Apr 30

To Pitch or Not To Pitch: 10 Questions to Qualify the Opportunity

Categories:

Agency Growth, Client, Growth Tactics, Intention, Intentional Growth, Methodology, Process, Professional Services, Relationship Selling, Revenue

by

 

Get educated before choosing a path

 

If you are of the mind that all opportunities identified should be pitched, then read no further. If you are of the Yogi Berra school of decision making then you know that “When you come to the fork in the road you must take it!”  HOWEVER, it’s much more powerful to educate yourself before making that choice.

If you will pitch anyway even if the client doesn’t give you her budget, or if you are wondering why your success rate is low and why you feel that “we spend too much money & time pitching opportunities that we don’t win” then disciplined opportunity qualification might be a valuable business development exercise to install in your shop.

 

IMPORTANT QUESTIONS TO ASK OF THE CLIENT

  1. What’s the budget?  Seasoned sales pros are OK with this question, everyone else hates the idea of broaching the subject, and not asking in advance is pure folly. (Wouldn’t you want to know that the client has a budget of $500k before doing intense, expensive work on a proposal and pitch for what you think should be a $2 million solution?) Also See: Asking The Client About The Budget: When & How
  2. Who’s the competition? If not who, at least discover how many and use that information to inform your actions.  (You might react differently as part of a qualified, carefully chosen field of four competitors than you would as 1 of 10 or worse, 1 in an open field.)
  3. Is one of the bidders an incumbent? (Hey, wouldn’t that knowledge affect your assessment of the likelihood of winning?)
  4. Is the opportunity real? (This is another tough question for many people to ask, especially if you are more focused on embarrassment than on results. You want to know if the budget is approved, or, if it’s possible the proposal you submit will be used to get approval from higher ups.)
  5. Who is the decision maker? (My use of single tense here is deliberate – in most cases, there will be one key decision maker. However, if there’s a committee doing anything more than evaluation and recommendation, then you are taking on a much more delicate, nuanced, and risky situation.

IMPORTANT QUESTIONS TO ASK YOURSELF 

  1. What are the benefits of a win in short term monetary value AND for long term economic potential? (What if successful execution of a $50k pitch win could lead to a $500k annual budget? Ditto for $500k and $5 million or $5k and $50k …you get the idea.)
  2. Is there a value to the win that’s beyond and different from the dollars? (What’s the portfolio value of the client’s brand name? What would you give or pay for a chance to sharpen skills on a new technology?)
  3. Is there a bottom-line effect? For example, although it might not fit your firm’s other pitch criteria – would it utilize existing under-occupied resources, thus maximizing overall margin return?
  4. Do we budget staff time and out-of-pocket expenses or do we just do whatever is necessary to win and evaluate cost afterward? (Is the budget for the pitch a flat amount regardless, or does it fluctuate in relation to the size and importance of the engagement being pitched?)
  5. Do we know the situations from which we will walk – no matter what?
    1. For example, if the client is asking you to present a solution to their problem:
      1. Will you walk if there’s no fee unless you win?
      2. Will you walk if the fee is less than $XX?

ON CREATING A METHODOLOGY: Do you have a method for evaluating all the answers discovered in your pitch diligence, at one time, weighed together, and compared to success KPIs that your entire team supports? Do you have clear articulated decision criteria for a pitch, or will you pitch anything and everything? (For example, with my clients, I use a proprietary and customized excel spread sheet tool that articulates criteria and weights each one based on prioritization customized to the specific requirements of each firm.)

WHY BOTHER? Qualifying the opportunity will give you a clear idea of what to pitch and when to pass. Yes, I totally subscribe to the notion that you will occasionally trust your gut instinct but when using clear methodology and defined discipline as a basis, you will more often be right than wrong. (See my video post: Qualifying Opportunities Before the Sales Process Begins)

A SIDE BENEFIT: The qualification exercise will surface other issues similar to why you’re not getting the kinds of opportunities you really want and you can then utilize this methodology to focus your demand generation efforts in the proper and intentional direction.

For an additional POV, see Guest Post by Edward Craft, Chief Executive of Premise, Inc., Ruthless Qualification: The Insight You Need to Make Intentional Pursuit Decisions

Share

This post has no tag

Leave comment

Apr 24

Business Development & Sales: Should You Give Them What They Want?

Categories:

Agency Growth, Client, Growth Tactics, Intentional Growth, Negotiation, Professional Services, Relationship Selling, Revenue, Trusted Advisor

by

A very common question asked by my agency clients is: “What should I do when I know my client wants something that’s not the best solution?”  This conundrum presents itself in pitches as well as during the delivery of an already-won assignment and it’s definitely not the best question to consider (see conclusion below).

The answer: “The customer is right sometimes, but never always” and, lest I be accused of stating the obvious, the same applies to us.

Do you have the guts to stand behind what you believe to be right? Are you willing to listen and learn and then change your position when you might be wrong? When all is considered are you willing to risk a loss by standing on the conference room table and shouting: “NO – you’re the expert in your business and I’m the expert in mine and if my firm is to deliver value, we should do it this way”?

YES: Yes, it’s sometimes very risky. Yes, you might lose the business by swimming against the current. Yes, it often seems easier to just give in.

NO: No, you will not lose anyone’s respect by sticking to your expertise and beliefs. No, you will not build the trusted adviser relationship by being “agreeable.” No, though you may win in the short run, your long-term success will be severely impacted by not being seen as a leader from the very first interaction.

CONCLUSION: What’s the right question to consider? If you’re thinking about whether the customer is right, then you are focused on right vs. wrong. Try switching your context to win-win. Does it really matter who is right? I think not. In many years of business development and sales relationships I’ve observed the real successes (those that result in joining the table as trusted advisor) revolve around the achievement of the objective – sometimes, an objective that wasn’t known to and/or articulated by either the seller or buyer at the outset. And no one really cares about who was right.

