The post “How to Cope With Losing a Big Account” generated a reader comment so brilliant that I’m raising it to the level of a full post. In that comment, frequent Sales Machine contributor IanP provides some true business wisdom about why companies lose big accounts — and what to do to prevent it. Here’s the comment, slightly edited by yours truly.
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Why did you lose that big, long-standing account? Probably due to one or more of the following reasons:
REASON #1. The competition undercut you in price. This happened because sales rep wasn’t serving the customer well, by not understanding that new market dynamics were forcing the price down. Alternatively, the buyer may not have realized that the new vendor was using loss leaders to win the account. If so, the customer will pay heavily in the future, because he’ll adjust his cost structures to match an artificial and temporary price.
REASON #2 The customer was unhappy with your service. This is probably the most important and common reason for switching suppliers. Far too many sales reps switch off when a customer becomes a routine call and forget to ’sell’ to them. A good sales rep always treats a repeat order as a new sale and makes sure existing customers are visited regularly. A significant secondary role of every sales rep is to act as the customer’s change agent within the vendor company and to champion the customer’s needs and schedules against other priorities.
REASON #3 The competition offered something extra to win the sale. As with the reasons above, the sales rep man wasn’t paying attention, understanding what his customer really wanted and what would tempt him to switch suppliers. This is what ‘added value’ really is in the B2B world. A sales rep’s primary role is to glean this information!
REASON #4 The customer’s needs changed. Perhaps the customer’s market changed and the old vendor didn’t fit the bill. This has the same cause as reason #2: the sales rep wasn’t doing the job effectively. The rep should be constantly advising his or her own firm when technology or markets change.
By the way, the loss of a long standing account should never be a surprise. If it is, then the sales rep has failed to communicate effectively, either with his customer or with his employer… and usually both.
Remember, though, the fault can run the other way, too, so don’t rush too quickly to blame yourself!
A truly professional buyer remains in touch with different levels in the long-standing vendor company (e.g. with the sales desk or a ‘C’ level sales executive) and should be flagging failures and changes. At the very least, the buyer should be giving appropriate notice of changes in buying policy, so that the vendor can absorb the pain.
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READERS: If you like this post, please let IanP know in a comment!
For sales professionals accustomed the casual business culture of the United States, Japan presents unusual problems. While it’s easy to memorize a list of “DOs and DON’Ts” the subtleties of business interactions are more difficult. Here’s a quick way to test whether you “get” the difference between selling in the U.S. and selling in Japan.
Scenario: You’re developing a sales opportunity in Japan and, for reasons outside your control, you need to close the deal NOW. Which of the three responses below would be considered, in Japan, a “hard sell” tactic:
CLOSE #1: “What do we need to do for you to make a decision today?”
CLOSE #2: “Are you interested in buying option one or option two?”
CLOSE #3: “I think we are all in agreement that it makes sense for us to investigate moving forward with some future planning. May I suggest that we set up another planning meeting, with the understanding that, as my company assigns resources, we may need a partial purchase order prior to the next meeting?”
Here are two people I respect — sales guru Keith Rosen and Genius.com CEO David Thompson — in apparent agreement that “Sales 2.0″ (where the entire B2B sales cycle is pursued online) will largely replace “Sales 1.0″ (where B2B sales cycle is pursued in person).
I’ve been writing a lot about Sales 2.0 lately, mostly for SellingPower magazine, and I’ve come to the conclusion that there’s definitely something in that view.
While I don’t think that many multi-million dollar deals will be cut without some face-to-face meetings, I do think that many fairly complex B2B purchases can and will be prospected, developed, and even closed online.
Product demos are the hardest thing that most sales reps ever do. A demo has all the elements of a sales presentation — with the additional burden of having to show off the product. There’s lots to think about, and a lot can go wrong. With that in mind, here are 15 rules for making product demos more effective:
RULE #1: Use the demo as a proof point. A good demonstration should reinforce the sales message and “prove” that the sales claims are true.
RULE #2. Focus on the decision-makers. Make sure that the demo shows clearly what in the software for THEM!
RULE #3. Don’t try to show too much. Focus the demo on an appropriate goal, like “show the CFO how the ROI claims are true”.
RULE #4. Don’t repeat yourself. Repetition doesn’t add credibility. It just makes the demo boring. So don’t show a feature more than once.
RULE #5. Don’t anticipate feature needs. Unless you are 100 percent certain that a specific feature is of interest, don’t demo it.
RULE #6. Test to see whether you’re done. When you have given your demo, check to see whether the prospect understands and is satisfied.
