1. An unprecedented wealth of product information which is readily available, making it much easier for prospects to do competitive pricing
2. Stiff competition forcing companies to continually improve products and services just to maintain their edge (or keep up), and
3. Highly competitive offers forcing sales execs to provide much more than just a generic list of features and benefits in order to earn a prospect’s business.

With so many companies vying for a prospect’s business, the role of the salesperson as someone who brings additional value to the table has never been so important.

Competitive research

Proactive salespeople adjust to these new challenges by doing their own competitive research. That way, they can anticipate any potential objections the prospect might have.

Competitive research also allows salespeople to pinpoint benefits they offer that an existing supplier doesn’t, which is a great way to gain the prospect’s attention early on in the selling process.

Overdelivering

Shrewd salespeople know one of the biggest keys to closing today’s prospects is providing solutions that help them overcome their biggest concerns.

But most prospects need to trust a salesperson’s expertise before they’ll feel comfortable discussing specifics about their problems or new markets they’re interested in targeting.

One way top salespeople earn a prospect’s trust: Going above and beyond, providing not only what the prospect asks for, but also other pertinent info and industry statistics (consumer reports, buyer testimonials, etc.). By underpromising and overdelivering, the salesperson sends a message that the prospect’s needs come first. Analyzing additional industry data may also identify new growth opportunities, which could cause prospects to view the salesperson as a valuable asset.

Boosting ROI

One thing that hasn’t changed about selling: Prospects still want to feel like they’re getting maximum return on their investment.

Salespeople can provide that type of assurance by suggesting consistent ways for prospects to generate additional revenue after the sale.

Example: When the salesperson’s company is launching a new product or service (or making changes to an existing one), the salesperson can discuss it in terms of how it might help buyers achieve their long-term goals. Forward-thinking salespeople share the same goals as their buyers, and — in many cases — that makes them ideal partners for mutually beneficial business relationships.

Based in part on the book Escaping the Price-Driven Sale by Tom Snyder and Kevin Kearns.

Also, companies that maintain on-site blogs generate more new leads than those that don’t, according to the new HubSpot study.

How so? Blogs give customers a reason to visit your website on a daily basis — to check for new posts or updates on existing stories.

Effective blogs build an online community where customers can exchange opinions and interact with one another (and the company) via comments sections.

The Key: Ensuring visitors register before leaving comments — enabling your company to generate high-quality leads on a daily basis.

The study also found several correlations between the number of posts a company leaves on its blog each week and its ability to acquire new buyers, such as:

• 100% of companies that update their blogs multiple times a day report acquiring new customers as a result of the blog.
• 90% of companies that update their blog at least 2-3 times a week are acquiring new customers.
• 58% of companies that update their blogs once a week acquire new buyers.
• 38% of companies that update once a month acquire new buyers.
• Only 13% of companies that update their blog less than once a month acquire new customers.

That means it’s critical to update your blog on a regular basis.

Other suggestions ripped straight from the research:

• Don’t use corporate blogs as a way to advertise products. Customers have to feel like your blog provides valuable insights before they’ll bookmark the site and come back on a regular basis. Write posts about topics prospects have a genuine interest in before promoting your brand.
• Encourage visitors to leave comments at the end of every post. Ask for their opinions, conduct surveys, and ask for feedback about new products and services. Engage visitors as often as possible. Doing so boosts the number of registered users you have, which boosts on-site traffic and increases the number of leads you’re generating.
• Send automatic e-mails to respondents when new comments are posted. It encourages debate, gives them a reason to check back and helps build your online community.

Info: “The State of Inbound Marketing 2010,” by HubSpot, February 2010.

Does your company maintain its own blog? If so, what strategies have you used to boost traffic and generate more leads? Let us know in the Comments Box below.

There are countless sales and marketing strategies that lead to success, but only one component that every successful sales organization shares.

That trait, according to a Global Innovations study, which analyzed more than 80% of companies worldwide, is buyer engagement — giving customers an active voice in company initiatives.

