I had a conversation with an interesting individual today.  It was a fascinating conversation–different from so many that I have with sales people.  I was interviewing a candidate for a client.  On paper, the person didn’t seem to be a natural fit, but I was taken by this individual—at least his mentality and attitude.

Too many people I speak with have a sense of entitlement-that they are owed something.  Whether deserved or not, there is an arrogance about their jobs and (always) compensation.  They often refuse to recognize the need to change–even if they see things aren’t working they continue to do the same thing.  Or they feel they are owed a job, it’s benefits, and compensation because they are putting in the effort.

This gentleman was completely different.  He told me his story–started as a technical support person in technology companies.  Several years ago, was laid off.  He shared his struggles in finding someone that would hire him.  He said that he decided to take a different approach, if he couldn’t find someone to hire him for “40 hours a week,” he would find “40 people who would hire him for an hour a week.”

In looking for a job, he came across an advertisement for a sales job.  I won’t go into the details of the job, but in interviewing, he was told he couldn’t do it, that he didn’t have any sales experience.  He convinced the company to give him a chance–he said he was willing to work for 100% commission.  To make a long story short, he struggled building his business.  It took time, he didn’t have a whole lot of support from the company, but they let him act as an independent agent.  Over a couple of years he built a business from absolutely nothing.  He got the most difficult territory.  Because he was an independent agent, he didn’t get a lot of support — so he had to figure things out for himself, create a lot of his own demand generation programs, and drive the business.

In a couple of years, he had built a pretty nice little business.  His results weren’t stunning, but they were good.  He was making a living, paying for his family.  He was looking to the future.  He was investing in himself and his business—hiring some subcontractors to do work that wasn’t a good use of his time.

I talked to him about the job he was interviewing for.  I said, “On paper, you don’t look like a great fit.  You don’t have any experience in the industry and these types of solutions……”  His response was simple, “I’ll figure it out.”  He went on to explain exactly what he would do–he had researched the company, the industry, and had some ideas.  Some of them weren’t right, but his thinking and approach were sound.  He went on to say, “I’ll do it for 100% commission.”  Our conversation went on for a few more minutes. There was no boasting, just a straightforward approach on what it would take, what he would do, and appropriate examples of how he had done similar things in the past.

He was probably the least “qualified” candidate, but he stood out.  Others came from more traditional backgrounds.  They were concerned about their territories, quotas, commission plans.  They were worried about the marketing programs and would they be getting leads.  They had lists of concerns and reservations.  Most had good track records–not outstanding, but satisfactory track records.  They asked the usual questions, and, in the end, none of them struck me as much as this one gentleman.

He didn’t know all the questions to ask.  He didn’t know what other candidates knew, he didn’t have any experience in the industry, he knew he wasn’t a fit.  But he stood out.  He didn’t hide these, he didn’t try to pump up his experience, he didn’t have any unrealistic expectations.  He just had a commitment to do whatever it took to be successful and to figure it out.  His past experience indicated it wasn’t a hollow claim.

Somehow I knew he could figure it out.  Success in the job actually required that.  Somehow, as much experience as the others brought, I wasn’t comfortable they would figure it out.  They needed to much, they had too many concerns—about themselves and their needs.  They were too concerned about the risks and focused on the possibilities and figuring out how to get there.

I don’t know if he’s the right guy, whether there will be an ultimate fit.  There are assessments and other things to go through.  But attitudinally and based on what he had done, he was head an shoulders above everyone else.  There’s something about these people that you have to really respect.  Their willingness to do what it takes, the absence of pre-conditions, the willingness to take risk, the total absence of a feeling they are “owed something.”

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1. Lost Opportunity — It Takes Courage To Say You’ve Made A Mistake

Sales management is one of the toughest jobs around—particularly that of the first line sales manager.  Fundamentally, our job is to maximize the performance of our sales teams–both tactically and strategically.  I read a post, How the VP of Sales can Inspire their Sales Team with 4 Simple Habits.  It got me reflecting on how managers maximize their impact, and where managers should spend their time, not just the Vice President of Sales, but all levels of sales management.

