By Ron S. LaVine
President of Accelerated Sales Training, Inc.
Top Sales Executives Work Smart
Top sales executives recognize their time is precious and finite. These sales representatives know their primary job is to identify and call on the most profitable accounts first. Examining their current customer base and finding the common characteristics or demographics (gross sales, number of employees, industries, etc.) top salespeople know in advance what types of accounts where they make the most money. They separate their accounts by time zone enabling them to make the best use of their phone time throughout the day.
Once prioritized and sorted, top sales executives use their sharp questioning and listening skills to reach the decision maker and determine, with reasonable certainty, whether or not a business opportunity exists within an account. When a business opportunity is found within a department, business unit, location, joint venture, affiliate, reseller or partner, these successful sales reps always remember to set up specific action steps or a sales m.a.p. (tm) (Mutually agreed upon process) with the individual or individuals who influence the buying decision. Then they politely yet persistently follow up on these action steps through completion. Knowing how valuable their time is, the most successful salespeople do only those things they cannot delegate to someone else.
Top Sales Executives Think like Business Owners
Top sales executives adopt an attitude that they are in business for themselves not in business by themselves. These top salespeople make decisions upon seeing themselves as the business owner.
Organization and Prioritization of Goals
Top sales executives recognize the importance of organizing and prioritizing their goals. These people get ahead by planning ahead. They have clearly defined lofty goals and self discipline to see them through. Top sales executives are goal getters not just goal setters.
Top Sales Executives are Persuasive Communicators
The top successful salespeople are listening for reasons to buy and for ways to sell. Sensitive to an account's time available to speak with them and enthusiastic in their presentations and these top sales reps have mastered the technique of carefully selecting words for their positive connotations.
Top Sales Executives Are Always Striving for Self-improvement
Always growing, studying, reading, attending seminars, learning all the time, their goal is movement in a positive direction. These salespeople seek out opportunities to perfect their presentations and volunteer for leadership positions so they can stretch themselves as people and professionals.
Top Sales Executives have Positive Self-esteem
Strong, balanced sense of self worth combined with confidence in themselves and a belief in what they are doing are the hallmark of a great sales rep. Enthusiasm, excitement and zeal are elements of their character.
These people do a better job and become more productive by learning, practicing, changing and developing these new habits so they are incorporated and internalized qualities in both their personal and professional life.
Conclusion
First and foremost is the right attitude. You will hear this throughout most sales workshops because the right attitude is the difference between those that give up and those who never quit. There is no silver or magic bullet. Only hard work and persistence pays off.
To become a great sales executive, one must enjoy working with people and have a strong sense of curiosity, great listening skills and the ability to see the big picture. The best sales executives are able to produce results. Pay for performance is the way they prefer to work.
A great sales executive is someone who has a working knowledge of their company's operations, products and services, and possesses the ability to collect useful business sales intelligence(tm) about their accounts and translate the information into additional sales. They are persistent and tenacious to find the answers to their questions and they keep going until they do.
David R. Bender of the Special Libraries Association sums it up well: "...how many people have the expertise to evaluate, analyze, organize and package raw data-transforming it into meaningful information that can be put to work?"
He goes on to say "...not many, and the explanation is quite simple." As management expert Peter Drucker wrote in a column for the Wall Street Journal, "There is a big difference between being computer literate and information literate."
Bender writes, "Drucker explained that for data to become useful information, it must be organized for a task or applied to a decision." He contended, however, "Few people are adept at determining exactly what information they need to do their jobs, when they need the information, and where they can get it."
A great sales executive knows what data is needed, where it can be found and how to get it and provide it in a manner enabling them to increase their sales. In striving to become the best, top sales executives focus on creating value for their clients and a sense of pride and accomplishment for themselves.
REPRINT PERMISSION
Ron LaVine, MBA is president and founder of Accelerated Sales Training, Inc., a live call sales and telesales training firm located in Oak Park, CA. You can get a special report “41 sales Tips You Can Use Right Now” AND the free bimonthly Sales Tips for Selling Success eZine all by signing up at http://www.ast-incorp.com. If you would like information on Live Call Sales and Telesales Training please call Ron at 818-991-6487 PST. © by Accelerated Sales Training, Inc.
Sunday, October 31, 2010
Sunday, October 24, 2010
Best Practices of Successful Software Company Salespeople
A study of the best practices of successful software company salespeople, conducted by the executive search firm Spencer Stuart in conjunction with Software Magazine, has found that the most important ingredients of success are a quality product and an effective sales force. But more compelling is evidence that the long-heralded team-selling concept has taken root. The most successful companies consistently put together highly trained teams to help their customers understand the benefits of their products.
The most successful enterprise software companies focus on building relationships with executives at Fortune 500 companies, and they use a “best team” approach to partner with these companies. This teaming can take many flavors, such as inside sales working with outside sales and channel partners to drive revenues, or product specialists overlaying revenue-focused sales reps. But the bottom line is that the most successful software companies have moved away from the “lone wolf" sales rep model to an approach founded on teamwork.
While this might not seem like earth-shattering news, it does point to the need for software suppliers interested in reaching their revenue targets to focus on the quality of their products, and to invest in helping their sales forces use approaches that do not turn IT managers off. IT managers should insist that the salespeople representing their software suppliers study the best practices of their counterparts in other firms to avoid losing business by engaging in IT management “turnoffs.”
These include: not delivering on promised products, making exaggerated or outright false claims, not bringing the right skills or expertise to bear on the customer’s problems, or avoiding accountability if a product is proving difficult to implement or use. “They have got to listen to what we say,” says Nancy Bryant, ClO with First City Savings Federal Credit Union in Glendale, Calif. “Sometimes you say you’re not interested and they still want to come out and show you things.”
Bryant has had a pleasant experience recently with sales efforts of (www.dartware.com), which offers the InterMapper tool for system monitoring. When the sales operation called and asked if Bryant needed new monitoring software, she said yes, and they explained what they could do for her. When she had a question, they e-mailed her back an answer in a timely manner. Later she received a follow-up phone call. “We are going to purchase the product,” she says.
Other tips from Bryant for software company salespeople included:
> Be knowledgeable about your product, or have a technical person available who can answer questions. “You can tell if they are reading a script and have no clue,” she says.
