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The Cybersecurity of Banking and Finance

I’ve discussed the importance of cybersecurity in healthcare due to the extremely sensitive personal data and the loss of trust if hacked. If healthcare data and a patient’s trust is as sensitive as research shows, then it’s no surprise that the banking and financial industry is in serious need for anticipatory cybersecurity and digital data protection.

Banking Evolution

Up until the early eighties, transactions at financial institutions were handwritten, calculated long-hand, and done without the aid of a computer or calculator. Fast forward many years and not only can we make deposits and automate our bills to be paid online, but many employees of financial institutions are starting to work remotely as well.

Additionally, cash-out technology is replacing physical cash and check exchange. PayPal, Venmo, Zelle Pay, Apple Pay and many more make the exchange of money a social network of sorts with minimal or no fees, depositing straight into your bank account digitally without the bank’s physical presence or involvement.

A Breach of Banking Security

Whether you drive to a bank to withdraw cash or log into your Venmo account and deposit cash digitally, banking is a personal and serious subject. Keep in mind, a financial institution has every last little detail about our financial situations.

Historically, a security breach in a bank was a takeover robbery. These now pale in comparison to cyber crimes committed against financial institutions, where they take sensitive information and even your identity. Much like the healthcare industry, financial institutions are faced with thousands of cyberattacks every single day, with ]the financial reward much greater than cash.

One example of a big bank that suffered a massive attack was Capital One. A single weak spot in cybersecurity allowed cybercriminals to capture the personal information of over 100 million people and leak it to the world.

In the past year, there have been over 3,000 known successful cyber attacks against financial institutions according to the Treasury Department’s Financial Crimes Enforcement Network. In the case of the Capital One hack, their system flaw was described as a “configuration vulnerability” in its security software that compares to the tellers and security guards in past banking years all going to lunch with the vault wide open and a lobby full of people.

Time for a Change!

Anticipatory cybersecurity measures should be elevated at financial institutions much like the healthcare industry. Capital One’s hack is not the only large scale financial institution that succumb to hacking, as we saw with companies like Equifax and Morgan Stanley being attacked as well.

Banks and financial institutions implement cyber protection, but are they really safe? I know of several cyber companies that test for vulnerabilities in this industry and within 48 hours they gain access to everything the bank “assumed” was protected and safe. But cyber protection is ever-changing and in need of constant testing for new vulnerabilities, and unfortunately, the vast majority of current cybersecurity strategies is about reacting quickly after the problem occurs rather than an anticipatory one.

The Hard Trend that cybercriminals continuously find a way to outsmart the institutions should be used by banks to pre-solve hacking problems before they become a nationally reported disaster, and be anticipatory by using behavior analytics and other anticipatory tools to prevent a breach of security and the breach of trust.

Cyber Solutions

When hacking occurs repeatedly in an industry, trust breaks because the customer does not feel their personal information is truly valued by the institution.

Hackers love to take advantage of weak passwords or use emails loaded with malicious computer code that lets them get inside the network while others scan for out-of-date hardware and software missing the latest security fixes. Likewise, cybercriminals work around the clock, therefore the IT firm or internal IT department must be in place to do the same.

Anticipatory cyber strategies put the cyber education of employees as a priority, with an outside firm doing security scans on everything before the problem occurs, having all software scanned and updated regularly, and making sure spam filters are adequate in your company’s email system.

Free Perimeter Test

Because we see cybersecurity as a strategic imperative in protecting your future brand and reputation, we have identified best-in-class cyber testing companies that will provide a free perimeter test of your organization to check for vulnerabilities in your cybersecurity defense system, provide the results of their tests and recommend immediate actions that can be taken to stop any uncovered leaks in your system. If you would like a free perimeter test to check for vulnerabilities in your cybersecurity defense system, please contact us.

Ask for your free perimeter test at: https://www.burrus.com/perimteter-test-request/

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Best Practices Investing Management Marketing Personal Development Sales

When Sales isn’t Paid on Profits — You Get What You Pay For

If your sales compensation plan fails to reward building value — and then pricing to it — you’ll get exactly what you ask from your salespeople. And all the bad things that come with it —especially if you’re a sales leader.  Let’s explore the implications.

While you’re reading this, you have salespeople working hard to win business that you don’t want. A lot of that is because of your incentive plan. When your people aren’t paid to increase deal profitability, many won’t bother. Sadly, this is the sales leader’s fault.  Salespeople may not be fully coin-operated, and they certainly aren’t bad or lazy…but they’re also not stupid. A comp plan that promises that you won’t push them to work any harder for a deal than they have to, they’ll win deals the easy way: by discounting.

The Obvious Outcome: Profits

We’ve all heard that “Nothing starts until a sale is made”. Curiously, nobody brings up that “Everything ends when sales aren’t profitable”. I just painfully watched this outcome at a formerly-great company.  What a shame.

For those who have never managed a P&L, let me make it simple.  Every top-line dollar discounted off a sale drops off the bottom line as well (there is no change in any of your cost lines).  Pricing dollars are profit dollars.

Think about it another way: in a price war, the only party who wins is the lowest-cost competitor (and no, customers don’t win. Very few of them actually want the low-cost option). If that lowest-cost provider isn’t you, stop playing a game that you can’t win.   That means stop compensating discounting dysfunction.

If you don’t reward pricing to value, you’ll get exactly the profitability you’re asking for.

The Next Outcome:  Affording Differentiation.

Customers choose suppliers based on differentiation, which makes differentiation the lifeblood of business, sales…and the currency of every sales organization. It’s as simple as that.

Your company can differentiate in multiple ways:

  • Product/service fitness for use,
  • Product/service image,
  • Post-sale (I call it between-sales) service,
  • Availability/convenience,
  • Saving one or more customer costs,
  • Making the customer more competitive,
  • etc.
  • OK, and the lowest price.

