The YouTube personality wanted, no they demanded, that I Like, Subscribe and “hit the bell” icon. You are asking me to do this at the start of your video. A few minutes in is not enough time to decide to commit to do any of these things.
I don’t mind the over the top self-promotion, but I clicked on this channel to learn more about selling value. The personality stated his name and said, “This video is about five things you need to know about value selling.” Without offering anything of value, he wanted me to like, subscribe and hit the bell? My finger was already moving closer to the browser’s exit button. It was time to get to the office anyway.
I thought about the YouTube experience on my way to the office. What if I approached a customer this way? What if I asked them for something without providing something of value to them first? What kind of response would I get? More than likely, not the response I expect nor want.
I expect more sales from customers who value our new operational capability. Being able to meet our delivery date promises has to bring benefits. But, getting more sales is a big ask. The value we can provide will need to be well understood by the customers. And my hope is our sales folks will want to sell our new reliability capability, too. Getting them to do that is a much bigger ask than what I’m asking from our customers.
Initial Preparations
First, I need to work through the way to present our reliability pitch so that it doesn’t trigger the YouTube effect which I experienced this morning. I don’t want to raise any more barriers than I have to. I get the feeling it will be hard enough for many of our customers to believe. But, I worry more about our sales folks not understanding it. Or worse, dismissing it. Many of the them have years of experience selling things in a conventional way. Selling our products features and benefits. And, they have plenty of history of broken promised I’ve inflicted on them by my own organization.
Getting Help
The help I needed was not easy to find. I thought of Gary, our non-sales software salesman, but he was difficult to connect with. He sold me and he did it in a way that was respectful, exposed the cracks in my thinking. My Admin kept getting his voice mail, but the next day he called back.
I explained to him what I was attempting to do. I was going to pitch the benefits of our new on-time delivery performance during an upcoming sales meeting. I’m assuming if the customer sees value in offer (buying from a supplier who can meet their due date promises), then we are in a much better position to close a deal. Of course, the value they perceive has to be high enough to make the switch from their current suppler, too.
Building Rapport
I asked him, “How do I build rapport with our customer before I get into the guts of the meeting?”
Gary said, “Wrong question. In my many years of experience, the customer is already dreading the meeting before you walk in the door. They also have many years of experience dealing with salespeople who want to sell them something. And, don’t forget they have heard companies like yours break promises about when their order will be delivered. Not a good track record to build a relationship on. It’s nothing personal, that’s the way it is.”
I said, “Then what do I do? The meeting is a week from today.”
Gary said, “The main thing is to prevent the customer from raising any more objections to your pitch. You’re already starting off on the wrong foot, so be very careful about what comes out of your mouth. One way to start is to be curious and empathetic about their situation. We’ll assume you’ll be meeting with your customer procurement representative. What do you know about them that establishes some common ground?”
Fess Up
I said, “This is going to sound unconventional. I would start by saying something about how we’ve broken their trust by not living up to our due date promises.”
I’ve learned to admit when I’ve been wrong and let the other person know about it. But before I do, I’ve also learned to be ready to make amends for the wrong I’ve done. Some people shrug it off and say it’s no big deal. But, the relationship is never the same. To make amends is not saying you’ll do something different. You need to be prepared to do something different and do it. Actions do speak louder than words. As soon as possible.
Gary said, “That’s a good start. It definitely something they can relate to and you will be able to let them you may have a solution to this issue. But, don’t forget there are also many reasons for why they bought from you in the past. You don’t have to be too hard on yourself or your company.”
I said, “Good point, we make quality products, price them fairly, and have good customer service.”
Evaluate Your Own Environment First
He said, “But, also realize what kind of environment you are working in. It’s a multi-project environment. This environment exists within your own company, as you well know, but your company is only one of many within your customer’s environment. That’s a multi-project environment, too. What is a key feature of this kind of environment?”
I exclaimed, “There is a high level of uncertainty.”
“Right, and there is plenty to be uncertain about. For example, your customer requirements are unique, meeting their quality specifications can be difficult, and doing so at a price they are willing to pay all come with challenges. And, may times there is a high level of uncertainty about one or more of them,” he said.
I said, “So customers know what they are going to get, but are forced to guess when they will get it?”
He said, “You are getting the hang of it. Why do you need me again?” I heard splashing in the background.
I said, “To me this is the easy part. I can relate very well to their poor due date performance complaints since they’ve told us over and over again they are a problem. Sometimes I’m surprised when they don’t say anything about them.”
Gary said with a giggle, “They have given up mentioning them since they don’t see any hope in them every being resolved. This will also be why it will be necessary for you to take them through how your performance has changed and why it will continue to perform well for them. But, we’ll talk about that later.”
I said, “OK, but what’s next. I’m sure they haven’t been sold because I can describe their environment.”
The Negatives in the Environment Are Easy to Find
Gary said, “How about describing the negative effects of how you impact their environment? At this stage you have to be willing to be self depreciating and fess up to the size of the pain your company has inflicted on them.”
I said, “That’s going to be a tough pill for some of our folks to swallow. But, where do I get this information? I don’t work inside my customer’s company.”
