Sunday, October 9, 2011
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 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.
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Make it a great day and a successful week!
Ron S. LaVine, MBA, President
Accelerated Cold Call Training, Inc.
Removing Fear from Cold Calling - Live Cold Call Training
638 Lindero Canyon Drive, Suite 283
Oak Park, CA 91377
818-991-6487 Phone
818-519-3852 Mobile
818-991-5938 Fax
Check out the new site at:
http://www.coldcalltraining.com/
Read over 135 recommendations here:
http://www.linkedin.com/in/ronlavine
Tuesday, October 4, 2011
Evolving the Cold Call by Kirko Papajanis
Cold calling has different meanings in different businesses, but for B2B Lead Generation, cold calling is the art and the science of using the telephone to introduce a helpful, relevant, new idea to a company or contact with whom you have not worked in the past.
The degree of pre-call preparation will vary and how much to prepare for a call is a tough question, especially for new reps. You need to have a reason to believe you can offer value to the lucky person on the other end of the phone. On the other hand many of the reps I have worked with over the years will over-prepare for a call, given the low probability of making the connection on any one attempt. Over preparation is often ego based. If you connect, use the opportunity to set a meeting - nothing more. The first call opens the door. It doesn’t close the sale- that won’t happen until a lot of questions on both sides have been asked and answered - the magic of a dialogue.
There is a middle ground that recognizes the need to offer value, the advantage of covering as much ground as possible and respect for everyone’s time. Work with lists of similar companies who are likely facing similar issues. Craft an umbrella value proposition and create a 30-45 second summary to communicate that message and leave the door open for a follow up from you. Accept that the chance of making a live contact is pretty low. Use voicemail for the opportunity it presents as a tool to introduce you to your lists. Be honest, direct, personable and client focused. Leave your call back information. Follow up with an email that includes slightly more content. Wait a week and repeat with a different message that follows the same format.
Be respectful. Be patient. Stay client focused. Measure your results. Modify your messages. Be persistent. Expand you contacts in any organization when you don’t get a response after 8-10 attempts. Don’t be afraid to aim high! In years (and years) of selling, I’ve consistently found that it’s no more difficult to reach a VP than a Manager — and generally a lot more helpful.
Source: http://www.eyesonsales.com/content/article/evolving_the_cold_call/
About the author: http://www.eyesonsales.com/author/kirko_papajanis/
REPRINT PERMISSION
Ron LaVine, MBA is president and founder of Accelerated Cold Call Training, Inc., a LIVE cold call training firm located in Oak Park, CA. You can get a special report 41 Sales Tips You Can Use Right Now AND the complementary bimonthly Sales Tips and Telesales Tips for Selling Success eZine by signing up at http://www.coldcalltraining.com. If you would like information on Live Cold Calling/New Business Development Sales Training please call 1-818-519-3852.
Make it a great day and a successful week!
Ron
**************************************************
Accelerated Cold Call Training enables companies such as yours to:
+ Quickly get into new accounts,
+ Reach decision-makers faster,
+ Identify and qualify opportunities better,
+ Exceed cold calling quotas,
+ Shorten sales cycles by working with actual decision makers.
Over 55 testimonials letters can be read by clicking here: http://coldcalltraining.com/testimonials.htm. Ron LaVine, MBA is president and founder of Accelerated Cold Call Training, Inc., a LIVE cold call sales training firm located in Oak Park, CA. For a complementary cold call training consultation, call 1-818-519-3852 or send an Email to: rslavine @ coldcalltraining.com. Over 141 LinkedIn recommendations can be found by clicking here: http://www.linkedin.com/in/ronlavine.
The degree of pre-call preparation will vary and how much to prepare for a call is a tough question, especially for new reps. You need to have a reason to believe you can offer value to the lucky person on the other end of the phone. On the other hand many of the reps I have worked with over the years will over-prepare for a call, given the low probability of making the connection on any one attempt. Over preparation is often ego based. If you connect, use the opportunity to set a meeting - nothing more. The first call opens the door. It doesn’t close the sale- that won’t happen until a lot of questions on both sides have been asked and answered - the magic of a dialogue.
