Stop Slamming The Square Peg Into The Round Hole When Selling
One of the most dangerous people on the planet is the salesperson who doesn't listen well enough to the client’s needs. They miss the key cues, misunderstand the problem, can’t override their fixation on what they want and do most of the talking during the sales call. They wonder why getting an agreement to buy is so hard.
One of my sales coaching students was relating how he took the client meeting into negative territory from the very kick off of the sales conversation and then proceeded to dig the hole deeper and deeper for himself. Small talk at the start is needed to set the foundation for building the trust, as buyer and seller get to know each other. In this case, the small talk conversation went into a death spiral. This is when the redirect button is pushed to make it more meaningful for the buyer.
In this case, he just lent harder on the shovel and dug faster. If we find things are not going well, then stop talking and start asking questions. This allows the buyer to feel in more control to direct things the way they want them and for you to regroup and prepare to take back the reins of the conversation. Usually we have the selling plan, but the buyer doesn’t have the buying plan. They are wandering around with no direction in mind, because they expect to hear what they need from us. We need to keep that conversation on track.
When we hear what the client is trying to achieve, the solutions we suggest have to be in line with delivering that. You would think that is the most logical thing in the world, but salespeople do the most surprising things. They try to redirect the client’s needs, to match their own needs. If there is a higher commission being paid on one product, over the others, then they want to stress that product, regardless of whether that is the best one for the client or otherwise.
They may be under pressure from their boss to push a solution that benefits the company the most. This is where you start getting into hole digging territory. The client may be following our advice because we did such a very good job of establishing rapport and building trust at the outset. When we FOIST the wrong solution on the client, we are haemorrhaging that trust immediately. The ROI we should be focused on is the client’s ROI not ours.
Our intrepid hero was sadly successful in convincing the client to buy the thing which would have zero return. When we had our coaching session together, I was drilling down into what would the client get in return for their hard earned money, based on the conversation that had covered what the client was trying to achieve. It was obviously zero value for the client but good for the seller, who was having trouble moving this product. Great, but this destroys your reputation in the market. You do get the sale and usually the size of the sale is a peanut, as it is the first sale. You blow all your credibility at the start and then the client tells everyone in town you are radioactive and to be careful of dealing with you. The lifetime value of the client means that the loss is enormous, when measured that way. That peanut will also be expensive, given the way it will shred your reputation.
We worked on a more custom solution for the client and took the solution in a completely different direction. This customisation process is always the best idea. We tend to have ready to go, off the shelf solutions, which are cost and time effective, but these won’t always match the needs of the client. The more customised the solution, the better in terms of client satisfaction, ROI and perceived value. Make the solution fit the client’s needs, rather than make the client fit in with the seller’s needs. No more square peg solutions please.
Really Understand Your Expectations Of Your Sales Team
We hire people and they don’t perform as we expected. The time passes and the numbers are not rolling in. We thought they would be more proactive and more skilled at getting new business. We fire them and start over again. Except that in Japan, you can fire them, but replacing them is a different and difficult matter these days. Recruiting salespeople is horrendous, so the retain component is the mirror piece we have to master as well. Turning the tap on in the sink, with the plug removed, isn’t getting us anywhere and this revolving salesperson door is just that issue. We are wasting a lot of resources.
We are often the problem though. I have a start-up founder client who is a nightmare. I have interviewed all of his direct reports and finally the big man himself. Actually, I don’t want to work with his company. They can keep the money. He is the issue as to why they are having such significant staff turnover. He has a “plug and play” mentality with people. When you find a problem, you just hire someone in to fix it and then go back to running around like a headless chicken as before. In this case, the leader is the problem.
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His expectations are unrealistic with the current state of the market. He thinks we are still back in the old days, when there wasn’t the same amount of job mobility and where people tended to stick around, because it was hard to get another job. He had key people jump and rather than try and fix the problem, starting with himself, he just wants to throw another body at it.
There are three areas where we need to audit ourselves and our expectations. Are we sure of what we are looking for in our salespeople when we hire them? If we hire a farmer and they don’t hunt, we fire them. Whose fault was that? Ours not theirs. We need to know at the very start are we bringing in another farmer here or a hunter? In Japan, farmers are much more numerous and so the chances of getting a farmer on board are statistically higher.
How can we tell which is which, in the interview process? Ask the candidate about their current client base. Where did those buyers come from? If they say through the marketing team’s efforts generating leads, the pool of “orphan clients”, their boss or from departed colleagues, then that tells you they are farmers. If they talk about how they recruited new clients, by beating the bushes and finding them then, you have a hunter there. This is not to say one is better than the other, but that in Japan you are more likely to wind up with a farmer than a hunter. Once you know that, you adjust your expectations and know you need to get busy feeding them.
