Sales

June 11, 2014 By Pensare Group 2 Comments

Customer Experience and Customer Loyalty – $B Dollar Insights from Oracle and Sprint

“Customer experience (CX), customer loyalty… honestly Lesley I cannot keep track of the buzz phrases. Isn’t this just customer satisfaction presented with different language?” This was a question posed to me recently from the CEO of a growing government contracting firm who was genuinely convinced that the management consulting practitioners had created yet another “paradigm” to capture the essence of what we already know. Fair enough – there is no shortage of old ideas dressed up as new insights when it comes to business advice!

But sometimes the language really does matter. Listening to senior leaders from Oracle and Sprint at a recent CXPA* conference in Atlanta further underscored that conviction. Jeb Dasteel (Oracle’s Senior Vice President and Chief Customer Officer) shared fascinating analysis that demonstrated exactly how a strategic focus on the quality of the customer relationships has led to a significantly higher customer spend – 8 times higher to be precise. How did they do this? “Relentless focus” on customer and employee engagement, truly understanding what drives your customer’s loyalty and engaging directly with your customers were just a few of his keys to success. (Reach out if you would like to hear more about the “how” – it was a rich discussion.)

And if significant revenue increase is not sufficient justification for investing in strengthening customer experience and customer loyalty, listen to what Bob Johnson, the President of Sprint Retail, had to add. By focusing on customer experience (and in Sprint’s case – intense focus on first call issue resolution as opposed to “hold while I transfer you to my colleague), 74 call centers have become 40, operating expenses have been reduced 50%, and Sprint has saved roughly $1B annually since 2009. Using a motto of “serve, solve, satisfy”, Sprint is realizing enormous financial returns without even taking into account the reduced “churn” of customers and the positive impact that is having on their bottom line.

In our experience, the difference between satisfied and loyal customers can represent millions of dollars in revenue, reduced sales and marketing costs, and lower operational/customer service expenses. Understanding why is the simple part – stronger customer relationships results in more repeat business, new sales into existing customer accounts and last but never least – referrals to new customers. That is not a new insight for senior management and executive teams. Where it gets interesting is when you transfer that knowledge down into your organization and ask the teams who actually deal with the customers on a daily basis – “How do you provide value to our customers, and how can we strengthen those customer relationships?” Sprint and Oracle are deservedly proud of their CX turnaround – what are you doing to shift from good to great, and create loyal lifelong customers? We’d love to hear.

*CXPA – Customer Experience Professionals Association (yes – there is even an association now…)

December 20, 2012 By Pensare Group 2 Comments

First Hear to Be Understood

“Intellectuals solve problems; geniuses prevent them” – Albert Einstein

listen_clip_art How often have you worked through a sales discussion, building in questions, getting clarification and buy-in from the prospective customer along the way, only to face hesitation when you ask for a commitment?

Even if the prospect understands the value of your product and recognizes the benefit, sometimes he or she won’t be willing to commit. Why does this happen? There are many possible reasons. The prospect might be the type of personality who needs to investigate every option before coming to a decision, or be someone who fears making a mistake. She might simply be gun-shy after a recent poor decision. It’s your job to find out long before you ask for a commitment.

It is far too common for someone in a sales situation to create problems and concerns by focusing on issues that don’t interest the prospect – ever seen someone prattle on about what he thinks you want to hear without using standard illustrations that don’t apply to your specific needs and interests.

To prevent objections you must first question and then listen so you can later be heard. Seek to know your potential customer, his specific concerns (those that keep him up at night), and what he actually wants. Remember they don’t always make this easy. You have to work for this level of detail. Use “open-ended” questions to gain as much information and insight as possible. Look for personal needs or wants – those issues that have personal meaning, and therefore will have personal value (not just organizational value). Also, look for clear measures like time savings or cost savings. If you’re using your “open-ended” questions, properly, you should have a good understanding of what they need versus want. And you’ll recognize what is organizationally motivated and what is personally motivated.

Once you begin to understand, think before you speak. First, pick out the key items that have value to the customer and confirm you picked the right ones. Her feedback loop often surfaces latent needs.

Next, mentally map out how your offering addresses the issues she values the most. Structure your dialog to discuss how your capabilities address the most important issues. Now, test your theories through possible outcomes. “So, if growing the topline by 25% is your key goal, would it benefit you by having access to [fill-in-the-blank]?” What happens if you’re not able to get access to good, quality [fill-in-the-blank]?”

