Jeffrey Gitomer

Old way or new way? Only one way works. My way.

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The old way of selling is dead.

The only people who don’t know that are other sales trainers, recently released old-world sales tactics books that are still trying to convey old messages, and several million salespeople still trying to cold call, pitch the product, overcome objections, and close the sale. Don’t forget their managers who force them to use an uncomfortable ‘system,’ a non-sales helpful CRM, and hold their salespeople accountable for their actions and numbers. It’s over. Dead and over.

What killed it?
Who killed it?

The internet and its immediate access to any information – including one’s reputation – the economy, Google and online searchability in general, social media, smart phones, one-click buying, Amazon feedback and other ratings sites, and smarter customers and consumers both B2B and B2C. WOW!

The online and smartphone evolution has become a sales and selling revolution.

The NEW big picture of selling is quite simple. Here’s what to train and teach your salespeople:

  • Teach why people buy rather than how to sell. My mantra and trademarked phrase is, People don’t like to be sold, but they LOVE to buy.
  • Teach customer loyalty, not customer satisfaction. Customers may never be satisfied but will continue to do business with you based on your perceived value.
  • Teach salespeople to ‘ask’ questions about the customer rather than ‘tell’ about their product. The old way of selling doesn’t work anymore. And no one is more aware of that than an informed customer.
  • Teach salespeople to be responsible for their actions instead of being accountable for their activity.

Here are 4.5 NEW ways of thinking, acting and selling responsibly:

1. FIND THEIR WHY. Uncover your customer’s intentions and motives for purchase before or during your sales presentation. Do online searches for why they might buy, and ask emotionally revealing questions. Their ‘why’ is your order.

2. TALK ABOUT THEIR OUTCOME. Share with him or her how they produce more and profit more AFTER purchase. Explain what happens after they take ownership Talk about how they win, not a bunch of boring crap about you that the customer could have found in less than two seconds on Google.

3. PROVE YOUR VALUE. Get several of your existing (best) customers to do video testimonials to corroborate your claims. When you say it about yourself it’s bragging, when others say it about you it is proof. Voice of customer is the proof you need to convert selling to buying.

4. DEVELOP AND MAINTAIN A PRISTINE REPUTATION. Not just your company and your products – you personally. Information and reputation arrives before you do. Google yourself right now. That’s what your customer sees before you arrive.

4.5 BEWARE AND BE AWARE OF THE INTERNET. It has changed and continues to change the face of selling, and the lives (not to mention the incomes) of salespeople. EXAMPLES: Retail sales, banking, trading stocks, buying cars, traveling, and, most important, the ability to research the opinions and outcomes of others. Get internet savvy. Get internet fluent. Then stay there.

A few months ago I wrote about the difference between aggressive selling and assertive selling. That difference is pivotal in the company’s philosophy of selling, salesperson’s method of selling, and the customer’s decision to buy your product or service.

Here is the CliffsNotes™ version of the difference:

  • Aggressive salespeople ‘tell.’
  • Assertive salespeople ‘ask.’
  • Aggressive salespeople ‘go for the sale.’
  • Assertive salespeople ‘go for the customer.’

Aggressive salespeople sell the old way. They talk, they brag, they give a demo, they manipulate to close the sale, they send proposals, and in general they fight. They fight to get an appointment, they fight price, they fight competition, and they fight for the sale – a sale that even if they win they have lost profit.

The assertive presentation challenges you, the salesperson, to bring forth a combination of your knowledge and value as it relates to customer needs as well as a superior ability to connect both verbally and nonverbally with the person or the group you’re addressing.

You’ll know your assertive strategy is working when the customer or the prospective customer begins asking questions to get a deeper understanding about the value and difference your product or service offers. This changes monologue to dialogue and creates the power of engagement, or should I say assertive engagement.

A FEW MORE WORDS OF CAUTION: The new way of selling requires more work on the part of the salesperson. More research, more preparation, more knowledge, better presentation skills, more value differentiation, and more proof.

This accentuates my rule of, ‘the more the more.’ The more research, preparation, knowledge, enthusiastic presentation skills, value differentiation, and proof you bring to the sales presentation, the more sales you will make.

