The Art of the Sale
In today's economy, bright ideas are what it takes to land a sale. So we went to the source--to salespeople at super-successful companies--to provide you with surefire tips for selling.
URL:
http://www.entrepreneur.com/magazine/entrepreneur/2003/august/63240.html
Customers aren't buying. Sales cycles are longer and more
complex. Welcome to the world of sales in 2003. For you and your
sales team, selling isn't as easy-or as fun-as it was just
three years ago. In fact, for many salespeople, selling has become
an exercise in pain tolerance.
"The demands on salespeople today are greater than ever
before," says Joe Galvin, vice president and research director
of CRM strategies for Gartner Inc. "The bar has risen.
It's not just a more competitive environment, it's an
environment that requires greater skill."
When you wake up at 3 a.m., anxious about a morning sales call
that will make or break you for the quarter, you might wonder how
the great salespeople not only make but also consistently exceed
their numbers. Well, we sought out top salespeople navigating the
trenches at well-known companies to find out how they sell. What
goes through their minds as they make a sale? What's their
process? How do they land customers? Whether you're selling
wholesale, retail, B2B or technology, you'll see the sales
process through their eyes-and get their top tips for generating
more sales.
Selling Retail
It's a tough market out there, but not for Kathy Williams, a
top salesperson in Charlotte, North Carolina, for women's
clothing store Chico's, which has about 400 stores nationwide.
"On a good day, I might make three big sales," says
Williams, 47. This may mean an $1,100 sale, a $900 sale and a $600
sale all in one morning. "A lot of customers look at me and
say 'I just came in for a belt, and I'm leaving with a bag
full,'" she says. Here are her tips for bagging the
sale:
| Become a Sales
Superstar |
| We culled the best of our
archives to bring you the definitive guide to pumping up your
sales. Start selling
now! |
1. Beat a cold greeting. Many retail salespeople struggle
with the "I'm just browsing" rebuff. Williams asks
"Have you shopped with us before?" as an opportunity to
reveal her knowledge of Chico's product line. Williams wants to
know why a shopper came into the store. "If a customer says
'I'm just looking,' well, what is she looking
for?" Williams says. "You're just trying to
trigger what's of interest to her."
2. Think for the customer. Once Williams triggers an
interest, she starts a dressing room and selects an outfit based on
that one item. Chico's doesn't put mirrors in its dressing
rooms, which puts Williams front and center with the customer.
"I don't consider myself a salesclerk. I'm a wardrobe
consultant," she says. "I take the thinking out of it for
them." Williams takes notes on each customer after a sale,
then follows up with a call or a handwritten note.
3. Attack the sack. Williams sees opportunity in returns,
a philosophy she calls "attacking the sack." She finds
out what didn't work for the customer and finds a solution,
which could be another color, another size or another look.
"Nine times out of 10, if they bought once, they'll buy
again," she says. "A lot of times, they end up buying
more merchandise. They may return $300 [worth] and buy
$500."
Selling B2B
Michael Minelli is a New York City-based media and entertainment
business manager for SAS Institute Inc., the world's largest
privately held software company with sales of $1.8 billion in 2002.
In his five years at SAS, Minelli has consistently surpassed his
quotas, averaging $2.5 million in annual sales and winning clients
like Sony and Time Inc.
1. Remember, it's about
someone else's job. In B2B, a bad multimillion-dollar
decision can be a career killer for the ambitious manager who's
making the purchase, and this fear colors the buying process.
"One of the key challenges is the implication to someone's
career. They're so emotionally attached [to the purchase],
it's a hard sell," Minelli says. "If you can't
show how you'll increase revenue and decrease operating costs,
you're out of the game. You have to pull [buyers] into the
process so they can articulate how this will add value."
2. Focus on first quarter. "With B2B, you're
asking the customer at every step for a 'go' or
'no-go' decision, and sales cycles are much longer-months
on end," Minelli says. "First and second quarter are the
magic months. You have to make it happen then if you're going
to close lengthy sales cycles within a fiscal year."
3. Don't sell a need; sell a vision. Minelli asks a
lot of questions: How does this potential customer generate
revenue? What is important to them, and where does our solution
fit? "Customers don't care if you make your quota,"
he says. "They're concerned about their side of the
equation. You have to find compelling reasons why this is good for
their company."
Chuck Bond, 47, is founder of COKeM International Ltd., a
3-year-old Plymouth, Minnesota, wholesaler of software, video games
and accessories. COKeM's sales reached $130 million in 2002,
and its client base includes Best Buy, Costco, Disney, Electronic
Arts and Microsoft. "Right now, there's a shrinkage of
shelf space," says Bond, who's still very active in sales.