RULE #7. Never demonstrate to non-stakeholders. Demoing to all and sundry creates opportunities for something to go wrong.
RULE #8. Take control of the demonstration. If you let the customer lead the demo, you could getting into areas that your product doesn’t do well.
RULE #9. Give demonstrations at the right time. There’s a natural time in the sales cycle when the demo will have the most impact. Use it.
RULE #10. Don’t talk too techie. Focus on what the product will do for the prospect’s firm, not on how your product functions internally.
RULE #11. Scrap the jargon. Phrases like “best in class” and “bleeding edge” just make you look foolish, especially in front of a tech-savvy audience.
RULE #12. Pay attention to the plot. A good demo tells a story with a beginning, middle and end. The plot ALWAYS stars the customer (not YOU!).
RULE #13. Prepare for disaster. Provide, prior to the demo, a plausible excuse why it might not work, ideally one that can’t be blamed on you.
RULE #14. Have a backup plan. Have some other sales-oriented activity that can fill the gap if the demo encounters a problem.
RULE #15. No spokesmodels, please! Hiring eye candy to do your demos just tells customers you think they’re stupid and easily distracted.
The above is based on my 20 years in the trenches doing (among other things) demonstrations of complex B2B software. For more on how to give good demo, see last week’s post “How to Flawlessly Demonstrate a Product.“
There are few career events more devastating than losing a big account. This short video (featuring Dr. Kerry Sulkowicz of the Boswell group) describes exactly how the sales team can recover more quickly and hopefully learn something from the experience.
Here’s a summary:
Loss of the account can feel devastating.
The leader must act quickly.
Tell the truth about the impact.
Figure out what really went wrong and why.
Treat it as an organizational loss.
Don’t cast blame or find scapegoats.
Refocus on new activity as soon as possible.
Full Disclosure: I write for SellingPower magazine, the producers of this video,
which also has a distribution agreement with BNET for video content.
When it comes to success in selling, your brain can be your own worst enemy. If you’re like most sales pros, your brain has a tendency to chatter away about the future, when having a conversation with a customer. Even though you’re trying to listen, your brain is sending out all sorts of messages like:
“If I don’t make my quota for the month, my boss is gonna kill me…”
“If I don’t make this sale, I won’t be able to pay my kid’s tuition…”
“I hope this guy doesn’t tell a boring story, because I’ve got a flight in two hours…”
“What should say say next, in response to what he’s saying now…”
Etc. Etc. Etc.
This monkey-like mental chatter frantically pulls your attention away from the customer and towards towards your own priorities and goals. That can be fatal to actually making the sale because you’ll miss cues and clues about what the CUSTOMER wants.
The solution is to treat selling more as a process and less as an achievement. Here’s how:
STEP #1: Open your posture. Body language and engaged listening are inter-related. When the customer is talking, you’ll be more interested, and seem more interested, if your expression and posture indicates that you are interested. This is not trickery; it’s everyday human behavior.
STEP #2: Look AT the customer. When you’re thinking of the future, or something that you’re going to say, your eyes will lose focus or drift slightly upwards. Keeping your eyes FOCUSED on the customer (without staring through the customer) forces your mind into the moment.
STEP #3: Be aware of your breathing. Because you’re human, it’s nearly impossible to keep all of your thoughts away from yourself. Rather than listen to your internal chatter, become aware of the sound and flow of your breathing, which won’t distract from your focus on the customer.
STEP #4: Stop to take notes. When the customer says something that you’re sure is important, rather than breaking your focus by glancing down and making a note, ask for a moment’s pause, and then make a note. Segmenting the two activities ensures that you’re present during the conversation.
STEP #5: Trust your instincts. You may believe you need to analyze everything that’s going on in the conversation in order to come up with the “right” response. However, you’re more likely to say the “right” thing if you’re actively listening and then responding in a way that “feels” right.
STEP #6: Be patient with yourself. Selling is the study of a lifetime, so you can’t expect to grasp every concept or master every technique immediately. Fortunately, what’s most important in sales is the combination of intention and attention. Make the sale about the customer. It’s really that simple.
The above is based partly on my own experience, but mostly on a conversation I had on this subject a few years ago with the ever-engaging Jeff Seeley, CEO of the sales training firm Carew International.
When negotiating the final terms of complex deals, many sales pros find themselves in a situation where the customer holds all the cards. Because you’ve invested time in the opportunity, and may have made quota commitments to your manager, your customers feel they can simply dictate terms. That’s a recipe for a win-lose outcome, with YOU on the losing end if the deal.
