NZSALES MARCH | ISSUE 104
How to Ask the Right Questions Page 6
NZ’S E-MAG FOR SALES LEADERS | WWW.NZSALESMANAGER.CO.NZ
From the Editor M
any have been the times where I have been in conversation and not received a helpful reply to my question. While there are most likely several reasons for this, it is probably also true to say that many times it was because I needed to ask a better question.
‘'stuff'’ answer is a favourite, usually followed by the answer of “nothing much”, when I ask “what did you do after you did some stuff?”
Once you have your questioning skills polished, a great way to get some value from this is to In this issue, Derek Good’s lead article on questioning skills follow Sean D’Souza’s advice provides a helpful reminder of different types of questions, and and find out why did your when to use them. Derek ends with a reference to how his children customer buy. Read on to see answer questions, and I am sure this will resonate with many this article and more. parents. Our children are the masters of one-word answers, whatever the type of question. So if you want to improve your questioning skills, practise on children. In our household, the
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contents
MARCH THIS MONTH'S MUST READ...............................................................................................................6 HOW TO ASK THE RIGHT QUESTIONS
BOOK REVIEW.....................................................................................................................................9
The Hybrid Sales Channel by Rich Blakeman
SELECTING AND IMPLEMENTING YOUR CRM...............................................................................10 WHY DID YOU BUY? .........................................................................................................14
TWO MINUTE TOP-UP.......................................................................................................................18 IT’S NOT YOUR PROSPECT’S JOB TO PICK A MEETING TIME
QUICK FIX..........................................................................................................................................20 It’s not what you sell, it’s how you sell
EVENTS CALENDAR...........................................................................................................................21 DID YOU KNOW?................................................................................................................................21 THE CLOSE........................................................................................................................................23
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MUSTREAD
How to Ask the Right Questions
Words by Derek Good
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nowing how to ask the right questions can save time, create the right atmosphere and avoid slipping into a ‘telling’ mode. When people think about different types of questions, the standard responses are ‘Open’ and ‘Closed’. Well, they are the two most fundamental types of questions, sure, but there are others that can have an impact.
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If we want the person to share their thoughts and feelings on something – the obvious way to get them to talk or ‘open up’ is to ask an ‘Open’ question. If we want to clarify something, then a ‘Closed’ question will do it.
There are many variations of both the standard open and closed question types. Let’s look at the two basic questions first. Open questions start with: • How • Why • Where • What • When • Who That’s it. There aren’t any other ways to start an open question. Why is it called an open question? Well, starting a question with one of these words is more likely to engage the other person to provide an answer that requires more than just a one-word response. There’s no real guarantee to that, but the chances are much higher. For example, “How do you think the session is going?” should open up the opportunity for the respondent to share their thoughts on the session. Of course, they could just say, “Fine”. That’s when you would follow up with another open question such as, “What exactly do you think is fine about it?” which will give them more of a push to share their thoughts.
Closed questions have a lot more ways of starting. Some examples include: • Should • Did • Can • Will • Could • Shall Closed questions normally provide the respondent with the option of a one-word response which is often ‘Yes’ or ‘No’. For example, “Can you write this down?” will mean the other person is going to either say ‘Yes’ or ‘No’. Knowing this basic information can help us in our coaching. If we want the person to share their thoughts and feelings on something – the obvious way to get them to talk or ‘open up’ is to ask an ‘Open’ question. If we want to clarify something, then a ‘Closed’ question will do it. www.nzsalesmanager.co.nz |
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Some other question types can also Rhetorical Question be included under the umbrella of These are questions that don’t require a response. They often don’t open or closed questions. sound like actual questions. For example, “I wonder what would happen if we all got sick at once?”. Sometimes a rhetorical question Leading Question is used just to get people to think about something rather than come This is where you ask a question up with an immediate solution or response. with the kind of response you want to hear already in mind. For Clarifying Question example, “What did you like about Use these to check your understanding or to delve a bit deeper into the presentation?” is effectively a part of the discussion. These types of questions can be structured leading the other person to tell like, “Are you saying that they didn’t care about what they did?”. you what they liked about it. This will give the other person an opportunity to either confirm what There wouldn't be much room for you asked or clarify something different. another response unless they liked nothing about it at all. Of course, Direct Question you can have an open leading or a We don’t often use direct questions. We tend to soften them up a closed leading question. bit. For example, the direct question, “Where’s the bus station?” is often asked after a softener statement like, “Excuse me, I’m a little Echoic Question lost. Where’s the bus station?”