The post offers some interesting suggestions, frankly a number of them I disagree with very strongly.  Let’s start with the areas in which we are in real alignment.

The biggest impact a sales manager at any level can have is by being out with their people in front of customers.  Yet too often, exactly the opposite thing happens–managers spend too much of their time internally focused.  They are chained to their desks, conducting internal meetings, conducting internal reviews, spending time reporting on what’s going on.  Some of this is necessary-we need to communicate to the rest of the organization, we need to get resources and support for our people, we need to get help for our customers.  But too often, managers are consumed with this.  They stop visiting customers, they stop visiting their people.

Being chained to the desk, being focused on reporting, staying internally focused on internal politics do not produce revenue or improve the capabilities of sales people.

Without a doubt, the number 1 and the number 1 priorities of sales managers are Customers and Your People!  If the majority of your time isn’t spent in the field working with your people and visiting your customers, you are prioritizing things incorrectly.  Nothing trumps spending your time here–period.  A number of years ago, I was EVP of Sales for a large organization.   I was scheduled to do a presentation at our Board of Directors.  It was an “important” presentation.  As the day approached, a critical customer situation arose.  It was clear that my involvement was needed and, unfortunately, the only time available with the customer conflicted with my ability to present to the Board.  The decision was easy for me–I conveyed my apologies to my boss, the CEO, and to the Board Members, saying Customers and this situation were more important.  Fortunately, my boss and the board applauded that decision–and we did get the order.

So managers need to prioritize time with customers and with their people.  We need to unchain ourselves from our desks and spend the majority of our time in the field.  Take a moment right now and look at your calendar for the past 30 days.  If you haven’t spent a minimum of 50 percent of your time in the field with your people and with customers, you’re not maximizing your impact.

Now once we’ve committed to spend our time in the field, where do we have the most impact?  This is where I think the article is dead wrong.  It suggests that managers spend the bulk of their time with A players and calling on their customers.  I don’t want to ignore the A players, but this is not where the problems are, this is not where managers have the most impact—both in driving performance of sales people and in contributing to closing business.  By definition, the A players really don’t need your help, so it’s irresponsible to focus the bulk of our time with them, unless all you want is “feel good” meetings.

Where we as managers have the greatest impact and leverage is with our B and even C players.  Maximizing the performance of that huge middle range of our people—the B players has the highest return on a manager’s time.  Working with them, we have so much more impact, so much greater room for helping them improve.  Likewise, the impact we have working with them, on their deals, helping strengthen their competitive positioning and moving the deal through the customer’s buying cycle.  (For a different perspective the value of focusing on your B players, look at what the authors of Challenger Selling have to say.)

It may be more fun hanging out with A players and their customers, but that’s not our job as sales managers.  Our job is to maximize the performance of our organization.  We have to invest our time where it has greatest impact, and frankly where we’re needed.  By  definition, it won’t be with our top performers.

This doesn’t say we ignore our C players either.  Our job is to maximize performance, this includes dealing with performance problems.  Coaching our C players–either getting them to be B’s or A’s, moving them into roles where they can be B’s or A’s (and that may be out of the company) is our responsibility as managers.

Whatever level of manager you are, spend your time where you have the greatest impact–it’s always with customers and sales people.  Once you get out to the field, don’t hide out–head straight for the people and customers where you can bring the greatest value and impact, and where you are most needed.  Don’t ignore your A players or your great customers, but they don’t really need you as much.  It’s your B and C players that need you and your attention.  It’s the tough customers where you can help both your people and the customers the most.

Serve your people, serve your customers, the rest takes care of itself.

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1. Sales Is Changing, Are You Maximizing Your Impact?
2. Performance Management And Accountability
3. Performance Management Friday — Sales/Management Alignment

“What are you talking about Dave?  Qualifying is the job of sales, why are you talking about customers qualifying opportunities?”  It’s absolutely correct, one of the most critical success factors in sales is qualification.  Sales people need to viciously disqualify opportunities that aren’t in their sweet spot.  It may be a real deal, but it’s not your deal–so don’t waste time on it.