The study found sales organizations that solicit regular feedback from their customers:

• saw profits grow at a rate three times higher than companies that didn’t engage buyers.
• had 65% higher shareholder return (for publicly-traded companies), and
• enjoyed twice the return on spending and expenses.

With that in mind, here are a few strategies to keep in mind when engaging buyers in an ongoing dialogue:

1. Don’t try to engage all of your buyers at once: Target different segments, based on past buying history, SIC or region. It’ll provide you with precise feedback without inundating customers with constant e-mails or requests.
2. Create an engagement team: Have specific salespeople take ownership of buyer engagement issues, and be sure they report back to you regularly regarding their progress.
3. Step up your company’s social networking presence: There’s no better resource for engaging large segments of buyers instantly.

What does your company do to engage buyers? Share your strategies in the Comments Box below.

Source: “New Product Blueprinting” by Dan Adams

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

1. Plan ahead. Know ahead of time when you’re going to transition the conversation from small talk to business. Try not to wait too long to get to the real reason for the meeting.
2. Ask the customer to recommend a restaurant. Buyers feel more comfortable in places they are familiar with. But be prepared with the names of a few good restaurants in case the customer doesn’t want to make a recommendation.
3. It’s smart to meet at the customer’s office and drive him or her to the restaurant. It reduces the possibility of delays or cancellations.
4. Look for signals that the customer wants the meeting to wrap up. Lunches usually last from 60 to 90 minutes. Dinner meetings may last longer, but look for timing cues from your customer. You don’t want to overstay your welcome — or start to make the customer feel uncomfortable.
5. Before the meeting is over, recap what was discussed. It’s a good idea to schedule your next meeting at this time.

Tell us in the Comments Box below what works for you when it comes to meeting with buyers over meals.

Warren Buffett is one of the most successful entrepreneurs of all time. Here are three priceless sales takeaways from his keynote address at Berkshire Hathaway’s 2009 shareholder’s meeting:

1. “If you need to use a computer or a calculator to figure it out, you probably shouldn’t buy it.” A lot of sales organizations are rethinking their message and peppering prospects with charts and graphs that demonstrate long-term ROI. But most prospects just want a plain-English explanation of how you can help them cut costs or increase profits. Break it down. Keep it simple — it’s the only way to keep buyers engaged.
2. “You don’t want to be in a position where someone can pull the rug out from under you (or where you pull it out from under yourself).” Competitors are more aggressive than ever right now, eager for any chance to swoop in and steal away your buyers. Be sure salespeople maintain regular contact with customers, so issues are resolved quickly and they’re the first to know when someone else is trying to steal a customer’s business away.
3. “You’re not there to change people.” The selling process should always be less about your products and services, and more about the buyer’s needs. Find out where the pain is, and offer solutions that alleviate that pain. Remember, it’s a buyer’s market. And most buyers are inclined to do business with the salesperson who best understands their needs and can help them overcome their challenges.

So what do you think? Is Buffett on target or preaching old-school tactics in a shifting market? Share your thoughts in the Comments Box below.

Source: “A Back to Basics Weekend With Warren Buffett,” by Andrew Ross Sorkin, New York Times

