Before sense can be made out of
the title for this editorial, a review of some of the basic principles of
conducting business effectively is in order. When this publication was
launched in 1982 and subsequently called the "Bible of the
Industry" by The Wall Street Journal, we focused on the
principles of conducting business over the phone, with a strong emphasis
on hiring, training, compensation issues and selling techniques, which
were the hottest topics in the 1980s and the first half of the 1990s. I
personally lectured at the original call center convention called TBT
(Telemarketing and Business Telecommunications), which was launched by
Technology Marketing Corporation (TMC) in 1985. At that time, I reviewed
not only the principles of hiring effective salespeople, but also the
importance of positioning your product or service as a solution to
customers' needs. I often emphasized to the TBT conferees that by far the
most effective way to sell a product or service is to first find out about
the needs of the customers (by being a good listener, not a good talker)
and then, if appropriate, position your product or service as a solution
to each customer's needs. If you think about it and if you are honest
about the validity of your product or service as a true solution to the
customer's problems and needs, there is absolutely, positively no better
way to sell.
I have conducted extensive research on the subject of selling and
reinforced it with my personal experience. I have concluded that the most
important requirements for effective salesmanship are as follows:
- Building the element of trust,
- Having empathy,
- Possessing a strong ego drive,
- Being a good listener,
- Having industry knowledge,
- Possessing competitive knowledge,
- Thoroughly understanding your product and the benefits of the
product for the customer,
- Being persistent and having strong follow-through,
- Being a great relationship builder, and
- Last but not least, being a great closer.
The Element Of Trust Is The Vital Piece Of Any Business Transaction
By far, the most crucial element of effective selling is the element of
trust. It stands to reason that no one, repeat, no one buys anything from
someone they don't trust. Everything else is immaterial. You could be
selling the finest piece of jewelry, the top-of-the-line Rolls-Royce or
whatever else is perceived to be the best in its class, but if the
customer does not trust you or your organization, you are wasting your
time. If anyone does not understand and agree with this vitally important
principle of conducting a business transaction, that person simply will
not get anywhere in business. There are salespeople who have the natural
ability to actually instill the element of trust in their customers almost
instantly, but the rest of us will have to work very hard to earn the
trust and respect of the customer. One extremely effective method of
earning the customer's trust is by actually turning down business. You
might think that Nadji is going crazy again, but before you go too far
with that, let me walk you through a couple of true stories.
Case 1 -- The Story Of An Honest Salesperson At Nordstrom's
Nordstrom's reputation for outstanding customer service is legendary.
Recently, I decided to verify for myself that customer service at this
fine (if not the finest) department store is, in fact, second to none. At
Nordstrom's, I went directly to the men's department and gave my
specifications for a suit to the salesperson. He quickly presented me with
four suits that met the specifications I had given him. He first explained
the strengths and weaknesses of every suit. He explained, for example,
that manufacturer X produces standard quality suits at a reasonable price,
and manufacturer Y produces a nice-looking product, but the product may
not stand up to repeated dry cleanings without losing its shape, and so
on. I then tried on all four suits. Without getting too specific, the
salesperson talked me out of buying any of the four suits by legitimately
explaining why none of them would be suitable for me. Even though I was
very close to buying one of the suits, he literally talked me out of it by
saying, "I don't want to sell you a suit that you will not be happy
with. I want you become a repeat customer." (How about that for great
CRM?) He then told me he was expecting a new shipment of spring
merchandise and suggested I return in the near future to try the new
products. Having gained full trust and respect for the salesperson and
Nordstrom's, I gave the salesperson my business card and asked him to call
me as soon as the new merchandise arrived. I believe I have become a
Nordstrom's customer for life.
Case 2 -- Zig Ziglar Buys A Bike
Zig Ziglar, who is reputed to be one of the best, if not the best,
salesperson of the last century, offers yet another compelling story about
the power of rejecting the order.
Zig and his wife went to a bicycle shop to buy a bicycle for their
grandson. While in the bicycle shop, he noticed that a grandmother was
trying to do the same for her 5-year-old grandson. She asked the grandson
which bike he liked. The boy pointed at a yellow bike and the grandmother
asked the shopkeeper, "How much does that bike cost?" The
shopkeeper stated, "That bike is too big for your grandson so I
cannot sell you that one." The grandmother insisted that regardless,
she would only buy that yellow bike. The shopkeeper stated, "If I
sell you the yellow bike for your grandson, he will not be able to apply
the brakes and stop the bike in case of an emergency. I don't want to be a
part of that tragedy." The shopkeeper then continued, "If you
are not prepared to buy the right sized bike for your grandson, then you
need to go somewhere else because I will not sell you the wrong sized
bike."