But I think sales people need to go further–I think sales people need to hold the customer accountable for qualifying the opportunity—is it real for them?

If we’re doing our jobs as sales people, we’re identifying lots of opportunities to improve their business, to help them grow.  Customers may want to do a lot of things.  They may be interested in engaging us on to discuss solutions.  But wanting to do something is different than having the ability to do something.  Customers need to qualify themselves—sales people need to help them.  Do they really have the ability to drive the change.

There lots of things that could cause a customer to disqualify themselves.  It may be something they want to do, but they have higher priorities.  Their organizations may not have the ability to do it–they need to focus on their readiness first.  It may be critical to them and their function, but it’s not important enough to the organization overall–they may have other priorities or strategic initiatives that take precedence.  They may not have the risk profile necessary to successfully manage the change.  The reasons can go on.

As sales people we can’t answer these issues for the customer and qualify them.  They have to challenge themselves on these issues.  Customers may not know how to do this, they may not even know they must do this.  After all, they may not buy these solutions that frequently, so while they may have the desire to change, the interest in doing something; they may not have the ability to do it.

It’s important to guide the customer through these discussions.  We don’t want to waste our time in  pursuing something that won’t happen–regardless of how compelling our case is.  We don’t want the customer’s expectations to be raised inappropriately–then dashed because they discover they can’t go forward.

Qualification is not just something sales people do.  It’s a shared responsibility, customers have to qualify the opportunity–their ability to do something (more than their willingness), and their desire to work with us in assessing the opportunity.

Are you helping your customer do the right job of qualification?

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1. Customers Don’t Know What They Don’t Know
2. Our Customers Need To Do A Better Job Of Buying!
3. Those Damn Customers Just Get In The Way Of Doing Business!

I’ve written quite a bit about Challenger Selling and it’s many related concepts–it is after all a different articulation of the solution, customer focused, consultative, value based, provocative selling approaches we all know.  Every once in a while, I think–wouldn’t it be novel to look at things from the customer’s perspective?  What might Challenger Buying look like?

There are a couple of perspectives we might think about.  One is Challenger Buying has existed for a very long time–we, as sales professionals are waking up to the fact and addressing it.  The other is how difficult it is to do Challenger Buying–from a customer perspective.  I’ll talk about both in separate articles.

I’ll start with the second–we can’t underestimate the difficulty of doing Challenger Buying.  The premises of any kind of solution selling, including Challenger, is that we are bringing the customer new ideas.  We are challenging them to think about their businesses differently.  We are helping them to discover new opportunities.  There is no doubt, we create the greatest value for our customers when we are engaging them in this manner.  Customers don’t need us pitching our products, spewing all sorts of data about features, benefits, and so forth.

But Challenger Buying is, to say the least, very challenging for the customer—more so than it is for the sales person to do Challenger Selling.  At it’s core, it’s about risk, change, readiness, and priorities. 

As sales people, I think we often lose sight of what we are doing to the customer.  We’re doing the best that we can to help them discover ways of improving their business.  We get our customers excited about the opportunities, we show them how our solutions can help capitalize on the opportunities.

But then, from a customer point of view, reality starts to set in.  How do we (the customer) make this happen?  What are the risks?  How do we manage those risks–can we manage them?  What are the consequences of failure—or even a slight miss?  What does this mean to our organization?  What does it take for us to do this?  Are we ready and prepared?  How do we manage the change?  How does if fit into our priorities–often it may mean a complete shift in priorities.

The challenge of Challenger Buying became very clear in a conversation I had with a top executive recently.  He was struggling and called me for some advice.  It seemed that a sales team had done an awesome job in helping him see new opportunities for his business.  He shared with me how exciting the concept was, how clearly he could see the impact on the future of his company, and how he could see the value of the solution the sales team was presenting.  He said the business case was obvious and compelling.

