Showing posts with label Bad Sales Practice. Show all posts
Showing posts with label Bad Sales Practice. Show all posts

Wednesday, July 22, 2009

Interesting Strategy: "We inspire sales people...." Didn't Inspire Me!

Yesterday, I got an intriguing tweet. It was from an individual and simply stated, "We inspire sales people. If interested let's connect." I have to admit, the pitch caught my interest. I looked at his twitter profile and saw roughly 95% of his 374 updates had one of 3 variants of the same pitch.

It got me to thinking, aren't many of our initial introductions and value propositions to prospects very similar? Too often, don't we hear: "Hi, I'm Debbie Smith from XYZ Company. We make the best widgets in the world, if you are interested let's connect."

These introductions may be true, but they are ineffective for a number of reasons. Some of these are:

1. Who is the person calling and are they credible? Why should I listen to their opinion? Sometimes, our company name is enough to get someone to listen. In the case of the guy who tweeted me, I may have been interested if I saw a number of insightful tweets, inspirational to sales. Instead, I saw 100's of the same query---with very few responses/uptakes. I have established many new relationships on Twitter with people who do provide inspirational advice on sales, leadership and business. While I haven't met them, based on what I have seen, they are credible to me.

2. These generic introductions make me feel like "To Current resident or Occupant." Particularly when I see I am one of several 100 getting the same message. Take the time to personalize the introduction if you want to produce results. If the guy had said: I liked Sales The Thinking Person's Profession and would like to share ideas. Would you be interested? (103 characters) The personalized approach and interest in me would have made me very receptive to a discussion. With very little effort, a slightly different approach would have produced profoundly different results. When we meet or call a prospect, are we saying something that personalizes the conversation, demonstrating our interest in them?

3. Tell me a little about yourself and why I should be interested in you. This is somewhat related to the credibility issue, but people buy from people. I like to know a little about the person I'm dealing with. That's part of the step we call "establishing rapport." It may be a few second, or it may be part of your twitter profile, but I respond to people.

Would you add anything more? I know I've just scratched the surface of this issue.

This tweet was a great example of what too many sales people do in introducing themselves to prospects. It doesn't take much to change our approach, but the slightest changes can produce profoundly different results.

Salespeople, Please Stop Your Pitch Long Enough For My Questions, You Might Close A Deal!

You know this story, I'm sitting at my desk, the phone rings, I answer, and an enthusiastic voice: "Good morning Dave!, I'm Roger from XXX....." The pitch begins.

This guy was selling a Sales 2.0 tool, which I actually had some interest in. I barely had the words, "tell me what you do" out of my mouth when the script started.


"Excuse me, may I ask a question," I tried to inject, but the pitch went on.

"Would you please let me ask you a question," he paused, I continue "you know if you give people a chance to ask a question, you might actually sell something."

I ask my question, the pitch started again......

"Excuse me, may I ask a question......." the pitch continued.....

"Have you ever considered listening to your customer and responding to their questions, it tends to work, I have a question, may I please ask it?" I say, a little indignantly. He pauses.... I ask my question...

The "recording" resumes.....

Once again, I say, "Please, are you hearing anything that I am saying? Would you please listen and answer my questions, I may want to buy!" I ask my question.....

You know what happened. The only way I could make it stop was to hang up.

In reflecting on the call, I struggled to ask about 4 or 5 questions. Each time I had to interrupt him---and I had to be aggressive about the interruption.

He only asked 2 questions.... I guess, "How are you today?" counts as a question.

I provided him valuable coaching advice 3 times during the call---normally I charge people for this, but I was feeling generous, plus I really wanted to learn about the product. I am serious about buying one of these tools.

Now where's the number of his competitor?

Wednesday, July 15, 2009

Stupid Twitter (and Social Media) Tricks

Many of you know I'm very enthusiastic about Twitter. I believe it has potential to be a very powerful tool for business professionals. Right now, we are just scratching the surface of potential applications.

I'm seeing people use it in very clever ways for competitive and market insight. I read stories of amazing customer service (though one wonders why people had to resort to Twitter to get action and why the normal channels of customer service do not work). Through Twitter, I've met people I would never have had the opportunity to reach before. Our twitter relationships have expanded and we have great telephone conversations, and yes---even drive new business.

While the business I've developed is not yet large, it has covered the investment I have made in tweeting. And this does not even begin to count the value of the new relationships I am developing.

However, any easy tool like Twitter, with virtually no barriers to entry from a cost point of view, stimulates some of the most bizarre behaviors and results.

The thing that has set me off now is this whole debate on Followers and Following. I just was followed by someone. I went to this individual's profile: This person is following 1473 and being followed by 1213. This individual has the grand total of 1 tweet.

Are people following this person because of the tremendous content they are providing? Is this person being followed by the quality of the pithy comments and observations? Is the person being followed by interest in the profile provided?

Undoubtedly, not, it is the Twitter practice of "auto-follow." So what result does this produce --- this individual can brag about their 1000 + followers (Maybe I'm displaying a little bit of follower envy---for months I have been organically building my following of 492 as of this writing.) But is this an audience the person really wants to reach, will relationships be initiated and built? Will business result?

