Posts Tagged corporate selling
About top performers: by definition, they are already at the ‘top of the totem pole’. They already set the benchmark, for what is acheivable through exemplary performance, in their respective organisations. They shape the belief systems about what’s acheivable. They thus have potentially far more influence than the management infrastructure who are trying to lead your company to greater success – through wisdom, carrot or stick.
(I’ll use B2B sales as an example, but I could be talking about executive officers, sports professionals, lawyers, managers, consultants, you-name-it.)
Top performers’ challenge to climbing greater heights is two fold…
- Top performers may struggle to find assistance from people, more experienced or better than they, to teach or mentor them in their sales performance. And although I can mentor salespeople, that’s not the line I usually go down, apart from maybe suggesting the odd reframe. I don’t mentor so much; I coach.
Mentoring and coaching are completely different and require, by and large, different (but not mutually exclusive) mindsets: expert/directive/intellectual and non-expert/non-directive/emotional – respectively. Top people benefit more from the latter because….
- A step change upwards in performance, for them, is not so much an intellectual challenge. It’s emotional. These people are smart. If their challenge was purely intellectual, they would have figured out what to do differently already – and be doing it. What they require, to step up, is someone to help them bypass the emotional blocks (the deepest of which they are unaware of) with which they allow to hold themselves back.
Change is a journey that’s two parts emotional to one part intellectual.
I’ve spent the best part of the last 18 years working with top performers, in global organisations, to help them express how to be 30%+ more effective. They figure the ‘what’ to do differently, to be 30%+ more effective, for themselves as part of the coaching process. What I do is equip them with the emotional framework to go do it – for that is what they require.
[That’s my guarantee, by the way. If you do the coaching, and do all the work assigned on time, you will become 30%+ more effective at whatever you are focusing on.]
Paul C Burr
Facebook: Beowulf (>15,000 followers)
(An extract from my booklet, Quick Guide VII – A Top-notch, Sales-Relationships, Account Management Template)
The matrix implies that you may have the opportunity to add value to your sales propositions. The nature of this value may be intellectual and/or emotional. Furthermore, if your customer values ‘you’ both intellectually and emotionally, you meet the basic criteria to form a partnership with your customer. If your customer neither values your intellect nor you/your-organisation as people – then your products and services are probably viewed as not much more than commodities.
Let’s look some more into each of the four quadrants in the Customer Value Orientation Matrix.
- Transactional: In this quadrant the individual client tends to place value for money upon the cost of the product and service quality they are buying and little or nothing more. In a commodity sale, given the minimum criteria of quality required, the client will make their decision typically on the lowest cost supplier. They attach neither emotional nor intellectual value on doing business with one vendor over another.
- Intellectual: Over and above product and service quality some clients will value a vendor’s intellectual property, i.e. their expertise, wisdom, data and/or whom they know.
Case Study: Intellectual Value – IT Directors’ Network
I once sold worldwide best-practice research to IT Directors as part of a private club subscription. Over and above the value of accessing millions of pounds (£UK) of research, at a small fraction of the cost, many members joined to meet their peers face-to-face. They met informally on a regular basis to discuss ‘hot topics’ of their own choice. Members would share insights into major IT management issues. If nothing more, members shared solace amongst themselves that they all struggled with the same management issues.
- Emotional: In the UK, themes such as ‘Buy British’ or ‘our Customer Support is based in the UK’ continue to carry favour with some clients.
I have sold millions of pounds (£UK) worth of contracts by asking the client if they would help me to make or overachieve my sales targets at year end. In each case, I had a very close and trusting relationship with the client. They were willing and happy to bring forward the business simply because I asked for it.
Case Study: Emotional Value – A Surprise and Wonderful Contract of Thanks
I led a sales and installation project of a huge network of Personal Computers (PCs) to facilitate a new customer service support system for a UK national corporate client. My organisation was awarded Phase 1 of a two phase project. I was told informally that Phase 2 would probably be awarded to a competitor whose product was some 40% cheaper.
The client valued my organisation’s technical know-how and I assembled a top support team to make sure that Phase 1 was commissioned on time and within budget. By the end of our contract, the customer was delighted.
I managed to persuade my management to keep the support team in place, even though our contract for Phase 1 had been fulfilled. I was determined to ensure the complete project was a success. Specifically, I did not attempt to negotiate anything in return for this ‘extra resource’ commitment.