Having witnessed this, Ziglar gave a signed blank check to the
shopkeeper and told him that he would bring his grandson in and he could
fit him with the right bike and fill in the blank check as appropriate.
In conclusion, it is apparent that in both of the above cases, the
element of trust was established and reinforced by the vendor turning down
business for a sound reason. It may surprise you, but if you adopt this
method of establishing the element of trust between you, your firm and the
customer, you will have many customers for life! Admittedly, this is
thinking out of the box, but I don't know a better way to establish
excellent CRM.
As always, I welcome your comments.
Sincerely,
Nadji Tehrani
Executive Group Publisher
Editor-in-Chief
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Effective
Exhibiting Still Not A Reality For Some Exhibitors
Over the last 20 years, I have addressed the vitally important role
that effective exhibiting at trade shows plays in the marketing of
products and services.
Savvy marketers know that exhibiting at a targeted and properly
selected trade show is one of the most cost-effective ways to generate new
business. As indicated in my last month's editorial entitled, "If
Business Gets Any Worse...We Probably Should Start Advertising,"
business literally lives or dies from new business. I explained that in
this slowing economy, most, if not all, companies lose more than 50
percent of their existing customers for a variety of reasons. And...if
these lost customers are not replaced by new customers, the business's
survival will be in jeopardy. It is paramount that every businessperson
lives by this cardinal rule of survival to protect their business in a
slowing economy.
Having said the above, I am often shocked at the lack of attention many
exhibitors pay to effective exhibiting. For instance, I recently attended
a major trade show and, as usual, I was trying to remain on time with the
myriad business meetings I had scheduled at various exhibits with the
principals or senior management of the companies in question. As we all
know, it is vitally important that everyone shows up on time because every
minute not used effectively at a trade show can represent thousands of
dollars in lost business. Obviously, I referred to the show directory
frequently to try to locate various exhibitors. Believe it or not, it was
practically next to impossible to locate most of these exhibitors! They
may have been in the right aisles, but their signage was so poorly placed
or practically nonexistent that I literally could not find many of the
companies. I was forced to walk back and forth several times in the aisles
and still could not find the companies. The problems were numerous. First,
many companies had placed the name of their firm 35 to 40 feet above the
exhibit itself. And to make matters worse, there was no repetition of the
company name at eye level. In other words, if I was looking for XYZ
Company, I could never find XYZ Company anywhere in the entire aisle.
Suppose some customer or a group of customers actually came to the show
specifically to meet with XYZ Company to purchase a product, you can bet
they became just as frustrated as I was because they too would have been
unable to locate the company. I just don't understand what goes on in the
minds of some exhibitors. Indeed, many spend upwards of $20,000 to $50,000
to even $100,000 to exhibit at a given trade show and yet, if the name of
the company is not properly displayed in a visible spot, how can they
possibly expect to sell something or meet new clients? Believe me, I am
not exaggerating anything. I must have wasted an hour and a half just
walking up and down the aisles needlessly! As often is the case, during my
meandering, someone spotted me in the exhibit hall and said, "My boss
is in our booth right now and he would like very much to have a chat with
you." I asked the person, "Where is your exhibit?" She
replied, "We are just two aisles over." I looked everywhere,
walked up and down the aisle four or five times and I still could not find
the company. Can you believe this? People spend thousands of dollars to
exhibit at a convention and no one can find them!
While it is a very effective form of marketing, it is a given that each
exhibitor must compete with several hundred other exhibitors to get the
attention of attendees/ potential customers, so how can they justify
spending thousands of dollars to exhibit when they make it difficult to be
found? It seems to me that making any exhibit easy to locate should be a
no-brainer, but unfortunately for many exhibitors, it is not.
Another very prominent problem with exhibitors at the show I recently
attended was that many did not have proper booth graphics. Proper booth
graphics explain in a few seconds what products and services the company
offers. At that particular show, you would literally have to stop and ask,
"What do you people do?" Exhibitors that fall into this category
will undoubtedly lose 20 to 30 percent of their potential leads because
most attendees have a limited time to visit several dozen exhibitors and
they simply cannot stop at every exhibit and ask, "What do you people
do?" All of this seems very basic, but believe it or not, many
exhibitors simply do not pay attention to these vital details.
