SALES
Are You Playing Russian Roulette with Sales?
Now is not the time to gamble with quick-fix tactics. Try
these five guidelines for selling in tough times.
GOOD ECONOMIC TIMES make it easy to sell. It isn’t just that the
money is flowing freely. It’s also buyers’ upbeat, “we’re
invincible” attitude that gets the orders. In other words, they are
ready to buy!
That was then. What about now? The clouds are dark. Customers are
going inside and closing the drapes. They’re hunkering down and are
anything but interested in seeing salespeople. Because of all this,
it’s easy to fall victim to the prevailing mood and decide we should
“do something” to generate more business. It’s then that we often
begin a quest for the “silver bullet” or the quick fix. It’s time to
stop hoping that there’s a “solution” out there somewhere that will
produce a slew of new sales. It’s in times like these when those
offering sure-fire gimmicks prey upon us with their promises of easy
success.
In the spring of 2008, Harvard economics professor Larry Summers
summarized the current economic situation in a few words, “More
distress lies ahead.” He was right. Yet, far too many naïve
salespeople continue to look for quick fixes and “silver bullets” to
help them be successful in today’s economy. But without even knowing
it, they are playing Russian roulette.
Here’s a three-point reality check for anyone in sales today:
• Stop hoping that “things will change for the better.” They will,
of course. But no one knows when. Waiting it out is only a plan for
greater pain.
• Forget about relying on relationships with “influencers” to bail
you out. They’re so preoccupied with their own concerns, they don’t
have time to listen to your story, no matter how much money you
claim you can save them.
• Stay away from anyone who tells you what you want to hear. They
will only get your hopes up, cost you money and waste your time.
You’ll be worse off than when you started!
This picture may seem unnecessarily discouraging and negative. It’s
not; it’s just realistic. But it’s also filled with opportunities.
Here are five realistic recommendations for ramping up your sales:
1. Be sure you’re branded. In times like this, it’s more
important than ever. This means paying very careful attention to
understanding what our customers think about when they think about
us. Good or bad, right or wrong, accurate or inaccurate, that’s our
brand.
This is important since we often see ourselves quite differently
from the way others view us. We see ourselves in the most favorable
light. We tune out anything that might challenge how we like to
think of ourselves.
If what we say and do isn’t consistent with the picture the customer
has of us, we’re done. Inconsistency always makes people feel
uncomfortable and doubtful about us. On the other hand, when
sincerity, the desire to be helpful, patience and competence come
through, there’s a positive connection with the client. That’s the
type of branding that’s worth working on.
2. Share everything you know. There are no blank book
customers today. They all bring some level of knowledge to the
buying situation. Even though their information may be limited and
even faulty, it empowers them to take charge of the sale, the result
of spending time on the Internet.
If there was ever a time to practice a consultative approach, it’s
now. Persuasion is out; it only drives customers away. Even with
limited knowledge, customers want to be collaborative and the wise
salesperson takes the role of coach instead of closer.
All this makes an important point: Customers are far more serious
than they were even a couple of years ago, more demanding and less
forgiving. At the same time, they’re more willing to listen to those
who take time, share their knowledge and don’t lapse into a “sales
mode.”
3. Sell security. The customer’s caution flag is flying!
Growth is always good, but today the focus is on avoiding loss. To
some extent, there’s a resurgence of the Depression era safety
mentality epitomized in the passbook savings account.
With a depressed housing market in most parts of the nation, a
gyrating stock market, the threat of being laid off and the
escalating cost of living, security has taken on new significance.
In this environment, it’s the fear of loss that’s creating a high
level of customer angst. In a time like this, dreams give way to
worrying about having enough money to put gas in the tank. Buyers
want safety and they look for guarantees above all else.
4. Don’t attempt to shorten the sales cycle. In a shaky
economy, buying decisions may take longer than ever, since no one
wants to make a mistake. Customers want to be sure that they’re
making the right buying decisions.
If they feel they’re being “pushed,” the sale will be lost. They
want to take their time so they can feel comfortable with what they
are buying. Just because you may think they’ve had more than enough
time, don’t write them off. They will buy when they get ready. This
is when it’s important to stay close to encourage questions and be
ready to provide helpful information.
Most sales are lost because salespeople assume that the customer
isn’t going to buy and then they’re totally surprised six months or
a year later to discover that they bought from someone else. Most
sales are lost because the salesperson quit too soon.
5. Market aggressively. While many customers are hunkering
down, don’t make the mistake of doing it yourself. Because your
competitors are lying low, use this as the right time to raise your
visibility by being more assertive in your marketing.
When times get tough, most companies are far from ready to do
battle. They have nowhere to turn because they failed at
prospecting. Ask them if they stay in touch regularly with all their
prospects and customers, and you’ll get a blank stare. Ask them if
they actively help their customers reduce operating costs, and they
don’t have a clue what you’re talking about. In other words, these
salespeople and their companies are unprepared to meet the
challenges of a difficult economy.