Which type of salesperson are you?

Reprinted with permission from Jeffrey H. Gitomer and Buy Gitomer.

About the Author

Jeffrey GitomerJeffrey Gitomer is the author of The Sales Bible, Customer Satisfaction is Worthless Customer Loyalty is Priceless, The Little Red Book of Selling, The Little Red Book of Sales Answers, The Little Black Book of Connections, The Little Gold Book of YES! Attitude, The Little Green Book of Getting Your Way, The Little Platinum Book of Cha-Ching, The Little Teal Book of Trust, The Little Book of Leadership, and Social BOOM! His website, www.gitomer.com, will lead you to more information about training and seminars, or email him personally at salesman@gitomer.com.

StrategyDriven Expert Contributor Hank Moore

The Big Picture of Business – Community Relations and Cause Related Marketing Are Business Strategies, Not Sales Promotions: Determining the Right Kind of Tie-In Causes.

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Business marries the community that it settles with. The community has to be given a reason to care for the business. Business owes its well-being and livelihood to its communities.

I recently stopped for lunch at a franchise restaurant. Nobody was at the register. A crew member told me to wait, then later took my order. She started selling donations to some cause, which I declined. When the regular cashier returned, I saw her peddling donation sales. People were blindly making donations, without understanding what they supported. The sales of those promotional pieces caused the line to grow out of the restaurant door. People were just buying the promotion in order to get through the line.

I support cause related marketing and have advised many corporations on setting up such programs. However, peddling sales to some ‘foundation’ that is named after your product and which supports only one cause is not appropriate. The store was littered with stickers. The process of selling the stickers made the waiting line longer. As a result, the iced tea had run out, and nobody checked it.

I went to their website, where franchise chains allege they want customer comments. I stated, “Having a foundation to support the community across the board is great. Who is to say that a sales promotion tied directly to your products is right? I say it is not, and I’m an expert on cause-related marketing. You people need to revise your service lines. Peddling the sales of stickers in a tackily littered store is inappropriate. I’m gravely concerned about this practice of badgering customers in support of some phantom charity; how this store does it is not right.”

The franchise owner later called. He talked all over me in a defensive manner. His voice was high-pressure, probably the result of sales training classes. Rather than addressing my concerns, he rifled over them and questioned my ability to assess community relations. I asked if he had ever heard of Thousand Points of Light. He said no. I explained what it was and that I was an adviser to the President of the United States in fostering the program. Still, he questioned my interest in community relations.

“We’re a franchise,” he admitted. “This was dictated to us by corporate. I’m sorry that you feel that way because we do so much good. You’re invited to attend when we present the donation.” I replied, “No, I’m not going to be a prop in your photo opportunity, for you to sell product.” I reminded him that it was customer donations that enabled the attention, not a corporate initiative for which they were taking the credit.

He was not listening. He was simply rationalizing a corporate marketing initiative. So too was the corporate person who later called to argue with me for daring to state my opinions. Sadly, people like that don’t care or even get that re-thinking their strategy is an option.

There are many wonderful ways where companies support the community:

  • Give percentages of sales to approved charities.
  • Offer certificates for product when people make legitimate donations.
  • Coupon book activities with schools.
  • Allow non-profit groups to present on their premises.
  • Advocate community causes in their advertising.
  • Sponsor noteworthy community events.
  • Recognize that executive time spent in the community is good for business.

No company can cure community problems by itself. Each company has a business stake for doing its part. To prioritize which spheres or causes to serve, business should list and examine all of the community’s problems. Relate business responses to real and perceived wants/needs of the community. Set priorities. There can never be a restraint upon creativity.

My advice to companies as they create charity tie-in, cause-related marketing and community relations activities includes:

  • Don’t say that you want customer input unless you are prepared to hear it.
  • Franchisers should not sell sure-fire promotions to build sales as part of the worth of the franchise.
  • Community support is not a one-cause (vested interest) matter.
  • If you seek customer comment, do not talk over the customer.
  • Do not keep rationalizing flawed strategies to your customers.
  • Realize that customers’ opinions matter and that they have more buying choices than just your store.
  • If you purport to have a foundation, it cannot or should not be named directly for your product.
  • Do not run your “foundation” out of a corporate marketing department.

