Selling Technology – IT Sales Tips
Selling Technology
One sector that often comprises both intangible and complex sales is the high-tech sector. Many of the solutions are literally invisible—they run in the background and the majority of people are oblivious that they even exist.
Saying that someone is in the high-tech sector or industry is somewhat ambiguous in this era, as most organizations harness technology to make their businesses run. Everything from engineering solutions, to cars, cell phones, and legal services use technology as part of their offerings to the marketplace. So even if you do not consider yourself to be “in technology,” you will most likely be selling solutions that involve technology now or in the future.
Communicating the Benefits of Technology to Different Types of Buyers
We have to realize that there are often many types of people that are involved in the procurement of high tech solutions. For instance, if you were selling Customer Relations Management software implementation to a client, the following buyers may be involved in the decision making and evaluation process:
• The CEO
• Finance/Accounting
• The sales staff who will use the software
• The VP of Sales
• The training department that will insure use and implementation
• The IT department or team who will have integrate and support it once it is installed
Each of the buyers or contributors will need to have the solution communicated differently:
• The CEO will most likely want to know the big picture, the bottom-line and how the return on investment will be measured. They will not want to get bogged down in details and specifics and should not be asked questions related to those specifics.
• Finance and accounting will be concerned about capital costs, warrantees, process management, risk and on-going fees.
• The sales staff will want to know how to use it, how it will impact their ability to do their job, and the amount of control others will have over them.
• The VP of Sales and the training department will want to know about measurement, implementation, tracking tools, and how it will impact their ability to support the sales team.
• The IT department will want to know specifics on programming, quality assurance issues, debugging, scalability, programming language security, and a myriad of other technical issues.
Most people are comfortable communicating with one or two of these types of stakeholder groups. Great salespeople in this sector have a strategy to address the needs of each of these groups, and they communicate the benefits in a way that is unique and applicable to each buyer type.
In addition to this, there are several other important attributes relating to great high-tech sales professionals as follows:
Knowing the Market
Understanding our target market and niche is critical. We need to understand the unique circumstances, competitive environment, and business processes of our target market. In doing this research and preparation, we are better equipped to address the needs of our target market and identify what core business challenges our technology can address.
Knowing the Client
We need to go beyond the market and spend time getting to understand each individual corporation’s situation and circumstance. Each client will have unique business challenges and processes that need the support of technology in a customized way.
Factors that will affect the type of solution needed will vary depending on their stage of business growth, existing business processes, corporate goals, immediate and long term challenges, as well as management and operations philosophy.
Know All Applications and Limitations of Your Solution
In order to fully service the client and become a true resource and problem solver, we must understand all the applications of our products and services. In addition to this, it is imperative that we also understand our weaknesses and limitations.
At times clients have un-reasonable or un-defined expectations—by understanding our limitations and communicating them effectively we can dispel any misconceptions.
Why this is important is that a small misunderstanding early on could result in a largely off-target project or solution. On the positive side of course, by knowing all of the applications of our solution we make sure that we truly maximize revenues and client satisfaction.
Be a Problem Solver
This is an integral part of selling technology. Most new technologies evolve out of a client problem for which there is no solution.
Have Great Consulting Skills
Elevating ourselves from the status of order taker to trusted advisor can give us a real advantage in the marketplace. To be seen as a consultant, we need to have a thorough needs analysis approach, build our profile as a subject matter expert, have a high level of rapport with the potential clients, and look for ideal solutions—not just “our solution” to client problems.
Great Project Planning and Management Skills
Many large high-tech sales deals will require numerous people on our team to help us close the sale. There most likely will be a need to engage technical and support staff and then coordinate their interaction with key staff in our client company. Once we have the deal, there will be a need to continue to monitor these interactions to ensure that the promises we made to the client are in fact fulfilled.
Risks Associated with Long Sales Cycle Selling
A large complex sales opportunity can be very lucrative and offer great rewards for salespeople who pursue them. With these rewards also come risks because a large investment of our resources over an extended period of time is required for success. This large investment can be in vain if we have not addressed some of the risks associated with large complex deals.
