A funny thing happened on my way to the sale... Part 1
by Andrew Shedden
Those of you who remember the television programme WKRP in Cincinnati can't help but recall the sales "techniques" of Herb Tarlek. The insincerity, schmoozing, protestations of innocence, and complete lack of any form of industry or professionalism was breathtaking.
Herb was, of course, a stereotype but one based on both perception and hard earned experience from many a long-suffering buyer. My personal Herb favourite was when he was seen pouring cheap scotch into a bottle that had contained good scotch. When asked what he was doing Herb replied, "Aging scotch."
If Herb found it very difficult to sell in the early 1980s, he would find it almost impossible today. There has been a major paradigm shift in business and true power rests with the buyers, not the sellers. This is great news if you happen to be a buyer but less than stellar if you happen to be one of those overworked and confused salespeople who need to sell in order to eat.
What's happening out there?
One of the things I most notice when working on marketing and selling issues with clients is how unsettled they feel. Most of them know that things have really changed in the sales arena but can't pinpoint an exact reason. Many salespeople are discouraged, and bewildered. Many companies that initially contact me are working harder than ever and nervously watching their sales volume plummet. The question most often heard is "What's happening out there?"
Clearly this is not a question that can be answered in a few minutes. "What's happening out there" can easily be attributed to all kinds of macroeconomic and microeconomic jibber jabber. This is great if you like that sort of thing. I think there are some fairly basic reasons for this sea change. In this newsletter I'll outline a few of them.
Societal Changes
Yogi Bear used to like to say he was smarter than the average bear. In sales you have to be as smart as the average buyer. That can be a bit of a stretch for some sales professionals because the average buyer is smarter than ever. The average buyer is well trained, technologically adept, and highly aware of the greatly increasing choice of available purchasing options.
Technology has made the buyer's world shrink and democratized purchasing. Conversely, technology has made the salesperson's world expand and created a dictatorship of price.
Environmental Changes
Downsizing has effects that are much more far-reaching than mere societal dislocation. In fact the seemingly never-ending spate of downsizing means that nearly all employees are working longer hours with additional responsibilities. This means that some unqualified and unwilling employees have become buyers by default or necessity. It's only natural that some buyers are very annoyed with the increased time demanded by their new duties. Today's overworked buyers have less than no time for sales people coming in and wasting time.
Downsizing (rightsizing, redeployment, demanning, depersoning, rationalization, deeuphemizing, and on and on) is an entrenched part of the business landscape and won't be changing any time soon. This presents yet another challenge to salespeople.
In many companies the traditional buyer has been replaced by groups of people forming task-related groups or teams, performing their function, and disbanding. These teams can be classified as mobile, fast, and temporary. In larger companies you see these buying teams with increasing frequency. Their existence doesn't promote loyalty.
Technological Changes
There is no question that technology has had many beneficial effects in the business world. I use and embrace technology in my business and could hardly be described as a technophobe. While technology has most definitely made the life of the average salesperson more enjoyable and productive this productivity has come at a great cost. While Salespeople may enjoy using their PDA's and contact management software to ensure that their CRM is A OK they are increasingly finding themselves SOL.
The single biggest problem technology has created for today's salesperson is the commoditization of virtually every product and service being offered by business today. This has dramatically increased the difficulty of promoting differentiation.
Commoditization means that there is a real or perceived lack of difference between products. As we all know from business 101, if an item is viewed as a commodity, price becomes the major factor in the purchasing decision. What this simply means is that professional sales ability is increasingly taking a back seat to price, price, and price.
In addition to lower prices through commoditization technology has also brought one other major challenge to today's happy, hip, and happening salesperson. For a great many businesses technology has undermined customer loyalty. It has destroyed any chance of forming meaningful relationships.
You must know the old saying, "If they come for price they'll leave for price." Why should your customers stick with you if there is no basis for a relationship? The answer is they won't.
The first objection to this statement I always hear is from the champions of CRM. I am well aware of the wonders and efficacy of using technology for customer relationship management but would respond with some questions of my own:
"How many companies utilize CRM technology well, if at all?"
"How many companies can cost justify the initial expenditure?"
"How many companies can cost justify the ongoing expense of maintaining the program?"
"How many companies start with CRM and then abandon it?"
"How quantifiable is the process?"
The cost to business from technological advancements creates many other problems as well, technology:
Creates tremendous confusion in the marketplace.
Exposes local and regional businesses to worldwide competition.
Increases the ease of "comparison shopping."
Forces all salespeople become technical salespeople.
Compels all technical people become salespeople.
Confuses and paralyzes less savvy buyers.
Confuses and paralyzes less savvy salespeople.
Oh bother, why art thou?
After reading this you might ask yourself why you even bother trying to sell in today's sales environment. The cynical answer is "Because you have to." The inspirational answer is that all of these challenges can be met head on. In our next brief you'll learn how you can sell and excel in the current marketplace.
