Winning Sales Questions_Guide.pdf

Winning Sales Questions 550 Powerful Questions to Engage, Motivate & Differentiate Jill Konrath Author, SNAP Selling & Selling to Big Companies Winning Sales Questions Table of Contents 1. Questions, Questions, Questions A Person of Questionable Character Quick, But Important Tips 5 2. The Incredible Power of Questions What makes some sellers so successful? Pitching: a common, yet destructive sales behavior The negative impact of short listening spans 10 3. What Customers Really Want The trusted business advisor Customer’s desired business results Questions differentiate top sellers from competitors 17 4. Never, Ever “Go for the Close” If only their closing skills were better How to get orders if you don’t close 25 For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 2 Winning Sales Questions 5. Selling Conversations, Not Sales Pitches Diarrhea of the mouth Repositioning: from pitching to discussing The right way to prepare for sales meetings Overview of an effective 1st meeting Lean back! Lean back! Final tips: guaranteed to make a difference 29 6. Highly Effective Initial Meetings Open the Conversation Lead the Discussion Advance the Process 38 7. Powerful Executive Meetings Knowledge is power Questions on: Mission & vision Goals & objectives Industry/market trends Strategic initiatives Primary challenges Your customer’s customer Competitive landscape Corporate culture Organizational structure Departmental overview 44 For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 3 Winning Sales Questions 8. Turning Prospects into Buyers The fallacy of low-hanging fruit Invest time with customers who aren’t ready to buy Become invaluable to customers Understanding the current situation Uncovering problems and gaps Exploring the “Ripple Effect” Clarifying the value 64 9. Winning Competitive Situations What’s the reason for a change? Determining the decision process Clarifying the decision criteria Understanding players & politics Finding out financial issues Uncovering the showstoppers 99 10. Is Anyone Listening? Listening tips & techniques Get comfortable with questions Final thoughts 120 About the Author 124 © 2010, Jill Konrath. All rights reserved. No part of this book may be reproduced without written permission from the author. For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 4 Winning Sales Questions 1. Questions, Questions, Questions It’s better to know some of the questions than all of the answers. “If I could show you a way to increase sales by 150%, could we do business today?” I hate questions like that. I feel like I’m being set up and the seller will pounce on me as soon as the trap is set. I also hate it when these same “salespeople” blab on and on about their wonderful products. – James Thurber Do you sometimes feel like you have to act like those salespeople when you put on your sales hat on? Does the thought of doing it disgust you? If so, this book is for you. You’ll find out how to sell without self-serving spiels, manipulative techniques, strong-armed tactics or high-pressure closes. It'll also help you take your sales to a new level – a much higher level. By learning the skills in here, you’ll immediately be better than 90% of the other people out there selling in business-to-business markets. But first, a little background. A Person of Questionable Character Asking questions is such a natural part of my life that for years I never even considered it a valuable skill. It was just what I did. Perhaps I’m naturally curious. Maybe, as some have suggested, I’m just plain nosy. But I’ve always asked lots of questions. My first real job was as a high school teacher. After several months, my principal came to observe me in action. In our debrief session, he asked how he could help me improve my teaching skills. For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 5 Winning Sales Questions I 'd recently noticed that asking questions helped my teaching. Kids remembered things better and could figure out how to apply the information to their lives. “I want to learn more about asking good questions,” I told him. “We never covered that in college.” “You’re the first teacher I ever had who wantedto learn more about asking questions.” – Principal, Hudson Senior High School I was a bit surprised by the response. About a week later he came back and handed me a thick book. Opening it to page 256, he showed me a paragraph on questions and told me it was all he could find. Disappointed, I thanked him. After several years, I left teaching and moved into sales with Xerox. Our new hire sales training focused extensively on questioning skills. I thought I’d died and gone to heaven. From the bottom of my being, I understood what was being taught. When I leveraged my questioning skills with my prospects, I got results! However, understanding the complexities of the business world was a different matter. The politics confused me and I struggled with the rationale behind decisions that were being made. “Why do you keep asking me all those questions?” – Xerox Sales Manager Fortunately, she answered most of my questions. But, there were times I drove her crazy with everything I wanted to know. For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 6 Winning Sales Questions When I left Xerox, I sold technology. I had a lot to learn. New product launches were particularly difficult. When Marketing came to our branch with their ‘dog-and-pony’ shows, my hand was always in the air. I asked how customers currently did things, the problems they had with existing methods, how these problems impacted their business and the value they got from the new product. “Don’t ask me that question. You’re the one in sales. It’s your job to find that out.” – Marketer, Computer Company Those poor product managers dreaded presenting to groups I was in. Much as they tried to discourage me from asking questions, they couldn’t stop me. By then, I knew how important good questions were for sales success. And, I needed this information so I could develop my own sales questions to use with my prospects and customers. Good, well thought-out questions make people think. As a seller, you want customers to be thinking too. You want them to think about the true costs involved with their current processes, products or vendors. When they’re making decisions to buy, you want them to think about the total cost of ownership versus the lowest purchase price. Or, how to get the buy-in and support they need inside their company into order to get the approval to move ahead. In short, the questions trigger and direct your prospect's thinking. They give you much-needed information. And, they engage your customer in the process and in building a relationship with you. That's why mastering the art of asking questions is so important to your sales success. For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 7 Winning Sales Questions Quick, But Important Tips Here are some tips on how you can get the most value from this book: 1. Make the questions yours. The samples in the book are simply guidelines. Some questions will work for you “as is.” Others will need to be rewritten to work for your industry, market, customers and buyers. 2. Do role-plays focused on asking good questions. Asking questions is a skill. It is not natural. That's why you need to practice it in safe situations. You even need to practice how you word the question too. Sometimes just a slight change in wording can turn a weak question into a powerful one. 3. Notice what works and what doesn't. After you've talked with a prospect, write down questions that worked well so you can use them again. Also, take note of questions that were confusing or seemed lame. You need to omit them from future calls. Your challenge is to figure out the best questions you can ask at each stage of your customer's decision process. 4. Develop your own Top Ten List. Experiment with the various questions till you find some that always work for you. Bring this list into your calls; refer to it in your meetings. It will keep you on track and you’ll accomplish much more. 5. Use the questions over a series of meetings. Please don’t cram all the questions you could possibly ask into one sales call. Too many questions will backfire on you. Besides, you need something to ask the next time you meet. For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 8 Winning Sales Questions 6. Plan different questions for the different decision makers. There is no one-size-fits-all set of questions. Some decision makers are concerned about how things work. Others are interested in the financial aspects, decreasing costs, increasing sales or gaining a competitive edge. Select different questions for each person. 7. Ask questions in a conversational manner. You can’t develop relationships with customers if they feel you’re following a written script or filling in a survey. Focus on the people and the discussion. 8. Be curious, find the hidden gems. In my experience, the best stuff comes after the initial response. Ask 2nd and 3rd level questions by exploring people’s answers and inviting them tell you more. This is a resource book, not a one-time read. Keep it handy so you can refer to it whenever you need some ideas for upcoming sales meetings. If you really want to understand the concepts though, you’ll read it from start to finish – probably more than one time. Winning Sales Questions doesn’t have to be read in a sequential manner either. If you’re meeting a hot prospect in an hour, skip ahead to the appropriate chapter right now. That’s where you’ll find the help you need. Keep this in mind all the times. By developing your questioning skills, you will win more sales. It's that simple. It'll transform your relationships with your prospects and customers. Guaranteed. So let's get started! For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 8 Winning Sales Questions 2. The Incredible Power of Questions “He who asks is a fool for five minutes, but he who does not ask remains a fool forever.” – Chinese Proverb 163% of quota. That’s what my numbers were after only seven months in my first sales territory at Xerox. I was delighted how things were going, but not quite sure how they’d turned out so well. One day Vern, a seasoned sales professional, cornered me in a narrow hallway of our offices. He was a tall imposing man, much older than me. He had a long track record of success. His very presence intimidated me. Reaching out his arm to block my passage into our team room, he leaned close and said in his deep, gravelly voice, “OK, what are you doing to get all those orders. Tell me how you’re closing them.” My eyes grew wide with astonishment. I didn’t know how to answer. I couldn’t think of even one time when I’d asked a closing question. “Vern,” I said slowly, dreading to admit the truth, “I’m terrible at closing. I really wish I could do it better.” “C’mon,” he replied sarcastically. “Don’t try to pull one over on old Vern. You must have some great closing questions with all the orders you’re getting.” “Honest Vern, I’m really bad at it,” I answered. “In fact, I’m so bad at it that my customers have to close me. They usually end up asking what it takes to get a copier or if they can pay for it over time.” For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 10 Winning Sales Questions He looked at me, disgusted. “So you’re going to keep it a secret?” “I’m telling the truth,” I replied, embarrassed. “I’m so bad at closing, that customers have to do it themselves.” He walked away, shaking his head. He barely talked to me again for the next couple years, convinced I was holding back my closing secrets. Despite great success, there were many times in my early years that I felt like a poor excuse for a sales rep. I didn’t know how to close. I had read many books on closing, but the tactics seemed so manipulative and trite. Just the thought of asking, “If I could reduce your costs by 10%, can we do business today?” made me want to throw up. I would never buy