We Sell Like We Buy – The Ying and Yang of Sales
Those of us who work with sales organizations, especially with senior leaders, have an fascinating vantage point of the ritual of sales, and how it unfolds in uncommon organizations. From this perch, we get to see these people in both “buying” and “selling” mode, and with that, it has become very apparent that with few exceptions, these leaders and their respective sales organizations sell very much like they buy.
This is no surprise as in most cases the nature and character of the sales organization is a reflection and extension of the VP of sales. They set the tone and direction, forming the foundation on which the culture of the organization is built. This can lead to both clear and negative consequences on their teams’ performance and success.
For example, I remember working with a company that is a chief in their field, a provider of precision technology; six figure deals with six-month cycles. The VP of Sales was looking to help his team maintain and increase their edge and increase their ability to engage with and sell to executives. He had worked with a number of sales improvement firms in the past and was keen to expand his teams’ knowledge and ability.
From the start, he was very apparent as to how he was going to evaluate the providers he was evaluating; key drivers, how he would weigh and measure things; what he was willing to invest; what his “must” and “nice to” haves were. He was apparent on his timelines for exploring, evaluating, deciding and committing. In hind site, when he did sign, he had very effectively executed his “buying process”. Moreover, it was no surprise that his team executed their visibly defined “sales process” consistently and efficiently. They were keen to increase, and worked hard to include the new methodology our program delivered.
This is a fantastic example of why people DO sell like they buy. Many “sellers” do not have a “buying process”, many are not aware of their buyers’ process, or its role in the sale. Some are not even cognizant that the vital process at play is not their own “sales process”, but the buyer’s “buying process”.
This is a common problem; many sales organizations pay only lip service to the prospects’ “buying process”. A study of information management product buyers, showed sellers are more often than not out of synch with their prospects’ buying process, timelines, choice criteria, etc. This is because most Sales VP’s do not have a buying process for their buys, and therefore do not focus on its substance when they lead their teams. As a result, most are terrible buyers.
I worked with another VP, nice guy, but terrible buyer; not terrible because he didn’t buy from me, he did! Terrible because of the way he went about buying. Unable to meet deadlines, constantly shifting priorities, procrastinating and hesitating throughout. Amusing, because when he called us; he was concerned about the length of his teams sales cycles, he believed his people were let the cycle linger, and lacked focus when they executed the “sales process”.
Another VP I met with last summer, a technology company; top quadrant in a crowded field, not quite a commodity play, but they were being challenged. They were experiencing difficulties acquiring, on the rise and maintaining clients. As you would expect they have a “sales process”. As is often the case all the talk about the sales process was never balanced by an awareness or focus on the clients’ “buying process”.
When she was unfolding her challenge she knew what was “incorrect”, she clarified:
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Average deal was size $32,800, this was usually about 78% of list price
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Her staff is able to get the small revenue – – small margin deals, but is challenged as the deals get larger.
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Deals under $28,000 they were closing 56% of proposals, at between 80% – 85% originally proposed (list) price.
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Deals over $45,000, they were closing only 17% of proposals, and a fantastic many of those at 60% – 65% of first proposed price.
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They were challenged mission the right people, high within companies in the butt base.
• While they were seeing progression, year over year it was slower than their segment which was impacting market share.
When she first met she told me she has been working with a known global provider to achieve her sales training. She told me her current provider was “helping her achieve what they needed to once they were in front of a prospect”. (This contradicted the facts and stats she presented a few minutes before). She did but acknowledge that her team could benefit from more meetings with real choice makers their client/prospect organizations. Based on the way we cold called her, agreed to let us interview her team to gain a solid understanding of the “ground truth” as a basis for a proposal for a prospecting regiment program.
She did like the program we presented, but straight away informed me that the price was too high. I questioned what had led her to that conclusion, she told me the other provider was charging half the price, and since they were a “global chief”, our price must be “out of belt”.
We discussed her team’s results, her awareness that the team was not engaging in sufficient numbers, and while her team had been reduced to selling on price, a larger challenge was the fact that they could not consistently even get in the game to be able to present a price that they would ultimately cut to get the deal. Still she could not get past the price.
Let us give this some perspective, the cost of the program for the team of 11 reps was less than one new sale each for the year; in terms of net margin, just under two additional new sales.
This scenario is common; just speak to anyone who evenly sells to heads of sales organizations. I have heard this from CRM reps, lead generators, and recruitment professionals. No apparent buying process is a apparent indicator of a team that has problems with their sales process and related activities.
The real hurt here is to her team, not because they are not getting the training they need, not because the training they are getting is a CYA exercise enhanced by a delivered by a “global chief’s” brand. The real hurt is the message it sends to her team, and the ensuing culture it produces.
When she was evaluating our proposal, she started and finished with price. She acknowledged the value/value of the program; recognized that reference companies we provided had fruitfully implemented the program, and are now consistently finding and converting sufficient prospects to grow both top and bottom lines. Yet her focus was strictly price; we offered to tie aspects of compensation to specific metrics, but no, she wanted a discount. Sounds a lot like the way her team sells!
What do you reckon her team is thinking?
The not so subtle message is you can’t beat the reputation quo unless you discount.
While “we talk value, we buy on price”, must be the way all buys.
“You can discount unconditionally, without reciprocal concessions from the prospect”. Their “sales process” drives this, and the lack of a “buying process” reinforces it.
Of course she, like many, would deny that this is the case, and would never articulate it in such terms to the team. But it is apparent their culture is one of aim low and discount higher.
The team sees this in action every time their VP does whatever business; she says one business and acts another. But “buying is done on a discount, and our VP is no uncommon than others.”
These are but some examples, but over the years the trend is apparent and unshakable, they sell the way they buy.
We can predict ahead of schedule in the game as to how things will unfold by asking and understanding ahead of schedule how they went about buying things in the past. Other training, CRM, incentive management systems, what have you. Their answer to those questions gives us immediate insight to how the sale is likely to unfold.
Time after time it has been confirmed to us that if your sales leadership does not have a proper understanding of it’s own “buying process”, it will be reflected in decisions they make. The buying culture impacts the selling culture, and varying their culture and behavior of the team, the managers, and the VP, will require a lot of work. It forces us to change the way they buy.
Sales leaders spend a lot of time “talking” about the “sales process”, the steps needed to build a proper sale, but then undermine their message with their actions. “Results at any cost, more results at a discounted cost”.
Unless these leaders change and come to know how to “buy”, they will always have a challenge selling. Until they know the art of “buying” they will continue to make their job and that of their reps more hard than it has to be. It is the Ying Yang of sales: You sell the way you buy, and you cannot succeed at one without succeeding at the other!