Telling prospects about the benefits of a product or service before taking the time to learn what they really want and need.

The remedy: Solution selling — investing time, before making sales calls, to understand every prospect’s situation, perceptions and problems.

When used effectively, solution selling will pique prospects’ interest sooner and increase the chances of closing.

But before preparing a sales call, salespeople must first determine the prospect’s level of interest. Chances are he or she will fall into one of these categories:

1. Latent. These buyers are not consciously aware they need your product or service. There are many possible reasons why they need may be latent. Maybe they tried to solve the problem before, failed, and became convinced it wasn’t worth solving. Maybe the prospect just doesn’t understand what your product can do. But whatever the reason, it will be difficult to make a sale if the pain remains latent. It’s important to point out that the problem is worth solving and can be done in a way that yields a high return on investment.
2. Visually impaired. These prospects are consciously aware there’s a problem but don’t see a solution — or don’t feel an urgent need to find one. In this instance, it’s a good idea to work to get the prospect to agree that he or she does have a serious problem before mentioning your products or services.
3. Looking for help. These prospects know they have a problem that needs to be solved but just don’t know who or what to turn to for help. That’s where you come in. Start by acknowledging their problem and explaining what you can do to help.

Adapted from “Customer Centric Selling,” by Michael T. Bosworth

1. Be focused. Put everything you’ve got into what you do every day.
2. Believe in yourself. If you don’t, no one else will.
3. Be tenacious.
4. Trust your instincts.
5. Maintain your momentum and keep everyone moving forward.
6. See yourself as victorious and leading a winning team.
7. Be passionate about what you do.
8. Live on the edge. Do not become complacent.
9. Leadership is not a group effort. If you’re in charge, then be in charge.
10. Never give up!

Do you think Trump’s advice is on target? What would you add to this list? Let us know in the Comments Box below.

Source: “Top Ten Tips for Success,” by Donald J. Trump, 9/11/09

1. They don’t like conflict. Salespeople don’t like conflict. And prospects and customers don’t like it, either. But closing involves some sort of conflict, when one party must ask the other party to take an action of some kind. What follows can include arguments, disagreements, stalls, objections, pressure or silence. Some salespeople are nervous about being too pushy and turning the prospect or customer off. But they mustn’t be, it’s part of their job — and buyers know that.

2. They forget that the “sales clock” has started and don’t slip into their role as a salesperson. Sure, a great way to start sales calls is to engage prospects in conversations about topics (unrelated to business) that interest them. But at some point during a call, the salesperson must slip into his or her roll as the salesperson — turning the discussion toward business.

3. They have trouble becoming high-pressure closers in the middle of a presentation. Some salespeople dislike traditional selling styles that put undue pressure on prospects, so they over-compensate in the other direction and end up not asking prospects to take any action. They back away, not asking for commitment. Salespeople who don’t ask for commitment may avoid the awkwardness of applying pressure to prospects, but they probably won’t close many sales.

4. They tend to not have enough irons in the fire because they don’t do enough prospecting. If salespeople aren’t constantly looking for new prospects to fill the pipeline, all their great closing strategies won’t do them any good. If salespeople aren’t focused on prospecting, having a great closing rate won’t matter — they still won’t be closing enough.

Source: Ted Barrows, President of Barrows & Associates, Bristol, RI

The notices kick off the first round of inspections for 2010, after U.S. Immigration and Customs Enforcement officers conducted 1,652 inspections in the last six months of 2009. The most recent notices went to employers in Alabama, Arkansas, Louisiana, Mississippi and Tennessee. Employers who receive a notices have three days to get their I-9 documentation in order for federal inspectors.

The fines for faulty documentation run from $100 to $1,100 per violation.

Note to HR and Payroll directors: Inspectors will be looking at paperwork for “recently separated” workers, as well as current employees. So make sure you have appropriate documents for employees who’ve left in the last few months.