from someone who asked that. I couldn’t close. Maybe I should say I wouldn’t close. I was certain that my inadequacy would soon become evident to all and everyone would realize that my success was really a fluke. Little did I know then that what I did during those sales calls would lead to even greater success and it would continue till this day. I was good at one thing – and one thing only. I asked questions. Lots of questions. And the process of asking questions always led to orders. Lots of orders. For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 11 Winning Sales Questions What Makes Some Sellers So Successful? It took another three years of selling for me to really understand why. That was when Xerox put us through SPIN™ training, based on Neil Rackham’s famous research. He found that the primary differentiator between top sellers and average ones was their ability to ask good questions. Rackham discovered that not all questions are created equal too. In his studies, some were highly correlated with sales success, while others derailed or delayed the sales process. Top sellers also used different types of questions depending on where the customer was in the decision process. Rackham also found it didn’t make one bit of difference if sellers asked open- or closed-ended questions. This finding was (and still is) totally opposite to what’s taught in most sales training. After going through SPIN™ training, I finally understood why I’d been so successful in sales. It was my questions – plain and simple. From that moment on, I dedicated myself to learning everything I could on the topic. I learned that: Salespeople who ask more questions are evaluated as more caring and concerned by their customers. When sellers ask lots of questions, customers rate them more knowledgeable about their jobs, market and products. Now ask yourself: Aren’t you more likely to buy from a caring, concerned and knowledgeable rep? Of course you are. So would everyone else. For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 12 Winning Sales Questions Pitching: A Common, Yet Destructive Sales Behavior If it’s so darn obvious what people want when they’re buying, then why don’t sellers ask more questions when meeting with prospective customers? Look at these appalling statistics that are based on sales call observations: 80% of the time when the seller is talking, he’s telling the customer something and making statements – not asking questions. The less time a seller has to spend with a prospective customer, the more likely she is to spend the bulk of the time talking. 80% of the statements made by sellers are about their products or services – not about the customer’s interests or needs. They’re pitching, not asking questions. No wonder most people have such negative feelings about selling and salespeople. Most sellers spend nearly all their time talking, talking, and talking. And most buyers feel that sellers only care about getting the order, order, order. Buyers often feel their needs, issues and concerns are of minimal importance to the seller. Think for just a minute about your own sales calls. What percent of time do you spend talking versus asking questions? If you want to get a good feel for it, ask a colleague to bring a stopwatch out on some sales calls with you. What you learn may be surprising! For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 13 Winning Sales Questions When sellers introduce new products or services, this ‘pitching’ behavior gets even worse. Rackham’s research shows sales reps spend 30% more time talking about capabilities and features than they do on normal calls. So how do customers react to this ‘pitching?” From all the sales calls I’ve observed, I usually see three typical reactions: 1. “How much does it cost?” When a seller gets this comment before needs have been uncovered and developed, the end is in sight. No matter what the price is, the customer thinks it’s too high. The seller, now on the defensive, tries to justify the value. Objections pop up – one after the other. But, in most cases it’s too late for the seller to recover. 2. “Can it do … “? Customers ask some inane or trivial question that may or may not be relevant to their needs. What they’re really trying to do is rule this product or service out quickly so they don’t have to change. Once again, the seller is on the defensive. 3. “I bet you sell a lot of those.” What the customer hasn’t said but rather implied is … “But not here.” Again the seller has dug himself a grave that’s nearly impossible to dig out from in the short term. The undeniable fact is this: Sellers talk too much and do far too little questioning. As a result, customers erect impenetrable barriers that most sellers find impossible to overcome. For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 14 Winning Sales Questions The opportunity to make a sale is lost before it has really even begun. The worse thing is — the sellers created their own obstacles. That’s right. By jabbering on and on about their product or service, they actually create insurmountable objections. The best way to handle sales objections is to not create them in the first place. And the only way to do that is by staying customer-focused and asking questions. The Negative Impact of Short Listening Spans All right. Just one more statistic to throw at you. This is a big one. I had lots of trouble with it too. Did you know that when sellers ask good, provocative questions (ones that require customers to provide thoughtful or in-depth answers), it generally takes customers between 8 -10 seconds to formulate a response. That’s right. 8-10 seconds to think about their perspective, the implications, other’s views, politics, to determine what they want to share with an outsider and all those things. But … average sellers don’t wait more than 3 seconds before they start talking again. Silence drives most people who sell crazy. They can’t handle it. In just 3 seconds, they’re already making related statements, answering the question themselves, rewording it, or going off in a totally different direction. A great opportunity to learn more about their customers vanishes into thin air. Gone – forever. For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 15 Winning Sales Questions Here’s an important tip: Next time you ask a question, shut up and sit quietly. Count to 10. 1 thousand … 2 thousand … slowly. I had to force myself to do that. It was painful. Downright painful. It took every ounce of energy I had to keep my big mouth closed and not rephrase the question. Yet when I managed to hang in there till 8 … 9 … or 10, amazing things happened. Customers told me incredibly important things. What they shared helped me understand them so much better. I learned a lot more about their needs. The knowledge I gained helped me to figure out how my solutions positively impacted their business. It gave me time to decide where to go next in the sales call. Nothing bad happened. Only good things. It was one of the hardest things in the world for me to do, but the payback was huge. After forcing myself to do this counting on every single sales call for a full month, I finally found myself getting comfortable with the silence. I learned how to sit comfortably, just waiting. No panic. No sense of urgency. Just a nice peaceful quiet that allowed really good things to emerge. Tomorrow when you’re in a sales meeting, try counting to ten. Yes, you’ll feel uncomfortable at first, but I assure you it’s a phase that will pass in time. The value that you gain from the silence more than offsets your personal discomfort. Start now — it’s worth it! For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 16 Winning Sales Questions 3. What Customers Really Want “Inquiring Minds Want to Know” ~ National Inquirer Ad “Why should I buy your product?” customers demand. “How is it different from your competitors?” That’s always been a tough question, but in today’s market it’s much harder to answer than ever before. Buyers have never had so many high-quality, cost-effective choices available to them. Even if your company offers something really unique, something beyond state-of-the-art, in only a few months a bunch of copycats will appear. In today’s market customers assume that most products or services meet their minimal business requirements of decent quality and decent service. So how do they decide? What criteria do they use to determine which supplier to work with? If all things appear reasonably equal, what will make them select one company over another? It’s you, the seller. It’s not the product, service or company that makes the biggest difference these days. It’s you! That’s right, you are the new primary differentiator. It’s you! On one hand, that’s really exciting because you have total control over the outcome. If you do your job exceptionally well, then you should win the business. On the other hand, if you’re not getting orders, it’s a statement that you personally are not doing what customers want. You! The responsibility is on your shoulders. Customers today are buying your skills, talents, knowledge, expertise, relationships and more. If you don’t give them what they want, they’ll buy from someone else. For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 17 Winning Sales Questions The Trusted Business Advisor Customers want to work with people who consistently bring value to their organization. They want a ‘trusted business advisor’ who truly understands their: Vision and mission Industry and marketplace Strategy and critical initiatives Customers and competitors Culture, values and beliefs Goals and objectives Challenges, issues and concerns Customers want another brain focused on improving their operation, reducing costs, increasing operational efficiency, creating business opportunity, driving sales and beating the competition. Because they’re so busy with the day-to-day tasks of running the business, they have little mental energy left over to think strategically or sort through the information overload. Often it’s easier to live with the status quo. There is no doubt about it – decisions take lots of time. Think of the time needed to determine if change is indeed warranted and a worthwhile investment. Think about all the time researching alternatives and figuring out which option is best. Think of all the time spent even after a decision is made to get up and running with new products, systems, services and solutions. At no other time have customers so desperately needed extra ‘trained brains’ focused on their company. Highly knowledgeable sellers are ideal people to fill this position. Their ideas, insights and information can be invaluable to customers. What these sellers contribute to their customers helps them achieve their critical business results. For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 18 Winning Sales Questions Customer’s Desired Business Results While each customer is different, most are hoping to realize similar business results. Specifically, you can expect most of your customers to want: Increased profits Predictable revenue streams Reduced costs Profitable growth But these aren’t the only things customers want – just the grand total of many other business issues, costs, challenges and drivers that contribute to them. You can, depending on the products or services you sell, look for ways to help in areas such as these: Driving costs out of the supply chain Increasing time-to-market Improving operational efficiency Decreasing employee turnover Increasing customer loyalty Differentiating from competitors Removing excessive waste Increasing response time to changing market conditions Eliminating bottlenecks in workflow Minimizing product defects Reducing customer complaints Increasing cross-selling conversion rates Improving market share Reducing cost of goods sold For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 19 Winning Sales Questions Eliminating overtime and high labor costs Expanding their customer base Ensuring compliance