I listen to a lot of sales gurus because I am a permanent student. I have noticed there is a consistent theme which comes up. Because being a guru is quite competitive, they have to draw a line between themselves and the rest. The way they do this is to make the point that “sales has changed”. They then go through introducing their version of the new sales methods for the new era. I was reflecting on this and thinking about sales in Japan. SPIN Selling, Consultative Selling, Challenger Selling etc., reflect waves of change in the West. I haven’t seen any waves of change much in Japan. So what is going on here?
The Japan model reflects some specialties in selling here. The core difference with the West is the decision making system in Japan. There are tons of books in English on “overcoming objections” and the “100 closes you need to succeed” type of thing. Generally they come across as quite aggressive and they try to force the buyer into buying. Tricky closing tactics won’t work here in Japan for the vast majority of sales. Of course, if the person we are talking to is the owner of the business, then “yes” they can make the buying decision. More likely we are talking to a salaried employee of the organisation. They are not the sole decision maker in most cases and in fact are more like an influencer.
Wrangling them to the ground and extracting a “yes” out of them just won’t happen. There are bound to be a number of Division or Section Heads in the company, who need to give their agreement. This is a bottom up system. It is frustrating to meet the President and think you have the golden entry point to a buying decision, only to find out that is not the case. The President will push the proposal down the ranks to the person at the bottom, whose job is to do the due diligence on you and your offer.
That person will consult with all of those leaders whose sections will be impacted by the buying decision and whom we will never meet and may never even know they exist. Western sales tends to be hand to hand, one on one combat between buyer and seller. In Japan it is you against a whole team of invisible ‘ninja” decision makers.
We have similar phenomenon in the West too. Sometimes we realise the person we are talking to has to become our champion inside the buying organization. In this case we can’t wait for the objections to arise from invisible stakeholders. We need to be proactive with our champion and help them with answers for all of the possible hesitations and objections which may come up. This is the case almost every time in Japan.
The other speciality here is that this is the Land Of The Pitch. When I first started selling in Japan, I was trying my best consultative sales methodology on buyers and getting nowhere. They wanted my pitch and just ignored my best efforts to ask them questions about pain points, needs, future desired situations, barriers, payouts, current situations etc. I was quite shocked. What I didn’t realise at that time was that before me had swept in an entire army of salespeople talking features and pricing. I don’t know if the salespeople trained the buyers to expect a pitch or whether it was the other way around, but that is where we are still, even in 2021.
Fundamentally, don’t you think pitching your features at a buyer is just crazy? If you don’t know the buyer’s needs, how on earth do you know which features will be the most relevant, even ignoring the importance of describing benefits, applied benefits and evidence, for the moment. Dale Carnegie introduced the first ever public sales training back in 1939. Back then it was all about asking questions to understand buyer needs. Here we are 82 years later in Japan and most salespeople are still giving the pitch and asking zero questions.
All of these Western guru variations on variations and fine tuning the semantics of selling have just swept by Japan, which is still back in the dark ages of pitching. It doesn't have to be like that. Here is what we need to do to update the sales process in Japan: ask permission to ask questions; ask the questions; decide what is the best solution; present that solution; deal with any hesitations or objections and then ask for the order. If your salespeople are not doing this, then you have to ask the question “why?”. Also when are we going to do something about bringing Japan into this century? What are you doing about it?
New clients are so demanding. They want to hear what we have to offer and quickly find out how trustworthy we are. They don’t want to be wasting their valuable time either. This can trigger some bad choices though for salespeople. Remember that the client playbook is not our playbook. We shouldn’t fall into the trap of tracking along their preferred path. We have our job and they have their job and both are highly specific, so we had better master ours, if we want to really help our clients.
There is a transition zone in sales, which is a make or break moment for salespeople. The new client doesn’t know us and we don’t know them. Online or in person, there will always be some degree of small talk. By the way, Western versions of this “small talk” can be microscopic. I was reminded of this in a meeting with the Western president of an international company here. I had barely gotten out a few words of small talk, when he hit me with the directive – “okay, let’s get straight down to business”. After working here for so many years and adjusting to the Japanese style, I was a bit shocked. I was thinking to myself, “oh yeah, that’s how things are in sales in the West”.
What is going through the mind of the buyer? In most cases it will be “how much is this going to cost me?”. They are fixated on price. In sales, we are thinking about the value trade for the price impost. From the outset we are speaking two different languages. We need to address that gap right at the start and set the tone for our salesperson playbook version of how the meeting should run.
