The biggest competition for you is Inertia of the customer

B2B, competition, Customers, Decisions, niche, Sales

One of Newton’s laws of Motion is – Law of Inertia – Nothing moves unless a force is applied on it.

As a sales person, for you the biggest competition you will face, is with the customer, not wanting to change the status quo. The customer always has a choice

Buy from you
Buy from your direct competition
Buy something else which can solve the problem – albeit not the same way – but solve it does
Remain with the status quo

It’s very nice when the customer buys from you. All the hardwork put up by you and your team, during the sales cycle, pays off for you and your company. In case of the second situation, where your direct competition is involved, you can take steps to pre-empt the competition, from taking away the sale. But to be fair to them, they may actually be better than you, in some cases. Either their solution is more apt for the customer or the sales person involved understands the customer better or she has a better relationship with the customer.

If the customer solves the problem with a different method, then you could be caught off-track. When I was involved in selling single and dual loop process controllers, a lot of times , after, SCADA systems became more affordable in India, I found, customers thought it better to go in for the complete SCADA system, rather than buying a controller for 2 processes. In other example, a person may prefer to travel by road instead of taking a flight. So the airline company lost the deal while the petrol/gas companies and hotel companies got business. In either of these situations the customer did go for a solution, it may not have been the solution which was being sold by you.

The worse situation is when after putting in months of effort, you realise that the customer is not willing to change. This is more painful in case of high value B2B sales, where multiple teams have to be involved to create a solution for the customer.

In B2B situations, the easiest situation for the customer is to not change anything. If it ain’t broke, why change. Change can mean that the new product/service will not work. If it doesn’t work, the peer level pressure that the manager will face will be enormous. It will be the manager’s failure, which will be highlighted to her forever, until and unless she works in an organisation which likes to try new things to succeed.

Sometimes it is easy to find out if your solution is moving forward or not. At other times you have to question the assumptions at different levels of the company’s hierarchy to identify if there’s any chance that your solution will be held back to maintain status-quo. It sometimes happens that you may have a sponsor at the lower level of the organisation, who wants to adapt your solution, but her manager may disapprove because she is scared of failure.

It may also happen that the benefits that you believe your solution will bring to the customer, is not what the customer believes. In that case it is your responsibility to showcase the benefits. On the other hand if the benefits are only going to “move the needle” marginally, then the customer may not be interested in moving forward and taking the risk.

The best way I have found, though not always successful 100% of the time, is to question the customer(s) on why they want to go in for the solution. What is the benefit they are assuming the solution will bring for them and why is the benefit(s) important to them. And then check this same thing at different levels of the hierarchy. If at any time you notice a dilemma or a “Re Flag”, you need to get cautious and keep digging till you find out.

If you focus on any niche in the market, then this becomes a lot easier to handle, because 80% of the issues that companies have will be similar and you can learn to unearth the issues in advance.

Till next time then ….. identify if your customer has any inertia holding them back.

Carpe Diem!!!

Sometimes losing a sale is good, in B2B

B2B, Customer Delight, Customers, losing, Sales

As a business leader, there are a lot of times when you have to take a decision on pricing which results in losing a deal.

I have had to take many such decisions and the sales persons involved in the deal get really upset since they misses their target because of that decision.

See, its very easy to discount to win a deal, but if after winning the deal you’re not able to execute because it’s way out of budget then you get a terrible name. In B2B, if you fail to deliver or deliver badly, then you can be sure that you will not get business from that company again and if the manager involved in the decision , goes to some other company, she will ensure that you do not get business from there also.

I have had a couple of instances where we lost the order, then the vendor who was awarded, did not deliver and after one year of struggling, the customer called us back and gave the order without any negotiation.

And since we did a good job there, they gave us multiple more cases.

The advantage of B2B is that once you do a good job, then generally, the managers want to keep working with you. The inertia and the political situation in the organizations mean that a manager doesn’t want to try a new vendor if she can.

So even if you have to lose a deal, its okay because you will get many opportunities to win. But if you do a bad job, because you don’t have the money in the deal, then you will lose the client forever.