What stories can you tell from your experience with this issue?

_____________________

For selected relevant discussions of the subject – both Pro & Con visit:

 

____________

Cartoon Credit: The SMB Collective smbcollective.com

Share

This post has no tag

Leave comment

Mar 19

Business Negotiation: The value of creating win-win

Categories:

Agency Growth, Client, Growth Tactics, Intention, Intentional Growth, Negotiation, Professional Services, Relationship Selling, Revenue, Trusted Advisor

by

 

All of us flash the thumbs-up for success

Being a winner at Business Negotiation is NOT the best starting point.

I recently read an Entrepreneur blog post about negotiation that was pretty effective when it highlighted some basic negotiating skills and techniques about which every business person should be aware.

Unfortunately, I had trouble approaching it as a positive learning experience because of the context set by the title of the post. “On being a winner…” directly implies that there will be a loser. It also opens up the door to the notion that a negotiation is a competition.

I loved the notion that the author (The Entrepreneur Staff) said “Negotiation is a game.” In fact, I live by the notion that all of life is a game and when put in the proper context, it can be both productive and fun. However, the conclusion drawn immediately after the game reference that “The goal in negotiation is to win…” completely goes against the grain of everything I think it takes to succeed by building long-term, win-win relationships

And the reference to “…those who are naturally aggressive, fearless and downright ornery tend to make the best negotiators” completely turned me off. Should you really “Find your inner Rottweiler”? If you do, will the person on the other side really want to do business with you again whether you win or not? Will it be any fun? Will you be able to sleep that night?

Sure, some people meet their personal standards and succeed in business by having the other be afraid of them as called out by the author. Let’s just be perfectly clear that there is another way. Start out with idea that you can be the one to take responsibility for ensuring that everyone walks away a winner. After all, by definition, negotiation requires everyone to give up something. The question is do you want to create a successful business event and nurture a strong relationship? Or do you just want to “win” at any cost?

Share

This post has no tag

Leave comment

Jan 23

Lance Armstrong, Truth-telling and The Impact On Business Development

Categories:

Ethics & Integrity in Sales, Image, Intentional Growth, Methodology, Professional Services, Relationship Selling, Revenue, Storytelling, Trusted Advisor

by

choosing between a rock & a hard place

Lance is over. But truth telling as an issue may never be over. We all deal with it everywhere in our lives. Especially in business.

I have always been interested in long-distance cycling – especially as exemplified by the competitiveness of The Tour de France. Then, when Lance surfaced as my hero, I thought cycling and the Tour de France might finally become of interest to many other Americans too. After completing a Boston to NYC group ride, I realized that if I were to be serious about this, I needed to turn in my Hybrid for a real road bike and participate more deeply – so, I bought the US Postal Service Trek (the same model Lance rode in his first Tour win), had it fitted by a pro, and then, one after the other, I rode 500 miles Fairbanks to Anchorage (2001) followed by 535 miles Amsterdam to Paris (2002) – I was won over by the incredible accomplishments of my hero and totally enrolled in the sport.

Then the rumors started flying and, as I diligently watched every Tour, I kept talking to my TV out loud as though he could hear me: “Say it ain’t so, Lance” I said, “Say it ain’t so.” Just like it was allegedly said by a young fan in 1919 to Shoeless Joe Jackson about the Black Sox scandal. His hero was dying right in front of his eyes, as was mine – and we both wanted it to not be true.

Then the bottom fell out. My hero admitted to everything and while exposing himself as the little guy behind the curtain who was manipulating a series of deceptions and he bared the ugly mechanism too. So, what’s the connection to Business Development?

Our business lives are rife with lies and mis-representations – both large and small – and I want to talk about our relationships as human beings and how not valuing our word destroys trust. Some people say lying is a part of our social fabric whether we like it or not, and that there’s nothing we can do – I firmly disagree and offer the following observation on how we can change the world.

Many people have found easy ways to justify lying – they often call it shading the truth. There is a common misconception in the business world that the guy in the salesman’s role will always shade the truth in order to close the deal – you know, caveat emptor and all that.  It’s sad, but true that people say that. However: I say “misconception” because I don’t believe it’s universally true. This is why the Intentional Growth philosophy I employ always works by telling the truth, the whole truth, and nothing but the truth. It’s all about trust. And relationship.

Have you ever forged a relationship with a salesperson who served as your trusted advisor? See? I told you there are exceptions. And I venture to say that the reason you have that relationship is that there has NEVER been a situation with that person where anything was misrepresented to you. When the answer wasn’t known, that’s what you were told. If a performance claim was made, it was backed up by fact. If you were being asked to make a leap-of-faith, the risks were clearly identified for you – without you asking for them. In fact, that person might even talk you out of buying if she thought her product/solution wasn’t right for you. That takes confidence and a commitment to the value of the long-term relationship rather than the short-term result.

So, would I buy anything from my ex-hero Lance? No. Never! What I’ve seen is bad judgment that could be easily replicated, and, even in the public confession, a blatant disregard for the humanity that should exist between people.

However, if my trusted advisor offers me a product/service, or the opportunity to make a leap of faith to buy something about which I’m skeptical? Of course I would – based on our experience together. Because I’ve learned to trust her!

The moral is tell the truth and be known as a trustable truth-teller. One who can be depended upon to tell the truth in all situations… not just some.

Don’t justify lying – ever. Whether it’s because you have cancer. Or because you have many cancer survivors relying on your foundation. Or because you must win in order to entice others to contribute to your foundation in support of those cancer patients. Or because it’s only a little white lie. And especially not because if you don’t hit your sales target, you might lose your job.