Look back at that list. They all require resource investments to develop. Yes, even achieving long-term cost advantage (operational efficiency) consumes resources. Differentiation isn’t free, it’s purchased. If your profit streams don’t feed the investments that build on your differentiation, you’re hollowing out your company.

If you don’t reward pricing to differentiated value, you’ll eventually get exactly the level of differentiation you can afford.

Another Bad Outcome:  Sales’ Place at the Table

I hear sales leaders complain that they and/or their function doesn’t get the respect it deserves. As a sales leader, did you ever ask if you’re getting exactly the respect you’ve built?

Imagine people in any other department of your company, all of whom work hard to maximize profit.  Now imagine them hearing some knucklehead in sales saying “it’s the company’s job to make a profit at this price”…then then being backed by the sales leader (no, this isn’t hypothetical.  It happens.). If sales don’t work toward the same thing (profit) as everyone else in the company, why would their sales leader “get a seat at the leadership table”?

I’ve heard sales complain that it is “unfair to pay us on profitability”.  Remember: sales not only works with an unobstructed view to customer value — it’s the main job is building value in customers’ minds. Given these facts, does this “unfairness” complaint — from the one function charged with building and capturing value — earn the company’s trust? Executives’ trust?  Would an executive dare to bring anyone who claimed that “unfairness” in front of their board? Should such a sales leader be anywhere on the succession plan?

Conversely, imagine this alternate reality: Sales is the function consistently bringing new customer value insights back to the hive for commercialization: driving focused innovation, powerful differentiation, impactful marketing strategies, and confidently capturing profitable pricing that pays for it all.  Would a leader of such a sales function deserve “a seat at the table”?

If you don’t reward pricing to value, you’ll get exactly the respect you’ve earned.

Perhaps Worst of All:  You’ll Get the Customers You Deserve.

Price-sensitive customers are the least loyal.  Often they’re the most demanding, most costly, hardest to service, make your people the most miserable and stressed, and consume disproportionate resources. If your people aren’t able to — or aren’t paid to — capture value, you’ll find yourself winning the worst customers…the ones your smarter competitors are thrilled to let you win…and Barry Trailer will be right again.

If your salespeople aren’t paid to co-create value, they’ll end up co-creating apathy.

How Bad Is It, Really?

The odds are, you don’t even know how bad your problem is.

It seems that only a quarter of sales teams have any profitability component in their comp plans. And that’s only the top level of the problem.

Every company should have deep analytics that tracks pricing/discounting behavior, and very few do. The overwhelming majority of companies don’t even track how much they give away in discounts every year, much less how/where discount dollars are allocated.  Even fewer have a robust price exception/ discounting system. For instance, can you answer this for your own company: Are pricing exceptions based on objectively measured customer value, the whiniest salesperson (OK, the salesperson best able to game your system), most politically connected regional manager, or something else?

CEOs and CFOs:  Do you even track how many discount dollars you spend, and how they are distributed? Can you break down how discounting dollars (or gross margins) are distributed by salesperson, sales manager, customer, region, etc.  If not, you’re probably bleeding profit dollars without knowing it. Your cost of sales may be twice what you think it is.

If you don’t measure your pricing practices, you don’t understand them…and you don’t know how much they’re costing you.

Rewarding it vs. Doing Something About it

This article focuses on your compensation plan, but it should be apparent that comp is only one leg of a stool.  The stool topples without a solid comp plan, but also can’t stand if comp is the only issue you solve.

Other legs of the stool are more directly focused on how to sell value – the behaviors getting rewarded under the right comp plan.  Chief among these are training and ongoing coaching: enablement, in the current vernacular.

Once your sales team wants to consistently build, measure – and capture — customer value, a lot of powerful outcomes materialize.

  • More sales at more profitable prices, which funds even more differentiation.
  • Sales opportunity reviews that discuss customer value display selling expertise, which drives the credibility of the sales organization.
  • Clear & objective measurement of customer value can drive objective, precise pricing and discounting decisions. Your whole company can objectively see why a given discount was needed.
  • More accurate forecasts, which of course drives credibility of the sales organization

Want to talk about anything in this article?  Post it below, or if you want to have a deeper dialogue, contact me. As always, please like and/or share it with your networks.

To Your Success!

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Investing Marketing Personal Development Sales

Build Your Sales Capability From the Most Important Core

Every sales performance expert learns that adding rigor and process to average selling improves results.  Not nearly as many know what rigor and process won’t accomplish the most important thing.  The detail and rigor that methodology adds often diverts attention and management energy away from the real work of selling: getting a buyer to see value in your proposal.

I sold sales skills and methodologies for almost a decade, and have helped many companies implement them. I have lived in a methodology for a quarter-century. I’m rock solid in my support these tools, but I have also come to learn what they can’t – and don’t—do. Typically, they allocate training time and coaching energy about as shown on this inverted pyramid:

The bottom two represent selling progress.  Without that, everything else is selling motion: activity — with or without progress.  If your people are already good at the bottom two, the top items are a great refinement. If they stink at the last two, fix that before investing in process rigor. In fairness, some people think that building customer value is a skillset reserved for product training.  Not really, although there are some elements of product training that will help a salesperson build customer value.

That Sounds Radical, Mark. Can You Back It Up?

Let’s look at some research:

CSO Insights has just updated its list of the twelve behaviors that correlate with the highest-performing sales organizations (World Class Sales Organizations, or WCSOs for short). WCSOs are elite performers, with 23% higher win rates, 23% higher rates of quota attainment (they achieve success more widely across the sales force), retention is 7% higher, and they make revenue plan at a 5% higher rate.  Summary:  you want your organization to be one of these WCSOs.

Here are the 12 behaviors of WCSOs.  The organization scheme is my own.

