Hi!
My name is c.j., and
here's the October 2008 issue of Psyche-Selling
TM
eNewsletter.
September
was supposed to be the month of harvesting, but for me it seems to be
the month of sowing the seeds for next year. Seems like I should
be living in the Southern Hemisphere. The best news is that I've
been invited to speak at the 2009 American
Society for Training & Development (ASTD) conference in May/ June
next year.
Anyhow, from my conversations
with some prospective clients, a number of them asked the same question,
"how do you proceed with the sales, when you have no access whatsoever
with the key decision maker?" This is especially so, given
the tough economic situation that we are facing.
The good
news is, we do have such experiences in the past, and we are still
overcoming such challenges today, and are we glad to share our
insights with you today!
Hence, this month's
topics:
-
How to Win More Sales in Tough
Times, when You don't Even Know the Key
Decision Makers?; and
-
How to Lead Your Sales Force through Tough Times?
This issue's main article is on "How
to Win More Sales in Tough Times, when You
don't Even Know the Key Decision Makers?",
and as the title says, it's a common challenge faced by sales people in
China, and the key strategies can be applied worldwide.
In brief:
-
The higher the value of your
products and services, the more complex your sales situation you
will have, and it is unlikely for the client to make such
complex buying decisions by just 1 person;
-
When you don't know any of
their key decision maker, go look for someone who has some bits
of influence, willing to listen to you and willing to feed
information to you;
-
Instead of just trashing sales leads that do
not provide decision makers' contacts, sales people could
probably access if such leads may actually lead to some very big
deals.
To read the rest of this
newsletter, pls.
click
here (http://www.psycheselling.com/page4.html).
In the
meantime, I'll also be conducting public seminars on related topics.
How to Win
More Sales in Tough Times, when You don't
Even Know the Key Decision Makers?
by c.j.
Ng
As the story goes, about 10-15 years ago, if
you want to do business in China, all you
need to do is to find out who the Key
Decision Maker is (in terms of making buying
decisions), buy him some gifts, bring him
for some extravagant meals, have a great
time at a KTV and them offer some generous
kick-backs. Once you go through this
"standard operating procedure", you will get
the sale.
Unfortunately, that's just a myth. It's a myth simply because
before you get to the Key Decision Maker, you'd have to "pay" your way
past all the layers of gatekeepers and other kinds of people, before you
finally get to see your target.
While
selling in China is relying a lot lesser on kick-backs and KTV trips
these days, sales people will still have to find innovative ways to deal
with gatekeepers, influencers and a host of other people whom may make
or break your deal.
Even
when you are given the mobile number of a Key Decision Maker and called
her, chances are that she will ask you to speak with one of her staff
first. Key Decision Makers or senior executives are so busy these
days that they will ask their staff (also known as gatekeepers) to
handle your calls, especially when it is your first time calling them.
In most cases,
unless you have limitless connections with Key Decision Makers in the
market, there will be many times that you will have to seek for new
business, without even knowing who the Key Decision Makers are.
Gaining the
Advantage with the Grassroots
The first things to ask yourself when you are given a lead that is
nowhere near the Key Decision Maker are:
-
Is this deal big or strategic enough to
worth my while for a pro-longed approach
to closing it? and
-
Is this lead (the contact person)
influential enough to understand what's
going on and feed me with vital
information?
The most precious resource a sales person
has is time, as you can spend time with good
prospects, and you can also waste it on
rotten ones. Hence, you will have to
judge if this deal is worth your time to
pursue in the first place.
Once you establish that this is a deal that
is worth your while, then the next thing is
to evaluate the quality of the first contact
person.
Huthwaite
calls this your Focus of Receptivity, that
is to find out who in your prospect's
information are receptive to you, and are
willing to provide you with the necessary
information that points to the right
direction.
One experience we had was to know this
branch manager of a company during a
networking event. The branch manager
feels that what we do may be useful for
them, but decision-making is made at their
corporate office in Beijing. The
branch manager then gave us details on whom
to contact, BUT more importantly,
information about what's happening in their
company with regards to sales performance,
and what kinds of help the company may need.
The latter information gave us the
Valid Business Reasons to address the
critical areas of concern of these decision
makers.
Cultivating
your Informants
You
will also need to give a very good reason
your your Focus of Receptivity, i.e. your
"informants", to provide you with vital
information.
Conventional thinking will be you treat them
nice, and buy them gifts and offer
"kickbacks" if need be. Unfortunately,
most "informants" CANNOT be cultivated in
this way. Here's why:
-
Most of your target "informants", especially if they are middle
management, are likely to be people with great career prospects
and are focused on their careers. As such, they would like
to be perceived to be acting in the best interests of their
companies at ALL times;
-
Most of your target "informants" are also very concerned about
whether you can help them move to greater heights. Hence,
they'd like to have both assurances (that you won't jeopardise
their careers) AND you can help them make greater contributions
to their companies at ALL times;
-
Most of your target "informants" are professionals (or at least
so in their own minds), and would feel at ease if they know they
are dealing with other professionals as well. Hence, the
offering of kick-backs or other material favours will just
backfire your plan
Ultimately, whether or not you can cultivate
your "informants" depend on your ability to
build trust, and your sincere intention to
add value to your customers. According
to a 14-year study
conducted with 80,000 customers by
HR Chally,
customers would like sales people to:
-
Understand how their business operate;
-
Substantiate the value these customers
can get;
-
Focus on providing a solution that works
rather than just ;
-
Be available whenever they need you;
-
Provide innovative ways to solve their
problems; etc.
