A recent LinkedIn State of Sales survey revealed some ominous (but potentially valuable) trends for small business owners seeking to improve their sales growth and profitability.  Among other findings, the survey of more than 7,500 buyers and sellers in 11 countries determined that…:

• 75% of sales managers say the ability to cope with change is more important now than it was five years ago.
• 80% of sellers say they lost or delayed a deal because a key stakeholder changed roles.

And…

·         60% of sellers say they always put the buyers first, but only 24% of buyers agree.

These post-pandemic findings represent an outstanding opportunity for any savvy business owner seeking to increase market share and maintain margins during these rapidly changing and very uncertain financial times. 

I’m actually surprised that 24% of buyers believe that sellers put them first.  I would’ve guessed that the percentage would be far less.  While most salespeople SAY that they sell consultatively, buyer’s perception IS reality, and the proof is in the pudding.   For years now, I’ve been trumpeting the importance of TRUE consultative selling, the microscopic percentage of the profession that can effectively executes consultative selling, and the fact that those who do not are losing a greater and greater percentage of sales each and every year.  

 In other words, having the consultative selling competency in your organization used to be a nice-to-have, and it has now become a MUST-have.   If your salespeople do not possess these selling skills, they WILL lose massive market share, will not be able to maintain margins, and will ultimately die on the vine.   Choose or perish.

 There is a very good reason that more than three-quarters of buyers don’t believe that sellers put them first.  It is because most sellers don’t.  

This is the ultimate sales paradox.  Selfishly, most salespeople (and owners) believe that their sellers SHOULD put themselves first.  However, the most successful salespeople in the world know that doing so will quickly lead buyers to dismiss them from consideration and purchase from their competition.

 As with every other sales attribute, success begins with a salesperson’s mindset.  Here are a just few more critical behaviors required from any truly consultative salesperson:

 Questioning:  A Consultative Salesperson will ask good, tough, timely questions, and when appropriate, will respectfully challenge certain info they unearth.  Most salespeople simply cannot do this, not because deep questioning is difficult, but also because the questions cannot be scripted in advance and because they do not possess the correct mindset.  Follow up questions should never be the result of a script.  They should almost always result directly from the buyer’s responses. 

Outward-focus:   Most sales reps (and human beings) are self-centered.  It is difficult for most people to remove themselves from their own desired outcomes.  Until a rep can train him/herself to set aside their own objectives, desires to be liked or validated, egos, and other needs, they will hear very little of what their prospects are actually trying to convey.   In other words, they will miss out on all of the really good stuff.

Listening (actively and deeply):   Most salespeople spend way too much time talking versus listening and understanding.  When their lips are flapping, they are often spouting either statements or rehearsed, non-differentiated questions.   Yikes.  They rarely ask the question behind the question.  Rather than closely listening to a prospect, they are actually preparing a reply. 

Patience:  Most sales reps just cannot wait to tell people about what they sell, how amazing their company is, and all the ways they can help.  The (disempowering) tapes playing in their heads convince them that time is limited so that they “better hurry and tell them how great we are”.   They avoid asking questions because doing so might delay or replace their presentations, demos, and proposals, all things in which they have much more confidence in than selling consultatively.  Patient, consultative, differentiated salespeople add tremendous value with skilled Buyer Facilitationä.  Because their facilitation is unearthing new insights and adding value, they subsequently learn that buyers will make additional time for them.   A sales representative should always strive to slow down, be 100% present, and go deeper and wider with their listening and questioning. 

Infinite Curiosity:   Children do this very well.  Adults, who become “selling experts”, often develop the “curse of knowledge”.  They consequently lose their ability to be curious and make far too many assumptions.  Infinitely curious salespeople facilitate mutual discovery, differentiate themselves, and help buyers to create a new, better buying vision.

More Questions, Better Questions:   As the survey results revealed, most salespeople who have asked a few (often scripted) questions truly believe they are selling consultatively.  The reality is, until several dozen questions have been asked, a salesperson isn’t even close.  Again, I’m not talking here about rehearsed, blah, blah, blah questions.  Consultative selling demands unique, thoughtful, spontaneous follow-ups to perhaps a couple opening questions asked during the first few minutes.