Taken together, these five guidelines form a powerful script for
marketing a salesperson’s services in difficult economic times. They
require some work, but they are far more successful than looking for
a quick fix or playing Russian roulette with a “silver bullet.”
John R. Graham is president of Graham Communications, a marketing
services and sales consulting firm specializing in the insurance
industry. He writes and speaks on business, marketing and sales
issues. Contact Graham at 40 Oval Road, Quincy, MA 02170,
617-328-0069 or jgraham@grahamcomm.com. The company’s website is
www.grahamcomm.com.
[go to top]
T R E N D S
Economic downturn uncovers new markets
Can this economic cloud really have a silver lining? Research firm
MarketingSherpa is asking just that by conducting a formal study
examining the changing demographics of the U.S. during the economic
crisis. While the final results aren’t in yet, here’s a preview of
three segments that are emerging.
The New Frugal: They haven’t lost their jobs or their homes, nor do
they expect to. Caught up in the national mood of poverty, however,
they’re cutting back on credit card purchases while growing savings.
The new frugal are less attracted to sales and buy-it-now bargains
than they are to significant value. They want quality, good value
for their money, safety, longevity and a sense of rational calm in
the eye of the storm.
The New Cash Rich: Those belonging to the older segment of this
market have pulled their funds from stocks and other investments.
They now have liquid cash to put “somewhere safe.” They won’t
fritter the money away without a solution. Hot topics include
investment real estate.
The younger segment members are the newest college grads who either
haven’t left home yet or, perhaps, moved back recently. They know
they should save their income for the future, but they can’t help
spending “a little” for fun while they’re trapped at home. That
“little” is probably more than they would have spent on
entertainment had they been out on their own paying for rent and
food.
The New Entrepreneur: Every time we have a recession, a new crop of
entrepreneurs springs out of those who were laid off. They aren’t
buying fancy chairs or color printers; they’re establishing business
bank accounts, second phone lines, inventory and spending more time
meeting potential clients and backers.
Source: MarketingSherpa.com, October 13, 2008
Telecommuting taking off for small business
Telecommuting has been growing over the past decade, and the recent
surges in gas prices and growing environmental concerns are making
telework increasingly attractive to small businesses.
According to a recent report from CDW Corp., 36% of private sector
organizations now permit teleworking, and 14% of employees are
actually doing it. Telework can mean anything from working full time
at home, to telecommuting one day a week, to staying home and
working when a blizzard or power outage hits.
The benefits, some quantifiable, include reduced operating costs,
increased productivity, better ability to recruit talent and a more
nimble, responsive organization with fewer vulnerabilities.
To make telecommuting work, you may need some new technology, but it
doesn’t have to be terribly expensive. Broadband enables secure
technologies and services that let employees remotely access data on
company servers. IP phone systems and services let workers appear to
be in the office even when they’re at home, in an airport or in the
back of a cab. Even more important, experts say, is thinking through
the larger implications, especially the human factors, and
performing due diligence on technology and other telework-related
decisions.
Source: Small Business Computing, September 22, 2008
Holiday shopping: More prefer Web to in-store
For the first time, the Web has surpassed the store as the preferred
way for multi-channel shoppers to purchase holiday gifts, according
to an annual survey by the e-tailing group. Nearly half (49%) of
those shoppers say they intend to do their holiday gift buying
online, compared with 44% who plan to do so in-store, found the
online survey of over 1,000 adults who shop online four or more
times per year, spending at least $500 annually.
Reasons for shopping online start with saving time (88%), locating
hard-to-find products (84%), greater selection (83%) and avoiding
the crowds at the mall (83%) — all surpassing saving money, which is
still an important factor (80%).
Source: RetailerDaily.com, October 14, 2008
[go to top]
N E W S
Hold off on cutting your charity budget
AWith fewer dollars to work with, many companies cut cause-related
marketing to focus on what will make the biggest impact on the
bottom line. However, recent research indicates that, regarding both
customers and employees, supporting a cause may pay big dividends.
For example, advertising that is cause-related can increase sales as
much as 74% in certain consumer-goods categories, and consumers
spend twice as long looking at cause-related ads than generic
corporate ones, according to a study by brand marketing firm Cone
and Duke University.
A separate study by Cone may help explain this phenomenon. Despite
lean economic times, 78% of U.S. consumers think companies should
either maintain or increase their level of financial support for
causes and nonprofit organizations, according to research conducted
by Opinion Research Corporation for Cone.
In the study, 79% say they would be likely to switch from one brand
to another, when price and quality are about equal, if the other
brand is associated with a good cause (compared with 66% in a 1993
study).
What’s more, helping others keeps employees happy, too. Nearly
three-quarters of American employees think their companies should
help extremely poor people around the world if they have the
resources, according to a survey conducted by Harris Interactive.