> Avoid annoying persistence. “When they call up and I say I don’t need it, then they send me priority mail and ask me what I think of it, when I didn’t ask for it, it’s annoying,” Bryant says.
> Explain how the product will save time or money, or make the IT buyer more efficient.
The best sales forces operate as a team; quality products, good training and fair compensation help; Software Company CEOs value leadership and a good attitude “I appreciate hearing about new things. I don’t want salespeople to stop calling. I just like them to listen when I say no and be able to answer basic questions,” Bryant says.
Software Industry Challenges Salespeople
The software industry is a challenging one to sell products in, because the products are highly technical. It is often difficult for a salesperson to articulate their value to prospective customers. This is especially true when application package suppliers try to sell to business professionals with little technical background. Many software markets are crowded with competitors and extremely fragmented. The barriers to entry are low for new software companies, and large enterprises are willing to buy from startups if they make compelling cases for their products. And the best products do not always win.
The sales force facing the IT buyer has much to do with the success of the software supplier. By company size, 27% of the software companies participating in the study had revenues of more than $1 billion; 40%, over $500 million; and 33%, under $500 million. Distribution by position was 43% CEOs or general managers and the rest sales executives. Industries producing the most revenue for participating suppliers were technology and communications, financial services, industrial, consumer goods and services, energy and process, and life sciences.
Other Key Findings of the Study
The quality of first-line sales managers and sales leadership are the most critical factors contributing to the overall effectiveness of the sales force. Sales executives attached more importance to compensation than did CEOs and general managers of the software suppliers.
While channel partners are growing in importance, person-to-person direct sales is still how most enterprise software suppliers take their product to market. On pricing, management and not the sales rep makes the key decisions. The productivity of the sales organization is primarily a function of two issues: the ability to recruit the right people, and training to upgrade the knowledge of the sales force.
Also, CEOs are frustrated when their sales teams don’t call at a high enough level in their customer organizations to drive decisions. This explains why sales reps keep trying to get to the boss. Internally, software firms have worked hard to integrate their sales teams with technical support, professional services, and the senior executive team. This partnering with professional services is driven by many software firms transitioning from a product sale to a solution sale.
However, they concede that they have not built strong bridges to the engineering and product development organizations, nor to the customer service organization. Product development may not always be working closely enough with sales to get an accurate view of what customers need. And the lack of integration with the customer resource management, customer services, and sales force automation suggests that those areas have not lived up to their promise.
On Some Issues, Views of CEOs and Their Sales Execs Differ
Software CEOs and sales executives agreed on many of the determinants of success, such as the product quality, quality of the first-line sales managers, and their ability to hire and organize effective sales teams. However, they did look at some issues differently. CEOs felt more strongly that the ability of their sales teams to penetrate top level executives in their customer organizations was critical, a view not expressed as strongly by the sales executives. Conversely, those sales executives were more focused on the compensation plan, both as a tool to recruit top performers, as well as a way to motivate their teams once hired.
CEOs and sales executives agreed that the ability to create effective teams was one of the most important ways of outperforming their competitors. Equally important is their ability to field a highly technically competent field organization.
Reprinted with permission. Software Magazine Summer 2002 Issue - Page 21 – 22. Accelerated Sales Training, Inc. www.AST-incorp.com send mailto:info@AST-incorp.com.
The most successful enterprise software companies focus on building relationships with executives at Fortune 500 companies, and they use a “best team” approach to partner with these companies. This teaming can take many flavors, such as inside sales working with outside sales and channel partners to drive revenues, or product specialists overlaying revenue-focused sales reps. But the bottom line is that the most successful software companies have moved away from the “lone wolf" sales rep model to an approach founded on teamwork.
While this might not seem like earth-shattering news, it does point to the need for software suppliers interested in reaching their revenue targets to focus on the quality of their products, and to invest in helping their sales forces use approaches that do not turn IT managers off. IT managers should insist that the salespeople representing their software suppliers study the best practices of their counterparts in other firms to avoid losing business by engaging in IT management “turnoffs.”
These include: not delivering on promised products, making exaggerated or outright false claims, not bringing the right skills or expertise to bear on the customer’s problems, or avoiding accountability if a product is proving difficult to implement or use. “They have got to listen to what we say,” says Nancy Bryant, ClO with First City Savings Federal Credit Union in Glendale, Calif. “Sometimes you say you’re not interested and they still want to come out and show you things.”
Bryant has had a pleasant experience recently with sales efforts of (www.dartware.com), which offers the InterMapper tool for system monitoring. When the sales operation called and asked if Bryant needed new monitoring software, she said yes, and they explained what they could do for her. When she had a question, they e-mailed her back an answer in a timely manner. Later she received a follow-up phone call. “We are going to purchase the product,” she says.
Other tips from Bryant for software company salespeople included:
> Be knowledgeable about your product, or have a technical person available who can answer questions. “You can tell if they are reading a script and have no clue,” she says.
> Avoid annoying persistence. “When they call up and I say I don’t need it, then they send me priority mail and ask me what I think of it, when I didn’t ask for it, it’s annoying,” Bryant says.
> Explain how the product will save time or money, or make the IT buyer more efficient.
The best sales forces operate as a team; quality products, good training and fair compensation help; Software Company CEOs value leadership and a good attitude “I appreciate hearing about new things. I don’t want salespeople to stop calling. I just like them to listen when I say no and be able to answer basic questions,” Bryant says.
Software Industry Challenges Salespeople
The software industry is a challenging one to sell products in, because the products are highly technical. It is often difficult for a salesperson to articulate their value to prospective customers. This is especially true when application package suppliers try to sell to business professionals with little technical background. Many software markets are crowded with competitors and extremely fragmented. The barriers to entry are low for new software companies, and large enterprises are willing to buy from startups if they make compelling cases for their products. And the best products do not always win.
The sales force facing the IT buyer has much to do with the success of the software supplier. By company size, 27% of the software companies participating in the study had revenues of more than $1 billion; 40%, over $500 million; and 33%, under $500 million. Distribution by position was 43% CEOs or general managers and the rest sales executives. Industries producing the most revenue for participating suppliers were technology and communications, financial services, industrial, consumer goods and services, energy and process, and life sciences.