In my editorial in June of 2000 entitled, "A
New Paradigm For Successful Trade Show Marketing," I pointed out
a number of critical issues that I urge all marketing executives to refer
to and use as necessary. In that editorial, I mentioned that a very
effective way to market high-tech products is marketing through education.
I pointed out that given the level of competition for the attention of
each and every attendee, a successful exhibit marketer should consider
conducting inside-the-booth seminars. If you observe at the next trade
show you attend, you will find that, by and large, the companies that
attract the maximum number of people to their booths (and thereby generate
considerably more sales leads) are the ones that conduct an
inside-the-booth seminar. If you employ this method, you will have a
captive audience who welcomes sitting on a comfortable chair (after
walking the floor for several hours) to learn something new about your
products and services. Provided you do a great job of presenting the
concepts while teaching the basic principle to the attendees, and by
positioning your product or service as the solution to the attendees'
problems, you will be using one of the most effective sales tools known to
business. Obviously, you cannot position your product or service as a
solution to customers' needs if you don't already know what their needs
are. Consequently, it is highly advisable to ask all attendees questions
to qualify and understand their needs. If you haven't already used this
outstanding and powerful method of exhibit marketing, I urge you to do so
at your next trade show.
Differentiation Is Key
Another problem that I observe as I walk the floor at many trade shows is
that many exhibits look alike. Given that many competitive companies are
generally in the same neighborhood within the exhibit hall, it would be
wise for them to try to differentiate themselves from each other. Always
remember that you and 200 or 400 other companies are competing for the
attendees' attention. If you don't give the attendees a reason to enter
your booth as opposed to entering your competition's booth, you can bet
that they will walk on and pass by your booth. Chances are, they will stop
at your competition's booth. It may seem too much to expect such a simple
thing from some exhibitors who don't even have the name of their company
at eye level, but it may explain why so many exhibitors are often
disappointed at many shows.
Pre-Show Marketing Continues To Play A Vital Role
As indicated in my June 2000 editorial, pre-show marketing plays a crucial
role in successfully attracting qualified visitors to your booth. Once
again, you must always think that you and 200 or 400 other people are
looking for the attendees' attention. If you don't give attendees a reason
to come see you in advance of the show, you will probably never see those
attendees in your booth. In other words, pre-show marketing information
(which you should mail two weeks prior to the convention to the
pre-registered attendees) should be written in a benefit-driven manner to
encourage attendees to stop by your booth and check out the new product,
for example, that you have described in your pre-show marketing material.
Let us always remember that successful trade show marketing is a two-way
street. The more you put into it, the more you get out of it. Obviously,
if you just show up in an exhibit hall with no pre-marketing and
inappropriate booth graphics where no one can find you, you will
definitely be disappointed. In plain English, there are no shortcuts to
effective exhibiting. May I suggest that you read my previous editorials
on the subject as follows: "The
Best Kept Secret In Trade Show Marketing," January 1989;
"Successful Marketing At A Trade Show Is A Two-Way Street" Part
I, June 1991; Part II,
August 1991.
And speaking of trade shows, we have two remarkable events coming up: Communications
Solutions EXPO (May 23-25 at the Washington Convention Center,
Washington, D.C.) and Customer
Inter@ction Solutions Conference & EXPO (July 18-20 at the Cobb
Galleria, Atlanta, Georgia). We designed Communications Solutions EXPO to
be a show where you will not only find the whole world of the latest
communications technologies in one place, but also where you'll find ways
to use today's technologies to be more efficient, more productive and more
profitable. The conference program will present tracks focusing on
enterprise solutions, contact center solutions and developers/systems
integrators as well as special sessions on FedCom, Service Provider Week,
e-Sales/e-Service Week and Comm Trends.
The Customer Inter@ction Solutions Conference & EXPO was designed
by the most experienced team in the industry to provide you with a venue
where you can learn all you need to know to take your contact center to
the next level. The exhibit hall will highlight products and services for
CRM, eCRM and Web-enabling contact center technologies, and the
comprehensive conference program will feature tracks covering human
resources solutions, innovative management solutions, contact center
technology and e-sales/e-service solutions. I look forward to seeing you
at both events.
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