Another case is how fast we expect people to get up to speed. When the months roll buy and the numbers don’t role in, we get frustrated. We need revenues and we need them now. The costs in salary, insurances and expenses flow out like a flood and the revenues from new salespeople comes in like a trickle. Where do we get our expectations from? Are they rooted in numbers, experience or hope. Often it is the hope component, followed by our personal experience and rarely are any comparative numbers involved. It is always dangerous to judge others through the lens of ourselves. “I did it, so they can do it too”, makes sense at one level, except when you uncover that very few other salespeople are like you. A better analytical tool is performance.
Take every salesperson who has worked for your organisation over the last five to ten years and trace them all back to Day One when they started. Track their revenue production monthly. In this way you can compare like for like. There will be some averages you can apply to give you a measuring stick, against which to gauge their output. If you have a sufficient number of people to look at, you can take out the worst and the best performer and form an average from those left. If you don’t have enough people, then a straight average is enough. This gives you quarter by quarter, what, on average, you should expect from your people after they join. This has nothing to do with what you did and so is a more objective means of defining performance and tempering your expectations.
The third thing to look at is your sales incentive scheme. American style 100% commission systems are not much in evidence in Japan, except in very dubious occupations, closely associated with skulduggery. Usually salespeople are on fixed salaries with bonuses. This is not a great system and so try to change it. A better case is where the base salary will be lower and a percentage of sales as commission is paid.
If your scheme is mainly to benefit your pocket, then don’t be surprised if people don’t get excited about it. I have a friend who is mean, when it comes to paying salespeople and has tremendous turnover, wondering why. I keep telling him why, but he is too greedy about getting the money and not spreading it around with his team, so he refuses to change. I just sit back and observe the regular carnage.
Foreign company leaders often complain to me that they brought in this really spiffy incentive scheme, but none of the salespeople seem the least bit motivated by it. I ask about whether there is a component that recognises bringing in new business? If you want hunters, but you pay everyone a straight commission, regardless of how they got there, then you will usually encourage farming. I also ask about the base pay? Usually these are very high, so in risk averse Japan, everyone is happy to keep doing what they have always done, rather than try something new. Those high base pays need to be reduced, so that there is more at risk for the salesperson, if they don’t hit their numbers.
The “number” or target is also important. If we make it too high, then people just roll over and give up. Our expectations can outstrip their own self-assessment of their individual capability. They start to suffer from imposter syndrome, where they don’t believe they can operate at that level, so they underperform to get themselves back to an equilibrium they are more confortable with. Getting the number right is an art more than a science, but getting it wrong becomes expensive.
Our expectations are often the source of our woes. We need to take a cold hard look at why we have our expectations, are they realistic and do we need to alter them?
Action Steps
Presenting Manufactured Products
Industrial products are rarely sexy. They tend to be very technical, specification heavy and chunky. They are normally being presented in a catalogue of products. The pricing, quality and the after sales service tends to be the differentiator with the rival suppliers. The salespeople presenting these often boring, utilitarian products, are also usually do so in a boring, functional manner. Not much pizzazz going on.
This flies in the face of what we know though about buyers buying us, buying our confidence and being injected with our belief in the product. We don’t have to present these types of products in a dull way. The features of the product are usually a mass of measurements. This can be dry as a subject for getting buyers excited. However what about the benefits of the product? This is where we should be able to shine in our presentations. Intellectually, we all know we don’t buy the product. We buy what the product will do for us. Describing that part of the occasion is where we can stand apart from our competitors. The problem is we forget about this bit and we just drone on and on about the spec.
Talking about the benefits of the product purchase are absolutely fundamental in sales. However, rather than just talking about the benefits of the product, we need to be outlining how the benefit can be applied in their company. Having a benefit and doing something with it are not the same thing. We need to be drawing out word pictures of how our product can help them in their business. Usually it is through better efficiencies around life of the product or better quality, leading to fewer maintenance issues. It might be the ease of use of our product when compared to others or the ease of instillation. Whatever it is, this is where we need to capture the attention of the buyer. By taking the discussion beyond the spec, to the integration into the customer’s systems, their staff’s daily interactions with the product, the their customers happiness with the finished item, then we can bring a dry subject alive.
Numbers lend themselves to comparisons very easily, so we can contrast our product with the alternatives. We can break the cost down, amortised over a long period of time. The lifetime of a lot of industrial products can be quite long, so long range number crunching works well. It has to be related back however, to today though. We need to provide context about how this long term saving will translate into financial benefits today. There may be some speed of delivery elements creating savings on inventory or storage costs. Improved quality deliverables may create benefits for the customer, which allow them to pass on savings and gain market share. Tax savings and investment costs amortization allowances may in fact save money. The key is to find things which can be applied to today’s bottom line. If there are less maintenance issues, then we can calculate the labour costs and down time savings that it brings. If it is easier to install, then we can talk about the diminished disruption to overall operations, the lesser need for technical specialists or the speed of installment leading to cost savings.