Organizational alignment around the customer journey:

  • Sales, Marketing, & Services
  • Sales Operations, Sales Enablement, & Sales Management
  • Consistency Across Channels
  • Data strategy that aligns and coordinates all functions

Value Focused selling:

  • Mutually-valuable customer conversations
  • Purposeful, [value-evoking — my emphasis] customer conversations, using a call planning tool
  • Effective value messaging

Their People are a Priority:

  • A quality talent strategy
  • Use of formal assessments in hiring and performance management
  • Effective sales coaching
  • A culture of continuous development (vs. “train-and-coast”)

Plus one outlier:

  • A rigorous forecasting process. (I happen to believe in one particular kind of rigor: value-informed forecasting, but that is only a subcategory of this more general behavior CSOi describes).

Look at that list again:  Sales process and methodology don’t make the top 12 behaviors of world-class sales organizations. Playbooks aren’t there either. Your marketing stack is only a subset of value messaging. I’d venture to say that every one of those world-class organizations uses process and methodology, but so do average-performing organizations. The results as I see them:  customer value focus dominates the mix of WCSO indicators: it forms the backbone of at least nine of the behaviors and informs the rest.

Here’s another research tidbit specifically on value-building:  Rain Group has found that Value-Driving sales organizations have 20% higher win rates, and are 25% more likely to grow revenue.  There’s more, but you get the idea.

Bottom line: value-focused selling is more highly correlated with sales excellence than a fine consensus selling methodology.  Sales leaders, and sales enablement pros: what does that mean to you in your role? How might it affect your plans for 2020?

What’s at the Core of Sales?

Value is the basis—it’s at the core — of all commerce.  And sales. Perceived value determines if a prospect will open an email, click on a link, accept an invitation to meet, sit through a demo…or choose your proposal over the status quo. Insufficient value is what prevents transactions.

Since value is at the core of sales, you need to audit how effectively your salespeople build it in your customers’ minds.  I have bad news. Most salespeople are good at going through the motions you trained them to perform, but are not that good at building value in your customers’ minds.

Practitioners of multiple sales methodologies have told me the same thing over and over (and I’ve experienced first-hand in almost a decade of work with one leading B2B methodology).  Salespeople are pretty good at the methodology details (the vast majority of top-of-inverted-pyramid training/coaching time and energy you drilled into their heads…after which they somehow got the impression is the most important), but are sloppy about understanding customer-perceived value…the core.  Sure, each methodology labels it differently, but the failure point is the same: understanding, then building value inside a prospect’s mind.

Every sales force has the same challenge…so do probably most of your competitors.  What does that mean to you in your role? How might it affect your plans for 2020?

Put the Pyramid Right-Side-Up: Value As The Strong Foundation

The foundation of selling is changing perceived value of your offer as compared to any other option, including status quo. Don’t build sales process and methodology on a weak foundation.  Make you salespeople superior at understanding – then building — customer value. Build from there.  Methodology then becomes a force multiplier.

Oh yeah.  Once they are good at building value, they’ll be better at avoiding discounts. VPs of Sales, CFOs, CEOs and board members:  what does that mean to you in your role? How might it affect your plans for 2020?

I’m not anti-methodology.  I’m for getting the biggest bang for your buck.  I’m for adding value to your sales team’s adding value. What are you for?

Like or share if this resonates with you.  Comment below if the mood strikes you. Contact me if we should talk.

To your success!

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Entrepreneurship Human Resources Investing Management Marketing Negotiations Sales Skills Women In Business

“Reflection – Negotiation – What Is The Expiration On A Promise” – Negotiation Insight

 

“All promises have expiration dates. Don’t let yours expire without reaping its rewards.” – Greg Williams, The Master Negotiator & Body Language Expert (Click here to Tweet)

 

 

Click here to get the book!

“Reflection – Negotiation – What Is The Expiration On A Promise”

 

… They needed to increase their perception of power. So, they sought an ally to enhance that perception. They made a promise to support that ally’s efforts from that point into the future.

But when a new leader gained power, he abandoned his ally. The ally, upon reflection, realized they were pawns in their former partner’s game. They’d been betrayed and sold out because they no longer had the value they once possessed. Within their ranks, they asked the question, what is the expiration on a promise?

That question is one that you should ponder about every situation. Things constantly change. And thus, parameters formed in one alliance can alter a promise when people form other partnerships. So, if you feel the ground shifting, take note of where it’s flowing. That noted change will signal the possible need to develop new alliances. A promise will only last as long as it serves a purpose. To assess when it may begin to lose its commitment, consider the following.

 

Where you were

Knowing the environment a promise was made in, and the surrounding circumstances that led to its creation will give you a starting point from which to monitor its party’s commitment. Consider who the players were that entered into the alignment that made the promise. And, consider their source of power moving into the future. Making that assessment can serve as a bell-weather that indicates when you should consider forming new alliances. Being blind to such occurrences can leave you in a darkness that’s fraught with danger.

 

Your journey

As you reflect on the dilemma of lost trust, due to broken promises, think of the path that you and your allies have traveled. Consider what might have led or is leading to a separation of support you’ve provided for each other. Partnerships don’t dissolve overnight. There are always pending signs of potential danger. Look for them and heed warning signs on your path. Think about the variables that transpired that you possibly ignored due to circumstances that you didn’t want to consider or those that you intentionally chose to ignore. The purpose of that is to assess the mindset that you and your ally had as you traveled to the place that you now find the relationship. Ask yourself, what can I do now to increase my perceived value? Who might I align with to improve my position? And where might that alignment lead? You need firm footing to escape a slippery slope. Connecting with those that can extend support might be the support required to do just that.

 

Where you are

Now, you’re in a very precarious situation. Your most reliable ally has deserted you. And, you’re left surrounded by your enemies. What do you do? To survive, you must create new alliances. And you have to consider the trust factor. And you must ask, how long might a promise they make last? The answer that echoes back is, now is not the time to worry about that. You’re in survival mode.

