Thursday, November 19, 2015
The Birth of Yellow Journalism
Tuesday, April 21, 2015
Lessons from Kaki King.. and others....
Monday, June 18, 2012
The Ripple Effect
Wednesday, July 9, 2008
Selling in the 21st Century
Selling has changed considerably in the last 10 years. Start-ups have embraced this change because they have to. Older companies are just starting to understand it. This change in driving business, has been brought about to a large extent by the movement away from the concept of “Web 1.0” to “Web 2.0”. The major difference in these two concepts is the Web 1.0 was a more traditional push-pull approach. The idea was to attract eyes to your website and then provide value. This is an electronic form of print advertising, except that there is a lot more real estate to use and a wider geographic distribution. Web 1.0 didn’t fundamentally change sales methodologies. Prospects were attracted to the website, were then pre-qualified by filling out a form and passed to sales as a lead.
Web 2.0 changes that dynamic. Web 2.0 is interactive. The website visitor can change the content by commenting on it. They can add their own spin. Two prospects can debate benefits and add insight for each other. Many Web 2.0 demonstration sites allow the viewer to interact with the demo by inputting their own data. They can have a dialogue with the presenter if there is one. Fundamentally, a prospect can experience the first 2 or 3 steps of the sales cycle without engaging a live person. When the lead gets to sales, the prospect is much more informed and qualified.
Using blogs, twitters and wikis as part of the marketing and sales strategy has become more commonplace. Letting the marketplace create marketing content through interaction provides deeper insight. Sales has to adjust to this new medium. As the prospects and client collaborate on new ideas and approaches, Sales has to keep up. No longer can they rely on marketing material printed annually for their source of information. Smart sales people have their own blogs and twitters. They are engaging their market to build relationships and find opportunities. Social networks can provide new knowledge on personalities, backgrounds, priorities. Reference selling through social networks is a growing tool.
Hiring salespeople with a defined rolodex and an aptitude for cold calling is old school and ineffective. There are just too many screening processes available to the prospect. The average buyer in inundated with spam and junk e-mail, not to mention telemarketing calls. They have e-mail filters and incoming call identification to help them manage unwanted interruptions.
Times have changed and companies must change with them. Take the time to reevaluate the interaction between clients, marketing and sales. Look for sales people who have embraced the new technologies and know how to use them to drive performance. Have they defined their social networks and do they know if and how these networks affect their performance.
Thursday, June 12, 2008
Driving Mechanisms and Critical Events
This subject has come up a lot lately. It’s interesting how many people in sales don’t understand this very simple concept. If there isn’t a change agent going on in the business, change will not happen. If this change is not tied to a drop dead date, it will not happen in a predictable timeframe. When you say it out loud is sounds intuitive. When I talk with clients and they are lamenting about long sales cycles, unpredictable forecasts and why their sales people can’t close business, my first thought goes to these two concepts. Let me explain further….
Almost every professional sales person has now figured out that they have to solve a business problem to stand a chance of closing the deal. They understand that uncovering and validating the pain is important, if not critical. The top echelon even goes as far as to have the prospect validate the value of the pain in their own words. They get the solution to belong to the prospect by having them articulate the need and the value to themselves of meeting that need. Mike Bosworth in “Solution Selling, Creating Buyers in Difficult Selling Markets (McGraw-Hill 1994) defines a prospect as a buyer who has admitted a problem. So you understand the buying process, you are dealing with the decision maker, they have a budget allocated, you have not only uncovered the business pain, you have gotten the buyer to admit to it and put a value on it. Deal closed, right!
Why is the deal still in the pipeline three months from now? How do you overcome objections when there aren’t any? The checks in the mail.
The reason is there are no driving mechanisms and/or critical events to cause the decision to be implemented. Your prospect, the CFO or the VP of Purchasing has never processed the paper because there are other pressing issues or no issues at all. In James Clavell book “Shogun” (Cornet Books 1975), Lord Toranaga constantly reinforces to Blackthorne that no decision should be made until it has to be made. The driving mechanism might be a face-off with his arch-rival, but there is no attack; therefore no critical event. The same is with sales. There must be a driving mechanism such as a reorganization, critical financial crisis, or new business process. Something which causes the potential buyer to consider alternatives to what they are doing today. This is what got you to the presentation and the proposal, but it won’t close the deal. Too many times we get this far and assume the deal will now close.
This is where understanding the critical event becomes extremely important. If I am going to forecast this sale, I had better understand when and why it’s going to close. If my solution is part of a process required to achieve a goal, I need to work backward from the launch or introduction date of the new process to create my critical event. “If we cannot start implementation by next week, we cannot make the launch date of May 17th.” “If your new plant is scheduled to go into production on July 1st, then we need to….now”
If they want to improve your AR process or their sales process, but haven’t actually committed to when they must accomplish it, then I can’t forecast the close date on my deal. If they want things to be better, but don’t have a time line for making them better, then I can’t predict when they will buy, if ever.
Even when the pain is real and the cost of the solution is less than the problem, without something driving the buyer to implement the solution, there is no deal. This is why opportunities linger in the pipeline for months and then fad away…..