Other Key Findings of the Study
The quality of first-line sales managers and sales leadership are the most critical factors contributing to the overall effectiveness of the sales force. Sales executives attached more importance to compensation than did CEOs and general managers of the software suppliers.
While channel partners are growing in importance, person-to-person direct sales is still how most enterprise software suppliers take their product to market. On pricing, management and not the sales rep makes the key decisions. The productivity of the sales organization is primarily a function of two issues: the ability to recruit the right people, and training to upgrade the knowledge of the sales force.
Also, CEOs are frustrated when their sales teams don’t call at a high enough level in their customer organizations to drive decisions. This explains why sales reps keep trying to get to the boss. Internally, software firms have worked hard to integrate their sales teams with technical support, professional services, and the senior executive team. This partnering with professional services is driven by many software firms transitioning from a product sale to a solution sale.
However, they concede that they have not built strong bridges to the engineering and product development organizations, nor to the customer service organization. Product development may not always be working closely enough with sales to get an accurate view of what customers need. And the lack of integration with the customer resource management, customer services, and sales force automation suggests that those areas have not lived up to their promise.
On Some Issues, Views of CEOs and Their Sales Execs Differ
Software CEOs and sales executives agreed on many of the determinants of success, such as the product quality, quality of the first-line sales managers, and their ability to hire and organize effective sales teams. However, they did look at some issues differently. CEOs felt more strongly that the ability of their sales teams to penetrate top level executives in their customer organizations was critical, a view not expressed as strongly by the sales executives. Conversely, those sales executives were more focused on the compensation plan, both as a tool to recruit top performers, as well as a way to motivate their teams once hired.
CEOs and sales executives agreed that the ability to create effective teams was one of the most important ways of outperforming their competitors. Equally important is their ability to field a highly technically competent field organization.
Reprinted with permission. Software Magazine Summer 2002 Issue - Page 21 – 22. Accelerated Sales Training, Inc. www.AST-incorp.com send mailto:info@AST-incorp.com.
Sunday, October 17, 2010
11 Actions Sales Reps Should Avoid
By Ron S. LaVine, MBA, President
Accelerated Sales Training, Inc.
Cold Calling System for Success – Live Phone Sales Call Training
01. Sales reps should avoid talking too much and listening too little. Using close-ended questions, which tend to kill a conversation with a yes or no answer instead of open-ended questions that extend a conversation because they cannot be easily answered with a yes or no.
02. Sales reps should avoid not getting people to commit to a yes or no decision rather than a perhaps or a maybe. Get rid of the prospects that keep dragging their feet. Simply ask, "Is there still an interest in [your product or service]? If yes, what's the next step?" The sooner you know the quicker you can invest your time in those prospects who have an interest and are willing to take action or "move forward".
03. Sales reps should avoid forgetting to ask permission to speak or lack respect for the other person's time. An executive's time is one of their most limited and valuable assets. If it is not respected you will quickly find yourself disconnected. Would you want to speak with someone if you were in the middle of an important meeting? No. So remember a little common courtesy goes a long way. ALWAYS ask permission to speak. I happen to like "Is this a good time to speak?" or "Do you have a minute?"
04. Sales reps should avoid asking too many questions in a row. Too many questions in a row are frustrating because the prospect doesn't know which question to answer first and the conversation becomes confusing real fast. Remember one question at a time, then STOP! You'll have plenty of time to ask more questions and the prospect won't be defensive since they are unable to answer multiple questions at once.
05. Sales reps should avoid talking over other the prospect's answer to a question or interrupting while the prospect is speaking. Since most if not all of us like to hear ourselves speak, it takes tremendous discipline to remain silent until someone has finished what they have to say. What if the part of the answer that you spoke over was a crucial piece of information? You'll never know, will you?
06. Sales reps should avoid calling on the wrong people who have no authority to buy. Many reps would rather spend their limited selling time calling upon lower level people who, while they maybe good sources of information, they lack the authority to buy. These people can stymie the sales process by saying don't go above me and don't go below me. I am the only person you need to speak with. What happens then? You become in the "let's talk some more and more or show me more and more" position. This type of scenario will drag your sales process to a halt.
07. Sales reps should avoid speaking too fast, too slow, in a monotone or without enthusiasm or conviction. People buy from people they know, like and trust and trust means similar to them. Learn to match and mirror the rate of speed, tone and the volume of the prospect's voice. Listening to a person's voice mail often provides a clue as to what type of speaker they are. If they speak fast, speed up. If they speak slowly, then slow done. The same applies to louder and softer. As for tone, learn to move your voice up and down and enunciate clearly.
08. Sales reps should avoid pitching. Pitching is for baseball games not selling. Pitching implies something will be caught yet not necessarily the "right thing or solution". A good salesperson never needs to pitch since by asking the right questions and listening they know what the prospect wants resented to them and the close becomes a natural conclusion.
09. Sales reps should avoid leaving their phone number only once and speaking too fast when they leave a voice mail. This means the prospect has to play the message over and over again when it is much easy to just erase it. Make it easy for people to do business with you. SLOW DOWN when you leave a message and leave your phone number twice in a row. The first time you leave your number gives the prospect time to find a pen and the second gives them time to write down the number.
10. Sales reps should avoid forgetting to make eye contact. In Nicholas Boothman's book, How to Connect in Business in 90 Seconds (Workman Publishing $16.95) he claims people make "like/don't like" decisions within the first 90 seconds of meeting someone. This means you must be able to win someone over fast. For you field reps it is a known fact that looking people directly in the eyes establishes you as trustworthy and open. Practice making a mental note of each person's eye color and you'll automatically look each person you meet right in the eye.
11. Sales reps should avoid making selling too complicated. Often it is better to be reminded and return to the basics above rather than to continue behavior, which should be avoided, if you want to be successful in sales.
Make it a great day and a successful week!
Ron
Call 1-818-991-6487 for a free sales training or telesales training needs analysis.
Accelerated Sales Training, Inc.
Cold Calling System for Success – Live Phone Sales Call Training
01. Sales reps should avoid talking too much and listening too little. Using close-ended questions, which tend to kill a conversation with a yes or no answer instead of open-ended questions that extend a conversation because they cannot be easily answered with a yes or no.