If you want to survive, you must do whatever is required to sustain yourself. That may even include making alliances with the devil. Meaning, you may have to stretch very far outside of your comfort zone. But if survival is meaningful to you, you’ll do what it takes to prevent you from being taken by what you do.

 

Reflection

When you find yourself in a less than tenable position, due to broken promises, don’t be Pollyannaish. Look at your dilemma for what it is, not necessarily the way you want it to be. Everything changes. And as they do, they don’t have to leave you in a lurch. You can prevent that from occurring by being aware of shifting alliances and making sure that you’re aligned with powers that will remain powerful. Do that as long as an association serves your needs, and you’ll be less likely to be broken by broken promises … and everything will be right with the world.

 

Remember, you’re always negotiating!

 

Listen to Greg’s podcast at https://anchor.fm/themasternegotiator

 

After reading this article, what are you thinking? I’d like to know. Reach me at Greg@TheMasterNegotiator.com

 

To receive Greg’s free “Negotiation Tip of the Week” and the “Sunday Negotiation Insight” click here https://www.themasternegotiator.com/greg-williams/

 

 

#Promise #Expiration #Reflection #Negotiate #Business #SmallBusiness #Negotiation #Negotiator #NegotiatingWithABully #Power #Perception #emotionalcontrol #relationships #BodyLanguageExpert #HowToNegotiateBetter #CSuite #TheMasterNegotiator #ControlEmotions #GregWilliams #success #negotiation examples #Negotiation strategies #negotiation process #negotiation skills training #negotiation types #negotiation psychology #Howtowinmore #self-improvement #howtodealwithdifficultpeople #Self-development #Howtocontrolanegotiation #howtobesuccessful #HowToImproveyourself

 

 

 

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The Time Value of Selling Value

You are probably aware of the time value of money, but did you know that there is also a time value of selling value?

In the finance world, when someone talks about the time value of money, they mean that a dollar received now is worth more than a dollar received in the future.  This is true even when that future dollar is absolutely a sure thing.  The idea is that you could invest today’s dollar and have more money than if you had gotten one dollar in the future.

In the sales world, building value early in your customer’s buying process pays more than building value late.  A customer’s mind is more receptive to placing value on a solution before they have started on the price justification/negotiation stage of their buying process.  The time value of selling value holds true even if your solution is not fully defined, as long as an outcome they will achieve is.

Let’s unpack this by looking at how value builds in the customer’s mind.

Value is About Differentiated Outcomes

Customers don’t buy your product or service.  They buy outcomes.  Customers buy for their own reasons, not necessarily the ones you gave them to buy.

Every purchase decision depends upon a customer connecting an offer to an outcome they desire. No outcome, sale.

There are four kinds of outcomes, illustrated below:  Outcomes are either negative (pain) or positive (opportunities).  There are known/expected outcomes and those a customer hasn’t envisioned yet (but which a trusted advisor might open their eyes to). The old sales training advice about “uncovering pain points” covers only one of the four quadrants above (top left). Think of all the potential value you miss when all your salespeople do is go after this low-hanging fruit.   As bad as that sounds, it gets worse.  This quadrant is where all of your competitors swarm.  Differentiation is often minimal here.  When all competitors look the same, guess what the customer’s decision comes down to (spoiler alert: it involves getting ground down mercilessly on price).

Value is About Expected Outcomes

Also, customers don’t buy “you” (I get the value of credibility, but if your offer doesn’t accomplish anything for a customer, it doesn’t matter how much they “know, like, and trust” you).  Customers buy an expected result.  Thus, “expected” is where your credibility comes in.  Value, therefore, grows as faith in an outcome grows. Personal credibility and proof documentation helps builds belief/faith in an outcome…no more, no less.

Value also grows as the picture of that outcome becomes more clear and detailed — in the customer’s mind. Contrary to what “rational model” economic theory predicts, real customers don’t automatically hear an outcome described and engage in detailed self-analysis of all financial impacts of any individual outcome…much less all of the outcomes available.  Accomplished value sellers help prospects build detailed mental pictures…envisioning themselves achieving outcomes and follow-on outcomes. Some trainers call this “selling beyond the sale”.  Telling stories is a great way to kickstart this process, but personalization should follow.

Value, by Definition, is Desirability of Expected Outcomes

After envisioning comes evaluating the desirability of outcomes. Desire is good.  Strong desire is better.  Desire one can justify to one’s peers in a complex sale is…power.  Specifically, it’s pricing power.

Elite selling involves guiding a customer through a process of measuring the desire for an outcome monetarily.  Once desirability is measured in dollars, euros, yen, etc., value comes into full form.  You and your customer can confidently discuss price against a known, quantified value. Discounting is less frequent. More importantly, your price exception/discounting process becomes more disciplined and objective.

Timing is Everything in Selling Value

Selling value is the art of building a detailed, monetized picture of outcomes in each prospect’s mind.  Let’s look at the components of value-building at different stages in the customer’s buying process (aka the customer journey).

  • Imagine building credibility near the beginning of the customer’s buying journey.  Now imagine trying to build it late.
  • Imagine helping them envision unexpected outcomes early.  Now imagine trying to do it while they are comparing proposals against each other.
  • Imagine showing proof of an outcome early…versus doing it to combat discounting pressure.
  • Imagine asking them to envision all of the follow-on/related results early…versus late.
  • Imagine talking to a customer about the annual cost impact of some challenges they are experiencing. What does that feel like to a customer during discovery…and what does it feel like if you start exploring it during price negotiations?

How many opportunities in your funnel right now are you feeling worse about? Did this just make you second-guess your forecast?  If we could get your salespeople to build value early, what do you think would happen to 1) probability of winning 2) need to discount?