What about the followers, what do they get out of it? Are they now the proud recipients of the electronic analog of : Dear Occupant??? I always try to focus my followership to people who provide interesting commentary that I can use (either professionally or personally). I have this strange quirk, I don't like junk mail, spam, or wasting my time --- maybe I'm different from the rest of the community.

One of the problems with Twitter and many of the other Social Media communications vehicles is the relatively low cost of entry (discounting the person's time), creates a vast wasteland of meaningless, self promotional drivel. The problem is, it makes it difficult for all of us to find meaningful content. We waste more time, leverage more tools (this is great for tools developers, tools filtering through the junk). It makes it harder for me to use these channels--both for marketing and for insight.

I'm not sure there is any resolution to this. But I certainly understand when I talk to business clients and they have trouble seeing the value of many of these new channels. I understand their reluctance to invest in it, because at the same time, they have to invest in navigating through the mountains of crap.

Anyway, I'm done with whining. For a more substantive set of tips on the use of Twitter (whine free), visit my friend
Niall Devitt's blog. He has done a couple of thoughtful commentaries on his use of Twitter.

Friday, May 15, 2009

Can Someone Help Me Diagnose This Sales Call? I Don't Get It.

It's 7:00am, I'm busy disposing of email and getting my day started. I'm already on my second cup of coffee, the phone rings.....

Most of my clients and colleagues know I start my day in the "office" at 5:00am, so I am anticipating it is one of them.

Dave: Hello, this is Dave Brock.
Other Party (OP): May I speak to your office manager?
Dave: Well, my name is Dave Brock, I own the company so I guess I'm the office manager, how can I help you?
OP: I'm John Doe from XYZ company and I'd like to know when your office hours start.
Dave, slightly confused: Excuse me, who are you and what are you asking?
OP: I'm John Doe from XYZ company and I'd like to know when your office hours start.
Dave, still confused: Well, since we are speaking on the phone right now, clearly they have already started.
OP (I guess I should start calling him John Doe): OK, thank you. Good bye.
Dave, very confused: Wait a minute, can I ask you why you want that information?
OP (John): Well we are an IT services company...... I wanted to see if I could set an appointment to talk to you about your IT needs.......
Dave, no longer confused but now perplexed: Well, why didn't you ask?
OP (John): Well......... What's your name?
Dave: That's OK, thank you for calling, I'm not interested in your services.

I think that was supposed to be a prospecting call???? I've done thousands in my career and have seen lots of sales people doing them.

But I'm not really sure. John had reached me, I clearly identified myself as the person he probably wanted to talk to, but clearly he wasn't prepared to execute his prospecting call. Why did he make the call? What was he trying to accomplish? Is he aware of the impression he made? Is he being paid to do this?

Some things I think went wrong:

1. He didn't know anything about the company. Before I make calls, I use this new thing called Google.....(you know what I'm going to say).
2. When he reached me, he didn't clearly introduce himself and his reason for calling.
3. I'm not clear that he had a script, but he really wanted to know when we started work. Even if that is in the script, it seems that when he heard he had the right person on the phone he might launch into the reason for calling and asked for an appointment, but I had to pull it out of him.
4. I raised an objection (Why didn't you ask?)and didn't even try to respond.
5. He wasn't listening, I told him my name twice, but at the end of the call, he still was asking for my name.

Yes, I still make prospecting calls myself. I do my homework before I make the call, so I know a lot about the company, their situation, and, if possible, about the individual I call. So often, when I call, I reach voicemail--I'm prepared for handling that. Sometimes, I reach an assistant--I'm prepared for talking to assistants, and every once and a while, I actually reach the person I want to talk to---I leap on those opportunities. I want to capitalize on those few seconds I might actually be talking to a prospect, I want to use their time well, make a great impression, and make the first step in achieving my objective.

Do I have it wrong? Am I missing something? Am I being too critical.

Unfortunately, these days, I get too many calls like the one from John Doe---no wonder "cold calls" don't work.

Thursday, May 14, 2009

Should Sales Professionals Be Certified?

First let's agree that many sales professionals (and others) are certifiable. My wife reminds me of this with every crazy idea I come up with. But that's not what I mean. I'm talking about whether there should be a certification process for sales professionals.

Over the past week, I've raised a lot of debate with my Posts On Sales Force Ineffectiveness, Conjecture On The Future Of The Profession:


Over at The Customer Collective, Donal Daly of the TAS Group, suggested we look at developing a Sales Certification platform to start doing something about the level of professionalism in sales. He has been generous in offering TAS Group resources in developing something. Others, Christian Maurer, Niall Devitt, Neil Warren, Dave Stein, Paul McCord, and others have weighed in on the topic.

It may be time to look at sales certification and how we might improve our practice---if only to save ourselves from ourselves.

Many professions are required certification/licensing to practice their professions. Doctors, Pharmacists, Lawyers, Accountants, even certain categories of Engineers are required to pass rigorous studies, testing, and proof of experience in order to practice. These requirements for certification are mandated legally and have central "certifying" bodies that set the standards and administer the certification process.