There is a middle ground that recognizes the need to offer value, the advantage of covering as much ground as possible and respect for everyone’s time. Work with lists of similar companies who are likely facing similar issues. Craft an umbrella value proposition and create a 30-45 second summary to communicate that message and leave the door open for a follow up from you. Accept that the chance of making a live contact is pretty low. Use voicemail for the opportunity it presents as a tool to introduce you to your lists. Be honest, direct, personable and client focused. Leave your call back information. Follow up with an email that includes slightly more content. Wait a week and repeat with a different message that follows the same format.
Be respectful. Be patient. Stay client focused. Measure your results. Modify your messages. Be persistent. Expand you contacts in any organization when you don’t get a response after 8-10 attempts. Don’t be afraid to aim high! In years (and years) of selling, I’ve consistently found that it’s no more difficult to reach a VP than a Manager — and generally a lot more helpful.
Source: http://www.eyesonsales.com/content/article/evolving_the_cold_call/
About the author: http://www.eyesonsales.com/author/kirko_papajanis/
REPRINT PERMISSION
Ron LaVine, MBA is president and founder of Accelerated Cold Call Training, Inc., a LIVE cold call training firm located in Oak Park, CA. You can get a special report 41 Sales Tips You Can Use Right Now AND the complementary bimonthly Sales Tips and Telesales Tips for Selling Success eZine by signing up at http://www.coldcalltraining.com. If you would like information on Live Cold Calling/New Business Development Sales Training please call 1-818-519-3852.
Make it a great day and a successful week!
Ron
**************************************************
Accelerated Cold Call Training enables companies such as yours to:
+ Quickly get into new accounts,
+ Reach decision-makers faster,
+ Identify and qualify opportunities better,
+ Exceed cold calling quotas,
+ Shorten sales cycles by working with actual decision makers.
Over 55 testimonials letters can be read by clicking here: http://coldcalltraining.com/testimonials.htm. Ron LaVine, MBA is president and founder of Accelerated Cold Call Training, Inc., a LIVE cold call sales training firm located in Oak Park, CA. For a complementary cold call training consultation, call 1-818-519-3852 or send an Email to: rslavine @ coldcalltraining.com. Over 141 LinkedIn recommendations can be found by clicking here: http://www.linkedin.com/in/ronlavine.
Tuesday, September 13, 2011
How to Identify the Ideal Prospect
The ideal prospect will have the following four characteristics.
Confidence
People buy from people they know like and trust. Like means similar to them.
Does the prospect trust you?
Have you established both you and your organization's credibility?
Does the prospect know the organization you represent?
Does the prospect believe you sincerely have their best interests at heart?
Do they have confidence in your organization s ability to provide them with and support your solution that works?
Authority
Authority is the ability to sign the check. Your time is valuable so why spend it in front of someone who lacks the authority or the funds to purchase what you are offering. The exception to this statement is if the contact can provide the information you require before speaking with the final authority.
Does the individual you are speaking with have the authority to buy?
Do you know how much authority your prospect has before further approvals are required?
Resources
It is important to define the resources or budget required to purchase your solution. This requires a commitment from the prospect to allocate enough time and staff to conduct an evaluation and make a recommendation to management.
Does the prospect have the time and staff necessary to conduct an evaluation?
Does the prospect have the time and staff necessary to prepare a cost justification?
Does the prospect have a budget available or access to discretionary funds?
Does the prospect have the right technical environment (hardware or technology)?
Serious Intention to Buy
When the prospect perceives an attainable solution to a current or future need, they have a serious intention to buy.
Is the prospect willing to act towards a solution?
Have evaluation criteria been defined? Is the prospect starting to look at competitors?
Has a specific person been assigned to find a solution to a specific need?
