Start of the year is when you see a lot of policy changes, changes in fees, service levels etc. Done right this could actually help sales people and drive revenues, yes even price increases. Done wrong, it just leaves a bad flavour in people’s mouth and minds. Having had to face new fees and policies, I have come to observe that there is a missing element in how sales people, and I would argue all who interface with clients in any way, deal with change. More specifically, how their companies fail to prepare these front line assets, and as a result lose customers and revenues in the process.
My experiences recently did not relate to price, but how and why the changes were implemented.
Example one, I recently went to renew a service I had been using for over 20 years. This was different, this time I was a fee, that in both relative and absolute terms was more than excessive. Needing the service, I hummed and hawed, but paid the ransom, and given that I was paying for the party, I asked “why is this fee in place now, and why this amount?” The representative responded “When you renew you have to pay $180.” I repeated, “OK, I get it, $180, why, why do I have to pay this when I never had to pay it in the past, I don’t seem to be receiving anything over and above or different than in the past, so why the additional $180 now, I understand the what I have to pay, but I would like to understand WHY?” I am still waiting for the answer.
I don’t really blame the “Representative Drone 100 Model”, they were programed to collect, but they should have given the Drone the ability to explain why, even a couple of plausible explanation. Even if I disagreed with the “why” it would have seemed lass a money grab and more a function of their business.
This type of disconnect and apparent ignorance, plagues many sales people and organizations. They are great at talking to clients about what their product does, how it does it, often in great and irrelevant detail. But when it comes to why, as in why do I need this, why will this make a difference for me, and a whole range of important why’s, there are few answers. The buyer is left to figure it out on their own; the rep feels that they have done their job by laying out the dots, and assume that the buyer will connect it on their own. I guess you can look at your close ratio and margins to see how well that is working.
Sure some buyers will connect the dots because they have to, they have an immediate need or medium term need that they know they have to deal with, and as a result will make the effort to meet the seller more than half way. But this is a small portion of your market, for most 20% – 30%, leaving some 70% without a clear need and therefore a complete lack of inclination to make the effort.
For this large segment it is all about the ‘Why’. As a seller we need to not only make sure that the dots align to their objectives, not as visible as pain or need, and heavy on the ‘Why’ of how this will impact their business. Their ‘need’ is to achieve objectives, if you can’t explain why they will not be able to achieve it without your offering, or why your offering will enhance their objectives and their journey, they really have no reason to speak to us. Which is may be why their pipeline is in the state it is in.