There are other types of certification that act like "Good Housekeeping Seals Of Approval," and indicate some level of training and experience "certified" by a sponsoring organization. In the IT world, Microsoft and Cisco certified people are highly sought after.

Many other professions offer "certifications," though I, somewhat cynically, think they are more oriented to maintaining membership (while they do have certain knowledge and ethics requirements).

For example, there are "Certified Management Consultant" and "Certified Professional Speaker" certifications. I've actually considered both, but when I start talking to current and professional customers about it, their responses were: "Say what?????" or "Who are they to tell me whether you are any good or not?" of "Never heard of it, who cares!"

There are actually several organizations that offer some kind of sales certification, but I have to admit that I've never asked any of the thousands of sales people I work with every year whether they are certified.

Recently, after all the corporate scandals, there have been people in the government and august organizations like Harvard, proposing some types of certification for executives.

With all this as background, I have to admit that I have mixed feelings about "certification" --whether legally mandated or industry driven. I'm one who believes the tag line of an old joke "What do you call 200 lawyers at the bottom of the ocean.....A good start!" We've seen lots of "questionable" practices by lawyers, accountants, doctors and others. Sometimes it means you jumped a series of hurdles, but it doesn't necessarily make you any better as a professional, more trustworthy, or more ethical.

Others--like the Microsoft and Cisco certifications sometimes seem to have greater value in enhancing a resume and getting a job. There is a level of knowledge, but there are equally knowledgeable, sometimes better people who have not gotten the certification.

And, in my own case, no one has ever asked me whether I am a Certified Management Consultant or Professional Speaker---though a frustrated customer did call me certifiable (reconfirming my wife's claims).

I do think we need to raise the level of professionalism in the practice of selling. I hear this from everyone I talk to--both on the sales side and customer side. While I'm not certain certification is the answer, I don't have any better ideas.

Perhaps we can start another discussion. What do you think? I'd love your comments. Even better, I put up a quick survey to collect opinions and ideas. It will take you no more than 5 minutes to complete. The survey has two tracks: What do we as sales professionals think? What do our customers think? Go take the survey, encourage your peers to take it, ask your customers to take it. I'll report the results in a few weeks.

Here's the link for the survey: Should Sales Professionals Be Certified?

Thanks both for your comments and for participating in the survey!

Wednesday, April 15, 2009

Shooting From The Lip, Just In Time Sales Call Planning

I love hanging out with sales people. Most of the sales people I've met are very bright, personable, and very fast on their feet. All of those are characteristics of great sales people. They also represent a critical weakness. They make us sloppy or in the pressure of time, we tend not to prepare, relying on our experience and ability to think on our feet to make sales calls. After all, we've made 100's of calls over our careers and we're successful. We can just shoot from the lip.

Too often, planning for a sales call goes something like this:

  • I'm in an elevator, thinking about the meeting I'm going to. Thank goodness it's a skyscraper in Manhattan---gives me a little more time to plan my call.
  • I'm meeting with Ms. Smith at XYZ company, we've been talking about a deal, I think I'll focus on these things.
  • I might stop by and do a "Howdy call" to a few people while I'm there.
  • I've got a briefcase full of the latest brochures, so I can talk about anything.
  • I know that Angel Cabrera won the Masters in a 3 way playoff on Sunday and that Tiger's putting was really off.
  • In the worst case, we can always talk about how bad the economy.
  • Elevator doors open, I'm ready for anything. I can talk my way out of any objection.
Over the years, I've interviewed thousands of sales people, inevitably, planning for most of the sales calls is pretty much like that. I talk to these same sales people after their call.


Dave: How did the call go?
Sales person: Great, we really bonded, I told them about our new products, gave them some brochures, talked a little about the deal and what they needed.
Dave: Did you accomplish all your objectives?
Sales person: I did pretty well, they really understand our product.
Dave: Did you accomplish all your objectives?
Sales person: I did pretty well. I wanted to learn if they have gotten the budget for the project, they're working on it. I'll call back in a couple of weeks and check again.
Dave: Could you have accomplished more in the call?
Sales person: (Pausing for a moment) Well we really are bonding, I can always call and arrange another meeting to get more information.
Dave: Did you forget to ask them anything?
Sales person: Well now that you mention it, I wanted to find out what they thought about the competitors. But I can always call and ask them again.
Dave: How many weeks did it take to get this meeting?
Sales person: Well Ms. Smith is very busy, it took a couple of weeks to set this meeting.
Dave: So it will take you at least a couple more weeks before you can move to the next step?


And the story can go on. Many of you may think I'm exaggerating, but think about the last 10 meetings you had---not the one's that were the final presentation to close the deal, but the meetings you have to get to that point. Do they look something like this?

In our research, we have found sales people tend to make almost 2 times the number of calls they need to make to close the deal. Lack of good planning, preparation, and poor execution lengthen the sales cycle. They cause us to make more sales calls because we forgot to get critical information, we didn't accomplish all our objectives, we could have accomplished more in the call, we were blindsided by something the customer asked.