Does your prospect have a serious intention to buy?
How to Determine when it is Time to Move On
If someone says, no or we're not interested , that may mean, We re not interested at this time. Before you move on, inquire as to when they may be looking for your type of solution in the future. Then place a note in your schedule to call back at least one month before that time.
If you cannot find all four items mentioned above in any department then it is time to move on. If you leave at least five voice mails, emails, or faxes for the person who is responsible for acquiring your solution and you receive no response, then it is time to schedule long-term follow up (i.e. 3 months, 6 months or 1 year) or just plain move on.
REPRINT PERMISSION
Ron LaVine, MBA is president and founder of Accelerated Cold Call Training, Inc., a LIVE cold call training firm located in Oak Park, CA. You can get a special report 41 Sales Tips You Can Use Right Now AND the complementary bimonthly Sales Tips and Telesales Tips for Selling Success eZine by signing up at http://www.coldcalltraining.com. If you would like information on Live Cold Calling/New Business Development Sales Training please call Ron at 1-818-519-3852.
Until then. . .
Make it a great day and a successful week!
Ron
Accelerated Cold Call Training enables companies such as yours to:
> Quickly get into new accounts
> Reach decision-makers faster
> Identify and qualify opportunities better
> Exceed cold calling quotas
> Shorten sales cycles by working with actual decision makers
Over 55 testimonials letters can be read by clicking here: http://coldcalltraining.com/testimonials.htm. Ron S. LaVine, MBA is president and founder of Accelerated Cold Call Training, Inc., a LIVE cold call sales training firm located in Oak Park, CA. For a complementary cold call training consultation, call me at 1-818-519-3852 or send an Email to: rslavine @ coldcalltraining.com. Over 141 LinkedIn recommendations can be found by clicking here: http://www.linkedin.com/in/ronlavine
Sunday, August 21, 2011
17 Mistakes Sales Reps Make
By Ron LaVine
Accelerated Cold Call Training, Inc.
01. Talk too much.
02. Listen too little.
03. Ask the wrong types of questions at the wrong time.
04. Use close-ended questions instead of open-ended and vice versa.
05. Forget to ask permission to speak.
06. Talk over other people’s answers.
07. Call on the wrong people who have no authority to buy or influence the decision.
08. Speak to fast due to fear or because they feel uncomfortable.
09. Focus on their products rather than solutions.
10. Speak in a monotone or without enthusiasm or conviction.
11. Use a lot of wishy-washy words in a row like, could you possibly please, denoting a lack of confidence.
12. Don’t identify themselves, their company or what they do properly.
13. Leave their phone number only once and speak too fast.
14. Forget to spell and grammar check their writing.
15. Speak too slow sounding monotonous and boring.
16. Forget to ask for contact details (Name, Title, Email, Ext. reports to, boss’s boss and assistant.
17. Forget to set up a time and date specific action step.
18. Forget to be polite to everyone including assistants.
Seek first to understand and then be understood.
–
Make it a great day and a successful week!
Ron S. LaVine, MBA, President
Accelerated Cold Call Training, Inc.
Removing Fear from Cold Calling – Live Cold Call Training
638 Lindero Canyon Drive, Suite 283
Oak Park, CA 91377
818-991-6487 Phone
818-519-3852 Mobile
818-991-5938 Fax
http://www.coldcalltraining.com
Read over 141 recommendations here:
http://www.linkedin.com/in/ronlavine
Accelerated Cold Call Training, Inc.