with new governmental regulations Stimulating new business opportunities Maximizing technology infrastructure Increasing workload without adding additional staff Top sellers consistently look for ways to help their customer’s achieve the results they want. And that’s what you need to do also if you want to be a trusted business advisor. Questions Differentiate Top Sellers from Competitors The only way sellers can achieve trusted business advisors is … (drum roll) … by asking questions. Not by blabbing everything they know. Not by telling customers what changes need to be made. Not by talking endlessly about their new products or services. Questions are key to developing this new relationship. There’s no doubt about it. It’s only by asking well-planned, thought-provoking questions, that sellers establish themselves as trusted business advisors to their customers. With intelligent business-oriented questions, top sellers get to the heart of what’s important to their customers. They use questions to explore impediments that block their customer’s ability to achieve the desired business results. They use questions to define the gaps that exist between today’s reality and future goals. They use questions to find out exactly where and how they can help their customer be more successful and how their offering fits into the solution. For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 20 Winning Sales Questions Asking insightful, customer-focused questions enables you to: Demonstrate your positive intentions. Questions show customers you’re concerned about what happens in their business, not just closing the deal. Unless customers feel you care, they’ll never open up and share critical information. Instead they’ll get you out of their office as fast as humanly possible. Increase your credibility; make you appear more competent. Frame your questions with your industry, market, customer and competitive knowledge, to significantly increase your competence quotient. Read the two questions below. Which seller do you feel is the most capable and competent? If you were a customer, which seller would you want working with your company? Terry: Are you satisfied with your turnaround time? Pat: Based on my experience, reducing turnaround time is a critical issue for printers today. I would assume your situation is the same? (pause; customer smiles and nods) As you look at the flow of print jobs from when they enter your company till they’re ready to deliver to your customer, where are the primary bottlenecks in your operation? Which seller did you choose – Terry or Pat? If you’re like most people, you picked the second one. By skillfully weaving her knowledge in, Pat asked a much more insightful, in-depth question. She ‘obviously’ knows what’s going on – or she sure sounds like it! For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 21 Winning Sales Questions Help customers think, analyze and assess. This is highly valuable to customers. Like I said earlier, customers don’t have a lot of time to think about all the things coming at them. Their jobs are too demanding and their deadlines too short. They may not have experience in certain areas, so it’s hard for them to figure out if changes would help. Or, they have few connections outside their own organization so have a small frame of reference about what’s possible or even available. For example, say you told me that you were really frustrated and upset because you just lost a big sale. Most likely you’re thinking about where your next order is coming from and how to quickly replace the one that fell through the cracks. However if I wanted to help you understand how much was really at stake and how you could benefit from my sales training, I would ask: What is the impact of that lost sale on your income over the next five years? What’s the typical amount of add-on business you get from existing customers? How much additional income is lost because of this? How does your competitor’s win affect the market’s perception of your company’s products/services? How much extra time does it take to close another sale the size of the one you just lost? What was the opportunity cost (what you could have been doing with your time/resources) of that lost sale? For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 22 Winning Sales Questions In reality, if you’ve invested lots of time trying to get the order and lost, it’s extremely costly. It’s much higher than just the lost commission on one order. Most sellers, sales executives or business owners don’t know how much a lost sale really costs them or their company. If they did, a lot more time, money and effort would be spent in professional development. So in working with your own customers, think about how you can use questions to help them understand their processes better. They’re in the same bind you are. They don’t have time to think about more than just what has to be done today. That’s why sellers who help their customers think are so highly valued. Uncover and develop needs Most customers live in a less-than-perfect world. They almost always have concerns, issues, and challenges. They have bottlenecks, frustrations, rising costs. They live with tons of aggravations and workarounds. Things can’t get done fast enough. They’ll keep the status quo alive and well until: - Things get really bad and they’re faced with a crisis. They understand the true cost of their current ways. They figure out they can’t get where they want with their current systems, technologies or processes. By asking questions to uncover these latent needs, you will uncover many more selling opportunities than you can imagine. You will also have much less competition than you could ever dream of. And, when the customer finally decides to change, you’ll be in the driver’s seat – not another seller. For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 23 Winning Sales Questions Do you want to be a trusted business advisor for your customers? It’s a great role to be in, but it’s hard to get there. Sellers who are elevated to this status are not “rah-rah” fast-pitch artists. Trusted business advisors are conscientious, deliberate thinkers who apply their brainpower to improving their customer’s business. These people are great at asking questions; it’s one of their very best skills. For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 24 Winning Sales Questions 4. Never, Ever “Go For the Close” “The important thing is to not stop questioning.” – Albert Einstein I never did learn how to use closing techniques to get orders. I tried. Believe me, I studied and practiced them all. But I could never imagine myself doing an Alternate Choice Close with a prospective customer who was investing lots of money on something new. “Mr. Customer, would you like your new highspeed, big buck computer in pink or blue? Would you prefer we deliver it in four months or six months?" If that doesn’t sound stupid, I don’t know what does. Those trite techniques seem to assume the buyer is a buffoon who can be easily manipulated by just the right closing question. Incredible as it may seem, lots of sales trainers still teach these dated, gimmicky techniques. Don’t fall for those charlatans. Don’t let anyone talk you into “going for the close.” Don’t believe it when they say, “Getting a no means you’re one step closer to a yes.” You are not. A no is a NO! If Only Their Closing Skills Were Better In my years as a sales consultant, I’ve been asked to “fix” many sales organizations. I can’t tell you how many times I’ve heard: “We need to improve our sales rep’s closing skills. They’re missing too many deals, losing too often to the competition. If they would only close better and more often, our numbers would be way up there.” For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 25 Winning Sales Questions When I hear this, I swallow hard and do everything I can to maintain my composure. More than anything I’d like to jump on their desk and scream, “You idiot. Closing isn’t the problem! If your people get better at this stupid skill, your numbers will go down even more.” Instead I smile and patiently explain: Closing problems are symptoms of something that’s been missed earlier in the sales process. It’s usually caused by one of two things. The seller: 1. Didn’t invest enough time understanding the customer’s needs, issues and concerns before they started talking about their product. 2. Or, they didn’t understanding the decision-making process or assessment criteria before proposing a solution. Interestingly enough, sales management almost always agrees that this is probably true. But in a frantic desire to get orders quickly, their focus immediately goes to the ‘grand finale’ – the Close. How To Get Orders if You Don’t Close 1. Focus on questions. They are the absolute foundation for getting customers to beg you for the order. Without good questions, you’re fighting an uphill battle all the time. Endless product pitches won’t get customers to ask, “How soon can we get one?” Forget it. It won’t happen if you don’t ask good questions. For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 26 Winning Sales Questions 2. Suggest a logical next step. Purchase decisions that involve large sums of money, some degree of perceived risk and multiple decision makers aren’t made in one sales call. A seller who closes right away ends up looking like a naïve fool – like they don’t have a clue how decisions are made. There are tons of next possible steps; it all depends on what product or service you sell. Perhaps you need still need to meet additional people in the company. Maybe a demonstration is next or you need to test the customer’s application. Keep advancing the sales process one step at a time. All you have to say is: “The logical next step would be for your team to meet with our engineers to look at what you’re trying to accomplish.” “As a next step, we should schedule a presentation with your marketing staff.” “Why don’t I take this info and get back to you next Tuesday to go over it. By then I’ll have additional questions. Don’t try to rush the decision process. If you do, you miss the chance to build strong relationships with customers. If you give them all the information on your first call, they have no reason to talk to you anymore. You’re out! So keep working with your prospective customers. Advance the sale one step at a time. Plan your next step before you go in. Sometimes you might not get there, but you’ll move further than if you just ended the call and said, “What next?” Don’t forget to keep asking questions! For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 27 Winning Sales Questions 3. Listen for that beautiful word — WE! We. It’s my favorite word in sales. As soon as a customer starts talking “we”, the sale has been made – at least to the person who said it. - “We need to figure out how to get it into this year’s budget.” “We have to get HR in right away. Unless they’re involved early, decisions are delayed.” “We need to set up a meeting with __.” This doesn’t mean you can lean back and take it easy now. But it does mean that one person in company is now working with you to move the decision process along. It’s a huge step. And it happens naturally. It’s a result of the time and effort you put in asking questions, learning about their business, listening to their goals and objectives, challenges and concerns. Because you ask high quality, high impact questions you’re in much better position to shape the right solution for the customers. You’ll also understand which of your strengths to maximize and which to minimize. Your questions have increased your credibility. They stimulated customers’ thinking and motivated them to take action. They showed you cared and wanted to help customers with their needs. Because you didn’t close, but offered a sequence of logical next steps, you built your relationships even further. If you keep selling with questions, you’ll never have to close again. Of course you won’t always get the order, but