Greg Bennett Sales Blog

Podcast Segment on R.O.I.

From my live radio show this morning, here is an audio segment (about 18 min.) on one of the most important steps in selling -- the R.O.I. (Return on Investment)

GB Podcast segment on the R.O.I. (Return on Investment) (Approx. 18 min.).mp3

GB

Discover the R.O.I. Expectations of the Client - Part 3

This is the third and final part in my series on Understanding the R.O.I. (Return on Investment) Expectations of the Client. 

Delivering the R.O.I. can be turned into a long-term relationship and on-going income streams ...once we understand the client's R.O.I. expectations (covered in segment one), and have adapted our presentation and delivery processes (in segment two), we need to use the successful delivery of the R.O.I. expectation as the basis for a long-term "partnership" with our client.

Assuming we've been able to deliver the client's expected outcome, we need to look beyond the initial buy and start planning for a future together serving the client.  Salespeople have a tendency to look at life with a client as a series of one-sale-at-a-time transactions...we sell the client one time, hope it works... try selling them another time, hope it works...maybe a third time...and so on and so forth. 

What this approach has done (through repeated use by multiple salespeople over several years) has caused clients to view the world in the same one-sale-at-a-time fashion.  Leading to the following behaviors:

• Client's are very skeptical and protective of "the next buy", and they're not focused on long-term relationships...
• Clients have a tendency to skip around from seller-to-seller after each buy...making one-time buys that usually don't work because there's no time for programs to work and for relationships to be formed...
• Here's the real kick in the chops...clients, when they get in this mode, can actually WANT the product or service to fail, or they MAY EVEN LIE ABOUT THE SUCCESS OF THE SALE IN ORDER TO AVOID BEING SOLD AGAIN!  To me, this is one of the strangest phenomenons in sales...clients will have success with your product, then LIE ABOUT IT IN ORDER NOT TO HAVE TO BUY MORE OF YOUR PRODUCT (WHICH REMEMBER, WAS SUCCESSFUL).

It's certainly odd...but I think this is just one of those human-nature things...with the client thinking "I don't want to be sold again".

How do we avoid this?

• We need to be thinking and talking and planning in a "long term mindset" from the very beginning of the client relationship...talking about the successful results from the 5th sale two years from now, not just the immediate sale...
• We need to clearly understand the R.O.I. expectations as we've outlined in the first and second segments...
• We need to explore with the client the benefits (from both sides) of a long-term, successful relationship vs bouncing around from buy-to-buy, seller-to-seller...
  • You:   "Sherry, let me ask you this...let's assume that we are able to meet your needs and achieve success for you on a regular basis, and we find that success, in a large part, came from committing to one vendor vs bouncing around...what would your thoughts be?"
  • Adding... "What if you found that by committing to our company long-term you were able to get more favorable rates, build a stronger foundation for success, and have a real partner focused on the success of your organization?"

Now...if we're going to TALK this way, we'd better be ready, willing and able to DELIVER this way!

• We have to build a solid "Post Buy Process" (read the segment in my book "Consultative Closing")...
• We have to be constantly planning long-term, not just focusing on short-term results (immediate results are needed, but must be viewed through the long-term strategy)...
• We should NEVER rest as salespeople...ALWAYS looking to add value each and every day, week,  month and year...EVERY DAY WHEN YOU WAKE UP, IMAGINE YOUR COMPETITORS ARE AT YOUR CLIENT'S DOORSTEP WITH FLOWERS, CANDY, AND THE PROMISE OF A GREAT CRUISE TO EUROPE, all while we may be getting fat, lazy, and taking the client for granted...

So the key "walk-aways" from this little three-part series on R.O.I. are:

1. Know the client's R.O.I. expectations...(how they got them and are they married to results or a budget)...
2. Be ready to adjust your product or services to meet the expectations (or you'd better get the client to adjust their outcome goals)...
3. Have a long-term relationship in mind and talk with the client about what life would be like with their R.O.I. expectations being identified and hit long into the future...

Hope you've enjoyed it!!

