selling

What are you Really Selling? (prospecting tips included)

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It is interesting to see people in Sales and Marketing still focusing on features, performance, cost, and even value without creating linkage to what that means to a company from a business perspective. Once you understand what you are really selling it is possible to connect with prospects in a meaningful way that can help you both determine the potential fit.

Pot of GoldSales Qualification is essential for both efficiency and effectiveness. Effectiveness is all about results, and efficiency is all about achieving those results with the least amount of time and effort. This doesn’t mean that we are looking for a lazy approach to find a win. Rather, it is about identifying repeatable patterns of doing something that circumvents unnecessary activities, time spent, and associated costs. Being good at qualification doesn’t mean that you will be good at closing, but it is tough to become a good closer without having the number of “at-bats”  that good qualification leads to.

The way to help yourself understand what you are selling is to view things from your prospect’s perspective. What struggles are they likely facing? Where are the greatest opportunities for their type of business? What is the difference between your prospect company and its main competition? This analysis requires a general understanding of the vertical and more specific understanding of the prospect company and 2-3 of their main competitors.

Now that you have identified an area where you believe there is a good fit the next step is to develop your target list for that profile. Much of the information you need can be found in Corporate filings (10-K and 10-Q filings for public companies, and Form 5500 filings for companies with a 401(k) plan – especially useful for private companies), websites like Owler.com and SimilarSiteSearch.com, and from social media sites like LinkedIn.com and Facebook.com). Then search for people in areas that are most likely affected and look for titles that are likely Stakeholders or Decision Makers.

The next item to focus on is messaging. Below are a few examples from my career –

  1. Analytics & Big Data – The focus here is often on data volume, the currency of the data, speed of queries, cost, maintenance, and downtime. Those things become important later in the sales discussion, but initially, companies want to know what problems your product or solution will solve.
    • Some of my fastest deals sold because I demonstrated ways to make better decisions faster and/or identify problems before they were had the chance to become major problems. Avoiding problems and unplanned outages were key parts of the messaging.
    • In one case I was able to close a significant deal in less than three months by focusing on how a company could provide five years of transactional data for their customers to use to make purchasing decisions in less time than it took the current system to analyze six months of data. Their sales increased after implementing the revised system. Helping their customers make better buying decisions faster was the winning message.
  2. Embedded Products – While many companies focus on APIs, features, or cost per unit, I would focus on how the product I was selling made things better and easier for Customer Support and Customer Satisfaction. Things like stability, lack of maintenance required, data integrity, performance over time, messaging when something abnormal or concerning was observed, etc.
    • I sold a $1.1 million deal in less than two months to a medical device company by focusing on the life of those devices often being 10-15 years and how their customers need to be assured that the results will be the same from machine-to-machine, even if one of those machines is much newer than the rest of the machines. Consistency over time was the winning message here.
    • After being approached by a Defense Contractor for a relational database product for a new Flight Simulator system I changed the discussion to the complexity of flight control systems, the need to correlate 30+ operational systems in real-time, and the importance of taking a verbal command and translating it to specific commands for each system. That led to the sale of a NoSQL product that was ideally suited for this complex environment. The idea of letting our software handle the really complex work helped win this deal.
  3. Consulting Services – This is not contracting or body shop services (commodities), but true Business and Technical Consulting services that were high visibility and high impact. In these cases expertise, experience, and having a track record of success in different but demanding scenarios provided confidence. Often these were multi-phase engagements to first prove our value before making a large commitment.
    • In a bid against two well-established competitors, we won a deal with a large Petroleum company that was nearly $500K. The proposal included information that we uncovered about the system and use case and later verified with the prospect, a section on our people and some past projects, and then a high-level project plan with firm-fixed pricing. We won the bid and I later found out that our cost was $50K higher than the largest competitor and more than $100K more than the other competitor. The customer told me that, “Your proposal demonstrated the understanding of who we are and what we need, and that confidence provided the justification to select your company and pay a premium to have the job done right the first time.”
    • My first million-dollar deal was in the 1990s and was with a company that we demonstrated our ability to solve problems. They knew they needed assistance but were not exactly sure where. I created a “Pool of Days” concept that provided flexibility in the work performed (task, deliverables, and scheduling) but had minimum monthly burn rates and an expiration date to protect my company. This led to many other deals of this nature with other companies. Flexibility and the ability to accommodate changing needs without introducing significant risk or additional cost was the winning messaging here.

