Competitive Excellence - "Superior Sales Results" with Stu Schlackman

Help Your Clients Recognize Their Need

According to life insurance industry studies, 36% of clients don’t recognize they have a need. You may wonder how that is possible. Several years ago I made a sales call on a prospect that was losing $10,000 a month in revenue due to a problem with their invoicing system. We presented a solution that would not only stop the loss, but would actually increase monthly revenues by getting payments in a timelier manner. So what did the prospect do? Nothing! Why would they choose not to invest in a solution that would both solve their problem, and improve their revenue? Did they not believe we were telling the truth? Did they have other priorities? I don’t think so. Yet, when prospects are facing a problem and they have the opportunity to resolve it, why don’t they take action? I believe there are 3 reasons why a prospect will not take action.

1. The pain is tolerable. Yes the pain might be tolerable, but it’s your job to show them what the long term impact can be. If you were 50 pounds overweight and your doctor tells you have to lose weight, why don’t you? Because you’re not currently in pain. It’s the chest pains that come later that cause you to take immediate action. As sales professionals you need to show the prospect tangible and predictable evidence of not taking action. You need to take them into the future, engaging their imagination. Take them to the emotional side of their brain where action is taken. People don’t buy on logic, they buy on emotion! When people buy life insurance they are buying it to protect their family from future disaster so you must take them to that expected future. Focusing on the current situation doesn’t provide them with a good reason to invest because there is no immediate need.

2. Ask don’t tell. Prospects like to talk so give them that opportunity by asking questions that gets them talking about what is important to them. You retain 70% of what you say, but only 20% of what you hear. If you are in a pure presentation mode, you lose 2/3 of the impact because they aren’t talking. When the prospect is speaking, you’re learning vital information that helps you both build trust and lead the conversation to its’ intended conclusion - a sale. When we ask questions that heighten the problem or situation that the prospect is in, they will hear in their own words why it’s necessary to take action. Naturally they are more emotionally connected to their own fears and concerns than the various issues that you might introduce.

3. Priorities. One of the best open-ended questions you can ask is “where is this problem/solution on your list of priorities?” Their response will give you clues about the timing and budget for a decision favoring your solution. If it’s truly a priority for them, they will be much more motivated to take action. If they seem to hesitate, ask them why; is there a concern that you haven’t addressed; did you misunderstand the need? You’ll need to understand that concern before you can truly understand their priorities.

Your job as a sales professional is to help your prospects understand their need and to feel the pain that can result from avoiding a solution. In order to help them own their need, you’ll need to:

- Engage your prospects in the future - the pain may be tolerable now, but what about later?
- Ask questions instead of spewing your pitch - listen carefully for clues to their most vital needs
- Help them to understand their priorities - the closer you are to their biggest need, the more likely they are to buy

Taking these steps helps you to understand your clients’ needs which then helps them to comprehend the risks and rewards of action.

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3 Tips for Finding New Clients

It was back many years ago and my first day on the job in my new sales career. Nervous? Absolutely! I was driving up to the Knoxville office of the old Digital Equipment Corporation where I spent 15 years of my career. I had just completed the Internal Sales Development Program and was excited to see what it was like to sell computers to people I have never met.

My first assignment was to prospect. So I asked my sales manager, “what do I do?” He smiles, sits me down at one of the many cubicles in the office and says, “start smiling and dialing”. But what number would I dial? He then hands me the yellow pages, asks me to turn to the letter “C” and look under computers. Then what? Well Stu, start calling the companies and see if they would be interested in carrying our computer line as a reseller - finding resellers was my first assignment. 1st call-hi my name is Stu Schlackman with Digital Equipment Corporation and I wanted to see if you would be interested in carrying our line of computers? Digital who-says the prospect? Click! Next call-same opening-no thanks we carry IBM. Next call was a company by the name of Four Phase Computer Systems- hello my name is….. Response? Son, do you realize we compete against Digital? No sir, but thank you that’s good to know. How embarrassing and yes that’s what many of us in sales are afraid of, embarrassment, rejection and the final outcome-futility!

According to recent research, “Finding New Clients” is the 2nd biggest challenge life insurance agents face. This is also true of many other industries. Why? Is it because of the rate of change? That’s part of it. Less demand and more supply, yes again. Many already are doing business with one of your competitors. It can also be a lack of focus in your marketing efforts. Let’s explore 3 ways to target new clients.