02. Sales reps should avoid not getting people to commit to a yes or no decision rather than a perhaps or a maybe. Get rid of the prospects that keep dragging their feet. Simply ask, "Is there still an interest in [your product or service]? If yes, what's the next step?" The sooner you know the quicker you can invest your time in those prospects who have an interest and are willing to take action or "move forward".
03. Sales reps should avoid forgetting to ask permission to speak or lack respect for the other person's time. An executive's time is one of their most limited and valuable assets. If it is not respected you will quickly find yourself disconnected. Would you want to speak with someone if you were in the middle of an important meeting? No. So remember a little common courtesy goes a long way. ALWAYS ask permission to speak. I happen to like "Is this a good time to speak?" or "Do you have a minute?"
04. Sales reps should avoid asking too many questions in a row. Too many questions in a row are frustrating because the prospect doesn't know which question to answer first and the conversation becomes confusing real fast. Remember one question at a time, then STOP! You'll have plenty of time to ask more questions and the prospect won't be defensive since they are unable to answer multiple questions at once.
05. Sales reps should avoid talking over other the prospect's answer to a question or interrupting while the prospect is speaking. Since most if not all of us like to hear ourselves speak, it takes tremendous discipline to remain silent until someone has finished what they have to say. What if the part of the answer that you spoke over was a crucial piece of information? You'll never know, will you?
06. Sales reps should avoid calling on the wrong people who have no authority to buy. Many reps would rather spend their limited selling time calling upon lower level people who, while they maybe good sources of information, they lack the authority to buy. These people can stymie the sales process by saying don't go above me and don't go below me. I am the only person you need to speak with. What happens then? You become in the "let's talk some more and more or show me more and more" position. This type of scenario will drag your sales process to a halt.
07. Sales reps should avoid speaking too fast, too slow, in a monotone or without enthusiasm or conviction. People buy from people they know, like and trust and trust means similar to them. Learn to match and mirror the rate of speed, tone and the volume of the prospect's voice. Listening to a person's voice mail often provides a clue as to what type of speaker they are. If they speak fast, speed up. If they speak slowly, then slow done. The same applies to louder and softer. As for tone, learn to move your voice up and down and enunciate clearly.
08. Sales reps should avoid pitching. Pitching is for baseball games not selling. Pitching implies something will be caught yet not necessarily the "right thing or solution". A good salesperson never needs to pitch since by asking the right questions and listening they know what the prospect wants resented to them and the close becomes a natural conclusion.
09. Sales reps should avoid leaving their phone number only once and speaking too fast when they leave a voice mail. This means the prospect has to play the message over and over again when it is much easy to just erase it. Make it easy for people to do business with you. SLOW DOWN when you leave a message and leave your phone number twice in a row. The first time you leave your number gives the prospect time to find a pen and the second gives them time to write down the number.
10. Sales reps should avoid forgetting to make eye contact. In Nicholas Boothman's book, How to Connect in Business in 90 Seconds (Workman Publishing $16.95) he claims people make "like/don't like" decisions within the first 90 seconds of meeting someone. This means you must be able to win someone over fast. For you field reps it is a known fact that looking people directly in the eyes establishes you as trustworthy and open. Practice making a mental note of each person's eye color and you'll automatically look each person you meet right in the eye.
11. Sales reps should avoid making selling too complicated. Often it is better to be reminded and return to the basics above rather than to continue behavior, which should be avoided, if you want to be successful in sales.
Make it a great day and a successful week!
Ron
Call 1-818-991-6487 for a free sales training or telesales training needs analysis.
Sunday, October 10, 2010
How to Sell in Any Type of Market
I came across an article in the Investor's Business Daily
about Selling in a Down Market and I think it applies to
selling in any type of market. My summary of the main
points is below.
According to Cord Cooper's article, sales management has a
choice in how to handle selling in a down market. He then goes
on to give strategies for properly preparing your sales force.
Make your salespeople your first market. They must be sold
on what they are selling if clients are to be sold too.
Think benefits.
A few of the questions in this section were:
"What is the minimum return our clients need from our
products or services?"
"How can we out do that by 50% to 100%?"
"What has been the client's experience with the
competition?"
"What sets us apart?" or
"What is our unique selling proposition or specialization?"
Suggestion:
Take some time during a sales meeting to discuss these
questions, take notes of the answers, put them in an email
and distribute them electronically via email so they can be
modified and expanded by people throughout your company.
You could be surprised at who comes up with unique ways to
help a customer or make it easier for them to do business
with your company.
Set service standards.
Define what the best type of customer service is and then
measure and deliver it.
Sell your track record.
Get permission to use specific client's names and
documented numerical results to increase your credibility.
Nail it down.
Don't assume the customer has a clear understanding of the
details. Be sure to go over information and especially
contracts in detail.
Work back-to-front.
If your start with a prospect's budget and vision it is
easier to work backward and demonstrate how your product
or service will fit their requirements.
Bridge the gaps.
Specify the results you want from your sales force, compare
them to the current situation, and then center your
strategy to bridge the gaps.
Don't promise more than your organization can deliver.
Promising and not delivering is as bad as hearing
complaints and ignoring them.
Use prospects' names as marketing tools.
Create a seating chart in front of you and take note of
their names. Use their names during a presentation to gain
attention, control conversations and underscore points.
Realize that past successes don't cut future deals.
Track client's post sales shifting priorities and work them
into renewal contracts.
Put the customer in charge.
Adapt your company policies to meet the customer's needs.
The bottom line.
Let your customers be in charge by letting their needs
drive your strategy. It worked for Sam Walton the founder
of Wal-Mart and it will work for you too.
--
Make it a great day and a successful week!
Ron S. La Vine, MBA, President and CEO
Accelerated Sales Training, Inc.
Helping you Get Into New and Existing Accounts and Get New Business™
http://www.ast-incorp.com
Complementary Sales Tips
http://www.ast-incorp.com/free.htm
Join me at LinkedIn
http://www.linkedin.com/in/ronlavine
Accelerated Sales Training, Inc.
638 Lindero Canyon Road, Suite 283
Oak Park, CA 91377
818-519-3852 Mobile
818-991-5938 Fax
mailto:rslavine@ast-incorp.com
about Selling in a Down Market and I think it applies to
selling in any type of market. My summary of the main
points is below.