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Did you hear the true story about the salesman who regularly regaled a customer with tales of his drunken escapades — until the customer told him he was a Mormon?

The salesperson apologized — and then asked, “How many wives do you have?”

That’s an “oops!” moment. And they can be funny — as long as they don’t happen on your watch.

Seven other real-life examples of the stupidest things ever said in sales meetings:

• “We flew to a client, and the head of the department came to the lobby to tell us that our key contact had died during the night. And my boss said, ‘Well, who’s her replacement? We flew up here and expect to present to someone.’”
• “I was working for Dr Pepper. A vendor catered lunch at headquarters. With Coke products.”
• An all-male ad agency team told the female marketing team that they understood tampons better than the women.
• A seller told a customer:  “What’s your title? We usually present to someone higher than you.”
• One customer said people often stereotype Southerners. Like the time a rep said, “When I hear your accent, I start deducting IQ points.”
• One manager dropped in on a sales presentation for a few minutes, and then she left. The rep then asked: “Your boss is smokin’. Is she single?”
• A customer was unimpressed when his name was misspelled on the first slide of the presentation. His name? Smith.

Source: “14 of the Stupidest Things Ever said in Sales Meetings,” by Jim Nichols

What’s the dumbest thing you’ve ever heard? Tell us in the Comments Box below.

Or will it make its way into the business world with legitimate time and money-saving uses? Here’s what we’ve gleaned from the expert chat:

For nearly a decade, there have been rumors that “tablet” computers are the wave of the future, the cutting edge of where users want to be. But none of those prognositcations or premonitions have been realized. The iPad will carry some of that baggage.
But workers who now turn to their smartphones for many routine business tasks understand the limitations of a small, pocket-held device have become apparent.
So when analysts say the iPad is the intermediate device between the laptop and the smartphone, they’re actually saying it fixes some of the problems with both.

Other potential business uses:
•    Conference room tool for notetaking and collaboration
•    Repository for reference books, tables and charts by engineers, lawyers and accountants
•    Tool for acquiring and using business and audiobooks
•    Portable unit for IT managers to access servers and computers remotely using apps already developed for the iPhone, but this time with a much bigger screen for their work (see related story, p.5)
•    Health care workers ability to chart patient information, access references or testing schedules without the kiosks or stations necessary with a laptop computer
•    Dynamic collaboration on documents using newly designed iWorks suite docs app
•    Built-in drawing tools that allow workers to create sketches of proposed plans or processes
•    “Show and Tell” features allow small scale presentations in meetings with co-workers or clients
•    As a tool for workers in the field who need to enter data easily and quickly without having to open and power up a laptop, and
•    Project management could be made more efficient and dynamic, especially if SaaS project management tools that use Web 2.0 technologies are used.

Beware! There are two types of customers who may be falling into the “slow pay” category. And they’re the last ones you’d suspect.

Now’s the time to talk to your CFO and Accounts Receivable manager to see if they’ve noticed this troublesome trend:

Many companies in all industries are now reporting major payment slowdowns from two critical groups:

• their biggest customers, and
• their “best” customers.

Not something any company can afford right about now.

And each group warrants a different approach to stop this in its tracks.

1. Big customers

Any companies that have large firms in their customer database will need to devote some extra time and attention to these accounts.

The biggest of the big companies are taking 5% longer to pay their suppliers than they did a year ago.That’s from experts out of REL Consultancy.

The kicker: These same businesses are cranking up their collections efforts to boost their own cash flow.

Turnabout is fair play here. True some mega-customers tend to call their own shots. But it doesn’t mean your business is powerless over your cash position.

You can do everything from simply highlighting payment terms on the next invoice and calling a few days before payment is due to adding finance charges to the bills (if your contract allows for them).

2. Best customers

Of course you don’t want to get walked on, but you don’t want to risk losing customers, either.

Especially if accounts have been good payers until now.