Every community relations program has five steps:

  1. Learn what each community thinks about the company and, therefore, what information needs to be communicated to each public. Conduct focus groups. Maintain community files. Organize an ongoing feedback system.
  2. Plan how to best reach each public… which avenues will be the most expedient. Professional strategic planning counsel performs an independent audit and guides the company through the process. Get as many ideas from qualified sources as possible.
  3. Develop systems to execute the program, communicating at every step to publics. All employees should have access to the plan, with a mechanism that allows them to contribute. If others understand what the company is doing, they will be part of it.
  4. Evaluate how well each program and its messages were received. Continue fact-finding efforts, which will yield more good ideas for future projects. Document the findings. When planning, reach for feasible evaluation yardsticks.
  5. Interpret the results to management in terms that are easy to understand and support. Provide management with information that justifies their confidence.

Companies should support off-duty involvement of employees in pro-bono capacities but not take unfair credit. Volunteers are essential to community relations. Companies must show tangible evidence of supporting the community. Create a formal volunteer guild, and allow employees the latitude and creativity to contribute to the common good. Celebrate and reward their efforts.

Community relations is action-oriented and should include one or more of these forms:

  1. Creating something necessary that did not exist before.
  2. Eliminating something that poses a problem.
  3. Developing the means for self-determination.
  4. Including citizens who are in need.
  5. Sharing professional and technical expertise.
  6. Tutoring, counseling and training.
  7. Promotion of the community to outside constituencies.
  8. Moving others toward action.

Publicity and promotions should support community relations and not be the substitute or smokescreen for the process. Recognition is as desirable for the community as for the business. Good news shows progress and encourages others to participate.

The well-rounded community relations program embodies all elements: accessibility of company officials to citizens, participation by the company in business and civic activities, public service promotions, special events, plant communications materials and open houses, grassroots constituency building and good citizenry.

Never stop evaluating. Facts, values, circumstances and community composition are forever changing. The same community relations posture will not last forever. Use research and follow-up techniques to reassess the position, assure continuity and move in a forward motion.

No business can operate without affecting or being affected by its communities. Business must behave like a guest in its communities… never failing to show or return courtesies. Community acceptance for one project does not mean than the job of community relations has completed. Community relations is not ‘insurance’ that can be bought overnight. It is tied to the bottom line and must be treated accordingly…with resources and expertise to do it effectively. It is a bond of trust that, if violated, will haunt the business. If steadily built, the trust can be exponentially parlayed into successful long-term business relationships.

About the Author

Hank MoorePower Stars to Light the Business Flame, by Hank Moore, encompasses a full-scope business perspective, invaluable for the corporate and small business markets. It is a compendium book, containing quotes and extrapolations into business culture, arranged in 76 business categories.

Hank’s latest book functions as a ‘PDR of business,’ a view of Big Picture strategies, methodologies and recommendations. This is a creative way of re-treading old knowledge to enable executives to master change rather than feel as they’re victims of it.

Power Stars to Light the Business Flame is now out in all three e-book formats: iTunes, Kindle, and Nook.

5 Pitfalls of Marketing Waterfalls

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As data-driven marketers are taking full advantage of collecting, organizing, and analyzing demand management, many are adopting the classic marketing waterfall model from leading experts such as Sirius Decisions. I am first to applaud marketers who essentially created a grassroots adoption effort to create a quasi-standard for taxonomy, nomenclature, definitions, and a weighted value across the marketing waterfall. However, like any non-universally accepted standard, there are gaps within the principle of the model itself, and even more flaws in the marketing actions taken based on the waterfall reporting structure.