Succeed by building win-win, trusted, long-term relationships.

Share

This post has no tag

Leave comment

Jan 15

Selling After The Sale Is Made: A Peek Inside What The Buyer Is Really Thinking

Categories:

Client, Image, Intention, Intentional Growth, Storytelling, Trusted Advisor

by

Are They Thinking The Same Thing?

I had several interesting aha moments last week as I was on the buying end of a real-life sales transaction.

My decision to buy was made shortly after the first presentation, and then the subsequent process between me and the seller (and her team) was all about my comfort factor (due diligence) and insuring that my already-made decision was correct before I signed the deal.

Even though I had publicly declared my interest in buying at the outset (by itself, an unusual step in the business world) our interactions were seeded with comments from the seller like: “What are you waiting for?” & “I’m so excited, you are going to totally succeed once you get up and running.” And, as you can probably already imagine, she made frequent references to how I’m making the right decision (as though I needed convincing.)

It was very hard for me not to put on my trainer’s/manager’s hat, grab the seller by the shoulders and say: NONONONO! You should be listening to me – not convincing me. You should be offering the answers to my questions – even though you think I should be beyond asking them. And, every time you meet one of my demands, you should be saying something like: “What else can I do to help you satisfy your due-diligence, I want your requirements to be met.”

When you ask the customer “What would you like to know?” do you ask just to check off a box on your selling to-do list? Well, DON’T, because that shows up like a sore thumb. Ask because you are genuinely interested and because you want to partner with the customer as a trusted advisor.  As soon as I realized what was happening, elements of previously non-existent doubt appeared. I then asked several others to look at my decision matrix to ensure I wasn’t overlooking something – that I hadn’t decided too soon. Yes, even though I was already a convert, I wanted to work with someone who was more interested in me and my needs than in closing the deal.

Can you be trusted to put the Client’s/Customer’s requirements first – knowing that it’s a short hop to closing the deal once they are truly met?

Let’s sharpen our listening skills and truly be trusted advisors!

Do you have a personal story to tell where you were on the receiving end of over-selling?

Share

This post has no tag

1 comment

Dec 19

The Real Reason You Lost The Sale + 10 Other Explanations

Categories:

Agency Growth, Client, Ethics & Integrity in Sales, Growth Tactics, Intention, Intentional Growth, Negotiation, Professional Services, Qualifying, Relationship Selling, Revenue, Trusted Advisor

by

Mind Mapping Cause & Effect: The First Domino Did It!

 

 

What’s the real reason you lost the sale? Sorry, you’ll never know the whole truth – never!

With this concept as a foundation, the following 10 additional points can be of great value in preparing to win the next deal.

 

 

 

 

When you win, your customer is your newest best friend and partner. She wants you to know what worked in the pitch process and what didn’t, and she wants you to correct those few things she found lacking, so she’s willing to tell you EVERYthing in the interest of building a powerful relationship. She’ll tell you what you did that worked and what you did that worked against you. What the competition did. Why the scales ultimately tipped in your direction plus the things she’s worried about, and much more.

However, when you lose there are many reasons that may never be communicated.

In any given situation you should assume there is  a great deal you simply don’t know. And, there’s a lot you can improve based on what you do know… so don’t fret.

10 “other” explanations:

  1. The bull’s-eye: You are told you missed the defined “bull’s eye” by offering something other than what was requested or needed. The “needed” word is critical here. Often, you will recommend what you think is the best possible solution (even if it’s out-of-the-box) and the client, thinking he knows best what he needs, will ding you for not being directly responsive. In this case lift your head up high, make certain you part on a good note while leaving the channels of communication open wide (think long-term relationship) and exit with a smile knowing that eventually you WILL be able to repair this bridge.
  2. Price: This arena calls for a positive, clearly-thought-through, strategic response. If you know that price is critical, then you should expect price to trump everything else. It doesn’t work to call “foul” if you went into it with open eyes and a price lower than yours won – not even if your suggestion was a better solution over-all.
  3. Relationship: If you are a regular reader of my blog you know that I see building relationships (and long-term ones) as the key to success. If you are focused on building a successful win-win relationship, then everything else will follow naturally. For example: you will find it easy to ask hard questions and with those answers you will be able to craft a winning solution
  4. Quality: If you were asked to give a “sample” or “taste” of the solution you are proposing, it had better be more than just a simple paragraph or “sketch.” See my post: “Anything worth doing is worth over-doing.“ Keep in mind that the entire reason for running you through the pitch ringer is to up the decision-maker’s comfort level and if you are playing, you should definitely play to win. The option always exists to back out beofre and/or during the process.
  5. Trust: Are you asking the decision maker to trust you? Are you relying on your reputation for executing for bigger, known brands with bigger budgets? Or, are you pulling out all the stops and demonstrating in the fabric of everything you do and say in this situation that you can absolutely deliver on the promise you are making?
  6. Chemistry: This refers to an elusive and all-inclusive formula covering every aspect of the business development process commencing with: how you answered the phone when they first asked you to pitch, moving through the pre-proposal Q&A, and into evaluating the people you added to the team and how they comported themselves. Oh, come on, you know how it felt. And believe me, if it felt awkward to you, it did for the client as well.  And, if it was awkward at this stage for either of you it simply will not work and you should consider yourself lucky to have lost.
  7. External Influence: Is there someone who has a direct relationship that’s longer, deeper and older than the one you have been building? Is it possible that the competition is (literally) married to the customer? (Hey, you know it happens.) Is it possible the CEO (whom you may never have met and may never meet) has recommended someone else and you have been included to “round out the field?” Most of these factors can be uncovered in a deep and thorough qualifying process. Make sure you conduct one and that you walk away from the pitch if that’s indicated – no matter how much you have already invested or how tempting it may be to fight for what you see as an incredible and unusual prize.
  8. History & Reputation: There are many ways to monitor your reputation and to address the things that others say about you. Do them. And do the best you can to manage them. All the time. And know that there may be inaccurate stuff said by others that you’ll never hear but your customer will.  “Relationship building” incorporating open and honest two-way communication is the best way to ensure you hear all the comments/rumors in a timely and direct manner so you can address them. And, at the risk of my sounding like “Johnny one-note” keep in mind that you will probably never hear/know all the diverse factors affecting the decision. Go for it and don’t get  get too significant.
  9. Procurement: The purchasing department often gets an undeserved bad rap here. They are looking for the best possible deal and aren’t doing their jobs if they don’t find such deal. Rather than fighting their POV, you can educate here… show them the hidden value that’s not apparent on a spreadsheet – they’ll be grateful. Take on this challenge and negotiate in good faith to a win-win solution. If you are selling widgets, the conversation will be very different than if you are selling intangible services – especially creative ones. <See discussion of “price” in #3 above.>
  10. Mis-communication: You were possibly unaware that the message you delivered about “X” was totally mis-heard and/or mis-understood and you may have missed an opportunity to clarify and confirm to make sure that wasn’t going to happen. OR after the verbal indication that you “won” – maybe in the negotiation of Terms & Conditions – you dropped your commitment. Remember it ain’t a deal until it’s inked and even then you need to keep communicating and temperature-testing.