I asked him, “So what’s bothering you?”

He responded, “I worry about our ability to make it happen.  There is so much more than just the solution the sales team presented.  We have to make it happen.”  He went on to talk about the risks of failure–he could see ways to manage those and accept those.  He was worried about the change and how to prioritize this initiative with the other priorities they faced.  He clearly understood he’d have to shift the priorities, but there was a very high risk in the short term (about 9 months) revenue impact.  These impacts were in other parts of his business–not related to the challenging idea, but in shifting his priorities the ripple through the organization had impacts far beyond the idea itself.

I asked, “What’s the sales team doing to help you find answers to this?” 

He said, “They can’t do much.  The things risks, shifts in priorities, and change management involves things far outside their ability to contribute.”

This example is pretty dramatic, it involved a fairly substantive shift in the company strategy.  Most Challenger Sales may not be that dramatic, but we have to understand Challenger Buying!  We aren’t doing our job and we won’t be successful unless we help our customer in their buying (funny how it always comes back to helping the customer buy).  We have to help them understand the risks, change, readiness, and prioritization issues.  We have to help the customer solve and manage these.

Challenger Buying is tough–if we are going to be successful with Challenger Selling, we need to shift our focus to Challenger Buying.

Related posts:

1. Sending Your Sales People Out Naked, The Problem With “Challenger Selling”
2. Buying Isn’t Important, It’s The Results Of Buying That Are Important!
3. Buying Has Nothing To Do With The Product We Sell!

One of the things I love the most about sales people is the eternal optimism.  It really takes a tremendously positive outlook to be a great sales person.  After all, we face rejection every day.  We face challenges and obstacles in every situation.  Some are challenges come from changing customer expectations. We always face market and competitive challenges.  Sometimes we face challenges from within our own companies.

It requires tremendous resilience and optimism to succeed in selling.

But sometimes that optimism hurts us.  Sometimes it prevents us from looking at reality, from seeing things the way they really are, not how we want them to be.  This is, perhaps, the most dangerous challenge sales people face.  It’s one of our own creation.  And it’s funny, it sneaks up on us–it never smacks us in the face, it kind of creeps in.  All of a sudden we find ourselves mired in a very difficult situation, struggling to understand and work our ways out.

It happens all sorts of ways.  Our pipelines aren’t as full as we want.  Our managers may be pressuring us to increase the numbers of deals in the pipeline.  We relax our qualification criteria to get more deals—but because they aren’t in our sweet spot, our ability to win is threatened.  All of a sudden our win rates go down.  This makes our pipelines look worse, we relax our qualification criteria further…. you know how this story ends.

Or it’s the deal we just can’t let go.  We’ve invested a lot of time and resource.  We believe if we just do a few more things, we can persevere.  We do those, it’s not sufficient, we do a few more…… it goes on forever.  The deal’s dead, but we can’t let it go.

Or we are busy, our days our filled with meeting after meeting, call after call.  But we aren’t making progress.  We confuse busyness with progress and accomplishment.

Facing reality is critical to our success.  If our pipelines aren’t full, we mask the real problem by filling them with junk.  If a deal just won’t move forward, continuing with wishful thinking doesn’t change things–it keeps us from really understanding what it takes to win–or even if it is winnable  And busyness masks everything.  We don’t have the time to reflect, to understand if we are making progress or just filling our time.

Facing reality is tough.  We may discover things we don’t want to confront.  We may not be as strong as we had hoped we were.  We may discover we need new skills to improve our ability to compete.  It may tell us we’re spending our time with the wrong customers–that we may have to find new customers.

Facing reality is important.  Good or bad, it provides the ability to understand the issues most impacting our performance.  It helps us identify and solve our problems.  It allows us to improve or fix things that keep us from achieving our goals.

It’s easy and tempting to fool ourselves, to the point of hiding our heads in the sand.  But that doesn’t fix the problem, it makes it worse.