According to Cord Cooper's article, sales management has a
choice in how to handle selling in a down market. He then goes
on to give strategies for properly preparing your sales force.
Make your salespeople your first market. They must be sold
on what they are selling if clients are to be sold too.
Think benefits.
A few of the questions in this section were:
"What is the minimum return our clients need from our
products or services?"
"How can we out do that by 50% to 100%?"
"What has been the client's experience with the
competition?"
"What sets us apart?" or
"What is our unique selling proposition or specialization?"
Suggestion:
Take some time during a sales meeting to discuss these
questions, take notes of the answers, put them in an email
and distribute them electronically via email so they can be
modified and expanded by people throughout your company.
You could be surprised at who comes up with unique ways to
help a customer or make it easier for them to do business
with your company.
Set service standards.
Define what the best type of customer service is and then
measure and deliver it.
Sell your track record.
Get permission to use specific client's names and
documented numerical results to increase your credibility.
Nail it down.
Don't assume the customer has a clear understanding of the
details. Be sure to go over information and especially
contracts in detail.
Work back-to-front.
If your start with a prospect's budget and vision it is
easier to work backward and demonstrate how your product
or service will fit their requirements.
Bridge the gaps.
Specify the results you want from your sales force, compare
them to the current situation, and then center your
strategy to bridge the gaps.
Don't promise more than your organization can deliver.
Promising and not delivering is as bad as hearing
complaints and ignoring them.
Use prospects' names as marketing tools.
Create a seating chart in front of you and take note of
their names. Use their names during a presentation to gain
attention, control conversations and underscore points.
Realize that past successes don't cut future deals.
Track client's post sales shifting priorities and work them
into renewal contracts.
Put the customer in charge.
Adapt your company policies to meet the customer's needs.
The bottom line.
Let your customers be in charge by letting their needs
drive your strategy. It worked for Sam Walton the founder
of Wal-Mart and it will work for you too.
--
Make it a great day and a successful week!
Ron S. La Vine, MBA, President and CEO
Accelerated Sales Training, Inc.
Helping you Get Into New and Existing Accounts and Get New Business™
http://www.ast-incorp.com
Complementary Sales Tips
http://www.ast-incorp.com/free.htm
Join me at LinkedIn
http://www.linkedin.com/in/ronlavine
Accelerated Sales Training, Inc.
638 Lindero Canyon Road, Suite 283
Oak Park, CA 91377
818-519-3852 Mobile
818-991-5938 Fax
mailto:rslavine@ast-incorp.com
Friday, October 1, 2010
How To Use the Six Laws of Persuasion during a Negotiation
How To Use the Six Laws of Persuasion during a Negotiation
By Edrie Greer, Ph.D.,
Global Knowledge Instructor
Introduction
To get what you want in life, in work, and in play, requires constant negotiation with a variety of people. This involves basic communication skills, such as active listening and attention to non-verbal cues, and a clear understanding of your goals, as well as the objectives of your negotiating partner(s). To be truly effective, however, you need to know more. You should be able to communicate persuasively during the process of negotiation. Many situations you'll face as IT managers and employees will require you to effectively negotiate to a mutually beneficial (win-win) solution, including:
1. Responding to staff members' requests for promotions, salary increases, and other employment perks (as well as negotiating your own)
2. Negotiating with vendors for their best possible products, services, and prices
3. Convincing your team to do what you would like them to do
4. Working with external and internal clients on contracts (such as Service Level Agreements) that provide the quality services and equipment they need but in a manner that allows you to use your resources optimally
5. Persuading supervisors to buy additional equipment, accept your budget proposals, try a new idea, etc. In order to be successful in these instances, you must master the persuasion process, which will enable you to deliberately create the attitude change and subsequent actions necessary for persuading others to your way of thinking. In other words, you have to be able to "sell" your ideas in order to make changes in your favor and, in a win-win situation, provide the other side with a fair deal. This entails a process that can appeal to the intellect using logical and objective criteria, as well as a methodology that positively engages the emotions of the negotiators. The result of a successful negotiation is that all parties should believe they got a good deal.
The Six Laws of Persuasion: an Overview
Persuasion is the ability to influence people's thoughts and actions through specific strategies. To become adept at this skill, you must first understand some basic principles, called the Laws of Persuasion. These six laws by themselves are neither good nor bad, but describe how most people respond to certain circumstances.
Psychologist Robert Cialdini wrote the seminal book on the Laws of Persuasion, titled Influence: The Psychology of Persuasion, in which he discusses the prevalent methods of marketing. Even though you may not wish to believe it, a great deal of psychological research indicates that human beings are quite predictable in terms of behavior in response to certain stimuli, such as ads. This is why marketing and advertising are highly successful enterprises-by and large, consumers respond to most ads and commercials by buying the products and services they promote. By understanding persuasion laws, you can control how much others unduly influence you, as well as how to use them to your benefit during negotiations.
How To Use the Six Laws of Persuasion during a Negotiation
The laws work because they provide shortcuts to making the countless decisions people face every day as they look for information to reduce the complexity of life. If you can apply these laws in specific situations to your benefit, then your influence over others increases significantly. Some of the best masters of the art of persuasion in negotiation are highly successful salespeople who do their best not only to make the sale, but also to meet the needs of their buyers.
Here are Cialdini's Six Laws of Persuasion:
Law of Reciprocity
Human beings, in general, try to repay in kind what another person has provided to them. If someone gives you something you want (or perhaps didn't "realize" you wanted), then you will wish to reciprocate because you now feel obligated. Examples of this Law include the address labels you receive in the mail from various non-profits requesting charitable contributions. Even though they are a minor, unsolicited gift, sending them has increased contributions for non-profits many-fold, because people feel compelled to return the favor. Giving free samples to potential customers is another way in which this Law is used by successful salespeople.
Law of Commitment and Consistency
People like to be (or at least appear to be) consistent in their thoughts, feelings, and actions. Once they have made a stand, they tend to stick to it and behave in ways that justify their earlier decisions, even if they are erroneous. If you make a commitment to a cause or product, however small, it then becomes easier to be convinced to increase it. This is especially true if the commitment changes your view of yourself in a favorable way. This is why salespersons attempt to get customers to agree with them multiple times. After saying yes so often, it is almost impossible to say no when it comes time for the close or direct request for the sale.