The graph above illustrates that the opportunity to build value for your offer has pretty much passed right when customers start comparing offers and negotiating price.

Can you see why there is a time value to selling value?

Good News/Bad News

Ask your salespeople “what value does this customer see in our solution” as a sales coaching question. If your salespeople can articulate detailed value, they’ve covered all the steps above really well.  In fact, you can probably enter a highly accurate forecast for that opportunity by looking at the total customer value versus your price.

It the salesperson can’t articulate clear value, they either haven’t sold value or your offer doesn’t have any (to that customer in that opportunity).  In the former case, some high-impact coaching might rescue the deal if it’s early enough. In either case, a low-to-lost deal forecast might be the right course of action.

Want to talk about how to apply these principles in your sales team?  Contact me.  Also, feel free to like, share, or comment below.

To your success!

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Best Practices Investing Marketing Personal Development Sales

“Sales Isn’t Brain Surgery”…Or Is It?

While a sales career doesn’t require the extensive education and licensing as a surgical career, a great sales professional shares some similar traits.

My wife is a surgeon…she performs advanced procedures through tiny incisions, accomplishing radical changes in her patients’ bodies and lives through tiny keyhole-sized openings.  I’m in awe of what she can do, and its impact.  I’m crazy proud of her and what she does and try every day to rise to her elite level in my very different field.

A truly great – buyer-focused — sales professional will find several similarities.  Top tier salespeople actually perform non-contact brain surgery. mandate

Big Impacts Through a Narrow Field of View

While I don’t save lives for a living, what I do is still pretty cool. I am an expert on customer value…something that exists only inside the customer; specifically, in a customer/client’s mind. I help salespeople open their clients’ minds to previously unconsidered – yet strongly appreciated — outcomes.

Like a minimally-invasive surgeon operating through a ‘scope, salespeople only have a tunnel-vision view into what’s going on in a customer’s mind.  My specialty is teaching sales professionals how to affect customer’s minds, businesses, and lives through that small window between seller and customer’s mind.

The Role of Generalist Expertise and Acumen

Surgeon and sales consultants are both more effective when we are genuine experts in the whole patient/client.  One of us learned anatomy, biochemistry, and physiology to help understand what a patient’s symptoms and labs really mean. The other of us learned economics, earned a top business degree, has managed a P&L, and grown successful ground-breaking businesses…and has been involved in failure or two. My value to my clients is the ability to interpret my clients’ symptoms through a deep/wide business acumen.

Likewise, customer-centric selling requires that sellers provide valued consultant-like insights for their prospects and customers.  A salesperson can’t provide insight/perspective into something they don’t understand.  I’m passionate about providing sales forces next-level business acumen, so they can position themselves ahead of their competitors.

Domain Expertise and Situational Mastery

My wife is an expert in one area of the body, and various ways to fix things when that part of the body is injured or diseased.  When she’s operating through a ‘scope, she knows exactly what all that confusing jumble of stuff is, where she needs to cut, and what she needs to preserve.  She knows what’s coming next, and what lies beneath the part she’s working on, just out of sight.  When things don’t look “textbook”, she’s either seen that anomaly before or can confidently deal with it.  Each operation is individualized to the patient, not the other way around.

I do the same thing, with organizations, not organisms.

Value-focused organizations put their salespeople in a position to either be expert, to anticipate, to accommodate, and/or to seamlessly call in needed expertise as-needed, when-needed.  Facilitating a buying process the customer is usually inexperienced in, helping them through the tough parts by virtue of the sales person’s experience in that domain.

Another thing:  great salespeople don’t blindly shove canned (even brilliantly persona-tailored, technologically sharpened) value messages into every patient’s — oops, prospect’s — brain.  I teach clients to apply value messages surgically:  confirming first whether application caused any value to form between the prospect’s ears, and then what kind and how much.

Closing is Only the End of the Beginning. Focus on Outcomes

My wife’s complication rates and patient outcomes are far superior to peer and industry averages.  This isn’t just because of her technique in the OR, but about her mastery of patient counseling, recovery, and post-op care, and how she develops an exceptionally de-siloed care pathway…focused on patient success.  She knows what world-class looks like and helps those around the patient deliver the care that ensures great outcomes.

I help my clients think not just until the close, but to plan seamlessly to customer success.  I harp on the mantra that there is no after-sale care, but between-sales care.

Customer-focused sellers know that signing the contract is the moment when the pressure to perform starts for your customer. There are several good ways to handle the transition and a bunch of wrong ones. If your business involves repeat-, cross-, or upselling, a world-class approach to implementation and outcome assurance is your only option.

Passion for the Profession

I don’t get called in for emergency life-saving surgery in the middle of the night, but we both love what we do for our respective patients/clients.

I want my clients to learn to walk, then run without me over their shoulder. This doesn’t happen by pushing them out on their own too soon…but it also means aggressive support in the early going so that they leave the hospital, umm…engagement, prepared for their own development.

Unlike a surgeon like my wife, my ideal client is one who is doing OK, but knows they could be doing better.  Are you and your salespeople treating opportunities like everyday complex selling situations, when you know in your heart that what you sell could be elevated to mission-critical for your customers?  Perhaps we need to set a time for a consultation.

To Your Success!

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“How To Negotiate Better By Knowing What Value Is” Negotiation Tip of the Week

“To understand someone better, understand what they value. Then, seek to understand why they have those values.” – Greg Williams, The Master Negotiator & Body Language Expert (Click to Tweet)

 

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“How To Negotiate Better By Knowing What Value Is”

 

What do you know about value?

“… I’m so sorry for your inconvenience. I can upgrade you to a better room.” Those were the words spoken by a front desk person at a 5-star hotel. He was informing a guest of what he could do as the result of the patron experiencing a restless night. The patron’s restlessness was due to his loud neighbors in other rooms on the floor. The patron had begun calling the front desk around 12-midnight to complain. Throughout the night, he called several more times – all to no avail to squelch the noise that prevented him from sleeping. He thought to himself, and this yammering is ceaseless.

