This column strives to achieve some insight into “best practices” through some of Mike’s own worst practices. Every Tuesday he offers up the biggest mistakes, oversights, blunders and bonehead moves he commits in the fast-paced world of software-as-a-service, where he’s a Marketing Manager moonlighting as a Sales Account Executive (at the same company.) Perhaps, in the process, we may learn a thing or two.
Lately I’ve been hitting some snags in my sales cycle. Without a doubt, my strength lies in the early stages of the sale. I have diverse and creative methods for finding leads, including strategic Twitter feeds, discussion forums, and bartering with partners. As the Marketing Manager for the past two years, I’ve been crafting our messaging, so I know it inside and out and can generate interest very quickly and lock in meetings.
However, I’m having trouble closing. I even watched the Glengarry Glenross monologue a couple times, and while feeling motivated (and a little browbeaten), I don’t feel educated.
I try to reassure myself that my current losses must be chalked up to experience, but that doesn’t satisfy. I’ve closed a few big deals after all – was I just lucky? Perhaps. I think there are very finely honed skills, intuition really, a sense of where the buyer’s head is and what to do next, that I have seen in experienced account executives I’ve worked alongside lately – and I do not have those skills.
I was working a pretty fair sized deal, over the course of about 2 months, and was feeling the pressure to close it by the end of February. Our sales coach gave me some advice during our sales meeting to push for the close and offer up a meeting of “executive sponsors.” I was so amped, I called right after the meeting. I left a message and got an immediate callback – the prospect must’ve been on the phone when I called. I could sense the cold, sharp tone in her voice as soon as the conversation started – and it only got worse. As I carried out my proposition, and explained I was calling to check in and see how realistic a February close was, I was faced with a no-nonsense reply – that I was “pushing too hard” and “it’s not going to happen.” Ouch!
Needless to say, I’ve backed off. But when do I revisit? I had a great offer on the table, and they really are a perfect fit for our services. Did I kill it? I feel like the honeymoon’s over, and I’m faced with a totally different situation. Similar to the Ben Stiller remake of “The Heartbreak Kid” – but possibly less painful an experience.
Another case, even more brutal because I’m pretty sure we didn’t do anything wrong. The largest deal I’ve ever been a part of has been a 4-month long RFP process, of which we made it from 10 vendors, down to the final 3. Then we hear that the project has been axed by the CFO, and that we were chosen as the winning vendor before it happened. Twist the knife, why don’t you!? I know this one seems out of our control, but we have to try, right? I feel frozen in my tracks on this one, just no idea how to proceed without appearing to disregard an executive decision. At the same time I feel I’m trying to change minds, even though now my interests feel too selfishly motivated. It’s easier to have a sense of neutral altruism when you are still trying to win the hearts and minds, as opposed to the dollars and cents.
I found out that I’m losing another deal today because our pricing is more than double what the buyer can justify paying for the service. Ouch again – I am still not entirely comfortable with the part of the sales cycle when you discuss budgets. For open-ended projects that involve high-volume licensing, consulting hours, and in-depth scoping, how do you go about discovering what someone can pay before quoting an astronomical amount? We can’t come back and say, “Oh, just kidding, now that we know you can pay us 40% of our quote, now that’s the price” because it strips all of the meaning from our prices. Is this deal lost, or is this just an opportunity to attempt a negotiation?
Man, closing is tough. I might be unbelievably unlucky and trying to succeed in enterprise sales during the worst economic crisis of my adult lifetime, and maybe it’s good experience getting these hard knocks out of the way early, but I’ll be damned if I don’t go down without a fight on these!
Any sage advice from Daily Anchor readers will go directly towards my selling strategies this month, and I’ll certainly update this thread with my successes and failures. Stay tuned!
Photo credit: Thomas Hawk
{ 3 comments… read them below or add one }
Just got some great insights from a Salesopedia podcast with Jill Konrath: http://www.salesopedia.com/podcasts-mainmenu-10171/february-09/1837-closing-can-kill-sales.html
Hi Mike,
Well times are a great deal more difficult now with an economic downturn. Sales techniques that worked when business charts were headed up every month, won’t work now.
This is my fourth recession and never ceases to amaze how slow sales managers are to recognize the new realities in an economic downturn. Many are the classic image of an Ostrich with its head in the sand.
Difficult economic conditions require adapting one’s sales style to a slower pace and reducing expectations. In this difficult environment where Circuit City, Linens ‘N Things and Mervyns are no more, it is very important as a salesperson to look beyond satisfying needs and wants.
Rather salespeople now must look at the financial viability of an organization. Your best client now may be ready to file Chapter 11 next week. This requires discretely snooping around and looking for the tell tale signs of a cash flow shortage and a credit crunch. Is your client laying off people? Is their inventory stacking up, or not being replaced as it is being sold?
In your sales presentation, as a part of recognizing tough times–have you included more qualifying questions? Are you allowing your client to tell you about how the difficult economy is affecting them? If you pose the questions they will tell you, and most likely be relieved that you understand.
Has your company come up with new financing tools for your clients? Did you include those details in your presentation? Did you actively seek objections from your client?
As for the dilemma with your February sales slam, if it were me, I’d do the following:
1) Send flowers with a very nice card begging forgiveness. (Don’t go cheap)
2) Follow up several days later with an invitation to lunch at your client’s favorite restaurant.
3) At lunch, let her do the talking and Listen, Listen, Listen. Do not make a presentation. Do not try to close the deal at lunch.
4) Over dessert ask if there is a good time next week when the two of you could get together and finish your business.
Closing a business deal after a long time is really really really tough, but maintaining relationship with the customer is what counts, no matter how longer.