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ADDED VALUE
(Published
- Marketing & Sales Update - February 1998)
Today’s success is no guarantee of
tomorrow’s success. Bill Gates says, “ Each organisation is only
18 months away from failure”. Is this true or is this just another
of those great American people saying great and irrelevant things.
As a sales person I must ask myself, “ What are the challenges facing me
and what is all the fuss about added value”.
THE HORROR STORY
If you haven’t noticed client organisations
are different to what they were in the past, they have different shapes,
sizes, and structures, and it requires a different set of selling skills
to be sucessful. Structures are flatter and more team based, Key
Decision-Makers are not necessarily those at the top and decisions are
no longer only based on price or brand and loyalty. Charles
Handy in his book “The Empty Raincoat” refers to this as the withering
of the formal organisation. He claims that by the turn of the century only
50% of workers will have full-time permanent employment. Full-time jobs
will not be the norm. Handy refers to this as the:
THE SHAMROCK ORGANISATION
-
Core workers: A small elite of qualified
professionals.
-
Contractors: Where a type of work is not
central to the type of business it will not be required on a full-time
basis.
-
Part-time helpers: A flexible labour force
that can be pulled into the organisation on a part-time basis to assist
during peak times.
Today employees work for about 100 000
hours in the course of a career. This constitutes about 47 hours per week
over 47 weeks per year, during a career of about 47 years. The career lifespan
of the future will be about 50 000 hours (45 hours x 45 weeks x 25 years).
We are already feeling the effects
of this today, mostly as a result of a downsizing of the manufacturing
sector. During the fifties 70% of all jobs were involved in making
things. There has been a proportional decrease in manufacturing activities,
and it is expected that by the next century less than 10% of economic activity
will be involved in manufacturing. This does not necessarily mean
a reduction in manufacturing capacity or sales volumes for suppliers to
the manufacturing sector. What it does mean is a reduced number of
Key Decision-Makers, in “smaller” organisations
One cynic has argued that the manufacturing
company of the future will consist of a man and his dog. The man is to
look after the machine and the dog is to ensure that the man does not fiddle
with the machine.
The people we now have to learn to
deal with are specialists, not just ordinary buyers and managers.
Unless you are able to add value to you and your customer’s organisations,
you might just find yourself becoming an “outsource” or “part-time” worker.
A development already taking place in the FMCG and Insurance industries.
Your customers time has become of
more value to him, if he is to deal with you in preference to others, he
wants to know that you will Adding Value to his business. There are only
two reasons a customer will continue to buy from you?
-
Make a profit. If the time he spends
with you can help to make money, save money, increase productivity and/or
increase market share, this will be vital to your decision-maker.
-
Successfully manage and integrate key
functional areas of his business. If you are able to show him that
you have the required knowledge and skill that give him a competitive advantage.
THE CHALLENGE
Technology has become a key enabler
to the formula ½ x 2 x 3
(half as many people, working twice as smart, producing three times as
much.) As the real cost of computing continues to drop by 30 % a year,
the need for sales people who are merely order takers, will reduce.
A vendor of soft drinks is able to set-up his system to calculate stock
requirements based on a number of variables and automatically email an
order to the supplier. Global competitiveness and technology have
moved so rapidly that any competitive advantage that you or your company
had, has already been, or shortly will be eradicated. Consider this,
from the moment Versace’s Spring collection was unveiled until it was copied
and commercially available in the Far East, took only 24 hours. If
the auto industry had to develop at he same pace we would now have a BMW
that costs ten rand, travels at the speed of sound, and uses only a thimble
of fuel per 1000km. The rules of the game have changed we have moved
to a world of knowledge based organisations and focused intelligence.
The ability to create, acquire, maintain,
and apply knowledge is the new source of competitive advantage. In a 1986
survey, McKinsey and associates argued that by the year 2000, 70% of all
jobs in Europe will require cerebral, rather than manual, skills.
Information is being created and utilised at ever accelerating speed. For
example the amount of information created between 3000BC and AD1965 was
doubled between 1965 and 1995. It now takes only 5 years to produce the
same amount of information. The average weekday edition of The New York
Times represents more information than that which someone in the 1700s
would come into contact with in their entire life.
Does this mean that the days of the
“Old Work Horse” are over? Must the more experienced Sales Representatives
move over for the Yuppie “Youngsters”? Not at all, but we must accept
is that the future creator of wealth will be TIME.
The dragon of global competitiveness
is about to eat the goose that lays the golden egg of profit! Only
you armed with the sword of ADDED VALUE can save the company.
