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Friday, May 22, 2009
Inside Growth Strategies
Help sales avoid panic-driven mistakes
The Murphy brothers' software-selling family tree
MHT Editor Doug Banks on NECN: How companies are using social media
MHT Sales Roundtable: Web 2.0, Meet Sales 101
It’s a tough selling environment today, and in the face of real challenges too many high tech sales reps are making critical mistakes that cost them and their company money. As managers, we need to recognize that our sales teams face a choice every day: stay and “fight” through the tough times or take “flight” emotionally or physically.
This challenge is especially true for high tech companies whose products often have high price tags or where a need must be created for new and innovative products and services. As managers, we need to watch for these panic-driven mistakes and act fast to address them and to support the salesperson emotionally.
Mistake 1: “Nobody is buying”
If you haven’t heard this, you’re either very lucky or deaf. This kind of negativity can be so debilitating that it causes sales people to shut down, to just go through the motions. In the face of reduced budgets, they fail to demonstrate that their product will increase efficiencies and produce results. In other words, they forget to sell the return on investment that can create a budget where none existed.
The Answer: Share every sales success story no matter how small. Invite a customer to a sales meeting to talk to the team about why they bought, what value the purchase brought to the company and how the company has benefited.
Mistake 2: Failing to qualify leads
Many tech sales reps fall into the trap of believing that any lead is a good lead. They are so desperate for a “live one” that they will waste time and energy following bad leads.
The Answer: Give your team the approval to not chase every lead. Instead of asking, “What are you going to do to sell this guy,” ask the salesperson what they’ve done to qualify the lead and why they believe it is a qualified lead.
Mistake 3: Shortening the discovery phase, moving too quickly to the product presentation
Panicked salespeople will try to get to the product presentation quickly so they can ask for the close quickly. They miss the customer’s real needs and they miss the cues that will tell them how to customize their pitch to a specific need.
The Answer: Stop conducting “What did you do this week?” sales meetings and turn them into training opportunities. Remind them there’s a sales process for a reason and diminishing a step in the process will not close more business. Demonstrate that discovery itself is a process of “gaining agreement” and of leading a customer to acknowledge a problem for which you have the solution.
Mistake 4: Failing to adjust to the new reality, failing to change
What you’ve always done may not work now. Certain aspects of selling never change, but how you do it does change. A recession should push us to examine every aspect of our process, product and marketing.
The Answer: How we present our product/service is going to be different. Prospects are afraid, so products or services should be presented in a way that alleviates fear as much as possible. Use new descriptors and cite benefits in terms that matter to the prospect.
Mistake 5: Failing to respond appropriately to a slower customer decision making process
Decisions are taking longer. We need to adjust to that reality and build strategies for it. Calling or e-mailing the prospect constantly will not force a faster decision.
The Answer: Accept that, in a recession, your prospects are going to rethink every purchase. Be darn sure you can clearly and effectively state your value proposition in terms relevant to your buyer. Stay in front of the prospect by adding value during the decision making process, such as a seminar or a free trial.
Mistake 6: Failing to ask for help
In our culture asking for help can be viewed as a sign of weakness. But you can’t help your team if they don’t ask.
The Answer: Create a positive environment that encourages coaching and mentoring among peers. In private one-on-one meetings, ask salespeople how you can help them. Avoid group discussions that require them to come “out of the closet” about their fears.
It is management’s responsibility to prevent these and other mistakes that crop up. Keep a watchful eye for signs that panic-driven mistakes are occurring.
Shelley Hall is an entrepreneur and principal and managing director of Catalytic Management in Stow.
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