Till next time then.

Carpe Diem!!!

Playing the Devil’s Advocate in B2B sales to realise higher prices

B2B, compelling, Customers, Sales

I have a major challenge pushing my sales people to sell at a higher price. They always have a pushback on the price saying the customer won’t buy. And we have big arguments.

Is this something you face. Is it difficult for you to charge a higher price for your services. Do you always end up losing orders, because your price is “high”

One technique, which I have shared to a small extent earlier also, is to play the devil’s advocate with the customer. There’s a caveat when you want to use this technique – you have to be sure that you provide the best services. If not, then first go and put your house in order. Learn to provide the best possible services at whatever price that you think is good.

With the devil’s advocate you make the customer convince you that she wants to do business with you. If the customer is able to convince you, then she can, internally, within her organisation, also convince people. Most of the times in B2B scenarios, the customer is surrounded by so many vendors who are all trying to say one of two things – I am the cheapest and / or I am the best. And the customer doesn’t believe any of them. In addition a lot of times, the person who is representing the customer, is also not clear why she wants to go after the solution. Most often its because someone higher up in the “pay grade” has asked them to find out.

So some of you would already be squirming that it’s not possible to raise the value of your offering. Just be with me for a minute and try this in your next meeting.

So first of all start with the first WHY – why are you wanting to do ‘this’ – whatever it is that they have asked you to come for, to discuss. Then you get to the second WHY – why is ‘this’ important in the bigger scheme of things in your business.

The third WHY starts to get you to figure out the value from a business perspective – WHY are you considering ‘this’ kind of a solution, couldn’t you have done it way cheaper by doing ‘that’ where the ‘that’ is an alternate and much lower price way to solve a problem. A very simplistic example of this would be – what are you wanting to buy a truck for, when you can use a bullock cart to transport the goods at a much lower cost. This will get the customer to come out, with what it is , that is key to them – a truck can carry longer distances faster and we want to get our products to de delivered to the farthest parts of the country. A bullock cart would take months and our competition will capture the market during that time.

Now you are getting a feel of what is important to them – long distance travel, fast.

Now comes the fourth WHY – I get your reason for not considering a bullock cart, but why are you wanting to consider our 10000CC trucks (just a a random figure) when you can have cheaper 5000CC trucks (another random figure) . At this stage if she says Yes we are considering 5000CC trucks and they are happy with that option, then they will expect your price to come closer to the 5000CC option and you will only play a losing game.

On the other hand if she says, I understand that the 5000CC trucks are cheaper, but their ability to drive continuously is limited to 3 hours while we would prefer if the truck can be driven continuously for 7-8 hours, then you now have different playing field. And you have not had to convince her.

You need to remember that in B2B scenarios, you are looking at professional buyers, who do buying all the time and want to compare you always with the lowest priced option. And you can keep trying to convince them of the value you bring but they won’t get convinced. However once you make them come out with the issues themselves, it becomes a lot easier since they are now providing all the compelling reasons.

Till next time then.

Carpe Diem!!!

The best companies who could use my marketing advice

B2B, Business, Customers, ideal customer, lead generation, Marketing, Riding the elephant, single target market

I keep talking about a lot on the way you should identify the market, how you should target a segment and niche it . I talk about the challenges that come up when targeting the B2B space for a complex sale and how you can go about addressing them.

While most of whatever I talk about is overall good marketing practice, this is specially useful to people who own, run or work for companies who are less than $50 million in revenue, sell mid to high value products in the B2B space.

If you sell low dollar value items, then maybe a few things – especially about mapping different people in the organisation or structuring a value proposition or identifying the ecosystem may not completely be of value to you.

If you have already crossed the revenue of $50 million then chances are that you already are doing things and putting up systems which have helped you reach such a large turnover.

Its the companies, who are reaching about half a million dollars and want to break into the million dollar league and build processes which bring regular leads, who can benefit most from what I write. These would be my Ideal Customers.

All the concepts whether its the Single Target Market or the “Riding the Elephant” can provide immense leverage to companies who want to grow dramatically.

Till next time then.

Carpe Diem!!!