Why You Should Ditch the Sales Pitch
I love a good challenge. While talking about sales training with
a sales manager from another industry, I made the statement, “Our kind of selling is different.” The sales manager, who fancies himself as an expert and comes from a consumer-based background, took offense.
He asked me to differentiate our type of sales from the
sales background he experienced.
Transactional sales
Thinking back on the several hundred books on selling
that I have read, I would characterize all but a handful as focusing on
transactional selling. Transactional
selling is focused on making a one-time sale and then moving on to the next
customer. This type of selling is often
used for commoditized products or services. Think about the last computer you
purchased. Did the company create or
provide anything that caused you to want to continue your relationship? In my mind, the salesperson's goal was to
make the sale – period.
Our kind of selling focuses on building long-term
relationships with customers. The
salesperson aims to understand the customer's needs and then provides tailored
solutions over time. Hence the commonly
used term “Solution Provider” closely mirrors our world.
Here is a table that summarizes the key differences
between transactional and relationship selling:
Feature |
Transactional Selling |
Relationship Selling |
Goal |
Make a one-time sale |
Build long-term value-producing relationships |
Products/Services |
Commoditized |
Complex, Customized, Higher cost |
Sales Cycle |
Defined Beginning and End |
Ongoing and Continuous |
Focus |
Price/Delivery Product Features |
Creating value for the customer Migrating values to meet future customer needs |
Relationship with Customer |
Short-term Ends when the customer decides on a product/service |
Long-term Continues even when the customer decides to purchase a
product from others |
Many see transactional selling as a way to generate
revenue quickly. Sales managers in this
environment are focused on numbers. The
whole approach is about creating more “at bats” for sellers. Some of the more advanced practitioners of
sales science study things methods of approach, scripts for each sales call,
and even closing techniques. Chances are
if you have ever been subjected to a sales presentation for life insurance or a
timeshare, the high-pressure closing techniques left a bad taste in your mouth.
While I know salespeople in our industry who have
attempted to put these types of closings into play, most quickly migrate to
another line of work. When regional
sales managers for some of our suppliers attempt these tactics, most good
sellers are reluctant to expose their customers to that person ever again, or
at least try to control the situation.
Our type of selling is a more sustainable strategy
because it builds relationships with customers that lead to repeat business. By understanding the customer's needs and
providing them with solutions that meet those needs, the good salespeople in
our industry create a loyal customer base that relies on their expertise
forever.
The cornerstones of success in our kind of selling
include:
·
A deep understanding of the products,
technologies, and services sold.
·
Expertise in how the products are used by
customers – Application Knowledge.
·
Ability to recognize customer issues, sometimes
before the customer realizes there is an issue.
·
The focus is on building relationships with
customers. This means knowing and
understanding the customer’s needs and challenges.
·
Provide non-product value to customers. This means helping individuals and
organizations reach their goals and be more profitable.
The cadence is different in our kind of selling.
In a transactional selling world, prospects are clearly
defined and approached as with products.
If no clear opportunities are present, the customer may go for months or
even years without meaningful contact. Our kind of selling involves regular
follow-ups covering a wide variety of topics:
·
New technologies that can easily tie to existing
systems.
·
Migration paths to new technologies.
·
Issues with equipment previously purchased.
·
Training and other service needs.
For new salespeople getting started is a daunting
challenge.
Building trust in our selling world is crucial. It's time to ditch the sales pitch. Not getting an order right away but working
towards strengthening the relationship with the customer can be more beneficial
in the long run. Books written for our
type of sales activities are developed for experienced salespeople. There is nothing for the neophyte
salesperson.
Looking back at the cornerstones for success outlined
above, new salespeople in our kind of selling need to learn thousands of
products and how customers apply those products in their process. Further, salespeople need to understand how
to approach newly assigned customers in a value-driven manner.
There needs to be a proven process for the new sellers to
begin the journey. As I thought through
these issues, I set out on a path to create a primer for a newly assigned
salesperson to systematically develop the right skills required to be
successful in our kind of selling. They need to be trained not to use the old sales pitch of the past.
After working with, coaching, and mentoring over 200 individuals in our kind of selling, I summarized what I and the young sellers learned into The New Sales Guy Project*, an effective, easy-to-read tool for our kind of selling.
Before I go, I wanted to share the words of a rookie electrical
distributor seller who recently worked through my new book:
Frank, I wanted to send a
quick message saying thanks for providing content in the electrical
distribution field. I subscribed to Electrical Wholesale, bought your book, and
listened to your podcast. Being new to the industry it’s been challenging
to find information that’s relevant or even helpful to propel a career. Your content has bridged the gap and has been
extremely helpful. I appreciate you passing
along your wisdom and knowledge.
Frank Hurtte, Founding Partner of River Heights Consulting, shares his personal experiences with 28 years of "in the trenches" training and 18 years as a
consultant. He serves as a personal coach to industry leaders across many lines of distribution. He has authored 5.5 books (one is almost done) and has written hundreds of articles for national trade magazines, including IMARK Now Electrical Magazine.
Frank is also a sought-after copywriter of marketing materials for technology companies. His charismatic, yet laid-back, easy-to-follow manner makes him a favorite among public speakers.
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