Risks:
Not Targeting
If we do not have a clear idea of who our ideal clients are (referred to as A’s or the 20 percent that bring us 80 percent of our revenues) then we can be spending a lot time prospecting the wrong companies and opportunities. It is often a large effort just to get in the door and if we are knocking on the wrong doors, it can be costly.
Not Managing Pipeline
Being organized with a clear game plan is imperative as there are so many details and variables in a complex sale the deal can easily get side-tracked. By being organized in our sales process and managing our pipeline, we can reduce the chance of losing the deal due to apathy or distraction.
Not Knowing the Buying Process
We need to really understand how the client assesses potential suppliers and what process they use to do so. Too often we push our own agenda at our own demise. Spending time probing, asking questions, and researching is critical in helping us understand the likelihood of landing a deal. It also ensures that we do not miss critical pieces of information and steps that are important to the prospect.
Taking the Wrong Advice
We need to gather information from multiple sources to make sure that our approach is in line with the values of the key decision makers. If someone is blocking your access to the internal network of your client company, and all the information comes from that source, there is a good chance that your proposal will miss the mark. Take advice and gather information from people without personal agendas.
Not Having a Bid Qualification Process
Just because a big company sends you a Request for Proposal (RFP) it does not mean you should apply. Many companies have failed because they won the wrong contract and went bankrupt trying to service a large client and/or one with unique and expensive specifications.
As big complex deal hunters, we need to know what a profitable deal looks like. More importantly, we need to know how we could lose money or burn up time on deals that are a misfit.
Influencing Top Level Decision Makers
Guest Blog By Bill Gibson bill@kbitraining.com
Top level decision makers are results-orientated. Both tangible results and intangible results appeal to them. When we talk about results we can talk about both tangible and intangible results.
Tangible Results
The kind of tangible results that appeal to them are:
Raising Revenues:
Show them how their overall volume can be increased; in other words, an increase in sales. They know that an increase in sales means more profit if the expenses are well managed.
Increase Efficiency:
They want a sizable return on their monetary investment. If they see that their employees, or their equipment, or other capital will be more efficient, then the chance of their buy-in is higher.
Keeping Shareholders Happy:
Top-level decision makers are the ones who have to answer to the Board of Directors and to the Shareholders in a large corporation. Keeping the Board or shareholders happy is their main priority. This means that you are showing them ways to improve the value of the company, in turn improving the value of the shares paid out, or returning a bigger profit so that larger dividends are declared and paid to the shareholders.
Lowering Cost of Production:
Again, more logical, linear, left brain appeal to the top level decision makers. Lower costs equal better margins and bigger profits.
Increasing Market Share:
They are interested in advertising, marketing and business development strategies, tactics and methods to increase market share. Taking market share from the competition is something that inspires them. Also, gaining a bigger share of the average client’s buying power also means increasing market share to top level decision makers.
Higher Return On Investment:
Can you show them how they will get a bigger return on their investment for the money they invest with your services, products, ideas and concepts? If you can, they will want to know you and they will also open to investing time with you.
Dealing With Market Changes:
A sudden down swing in the economy, a new big competitor grabbing market share, a sudden market switch to a new technology, a new way of doing business, new government regulations that affect them adversely, a major change in consumer behavior are all examples of market changes that corporations have to adjust to and capitalize on. If you come with solutions for market changes that affect them, then they will take the time to explore the possibilities with you.
Intangible Results:
The types of intangible results that appeal to top-level decision makers are:
Lower the Risk And Worry:
Anything that you can do to lower or eliminate the risk makes them feel better. Showing them how you will finish a project on time, protect their investment, handle unexpected situations, save them personal stress or personal hassle are all examples of what they consider to be valuable as an intangible. It makes them feel better and reduces their worries.
Personal and Corporate Pride:
Senior executives and top-level decision makers are at the top because they have personal pride and are proud of the business results that they achieve. Whatever you can do to make them feel even more proud of themselves and their company, will usually provide positive results. One particular business journalist who works for the Globe and Mail uses this as her primary strategy to get senior executives to call her back for interviews. She will leave a message or send an e-mail genuinely complementing them on their achievements and track record and citing why she thinks they are an industry authority. Her callback rate is almost 100 percent.