Law of Liking
When you like someone, or believe that they are "just like you," you are more inclined to want to please them and, therefore, purchase whatever they are selling. This is how successful salespeople operate; they establish rapport by demonstrating how similar they are to their potential buyers. For example, they note that they are from a comparable background as you, or even better, they are people you know-your friends. As for those in-home sales parties, the kicker comes when your neighbors provide the testimonials for the product. You don't want to disappoint them by not purchasing, do you?
Law of Scarcity
If you are not sure you want to buy something, the minute it becomes "the last one available" you tend to have second thoughts. After all, this must indicate that others are purchasing it, and you might not be able to get another one quickly, or at all, if you decide you want it later. So you take the bait to buy a popular item that others won't be able to get. At least that's what you think.
Law of Authority
This is the law that uses celebrity endorsements or "expert" testimonials. When people you admire promote a product or service, if it's good enough for them, then it's good enough for you. And if you use it, then you might even develop similar characteristics to your heroes, such as good looks, wealth, or fame. That's what the advertisers are counting on.
Law of Social Proof
Why have TV sitcoms used canned laugh tracks for years? Producers wouldn't employ them unless they actually are successful in eliciting audience laughter and, subsequently, higher ratings. Part of the reason you laugh along anyway in spite of your annoyance lies in how you decide what is socially "correct" behavior. If you don't know exactly what to do, you rely on others around you (or the virtual TV audience) to help you find the way to properly react. You think if others are engaging in a specific behavior, it must be the proper thing to do. Hence, you laugh in spite of yourself, or if you're told that "everyone is buying this product or service," even without evidence, you may think you're missing out if you don't comply or conform and get it for yourself.
Using the Laws of Persuasion
As mentioned, in any negotiation, all parties should arrive at a conclusion that makes them feel like they got a good deal, especially if an on-going relationship is involved. (Note: a "good deal" is not always the same for everyone; negotiators often have different criteria by which they judge the success of their bargaining outcomes.)
Often when dealing with "tough" or "hard" negotiators, you encounter manipulative tactics that use the preceding Laws of Persuasion. So how do you successfully negotiate around these ploys? First, you can discuss the rules of the game. When you recognize that the other side is using one or more of the Laws of Persuasion, you can either directly note it, or simply steer the conversation to a more objective solution. And for the ultimate in law prevention, you can set preconditions ahead of time that will preclude such strategies by using only logical principles as a standard process in the negotiation.
Negotiation strategies using the Six Laws of Persuasion include the following:
Law of Reciprocity
Limited disclosure/confession of the real reason for a negotiation stance, such as "this is all the money we have," can provoke a concession from the other party. (This is often seen in salary/promotion negotiations.) Concessions in general follow this "tit-for-tat" rule (the lower the "value" of the concession on your part, of course, the better). You can also use this law to appeal to fairness. For example, if the other party manipulates the physical environment by requiring that your team sits facing the sun, at the next meeting they should reciprocate.
Law of Commitment and Consistency
An example of this tactic would be using a series of questions to conduct the step-by-step close. Dale Carnegie, in How to Win Friends and Influence People, called this, "Get the other person saying 'yes, yes' immediately." This occurs when one party asks the other side to make a number of "small" decisions that lead to only one obvious conclusion: to accept the general concession. You could employ this principle by asking a potential client if she values quality in your product or service. Of course the only answer would be "yes." Then you could follow with a question that begs the obvious: "We'd love to provide you with this product/service, but if we don't get the resources we need from you (i. e. sufficient money) and quality suffers as a result, would you still want it?" How can the prospect say "yes" to poor quality? This tactic makes it easier for you to ask for additional funds.
You might also see an example of this ploy when lowballing (intentional last-minute additions to what was originally a low price) occurs. Unscrupulous vendors might attempt to make you psychologically "invest" in a product that you initially believe costs less.
Law of Liking
This law is often seen in the strategy of "good cop, bad cop," where one person in the other negotiating party is clearly opposed to your objectives, but it appears that another of their team members is "on your side." This causes you to identify with and trust the "good" team member, so you may find yourself agreeing to the other team's concessions and goals instead of your own. You can see this in situations where a salesperson "battles" their supervisor to get you a "better" deal (of course this was the result they wanted in the first place). You might also apply this law to establish rapport up front when you are negotiating with your own superiors or teams.
Law of Scarcity
The more time you spend with a salesperson, the more commitment he or she has to make the deal. If you are under no time pressure and the other side is, you have the upper hand.
Law of Authority
Vendors often quote vague authorities to sell their wares, "Experts say our product is the best." But who are these experts? What are their qualifications to make these claims? Do they have a vested interest in selling the company's products or services? In addition, use this Law to establish your own credentials/credibility early in the negotiation.
Law of Social Proof
This law works when you draw on testimonials from satisfied customers or clients (unscripted ones are best) to encourage new prospects to buy your services and products. The law also can be used to convince your supervisors or staff that their counterparts in other divisions or companies are following similar suggestions to yours. People want to feel like they are part of an established community that already knows where it is going.
Ethical Issues
Persuasion can be used for good or ill. In an environment that seeks to follow ethical rules, it should only be used to make lives better. Manipulation occurs when you exploit or deceive others solely for your own gain. This does not result in a win-win situation.
Summary
Being adept at persuasion is often the missing key to success in the workplace and your personal life. If you give people what they want via the Six Laws of Persuasion, they'll most likely return the favor. And when you recognize that you are being manipulated, you can call the other side on their tactics and counter with an appropriate strategy. This will lead to a more effective way of achieving the goals of all negotiating parties.
Learn More
Learn more about how you can improve productivity, enhance efficiency, and sharpen your competitive edge. Check out the following Global Knowledge course: Communication and Negotiation Skills. For more information or to register, visit http://www.globalknowledge.com/
or call 1-866-925-7765.
About the Author
Dr. Edrie Greer is President of Learning, ETC, Inc., which provides Educational, Training, and Communications services to organizations. She brings more than 20 years of experience in adult education, instructional design, educational technology, instructor development, and media production to her work. Dr. Greer holds a Ph. D. in the Sociology of Religion from the New Thought Theological Seminary, a Master of Science in Continuing and Vocational Education and a Bachelor of Science in Life Sciences Communication from the University of Wisconsin-Madison.
