Qualify or Die...
Why Failing To Do So Can Kill The Sale.
As it appeared in the May 2008 issue of Oilheating Journal of Indoor Comfort Marketing.
This is the 3rd article in a series discussing the sales process...
Okay, maybe the title is a little dramatic. However, I stand by my firm conviction that failure to properly and adequately qualify a prospect and the opportunity during the sales process will more often than not kill your chances for making a sale prematurely or lead to the eventual and untimely death of the opportunity in the end, or even worse... not knowing what happened and why.
In the last article in this series we discussed the importance of pre-qualifying the sales opportunity before arriving on the call and the importance of qualifying the customer and opportunity once on the call.
With pre-qualification complete, the next component of the planned sales process, and considerably the most important part, is for the salesperson to do an excellent job of qualifying the prospect and the opportunity to maximize the possibility for making a sale and doing so to its fullest potential.
As always, as we proceed to discuss the sales process in this issue and future issues we will keep the end result in mind as we mentioned previously: At the end of an effective selling system you must find your prospects saying to you or in their mind essentially this: “I’d have to be a fool to do business with anyone else regardless of price.”
Only with the end in mind can we execute the planned sales process effectively (doing things right) and efficiently (doing the right things). So let’s advance to the next step in the sales process…
Most in-home salespeople mistakenly think that their presentation is the most important part of the sales process. In fact, so much emphasis is placed on presenting that salespeople feel they can actually win a sale based on their presentation. To compound matters, manufacturer-provided sales training is product-centric and most training available via industry associations and so-called best practices groups focuses on presentation skills of offering features and benefits and utilizes the consultative sales approach.
While consultative selling can be effective, and was arguably the best way to sell in the late 1980’s through the mid 1990’s, it has since been displaced by question-based selling as a means to sell in a manner that is more palatable to customers, is in alignment with their buying process, and conducive to closing more sales with higher average tickets and margins resulting in greater company and salesperson income.
Consumers hate to be sold, but they love to buy and own things. When it comes to upgrading or replacing their home comfort system, consumers would prefer to simply have the proper and adequate guidance from a salesperson in order for them to make the most appropriate informed decision for themselves, their family, their home and their bank account for the next 15-25 years (life expectancy of most systems in customers’ minds), or however long they plan to remain in the home.
By utilizing a question-based selling process, you are giving the customer a sense of empowerment and control while maintaining complete control of the sales call. The person asking the questions and not talking is always in control.
This is not the case with most salespeople who find themselves talking and answering questions while thinking that they are “educating the customer” because these salespeople live by the credo that “an educated prospect is my best customer”. I submit to you that an educated prospect will love you and tend to buy what you present somewhere else and usually for less (even if they mistakenly perceive it to be equal or comparable).
Sales are ultimately won or lost based upon the level of mutual trust and respect a customer has with a salesperson. From the customer’s perspective, trust, respect and the feeling of a relationship with a person that has their best interest at heart and in mind will yield more sales regardless of price. Absent of the relationship, customers will focus on commodity-based facts and try to comparison shop much like they tend to do for cars, appliances, electronics, etc. and allow brand, features and price dictate their purchase decision.
Thus, the salesperson hears phrases from the customer like: “I just want to compare apples to apples.” This is the kiss of death to the salesperson representing a premium priced product or company. You might as well give up and go home, because there is usually no sale here for you today.
This detrimental result (both to the company and the unknowing customer) occurs as the result of the salesperson miserably failing to distinguish themselves, their companies, and/or their recommendations from their competition with any discernable level of differentiation. As such, the prospect ultimately makes their own distinction based upon the only detectable or identifiable difference of any consequence or significance, which is usually price, in an effort to minimize perceived risk or loss, when in many cases just the opposite can be true.
Any company can match your company’s products, services, features, benefits, warranties, guarantees, and prices. The ONLY thing that truly differentiates one company and its offer from another are the people behind the offer and the trust-based relationship established with the salesperson, or not, during the sales/buying process.
