Selling to the “Tip” TopChapter 1

David Peoples

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

Levels of Power

Executives

Users

Staff

Where do we begin?

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

Risks

Potentially make a fool of yourself?

Probably worth it

Chapter 2

HOW TO IDENTIFY THE DECISION MAKER

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

The Coach

Your guide Wants you to “win” Credibility within the company Confidence in you

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

Dominant Influencer

How do you discover this person?

DIs

When they speak others listen Rarely surprised Understand company goals Results oriented Integrity Risk takers Organized

Prepared Sought our for opinion Priorities Good listener

Who Can It Be?

Users An influencer A Gatekeeper

CHAPTER 3

AM I GOING TO WIN OR LOSE?

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.

Focused

Start with the EDM and DI and once you get through them go to the full buying group

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

Chapter 4

How to Meet Mr./Ms. Big

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

Swap Accounts Take a Picture of a Big Event Be a Writer Discover Their Casual Time Join the Club

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

Chapter 5

½ day at the CIA

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?

It’s also just as important to learn about Mr./Ms. Big as it is to learn about their company…

Chapter 6

½ Day at the CIA

Chapter 7

What to Talk About

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

Most people forget 75% of what they hear within 24 hours or less

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

Chapter 8

THE ART OF PERSUASION

No matter what our occupation, generally we have to be able to persuade others toward a course of action

Key Questions

WHY PEOPLE BUY HOW PEOPLE BUY HOW TO WIN HOW TO LOSE

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

Superior Aloof Overbearing Unfriendly

How many related to teaching of the subject itself? (1)

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

Chapter 9

PRESENTING THE ANSWER

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.

FUD Factor

Fear Uncertainty Doubt

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

Chapter 10

Dream, Desire & Fire

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

Persistence 44% of salespeople give up after 1

‘No’ 22% give up after 2 ‘Nos’ 14% give up after 3 ‘Nos’ 12% give up after 4 ‘Nos’

92% of all salespeople have given up by the 4th no, but 60% of customers say no at least 4 times before saying yes