Sources
Carnegie, Dale. How to Win Friends and Influence People. New York: Pocket Books, 1936. Cialdini, Robert B. Influence: The Psychology of Persuasion. New York: William Morrow, 1993. Fisher, Roger and William Ury. Getting to Yes: Negotiating Agreement Without Giving In. New York: Penguin, 2003. Hogan, Kevin. The Psychology of Persuasion: How to Persuade Others to Your Way of Thinking. Gretna, LA: Pelican, 1996.
Hope you found this informative, see you next time.
Until then. . .
Make it a great day and a successful week!
Ron
--
Make it a great day and a successful week!
Ron S. La Vine, MBA, President and CEO
Accelerated Sales Training, Inc.
Helping you Get Into New and Existing Accounts and Get New Business™
http://www.ast-incorp.com
Complementary Sales Tips
http://www.ast-incorp.com/free.htm
Join me at LinkedIn
http://www.linkedin.com/in/ronlavine
Accelerated Sales Training, Inc.
638 Lindero Canyon Road, Suite 283
Oak Park, CA 91377
818-519-3852 Mobile
818-991-5938 Fax
mailto:rslavine@ast-incorp.com
By Edrie Greer, Ph.D.,
Global Knowledge Instructor
Introduction
To get what you want in life, in work, and in play, requires constant negotiation with a variety of people. This involves basic communication skills, such as active listening and attention to non-verbal cues, and a clear understanding of your goals, as well as the objectives of your negotiating partner(s). To be truly effective, however, you need to know more. You should be able to communicate persuasively during the process of negotiation. Many situations you'll face as IT managers and employees will require you to effectively negotiate to a mutually beneficial (win-win) solution, including:
1. Responding to staff members' requests for promotions, salary increases, and other employment perks (as well as negotiating your own)
2. Negotiating with vendors for their best possible products, services, and prices
3. Convincing your team to do what you would like them to do
4. Working with external and internal clients on contracts (such as Service Level Agreements) that provide the quality services and equipment they need but in a manner that allows you to use your resources optimally
5. Persuading supervisors to buy additional equipment, accept your budget proposals, try a new idea, etc. In order to be successful in these instances, you must master the persuasion process, which will enable you to deliberately create the attitude change and subsequent actions necessary for persuading others to your way of thinking. In other words, you have to be able to "sell" your ideas in order to make changes in your favor and, in a win-win situation, provide the other side with a fair deal. This entails a process that can appeal to the intellect using logical and objective criteria, as well as a methodology that positively engages the emotions of the negotiators. The result of a successful negotiation is that all parties should believe they got a good deal.
The Six Laws of Persuasion: an Overview
Persuasion is the ability to influence people's thoughts and actions through specific strategies. To become adept at this skill, you must first understand some basic principles, called the Laws of Persuasion. These six laws by themselves are neither good nor bad, but describe how most people respond to certain circumstances.
Psychologist Robert Cialdini wrote the seminal book on the Laws of Persuasion, titled Influence: The Psychology of Persuasion, in which he discusses the prevalent methods of marketing. Even though you may not wish to believe it, a great deal of psychological research indicates that human beings are quite predictable in terms of behavior in response to certain stimuli, such as ads. This is why marketing and advertising are highly successful enterprises-by and large, consumers respond to most ads and commercials by buying the products and services they promote. By understanding persuasion laws, you can control how much others unduly influence you, as well as how to use them to your benefit during negotiations.
How To Use the Six Laws of Persuasion during a Negotiation
The laws work because they provide shortcuts to making the countless decisions people face every day as they look for information to reduce the complexity of life. If you can apply these laws in specific situations to your benefit, then your influence over others increases significantly. Some of the best masters of the art of persuasion in negotiation are highly successful salespeople who do their best not only to make the sale, but also to meet the needs of their buyers.
Here are Cialdini's Six Laws of Persuasion:
Law of Reciprocity
Human beings, in general, try to repay in kind what another person has provided to them. If someone gives you something you want (or perhaps didn't "realize" you wanted), then you will wish to reciprocate because you now feel obligated. Examples of this Law include the address labels you receive in the mail from various non-profits requesting charitable contributions. Even though they are a minor, unsolicited gift, sending them has increased contributions for non-profits many-fold, because people feel compelled to return the favor. Giving free samples to potential customers is another way in which this Law is used by successful salespeople.
Law of Commitment and Consistency
People like to be (or at least appear to be) consistent in their thoughts, feelings, and actions. Once they have made a stand, they tend to stick to it and behave in ways that justify their earlier decisions, even if they are erroneous. If you make a commitment to a cause or product, however small, it then becomes easier to be convinced to increase it. This is especially true if the commitment changes your view of yourself in a favorable way. This is why salespersons attempt to get customers to agree with them multiple times. After saying yes so often, it is almost impossible to say no when it comes time for the close or direct request for the sale.
Law of Liking
When you like someone, or believe that they are "just like you," you are more inclined to want to please them and, therefore, purchase whatever they are selling. This is how successful salespeople operate; they establish rapport by demonstrating how similar they are to their potential buyers. For example, they note that they are from a comparable background as you, or even better, they are people you know-your friends. As for those in-home sales parties, the kicker comes when your neighbors provide the testimonials for the product. You don't want to disappoint them by not purchasing, do you?
Law of Scarcity
If you are not sure you want to buy something, the minute it becomes "the last one available" you tend to have second thoughts. After all, this must indicate that others are purchasing it, and you might not be able to get another one quickly, or at all, if you decide you want it later. So you take the bait to buy a popular item that others won't be able to get. At least that's what you think.
Law of Authority
This is the law that uses celebrity endorsements or "expert" testimonials. When people you admire promote a product or service, if it's good enough for them, then it's good enough for you. And if you use it, then you might even develop similar characteristics to your heroes, such as good looks, wealth, or fame. That's what the advertisers are counting on.