"You have to fight for your own shelf space or try to create
new shelf space."
1. Have a buyer's
mind-set. A retail buyer's biggest fear is using limited
funds to buy something that does not sell. Bond visits a few store
locations before a sales call to see where a retailer puts its
money. He also visits its nearest competitors and pulls on this
knowledge during his pitch. "Larger retailers aren't going
to tell you what they're looking for," Bond says.
"You have to tell them 'Here's what you're looking
for.'"
2. Customize. Retailers are competitive, and they
don't want the same thing as the next retailer. Bond customizes
programs as well as product displays for each of his customers.
"You have to bring them a margin opportunity or a theme sales
opportunity," Bond says.
3. Give them R-E-S-P-E-C-T. A lot of buyers don't
want samples and long-winded pitches. Bond's meetings can
consist of two minutes in a lobby, and he cuts his sales call short
and reschedules when he feels the buyer is too distracted to
listen. "Respect their time. Don't have your own
agenda," he says. "I've seen too many salespeople
fail by only thinking about their own agenda."
Selling Solutions
Garrett Boone, 59, is co-founder of The Container
Store, a Dallas-based retailer of shelving and organizational
supplies. Store sales are increasing 25 percent per year; sales in
2002 were $296 million, and $335 million is projected for 2003.
Boone and co-founder Kip Tindell, 50, remain active in employee
training and sales.
1. Don't compete,
collaborate. The Container Store's salespeople don't
work on commission, so salespeople from different departments will
work together to meet the needs of one shopper. Salespeople are
empowered to problem-solve. "It's a team approach that
amazes customers," Boone says.
2. Engage the customer. The Container Store's
salespeople are trained to notice the types of products customers
are looking at, or already have in their shopping carts. For
example, if a customer is looking at wrapping paper, ask if they
are getting ready for a birthday or a wedding. It's a
conversation-starter that focuses squarely on the customer and lets
the salesperson offer a solution. "We're trying to engage
them in a way that says, I can see you need help, and I'm not
going to ask a dumb question like 'Do you need
help?'"
3. Remember the man in the desert. The Container
Store's employees are versed in a philosophy called "the
man in the desert": A man crawls through the desert gasping
for water and finds a retailer who gives him a drink. Then the man
crawls away and finds The Container Store, where he gets water,
food and help in finding his family. Translation: Always offer
customers a comprehensive solution. If a customer is looking at
wrapping paper, she'll probably need a box, a bow, some tissue
paper and a greeting card to go with it. Says Boone, "If you
sell right, then selling and service are the same thing."
Good As Gold |
What does it take to be a rainmaker right now? We surveyed top
salespeople working for Entrepreneur's 2003 Hot
100 companies, and they told us their secrets to selling: Knowledge
"Ensure that your product knowledge doesn't overwhelm the
prospect but is applied toward solving the problems the prospect is
faced with. If a man is drowning, you wouldn't discuss the
relative benefits of your rope."
-Michael Anderson, salesperson for CaseStack Inc., a
logistics solutions outsourcing company in Los Angeles Enthusiasm
"If you want somebody to bleed, you've got to hemorrhage.
Translation: A salesperson must give it all to make a client take
notice."
-Cody Lee, director of sales, Ironclad Performance
Wear in Los Angeles Process
"Seek movement on every call you make. You'll save time
and increase your sales by pursuing prospects who will commit to
moving forward and weeding out those prospects that will not get
off the fence."
-Robert Monroe, sales, CaseStack Inc., Los
Angeles Integrity
"Clients are looking for four things: strong ethics,
responsiveness, problem-solving and enthusiasm. Add a strong
product or service behind you, and you create a formula for
success."
-Scott Fuqua, senior VP in sales for Midwest
Diagnostic Management LLC, a radiological and diagnostic
referral-management company in Mokena, Illinois Persistence
"Always go into a sale with a positive attitude, and be
confident you can earn their business. The minute you doubt whether
or not you can [sell] the person, you will lose the
sale."
-Kaine Smith, owner and partner of Advance Med LLC,
a medical staffing firm in Austin, Texas Relationships
"Focus on developing a win-win relationship for both the
company and the customer. The sales orders will follow."
-Larry Panattoni, sales, Servatron Inc., a Spokane,
Washington, company providing manufacturing services to the
electronics industry Fun
"Customers are real people, and real people love to have fun.
Run with this theory each and every day, and you are destined for
success."