 

As you see from these examples the common theme is helping companies solve their specific business problems. Even in cases where technology was central to that message the focus was always on better results for that prospect and their customers. Value is important but the results matter even more for most purchasing decisions.

Nobody wants to be responsible for taking a chance on a new vendor and be responsible for a high-profile failure. Helping instill confidence early on makes a huge difference and following-through to successful implementation results in happy customers who become great customers and provide important referrals.

It all starts by selling what you know you can do from a business perspective for your Prospects to make their lives easier and business better, rather than selling what you know you have from a technical perspective.

Doing it like Mike

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My son is playing basketball this year (previously he played football and soccer), and recently we went shopping for new shoes. Each store had pictures of Michael Jordan. I used to love watching MJ play with the Chicago Bulls. He was the epitome of skill and professionalism. To this day he inspires me.

"The Chart" - from Chris Lytle's MAX Sales Training program
“The Chart” – from Chris Lytle’s MAX Sales Training program

Some people are just naturally talented, but even they need to work hard to maximize their potential. Hard work is an important aspect of being the best of anything, but it takes more than that. It takes doing things in a manner that allows you to continuously improve, as well as a positive mindset and commitment to success. Once people reach that level of high performance their job begin to look easy, and they may even appear to be “naturals” – just like Mike.

Most of my career changes have been unplanned. Opportunities presented themselves, the job seemed interesting, and before I knew it I was fully immersed in something related but different.  Many of these things have not come naturally to me. Each time I have focused on understanding the requirements for doing the job well, then look for examples of exceptional performance, and then create a systematic approach that allowed me to measure performance and identify areas of improvement.

Sales has been a large part of my consulting management jobs since the mid-1990’s, but it wasn’t until I owned my own company that this became a true priority.  I ran across a good book, The Accidental Salesperson by Chris Lytle.  Back then Chris Lytle had “MAX Training,” and a large part of their focus was increasing your “level” with regard to Prospect and Client relationships. The training was good, and was complementary to systems like Miller Heiman. What each of these systems do is help you prepare, plan, and then execute to the best of your ability. And like basketball, it takes practice to master (although you can get immediate value, so don’t wait until you have finished to begin trying).

Regardless of the system used, what is important no matter what you are trying to be the best at is to look at both positive and negative examples to see what you can learn from them.  There are lessons to be learned everywhere! Understanding what makes it good or bad helps you improve as part of a continual process. Incorporating new tools and techniques into what has already been proven to work for you can improve your game. Going back to the sports analogy, this could be part of what made Michael Jordon so good. He would see something interesting, improve it, and then make it his own.

For example, I get a lot of really horrible sales calls and email. The people have obviously not done any preparation, do not know anything about me or the company I work for, and often remind me of why I stopped listening to them by referring to the number of times they have tried contacting me. On the other hand, there are some really talented sales professionals who have done their homework, understand their products and the competition, and have an idea about why what they are selling should matter to me.  I speak with them and occasionally buy from them. And in either case I provide my team with real life examples of good and bad sales techniques.

So, think of the best example of whatever it is you do, and see what you can do to become more like them. This isn’t about imitation, but rather about uncovering the secrets of their success and learning from them. And, have some fun doing it!

Mind of a Champion – Michael Jordan training for success

Acting like an Owner – Does it matter?

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One of the biggest changes to my professional perspective on business came during the seven years that I was running my own consulting business. Prior to that I had worked as an employee for midsize to large companies for ten years, and as one of the first hires at a start-up technology company. I felt that the combination of doing hands-on work, managing, selling, and helping establish a start-up (where I did not have an equity stake) provided everything needed to start my own business.

Well, guess what? I was only partially correct. I was prepared for the activities of running the business, but really was not prepared for the responsibility of running a business. While this seems like it should be obvious, what I’ve seen many times since then is that small business owners usually focus the majority of their efforts on growth / upside. That type of optimism is important for entrepreneurs – without it they would not bother putting so much at risk. I will write more posts about my business ownership experiences later.