After the initial pleasantries, we should outline the meeting agenda. We will mention why we are meeting, just to confirm we are both clear about how our time is going to be used. It might be, “ I appreciate Suzuki san introducing us. She thought there might be some mutual benefit to meeting, so let’s use our time together to explore what that might be. I thought we could look at what we do and how this may help you. I would like to better understand what types of solution you may need and see if there is a match between what we have and what you need. Are there any other items you would like to discuss today?”. This is a nice start which gives them a basic direction for the meeting and also the chance to specify the direction, so that they don’t feel we are hustling them in any way.
We should be careful with how we explain what we do. It should be well structured, but sound unstructured. Using my company as an example, I would begin, “We are global soft skills training experts, who have been here since 1963 and we specialise in sales training in Japan”. This brief sentence has four clear USPs (unique selling propositions) efficiently loaded into the opening. One, we are delivering our training all around the world, so that means we are successful as a training company and have both scope and scale. Two, unlike our domestic competitors, we are bringing world best practice to Japan. Three, we have been here nearly 60 years in Japan, so that means we have stood the test of time and have a solid track record. Four, it also subtly says we have localised what we do for the Japanese market, so you can be comfortable it works here and everywhere else around the world.
Next I would say, “Recently we delivered some sales training for a company in your industry and had outstanding results. We measured salesperson confidence and it went up on average by 40% and they told us their sales revenues increased by 18% in the first six months after the training”. Here, as salespeople, we must bring strong proof that what we do works. We are noting a company similar to them, so the results are relevant for the client. The confidence increase and the revenue numbers are real numbers, which they can believe are true. By the way, if you are inclined to manufacture these types of results out of thin air, don’t do it. Your credibility will go to zero. Think about it. What are the chances of a long term relationship being built on a lie? Remember and this is key, you are not here for a sale. You are here for the re-order.
Now we deliver the piece de resistance, “I don’t know if we could get the same results for you or not, but in order for me to understand if it is possible, would you mind if I asked you a few questions?”. This is no pressure sales at its best, which is what works well in Japan. We have remained in control. We have been following our defined structure from our salesperson playbook. First, we explain what we do, who we have done it for, what were the results and then we deliver the request to ask questions. None of this is in the client playbook by the way, which is all about “is this too expensive?”.
I absolutely cannot understand how you can talk price, if you don’t know what they need? We just can’t do it. We need to get permission to gently interrogate them about all the defects in their people and their company, all of the shortcomings, all of the dirty laundry they do their best to hide from the market.
This transition from pleasantries to pleasantly grilling the client on their horror show is a critical phase and it is our salesperson job to do this in a masterful way. If after all of this, we discover we actually can’t help them, then don’t ty and force the square peg into the round hole. Gently tell them “this isn’t a match” and go and find someone you can help.
No sale this time, but no damage to your personal brand either. In fact, your honestly has further burnished your reputation in the market. By finding a new client who is a match, you are now spending your valuable time where there is a higher likelihood of a positive outcome. If we want to succeed, we must be in control of the sales conversation and be operating from our playbook.
We are all hungry for Covid to end so that we can get back to normal. It looks like it will be all good by September. Then it looks like October, then November and this goes on and on as some fresh piece of diabolical news filters out. Will a bell ring or an alarm go off announcing “Covid is done”? Unfortunately that isn’t going to happen. It will ebb and wane and then probably resurface intermittently over the next couple of years. So when do we start moving out of the orbit of our existing customer base? Are we just digging deeper into the fox hole, waiting for the all clear announcement or do we get up and head back into the fray?
New clients have been sparse. Companies are holding their money in a vice like grip concerned about the economic damage from Covid. Others are almost impossible to contact. Buyers and decision makers were always protected by an iron wall of nobodies who were preventing us from making contact in the good times. Now the buyers are not even in the building. Do we wait for them re-emerge from their hibernation, slip out of their cocoon? We could be waiting a long time.
We were having discussions with clients when Covid slammed into our businesses and scared the living daylights out of everyone. First in the batting order would be renewing those discussions. Should we just pick up the threads of that last conversation and continue? Take a good look at your own business? Has Covid created new dimensions, new concerns, new problems that weren’t there before? The answer would be “yes” and so that will be the same for the clients we were happily chatting with, before the virus wall came down to end all discussions.
Two good starter questions would be:
Obviously we will tailor these two broad question to our particular business.
The first question is a good one, because like a lot of us, our clients may not have had much bandwidth to start thinking about the future, given we have all been struggling to survive. We are leading them with our question to consider the future and by inference we see ourselves as being a partner with them working together as we go into the future. In manufacturing, getting into the “design in” phase is critical, because once your component is part of the design process, then you are a fixed supplier to the manufacturer and very hard to dislodge. We want to be part of the buyer’s design in process for the future and now is the time to have that discussion.