you’ll get far more orders than you ever expected. And customers will be asking you for the order, not the other way around. Remember: the questions count – not the close. For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 28 Winning Sales Questions 5. Selling Conversations, Not Sales Pitches “Unless you try to do something beyond what you have already mastered, you will never grow.” – Ralph Waldo Emerson Did you know that the word “sell” has its roots in the Swedish word “selvig”, which means “to serve”? It’s funny how the meaning has changed so much over time. Now when people think of selling, they immediately think of used car salespeople who play ridiculous pricing games. Or, they think about telemarketers who call at the dinner hour with a spiel about new siding or furnace cleaning. In reality though, a person who is highly successful in business-to-business sales doesn’t behave one bit like Willy Loman in “Death of a Salesman”, Gordon Gekko in “Wall Street” or any of the lurid characters in “Glengarry Ross.” Top sellers are totally customer-focused, from start to finish. They see their job as helping customers be more successful in whatever way they can. Top sellers know if they help customers achieve their goals and objectives, that sales will be a natural outcome. And, in the process of doing this, they become invaluable and indispensable to their customers. Competitors have an impossible time trying to dislodge them. Diarrhea of the Mouth Hopefully by now you understand just how important questions are in making this happen. But knowing this on an intellectual level is a whole lot different from putting it into practice. For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 29 Winning Sales Questions It’s still amazing to me to see what happens to intelligent, talented people when they have to sell. It seems like everything they know about how to relate to people and what’s important in successful relationships flies out the window. When they put on their sales hat, they become caricatures of the very worst salespeople imaginable. Gifted consultants with an incredible grasp of human dynamics start blathering like idiots. Technologists who know how to gather vast amounts of information to build customized solutions suddenly are overcome with “diarrhea of the mouth.” Even seasoned sales professionals behave like this at times. For example, the minute the customer asks about their new product, they fall off the bandwagon. Their consultative selling skills are nowhere in sight. Over and over it happens. Before going into a sales call, virtually all sellers think, “What can I say? How can I prove we’re better than their current suppliers? What do I need to do to convince them to do business with us?” Then when they sit down in front of customers, guess what happens. “Blah … blah … blah.” Customers ask a question; they answer – more “blah … blah… blah.” Customers ask another question and the cycle continues. After the sales call, if you analyzed what happened to those sellers in their one-hour meeting, you’d find that they probably talked between 45 and 50 minutes. Now that’s ugly! For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 30 Winning Sales Questions When this happens, sellers totally lose control of the sales call. The discussion veers into whatever direction that customers want to take it. Often this leads to talk about features, capabilities and pricing – deadly areas to talk about until value has been established. Sellers must take off that stupid sales hat. It causes them to revert to deeply imbedded, outdated perceptions of what salespeople do. It’s this ridiculous behavior that makes selling so hard. It creates obstacles. It makes customers say, “Thanks for the info. If we ever need some, we’ll call you.” And the seller is quickly escorted out the door, never to return again. Repositioning: From Pitching to Discussing You probably hate it when you feel you need to convince someone that your product or service is better than anything else available. I know I sure do. The good thing is, customers hate it too. Stop it! Now! Don’t be the kind of seller that disgusts you. You already know how to talk to people. You already know how to ask questions. You already have decent conversation skills. There is absolutely no reason why you can’t have a good discussion with prospective customers. It’s just that when you put on that stupid sales hat, you don’t use your innate skills. Next time you have a sales meeting, think: “How can I provide value in this meeting? How can I help this customer run their business better? How can I help her achieve her goals and objectives? How can I be of service?” For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 31 Winning Sales Questions You certainly can’t find out if you’re doing all the talking. That’s why asking questions is so darn important. The Right Way to Prepare for Sales Meetings Nolan Ryan, a famous baseball player, once said, “Pitching is easy. It’s practice that’s hard.” When I first heard this, I thought how appropriate it was to the sales profession. For most sellers, it’s easier to ‘pitch’ than to invest time in rigorous preparation for upcoming sales meetings. Most sellers will also avoid role-playing unless they’re forced to do it. It’s too bad because this is their only chance to practice without a live customer in front of them. Imagine Nolan Ryan’s success if he only threw balls during games. Do you think he’d have the record he does today? Of course not. He wouldn’t have lasted one season in the big leagues. Yet few sellers prepare extensively for sales meetings or practice new skills in safe environments. Instead, they march right into the sales call and “wing it.” Their old stereotypes quickly kick in and their out-of-control “pitch” is hurled at prospective customers. In today’s competitive market, unprepared sellers aren’t going to make it. Here are several things to do to get ready for upcoming sales meetings: Pre-Call Research Learn as much as you can about your customer before you make the call. Check out their web site and annual report. Look at how they portray themselves. Read their most recent press releases. Learn about their distribution channels and their coverage. Try to decipher their core competencies and most pressing business initiatives. For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 32 Winning Sales Questions Check on how their stock prices have fared in the past 12 months. Go beyond the scope of this particular customer. Learn more about the broader marketplace in which they participate. Is it on the rise or declining? What are the industry trends? How do these trends impact your targeted company? Find out who their customers and major competitors are too. Finally, look for any tidbits of information relevant to your particular offerings. Determine the Meeting Type Did you contact the customer to set up the meeting or did they call you? Are they ready to buy, investigating what’s out there, or content with the status quo — even though it may not be perfect? Did they just buy a similar product or service from another vendor? If you initiated contact, you probably have some ideas how your customer’s business could be improved. Of course, you still need to learn more. If nothing else, you still need to determine if there is a “fit” between their needs and your solutions. If a prospective customer called your company, they have something on their mind. The more you learn about what it is before your meeting, the better off it will go. Are you meeting with an executive, department head, technical evaluator, committee member or end user? Don’t forget that different people in companies have totally different needs, issues and concerns. It’s imperative to build that into your meeting plan too. For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 33 Winning Sales Questions Write out your Top Ten Questions If your questions aren’t planned ahead of time, you’ll have greater than a 90% chance of reverting into that disgusting “pitching”’ behavior. After observing thousands of sales calls, I can virtually guarantee that’s what will happen. Less than 5% of sellers can lead an effective sales meeting without a list of questions to guide the discussion. But, because these 5% are almost always the top performers, they’re the ones who are most likely to prepare questions. Go figure! To prepare, ask yourself what you need to learn about this customer. What do you need to know to find out if you can help their business? That’s your starting point for creating questions. As much as possible, customize the questions for your particular customer. When you’re meeting with customers, set up your questions by sharing what you’ve learned in your pre-call research. “In preparation for today’s meeting, I spent several hours in a couple of your stores analyzing your product mix. Based on your customers’ demographics, what do you find are the most effective marketing strategies?” For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 34 Winning Sales Questions After writing down a question, jot down several key words to remind you to ask 2nd and 3rd level follow-up questions in the key areas you’ve identified. For example, my questions for a VP of Sales might look like this: What are the biggest challenges facing your sales force today? a. Competition b. Differentiation c. Pricing pressure d. Turnover How satisfied are you with your product launch process? a. Time-to-profitability b. Channels c. Competitive inroads After this chapter, the rest of the book is full of questions for you to use in sales meetings. Read through the information at the front of the chapter first to ensure the questions are right for the type of call you’re going on. Customize them so they fit with your industry, your markets and your customers. But most of all – USE THEM! If you want a sales discussion you have to ask questions. If you want to be a valued business advisor and resource to customers, you have to ask questions. If you want to increase sales against competitors, you have to ask questions. If you want customers to beg you to do business with them, you have to ask questions. For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 35 Winning Sales Questions Plan your questions before the meeting and make sure you use them. It’s the most important thing you can do. Remember – If you ask questions, you’re in control of the sales meeting. If customers ask all the questions, they’re in control. And you’ll soon be off on tangents that can negatively impact your sales efforts. Make questions your friend. They easily guide you through client meetings in a quiet, nonthreatening way. They enable you to stay on task and focused in your work. And, they help customers better understand your what you and your company can do to help them. LEAN BACK! LEAN BACK! People always laugh when I say this. But after observing many sales calls, I discovered that when sellers lean forward they switched from a consultative mode into a pitching mode. Think about it before you laugh too hard – I bet you do too! Imagine this: You’re a web site designer meeting with a potential corporate client. The conversation is going well. Suddenly the customer says: “We’re disappointed with how poorly our site is doing in attracting new customers. Do you do any work in this area?” You smile inside. Hot prospect, you think. Instantaneously your posture changes – you sit up straighter. “Of course we do,” you reply brightly, reaching into your briefcase for a brochure. Placing it in front of the client, you lean forward and the pitch begins. For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 36 Winning Sales Questions Strange as it may seem, most sellers don’t even notice when they switch into this pitching mode. It just happens in a euphoric sort of way. For years, I struggled to make sellers aware of this change in behavior because they were about to create major obstacles for themselves. Nothing worked. Finally one day I told a rep that if he