Ken Caughron

From PO’d to P.O.

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“A happy customer tells a friend, an unhappy customer tells the world!” I am not sure who said that but the statement is more accurate today than ever. With the myriad of social media outlets available on the phone in their pocket, tablet in their hand and laptop on their…well, lap, customers have never had more power to have an influence on your business than ever. The question is, will it be a positive or negative influence? How YOU react to the situation will have more impact than the angry customer.

Here are some facts and figures I came across on line:

  • After a poor customer experience over 25% of customers post complaints on social media
  • Almost 90% of the time a customer moves to a competitor it is after a poor customer experience
  • Customer experience is cumulative- it is comprised of the effort of many individuals and all of those individuals play a critical role.

I believe that an issue with a product or service or an angry and upset customer can be a blessing. You read that right. Deep relationships are made in times of trial. Think about a team you played on that worked hard together to win a championship or a time you and your spouse had to work hand and hand to get through a tough situation or the life-long bonds that are formed on the battlefield. I am not saying selling software compares to the life and death of a battlefield situation but I am saying that how you and your company respond to a customer in crisis can determine the outcome of the relationship. Will you do the right thing and step up or will you let the “sorry, it is company policy” and the “It’s not my job” attitude prevail? The customer can be angry and demanding but believe it or not YOU are the one in charge of the positive or negative outcome.

Handling an upset customer can seem tricky at the time. As my friend Micheal Burt says sometimes it is “hard to see the big picture when you are in the frame.”

Customers can and do get very emotional about these types of situations and we need understand that this reaction is normal and human. It is the salesperson’s job to tap into their own empathy and understand what the customer is experiencing. The key is to see things from your customer’s perspective. Please understand, I am not saying give in to every whim of a unreasonable customer. But I am saying that if you can keep your personal emotions in check you have a great chance of moving this customer from angry to happy and from happy to loyal. This monumental movement from P.O.’d to promoter can happen if you are prepared.

I’d like to tell you about my experience with an upset customer. I worked for the same Value Added Reseller (VAR) for all of the 2000s. I had a customer that was depending on me and my company to deliver on a complex multi-million dollar project. My portion of this project included the sale of hardware, software, consulting, design, project management and professional services. Needless to say it was highly visible in the customer’s organization and a success was a must. One piece of the hardware that we recommended came from a global manufacturer with a great longterm track record. The manufacturer had outsourced production of this hardware and in a very short time my customer’s units failed twice after thousands of dollars had been invested in implementation. The customer had a multi-year relationship with the manufacturer and asked for them to cover the cost of my team having to rebuild the hardware twice. This totaled about $10,000. Now to me $10,000 is a good sum of money but to this 11+ Billion dollar manufacturer it was nothing- yet they refused to work with the customer on the $10,000. I spoke to my CEO and we determined we would cover the $10,000 as a credit on the next services invoice from us. In essence we took this issue off the customer’s “To Do” list and put it on ours. We took ownership of this issue. This was, without a doubt, the best return on investment of $10,000 that I have ever made. The customer told me that “Your company is more of a partner than XYZ will ever be.” Who do you think they call when they have a need my company can fill? I still do business with that client today- more than 13 years later. We have built a fantastic working relationship and because we did the right thing then and continue to focus positive outcomes for them-they have continued to be one of my largest customers year after year. Now, is refunding the customer the “Go to” answer? Of course not! That is rarely the answer. But in this case it was the right answer. What you and your company do when a customer is in crisis will depend on your specific situation. I would, however, ask that you think long-term and not with short-term emotion.