This is how to prevent objections. Think about it. If you don’t fully understand the prospect’s issues and the value of resolving them, then you haven’t asked enough questions and you become just another vendor. The customer probably doesn’t believe you’re hearing him, and therefore concludes you can’t help him – like everyone else who doesn’t understand his needs. That’s why cusotmers raise objections or create pushback. They make you work for it.

Following our approach not only removes barriers in your dialog, but also raises your credibility and creates competitive differentiation in the sales process. You’re different and they like it. This approach also increases your ability to deliver an outcome the customer actually values, instead of an outcome you believe she values.

November 18, 2012 By Pensare Group 1 Comment

When Objections Give You an Advantage

“Obstacles don’t have to stop you. If you run into a wall, don’t turn around and give up. Figure out how to climb it, go through it, or work around it.” -Michael Jordan

wall_as_obstacle

Michael Jordan is right, of course. But in the sales context, let’s take that one step farther. Don’t just think about how to overcome objections … figure out how to use it to beat the competition.

Objections can come at any point in the sales process. An objection is a legitimate concern about you, your organization or the product you are offering. And it’s important for you to anticipate and unearth objections as early as possible to turn them to your advantage

Here’s an example. Let’s assume your service is significantly more expensive than the competition because you provide follow-up customer support others don’t offer. Most likely your prospect knows the competition is cheaper.

Confront the objection head on and early on by introducing the issue first. If you put it on the table, you recognize the concerns and are able to openly position around the objection. Use questions like “What have you experienced in the past buying [XYZ]?” “What have you seen in the market that you like?…Don’t appreciate?” Listen and learn. Then, you’re ready to address the common objections that might rise in their context.

Once you understand someone’s experiences – good and bad – you can begin to anticipate what the prospect is thinking and position how your approach brings value. In some cases, you can shift your approach to address his concerns. For example, if someone finds it difficult to swallow $50K because once he took the risk and the vendor didn’t deliver. Maybe you can work on options that reduce the prospect’s risk– he might even pay more for the peace of mind!

It helps to contrast benefits of having what you offer with the consequences of not having it. In the example above, you might make the case that your approach saves the prospect frustration and staff time, thereby making your offering more cost-effective in the long-run. If you really want to bring the point home, use a strategic bragging story to bring it to life. Be sure to use concrete data when relaying how your service saved another customer time or money.

Use questioning techniques to get information on possible objections first. Ask what the prospect thinks are the biggest obstacles to make sure you’re not assuming but listening. Confirm that your understanding of the obstacles is correct – this often surfaces new information you would not otherwise get.

Most importantly, control the objections dialog by putting objections on the table as early as possible rather than waiting for the customer to bring them up at the end.

These tactics are more likely to yield the response you want: a positive decision when you ask for a commitment. By anticipating the prospect’s concerns you have simplified her ability to commit. By connecting solutions to objections to value that’s prized by your prospect, you’re building credibility demonstrating you anticipate her needs, understand the value of her time and anticipate the sunk cost and frustration of wasted staff time.

October 21, 2012 By Pensare Group 4 Comments

Satisfaction Guaranteed – So What?

Did you know it’s time to throw out the old notion that having satisfied customers is the path to a successful business?

Think about it. If you’re merely satisfying your customers than you’re earning about a “C” grade. You provided a product or service, and got paid for it. It was a tit-for-tat exchange and that’s the end of it. There’s no certainty of return business. Customers are just as likely to use someone else the next time if all you have done is fulfill their request and deliver what they think they paid for.

Think about the restaurants you return to again and again, or your regular drug store or dry cleaner. Sure, price and location have something to do with where you spend your money. But chances are you frequent these businesses because they go out of their way to create an emotionally positive experience for you. I stick with my pharmacist because he takes the time to talk to me about all of my medications and any possible side effects when my prescriptions are being filled. And why did I choose my grocery store from a handful of options that are just as close and carry the same items? It’s the little things like the cashier who hands me an extra store coupon from behind the counter and the stocker who addresses me by name then shows me where he just stocked the unblemished apples.

These interactions have something in common: they create a positive and personal experience between me, the customer, and the store representative – Joe (the cashier) or Sally (the stocker).Personal attention with a giving attitude creates a relationship resultinng in my loyalty to the individual and, ultimately, the store.

