Do you need to lose 10 pounds? Are you exercising as much as you need to? What about your eating habits – should you be eating healthier?

I bet there are several things you need to do to be healthier that you’re not doing. Is it because you don’t have a need? Nope. It’s because ‘need’ is not your criteria. It might be a time issue, or a priority issue. You might be in denial. Maybe it’s because you need agreement from a spouse.

Let’s take this thinking to sales. Sales professionals search for folks with a ‘need’ to sell their solution to, yet their closing rates are low. When I began training sales folks in 1987 the close rate was 8%. Now it’s between 4-5%. One of the reasons for the failure is the belief that someone with a need is a prospect. Sellers are seeking out the wrong people.

This focus on ‘need’ was initiated by Dale Carnegie – in 1937. And yes, sadly, much of modern sales is based on the same precepts Carnegie espoused in How to Make Friends and Influence People. Find folks with a need. Establish a relationship. Then sell them what (you think) they need. In 1937, people needed sales folks to help them explain how to resolve problems and they were a respected, necessary profession.

But with the internet providing content and solutions, with global communications now possible so an entire team can be involved with decision making regardless of their location, it’s time for some new thinking. A buying decision is no longer as simple as finding someone with a need: it’s a risk management problem before it’s a solution choice issue. ‘Need’ is not the reason people buy. Risk is.

THE RISK OF CHANGE

The biggest reason folks don’t change or do something different is risk. Unless people fully understand the risk involved with a possible change, or the downsides it might cause to their stability, they will maintain their status quo. After all, it’s been ‘good-enough’ until now.

I’ve spent decades unpacking decision making and change and developing change models for sales, coaching, leadership, and healthcare.  What I’ve discovered is change isn’t as simple as merely doing something different. To actually resolve a problem and do something different several things musts occur:

  1. All information about the problem must be gathered and assessed. Unless everyone and everything that’s caused and maintains a problem provides input does it even get defined as a problem.
  2. Once identified as a problem, people try to fix the problem using workarounds or known resources. They do not begin by going ‘outside’ for a fix as that would bring unknowns into the equation and cause unknowable risk.
  3. Only after a workaround proves unworkable are outside fixes considered. But these are also problematic as the risk of using anything outside the system is unknowable. Everyone must gather to assess the risk of fixing the problem with an external resource. If the cost of the fix is deemed higher than maintaining the status quo, the problem will be maintained.

It’s only when it’s understood that the risk of bringing in something new won’t break the system, and there’s buy-in for specific fixes, does everyone agree to look outside for a solution and self-identify as buyers and become prospects.

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The same applies with buyers. People only make a purchase when they understand and can manage their risk of change, regardless of need. No sales person – or coach, or leader – can understand that risk as it’s unique and idiosyncratic to a specific situation. The question then becomes: how can sellers facilitate a buying decision when much of it involves off-line decisions that must be made before people even self-identify as buyers?

WHEN DO PEOPLE BECOME BUYERS?

There are 13 steps in a buying decision; in only the last 4 of them (10-13) do people consider themselves prospects. Before that they’re merely people seeking to solve an internal problem; they can’t even know the extent of their need until they finish assessing the people, change elements, buy-in problems and possibilities, and know their risk of change. Not to mention they start off believing they can solve their own problem and haven’t yet determined they have any need at all. Sadly, even when our solution might obviously serve them, they won’t notice until then.

If you begin by seeking out folks with need you will

  • pose biased questions to provide you enough content to pose more biased questions that produce biased answers;
  • listen for a hint that folks ‘need’ your solution so you believe you’ve got a real prospect (hence your pipeline is filled with folks who will never buy);
  • pitch according to what you think you heard and you think they need, a push strategy which may turn not-ready-to-buy people off – people in their early stages of discovery but who WILL become good prospects once they’ve gone through their steps and understood their risk;
  • overlook folks who really may become buyers once they’ve traversed their steps of change.

And the time it takes them to figure out their risk is the length of the sales cycle. They will do this with you or without you. Right now they’re doing it without you, and you’re closing only those who have finally figured it out.

But by seeking out people who are already in the process of trying to solve a problem your solution can resolve you can quickly and efficiently facilitate them through to a decision and create trust.

By restricting your prospecting to folks with ‘need’, you’re seeking people who either don’t know they need you (and you must convince them you’re right), don’t recognize a problem at all (and you must convince them you know more than they do), or are in the process of solving their problem and haven’t yet determined their risk (great prospects who haven’t yet self-identified as buyers).

So your choices are: wait (and keep calling, lowering your price, keep them in your pipeline, waste time on them, etc.); or help them figure out their risk (and sales is not involved here).

TIME FOR NEW THINKING

With a known 5% close rate, it’s time for some new thinking. I’ve got a question, and it’s not a simple one to answer: Do you want to sell? Or have someone buy? They are two different processes: the buying decision process on the Buy Side, or the selling process on the Sell Side.

By focusing only on the Sell Side, you either keep prospecting until you find those who have figured out their risk already and self-identify as ‘buyers’ (5%) or keep them in your pipeline, waste a lot of time chasing them, and never close.

I invented Buying Facilitation® (BF) for sellers to find prospects in the process of trying to solve a problem they can resolve – those who WILL buy once they understand their risk – and facilitate them down their 13 steps of change and decision making to the point where they self-identify as buyers. It involves

  • listening for systems (to avoid the bias in standard questions and to hear the underlying issues conventional listening may not pick up);
  • use Facilitative Questions (a new form of question I invented that lead people down their steps of change to their decision making criteria with no bias from the Asker);
  • use Presumptive Summaries (so they recognize what they’re missing in their thinking);
  • traverse the 13 steps (to ensure people assemble all the right people and search out proper workarounds. It might lead them to possible competitors. But they’d do this anyway. Might as well serve them and engender trust.).

Once people recognize they have a problem, know precisely how to define it, can’t find an easy fix within their sphere, and understand their risk of change, THEN self-identify as buyers and trust you. They won’t buy from anyone else, the process has taken you a quarter of the time a normal prospecting engagement would have taken, and you’ve got a competitive edge.

Seeking out people with a ‘need’ leads to low close rates and a lot of wasted time running after people in your pipeline that either aren’t ready or won’t ever be buyers. The question is: Do you want to sell? Or have someone buy. Your choice.

_______________________

Sharon-Drew Morgen is a breakthrough innovator and original thinker, having developed new paradigms in sales (inventor Buying Facilitation®, listening/communication (What? Did you really say what I think I heard?), change management (The How of Change™), coaching, and leadership. She is the author of several books, including her new book HOW? Generating new neural circuits for learning, behavior change and decision making, the NYTimes Business Bestseller Selling with Integrity and Dirty Little Secrets: why buyers can’t buy and sellers can’t sell). Sharon-Drew coaches and consults with companies seeking out of the box remedies for congruent, servant-leader-based change in leadership, healthcare, and sales. Her award-winning blog carries original articles with new thinking, weekly. www.sharon-drew.com She can be reached at sharondrew@sharondrewmorgen.com.    

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July 22nd, 2024

Posted In: Change Management