Social: The Fifth Age of Selling

Professor Derek A. Newton of the Darden School at the University of  Virginia is credited with suggesting that there are four ages of selling. The ages start with music man and move through animated catalogue, magic formula and finally problem-solver.

The music man (or woman) was most successful before the first world war but you will still bump into them from time to time. For them it’s all about personality and charm. Like them and you will like the product or service they are selling. Whatever it is, it will cure what ails ‘ya without knowing the first thing about ‘ya or your ailment.

As industrialisation made complex products available and affordable to the masses the music was drowned out by the monotone of the animated catalogue. There was nothing this walking brochure didn’t know about the features and functions of their vacuum cleaner and why it was better than the competitors. Knowing so much about their product left little room for understanding their buyers. After all, everyone needs one right? and there’s has more functions and features than anyone else’s.

Times though kept changing for the our sellers. Families changed as did business buyers. Consumer buying decisions no longer fell exclusively to Dad and the corporation was growing in complexity too. Sellers reacted with process, a magic formula. A seller need only walk all the people involved in the purchasing decision into a funnel and then through a series of steps before they would inevitably drop out the other end with their wallet open.

The dominant form of selling today, at least where there is any complexity requires Problem solvers. These are more like consultants delivering value well beyond their predecessors. This is epitomised in selling approaches like SPIN, a research based selling approach from Huthwaite.

Focus

What is surprising about this evolution is how long it took to focus on the buyer, the customer. It was all about seller for the music man, all about the product from the walking catalogue and all about the process for the magic formula. In fact it wasn’t really until we saw the rise of problem solvers that we even noticed the buyer. We finally noticed that there was a customer in the room at all. Even then it was, on occasions, a narrow focus. It was about their relationship with the seller or a limited  set of needs based entirely on the sellers products and services.

The Fifth Age: Social Selling

Today, buyers are better informed than they have ever been before. According to Forrester buyers will consume three pieces of   content that they found themselves for each piece they get from a vendor. They are better connected too. Social tools connect them with those that have similar problems and with those that have already tried to successfully or unsuccessfully solve them. And they trust each other more than than they trust sellers. In fact research from the Corporate Executive Board in partnership with Google suggests that buyers are nearly two thirds of the way through their buying process before they even contact a seller. 

The final age of selling is upon us and it has put the buyer in the drivers seat. The buyer has wrested back control of their decisions. Social Selling is really Social Buying.

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Essential Tools for the Social Leader

This continues to crop up in conversation with my colleagues and customers. What are the essential tools for leading in a networked and social era. Here are my top 5.

  1. Evernote. Strictly speaking, not really a social tool. However, those that are living in the cloud (living the vida nuba) need a note taker that is versatile and available on any device that they have to hand. Evernote does this and much more. If you are not using it you are missing out. Check out Evernote Hello too.
  2. Buffer. If you have something you want to say to a community that spans the globe and that have busy twitter streams themselves then you might need to say it late at night or early in the morning. You might even need to say it twice. This needs a tool that manages your posting to a timetable so that your sharing can be sometimes scheduled and sometimes impromptu.
  3. Klout. Err, I’m sorry. I care about my social influence. Not obsessively you understand. I just want to understand if what I am sharing is working. One way of knowing if you are contributing something positive to the global conversation is to check what others are doing with your Tweets, Updates and Posts. That’s what Klout does … and there are Klout Perks too.
  4. Unfollow. If you follow me and we share interests, I follow you back. Unless you spam me, we will spend a long time sharing. I expect the same in return. Nothing anyone has to say is that important that they can’t listen from time to time. Unfollow will highlight all those one way conversationalists so that I can unfollow them. You are not Brian Solis, after all. Unless you are.
  5. Linked In and Twitter Apps. Yes, I know that this is two really but what I mean is native apps. Whilst I use aggregators  the native apps keep getting better so I use them frequently for new insights into how they can be used to  nourish my network.

That’s my list. My essentials. There are more of course including pocket (you really need this!), bitly, feedly and flipboard but I really could not function without these any more. If you are part of the connected generation you will have a similar list too and no doubt we some in common.

The New Sales ABC Always be Serving

519GWpY-vAL._SS500_I have always had a problematic relationship with sales. This is quite an admission given that I have worked closely with professional sellers for most of my working life. Indeed, much of what I do today is help customers through their analytics and social crm initiatives and then ask them for money at some point i.e. I sell. There, I said it.

Thankfully Dan Pink’s latest book To Sell is Human (Amazon UK US) addresses my personal demons head on. His research suggests that many of us, when we think of sales, go straight to Ricky Roma in Glengarry, Glen Ross. In fact, when Pink asked the question ‘when you think of sales, what is the first word that comes to mind?’  the resulting word cloud was not pretty.