When he checked out of the hotel the next morning, he told the desk manager of his experience. The manager extended apologies on behalf of the hotel, stated that the night’s stay would be removed from the guest’s bill and asked if there was anything else that he could do. The patron said no. I appreciate the gestures you’ve made. Then he said, “all I wanted was a good night’s sleep. I have an important meeting today. And I just wanted to be fresh and well-rested.” As he left the hotel, he wondered if he’d ever stay at that location again.

Do you see the difference between how the front desk person and the desk manager addressed the situation? It’s slight. But it’s also powerful. The desk manager extended apologies, and he asked the guest if there was anything else that he could do. He was seeking the guest’s perspective of value. In other words, he wanted to know what was essential to the guest. If you don’t know what someone values, you don’t know what to offer them. That means you’re making blind offers when doing so in a negotiation.

When you negotiate, there are five factors to keep in mind about value.

  1. People have a different perspective on what they value and why. Once you know their value perspective, seek to understand it.

 

  1. Don’t assume because someone is like you that they’ll like you. Even when people have similar values, there will be nuances that separate their opinions about value. To assume you share exact ideals as your negotiation counterpart can lead to offers and counteroffers that are not valued. In a worst-case scenario, such offers can be damaging to your negotiation efforts.

 

  1. When you’re unsure of a person’s value, ask what they’d least like to lose. The reply will indicate what is of most importance.

 

  1. To test someone about their value, ask, “if there’s one thing that I could grant you in this negotiation, what would it be?” Once again, that person’s value proposition will reside in their response.

 

  1. This last suggestion may fall into the red herring category. It entails discovering something you possess that’s of great value to the other negotiator. Entice that person to believe that he can acquire it but at a very high cost. The higher he’s willing to pay for the acquisition, the higher the value of possessing it will be. Be cautious when engaging this means of acquiring someone’s value perspective. If you don’t allow them to receive it after getting them to make substantial offers, they could become unwilling to grant you much after that. Then, the negotiation might hit a roadblock.

 

To become a better negotiator, you must always understand what is of value to your negotiation counterpart. Once you do, making better offers will be more comfortable – because you’ll know which offers possess the highest value … and everything will be right with the world.

 

Remember, you’re always negotiating!

 

Listen to Greg’s podcast at https://anchor.fm/themasternegotiator

 

After reading this article, what are you thinking? I’d like to know. Reach me at Greg@TheMasterNegotiator.com

 

To receive Greg’s free “Negotiation Tip of the Week” and the “Sunday Negotiation Insight” click here https://www.themasternegotiator.com/greg-williams/

 

 

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Entrepreneurship Investing Management Marketing Negotiations Sales Skills

Seven Sales Person Cop-Outs

I’ve been helping salespeople and sales leaders become better at their craft for a while.  I’ve seen greatness and, well, less great.  Here are some of the all-time worst things I’ve heard salespeople tell themselves or their managers, actually thinking they were doing well.  (I’m not including anything I’ve heard from salespeople who knew better and were just trying to get away with something.  That’s a whole different set of lessons).

It’s the Company’s Job to Make a Profit at the Price I Sold

Far too many sales forces are divorced from the responsibility of business: to make a profit. This happens regularly in companies compensated only on revenue, not on margins. I don’t care if “it’s hard to measure profit on a given deal because of internal transfer prices” or any other excuse.  If a sales force isn’t compensated on profit, they focus on easy-to-win revenue.

When this is carried to an extreme, sales people feel entitled to sell at discounts…even insane discounts.  I actually heard this from a guy who claimed to be a sales consultant.  I hope his clients survived.

Here’s what sales leaders should coach instead. You need to have conversations about customer value…with customers.  This shouldn’t stop with selling value.  It should carry through toward monetizing value with the customer. Then, pricing – even premium pricing – becomes a comfortable afterthought.  High pricing becomes a bargain.

Great salespeople can sell high volume and high margins.  I know. I’ve seen it. In the mirror.

But I TOLD Him/Her ____

Sales is not one of those jobs where you can get away with simply “telling”, making your listener responsible for understanding what you meant.  Those jobs exist in departments like accounting (and such poor communicators seldom rise to middle management).

The commission for “I did my job, but the customer misunderstood” is zero.  Salespeople are responsible for the picture that forms in the other guy’s head.

Value exists only in a customer’s mind.  If a salesperson simply barfs some “value messaging” they were given by marketing…without having a conversation to confirm that value formed between a prospect’s ears, they are a teller, not a seller.  If that seller doesn’t also confirm how much value formed, they may be the person who thinks “it’s the company’s responsibility to make a profit at the price I sold”.

Our Value is [insert feature here]

The most critical question a sales coach can ask is “what’s our value in this situation?” In fact, if that’s the only question a coach asks, they can learn a lot about how sellers are selling. When sellers have great answers for this question, they probably did everything your methodology teaches them to do. If answers don’t articulate an understanding of customer value, it doesn’t matter how many methodologies they performed; the sale is still in trouble.

When salespeople answer “what’s our value” with a feature or a seller capability, they don’t understand the value. Customers buy outcomes, not products or services. Value forms in the customer’s mind around those outcomes, not your shiny features or stunning capabilities.

Sales coaches who allow value to be described in terms of a seller features or capabilities are failing their salespeople. Value is the desirability of an outcome (hopefully measured in dollars or something just as measurable).  Accept no substitutes.

Customers Don’t Buy Your Product, They Buy You.

Slavery is illegal.  Customers can’t buy you.  As I said above, customers buy outcomes.

This old saying has merit but is meant to communicate how important the seller-customer relationship is.  Specifically, the critical aspect of “relationship” is credibility.  Personal affinity (knowing birthdays, hobbies, expending entertainment budget, etc.) is useful for some buyer-seller relationships, but not for many.