leaned forward one more time I would personally shove him back into his seat – right in front of the prospect. He laughed. But at our next sales call, I was stunned at what happened. When the prospect asked about our new system, the rep grinned from ear-to-ear, ready to share everything he’d just learned. Gearing up for his product pitch, he leaned forward – then of all the sudden stopped. He glanced over at me, winked and slowly leaned back. Without missing a beat, he asked the customer, “How did you hear about it?” Amazingly this rep was able to stay in a consultative, questioning mode the entire sales call – something he’d never done before. Afterwards he told me it was the “leaning forward thing” that worked. Important: If you’re on an early sales call with a prospective client and you catch yourself leaning forward, immediately LEAN BACK. This keeps you in a consultative mode. If you don’t notice yourself doing this till you have a brochure out and you’ve started your spiel, wrap it up as quickly as possible. Then lean back and say, “I’m sorry. I get really excited about our technology (process/systems). But today I’m here to learn about your business to see if we can help you increase sales (cut cost, increase productivity).” Then immediately ask another question from your list. For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 37 Winning Sales Questions 6. Highly Effective Initial Meetings Effective meetings follow a simple, proven process. Here are the steps to follow to ensure you have a productive first sales call. Please use them as guidelines, not absolutes. The timeframes given assume a one-hour meeting. And remember, good meetings focus on your prospective customers and what’s important to them – not your product, service or solution. I. Open the Conversation (5-10 minutes) Customers from big companies don’t have a lot of time for meaningless chitchat and relationship building these days. Be cordial and friendly, but business-focused at all times. A. Make the introductions Take a few minutes to learn about the decision maker's job and responsibilities. If the decision maker invites others to the meeting, make sure you to introduce yourself and learn their names. Find out what why they're attending and what interests they have relative to the business issue. B. Confirm times and agenda Before you get started, double check to see if times have changed since you set up the meeting. If your customer has to run to an urgent meeting in 30 minutes, you need to adjust your game plan or come back later. Reconfirm the purpose of the meeting also to ensure there are no misunderstandings. You might say, “As I explained earlier, we work with high tech firms to increase brand awareness and drive sales. In our time together today, I'd like to give you a little background on how we address these issues, find out what your company is doing in these areas and see if we have grounds for further discussions. How does that sound?” For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 38 Winning Sales Questions Notice the professionalism and leadership in this overview. It shows that you have a clear plan for the meeting. Decision makers feel better immediately; they know their precious time won't be wasted. II. Lead the Discussion (40-45 minutes) You want to create a dialogue – not make a pitch. Lay the groundwork by sharing information of high interest to your prospects. Then invite them into a discussion by asking questions that make them think. A. Set the stage (5 minutes) Customers need more grounding about what your company does than the brief 1-sentence description given above. When you arranged the meeting, the decision maker was enticed by something you said. Now is the opportune time to give a brief overview of the business results a specific client achieved with your product, service or solution. Explain the challenge the customer faced, how you helped them, and the results they achieved. You can also share your insightful ideas or go over the important information you brought to the meeting. The previous chapter explains what to do in detail. B. Transition to questions As quickly as you can, shift the focus to the decision maker – where it belongs. To do this, simply say, “That should give you a good overview about how we help our customer solve their problems (or achieve their objectives). The most important thing is to find out if this makes sense for your company. In preparing for today's meeting, I noticed that (insert data re: company's direction, Triggering Event, other info uncovered in research). I was wondering how …" For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 39 Winning Sales Questions Unless you plan your transition, it's sometimes hard to stop talking – especially if you're goaded on by questions from the decision maker. An effective transition is part of your sales call plan. C. Focus on business issues (35-40 minutes) Prior to the meeting develop a minimum of ten insightful, powerful questions you can use to lead a business-focused discussion. Corporate decision makers are always interested in talking about their business. They wouldn't be taking time to meet with you unless they truly wanted help solving their problems or achieving their goals. Have the questions handy so you can refer to them. If you want, show the client how you’ve prepared for the meeting – they’ll be impressed. But don’t give them the list of questions or they'll just rattle off the answers. Ask your questions in a conversational manner to accomplish these things – not like a schoolteacher giving an oral test. Questions build relationships, establish rapport, demonstrate your competence and show that you care. Remember, this is a discussion – not a sales pitch. Listen to their answers. Be interested. Learn as much as you can. Take copious notes of everything that's said – not just the parts you find interesting. III. Advance the Process (5 - 10 minutes) When you focus on questions, your one-hour meeting flies by. Even if the decision maker seems oblivious to the time, it's important not to overstay your welcome. Draw attention to the clock. See if you're invited to stay longer. If not, it's time to wrap up and advance the sales process to the logical next step. For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 40 Winning Sales Questions A. Summarize your understanding Since it takes multiple meetings to do business with big companies, on you first call you don't try to share everything you know, ask every question you want answered or hand out every piece of collateral in your briefcase. Instead, show your professional expertise by summarizing what you learned about their critical business issues and the value of resolving them. Corporate decision makers are also interested in learning more about how you work with customers who had similar problems, what your process was in working with them and how they benefited from working with your firm. Do not, under any circumstances get into a discussion of your product or service. This will be the hardest thing in the whole world for you to do, but it's essential. Remember, corporate buyers don't really care about your offering – only what it can do for them. They also realize that in a short one-hour meeting, you can’t possibly offer them a well-thought out solution. They don’t expect one. B. Suggest the logical next step Then, without making a big deal of it, simply recommend a good option to move the process forward. This is the logical next step you were working toward from the onset. You might say, “Usually when I work with companies on product introductions, the next step is to set up a meeting with the product manager to get a better understanding of the launch plans already in place and where gaps might exist. Can we get a meeting set up with this person in the next couple weeks?” For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 41 Winning Sales Questions If you've had a good discussion, it's highly likely that your prospect will have already suggested a next step. If so, great! Get it on the calendar. If your prospect missed an important step, offer it up as another idea, "Ms. Biggie, I'll get going on your recommendation right away. Also, based on my experience, we need to talk with the IT department as well. Can we get that set up too?" Ending meetings like this advances the sales process to its next logical step. It’s honest and full of integrity. It’s just simply suggesting the next logical thing that you both need to do to determine if your offering is a good fit for their business. Final Tips – Guaranteed to Make a Difference 1. Ask easy questions first to warm up customers and get them talking before you hit the tough stuff. Don’t jump right in with “What’s the most critical issue facing your IT department today?’ People aren’t ready to answer the tough questions till they’re more comfortable with you as a person. 2. Take notes. There’s no way you can remember everything your customers say. Even if you could, customers are skeptical of your ability. When I go out to eat, I hate it when waiters don’t write down my order. Because I have lots of special requests, I don’t trust their memory. My experience has shown me that things get easily get screwed up or forgotten – even with good notes! For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 42 Winning Sales Questions 3. Be curious. If you follow interesting paths of conversation, you’ll learn lots more about your customer’s business. Sometimes these journeys are the most productive of all. 4. Leave your brochures and samples at home. If it takes more than one meeting to close the business, then you’re much better off if you go in with just a notebook and pen. This way you won’t be tempted to veer off into product-focused sidelines. Your discussion will stay centered around customers’ needs, issues, concerns and challenges. For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 43 Winning Sales Questions 7. Powerful Executive Meetings “To really ask is to open the door to the whirlwind.” If your product or service offering has a broad organizational impact, costs lots of money or involves considerable risk, it is highly likely that your sales process involves your customer’s highlevel executives. – Anne Rice If you’re meeting with CEOs, CIOs, CFOs or other C-level players, it is absolutely imperative for you to converse with them about things they’re interested in. And let me tell you right now – they could care less about any technical details or how you’re going to make things happen. Senior executives are looking at the “big picture”. They have a vision of the future and their thinking is focused out 3-5 years. They’re concerned about things such as shareholder value and achieving a competitive advantage. You must talk their language if you’re meeting with them. The questions in this section help you engage in peer-to-peer discussions with C-level executives. But, to really have credibility with the top execs, you can’t just throw out the first question, wait for the answer and then throw out the next one. Instead, you must have strong understanding of their company, industry, marketplace and customers. Real credibility comes when you can discuss topics they’re interested in for at least 15 – 20 minutes. That’s about all the time they’ll spend with you initially. Share an idea with them. Ask a few insightful, powerful questions. Get their input. And then, get yourself directed to the people in the organization who are in charge of the decision – with the executive’s blessing. For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 44 Winning Sales Questions Knowledge is Power Knowledge is power when you’re selling to big companies. The more you know about them, the better position you’ll be in. Before you meet with any executives, do your research first. Use these questions to guide your pre-meeting research on the internet. Visit a public library and ask a research librarian to help you find out some of this information. Even after all