More and more companies are telling us that even their most reliable customers are now having trouble meeting due dates.

Make sure credit and collections people aren’t taking too hard a line.

The key: That  finance staffers are empowered to be flexible in how they structure payment arrangements with these particular past dues. You have a slew of options that your finance chief can offer.

After all, they were your best customers for a reason, and they probably will be again when the economy stabilizes.

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But it’s even worse when the customer walks because of a conversation that had nothing to do with business.

It’s easy to hit a sensitive area while attempting to have a friendly conversation with a customer. And that’s why experienced salespeople will always steer clear of certain topics.

Share this list of topic landmines with your newer recruits.

1. Personal problems. Conversations about personal problems can too easily be interpreted as manipulation to gain sympathy. They usually make the customer uncomfortable. It works the other way, too. If a customer is going through a difficult personal problem, it’s usually not a good idea to bring it up until he or she does. Sympathizing with a customer who’s being downsized or replaced can backfire if comments get back to management.
2. Politics. Unless it relates specifically to what you’re selling, customers probably have little interest in your world view. It’s a high-risk topic that can easily become emotional. The best advice is not to be drawn into political debates, either at the national or state level. Few customers are going to buy because you have similar political views, and many will cut you off quickly if they feel uncomfortable with your politics.
3. Other people. Complaining about your boss or your wife in front of customers is unprofessional. Gossiping about competitors will also do you no favors.

What other topics would you recommend salespeople avoid? Let us know in the Comments Box below.

Is it better to be a tough negotiator or take a softer stance during down economic times? Answer: There are times to be tough and times to soften it up.

The best strategy is usually to find some middle ground. But no matter what side of the fence you’re closest to, it’s essential to incorporate these six tactics:

Remove the negative filter

Sometimes salespeople and prospects negotiate through a negative filter. They’re suspicious of what’s being said and skeptical of others’ motives — feeling that someone’s trying to get the better of them. Too often this results in negotiations breaking down and ending without a sale.

Understand everyone’s objectives

Try to enter every negotiation with a clear sense of your own objectives and an understanding of your prospect’s as well. If you enter a negotiation with the attitude that you’re going to work with (not against) a prospect, your chances of success increase substantially.

Be flexible

As situations change, negotiation strategies may have to be adjusted. Negotiation isn’t a science or a war. It’s an interaction between a salesperson and a prospect. Economic conditions can impact the negotiation process, but they never change one basic premise — the result of any negotiation must benefit both parties. Staying flexible can save you from being trapped in a position that may cost you the sale.

Prepare, prepare, prepare

Preparation is the only aspect of negotiation over which you have complete control. If you’re not completely prepared for a negotiation, you put yourself behind the eight ball.

Do as much research as you can about not only what you’re selling, but the prospect, his or her business, the economy’s impact on the prospect’s industry, etc. Knowledge is the best assurance that you’ll be able to support your arguments, prevent surprises and come across as a top sales pro.

Set goals

It’s important to go into a negotiation with a clear sense of what the goals are you want to accomplish. Then determine which ones you’re not willing to budge on and which ones you’re willing to compromise.

Setting clear objectives before the negotiating process begins will help you make sound, disciplined decisions. If you don’t have clear objectives and the discipline to stick to them, it’s easy to bend under pressure — especially in today’s economy.

Focus on building trust

When negotiators trust each other, they share information more openly and honestly. They are more motivated to search for creative solutions by looking into alternatives and trade-offs that would benefit them both.

A successful negotiation is not about winning or looking for ways you can maximize your gains alone. It’s about seeking a way to harmonize your interests with the other parties involved. The first thing good negotiators do is find common ground and work from there.

Differences are not ignored. They are recognized and managed, but they should never be a driving force in the negotiation.

Adapted from “Done Deal: Insights from Interviews with the World’s Best Negotiators” by Dr. Michael Benolie

A lot of credit card holders already know there’s a new law on the books which requires lending institutions to break down how much borrowers would need to pay each month in order to completely erase their debt within three years. Lenders are required to post the breakdown on the front page of every billing statement.