1. Less reliance on finance/credit: The credit crisis had two long-term effects on business — tighter restrictions on borrowing and increased fear of revolving debt. As a result, fewer buyers are willing to accept (or secure) credit for purchases they cannot afford outright. So top sales organizations have shifted to offering payment plans that allow customers to “buy now, pay later” without the fear of sky-high interest rates.
2. Increased focus on price: The Internet gives buyers instant access to dozens of “low-ball” offers and major discounts. While some companies have responded by offering to “match any price,” top salespeople stand pat on the value of their offer. Offering to match a competitor’s price may send a message to existing buyers that the price of your goods is naturally inflated and you’ve been ripping them off all along. The best strategy is to win buyers is to show them the long-term ROI you can provide, rather than short-term savings.
3. More online buying: As more people warm up to the idea of buying goods and services online, companies need to adjust their strategies accordingly. There’s still no substitute for the human touch when it comes to winning big-name accounts or smoothing over a service issue, but buyers have come to prefer the convenience of making quick-hit purchases (or renewals) online. If your process requires too much effort, they may start buying from a competitor’s site.
4. Lack of brand loyalty: What’s been the result of buyers having instant access to a thousand awesome offers at once? A lack of brand loyalty, that’s what. Customers are bouncing from one product or service to another, pledging temporary allegiance to the company that can cater to their needs and/or provide the right price. Many companies have resorted to tossing out one-time premiums to woo buyers away from the competition. The solution: Focus on building stronger one-on-one relationships with buyers. That way when a competitive offer does come along, your customers will tell you about it, making you the first to know.
5. Changes to the buying process: Spending is tight, which is exactly why so many companies are enforcing new rules, like getting approval from a board of decision makers. Salespeople can respond by partnering with prospects early on to determine how their buying process works and what they can do to expedite (or simplify) the transaction.
6. Stiffer negotiating: Buyers are looking for the best deal possible, more so now than ever before. They’re learning to haggle or do competitive research if it means getting a better deal. A lot of salespeople have reacted by creating their own competitive analysis and offering it to prospects at the beginning of the selling process. This way they eliminate the need for prospects to research other offers, while presenting the information in a way that highlights all the areas where their products and services offer more value than competitors’.
7. More willing to rent or lease: Not only is it more difficult for most prospects to justify big-ticket purchases in this economy, but companies are also topping one another at a much faster pace these days — which increases the need for buyers to constantly upgrade their products. Smart buyers respond by leasing or renting products rather than making a major investment in something that may soon become obsolete.
8. Less want/more need: Vanity purchases are so 2007. Today’s buyers are dealing with much tighter budgets, which is why it’s critical for salespeople to focus on what buyers need, rather than what they want.

Adapted from “17 ways consumers are changing,” by Rick Newman, U.S. News and World Report, 1/15/10

Offering cash as an incentive isn’t exactly revolutionary, but several well-known banks have latched onto it recently because customers are just now receiving their holiday shopping bills and they’re eager for a slight monetary boost to start the new year.

Among the cash incentives banks are currently promoting:

• Capital One is offering a $200 bonus to any customer who opens a Rewards Checking account through Feburary 28th
• J.P. Morgan Chase is offering $125 to anyone who opens a checking account by January 15th, and
• Bank of America is offering $100 to anyone who opens a checking account before February 28th.

Offering cash as an incentive is usually a bait-and-switch tactic used to lock buyers into a long-term deal that maximizes the company’s potential for making money. The incentives banks are currently offering are no exception:

• To qualify for the Capital One and Chase promotions, customers need to set up direct deposit.
• To qualify for the Bank of America promotion, customers need to maintain a minimum checking account balance of $500.

Both of these terms were put in place to maximize the amount of money the banks hope to make by keeping these customers (e.g., direct deposit increases the chances a customer will stay with a bank for a prolonged period of time, etc.).

In fact, banks are so careful about protecting their investment that cash-incentive applicants have to pass an entire screening process, which includes credit and background checks. Only then can they be “approved” for an account (and the incentive that comes with it).

The takeaway: Cash incentives have tremendous potential for drawing new customers. But they could end up causing a major backlash if sales and service reps aren’t completely upfront about the terms and conditions attached to the deal. More importantly, companies need to take precautions to ensure they’re offering cash rewards to reliable customers who are sure to provide the company with a substantial return on investment long term. In other words, the odds need to be set up so that the house always wins in the end.

Can you think of any arguments for cash incentives? Against? Do you have any personal experience with receiving cash incentives as a customer? Feel free to share your feedback in the comments section below.