KEYS FOR ADDED VALUE
Let’s face it: we’re in a very competitive
sales environment. The pressure is on to get the numbers. Meeting
quotas and closing sales are part of the daily mental gymnastics of most
salespeople. You are paid to get results.
Many times these goals s..t..r..e..t..c..h
the wrong sales muscles. People think too much about selling.
What can I sell? To whom can I sell? How much can I sell?
How can I get someone to buy from me? How can I get them to buy more?
Many times veterans find themselves
focusing on these thoughts, and their sales go down. What is wrong
is that they are thinking mainly about themselves, not the customer.
Often, what prevents us from exceeding our sales goals is one word in this
sentence: us.
We need to develop empathy towards
our customers, we must to understand and focus on their needs. An
Added Value mindset will help you to see your goals in a different perspective.
THE DIFFERENCE BETWEEN CUSTOMER
SERVICE
AND CUSTOMER SATISFACTION:
After the sale, your customer will
decide if the benefits of your product or service fulfilled their needs.
This is a very important judgement. Your product plus your personal
service will help them to make that decision. Customer service is
an action taken by you and your company to ensure the customer’s well being.
Customer satisfaction on the other hand, is derived when you have fulfilled
their wants and needs and contributed to their success with your product/service.
Remember that it is what is perceived through the eyes of the customer,
that determines his/her level of satisfaction.
1. Developing Empathy
Empathy is the ability to identify
with other people. The day of the Go - GETTER is gone, We now live
in the era of the Go - GIVER. In order to be able to give people
what they need we must understand how they feel and how they are affected
by circumstances. Replace “What can I sell” with “What do they want,
need, afford.” Empathy places the interests of the customer first.
As “Added Value” sales people we must learn to understand those interests.
2. Positive Thinking
Your attitude can make or break you;
your attitude rubs off on your customers. As a salesperson, you are
more emotionally charged than just about any other professional specialist.
When things are going well, you feel great! You don’t have to try
hard to get yourself ‘up’ when there are so many things that can
bring you ‘down’?
It’s okay to feel down; everyone does
at one time or another. It’s how you pick yourself up that can make
all the difference in the world. The key question to ask yourself,
and one that will sound familiar, is:
What can I do that will be to my and
my customer’s best advantage?
3. Extraordinary Work Ethic
All successful salespeople realise
that this is a major key to success, but what exactly does extraordinary
mean? The key is:
DO WHATEVER IT TAKES TO GET THE RESULTS
YOU WANT AND / OR NEED.
Extraordinary doesn’t mean that you
have to physically exhaust yourself every day in order to show how busy
you are. That’s not extraordinary, That’s kidding yourself.
Doing whatever it takes means a number of different things:
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Starting earlier in the day
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Devoting time to planning for each call
before the call
-
Scheduling enough quality calls (existing
customers and prospects who can buy)
-
Following through on service requests
from your customers
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Thinking of new ways to help your company
market your products or services
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Continuing to give your best efforts throughout
the day, especially when you’ve had success early in the day
-
Remembering and following the classic
motto, ‘One more customer’.
4. EXCELLENT SELLING SKILLS
Excellent selling skills coupled with
relationship sales skills and an added value mindset, equal your ‘degree’
in sales excellence. Excellence in these areas will give you an incredible
competitive advantage - you’ll be the best you can be!
Use resources e.g., books, audio and
videos that will enable you to stay informed or learn new skills continually.
Successful salespeople never think they know it all and are always eager
to learn.
5. 360 DEGREE PRODUCT/SERVICE KNOWLEDGE
To top sales people, ‘Knowledge is
power’ is more than just a saying. You want and need to know everything
about your products or services; surface knowledge just won’t do.
Total knowledge gives you the solid foundation to advise your customers
on every feature, advantage and benefit of using your company. If
you don’t have all the facts and understand how your products/services
will help your customers, how will they know?
-
I understand why the product was created
-
I know the needs it fills for my customer
-
I know how it is developed and its quality
-
I know the features (facts) about it
-
I can list all the advantages to customers
-
I know how it compares with competitive
products and services
TIPS FOR ADDING VALUE
1) You give them a friendly greeting
2) You show an interest in their problem
3) You help them make the right selection
4) You know your product from A-Z
5) You show and demonstrate the benefits
enthusiastically
6) You give them the best service
7) You give them a choice between
something and something
8) You never fail to thank them for
their business
9) If you want to keep your customers
stay in touch with them on a regular schedule. If you don’t take this time,
your competitors will
10) Develop proactive follow-up strategies
11) Alert customers to published articles
that may have an impact on their business.
12) Help your customers to network.
13) Ask your customer on a regular
basis; ‘Is there anything I can do for you today?’
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