In the example above, the failure to accomplish all they could have accomplished---because of lack of planning has caused the sales person to make at least one more call to accomplish what should have been accomplished. It will probably take at least another couple of weeks to arrange the meeting.

It's easy to see--the number of calls that are required increases dramatically. The time it takes to close a deal stretches out. This puts the deal at risk---the competitor may be moving faster, the project may be cancelled, the longer it stretches out, the greater the risk is of losing.

Imagine your own personal productivity. What if you could reduce the number of calls you make by as much as 50%? What is you could reduce the sales cycle by months? How could you use that "new found time?" To sell more? Spend more time with your family?

Before I wrap up, let's look at it from the customer point of view. They've probably had a pleasant meeting with the sales person. They may think not much was accomplished. They may think, the sales person keeps coming back to me for endless meetings.

Customers are busy people. They don't appreciate having their time wasted. One of the reasons sales people have such a difficult time getting meetings with customers is sales people waste the customers' time.

Improve the results you produce. Improve your win rate. Improve your customers' perception of you. Spend some time planning your calls. Write the plan down and use it as a guide during the meeting so you don't forget anything. When you finish the plan, ask yourself "What value am I creating for the customer in this meeting?" If you can't answer that question, you aren't prepared for the call. Cancel the meeting until you can answer that question.

A good friend of mine Dave Stein (ES Research Group) is a great fan of checklists (as a pilot he understands their importance). I am too. I've put together a call planning checklist to help me improve my results with each call. I'd be glad to send you a copy of it, just email me.

Friday, March 06, 2009

Getting Caught In A Lie --- Why Do Sales People Do This?

I'm sitting in my office doing some work and the phone rings. In answering, some salesperson---doesn't introduce herself asks for (let me call him) Mr. Smith.

I'm taken aback(You'll see why later), I respond, "Mr. Smith isn't available, my name is Dave Brock, I'm the president of the company, who am I speaking with and can I help you?"

She responds with her name and company---actually a fairly well known trade services organization, "No we are really trying to reach Mr. Smith. We spoke to him a couple of months ago about buying some of our services. He asked us to call him back, that he was interested in purchasing the services."

I respond, "Well that seems a little unusual to me, are you sure that you spoke with Mr. Smith?"

She responds, voice going up a little, clearly frustrated, "Yes, I would really like to talk to Mr. Smith. As I said, one of my colleagues spoke to him a couple of months ago. He indicated he was interested in buying our services. We wanted to discuss the next steps with him."

I'm very suspicious---I'll tell you why in a moment, but I respond, "Are you sure you want Mr. Smith? Was it he that your colleague spoke to? Can I help you?"

Her response, clearly frustrated, "Yes, can you please give me his direct number?"

My response, "Well I am very confused, Mr. Smith died over 2 years ago. We keep his bio and name in our web site, clearly marked 'In Memoriam.' So if your colleague really did speak with Mr. Smith, he is using a very long distance number." ("Mr. Smith" would have appreciated the irony.)

There was silence on the line.

I continued, "I'm curious, clearly no one in your company has spoken to Mr. Smith. Someone has apparently harvested names from our web site. but why do you have to lie as part of your prospecting?"

Another moment of silence from her----then somehow we were disconnected, I wonder what happened ;-)

If this were the only case, I'd not make a big deal about it, but I must get at least one call a week with some story--perhaps not as extreme like this. Usually, they ask for me, saying they are following up on the conversation we had a couple of months ago. I ask for when the conversation was, check my telephone log---unfortunately, I keep a log of all calls---then ask why they have to lie as part of the selling approach.

Just when I have hope that sales people are becoming more professional and are not using deception as part of their sales approach, the phone rings and someone is following up on their recent conversation with "Mr. Smith."

Do any of you have similar stories to share?

Friday, January 16, 2009

Why Do Sales People Have Such A Bad Reputation?

It's Friday evening, I'm cruising some of the blogs and other forums as I wind up the day. I saw a question posed on the Sales Best Practices board in LinkedIn.

The question concerned the Reputation of Sales, asking about why do we see such bad stereotypes of sales people -- lazy, unprofessional, etc. It went on to ask why people don't like sales people.

For those of you that are regular readers, you probably know that was all that was needed to set me back on my soapbox. Here's my response:

"I've been a proud sales professional for all my career -- though often my title doesn't say that. At the same time, I am not proud with the lack of professional practice in our profession.

I'm not talking about the hucksters, peddlers and bottom feeders. Unfortunately, they will always exist, but I don't think our profession is judged by them.

I think too often we do it ourselves through sloppy undisciplined practice.

I talk to 1000's of sales people a year, one of their common complaints is: It's impossible to get appointments and to talk to people, no one will see us.

When you think about the reasons for that, it's easy to see why we can't get appointments: We waste the time of the people we want to see! We don't create value in every interchange we have with the customer. No wonder they don't want to talk to us.

Think about it. How many times have you heard people talking abut a "Howdy Call?" These are a pure waste of everyone's time.

What about the calls, where all the sales person does is tries to pitch the latest new product? The only question they asked was "How are you?" (And they didn't wait for the answer--they went into their pitch).