These studies indicate that supporting a cause can offer a
competitive advantage even during tough times.
Source: MarketingCharts.com, October 3, 6 and 14, 2008
[go to top]
T I P S
- One of the most powerful formulas for getting a big response from a
marketing campaign is by creating a message that includes a real benefit
or solution plus a limited amount of time to act. However, if prospects
don’t act right away, chances are they never will. That’s why it pays to
not only state there’s a limited amount of time to act, but actually
attach a specific deadline to inspire action. Reduce any doubts about
your offer by including a money-back guarantee. Finally, make responding
easy. Offer multiple ways to redeem the offer, number the steps
prospects should take to respond and let them know when they’ll hear
back from you and how (phone, email, etc.).
Source: www.jackforde.com
- Build team spirit amongst your people by setting a
regular date for team building. Spending some play-time with
co-workers builds the kind of camaraderie that makes people
comfortable sharing information and ideas. You don’t have to plan
elaborate outings. Just get together for a meal — restaurant,
potluck or barbecue at your place — at least once a quarter.
Source: www.ragan.com
- Does your modesty get in the way of self-promotion at
networking events? Team up with a colleague with whom you can act as
one another’s secret PR agent. After arriving at an event,
alternately separate and come together in the midst of conversations
with others to drop compliments. For example, when you approach your
friend and the person she’s talking to, your cohort can say “Let me
introduce you to my friend. She is truly one of the greatest
speakers around.” Then, you can respond with a compliment about your
associate. This method allows you to say great things about each
other that you’d never say about yourself.
Source: www.patriciafripp.com
- Watch those credit cards! Proposed regulations will make
it harder for credit card issuers to jack up interest rates and
fees. Lenders see the writing on the wall and are raising rates now.
A survey of major issuers by the consumer advocacy group Consumer
Action found that 37% of firms have raised rates across the board,
even for borrowers with relatively pristine credit records. One
consumer missed a single payment and his rate jumped from 9% to 30%.
A business owner had her limit cut from $400,000 to $51,000 even
though she pays on time.
Sources: www.businessweek.com; www.fortune.com
- Build quotable quotes that the media eat up by using the
FAME formula developed by PR pro Jon Greer. Facts and figures:
Details tell the story. For instance, you might say there were “six
engineers who worked on the project for 10 months, with some of them
pulling all-nighters to make sure the product got out on time,”
instead of “the new product was produced by a dedicated group of
professionals.” Analogies and metaphors: For example, saying that a
distance is the “length of 10 football fields.” Make a reference to
pop culture or current events: Say something like, “While Paris
Hilton may not be a regular, the diner has been a local favorite for
over 50 years.” Examples and emotions: Give real-world examples of
how people can use your product or service, or share some emotional
component of the effort to bring that product or service to them.
Source: www.bnet.com
- Worried about holiday sales for your store or website?
You can boost sales by shifting your focus toward last-minute
shoppers. The National Retail Federation reported that more than
half of consumers surveyed were only half finished with their
Christmas shopping last year by December 18. Make it easy for
procrastinators by presenting gift suggestions by price range and by
family member. A significant percentage of last-minute shoppers are
male, so keep this in mind as you craft design, copy and offers.
Source: www.targetmarketingmag.com
- This may be the perfect time to start a blog. People
still buy during tough economic times. It’s just that every purchase
or investment undergoes far more scrutiny. Fear of making the wrong
decision is a primary motivator in purchase decisions. Thought
leaders are perceived experts. Businesses want to hire experts.
Experts get paid more, and they get recruited from further away.
Why? Because in going with an expert, the perceived risk is lower.
One of the least costly ways to begin to establish thought
leadership is through blogging. Done right, blogging can both
greatly enhance your perceived expertise and increase your chances
of being discovered on search engines.
Source: www.searchengineland.com
- Loans to veterans. Members of the military, veterans and
their spouses may want to check out the Small Business
Administration’s Patriot Express Loan Initiative. The lending limit
is $500,000 and can be used for most business purposes, including
start-up, expansion, equipment purchases, working capital, inventory
or business-occupied real-estate purchases. Local SBA district
offices will have a listing of Patriot Express lenders in their
areas.
Source: www.sba.gov
- Are you missing out on forgotten links to your website?
Have outside websites linked to old or missing pages on your
website? Find out by using a new feature in Google’s Webmaster
Tools. Assuming you already have a Webmaster Tools account (if not,
consider getting one), log in and select your website. Look for the
link to view your “not found” pages. You’ll see a list of URLs that
are feeding 404 errors to sites that link to you. Next, click on the
links in the “linked from” column. You’ll get a pop-up window that
shows which site is linking to the broken URL. If you have any links
coming in from outside websites, consider notifying the webmasters
and ask if they’d be willing to fix the bad links.
Source: www.searchengineguide.com
[go to top]
|