1. First, you have to know what your target market looks like. What is your company known for and what does the ideal prospect look like? Where have you had the best success where the client saw the value and the sales cycle was minimal? If you’ve had repeat business in this market, most likely this would be a good target market to pursue. Define the characteristics of your market and use your existing clients as references and to ask for referrals. This turns a cold call into a warm call. If you have happy clients they are normally willing to help open a few doors with their network of business colleagues. It’s much easier to focus on a target than to have a shot gun approach where you can’t send the same consistent message.

2. Second, you have to offer a compelling reason to meet. What would the client/prospect gain from meeting with you? Can you communicate that message? Again, one of the best approaches is to let them know how you’ve helped other clients, which demonstrates the value you deliver. Can you articulate your value in a brief amount of time? That’s what they need to hear in the first 20 seconds.

3. Third, you have to overcome their objection to meet. As my good friend and Cold Calling 101 expert Barry Caponi would say, prospects will lie to get you off the phone. The best way to handle their objection is to ask them a question that will reveal an issue they are having. It’s the perfect time to say, “Stu that’s exactly why I think it would be worth our time to meet”.
If you want to find new clients - and who doesn’t, you need to do 3 things:

- Intimately understand your target market
- Articulate the benefits that you provide
- Overcome meeting rejection with a well-crafted question

Using and mastering these techniques will fill your pipeline with new prospects and clients.

Good Selling!

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3 Reasons Clients Procrastinate

According to a recent study on issues facing the life insurance industry, 56% of the agents said that their biggest sales problem is client procrastination. And, as you might imagine, this problem is not unique to the insurance industry. Every sales professional feels frustrated when they’re put on hold even after receiving all the buying signals, including agreement with your solutions, price and service. Whether it’s insurance, financing, information technology or investing in equipment, sales people want a reason. Is the client being honest? Are there other issues we don’t know about? Is it our competition? Or did we just not create enough value in their mind.

Let’s explore 3 reasons your client might procrastinate.

1- Value perception.
The client did not perceive enough value. And, without value, there will be no investment. You must demonstrate the REAL benefits of your solution? Will it make money, save money, provide peace of mind for their family or will it improve their competitive position. The formula to use is Value = Benefit/Cost. Without value the only thing that is evident to the client is the cost, which usually does not play in your favor. Convey the value in their terms not yours. Recognized value will usually help to prevent procrastination.

2- Client needs.
Value is built when you understand your client’s needs. Strategic and well thought out questions are the keys to success. If you want better understanding of the client’s situation, ask better questions. Here’s the problem many sales professionals face- you ask questions to satisfy your own need to move the sale along without truly uncovering their needs. You ask questions to qualify them instead of asking the deeper questions that help to build a trusting relationship. Statistics show that clients only give 20% of the information they have. To gain access to the other 80% you have to build trust. As the expert, you’re expected to act as the consultant providing and recommending the best direction. When they turn the tables and start asking you questions about your solution, you know you’re on the right track. If they start stalling, you know you still have more value to provide.

3- Dead air.
The last point is the toughest. You don’t know why the client is not getting back to you. You conveyed value, you asked all the right questions to gain their interest, and they say that they are ready to act yet they fall off the face of the earth. Is it just me or does this seem to happen more often than ever before? First, you’re excited and then you’re let down. You don’t know what happened. Did they find another solution? Did their priorities change? All you can think about is how you can get them to return your call? It can be tough - your clients and prospects are being bombarded with so much information that it is often very difficult to cut through the clutter. Be creative; leave a voicemail that reminds them of THEIR need that you solve. You might also send a follow up email reviewing the needs that they shared and why THEY said you were a good solution for them. Tell them you’re happy to address any new concerns that may have come up. If their silence continues, yet you still believe they’re a sound prospect, go back into the ‘add value’ stage of the relationship and see what happens.
Procrastination by your clients and prospects is frustrating, but the situation usually leaves clues. Review the process and reconsider the following:

1. Did the client recognize the value that you offered?
2. Did you uncover their most important needs?
3. How can you overcome their silence by adding more value?

If your prospecting and qualifying processes were sound, be patient and remember that you have a good solution, which in time they will remember.

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