CONCLUSION:  If you really MUST know why you lost, I don’t know how to assist. The best I can do is suggest you re-read: “The real reason you lost the sale?” above. Then, if you want to start increasing your win rate going forward, pay attention to points number 1-10.

__________________

Picture credit: blog.iqmatrix.com

Share

This post has no tag

Leave comment

Dec 03

12 Selling tips for non-sales people

Categories:

Agency Growth, Client, Process, Professional Services, Relationship Selling, Revenue

by

 

"Sales" is a good thing! Really!!

 

 

While the principles I outline here apply in all selling situations, this post is specifically about selling services – not products – and so the examples I use are based on my experiences with ad agencies, PR agencies, consultancies, law firms, real estate, and other professional services environments

 

 

12 Selling tips for non-sales people (interpret these appropriately to your environment):

  1. Everyone who works for a company is part of the sales effort whether senior management says so or not. (But you knew that already, didn’t you?)
  2. Although there will be many who see their job as responsible/accountable for increasing revenue (they are usually people in Sales, Business Development, Account Services, Marketing, and more)  they are not able to achieve/maintain customer revenue growth by themselves. YOU do matter.
  3. Contrary to common thought, associating yourself with the word “sales” is not a bad thing. All businesses must have sales of some form to cause revenue or there’s no business and therefore no job for you. (Do not be afraid to tell your manager that you care and you’d like to be kept in the sales loop – sometimes they don’t think about you because the focus is elsewhere.)
  4. Ask questions and make sure you understand whatever it is you need to know. Don’t confuse being “on the team” with being “the person who closes.” Be respectful of the challenge faced by the selling team. See yourself as support but don’t minimize your importance. Clients in this day and age want to know that everyone in the firm is looking out for their best interests.
  5. In business, the grown-ups know and admit that someone needs to fill business needs via buying and someone else needs to drive the meeting of those needs by selling. (Grown-up? Really? Do we have to be open and direct about this? YES!)
  6. The client or customer consistently comes in contact with the organization at multiple different points and each one is a clear brand impression. Some of those impressions are very obvious; some are subtle and hidden.
  7. You are consistently presented with opportunities to be a brand ambassador with non-customers as well. At industry events, online in social media, at the local lunch place, and anywhere there are real, live people including, for example: job applicants, suppliers, family & friends of employees and student visitors
  8. At each brand impression there is an impact on the customer’s interest in doing business with the firm and you have an opportunity to make that impression a positive one. This includes many people in many different situations – aside from the obvious pitch meeting, consider these:
    1. the receptionist who is cordial and attentive
    2. the designer and programmer who attend a meeting to represent delivery
    3. the sales person who extends the invitation to interact with the firm and may be “out front” until delivery takes over
    4. the person from accounting who says hello while passing in the hallway
    5. the conversation with a current client, who though she is already a user of the firms services, could be lured away by the competition at any time
  9. If you see something, say something. Knowledge and awareness support success. The people in account services, sales, and marketing definitely want to know if you think the relationship has been or could be impacted based on something you observed, overheard, or thought.
  10.  Every interaction matters in sales! Absolutely EVERY single thing affects the context of the relationship being built with the client!
  11.  Regardless of there being a potential “payoff” or not, being nice, positive, open, and considerate is just the right thing to do.
  12.  Last, but not least, if you have passion to sell, go for it. The skills can be taught, but the passion is a natural requirement that is rarely present.
Share

This post has no tag

Leave comment

Nov 26

7 Key Questions to Audit Your 2013 Revenue Growth Plans

Categories:

Agency Growth, Client, Growth Tactics, Intentional Growth, Process, Professional Services, Revenue

by

 
GrowthWhat better time to assess your revenue growth plans? Delegate or do it yourself, with your senior staff, or with outside support, but do it – now.

“Now” can be anytime of the year, however, in the last month of 2012 and into the first of 2013 we have an unusual opportunity to reassess our situation as a very difficult economy begins to show signs of recovery.

My “Intentional Growth Revenue Planning Audit” (IGRPA) is intended as a tool for asking hard but powerful questions about something we often take for granted. Many business people are convinced that meeting the current growth target number is enough and that one can do that by executing more and better.