An extremely small percentage of salespeople possess consultative selling skills.  Those who adopt, develop, and master them have always captured the lion’s share of available business, but now stand to completely dominate in 2022 and beyond.

One final thought…:  Effective Sales Management can have an enormous effect on the mindset, methodology, culture, improvement, and performance of your team.  Team success in today’s (primarily) remote selling environment demands the development of a high-touch coaching and learning sales culture that will pay huge dividends.

Please don’t wait.  The tsunami is already gaining steam, and developing these skills takes time.  Consultative sellers have always captured the majority of sales.  They will soon capture just about all of it.  Whether you are looking to develop your existing sales team, are recruiting new reps, or are seeking to improve your own personal selling effectiveness, I hope you’ll find this information to be valuable.

Copyright © Joe Zente 2022. All Rights Reserved. 

“Frugality drives innovation, just like other constraints.  One of the only ways to get out of a tight box is to invent your way out.”  Jeff Bezos

The facts are in–inflation is growing much faster than wages.  Simply, it costs more to do business, and most analysts agree there is no quick fix.

What is an owner to do?

Many small businesses leaders are reluctant to raise prices or are fearful of increasing them enough to maintain profit margins.  While it is prudent to always be seeking ways to increase revenues, and whether you decide to raise prices or not, cost reductions can have an equal, and perhaps larger effect on your bottom line. 

Unfortunately, some cost cutting measures can actually harm your business, so here are 15 ways you can reduce expenses without causing collateral damage.  Some methods might seem more draconian than others, so evaluate each according to your specific situation and goals. They are listed in no particular order of cost savings or importance.

1.    Review your insurance policies. You want to maintain good coverage, but policies differ greatly.  Shop around, consider increasing deductibles, and eliminate unneeded coverage.

2.    Independent contractors. While employees are critical for certain responsibilities, the cost burden associated with recruiting, hiring, on-boarding, training, and letting full time employees go can be staggering.  For many projects and short-term responsibilities, the use of interim freelancers can represent significant savings.  Most estimates indicate that the use of an independent contractor in place of an employee can represent savings of 30%.  If you do decide to pursue this route, make sure you classify employees and contractors correctly to ensure you comply with labor laws.  

3.    Meet customers, prospects, and vendors virtually.  While in-person meetings surely have benefits, most business professionals now expect their associates to use platforms like Zoom for interactions.  In addition to reducing travel and meal expenses, this method offers the additional advantage of consuming much less time, providing bonus hours you can use to remotely visit with even more stakeholders and to devote to other aspects of growing your business.

4.    Automate.  Consider ways to use AI, robotics, and other technologies in place of human beings to perform redundant or programmable activities. This approach may carry some near-term expense but can often provide returns quickly and pay off big over the long haul.

5.    Eliminate paperwork and paper:   
a.    Invoicing electronically eliminates the need for printing, stamping, and snail mail costs.   Invoices are also received quicker, which could lead to receiving quicker payments.
b.    Save documents and files to the cloud, reducing paper, copying, and printing costs.

6.    Make sure your house is in order.  Understand your federal, state, and local rules and regulations.  Stay compliant.  Also, keep your vital documents and contracts updated and in order.  If necessary, invest in a good labor attorney and/or HR professional.  The fees will likely save you serious money in long run versus the potential fines, penalties, and lawsuits resulting from noncompliance or similar violations.

7.    Consider no cost / low-cost employee benefits. The labor market is brutally tight, so you must have a compelling strategy, value proposition, and culture to attract and retain great talent.  Benefits can be important here, but many do not need to cost big bucks.  Bennies like flexible work (remote; flex time), creative, low-cost HSA and/or health re-imbursement plans, and payroll deduction programs so employees can buy their own savings bonds and/or other qualified, self-directed purchases, and more can all be considered. 

8.    Implement low-cost marketing strategies. You do not have Apple’s marketing budget, so improve your strategies and execution effectiveness in areas such as referrals, networking, an effective social media program, and more. Think outside the box. Get creative!  After all, this IS marketing.

