Making
Sales in a Tough Economy
Interview
with Don Weintraub of Rainmaker Associates
Hawthorne:
We all know that the sales cycle is longer and that closing is harder.
Do you have any specific tips for closing in a tight economy?
Weintraub:
I think in tough times it's more about opening than it is about
closing. You really can't afford to lose when there are fewer opportunities
and more competition. The opening is about establishing relationship
and trust. Closing almost happens naturally if you have invested
in the opening. You need to understand the buyer's needs, the risks
the buyer is feeling, and how whatever they are purchasing will
be of value to them personally as well as to the company as a whole.
If you don't establish trust, credibility and value then all the
closing techniques in the world will not work.
What
this means is that you have to understand the prospect's buying
cycle and decision process and have built trust with the decision
maker or makers. You need to have a good handle on your competition
so that you are not only selling offensively but also defensively.
You need to defeat your competition.
Hawthorne:
How would you describe buyers in this economy?
Weintraub:
In a tight economy people's tolerance for risk goes way down. So
you need to look for ways to provide risk minimization and that
varies from situation to situation.
Examples
of risk minimizing approaches include:
- Provide
some sort of trial offer and/or money back guarantee
- Sell
a smaller quantity of whatever you are selling to make risk
smaller
-
Run a pilot so they get a first hand feeling for your products/services
-
Provide references that mirror the prospect company
-
Offer to do whatever you can to help them check out your credentials
Hawthorne:
How do you qualify leads quickly?
Weintraub:
All leads are not created equal and you need to have some decision
criteria-a rating system-to evaluate these leads. Almost everyone
can do this. Key decision criteria might include: readiness to buy
from you; size of prospect company; where did the referral come
from, is the lead in our target markets? Once you have the criteria,
stick to it. But maintain your ability to make an exception when
it is needed.
The
other critical question to ask about leads is "how do you keep
score?" Is the scorecard based on activity or results? I would
rather get two good leads a month than 200 leads a month and then
have to find the two that are highly qualified.
Hawthorne:
What kind of person should do the lead qualification or screening?
Weintraub:
The person doing the screening must be someone your company trusts
implicitly. He or she must have a good ear and know how to probe
on the phone to do an initial assessment. Screening and qualifying
leads requires a seasoned person with good judgment who understands
both your company and what you are trying to accomplish in the marketplace.
Hawthorne:
Is it
better to follow up by phone or e-mail or a combination?
Weintraub:
Do follow-up as much in person or by phone as possible because it
is key to developing relationships and trust. When in doubt, always
talk to the prospect.
Hawthorne:
How many follow-up calls is enough?
Weintraub:
Enough for whom? You always need to walk that fine line between
being responsive and being annoying. What I would advise is "follow
your instinct". You might say, "I am trying not to be
a pest. You had expressed an interest in xxxxx. I am trying to be
responsive. I have now contacted you x times and have not heard
back. So at this point I will wait to hear from you. If you are
interested please call me and we can talk further. If it is a lead
but the person won't take your calls then it is probably not a lead.
It's probably an inquiry."
Hawthorne:
How long should there be between sales communications?
Weintraub:
It depends on where you are in the process. Your job is to be responsive.
I try to allow the buyer to drive the process. I say, "when
do you need this information by". If they want materials, I
ask their permission to do the follow-up to make sure they receive
what they needed. I look for ways to keep in communication that
are responsive to the buyer's timeline.
Hawthorne:
What
advice would you give to a salesperson in the training/learning
industry at this time-November 2002?
Weintraub:
Stop selling--start helping. And help your client measure ROL--Return
on Learning. This is a critical notion because it is hard to mitigate
risk if you cannot demonstrate return.
Customers
have reason to be fearful at this time. Their concerns are legitimate.
Be sensitive to those because those concerns drive buying behavior.
In the ideal world, what you are saying is let me help you confront
those fears. Let me work with you to mitigate those risks. I've
seen these conditions before. I can help you to succeed even in
these trying times. This is about helping, not about selling. To
summarize:
- Demonstrate value (as defined by the buyer)
- Know what is really keeping the buyer up at night and help
them to deal with these issues
- Do NOT push a product-your job is to help solve business/learning
problems
- Listen, then listen again. Make sure you truly understand the
need before recommending a solution
Donald
Weintraub is founder and CEO of Rainmaker Associates, which is a
sales effectiveness consulting, training and executive search firm
specializing in the training industry. 978-465-1145 or e-mail rain1@tiac.net,
www.rainmakerassoc.com.
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