What about the sales person who is unprepared? Too many of us are smart-fast, that's part of what makes us good, but shooting from the lip does not make up for the lack of preparation.

We interview customers, they complain: Sales people don't understand my business, priorities or problems. No wonder, we are too busy talking and not asking questions.

The reputation of sales people can be changed if all of us start doing one thing. Customers will open their doors and answer their phones if we start doing one thing.

We must create value in every interchange with our customers! If we don't, we are wasting their time.

In planning for a meeting, if we cannot identify the value we will create, then we are not ready for the meeting and must cancel it.

The concept is so simple, why don't we execute it?"

Well I'm off my soapbox, why do you think we have such a bad reputation, what can we do about it?

Friday, September 12, 2008

Mailing It In! Bad Sales Performance

Linda Richardson has a nice article on EyeOnSales, "Discussing Vs. Sending Price."

She covers the topic very well, I won't repeat it. I am constantly amazed, however, about the number of sales people that are too busy or too rushed or too sloppy to present their solutions, pricing, and value to customers.

It's never the customer's responsibility to figure out what value they will get from a solution and to develop the ROI themselves.

It's the obligation of the sales professional to demonstrate and prove the value of their solution to the customer. Not doing this is not only sloppy and unprofessional, but it demonstrates tremendous disrespect for your customer.

The job of the sales professional is to help customers achieve their goals, objectives, and solve problems. If you don't take the time to help them understand how they will do this, then you haven't earned the business.

Wednesday, July 02, 2008

What Did You Sell That For?

In the mid 80's, as a young manager in IBM, I was meeting with IBM's then Vice Chairman, Paul Rizzo. The conversation is as important now, as it was then. Paul had just returned from a trip visiting customers, and in our small group was expressing a high degree of frustration and some anger.

He recounted driving to the customer with the sales person. The sales person was briefing Paul on the account and proudly stated he had just sold a system to this customer. Paul responded with the question, "What did you sell it for?" The sales person quickly responded, "Oh, about $10 million."

Paul expressed his frustration to us, stating the sales person's response, while typical, was devastating to him. Paul wanted to know "What did you sell the system for?" That is, How is the customer going to use it? What value will they get from it? How will it help them serve their customers? How will it help them grow their business? The sale was a transaction to this sales person, the individual had no idea what the customer was doing, just that the customer had paid IBM $10 million to do it.

Unfortunately, over 20 years later, times haven't changed---particularly in many high technology sales. Too often, I speak with sales people, managers, and executives about what they sell. I ask the question, "What Are You Selling It For?" Too often, the response has nothing to do with satisfying a customer need or creating value for them. It is about beating a competitor, often at the lowest price, and winning a transaction.

This isn't just the problem of sales, to many of our businesses are focused on the product. Many lose focus on what the product/service does for the customer, the value it creates for them.

As business leaders and professionals, as sales professionals, as people seeking to server our customers, growing our mutual businesses, the question Paul Rizzo posed over 20 years ago, is what we must ask ourselves every day:

"What did you sell that for?"

If we can't come up with the answer, we will fail to succeed.

Wednesday, June 25, 2008

To AT&T Wireless: I apologize for not being the ideal customer, I'll try to do better!

My mobile phone died. I did the logical thing, I called AT&T Wireless (my vendor of about 15 years) to get a new phone. Below is just part of my experiences:

Dave: My phone broke, I'd like to order a new one, can you help me.
Agent 1: I'd be delighted to help......your account indicates you are eligible for an upgrade by extending your contract for 2 years.
Dave: OK, I'd like to get the Nokia XXX in Black.
Agent 1: Nice choice. I can get you a brand new one in Black. After your mail-in rebate, it will be free! Should I place that order?
Dave: Yes, that would be great, how soon can I get the phone?
Agent 1: I'm sorry, I just noticed that your account is handled by a different group. I'd be glad to transfer you to that group, they can take the order and send you the new phone. Here is the information you need to give them...... I'll transfer now, if it is OK.
Agent 2 (Heavy Indian Accent): How can I help you?
Dave: I was talking to another agent about ordering a new phone, they said your department handled my account. Can you help me?
Agent 2 (Heavy Indian Accent): I would be glad to help you.... Let me look at your account.... You are eligible for an upgrade.... What phone would you like?
Dave: I would like the Nokia XXX in Black.
Agent 2 (Heavy Indian Accent): I can get you a refurbished version of that phone in Black, after rebates it will be free.
Dave: No, I want a new one, the other agent said I could get a new Nokia XXX in Black.
Agent 2 (Heavy Indian Accent): I can get you a new phone for $20, but I cannot get it to you in Black, we have no inventory.
Dave: I'm confused, the previous agent was said it would be free and she had plenty of inventory in Black. Why can't I get a new Nokia XXX in Black? For free---after rebates?
Agent 2 (Heavy Indian Accent): I can get you a re-furbished Nokia XXX in Black for free.
Dave: No you don't understand, I want a new Nokia XXX in Black and I was told it would be free after rebates.
Agent 2 (Heavy Indian Accent): I am trying to help you. I can get you a new Nokia XXX, but not in Black and it will cost you $20 after rebates. The new Nokia XXX's in Black are available for free to new customers opening new 2 year contracts.
Dave (getting a little angry): Wait a minute, let me understand. If I were a brand new customer, I could get a new Nokia XXX in Black for free?
Agent 2 (Heavy Indian Accent): Yes, but for you, I can only sell you a new Nokia XXX in a different color for $20----after you extend your current contract for another 2 years.
Dave (hovering between anger and sarcasm): Let me understand, I have been a customer of yours for 15 years, I am extending my contract for 2 years, and I can't get the same deal that a brand new customer getting a 2 year contract can get?
Agent 2 (Heavy Indian Accent): Yes, that is correct. Which phone would you like to order?
Dave (past anger, heavy on sarcasm): I don't understand this, apparently new customers are more valuable than current customers.
Agent 2 (Heavy Indian Accent): I am trying to help you.....
Dave (heavy on sarcasm): Tell you what, I am currently not under a contract. I'd like to cancel my current account and open a new account, transferring my current number to the new account and getting a brand new Nokia XXX for free--after rebates.
Agent 2 (Heavy Indian Accent): I don't understand..... You can't cancel your account..... I am trying to help you.....
Dave: You are helping me. You have told me that new customers get a better deal than old customers---doing the exactly the same thing. You have told me that new customers are more important than customers who have been loyal to you for 15 years. I got it...... Now I'd like to cancel my account and open a new one.
Agent 2 (Heavy Indian Accent): That doesn't make sense, you need to keep your old account. You don't understand, I am trying to help you.....
Dave (about ready to blow up): Can you give me a new Nokia XXX in Black for free after rebates and through extending my current account/contract 2 years?
Agent 2 (Heavy Indian Accent): No, I can give you a refurbished Black Nokia XXX for free with the contract extension. The new Black Nokia XXX's are reserved for new customers, I can't even sell that to you. But I am trying to help you......
Dave (very heavy sarcasm): I now understand, you have been very helpful. You have told me new customers are much more important than current (15 year) customers. I get it...... Do you have the number for Verizon...... I'm opening a brand new account with them.

In fairness to AT&T all the wireless service providers are equally bad-----or arrogant. I fully understand the concept of "subsidized" phones and the need to open/extend contract business. I also understand the concept of churn and the economic consequences of churn to the vendors. Yet the service providers' policies actually encourage churn and reinforce customers moving from provider to provider in a regular 2 year migration.

It's a shame, there are much better ways to do things---both in serving the customers and in driving profitability.

Friday, March 28, 2008

Auto Manufacturers and Dealers -- Will They Ever Learn?

Every few years, I subject myself to one of the most frustrating experiences a consumer can ever go through, I buy a new car. I've been buying cars for too many years, and the experience is always terrible. After every dealer visit, I feel like I have to take a shower to clean the slime away.

As a side note, before I get into my rant, a number of years ago, I wrote an article on the same topic. it was called "The Ultimate Buying Experience," a tongue in cheek take off on the advertising theme of a large German car manufacturer and my experience in buying one of their cars. I actually wrote that 10 years and about 6 cars ago (sorry, I'll admit to a vice about nice cars.). Each time I buy a car, I hope the experience has changed. Each time, I an inevitably disappointed.

The Internet has provided consumers a huge amount of data about purchasing cars, dealer invoices, promotions, etc. The car manufacturers' sites also give interesting insight. I try to be as informed as possible as a consumer.

Yet the moment, I walk into a dealership, virtually any dealership, I am treated like an idiot. Sales people present pricing that is way off the mark. When I start to challenge them, they come up with the most ludicrous responses. When I indicate I have done my homework, they start to waffle a little, then they resort to lies. Today, I asked someone about a dealer rebate program and when it terminated, he told me the end of the month (this being the 28th, it served his purpose). When I showed him a print out from the manufacturer's website saying it the end date was much later than the dealer stated, he said the website was wrong. I suggested we revisit the website to confirm this, or that we call the manufacturer. Then he started his dance, trying to come up with illogical reasons to support his claims.

Another dealer gave me two prices in two visits. The first visit, I dealt with the first salesperson that greeted me. He gave me the "best possible price," after a lot of back and forth. A couple days later, I visited the dealership again. The salesperson wasn't in, so I asked for the fleet manager (I had been coached to do so.). I explained what I was looking for, he gave me the fleet price which was several $1000 below the "best price" I had been quoted by their sales people a couple days earlier. When I challenged him about the difference. all he could say was fleet pricing was different. (As a side note to the readers, if you don't know, it seems that everyone qualifies for fleet pricing, you just have to ask for it. Does it make sense? No, it's just another demonstration of the low esteem that car dealers and the manufacturers hold their customers.)

The automotive industry is in serious trouble. Everyday, we read of layoffs, reductions, challenges that manufacturers and dealers face. Yet they persist with this ridiculous behavior and demeaning treatment of its customers. Consumer surveys constantly cite dissatisfaction with the "buying experience."

Dealer and manufacturers apparently have no desire to learn. In years of buying cars, many very high end luxury and performance cars, I rarely see a dealer that respects the knowledge of their customers and treats them with genuine respect.

