Why? Why? Why?

I am working on a project for a client and we are trying to get down to the very reasons why prospects would want to use or purchase their products and services.

It's a worthy exercise. Clarity of purpose and creating intrinsic value statements helps people become interested very quickly.  And we all know time is becoming an issue for everyone- buyers and sellers alike.

While I was earning my Master's in Human Resource Development, we had a tool that we would use with organizations that were just entering a change effort.  The tool was simple and called the Five Whys.  The theory behind it is that when someone makes a comment- any comment- you simply fashion a response that asks the question "why?"  The dialog continues, but with each response, the answer is always "why?"  At the answer to the FIFTH why, you will have the core answer or reason for the comment.  The question essentially peels back the onion and cuts through the easy reasons to reveal the truth. With the truth, you can move forward authentically with the change effort.

It doesn't happen on the third or fourth "why?"- it truly happens on the fifth. 

Why is this important?  Great question.  Because often in sales or in daily conversation, we get "managed" by our clients.  They only tell us what they want us to know, and it may be a smoke screen to throw us off from what we really need to know to provide a better solution.  Or worse, it may the information you need to guide your company away from potential losses or damage.

There is a footnote to this entry.  The Five Why's, if approached in an aggressive way will have the ability to tick off your client.  It is uncomfortable for them to have the onion peeled back, and they may go kicking and screaming. Go slow, keep it conversational and non- threatening.  In the end, I think you each will find amazing things come from the clarity of the issues at hand, and how to move forward to solve them.

Good luck!

It really does take time...

I own another company named 6 Calls.  It's from a quick premise that it takes 6 calls (or impressions) before someone will make a sale (or buys).  Most sales people quit at 4 calls.

The number might have changed over the years, as I have often heard people say it now takes closer to 8 or 9 calls before they will make a sale.  Either way, it does take time. I was compelled to blog about this topic because I was reminded of the investment we make each month into prospects and we wonder if we are getting anywhere.  Sure enough, we look at the data- it is taking 6 calls to close the deal.

People need that much time, so it seems, to check you out.  They want to see you'll keep showing up.  They want to know what you know, who you know and how you operate.  All of that "trust" won't come to fruition unless there are multiple calls.  So, sales professionals, hang in there.  It's not you... it's them.  They need time to get comfortable with you and what you do.  I'm almost ready to include it as a "Natural Law" along with "People buy with emotion and justify with logic."

Finally, I need to remind sales and management alike on the application of said "natural law."  If I am on a 4 week call rotation, that means seeds today will be harvested 6 months from now.  Do the math if you are on a 6 or 8 week rotation.  This is EXACTLY the reason why sales people quit at 4 calls.  After calling on an account for 4 months straight and they haven't bought anything, it is easy to want to give up and call on someone else.  HANG IN THERE!  And sales managers- HANG TIGHT- IT'LL COME!!  You are not going to cheat the natural law of 6 calls, so accept it, manage for it and coach to it.  If after 6 calls you still have nothing and the account is still worth it, put them on a reduced call schedule.  

Perservere is the key to sales.  Stay in the game, at least for 6 rounds anyway!

Emotion and Logic

For years, almost 20 now and counting, I have been teaching, preaching and writing about one of the three laws of sales.  People buy with emotion and justify with logic.

It is such a simple law, but it is amazing to me how many sales people, and frankly companies in general, don't use this knowledge to create an emotional experience for their customers.  There are a few who get it.  Look at Starbucks for instance.  If it was just about good coffee, I'm not sure they would have a solid model.  It is absolutely about an experience.  The smell, the music, the paint on the walls, the furniture in the room- all adds to what you want in a coffee joint.  But we all know that example.  Not every company can revamp their footprint to create an atmosphere like our favorite coffee shop.  But there is something we all can do.

The law states that we buy with emotion.  So, why do your customers or prospects choose you? Did they find you on the web?  Someone refer them to you?  Are you the only game in town?  No matter how they got there, what are you going to do once they are there?  

Every member of every team has the opportunity to create an emotional experience for our customers- good OR bad.  We know them as "touch points."  I remember years ago hearing a story from "Neutron Jack" at GE. The story goes that he stood in front of all his shareholders and said "I spend billions of dollars on sales and marketing to bring the best messaging and talent to the market.  I spend billions of dollars on R&D to bring the best products to the market.  I spend billions of dollars on manufacturing to bring the highest quality products to market. But, if at any moment, from any employee at any level of the organization- the interaction with the customer is bad.  My billions of dollars go away."  That's the critical moment. Every touch point is a critical moment.

Creating great touchpoints does not start at the bottom of organizations.  It starts at the top.  Peter Drucker once wrote- and I'll paraphrase- fish rot from the head down.  If you are wondering if you can do better with your critical touchpoints, look in the mirror first.  How do lead my team?  How do I react? How do I claim my attitude everyday?  How do people see me?  A leader needs to be the change they want to see in others.  

You can spend billions or you can take the lead to make every moment with a customer, an incredible critical moment!

Selling Sex

I was in my local book store today and there was a title that caught my eye... it went something like Business Development and Sex.  It did what it was suppose to do- it caught my attention.  And, it caused me to reflect on what we know about who is buying products and services today.  Women.  

80% of all health care purchases and decisions today are made by women.  I work with practices everyday who are owned by men, set up by men, function like a man would want them to function (effecient use only), and when you leave the experience you can sometimes feel, well, man- handled!

If you want to maximize your optical department you are going to have to figure out how to sell sex.  The opposite sex. I STRUGGLE with some doctors today who are so focused on perfecting the "medicial model" when every day all we hear is how managed care is tightening the noose around their necks.  Margins are getting squeezed by HMO's forcing doctors to get creative on testing and coding in hopes of higher reimbursements. What percent of margin is actually falling to the bottom line for all this effort? 

Meanwhile, most doctors own a "retail space" that lives happily in front of their buidling yet garners little or no attention from its owners.  In a "normal" practice of about $1MM in sales, 60% of total revenues are driven off of medical, and 40% from retail.  So why is the retail space- which drives a higher margin of profit (typically) left to be managed by folks who know so little about marketing, merchandizing, sales or creating an exceptional experience for patients?

If I had a $1 million dollar business I sure would be making decisions that focus on those who will contribute to 40% of my income; women over the age of 50.  Men, sex sells... sell to women.

Welcome to the new KCo Site!

Thanks for making the trip to my new site!  I am always looking for ways to keep it fresh and interesting.  Over the last couple of years KCo has evolved, but still remains true to a few ideals.  

First, I remain committed to the ideals that the profession of sales, while some think very complicated, boils down to one simple premise: we need to have a "conversation." And, there is a process to having an effective conversation.  Second, as I speak and train across the US, I have learned one thing; as much as people have read selling books of all flavors and types, I am amazed that how little folks spend on honing the basics.  The basics are the foundation in which all others are built.  While we chase the newest fad in sales training, we cannot add to the founding principles of sales unless we are sure of our footing.  Third, no question the world has moved to Sales 2.0 (in some industries), and our "conversations" as sales professions need to change. However, it is all about what you say, how you say it, and the process you follow to earning the results you desire. 

KCo is expanding into three areas of expertise.  The two new areas are in marketing and leadership.  You will find blogs, white papers, links and other fun things in these two areas in the near future.  I have spoken and been published in these new areas, but haven't devoted much time on the site.  That will be changing in the very near future.  Also, look for a new voice on this blog as the company is growing to meet demands!

Thanks for checking out the new site.  Click on the Selling by Design button and view the videos that support my book of the same name! Thanks again for checking out the "New" Karlsrud Company site and please spread the word and check back often!