Finding creative ways to express these differences is one part of the equation and the other part is the way we present the information. Charts and graphs are basic but good visual clues for our buyer to see the difference for themselves. These days we can have video delivered via our iPads, which can tell the story of how great this will be for the buyer. Seeing is believing and it doesn’t have to be all spreadsheets, still photos and matrices. This is particularly so around marshaling evidence to prove what we are saying. Seeing the product installed and operating gives a better sense of reality to the buyer. Interviews with happy customers and them talking about the advantages is very compelling.
The humble blender became a viral social media sensation in the hands of some creativity. Blendtec, like many manufacturers, producers blenders. To demonstrate the toughness of their blender they hit upon the genius idea of shooting a video called “Will It Blend”. Twelve years ago they started blending mobile phones, iPads, glow sticks, hockey pucks and other unlikely items. The one on glow sticks got 12 million views on YouTube and the iPad video got 18 million views. Tom Dickson, the President, is dressed up in a lab coat, has the industrial glasses on and away he goes. Today they are still getting hundreds of thousand of views of their videos. Everyone else is just making blenders.
My point is industrial products don’t have to be boring in the hands of a skilled salesperson. Yes going through the spec is critical, but that is not enough. By the way, is that all that your salespeople are capable of doing? Are they fully boned up on describing the benefits to the buyer. Can they then take those benefits and integrate them into the client’s business and show how when applied they bring tremendous benefit to the client. Do they have visual evidence like Blentec has been using to create resonance with the buyer? If they don’t and your competitors salespeople are doing all of those things, then buckle up for a rocky ride.
How To Use Sales Progression Bridges With Clients
We have a defined sales cycle in our interactions with our clients. We build the trust, ask the key questions to understand need, present the solution, deal with pushback and ask for the business. Of course, there is the pre-meeting preparation and the post meeting follow up, but the actual sales call runs through this cycle. Between these key phases there are bridges we need to put in place to make the sales talk flow run smoothly. What do you do now? Do you have defined phases or is it looking like spaghetti, rather than a road map?
One of the key bridges is the very start Of the conversation. In Japan this usually starts in the lobby or their office, as you wait for your buyer or when they enter the meeting room their staff have shown you to. Many Western countries have gone all modern and dispensed with business cards or meishi but what a gold mine they are in Japan. I usually receive the meishi English side up, facing me, because that is the polite format in Japan. I read the English side and then flip it over because the Japanese side will have better information. If the kanji for the name is a bit on the rare side, I will mention that and ask if their family comes from a particular region where that name is more common. This is handy because it shows them I can read Japanese, I know about Japan well enough to know their name is rare and it gets them talking. Or I might just ask them about the position they hold inside the company.
Japan is pretty good at small talk before we get into the main business. That is not how we do it in the West. I remember meeting a high powered, foreign President of a major multi national here recently, who had just arrived from the US for his Japan posting. I started with some small talk, got about five seconds into it when he announced, “Let’s get down to business”. I was fine with that but I was also thinking he was going to have a tough time in Japan, because he doesn’t understand the niceties of Japanese social interaction.
Having hopefully built up a convivial atmosphere with the buyer, we get into the sales conversation proper. Japanese salespeople won’t ask the buyer questions because it is considered rude to ask the buyer, aka GOD, questions. This means they go forth blindly delivering their pitch. We have 155 training modules in our line up, so how would I know which ones to focus on, if I didn’t ask some questions first? Pitching is a sure formula for rejection in my experience in Japan, compared to finding out what the buyer needs. So we need to get permission from the buyer to ask questions, as the next bridge in order to move the conversation forward.’
We do this by saying, “We did XYZ for ABC company. Maybe we could do the same for you. I am not sure, but in order for me to know if that is possible or not would you mind if I asked a few questions?”. Or, we could say, “I have never been to the American Congressional Library, but I imagine it with books running from floor to the ceiling five stories high. I have the same thing in my brain, regarding not books but solutions for client problems. We have such a huge line up. In order for me to select only the most relevant, pin point solutions for your issues, would you mind if I asked a few questions, so I can narrow down what I should talk about?”.
Having been able to ask our questions, we now make the decision for the client as to what they should buy. We only introduce those solutions and no more or we have the danger of overwhelming the client with so much detail, they can’t buy anything.
