The Sales Hunter’s Sales Motivation Blog

Selling is all about providing great customer service.  Below is an article written by a sales leader I first met nearly 15 years ago at an industry conference.  In his book entitled How You Do . . What You Do, Bob Livingston talks about how important service is.  Give it a quick read and I encourage you to pick up the book.

Service and the Economy

by Bob Livingston, author of How you do…What you do

We are a service economy.  Close to 80% of our GDP is service based.  In a marketplace wrought with problems and concerns over the economic downturn, one must wonder how we will pull ourselves out of this fiscal malaise, when our primary source of business results from how we service what others manufacture.  

Never will service be a more considered factor in securing and maintaining business relationships.  In these troubling times relationships will be tested, and I predict only those who have served customers and clients well, will survive well. With ferocious competition for limited client attention and business, how we serve will become a means to compare and judge.  Competitive differ­entiation, which is lasting and enduring, will prevail in these turbulent times.  We are seeing it already.  Retailers and suppliers who have treated their customers and clients badly are feeling the pressure now. Business is falling off, and trying to change in the midst of an economic crisis may be a daunting challenge. People are being let go, locations closing and these two factors, connection and convenience, are at the center of any service strategy. 

Those who have been paying attention to how they serve their customers and clients all along will get through these difficult times hurt, but perhaps not crippled.  Let’s explore this notion: 

There are many great companies who come to mind as examples of how service has defined them.  Four Seasons, Marriott, Charles Schwab, General Electric, Container Store, Wachovia, Southwest Airlines and Apple are just a few.  These companies have used service as a bridge to loyalty and competitive differentiation. They place their customers first, train their associates on how to do that and make certain that their service culture is monitored for consistency in performance and reward, and recognize those who serve well.  Let’s focus on three companies who are benchmarks in Service Excellence in their competitive set and are recognized as such by those they serve: 

The Ritz-Carlton consistently ranks at or near the top in guest satisfaction among luxury hotels.  eBay is one of the most trusted companies in the

United States for customer privacy.

 Saturns are consistently among the top-ranked value-priced cars for the car industry.   Each of these companies was among the first in their respective in­dustries to identify service as a differentiator and set their corporate direction accordingly, and developed a Ser­vice Excellence culture. As service pioneers in their fields, each of these companies were able to define the benchmarks against which service for that competitive set would be judged, further enhancing their competitive edge. This determination positions them well for an economic downturn. There is another important point to recognize here as well; and certainly considering the dismal state of service in

America, there is an opportunity to stand out even in these troubled times. Those who are the first to embrace a change by how they conduct their business are the ones who will achieve a competitive advantage in their fields—and it’s always preferable to be the first to the game, make the rules, and bring your own ball.  Here is a great model to follow.

 • FedEx Kinko’s • They are a time tested example of the first-adopter theory in their competitive set.  UPS and the Post Office were the significant factions in the package delivery business in 1971. Fred Smith formed FedEx in that year out of his frustration with the service he received when mailing packages. He determined that the time to deliver, lack of reliability, and methods used for shipping were unacceptable. He also realized that the business environment was changing so fast and assured delivery of packages was increasingly becoming an absolute requirement for businesses of all sizes.  He was a visionary as much as he was a problem solver. 

Thus FedEx became the first company in the package delivery industry to create a business plan based on understanding current customers’ needs, envisioning future needs, and developing an approach to satisfying needs and by reliably delivering packages to customers the very next day. (Reliability and speed) Furthermore, this was a breakthrough approach to both hard and soft needs of potential customers. By how he did what he did, Smith changed an industry and defined the service benchmarks, and their competitors had no choice but to follow. The FedEx example illustrates an important approach to serv­ing customers on understand­ing client needs.  I believe that the approach they developed considered that customers and clients had two distinct sets of needs; hard needs, satisfied by what he did, and soft needs satisfied by how he did what he planned to do. FedEx understood that, first; people need their mail, packages, and products to reach their destinations swiftly. In the FedEx op­erating model design of overnight delivery, satisfying that need was, and is, a hallmark of their business. It is a need that is satisfied by what they do. That is the satisfying of a hard need. 

However, FedEx went further and also understood that many people had a sec­ond need that was perhaps even more significant. This was a need to feel confident, certain, and assured that packages would be de­livered within the agreed-upon time frame. This need for worry-free delivery, which is really an emotional need, is satisfied by how they do what they do (a soft need.)   We believe that just about every relationship with those you serve is based on these two sets of needs: hard needs, which are satisfied by what you do, (FedEx will deliver your package by 10:00 tomorrow morning) and soft needs, those intangible, emo­tion-based needs, which are satisfied by how you do what you do. (FedEx makes you feel certain that your package will arrive the next day, enabling you to be worry free once it’s in their hands)  

In many instances today, due to the economy,  the choices customers and clients make to balance things out are perhaps less concerned on what a product or service delivers and more drawn by how the experience makes them feel about how they are treated. Sadly the cost reductions associated with economic downturns compound the service dilemma.  Embracing a service strategy in these times supports customer significance and gives them a reason to stand by you. These are great times to buck the tide and differentiate yourself by how you do what you do…    copyright Bob Livingston2008   

Bob Livingston formerly head of sales at Unilever’s The Lipton Company, is the founder and CEO of REL Communications, a consulting firm that moderates the Client Service Advisory boards. He also leads service-based cultural transformations within the companies with which he consults. His book, How you do…What you do, is available from McGraw Hill.

www.mhprofessional.com/product.php?isbn=0071592784 

There is nothing wrong with being proud of what you’re selling, especially since it can help convey confidence.  However, if the pride turns into arrogance, you’ll lose sales because people will find you difficult to work with.  Find the appropriate balance.