Credibility, though, is foundational to every successful customer relationship.  When a customer is considering some purchase to obtain an outcome, they always consider execution risk. That is, they estimate how likely it is that the purchase will actually result in the desired outcome.  Salesperson credibility forms the foundation of that assessment.  Without credibility, very little buying will actually happen.

Yes, they buy as a result of your credibility while connecting their desired outcome to a purchase, but…they’re buying the outcome.  Always.

Purchasing Says They Like Our ____ Better, but We Have to Meet the Competitor’s Price

I know a number of purchasing people, and they all confirm this truth:

Modern purchasing/procurement professionals are chartered with buying the best total value.

These same purchasing people confirm this truth as well:

Modern purchasing/procurement professionals are not chartered, trained, paid, or given enough time to proactively uncover and evaluate total value.

So…whose job is it to assemble a value picture for them?  That’s right.   A seller’s.  Professionalism and bedside manner counts. Credibility counts even more.  Enlisting the evaluations of experts within the buying organization to validate the value story is often part of the game.

If a seller doesn’t assemble a validated value picture, value doesn’t form in a purchasing person’s mind, and guess what they use to break the tie? Yep. Price.  They like ___ better means they do indeed like it better, but nobody helped monetize that for them…and they aren’t chartered, trained, paid, or have time to do it themselves.

Purchasing Owns the Budget

Purchasing really owns the budget for supplies and equipment used in the purchasing department.  Period.  Salespeople who are led to believe purchasing owns a budget are incorrect.  Sales coaches who let them work under this misconception are damaging careers and losing sales.

Whenever purchasing makes you believe they own the budget, it’s because they believe your offer has no differentiated value. In their minds, there is no need to bother people inside the company with a nonexistent value proposition.  In fairness to purchasing, letting a seller of a non-differentiated product/service shouldn’t happen.  Undue influence, like “whiskey and tickets” shouldn’t shape a commodity purchasing decision.  If your offer’s only differentiation is courtside seats, that shouldn’t be allowed to shape a decision.

As your offer’s differentiation diminishes vs. the next viable choice, the need to analyze value diminishes, and the entire buying organization feels safe in delegating the buying decision to purchasing. Purchasing doesn’t technically own the budget in these cases, but the organization gives de facto authority to purchasing. This only happens, though, when sellers create no value in the customer’s mind. These are the kind of sales environment that is about to be conducted by bots, AI, etc.

I’m Talking to All of the Right People

Complex B2B sales methodologies help sales professionals organize their selling efforts among a multi-person buying ecosystem.  While they’re handy for organizing an approach to an identified set of people, they aren’t that great at identifying all of the appropriate parties.  Most simply tell you “identify everyone, then use our tool”.

When somebody at a customer tells your salesperson the set of people they’ve engaged internally, how does a salesperson – or their coach — know that list wasn’t kept short in order to make somebody’s job easier?  Should you expect anyone at your customer to know how all of your capabilities translate to outcomes throughout their company?

Here’s the reality:  companies silo themselves more narrowly every year. Silos become sub-specialties, then sub-sub-silos, then soda straws. Only one soda straw has budget to buy your offer, but many benefit.  As customer subdivide, more soda straws benefit.  People in your budget-holding soda straw have three things working against them: 1) they no longer have a big-picture view of their own company 2) engaging all the people they really should make decision complexity awful and dysfunctional simply from a committee size standpoint 3) nobody at the buying company has your sellers’ expertise in the domain of possible outcomes.

If your selling organization hasn’t built the business acumen to help customers navigate these challenges, it won’t happen. Customers aren’t equipped – and shouldn’t be.  That’s your job.

Summing Up

I hope you didn’t find any of these hitting home.  If you did, though.  I’m here to talk.  Contact me if you’d like to stop hearing these statements in your sales organization.

To your success!

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Best Practices Investing Marketing Negotiations Sales

Are You Winning Enough Opportunities at the Right Prices?

While many of my Sales Consultants specialize in specific industries, I have defined my niche differently: companies who produce a differentiated product or service, and who want to be fairly compensated for their value. This means selling at a higher price, In alignment withthe customer.

I’ve had the opportunity to work in many industries: electronic components, telecom gear, telecom services, commercial real estate, and banking. I’ve also been the highest priced option in all of those industries: a combination of products and services.

I have always worked for some of the most famously “high-priced” providers in whatever business I was in. The common thread, and the reason I’ve been successful in each role? In a stroke of early-career luck, I learned the fundamentals of selling to full value (much more involved than “value selling”, and much more effective at establishing higher preference at a higher price) at an early stage, and was able to refine that methodology for use in increasingly “commoditized” industries (what can be more commodity than selling money?). Those experiences formed the core of my Full Value Selling™ methodology.

How do successful selling and selling at the right price interact? Let’s take a look at some research.

Differentiation Gets Valued. 

Look down the left hand side of the graphic below, produced by CSO Insights. Noel Capon describes similar levels of relationship shown in his benchmark work, Key Account Management and Planning. The higher up a customer places a supplier on the vertical axis of this scale, the more value they find in the buy-sell relationship.
No alt text provided for this image

CSO Insights has found that higher levels on the vertical axis correspond to higher win rates, which is awesome. Curiously, they have not even thought to study pricing power.  That is apparently my lonely corner of the selling performance market.

Value CAN Get Compensated.

Many sales methodologies can be used to help selling organizations progress up the scale – at least as far as your customer wants you to go. Far fewer methodologies teach how to get a customer to want you higher on the scale.  The higher a supplier is able to achieve relationship-wise on this scale, the more leverage the supplier has to price.  Again, having leverage doesn’t automatically guarantee successfully using that leverage.