Image – Personally And Corporately:
Yes the car they drive reflects their success level. The suits, the shoes they wear, the house they live in, the office address, and the image their marketing material portrays are all examples of personal and/or corporate image. Not all top level decision makers hold image as a top motive for buying, although most do, whether they admit it or not.
Retaining And Attracting Good Employees Who Work Beyond The Norm:
The top level decision maker knows that you win when you have exceptional people working with you. Show them how to attract and keep really good people who work beyond what normal people do, and they will be open to listen. When they see these types of people around them they are impressed and it gives them that intangible result of a sense of pride and comfort.
Sales Blog – Selling Intangible Solutions
Key Skills and Strengths for Selling Intangible Solutions
The following provides a brief overview of some of the skills and strengths needed to be great at selling intangibles.
1) Personal Brand of You
When selling intangible solutions, it really is about credibility and the relationship. Because the solution is intangible, the purchase is largely based upon the believability of the salesperson. For example, a business coach sells a very intangible service. They are often evaluated by their own personal presence, ability to communicate, and by third party endorsements and certifications.
Having a strong personal brand helps people understand who we are, what we are about, and it removes uncertainty. There is so much information out there to process that it is almost impossible for a consumer to choose a service or product—instead they choose the right company or the right sales representative and leave the product selection up to them.
2) Differentiation
People who are good at this type of sales often communicate what they do in a unique way. This means specializing and unique positioning is often necessary. Thousands of people in Canada call themselves “financial advisors” and the minute we hear that term we mentally lump them into the same category as the last 100 advisors we met and lose interest. One of the top one percent of advisors at London Life/Freedom 55 Financial refers to himself as a “Wealth Management Specialist” and just by the nature of his positioning, attracts very affluent clients. Find a way to present what you do in a way that makes it memorable and creates a distinction between you and the rest of the people in your industry.
3) Passionate Evangelist/Industry Authority or Both
As an extension of our personal brand and our ability to differentiate, our passion and knowledge are critical in selling intangibles. Because the client cannot often experience the service or solution in a tangible way, their experience of you has to be credible and inspiring. In fact, their experience in dealing with you will determine if they purchase or not.
Passion is really about having a strong conviction and unwavering level of confidence in ourselves, our company, our industry, and our solution. It is also critical to be seen as an industry authority—consistently doing such things as writing articles for local periodicals, blogging, being a guest speaker for local business or community groups, maintaining a regular newsletter, and having endorsements from well known people in the community. A combination of passion and being an authority increases our believability factor and takes away the fear of saying “Yes” for the client.
4) Clarity
In communicating, your greatest enemy isn’t the noise around you – it’s the noise you create, un-wittingly – Harry Beckwith, author of What Clients Love and Selling the Invisible.
Brevity and focus are key. If we focus on one or two core things we are good at and communicate those proficiencies really well, we can own a large portion of client mindshare and wallet share. Clearly communicating what we do, and not trying to be all things to all people, sets apart the high-paid specialists from the generalists.
Nick Usborne, author of NetWords makes an interesting distinction when he says that:
We’re not just writing to be understood, we are also writing in a way that insures we are not misunderstood.
Make sure the message about what you do is clear, focused, and void of any ambiguity. Focused, predictable service providers make clients feel safe.
5) Value Builders
Because what we are selling cannot be seen, touched, or measured, we need to be good at building value. Your ability to articulate the real value in terms of return on investment is very important. Solutions must be presented in a way that solves a core client pain or challenge. Describing our solution as innovative, leading, next generation etc. is not enough. These are weak business cases that are uninspiring. Look for client pains, fears, and challenges, and then talk about your solution as a pill for their pains. Back up your claims with research, data, client references, and proof. Help your clients measure what they cannot see.
