the real issues at play.

Anyone at the firm can be a source of useful information. The best people to talk with may be the C-level executive’s direct reports. Call them and confide in them that you are meeting the “big guy” in two weeks and that you are trying to figure things out. What are his hot points? What do they recommend that you do to prepare? Who else should you talk to before the meeting? Some of these people actually will actually coach you on how to proceed. It can be that easy.

When you actually get together with the C-level executive, the meeting becomes a forum for you to demonstrate your knowledge of the firm and of the executive’s key issues; you need to provide value to have any chance of continuing the conversation. This will pave the way for a constructive conversation and help move the sale along. This approach is time-consuming, but worth it when selling products or services that require you to call on top executives.

C-level executives are tough to get in front of, but once they get convinced to do business with you, they like to take over the sales process. This is called “transferring ownership” and it is a wonderful thing. It is a magic moment in selling when your customer joins you in the sales process while taking responsibility for the sales itself.

For whatever reason, the customer now owns the sale along with you; the value has been demonstrated to such an extent that the customer takes over and makes it happen. Objections are resolved and the questions have been answered. When the C-level executive has accepted the ownership of the sales process, let him take control; victory is at hand.

The good news: C-level executives want to be sold solutions with value that will help their firm win.

John Bradley Jackson
© Copyright 2008 All rights reserved.

P. S. Thanks to my brother Ross who reminded me what it is like to sell to C-Level execs.

Ever notice that when you go to the doctor, you get asked a lot of open ended questions while the physician says little? Much like a doctor, sales people help buyers with problems by asking questions and saying little. Rather, that is what the good sales people do.

The patient replies with answers which are like objections. The doctor, ever inquisitive and wise, helps the patient make the best choices for a healthier life. At the end of the visit, the patient is given a prescription for medicine. The doctor’s opinion is seldom challenged since we are taught to believe what the “good” doctor says.

When a buyer and a salesperson meet there are also probing questions. The buyer talks the most while the “good” sales person listens and takes notes. With the questions answered, the skilled salesperson normally offers a “prescription” to solve the customer’s problem. Hopefully, the customer buys, but that is not always the case.

If the buyer is not buying the sales person’s medicine it generally means one of two things:

- The customer doesn’t think that he/she is sick.
- The customer doesn’t think that seller is really a doctor.

If the buyer does not feel sick it means that the sales person has not identified the buyer’s needs nor matched them with the benefits of the solution. Sometimes it means that the seller might not be selling to a qualified buyer.

If the buyer does not think the seller is a doctor, it means that they don’t trust you or that they don’t like you. This distrust of the sales person is common since buyers have learned to distrust and even dislike sales people. This is because of repeated negative encounters with other bad sales people who don’t listen and who talk too much.

Try acting like a doctor and not like a sales person. Now cough.

John Bradley Jackson
© Copyright 2008 All rights reserved.

A friend of mine reminded me that selling is not about what you say to the customer, but rather it is about the questions you ask.

Many sales people are in love with their own words and ideas. They are often described as having the “gift of gab” which means that they really just talk too much. Instead of asking open ended questions and listening, talkative sales people talk too much.

They ramble on and on about product features to fill the dead air space (which is extremely uncomfortable for a talkative person). Worse yet, they invariably talk about themselves, which is the last thing that the buyer wants to hear.

Meanwhile, the buyer ultimately buys from the seller who best understands their problems or needs. Of course, you don’t get to understand the buyer’s needs by talking. Great sales people ask questions to learn about the buyer’s motivations, concerns, and desires. It is really that simple.

Ask questions to discover what matters most to the customer. If you must speak, then talk about what matters most to the customer.

John Bradley Jackson
© Copyright 2008 All rights reserved.

Sales people are taught to manage and control the sales process by moving the customer from qualification to presentation to close. While this process accurately describes the activities of the sales person, there is a separate and equally important process at play. That other process is the one in the buyer’s head.

In my view, there are eight steps in the buying process.

1. Attention - It all starts when the buyer has an initial contact with the offering. This contact could be an advertisement, a phone call from the seller, or a referral. Somehow the buyer identifies the offering amongst the thundering herd of products and services.
2. Interest – The buyer sees the possibilities of the offering and begins to understand the benefits. “Hmmm”, says the buyer.
3. Desire – At this juncture in the buying process, the buyer starts to visualize the product helping to solve a problem, provide some utility, or bringing happiness. Things are clicking.
4. Conviction – Clearly the offering makes sense. The research is done and the decision to go forward to buy is imminent. This could really work.
5. Action – Bingo! The buyer steps up and secures the offering. All systems go. We have lift off.
6. Confirmation – The product is used, tested, and appreciated first hand. The seller’s value proposition is fully vetted.
7. Satisfaction – The votes are in and the product is a winner. Repurchasing it is an option.
8. Loyalty – The highest level of happiness with a buyer. At this stage the buyer is actually referring the product and the seller to others. The buyer is an advocate.

Not all buyers reach loyalty. Many never buy while some who do buy have remorse. Yet, this path is real and tangible for the buyer. Unfortunately, many sales people are oblivious to the buying process which is a result of antiquated sales training, selfishness and plain old ignorance.

When you are selling you need to ask yourself what is going on the buyer’s head?

John Bradley Jackson
© Copyright 2008 All rights reserved.