I believe car dealers and manufacturers deserve to get a fair profit on their products. I don't want to screw the dealer, but I don't want to be screwed either. It seems to be part of the business -- manufacturers set policy and train dealers. Dealers execute these practices. All of it is based on taking as much advantage of the consumer as possible.

I wish they would learn, imagine, looking forward to buying a new car and going through a buying process that is satisfying and fair. It's a win for consumers, dealers, and manufacturers.
As a final note, with a lot of diligence, you occasionally do find a good salesperson. I find a fair deal and will buy a new car. This sales person's first quote was fair---based on my research and what a good target price would be. I suppose I could haggle and get a few dollars off, but I won't. I'm happy with the deal, I think it is a fair price, it is not worth my time to try and extract the last cent from the deal.

Tuesday, January 29, 2008

The "New" Art Of Selling????

I'm somewhat distressed the article that appeared in the January 28, 2008 issue of the Wall Street Journal. It was the column on Theory and Practice, entitled: Next In Line For Reinvention: The Art Of Selling. Both the author of the article, Phred Dvorak, and the author of the Book, Ram Charan seem to have discovered the secret to selling: finding a customer with a problem that you can solve and helping him solve it. What a tremendous insight!
I'm sorry, I don't like to trash others, particularly Dr. Charan. I have liked some of his past books. But have he or Mr. Dvorak bothered to study professional selling literature of the past 20 years? The notion of solution, customer focused, or consultative selling has been the subject of numerous books, articles, and consultant speeches. The words: value proposition, solution focus, customer oriented roll glibly off the tongues of any sales person.
Unfortunately, none of the ideas in the article are new or innovative. They have long been at the core of professional selling. Given Dr. Charan's past books, it would have been more interesting not to re-hash of these ideas, but to focus on examining why companies struggle in the execution of these ideas.
We have worked on these issues for the past fifteen years. The "theory and practice" of solution and consultative selling is not at question in any organization that we have worked with. The struggle of implementing these ideas, sustaining performance, growing and improving are the issues that sales executives and CEO's struggle with. It's time to have a meaningful discussion about execution.
Perhaps even more disappointing than the article is that the article was one of the most emailed articles in the WSJ. Do these people emailing the article think they have stumbled on a new insight? The science and practice of professional selling is in trouble if they do.

Friday, January 25, 2008

Truth In Advertising -- Do You Really Believe The Value You Produce?

I just got an email inviting me to yet another networking site. This was an interesting email, similar to others that I receive. Perhaps this was the straw that broke my back and forced me to comment.
This email came from "a friend," someone I don't know inviting me to join this website. When you look at the email more carefully, it is part of a blanket email sent by the company trying to recruit members to the site.
I find it offensive when companies claim familiarity and a relationship that doesn't exist. Sending a mail that looked like it may have been from my network, trying to get me to to something based on the presumed relationship is not just offensive. It is deceptive -- it starts the relationship on the basis of a lie. I can only presume the relationship will continue based on lies and lack of integrity.
If you have a product or service that you believe produces value then present it that way. Talk to your potential customers from a position of integrity and show them the value they will achieve. Trickery and deceit doesn't work--it's no way to build and sustain relationships of value. If you have to resort to these techniques, then perhaps you don't have a viable offering -- or you may not believe in your value yourself.
There seem to be a category of Internet marketers or consultants that think these approaches are the way to build a business -- at least based on the volume of similar emails that I receive. I prefer the simpler direct approach: "I have a product/service that I am proud of, I'd like to talk to you about how you might be able to get value out of it." I react much more positively to that message rather than these deceptive, poorly thought out message.
Oh, and by the way, to the guys at Notchup, I'm not interested in becoming an "invited member of your private beta."

Monday, August 13, 2007

When I Want Your Opinion, I'll Tell You What Your Opinion Is, And You Will Like It!!!


I usually try not to rant against specific companies in this blog, but I just bought a new car--a Lexus. I had used Lexus in the past as the benchmark for outstanding sales experiences, but it's changed. It now is aligned with every other car shopping experience I have had. It is among the worst and most distasteful buying experiences I have seen. (When will the auto manufacturers get it?!).


My rant is not about this terrible experience, but about the end. I was given a survey by the sales person. It was already completed, indicating that I was completely satisfied with the shopping experience. The salesperson explained to me, "If I don't get a top ranking, I will be fired, so I appreciate it if you would say that you are completely satisfied with everything, so I get to keep my job."


Lexus is just one more company that demonstrates they really don't care about their customers. They have such disdain for honest feedback from their customers that they have the audacity to tell us what our opinions are.


I recently read a book that discusses this much better than I can, it's the Ultimate Question, by Fred Reichheld. I encourage anyone really interested in learning from customers to read this and apply his process.
In the mean time, I hope companies learn to respect their customers and listen to them better.

Thursday, June 09, 2005

Sales School: What Your Insurance Agent Is Learning....

Yes, the "Snake Oil" school of selling still exists. I was amused to read Janathan Clements' article in the June 8th edition of the Wall Street Journal (Personal Journal, Page D1).