9.    Save energy!    

a.    Change your lighting:  You can save up to 40% on energy costs by selecting the appropriate lighting.  Use LEDs, timers, dimmers, etc…

b.    Shut down unused equipment.  Many electronic items include automatic shutoffs and other energy-saving features, but you can save more by asking employees to turn equipment off when it is not in use—especially holidays, weekends, and overnight.

c.    Re-program your Thermostat:  You can also access significant savings by simply reducing the temperature a few degrees during selected times. 

10.     Consider a better banking solution.  While just about every bank claims to be committed to helping small businesses, only a small percentage will back those claims.  So choose carefully.  Make sure you have a relationship with an individual at the bank that will take the time to understand your needs, and your situation.  One who will communicate with you, understand the big picture, shoot you straight, and support you.  In turbulent times like these, you may need personal support and will want a good banker in your corner. 

11.    Evaluate your phone system.  Does your business still really need a landline, especially if many of your employees are working remotely?  Several companies now offer smartphone business plans.  Check them out.

12.    Negotiate prices for goods and services you buy.  If you don’t ask, you’ll never know.  Consider prices, rates, discounts, terms, and more.  

13.    Invest in employee efficiency and effectiveness.  The more efficient your employees become, the more work gets done.  Productivity = Profit.  Your people are your best asset.  Invest in them and the returns can mount up.  This translates into serious cost savings.  Offer training and incentives—these are small investments compared with the potential returns you could reap.

14.    Do you really need an office?  If your employees are working primarily from home, your need for office space may be reduced or eliminated.  If you can’t negotiate your way out of your lease, you may be able to sub-lease your vacant space.

15.    Consider capital equipment options:  If you need a new machine or vehicle, a lease will likely cost less each month than a comparable payment on a purchase loan.  Also, it may make sense to purchase used versus new. If you need equipment, re-furbished may meet your requirements. Pre-owned equipment can often be a good option, but if you decide to go this route, make sure to carefully check warranties.

Runaway inflation, high energy costs, supply chain issues, the tight labor market and more will cause many businesses to fold over the next year or two.  However, this turbulent economic environment will also represent some huge opportunities for those savvy CEOs who stay informed, make prudent decisions, and invest wisely.  

These tips are just a small sampling of the most popular techniques forward-thinking CEOs are using to weather our inflationary environment and position their companies for stability and continued success.

There are many more, which bring us to one final point.  DON’T GO ALONE!!!   Collaborate with other successful business owner peers in a group like The Alternative Board.  Doing so will keep you on the tip of the spear, help you make much more informed decisions with regard to how to invest your precious, limited time, money, and resources, and ultimately save you a fortune. 

To your continued success…

Joe

Copyright ©   Joe Zente 2022.   All Rights Reserved. 

 Let’s be brutally honest.  When you sell…:

• Do you feel anxious to tell buyers why your product, service, or company is great?

• Are you more comfortable talking & presenting versus asking tough, probing questions? 

• Do you listen more selectively than actively?

• Does your blood pressure increase when you perceive a “buying signal”?

• Do you often listen with “happy ears”?

• Do you feel pressure during sales calls to make sure you get in your “key points”?

• Do you often leave sales calls without getting all the critical information you need?

• Do you wonder why some of your prospects “Just don’t get it”?

• Do you love being an expert?

• Do you struggle to convince people to buy your product or service?

• Even though you are aware that you should listen and learn more while talking less during sales conversations, do you find yourself talking way more than you’d like?

• Is it possible you are addicted to Convincing?

 If you answered yes to one or more of the questions above, you may be a Convince-aholic ©.

Like all addicts, the CONVINCE-AHOLICS EXHIBIT SELF-DESTRUCTIVE BEHAVIOR that temporarily fills a void created by unmet needs while creating poor results.

Similar to other types of addicts, Convince-aholics are constantly bombarded with temptation, making their addiction challenging to overcome.