. this is where you repeat back part of someone's statement as part of a question to that person. This Of course, you could ask a question in another way. For example, is especially useful if you didn’t if you are struggling to get someone to open up and talk to you, try hear a part of their sentence or the phrase, “Tell me about…” This is not a question as such but want to clarify a component of acts like a question in getting them to talk to you. Try it out next what they said. For example, if time you need some help in getting someone to talk to you. I find someone was giving you their this especially useful for my children. When I ask, “What did you do address and you didn’t hear the today?” They often respond with shrugged shoulders or the onename of the street correctly, as in word answer, “Stuff.” When I change it to; “Tell me about your day.” “I live at 245 ‘urrrmm’ Street”, you I get a little more information.• would respond by asking, “You live at 245 ‘what’ street?” This tells the other person that you heard Questioning skills and types is one area in which Derek Good everything else okay – it was and the team at LearningPlanet can help you train your staff just the street name they need to by online training and support videos and modules. For more repeat a bit more clearly. information visit:www.learningplanet.me
www.learningplanet.me
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RESOURCECORNER
The Hybrid Sales Channel
How to ignite growth by bridging the gap between direct and indirect sales
T
he new book from global sales performance giant MHI Global gives you the best practices for combining direct and indirect sales channels to dramatically improve growth. The world of complex sales is going through significant changes. Large organisations are morphing their existing channel models to address changing customer buying habits and changing needs in their internal cost models and sales productivity. The outcome of these changes is the creation of more 'hybrid' channel models, where the traditional lines between direct and indirect sales are becoming very blurred.
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The Hybrid Sales Channel approaches market coverage with a fresh perspective and gives you the tools to effectively leverage your indirect and direct sales channels together in a hybrid approach to differentiate yourself in the marketplace. It reveals key best practices across industries that can guide you to immediate action to ignite growth.•
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By Rich Blakeman www.nzsalesmanager.co.nz
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Selecting and Implementing Your CRM
7 key steps Words by Tom Risbrook
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or more than 20 years Customer Relationship Management (CRM) systems have been helping businesses create more revenue by producing high-quality leads, giving the sales team a tool that helps them do more business and knowing more about customer needs. For any business 'Competitive Advantage' is superior understanding of the client and CRM helps organisations achieve this goal. CRM is generally now established as an essential component of a successful business, however not all CRM implementations are equal! There is still a relatively high percentage of companies that struggle to implement CRM effectively and surprisingly there are also still many businesses that don't have CRM. They exist
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on a poor diet of outlook, excel spreadsheets and brain capacity. The following article is designed to assist those organisations looking to implement CRM and is based on personal experience and observations gained from running sales teams and implementing CRM software for clients over the last 12 years.
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Clearly define why you need CRM. Why do you need CRM? This is a critical question and answers might include: • To sell more(e.g. generate more leads) • To build a database asset for the business • To retain the IP in the business and not the sales staff heads • To provide better service
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Get buy in.
People are a critical component for success and getting buy-in from the right people is crucial. Who are these people?
A. EXECUTIVE TEAM: Normally organisations that do well with CRM implementations are those that lead by example. Get the key stakeholders (e.g. sales director) actually using the software. If they • To enhance team collaboration are seen using it, there is a good chance that the sales team will follow. across marketing, sales and Ensure that the management team are fully behind the CRM project, service that communication with the team is transparent and that project • To build process and goals are agreed by the team as a whole. automation across the B. IT TEAM: This is an interesting element to any software organisation implementation. Does IT lead the business or does business lead Whatever your rationale, it’s IT? In my experience, this doesn't matter. Getting the IT team important to be specific about on board and committing to supporting the project is important. what you might want out of Even with cloud-based technologies such as SugarCRM and investment in CRM. Your business Salesforce.com, there is still a need for IT support, although this sponsor (your boss) is likely to is significantly less than for the more traditional on-premise CRM want to know that the money implementations. invested has been successful so being able to prove that the project C. ACTUAL USERS: Engage with the real users early and, if possible, make some of them part of the project team. Make sure that their has been net positive is crucial. perspectives and ideas are included in the project brief and ask Note that these are strategic goals them to lead by example with the other team members. and not specific tactics. • To build a better sales methodology
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3
Be clear about your specific requirements.
Cloud or 5 on-premise?