your pre-meeting research, there will still be gaps in your knowledge. That’s why candid conversations are needed with key internal personnel. Pick out different questions to ask your various account contacts. The more you know the better. And, if you talk to a large number of people in the organization you can test what you’ve learned to verify its accuracy. You’ll learn much more about what’s happening to the company on a strategic level when you’re talking with the senior executives. Through conversations with them, the company’s direction, goals, and challenges will become clear. This kind of information is essential for developing an effective account strategy. When you have a good understanding of your targeted customer, you can align your offering with what’s important to them. You’ll have a good chance of winning their business if you can help them: Achieve their vision, goals and objectives. Capitalize on or minimizing the impact of industry trends. Attain their organizational initiatives. Solve key challenges they’re facing. Improve customer relationships/loyalty. Leapfrog ahead of competitors. For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 45 Winning Sales Questions The questions in this special chapter are perfect for use with your customer’s executives. They’re focused on what’s important to him or her. They’re high-level, big-picture questions. “A sudden bold and unexpected question doth many times surprise a man and lay him open.” – Sir Francis Bacon By asking them, you’ll gather the vital information you need for implementing your account strategy and positioning your solution so that your customer wants it. Without the knowledge you gain from asking these questions, you’re operating in the blind. And, if you don’t ask them, you’ll never be able to fend off the savvy competitor who does. And, you’ll be developing relationships with top-level executives at the same time! Mission & Vision On your website, I saw that your corporate vision is ___. Can you explain this to me in more detail? What is your vision for this organization in the next five years? How will your group be different in the next several years because of this vision? How does your corporate mission/vision affect the direction your company is pursuing and the decision it makes? Your annual report describes your mission/vision as __; can you tell me what that means? For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 46 Winning Sales Questions Goals & Objectives Where do you see your company headed in the next 2-3 years? What are your five-year goals and objectives? What are your primary goals and objectives in the next 12 months? Next 3 years? In your opinion, how realistic and achievable are these goals? What are your organization’s stretch goals? How will your company be different 3-5 years from now? What do you see as your key objectives in this area? What key elements must be in place for you to achieve these goals and objectives? What do you consider to be the critical success factors for achieving these objectives? What is it going to take for your company to meet these goals? How does your company measure success? What are your key performance indicators? For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 47 Winning Sales Questions What are the top priorities of your executive staff? “A wise man doesn’t give the right answers, he poses the right questions.” What milestones do you use to ensure you’re tracking toward your goals/objectives? – Claude Levi-Strauss The three major trends I see happening in your industry are: 1)__, 2)__ and 3)__. Are any of these critical? Industry/Market Trends What are the primary trends impacting your business today? If answer is “no”, ask, “What trends are impacting you most?” If answer is “yes”, say, “Tell me more about that.” What external influences are having the most impact on your business? (i.e., governmental regulations, value of dollar, technology, changing demographics) In the upcoming years, which trends do you feel will have the most affect on businesses like yours? Based on these industry trends, where do you see your business in the next 3 years? How is your business doing relative to the trends? Are you growing (shrinking) at or faster than the rate of growth (decline) in your market? What are your plans to take advantage of the new trends emerging in your industry? For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 48 Winning Sales Questions What are the biggest threats facing your industry today? What do you anticipate they’ll be in 3 years? Based on these trends, what is it going to take for your company to be successful in the future? What is your company doing to protect itself from these threats? What legislative changes are pending? Will their impact be positive or negative for your business? How have the new government regulations impacted your organization? What impact has all the marketplace consolidation had on your company? In your industry, where is the stock market value migrating? What economic and environmental trends could affect your market in the next 5 years? What is the biggest opportunity for your industry in the next five years? In your industry, where is the most growth expected? What’s your perspective of the most exciting future market for your company? Industry? How are changes in (economy, technology, demographics, etc.) affecting companies like yours? In the past year, which events have had the most impact on your organization? For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 49 Winning Sales Questions What affect has the influx of new technology had on your company? “Beware of the man who knows the answer before he understands the question.” – Author Unknown Strategic Initiatives What are your critical success factors? What are the 2 or 3 critical success factors (things that must happen) that your business must get right in order to succeed? Why are these so important? What gets in the way of making these things go right? What initiatives has your company undertaken to ensure your goals and objectives are met? What are your organization’s core competencies? What is the company doing to strengthen its business relative to its core competencies? What are your plans for growth? What are your company’s primary growth drivers? (i.e., customer loyalty, new product development) How will you achieve your organization’s growth goals? How is your company changing to compete in the global marketplace? For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 50 Winning Sales Questions Is your organization more focused on increasing revenues or market share? What changes are you making (or have you made recently) in your go-to-market strategy? How are your distribution channels changing? What are your primary initiatives in this area? How is your organization integrating e-commerce into your overall marketing and sales plans? Are you partnering with any other organizations in any major __ (sales, manufacturing, distribution) initiatives? How is your company handling the economic recession? What are you doing to cut costs? Drive sales? What initiatives are underway to drive costs out of your supply chain? How are you integrating your global branding strategy? How would you describe your marketing philosophy? What are the primary initiatives underway in this arena? In what ways is your organization utilizing technology to create a competitive advantage? What are your plans for increasing revenue? Cutting costs? In order to differentiate your organization from its competitors, what is your company doing? For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 51 Winning Sales Questions What efforts are underway to increase operational efficiency in the organization? “Good questions outrank easy answers.” What plans do you have in place to achieve the goals and objectives you shared with me earlier? – Paul A. Samuelson, Economist What initiatives are underway to address the new government regulations? How well prepared is your company for the upcoming year? What is your company doing to differentiate itself from the other major players in the industry? What changes is your organization making to prepare itself for the future? Are you planning to move into any new markets in the upcoming year? How does your company plan to grow? Acquisition? Mergers? Primary Challenges What are the biggest challenges you face in growing your business? What are the most critical issues facing your organization today? What are the major challenges facing your industry? Your business? What are the primary obstacles to achieving your goals and objectives? For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 52 Winning Sales Questions What gaps must be closed in order for your company to be successful? What areas of concern are confronting your industry today? From a marketing perspective, what are the biggest challenges your firm is facing today? From a business perspective, what are your top three sources of pain? How prepared is your organization to achieve its objectives in the upcoming year? In this turbulent economy, how would you describe your company’s most pressing challenges? From what I understand, the market for __ is shrinking (growing). How is this impacting your organization? What are the primary concerns that you and others in the industry are facing right now? You said your market is growing (shrinking). From your perspective, what are the biggest challenges associated with this? What kept your company from achieving the objectives you established last year? What might keep you from addressing the challenges you’ve described? From accomplishing your primary goals and objectives? For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 53 Winning Sales Questions Your Customer’s Customer “It is not the answer that enlightens, but the question.” Who are your top customers? Could you describe your “typical” customer for me? – Eugene Ionesco, Dramatist What things are most important to your customers today? What are the demographics of your customer base? How are your customers different today from what they were 3 years ago? What are your customers demanding more of/ less of today than a few years ago? How do you see your customers changing in the upcoming years? What are your customers’ critical business issues today? What do you expect them to be in a few years? What do your customers expectations from companies like yours? What are the major competitive pressures your customers facing? In the upcoming years, what is it going to take to maintain a leadership position with your customers? In what ways does your company help customers solve problems or improve business operations? For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 54 Winning Sales Questions How does your company help its customers solve their critical business issues and achieve their objectives? What are the key reasons your customers buy from you? What are your biggest customers asking for today? What will it take to provide that? How do your targeted customers perceive your organization? If you asked your key customers what your primary strengths and weaknesses are, what would they say? How do you see your customer base changing or evolving in the next 3- 5 years? What other vendors (suppliers, partners) do your customers use in addition or instead of your company? Why would they choose these vendors instead of your company? If you asked your customers to compare your company with its competitors, what do they feel are your competitive strengths? Shortcomings? For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 55 Winning Sales Questions Competitive Landscape “The key to wisdom is knowing all the right questions.” Who are your major competitors today? – John A. Simone Jr. What types of companies are likely to be competitors in several years? What companies do you consider as your primary competitors? From what industry or markets do you expect new competitors to emerge? How will your business model need to change to address