As such, the personal interests of your
"informants" are entwined with their
corporate ones. That means you'd have
to address both personal AND corporate
interests when you cultivate your
"informants". China has progressed
enough to be so sophisticated, that most
middle managers are emphasizing more at
their career paths than the usual kick-backs
and KTV sessions. Sure, there will be
those who will sacrifice their
organisation's well-being for their personal
greed, but these are getting lesser each
day.
If you are making the initial contact with a
new customer, be prepared to call them 3-4
times before they are willing to see you.
When making the first call, be prepared that
they will say no, but at the same time give
a good
Valid Business Reason so that you can
still call the second, third or fourth time.
Even then, you will still need to invest in
time and your sincerity to win your
contacts, so that they become your
"informants".
The exception to the rule at times is when you are dealing with
specialised frontline staff that hold key
information, e.g.:
However, getting the access and building trust with such
people will be much tougher than getting to
the Key Decision Makers directly, and
perhaps you can build relationships with
them AFTER getting to know the Key Decision
Makers. However, such people are also
well-trusted by their bosses, and whatever
you request for must NOT conflict with the
interests of their bosses.
The Myth of the Sole Key Decision Maker
Traditionally, most sales people will just
trash any lead that does not have a close
resemblance of a Key Decision Maker, i.e.
the person who calls the shots and is in
charge of buying whatever you are selling.
Unfortunately, unless you are selling some low-value retail product,
chances are there will NOT be a sole,
singular Key Decision Maker to make the
buying decision. It is made rather by
a group of people.
According
to the 2008 Best Practices study
of Winning Sales Organisations by
Millier Heiman, about 65% of all sales
people will have to contact between 3-5
people in the customers' organisations
before closing. Another 34% will have
to contact 6 or more people to do so.
Relying
on one sole contact person to close the
sale, or manage the account, is at best
vulnerable, and usually won't win deals for
you.
In tough times like these, the supposed Key
Decision Maker today may end up jobless
tomorrow. (In China, sometimes they
end up in jail!)
The question then will be, will talking to
non-Key Decision Makers lengthen the sales
cycle? Wouldn't it still be better if
we can somehow approach the Key Decision
Makers directly?
The reality is that Key Decision Makers
would like you to know more about their
situation, challenges and objectives first,
so that you can suggest solutions that works
when you see them. The sales cycle has
already been lengthen due to changes in
buying behaviours, and what you can do is
just to match your sales process with their
buying processes.
With
increasing all round competition and
decreasing purchasing power due to tough
times,
sales people cannot afford to just trash
non-Key Decision maker leads, as ALL
qualified leads are important. Sales
people will have to make judgements on
whether certain leads are worth the time and
effort to pursue, but such judgements will
be based on the economic and strategic value
of the deals, and NOT whether they are
handed Key Decision Makers' contacts as
leads.
For more information
on how you can gain the upper hand even when
you don't know the Key Decision Makers, please e-mail
info@directions-consulting.com
or call +86-136 7190
2505 or Skype:
cydj001
and arrange to buy me a mocha. All
information shall be kept in confidence.
Power Breakfast Hour: 18 November 2008
How to Win More Sales in Tough Times, when You
Don't Even Know the Key Decision Makers?
Join China Sales Leadership and Performance Coach c.j. Ng in
this one-hour breakfast meeting where he will be sharing with you the
following insights:
- What are some of things a sales person can do when they don't
know who the Key Decision Makers are;
- How to get vital information in your customers' organisations
that will bring you closer to the sale; and
- Why non-Key Decision Maker leads are just as, if not more,
important
VENUE: Le Equilles Restaurant, Ground Floor, Xin Jin Qiao Plaza, 23
Beijing West Road (by Xizang Middle Road), Shanghai. Pls. enter
via Citadines Apart'Hotel at 55 Beijing West Road.
DATE: Tuesday, 18 November 2008
TIME: from 08:00 a.m. - 09:00 a.m.
PRICE: Just Pay for your Own Breakfast (Est. RMB 50-100)
To make this a more conducive discussion, we are
expecting a small group of about 15 people only. The previous Power
Breakfast Hour session was a sold-out and over-booked event within a
week of notice. Please e-mail your registrations to
sales@directions-consulting.com
Pls. check out our web sites
www.directions-consulting.com and
www.psycheselling.com for
more inspiration.
