Sales

Sales

Pain or Gain: Your Sales Approach Matters

As we saw in our last post, people differ in their approach to motivation: some are more focused on prevention goals and strategies (moving away from pain), and others on promotion goals and strategies (moving towards gain). When you adapt your sales approach to fit theirs, they will be more engaged, understand your message easier, and feel better about their decision. And the best part is that once you learn how to do it, it’s not that difficult to do.

First step: Figure out their dominant mode

Since it’s so important to properly align your sales approach to the other person’s prevention or promotion focus, you have to be able to quickly size them up and figure out which approach to use. Fortunately, there are numerous clues you can glean from what they talk about, the words they use, and even their nonverbal behavior.

What are their goals? Ask them what they want to accomplish and what success will look like when they make this decision. Promoters are going to talk about taking advantage of opportunities, of their aspirations and hopes for the future, and what they want to achieve.  Preventers will talk about known problems and risks, about what they’re concerned about, about what they must avoid or prevent. You can also accomplish the same thing by asking them how they made similar decisions in the past.

What alternatives are they considering? Promoters like to look at a lot of alternatives, and are open to new and different ways of doing things. Preventers are more limited, and more conventional. Also, promoters want the best, preventers want “good enough”.

What is their time horizon? Promoters move quickly and eagerly. Preventers prefer to take their time and don’t like quick deadlines.

“I” vs. “We” goals. Promoters are more concerned with individual achievement and looking good. Preventers focus on group achievement.

How prepared and organized are they? Promoters say “let’s do it”, preventers say “let’s plan it”.

Attention to detail. Promoters are more big picture and abstract. Preventers pay attention to detail and like to consider concrete features and benefits.

Promoters move quickly and get excited when they consider success. Preventers are slower and more guarded.

Just one more caveat before proceeding: Don’t forget to assess yourself, because you are probably relying on one approach regardless of who you’re selling to. You probably know yourself well enough, but just in case, here’s a questionnaire you can use.

Second step: Tailor your approach

There are three general ways you can apply prevention-promotion focus in your sales approach: you can adapt to their mode, prime them to adapt to yours, or hedge your bets by using both approaches.

  1. Adapt your approach to suit their dominant focus.

Frame their benefits appropriately. Sales is basically about one thing: you address gaps to improve outcomes. So, the frame choice is quite simple: do you talk more about eliminating or preventing a gap, or about the outcome produced by doing so? The exact same benefit can be expressed in different ways. For example, a client of mine sells sentiment analysis software that can be used to monitor morale, which either cuts turnover or improves retention. Another example: are you lowering fuel costs, or improving fuel efficiency?

Choose which benefits to stress. Most products and services deliver multiple benefits, so you can prioritize some over others. For example, toothpaste can either give you a brighter smile or prevent tooth decay.

Emphasize some questions over others. Challenge and cost questions bring out consequences of not fixing their current situation. You can ask more of those during your sales call with a preventer; ask more resolution questions of a promoter.

Tell different stories. Inspirational tales and testimonials about your other customers who received benefit from your solutions work well with promoters, but cautionary tales about those who did not solve their problems will resonate more with preventers.

Options. Give more options to promoters; limit them for preventers.

New vs. same. When you’re summarizing your offer, emphasize what’s new and different for promoters, but stress what’s tried and true—what’s not different—for preventers.

Abstract v. concrete. For promoters, emphasize the abstract feel-good outcomes, and paint a visionary picture of what success looks like; for preventers, emphasize concrete, measurable features and outcomes. You can also vary how you present competing alternatives. Promoters like to hear all about one offer, then the next. Preventers prefer to see their specific features and benefits rated side by side.

Nonverbal behavior. Without going overboard, it helps to match the general tenor of the other person’s body language. Use more expansive and animated gestures and vocal variety with promoters; tone them down for preventers.

  1. Prime their focus temporarily

Some products or services can only be framed in one way; they are either promotion or prevention focused by their nature. You don’t sell a Porsche by stressing safety and fuel economy, nor do you sell a Volvo by touting its sexy lines. If what you sell only makes sense to be sold one way, the good news is that you can actually “prime” the other person to adopt a prevention or promotion focus, at least for a short time by bringing to mind the appropriate examples.

