A Question From Annie

Today I'll take a quick break from the "lessons from the road" series to answer a question from a blog reader:

Dear Colleen,

I have been told by my manager that I need to ask questions during a sales call. He thinks my sales performance will improve if I send more time questioning and less time explaining our product to the customer. I am willing to give this a try because I have not been as successful as I would have liked so far. Specifically I have been told to ask more expanding and clarifying questions. I am not sure what he means by this, can you help?

Thanks, Annie

Dear Annie,

First, congratulations on being willing to try something new! This is the first, and most critical step towards greater success.

Without knowing very much about your situation and product lines, I can tell you that I think your manager is on the right track. One of the most common mistakes sales people make is that, at the first sign that a customer has a problem we can solve, we stop asking questions and start pitching our product. What we should be doing instead is taking this as our cue to ask even more questions.

Expanding and clarifying questions are typically used to gather more information, once you've discovered an issue or problem that the customer wants to discuss. Learning how to use these questions effectively can make the difference between being an average performer, and a sales star.

Expanding questions encourage the customer to expand or elaborate on what they've already told you. Some sample expanding questions might include:

• Tell me more about that?
• Why are you interested in…?
• What have you done so far to try to solve the problem?
• How is that working for you? (made famous by Dr. Phil!)
• How long has this been going on?
• What impact has this had on your business/unit/group/department/etc?
• What will happen if you don’t solve this problem?
• How important is this project to you?

Clarifying questions, on the other hand, ask for more specific details, which can help you spell out or clarify a particular area of the problem or issue where you may not have all the information you need. For example, clarifying questions could include:

• What do you mean by…?
• What is important to you about…?
• When you say, “it’s costing you lots of money,” what do you mean by "lots"?
• When you say morale is bad, what do you mean by "bad"?

Good luck be sure to check out our article archive, and especially the article http://www.engageselling.com/articles/050822article_popthequestion.shtml for more details on what questions to ask.

Dedicated to increasing your sales,
Colleen

Lessons Learned from the Road

I just returned from a week long Motorcycle trip. It was my first and definitely not my last! We rode from Ottawa through New York's Adirondack Mountains, and Catskills. Day's 3-6 were up and down up and down the coast of Maine, - looking for the best lobster shack - and then into the White Mountains of New Hampshire, and the Green Mountains in Vermont. We finished off with a trip into the Eastern Townships of Quebec. Definitely worth the trip by car or bike. Let me know if you are heading into this region as I have a ton of great restaurant recommendations.

You have lots of time to think while on a bike. And while most my thoughts were about staying alive and avoiding road hazards (like cars), I did have moments of inspiration about sales and success.

Over the next few postings I will be sharing the lessons I learned on the road.

Lesson 1: Always be Prepared

As we rode into Lake Placid on day 1 it started to rain. Downpour to be exact. Thanks to good planning, our rain gear was easily accessible - and in good working order. Pants, jacket, overboots, gloves and goggles. It's not pretty, but it works! An hour later we arrived in Lake Placid and while soaked on the outside, we were warm and dry as can be, on the inside. Other bikers were not so lucky and arrived sopping wet through to their skin...and chilled to the bone.

While Chris and I spent the evening having a lovely 5 course dinner at the Brown Dog Cafe (a MUST in Lake Placid). The soggy, unprepared bikers spent all night stuck in their rooms furiously drying out their boots and gloves with the hotel hair dryer, to make them wearable the next day.

The next day we packed up to head out of town and I saw a sad sight. A biker in a rain slicker (like a Moo Moo) with his friends laughing so hard they could barley hold up their bikes. In a last attempt to stay dry, the poor soul had bought a rain slicker from a tourist shop. Humiliating? Yes, Uncomfortable? Yes. Practical? NO. The slicker was just sturdy enough to last one acceleration past 60 before it would be shredded by the wind. Poor guy would be wet and irritated by the time he got home. He should have ben prepared for rain before he left home.

Now I admit - I am not a pretty picture after a few hours in a helmet and riding in the rain either. Witness exhibit A to the left....But I was sure glad to be dry. I was glad that we were prepared. BTW that's is the Ausable Chasm outside Lake Placid in New York

How prepared are you for every sales call, presentation or meeting? Have you run through everything that could go right and wrong and developed primary and secondary materials? Some people call it guarding against "Murphy's Law". I call it profitable.

