Sunday, September 18, 2011

20 Things NOT to do on a Sales Call By Geoffrey James

#1. Flirt with the admin. It may seem tempting, but unless you’ve got soap-opera-quality looks, chances are you’re only going to annoy (or even alarm) the admin, who will tell the boss. Instead: Stay polite, friendly and respectful.
#2. Talk more than you listen. Initial sales calls are all about relationship building and gathering information, which you can’t do if your mouth is moving. Instead: Get curious about the customer and ask questions.
#3. Comment on the memento. The last 372 people who came into that office remarked about the signed baseball on the desk. Ho-hum… Instead: Research the prospect and ask about the prospect’s job.
#4. Pretend to drop by. Who are you kidding? Do you think that it’s going to cushion the rejection if you pretend that it’s not a sales call? Instead: Have something important to say or sell that justifies your presence.
#5. Answer your cell phone. Ouch! Ouch! What were you thinking? How could any telephone call be more important than a real live prospect? Instead: Turn it off and leave it in your briefcase.
#6. Overstay your welcome. Your prospect has hundreds of other things that he or she could be doing, rather than spending time with you. Instead: Set a time limit for the call.
#7. Let the meeting meander. This isn’t the time for a wandering conversation that slowly gets to the point or a long series of complicated questions. Instead: Provide brief agenda of how you expect the call to proceed.
#8. Argue with the customer. If the customer doesn’t agree with an important point, arguing is only going to set that opinion in stone. Instead: ask the customer why he holds that opinion; then listen.
#9: Discuss politics or religion. Such subjects are almost always a trap into opinionated quicksand that’s hard or impossible to get out of. Instead: keep the discussion on business or neutral ground.
#10: Dive into your product pitch. Sure you’ve got something to sell, but if you pitch too soon, you’ll get pitched out the door. Instead: Ask questions to understand needs, before you pitch.
#11: Arrive late to the call. If you don’t arrive on time it tell the customer clearly that you don’t give a damn about them or their time. Instead: Always arrive 15 minutes ahead of time. If you drive to calls, get a GPS.
#12: Appear flippant or sarcastic. A good-natured laugh at a joke might be taken personally by someone watching out the window, without hearing the context. Instead: Watch your demeanor at all times.
#13: Lack requisite product knowledge. The prospect doesn’t want to hear “I need to get back to you about that”…over and over. Instead: make sure you’re trained on your current products and policies…before the call.
#14: Fail to plan the call. Sounds simple, but trying to close when should be qualifying (for example) is a lost sale. Instead: Never enter a door without first thinking about what you plan to accomplish.
#15: Be too business-like at first. Remember you’re building bridges with another human being, not just a notch in your sales gun. Instead: Smile and be friendly… but don’t get too gushy.
#16: Show up with a crowd. If you bring too many people, it will draw customer’s comments about why your costs so high Instead: Use webconferencing when you need to include additional resources.
#17: Fail to check your appearance. Don’t show up with something amiss that a quick stop in the client’s bathroom could head off. Instead: Make a quick pit stop - with a look-over - before the call.
#18: Forget the customers’ names. What could be more embarrassing than actually forgetting whom you’re talking with? Instead: Write down the names down of everyone in the room with a small table diagram.
#19: Be rude to the admin. No flirting, of course, but if you act all arrogant and superior, you’ll just antagonize the help. Instead: Be friendly and respectful of the staff - admin and otherwise.
#20: Ask personal questions. You may think that the customer is your friend, but you can easily screw up if it gets too personal. Instead: Keep the conversation focused on business issues, especially the customer’s needs.

How much do you get others to do the work?

This is probably one of the least publicized weapons of mass destruction in business model design. What could be more powerful than getting others to do the work while you earn the money?

In the bricks and mortar world IKEA gets us to assemble the furniture we buy from them. We do the work. They save money. On the web Facebook gets us to post photos, create and participate in conversations, and “like” stuff. That’s the real value of Facebook, entirely created by users, while they simply provide the platform. We do the work. They earn the sky-high valuations of their shares.

Previously mentioned Redhat crafted another smart business model based on other people’s work. Their entire business model is built on top of software developed by the open source software development community. This allowed them to substantially reduce their development costs and compete head-on with larger companies like Microsoft.

A more malicious business model in which others do the work is the one practiced by so-called patent trolls. In this model patents are purchased with the sole intention of suing successful companies to extract payments from them.