Loyal customers come back … again and again. In today’s tough economy that’s critical. By definition the loyal customer comes back to use your business repeatedly, which in turn produces a much longer and stronger income stream. In fact, businesses that emphasize customer loyalty tend to grow about twice as quickly as those that do not.

Here’s another benefit. The loyal customer feels vested enough in your business to tell others about their positive experiences. That’s not only free advertising, but also the most effective advertising there is! Recommendations from friends or colleagues are far more effective that any advertising campaign – and it works to drive business. Think about how you came to select your favorite doctor or dentist and you’ll know exactly what I mean. More than likely it was a recommendation from a friend, rather than a splashy ad, that guided your selection.

If customer loyalty is the goal rather than customer satisfaction, you might ask, “How do get there?” It can’t be an afterthought; it has to be part of your organization’s culture.

That means everyone in the organization needs to be on the same page — valuing customer loyalty and aiming for that with every personal interaction.

September 30, 2012 By Pensare Group Leave a Comment

Networking: Your Best Self-Marketing Tool

istock_000008140633xsmall When it comes to making professional contacts, the term networking is being thrown out all over the place these days, and it’s easy to confuse virtual interactions with the real deal. Just so we’re clear: “Friending” on Facebook or inviting others to join your LinkedIn page have their place but they are no substitute for professional networking by attending events and following up with those you meet. Effective networking simply involves establishing a meaningful connection.

It helps to start in an environment where you have something in common with others, for example, professional associations or philanthropic organizations. Try a local alma mater group where you might run into someone you know. Great connections often come from a referral from a friend, so don’t hesitate to ask others what they would recommend.

Networking should be an integral part of your professional life. But there are ways to do it well and get the most out of your networking experiences. Here are my top tips for making the most of networking:

#1 Know why you’re there. You’re there to meet people. So meet people! Reach out and introduce yourself, but take the time to get to know each person you meet. It’s not about the number of cards you walk away with, rather the number of people you meet who would want to invite you to a follow up call or lunch. Consider setting goals that focus on the most productive outcomes such as being invited to lunches or encouraged to follow-up next week. Another goal could be getting to know something substantial and personal about X number of people at an event.

#2 Make friends first. The biggest mistake you can make at an event is seeing everyone in the room as a prospect then wasting their time and yours with non-productive follow-up lunches or calls. People know when they are a target, and they will resist you. First seek to know the person – make a friend so they want to do business with and help you. As you know, creating strong relationships takes an investment of your time and theirs.

#3 Be selfless. This is an attitude, and an important one to adopt. Go into every networking situation with the mindset of “How can I help you?” instead of “How you can help me.” This attitude is particularly important on a follow-up call or lunch. Appreciate the fact that someone is giving their valuable time to you. Assume they see the time they give to you as an investment – so make theirs a wise one by giving them something they need. Of course, thank your contacts for their time before and after a meeting. But, more importantly, find a way you can help them. This gives you a natural and welcomed way to follow up yet again while continuing to strengthen the relationship. Be overt about helping if you have to. What’s wrong with asking “Is there anything I can help you with?” Giving first is a clear way of creating the most meaningful connections.

#4 Look everyone in the eye whenever you can. When you go into a networking event assuming everyone’s a prospect your eyes give you away because they focus on reading every name tag that floats by. If you make a connection with someone, then focus on having a conversation with them. And if you really want to remember their name, introduce them to 1 or 2 people you know.

#5 Meet in person. Remember, when you’re seeking information or help from someone in your network, you’re more likely to make a stronger impression and get more out of the connection if you meet with them face-to-face rather than communicating by phone or email – it’s your time to shine, take advantage of it by presenting yourself with poise and confidence, and reinforce your position with positive body language. Whether you’re looking for a job lead, feedback, a reference or information about generating new business, you are more likely to get what you need if you’re face-to-face. The reason is simple: It’s harder to say no to someone when you’re looking him or her in the eye. Networking should be integrated as a part of your job description. Whether you put it on your weekly to-do list or approach it informally, it’s important to regularly and consistently work to grow and strengthen your network. Make building relationships your highest priority – this approach will lead to more established contacts and friendships that can have a positive impact on every aspect of your
professional life.