How did you get your 2013 revenue growth target? Is it a percentage that is consistent with past growth rates? Did HQ (or your boss) determine it for you? Are you going after the same types of sales to the same clients as you have for years? Is “growth” for its own sake enough and have you asked the tough questions about whether slowing growth and improving profitability might be better?

In working with my clients I found so many of these potential interim questions to ask/answer that I decided focus would be much more effective and efficient so I narrowed down the critical exercise to these 7 key questions.

The audit process provides a process for answering seven key questions:

  1. Where are we going?
  2. How will we grow our Revenue to get there?
  3. Are the KPIs we will use to measure success simple, clear, and easily determined?
  4. Are the necessary elements in place?
  5. Has the plan including execution and measurement details been documented?
  6. Has the documentation been clearly communicated throughout the organization?
  7. Is one person accountable?

This audit can be done within a range of efforts from merely thinking about it (better than doing nothing) through a one-day facilitated exercise (a minimal examination resulting in a simple written plan), to a five day, in-depth analysis (the maximum effort I believe is necessary).

Merely asking these questions of yourself and the Executive Team without any formal process will cause focus in a powerful manner. And, if you are willing to commit resource(s) to treat it more seriously, you will find that there is probably huge un-realized potential in your future growth.

Share

This post has no tag

2 comments

Sep 25

ASKING THE CLIENT ABOUT THE BUDGET: WHEN & HOW

Categories:

Client, Intentional Growth, Negotiation, Qualifying, Relationship Selling, Revenue, Solution Selling, Trusted Advisor

by

Are you willing to talk money?

 

How? Just go for it! (There is no formula.)

When? As early as possible!

Yes, it really is as simple as that.

I know, I know, there are always delicate, subjective, subtle issues to take into account and you wouldn’t want to be inappropriate – or worse, rude! Yikes!

However, in my experience there are many situations where the question does not get asked at all – and that is worse than asking at the wrong time.

On products vs. services: Dealing with the price of a product that can be read from a price list raises very different issues. In this post I’m addressing only professional services situations when the solution is made to order – even if it is being built on an earlier foundation.

Here are examples of some common services selling situations involving discussion of the budget and my comment on each:

1. You think: The client does not want to tell you his budget because he fears if he tells you how much, then that’s what you’ll charge him!

MY RESPONSE: It’s true – some people will always do that. What about you? Are you able to be objective? Will you do that too, or will you just use the maximum as a guideline? OR, can you have a conversation with the client in which you say: “I will give you the most I can for your money and I invite you to tell all the competitors the budget and judge every proposal based on what we offer for the same money.”

2. You think: He has already told you that the priority is to have you (the expert in creating something to meet his needs) tell him what it should cost – after all, that expertise is what he came to you for.

MY RESPONSE: Are you flattered to be thought of as an expert? (You should be.) Yet, you could use this particular comment as part of the qualification process. Are you being asked to submit a solution “on spec”? If you are, will the client go with the lowest budget no matter what? Is this opportunity really worth going after? (See my earlier post: “12 Questions To Answer Before Agreeing To Spec Work”)

3. You think: He doesn’t really have a budget and that’s why I can’t figure out if he wants to build a playground or a new Yankee Stadium, so I won’t ask and embarrass him.

MY RESPONSE: Hmm, thinking this way indicates a definite “Us vs. Them” POV. I suggest you trade that in for “We’re in this together and the best way to meet the client’s needs is to function as a team, jointly creating a win-win scenario.” If, in fact, he doesn’t have a budget you can use that as a kick off point to determine what will work best and offer to help him sell it inside the organization in order to get the proper budget. Guiding Principle in all Business Development and Sales: Make your client a hero!

4. You think: If He asks Me to guestimate how much it will cost, and I tell him, then I might scare him away, be called on to justify my otherwise educated guess, or worse – something I haven’t thought of might come up.

MY RESPONSE: Once again, is it teamwork towards a win-win – or is it an adversarial relationship? Maybe you say: “I’ll be glad to give you a range estimate, but I don’t have enough information yet. Let’s spend some time together and talk through all the needs and issues.” (Make sense?) OR: “I have no idea and can’t guarantee anything at this time, but I have built similar solutions in the range from $XX to $YY.” NOTE: I’d only use this in rare circumstances.

5. You think: If I ask him for the budget, and he actually voices a specific number, that locks us into that budget for the entire pitch process (even if there’s no competition.)

MY RESPONSE: Nope. Not if you use the language of “we’re all in this together.” How about saying: “Thank you very much. That will be extremely helpful in designing a solution that best meets your needs within a budget that makes sense for your business. I’ll check back with you shortly and let you know if I think we’ll be under or over that budget number and you can advise me then how to proceed.”

Yes, there are many other scenarios and I’m hoping the examples used here will empower you and get your juices flowing to have the conversation at the appropriate time and as early as possible.

After all, you will not be dropped from consideration because you asked. And, if you are, I contend that is a potential client you are better off without. Qualify. Qualify. Qualify.

Think consultative selling, long-term relationship, building a win-win scenario, and so on.

 

___________________

Dollar Signs photo credit to: digitalfireflymarketing.com

Share

This post has no tag

Leave comment

Sep 16

ANYTHING WORTH DOING IS WORTH OVERDOING!

Categories:

Agency Growth, Client, Ethics & Integrity in Sales, Intentional Growth, Professional Services, Relationship Selling, Revenue, Trusted Advisor

by

Over The Top: An inviting retail window

As long as you're going to do it ...

 

I was prompted to write this post after reading Seth Godin’s blog entry titled “Worth doing?” and I drew an interesting conclusion from his brief, yet very powerful post.

