by Tom Fedro
The pain was that they were using too many different tools to fix problems that were walking in the door across almost 100 different retail outlets. Any time they had to bring in new engineers, they had to train them on all these different types of software products, all with different user interfaces, and it was a significant problem costing them time and money. The question was “Why can’t we use one product that can address these issues?” They wanted to have a Swiss Army knife ready to fix whatever problem walked in the door. They desired one interface so training issues would be minimized, and every store was working with the same tools.
The authority was the VP of retail operations, who was the person that was dealing with these training issues on a daily basis. The money was confirmed after a detailed ROI discussion proved that the project would pay for itself quickly.
When we initially discussed working with them, they were confident that their internally developed products were all they needed to help consumers with a broken laptop, a software compatibility issue or a disk drive that needed to be repartitioned correctly. There was, however, a myriad of problems customers were presenting that needed to be fixed, in the store, like Right Now! The timing was off when we first approached them because they felt comfortable that their solutions would be enough to handle the various problems.
We kept talking to them, however, and demonstrating the value we could deliver. Our idea was to provide one product that their technicians could use in all of their retail outlets across the globe to fix just about any problem. We offered one interface and one training that would be easy to navigate, as opposed to needing many different tools and interfaces for the various issues they faced daily. Over time, they came to recognize that having one solution with one interface made the utmost sense, and would pay for itself over a short period of time.
At last, we were able to take our product directly to the VP. We demonstrated that with our one user interface, they could address more than 90 percent of the problems that arose. If their customer’s system wasn’t booting, they needed a partitioning of a hard disk or a re-imaging of a drive. If they bought a new machine and wanted to put their old disk drive in it, we could help. We confirmed that we could efficiently address all of those tasks with one product, one interface, and one training mechanism that met their requirements.
During the evaluation of our product line, we were able to convince the VP that we would be a great partner and that they would find us easy to work with. The technology spoke for itself, as the evaluators were able to do everything they needed to do quickly and easily with our product. Once that happened, we were able to work closely with their procurement team to negotiate a long-term deal that worked for both companies. Although they build all kinds of backup software and tools, they’re using our solution. It provided not only a substantial monetary win for us, but also a fantastic demonstration of the credibility of our approach and technology in the market.
Lessons learned
We were confident that our tool would be easy to learn and their training time would shorten, therefore providing a great value to the client. We had to keep at it until all the pieces fell into place. Our faith in our solution gave us the perseverance to keep at it efficiently until our time came. We kept showing up until there was the right set of circumstances and the right people were there to see the value we were bringing to the table fell into place. Fortune favors the brave and the persistent.
The seven major obstacles a salesperson faces in pursuit of substantial deals
fear
inertia
timing
disaster
not having PAM in the building
no-decisionitis
lack of urgency
CHAPTER 8
MAJOR MISTAKES
If you’re going through hell, keep going. – Anonymous
What are the most common significant mistakes made by companies pursuing million-dollar deals? Company mistakes can include
suggesting the wrong product for the wrong problem;
lack of flexibility in delivering the solution;
forcing customers into a cookie-cutter mold / lack of customization;
not coming out with new product versions regularly;
not listening to your customers.
These types of mistakes can illustrate a lack of innovation and attention to the market. Not listening to customers can result in significant errors and poor judgment on behalf of the company. There are also, however, substantial errors that the sales rep would do well to avoid.
Talking too much
The way to get started is to quit talking and begin doing. – Walt Disney
Don’t spill your candy in the lobby, and talk too much. We have all met the salesperson who speaks too much and never seems to take a breath to listen to his audience — the prospect. If you’re talking, you’re not selling. Your goal is to ask your prospect questions to help you identify the pain, authority and money, and move the deal forward.
In any sales interaction, your goal is to listen 80 percent of the time. Instead of discussing features and benefits, and touting your product’s speeds and feeds, ask questions of the prospect. If you’re asking the right questions, the answers should tell you if PAM is in the building, and point to how you can position your company and solution in the most effective light.
Not asking enough questions or the right questions
The smart ones ask questions when they don’t know. And sometimes when they do. – Malcolm Forbes
When talking to a mid-level manager or director, aim to get in around 13 or 14 questions of substantial quality, as that’s where you should be playing ball. Gather information so you can provide a solution and prepare a proposal that will speak to your prospect. They should be doing most of the talking, explaining what and where their pain is, and answering your questions about authority and money.
The quality of your questions should illustrate that you are a force to be reckoned with. I’ve covered questions in various chapters throughout this book. Refer to them, and make sure that the questions you do ask establish your reputation as a knowledgeable resource. One of your aims should be to move into the trusted advisor role as quickly as possible, so your questions should prove that you have access to quality information and you know exactly what’s going on in your prospect’s industry.