To create a win-win outcome, you must continually accumulate a counter-balancing “negotiating power” throughout the sales cycle. Here’s how it’s done:
Strategy #1: Eliminate or thwart competitive threats.
Convince the customer that your product or service is the only one that can adequately fulfill the customer’s needs.
Strategy #2. Develop at least three contacts inside the customer firm. Provide perspective to your solution-building process and information about the motivations and politics inside the customer’s firm.
Strategy #3. Show the customer your ability to see beyond the obvious. The customer can’t know everything about the firm, much less the market, so being an “outsider” gives you the ability to see situations more objectively.
Strategy #4. Create the legitimacy that comes from consistency.
Remain aware of the strengths and limitations of your offerings, adhere to your firm’s policies and procedures, and be willing to explain why they make sense.
Strategy #5. Position all interactions in terms of mutual success. A productive relationship is based upon mutual respect and understanding, and a sense of working together to achieve mutual goals.
Strategy #6. Generate a solution that matches the customer’s needs.
Your value to the customer skyrockets when you help the customer to crystallize needs and visualize the right solution.
Strategy #7: Differentiate yourself from other sales reps.
Communicate clearly how you, as an individual, are a unique resource to the customer and use your own unique personality to your advantage.
The above is largely based on a conversation that I had recently with negotiation guru Randall Murphy, CEO of Acclivus R3.
READERS: Any other strategies that should be included?
Respect is the basis for trust, and trust is the basis for any long-term business relationship. Here are seven possible ways to earn respect from your customers. Choose the item that is LEAST important.
Well, it’s official. Ol’ Bernie got 150 years. I was going to run this series of videos at the end of the week (as part of the “Friday Funnies” feature in this blog). In light of the news, though, I thought it today would be better.
Here are five of the funniest videos on the web about the Madoff scandal. As usual, I’ve included some polls so that you can vote on your favorite. Here’s the first. Enjoy!
Most sales professionals believe their products and services are strategic to their customers, but that’s usually not the case. To discover whether you — and what you’re selling — is truly strategic to your customers, take this quick quiz.
Instructions: I’ll present you with six statements about your interactions with your customers. Read each statement and then rate how much you agree that the statement describes your relationships.
Geoffrey James
Geoffrey James has sold and written hundreds of features, articles and columns for national publications including Wired, Men's Health, Business 2.0, SellingPower, Brand World, Computer Gaming World, CIO, The New York Times and (of course) BNET. He is the author of seven books, including Business Wisdom of the Electronic Elite (translated into seven languages and selected by four book clubs), and The Tao of Programming (widely quoted on the Web as a "canonical book of... more »
Dell, HP, Lenovo and other hardware vendors could be looking at the end of their PC businesses within four years, as enterprises start implementing a more network-based approach to delivering computing power and applications.
The post “How to Cope With Losing a Big Account” generated a reader comment so brilliant that I’m raising it to the level of a full post. In that comment, frequent Sales Machine contributor IanP provides some true business wisdom about why companies lose big accounts — and what to do to prevent it. Here’s the comment, slightly edited by yours truly.
For sales professionals accustomed the casual business culture of the United States, Japan presents unusual problems. While it’s easy to memorize a list of “DOs and DON’Ts” the subtleties of business interactions are more difficult. Here’s a quick way to test whether you “get” the difference between selling in the U.S. and selling in Japan.
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Product demos are the hardest thing that most sales reps ever do. A demo has all the elements of a sales presentation — with the additional burden of having to show off the product. There’s lots to think about, and a lot can go wrong. With that in mind, here are 15 rules for making product demos more effective:
When it comes to success in selling, your brain can be your own worst enemy. If you’re like most sales pros, your brain has a tendency to chatter away about the future, when having a conversation with a customer. Even though you’re trying to listen, your brain is sending out all sorts of messages like:
When negotiating the final terms of complex deals, many sales pros find themselves in a situation where the customer holds all the cards. Because you’ve invested time in the opportunity, and may have made quota commitments to your manager, your customers feel they can simply dictate terms. That’s a recipe for a win-lose outcome, with YOU on the losing end if the deal.
Respect is the basis for trust, and trust is the basis for any long-term business relationship. Here are seven possible ways to earn respect from your customers. Choose the item that is LEAST important.
Well, it’s official. Ol’ Bernie got 150 years. I was going to run this series of videos at the end of the week (as part of the “Friday Funnies” feature in this blog). In light of the news, though, I thought it today would be better.
Most sales professionals believe their products and services are strategic to their customers, but that’s usually not the case. To discover whether you — and what you’re selling — is truly strategic to your customers, take this quick quiz.