The objective: Alert borrowers to the fact that submitting minimum payments every month actually leads to escalating debt, additional fees and possible penalties further down the line.

Great, right?

But there’s just one problem — a lot of consumers pay their bills online these days, and credit card companies aren’t required to post any such breakdown front and center on a card holder’s online account. In order for most online customers to see such a breakdown, they’d need to download a PDF copy of their original billing statement.

Bank of America, Chase and Citi Group defend the action, saying they’ve alerted customers of the changes via e-mail. Capital One is actually providing a temporary banner across the top of the login page, so online users are sure to know about the changes. Citi has added a button to its billing page, alerting customers to click and find out how to resolve their debt within three years.

But these are short-term measures, at best. And there’s still no word on whether the Feds will push for tighter regs, which extend to online billing.

The question is, whether these new regulations will actually have an impact.  Has the Fed finally found a way to keep the credit card companies in check? Or is this just the latest move in an ongoing chess match between big banks and Washington lawmakers?

We’d love to know what you think in the comments section below.

Source: “New Credit Card Warnings Not as Startling Online,” by Candice Choi, Associated Press, 2/23/10

What industries are leading the pack in buyer trust?

More than one-third (34%) of consumers place a great amount of trust in soft drink advertising, according to a recent Adweek/Harris poll.

At the other end of the spectrum: Financial services, and yes, automotive companies are the ones buyers trust the least.

Here’s the rundown of the top winners and losers in the poll. As you can see, there are some industries on both sides of the fence.

Most trustworthy:

• Soft drink companies 34%
• Fast food companies 22%
• Pharmaceutical companies 18%
• Automotive companies 14%
• Financial service 13%

Least trustworthy:

• Financial services companies 38%
• Pharmaceutical companies 29%
• Automotive companies 19%
• Fast-food companies 10%
• Soft drink companies 4%

Would you make any additions — or subtractions — to either of these lists? Let us know in the Comments Box below.

Lombardi believed that to be great, you had to be great at fundamentals like blocking and tackling, so they were the primary focus of the Packers’ practices.

The same principle

The same principle applies to sales presentations. Salespeople who execute the fundamentals well put themselves in the best position to close sales. How can they distinguish themselves from the competition when what they’re offering is so similar? That’s the most critical question they can ask as they prepare to deliver a competitive sales presentation.

Setting themselves apart

Setting themselves apart from the competition is hard, especially in today’s tough market. How can they make the prospect see that their solution is the best choice while the competition claims similar capabilities?

Five presentations pointers

Here are five presentation points that may help salespeople stand out in the eyes of prospects. Share them with your salespeople:

1. Focus on the prospects’ business problems. Your prospects are not interested in your firm’s history or your business experience. They are primarily interested in what you can do to help them solve their business problems. The best presentations propose a solution. A recent study shows that less than a quarter of sales presentations propose solutions to the prospects’ problems.
2. Try to organize your message by asking yourself what three things you want prospects to remember at the end of your presentation. Make these points the focus of your presentation, using stories and illustrations to bring them to life. Clear messages will separate you from 90% of your competitors, who have no clearly identifiable points.
3. Show passion for your product or service. Some salespeople fail to speak with real passion, especially during difficult times. Attitude drives behavior. We move in the direction of our thoughts. We behave as we believe. What we feel on the inside, we generally demonstrate on the outside. That’s why pessimists don’t last too long in sales. How you look and sound matters enormously for successful presentations.
4. Involve prospects in your presentations. One of the best ways to ensure that you connect and bond with your prospects is to make your presentation interactive. Try to turn your presentation into a conversation. In  conversations, you’re responding to your prospect’s concerns. Hidden objections may come out. You set yourself apart by letting your prospect see how you solve problems and how well you understand their business.
5. Avoid making the presentation too long or too detailed. If the presentation is too long, the prospect may lose focus and get bored. How many times have you ever heard of a presentation that was too short? If too many facts are presented, the main point may be obscured. How many times have you sat through a presentation and wondered what it all meant.