My friend Marty always says: “Anything worth doing is worth over-doing” and to us and our small circle of friends and family, that has always meant something like: “Don’t bother doing something at any level if it’s not worth doing, and, if it’s worth doing, give it your all, totally!” So we all apply that principle in our personal lives. I also apply it in business – especially in Business Development – when I’m on the hunt, preparing the pitch, pitching, AND following up to build the relationship.

The converse is also true: If an opportunity doesn’t pass my qualification screening that means it is not “worth doing” so I ignore it totally. No, I do not respond to every opportunity – even though as a new-business guy, I am sometimes tempted by the rule of percentages.

About the interesting conclusion I drew? Seth asked are you going to: “… invest your heart and soul into something that’s important or waste it selling something you’re not proud of?” That’s a very powerful challenge. I guess there are people who still sell whatever it is they are asked to sell because, after all, it’s a job and there’s a mortgage to pay, etc., etc. I can’t imagine myself doing that – can you? Wouldn’t you rather operate by telling your client/customer that your solutions are wonderful and you believe in them? Would you be willing to risk telling your clients something they don’t want to hear and maybe jeopardizing an otherwise easy sale? (Whatever happened to integrity? To being a “trusted” advisor?)

And, if you don’t have enough to sell that you are truly proud of – why would you not be looking for a position at another firm?

___________________________________

<photo credit: Joseph Olewitz>

Share

This post has no tag

2 comments

Aug 21

So You Want To Grow Your Revenue – Why?

Categories:

Agency Growth, Client, Growth Tactics, Intention, Intentional Growth, Professional Services, Revenue

by

"Intentional Growth" or growth for its own sake?

My consultations with Companies selling Services (agencies, consultancies and more) often start with the potential client asking: “I want to grow my revenue, can you help?” and my first response usually is: “Why do you want to grow?”

Is my focus on “Intentional Growth” TM always relevant? You might be tempted at this point to say I’m being silly because you think everyone wants to grow their business – or should.  Most people are slaves to the notion that if something is good, more is better. And true, many people should be growing their business for an assortment of reasons ranging from shareholder demands for share price increases to the situations where more volume equals proportionately more profit. However, in some situations growth is not the answer – especially not when it is just for the sake of growth.

 

Examples of reasons some folks want to grow revenues:

  • Your bonus depends on it
  • You can’t imagine why not
  • Your exit strategy depends on growth because of the selling multiple in your industry
  • More revenue seems like the only thing that will offset your high fixed overhead
  • Your clients tell you they hired your (larger) competition because you are simply not big enough to justify selling the risks to their purchasing department
  • You lost a sale because your current size kept you from scaling beyond the first engagement
  • Etc., etc., and so on.

Examples of alternative ways to improve your business without necessarily growing revenues:

  • Focus on the most profitable products and/or lines of business service offerings
  • Focus on the most profitable clients and/or industry segments
  • Fire unprofitable and/or high-maintenance clients
  • Reduce overhead and minimize cost of delivery
  • Etc., etc., and more and more.

NOTE: Except for sales techniques that improve margins, these examples may be better addressed by management consultants and accountants than by me because I am focused on top line growth. However you can determine the right direction for your business by asking the right questions in the context of a two-part examination:

  1. Objectives:
    1. What are your business objectives for the next 6, 12, 24, and 60 months?
    2. What are your personal objectives, that is, where do you want to be in 24 and 60 months?
  2. SWOT analysis: What did you learn from your analysis of Strengths, Weaknesses, Opportunities and Threats? (YES, you should do a current SWOT analysis, regardless of the size of your business.)

 

If your answers are specific and detailed, this exercise will make sense and it will give you good advice for answering the basic question of should you grow your business and, if yes, how? For example: “We will achieve $XX revenue growth in ____ service line, by YY date” is a much better answer than saying “Improve revenue over last year.”

If your answers do not make any sense to you, then they are probably not specific enough.

Remember, the best way to grow is with Intention: to meet a specific plan, by a specific time for a valuable, defined reason. Growth for growth’s sake is often helter-skelter and causes disruption, confusion, and lack of focus.

____________________________

<Picture credit: techiemania.com>

Share

This post has no tag

Leave comment

Aug 07

“The Customer Is Always Right,” “Solution Selling Is Dead,” and other silly nonsense statements.

Categories:

Client, Growth Tactics, Intention, Methodology, Professional Services, Relationship Selling, Revenue, Solution Selling, Trusted Advisor

by

How long will you sit in that tree thinking about the methodology?

Earlier this week I participated in a #usguyschat on Twitter led by Joe Ruiz (@sms_joe).  The discussion was heated and there was a lot to learn from all the different Points Of View. Joe had suggested everyone read the HBR blog post “The End of Solution Sales” by Brent Adamson, Matthew Dixon, and Nicholas Toman of Corporate Executive Board. I did as Joe suggested and I also listened to the audio interview on the same page. Then I discovered “If the Customer Is Always Right, You’re in Trouble” a follow-up post by the same authors further addressing what they describe as the reaction “…stir among B2B sales professionals and pundits alike.” After reading both I was primed for a long blog post of my own on the subject – based not on any formal research but on my personal experience. I hope you enjoy making it to the end of this tome and that you join the discussion by posting your opinion and reaction.

The authors have done extensive and detailed research and created an awesome opening for a very important discussion – I thank them for that. While there are probably as many ways to sell as there are salespeople, there are also common threads from which we can all learn. I agree with a lot of what the authors have said and taking the time to dig into the details they discovered in the research was a valuable exercise. For this post I am going to address only what I think is missing, and those points that may possibly be giving the wrong impression because they are out of context.

They say “The hardest thing about B2B selling today is that customers don’t need you the way they used to…” I Disagree. That implies quantity of need and, if anything, I see quantity being in even greater need. The issue is that buyers are much smarter now and they want the winner salesperson, as a trusted advisor, in their corner, at all times. That position of trust and respect does not come easily!