The second question is where the immediate money is located. We cannot survive on future income, when we are being battered senseless at the moment. Covid will have revealed a lot of problems for companies. What are they? We want to know that because we may be the solution. They may not have any money to invest in that solution right now, but that position will change. As Covid subsides, they will suddenly get religion and be ready to get back out there. We want to make sure we are uppermost in their minds when that happens. The only way we can do that is to be contacting them now while Covid is going the craziest it has ever been and as the vaccination rate starts to climb vertiginously. We may be meeting online but we have to be meeting nonetheless.
For new clients, the difficulties never get old. Only knowing the title and not knowing the person’s name is a big buffer to getting in contact. Companies in Japan are not very interested in business, which is why they make sure we cannot contact buyers. A friend of mine who had worked in Japan for many years went to Hong Kong to work. I was asking what was the major difference. He said, “when you go to a networking event in Japan, no one wants to meet anyone they don’t already know. In Hong Kong everyone wants to meet you to see if there is some way you can do business together. The mentality was door open rather than door slammed shut as it is in Japan”.
Nevertheless, we have to try again. Send a bulky package to the person. Make sure it doesn’t look like a flat sales document. Underlings are likely to just place it on the boss’s desk, rather than have the temerity to open the boss’s mail. This happens to me all the time. A package turns up whose contents actually aren’t for me, but there it is, carefully placed on my desk. Inside that package, include something that will really pique their interest enough that they will contact you. Is this impossible? Maybe. But what else are you going to do? You will have zero chance of getting through their KGB designed phone message system, specifically designed to screen you out. Try the “package technique” and keep experimenting to see what a successful “pique” looks like to a potential buyer.
At the age of sixteen, I was wandering around the streets of a lower working class area in the suburbs of Brisbane, working my first job, trying to sell expensive Encyclopedia Britannica to the punters who lived there. Despite my callow youth, I had a tremendous gift as a salesman. I could tell by looking at the house from the outside whether they were interested or not in buying Encyclopedia Britannica and so could determine whether I should knock on their door or not. I was saying “no” for the client. Obviously, I had no clue what I was doing.
The only training we received was to memorise, word for word, a twenty five minute pitch for the buyer, synchronised with showing the flash looking pages inside the encyclopedia. I am sure though there are many much older and wiser salespeople out there, still making that fundamental error I was making. Eventually, I discovered I didn’t have any x-ray vision gift. I was just an idiot.
There will be plenty of opportunity for the buyer to say “no”, so we shouldn’t be joining in to support them on that quest. Even before the call, we will have anticipated some potential pushback and we are fully armed and ready to go when it emerges.
I was reminded of this x-ray vision into the buyer problem recently. The top salesperson of an organisation I know, said “no” for the buyer. He was an intermediary for me with the client and didn’t like one of the conditions of the sale I was proposing. This was an important source of his commissions for him and they had been a big buyer over a number of years. He had them wrapped up in cotton wool and was extremely nervous about maintaining the relationship.
I have learnt the hard way and so I don’t believe in saying “no” for the buyer, so I pushed it. I rejected his rejection and told him to put my request to the client. We got into an elongated email wrangle over this, but not only am I dim most of the time, I am also supremely stubborn, especially when it comes to sales. Stubborn and dim is a lethal combination. He didn’t like it at all, but he held his nose and put my proposition to the client. Guess what? They went for it. As we say in Japan, “even the monkeys fall from the trees” and even Mr. Number One sales guy can get it wrong. I refrained from mentioning that Japanese proverb of course or being a smarty pants and just thanked him for his cooperation.
One common case of saying “no” for the client is when the prices are raised for the product or service. Salespeople invariably will start whinging to the boss, that the client will never agree to buy at that higher price. Effectively, they are saying “no” for the buyers. There are many ways to dilute the pain of raising the price. The terms of payment can be elongated. The guarantees and warranties can be expanded. The rise can be counterbalanced by discounts for volume purchases. The proposition can be ramped up on the value equation scale. Additional incentives can be packed together with the original offer to justify the price rise. Services can be thrown into the product purchase process to make it more palatable and vice versa. Interestingly, salespeople complaining about the price increase, spend zero time thinking about how to sell the value increase to the client.
Price increases are one thing, but defending existing prices against discounting is another case of having to say “no” to the customer. In Japan, salespeople are very weak in front of the customer. The buyer here isn’t King but GOD and GOD doesn’t brook hearing “no” from salespeople. The constant complaint from our clients is that their firm’s salespeople identify too closely with the client and don’t defend the company’s policies well enough, including pricing.
I had the same problem with one of my salespeople. He was happy to discount and take a lower commission, even though the firm made very little profit. He got his base salary and some commission, so he was happy. I wasn’t so happy. I get it - the logic is simple. The salesperson heavily invests in the relationship with the buyer and works hard to defend that relationship, even against their own employer. This sounds crazy, but they know the value of an existing customer, compared to the pain and effort to find a new buyer.
