Introducing the Huthwaite Center for Research!

We are so happy that you found us, continue to follow us, and want to stay updated with all of Huthwaite's "happenings."

We have decided to focus our efforts on our new Center for Research, and will be posting blog updates on it's homepage, along with tips on how to deal with the new buyers out there today.
  

The Huthwaite Center for Research website and blog can be found here: http://huthwaiteresearch.com/

Full details and Press Release can be found here: http://www.huthwaite.com/content/announcing-huthwaite-center-research 

Our blog might have changed, but our mission stays the same. Focus on the Buyer.

The One Sales Trend That Demands Attention

As we kick off 2012 with a heightened sense of optimism after the past few years, we all hypothesize what the new year will bring to our organizations, our people and our clients. And typical of this time of year there are no shortages of prognosticators who are allegedly spotting the trends that are going to take the sales and business world by storm. Having read many of these predictions and having had a chance to cross reference them against what we are seeing at Huthwaite as we look into 2012, there is one trend that we feel strongly all sales organizations would be foolish to ignore.

The traditional discovery or investigating skills that have been the bedfellow of top-performing sales people for the last twenty years are being totally redefined. That redefinition is being performed by your clients, with or without you.

The previous approach to sales quota-busting was centered on your ability to effectively diagnose the customer’s known pain, uncover their needs, and based on that discovery to then craft a targeted solution that addresses the needs as the customer articulated them to you. Sounds right, doesn’t? I mean, that’s the practice of the star performers, isn’t it? They have mastered the art of asking good questions.

Maybe...

Your customers have changed their purchasing behavior to make that approach a little antiquated. Customers have put in place strong buying systems, they are taking advantage of the availability of information on the web and social media, they’ve employed consultants, and their purchasing is more strategic, commercial-driven, transparent and professional than ever before. That means that by the time your sales rep gets to talk with a customer, the customer may have already moved far around the buying cycle on their own. A recent SLR report stated “on average, 57% of a purchase decision is complete before a customer contacts a supplier”. By this time a customer is quite clear as to what their needs are, what options are available to them to meet those needs, and what price they can meet those needs for. So a traditional discussion where a sales rep asks the customer about their needs (as understood by the customer) is of very low value. The customer already knows their needs and the unfortunate rep is forced to play the role of solution describer and price discounter. New customer buying behavior is driving traditional sales reps to a world where they are responding to demand, not creating demand. They are finding customers who are already in the market vs. making customers out of those who are yet to look for a solution.

Herein lies the key to the redefined role of the sales rep in 2012 and beyond - star-performers will be applying their skills in the opposite direction. They will increasingly create demand, not respond to demand. That demand will be created not through providing information about products and services, and not through asking the customer questions about information the customer already knows. It is through delivering insights to their customers in a way that creates value. But a critical question is - how are these insights to be delivered? Recent thinking proclaims that the best reps must “teach” customers, you must “educate customers on potential ways to change”, or deliver value by telling customers what insights are important to them.

Sounds compelling, doesn’t it? Even seductive – but it totally misses a critical point.

We must remember that there are two rules that apply to all human communication. These rules apply particularly to selling:

Customers value what they say and their own conclusions more than what they are told. (especially what they are told by sales people)

Customers value what they ask for more than what is freely offered. (Especially insights that are freely offered by sales people)

These rules of communication tell us that an approach based on telling, teaching or lecturing to a customer about the insights they need to be aware of may fall on deaf or suspicious ears. And there is factor that we must also take into consideration. With the increased sophistication of customers in today’s market, is there a risk that a sales rep’s attempts to teach or challenge may be perceived by an experienced buyer as a little obvious and even self-serving?

The reality is that the star-performers of 2012+ in the B2B world will still be the champions of investigating. It’s just that they are no longer only asking questions to uncover customer needs. They are asking questions that provoke and encourage deeper thinking about unrecognized problems and unanticipated opportunities for business growth. They are indeed educating about trends and delivering insights, but doing so by helping the customer arrive conclusions not through presentation but through discussion.

Put yourself in the buyer’s shoes and ask yourself which approach you would prefer?

Sales Strategy and Customer Decision Making

Brief background: Last week I conducted a webinar called “The Feel Good Funnel” which focused on balancing the quantity of opportunities in a company’s pipeline vs. the quality of those opportunities. Huthwaite’s position is that almost every sales organization’s pipeline is overweight on quantity – quantity of deals and quantity of dollars – at the expense of quality. If a more rigorous qualification process is applied to every deal we will see many of those deals either a) move back in stage, b) reduce in dollar amount, c) push out the close date – or d) taken out of the pipeline altogether. What is the cost of having sales reps working opportunities that are not properly qualified? Think about it in terms of travel costs, management time, lost-opportunity cost, supporting resources, etc. Answer – huge.