01. Talk too much.
02. Listen too little.
03. Ask the wrong types of questions at the wrong time.
04. Use close-ended questions instead of open-ended and vice versa.
05. Forget to ask permission to speak.
06. Talk over other people’s answers.
07. Call on the wrong people who have no authority to buy or influence the decision.
08. Speak to fast due to fear or because they feel uncomfortable.
09. Focus on their products rather than solutions.
10. Speak in a monotone or without enthusiasm or conviction.
11. Use a lot of wishy-washy words in a row like, could you possibly please, denoting a lack of confidence.
12. Don’t identify themselves, their company or what they do properly.
13. Leave their phone number only once and speak too fast.
14. Forget to spell and grammar check their writing.
15. Speak too slow sounding monotonous and boring.
16. Forget to ask for contact details (Name, Title, Email, Ext. reports to, boss’s boss and assistant.
17. Forget to set up a time and date specific action step.
18. Forget to be polite to everyone including assistants.
Seek first to understand and then be understood.
–
Make it a great day and a successful week!
Ron S. LaVine, MBA, President
Accelerated Cold Call Training, Inc.
Removing Fear from Cold Calling – Live Cold Call Training
638 Lindero Canyon Drive, Suite 283
Oak Park, CA 91377
818-991-6487 Phone
818-519-3852 Mobile
818-991-5938 Fax
http://www.coldcalltraining.com
Read over 141 recommendations here:
http://www.linkedin.com/in/ronlavine
Tuesday, August 9, 2011
How to Get Cold Calling Intelligence
By Ron LaVine, MBA and President
Accelerated Cold Call Training, Inc.
Just collecting information is not enough. It is important to consider the impact or implications of that data. With each piece of information, ask yourself "What does this mean? What would happen if this action took place?" For example, you heard that Organization A is going to expand. You sell computer monitors.
Consider what the expansion would entail. Perhaps they would be hiring more staff – which would probably need monitors. Your next step would be to discover when and where the expansion would take place. Then how many people they plan to hire and who is responsible for evaluating and acquiring the monitors.
Alternatively, consider the organization who is acquiring another organization. Where will the funding come from? What systems will need to be integrated for the newly formed entity? Which positions will be eliminated? How will your "champion" or the person, who wants your solution to win any competitive battle, be affected?
Think about the importance of each piece of information you have uncovered. Then think about how you can use that information in service of your prospect. Listen carefully to what people share with you. Here are some questions you can ask yourself to determine what possibilities there are for you to make a sale or even multiple sales.
Who is responsible for making the final decision? Will it be a committee or an individual?
Has budget been set aside for your type of solution or does the prospect have access to budget?
Who, if anyone, will evaluate the proposed solution?
Who will implement the solution chosen?
Who will be the end user(s) of the solution?
How does this information benefit the person who told it to me?
Has the information been verified by a second source?
How can this data enable me to sell more of my solutions?
Why does the prospect operate this way?
What is the prospect’s future strategic direction?
What would happen if the prospect went in a specific direction? What might happen?
What are the implications of this decision?
What is going on in their industry?
What are their competitors doing?
What are the top, decision-making drivers? (For example, Client Loyalty, Market Share, Profitability, Risk, Regulations, Expenses, etc.)
What challenges, problems or pains would this decision create for the prospect?
What business opportunities would these problems create for you?
If applicable, what is their framework for avoiding a tactical focus?
Where and how should they start to connect your solution to corporate strategies and objectives?
How do they balance people, processes and technology?
What is the role of management?
What are their buying processes?
What are their top priorities?
What are the different timeframes? Timing for decisions, testing and evaluation, implementation and roll out, and feedback need to be established.
What types of time and date specific action or next steps do you think you should propose? What has worked successfully in the past?
What type(s) of training, if any, will be necessary to implement and encourage the use of the solution?
What types of documentation are needed and by whom?
How will you measure the results? Return on Investment, Net Payback Period, Total Cost of Ownership or another method.
These are but a sample of questions you should be able to answer while starting and driving a sale to its conclusion. Analyzing the information you collect from different sources will allow you to turn raw data into actionable business sales intelligence.
This intelligence you collect over the phone during a cold call can be used to understand who buys, how they buy, what they are interested in buying and why they buy. The answers to these questions plus answers to the questions above should speed up the process of converting prospects into clients.
--
Make it a great day and a successful week!
