|
Are you making customers an offer they can't refuse?
I was reading an article in Forbes Global just before Christmas entitled 'The Undeaded'. The article considered the great number of software companies who have been losing millions of $ and eating into their cash mountains built up by raising equity funding in the late 90's. The software industry is of great interest to me and this made me think about the strength of their Sales Propositions. Are the companies and their products searching for problems to solve' Are their propositions delivering real business advantage for their clients'
The issue of preparing and developing strong and robust propositions which deliver advantages to the customer, is a common problem for companies and professional firms throughout the land - and one not always well addressed.
The absence of a strong, coherent proposition which benefits customers is often one of the weak links in building a successful and profitable sale and hence a viable business. A great deal of money is invested in the employment of salespeople, the introduction of marketing programmes, networking and other 'set piece' events to generate interest in a product or service but the return on investment is dramatically reduced because the proposition presented to the customer is weak, misunderstood and lacks 'beef' and 'sizzle'!
It's like providing a mountaineer with eight days rations for a ten-day journey. He will run out of energy before he climbs the peak. This equally applies to the businessperson who is unable to efficiently articulate his / her sales proposition with sufficient knowledge, empathy and understanding and consequently loses the sale.
The sales proposition must always be framed to meet the needs and wants of the customer. [A quick working definition of these terms: 'needs' are logically-based requirements; wants are deeper, emotionally-based desires]. This is achieved first by asking in depth 'open' questions to discover the needs and wants of the customer. It is a great (but very common) mistake to launch into telling your potential customers your proposition before understanding the relationship between their needs and wants and your proposition.
What do I mean by proposition'
The proposition is built in detail by assembling the features of the product or service, together with the advantages these features deliver for the customer. The appropriate business advantages are listed alongside together with relevant proofs to support the claim. The stronger the proofs are in supporting the advantages, the stronger the proposition and the better the impression made on the potential customer. With a thorough understanding of the features, advantages and proofs associated with the proposition, the easier it will be to ask the right questions and discover whether your proposition matches the needs of the customer. There is a strong correlation between a successful sales result and a well constructed sales proposition, professionally delivered after (and only after) the customer's needs have been comprehensively understood and summarised.
The Bat,the Cat,and The RatGenesis 1:25 (King James Version)
verse 25 "And God made the beast of the earth after his kind, and cattle after their .....
Why not try this as a practical example'
Go to your local car showroom and show interest in buying a car and make a checklist to see if you are asked some of the following questions. These questions should be asked by the salesperson before he provides you with any information or explanation as to his sales proposition.
'What do you use your car for'
'How many passengers do you usually carry in the car'
'How many miles do you expect to travel in the car per year'
'What's your average journey mileage'
'What kind of things do you need to carry in the car'
'What performance are you looking for from your car'
'How important is fuel consumption to you'
'How important is luxury and comfort relating to your purchase'
'Who will be the main driver of the car'
'How important is reliability of service for you'
'Are there any other things I should know about regarding your planned purchase'
There are many other questions, which could be asked to find out the needs and wants but I do not intend to cover them all in this brief article.
If the needs of the customer are to use the car for pleasure, to travel 6000 miles per year with an average journey of 10 miles and to carry one passenger occasionally, then speed may not be so important but low fuel consumption and low cost insurance might be.
With good questions he might ascertain that the main user will be my wife. Comfort and good quality stereo together with a good security system might therefore be important.
Can you see how by asking the questions you are building a profile of the needs and wants of the customer'
You are now able to ensure that when you ultimately present your proposition to highlight the features, advantages and proofs which match the needs of your customer, the proposition will become so much more meaningful and powerful in his eyes. Equally, in a worst case sense, if your product or service does not meet the requirements of the customer you will at least gain credibility by recommending another company or product.
My experience of visiting many car show rooms with my wife last year was not good. The salespeople asked very few questions. They supplied brochures, price lists but, critically, paid little attention to my wife who was the decision maker in this purchase as she was to be the main driver of the car. (This of course raises the subject of the decision making process itself but we will leave that for another day). What's your experience of buying a car'
The comparative test
The next test of the proposition is to find out how it compares with your competition' What are the real advantages to the customer of your proposition against the competition' What are the values of your company and proposition versus the competition' How do these values support and relate to the marketing claims of the product or service' How do these values support the price'
The elevator test
This is the 30-second explanation as to why the customer should invest his time in listening to your proposition. The sales person should really be able to pass this test. It should feel both natural and smooth. The salesperson should ooze confidence, enthusiasm and knowledge as to what's advantageous and distinctive about your company, product and services.
Why not try this out with three people from your organisation to see what happens' The question could be: 'Tell me very briefly why I should buy from your company'' Remember they should be able to support their claims with strong proofs if asked to do so.
The reference and proof test
How many of your salespeople have information to hand about positive reference stories supporting the claims of the proposition' The stronger ......
Read More ...
|