I don’t want to share too much because, like his previous title Drive, the destination is worth the journey but suffice to say it is insightful, full of surprises and fresh in it’s examination of what it is to sell in the networked and social age.

One of my most startling (what a friend calls) ‘aha’ moments was Pink connecting  modern selling with Robert Greenleaf’s servant leadership movement. I have often commented that there is overlap in sales and leadership. Both are about working with the universe of possibilities and creating certainty, both are about moving from indecision to decision. Sales and leadership are at their core about making things happen. Pink articulates it better than I ever could. In connecting with Greenleaf’s modern leadership movement he makes the point that modern selling is less about serving the self (usually through a large commission cheque) and more about serving the needs of a customer searching for answers.

We do not really need to look any further than this for a world without spam, cold calls, high pressure techniques (always be closing!) and (damn it, I am on a roll) another global economic meltdown through the sale of financial products which did nothing for the (ultimate) customer and everything for sellers and speculators.

I am ready for a world which Pink articulates as professional sellers ‘solving problems and serving customers’ because they want to be ‘part of something bigger than themselves’. It’s here of course (it is just unevenly distributed)  and the smart seller is already doing it. They are ‘up-serving’ and ‘cross-serving’. The rest … those that are up-selling and cross-selling need to catch-up and I look forward to a reinterpretation of Mamet’s play where Blake chalks up the letters A-B-S. Always be serving.

The Sales Process; SPIN or SPIV

Redrackam

Last year I posted and tweeted a fair amount on the subject of sales process. Many, it seemed to me, were all too focused on the success of the seller with scant regard to the buyer. I argued that even more enlightened and consultative approaches have a problem of perspective. Buyers don’t believe they are ever in a selling cycle, they are in a buying cycle. Here, I am inclined to agree with thinkers like Brian Solis, Gary Vay-ner-chuk (sic) and Doc Searls, author of the Intention Economy: When Customers Take Charge, a work that describes a future that turns Customer Relationship Management upside down into Vendor Relationship Management.

With some ‘spare’ research time over the festive period I took a deeper look at the grandfather of consultative selling, SPIN.

SPIN, the grandfather of consultative selling, is based on extensive research by Huthwaite International and was first published in 1987 by Neil Rackham, Huthwaite’s founder, sales process veteran, NY Times best seller and regular speaker on sales and marketing. Anchored in objective studies, it has stood the test of time. It remains relevant well after it’s late 80’s origins when it probably challenged sales professionals with assertions that included high pressure selling results in less, not more, success.

ABC

The clarion call of traditional selling approaches is ‘ABC: Always be Closing’. Photocopier and vacuum cleaner sellers in the 80’s were brow-beaten (some just beaten) by their managers with repeated questioning that boiled down to ‘did you ask for the order?’. The assumption was that those bold enough to push for the order, will get it more often than those that wait for the right moment. Close harder and faster as a seller, the theory goes, and you will sell more. Huthwaite, however, saw no such correlation when they conducted studies in closing techniques like the assumptive close (‘when would you like to take delivery Sir?’) In fact on larger and more complex products and services, they saw a negative correlation between successful sales and the use of closing techniques. What’s surprising is that it needed any evidence to prove what most of us know instinctively; that few go back for more strong-arm selling.

Instead, Rackham proposes obtaining commitment or advances that progress the sale by degrees through stages that include investigation (the customer) whilst demonstrating capability (of the seller). Instead of applying pressure or leaving with unclear objectives (at the other extreme) he suggests a balanced approach. He proposes obtaining the highest realistic commitment the customer is able to give. Successful sellers, Rackham cautions, never push a customer beyond these achievable limits.

In fact Rackham turns the focus around. Instead of ‘asking for the order’ as quickly and as forcefully as possible he argues that closing is entirely dependant on the earlier stages of the customer engagement, notably putting an onus on the seller to rigorously investigate the customer and their needs in an extended prospecting and business value development phase.

NEEDS ARE A MUST

Needs evolve through distinct stages. They start as a fall from being fully satisfied but perhaps only marginally. We are discontent – but only moderately so. We will not act at this stage unless our dissatisfactions or desires more are more clearly understood.

This is the journey from implied needs (the process is not quick enough or takes too long) to more explicit ones (we need something more reliable because 50pc of our sales are on-line and increasing) Implied needs might be buying signals in smaller sales but certainly not in larger ones. Rather, they are a starting point. They need to be uncovered and developed. In fact, in the absence of explicit needs both buyer and seller have not done the math. They don’t understand what Rackham calls the Value Equation. This, stated simply, is that the seriousness of the problem must be greater than the cost of the solution. If it isn’t there will be no change to the status quo, no decision, no action, no purchase, no sale.