Selling and Succeeding in Turbulent Economic Times Video Interview
I was interviewed by Tom Everitt of ThinkTom.com on my upcoming seminar at the Vancouver Board of Trade next Tuesday November 25th. Take a look at the video ( details of the event are below the video )
Tuesday, November 25, 2008
Managers’ Toolbox
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Speaker: |
Shane Gibson, President (North America), Knowledge Brokers International Systems Ltd. |
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SELLING AND SUCCEEDING IN TURBULENT ECONOMIC TIMES |
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 Many sales professionals and entrepreneurs are concerned about how they are going to weather today’s global financial storm. The rules of the game have changed with the meltdown in the banking sector, along with globalization and the introduction of disruptive technologies to almost every industry.
Succeeding in turbulent economic times is about proactively taking control of our own personal economy. Shane Gibson, president of Knowledge Brokers International, will share with you strategies to succeed in any economic condition. Fortunes have been made during times of change and economic downturn; sales people and entrepreneurs must develop a tool kit to help us adapt to and succeed in this ever-changing environment. It’s not what happens that defines an event; it’s how we respond to it that matters. This fast-paced session will give attendees the tools, insight and strategies needed to respond to today’s marketplace conditions. You will also learn:
About the speaker Who should attend Presented by The Board’s Small Business Council
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090722 |
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Tuesday, November 25, 2008 |
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Registration: 7:30 a.m. |
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The Coast Plaza Hotel & Suites, Stanley Park – Comox Ballroom |
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MAKE IT COUNT
CMA BC Seminar | Certified Management Accountants of British Columbia
Podcast: Play in new window | Download
This is a full 30 minute keynote I did for the Certified Management Accountants of British Columbia at their Career Connections Event on November 1st 2007. Introduced by Vinetta Peek of CMA BC Canada. The audio quality wasn’t great but the content is good.
Become a CMA in British Columbia
Learn about the CMA Designation across Canada
Book Shane Gibson for your next conference
Title: The Career Maker – Relationship Development Skills
This is blogathon entry number 38 for the MSMF Blogathon. Visit this page to learn how you can support this cause.
The Importance of Mentorship Part 1
“To the world you might be one person, but to one person you might be the world.”
- unknown
The Role of Mentorship provides an important role in the development of global socio-economic infrastructures. It provides critical capacity building support and opportunity for entrepreneurs, corporate executives and government officials and leaders in creating long term stability and competitiveness for nations and their economies. Mentorship in the areas such as fine arts, sciences, and the not for profit sector is paramount to improving and sustaining the quality of our lives as a whole. Building capacity is means strengthening and increasing insight, ability and talents, as well as visioning and implementation and execution skills in a specific discipline or disciplines. For instance Vancouver’s economy boasts a strong, growing high tech sector but still has only begun to tap its global potential.
This is largely attributed to capacity gaps in marketing technologies and distributing them on a broader platform. In order to increase the capacity to grow and export Vancouver’s technology base and applications, building the sector’s mentorship capacity and resources can help the key entrepreneurs, executives and innovators within the local technology sectors meet their full global market potential. Mentorship can provide a prospective road map from someone else who has walked the path before – like an entrepreneur who taken a tech company from 12 employees in a basement apartment to 500 employees and a listing on the TSE with global distribution.
Typically, however, the steps, pitfalls, and challenges aren’t well documented traditionally; they’re taught, and modeled by mentors and leaders and passed on to their protégées and partners. Its a proven fact that the higher mentorship capacity levels you have and the higher the quality of mentorship in your community the higher capacity economically, environmentally, and socially you will have. Unlike traditional education environments, corporate training programs and courses, mentorship is a very personalized form of support and transferring knowledge. It is primarily based on a specific relationship between two people and at times between an individual or group of individuals or advisors. [This is the first post of a two post series on this topic Click Here to Read Part 2]
This is blogathon entry number 17 for the MSMF Blogathon. Visit this page to learn how you can support this cause.
7 Important Things When Selling to Executives
When we’re dealing with senior level decision makers we need to assess what their core driving motivators are and then customize our pitch to fit those drivers (if we have a true fit of course). No two people or organizations are alike but here’s 7 common things that senior decision makers are looking for:
? Raising Revenues: Show them how their overall volume can be increased. In other words, an increase in sales. They know that an increase in sales means more profit if the expenses are well managed.
? Increase Efficiency: They want more return for their money invested. If they can see that their staff and management will become more efficient, or their equipment or other capital and human assets will be more efficient than the chance of their buy-in is higher.