People tend to adopt a different perspective on the decision making process once they realize that every action and decision can impact the money moving into and out of their own wallet. Even in a large business you can typically spot the people who have taken these risks and run their own business. It’s more than just striking out on your own as a contractor or sole proprietor. I’m talking about the people who have had employees, invested in capital equipment, and went all-in. These are the people thinking about the big picture.

What do these people do differently than people who have not had this type of experience?

One of the biggest things is they view business in terms of “good business” and “bad business.” Not all business is good business, and not all customers are good customers. There needs to be a fair commercial exchange where both sides receive value, mutual respect, and open communication. You know this is working when your customers treat you like a true partner (a real trusted advisor) instead of a vendor.  A business is in business to make money, so if the work is not profitable it is very likely that you should not be doing it. And, if you are not delivering value to an organization it is very likely that you would be better off spending your time elsewhere – building your reputation and reference base.

When you are not thinking or acting like an owner it is all about the sale and your commission. Selling products and services that people don’t need, charging too little or too much, and making promises that you know will not be met are typical signs of a person who is not thinking like an owner. Their focus is on the short-term, and they often feel that someone else will fix this once it becomes their problem.

How you view and treat employees is another big difference. Unfortunately, even business owners do not always get this. My feeling is that employees are either viewed as Assets (to be managed for growth and long-term value) or Commodities (to be used-up and replaced as needed – usually viewed as fungible and treated as if they are easily replaceable). Your business is usually only as good as your employees, so treating them well and with respect creates loyalty and results in higher customer satisfaction. Successful business owners usually look for the best person out there, and not just the most affordable person who is “good enough” to do the job. The flipside is that you need to weed out the people who are not a good fit quickly. Making good decisions quickly and decisively is often a hallmark of a successful business owner.

Successful business owners are generally more innovative. They understand the need to find a niche where they can win and provide good and/or services that are different and often better than what larger vendors offer. Sometimes this means specialization and customization, and sometimes this means more attention and better support. Regardless of what is different, these people are observant of the small details, understand their target market, and are good at defining a message that articulates that difference. These are the people that seem to be able to see around corners and anticipate both problems and opportunities. They do this out of necessity.

Former business owners are usually more conscientious about money, taking a “my money” perspective on sales and expenses. Every dollar in the business provides safety and opportunity for growth. These usually are not the people who routinely spend hundreds or thousands of dollars on business meals, or who take unnecessary or questionable trips to nice places. Money saved on things like travel or training expenses can be invested in new products, features, or marketing for an organization.

While these are commonly traits found in successful business owners, it is possible to develop them even if you have never owned a business. Do you understand the big picture vision and mission of the company that you work at? Who is your competition and how are they different? How is their messaging different? When selling, are you focused on delivering value, developing a positive reputation within that organization, and profiting on the long-term relationship? When delivering services, is your focus on delivering what has been contracted – and doing so on time and within budget? Are your projects used as examples of how things should be done within other organizations?  Are you spending money on the right things – not wasteful or extravagant?

These are all things that employees at all levels can do. They will make a difference and will help you stand out. That opens the door to career growth and change. And, it may get you thinking about starting that business you have always dreamed of. Awareness and understanding are the first steps to change and improvement.

 

There’s a story in there – I just know it…

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I was reading an article from Nancy Duarte about Strengthening Culture with Storytelling, and it made me think about how important a skill story telling can be in business, and how it can be far more effective than just presenting facts / data. These are just a few examples – I’m sure that you have many of your own.Storytelling

One of the best sales people that I’ve ever known wasn’t a sales person at all. It is Jon Vice, former CEO of the Children’s Hospital of Wisconsin. Jon is very personable and has the ability to make each person feel like they are the most important person in the room (quite a skill in itself). Jon would talk to a room of people and tell a story. Mid-story you were hooked. You completely bought what he was selling, often without knowing what the “ask” was. It was amazing to experience.