5 steps to handling a customer problem

  1. Assume positive intent- In the world of business accidents happen, mistakes are made and poor decisions come with consequences. If you are in sales you have, are or will experience an angry customer. Know that most of the time the customer’s anger is not directed toward you personally. In sales you are the face of your customer and you are on the front lines to hear the news unfiltered and straight from the customer. In all the cases I have experienced, the customer was genuinely upset for what they felt was a legitimate reason and was not trying to pull one over on me.
  2. Remove your emotion- As you listen to the customer explain his frustration focus not only on the words he is using but the emotion behind the words. Try to understand not only how this impacts his company but how will this issue impact him personally. Will this outage cost him a bonus? Is he going to have to work through the night or over the weekend to get this fixed? Is he going to miss his daughter’s recital or have to delay his family vacation? These are all additional pressures he is facing and the emotion and anger may have very little to do with you and your company. Remember this, let the customer vent and listen intently but never reply to their emotion with your emotion. When we reply in an emotional state it provides us opportunity to say things in the heat of the action that we may very well regret.
  3. Avoid Excuses and Own it- Let the customer know that this is as important you as it is to them. At the time the issue happens you may not have an answer and that is OK but don’t make excuses. Most of the time your customer will understand and will be glad to give you some time to formulate a plan of action. This is the starting point where you get to step up for your customer. Make sure you clearly communicate that you own this…but be prepared to actually work to take care of the issue. Nothing is worse that telling the customer in crisis that you have his back and then you let them down. Most likely that will be the last interaction you have with that person and their organization. Remember IT in most cities is still a “Small world.” Your reputation can be impacted and if the person whom you failed moves to another company you may never have a shot with their new employer.
  4. Act on it- This may be the most critical part. Do what you say you are going to do. The majority of the time you alone will not be able to resolve the situation so gather the correct team as soon as possible. Clearly convey the issue AND the impact of the issue to the customer’s company and to the customer personally. Make sure your team understands the importance of finding an accurate solution in the shortest amount of time possible. Once you have a plan be sure to vet it out, double check for the unknowns and “Gotchas.” You don’t want to offer up a solution that doesn’t fix the issue or worse, introduce additional problems to the scenario.
  5. Debrief- Once the issue is resolved and life is back to normal for 24-48 hours schedule some time with the customer to debrief. In a debriefing session the idea is that all participants are equal and you are not looking for someone to place blame. The goal if the debrief is to understand the situation, why it happened and how to ensure it does not happen in the future. This is an opportunity to show your commitment to your customer’s success. If you want to look different from every other sales person this is one way to do it, especially if the issue was caused by your software, an employee of your company or something you sold or provided the customer.

These steps or some variation of them are the keys to accelerating a relationship with your customer. If you follow this plan when your customer has a major issue you will look different from the normal sales person. Your will have proven to your customer that you are someone that can be counted on, someone who will get in the foxhole along side them and fight through the issue to resolution and has just as much passion as them to get this fixed correctly. The bottom-line is that your customer knows that you genuinely care about their success and that you genuinely care about them personally…and what customer doesn’t want someone like that beside them in the heat of battle.

 

Ken Caughron has over 20 years of technology sales experience. He has more that 20 years sales experience if you count the “Sales Leadership Club” greeting cards he sold door to door starting at age 8. The goal of his posts are to help and encourage other sales people to strive to reach the top of the sales profession.

 

 

 

 

Live Life on Purpose- The Power of Written Goals

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As I write this the year is coming to an end. This is always a natural time to reflect on the past 12 months and plan out the next 12. Though most people will agree that it is important to plan, the majority of people in this world will spend more time planning a weeks vacation than they will planning out their yearly goals. I’ve been told that if you write your goals down that you are among the top 5% of people on the planet. I believe that to succeed at whatever you endeavor you must know what it is you want to accomplish and determine the path you must take to get there. This process is goal setting and if you do not take the time to do this on a regular basis you will most likely end up working for someone who does. Without intentionally mapping out your life you may get to the end and have no idea how you got there.

What is a goal?

A goal is defined as “The object of a person’s ambition or effort; an aim or desired result.” It is an aspiration that gets accomplished by perspiration. It is a fact that you will most likely be working the next 12 months anyway- you might as well do it on purpose.

How do you set goals?

In school we are taught that business goals need to meet the S.M.A.R.T. criteria. This is an effective tool for your personal goals also.

S- Specific-Clearly defined with no ambiguous language. Your goals need to define the who, what, when, where and why. One example is instead of “I want to get into better shape” you would have better results with “I am going to the gym 3 days a week for 45 minutes” or “I will run my first 5K this year.”