competitive pressures? What differentiates your company from your primary competitors? In your opinion, what is your primary competitive advantage? How do the competitors view your position in the industry? How do your competitors position themselves with your customers? What do your competitors stress as the “reason to do business with us?” For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 56 Winning Sales Questions Corporate Culture “Ask, and it shall be given you.” – Bible, Matthew 7:7 How would you characterize your company’s culture? What words best describe it? What are the defining values that drive your organization? What values have made this organization so successful? How does your company see itself? (leading edge, paternalistic, solid, innovative) How do your employees feel about working here? How would your employees describe your organization to their friends? Within your industry, how does your organization want to be perceived by your customers? Competitors? Employees? How is your company perceived in the market today? Would you describe your organization as being more marketing, sales, finance, or engineeringdriven? Explain. How responsive is your organization to change? Are you trying to change your corporate culture in any way? Could you tell me what you’re doing and why? For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 57 Winning Sales Questions Is your organization typically an early adapter in the marketplace or do you generally make changes when the market demands it? What image does the company project to its customers or market? How do you communicate your vision, values and strategic goals to your employees? As we work together, is there anything I should be sensitive to regarding your culture? Has the current business climate changed the way your company does business? Can you explain? What does your company value in its employees? How has your recent __ (merger, acquisition, downsizing) impacted the corporate culture? For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 58 Winning Sales Questions Organizational Structure “Know how to ask. There is nothing more difficult for some people, nor for others, easier.” – Baltasar Gracian Could you help me understand how your organization is structured? - Business units Subsidiaries International Divisions Departments Markets Can you tell me about the various divisions? Business segments? How do the various __ (business units, divisions, departments) interact? What autonomy do they have? How and what do they share? How would you describe the subsidiaries relationship with corporate? In your opinion, will this organizational structure support your goals/objectives or will changes need to be made? Explain. Have there been any recent reorganizations? Could you tell me about them – what changed and why? Are any major restructurings currently underway or planned in the near future? What is their purpose? Timing? For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 59 Winning Sales Questions Are there any dotted-lined or matrixed relationships within the organization? Can you describe and draw out your organizational/departmental structure? What is the internal balance between marketing, production, finance and R&D personnel? Which group seems to lead the company’s decision-making? In the organizational structure you just described, who reports to whom? Where does your department fit in the organizational structure? Who are the key players? Who, inside or outside the company, influences your key decision-makers? Are there any external consulting groups that have high influence with your key people? For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 60 Winning Sales Questions Departmental Overview “One’s first step in wisdom is to question everything — and one’s last step is to come to terms with everything.” – Georg Christoph Lichtenberg Could you give me an overview of your department? How has your department changed over the past 2-3 years? What changes do you anticipate making in the upcoming years? What are your departmental objectives for the next 12 months? 3 years? How do your departmental objectives fit in with the goals and direction of the organization? What are the top three priorities in your area this year? How is your department addressing your top priorities? What are the most pressing problems today in your department? What are the greatest challenges your department faces in achieving its objectives? What major initiatives are currently underway in your area? Can you help me understand the business issues or needs that are driving these initiatives? What are you trying to accomplish with the projects you’re working on? For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 61 Winning Sales Questions Of all the things going on in your area, which are the most important? Why? What other areas in the company does your group interface with? Can you describe your relationships and interactions with these areas? Which departments of the company are your customers – areas that you supply information (product, service) to? Which areas of the company are your suppliers – they give you information, product and services? How would you describe the relationship between the departments you interact with and your group? What are the primary bottlenecks between the your department and __ (marketing, logistics, manufacturing, legal)? Are any cross-functional initiatives currently underway? Can you describe them and tell me what you’re trying to accomplish? What needs to change in order for your area to be more successful? For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 62 Winning Sales Questions Summary Use these questions as guidelines for your discussions with executives. What you learn will not only be fascinating, but essential for your sales success. Please, whatever you do, do NOT talk products or services. These top-level people don’t want to hear about it. Be well versed on what’s happening in their industry and specifically to your prospective customer prior to meeting with the executive. Know as much as you can. While the amount of information you need to know when working with a big company may initially appear daunting, the good news is that you don’t have to know it all when you begin. The questions in this chapter should help you better understand what you should be looking for and learning while you’re pursuing or expanding business with large corporate clients. And – you’ll know what to talk about when you’re with the senior executives! For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 63 Winning Sales Questions 8. Turning Prospects into Buyers “Question everything. Every stripe, every star, every word spoken. Everything.” – Ernest Gaines, Author Have you ever received an RFI (Request for Information) or an RFP (Request for Proposal)? Ever had a customer call you in to give you a presentation? This happened to me several times early in my sales career. I was elated, ecstatic – it wasn’t often I had such hot prospects. These people were ready to buy! Usually I had to do tons of work to get companies to this point. Visions of effortlessly earning big commission checks floated through my mind. I created detailed proposals, thick with all sorts of product info. I prepared elaborate presentations. I made arrangements for my more technical colleagues to accompany me on the big day. Guess what happened? I almost always lost the business. It didn’t take me too long to figure out that something was wrong. My proposals, presentations and demos were fundamentally sound, so it had to be something else. But what … The Fallacy of Low-Hanging Fruit I started asking around and got some pretty interesting responses. One top rep told me not to waste my time on ‘low hanging fruit” – in other words, companies who are ripe to buy. For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 64 Winning Sales Questions I asked why. He explained that by the time a company issued RFPs or called for a “beauty contest”, the decision had generally been made. And, usually another vendor was already in tight with the decision makers helping craft an RFP that played to their strengths. “Why would they go through this charade?” I asked naively. “To make it look like they thoroughly researched the matter and selected the best possible option,” he answered. This was all new to me and it didn’t make sense. But after awhile, I started to understand what was happening. Then I focused my sales efforts on helping my customers establish ‘must have’ criteria for their solution that only my company could meet. Over the years I’ve had the opportunity to work with some exceptional salespeople. Virtually every top seller I’ve talked to knows that pursuing ‘low hanging fruit’ is not the ultimate pathway to sales success. It’s not a shortcut either. You just can’t get into the sales process that late and expect to win when other vendors have established deep relationships. Invest Time with Customers Who Aren’t Ready to Buy To win sales, you have to get in early – before customers decide to take action. This is absolutely NOT a waste of time. Rarely are customers totally satisfied with how things are going in their organization. Sure there are situations when a company isn’t a prospect. If they’ve just invested in a competitive solution, are in the midst of massive reorganizations or in severe financial turmoil — it’s not a good time to sell to them. For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 65 Winning Sales Questions But like I said earlier, most people in big companies today don’t have a lot of extra time. They often live with problems for years until they explode. They don’t have time to investigate if better ways exist. That’s why they’re such good prospects. Smart sellers gladly invest time helping customers find out how they can run their business more productively or less expensively. They willing invest time looking for opportunities for their customers to increase sales and enhance customer loyalty. Become Invaluable to Customers Because these sellers waste time and mental energy on helping customers with these things, they become invaluable. Did you hear that? INVALUABLE. If you’re invaluable, customers often buy without calling in competitors. Profit margins are higher. Decisions are made more quickly. You’re brought in on even more opportunities. Investing time on customers who aren’t ready to buy involves asking lots of questions. Not just from one person in the company, but from many. It’s about constantly poking around, learning more about their challenges and understanding what they truly mean to the company. It’s about exploring the financial, operational, human and business aspects of what’s going on in the customer’s business. Remember Vern, the seasoned Xerox sales rep who demanded that I share my secret closing techniques? If he were a little savvier, he would have asked about the questions I used to get customers to literally beg me to sell them a copier. For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 66 Winning Sales Questions It’s the questions that make the difference. I stumbled on it, but only after years of improving my questioning skills. Neil Rackham’s research confirmed it. “There are two sides to every question.” – Protagoras, (485 BC to 420 BC) The question-based process described in this chapter turns customers who are merely frustrated with the status quo into active, eager buyers. You’ll never find a more effective way to make this happen. Understanding the Current Situation When you first start a relationship with a customer, it’s imperative to get a good basic overview of what’s happening in their business. You need to find out what they’re doing and how they’re doing things as it relates to your offering. Start out by asking Situation Questions. They help you get your arms around the customer’s situation. When you’re new to an account, they’re perfect to ask at the beginning of your needs assessment. One thing that’s good about them is that