I can’t underestimate the power of this one.  When people are proud, it comes across as confidence and the customer, in turn, will become more confident.  The trick is to avoid crossing the fine line of becoming arrogant.  Arrogant people tend to be bad listeners and there’s nothing that will cost a salesperson more money than not listening to the customer.

A reader recently wrote in with the following question:   ”What are your thoughts on “ride-a-longs”? Example:  I am sell a number of different services offered by my company and when I get an appointment with a prospect, I have to take one of my business managers on the first call with the potential client. Doesn’t this hurt my credibility as far as the potential client feeling like I am capable of taking care of their needs?”

The Sales Hunter’s response:  Yes, on the surface, taking someone along with you on the initial call does hurt your credibility.  Unfortunately, it also makes it appear that you and your company are desperate to close the sale.  By taking one of your managers along with you, the focus will shift to what the manager’s focus of business is. You, on the other hand, are responsible for the entire portfolio.  If you go out by yourself on the initial call, you’ll be in a better position to ask broad open questions to really determine what the needs of the customer are.  I believe that by taking a manager along with you on the first call, you’re leaving money on the table because of your company’s haste in trying to close a sale. 

Negotiating is a waste of time unless the two parties have agreed on what they’re negotiating over.  Sell first, negotiate second.

I can’t begin to tell you the number of times I’ve watched salespeople give away the farm by starting to negotiate long before the customer has determined what it is they are looking for.  Just because a customer can’t make up their mind is not a reason to start negotiating.  This is the time to ask more questions so you can expose more of their pain and intended gain.  Next time you have the urge to start negotiating, do one very simple thing:  ask 3 more questions.  Based on what you’ve already heard, asking 3 more questions will give you a good chance of being able to close the deal.  In my book you sell first, negotiate second.

Selling is about uncovering needs and determining benefits.  Don’t make the price you offer be the benefit your customers will remember the most. 

I caught myself watching an infomercial on television yesterday and I was struck by the number of solid benefits that were being shared.  The spokesperson was delivering a very compelling perspective filled with questions and benefits.  However, in my eyes, the spokesperson blew it at the end by focusing extensively on the “discounted price.”  He kept hammering it home, so much that all of the other benefits became secondary at best to the price point.  Unfortunately, the spokesperson was setting himself up for buyer’s remorse because people were buying the item without realizing the importance the item could play in their life. 

Keep the focus on the real benefits and make your price only part of the benefits / value equation.  Never make price the primary benefit.

New sales ideas pop up when we least expect them.  We owe it to ourselves to allow them to. 

This week I’ve been in the Bahamas conducting sales training programs.  Being in the Bahamas does something to the brain: it gets it thinking in different ways.  My trip is only 3 days, yet during this time, I’ve come up with at least a half dozen new sales ideas I’m anxious to put into play.  The reason is simple: despite the work I’m doing while I’m here, I’m also allowing myself time to merely think and reflect.  Bingo, the ideas are flowing!

What are you doing to allow new ideas to develop?  What are you doing to seek out new ideas?  What are you doing to continually change and thus improve your selling process?  For me, it’s times like this where I find myself in a different environment and then taking the time to think, read, and process.

Staying motivated in sales requires a continuous flow of new ideas, so make sure you allow yourself the time to seek them out.

Confidence sells! Sales motivation requires you to have a level of confidence and over the past week I’ve had more conversations with key sales leaders where this has come up than I can ever remember.  The lack of confidence in salespeople destroys more sales than we can ever begin to imagine.  The lack of confidence comes through in the quality of a response, the speed with which a message is returned and level of conviction that is conveyed when talking about price.

If you’re a sales manager you have to make it a priority to reinforce the confidence you have in your salespeople if you ever expect them to be confident.  If you’re a salesperson you have to truly believe in the service you’re providing to your customer and the results they will achieve by working with you.  A salesperson’s level of confidence is worth anywhere from 10 - 30% in sales.  On the profit side a confident salesperson I believe will achieve anywhere from a 20 - 50% bump in profit over a non-confident salesperson.

When making a critical phone call make sure you’re standing up.  It’s amazing how much more energy you’ll have when you make a critical phone call standing up.  Your energy will come through in the fullness and energy of your voice.  This applies to both a live call and a voice mail message.  By the way when you’re leaving a voice mail message make sure you state your phone number slowly and clearly twice!

Selling your intellect is not just spouting out everything you know about what you’re selling.  In fact, it’s actually the opposite.  Selling your intellect is all about not telling the customer everything you know about what you’re selling.  Your intellect comes out best in the questions you ask.  It is displayed when you are able to find out information from your customer and then help them understand what their real need is.  I like to tell salespeople that the best way to demonstrate your sales intellect is by not having to share even half of what you know.   Spend your time imparting only on that part of your wisdom the customer wants to hear, not what you want to say. 

I’m fortunate to call Omaha home.  Warren Buffet is a fellow resident.  Known for his investment expertise, he is, according to several reports, the richest person in the US and probably the world.   What makes Warren so amazing is his patience in cultivating opportunities. 

This past Saturday at his annual shareholders meeting, he talked about his upcoming trip to Europe to seek out potential investments.  He made a comment that a key reason for his trip is to get the word out regarding what he looks for in making an investment.  I found that very interesting.  Here’s the richest guy around with a highly publicized business strategy saying he needs to get the word out.  Then it dawned on me that he’s really talking about networking to build relationships that will ultimately create business opportunities.  

If anyone thinks they don’t need to network, stop and reconsider why Warren Buffet is going on his trip to Europe.  Everyone in sales needs to network, no matter how big your current network is, no matter how well-known you believe your company’s reputation might be.  The need to network will never go away.  Ask yourself who you are planning to meet with this week that will help you strengthen your network.  Who can you meet with this week to help them build their network?