Adapted from How To Win A Pitch (Persuasive Speaker Press, Atlanta, GA) by Joey Asher. Mr. Asher is an attorney and sales coach and consultant.

1. Post your own competitive breakdown on each product’s Web page (e.g., price, features, benefits, ROI, etc.). This will show prospects how you offer more value. Plus, it allows you to control the comparison process. More importantly, it keeps prospects on your site. Once prospects leave your site to research a competitor’s product, chances are slim they’ll return to buy from you.
2. Offering something in return for registering (e.g., a free e-newsletter or one-time discount code, etc.). It’s an age-old principle: attract more prospects at ease by presenting the registration form as something that’ll entitle them to privileged information.
3. Keep the registration form as simple as possible. The more involved the registration process, the more prospects will be inclined to quit without completing the form. Only ask for the info you absolutely need. Once you have a name and e-mail address (or phone number) you’ll have plenty of other opportunities to collect more info. A good rule: registration forms should take no longer than 30 seconds to complete.
4. Offer a search option on your Web site. If prospects can’t find what they’re looking for quickly, they’ll leave your site and go straight to Google. The simpler navigation is, the more likely prospects are to stay (and hopefully buy from you).
5. Monitor “error/page not found” messages. Every time prospects land on an error page, it increases the chances they’ll leave your site. If possible, work with IT to make sure “error/page not found” messages don’t pop up when a prospect’s search fails on your site. If a search yields no results, make sure something pops up on the page — whether it’s a listing of your most popular products or services, or suggestions on how a prospect can refine his or her search.
6. Track which pages prospects view. Then develop a process that forwards that info to sales reps ASAP — so reps have valuable info they can use to follow up with prospects who leave your site.
7. Monitor/increase your visibility on search engine pages. Make sure to keep an eye on popular search terms here, then see if there’s any reasonable way to incorporate them in your Web copy to boost traffic. In addition, distribute online press releases, and encourage bloggers and consumers to post reviews of your products on their sites. The more attention your brand generates online, the more it’ll appear (and the higher it’ll rank) in Web searches.
8. Expedite the checkout process. Make sure buyers can get in and out quickly without getting caught up in unnecessary forms, survey questions or other distractions. If they’ve already registered, for example, make sure they don’t have to enter the same info again.
9. Offer product suggestions. More than 70% of Amazon’s sales last year came from products that were suggested by the company based on other customers’ past buying history (“132 people who bought X, also bought A, B, and C”). Lesson: Use other customers’ buying history to identify products/services new prospects may be interested in. It’s an extremely valuable and underutilized way to cross sell/upsell.
10. Develop a community. Some companies maintain one or more industry blogs on their site, others set up message boards, and some encourage product reviews from customers. These are all valuable ways to draw top-quality prospects back to your site on a daily basis. The more people view your site as a resource, the more they’ll be aware of limited-time offers and other promotions. Giving buyers a reason to come back to your site, that doesn’t necessarily have to do with buying products, is a great way to boost loyalty and earn buyers’ trust.

Adapted from “15 Tried and Tested Tips To Increase Online Conversion Rates” by Michelle Strassburg

The survey, conducted by Pricewaterhouse Coopers, showed a 16% leap in CEO confidence between last year and this year, including 31% of CEOs who said they were “extremely confident” about their business prospects this year.

A similar poll, conducted as part of Forbes 2010 Small Business Owners’ Outlook Survey, revealed:

• 64% of CEOs plan to invest more aggressively this year
• 50% definitely plan to invest in growth and expansion
• 46% hope to pursue new or different revenue streams, and
• 41% plan to add to their staff

All of which is good news, but may be offset to some degree by the following:

• 80% of CEOs plan on continuing to seek out ways to cut costs over the next three years, and
• 25% said they plan to make additional staff cuts.