If you aren’t achieving your goals, are you really looking at what’s happening.  Are you seeing things the way they are or the way you want them to be?  Facing reality is the only path to performance improvement.

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2. No Grin-F#!?ing Allowed!
3. Are Your People Selling What They’re Supposed To Sell?

I’ve got a terrible confession to make.  I cheat.  I don’t want to play fair and square.  I don’t like to play on a level playing field.  I do everything I can to tilt deals to my favor.  I do everything I can to stack the deck.

I don’t think I’m alone in this. Our inclination as sales people is to do this.  We want our customers to prioritize the things that we do well and that our competitors do poorly.  Likewise, we want our customer to de-prioritize the things our competitors do well and we do poorly.  We do everything we can to shift the criteria and customer’s attitudes in our favor.

Unfortunately, in the new world of buying, it’s becoming more and more difficult to stack the deck.  Customers are determining their needs, requirements and priorities without us.  By the time they’ve developed a short list, their requirements are already locked in concrete.  The vendors on the shortlist—our competitors and us, are there because we all meet their minimum needs.  The customers have leveled the playing field for those they have invited to play.  Now we’re in an elimination match.

If we want to stack the deck, we have to change our approach.  We can’t wait for the customer to have a need, we have to be premptive.  We have to get in early–before the customer has a need, before they recognize they have a problem.  To stack the deck, we need to get them excited about a new opportunity for their company–a way to grow, a way to improve.  We want to create a sense of urgency around what that will do for them, and how we can help them do this.

If we want to stack the deck, we have to invest in them.  We have to earn the right to have them listen to our ideas about changing their business.  We have to have credibility and their trust. 

We have to create value–both in the ideas and interactions, and in the solutions we offer.  If we don’t we’re helping our competitors stack the deck for themselves.  We have to offer more than a product pitch, we have to do more than answer their questions, handle their objections and ask for the order.  Everyone else is doing that, we have to be different.

Some might say, “Dave that’s unrealistic, while we try to do that, the customer wants to create a level playing field.”  I’m not sure I agree.  I’m not sure that customers want to create a level playing field.  I think customers want to stack the decks in their favor—in favor of helping them achieve their goals, and produce results.  If we do our job right–we can align ourselves with the customer, stacking the deck to allow each of us achieve our objectives.

What are you doing to stack the deck?

Related posts:

1. Buying Has Nothing To Do With The Product We Sell!
2. Performance Management Friday — Win/Loss Analysis

I read a fascinating Op Ed piece by Tom Friedman in the New York Times, Average Is Over.  It’s a fascinating piece.  As I reflected on the piece it struck me how important this concept is to professional selling.

Friedman makes the point, “”…everyone needs to find their extra–their unique value contribution that makes them stand out…”   Friedman is not writing about organizations, he’s writing about individuals, each  of us.   It’s a profound concept, understanding it is like discovering the secret decoder ring for sales success.

In a buyer’s world, where too many products are undifferentiated, where the differences between the companies that stand behind the products are relatively small, where quality is similar, where everything balances out–and on average they are the same, there are two things that stand out as real differentiators:  price and what each of us contributes as sales professionals.  And in competitive situations, where pricing is roughly the same, the difference between winning and losing is each of us.

It’s no longer sufficient to be “average.”  Each of us has to find a way to stand out and differentiate what we do.  It might be our knowledge of what the customer is trying to do, it might be the confidence we instill about the new solution, it might  be the trust we have earned in working with them.

Just good enough is no longer a winning strategy (a number of years ago, I worked with an industry leading company that had that as their strategy–and they were remarkably successful.  We have to set ourselves apart, we have to create the value and differentiate ourselves.  As Friedman points out, it is ultimately what each of us contributes that makes a real difference.