Selling by yourself as a rep
Life shrinks or expands in proportion to one’s courage. – Anaïs Nin
It’s always better to sell as a team. Bring in a manager, product specialist or a systems engineer to show that you’re not a one-person band. You want to prove that you have good people supporting you, and you’re willing to bring them out and let them interact with the customer.
Pump up your team by bringing along technical advisors (as discussed in Chapter 6) — for example, they are prime candidates to substantiate your credibility and handle any technical questions your prospect may have. If you’re moving into multilevel selling territory, bring along whoever is an appropriate match for the prospect’s team. Your CEO, CFO or technical director may need to step in and join you for the appropriate sales meetings.
Ignoring the influencers in the buying process
Learn the rules like a pro so you can break them like an artist. – Pablo Picasso
If you’re focusing on the senior executives by hitting the golf course with them, that’s fine. It’s a problem, however, if that’s your only plan, and you’re not spending time with the people who are going to use the product. The technical evaluators are going to be passing along their opinions to the executive team you’re wooing on the golf course. Even though they may not be executives, the power of their recommendations undeniably can make or break a deal. Not spending enough time with the key influencers on the technical and user teams is a real mistake in these major deals; the hands-on evaluators and influencers often hold the keys to the kingdom.
When you go after a prospect, you’re looking for
the C-level executive or vice president who’s going to be the decision maker, but many times it’s the 23-year-old technical whiz in the back of the room who whispers in that leader’s ear on which company to go with and why. Many times, that is how the million-dollar deal decision will be made, so don’t ignore the prospect’s evaluation team.
Offering free trials to win business
Learn from the mistakes of others. You can’t live long enough to make them yourself. – Anonymous
Proof of concepts can be a real problem as these tactics can cost the company a lot of time, energy and money with no tangible benefit. In many cases, they can go on for far too long. You might lead with a trial, saying, “Let’s put this product in place. Try it for six months. We’ll get it integrated at no charge and see where it goes.” At the end of the trial period, they ask for an extension. They say they need another group to look at it before they can make a purchasing decision. The deal can go on and on! Alternatively, they may not return your calls, or say, “We’re done. Thanks for letting us check it out, and we’ll get back to you.”
You should have, at a minimum, a verbal, up-front contract in which you establish the boundaries of the free trial. For example, you could say, “We’re prepared to offer you a free trial, but it will end at six weeks. At that time, we’ll have a purchase order ready to go, provided the product does what we say it’s going to do for you. Are you in agreement with that plan?” There has to be an agreement in place with a start date and an end date before you begin any trial. I recommend that you don’t offer free trials unless you absolutely must, as it can be a significant waste of money and resources.
If your prospect is demanding a free trial, and PAM is not absolutely screaming for a deal to get done, it may be better to find a new opportunity. Recognize when the timing is not right, and offer to return when your prospect is ready to move forward.
Not asking for the business
Whether you think you can or you think you can’t, you’re right. – Henry Ford
In Chapter 7, we discussed how a sales rep can experience a fear of rejection which they must get past in order to move forward and close the deal. Letting fear rule you and continuing to engage the prospect by reaching out, visiting, and providing industry knowledge without asking directly for the sale is a costly mistake. It sounds like an obvious fix, but in many cases, the key is realizing that the time has come for the direct ask.
Some salespeople, particularly those new in the business, may feel trepidation in moving forward with a prospect. PAM is your best friend, and as long as you consistently and thoroughly establish the pain, authority and money, you’ll have the tools to bolster your direct ask. If you’ve done a solid job establishing the pain, you’ll have the prospect on your side and ready to help you find authority and money to close the deal.
Failing to find PAM
If you don’t identify PAM at an early stage in the sales cycle, you’re wasting time. If you haven’t identified PAM — and sometimes it’s not reasonable to expect that you’ll get everything figured out in your first sales call or two — that doesn’t mean you walk away there and then.
The authority might be a little fuzzy, or the budgeting is still coming together but it’s not yet complete, but those aren’t reasons to walk away immediately. This is when experience goes a long way; it helps you keep your eyes on the prize. Remember that your sole focus is to make sure you and PAM are heading in the right direction. Proceeding without PAM in sight means you’re probably wasting not only your time but that of everyone else involved.
Being unprepared
We are kept from our goals, not by obstacles, but by a clearer path to a lesser goal. – Robert Brault
If you haven’t done your research and spent some time understanding where the customer is in their environment, you are unprepared. Are they about to get sold? Are they experiencing rapid growth? What if they can’t hire enough people, or they’re downsizing? Are people walking out with all their stuff in a box? Are their competitors growing or shrinking? Are they seeing growth in their market share and revenue or a decline?