This is where the value element has to be worked on more, so that salespeople can justify the existing pricing, without resorting to discounts to get the business. The basic sales skills of the team have to be improved, especially their communication skills. This don’t say “no” for the client arena, shows the real capabilities of the salesperson. Sadly, there is a major population decline underway here and salespeople are in increasingly short supply. The quality of the people we can hire isn’t going to improve, so our sales training mechanisms and our sales leadership mechanisms, become even more important than any time in the past. Are you ready for this and are your people ready to say “yes” for the buyer?
It is seriously sad to be dumb. Nothing annoys me more than when I finally realise something that was so obvious and yet I didn’t see what was there, right in front of my nose. We talk a lot about value creation in relation to pricing, trying to persuade clients that what we are selling is a sensible tradeoff between the value they seek and the revenue that we seek. We want the value we offer to be both perceived and acknowledged value by the buyer. Often however, we get into a rut in our sales mindset. We carve a neuron groove once in our brain and keep ploughing that same row. Outside stimulation is needed. I realised that fact when I recently did some formal online training. My previous companies had sent me to the Harvard, Stanford and Insead business schools in the past, which of course, were all amazing. However, when I was doing my recent studies, I recalled that it has been some time since I did something formal like that. During the coursework, I realised many things we could do around value provision, which we have not been doing or not doing sufficiently well enough. I am an avid reader, but I also found that the mantra of both “formal” and “informal” lifetime learning is a good one to follow.
I found we have had a lot of assets lying around, which we have not fully utilised, hence the “I hate how dumb I am” statement. We need an omnichannel approach. Often, we may have videos hanging around, explaining the benefits and the details of a service or a product. Now the video has an audio track, which we can strip out of the video. This allows us to turn it into a different medium, allowing clients to access the information in that format. So many people are now processing information through audio, thanks to the recent proliferation of podcasts and audiobooks. Buyers are busy, busy and so many are multi-tasking while listening. Having audio alternatives may help to save them valuable time, compared to them having to sit down and watch our video. Depending on the content, the audio might also become a training tool for our own staff.
Now if that video is sitting there on YouTube for free, then once people have watched it, suddenly, a whole world of YouTube’s other groovy offerings appears on your client’s screen. They are being tempted to look at our competitor’s videos. That is not a great result for us. We want to keep the client on our website for as long as possible. There are companies like Wistia, for example, which will host the videos for a monthly fee. These videos are no longer mashed into YouTube’s offerings, but sit independently, such that the client cannot stray into competitor territory. We want to build a moat to keep the client in our ecosystem, so that after watching the video on Wistia, they have to come back to us. Are you able to free your clients from the YouTube loop and make sure they escape your rival’s charms?
The audio track can also be run through AI programmes like Descript, which will turn sound into text. Once the text emerges, we need to edit the content, because the AI is good, but it is not perfect. Once we have the corrected information in text, it can go into our newsletters, get it on to our website and we can send it out to clients. When we have text in English, we can translate it into Japanese and use that for clients. We can use this text information to supplement other information we are going to send to clients or include it in our after sales service programmes. Do you have any opportunities to create text, which didn’t exist as text before and find ways to employ this to add more value for clients?
Often we have multiple solutions for clients, which we could bundle together. As salespeople though, we tend to be stuck in that Johnny One Note neuron groove and only sell clients one solution. An ideal bundle would be so attractive that the client would be willing to enter into a subscription format to pay something upfront for a whole year or each month or each quarter. The point is to get them to sign up for more than an episodic transaction that always has a formal completion date. We want repeat business and this subscription model is one way to weld the relationship between buyer and seller closer together. Once we become part of their ongoing business plans, it reduces the buying friction. Importantly, it also increases their internal friction to turn the buying process off. It is always easier to keep something going, than to start it in the first place. This builds a moat around our client, denying our rivals an option to steal our business. So, what could you bundle together to create a no-brainer, totally stupendous offer for the buyer?
There might be some administration associated with using our type of product or service. The buying entity inside the client’s company is always time poor. Perhaps we can offer a system which supplies the service or product, but in such a way that we reduce the friction involved on their side. A famous example is the Kanban system at Toyota. It works well for Toyota as the buyer of the auto parts, as their warehousing costs are substantially reduced. The suppliers have revolutionised their logistics ability and can time their deliveries to fit in with Toyota’s production schedule. The suppliers are selling their products but also reducing Toyota’s friction. What can we do to sell our products and services and also reduce the friction in the buyer’s internal systems?
When I finally got religion about maximising the assets we already have for increasing our value to clients, I was amazed at how much latent opportunity we had there all along. I was asking myself, “why has it taken me so long to work out this simple idea?”. I was just dumb but now I have wised up at long last. What items are available for you to recognise the latent value you possess and package them up as assets transformed into new formats for your clients?