Okay you are ready to kick your sales efforts into gear. You believe in your products and services. You can easily articulate every feature and all the benefits they provide to customers. You even know everything there is to know about your competitors - and why you're the better choice. So you are feeling confident. But wait...
Sales occur when customers are ready, willing and able to buy. So simply understanding your products and services and your key competition ignores an important factor in actually getting the sale today or in the near future - priorities and budgets.
In tough economic times, businesses and homeowners only have a certain amount of 'discretionary' funds available. How they spend those funds is based on where your product or service fits into their overall priorities now or in the near future. As a business, you need to understand your customers - not as it relates to your products - but as it relates to their spending. Think share of wallet (total budget), not share of market (your specialty area).
For example, Sam owns a printing company. His company is recognized for providing quality pieces with quick turnaround - much better than competition. During the sales process, Sam uncovers that the prospect uses a lot of printed materials, quality and quick-turnaround are important and the company has funding (budgets) for discretionary spending. Sam put together a quote and was anxious to close another sale. When he followed up, the prospect thanked him and said 'we're not ready right now but we'll keep you in mind for the future'.
So what happened? Sam didn't realize, because he didn't ask, that the prospect had a bigger priority - hiring additional staff to meet his service delivery needs. His proposal focused exclusively on printing new marketing and sales materials. Could he have positioned his services different had he known?
For those that target consumers or homeowners, here's an example of how you can use this approach. John owns a karate school that targets parents with children 7-12 years old. Because he competes for household resources (money and time), he views his competition as activities that children participate in (such as music lessons, sports, etc.) As a result, he positions karate classes as a way for parents to help children develop life skills such as discipline, confidence, etc. It's a message that is compelling and different from other activities that use family resources.
So whether you sell to businesses or consumers, consider the following: How well do you know and understand the 'real' issues or challenges your target customers face? Would understanding these help you in positioning your services, creating a sense of urgency or modifying your offerings to meet current needs? For most businesses, the answer is yes.
Tips to Improve Sales Effectiveness
Understand your target customers' challenges, not just those relating to your products or services. Ask broader and better questions such as 'What is the number 1 challenge you face in your business (or home) and How is this impacting your business (or your life)?' For businesses, challenges might include revenue, profit, time, hiring good people, etc. For consumers it might be time, health, money, etc.
Identify who you compete against for 'share of wallet' and be able to position your products and services accordingly.
Start the sales process empty, with an open mind and no pre-conceived assumptions. Dig deep to understand why and really listen. For example, if a business owner indicates that profit is a key challenge, do not assume they need more leads. Their profit may have to do with leads, but it may be tied to sales conversion, pricing strategies, quality delivery, team, etc. Do not assume to know the answer without asking more questions.
Adjust product or service offerings to changes in the market. As the economy changes, so will the needs of your customers and prospects. Offerings that sold well and profitably six months ago, may not be as viable today.
Have a process to 'stay connected' with prospects. Since timing is a key to sales conversion, use a combination of print, email, phone and even social networking sites to stay in front of prospects. A 'no' today does not mean forever. Use the 20/60/20 Rule: 20% are open to buying, 60% are on the fence and 20% are resistant to buying or change. Create a prospect pipeline of future business growth and be consistent.
Don't forget about current clients or customers - stay connected with them too and remember to ask about their changing needs! They may have new or different opportunities today.
Sales occur when customers are ready, willing and able to buy. So simply understanding your products and services and your key competition ignores an important factor in actually getting the sale today or in the near future - priorities and budgets.
In tough economic times, businesses and homeowners only have a certain amount of 'discretionary' funds available. How they spend those funds is based on where your product or service fits into their overall priorities now or in the near future. As a business, you need to understand your customers - not as it relates to your products - but as it relates to their spending. Think share of wallet (total budget), not share of market (your specialty area).
For example, Sam owns a printing company. His company is recognized for providing quality pieces with quick turnaround - much better than competition. During the sales process, Sam uncovers that the prospect uses a lot of printed materials, quality and quick-turnaround are important and the company has funding (budgets) for discretionary spending. Sam put together a quote and was anxious to close another sale. When he followed up, the prospect thanked him and said 'we're not ready right now but we'll keep you in mind for the future'.
So what happened? Sam didn't realize, because he didn't ask, that the prospect had a bigger priority - hiring additional staff to meet his service delivery needs. His proposal focused exclusively on printing new marketing and sales materials. Could he have positioned his services different had he known?
For those that target consumers or homeowners, here's an example of how you can use this approach. John owns a karate school that targets parents with children 7-12 years old. Because he competes for household resources (money and time), he views his competition as activities that children participate in (such as music lessons, sports, etc.) As a result, he positions karate classes as a way for parents to help children develop life skills such as discipline, confidence, etc. It's a message that is compelling and different from other activities that use family resources.
So whether you sell to businesses or consumers, consider the following: How well do you know and understand the 'real' issues or challenges your target customers face? Would understanding these help you in positioning your services, creating a sense of urgency or modifying your offerings to meet current needs? For most businesses, the answer is yes.
Tips to Improve Sales Effectiveness
Understand your target customers' challenges, not just those relating to your products or services. Ask broader and better questions such as 'What is the number 1 challenge you face in your business (or home) and How is this impacting your business (or your life)?' For businesses, challenges might include revenue, profit, time, hiring good people, etc. For consumers it might be time, health, money, etc.
Identify who you compete against for 'share of wallet' and be able to position your products and services accordingly.
Start the sales process empty, with an open mind and no pre-conceived assumptions. Dig deep to understand why and really listen. For example, if a business owner indicates that profit is a key challenge, do not assume they need more leads. Their profit may have to do with leads, but it may be tied to sales conversion, pricing strategies, quality delivery, team, etc. Do not assume to know the answer without asking more questions.
Adjust product or service offerings to changes in the market. As the economy changes, so will the needs of your customers and prospects. Offerings that sold well and profitably six months ago, may not be as viable today.
Have a process to 'stay connected' with prospects. Since timing is a key to sales conversion, use a combination of print, email, phone and even social networking sites to stay in front of prospects. A 'no' today does not mean forever. Use the 20/60/20 Rule: 20% are open to buying, 60% are on the fence and 20% are resistant to buying or change. Create a prospect pipeline of future business growth and be consistent.
Don't forget about current clients or customers - stay connected with them too and remember to ask about their changing needs! They may have new or different opportunities today.
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