This is a theoretical question but quite an important one. There will be pros and cons for • I need better visibility of what the team are up to both, however, it’s likely that • I am finding it hard to accurately predict the revenue forecast cloud will be easier, cheaper and quicker. With the cloud, the • Marketing and sales don't seem to be working in harmony whole headache of maintaining • There is not enough cold calling hardware, software versions and • It’s hard to measure account based KPIs IT support staff has disappeared. • Leads seem to be slipping through the cracks As a sales manager, this is a whole set of worries that you can • Debt collection is hard to do probably do without. Software Make an attempt to document these issues and work out what the in the cloud is usually more potential financial benefits of solving them might be! Focus on value to secure than software held locally the organisation and value to the customer. Surprisingly you will find that and now that internet access is these are both strongly linked. These issues then form the basis for the so ubiquitous (both fixed and business requirements that the software vendors are likely to quote for. mobile) there is no excuse not to consider the cloud. Also, if you are interested in being able to control Take into account how the CRM system behaves the existing systems. then many cloud systems will let Your existing systems have probably been operational for a long time you easily make changes to the and there will be a lot of useful data that may be worth putting into the database structure. CRM system. Examples might include product history, revenue and This includes adding fields, gross profit figures, 30/60/90 day debt statuses, case/service history, creating objects, changing etc. All of this information and more allows your sales staff to add workflow, etc. However having value to your customers. said that if you go cloud, you are Without it they are blind! However, some existing systems may well be going to need to consider how to hard to access and even harder to integrate with so make sure you do integrate (real-time or batched) your homework properly. Note also that most transactional financial with the on-premise systems systems are capable of exporting Excel CSV data and this can often that currently exist. Again this is be pushed into the CRM system on a daily basis without any need for where to buy in from the IT team complex real-time integration. will assist. Focusing specifically on the business issues that you are trying to solve will be of value. Examples include:
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Measure success
Because implementing CRM is time-consuming and requires a significant commitment particularly from the sales team, it is crucial to: • Establish the means of measuring your progress on CRM initiatives. • Establish accepted measures of success and metrics that can be applied to all of your CRM initiatives. • Apply these metrics on an ongoing basis to ensure continued funding of your CRM initiatives. When trying to decide what metrics are most important, you need to identify those metrics that most directly impact the most important strategic objectives. These might include KPIs such as: • Are you tracking the number of leads generated or the number of qualified leads passed to the sales team?
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Start small, not big
Change management is generally underestimated with the roll-out of CRM and throwing too many functions at a business user can lead to failure. Instead, my suggestion is that you focus on developing a strategy to phase in features and functionality. If you have some quick successes, it’s then going to be much easier to roll out enhancements and it also keeps the users interested! Crawl, walk and then run, not the other way around!
• Are you tracking the growth of sales opportunities or the opportunity conversion rate? Which one is more important? • Are you tracking the cost per lead or the cost per sale opportunity? • Are you measuring leads per campaign or ranking campaign effectiveness among all campaigns? • Are you tracking outstanding opportunities or the opportunity to order conversion rate? • Are you tracking how long opportunities stay in 'stalled mode' • Are you tracking the activities that advance the sales cycle? Give yourself a time period over which to measure the success of the new CRM project and use the CRMs reporting functionality to achieve this. If you find that success isn't immediate, don't give up. Dig and investigate to find out why things aren't working and then adjust where necessary. In summary, CRM projects are challenging and fun. The key element of any CRM rollout is to know why you are making the change and what specific issues you are trying to solve. Once this is understood by you and the management team, the project will become much clearer!•
www.cloudtech.co.nz
Tom Risbrook specialises in the implementation and support of Cloud Based CRM and marketing automation technologies for small to medium businesses. To find out more visit www.cloudtech.co.nz www.nzsalesmanager.co.nz
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Why Did You Buy? A Deceivingly Important Question To Ask Clients Words by Sean D’Souza
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henever we sell a product or service, we forget an important question. The question is "Why did you buy?". So why is this question so very important? It’s important for several reasons: 1. It validates the purchase decision 2. It gives you an understanding into the trigger 3. You can manage expectations better
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First let’s start with the purchase decision Whenever we buy something, we’re usually faced with a bit of buyer’s remorse. This buyer’s remorse kicks in, while higher in a pressure situation, nonetheless shows up in a low-pressure situation as well. And in asking the client why they bought a product/service or a course, you’re asking them to write down their reasoning. The purchase moment is very emotional. While all of us give a logical explanation why we bought into a product, the reality is that the purchase is emotion-based. We know this to be true, because if two people offered the same product/service, you’d choose one over the other, purely on emotion. But there’s logic too. And when customers write back, they give you both the logic and the emotion. And in doing so, they confirm to themselves that they’ve made the right decision.