Have your questions ready, and have them answered as far as possible with your own research before the first interaction with your prospect. You need to have a thorough understanding of where the prospect is and be prepared to engage in an informed discussion. Know where you’re taking them before you sit down, and establish what you aim to gain from that particular session. Have your goals and game plan in place.
Failing to pay attention to the competition
Any sales professional in any industry needs to be aware of their competition. Understand what your competition is up to, and be proactive in defending your position with your accounts and prospects. Of course, depending on the situation, if you’re displacing someone that’s already in the account, you can expect them to come up with a discounted price to counteract your interest. Your competition may lower their prices so they don’t lose the account. They may offer new features and functionality or more hours of free service.
Your job is to be prepared for all moves your competition might make, and to be ready to respond with your best offering to displace them. Be ten steps ahead; do your best to anticipate what the competition is going to do and what your response is going to be.
Not knowing how to overcome objections in the sales process
I attribute my success to this — I never gave or took an excuse. – Florence Nightingale
Objections are good. Why? Because sales objections indicate an interest in your product, but also that there’s a gap between their perception of what they need and your offering. If your prospect is not satisfied, it’s up to you to identify the gap, answer the objection, and move the deal forward by filling the gap with your solution and your advisory relationship. Objections should be seen as showing engagement; that the prospect is seeing the potential of your solution as opposed to saying “No” or ignoring you completely.
Do your best to anticipate which objections are likely to arise so you can be prepared to answer them in real time and prove your answers. Understand that the price is never the ultimate objection; it’s always a matter of demonstrating the value you’re offering far exceeds the price you’re asking. Dig a little deeper and be sure they understand that the value you are bringing is being perceived correctly on the other side of the table. Ensure your return on investment is solid as an illustration of how their investment is going to save them a lot more money than they will spend.
Failing to understand that overcoming objections at the level of a high million-dollar deal requires specific strategies
You can’t build a reputation on what you are going to do. – Henry Ford
When objections arise, the first step is to wait a minute; relax and offer a pregnant pause so you can hear what else they’re going to say. Understand what they’re saying, and confirm that it is an objection; make no assumptions. Try to deduce what’s going on in the prospect’s mind, and this is where silence can help. Let them sort through their thoughts as opposed to just jumping on their claim that your price is too high — like it’s red meat. They will usually keep talking, so you have to be present and listen carefully.
The prospect will sense your energy in the room, so you can’t be defensive or negative if they bring up an objection. Lean in and make sure you hear what they say and how it relates to the pain you’re going to resolve with your solution. The pause is critical; take your time.
The next step is to make sure you have a thorough and comprehensive understanding of the objection. Clarifying questions are essential here because as I mentioned, the price generally isn’t the critical objection. Everybody wants a better price, but they’ll pay for the value you bring to them. We see that in all kinds of product sales. Why would you buy a Rolex watch when you could get a Timex? It’s all about the value perceived by the buyer.
Clarify the objection and ask, “What else?” Keep peeling back the onion on that object
ion to work out any other issues that are causing the buyer to hesitate. Keep digging, paraphrase their objection, and feed it back to them. Hopefully, you’re able to answer it immediately, but if not, you can gain complete agreement and define with the buyer precisely what the challenge or the issue is that you need to solve.
After you’ve delivered your answer, make sure that they’re happy, and that you’ve answered their objection so you can knock down the next step in your PAM process and move the deal across the finish line. If they still have questions or they’re not yet satisfied, back up and make sure you’ve got a fully comprehensive understanding of the objection.
Case study: major PC and server manufacturer
The Orientation Tool
This major manufacturer of desktop, laptop and server computer systems is based in the U.S., but they’re a multinational computer technology company that develops, sells, repairs and supports computers and related products and services. The company sells PCs, servers, storage, network switches, software, TVs and cameras — just about everything that has to do with computer systems and software.
When we started talking to them about multiple opportunities, we identified an acute pain they had in an emerging generation of laptops and desktops. These systems would be using modern operating systems and technology, and required a tool that would ensure the storage devices with older technology would be compatible with their new devices. They needed this software tool to be available as soon as they started shipping this next generation of product. Without a tool to orient the old drives with the newer operating systems, they were going to be dead in the water because storage devices wouldn’t work with their new line of systems — a big concern and a significant pain.
The authority was the vice president of product management and a group of evaluators that were going to be testing our alignment tool solution. The money was confirmed, as without this type of a software offering they wouldn’t be able to launch their advanced and expensive new set of products.