Here is how I prepare for every sales call

1. What I am going to say? Be sure to write some notes for yourself as a reminder.
2. What questions am I going to ask? Again write them down before you go into the meeting.
3. What is the customer likely going to ask, and how am I going to respond?
4. What are the likely objections the customer will have and what will my responses be?
5. What is my objective of the meeting?
6. What is my plan B if I don't reach my objective?

Being prepared for every sales call means there is less likelihood that you will be caught off guard and you definately don't want to look up prepared in forn of a client. These 6 questions will take you at most 45 minutes to prepare and they are the same 6 you will ask yourself before every call.

At the end of the call you should also debrief yourself because this helps to prepare you for the next meeting. Be sure to ask:

1. What objections did the customer have that I was not prepared for?
2. How would I answer those?
3. What came up that I was not prepared for?
4. What would I do differently?
5. What are the follow up steps.

Preparing for each call will ensure that you win more business and are not left wet and hung out to dry by any customer!

In sales, we get paid to pay attention. We need to pay attention when our prospect is talking, when we are asking questions, when we are presenting to a group, when we are driving around our territories (on the look out for new prospects) and in internal meetings. I have found that the most successful sales people are the most attentive sales people.

I am always amazed by how inattentive sales people can be. We are multi-tasking, thinking about what to say next, or hoping our prospect will be quiet long enough for us to make our next point. We are not always 100% focused on the prospect/client. Yet, think about it….if you don’t pay attention, how will we know what the customer really wants to buy?

Paying attention means listening to what your prospect says AND also how they say it. It means listening with your ears, as well as your eyes. Be sure to watch body language and listen to their tone, sometimes the most obvious buying signals are not verbal.

When my friend Mike Staver (http://www.thestavergroup.com/) was in college, he did an experiment in my Psych 101 class. He was instructed to respond with an enthusiastic, "Bad, thanks!" when asked, "How are you?" Mike, along with the rest of the class, was amazed that far more than 80 percent of the people responded to our saying, "Bad, thanks!" with, "Great, have a good day!" (Or something close to that).

If you want to have some fun….at your next cocktail party try it! – You’ll be amazed at how few people pay attention to what you say.

So how do you know if you are paying attention? Mike has created a checklist to determine just how well you do at paying attention that I think is worth paying Attention to:

Here are 15 Ways to test how well you are paying attention. Check of all that apply to you…and be honest!

1. I approach important situations without clearing my mind or taking steps to prevent interruptions or distractions.

2. I engage in other activities while I'm listening (opening e-mail, surfing the net, putting the phone on mute and having other conversations.....be honest now - answer my blackberry etc.).

3. I assume I know what others will say.

4. I interrupt. (Colleen Note: This is a BIG one for sales people)

5. I finish sentences for people.

6. I become impatient and tune others out when they say things I don't agree with or don't want to hear.

7. I form a rebuttal or response in my mind while they talk.

8. I ignore non-verbal cues such as tone, voice, or body language.

9. I act as if I understand when in fact I don't. (Colleen Note: Please don't be afraid to ask questions)

10. I listen for specific facts rather than broad ideas.

11. I fidget when people speak too slowly. (Colleen Note: This is another BIG one for sales people)

12. I dwell on aspects of the speaker that have no bearing on the content (clothing, mannerisms, etc.).

13. I daydream while others are talking.

14. I use repetitive responses (uh huh, right, ok etc.).

15. I use body language that discourages communication.

Paying attention to your prospects and clients will result in more profits for you. I challenge you to choose one of the items you checked off and commit to not do it for the next week. You will be amazed at how hard it is and how effective you will become.

For more information about Mike Stave visit http://www.thestavergroup.com/

Dedicated to increasing your sales,

Colleen Francis

Change your Environment to Change your Thinking

Ever faced a customer dilemma or sales problem you just can't wrap your head around? Many of us have. Consider changing your environment. The latest studies show that we are at our most creative away from the office.

I'm sure this is no surprise to you - it wasn't for me. Think about it. Don't you find that you solve problems best when you are out for a walk, in bed, in the shower, or just relaxing on the couch? I know I do. There is definitely merit to the idea of keeping a pen and pad of paper beside your bed!

The following was sent to me by Ed Bernacki, president of The Idea Factory at www.WowGreatIdea.com

Survey: Business Thinking Done Outside of the Office

Dover, N.H. -- July 24 When it comes to personal thinking related to business, the most effective location is at home, based on a new survey.