It’s a tremendously powerful concept for sales people, partly because it’s a simple concept, partly because it puts success or failure squarely in our hands.  We can control and manage the difference we make with our customers.  We can control and manage the value we create to set ourselves apart.  Competing and winning becomes much more clear–we are in control because it is the differentiation that each of us create that separate us from the average.  It can actually be quite easy–particularly if everyone else is striving to be average.  In essence, we become the value proposition–or we can be one of the crowd, average.

Sales people–and the people they engage in working with a customer are the ultimate differentiators.  How we and our team work with the customer is what separates us from the rest–the average.

Do you know what separates you and distinguishes you from everyone else?  Are you demonstrating that in every interaction with your customers?

Do you know what distinctive value you create–for your customers, for the people you work with?  Do they understand that value?

Are you constantly looking to  set yourself apart?

Average is over.  Average is not a winning sales strategy.

No related posts.

Sales people are notoriously bad at writing things down and documenting things.  I talk to thousands a year.  When I start talking about documenting something–a deal plan, an account plan, territory, call plans, even a to-do list–all of a sudden you can see the resistance in their faces. 

They sit back, fold their arms.  Most say nothing, but a few courageous one’s will say, “Dave, you don’t get it.  I’m  too busy to do this.  I don’t have time to document these things–it’s too bureaucratic–I’ve got a plan, it’s in my head!”

I’m used to this.  I respond, “OK, I get it, let’s talk about your plan for this opportunity………”  It’s always the same, they start talking, they tell me about the deal, they tell me about what they’ve done.  I start asking questions, “Where are you in the sales process, how do you know you are aligned with the customer buying process, what are the risks to the customers in this project, what is your positioning vis a vis the competitors, ….. the list goes on.”  I get more data, but as we proceed, it gets sketchier and sketchier. 

We then talk about “What are the next things you need to do, who do you need to do it with, when are you going to do it?  What’s the positioning you need to win this deal?”   They respond, they outline action plans and strategies, I take notes, writing down the next steps.  Ususally they don’t.  They say, they’re under control, they can do the deal, they don’t need to document the plan.  I smile and thank them.

At the first milestone, I call or email, “How did it go?”  You know what happens–the majority of the time, the response comes back, “I forgot to do it, I’ll get right on it.”  The second milestone, “How did it go?”  You know…..

We sit down, I pull out my notes from the last meeting and ask “We developed these strategies to position ourselves to win.  We committed to these steps and actions to execute the strategies.  Where are we in executing the plan?”  The discussion usually involves a lot of hand waving, some apologies, a re-commitment to execute the strategy, then a quick escape.  This time they write a few things down, but too often, they’re forgotten.

Sales people are right, they are busy, they’ve got a lot of things to do, different deals, different accounts, different sales callse.  Changing customer requirements, shifts in our strategies.  It’s impossible to keep it in your head.  You lose most of it–you may remember one or two things, you may have jotted down a couple of reminders, but most of the time we’re busy with activities, responding customer requests, reacting to what may have happened in the last call.  We drift further and further away from our plans and strategies.  Sales cycles get lengthened, deals go away.

It is impossible to keep it all in our heads!  We need to document our plans, we need to use the plans to guide our actions, keeping us focused, on target, moving forward purposefully in the execution of our strategies.  We need to document our plans–they provide the basis for what we do every day.  They provide the foundation of taking our daily activities and transforming them into accomplishments.

Being too busy to  document your plans–whether it’s a deal plan, prospecting, call, territory, account or other plan–is just an excuse.  It’s an excuse for being less productive, it’s an excuse for winning less, it’s an excuse for not being accountable.

Writing it down, keeps us focused, having it documented, means we don’t have to remember and we never forget.  Many of us work with teams–a documented plan keeps the team focused, well coordinated and moving forward.

• Do you take the time to maximize your productivity, impact and effectiveness?
• Are you documenting and updating all your deal/opportunity plans?
• Are you documenting and updating your prospecting plans?
• Are you documenting and updating your account and territory plans?
• Are you prioritizing all of these in your day to day activities?