Ron S. LaVine, MBA, President
Accelerated Cold Call Training, Inc.
Removing Fear from Cold Calling - Live Cold Call Training
638 Lindero Canyon Drive, Suite 283
Oak Park, CA 91377
818-991-6487 Phone
818-519-3852 Mobile
818-991-5938 Fax
http://www.coldcalltraining.com
Read over 139 recommendations here:
http://www.linkedin.com/in/ronlavine
Accelerated Cold Call Training, Inc.
Just collecting information is not enough. It is important to consider the impact or implications of that data. With each piece of information, ask yourself "What does this mean? What would happen if this action took place?" For example, you heard that Organization A is going to expand. You sell computer monitors.
Consider what the expansion would entail. Perhaps they would be hiring more staff – which would probably need monitors. Your next step would be to discover when and where the expansion would take place. Then how many people they plan to hire and who is responsible for evaluating and acquiring the monitors.
Alternatively, consider the organization who is acquiring another organization. Where will the funding come from? What systems will need to be integrated for the newly formed entity? Which positions will be eliminated? How will your "champion" or the person, who wants your solution to win any competitive battle, be affected?
Think about the importance of each piece of information you have uncovered. Then think about how you can use that information in service of your prospect. Listen carefully to what people share with you. Here are some questions you can ask yourself to determine what possibilities there are for you to make a sale or even multiple sales.
Who is responsible for making the final decision? Will it be a committee or an individual?
Has budget been set aside for your type of solution or does the prospect have access to budget?
Who, if anyone, will evaluate the proposed solution?
Who will implement the solution chosen?
Who will be the end user(s) of the solution?
How does this information benefit the person who told it to me?
Has the information been verified by a second source?
How can this data enable me to sell more of my solutions?
Why does the prospect operate this way?
What is the prospect’s future strategic direction?
What would happen if the prospect went in a specific direction? What might happen?
What are the implications of this decision?
What is going on in their industry?
What are their competitors doing?
What are the top, decision-making drivers? (For example, Client Loyalty, Market Share, Profitability, Risk, Regulations, Expenses, etc.)
What challenges, problems or pains would this decision create for the prospect?
What business opportunities would these problems create for you?
If applicable, what is their framework for avoiding a tactical focus?
Where and how should they start to connect your solution to corporate strategies and objectives?
How do they balance people, processes and technology?
What is the role of management?
What are their buying processes?
What are their top priorities?
What are the different timeframes? Timing for decisions, testing and evaluation, implementation and roll out, and feedback need to be established.
What types of time and date specific action or next steps do you think you should propose? What has worked successfully in the past?
What type(s) of training, if any, will be necessary to implement and encourage the use of the solution?
What types of documentation are needed and by whom?
How will you measure the results? Return on Investment, Net Payback Period, Total Cost of Ownership or another method.
These are but a sample of questions you should be able to answer while starting and driving a sale to its conclusion. Analyzing the information you collect from different sources will allow you to turn raw data into actionable business sales intelligence.
This intelligence you collect over the phone during a cold call can be used to understand who buys, how they buy, what they are interested in buying and why they buy. The answers to these questions plus answers to the questions above should speed up the process of converting prospects into clients.
--
Make it a great day and a successful week!
Ron S. LaVine, MBA, President
Accelerated Cold Call Training, Inc.
Removing Fear from Cold Calling - Live Cold Call Training
638 Lindero Canyon Drive, Suite 283
Oak Park, CA 91377
818-991-6487 Phone
818-519-3852 Mobile
818-991-5938 Fax
http://www.coldcalltraining.com
Read over 139 recommendations here:
http://www.linkedin.com/in/ronlavine
Sunday, July 24, 2011
ARE YOU WATCHING OUT FOR THE SOLUTION TRAP?
By Ron LaVine, MBA
President of Accelerated Cold Call Training, Inc.
It is a common trap. A solution trap that many sales reps fall victim too. Let's look at how the trap works by examining two situations.