Most existing sales literature, on-boarding sessions, and training programs exacerbate the Addiction by presenting clever techniques or scripts and encouraging salespeople to use manipulative “leading” questions, tie-downs, and use slight-of-hand.  Each of these convincing techniques actually diminishes a salesperson’s ability to differentiate themselves, to facilitate discovery, to develop trust, to learn the truth, and to add value — the essential core competencies of the world’s most successful salespeople.

Despite the fact that Convince-aholics consistently lose sales and struggle to maintain margins, their behavior provides a dopamine rush.  This rush makes them FEEL like they are gaining. If they didn’t, they would likely stop their destructive, ineffective behavior and replace convincing with a consultative discovery process leading to consistent success.

Some characteristics that come out of Recovery Literature follow. Please consider the parallels:

The Addictive Experience

1. Creates predictable, reliable sensations.
2. Becomes the primary focus and absorbs attention.
3. Temporarily eradicates pain and other negative sensations.
4. Provides artificial sense of self-worth, power, control, security, intimacy, and accomplishment.
5. Exacerbates the problems and feelings it is intended to eradicate.
6. Worsens functions, creates loss of relationships.

At a foundational level, success in selling is based upon mindset and beliefs.  The Convince-aholic mindset dramatically diminishes selling effectiveness, the quality of relationships, trustworthiness, and income.

The great news is that any Convince-aholic can overcome their addiction using a time-tested recovery program.

If you believe you may be afflicted (or know someone who is), would like to assess the severity of your addiction, and would like to understand the process to get clean, feel free to email me and write “I May Be Addicted” in the subject line.

Wishing you nothing but success in 2022 and beyond.

To Your Freedom…

Copyright © Joe Zente 2021.  All Rights Reserved.

Over the last 25 years, I’ve had the honor and privilege of helping over 1000 entrepreneurs become better CEOs.  Many of these business owners are among the most successful in their respective industries. 

Entrepreneurs often ask me “What is the biggest difference between successful owners and those who constantly struggle?” 

While I don’t think the answer to this question is an easy one, many patterns become obvious.  Simply, CEOs who consistently succeed behave differently than most.   

Many studies tell us that our beliefs drive our actions and that our actions drive results.  We also know that the language we use has a huge effect our beliefs.  In other words, if we wish to transform our results, we must transform our language.   This is relatively simple to do. 

Interestingly, there is one comment that I rarely, if ever, hear emerge from the mouths of super-successful CEOs.   The best entrepreneurs understand that success is derived from using their precious time, money and resources effectively and efficiently.   They know it is crucial to prioritize, so do not allow the tyranny of the urgent prevent them from executing their most important activities.  Consequently, you will not hear a consistently successful CEO say… 

  “I don’t have time”     

Great leaders understand that this type of victim-speak can torpedo a CEO’s performance before they leave the gate.  Unfortunately, I hear the phrase frequently from owners who are constantly struggling to keep their head above water. 

Instead of using self-destructive phrases like “I’m too busy” or “I don’t have time”, top performing CEOs use different language.  They say things like…: 

·         We ALL have 24 hours in a day, so I DO have time. 

·         I can do anything, but I can’t do everything (and that’s OK!) 

·         I choose to invest my time in the most impactful way possible, aligned with my vision and goals. 

·         In order to “get” more time to do the things that are most important, I must Delegate, Automate, or Eliminate. 

·         I will re-prioritize to make time for any endeavor that will support my growth and goals. 

·         I refuse to work on activities that are below my pay-grade! 

·         I am in complete control of my choices and of how I choose to invest my time. 

How does your language stack up? 

Are you allowing events and activities to control you, or are you flying this plane? 

Do you have a tough time delegating or eliminating, and if so, what are you doing about it today?

Changing your language is one of the simplest ways to improve your performance. 

If you are struggling to do so, there is plenty of help is available.   Get some now, and please don’t say “I don’t have time”

Copyright © Joe Zente 2020. All Rights Reserved.

I meet with salespeople and sales candidates practically every week. 

During sales interviews, I always ask new candidates in the first few minutes of our conversation to describe their selling approach.  Interestingly, 80% of them reply with some form of “I’m a CONSULTATIVE Salesperson.” 