Related posts:

1. Not Worth The “Paper It’s Written” On
2. Reacting!
3. Performance Management Friday — Wallet Share

It’s difficult to imagine what we sell might be unimportant.  It’s important to us, it’s how we make our living.  It’s important to our company, it’s why the company exists, it’s why we design and build products and solutions 

Our solutions are important to our customers—at least some of them–perhaps a certain department, a functional area, certain teams within our customers.  It used to be, at least for larger companies, that if we could come up with a business case that was compelling enough, our customers could “find the money.”  They’d take the proposal–by that time, it was theirs–something they were wanted to do, up to management and argue for the money to buy.  Most of the time they’d get it, if it met the financial and business case hurdles, they’d get the funding.  In many cases, as we qualified customers, we either looked for budget already allocated or their willingness to get the money if the business case was sufficient.

But that’s no linger happening.  Regardless how strong the case, how convinced the customer might be, they aren’t getting the money.

We try to solve that problem by calling higher–going to the “C-Level,” engaging them, pleading our case, showing the business case, talking about the compelling results and value we produce.  The C-Level executives may nod their heads in agreement, say it’s impressive, thank us for our work and helping them address issues in their business, recognize the value we have created, smile, shake our hands, and do nothing.

See things have changed.  Regardless how compelling our value proposition, how great the business case, how much the functional or departmental executives may argue for our solution; executives aren’t finding the money.  More than ever before, executives are investing only in things that directly impact their strategic priorities — and it’s only their top strategic priorities.

All companies have long lists of things they’d like to do.  Great business cases for improvements, new processes, new approaches, areas to grow and expand, new products to develop.  But investments are only being made in the top 2-3 priorities.  If your project doesn’t fall into one of these priorities, you aren’t going to get the order.  You may have made the sale–the customer has chosen you as the solution they would like to implement, but you are not going to get the order unless you are in the top 2-3 priorities.

What do we do?

It’s a tough question–there are some sales strategies we might look at, there are some business strategies executives in your company might consider.

The biggest problem in confronting this issue is our individual and corporate egos.  It’s hard to imagine not being important because what we do is so important to us.  It clouds our vision and our ability to recognize and address the problem.  But however important we think we are to our customers, our opinions don’t count!  Being important to the customer is the only thing that counts.   So we have to get our egos out of the way to recognize and address the problem.

What next?

Well a good start–probably the only start is finding out what’s important to our customers.  It’s not understanding their problems, but it’s understanding their strategic priorities.  What are the top two or three things they are struggling with?  What are the top two or three initiatives their executive are concerned with?  Until we know those, we have no hope of being important to our customers.

Once we understand those strategic initiatives–focus on the top 2-3.  How do we position what we sell to fall under one of those strategic initiatives?  It doesn’t mean we have to solve the whole problem–we just have to be able to take a bite out of it.  We have to be able to demonstrate that what we do helps them address one or more of their top 2-3 strategic initiatives.

Recently, I spoke to a very clever sales person.  She recognized that her solutions weren’t really important to her customer–that is, they were very important in a part of the organization, but at an executive level, where the investment decisions were being made, her solutions weren’t on their radar screens.  However, she learned that customer satisfaction was a top priority.  The customer was being pummelled in the markets with customer satisfaction issues.  Their competition was attacking them, customers were fleeing.  Customer satisfaction was the most critical issue the top executives were dealing with.  She and the department head–the person who really wanted to buy her solution developed a new strategy. 

They looked at how the solution would impact customer satisfaction.  It wasn’t something they normally focused on–primarily their solutions focused on internal operational efficiency, but she knew that wouldn’t sell.  The question they confronted was “How do we link what we are doing in this department to improving customer satisfaction?”  They were able to develop a case where they could show the solution contributed to the focus on customer satisfaction.  It didn’t make a big dent in the customer satisfaction issues the executives were facing, but it took a bite out of that problem.  That’s all they needed to get approval to go forward.

Do you know what your customers’ strategic initiatives are?  Do you know how you help your customer with those initiatives?  Until you can answer this, you are wasting your time and your customers’ time.