More than half (58.3%) of senior executives and managers say they are most effective in personal thinking about business while in their home, according to the nationwide survey of 223 senior executives and managers conducted by NFI Research.

The next most effective places for business thinking are

1. Commuting (49.8%),
2. The office (44.8%) and
3. During brainstorming sessions (37.8%).

NFI Research surveys 2,000 senior executives and managers globally every two weeks. It has chronicled the transformation of business and countless workplace issues for seven years. NFI Research's membership represents some of the worlds most renowned and innovative company, including many members from Fortune 100 Companies.

For more information: http://www.netfutureinstitute.com/

Today I am addressing an excellent concerned raised by an experienced sales pro and member of our Lead-up coaching program. (www.lead-up.com)

David writes: "Your cold calling metric supposes that the best way to find new business is to make huge numbers of cold calls (I call this the "throw enough mud against a wall and some will stick" theory). Like most sales people I have an aversion to cold calling. You present some very good solutions to improving the chances of success - eventually - but that requires a high level of discipline and diligence.

(Colleen NOTE: You are right David, sales success is all about mastering the art of focused discipline!)

"My concern is that in order to maintain a success ratio, the number of calls per day will increase exponentially as the follow-up calls and the follow-up to the follow-ups pile up. There are only so many hours in the day and most of my day is taken up servicing my current accounts to make sure that they are happy and feel loved."

Thanks for your comment David. This is a valid concern and I want to emphasis a couple things this week as a reminder to everyone.

The cold calling ratios we discuss in earlier lessons (3 qualified leads to 1 sale and 25 attempts to find 1 qualified lead) are valid only for brand new business development. They do not take into consideration calls-ins as a result of marketing programs, referrals or repeat business. To learn more about these metrics please visit 1 of articlescles I have written on goal setting at Engage Selling

You must understand these ratios and use them only to the extent that you need to drive new business when you do not have the luxury of a current customer base, marketing programs, and repeat orders.

The ultimate goal for sales professionals should be no more cold calls, and 100% of revenue coming from existing customers, referrals and leads from your networking and marketing programs.

We have discussed some ideas on how to do this in previous lessons. If you need to, go back now a review all the lessons on prospecting and networking. Roughly courses 12-20.

I also understand that not all sales people are quite at this goal yet. So, most of us are still building at least part of our business from proactive outbound calling. With that in mind the 1:3:25 ratios are valid for that new business development.

To help you reduce the cold calling you must do in your business here is a quick review of some key concepts. There are 3 things that combine to help you sell more in less time:

1) Every year secure more and more repeat business. I urge you to set a goal for yourself at the start of each year. How much repeat business are you going to bring in this year?

HINT: it should be at least 10% more than you received last year. More repeat business means less "cold business" you have to find.

2) Every year secure more referrals. This means leads are warmer and easier to convert to customers. Leads are more trusting and open to buying your solutions. Referrals decrease the number of outbound calls you must make. Again, set a target for yourself every year. Ask yourself:

How much business will I receive as the result of referrals?

Who are my best referral sources and what can I do to reward them for thinking of me?

3) With experience you will be able to combine excellent cold call techniques with a great market reputation and excellent client testimonials. This will dramatically decrease the calling ratios to as low as 2 qualified leads to make 1 sale and 5 calls to get one appointment! Sorry, nobody gets the ratios down to 1:1:1.

If you are still making cold calls, (as many sales reps continue to do) you can see that you will have to make far fewer for a better result.

My strategy at Engage is to help clients increase their referral based and repeat customer base so proactive outreach is reduced. Most sales people hate making cold call. Although actually like it! So, the more often the phone is ringing, the happier everyone is!

This week review your referral programs and repeat business and make sure that you have an active approach to asking for referrals and more business. In the long term this will help you to sell more in less time!

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Colleen

I just found out through Jeffrey Gitomer that some friends of mine will be on America's Got talent this week. I am sure that there have been some amazing acts on this show so far... But this one will blow you away! The Passing Zone is amazing.

I've seen them perform twice and I will see them a third time in December in Vancouver. I definitely plan to watch and vote for them this week. In fact it will be the first time (and maybe only time) I have ever voted on any of these TV shows!

Watch for Jon and Owen tomorrow night,
Wednesday, August 2nd, on the hit TV show
America's Got Talent on NBC at 8pm EST (7PM CST).