M- Measurable– You need to be able to quantify your goals and track your progress. “I am going to drink more water each day” is not easily measurable. To make it measurable you could state “I am going to drink 8 glasses of water a day” or even more specific and measurable “I am going to drink 64 ounces of water each day.”

A- Achievable- Be realistic about what you plan to achieve. Be brutally honest with yourself when evaluating your goals. If you are the person who always takes the elevator and have not exercised in 10 years it might be unrealistic to have “Climb Mount Everest” as your 12 month goal…But maybe your 5 year goal.

R- Relevant or Rewarding– Determine if the goal or outcome of the goal is something you are passionate about. Without passion there will be little drive to reach our goal.

T- Timed- Napoleon Hill once said “Goals without deadlines are dreams.” This is a true statement. Timelines help create a sense of urgency that helps to keep you on track. These dates also help you keep your promise to yourself.

What areas of your life should you set goals?

I believe there are 6 basic areas for goal setting. You can have more than these 6 areas but don’t have so many you get diluted. Focus is your friend.

  1. Financial- When is the last time you took a real look at your finances. Do you have a budget? Do you have earnings goals? Goals for paying off debt, personal savings and retirement? What can you do today to start moving toward your goals?
  2. Career- Are you working with a company that reflects your values? Is there a promotion you have been working toward? Where do you want to be in the next 12 months? The next 5 years? What can you be doing today to start moving toward your goal?
  3. Physical- Do you take time 3-4 days a week to work on your health and fitness? Are you eating right? When is the last time you had a physical from your physician? What can you do today to start moving toward your goal?
  4. Spiritual- Do you know God’s purpose for your life? Are you living out that purpose out everyday? Are you a part of something that is bigger than yourself? Do you spend some quiet time each day? Is your Spiritual tank on empty? Are you just surviving from day to day? If so, this may be a key area for you to focus.
  5. Development- “You are the same today as you’ll be in five years except for the people you meet and the books you read.” Charlie Jones. One theory is that if you read three books on a single subject you can become an expert on that subject. There is power and inspiration in learning. Evaluate where you are today and where you want to be. Identify the gaps in your personal development and take action. Do you need to finish your degree or maybe enroll in a leadership program? Learn to speak Spanish? Build that bookshelf you have always thought about. Write that book that lies within you.
  6. Relationships- From Family to work to social relationships can be a blessing or a burden. To make relationships great it takes work. Sometimes this work is not fun but it is necessary. Is there someone you need to forgive? Can you reach out to someone you might normally avoid? Be an encouragement others? Pledge to spend X amount of time with each of your children on a regular and consistent basis. Make a date night with your spouse. Turn off the TV 2 nights a week to have a family dinner. Find what is important to you and the ones you care about and make it a priority.

There is power in putting pen to paper. Writing your goals down has some real benefits:

Clarity- Writing your goals forces you to intentionally stop and define what you want out of the next 12 months or 5 years or life. Writing also makes these goals more real and tangible.

Momentum- Writing your goals down is only the start and sometimes just starting is the hardest part. Seeing your goals on paper can be exciting and help push you to execute the next step in your plan to reach your goal.

Decision Making- Knowing what you are “all about” can help you filter the various options and opportunities that come at you each day. By investing the time to thoughfully consider your goals allows you to quickly determine a yes or no. It helps you stay focused and on course to accomplish what you have determined is important.

 

Positivity- Writing your goals will help you remain positive when the criticism and resistance from others comes your way. Anyone working to change themselves or accomplish something big and different can expect to encounter opposition from folks that are insecure and small minded. Don’t let these folks hold you back.

Measure Progress- Knowing where you want to go and from where you are coming helps to create a map of milestones. Celebrate the success of reaching each milestone no matter how small. When you reach one milestone take a few minutes to reflect on just how far you have come!