This needs to be part of the qualification criteria–not just yours, but the buyers you work with at the customer.  What you sell is important to someone at the customer.  They want to talk to you, they want you to help them solve their problems, they want you to help them think about their parts of the business differently.  They are eager for you to create value.  But if what you and they are doing doesn’t fit within the strategic priorities of the enterprise, if you can’t find a way to show the solution addresses one of more of the top 2-3 priorities, you are setting yourself and your customers up for failure.

It’s important for you and the customer to qualify the importance of what you are doing.  It’s a tough, but critical discussion.  Customers may not want to have it–their egos are involved as well.  It’s hard for them to understand their function may not be at the top of the hit parade of their executives.  But if we don’t have those discussions and mutually develop a strategy go be a part of what’s important, we’re wasting time.

But what if, however clever you may be, you just can’t find a way to be important?  You still have to sell, what do you do?  I’ll address that in an upcoming post.

(By the way, if you are struggling with these issues, call us up.  We’ve been working with lot of organizations on strategies to overcome this.  We’d be glad to explore these with you.)

Related posts:

1. Buying Isn’t Important, It’s The Results Of Buying That Are Important!
2. How Important Are “Techniques” To Sales?
3. How Important Are Partnerships To Your Sales Strategies?

Last week, I talked about the importance of Win Loss Analysis.   No one questions doing win/loss analysis, in particular, we really worry about losses.  There is a hidden performance and resource drain that can have a dramatic impact on our success.  It’s the abandoned deal. 

Abandoned deals happen more frequently then we think–we usually don’t track them well.  But they’re the deals that we’ve qualified and pursue proactively.  We may abandon them for many reasons–we lose interest, our customers lose interest in us, we see that we can’t win, or any other reasons.  Increasingly, however, I’m seeing the most damaging type of abandoned deals, “No Decision Made.”  These are tragic–we invest in the entire sales cycles.  We spend our time, we invest resources from our company, we go right to the end and nothing happens.

We don’t win, we don’t get the order–but no one does, so no one loses.  The customer just doesn’t make a decision. 

There’s another way this happens.  We go through the sales cycle and the customer–the functional managers get excited.  They select us, then they go to executive management for funding–and the executives choose to invest in a completely unrelated project–something that has nothing to do with the functional group we have been working with.  It’s not a competitive loss–it’s just that our project is a lower priority than others they are considering.

I’m seeing an increasing numer of abandoned deals, typically, we don’t pay much attention to them.  We analyze our Wins and Losses, but abandoned deals fall off our radar screens.  But these deals can be very significant.  In the past month, I’ve been invovled analyzing several companies—some capital/equipment companies, a major systems integrator, a few software companies and a few services companies.  The lowest rate of abandoned deals was 22%.  Most were significantly higher.

Think of that, think of the impact of these levels of abandoned deals–a minimum of 22% of your pipeline has disappeared!  Think of the time you’ve invested, think of the emotional investment that you have in the deal.  Think if the resources you have invested and the expectations you have raised in your company.

But usually we don’t pay attention to this–we track wins and losses.  We just kind of forget about abandoned deals.

What do we do to reduce abandoned deals–I’ll spend more time on this issue in some future blog posts, however, by belief this is largely a qualification problem.  We push a customer to look at something, but it doesn’t have a high sense of urgency.  At the end of the cycle, they just shrug and decide to do nothing.  We avoid this by really looking at the urgency, the consequences of not solving the problem very early in the sales cycle.  We check to see if the project is high on the priorities of the executive teams–the people controlling the purse strings.

Don’t just look at wins and losses.  Remember abandoned deals are important to track.  Understanding those abandoned deals, avoiding them at qualification is important to producing results and managing your time.

Related posts:

1. Performance Management Friday — Funnel Churn
2. Performance Management Friday — % Of Opportunities Advanced
3. Performance Management Friday — Win/Loss Analysis