ANYWAY THAT’S ENOUGH ABOUT YOU

At some point, all sellers will want to talk about themselves, their company and their product. Actually, many can do this a little too early and a little too often. SPIN is about reducing this to a minimum, about demonstrating competence in solving the customers problems and addressing their needs. More specifically, rather than talking about product features (what SPIN calls advantages) which only meet implicit needs the seller spends the time identifying benefits that will address explicit needs.

Rackham’s research demonstrates that those talking about features and benefits are less successful. He illustrates this with a familiar scenario, the new product launch. Just before it is released the sales team receive extensive training in all the new features, flashing lights, bells and whistles. Unsurprisingly, this is what the sales team excitedly take out to their customers. What happens next is that sales invariably don’t meet expectations. Sometimes they tank. Everyone is surprised that their wunderkind hasn’t worked out. Then, as they shake their collective heads in confusion and disappointment there is often an unexpected upsurge. Customers have started buying again because the shine has worn off the product and focus has retuned to customer needs.

QUESTIONS QUESTIONS QUESTIONS

Rackham proposes a framework for asking the right questions to uncover implied needs and to develop them into explicit ones;

Firstly situational questions like ‘what are your revenues?’ and ‘how large is your sales team?’. These are all good background for the seller but of least interest to the buyer. Indeed they will quickly fatigue of this type of question.

More interesting questions might be ‘How is that working out for you?’, ‘Are you finding it easy to get the information you need? or ‘Does your budgeting process complete on time or frequently overrun?’. Obviously, these are questions that reveal business problems and uncover implied need. So far, so good but it would appear that many professional sellers stop here at a point.

Here, Rackham encourages sellers to drill into the need with implication questions to make the implied needs more significant and more urgent. At this point the seller should have the value equation at the forefront of their questions piling up implied needs until they far outweigh the cost of their solution. Implication questions uncover what other sales approaches call consequential pains. An example might be;

Q. How long does it take to pull the management report pack together?

A. No time at all really, we ask one of our finance analysts to do it.

Q. Do you know how long they spend on it?

A. They tend to pull it together in a single week, it’s not really a problem.

Q. All week?

A. Yes, I think so. Other things tend to go to the back of the queue in the last week of the month so I know it is only a week but all week.

Q. But they do at least get it done in a working week and in time for the management meeting?

A. Well, I have heard that they can end up working some of the weekend to complete it. It’s important to our management team and they know it.

Q. Really, how much of the weekend?

A. Well, now you come to mention it, they have started referring to it as the ‘TOYS Report Pack’ for ‘takes over your Saturdays’

Q. [Laughs] Can it involve more than one Analyst?

A. Yes, I think so. And now I think about it a little more maybe the S in TOYS could stand for Saturday or Sunday or both!

Q. [Laughs again] Is there a high turnover in Analysts?

A. There can be, it is a high pressure role because we run our business on information. I guess frequent working weekends does not help either.

At this stage the discussion has opened up into one about the cost of staff retention, the importance of management information and the implications of deferring less urgent, but still important finance activity. We can sometimes be oblivious to the business problems that surround us, we grow used to them, we mentally discount them like we do the creaky door or leaking tap until someone points them out to us afresh.

The problem with this is that implication questions focus on problems and leave customers feeling negative. The seller then should move on to need payoff questions such as ‘Is it important to solve the problem?’, ‘What would you do with the extra information if you had it?’ or ‘How would a faster machine help you?’. These are focused on the solution and what the customer’s world would look like if it were fixed. As the discussions about need payoff progress the buyer is also describing the benefits. What’s more, says Rackham, the buyer is more predisposed to your solution because they have shared their own perspective on the benefits of the sellers solution. The process of exploding implied needs into explicit ones would not be out of place in a consulting project with it’s focus on process and identifying the value of moving from the ‘as is’ to the ‘to be’.

There is a shift in SPIN selling from seller to buyer which is to be applauded. For example, it takes a completely contra view to objection handling. Some sales methods perhaps based on ‘bad medicine’ principles assert that the more objections a buyer raised, the more likely they are to buy. After all, they argue, each objection is a mini-selling opportunity. SPIN is about ensuring the dog didn’t eat your homework on the customer’s explicit needs. That way there are far fewer objections and those that remain are dwarfed by the need payoff.

SPIN OR SPIV?

Apparently Rackham preferred the term ‘value’ over ‘needs payoff’ but that would have made it SPIV selling. The term spiv has negative connotations, at least in the UK, so it didn’t make it into the final text. I am not sure spin has a positive connotation in the UK either thanks to Malcolm Tucker and Alastair Campbell.

It was interesting to get a perspective from my 21 year old Son who was listening to the audiobook in the car with me at one point. As he got out he commented that the author seemed to regard people as ‘cattle’. I am sure Rackham would emphatically reject this conclusion but it provides an insight into how those outside of the community of professional sellers react to language that objectifies buyers. In one jarring statement, Rackham describes how he has no problem with the use of closing techniques on unsophisticated customers. I emphatically do have a problem with this. Assuming and acting on commitment where there is none is wholly unacceptable.

