Discussion Question
What are the primary reasons that it is important to sell “to the top” – to the higher level managers and decision makers?
Rule #1
CALL TO THE TOP!
Saves wasted time and resources presenting to non-decision makers
Reduces the length of the sales cycle
“There is almost always more competition at the bottom.”
Using the figure on page 13, what does Peoples suggest about a salesperson’s ability to provide value added service in relationship to the level of the organization?
Maslow correlation
How does Peoples compare Maslow’s hierarchy to his “call to the top?” What is he trying to point out regarding the similarity with the high level Maslow needs and customer needs at the top of his pyramid?
Quality + Service = Price
What is the benefit of offering high quality and high level service?
What does this equation suggest for salespeople that offer poor/average quality and/or poor or average service?
“There is no such thing as a commodity. All goods and services are differentiable.”
Ted Levitt, Harvard Business School
The Rule of Common Sense
“It’s unwise to pay too much, but it’s worse to pay too little.” - John Ruskin (P15)
What is being addressed with this rule. What does it mean for value added sellers?
30% of prospects never buy from anyone We should spend time focusing on those
that will buy
Too often salespeople talk to lower level managers who don’t have authority or willingness to buy
Getting to top management early in the process can eliminate wasted preparation and proposal time
Calling on the Executive Reduces business cycle time by
eliminating wasted presentation time with lower levels and discovering prospect interest sooner
Purchase amounts typically increase when executive level makes decision due to increased ‘sign-off’ authority
Benefits of calling to the top
Easier sell Faster sell Less work You have more value Less competition Can charge a higher price
Questions to Answer
How many decision makers are there?
Who are they? Who are the influencers? Who are the gatekeepers? Who is the DI (Dominant
Influencer)?
Economic Decision Maker
The one person who actually controls the “purse strings” and has veto power
Most people guess too ‘low’ when trying to identify this person within a company
Ask “What is the decision process?”
Confirmation Once you suspect or know who the
decision maker is, ask:
Will you be making a recommendation or giving the final go ahead?
Who can veto this project
**This will help confirm the identity!
Don’t be mislead
A lot of salespeople are caught wasting time with lower level managers who either lead them to believe they have decision making power, or suggest that the top management stuff is merely a formality.
USERS
Your product or service has a Direct Relationship to their job performance Reliability Training, Downtime Ease of Use Maintenance
Who will use or manage the use of this product?
Influencers
Opinions can be sought or unsought
Often have unique knowledge about the product or service being offered.
Gatekeeper Decides who plays in the game Can’t say yes Can Say No Often focuses on Specifications or
technical concerns
Examples: Systems programmer for computer related products, staff people, lawyer, controller
Some companies use an approved vendor list
Your inside person
Coaches generally work for the company but could also be:
Industry consultants CPA Ex-employee Within your own company (eg former
rep)
Ideal Situation!
The Economic Decision Maker is the Coach Must identify the Decision Maker for
this to work
DIs
When they speak others listen Rarely surprised Understand company goals Results oriented Integrity Risk takers Organized
Most important question is… Are they going to end up buying
something from someone? Don’t waste time on the over 30% who
won’t!
“People will buy when there is a discrepancy between their perception of where they are and their opinion of where they should be.”
4 states of mind Growth
Need more, better, faster Trouble
Crisis, Fix, Hurting Even
Everything is going well, likely means no sale
Too Good Believes the company is doing better than
expectations
WHO WILL BUY
Those looking for growth or improvement and those sensing they are in trouble are the most likely candidates to buy
Will they buy from me?
Ask yourselves, on a scale of +5 to -5, what attitude would the current decision maker have about me? +5, +4, +3 means yes +2, 1, -1, -2 Interested to
uninterested -3, -4, -5, NO
3 Key Questions
What are the customer buying criteria?
What are your strengths?
What are your competitors strengths?
The key is to find out if your strengths match up to the customer criteria better than the competition. This will be a good indication of your likelihood for success.
Are they looking for service, price, quality?
A request for proposal that you didn’t know was coming, suggests you are too late? Why does he say this?
If you didn’t provide selection criteria used to generate the RFP, your competitor likely did, and they have a leg up in that it is based on criteria they likely are strong in
Consider walking away and going after a better opportunity if the time to put together the RFP is significant
Fast Track Strategy
Get all players in the buying strategy together early and offer a formal presentation to create an immediate response from the prospect. This reduces cycle time and lets you
know early on where you stand.
Precision Marketing
Decide for each player:
Will they buy from someone? Are they going to buy from me?
Walk Away
Decide based on an estimated likelihood of purchase whether to walk away immediately and move on to a better potential customer.