Law of Social Proof
Why have TV sitcoms used canned laugh tracks for years? Producers wouldn't employ them unless they actually are successful in eliciting audience laughter and, subsequently, higher ratings. Part of the reason you laugh along anyway in spite of your annoyance lies in how you decide what is socially "correct" behavior. If you don't know exactly what to do, you rely on others around you (or the virtual TV audience) to help you find the way to properly react. You think if others are engaging in a specific behavior, it must be the proper thing to do. Hence, you laugh in spite of yourself, or if you're told that "everyone is buying this product or service," even without evidence, you may think you're missing out if you don't comply or conform and get it for yourself.
Using the Laws of Persuasion
As mentioned, in any negotiation, all parties should arrive at a conclusion that makes them feel like they got a good deal, especially if an on-going relationship is involved. (Note: a "good deal" is not always the same for everyone; negotiators often have different criteria by which they judge the success of their bargaining outcomes.)
Often when dealing with "tough" or "hard" negotiators, you encounter manipulative tactics that use the preceding Laws of Persuasion. So how do you successfully negotiate around these ploys? First, you can discuss the rules of the game. When you recognize that the other side is using one or more of the Laws of Persuasion, you can either directly note it, or simply steer the conversation to a more objective solution. And for the ultimate in law prevention, you can set preconditions ahead of time that will preclude such strategies by using only logical principles as a standard process in the negotiation.
Negotiation strategies using the Six Laws of Persuasion include the following:
Law of Reciprocity
Limited disclosure/confession of the real reason for a negotiation stance, such as "this is all the money we have," can provoke a concession from the other party. (This is often seen in salary/promotion negotiations.) Concessions in general follow this "tit-for-tat" rule (the lower the "value" of the concession on your part, of course, the better). You can also use this law to appeal to fairness. For example, if the other party manipulates the physical environment by requiring that your team sits facing the sun, at the next meeting they should reciprocate.
Law of Commitment and Consistency
An example of this tactic would be using a series of questions to conduct the step-by-step close. Dale Carnegie, in How to Win Friends and Influence People, called this, "Get the other person saying 'yes, yes' immediately." This occurs when one party asks the other side to make a number of "small" decisions that lead to only one obvious conclusion: to accept the general concession. You could employ this principle by asking a potential client if she values quality in your product or service. Of course the only answer would be "yes." Then you could follow with a question that begs the obvious: "We'd love to provide you with this product/service, but if we don't get the resources we need from you (i. e. sufficient money) and quality suffers as a result, would you still want it?" How can the prospect say "yes" to poor quality? This tactic makes it easier for you to ask for additional funds.
You might also see an example of this ploy when lowballing (intentional last-minute additions to what was originally a low price) occurs. Unscrupulous vendors might attempt to make you psychologically "invest" in a product that you initially believe costs less.
Law of Liking
This law is often seen in the strategy of "good cop, bad cop," where one person in the other negotiating party is clearly opposed to your objectives, but it appears that another of their team members is "on your side." This causes you to identify with and trust the "good" team member, so you may find yourself agreeing to the other team's concessions and goals instead of your own. You can see this in situations where a salesperson "battles" their supervisor to get you a "better" deal (of course this was the result they wanted in the first place). You might also apply this law to establish rapport up front when you are negotiating with your own superiors or teams.
Law of Scarcity
The more time you spend with a salesperson, the more commitment he or she has to make the deal. If you are under no time pressure and the other side is, you have the upper hand.
Law of Authority
Vendors often quote vague authorities to sell their wares, "Experts say our product is the best." But who are these experts? What are their qualifications to make these claims? Do they have a vested interest in selling the company's products or services? In addition, use this Law to establish your own credentials/credibility early in the negotiation.
Law of Social Proof
This law works when you draw on testimonials from satisfied customers or clients (unscripted ones are best) to encourage new prospects to buy your services and products. The law also can be used to convince your supervisors or staff that their counterparts in other divisions or companies are following similar suggestions to yours. People want to feel like they are part of an established community that already knows where it is going.
Ethical Issues
Persuasion can be used for good or ill. In an environment that seeks to follow ethical rules, it should only be used to make lives better. Manipulation occurs when you exploit or deceive others solely for your own gain. This does not result in a win-win situation.
Summary
Being adept at persuasion is often the missing key to success in the workplace and your personal life. If you give people what they want via the Six Laws of Persuasion, they'll most likely return the favor. And when you recognize that you are being manipulated, you can call the other side on their tactics and counter with an appropriate strategy. This will lead to a more effective way of achieving the goals of all negotiating parties.
Learn More
Learn more about how you can improve productivity, enhance efficiency, and sharpen your competitive edge. Check out the following Global Knowledge course: Communication and Negotiation Skills. For more information or to register, visit http://www.globalknowledge.com/
or call 1-866-925-7765.
About the Author
Dr. Edrie Greer is President of Learning, ETC, Inc., which provides Educational, Training, and Communications services to organizations. She brings more than 20 years of experience in adult education, instructional design, educational technology, instructor development, and media production to her work. Dr. Greer holds a Ph. D. in the Sociology of Religion from the New Thought Theological Seminary, a Master of Science in Continuing and Vocational Education and a Bachelor of Science in Life Sciences Communication from the University of Wisconsin-Madison.
Sources
Carnegie, Dale. How to Win Friends and Influence People. New York: Pocket Books, 1936. Cialdini, Robert B. Influence: The Psychology of Persuasion. New York: William Morrow, 1993. Fisher, Roger and William Ury. Getting to Yes: Negotiating Agreement Without Giving In. New York: Penguin, 2003. Hogan, Kevin. The Psychology of Persuasion: How to Persuade Others to Your Way of Thinking. Gretna, LA: Pelican, 1996.
Hope you found this informative, see you next time.
Until then. . .
Make it a great day and a successful week!
Ron
--
Make it a great day and a successful week!
Ron S. La Vine, MBA, President and CEO
Accelerated Sales Training, Inc.
Helping you Get Into New and Existing Accounts and Get New Business™
http://www.ast-incorp.com
Complementary Sales Tips
http://www.ast-incorp.com/free.htm
Join me at LinkedIn
http://www.linkedin.com/in/ronlavine
Accelerated Sales Training, Inc.
638 Lindero Canyon Road, Suite 283
Oak Park, CA 91377
818-519-3852 Mobile
818-991-5938 Fax
mailto:rslavine@ast-incorp.com
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