My friend, Anna, is a sales rep for a major office products company. She recently had the opportunity to offer a customer a great deal on a top-of-the-line copier system. The price was discounted 20% off their every day low price, and the company was ready to throw in lots of freebies like extended warranty coverage and free supplies for the first 3 months. However, the longer she talked to the customer about the great deal she had to offer, the more questions the customer raised and the more confused she got.
She had confirmed that the customer was looking for a new copier system. However, the more she talked price and free stuff, the more he wanted to know about drive assemblies and wireless connectivity. Even the free warranty didn’t excite him, because he preferred a machine built to a level of technical specs that would minimize down time in the first place. He didn’t exactly turn her down, but all Anna could get him to agree to was to meet with her again when she could provide him with a complete summarize of all the technical data that would answer his questions. When Anna hung up the phone, she was a little mystified. She kept asking herself, “Why would someone not jump at the chance to save $1,000 on a great machine like the one she was selling?”
Why indeed. However, the answer is pretty simple, really. It has to do with the psychological factors that influence the sales process. Simply put – people are all different, and they make buying decisions for different reasons. Too often, we assume the sales process is driven by price, but there are a number of factors that can be equally influential, maybe even more so.
Anna assumed that her customer would be thrilled with the opportunity she presented to him. She already knew he was in the market for a new printing system. She offered him a great deal on a fine system, but he didn’t bite. Why not? Because price was not the only – and probably not even the primary – motivator for him. He is one of those buyers who is even more concerned about the details of what he is buying. He wants to analyze and scrutinize all aspects of the product in order to understand everything about the operating parameters. Also, he doesn’t like to be rushed. The more information he gets, the more information he wants, and it all takes a long time to study.
If Anna had realized any of this in advance, she might have totally restructured her approach to the call. She managed to save it at the last minute by offering to send more information. Buyers like this love lots of information. What is the lesson to be learned here? To truly become a selling success, you must not only know your product, you must know your customer and understand what is important to him. He has to recognize that you are not simply trying to sell him what you have, you are endeavoring to help him obtain what he wants.
Remember this: The only reason someone ever buys anything is because of some perceived need that they are trying to meet. Now, “need” is a very subjective notion, and it can mean different things to different people. However, in order get our bearings, let’s lay a basic foundation. When you cut through all the hype and rationale, buying something helps people address one of three basic needs: profitability, productivity, or image.
Profitability has to do with either saving money or making money. A new super-efficient air conditioning unit might save the customer 40% on his heating and cooling bills. A more sophisticated software package might allow a physician’s bookkeeper to start billing insurance claims for his practice, and increase her annual income by $10,000. This is a version of that old adage, “you have to spend money to make money.” A buyer with this motivation will be asking himself, “Will this product improve my bottom line?”
Productivity refers to the practical results or benefits of the product: is this going to be faster, stronger, safer, smarter, more convenient or more effective than what I have now? Remember earlier, we discussed the fact that side curtain airbags and anti-lock brakes make a vehicle safer. Microwave ovens make cooking more efficient. A state of the art computer helps you process information faster. A new home that is smaller but closer to your office downtown is much more convenient than fighting commuter traffic on the Katy Freeway in Houston. A buyer with this motivation is going to be asking, “Will this product make my life easier or more productive?”
Image has to do with the way the buyer perceives himself, or the way he thinks he will be perceived by others. Honestly, is there a practical reason to drive a Ferrari instead of a Mustang, or buy a Gucci handbag instead of one from Target? Unless you are a glaucoma patient there is really no reason to have a 125 inch 1080p HD TV in your living room, is there? Even where less extravagant items are concerned, aren’t clothes from Sears just as good as the ones you can buy at Abercrombie and Fitch? Apparently, that is a matter of opinion, which is the whole point in the first place. A buyer whose buying need is associated with image is aiming to elicit a specific opinion or reaction from others; he is, in effect, saying to himself, and others, “how do you like me now?”
Productivity, profitability, or image; as you interview your customers, listen for the telltale clues that will tell you which motivation is most important to them. Once you have identified which one it is, you can weight your end of the conversation with information that they will appreciate.
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February Tip of the Month – Who’s the Boss?
This is so simple but so very important: make certain that you are investing most of your sales energy with the person who has the final authority to purchase the product. Don’t sell to the wife if she is going to defer to her husband. Don’t sell to the husband if he is going to defer to his wife. Don’t sell to either one if they like to make decisions together. Don’t sell to the Assistant Manager if the Manager has the final authority to buy. Don’t sell to the Manager if the Regional Manager has the final authority to buy. Don’t sell to the VP of Marketing if the CFO has the final authority to buy. How do you know for sure? ASK! Are you the one in charge of making final decisions regarding the purchase of telephone service for your company? Does ANYONE else have to approve your decision? Who is that person? Can you put me in touch with that person? When would it be convenient for me to meet with that person? Keep asking and asking until you work your way up to the right person. Don’t run the risk of showing all your cards until you are playing at the high stakes table.