April 22, 2009 By Pensare Group Leave a Comment

Satisfied – or Loyal – Customers?

Is there really a question?

According to author, Jeffrey Gitomer -”Customer Satisfaction is Worthless, Customer Loyalty is Priceless”

Apparently companies like Costco understand the difference. They have been recognized as the leader in customer loyalty among warehouse retailers, rocketing from start-up to Fortune 50 status in less than 20 years, while spending next to nothing on advertising and marketing because of word of mouth referrals. They know that companies with the highest customer loyalty typically grow at more than twice the rate of their competition. And, by raising customer retention rates by 5% it is possible to increase the value of an average customer by 25% to 100% (The Loyalty Effect, F. Reichheld). Rather than spending time trying to remember if you’ve ever seen a Costco advertisement, let’s talk about behavior and why emotions matter in the customer experience.

Regardless of how high a company’s satisfaction levels may appear, satisfying customers without creating an emotional connection with them has no real value. This should be a red flag issue, especially when you consider that it’s reported that 90 to 96% of customers won’t complain. They simply walk away. Emotions Matter…because customers and staff are always emotional, and in service industries where the interaction with customers is often personal and stressful and the emotions are more intense. A healthy way to view emotions is not as a problem But as the basis for forming relationships – This is how to develop loyalty!

Start with a discussion about the vision of the company. If it’s written, you can usually find a statement about customers under glass on a conference room wall. It often goes something like this – “We believe Customer Satisfaction is our #1 Priority.” But when you ask people inside the organization what that statement really means and how it is measured, the silence is often deafening. If the people in the organization don’t have a clear definition of what you mean by customer satisfaction, then how do they convey it to your customers?

I have come to the realization that “Customer Loyalty is all that matters,” especially when you define loyal customers as people who will do business with you again, tell others about you without hesitation, and refer people they care about to do business with you. Hugh McColl, founder of North Carolina National Bank, ultimately became Bank of America had a simple philosophy: “I take care of my people, my people take care of my customers, my customers take care of my shareholders.” He never said, “I want to be the number one bank on the planet.” Loyalty is earned. It stems from actions that are taken and the words that are spoken by employees. It’s not just business as usual!

By Norm Gauthier. Reprinted and adapted with permission for Sorrell Associates.

February 2, 2009 By Pensare Group 5 Comments

Sales Success and Goals

90% of people in direct sales set goals but never reach them! Why is that?

We see from surveys, experience and observations that many sales professionals set goals for themselves or the business yet never reach them. We want to reach the goal, but we often fall short. Did you ever wonder why and what to do about it? Here are some common reasons and approaches.

We lack motivation. Consider evaluating the goal and the benefit of achieving the goal. Many times we find that the lack of motivation is the result of losing sight of the end game or personalizing why life will be better if you achieve this goal. Clarify for yourself exactly why dedicating effort to achieving a goal is critical to your eventual success.

Goals are not congruent with our values and beliefs.You will continue to struggle working towards goal completion if they do not align with your internal compass. You are much more likely to address deeper personal objectives. Make the connection between where you focus your sales efforts and your beliefs.

Goals are too easy or unrealistic. Find the fine line of setting goals realistically high or there may be no desire to attempt them at all. If our goals stretch us enough we are exhilarated once we achieve them, then our goals are set realistically high. When set too low (that is, too easy to achieve) or unrealistic, we often find ourselves not working to achieve them because we simply don’t see the point.

Goals are not our own. We may not connect to the reason behind achieving the goals resulting in lack of motivation discussed above. Evaluate each goal and determine the “WIIFM” (what’s in it for me). Goal achievement proficiency sky rockets when we truly understand our own role in the effort and the personal impact of the results.

We don’t write down our goals. Without a written plan, we find ourselves unprepared to address obstacles that come up along the way. In this fast-paced world, people vie for our time, which can derail achievement of our goals. By creating a written action plan to achieve our goals, we will have a clear path defining who, what, where, when, why, and how we are going to accomplish our goals as well as where we are on the on the path to success.

Goal setting is one of the most powerful sales tools known. It can help us achieve more in less time! It is one of the common denominators of all high achievers.

In fact, crystallizing goals is the first step to Success in Sales. Why? Because the key to success in sales is excellence! The key to excellence is planning! The key to planning is commitment! The key to commitment is having a clear picture of your future and how you plan to achieve it!