Based on many definitions I’ve seen of “solution” I have created and consistently used one definition.

 

So, for this discussion, a “solution” is:

An action, generated by relationship, serving as a mutually agreed upon resolution of a problem or issue, that provides some measurable improvement. <see Wikipedia for original>

 

The Corporate Executive Board study referred to in the HBR frequently points to the “B2B” participants interviewed and it’s fascinating that the authors don’t make a distinction between selling services and selling products – both of which require different approaches and different skillsets. It seems to me that the analogy here is to the difference between sailing and speed boats – though they are both about travelling on the water and overlap in many areas, they require different skills and sensitivity.

And what about success rates where “success” is marked as the closing of a sale or deal? Instead, the writers talk about how much the customer “enjoyed” the interaction or how much homework & knowledge she had gained before meeting with the salesperson. A direct quote from the research: “…we found that B2B customers were nearly 60% of the way through a typical purchase before they reached out to a sales rep for input.” That’s the fault of the salesperson, not the customer/client, and it’s the result of the salesperson’s late arrival to the game, or worse: the lack of a trusted-advisor relationship.

In my experience, too many salespeople and their managers see themselves as hammers and EVERYone with a wallet as a nail. In that scenario, they don’t walk away from any potential sale – even those not offering win-win endings. Not only is that bad for business but it can certainly slant a research project’s results, ergo: Is it more important to “get a meeting” or to close a sale?

As to my title above for this post, the HBR authors use some tried and true versions of old-time adages that I will address here:

  • “If the Customer Is Always Right, You’re in Trouble” is the title of one post, yet the authors never discuss this question directly, though the reader is able to infer that they believe the customer is NOT always right. Duh! Those of us who partner with the customer/client stopped using “The Customer Is Always Right” many years ago. Of course they’re not; we learn from each other in a partnership and neither the customer/client, nor the salesperson, is always right.

NOTE: I fervently carry the banner of killing the use of terms like “vendor” and “supplier.” Those terms clearly imply us/them instead of partnership. After all, we don’t call the customer/client “vendee” do we?

  • “The End of Solution Selling” and “Solution Selling Is Dead” are used to say there is a new sheriff in town and anyone using the “old” methods is subject to being locked up in the pokey until the territorial Marshall/Judge arrives. Yet we all know (intuitively, if nothing else) that a successful relationship seller is focused on building the long-term relationship and the transaction comes out of that relationship – not the other way around. So she will do whatever is appropriate to create a win-win – textbook selling methodology be damned. (Does anyone hear “innovate”? “Disrupt”? “Commit to win-win”?)

MY CONCLUSION:

Regardless of the value inherent in academically necessary research and reporting, what really matters is having a quiver full of all sorts of arrows, being guided by principles, and knowing which arrow to pull in which situations.

For those of us in the trenches, there is no ego gain or paycheck bonus in being identified by the sheriff as using the “proper” selling technique. There are, however, many wins in constantly bringing home the deals that help grow the company on target, meeting the pre-determined goals, and at the allowable cost. And if I were to emphasize any aspect, I’d say: and do it for the long term.

Build the relationship first. Create win-win scenarios and if you have to wait for your win while you make your customer/client look like a genius to her boss, then wait! Be willing to make the hard decisions: do ten times more preparation than you think you need, be willing to be disruptive, walk away from deals you shouldn’t be in, tell your client if you think he’s making a mistake and show him how to win – with no mind to whether that benefits you or your company. You may be surprised how regularly your guidance and opinions will be sought as a trusted advisor.

Out of those relationships come the deals and the wins – not the other way around.

If you disagree, please speak up. I’d love to have you participate in a dialogue/debate.

Share

This post has no tag

Leave comment

Jun 27

BUSINESS DEVELOPMENT: ARE YOU GIVING 100%? – part 2

Categories:

Agency Growth, Client, Growth Tactics, Intention, Negotiation, Professional Services, Relationship Selling, Revenue, Storytelling, Trusted Advisor

by

Are you swimming in water you don't see?

 

After posting the earlier V-blog of the same title I was told by several people that this is a very obvious concept that is rarely considered and others felt it is more complicated than it seems. I think it’s really simple and I wrote this deeper discussion to discuss the topic in more depth.

First, I suggest setting aside consideration of all the complex relationships that occur in any business development endeavor. As you read this post, you may be tempted to say: “…but what about_____?” And you’d be right – there are myriad complexities, inter-relationships, and even entanglements and we cannot possibly cover them all. For this discussion, let’s consider only two very specific planes:

  1. The relationship between you and your client/customer
  2. The relationship between you and your team

Although in my earlier video post on the subject my focus is on the client, how you deal with your team is very important and directly parallel to everything I’ve said. It is critical if you want the credit for completing a brilliant transaction, that you be willing to stand and own anything that might occur – win, lose, or draw.

I am convinced it all begins with your relationship to the transaction process and the client. Once you own the 100% concept there, you will be able to apply it to your team, to all the others that have touch-points on the path from initial contact to closing the deal, and then to continuing the client relationship for a long period of time. What’s important to you? Are you selling to the client, serving her, building a relationship, making your monthly numbers, or looking to put another gold star on the chart in the war room (bragging rights)? Yes, it will be slightly different for everyone – every time.

There’s no room to wiggle here. Taking 100% responsibility means “taking 100% responsibility” – nothing more, nothing less. It’s neither “I’ll take 100% responsibility for my 50%” NOR “Let’s each take 50% and that will cover 100%.” Let’s go a bit deeper into some of the steps in a theoretical process.