As we learned in the previous article of this series of the sales process, trust, a relationship and perceived differentiation stem from focusing on the prospect, what they have to say and what is important to them versus what you have to say and think is right for the prospect or how and why your company and recommendations are the best.
Therefore, in order to establish differentiation in the customer’s mind (where it matters most), and at a level that leads them to the emotional and logical conclusion that doing business with your company is the right choice, we will use question-based selling to focus on qualifying rather than presenting to establish mutual commitments along the way to determine if the sale makes sense for both parties or not.
Regardless, you will get a decision to move forward or not from the customer once you have shared your findings, credibility, recommendations, investment figures, how they can pay for it, why now it the right time to act, and when the work can be completed. The key is not to leave the sales call with an open-ended level of mutual mystification where the salesperson and/or prospect are unaware as to what happens next after the quote has been given. In other words, these are the calls where the customer says: “We need some time to think it over. Give us a call next week.” More often than not these calls result in no sale and typically have an unknown final resolution or disposition, with the salesperson and company assuming the customer purchased elsewhere and/or not understanding the REAL reason why the customer purchased or chose to do nothing at all.
Sales are won or lost during the qualifying stages of the sales process when a salesperson either learns what it takes to earn the prospect’s business or not, since the presentation can only be as strong as the qualification of the prospect and opportunity. This is the sole manner in which a salesperson can ensure that their presentation will address exactly what the prospect needs to see, hear and feel to make a favorable buying decision.
Now that you understand success in sales won’t come from building a better presentation or sharing what you know, let’s turn our attention to the components in Step #2 of the planned sales process: The Opening, Introduction, and First Stage of Qualification.
With your scheduled prequalified lead or sales appointment, we recommend that you arrive on time as previously agreed upon with the company Sales Coordinator. On time is not fifteen minutes early and you are late when you knew you would be late, not after your scheduled appointment time. Be courteous and call ahead if you are running late. Apologize only once and please do not offer some lame excuse or false story.
Arrive at the home and park on the street (safety, weather, and length of driveway considered) as a sign of respect and so as not to block residents from getting in or out of the driveway or garage (this is one of my personal pet peeves). Make sure you are off the phone, primed, prepared and ready to go as soon as you park. Many customers will be looking for you and you do not want them to see you on the phone, combing your hair, checking your makeup, picking your teeth or nose, using breath spray, etc. when your attention should be focused on them.
Dressed professionally with your company logoed shirt and photo identification badge, grab your diagnostic tools [pocket clipboard, customer lead slip, survey form, notepad, pen/pencil, flashlight, measuring wheel, tape measure, 6 way screwdriver, ductulator, freebie (refrigerator magnet or grocery notepad), business cards, phone (off or on vibrate only), floor mat, table mat, shoe covers, gloves, and digital camera] and go. Please leave your flow hoods, blower doors, sales books, laptops in the vehicle for later use if appropriate.
Approach the home while being observant for issues that could affect the scope of work or provide insight to the customer’s buying habits. Pick up the newspaper and pull back the trash cans from the curb if applicable.
Knock on the door and step back so the customer can see you through the window or peephole. As the customer opens the door introduce yourself, the company you represent and confirm that you are there for your scheduled visit. Be warm, pleasant and smile. Shake the hand of all parties present as you enter the home (kids and pets should also be greeted) and be certain to get all first names (write them down at your first opportunity) and confirm that it is okay to address them by first name. I find that by offering my first name only the customer reciprocates.
As you step in the door, place your floor mat, wipe your feet, and put on your shoe covers. Some customers may tell you that it is not necessary to do so, but insist and state that anyone from your company that comes into their home would do likewise to protect their floors.