Jonathan articulates the issues far better than I. Enjoy the article!

Sales School: What Your Insurance Agent
Is Learning From the 'Annuity Gladiator'
June 8, 2005; Page D1

I can't recall precisely when I got my first message, and I have no idea how I got on this particular email distribution list. But at some point last year, I started receiving emails aimed at insurance agents, offering to pay me commissions of 8%, 10% and even 13% for selling annuities.

Initially, I trashed every message. But they kept coming and my curiosity kept growing. Before long, I was voraciously reading every email, signing up for magazines like "Boomer Market Advisor" and "StraighTalk" and frequenting Web sites such as www.lifeinsuranceselling.com and www.producersweb.com.

And I have to tell you, it's been a revelation. Maybe I don't have to spend my remaining days as an ink-stained wretch. Maybe my future lies in selling annuities and other insurance products. Maybe, in fact, my personal financial security is just a few cold calls away.

• Helping yourself. "Score a bull's eye for your annuity clients ... and yourself!" promised an advertisement. "Convert your client's term policies to permanent life insurance at FULL COMMISSION," screamed one Internet offer.

Make no mistake: There's lots of money to be made in insurance products -- assuming you're selling, not buying. "Not all annuities are created equal," contended one email. "Some pay MUCH higher commission while still providing GREAT benefits to your clients. Introducing ... a 13% commission equity indexed annuity."

But no advertisement was more inspiring than the one for the Spectrum Rewards Choice 7 Indexed Annuity from Baltimore's Fidelity and Guaranty Life Insurance.

On a palm-tree-lined beach, a couple looks lovingly into each other's eyes.
They seem oblivious to the handsome young man nearby, an annuity salesman leaping into the air with joy, presumably ecstatic over his just-completed sale. Says the ad, "what's good for your clients is good for you."

• Ensuring success. Clearly, to cut it as an insurance agent, I will need to learn how to sell. And there are all kinds of folks who seem anxious to help.

"Overcoming objections without making your prospect squirm!" shouted one of my daily emails. "Order your SALES IDEA BOOK today!"

Meanwhile, an ad promised to reveal "the magical one sentence client question that triples index annuity sales with zero effort!" One Web site even offered to send me information that would put "clients and customers at your marketing mercy" using something called "maximum persuasion."

Online, I also found a slew of helpful articles, including columns on how to sell variable annuities to reluctant customers and on how to overcome my own unwillingness to make cold calls. One tip: Use a potential client's name frequently. According to one article, "people love to hear their own name."

To round out my education, I might even attend the "Annuity University" taught by "annuity gladiator" Tyrone Clark. "Spend two days with me and I will turn you into a premium machine or suggest that you get into a different type of work," boasted his ad.

Alternatively, I could curl up with a good book, such as "11 Amazing Secrets of Outrageously Successful Insurance Agents," "Kick Your 'But': 18 Steps to Removing the Obstacles to Sales Success" or "Red-Hot Cold Call Selling: Prospecting Techniques That Pay Off."

• Taking a break. Armed with these selling techniques, I would no doubt be ready to strut my stuff. But where would I meet clients?

How about dinner? An ad for Response Mail Express in Tampa, Fla., notes that "we are the originator of the dinner seminar marketing concept that has helped thousands of advisors across the country generate the highest commissions and see more prospects in one month than most advisors see in a year."

I would probably also want to sign on with an insurance-marketing outfit. For instance, I received an email about Professional Planners Marketing Group in North Palm Beach, Fla., listing the "top 10 reasons to partner with PPMG," including "sales scripts for prospecting," "100 leads in your area" and "10 day Caribbean cruise for 2."

Selling must be tiring, because a lot of the marketing outfits are offering vacations. DNA Brokerage of West Des Moines, Iowa, recently sent me a flier about selling annuities to qualify for both a five-night stay in CancĂșn and a seven-night Caribbean cruise. "Double Your Fun," proclaimed the flier, which was accompanied by a stick of Wrigley's Doublemint chewing gum.

Of course, if you're an insurance buyer -- rather than an insurance agent -- such sales incentives might seem a little alarming. "It's a reflection of how competitive the business is," says Gordon Bess, editor of Life Insurance Selling, a St. Louis trade publication that carries a raft of breathless advertisements directed at agents.

He notes that, among life-insurance companies and insurance-marketing outfits, the big battle isn't to attract consumers. Rather, they are competing for the attention of a shrinking pool of insurance agents. "That's why you see ads like that," Mr. Bess says.

But what if you're a consumer? What should you make of advertisements that tout commissions and promote the chance to win vacations? "It would remind me that I need to work with somebody who I can trust, and who will work in my best interest," Mr. Bess says.

Ain't that the truth.

WHAT THEY'RE SELLING


Three insurance products that carry high commissions:
Variable annuities allow investors to buy mutual funds inside a tax-deferred wrapper.
Equity-indexed annuities aim to capture much of the stock market's gain, while providing downside protection.
Cash-value life insurance combines a death benefit with an investment account.

URL for this article:
http://online.wsj.com/article/0,,SB111818884538953572,00.html