It’s one thing to think about making the right choice. When you write it down, you have to think it through. And that makes a customer more likely to ratify their decision to buy. This is no doubt good for you, as a seller. However it’s also great for the customer, because once they’re clear about why they bought a product/service, it strengthens their resolve to consume it. And when they consume it, they get greater value from their purchase. If that were the only reason, that would be reason enough. But there’s a second reason as well, and it’s called 'the trigger'. So what’s the trigger all about? When we write sales copy, we’re not exactly sure which part of the copy resonated most with the customer. And yet, when you get a response from your customers, you’ll find there’s a clumping up towards certain points.
It’s one thing to think about making the right choice. When you write it down, you have to think it through. And that makes a customer more likely to ratify their decision to buy. This marketer was sure that he’d done all the testing possible. But just for the heck of it, decided to ask clients why they bought the book. And there, in the middle of his bullet points, was the prime reason. They bought the book because he was “showing them how to buy a car at $50 over the dealer’s price”. That information alone was worth the price of the book many times over. But the marketer wasn’t aware of the power of that bullet point. Once he was aware, he could take that bullet point and move it to the headline - thus ensuring even greater sales. And when you ask for the trigger, customers will come up with other reasons too… For example, when we asked customers why they signed up for the Info-products workshop, here are some of the points. • What should be in our 'Company bible’? • How to systematically break that down into information products. • Where do we start? • What’s the process that we can follow?
• How do we know what people will pay for and how You’ll find over time, that much they will pay? customers seem to be repeating • What’s the best way to test before we build? the same thing over and over • Where to start and stop and how to know when it’s time to break again. And that 'same thing' off into a new product? may well be in your headline. Or it might not. Take, for instance, a • How to put the information together so it’s helpful and people want more. book on 'how to buy a car'. www.nzsalesmanager.co.nz |
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I don’t know if you noticed, but that list reads amazingly like bullets. Or potential features and benefits. And once you have an insight into what the customer wants, you can go back to your sales page and check if you’ve covered these points. You would also need to write at least a few e-mails or leaflets to sell your product or service. The points you receive from your client can be the basis of future e-mails and leaflets.
Once a client gets to the end of a service, or reads through a product and doesn’t find what they want, they feel cheated. They’ve spent time and money- but mostly a ton of energy. And they’re less likely to be trusting of your products and services in future.
The problem is often not rooted in the content. It’s rooted instead, in the expectations. Once a client gets to the end of a service, or reads through a product and doesn’t find what they want, they feel cheated. They’ve spent time and money- but mostly a ton of energy. And they’re less likely to be trusting of Remember when you visited a foreign country? You read all the your products and services in future. And you want them to trust you wholeheartedly. This is why you books, saw tons of photos and need to ask the question. The question brings up their needs and yet, when you got there, it was you can either head it off at the pass or include it in your material. somehow different. Heading it off at the pass is not easy. You have to let the client know I remember going to the Taj Mahal in Agra when I was about that the results they seek will not be available. And you let them know what they’re going to get, instead. 18 years old. I’d seen photos But there’s a third point why “why did you buy?” is important The third reason is simply to manage expectations
of the Taj, hundreds of times. Yet, when I was there, it was so much bigger, so much fancier than I’d expected. And your product can be fancier or less fancy than clients expect. 016 |
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Often a client is very happy with the fact that you’ve taken the time to speak to them, and whether they decide to go ahead or not, they will retain that positive memory of you in future. And trust will be gained. However, in many cases, you may not be covering what they seek. If you’re offering a service or physical, you can tag on an extra bonus (though that may not always be possible).