Here are 5 pitfalls to watch out for when using a marketing waterfall reporting model that influence how you make decisions, execute campaigns, and ultimately spend money.
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  1. ‘One size fits all’ marketing waterfalls are too rigid. The underpinning principle of a waterfall is that there is a natural cascade from top to bottom, supported with processes to move from one stage to the next. The waterfall methodology was a classic approach used for software development. After thousands of applications, it was clear that the waterfall rigidity become less efficient and effective versus a more nimble approach. From a marketing perspective, the consumer’s behavior doesn’t necessarily work in a natural progression to close as one could bounce around at any point in the process, and even regress back up the funnel at any point.
  2. One marketing waterfall view has become a catchall. Most of the companies use only one waterfall funnel to represent company-wide inbound/outbound demand-based campaigns. The issue here is that one singular report doesn’t get granular enough to make the next action more meaningful. Yes, having a roll-up is interesting, but isn’t the ultimate goal to know how to accelerate the ‘lead’ from cold to close? And that ‘lead’ ultimately represents a unit of 1, not thousands equal in dollar value to 1.
  3. The marketing waterfall only tracks 1/4 of all potential revenue objectives. The marketing waterfall leans heavily on the customer acquisition objective. This is fine, but there arguably 3 others marketing objectives being ignored: Retention, Upsell and Cross-sell. (Note: I fully recognize CPG companies do not fit this business model, but there are trillions of dollars represented in many other categories that do). This leads me to also wonder why so many marketers use the buyer’s journey from “awareness to close”, which also misses retention, upsell and cross-sell revenue routes.
  4. A marketing waterfall “lead” is a faceless customer. The ‘lead’ is rightfully labeled as MQL, or SALs which helps a marketing operations person understand the definition for each defined stage, but it doesn’t help a practitioner understand if the customer segments being targeted are over indexing or under indexing, based on their investment and executional plan. Without this connection, even more analysis is required which can slow down efforts to keep the next dollar spent to keep up with the consumer.
  5. There is no benchmarking in marketing waterfalls. If in the sea of trying to capture customers versus all others in your marketplace, it would be far more rewarding to know if your volume and value of leads are better than your competitive peer set. Without knowing, it is hard to adjust, in real time, what the areas are that can be improved. Of course, it can all be added up at the end doing a market share analysis, but marketing is the fuel that drives the lion share of demand. Given the cost of “marketing fuel”, it sure would be nice to know when to press the accelerator or take another path to reach the destination. Take note that 72% of B2B marketers have no or very little processes for lead funnel optimization, according to the 2012 Marketing Sherpa B2B Benchmark Study. In 2013, the Marketing Sherpa B2B Analytics Study revealed that 63% do nothing or occasionally leverage data to gain any insight.

For those mature waterfall users, I’m sure they have faced the reality of the extra due diligence required to add much more analytics to make the next smartest decision. For those that are dabbling in the waterfall, be cautious on how to interpret the value of each individual ‘lead’ within the context of your campaign plans. And lastly, for those that are exploring alternative options, I would recommend using agile models supported with more customer behavior analytics to spot clusters, trends, and buying intent.[/wcm_restrict][wcm_nonmember]

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About the Author

Jeff WinsperJeff Winsper is President of Winsper, an independent business and marketing consulting firm that helps marketing organizations to evolve into operating like a business. Jeff has been dedicated to the advertising and marketing community for over twenty years. With a breadth of strategic marketing and business expertise, he has helped a variety of companies throughout their life cycle, ranging from start-ups to the Fortune 500. To read Jeff’s complete biography, click here.

StrategyDriven Advisors Corner Article

The Advisor’s Corner – Is there a right way to FIRE an employee?

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Is there a right way to FIRE an employee?Question:

Is there a right way to FIRE an employee?

StrategyDriven Response: (by Roxi Hewertson, StrategyDriven Principal Contributor)

Unfortunately, on average, we still have a 50 percent or more failure rate in hiring. This means we are as likely as not going to find ourselves in this unpleasant situation.