? Keeping Shareholders Happy: Keeping the Shareholders happy means that you are showing them ways to improve the value of the company inturn improving the value of the shares, or returning a bigger profit so that larger dividends are declared and paid to the Shareholders.
? Lowering Cost Of Production: Again, more logical, linear, left brain appeal to the top level decision makers. Lower costs equal better margins, which means better profit.
? Increasing Market Share: They are interested in advertising, marketing and business development strategies, tactics and methods to increase Market Share. Also gaining a bigger share of the average client’s or customer’s wallet (spend) is also increasing market share to them.
? Higher Return On Investment: Can you show them how they will get a bigger return on their investment for the money they invest in your services, products, ideas and concepts?
? Dealing With Market Changes: A sudden down swing in the economy, a new big competitor grabbing market share, a sudden market switch to a new technology, a new way of doing business, new government regulations that affect them adversely, a major change in consumer behaviour are all examples of market changes that corporations have to adjust to and capitalise on.
This is blogathon entry number 15 for the MSMF Blogathon. Visit this page to learn how you can support this cause.
Complex Sales Training Podcast Part 3
Podcast: Play in new window | Download
Today’s sales podcast is Part 3 of 3 of the Complex Sales Training Podcast Series. This series is based upon Knowledge Brokers International’s Managing Complex Business Relationships Program(PDF Link). A three day intensive complex sales and business relationship development training program and system for key account and enterprise sales people.
The focus of the Complex Sales Training Podcast part 3 is on measuring and progressing our level of relationship development with our key accounts and understanding how that impacts our success in navigating large, complex and long sales cycle deals.
This program is now formatted and compatible for your iPhone!
Complex Sales Training Podcast Part 2
Podcast: Play in new window | Download
The Complex Sales Training Podcast series part 2 is focused on understanding the motivations and strategic situations and circumstances that affect how the Power Players or major stakeholders in your target companies make decisions (or won’t make decisions).
Complex sales is about 90% preparation and 10% perspiration. It’s not just about a pitch in the boardroom, complex sales people, or simply put people who are masters at closing bigger deals strategically map out their process and the battle field (so to speak).
Please have a listen to my podcast and post any comments or questions so I can address them in Part 3 of the Complex Sales Podcast Series.
Complex Sales Training Podcast by Shane Gibson – Copyright 1999-2008 Knowledge Brokers International Ltd.
Complex Sales Training Podcast Part 1
Today’s podcast is Part 1 of a 3 part podcast on Complex Sales and Managing Complex Business Relationships.
Podcast: Play in new window | Download
This complex sales podcast introduces you to the process by first defining what complex sales is and then moves into
part 1. In Part 1 of the Complex Sales series we are introduced to the 6 major Power Players in a Complex Sale or complex business relationship: The Navigator, The Ruler, The User, The Protector, The Contributor and The Opposer.
Definition of Complex Sales (From Wikipedia):
Complex sales, also known as Enterprise sales, can refer to a method of trading sometimes used by organizations when procuring large contracts for goods and/or services where the customer takes control of the selling process by issuing a Request for Proposal (RFP) and requiring a proposal response from previously identified or interested suppliers. Complex sales involve long sales cycles with multiple decision makers. Multiple stakeholders and stakeholder groups contribute to every complex sale.
Any product or service may become a complex sale. In some instances a complex sale occurs when the market is mature and the stakes high enough to warrant attention from a variety of stakeholders in the buying organization. In other instances a complex sales process is needed when the buyer has never had experience with the vendor, technology being sold, or if the solution is business critical or impacts the buying organization on a strategic level. The series of filters, purchasing steps, and stakeholders involved are designed to reduce the risks associated with making the wrong buying decision…
…often the sales person is required to have a set of skills that are more in line with a subject matter expert or consultant than a traditional sales person. This type of sales person can often be referred to as a Key Account Executive or Complex Sales Executive. (Full Definition here.)
The next few podcasts will hopefully help you develop an understanding of what core skills and strategies will be required to navigate and close complex sales.
Speaking and Training
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