The good customers, the ones that are going to stay around for a while will be happy to answer your question about 'why' they bought your product or service. And in doing so, you’ll get a bounty of information and goodwill However, if you’re offering information, you don’t have to change your core information structure. e.g. Let’s say someone has read the book, The Brain Audit. Ongoing through their expectations, you find that they have questions that have not been covered in The Brain Really? This kind of petty Audit. So do you tweak the book? No, of course, not. customer is never going to be Instead, you can tag on with a follow-up PDF, audio or video — the customer you need or want. much like an FAQ (frequently asked questions). Yup, that will They will treat the product or solve the customer’s dilemma and give you the chance to create service with disdain, ask for too additional information without having to tamper with your core much and you can never, ever product or service. manage their expectations. Of course, you’re welcome to try, The 'why did you buy' question is very important because: but it will end in tears, that’s • It validates the purchase. for sure. So avoid these painful • Gives you a ton of selling points and trigger points, that you can customers at all times. use in your sales material. The good customers, the ones • Helps manage expectations, heading off issues at the pass, or that are going to stay around adding bonuses that solve the customers problems. for a while will be happy to However, there are exceptions to every rule and you see this answer your question about sometimes on sites like iTunes or Amazon. There’s this petty, idiotic 'why' they bought your product customer who wants to pay nothing and wants the world. He’ll say or service. And in doing so, you’ll something like, “I’m rating this product as a bad product because it get a bounty of information and is worth 99 cents, instead of $1.99." goodwill. Cool, eh? •
www.psychotactics.com
Sean D’Souza helps you understand why your customers buy, and why they don’t. www.nzsalesmanager.co.nz
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TWOMINUTETOPUP
It’s Not Your L Prospect’s Job to Pick a Meeting Time Words by Kendra Lee
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ast week I received an email from a very friendly sales rep who was trying to schedule a meeting with me to talk about his company’s product. The messaging was direct and relevant, but it was how the rep closed the email that bothered me. “Here’s a link to my calendar. Is there a time that works for you in the next week?”.
This all ties back to the misplaced belief that flexibility helps build relationships with prospects and improves closing ratios. In reality, flexibility is a cop out, and it very often hurts your ability to close sales. On the surface, encouraging a prospect to check out your calendar and pick a time that works for them might seem helpful. But it annoyed me. As someone who works in the tech industry, and works with others who are very tech savvy, I’m not unused to seeing new ways of trying to improve personal productivity. But, frankly, I think it’s arrogant to assume that a prospect (or a customer, for that matter) will be willing to drop what they’re doing and hunt through your calendar to find a time that works for a meeting. If you’re the one doing the selling, then it’s your job to do that work, not the prospect. So, what’s a better solution? It’s not a new idea, but the better approach is to suggest two options for a meeting — preferably at different times of day and on different days of the week.
Either way, you’re simplifying the process for the prospect and avoiding the risk of offending them by asking them to do the work for you. Ultimately, this all ties back to the misplaced belief that flexibility helps build relationships with prospects and improves closing ratios. In reality, flexibility is a cop out, and it very often hurts your ability to close sales.
Instead, your goal should be to start relationships off on the right foot by showing That way, a prospect can quickly check both times on their calendar prospects that you’re willing to and see which one works best. If neither option works, and the work for them by confidently prospect is still interested in talking with you, then they’ll frequently delivering informed, relevant suggest an alternate day or time. recommendations. Yes, that even includes meeting requests. You win! Appointment scheduled. If you’re feeling bold, you might even consider sending calendar invitations for both times At the end of the day, you want to make things as easy as you suggested. It’ll only take your prospect a moment to click through to her calendar and confirm if one of the times will work, possible for the prospect, not turn them into your admin.• or suggest an alternative time.
www.klagroup.com
Kendra Lee is a prospect attraction expert who helps clients get more customers. www.nzsalesmanager.co.nz
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QUICKFIX
Disconnect to Get Things Done
I
n this world of ubiquitous instant communication, it is easy to fall into the trap of being tethered to technology – our smart phones, Ipads and email. The temptation to immediately respond to communication, and the inferred expectation that we will respond is likely to be consuming your time, and compromising your productivity. If you have some serious prospecting to do, follow ups to make or a key proposal to complete in the next hour, then focus on the task and don’t be distracted by technology. Turn your phone off and shut down your email, or, at least, turn off the annoying message alerts.•
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EVENTSCALENDAR
DATE
NAME
PLACE
COMPANY
31 March
Influence And Persuasion At Work
Auckland
PD Training
4 April
Sales Training
Wellington
PD Training
7 April
The Courageous Leader
Auckland
IMNZ
12 April
Key Account Management
Wellington
IMNZ
13 April
The 5 choices to extraordinary productivity
Auckland
David Forman
15 April
Presentation Advantage
Auckland
David Forman
19 April
Overcoming sales objections
Auckland
PD Training
20 April
Sales Management
Auckland
Geewiz
26 April
Sales Basics
Palmerston North Geewiz
26 April
Effective Sales Prospecting
Auckland
PD Training
DIDYOUKNOW 63% of attendees remember stories after a presentation. 5% remember statistics.•
Source: Linkedin Sales www.nzsalesmanager.co.nz
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THECLOSE
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