The difference between “winning more reliably” and “winning more reliably at the optimum price” is where I specialize. Full-Value Selling™ helps sellers consistently and smoothly help customers quantify the value received, and more acutely see the bargain they are obtaining – even at a higher price than competitors offer.

When customers are more rigorous at analyzing your value, they see price more clearly in relation to that value. Consumer behavior research shows that people only analyze value until they “get over the hump” to justify a purchase. What this means is that they won’t fully appreciate your entire value on their own; to appreciate your full value to them, customers need to be taken beyond that “make the sale” minimum. Sellers who want to reliably win premium-priced deals can do a little more: help the customer think through FULL value. This makes the seller not only able to win at more advantageous prices but resist discounting more effectively.

Relationship vs. Process Rigor vs. Sales Performance.

CSO Insights has extensively studied companies on not only the level of customer relationship achieved but on how rigorous their salespeople follow a selling process. The horizontal axis on the matrix represents four major categories of selling methodology/process rigor. “Random” means that every rep uses their own personal process. In “informal”, sellers go through process training, but none is enforced. “Formal” is the designation for ongoing process reinforcement and enforcement. “Dynamic” process processes are systematically revisited and updated in response to internal and external changes.

How does selling rigor interact with relationship quality? I’ll discuss results in a moment, but think about how much easier it might be to consistently achieve better customer relationships if sellers know how to perform best practices? The key to progressing to the right on the matrix is how well organizational support manifests itself in effective front-line sales manager (FSM) coaching and mentorship. Teaching a methodology gets you only so far; following it long-term, and making it part of your corporate culture is a huge differentiator.

What are the performance outcomes associated with your position on this matrix? Take a look at the color-coded outcomes corresponding to the matrix above:

No alt text provided for this image

Notice that these outcomes, while highly compelling, are deafeningly silent on pricing achieved. Any sales consultant, myself included, want to help you move up and to the right. I want to help you do more…by filling the void in that deafening silence.

Selling Well vs. Selling Well Consistently vs. Selling Well, Consistently, and Profitably

I also do work throughout our company’s clientele on improving how sales managers coach sellers.  This is key to helping my clients achieve consistently great sales results, but also consistently optimum pricing. I can’t help my clients consistently achieve more profitable pricing for the long term without their commitment to long-term adoption.

Selling value consistently yields higher sales performance, but pricing those reliable sales results yields higher profit performance…think of it as a third dimension of sales performance. I help clients add a third axis to this matrix: doing it all profitably, by achieving optimum win-win pricing. This doesn’t replace any methodology; it complements those tools seamlessly with another: a relentless focus on value delivered.

If you want to move upward and to the right on the Sales Relationship Process matrix, we might need to talk. If you want to do that while achieving higher pricing that your customers love, we are kindred spirits, and I invite a deeper discussion of your goals.

To your success!

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Culture Investing Marketing Personal Development Sales Technology

Brick and Mortar Stores Are Dead? Not So Fast!

The Younger Generation That Chooses Brick and Mortar Stores

You’re a part of Generation Z if you were born between 1997 and 2012. (If Z is the last letter of the alphabet… then what’s next?) This generation actually prefers shopping at old-fashioned brick-and-mortar stores. Why? Simply put—because it’s fun and entertaining! Does this mean we’ve all exaggerated the death of retail? We think so.

According to a recent Morning Consult study, “(They) will be the largest, most ethnically diverse, best educated, and most financially powerful generation ever.” When Gen Z-ers started spending their own money, two-day delivery was becoming the norm. They made their first purchases when the convenience of online ordering and home delivery was the trend. So why didn’t they keep it up and hop onto the online bandwagon? Is ecommerce missing something? Or was it that, when looking at these different shopping experiences side by side, they found that neither was shiny and new? Why did they choose brick-and-mortar shopping over online?

We think it’s the spontaneity that comes with retail. There’s also a tactile experience that online shopping can’t provide. And we think shopping brick-and-mortar satisfies a social need, whether it’s just being out of the house, dressing up, or investing in “retail therapy”. They might find exactly what they were looking for, or they could discover something brand-new! Either way, they’re going out to interact with real people instead of clicking around online from the comfort of home.

The Beauty of Brick and Mortar Shopping

As producers who have built a major retail brand, we appreciate the power behind brick-and-mortar. We were lucky enough to offer our products in a large territory to retailers’ existing customers. Unlike the direct-to-consumer business where only a few items are sold at a time, we received one check for one big shipment of many different products. Our brand had the opportunity to be discovered on retail shelves and floor displays. When people buy online, they’re likely to repeat the same purchase of the same brand over and over again. There’s barely any chance of discovering something new! Convenience and time-saving triumph over discovery!

Price-wise, ecommerce is a race to the bottom. Price is always the determining factor online, rather than quality. Both the customer and the producer know that quality is hard to fake in a physical retail store.

Going Shopping—For Fun!

According to the report we mentioned earlier, two-thirds of Gen Z-ers shop for fun at least once per month. Among the list of their top “brands” were Wal-Mart and Target—two of the world’s largest brick-and-mortar stores.

“Free delivery” is a peculiar misconception that has boosted ecommerce as we know it. If everyone working for the USPS, UPS, and FedEx still gets paid to ship “for free”, where does the money come from? Either the online merchants factored shipping into their prices, or they “invested” in delivery costs to compete with brick-and-mortar stores. The customer ends up paying for delivery one way or another in the end. But a brick-and-mortar store will meet you halfway—You drive to them. They offer you prices that don’t include the cost of getting the product in your hands.

It’s been interesting to see Generation Z rediscovering what the Boomers knew all along about brick-and-mortar shopping. But don’t let them have all the fun—let’s go on a shopping trip! We’ll discover something new and meet people along the way!

 For more, read on: http://c-suitenetworkadvisors.com/advisor/michael-houlihan-and-bonnie-harvey/