Question: During the webinar we received many questions. One interesting one was “can you talk more about aligning the sales strategy to customer decision making. I.e., what are the types of strategies you could deploy?”

What I really liked about this question was it joined two important points that are not commonly joined. That is, a) sales strategy, b) Customer decision making. So many sales strategies and processes are employed based on a series of actions that the sales person must take. A far more effective and successful approach is bringing in the customer’s reality, and examining the commitments that we need the customer to make at each stage. From that, a more realistic and accurate strategy can be developed.

I’m curious – as you look at the pipeline activities in your CRM, what percentage of those are seller-based activities vs. buyer commitments? Our research shows a far greater percentage of seller-based activities and milestones. What does your pipeline say?

Is Sales Six Sigma-proof?

The great myth in business today is that sales organizations are Six Sigma-proof. That is, sales organizations are by definition immune from standardization because salespeople will not conform to a prescribed set of streamlined processes. The argument goes that in fact they should not even be asked to, or you will scare away the superstars who are comfortable with a maverick approach to their work. In other words, salespeople need to be coddled, not have their worlds interfered with, or they will flee to what they perceive as greener pastures. But it is a myth.

Seeking Warm Weather or Real Differentiation

A colleague of mine is in the midst of a rigorous search with her teenage daughter (we’ll call her Liz) to find a suitable college for next year. Over the past few months they have visited, interviewed and toured at seventeen different colleges up and down the east coast from Alabama to Vermont. In each of these interviews the college is selling the reason that they are the best and logical choice for Liz to attend. What is fascinating is how each college goes about differentiating itself from its competitors for the goal of student dollars. In every case they tout facts about the school that they are convinced will impress such as:

Why is winning back to back Super Bowls so difficult?

As we head into super bowl week it is interesting to note that both the Steelers and the Packers have won back to back super bowls in their illustrious histories. Winning one title is a fantastic achievement but many sports people will contend that coming back and doing it in consecutive years is even tougher.

No Barriers

Last week I attended the sales kick-off meeting in Orlando of a customer of ours where I had the great pleasure of listening to keynote speaker, round the world solo yachtsman, Neal Petersen. While there are several hundred people who have also achieved this feat what sets Neal apart is that he grew up a person of color in Apartheid South Africa, in abject poverty and suffered from severe hip disabilities in his early childhood.

Rad eCommerce Experience

I always like to use this blog to highlight a positive experience that demonstrates particular sales and service excellence, so today I would like to talk about Blackhole Boards. But first some context: recently my 6 yr old son took up skateboarding and shows some real aptitude for it. His first board has been put through the wringer and it is time (already!) for a new one.

Eating Our Own Dog Food and Loving It!

Working in Silicon Valley in the 90s meant being subjected constantly to a barrage of hip, dot-com buzzwords and phrases of which “eating our own dog food” was prominent. There were many others of course which gave rise to a game that was played at meetings called “buzzword bingo” where you could tick-off buzzwords used during that meeting for your own entertainment. Of course conference calls lent themselves perfectly to this activity (apparently, not that I’d know – although I will admit in our office there was once a pool on how many times the word “conceptually” would be used by Marketing during a call and the final score exceed the highest bet by some margin! – of course I am sure they had their own pool on the buzzwords we used too.)

Impacting the Recovery

It has been a very busy time of late due to my being given a unique opportunity to run not one but two companies simultaneously. In addition to my role at Huthwaite, I am now also running Omega Performance, a sister company in the Informa family of Performance Improvement businesses.

Let's Be Honest: Excellence Takes Hard Work

Following on from my post on the Short Cut Culture some of you have emailed me to ask about whether I believe there is a broader context to this and indeed I do. We have begun to celebrate and tolerate mediocrity in all its forms as a way of avoiding standards that take hard work to attain and to hide behind it as some kind of great equalizer. Either way it has made the quest for excellence the path of increasing resistance.

The Shortcut Culture

I have just returned from a short vacation in Los Angeles and while I was there it struck me how what I call the "Shortcut Culture" has pervaded the home of the entertainment industry. Once upon a time young hopefuls would get off the Greyhound in LA, find a job busing tables, save their tips to pay for acting lessons and endlessly trudge from one audition to another driven by the belief that their hard work and commitment just might make them a star.

E.I. is O.K.