Good answer!   Consultative Selling has become the superior method for selling in the digital, information-rich age.  In fact, consultative individuals are the ONLY salespeople that have ANY chance of differentiating themselves and selling effectively in today’s virtual environment. 

Much has been written about this subject, so most salespeople, especially “seasoned, experienced salespeople” know that they are supposed to sell consultatively. 

Unfortunately, as my sales interviews proceed, 9 out of 10 of the candidates who enthusiastically tell me they are consultative, PROVE to me they are actually the exact opposite.  And I’m not just talking about rookies here.   Many of the sales candidates I interview have been selling for decades. 

The vast majority of candidates spend the remainder of our conversation talking, presenting, and gushing—trying to convince me why they are the best.  Each one sounds just like the last one, trying to convey how great they are, telling me about their previous accomplishments, and citing the awards they have won in their illustrious careers. 

Interestingly, very few seek to learn what I am looking for, what criteria I will use to decide, what our decision process might be, what success would look like, what motivates me, and why I would possibly select them over the other candidates. 

In a sales interview, I couldn’t care less what a candidate (or their resume) says.  Their actions will always speak much louder than their words and documents.  You can be sure that they will ultimately sell your product or service using the exact same approach that they did when they tried to sell themself.    So if they don’t interview consultatively, run away FAST. 

If a sales candidate was truly consultative, here are just a few of the attributes he/she would clearly exhibit..: 

Questioning:  A Consultative Salesperson will ask good, tough, and timely questions, and when appropriate, will respectfully challenge certain things they unearth.   Most salespeople simply cannot do this, not because deep questioning is difficult, but because the questions cannot be scripted in advance.   Follow up questions should almost always result from the prospect’s responses. 

Listening (actively and deeply):   Most salespeople spend way too much time talking versus listening and understanding.  And when their lips are flapping, they are often spouting either statements or rehearsed, non-differentiated questions.   They rarely ask the question behind the question.  Rather than actually listening to a prospect, they are preparing a reply. 

Outward-focus:   Most sales reps (and human beings) are self-centered.  They have a difficult time removing themselves from their own desired outcomes.   Until a rep can train him/herself to set their own egos, objectives, desires to be liked or validated, and other needs, they will hear very little of what their prospects are actually trying to tell convey.   They will miss out on all of the really good stuff.

 Patience:  Most sales reps simply cannot wait to tell people about what they sell, how amazing their company is, and how they can help.   They have (detrimental) tapes playing in their heads that convince them that time is limited so that they “better hurry and tell them how great we are”.   They avoid asking questions because doing so might delay or replace their presentations, demos, and proposals, all things in which they have much more confidence in than selling consultatively.  Patient, consultative, differentiated salespeople add tremendous value with skilled Buyer Facilitation.  Because they are adding value, they subsequently learn that buyers will actually make additional time for them.   A sales representative should always strive to slow down, be 100% present, and go deeper and wider with their listening and questioning. 

Infinite Curiosity:   Children do this very well.  Adults, who become “selling experts”, often develop the “curse of knowledge”.  They consequently lose their ability to be curious and make far too many assumptions.  Infinitely curious salespeople facilitate mutual discovery, differentiate themselves, and help to buyers create a new, better buying vision.

More Questions, Better Questions:   Similar to the recruiting sales candidates I’ve described above, most employed salespeople actually believe they are selling consultatively when they have asked a few questions.  The reality is, until 4 or 5 dozen questions have been asked, a salesperson isn’t even close.  Again, I’m not talking here about rehearsed questions where a rep simply runs down a scripted list.   Consultative selling demands unique, thoughtful, spontaneous follow-ups to perhaps a couple opening questions which were asked during the first few minutes.

Z3 Performance Development has been helping companies to build world class sales organizations for 25 years.  During these years, we’ve interviewed many hundreds of “sales professionals” and helped thousands of salespeople improve their selling effectiveness.    Patterns become obvious, and quite simply, successful salespeople behave and THINK totally different from the masses.  

Whether you are recruiting new salespeople, working to help develop your existing people, or working to improve your own consultative skills, I hope these examples will provide some fuel for rapid and on-going improvement.  

Copyright © Joe Zente 2020. All Rights Reserved.