Years ago when my company was funding medical research projects, my oldest daughter (then only four years old) and I watched a presentation on the mid-term findings of one of the projects. The MD/Ph.D. giving the presentation was impressive, but what he showed was slide after slide of data. After 10-15 minutes my daughter held her Curious George stuffed animal up in front of her (where the shadow would be seen on the screen) and proclaimed, “Boring!”

Six months later that same person gave his wrap-up presentation. It was short, told an interesting story that explained why these findings were important, laying the groundwork for a follow-on project. A few years later he commented that this was a very valuable lesson because the story with data was far more compelling than just the data itself.

A few years ago the company I work for introduced a high-performance analytics database. We touted that our product was 100 times faster than other products, which happened to be a similar message used by a handful of competitors. In my region we created a “Why Fast Matters” webinar series and told the stories of our early Proof of Value efforts. This helped my team make the first few sales of this new product. People understood our value proposition because these success stories made it tangible.

What I tell my team is to weave the thread of our value proposition into the fabric of a prospect’s story. This both makes us part of the story, and also makes this new story their own (as opposed to being our story). This simple approach has been effective, and also helps you qualify out sooner if you can’t improve the story.

What if you not selling anything? Your data has a story to tell – even more so with big data. Whether you are analyzing data from a single source (such as audit or log data), or correlating data from multiple sources, the data is telling you a story. Whether patterns, trends, or correlated events – the story is there. And once you find it there is so much you can do to build it out.

Whether you are selling, managing, teaching, coaching, analyzing, or just hanging out with friends or colleagues, being able to entertain with a story is a valuable skill. This is a great way to make a lot of things in business even more interesting and memorable. So, give it a try.

What’s the prize if I win?

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In consulting and in business there is a tendency to believe that if you show someone how to find that proverbial “pot of gold at the end of the rainbow” that they will be motivated to do so.  Seasoned professionals will tend to ask, “What problem are you trying to solve?” to understand if there is a real opportunity or not. If you are unable to quickly, clearly and concisely articulate both the problem and why this helps solve that problem it is often game over then and there (N.B.  It pays to be prepared). But, having the right answer is not a guarantee of moving forward.

Unfortunately, sometimes a mere pot of gold just isn’t enough to motivate. Sometimes it takes something different, and usually something personal. It’s more, “What’s in this for me?” No, I am not talking about bribes, kickbacks or anything illegal or unethical. This is about finding out what is really important to the decision maker and helping demonstrate that this will bring them closer to achieving their personal goals.

Case in point. Several years ago I was trying to sell a packaged Business Intelligence (BI) system developed on our database platform to customers most likely to have a need. Qualification performed – check. Interested – check. Proof of value – check. Close the deal – not so fast…

This application was a set of dashboards with 150-200 predefined KPIs (key performance indicators). The premise was that you could quickly tailor and deploy the new BI system with little risk (finding and validating the data needed was available to support the KPI was the biggest risk, but one that could be identified up-front) and about half the cost of what a similar typical implementation would cost. Who wouldn’t want one?

I spent several days onsite with our client, identified areas of concern and opportunity, and used their own data to quantify the potential benefit. Before the end of the week I was able to show the potential to get an 8x ROI in the first year. Remember, this was estimated using their data – not figures that I just created. Being somewhat conservative I suggested that even half that amount would be a big success.  Look – we found the pot of gold!

Despite this the deal never closed. This company had a lot of money, and this CIO had a huge budget. Saving $500K+ would be nice but was not essential. What I learned later was that this person was pushing forward an initiative of his own that was highly visible. This new system had the potential to become a distraction and he did not need that. Had I been able to make this determination sooner I could have easily repositioned it to be in alignment with his agenda.

For example, the focus of the system could have shifted from financial savings to project and risk management for his higher priority initiative. The KPIs could be on earned value, scheduling, and deliverables.  This probably would have sold as it would have been far more appealing to this CIO and supported what was important to him (i.e., his prize if he wins).  The additional financial savings initially identified would just be the icing on the cake, to be applied at a later time.

There were several lessons learned on this effort. In this instance I was focused on my own personal pot of gold (based on logic and common sense), rather than on my customer’s prize for winning. That mistake cost me this deal, but is one I have not made since (which has helped me win many other deals).