In the first scenario, Typical Sales Rep has done some homework on the Internet by stopping by the prospect's web page, visiting LinkedIn, Jigsaw, etc. and reading about the prospect’s solution and industry.
Maybe the sales rep has gone so far as to read the prospect’s Management Analysis and Review in the annual report and study the career section to find out who is being hired and for what types of project.
By the way, these are key activities you should do before cold calling on a large organization.
Based on these observations, Typical Sales Rep begins to put together a selling plan based on what they think is best for the prospect.
Next, Typical Sales Rep walks in or calls in and makes a quick introduction. Typical Sales Rep hopes they are presenting to the right person who has the authority to buy.
Typical Sales Rep may ask a few questions but soon feels the need to present the features and benefits of their complete solution.
Usually this is a strategic overview of how other companies have used their solution rather than a specific situational view of how this prospect can use the solution to meet their specific and unique requirements.
Never mind that the sales rep has not done enough questioning to understand what is needed, the sales rep feels it is vitally important for them to rely the importance of what they have to offer.
“If our solution has worked for other companies then it will definitely work for you.”
Typical Sales Rep has just triggered the solution trap.
Once caught in the solution trap it becomes difficult to move in any other direction but forward.
Now that the Typical Sales Rep has started to present, it becomes a challenge to go backwards and ask questions about what the prospect would like to see or hear presented about their specific situation.
The Typical Sales Rep can only hope their presentation has hit a hot button and even so, the sales rep may still not have created or crafted a compelling reason to buy.
Now let's look at our second rep only let's entitle them as an Info Sales Rep.
One of the advantages of staying in what I call “information mode” is that it makes people less defensive and more willing to provide information.
People don’t like to be sold, they like to buy. Prospects don’t want to be talked to by a sales rep; they would rather speak with a salesperson who understands their specific needs.
Let’s get back to the Info Sales Rep.
They too also have visited the prospect’s web site to gain an understanding of how the prospect does business and look for clues of what types of situations are affecting the way the prospect conducts their business.
The Info Sales Rep then tailors a list of specific situational questions designed to uncover the prospect’s current and future needs, challenges, problems and pains.
Then the Info Sales Rep, once in front of the person they know has the authority to buy invests their time asking questions and listening closely to the meanings in the answer.
What the prospect says is then feedback to them to insure a clear understanding between the Info Sales Rep and the prospect.
Like the sales rep, the temptation to present a solution builds.
However, the Info Sales Rep has trained themselves to be more disciplined and ask even more questions to help the prospect agree to isolate what the challenges are and what is of importance to them, the prospect, in a solution.
The Info Sales Rep wants to know what the prospect values most in a solution BEFORE presenting their solution so they consciously avoid presenting solutions before knowing the facts.
By having asked specific situational questions and having gained agreement on what is of importance to the prospect, the Info Sales Rep now has it much easier when it comes time for the presentation of a situation specific solution.
When excellent information collecting skills are combined with a good, highly focused, "what's best for the customer presentation", then the close of a sale a.k.a. the opening of a new partnership becomes a natural conclusion.
The Info Sales Rep has mastered the art of helping the prospect to buy using direct questions based on the prospect's answer.
After all, which makes more sense? Delivering a presentation, which focuses upon the prospect’s unique situation or trying to sell to the prospect on a “one size fits all” solution?
The Lessons
Take your Typical Sales Rep hat off and put your Info Sales Rep hat on as you seek to gain understanding of how an organization does business before trying to sell anything.
You may even save your precious selling time by learning there is not even a need to sell because the prospect is not qualified for your solution.
Train yourself to resist talking about your solution too soon by being interested rather than interesting.
This informational, question based approach, will help keep the prospect’s defenses down and will encourage them to really open up about what is bothering them or what they would like to do better and why.
Avoid implying what you have to offer is more important than what the prospect needs.
There is a time to learn and a time to sell.
They are separate and when used in the proper order you will find your presentations more effective. Closing will happen more often and much easier than before.