Before we get into the solution, we need to use a bridge to inform them that we can help them. We might say, “Thank you and now I understand clearly what you are looking for. The specification, quality and speed of delivery required are all with in our capability. Allow me to take you through the details”. Or, “Having listened to what you need, I have refined our range, down to the best solution to fit your needs. Please let me take you through it”. At the end of the solution presentation process of feature-benefit-application of the benefit- evidence, we go into a trial close, as a bridge to the next stage of the sales cycle. We say, ”So how does that sound so far?”. We are trying to flesh out any further questions, clarifications or objections.
When we face an objection such as “your price is too high”, we need a bridge to be put in place before we attempt to answer it. We should always smile sweetly and say, “Thank you. May I ask why you say that?”. And then shut up, add nothing more, make no interventions, just sit there in silence until they answer us, even if we have to wait until hell freezes over.
At the end of our explanation dealing with their concerns, hesitations and objections, we just say, “So how does that sound, have I answered all of your concerns?”. We want to know if there are any hidden objections or sticking points preventing the deal from going ahead. If there are none, then we can just say, “Shall we go ahead?”. This is not pushy and is especially useful in Japan, where sales are more low powered, rather than like the high powered American versions.
As we move through the different phases of the sale call, we need to link the phases together and this is why we need to have our bridges ready to go.
Remember, if you would like any questions you have, answered live by me, then just put in the email header “I am based in…and am interested in joining your live Sales Q&A” and send that email to me at greg.story@dalecarnegie.com. I am planning to do a Zoom meeting with everyone and we will record it for those who can’t make it. Tell me your location because I may do a couple of versions, to best suit your time zone.
The Mental Game Of Sales
There are two players in this mental game of sales. The buyer and the seller and they are playing with entirely different strategies. For the buyer, the idea of a salesperson symbolises risk. Can they trust this person? Their experience and a variety of media images, have coalesced to ensure buyers are always sceptical about people trying to sell them stuff. As we say, “We all love to buy, but none of us want to be sold”.
That is why all that American style hard sell, tricky closes, tie downs etc., fall flat on their face here in Japan. I enjoy watching Grant Cardone’s sales videos but that aggressive style of selling will never work here in Japan. Buyers everywhere are cautious when it comes to dealing with salespeople, but ever more so in this country.
Risk aversion is super powerful in Japan. This is not the country of declaring bankruptcy then making a stunning comeback with your next company. This is fail once then you disappear forever. The credibility is gone and with so are you. There are no second chances in Japan. This applies inside companies too. The sizes of the salary packages for Japanese executives would seem a joke in America. This means that all the way down the line the rewards are not that huge. The salaries are good but not spectacular. The upside of taking risks is small and the downside huge so the clear lesson in Japan is “don’t take risks”.
Again, by definition dealing with a new supplier is risky. The unknown in Japan is fearsome. The tried and trusted are always preferred over the unfamiliar and untested. This is us though – the untested, the new seller. We are always going to be unknown to the buyers at the start. So as salespeople we begin below the waterline and have to work our way up. We have to demonstrate to the buyer that we can be trusted. We can do this by employing referrals from satisfied customers, starting small with some demonstrations, small tests, trial periods, free samples, limited orders etc. We need to establish a track record that reduces the fears of the buyer about making mistake.
The mental game on the seller’s part is about confidence. We are all mainly failing in sales. We don’t get every order. We don’t get every appointment. We get rejected more often than when we get an agreement on a deal. Now Japan is a country of face. Losing face is a big deal here socially, so everyone is hell bent to make sure they don’t get themselves into situations where they will lose face.
Asking for the order may mean you lose face if they say no. Ergo, don’t ask for the order. Just leave the end of the sales call vague and don’t try and close the deal. Walking up to strangers at a networking event and introducing yourself may result in your being rejected and losing face, so better to only talk to the people you already know. The fact you don’t meet many new people is fine because you didn’t lose face.
Not asking the buyer any questions and just launching straight into your pitch is fine, because you won’t lose face. The fact that you are flying blind and have no idea if anything in your pitch is relevant or interesting to the buyer is better than being rejected and losing face. The buyer is God in Japan, so better not to annoy God with any questions. The upshot of all of this in Japan is that salespeople are very strong with existing buyers and very weak regarding getting new clients. We hear this all the time from company Presidents. They cannot get their sales teams to focus on expanding the size of the business by finding new buyers. They don’t want to do cold calling because of the difficulties associated with at. They don’t like networking, because of the difficulties associated with that too. They don’t ask their existing buyers for referrals because they don’t want to lose face in case the customer says no. The Japanese world in sales is small.
So when we put these two mental games together, where the supreme sceptic meets the timid, not much happens. We can’t do too much about the sceptic but we can do a lot with the timid. We can give them the means to break out and become much more professional in their sales life. They are woefully undertrained and so are wandering around clueless, just aping what their seniors have been doing. Here is the bad news. The seniors are also clueless, so it is sad cycle of despair in sales in Japan.
Action Steps