-Jason Murphy, owner and partner of Falcon
Solutions, an electronics-components supplier in Roswell,
Georgia |
For three years, Alan Mayer, 29, was a top phone-based sales
representative for Dell in Austin, Texas, working largely with
entrepreneurs from small and midsize businesses making technology
purchases from $50,000 to $3 million. He was voted sales
representative of the year in his segment for two years in a row
and was recently promoted to field account executive. With
technology, "everyone's looking for value," Mayer
says. "People have a better understanding of technology than
they did five years ago."
1. Distinguish purchase price vs.
total cost of ownership. Today's technology customers look
at the total cost of ownership, from initial price and support to
downtime and depreciation. "With technology, there are
multiple factors to price outside of dollars spent on day
one," Mayer says. "The price is just one element of the
sale."
2. Stay flexible and knowledgeable. No two technology
sales are the same. Mayer stays flexible, responds to questions
quickly and keeps up-to-date on products. "Companies still
need technology. Selling is no harder than it ever was," he
says.
3. Understand value from the customer's perspective.
"If a customer needs a product and they're just deciding
who to purchase it from, it's different from a customer who
doesn't know they need to purchase something at all,"
Mayer says. He gets an idea of each customer's time frame and
goals, and whether they're working within a budget, so he can
propose products and a financing plan. "Realize that value is
perceived," he says. "You won't know what the hot
button is until you engage the customer. Meet customer needs where
they want to be met."
Selling a Service
Nick Elmore, 41, is a senior account executive for FedEx in
Oklahoma City. Over a 90-square-mile territory, he serves more than
500 small-business customers and constantly makes cold calls. Last
year, Elmore received FedEx's highest award, the Five Star
Award, and was also account executive of the year for FedEx's
Southwest region, which includes 65 account executives throughout
New Mexico, Oklahoma and Texas.
1. Don't talk, listen.
Elmore spends more time listening than talking. "So many
salespeople want to talk about what they have to offer. But you
have to know the customer's processes," he says.
"[Listening] is so basic, it's overlooked. But it's
the first step to respect."
2. Develop trust. Elmore finds signing a client can take
anywhere from a few days to six months. Along the way, he asks the
customer very targeted questions: What is the competition doing
that you want done better? What would you use our service for? His
goal is to build trust. "I imagine I'm an employee of [my
potential client], except FedEx pays my salary," Elmore
says.
3. Make a difference. Elmore wants to find a
cost-effective answer for each customer. "Right now, people
want solutions," he says. "Once you show them how to grow
their businesses, you have an open door."
Now go forth and sell!
Have You Got It? |
No matter what they're selling, top salespeople share common
traits. Want to see how you and your sales team stack up? Great
salespeople . . . 1. Are entrepreneurial. They
see themselves running their own business within a business.
"They're highly motivated, focused and organized,"
says Joe Galvin, vice president and research director of CRM
strategies for research firm Gartner Inc.
2. Have developed a process. "They've figured
out a process that has been successful for them to maintain their
success," Galvin says. "Then they execute against
it." 3. Think about clients, not quotas. "The best
salespeople focus on the customer," says Skip Miller, founder
and president of M3 Learning Corp., a sales management firm in Los
Gatos, California. "It's always about the
customer." 4. Sell solutions. Great salespeople see themselves
selling more than just widgets; they sell solutions. They tailor
their sales pitches to offer a clear solution that solves the
customer's problem. 5. Get customers thinking. Great salespeople can make
customers see value early on so they're selling themselves on
the solution. They're able to find "the catalyst for the
customer to move forward," says Sam Reese, CEO and president
of sales development company Miller Heiman, with headquarters in
Reno, Nevada. Stellar salespeople can also find this catalyst early
in the sales process. "Closing a sale starts really early in
the process." 6. Aren't afraid to get creative. "You have to
be creative. It's almost like putting on a show for
customers," says Michael Minelli, New York City-based media
and entertainment business manager for SAS Institute Inc., the
world's largest privately held software company.
"You're talking with them, finding out what their vision
is, then demonstrating [value] back to them." 7. Are on the move. The great salespeople "are still
going out and seeing customers and prospects," Reese says.
"They're crafting clear, valid business reasons to
meet." 8. Know when to move on. Great salespeople don't
waste time on dead ends. They're experts at targeting their
resources. 9. Stay current. They keep up with products, clients,
trends and what the competition is doing. 10. Love what they do. Top-grade salespeople are
passionate about their work. If selling isn't fun anymore,
incorporating tips one through nine might help you and your sales
reps get your mojo back. |
Chris Penttila is Entrepreneur's "Staff
Smarts" columnist.
Copyright ©
2009 Entrepreneur Media, Inc. All rights reserved.
Privacy Policy