One of the values (or need payoffs?) of approaches like SPIN is the very fact that they are a process. A prospective buyer is, by definition, faced with uncertainty. A sales process brings structure to their decision making, guiding them step by step through a universe of possibilities towards certainty and, ultimately, an outcome. All good. The problem for me is that even enlightened approaches like SPIN don’t go far enough. As buyers become more social and power shifts from process to people and from corporations to individuals  then the process will inevitably become increasingly buyer and not seller centred. Terms like objection handling and closing will be confined to productions of Mamet’s Glengarry, Glen Ross.

SPIN is intended to drive out the explicit and quantifiable need of buyers and Rackham regards good sellers as problem solvers. This is commendable but it is no longer optional. As buyers become more social and power shifts from process to people and from corporations to individuals then the process will become increasingly buyer centered and, as sellers, we have no choice in the matter. Increasingly, in the networked age, processes like SPIN will not seem consultative enough. In fact, we will know we are there when the role of seller is indistinguishable from that of a consultant. It can’t come soon enough.

What Has CRM Ever Done for Us?

Actually the Romans come out rather well when Reg asks the questions of a bunch of masked activists in Matthias’s house in ‘The Life of Brian’. The aqueduct was just the beginning. Would CRM fare so well in a contemporary and probably unfunny update of the classic scene?

What has it done for us? Don’t misunderstand me. I use salesforce, my chosen flavour of CRM, every day. I wouldn’t be without it. Everything I do is captured in those seemingly simple customer, contact and opportunity tabs. However, what has it ever done for me … as a customer?

I have just finished Doc Searl’s latest book, the Intention Economy. It is a jarring book which turns CRM on it’s head, instead describing a world where software helps customers manage their suppliers rather than the other way round. It manages to be visionary by illustrating with situations which are utterly everyday. As customers, like frogs on slow-boil, we have come to accept the unacceptable. We tolerate what should be intolerable.

For example, Doc makes the point that when he travels by air (not unlike me) he has no special dietary requirements, places few demands on cabin crew, is likely to offer up his seat to accommodate a family or couple travelling together and is willing to pay (a little rather than take out a mortgage) extra to reduce the stress of travelling because the novelty has long since worn off. What his frequent flyer programme knows about him (and mine about me) is the total miles we have travelled and our address. Hmmm.

Yesterday,  I received a ‘personal’ note from a high street chain that I used to visit often but haven’t been able to recently.  Let’s say it’s a shop for the body. I shop here because I admired their deeply principled founder and her stand on ethical, environmental and social issues. I also like smelling like a satsuma. Mostly though, I shop there because there is convenient outlet on Waterloo concourse my gateway into and out of London. Rather, there was an outlet. It closed down during the station refurbishments and has yet to reappear. The CRM system that delivered the ‘personal’ note to me notes that they hadn’t seen me in a long time and offered me a generous discount to return. So far, so good. However, the featured products were wild rose hand cream, lip butter and a free makeover. I am a modern man and I freely admit that I prefer the smell of citrus fruit to masculine musk but it didn’t seem like a particularly compelling selection even for me.

And, this is a business I respect. At least their CRM had  spotted that it had been an unusually long time between the last transaction.

Another on-line retailer that I have been ‘loyal’ to for years has been through a recent CRM upgrade. I now only receive the section of their clothing catalogue for men. They finally understand my gender and no longer assume that my wife and I automatically like the same brand because we pick out curtains together. They worked out that I am a male and that I have different shopping habits to my wife. Big whoop.

This is the reality of CRM and Big Data today. Companies at the top of their game, with the most sophisticated CRM have worked out households, genders and not much more. And B2B is generally not even close. Many direct mail (interruptions) that I receive in my office inbox don’t even get my name correct and few, if any, are relevant to my job title or role.

It is true that sophisticated relevance marketing exists. These are the types of systems that can tell when you have started and finished the Atkins diet but they require a level of exclusivity associated with a church service and a gold band rather than the somewhat lighter associations most of us have with our grocers, coffee shops or satsuma scented shower gel supplier.

The Romans did actually give us irrigation, underfloor heating and straight roads but what has CRM ever done for us? We need more than a wallet full of loyalty cards, an iphone full of apps, licensing terms that we accept without reading and  discount vouchers with a redemption date just expired at the time we want to use them. It has a long way to go before it makes good use of all of that data, all those cookies and screens of social analytics. Mostly CRM needs to respect that unless it is going to make good and positive use of all of that data, that customers might tire of waiting, take it all back and start building VRM. The clock is ticking.