Make Your Next Event Truly Original
Introducing The Rapping Professor ... ...
He's not only a funny and original host in English,
Chinese and French, but adds the special skill of composing and
performing an original song or rap just for your event!
When you engage The
Rapping Professor for your event, you can
even take home a DVD with the songs and pictures or video on it.
The Rapping Professor can MC alone, with a professional partner
or with a guest MC from your company. Any other kind of event
you desire, The Rapping Professor can plan it for you. Call The Rapping
Professor now before his schedule
fills up.
See The Rapping Professor in action,
as well as details of
his recent
performances and
testimonials. The Rapping Professor
can be reached by phone: +86-13817899178, or via email :
matthew@rappingprofessor.com.
Practical
Tips for Managers:
How to Lead Your Sales Force through Tough Times?
by c.j. Ng
Given the current
financial crisis, it seems that the global economy may be heading
for some tough times in 2009. The negative impact for some
companies may be even much sooner than that. Oh yes, the
future is bleak, and it starts tonight!
Generally, when most companies face tough economic and financial
outlooks, here's what they will do to their sales force:
-
Increase in
sales targets with a reduction in sales incentives;
-
Reduction in
reimbursable sales expenses;
-
Hiring freeze
for the sales force (i.e. less people will have to achieve an
even higher target with even lesser incentives);
-
Cuts in sales
training budgets
While tough times will definitely call for some belt-tightening measures,
such measures will have to be aligned with the strategic objectives
of companies. When most companies tighten their budgets, they
forget that tough times too, will pass. In fact, tough times
are probably the best times to solidify your relationships with
current customers and start loosening the grips of your competitors
when winning new ones. Companies who are just focused on
short-term reduction of costs maybe forgoing their long-term gains.
Here are some brief
pointers for companies that want to lead its sales force through bad
times, so that it's well-prepared when the good times return:
-
Tie sales
incentives with margins. Since most people will start
cutting prices during tough times, tie incentives towards
protecting your margins.
No point achieving sales targets if margins are too thin
-
Make an
audit of all reimbursable expenses and decide which are the
"must haves" vs. the "like to haves". As the boss, you'd
probably may have to take the lead in this aspect
-
Instead of
adopting an across-the-board hiring freeze, make your hiring
process more stringent, so that you could really hire the
best-fit. In fact, you may even get some very high-calibre
people at rock-bottom prices in tough times
-
Since 87% of
all sales training may be evaporated within 1 month, you might
want to be careful about how you can get the
"biggest bang" out
of every sales training. If you are paying high licensing
fees per sales person for some off-the-shelf sales training,
perhaps you can move to a generic one that can be customised to
your needs.
Before implementing
any changes however, companies would have to communicate the reasons
why such changes are necessary, and what's in it for them if they
cooperate, in terms of future earnings and career development.
One cardinal rule of sales people is that they absolutely HATE to do
more work, bearing more pressure and and getting paid less.
Even with the best communication efforts, some of your sales force
members may choose to leave. However, if you don't communicate
enough, they will be sitting targets for your competitors to poach.
The Chinese phrase for "crisis" is made of 2 words: "risk
危" and
"opportunity 机". Most of us may just want to
reduce costs and avoid risks in tough times, but only the wise can
see the opportunities therein. While the sales force may need to
trim some fat and get lean during tough times, their ability to win
new sales, protect margins and retain currents customers should be
further emphasized. This also a great opportunity to
capitalise on the mistakes of your competitors, and diminish
their influence in the long-term. After all, besides R&D, sales is the only
other profit centre you've got.
If you
need to find out more about how you too can lead
your sales force through tough times, you can send your
queries to
info@psycheselling.com
. We look forward to getting your inputs.
About PsycheSelling.com
Psyche-Selling
TM
is a
wholly-owned brand of Directions Management Consulting Pte Ltd that specialises in the field of improving
sales performance by enhancing the performance of the entire sales team.
Apart from the regular "selling skills training",
Psyche-Selling
TM
conducts pre- and post-training analysis, interviews, monitoring and
reviews, working closely with managers and even senior management, to
deliver real improvements in sales leadership and performance.
Directions Management Consulting Pte Ltd is a Human Capital Integrator
that helps companies to improve business performances through people.
Psyche-Selling TM
is currently a co-affiliate of the
HR Chally Group, together with
Shi Bisset & Associates,
to help you identify gaps in your current sales force, and then
formulate ways to help you get better results.
The HR Chally Group is a talent management, leadership
development, and sales improvement corporation providing personnel
assessment and research services for over 35 years. Chally is
recognised as an international technology leader in scientific
assessment and prediction for selection, job alignment and leadership
development, and for management assessment. For more information
about implementing Total Quality Sales Management in your company, pls.
log on to
http://www.psycheselling.com/TQSM-ExecBrief_email.pdf to get more
insights.
Enquiries and suggestions, pls. e-mail
info@psycheselling.com
or visit
www.psycheselling.com
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