One of the best ways is through asking the right kind of situation questions. If you ask about what’s important to them personally, you can either ask about their ambitions and aspirations, or you can ask about their duties and obligations. When you ask about what they want to accomplish, you can either ask about what they’re trying to achieve or improve, or you can ask about what problems and risks they’re concerned about. The old “magic wand” question works great to prime a promotion focus: “If you had  magic wand and could design the perfect solution, what would it look like?” To get them into a prevention frame of mind, ask them, “On a scale of 1-10, how well is the current system working for you?”

  1. Use both approaches – the “persuasive scissors” approach

If you’re speaking to a roomful of people, chances are good that you will have a mixture. Make sure your presentation or conversation covers both approaches. I call this the persuasive scissors approach, because both blades work together towards the same end. Many persuasive presentation structures are well designed for this. For example, the problem/solution structure begins by describing the problem and quantifying its consequences, and ends with a description of the benefits to be gained by solving it. Even Martin Luther King’s Dream speech was structured this way.

BONUS SECTION: MOTIVATING AND COACHING SALES REPS

I believe that motivating sales reps is a lot like selling: you analyze the situation, ask a lot of questions, uncover gaps, and then get buy-in for a plan to fill them.  So, much of what you’ve read in this article can help you with your reps as  well.

The importance of regulatory fit means that you shouldn’t coach all your subordinates the same way.[1] If you doubt the hold that one’s pre-pro focus can have, consider the results of an experiment involving professional soccer players in Germany. After being tested to determine their focus, they were given the opportunity to shoot five penalty shots during one of their practices. Some were told their task aspiration was to score at least three times. Others were told their obligation was not to miss more than twice. Even these professionals saw a 30% difference in their performance, depending on whether their instructions fit with their prevention or promotion orientation. It was especially marked for prevention-focused players, who saw almost a 100% difference[2]. As a sales manager, it should not take too much imagination to figure out how to apply this to coaching your reps.

When you give performance reviews, or conduct after-action reviews promoters respond better to hearing what’s going well, but preventers do better upon hearing what they’re falling short on. By the same token, pep talks work well for promoters but leave preventers cold.[3]

 

[1] It reminds me of what John Wooden said: “Fairness is giving all people the treatment they earn and deserve. It doesn’t mean treating everyone alike.”

[2] This statistic was reported in Focus: Using Different Ways of Seeing the World for Success and Influence, by Heidi Grant Halvorson, which is the best book for a general audience. I highly recommend it, especially since it contains a lot of other useful ways to apply focus to your own goals and motivations.

[3] There is some good stuff in this article by Halvorsen and Higgins in Harvard Business Review: Do You Play to Win—Or Not to Lose?

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It matters which road you take
Sales

Pleasure or Pain? Using the Yin and Yang of Motivation to Sell More (Or Reduce Your Losses)

If there is just one thing I can be sure of after a quarter century of studying and teaching sales and persuasive techniques, it’s that people do things for their own reasons, not yours. What you think might be an airtight reason to buy your product might leave the other person cold, and reasons that you don’t think would carry any weight might be the most important thing in their world.

Sales is about getting people to change; that’s a given. But the question we consider in this article is: Does the direction of change matter? When someone is mulling a decision whether to buy a product or adopt a proposal, they can think of the positive benefits they’ll get, the consequences of not acting, or some combination of the two. If you’re the one on the selling side of that decision, does it matter how you frame it? Does the direction of change matter? In other words, are people more likely to act or buy when moving away from pain, or toward gain?

The short answer is: it’s complicated.

On average, as I’ve written before, there is a lot of power in stressing the negative. According to prospect theory, an idea which won Daniel Kahneman the Nobel Prize in Economics, potential losses outweigh gains on average, which means that people are more likely to act or take a risk to avoid a loss than to secure the equivalent gain. So it makes sense to emphasize the negative during your sales conversation, at least initially.