Aside from legal, union, or other contractual considerations that you must take into account, there are 5 KEY ACTIONS that will help keep you out of a heap of trouble:

  • Be Truthful – Employees should know exactly why they are being released from their job. Tell the truth. Most good employers have due process procedures and policies that need to be honored and communicated. Don’t leave the person to make assumptions, create more resentment than is necessary, or increase the odds of creating bad will. Remember, poor performance is poor performance, gross misconduct is gross misconduct, and a layoff is a layoff. So what is it and why?
  • Be Fair – This is a baseline rule. Fairness is a fundamental human expectation, at least in this country. It’s also a major factor in how the employee and others on your team feel when he or she exits the organization. Was the employee treated fairly? If you did everything you should have done to help this person be successful, and they didn’t cut it, then sleep easy. If you have been compassionate in your layoff package, then sleep easy. If not, then you have more work to do before you go to sleep.
  • Be Clear – Whenever possible, employees should have had a discussion with you in which they either hear 1) their job is on the line due to performance and exactly why, or 2) if it’s downsizing, be clear about that. If the termination is due to gross misconduct like stealing, tell it like it is. Get to the point, then stand up, offer your hand, wish them well, and walk them to the door. If the employee becomes despondent and is crying or is in a difficult emotional state, give them time to get themselves together; don’t fill this time with conversation about the decision. Just be kind, be human.
  • Be Respectful – Being fair is essential, as we’ve already noted. You can be fair and not be respectful. Being respectful is not only the right thing to do; it is the smart thing to do. Regardless of the circumstances leading to the termination, be professional and courteous. This is not a time to say that you told them so, or how much better things will be without them. Nor is it the time to make yourself feel better about your decision by belittling them or minimizing their contributions. Have your meeting at a time during which the employee will have little or no exposure to their colleagues and avoid having them led out of the building during business hours. Being terminated is a terrible experience, even when it is fair, done respectfully, and deserved. Always take the high road.
  • Be Smart – There are emotional aspects of the termination discussion and there are other factors to consider. Might this employee become volatile? Do you need security precautions? Should HR be present in the room? Do you have your exit checklist – e.g. keys, access, passwords, equipment, credit cards, etcetera? Your organization needs a solid termination process to follow to keep everyone out of legal and any other kind of trouble.

At the end of the day, it’s the emotions that wear you down. You should not fire someone on your own. Enlist HR, a lawyer, or other team members to help you stay clear and focused. It is important to feel what you feel and acknowledge those feelings. We’re all human. It is just as important to make sure you do not let your feelings about one person or the anticipated pain of the firing conversation get in the way of doing what is right for everyone else.

About the Author

Leadership authority Roxana (Roxi) Hewertson is a no-nonsense business veteran revered for her nuts-and-bolts, tell-it-like-it-is approach and practical, out-of-the-box insights that help both emerging and expert managers, executives and owners boost quantifiable job performance in various mission critical facets of business. Through AskRoxi.com, Roxi — “the Dear Abby of Leadership” — imparts invaluable free advice to managers and leaders at all levels, from the bullpen to the boardroom, to help them solve problems, become more effective and realize a higher measure of business and career success.

The StrategyDriven website was created to provide members of our community with insights to the actions that help create the shared vision, focus, and commitment needed to improve organizational alignment and accountability for the achievement of superior results. We look forward to answering your strategic planning and tactical business execution questions. Please email your questions to TheAdvisorsCorner@StrategyDriven.com.

StrategyDriven Decision Making Warning Flag Article

Decision-Making Warning Flag 3 – Intellectually Empty Assertions

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StrategyDriven Decision Making Warning Flag | Intellectually Empty AssertionIntellectually empty assertions represent logical laziness or deceit on the part of the individual(s) drawing these conclusions. Those making intellectually empty assertions do so without supporting facts, in contradiction of factual evidence, by incongruently combining two or more facts, through misapplication of real-world experiences or events, and/or commission of a logic error. (See StrategyDriven Decision-Making warning flag article, Logic Fallacies Introduction.) Such assertions are not presented as opinion, but are instead forcefully put forth as representing either unchallengeable facts or as the only logical conclusion one could draw from the complete set of facts. There is nothing logical about intellectually empty assertions. Rather, these assertions tend to be made by individuals based on their personal biases, goals, or opinions and may drive disastrous outcomes if acted upon.[wcm_restrict plans=”49486, 25542, 25653″]

Intellectually empty assertions are particularly dangerous when used to make decisions or to influence the decision-making of others. Conclusions drawn from intellectually empty assertions tend to be irrational and emotional if not outright wrong. Consequently, severe adverse outcomes can result from this intellectual laziness or deceit.

