Monday, October 12, 2015

Sales: Art or Science?

Basic Business Cents

Some people denigrate themselves and think they can’t sell. They view others as born salesmen and defeat themselves. I submit that selling is a process like every other facet of business and therefore a science rather than art. It can be defined as a customer focused approach presenting the product/service to meet the customer’s needs. The sales process can be viewed in three areas, Listen, Learn, and Adjust. These areas are not serial but intertwined.
Listen
Many sales people make a big mistake by opening the discussion with the prospect by telling about their company, their products/service, and themselves. This can be boring, irrelevant, and self-centered. Prospects are more interested in their business, their problems, and themselves, so ask questions to get them to start talking. Then listen and learn. People prefer talking about themselves rather than listening to others talking about themselves. These questions might include probing for insight into the prospects wants and needs, what is important to them, their aim or vision for the future, what causes them problems, and what is their desired result from meeting with you. Listening and talking in their language helps to build a strong relationship.
Learn
There are two parts to the Learn area, pre-visit and during the visit. If possible, do the homework before the contact to show your understanding of your prospect and his/her problems. Plan the sales call and negotiate access to the most senior decision maker. Learn names of relevant people involved, their positions and level of influence, and if the prospect is funded for the solutions to their problems. Study the prospect’s business, their competitors, trends in their industry, and what others are doing to solve problems. Gather appropriate references and case studies to support your products/services. Plan the sales call. Anticipate objections and develop solutions to them with your products/services.
Observe the surroundings and the body language of the prospect during the contact. Body language is very informative and will let you know if you are on the right track. Probe for insights into problems or areas that can use improvement. If you listen well, the prospect will tell you what he/she wants to hear to become sold. Practice your sales call. There is a great saying, “The best extemporaneous talk is well rehearsed.” Avoid a canned sales pitch but be proactive and plan what you intend to do and say, how you will turn objections into positive points, and how you will close. Then be flexible.
Adjust
It is safe to say the conversation will not quite go as expected, but with proper preparation you can adjust to the situation. Fit your product/service to the recognized need. Speak in the terms of the prospect, propose solutions that have value, and sell benefits as opposed to features.
Repeat the problems in your words to show that you understand what your prospect is facing in detail; only then should you offer your solutions. The value of a salesperson is value creation for both the customer and his/her company.
Deal with questions and objections as they arise and never put them off. Avoid disagreeing with the prospect.
Use a trial close when the prospect agrees that your solution will work. If the sale is not consummated at this point you can use case studies where the solution has worked for others, or you can offer references. Make sure you have the permission of satisfied customers to use their name in your selling pursuits. Differentiate yourself and therefore your product/service will not be viewed as a commodity that can be compared on price alone.
Always, always follow up, whether you win the sale or not, to maintain a relationship with the prospect. A letter or email simply thinking them for their time and interest followed by a statement of what you learned about their business and challenges and how you can provide solutions. Close with next steps as you see them.
 The above are fundamental steps in selling but develop your own process because you are unique. Then by continuing to practice, rehearse, and improve you will develop into a successful sales person. You may be viewed as a born salesperson but you know in your heart it is because of your customer-centric selling process that you have developed, improved, and practiced over time.



Thursday, October 8, 2015

Clues for Problem Solving

Basic Business Cents

The hardest part of problem solving in business is often getting started; it helps to have an outline to follow. An additional benefit of a standard approach is consistency between problem solving teams so people can fit in with new teams.
Dr. W. Edwards Deming built upon a revolving cycle approach to problem-solving which he learned from a Bell Labs friend, Dr. Walter Shewhart. He took it to Japan in 1951 when he was asked to help them turn their economy around after World War II. It further evolved from applications there to what is now called the Plan-Do-Check-Act Cycle. It is usually depicted in revolving circles but perhaps it is clearer in outline form.
PLAN:  Before any action is taken, a plan should be made to define the problem, determine who are the customers involved and obtain feedback on the nature of the problem, how it affects the customers and clarify their requirements.
·      Define:  Clearly state and obtain consensus on the problem to be addressed
o   Establish the Focus:  Narrow the focus to a manageable problem-don’t try to solve “world hunger”.
·      Measure:  Find a way to objectively measure before and after results to determine if progress is being made.
o   Examine the Current Situation: Collect data when possible, talk to internal and external customers, and get input from the people actually doing the work in the area.
·      Analyze:  Study the processes involved in the problem area and brainstorm possible causes of the problem; it is okay to think outside of the box.
o   Analyze the Causes:  Select the most likely cause (s) of the problem and develop a solution.
DO:  Try the solution on a pilot basis to see if it does indeed eliminate the identified main cause
·      Improve:  Measure the effect of the trial of the solution.
o   Act on the Causes:  Apply the solution and document the effect. If necessary try more than one approach.
CHECK:  Study the results of the trial approach to the solution.
·      Improve:  As you learn more about the problem and processes involved, document improvements in the solution approach for future action.
o   Study the Results:  If the problem is solved or the process improved measurably, take it to the Act action. If not, return to the brainstorming of the causes and develop a different solution. If necessary, go back to Plan and roll the cycle again.
ACT:  If the measurements show the solution does not work, return to identification of causes and develop a better solution.
·      Control:   Obtain consistency in the organization in applying knowledge learned to improve the performance.
o   Standardize the Changes: If the measurements do confirm the solution of the problem, then document the changes in the Organization Operating Principles or similar document.  Roll it out to other departments so the process is performed consistently throughout the organization.
o   Draw Conclusions:  Study what was learned from the problem-solving process that can be applied elsewhere.

The Plan-Do-Check-Act Cycle is a simple approach to problem solving. It becomes a way of thinking to aid in constant improvement of improving the performance of the organization. No process is perfect but the cycle can be rolled around again and again to pursue that perfection.