GB

Discover the R.O.I. Expectations of the Client - Part 2

This is the second of a three-part series I'm doing on Understanding the R.O.I. (Return on Investment) Expectations of the Client

• We need to modify our sales and delivery process to meet the R.O.I.  ...in the first segment in this series we covered the importance of discovering the client's R.O.I. expectations:  What were they hoping to see as a return?   How did they arrive at that expectation?  Are they married to the R.O.I. expectation or their budget?   In this segment I'm going to address what WE, as salespeople, may need to change in our sales process, as well as our delivery process, to meet the R.O.I. expectations of the client. 

If we question early enough about the client's R.O.I. expectations, we have an opportunity to alter our recommended solution.  Unfortunately, most salespeople don't ever ask about expectations until AFTER the client has started using the product or service...by then it's too late to do much about it.

For example, if you are selling accounting software and you neglect to clarify expectations AFTER set-up and training, you're running a huge risk that the client will be disappointed with the result.  Why?  Because CLIENTS OFTEN HAVE UNREALISTIC EXPECTATIONS...OR THEY HAVE NO IDEA WHAT TO EXPECT.  (this also gives the client something to beat us up about when we go in to upsell or renew).

Here is how this will impact what you present or recommend; if the client has "big expectations", they need to see a "bigger recommendation".   As I mentioned in the first segment, it comes down to finding out what the client is "married to"...the R.O.I. expectation, or spending x amount?

• (Here is how this may sound if we do know about expectations, and we've done the clarifying steps described in the first segment of this series) 
  • Salesperson:  "Bob you mentioned that you were hoping to go live with the new software for all your offices within 3 weeks, and that you needed to get everyone into training in the first week, is that correct?"
    • Now the salesperson may need to tweak the proposal (sometimes on the fly) to reflect more offices plugged into the system and more aggressive training schedules...and find out how "married to" the outcome the client truly is
  • "Okay...well let me ask you this...this signifies a much more aggressive program than we've been talking about the last few weeks...what are your thoughts on this outcome impacting your budget constraints?"

At this point the client must decide whether the outcome is worth the additional investment.  Of course, clients being clients, they'll want the new outcome, but at the same price!  If you want to form long-term relationships, you shouldn't just agree in order to get a sale ("yeah...okay...well, we'll do all that for the same money")...knowing that you're going to probably deliver less than quality service because you accepted a lower sale.

Even if we balk and say, "Sorry...we can't do that"...and the client follows with, "Well...I'll find someone to take my money."  You can say..."Hell, I can help you find 50 people that will take your money...but what if you find that the investment won't be enough to get you the outcome you're looking for?"  What are you married to "Bob"?   Investing X...or getting the outcome you want?

Coming up next week...Part 3 will focus on how we can form that long-term partnership with clients to not only deliver the R.O.I., but turn it into on-going streams of business!

GB

Discover the R.O.I. Expectations of the Client - Part 1

This is the first of a 3-part series I'm doing on Understanding the R.O.I. (Return on Investment) Expectations of the Client

• Sales is all about the R.O.I.  - it doesn't matter whether you're selling a product or a service...a simple transactional sale or a long-term relationship...cheap or expensive...tangible or intangible... no watter what size, color, product, or industry -- as a client, when I buy something I have an expectation of what my life will be like AFTER I take ownership.

As salespeople, we must never forget that clients care MUCH more about what happens AFTER the sale than they do BEFORE the sale.  Most salespeople unfortunately ONLY care about the BEFORE part, and aren't interested at all about what happens after the deed is done (in fact, they usually think 'the less I hear the better...the client may not like something, or have issues').

The third core tenant in my book "Consultative Closing" is all about SELLING AFTER THE SALE, about being the one salesperson in the market to care as much about what happens AFTER the client takes ownership as BEFORE...and in fact highlighting your "post buy" process early on in the call.  By doing this, we're really forming a "partnership" with clients to help them maximize their investment.    It's funny that when salespeople try to separate themselves from the competition, they tend to look at how they can be different in the BEFORE process (do nicer proposals, take clients on nicer tips, etc), when I think the best traction to be had is to be different in the POST-BUY process (what are three things we can do differently AFTER the client buys than our competitors?).