As my friend Micheal Burt says “You are the co-creator of your life” and your choices determine the out come. Choose to be intentional about your life. Don’t just coast along hoping things will work out. Invest some time in yourself and the planning of your life. Determine your goals, develop a plan to reach those goals, execute on the plan and celebrate the small victories along the way. This is your life…don’t be a spectator be a participant!

 

 

 

 

Expect Objections

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Death, taxes and sales objections three things that are 100% for sure. But sales objections don’t have to be the death of your sale. As a matter of fact with the proper preparation the objections can turn into these potential negatives into positives.
First, let’s look at why prospects object:
  1. Budget– “I don’t have any money this fiscal year.”
  2. Time– “we are too busy to take on another project/solution/etc.”
  3. Ignorance– “I have everything I need. We are in good shape.”
  4. Price– “Your product costs 3 time the other guys.”
  5. Personal preference– “We always use xyz and have no desire to change.”
  6. Fear of change– Sometime folks are concerned a significant change in technology could make them obsolete or force them to grow when they are complacent.
  7. They don’t have interest– the ever popular “Can you send me some information on that?”
I am sure the are many other objections but these are the greatest hits.

 

So how do we avoid the pitfalls of objections?

Be prepared- I was a Boy Scout as a child and “Be Prepared” was our motto. It’s a good life philosophy to follow wether you are a Boy Scout or not.

  1. Take the time to write down the top 10-15 objections you consistently hear.
  2. Write out concise, well thought out, honest and valid replies to the objections. These answers need to be realistic in the customer’s eyes or you can make things worse.
  3. Ask your peers and managers to review your objections and replies. Get coaching from them and make the needed adjustments.
  4. Practice, practice, practice. You need to know these objections and replies by memory. But when stating your answers back to your customer don’t sound rehearsed. Use your own “Voice” when talking to your customer.
  5. Role play with your peers or manager. This will build your confidence when you are in the hot seat.

Are there ways to avoid thes objections all together? If you are confident that the objection will come up in a meeting you may be able to disarm it by inserting the objections and replies into your presentation.

It’s important that wet are customer objections seriously. I believe the way you handle your reply can greatly impact your chance of success. You should not come off as defensive or arrogant. You should show empathy as you work to get to the root cause of the objection. As my mother used to tell me “It’s not always what you say but how you say it that matters.”

Here is some phrases that can soften the reply to an objection.

  1. That’s one of the things I’m most excited about, we have made changes to xyz…
  2. That is a concern that my newest customer had before we walked through….
  3. That is an excellent question Mr. Customer let me tell you what we did with customer ABC…
  4. Thank you for reminding me to discuss this. We now have completed the…
  5. I agree! That can be/seems like an issue but here’s what other customers have done/found/etc…

Are objections ever a good thing? They can be. Some objections show that the customer is engaged in the conversation. Objections can give you an opportunity move the discussion into areas of deep importance for the customer. Don’t feel rushed to put the objection to bed. It may take 4 or more layers of questions and answers to get to the real pain that the customer is experiencing. But once you understand the pain you are in a much better position with your customer than your competition. Only after you get to the real pain can you help prescribe the medicine to make them better.

Please let me know what you think. Do you have prepared answers that have helped you in selling situations? Please comment and share. Thanks!

12 Attributes of Successful Sales People

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In my 20+ years of selling I have closed sales and lost sales. I have built relationships customers that have grown into decade long friendships.  I have done a lot of things right and many things I have messed up.  But over time, from watching others do it right and wrong, learning from my wins and losses and continuously honing my skills I have worked to identify what I think are the traits of successful sales people.

Let’s take a look at what helps successful sales people stand out in a world of sameness…

1.  Successful sales people set goals- I have read that the act of writing down your personal goals for the upcoming year puts you in the top 5% of people in the world.  Successful people from all walks of life set goals and create plans to reach or exceed those goals.  As sales professionals we should be creating personal goals as well as plans for overachieving our company goals. As the saying goes “What gets measured, gets managed.