Summary
Focus on the EDM & DI If the news is bad, walk away You cannot be all things to all people Avoid responding to RFPs in a lot of
cases
Peoples said that in over 30 years of sales and management, he never failed to get a conversation with a person at the top if he had a valid reason and could communicate that in a way that gained interest from that person.
Why then, do salespeople sometimes fail to get this meeting with the top?
Peoples says the Economic Decision Maker is often the easiest person to see…. Why does he say this? Do you agree?
3 Questions
To get the meetings with the top you must be ready to answer 3 questions:
Who from your company will be at the meeting?
What is the purpose? How long will it take?
How to set the appointment Go straight to the
secretary/receptionist and ask for an appointment by answering the 3 questions
Write a letter with the answer to the 3 questions
Have your executive’s secretary call their executive’s secretary with answers to the 3 questions
If you have trouble communicating a specific purpose for the call, People suggests a general statement expressing a desire to learn more about the prospects business and to share industry experience and information that could be mutually beneficial
Must get to the top levels to communicate value and overcome the “LOCK” at the lower levels
What does he say about the lock? What is it?
10 Keys to the LockFor each ‘key’ write a sentence or two explaining
what he means
White Hat vs Black Hat Show them how they will win You have something they need Buy a Piece of the Rock Capitalize on Turnover
SUMMARY Reaching the Economic Decision Maker
isn’t as difficult as some might think
We to have a plan for gaining interest from the EDM to get the meeting
We must unlock the binds at the lower level by establishing trust and developing interest from the top
IBMs largest customers said the #1 thing they expect is that their salesperson knows the company, industry and environment in which the customer does business
What is the purpose of the quotes from General Patton? Why does people use the analogy of a US general to a salesperson?
Sources of Information
Public companies – 10K report
Additionally Recruiting literature Product literature Company advertising Industry trade or association
magazine
Remember the goal…
Increase effectiveness in high potential accounts while decreasing wasted time in lower potential accounts
What is the purpose about the case comparing the power and gas companies?
What is he trying to show by saying most salespeople picked the power company initially but picked the gas company after acquiring more knowledge?
5 Techniques Execs Use to Gain Management Information
By-product Technique Most common Analyze business functions and/or
compare actual versus budgeted expenditures
Compare actual versus forecasted sales
Cheap and efficient, but may not be focused on the needs of the business
The Confidant Approach
Personal and informal Relies on word of mouth information
from advisors or those that work closely with the Executive
Key Indicator System
Looks at specific pieces of information that are tracked and judged
This was done at IBM and Peoples points out that when you emphasize ‘everything,’ you emphasize ‘nothing.’
The “Big Study”
A study conducted over 3,6, or 9 months that will provide answers to problems A lot of times the by the time a study
is completed and money wasted, the problems intended to be resolved are often fixed
Critical Success Factors
Those things that must go right for an organization to succeed Eg. Auto industry (Styling, dealer
network, cost control) With regard to knowing a businesses
critical success factors, they are a great topic for discussion when meeting with an executive
USING the CSFs
1) CSF – Destination? 2) Goal – Direction to get there 3) Objective – Speed of travel and
time of arrival 4) Strategy – The vehicle to drive 5) Tactic – Fuel to get there
What does it mean?
Don’t sell your product or its features to the top, remember they are buying quality, service, etc., in order to meet their high level objectives
That’s why you must know them, but how?
Company goals are usually stated in a company’s annual or quarterly report and often directly by the CEO or President in a letter or statement
Selling Yourself
Think of your first meeting at the top as a way to sell yourself more than your product or service.
How? By knowing their business and demonstrating a desire to be of service in a area ‘critical’ to their business
We are trying to present a solution to a problem, remember, not trying to sell a product. Selling a product is more of a lower order technique.
On average sales people talk 80% of the time in sales calls, while success a lot of times correlates with more customer talk. Peoples’ says salespeople should talk 20% of the time.
What do you think?
Peoples says asking questions is a very important skills for salespeople to learn about the customer’s business, his/her behavioral style, and most important needs that they are looking to address
Total Tune in – Know in advance you will only talk 20% of the time, and prepare good questions and be ready to listen
Take notes – Helps retain information in your mind and on paper
Confirm your understanding – Ask clarifying questions
No matter what our occupation, generally we have to be able to persuade others toward a course of action
Aristotle Key #1
Logos – Appeal to people’s logos, or sense of logic. We must be able to provide factual and logical reasons to help persuade people to buy
Aristotle Key #2
Pathos – Logic and facts aren’t enough (eg smokers), we must be able to appeal to someone’s emotions as well.