But it’s also possible to drown crossing a river that only averages three feet deep. Just because deciders tend to shun negatives, does not mean that they all shun negatives, or that they do so at the same rate as everyone else. In fact, other research has found that people definitely differ in the way they view risks and benefits. Some are promotion-focused, which means that they keep their eyes on the prize, while others are prevention-focused, which means that they are more concerned with avoiding risk.

In greater detail, here are a few major differences between the two orientations that are relevant to your sales challenge:

  • “Pros” view products holistically and respond to abstract benefits; “pres” focus on detailed features and concrete benefits.
  • Pros care more about individual aspirations; pres care more about team obligations.
  • Pros prefer “BOB”: pres prefer “MON”[1]
  • When pros like what they’re hearing, they get excited and act happy; when pres do, they feel relief and act calm.
  • Pros rely a lot on how a decision feels; pres rely on the reasons for their choice. (sizzle v. steak)
  • As they get closer to a decision, pros are eager, pres are vigilant.

Tory Higgins of Columbia University, who literally wrote the book on this idea (Beyond Pleasure and Pain: How Motivation Works), reports on an experiment in which participants were given the opportunity to choose between a mug or a pen. But before they made their choice, they were given instructions about how to make the choice. Half were told to think about what they would gain by choosing either the mug or the pen, and half were told to think about what they would lose by their choice. In addition, they had previously been assessed to identify the “pres” and the “pros”. Almost all chose the mug. Next, they were given the opportunity to buy the mug with their own money. There was no difference between the two groups in how much they offered for the mug—in other words, whether they focused on the gains or the pains did not affect how much they were willing to pay.

What did matter—a lot—was the “fit”[2] between the instructions and the orientation. Those who received instructions that lined up with their preferred mode (the pros who were told to focus on the gains and the pres who were told to focus on the losses) paid almost 70% more for the same mug than those whose instructions clashed with their preferred approach!

What this means for you is that if you know which orientation your buyers favor, you can tailor your sales approach and your messaging to be more effective for the specific individual and pump up your win rate. Or, to put it another way, not knowing the difference means that you may be leaving some money on the table.

Which of those two previous sentences did more to perk up your interest? Here’s one more test: when you read product ratings for a potential purchase, do you first read the 5-star ratings or the 1-star ratings? If you read the 5-star ratings first, you have a promotion focus; otherwise you have a prevention focus. The point is that your own orientation matters, because it affects how you sell.

How does it work?

First, it’s important to realize that adjusting your sales approach to fit with the buyer’s motivational orientation will help enhance attitudes they already have towards your solution; it’s not a magic bullet that can somehow flip their choice if they’re strongly opposed to it. But most buying decisions are not clear-cut in one direction or other (if they were, why would they need you?) and in that situation alignment or fit can help tip the scales in your favor for three reasons.

Engagement: First, the buyer gets more engaged in listening to the message. You can’t influence someone who’s not paying attention, and people are more  likely not only pay attention but to engage more deeply into your message when it fits their dominant mode.

Understanding: It’s also helpful when people understand your message, and people find it easier to process information when it fits.

Feeling: Decision feels more or less “right”, and if it’s true that people decide emotionally first and then rationalize it later, that’s certainly one side of the equation you want to be  on.

Just to add one more complication to the mix: people are not always consistent in their approach. For one thing, they may have different focuses in different areas of their life. For another, people can be primed to adopt a different approach temporarily. And, more relevant to sales, a lot depends on what they’re deciding on. When you’re buying a fire extinguisher you’re probably not thinking of how good it’s going to look on your wall, for example.

So, what does this all mean for your sales approach? There are two ways to get the answer. First, that’s a topic I’ll cover in my next post. Second, you can tune in to a free webinar I’m running next week on the Sales Experts Channel, Wednesday, June 7 at 5pm eastern.

[1] “Best Of Breed” vs. “Meets Our Needs” i.e. best vs good enough

[2] More technically, they call it regulatory fit.

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Sales

Where’s the Problem?

A man goes to a doctor for advice, because he’s concerned that his wife is losing her hearing. The doctor says, “The first thing we have to do is find out how bad it is, so when you go home, stand in the doorway and say something. If she doesn’t hear, move halfway into the room and say it again. Then, stand next to her and say it.”