Finally, you’ll enjoy greater selling success than ever before.
REPRINT PERMISSION
Ron LaVine, MBA is president and founder of Accelerated Cold Call Training, Inc., a cold call training firm located in Oak Park, CA. If you would like information on How to Make Successful Cold Calls – LIVE Call Training please call Ron at 818-519-3852 or visit www.coldcalltraining.com. © 2011 by Accelerated Cold Call Training, Inc.
President of Accelerated Cold Call Training, Inc.
It is a common trap. A solution trap that many sales reps fall victim too. Let's look at how the trap works by examining two situations.
In the first scenario, Typical Sales Rep has done some homework on the Internet by stopping by the prospect's web page, visiting LinkedIn, Jigsaw, etc. and reading about the prospect’s solution and industry.
Maybe the sales rep has gone so far as to read the prospect’s Management Analysis and Review in the annual report and study the career section to find out who is being hired and for what types of project.
By the way, these are key activities you should do before cold calling on a large organization.
Based on these observations, Typical Sales Rep begins to put together a selling plan based on what they think is best for the prospect.
Next, Typical Sales Rep walks in or calls in and makes a quick introduction. Typical Sales Rep hopes they are presenting to the right person who has the authority to buy.
Typical Sales Rep may ask a few questions but soon feels the need to present the features and benefits of their complete solution.
Usually this is a strategic overview of how other companies have used their solution rather than a specific situational view of how this prospect can use the solution to meet their specific and unique requirements.
Never mind that the sales rep has not done enough questioning to understand what is needed, the sales rep feels it is vitally important for them to rely the importance of what they have to offer.
“If our solution has worked for other companies then it will definitely work for you.”
Typical Sales Rep has just triggered the solution trap.
Once caught in the solution trap it becomes difficult to move in any other direction but forward.
Now that the Typical Sales Rep has started to present, it becomes a challenge to go backwards and ask questions about what the prospect would like to see or hear presented about their specific situation.
The Typical Sales Rep can only hope their presentation has hit a hot button and even so, the sales rep may still not have created or crafted a compelling reason to buy.
Now let's look at our second rep only let's entitle them as an Info Sales Rep.
One of the advantages of staying in what I call “information mode” is that it makes people less defensive and more willing to provide information.
People don’t like to be sold, they like to buy. Prospects don’t want to be talked to by a sales rep; they would rather speak with a salesperson who understands their specific needs.
Let’s get back to the Info Sales Rep.
They too also have visited the prospect’s web site to gain an understanding of how the prospect does business and look for clues of what types of situations are affecting the way the prospect conducts their business.
The Info Sales Rep then tailors a list of specific situational questions designed to uncover the prospect’s current and future needs, challenges, problems and pains.
Then the Info Sales Rep, once in front of the person they know has the authority to buy invests their time asking questions and listening closely to the meanings in the answer.
What the prospect says is then feedback to them to insure a clear understanding between the Info Sales Rep and the prospect.
Like the sales rep, the temptation to present a solution builds.
However, the Info Sales Rep has trained themselves to be more disciplined and ask even more questions to help the prospect agree to isolate what the challenges are and what is of importance to them, the prospect, in a solution.
The Info Sales Rep wants to know what the prospect values most in a solution BEFORE presenting their solution so they consciously avoid presenting solutions before knowing the facts.
By having asked specific situational questions and having gained agreement on what is of importance to the prospect, the Info Sales Rep now has it much easier when it comes time for the presentation of a situation specific solution.
When excellent information collecting skills are combined with a good, highly focused, "what's best for the customer presentation", then the close of a sale a.k.a. the opening of a new partnership becomes a natural conclusion.
The Info Sales Rep has mastered the art of helping the prospect to buy using direct questions based on the prospect's answer.
After all, which makes more sense? Delivering a presentation, which focuses upon the prospect’s unique situation or trying to sell to the prospect on a “one size fits all” solution?