Most prospects will look to lead you to the equipment immediately. Instead, establish control by asking if you could sit and talk for a few minutes first so you can better understand what they are hoping to accomplish so you know what to look for when you begin your analysis. The prospect will always agree as it makes sense. Plus, you have taken your first step in differentiating yourself if they are getting competitive quotes as most salespeople go straight to the equipment, quickly issue an estimate and leave the home in less than 30 minutes.
As you walk through the house and sit down, exchange pleasantries and chat openly to break the ice. Be sincere and please DO NOT offer an off the cuff or insincere compliment such as: “What a beautiful home you have.” Customers see it as trite and a stereotypical sales maneuver. Rather, offer sincere and personal neutral comments and conversation throughout your visit about things the customer shares, things on display exhibiting their personal pride (photos, awards, kids artwork, hobbies, collectibles or collections, etc.) or things you observe that you genuinely care to discuss. This will help promote open communication and foster bonding and rapport and establish an area of commonality while building trust, credibility and the relationship.
Some important principles to keep in mind during your visit:
Seek to listen and hear versus talking and being heard.
Seek to be interested versus interesting.
Seek to understand before seeking to be understood.
Don’t trust your memory to everything. Ask permission to take notes and throughout the conversation and journey through the home “notice and note it” as important information is revealed.
After the brief introductory extraneous conversation, transition the discussion to why you are there by asking: “So, what prompted you to invite me to your home today?” The prospect will typically respond with an overview of the issues at hand. You can then respond by asking how they heard about your company and what about your company caused them to call. Follow-up by asking if they know somebody for whom your company has done work. You may have an ambassador to whom you can refer.
Segue into the process of asking questions as follows: “Thank you for inviting me into your home today. I truly appreciate you making time for us to meet and see if it makes sense for us to work together. I know your time is important and I want to respect that. I know when you spoke with (Sales Coordinator’s name) he/she told you we would need at approximately 60 to 90 minutes for our visit today depending upon the nature of the job and questions that arise. Are we okay on time?” (if the customer has not allowed enough time for you to accomplish the comfort survey and engineering analysis, you should reschedule the visit).
Once you have confirmed the time commitment, state: “I have a few preliminary questions so I can better understand some of the history and what has bought us to the present, okay? Then I can share with you the process and agenda for moving forward and determine if it makes sense to do so or not. And if at any point either one of us doesn’t feel we are headed in the right direction we can pull the plug and part ways, fair enough?”
This last step is an attempt at your first trial close to establish a mutual respect and commitment to expectations and open communication. Make sure you have a firm commitment before proceeding. If the customer objects, and they almost never do, say: “My greatest fear is that we are going to like and be comfortable with one another and at some point you may not want to move forward, or be okay telling me ‘No’, if that’s what you want to do. I just want us both to feel okay pulling the plug if we don’t think it makes sense to work together. That sounds reasonable, doesn’t it?”
You will be the first salesperson in their life that has told them it is okay to say ‘No’ and walk away. In fact, you also told them that you too can pull the plug and walk away. The relationship has to be mutually beneficial or it does not make sense and is not a win-win relationship. Customer’s understand business has to be fair and you are simply stating the obvious unspoken truth. This sets your first cornerstone of mutual respect and trust in the foundation of the relationship.
With your first cornerstone firmly in place, you can advance the sales call and relationship with further qualifying questions to better understand the prospect’s wants, wishes, needs, desires, concerns, problems, issues, pain, etc.
Ultimately, your job as a salesperson and buyer’s guide is to uncover all the needs (perceived or not), turn them into wants, turn the wants into must haves at an emotional level with logical reasoning, and have the prospect realize that now is the time to act. The prospect will do so sensing your heartfelt passion and integrity for taking the time to sincerely understand them and their needs and addressing them with the best interest in mind.
In the end, you will realize that you cannot ask for a buying commitment that is any larger than the size of the respect, trust and relationship you have established with the customer, and it starts at the front end of the sales process in qualifying not the back end in presentation and closing.
Next time we will conclude Step #2: The Second Stage of Qualification.
Until then, good luck and great selling!
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