  1. Define Objective
    • Get clear on the goal (choose from the paragraph above and any other possibilities)
    • Express that goal in precise terminology. Not “winning the deal” but something more like ALL of the following:
    • Make sure the proposal and or pitch presentation serve both the client’s objectives and those of your firm or agency. (Yes, this can be discussed with the client during the process)
    • Get a decision by _____ Date (Be realistic, AND precise)
    • Handling post-win negotiations successfully in a win-win environment with the client
    • Signing the contract on ___Date, at $____ price or profit
    • Any other points that are necessary and appropriate
  2. Laser-focus on that objective
  3. Embark on the work/delivery won
  4. Enter into a relationship-building mode (relationships, to be successful, must be 2-way and win-win)
  5. Recognize when something didn’t go the way it was planned and deal with the issue from the POV of what you can do now to correct this and get back on track to the goals. NOT getting stuck in a POV that: If only he or she had done their part, this wouldn’t have happened.

Are you committed to the idea that it’s all about team, and cooperation, and convinced this will never work?  If so, you are correct – teamwork and cooperation are still very important. Does it seem impossible? Are you wondering if there’s a secret? Well there is.

I promise that if you operate truly from the place called “I am 100% responsible and I will do whatever it takes to complete the current task successfully” you will suddenly see the world in a different way. It’s not easy to understand. Switching context doesn’t always make sense. In fact, success here doesn’t require understanding at all.

Imagine describing water to a fish. It can’t be done successfully because the fish swims around in water all day long and doesn’t know anything other than water. However, if you reach in the water, grab the fish by the tail and lift him out – he will suddenly understand water AND that there is something else. I’m not suggesting you suddenly be gasping for air, however, once you approach Business Development by adopting the style that you are 100% responsible, you will find a newer, easier path to success – your client will be forever grateful for the relationship as will your team.

And WOW, if you are part of a complete team (including the client) who are all 100% committed to achieving a win-win result, that would be one helluva time at work – wouldn’t it?

Have you been successful taking 100% responsibility on your watch? Have you had problems with the concept? Do you have another approach that works? Please share your comments and questions below – whether pro or con – we all have a lot to learn from each other.

________________

image credit: Iconshock | www.iconshock.com

Share

This post has no tag

Leave comment

Jun 19

ARE YOU A SLAVE TO YOUR BIZ DEV METHODOLOGY AND BELIEFS?

Categories:

Agency Growth, Client, Growth Tactics, Negotiation, Professional Services, Qualifying, Relationship Selling, Social Media

by

Don't Get Stuck in A Process Tunnel

I was just reading a very well-thought-through AdAge article entitled “Don’t Let Your Process Get the Best of You” written by Bryan Christian, the president/principal of Proof Advertising. In Bryan’s discussion he’s focused on “…opening jobs, briefing and producing work” – all valuable steps once the client commitment is made. However, all professional services companies and agencies in particular should realize that process traps exist everywhere in the business cycle including Business Development. We must be real in all our business efforts – not automatons slaved to what we’ve done in the past that worked. A point clearly made by Bryan is “…a Culture That Can Work Together Is Key.” Yes, it is, and in Business Development too as I wrote in my post on 6 steps to building an agency sales culture.

Many years ago I was on a sales call with a new addition to the staff. He was a bit green in terms of field experience and I had high hopes because of what I saw while he was being trained. WOW, did he ever “own” the formal skills of selling. As I watched him start he made me proud. A strong opening, clear and honest communication, joint goals set for the presentation and the beginning of a true relationship dialogue. Then he went off the rails. OR, I really should say he stayed on the rails when he should have gotten off. About 15 minutes in, the client started giving classic buy signals. It was clear that he understood the offer and was ready to talk price, commitment, and contract… yet my champion kept going through the methodologies he had been taught by all the masters and training tools including opening, probing, meeting objections, supporting, resolving concerns, handling indifference, and then closing – but only at the end of a very thorough exercise. I actually thought I might learn a new skill myself as he kept digging into his bag of tricks. And the client was extremely patient in allowing us to search in every nook and cranny.

Yes, he managed to conclude the deal successfully. Go ahead… ask me if I bit my tongue into small chunks because I was committed to being an observer who would not interrupt  ;-)

In our post-call debrief, I congratulated him (after all, the result is ultimately what matters) and then asked him many questions starting out with: “What were you doing and why were you doing it?” I asked him if he noticed the many “buy signals” and he described a few (I saw some he had missed). I asked why he didn’t move directly to the close when he had indications the customer was ready to close and he said he was making sure that he used all the tools so that the sale was complete and thorough and that nothing would come up later that could rock the boat when we were in contract stage.

A lesson learned for both of us here. I came face to face with the realization that some people are more focused on and interested in the process than the result. He realized that by “selling past the sale” he endangered the close based on potential customer reactions and also wasted valuable time that could have been used in building the relationship.

We all have processes, systems, beliefs and even good luck ceremonies (just like ball-players). Yet, it’s much more important and valuable to keep our eye on the intended result and that sometimes requires stepping away from the process and methodology to observe what’s happening.

Let us know what you think and please share any relevant circumstances you have experienced

______________________

Image credit: dskdesign / 123RF Stock Photo

Share

This post has no tag

Leave comment

Jun 14

BUSINESS DEVELOPMENT: ARE YOU GIVING 100%?

Categories:

Agency Growth, Client, Intention, Negotiation, Professional Services, Relationship Selling, Revenue

by

Can you point to situations where if someone hadn’t let you down you would have definitely succeeded? Especially when you were offering your services in a competitive environment and the client consistently “mis-led” you …or didn’t do what he promised?

We can all point to similar situations and in this video I suggest that taking 100% of the responsibility creates a huge space within which you can create extraordinary business development success.

Let us know what you think. And describe your experiences for everyone to benefit

Share

This post has no tag

4 comments

Older posts «