Source: “Banks Try to Lure New Customers with Cash,” by Aleksandra Todorova, Smartmoney.com, 1/8/2010

The three surveys, each conducted during the past six months, reinforce the idea that consumers are more determined than they have been in years to buy American – and that may be a major opportunity for new marketing and/or advertising campaigns.

Among the studies’ most important findings:

• More than 80% of respondents in the Yankelovich poll said buying American products is important to them (and 37% admitted they’d even be willing to pay a little more for such goods)
• Almost 40% of auto consumers surveyed by Gallup claimed they’d “only” consider buying cars from an American company, and
• While nearly 60% of respondents in the BIG Research study said they always make a conscious effort to buy American, 65% felt it was harder than ever to find reliable American companies to do business with, due to all the bailouts, bankruptcy and other problems associated with the recession.

Perhaps that final bit of info is the most relevant - nearly two-thirds of consumers feel a personal responsibility to buy American, but the biggest challenge they face is finding stable companies to do business with.

That’s a tremendous edge for companies that can refocus their marketing collateral, advertising and sales presentations to play up the “Made in the U.S.A.” mantra. It’ll draw prospects to your business, and boost loyalty by reminding them that doing business with your company isn’t only a sound investment, it’s a small way they can contribute to getting the American economy back on its feet.

Source: “It’s Getting More Difficult to Buy American” by Mark Dolliver, Sales and Marketing Management Magazine, 7/8/09.

There’s no one better at boosting buyer loyalty than these 10 companies. But what’s even more intriguing are the two practices they all have in common, and you don’t have to be big to implement them at your company.

PeopleMetrics recently released its annual customer engagement study, based on a year’s worth of research and customer feedback. According to the study, customers become “engaged” (i.e., devoted to a specific brand or company) based on consistent, positive interactions over the course of time.

The 10 best-in-class companies this year (in order):

1. Ritz-Carlton
2. Google
3. The Four Seasons
4. Netflix
5. Cartier
6. Armani
7. Newegg.com
8. Wegman’s Food Market
9. Coach
10. Costco

While most of these companies cater to a different niche, all 10 companies were found to have these two things in common:

Dedication to employees: These companies specialize in making sure employees take pride not only in their job, but in their commitment to the company itself (e.g., Ritz Carlton refers to all of its employees as “ladies” and “gentleman”). These companies also offer recognition, bonuses and incentives for employees who go above and beyond to make customers feel like their business is valued.

Quick and efficient handling of Service issues: The study revealed that one in four customers who experiences a problem never tells the company about it. Best-in-class companies avoid that by maintaining consistent, proactive contact with customers (e.g., Netflix asks for instant feedback about every DVD subscribers view and it also sends constant
e-mail surveys, encouraging feedback and asking customers to contact the company 24/7 if any problems arise).

The key takeaway: While the economy may make it difficult to woo buyers with discounts and one-time offers, engaging buyers is a proven way to boost loyalty and keep competitors from swooping in to steal away your best customers.

For more, check out a summary of the 2009 PeopleMetrics Most Engaged Customers Survey.

Whenever a new decision-maker comes on the scene, inform your managers immediately so they can give the account extra attention during the transition period.

Your major challenge may be to overcome the new buyer’s relationship with a competitor. It’s important to show the new buyer how successful the relationship has been and prove that it shouldn’t change.

Information like delivery statistics, cost reductions and testimonials from the former buyer and other customers may encourage the buyer to stick with you.

Here are three critical points to share with your salespeople:

• Find the new hot buttons. Since you’re dealing with a different decision-maker, his or her hot buttons may be different also. Mention the priorities of the predecessor but prepare to be flexible. What one buyer considers essential may be secondary to another. Listen closely and respond accordingly.
• Focus on service. Treat the new buyer the same way you would treat a new customer. Focus on follow-through and clear communication. New decision-makers need a lot more attention that regular customers.
• Satisfaction is still the key. The key to retaining customers when decision-makers change is satisfaction. Find out what they want and give it to them. Your job is to pinpoint these benefits and focus your selling efforts on them.