The sense of cautious optimism is mostly due to two outstanding fears most CEOs share:

1. The global economy will slip back into a downward spiral, resulting in an economic meltdown worse than the one we’ve already seen, and/or
2. Over-regulation will make it nearly impossible for companies to grow or diversify at the rate they otherwise could.

Which side of the fence do you fall on? Will the economy be back on track by the end of this year, or are the latest regulations and bipartisan politics forcing us into an even deeper hole?

Feel free to share your thoughts in the comments section below.

Source: “CEO Confidence Rebounds With Global Economy, Davos Survey Show,” by Simon Kennedy, Bloomberg.

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The question prospects want answered now: “Where’s the value?” And if your salespeople don’t make the value of doing business with them clear, prospects will go elsewhere.

Here are 6 tactics that’ll help your salespeople meet the value requirement:

1. Offer help. What customers need more than anything else is help with innovative ideas. Be their sounding board. You’re the expert. If you can’t be of assistance, you probably won’t get the business. Show them you can deliver more than a product or service.
2. Make every presentation valuable. Don’t just drop in on customers. Have a clear purpose when you ask for a meeting, and make sure the customer agrees that the meeting’s worthwhile for him or her.
3. Answer communications. Prompt, clear and complete telephone and e-mail responses send the message that you’re timely and efficient — qualities that’ll set you apart from the competition.
4. Keep your antennae up. It’s easy to get blindsided in tough times like these. So listen and wait for customers to reveal their concerns and fears. Then make sure sales presentations speak to those issues. It sends the message that you’re in sync with buyers.
5. Show customers ways to reduce costs. Don’t assume your customers already think you’re looking for ways to save them money. Stay alert for cost-cutting solutions, and let customers know immediately when you’ve found something that’ll help them. It’s also smart to remind customers periodically that you’re always looking out for their best interests.
6. Tighten your schedule. Giving customers proper attention takes time — and that means making sure you touch base with them regularly.

Source: Steve White, Public Relations Manager, Graham Associates, Quincy, MA

Instead of forcing the whole country to share in the pain of dealing with climate change, three Senators think they have a better idea, one that could actually win Senate approval. A new climate change bill from Sens. Lindsey Graham (R-SC), John Kerry (D-MA) and Joe Lieberman (I-CT) will target:

• coal-fired power plants
• industrial facilities, and
• transportation.

The heart of this cap-and-trade replacement plan is still to jack up prices for energy generated from fossil fuels. Reason: Higher prices for coal-fired electricity are critical to making wind, solar, biomass, geothermal and nuclear energy commercially viable.

The Senate trio is trying to pitch their new legislation to make American energy independent because, as Sen. Graham told the New York Times, “We are more dependent on foreign oil today than after 9/11.”

Coal-fired power plants will be the first targets of the Graham/Kerry/Lieberman plan. They’d face a GHG emissions cap that would be gradually tightened over time. No details yet on how, or even if, there would be any GHG emission credit allowances given or sold to power plants.

Some years after power plants are regulated, the bill would phase in GHG emission reduction mandates for industrial facilities — such as oil refineries, chemical plants, and pulp and paper mills.

Gasoline and diesel fuels would be hit with a carbon tax to generate revenue the government would then use to subsidize highway projects and electric-car infrastructure, and to defray costs for those hardest hit by higher electric bills.

The feds would also use revenue collected from these carbon taxes to fund alternative energy projects, particularly nuclear energy, as well as carbon capture and storage technologies.

Why is Sen. Graham so interested in alternative energy projects? Clean energy projects mean jobs and a future in South Carolina. General Electric builds all of its wind turbines in Greenville. Graham is also promoting his state as a home for manufacturing nuclear energy and biomass technologies.