they’re easy for customers to answer. Because of this, they warm things up for the more difficult questions that follow. Usually sellers feel pretty comfortable asking Situation Questions because they’re ‘safe.” But this often leads to overuse. I’ve been on way too many sales calls where these are the only questions that sellers ask. For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 67 Winning Sales Questions That’s bad. Really bad! Customers get bored answering these questions because there’s nothing in it for them. When they get asked too many, they shut down. Customers don’t like spending time with amateurs who haven’t invested time learning about their organization. Rules of Thumb Never ask questions when the answer is readily available to the public. That means you should avoid questions about the number of employees, the product line, plant locations, annual revenue, and so on. Annual reports and web sites are full of this kind of information. Check them out. In a training session I was doing a few years ago, we were sharing memorable moments in our sales career. I’ll never forget the man who told about a recent call he’d made to a senior-level executive at a large manufacturing company. Not having done his homework, he used the early part of the meeting to ask general questions about the organization. Finally, after one-too-many of these data-oriented questions, the Vice President reached over to his credenza, grabbed their annual report and threw it down in front of him. “Read this,” the VP said caustically. “When you’re done, come back and talk to me.” Needless to say, the sales rep’s credibility was shattered and he never did end up doing business with the company. Prospective customers don’t like to waste valuable time sharing information you could find yourself with a little effort. Do your research before the meetings, not during them. For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 68 Winning Sales Questions Don’t ask all your questions in one meeting. Relationships take time to build. Ask questions that give you a broad understanding of the account, their direction, initiatives and challenges. Save the detailed information for later. Marketing departments often give salespeople detailed qualification questions to determine if an account is truly a prospect. Many of the questions they provide are really focused on implementation issues – not about uncovering and developing needs. Don’t let marketing convince you to ask these questions first. They don’t sell, they just eliminate … and often very prematurely. Use follow-up meetings with customers to explore the issues, needs and concerns you uncovered the first time you talked. This will give you time to think about their situation in more depth and to plan better questions. Another reason you don’t want to ask all your questions at once is that you need a reason to get back into the account. Customers must see you multiple times to trust your capabilities, competence and motive. So don’t rush things. Go slowly. Go deliberately. Get to know your prospective customer over time and you’ll be much further ahead. Combine questions, if at all possible. Over the last ten years, I’ve spent lots of time working with companies on product launches. During training sessions, the marketing and technical people generally share everything you could possibly want to know about the new product. Then I work with the sales force to help them figure out how to sell it effectively. For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 69 Winning Sales Questions Developing the right questions to ask are an integral part of what I teach. During one session I conducted, a rep was talking about an account he thought would be perfect for this justreleased product. Excitedly, he shared the questions he was going to ask in an upcoming sales call. One after the other, they tumbled out in rapid succession: - What system do you use for this application? What software do you use? How long have you had it? Who do you use for support? Where does the information go when you’re done with your job? What system is that person using? What software? “Stop,” I finally said, putting my hands over my ears. “I feel like I’m being interrogated by the Gestapo. All you need is one question.” He gave me one of those ‘yeah-sure’ looks. “Just say, ‘Tell me how the work flows through your operation.’” I said. “When your customer answers, you’ll learn what’s going on. The rest of your questions will come out during the course of normal conversation. Better yet, ask for a tour of his plant. You’ll learn even more.” For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 70 Winning Sales Questions Don’t ask a question if it’s not related to what you sell. I know you think this is pretty dumb, but it happens an awful lot. Here’s an example: Let’s say you’re in corporate real estate sales. You always ask about the number of employees because it’s essential for determining space requirements. Wanting to be conversational, you could also ask about your customer’s turnover rate or if it’s hard to find good people. These are problems you can’t solve. You may think it’s nice to show interest in their business, but really you’re wasting time – yours and theirs. Never ask “Why?” after customers answer these questions. Asking people “why” after they respond to your fact-finding questions makes them feel like you doubt their intelligence. They feel like they were really asked, “Why, stupid?” That’s what they hear, even though you didn’t say it. People get defensive. They shut up and stop talking. That’s not what you want to happen. If you really want to know ‘why’, ask something like this: “What thinking went into developing the process?” or “How did your company decide to do things this way?” Key Words The key words found in Situation Questions are pretty easy to spot; they’re full of all those journalistic words: who, what, where, when and how. Pay attention to the key words as you plan your questions. If too many of them ask for factual data, you’ll have lots of trouble selling! For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 71 Winning Sales Questions What Tell Where When Show Explain Demonstrate How How much/often Sample Situation Questions Listed below are a number of Situation Questions you can ask your customers. Select those that are most relevant to your product or service. You may want to customize them so that they’re “right on”. Or, use the questions below as guidelines to develop your own. How are you currently handling __? Describe your supply chain and fulfillment process? What are you doing now in the area of __? The last time we spoke you said you had an issue with __; what have you done to solve it? Of the services you currently offer, which ones provide the biggest margins for your firm in descending order? How do you measure success working with your current vendor? For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 72 Winning Sales Questions Where do your new business leads currently come from? - Do you formally track where your leads come from? How do you know if your lead generation programs were successful? What is your future direction in this area? What type of system is in place to do __? Can you please walk me through the process from beginning to end? How does __ move through your department? Your company? What types of devices are you using to __? Do you currently do __ in-house or do you outsource it? What have you done to address the new government requirements? When do you plan to __? What improvements have you made in this area in the last year? What improvements will be needed in the next several years to ensure growth? Can you show me how the document flows through the organization? For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 73 Winning Sales Questions What’s the rationale behind the decision to do things that way? When your department finishes its work, what happens to it next? To which area in the company do you hand it off? What area/group is upstream to yours in the production process? What products are you currently using to handle your __ needs? How do you handle situations like __? How much __ is needed on a monthly basis? Where does the __ take place? Who currently handles your __? Can you describe how you do this? What equipment (vendor, process) are you using? Situation Questions DON’T increase sales. But, they’re necessary because they ground you in what’s happening in the customer’s business. Overuse decreases your abilityto get the sale, so use them sparingly. Make broad questions from many small ones. For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 74 Winning Sales Questions Uncovering Problems and Gaps “A prudent question is one half of wisdom.” – Sir Frances Bacon Finding out about the customer’s challenges, difficulties and concerns is essential for effective selling. If customers are totally happy with how things are today, there is no reason to change. That’s why Problem/Gap Questions are important to have in your sales tool kit. You need to uncover issues, challenges, bottlenecks and dissatisfactions with their current products, processes and systems. Sometimes things are fine the way they are today, but the customer has some future objectives they want to achieve. In this case, their problem is found in the gaps – their current systems, suppliers or processes won’t enable them to get where they want to go. Look for latent problems – ones that haven’t flamed up yet and screamed for resolution. Most sellers don’t explore this area, so by pursuing these hidden problems, you get a leg up on competitors. Many sellers are uncomfortable asking Problem/Gap Questions. They feel it’s impolite to ask about difficulties the customer is facing. Or, they feel these questions are too personal and customers won’t want to share this kind of information. If you feel this way, let me tell you one thing – GET OVER IT! For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 75 Winning Sales Questions You can’t help customers improve their business and you can’t achieve your own goals unless you’re willing to be uncomfortable. Selling is not about you. It’s about helping customers achieve their goals and objectives or removing obstacles to their success. It’s about solving current and future problems. Period. If you truly are a customer-focused person, you must ask Problem/Gap Questions. It might take some getting used to, but you have to do it. If you don’t, you’re letting your own discomfort hurt your existing and prospective customers. Rules of Thumb Just because customers are frustrated or dissatisfied does not mean they are ready to buy. Many sellers are ecstatic when they hear customers say “We’re concerned about …” or “We have problems with...” They’re ready to jump in immediately and talk about their products or services. If this happens to you, STOP! Right away! Think for a minute about yourself. Just because your car is giving you problems doesn’t mean you’ll automatically spend $25,000 to replace it. Just because you’re frustrated with your computer doesn’t mean you want to buy a new one, much less take the time to learn how to use it. LEAN BACK. Customers aren’t ready to change until the cost of the problem outweighs the cost of the solution. Ask questions that explore the ramifications, implications and effects of the problems on their business. For more fresh sales strategies, visit www.jillkonrath.com ©Jill Konrath 2010 76 Winning Sales Questions When customers share a problem, find out “Why” it’s a problem. Yup! Now you can ask “Why?” Why is it a problem? Why do people complain? Why does it take so much extra time? Why aren’t they satisfied? If you don’t, you’re likely to leap to unfounded and erroneous conclusions. You don’t know enough about the customer’s business. Find out “why.” Don’t assume something is a problem. Lots of sellers know way more than their customers about what’s good or bad performance. But they may not

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