Wednesday, November 23, 2011

Closing the Deal

Less product information is more

By Mike Myers, vice president, Winning Inc.

When I started selling technology in the late eighties, I couldn’t wait to show a prospect a demonstration. My belief was that the prospect would be blown away by the technology and fall all over themselves to buy. In many cases, I would do my best two-hour demonstration, and then at the end of the day the prospect didn’t bite. I assumed that if I just gave them a lot of information up front they would see the value and be more likely to buy.

When I entered the sales training business and became a Sandler Sales Trainer, I realized I was looking at product knowledge all the wrong way. While it is important to share information with the prospect, when and how you share that information will ultimately determine the sale. Our knowledge and expertise is our leverage in the sales process and we need to give this information to the prospect at the “right” time to maintain control of the relationship from the beginning to the end.

Here are four ways to use product knowledge:

1.    Information as leverage – Product knowledge is our leverage. The minute we give the prospect what they want early in the sales process – such as a quote, a proposal or a demonstration – they don’t need us anymore. Once they get our information, our ability to control the sales process and the outcome is diminished. For example, if we want to meet with the final decision-maker, the prospect has no incentive to do this. You need to understand the prospect’s issues and challenges, their budget and the decision-making process before sharing product information and your possible solutions.

2.    Less is more – In my practice, I work with many software companies. When we talk about their specific technology, I always ask the salespeople what percentage of the product features their customers actually use. The usual answer is around 10 percent to 15 percent. Discussing features prospects don’t care about will usually lead to more objections and can ultimately reduce the value of the product in the prospect’s eyes. Based on this fact, you need to focus only on those features and benefits that they are really interested in to increase your probability of success.

3.    Use product knowledge to ask good questions – Many salespeople don’t realize that the true value of product knowledge is that it gives you the ability to ask better questions. You are best able to uncover the prospect’s reasons to buy when you understand how your product or service impacts their business processes. Using your product knowledge to gather information will help you focus on a specific solution to cure your prospect’s pain.


4.    Use product knowledge to increase perceived value – The perceived value of a good or service is usually greater before you get it than after. As a part of our sales methodology we have a rule, “Sell Today, Educate Tomorrow.” We want to give the prospect enough information to buy and then educate them once they become a client. Following this rule will help prevent unnecessary roadblocks and objections and help both you and the prospect focus on the relevant product information.

Clearly understanding the business challenges that your product offering will solve before giving up information can help you keep the prospect engaged and qualified throughout the sales process. It is the answers you receive rather than the features and benefits you present, that will determine if and when the relationship should move forward. If you use product knowledge effectively you will optimize your knowledge, time and resources.
 

Mike Myers is the vice president of Winning Inc. a sales and management skills development firm that specializes in working with a variety of organizations from business owners to small companies and large corporations. He can be contacted at mmyers@winninginc.com.