2.  Successful sales people plan- Many people spend more time planning their week of vacation than they do their next 12 months of their life.  Successful people plan. They plan for the next 5 years, 12 months, quarter, month, week and day. They are prepared and they do not go through life or work flying by the seat of their pants. High performers in any area typically are planners.  As sales professionals we are no different.  We need to be comfortable with the idea of creating a plan and working the plan.  If we find our plan needs adjusting then we will regroup and make changes.  As a mentor of mine, Mike Shook once told me “A poor plan perfectly executed is better than a perfect plan poorly executed.” Make a plan and don’t expect it to be perfect.

3.  Successful sales people are brilliant in the basics-  Another lesson I learned early in my career is that you should know your solutions and be able to articulate them in an easy to understand form.  If your solution is complex you must be able to explain its value in a simple way. If you can’t do that today I would suggest that you don’t know your solution as well as you think you do. Get to know your solution(s) inside and out. Front to back. Put in the time now, it will pay major dividends for a long time.

4.  Successful sales people have clearly defined objectives for every call- They know what needs to be accomplished before they make the next call. They understand the next steps in their process and the customers’ process. If they do not have a clear vision into the customer process they ask. This will make sure expectations are set for the buyer and seller and save much time.

5.  Successful sales people are good communicators- Top performers are usually good listeners. They are active listeners that listen for the real message and not just the words. They are seekers of the truth. If they do not clearly understand what the customer is saying they ask for clarification. Trust me, customers would much rather you ask a clarifying question than for you to assume and later find out they have wasted a lot time and energy. Sales pros are also comfortable with silence. They do not rush through presentations just to get them done. They match their pace to the room. This is one key way to demonstrate confidence.

6.  Successful sales people clearly understanding before prescribing a solution- Picture yourself at the doctor’s office. You are waiting in the examination room and the doctor walks in and gives you an injection before even asking you what your symptoms are. Would you allow that? I don’t think so but this is what numerous sales people do every day. Make sure you can precisely re-state the real customer issue and get agreement from the customer before you start spouting on about your solution.

7.  Successful sales people have real empathy- They sincerely care about the other person. They want good things for their customer and are genuinely concerned about their outcome and well-being. Empathy, or lack of, comes through in our speech and actions. Customers can tell when you are fake and they typically have a low tolerance for it.

8.  Successful sales people think long-term- Short term thinking can get you into trouble. If you are overly focused on short term gain it can make you do things you never thought you would. It lends itself to a feeling of desperation and customers can smell it on you. As Coach Michael Burt says “Don’t make a short term decision that has long term consequences.”

9.  Successful sales people work from the customers’ perspective- Top sales pros believe in their heart that they can solve a problem, present a solution and make a situation better than the way they found it.  These skills should put them on par with their clients.  They sincerely think of themselves as a problem solver that is not afraid to challenge the customer.  True sales professionals are worthy of  respect equal to that of their customers

10.  Successful sales people are prepared for objections- Let’s be realistic. Your product or solution is not going to fit every prospect. However, you will encounter objections or questions regarding how or why your product is the best selection. Be prepared. Work on well-crafted HONEST responses to the top 5-10 objections you have or expect to hear. This will give you and your customer confidence in your answer. This is not so you can pull the wool over someone’s eyes. This is to allow you to be professional and confident in your honest reply.

11.  Successful sales people are not afraid to talk about money- This can be a scary topic for a salesperson who lacks experience in these conversations. As long as your price is fair for the solution you are offering you should not have any qualms discussing money when the time is right. The customer has a problem. Your solution is there to fix the problem and you are making the customer’s company and life better. Companies expect to pay for something of value. Don’t be afraid.

12.  Successful sales people always clarify the next steps- Just as you should go into each meeting with clear objectives you should leave understanding what happens next. Each encounter is about moving the ball down field. It is a best practice to recap the actions due from each party and to attach a timeline to those actions. Be very transparent on the expectations and get agreement from your client. However, you must be prepared to complete your tasks and assignments on time. Being late on your next steps sends the wrong message that other things are more important.

Finally, we don’t define successful sales people by their commission.  We define them by repeat customers, integrity, the ability to have the hard conversations with your customer because you really do have their best interest at heart.  If you do these things you will be a successful sales person and the commissions will follow.