Two Types of Information

One of the deadliest traps of a sales call is predictability: the mark of a boring order-taker selling on price versus value. Customers have been conditioned over the years to anticipate a boring, predictable sales call-the kind where a representative shows up and dispenses a well-rehearsed pitch. Sometimes customers themselves open the call by saying, Okay, lets hear your pitch, or Tell me about your company. In fact, customers often communicate their displeasure with the these routine sales calls by not granting second appointments. The first appointment must be worthwhile or you can forget about a second appointment. Some customers go as far as to say, Okay, come in but youve only got 15 minutes. That is simply a way to shield themselves from another lengthy feature dump.

What should you do if your customer looks at his watch and says that youve only got five minutes? Believe me, it happens. Sadly enough, the majority of salespeople take that as an invitation to recite the Cliffs Notes version of their pitch. If you answered, Id tell him all about our company and what we do, you may want to reconsider your approach. Avoid the overwhelming temptation to feature dump. During the first few seconds acknowledge the limited time frame and suggest youll be finished in four and a half minutes. Then give the customer a 45-second infomercial as to who you are and what you do, highlighting the distinctive benefits that may be of interest. Then ask permission to ask a few questions to learn more about their business to explore if there is a possible fit. During your probing, the customer will clearly see your sincerity and obvious interest. Take the last 30 seconds to acknowledge your time is up and reschedule another appointment. I suggest that the vast majority of the time the customer will be impressed with your obvious interest and extend the appointment by saying, Its okay, please continue. Remember, if customers feel you may be able to help their business or alleviate an existing inconvenience, they are interested. Your five-minute appointment will often turn into a one-hour conversation.

During the sales call it is the type of information being dispensed by the salesperson that labels the call

as routine and boring, or interesting and worthwhile for the customer. There are two types of information. First, there is what I call so-what information, usually associated with sales representatives. Its the classic feature dump where the representative is working through a well-rehearsed, enthusiastic pitch about all the features but generating a so-what reaction from the customer. Even the sales representative gets bored with it.

The second type of information is, Heres how I can help your business, usually associated with a sales entrepreneur. Surprisingly, this approach is a refreshing change for your customer. It breaks the typical mold of a sales call and brings something new to the table, a genuine interest in the customer. Of course this type of information just doesnt happen. Its the result of effective planning, preparation, and smart probing. Once you have identified relevant features (via probing), bridge them to the corresponding benefits. We have more on bridging and probing in Chapter 7. I offer a statistic that should surprise you. Your competitor can offer approximately 90% of the same features you can. I call it the duplication factor. Why do you think they are called competitors? Because they duplicate many of the same things you do, maybe even better. To compete, they mirror several of the same features you offer. The key is to differentiate yourself, emphasizing that the business advantage your company can offer is you. Your competitors dont have you. Anyone can copy and improve a product or service, match a competitors features, copy their sales promotions, or undercut prices, but they cant copy or duplicate you. Apply your own unique style, your own signature, to your Sequential Model. Remember, customers are looking to buy relationships (peace of mind), not just products.

I dont mean to suggest that product knowledge is not important. Of course it is. I agree that you must know what you are talking about in terms of specifications, technical applications, manufacturing specifications, industry standards, and your competitors offerings. Learn as much about your competitors as you can. Make it part of your planning. However, although this information is important, it wont close a sale for you. Remember, only 20% of the decision to buy from you is based on your product knowledge.

Account Classification: Three Types

Managing your account base is often a question of maintaining existing customers and finding new customers who are most likely to buy, then engaging your resources to maximize the opportunity. However, some accounts are more profitable than others and lets face it, profit drives your business. You must maximize your returns by satisfying the greatest number of profitable customers. Return can be measured in a number of ways: ROI (return on investment)-the amount of money and time spent on an account; ROE (return on energy)-energy expended to secure the account; ROO (return on occasion)-leads or referrals you get while golfing or participating at an occasion outside normal selling activities or selling hours. ROO extends your limited selling hours and ROT (return on your time equity) -asks how wisely are you spending your allotted time.

Not all customers have the same buying potential. The portion of unprofitable accounts is usually greater than you think. I remind you of the 80/20 rule: 80% of your sales come from only 20% of your customers. Therefore, sales entrepreneurs need to classify customers on the basis of their sales potential, to avoid spending too much time with low-potential accounts. Remember, there are only 1,760 selling hours in one entire year. We cant afford to be busy servicing unproductive, unprofitable accounts. Dont be fooled by revenue numbers. Revenue alone doesnt keep a business afloat, profits do. Pricing your product or service at or below cost is not smart business, but many sales representatives are seduced into a quick sale where profit is sacrificed for revenue. Your business must be managed by utilizing all of the resources at your disposal, maximizing your return in the most productive manner. To that end I offer a very simple account classification strategy: the ABC analysis. Its not new but it certainly works. Use this method to evaluate and classify each of your existing and potential accounts.

A Accounts

Your A accounts deserve the most attention. Heres why: They have high potential return: (ROI/ROE/ROO/ROT) They require minimum invested time They are low maintenance They are cooperative if problems arise They have a high contribution based on margins/profit They have a short sales cycle

B Accounts

B accounts are not quite as attractive as your As, but certainly worth pursuing. Heres why: They have good potential return: (ROI/ROE/ROO/ROT) They require a high amount of invested time They have higher maintenance They are patient with problems They have a good contribution based on margins/profit They have a longer sales cycle

C Accounts

I fondly refer to a C account as a pain in the asset. C accounts usually distract you from your A and B accounts, offering little or no return for your investment. Heres why:

They offer low/no potential return: (ROI/ROE/ROO/ROT)

They require an excessive amount of time

They are high maintenance, lots of babysitting

They are impatient when problems arise

They provide minimal contribution based on low or no margins/profits They have very long sales cycle

These accounts are literally a pain. They whine about this and that, finding the darndest things to complain about. In spite of your efforts they are never satisfied.

As you classify your accounts, I strongly recommend you continue to work closely with your As and Bs, and toss your Cs. Thats right, get rid of them. With limited selling hours, you cant possibly