John Hirth's commentary on sales...

"Who breaks the tie...?"

I was in a "pipeline management" meeting with one of our clients, running what we affectionately refer to as a "bid scrub". These meetings are tough, but productive, and help to realistically assess the likelihood that we can close what has been bid. This was a new client and had not yet implemented our selling process... hence there was still a lot of "quote and hope" strategy at work!

Initially non-threatening, people catch on quickly and as they go "painfully" through each opportunity it becomes apparent why and how their deficiencies occur. Defensiveness can sometimes get in the way but people at the end of the process have a distinct advantage and leave with a much better handle on managing their own pipeline. In the end they recognize the futility in trying to justify what is often a weak position. In fact many have the good sense of starting out the story with "I can see I am missing a lot of information but I'll go ahead anyway" and accept the "beating" with humility. As uncomfortable as it may be, it is a vital learning experience that will ultimately help everyone be more successful, make more money and reach their goals (getting what they want out of life).

We were well into discussing one of the last opportunities when we ran into a problem. The deal was far along in the selling process and at the point where the sales person felt comfortable and had made an offer. There were strong buying motives, the project was budgeted and we had qualified the decision process and the people making it. With this information at hand the sales person felt confident enough to say this one is a "lock".

Some questions followed and we found out that there were two different groups with an equal number of people and slightly different agendas. I asked a question that had not been asked by the sales person, "what happens if there is a tie, one team votes one way and the other team votes the other way?". There was silence, and then the answer "I don't know"... followed by a sheepish look of confusion.

However,and with aplomb, the sales person quickly recovered and suggested that a tie would be "highly unlikely..." to which we asked "could it happen", followed by the answer "yes". Then, I asked "if there is a tie who breaks it?". More silence... which confirmed my concern that we had not covered all of the decision makers.

The lesson; when working with multiple decision makers we need to ask "what happens if people can't decide and there is a tie?" The answer will be "the real decision maker". Businesses are not democracies, they are monarchies and for that reason there is always someone who can break the tie. The tie breaker is who you really need to get to and is the "real decision maker".

Action Step- When selling to multiple decision makers ask how many people/departments are involved and if it is an even number make sure you ask the question "if there is a tie who breaks it?" It may be all you need to know to get the deal!

"History repeats itself..." does this old adage apply to sales??

History repeats itself and those who fail to learn the lessons of history are doomed to repeat them! You've heard that one before, yet may not have thought about that old history lesson in relation to your selling career. Well, the value of this lesson has a lot more to do with sales than you might think... let's take a look.

There are great lessons to learn and strategies to build when you understand the conditions under which you win and those under which you lose. Regularly going through a "win, loss" review will allow you to understand where you typically succeed and where you typically fail and why. Once you understand the conditions that drive the outcome of your selling activities you'll know better how to respond to any given situation. You can build new strategies to support your efforts and increase your percentages!

A company we work with did a six month "win, loss" review (history) on price quotes issued to prospects who they had not previously done business with. They believed that quickly responding to requests for price quotes demonstrated a high degree of responsiveness and would win them business. They knew they were not winning often, but were shocked when they found out their efforts had only gotten a 4% return (4% of quotes yielding orders). By looking at history it became quite apparent that they needed to change their strategy of "demonstrating responsiveness". Not only was it not working but it was costing a lot of staff time and resources.

The new strategy, based on what they learned from looking at their history, was to call every request for pricing first and ask questions about the request. They found that most of the time it ended up being a "price check", but also found that through making a personal contact they actually got information and ended up closing 15% of the opportunities instead of 4%. They also were able to identify that most of the "wins" were not being serviced by one vendor exclusively. So, learning from this historical record drove them to ask the question "how many vendors are you currently buying from?" When they got the answer "one" they knew it was unlikely they would win and drove them to ask more questions to qualify the opportunity better.

This ends up being a clear example of "learning from history and not repeating the mistakes of the past!" Learn from history and you'll be winning more of your opportunities. We'll cover some other "history lessons" in upcoming posts... happy hunting!

"Seduced by the big one... "

A few months ago (July), a good friend of mine shared with me that he had one of the biggest deals ever done by his company "on the tee". It was a monster, that would not only "make his year" but catapult him into "company sales history". It would take a lot of work, but in the end, be well worth it and provide the best commission year of his career. I was excited for him but worried that he might be "seduced" by the big deal and lulled into complacency. I asked how the rest of his territory was looking and he suggested "with this one in the bag I don't need anything else!" I bit my tongue and rather than risk our friendship kept my mouth shut.

Unfortunately, I've heard this story too many times and it almost always results in disappointment. First, our ego gets in the way and we are "seduced" by the notoriety we will receive when we land "the big one". Not to mention the ego strokes we get at the water cooler while bragging about the "mother of all deals". Second, it is human nature to think, with this big one on the line, we really won't have to worry about the little ones and it lulls us into a false sense of security and complacency. "I'm a big hitter now, why would I want to worry about all that little stuff? Besides, it's just as easy to close a big one rather than 10 little ones and takes less time.

So, what happens is we focus all of our attention on getting the big one to the exclusion of the little ones. In the end, what ever results occur, we're disappointed. Think about it... what are the possible outcomes?

1. You get the deal, make your year and after the celebration realize that your pipeline for the

next year is empty!

2. You don't get the deal (ouch!), and not only are you in trouble for this year, but that pipeline

for next year is still empty. Even if the deal comes in Q-1, you're in trouble.

3. The deal gets delayed, you look bad for the year, your first quarter stinks, you get fired and

your replacement comes in and gets paid when the big deal closes (talk about adding insult to

injury)! But, they buy you dinner and say thanks!

So, what do we learn? Selling is a numbers game that demands consistency and discipline... you have to be active and make calls. As much as you might be "seduced" into thinking you have found an easy way... sorry, there is no easy way. As soon as you think "you've beaten the bank" or "fixed the game" think again, there are no short cuts or replacements for consistent activity. To be seduced by the big deal and thinking that you have found your way out of "the numbers game" is a mirage. Simply put, sales success is tied to activity and thinking otherwise is suicide!

I just spoke with my friend and asked how the "big deal" was going. All I needed to hear was "well it's kind of a long story..." and I already knew what he was about to tell me. Is the story about to be re-written by you?

Action Step: Create an activity plan for yourself with a daily call goal. Don't let a day go by that does not include activity designed to make sales. If you find yourself with to many opportunities, we can handle that! We'll teach you to close early and relish in abundance! But don't get behind the eight ball and think you can stop calling just because you've been "seduced by the big one!"