The Lessons
Take your Typical Sales Rep hat off and put your Info Sales Rep hat on as you seek to gain understanding of how an organization does business before trying to sell anything.
You may even save your precious selling time by learning there is not even a need to sell because the prospect is not qualified for your solution.
Train yourself to resist talking about your solution too soon by being interested rather than interesting.
This informational, question based approach, will help keep the prospect’s defenses down and will encourage them to really open up about what is bothering them or what they would like to do better and why.
Avoid implying what you have to offer is more important than what the prospect needs.
There is a time to learn and a time to sell.
They are separate and when used in the proper order you will find your presentations more effective. Closing will happen more often and much easier than before.
Finally, you’ll enjoy greater selling success than ever before.
REPRINT PERMISSION
Ron LaVine, MBA is president and founder of Accelerated Cold Call Training, Inc., a cold call training firm located in Oak Park, CA. If you would like information on How to Make Successful Cold Calls – LIVE Call Training please call Ron at 818-519-3852 or visit www.coldcalltraining.com. © 2011 by Accelerated Cold Call Training, Inc.
Saturday, July 9, 2011
Objections and Misunderstandings
Objections and Misunderstandings
By Sam Parker of Just Sell
"One of the best ways to persuade others is with your ears-- by listening to them." -- Dean Rusk, US Secretary of State (1909-1994), served under presidents Kennedy & Johnson
We've all been taught how to handle our most common objections or misunderstandings from prospects and customers but in some cases these "objection handlers" have a defensive or an offensive tone, especially when we're in the middle of a presentation (formal or informal). Nothing can send a presentation in the wrong direction more than a misunderstanding (small or large).
Over the coming weeks (or this weekend if you can), invest some time outside the money hours in examining your planned responses to your top three objections. If you don't have anything to examine, here is another idea.
Remove anything that could potentially be misinterpreted as defensive, manipulative or borderline sarcastic or in other words, leave slick and "cute" lines to your competition.
Show appreciation for the objections in a way that validates the prospect's concerns. Work through your responses with someone outside your sales & marketing department.
Get genuine feedback, make appropriate changes and practice the delivery of your responses until you have them as tight as your opening prospecting statements.
Selling is about helping your prospects and customers solve a problem, not about winning a court case.
Think non-abrasive. Think appreciation. Think validation. Then just sell.
It's all about sales™
Justsell.com-- your sales & marketing portal™
http://www.justsell.com
(c) 1998-2002 www.justsell.com MaxPitch Media, Inc. All rights reserved. Samparker @ justsell.com.
By Sam Parker of Just Sell
"One of the best ways to persuade others is with your ears-- by listening to them." -- Dean Rusk, US Secretary of State (1909-1994), served under presidents Kennedy & Johnson
We've all been taught how to handle our most common objections or misunderstandings from prospects and customers but in some cases these "objection handlers" have a defensive or an offensive tone, especially when we're in the middle of a presentation (formal or informal). Nothing can send a presentation in the wrong direction more than a misunderstanding (small or large).
Over the coming weeks (or this weekend if you can), invest some time outside the money hours in examining your planned responses to your top three objections. If you don't have anything to examine, here is another idea.
Remove anything that could potentially be misinterpreted as defensive, manipulative or borderline sarcastic or in other words, leave slick and "cute" lines to your competition.
Show appreciation for the objections in a way that validates the prospect's concerns. Work through your responses with someone outside your sales & marketing department.
Get genuine feedback, make appropriate changes and practice the delivery of your responses until you have them as tight as your opening prospecting statements.
Selling is about helping your prospects and customers solve a problem, not about winning a court case.
Think non-abrasive. Think appreciation. Think validation. Then just sell.
It's all about sales™
Justsell.com-- your sales & marketing portal™
http://www.justsell.com
(c) 1998-2002 www.justsell.com MaxPitch Media, Inc. All rights reserved. Samparker @ justsell.com.
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