If there is one thing that most frequent business travelers fear is that dreaded delay on the tarmac especially when the actual flight is a short commuter one. Well this evening it happened at Dulles Airport in DC, we boarded the CJR 700 commuter plane, seating for about 60 people, on time only to be informed that thunder storms in Charlotte had shut the airport there. And so we began that open-ended wait for us to get the go-ahead or head back to the gate. In the end we spent 2.5 hours sitting on the hot tarmac (it was still in the 80s outside) in the small confined space of the full CJR 700 an experience that had the potential to be an extremely uncomfortable and frustrating one.

Insight & Foresight

I recently launched a series of conversations with business leaders from across multiple verticals called "The Business Insights Series" and as I reviewed the first five interviews I tried to see if there are some consistent themes emerging. What I found is that although there is great diversity in terms of business focus, there is great consistency when it comes to outlooks and observations.

Some of the key insights provided by these business leades include:

Are you ready to cross the Delaware?

As we head into the Independence Day celebrations it is worth noting how in the winter of 1776 it seemed highly unlikely there would ever be any independence to celebrate. George Washington and his continental army had suffered defeat after defeat and had been forced to retreat through New Jersey into Pennsylvania. Morale was low, desertion high and the prospects for reenlistment remote. But rather than succumb to what seemed the inevitable, Washington decided that winning a victory, any victory and soon was critical to turning things around. To this end he carefully re-examined his options and found a target in the wintering Hessians at Trenton. If he could rally the continental army and get them to Trenton he was confident that surprise and superior numbers would carry the day. So he set off on that famous crossing of the Delaware and the rest as they say is history.

Who Dares Wins...

I arrived for a meeting in Toronto which is gearing up for the G20 Summit later this week and when I got to my hotel I was surprised to find the lobby thronging with people and a noise level that would rival most sporting events. No I hadn't come upon the Anti-Globalization crowd getting ready for whatever it is they will be protesting against this time, rather to my surprise it was the "G20 Young Entrepreneurs" who have a side meeting at the summit. If their enthusiasm and high spirits are any indication of their entrepreneurial talents then it is likely I maneuvered my way through some future innovators who will join the likes of Google and Facebook in the pantheon of the truly disruptive.

Whether it is the World Cup or your Sales Organization - Coaches Matter Hugely!

The world's greatest sporting event (certainly in terms of numbers watching and participating before anyone starts emailing me about the Olympics or even the Super Bowl - perhaps I should say biggest because obviously greatest is in the eye of the beholder) begins this Friday in South Africa. 32 nations have made it through a two-year+ qualifying process in order to compete for the ultimate prize in international football (or soccer depending on where you are reading this post from!).

 Naturally the bulk of the attention is focused on the array of playing talent that will grace this global stage in the coming weeks and the predictions are flying in households across the world about which player will be the ultimate star. Will it be Argentina’s Messi or England's Rooney or Brazil's Kaka or Spain's...well pick any of their midfield or forward line and fill in the blank such is their depth of talent. There is another major factor, however, in who will ultimately lift the 18 carat solid gold trophy and that is the coach!

Finding the Pulse

It never ceases to amaze me how much time we spend on standard operating procedures, process mapping, documentation, flow charts and customer data entry only to find ourselves constantly supplementing it with human intervention to “fill-in the gaps” or to tell the “real story”. Now don’t get me wrong standardization and documentation is important (as long as it leads to greater efficiencies and greater quality control), rather it is the haphazard human intervention that I am pointing to as the problem.

I’m Not Into You Being That Into Me

Guest Blog from Bruce Wedderburn, Vice President, Global Channel Sales at Huthwaite.

Recently I had a call with a sales person, let’s call him Fred, who wanted to discuss how a partnership with his firm could be beneficial for Huthwaite. He was referred to me by a colleague and I was very open to speaking with him. In the first few minutes of our discussion he dropped into the conversation the names of two colleagues from my college drama class, the name of the high school that I attended in Australia and that he, like me, also admired the artwork from another friend of mine who happens to promote her exhibits through social media.

Demanding Customers! Aren't we all?

Henry Ford once said that "a business absolutely devoted to service will have only one worry about profits. They will be embarrassingly large" and many books and case studies have been written on how exceptional service has been a competitive differentiator for a whole host of businesses over the years. The "Nordstrom Way", for example, is one that immediately springs to mind.

Given that nobody will argue with the power of customer service and follow-up in building customer satisfaction and loyalty, I recently asked a gathering of sales professionals what was the one major change they were seeing in buyer behavior and their unanimous answer (and this was a gathering of about 30 individuals) was that the demand for instantaneous support and service had increased dramatically.