That's where the R.O.I. comes in.  We must seek to understand what the R.O.I. picture looks like in the client's mind (not the picture we see in our mind)...so here are some initial steps:

• Ask EARLY about the client's R.O.I. expectations (many salespeople never stop to find out what a "successful outcome" looks like to a client)
  • Salesperson:  "Let me ask you Tom...as you think about your situation after you would start using a service such as ours...what return are you expecting to see?"
  • Client:  "Well...I'd say a 4-to-1 return is about where we need to be"
• Ask HOW they arrived at this expectation...this will tell you a great deal about the sophistication and experience level of your buyer
  • Salesperson: "Now you say you're looking for a 4-to-1 return...how exactly did you arrive at that?"
    • NOTE:  You, as the salesperson, need to ask yourself - Is this a realistic expectation based on what the client is thinking about buying? If NOT, we can't just close our eyes real tight and march forward.  From my days of selling radio, clients used to say "I want the phone ringing off the hook, people lined up around the block,buying everything in sight...." and meanwhile they'd be looking at a small ad package. 
      • As the seller, I either needed to dramatically increase the ad package, or lower the expectations!
  • Once you ask "How did you come up with that?", you'll see that clients will often come off their position, especially if there is no logic backing it
    • Client:  "Well...4-to-1 is what I'd LIKE to see...but I don't know if that's a realistic number..."
• Ask WHAT THEY'RE MARRIED TO...the result or the budget?  If I'm in buying an airplane and I'm clueless about what they cost, and let's say I tell the sales guy that my "budget" is around $50,000... a legitimate question could be -- "Greg...let me ask you something...which of these are you married to...spending $50,000, or getting off the ground?"   -- because they're not the same!

The reality of the situation is that clients usually don't know what to expect, or what success should look like, and unfortunately salespeople never ask or clarify it prior to moving forward with the buy.  So if the client doesn't know what success looks like exactly (or has an unrealistic view of the return), how on earth is she going to recognize it when she's thinking about whether your product or service "worked" or not?

Coming up next week...Part 2 will be on how we need to change our sales and delivery process in order to close and deliver on that R.O.I....and in two weeks, Part 3 will focus on how we can form that long-term partnerships with clients to not only deliver the R.O.I., but turn it into on-going streams of business!

GB

Sales is All About the R.O.I.

No matter what product or service you're selling, whether it's business-to-business or business-to-consumer, EVERY customer is concerned about an R.O.I. (Return on Investment). 

In fact, isn't the whole act of buying something really about hoping we get a certain "return" on our investment?  It doesn't matter if we're buying sports tickets or a sports car...or advertising, consulting services, a new roof, a second mortgage, or simply a sandwich...whatever -- when we buy something we have a certain return in mind we're hoping to achieve.

And that return could be anything from a tangible increase in business (if we're buying advertising let's say), to simply a pleasant taste and a full stomach (in the case of a sandwich)...the return is totally in the mind of the client!

Unfortunately, many salespeople approach selling from the "me first" mindset, thinking that the only "return" that matters is their own, in the form of a paycheck, commissions, bonuses, etc.  They're so obviously interested in what's in it for them, they don't even ask about what the client is hoping to achieve from the transaction!

The third main concept of my book, "Consultative Closing" is all about Selling AFTER the Sale, which is the process of focusing on what happens AFTER the client takes ownership of our product or service.  And that is really what R.O.I. is all about, knowing what the client is hoping will happen, and then going the extra step of "partnering" with them to deliver that return.

The sad reality is that 90% of salespeople have the attitude that "once you take ownership...you're on your own...I'm on to the next kill" and they don't even bother to check up ONCE on the client to see how things are going!

Thus, I've been inspired to write a 3 part series on R.O.I. starting next week right here on the blog.  Part 1 will be about how we need to discover the R.O.I. expectations...Part 2 will be on how we need to change our sales and delivery process in order to close and deliver on that R.O.I....and Part 3 will focus on how we can form that long-term partnership with clients to not only deliver the R.O.I., but turn it into on-going streams of business!

Stay tuned right here next week...now stop reading, pick up the phone and sell something :)

GB