Phase 2 got underway. About half way through and to my complete surprise, I was awarded a further £3M worth of unexpected business. The client-sponsor was “simply delighted” with my organisation’s commitment to the project overall regardless that a competitor was supposed to be supplying the hardware for Phase 2. This was the client-sponsor’s way of saying “thank you”.
- Partnership: When a client values doing business with you from both an intellectual and emotional basis, you have the potential to forge a partnership.
A business partnership is to all intensive purposes a marriage between your organisation and your client. You’ll sit together at a common ‘planning table’. Collectively you’ll form ‘one team’. You and your client’s organisation will ideally have a matching hierarchy of values.
The partnership will sustain when it is built on pillars of passion, resonance, security and creativity. The pillars are cemented in trust and as long as their bedrock is sound, pillars can crumble and be rebuilt.
I once engaged with a global apparel manufacturer to ‘measure’ the value its major retailer clients placed on the various products and services it offered. It sold prime marque products at premium prices. It was very successful but had a mismatch of values with one giant retailer in particular.
The retailer placed little or no value on the various add-on services the manufacturer provided, such as: local marketing campaigns, TV advertising, electronic tagging, in-store merchandising and so on. The retailer’s mentality was ‘stack-em-high, sell-em-cheap’; a complete contrast to prime-product retailing. The retailer was more interested in selling the manufacturer’s ‘bin-ends’ and ‘seconds’. And so a deal was eventually cut but the prospect of a partnership never came to fruition. The retailer’s view of all suppliers was totally Transactional .
For more information on forging and sustaining business relationship I refer you to two booklets from my series of Quick Guides to Business…
Good Selling & Shine on…!
Paul C Burr
My latest booklet, Quick Guide III – How to Bridge the Pillars of Successful Relationships (QG3), focuses on complex, inter- and intra- corporate, many-people-to-many-people, business relationships.
There are sound, logical, rewarding, tangible and emotional reasons for building healthy relationships. These very same reasons apply equally to personal relationships.
Here’s an extract from QG3…
Logic – less cost
Research shows that once you’ve established a customer relationship based on mutual trust and value, it takes five times the effort to build the same relationship with a new customer as it does to maintain it with your current customer.
When the cost of new prospect sales is five times that of existing satisfied customer sales, you don’t need a certificate in mathematics to appreciate the importance of satisfying, if not exceeding, the expectations of existing customers irrespective of the premium you earn from brand loyalty.
Premium – higher earnings
A reputable brand image makes selling a lot easier. I had no problem whatsoever getting to see new clients when I worked for IBM. Cold-calling for an organisation that isn’t a ‘household’ name, however, was a real ‘eye-opener’ for me after I made the switch.
The value of your reputation is the premium that customers will pay to do business with you over and above what they will pay your competitors, all else being equal, plus the cost reduction in sales your brand reputation affords you.
A simple example: ‘Household-name’, supplier A, renowned for its high quality products and services, sells a PC. ‘Relatively-unknown’ supplier, B, clones A’s PC with the exact same components, guarantees and terms of service. Intrinsically there’s no difference between PCs from either supplier. The cost of production and distribution of each product is the same.
Look at the buying/selling process from a customer perspective. All else being equal…
- What price difference will a customer pay (for the increased: reassurance, sense of status or another emotional, differential source of value they feel) for a PC from supplier A over supplier B?
- Reduction in sales cycle time and resourcing: how quicker and easier is it for a seller to convince a customer of the quality of a PC from supplier A compared with supplier B?
Brand value = [(what customers pay you) – (what customers pay for the exact same product/service from your competitors)] + (increase in productivity/cost-reduction in sales afforded by your brand)
Legacy – higher contribution
How do you want to look back on your time in sales and management at the end of your career? How do you want to be remembered? As a seller, buyer or leader: do you want to feel you’ve kept (or at least strived to keep) the agreements you made?
Maybe a business world forged with 100% truthful relationships is somewhat of a pipe dream, but as you look at the world’s economy and the ‘wars’ for limited resources right now, what choice do we have? And we have to imagine something before necessity will mother its invention – do we not?
‘You’ can either contribute to a world where wealth and power are shared through equitable negotiation – or not, truth or illusion/deception, abundance or scarcity, oneness or separateness, love or fear. ‘You’ choose! (But this is the topic contained in another book of mine, Defrag your Soul.)
Paul C Burr