Why Intellectually Empty Assertions Are Accepted

Individuals are influenced by intellectually empty assertions for a number of seemingly plausible reasons. Below are a few common mechanisms that induce individuals to accept intellectually empty assertions:

Reputation Boosters: Individuals succeed at influencing others with intellectual empty assertions through the use of one or more of the following reputation boosters promoting their unsupported point of view:

  • Personal stature and/or charisma
  • Position and/or title
  • Academic credentials, whether actually earned or honorary
  • Direct and indirect association with others possessing some degree of the aforementioned reputation markers

Intellectual Laziness: Individuals who themselves are intellectually lazy or deceitful tend to accept the assertions of others possessing one or more of the aforementioned reputation boosters without themselves validating the underlying support for the assertions and forming their own rational, well-founded conclusions.

Need Fulfillment: Individuals having a strong emotional, financial, or other need fulfilled by the intellectually empty assertion may accept the assertion in order to satisfy their need.

Warning Flags Associated with Intellectually Empty Assertions

Intellectually empty assertions undermine sound decision-making. As leaders, it is our responsibility to ensure inputs to and conclusions from the decision-making process are logically constructed from verifiable facts, relevant experience, and sound judgment. While not all inclusive, the four lists below, Process-Based Warning Flags, Process Execution Warning Flags – Behaviors, Potential, Observable Results, and Potential Causes, are designed to help organization leaders recognize and avoid intellectually lazy or deceitful decision-making. Only after a problem is recognized and its causes identified can the needed action be taken to move the organization toward improved performance.

Process-Based Warning Flags

  • Data gathering guidelines do not ensure the reputation and credibility data sources (see StrategyDriven Decision-Making best practice article, Diverse, Redundant Data Sources)
  • Inputs to the decision-making process are not required to be qualified, verified, and validated (see StrategyDriven Human Performance Management best practice article, Qualify, Verify, and Validate)
  • Underlying decision facts and/or assumptions are not documented
  • Decision-making process does not require the application of the Devil’s Advocate (see StrategyDriven Strategic Analysis best practice article, advocatus diaboli, The Devil’s Advocate)
  • Decision-making process does not provide for those resources necessary to reasonably alleviate time pressure (see StrategyDriven Decision-Making best practice article, Identify the Decision Timeframe)
  • Decision-making process does not adequately identify and recues those potentially having a conflict of interest with the decision to be made

Process Execution Warning Flags – Behaviors

  • Decision-makers overly rely on ‘gut instinct’ and ‘feel’ to make decisions
  • Underlying decision facts and/or assumptions are not presented or demanded
  • Validity of underlying decision facts and/or assumptions are based on reputation boosters rather than on the merit of the facts/assumptions themselves
  • Decision-makers and contributors judge information based on its source rather than its validity
  • Decision-makers and contributors argue that they do not have the time to further validate underlying decision facts and/or assumptions
  • Decision-makers and contributors overtly align underlying facts, assumptions, and conclusions with the perceived needs of the organization and/or members of the decision-making team
  • Information supporting a foregone or desired conclusion is not challenged
  • Information refuting a foregone or desired conclusion is not considered and/or its validity discounted

Potential, Observable Results

  • Outcomes achieved are contrary to those expected, typically failing to yield few if any of the desired results
  • Outcomes favor those making and possibly those accepting the intellectually empty assertions over others subjected to the decision’s impacts
  • Decision-makers blame other people and circumstances for the failure of their decisions to yield the predicted outcomes

Potential Causes

  • Individuals making and/or accepting the intellectually empty assertions seek to further a personal bias, goal, and/or agenda
  • Individuals making and/or accepting the intellectually empty assertions feel time pressure to reach a conclusion
  • Individuals making and/or accepting the intellectually empty assertions lack the training necessary to recognize this decision-making shortfall
  • Individuals accepting the intellectually empty assertions feel superior, peer, and/or subordinate pressure to do so

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About the Author

Nathan Ives, StrategyDriven Principal is a StrategyDriven Principal and Host of the StrategyDriven Podcast. For over twenty years, he has served as trusted advisor to executives and managers at dozens of Fortune 500 and smaller companies in the areas of management effectiveness, organizational development, and process improvement. To read Nathan’s complete biography, click here.