Issue: April 8, 2008

 
 

For Management Next Week

 

Next Week - Confronting Underperforming Reps & Reenergizing Senior Reps - When it comes to confronting underperforming salespeople, the fundamental mistake most sales managers make is that they manage results, instead of the behaviors and activities that lead to the results. Unfortunately, it’s not very effective. Learn:

  • What part of the sales process should I pay the most attention to when coaching?
  • What are the four components of a performance standard?
  • What are the two components of productivity that every sales manager should consider when diagnosing a sales productivity problem?
  • How can I re-energize a senior sales rep who has become “stuck in a rut”?
  • How should I confront an under-performing rep when I don’t know what the cause of the problem is?
  • More . . .

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Articles:


Why Do Customers Say They’re Satisfied — and Then Leave? by Paul Cherry

 

A recent study from the Gallup Organization has some alarming implications for salespeople: Researchers found that customer satisfaction does nothing to boost repeat sales.

The study found that extremely satisfied customers are just as likely to take their business elsewhere as less-satisfied customers. The researchers concluded that customer satisfaction “has no real value. None at all.”

And what about all the money and energy that companies spend to measure and improve customer satisfaction?

Wasted, they say.

Strong words. But there’s other evidence as well. Consider, for example, the latest auto ratings from the American Customer Satisfaction Index. Customers gave Lincoln-Mercury the highest customer-satisfaction ratings in the industry – ahead of Honda, BMW and Toyota.

In the past two years, Lincoln-Mercury sales have fallen by 26%.

So What Drives Repeat Sales?

The researchers did find something linked to repeat sales: customer engagement.

In other words, a customer’s emotional connection with you, your product or service, or your company. When customers had this connection, loyalty soared.

Here’s the difference between satisfaction and engagement. If anyone asked, you’d probably say you’re highly satisfied with your local ATM. Yet you probably don’t sing its praises to your friends. Or look forward to using it. And if you found another one half a block closer to your office, you wouldn’t think twice about switching to it.

Compare that with a human teller who smiles and greets you by name, asks about your kids and chats about the weather while your checks are being processed. Same level of service. Same degree of satisfaction. World of difference.

Rules of Engagement
Engaged customers will walk across hot rocks to do business with you. They not only take your calls; they call you. They fight for you even when the bean counters are pressuring them to go with the cheapo option. They even forgive you when you make a mistake.

This passion isn’t accidental. You can cultivate it. Not by showering customers with free tickets and fancy lunches. Nor even by delivering spectacular service or exceeding expectations (although that certainly can’t hurt.)

The best way to engage with customers is by understanding the emotions that drive them.

Even the most “rational” sale has an emotional component lurking in it. People simply will not spend money – their own or their company’s – unless they’re motivated by their fears, desires, hopes or dreams. Understand those, and you have a very good chance of winning a customer for life.

Some years ago, I had a client – the CEO of a firm in the aerospace business. “Our salespeople need to improve their skills,” he said. A great customer, right? He’d told me what he needed. All I had to do was write a proposal showing how I could deliver.

But I didn’t fully understand the emotions behind the sale.

So I asked: “Why do they need to improve their skills?”

He thought for a moment, and then he said, “Let me tell you about our business. The contracts are big, but they don’t come along that often. If we lose a sale, it can really hurt us.”

“Hurt you how?” I asked.

“It could put us out of business,” he said.

Just like that, I got it. This client wasn’t interested in helping reps get a little better at their jobs. He wasn’t interested in incremental improvements in sales. His company was on the line, and he simply couldn’t afford to be outsold.

Knowing what was at stake, I proposed an intensive and ongoing program for the sales department. It was a far larger assignment than what I’d originally considered – and exactly what the client needed.

The Best Question in Sales

The best question is sales is “why?”

Why does the customer want/need what we’re selling?

That’s the best way to get at the emotions that underlie the sale, and that drive customer engagement.

Yet conversations with customers and prospects tend be all about “what.” What are you looking for? What delivery date would you like? What color, what model, what price? And oh by the way, what did you do last weekend?

So why is that?

Well, we may not want to hear why. We may not have a response in our well-rehearsed sales script. We may think it’s none of our business. We may want to keep the customer in a positive frame of mind, and so avoid the tough questions.

And sometimes we simply don’t know how to ask. Ordinary sales questions are easy to ask: “What are your goals? When you do you need delivery? Do you prefer the red or the blue?”

Engaging questions require a different approach.

Probing for emotion can be a scary place to go with the customer. It stretches the customer and the salesperson. If you want customers to reveal their vulnerabilities, you have to be willing to share, too. Much like a doctor or lawyer, you have to create an atmosphere of trust before you pose a tough question.

Challenging? Yes. But if we don’t understand what’s motivating the customer, how can we truly be of service to them? And why would we expect them to come back?

About The Author:
Sales Leadership Expert Paul Cherry will shake up your sales team and motivate your leaders! By teaching executives to ask the right questions, Paul has helped over 1,200 companies turn their sales team strengths into profit and performance. Now, you can achieve success with his FREE Sales Motivational Discovery Assessment, guaranteed to help you discover exactly where mediocrity exists in your organization. Take the assessment now: http://www.pbresults.com You can reach Paul at (302) 478-4443 or cherry@pbresults.com.


Back To Top

"All-Pro or Peddler?" by Jim Dunn & John Schumann

 


Problem:
Picture your last very important sales interview with Mr. Big -- the one that potentially represented three months quota. You know the one we mean. Going into the meeting, on a scale of 1 to 10, where would you rate yourself on the following scale? One means your briefcase is full of literature to show him, and 10 means that you have planned the call well and have rehearsed the questions you will ask to help you understand the problem in a way that fits with Mr. Big's behavioral style and frame of reference. If you scored less than an eight, your chances of a successful meeting are less that 50%.

Diagnosis: Winning the big deals in professional selling comes from believing in and executing a set of strategies and tactics that allow you to handle any selling situation in an optimal way. It is similar to professional sports. Some athletes think they know the game but the top professionals know that it takes continual training and preparation to give them a slight edge in the big game.

Prescription: Prepare yourself mentally and emotionally for every sales call. Visualize, practice and rehearse critical components of the interview. Know exactly what you want to say to set the agenda for the meeting. Know precisely how you will transition to the pain step and what questions will be relevant to the prospect's organization and situation. Study the prospect's behavioral style and modify your approach accordingly. Anticipate the "tough" questions you may get asked and prepare an appropriate response or question. Writing out the playbook doesn't hurt either. A peddler wings it. The pro is prepared.

Good Selling!

About The Authors

The creators of the Common Sense Selling® process are two not-so-common sales professionals and trainers, Jim Dunn and John Schumann. They saw the lack of results and frustration that most salespeople experienced using the old “feature, advantage, and benefit” selling approach in today’s more complex selling environment.

Using their combined 65 plus years of sales experience, they developed a new, common sense approach to selling that is unconventional, by most standards…and it works!

Visit them at http://www.whetstonegroup.com/

 
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