We all know how important getting a ‘yes’ is, but how important is the word ‘no’ in sales? For some companies the word ‘no’ is just as (if not more) powerful than a ‘yes’.
The number one killer of value in any sales model is time wasting and salespeople not knowing where and how to apply their time. I call this scenario ‘The Black Hole Effect: lots of time going in but nothing comes out, ever! By out, I mean productivity, tangible value, results and outcomes.
I have talked in past blogs about ‘crazy customers’ and their damaging effect on time-management and sales performance. The key to eliminating times wasters is to get comfortable with saying the word, “no”. As a salesperson you need to know your place; and that is in front of customers. But not just any customers – the right customers. When I’m working with a sales team, I always look for ways the salespeople can maximise their time, value and output. The first place I start is in understanding where salespeople add most value and structuring their time more in that activity, and to create support structures around them to allow them to do so.
I was working with an IT client that was being bullied by their clients. The company had a great solution and technical capability, but little sales savvy and no clear and consistent sales process. In fact, there wasn’t even a dedicated sales manager driving the business. So when the company was presented with a client opportunity ? out of desperation they would bend over backwards to win the business, in doing so setting the tone for the ongoing relationship: we give and you take.
This is okay to a point, but in this instance although my client was were winning big contacts with high profile clients, they were haemorrhaging red ink from uncontrollable scope-creep and copious non-billable work which was sending them towards the hazardous rocks of insolvency.
My first recommendation with this client was to get used to saying the word “no” and investing time and resources in the right customers and creating a sales process from the initial client conversation that set the tone for the ongoing relationship.
Client: “Can I have a price and proposal on this solution by Friday morning?”
Salesperson: “I am happy to provide you with a proposal and the best price, but that would be towards the end of our initial conversation. Do you have 15 minutes now so I can learn more about your problem and what you are setting out to achieve here?”
Client: “No, I just need a quote at this stage.”
Salesperson: “Our experience tells us that with the solution you’re interested in there is too many ‘grey areas’ to simply guesstimate a price. And we believe you deserve a bit better than guesswork. How important is it that you get this solution right?”
C: “Very important.”
SP: “What is the cost associated with getting it wrong?”
C: “Hard to say, but considerable.”
S: “I hear you. So you need the right information to make the right decision? And based on our 15 years of expertise delivering successful solutions in your space, we have a process to ensure this is achieved. If you have some time now or later I am happy to take you through this process. Is now a good time or is another time more suitable?”
C: “I am busy now, but can we make a time for early tomorrow, I would like to have my director sit in on our this conversation to make sure we cover all areas.”
S: “Great. How about 10am? And what is your director’s name?”
C: “10 am is fine. His name is Harry Highpants.”
S: “Thanks Sally. In the interim I will email you my contact details and some more information about the solution to review prior to our phone meeting. I look forward to speaking with you and Harry then!”
You can see from the above example how simply ‘The Power of NO’ works. It’s not a power trip or tactic to alienate customers? it’s simply an approach designed to give you confidence. It will also help you cut-through time wasters and time wasting conversations to enable you to have the right conversations with the right customers to deliver the best outcome more often.
Just don’t forget to always communicate the word “no” in a way that benefits the customer. Enjoy!
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Trent Leyshan is the founder and CEO of BOOM Sales! a leading sales training and sales development specialist. He is also the creator of The NAKED Salesman, BOOMOLOGY! RetroService, and the Empathy Selling Process.
Smart Company is the leading online publication in Australia for free news, information and resources catering to Australia’s entrepreneurs, small and medium business owners and business managers.
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