Tuesday, July 21, 2009

Uncovering Your Customers Hidden Emotions

Pete Bartilucci was one of eight kids growing up in a crowded house। Now a successful 42-year-old entrepreneur, Pete recently got together with his dad and asked him a question that had been on his mind a long time. “Dad, why were you so tough on Mom when we were growing up?”His dad was taken aback, “What do you mean?” “You were very hard on Mom. How come?”“Son, I had to make sure you kids had food and a roof over your heads,” his dad said, a defensive note in his voice.Pete asked again, “But Dad, why were you mean to Mom?”“Pete, it was tough raising a family….”Pete persisted. “I know, Dad. But why?”His dad was very quiet. Fifteen seconds crawled by like an hour. He leaned back and finally responded. “Son, I was so young and handsome. I had great potential.”Pete looked at him, a little puzzled. “You see, Pete, your mom and I were very young. I had a promising baseball career. But I was madly in love with your mom. We got married when we were 19 and, soon afterwards, she got pregnant. Family responsibilities quickly piled on. Five years later, we already had the fourth child on the way. There was just no time to pursue baseball anymore. I got a job driving a truck, and I did whatever I could to provide for you and the family.”Pete had unearthed a deep emotion. His dad had regrets. He’d never pursued his passion, and he’d resented it over the years. Yet he’d never talked about it; he’d only taken his frustration out on Pete’s mom.Pete learned something he’d never known about his father. He also learned the importance of asking why — and repeating it until he’d dug beneath the surface of the superficial conversations he’d had with his father for many years. It was a painful discussion, to be sure, but a meaningful one about the choices we make in our lives and the prices we pay. Today, Pete and his father are very close, and his parents’ relationship has improved — mostly as a result of that conversation.HOW ARE YOU ASKING “WHY?” Are there ways you can further strengthen your customer relationships or do you already know everything there is to know about them — or think you do? Of course, you’re not going to have as deeply personal conversations with your clients as you have with your loved ones, but asking appropriate “Why” questions helps you understand your customers’ motives.Some customers act out of fear, others out of self-interest, and still others out of a desire to increase profits. Being able to uncover their motives brings you invaluable insight into how your customers operate and what they truly value in doing business with you. For example, a client who seems abrupt, opinionated, short-sighted, or just plain set in his ways may still be feeling the sting of having been burned by previous vendors. Perhaps his boss is in infatuated with their current vendor, and he won’t dare put his job on the line and disrupt the relationship. Maybe he’s under pressure from upper management to produce results not in six months but NOW, or he's competing with his peers for the next job up, or he's already working 80 hours a week and you're pitching for change. No wonder our message seems to be falling on deaf ears!Unearthing our customers’ emotions and understanding where they’re coming from helps us in myriad ways, including:

Understanding better how we can present a solution that’s meaningful to them.
Realizing that the sense of urgency isn't there.
Grasping that we're not talking to the right person.
Discovering we haven’t yet uncovered what’s important to the customer, so we must keep digging.
Try these examples of different ways to ask why — to probe deeper and to better understand what’s motivating your customers:
“Tell me what’s prompting your interest in ….?”
“Share with me what’s motivating your decision to….?”
“What’s causing this to happen?”
“What’s driving this need?”
“What originally led you to this decision?”
“What do you hope to accomplish?”
“Why is this important to you?”
“What is prompting you to consider this option?”
“If you could achieve this result, what will it mean to you?”
“What concerns do you have if you don’t achieve this goal?”
Taking the time to uncover the emotions driving your customers will steer them and you on the right track to a better relationship and greater business success.