We must balance between people’s rational needs and their emotional needs
Acceptance, respect, safety & security
Left Brain/Right Brain Left Brain
More likely to buy for logical reasons (product features, functional benefits)
Right Brain More abstract and creative, more
likely to buy for emotional reasons (eg luxury, comfort, status, feelings)
WE ALL USE BOTH
“People don’t buy products or services, they buy how those products or services will make them feel.” (p 147)
Emotional or right brain decisions tend to be fast and final while logical decisions tend to take time, but often lack commitment
Examples “Don’t sell me clothes. Tell me how
great I look.”
“Don’t sell me a house. Tell me about a location and great neighbors.”
“Don’t sell me toys. Tell me about my happy children.”
Marriage example
Which brain has more impact?
When you got married did you ask for an IQ test, a medical exam, financial statement, etc.?
We tend to buy based on feelings and justify our purchases with the facts. Thus, people need persuasion on both.
“Behind every logical need lurks an emotional want.”
What does this mean when selling to someone at the top (remember they buy for profitability, value, service, etc.)?
Aristotle’s 3rd Key
Ethos “People want to do business with
people they like, trust and have confidence in.” (p155)
Teachers to Presidents
Most people can only identify a handful of teachers/speakers out of hundreds who have been outstanding
Company Presidents would generally say the same thing about salespeople, this is why there is such a great opportunity
What makes you great? Characteristics of great teachers
Cooperative, democratic Kind, considerate Patient Wide interests Pleasant Fair, impartial Sense of humor
Teachers (cont. -12k students) Good disposition Interest in student problems Recognition, praise Flexible Proficient in subject
How many of these traits are related to subject knowledge? (1)
Worst Teachers
Never smile Sarcastic “Flies off the handle” Unclear explanations Partial Has Favorites “Picks on” some
What is the message in this survey as it relates to salespeople and their interaction with prospects (those at the top).
They are more interested in seeing that you care initially before they are interesting in seeing what your product can do!
WHY CUSTOMERS STOP DOING BUSINESS (p161)
1% Die 3% Move away 5% Form other friendships 9% Competition 14% Dissatisfied with
products/services 68% Conduct of company
employees
Win/Win vs Win/Lose
96% of customers never complain if they ‘lose’
But, 91% will never buy from you again And each will tell 9 others not to do
business with you p163
I Lose/You win (Price concessions) Gives buyer a false sense that they
can count on discounts, price concessions in the future, which will either hurt your relationships or damage your business success
Characteristics Customers like How to build successful relationships
Dependable Candid Competent Customer focused Likeable Follow through Tell pros and cons Proof sources Show interest in them/their business
First Call Question, listen, learn
Verified critical success factors Confirmed goals and objectives Prioritized wants, needs and problems Identified barriers to success Verified executive’s behavioral style Identified business and personal buying
reasons Established a follow up meeting
Your presentation should be a response to these results and should essentially explain how you can help solve the customer’s ‘problem’ with your product or service
Breakthrough Strategy (Bob Schaffer)
1. Something urgently needed 2. Short term results 3. Measurable, bottom line results 4. People are ready, willing, and
able to do 5. Goal should be achievable with
available resources and authority
Least risk strategy While your competitors discuss
product functions and features, you discuss: Experiences Training Testing Competence Credibility Pattern of proven success
When going into major surgery, would you ask, “who is the cheapest?”
We want to focus on who or what is the best. The ECD would likely be more interested in the least risky scenario for his/her business versus the cheapest.
Sell a Business Philosophy
Don’t sell bells and whistles at the top, leave those for others selling at the bottom
Sell a business philosophy (tech leader, dominant expert, value orientation, customer satisfaction)
Sell First Choice for 2nd Place Don’t try to sell or persuade your ECD
to change vendors if they are satisfied.
Instead, position your choice is a ‘great’ backup by building up your strengths without pressuring them to buy
Many vendor relationships fail and this could leave you as the replacement
PRESENTATIONS Stand up and use visual aids
43% more likely to persuade than if you are sitting across a desk
If you stand up, your client will be willing to pay up to 26% more for the same service
Additional research validates the notion than standing with visuals is more effective!
Why Visuals? Learning is improved up to 200% Retention increases 38% Time to explain complex subjects
is reduced 25-40%
Quality of your presentation likely reflects quality of you, your company, products, service and support
Pyramid of Life
10% Want to
60% Muddle Through
27% Something for Nothing
3% Money, Fame, & Glory
No Dream, No Desire, No Fire
SUPERSTARS
You don’t have to be brilliant
Out of 55,000-plus members of Mensa with a minimum IQ of 135….. Average salary is less than that of a plumber
Peak Performers
According to Peak Performers by Charles Garfield:
Peak performers are made, not born Average people like you and me Not workaholics, but committed to
results
We Control the Dice
The clock – use of your time Your friends Your mouth – how much you use it
and to say what Health Financial Future Attitude