So the man goes home and looks into the kitchen. “Honey, what’s for dinner?”

No response.

He walks halfway into the kitchen and says, “Honey, what’s for dinner?

Again no response.

Finally, he gets right behind her and says, “Honey, what’s for dinner?”

She turns and says, “For the third time, CHICKEN!”

I liked this joke when I first heard it earlier this week, and it especially resonated because of a speech I delivered on the topic of creating an ethical sales culture. What’s the connection?

One of the points that I made is that often when a sales leader is unhappy with sales behavior, their first instinct is to figure out what’s wrong with the salesperson. Maybe they need a little more motivation, or need to be counseled on ethics, or maybe they’re just the wrong person for the position. But, how often do they look within for the causes of the behavior? How often does it even enter their minds that maybe the fault lies within themselves?

The example I used in my speech was Wells Fargo. After their scandal broke, they touted the fact that they had fired 5,300 employees for unethical behavior. I wonder how many of those employees were actual perpetrators, versus how many were victims? By that, I mean victims of an ultra-high-pressure culture in which they were monitored up to four times a day and “hounded, berated or demeaned” when they were inevitably short of impossible quotas. Under such conditions, is it any wonder that many saw no recourse but to cheat and open unauthorized accounts?

But it does not have to be as egregious in scale or degree as Wells Fargo to be a potential problem. I’ve seen it on a much lesser scale in so many ways. The sales VP who stresses the value of long term relationships but rewards and punishes short term results; the sales manager who wants her reps to take initiative but immediately steps in to rescue a sale; the director who overlooks a little white lie about delivery dates because it salvages a big deal.

My point is not to deny the importance of personal accountability, but to affirm it. Someone should definitely be held accountable—but look within first. This is not only right, but practical. If the behavior is caused by something you’re doing or not doing, it’s not going to go away just because you counseled or fired the rep. It will likely infect the rest of the team, and anyone you hire to replace the “bad apple.”

Maybe the first rule of sales coaching should be: “Check your own hearing first.”

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Sales - Uncategorized

Lean Communication for Sales and The New Sales Imperative

One of the tenets of lean is constant and continuous improvement, and in that spirit I have modified my model slightly, thanks to a new Harvard Business Review article by Nick Toman and Brent Adamson, The New Sales Imperative.

As I’ve written before, your purpose—in fact, the only reason salespeople are relevant—is to help your customers make effective buying decisions. Complex decisions can’t be made without investing time and effort to gather, understand, analyze and apply a lot of information, but salespeople often make it much harder than it should be. To that end, the goal of Lean Communication for Sales is to improve your buyers’ RoTE, or Return on Time and Effort. In lean terms, you provide useful information that helps improve their outcomes, and express it concisely and clearly.

To a great extent, their article reinforces what I’ve been saying about the importance of making it easier for people to decide. As their research shows, making buying easier results in a 62% increase in the likelihood of winning a high-quality sale.

But as new research that Toman and Adamson adduce shows, there is another hidden form of waste that needs to be removed from the buying journey: uncertainty. Their research shows that customers are “deeply uncertain and stressed”, and second-guess their decisions more than 40% of the time! This uncertainty can be paralyzing, and paradoxically it’s the good intentions of the salesperson that exacerbates it. That’s because they try to be responsive and attack uncertainty with even more information. But unfortunately, beyond a certain point, more information and more choice actually increases uncertainty, as you can see in the figure above.

This is a useful reminder, but most of us already have at least an inkling of this. The real difficulty is figuring out where the bottom of that curve is so that you can get uncertainty as low as possible but then stop. That’s where their article is particularly helpful. They lay out a four-step approach for being less responsive and more prescriptive. Out of deference to them and to HBR, I’m not going to try to summarize their ideas here—I encourage you to read it here.

What I am going to do, however, is spend some serious time thinking about how to incorporate the idea of reducing uncertainty into Lean Communication for Sales. As a start, I’m changing the goal of improving RoTE to RoUTE!

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