He said, “You know more than you realize. What happens when one of your own suppliers delivers late and what are the significant issues they cause you?”
I said, “I see, that is easy. Our planned production schedules change. The priorities given to our subcontractors change. And, even the planned commitments we make to customers are effected.”
Gary said, “What about your workers’ efficiencies, equipment use, and work in process?”
I said, “Those take a hit, too. More work in process can mean our lead times go up. The relationships with our subcontractors suffers and we may not have the leverage to work with the one’s we want to.”
Linking Negative Effects to Financial Performance
He said, “See, you do know enough already. But, you’re not done yet. What effect do these issues have on your customer’s financial performance? Try to get as close as you can to generally agreed upon financial measurements they may be using. At this stage you want to expose the financial damage of late deliveries. Or, what is the financial damage of working with unreliable suppliers.”
I said, “This is also easy to understand since we have measures in place to support our cost control efforts. Our CEO is always looking for ways to improve our efficiencies. And, our new found focus on on-time performance. Is that what you mean?”
He said, “Yes, but what specific financial measurements might they be using to track these things.”
I said, “There are a many things, like labor costs, carrying costs, overhead costs, penalties and other cost of sales. And, there are always ways to link these costs to your customer’s sales, margins and cash flow.”
I said, “That’s a lot to keep track of.”
The Hazards of Being a Salesperson
Gary said, “The customer knows that you are a salesperson. You are there to offer them a potential solution and they will be willing to listen to you for a short while. That’s why you need to prepare well and practice getting to this point in your pitch as soon as possible. And, don’t forget, without raising any objections along the way.”
He continued, “Some general questions about people, equipment, materials used, etc. are a crucial part of the inquiry process. But, they have to be asked at the right time. Customers tend to lose their patience when they are asked too many questions. Each question asked by experienced salespeople has a purpose. I urge you to prepare well.”
Basic Preparations
The preparation I need to do is an important part of capitalizing on our good performance. If this first meeting, or any later meetings, with customers don’t advance the deal towards closing on a deal, I’ll be stuck. But, being stuck doesn’t mean I’m dead in the water, it just means I have to find what went wrong and make corrections for the next time. If there is a next time.
I needed to change the subject for a few minutes. I was thinking to far into the future and making predictions which may or may not come true. There are too many variables to consider and I can’t be the one at fault if things go wrong. Remember, I need to be curious and keep an open mind. I do want to hear everything the customers are saying. I can’t take it personally.
I said, “When do I talk about the things we’ve done to improve our performance?”
Gary said, “Before you do that, you must build a solid base to present your offer as the best solution to the customer’s problems. The prospect has already been thinking about ways to deal with their problems. If we would like the customer to listen to us, we must block any unsatisfactory direction for solution that they might have in mind, as soon as possible.”
I said, “After the customer has agreed that they have a big enough problem, what’s next?”
The Criteria for a Good Solution
He said, “Yes, you must show what you are offering meets the most important criterion. Then you can use these criterion to transition from talking about their problems and talking about your solution.”
In the background of Gary’s phone, I heard a child’s excited screech. And, then a splash.
Overcoming Obstacles
Gary said, “I’ve got to go soon, so pay attention to this next part. The customer might raise some obstacles during your presentation. The procurement folks are masters at finding ways which will prevent them from making you and offer. Any obstacle raised by the customer should be written down and the discussed with them. But, delay them until until all the characteristics of your offer have been presented. In most cases, you will have overcome their obstacles anyway.”
I said, “Do I need to get the customer’s agreement on the actions to take to overcome these obstacles?”
Gary continued, “Any way you can make them a part of the solution is usually a good thing. The more obstacles you can overcome, the more likely the sale will move ahead. In general, first do no harm. Don’t say something which will raise an obstacle in the first place. This is your primary mission. Second, if they do raise an obstacle, help them to be part of the solution. Also, be prepared to change your offer or the detailed terms and conditions.”
I said, “If nothing else, I’ll have a clear idea about what’s blocking the sale. But, most important, I will have raised the customer’s level of trust in our ability to perform.”
He said, “If all goes well, they may even agree to give you an opportunity to bid on the next project they have. If they don’t offer, be prepared to ask them to send you their next Request for Proposal. Don’t expect them to pull business from one supplier to another in mid-stream.”
Don’t Forget to Follow-up On Their New Understanding
I said, “Follow-up is important. That’s seems so obvious now. We can’t take it for granted that it will happen naturally.”
Gary sad, “That’s right. Remember, what you will go through with the customer will be something new, something they have never heard before. It will be hard for them to believe until they see it happen. And, even then they may not believe you. They may think it’s a fluke. Once you start being reliable, you have to continue being reliable. They will be waiting for you to slip up and be able to say ‘I told you so’.
The phone went dead and I took from my head and looked at it. Gary did spend a lot of time with me and he was with his grand children. I’m glad he was enjoying himself.
Now, it was time for me to enjoy myself, too. But, in a different way. I’ll feel much better once I’ve prepared for the upcoming sales call. I want to make some progress convincing others of the benefits of our reliability offer.