It's Now or Never: Giving Business Relationships the Ultimatum

You’ve contacted your veteran customer again and again, leaving voicemails and e-mails, even enlisting his assistant’s help—and still not a peep out of your customer. After repeated attempts to rejuvenate an apparently fizzled business relationship, you’re wondering whether it’s worth the effort to keep going until you reach the point of no return. Research indicates that most prospects don’t buy until after the salesperson communicates with them at least five times! But where do you draw the line? When does persistence turn into harassment?
When you’ve tried everything else to reconnect with warm and fuzzy prospects who’ve been interested in you in the past, or customers who haven’t done business with you in a while, the ultimatum tactic can be very effective. It goes something like this:“Hi, Bob, this is (You) with (Your Company Name). You may recall that you had shared with me…
…the need to ______ (restate a problem he’d shared with you)…or
…the goal to ______ (a desire he wanted to bring to fruition)……I’ve tried to reach you a number of times and have not yet heard from you. Unless I hear from you in the next ______ days or by ______ (give a deadline), I’ll assume you are no longer interested, and therefore I won’t be calling back. However, if this is still an issue with you, please give me a quick reply and a suitable time when we can talk for five minutes. Thanks.”
Surprisingly, an average of 60% of the time, this type of message will breathe life into the contact when every other attempt at resuscitation and communication has failed—enough life, at least, to galvanize your contact into responding to your message.
MAKE THEM WANT YOU
Why does the ultimatum succeed where everything else fails? The psychology behind this is that contacts don’t want to risk missing out on future opportunities. Now your contact can’t get away with saying to himself, “Oh, it’s that rep from XYZ Company. He’ll call again, so I’ll just go ahead and delete the message.”
The ultimatum takes a situation that’s been in limbo and forces it into action. As a result, the salesperson is communicating to his contact that the company’s resources are valuable, including his time, and unless there is a response, he’ll start refocusing his efforts on more productive, profitable opportunities. The contact may even be thinking, “Oh, no, not on my competition, I hope!”
By now you’re thinking, “But if I give my contact an ultimatum and he decides not to call back, game over!” No, it isn’t. If you truly believe your contact has a lot of potential but you don’t want to close doors, trade your no-callback leads with another sales rep on your team who has similar no-callback leads. Just because you’re not calling your contact back doesn’t mean another sales rep from your firm can’t call him—and vice-versa. Sometimes a fresh face — or new voice — is just the shot of adrenalin the contact needs to make a business relationship come alive.
Admit it, it’s kind of fun when you can good-naturedly rub it in your counterpart’s face and say, “Hey, you know that one lead you gave me who you swore I’d never get? Well, I got through with no sweat! In fact, he was waiting for my call and told me he wants to spend money. Would you like to tag along and watch me in action?”
For customers who won’t return your calls, it all comes back to managing your time more effectively and being able to focus on other opportunities with other prospects who may want to do business with you. Remember, customers who only say “Maybe” can end up robbing you of lots of time, energy, and resources that could be better focused elsewhere. In the spirit of Jerry Maguire, you must help your contacts help you, by guiding them towards giving you a solid “yes” or “no.”

Locking-On to Customer Emotion

The lock-on sales question is a powerful tool that allows you to get customers to open up quickly. Instead of becoming bogged down in superficialities, the conversation reveals facts and experiences that really matter. You can use this information to better understand the customer’s emotions, beliefs and values.
A leading research firm has found that customers don’t verbalize their real concerns and problems 80 percent of the time. In other words, most of our time with customers is spent talking about the wrong stuff! It’s not that customers intentionally try to mislead you. It’s simply human nature to try to conceal issues that might reveal vulnerability. Here’s why lock-on questions work: Though people avoid revealing their vulnerabilities directly, they often drop verbal hints about their true state of mind. It’s as if they’re saying: “If you can show me that you’re listening carefully enough to pick up on these clues, then I’m willing to trust you.” The lock-on question shows you’ve listened well, and at the same time allows you to direct the customer’s attention to a particular point, allowing you to move toward a solution quickly.MoreAnother benefit of the lock-on question is that it helps customers clarify their thoughts and feelings. Oftentimes in conversation customers will use words and phrases such as quality, partnership and streamlining the process without really defining them. Lock-on questions prod customers to articulate their problems and expand on their ideas.You begin by inviting the customer to talk about his or her situation. You’re listening for words that suggest underlying emotions. For example:Customer: We’ve been trying to get this project off the ground for several months.Lock-on question: I noticed you said the word trying. What’s worked so far and what hasn’t?Trying is the key word to focus on in this example. It suggests some frustration at not being able to reach a goal.
Another example:Customer: I’m looking for a partner, not a vendor।Lock-on question: Could you give me some specifics of what you mean when you say partner?One more example:Customer: My company has been experiencing problems with our current vendor and we’re looking for someone new.Lock-on question: Can you give me an example of the problems you’ve been experiencing?The power that comes from asking for examples cannot be overemphasized. A customer who reveals a past problem re-experiences the emotional trauma of that problem. In all of these examples, the salesperson is alert for words that suggest emotions. Other words and phrases include: dealing with, concerns, hopeful, seeking, doubts, challenges and having difficulties. These words and others like them suggest that a customer’s needs are not being met completely. Lock-on questions are powerful, so you have to use them sparingly. A conversation peppered with lock-on questions would seem false and uncomfortable and could make customers feel they’re being interrogated. And owing to their personal nature, these questions shouldn’t be used too early in the relationship; otherwise, you may come across as insincere or even sarcastic. Use lock-on questions only after you’ve established some degree of rapport and empathy with the customer. MoreIf you feel the questions are too direct, you can use buffer statements to preface them.For example:“Help me understand…”“Would you mind…”“Could you clarify for me…”The beauty of lock-on questions is that you’re guiding the conversation without strong-arming customers. They’re the exact opposite of manipulative, high-pressure sales “questions” (“What do I have to do to get your business today?”). They’re not about the salesperson’s agenda; they’re about understanding the customer’s needs. They’re a powerful tool, easily mastered, and useful in just about every kind of sale.

Sunday, July 12, 2009

Think Like A CEO!

Good CEOs understand the value of constantly assessing the competition to survive. Likewise, in order to thrive, they must keep on top of trends affecting the industry. Whether your prospects are CEOs or professionals who are deeper in the organization, your best bet for engaging them is to ask questions about these two crucial aspects of business—the competition and industry trends. When you speak about these core issues, you’ll create the opportunity to bring insight and added value along with your products and services.Rather than launching into a pitch about your products and services, the key is to open the conversation by asking some good questions. This will encourage your prospects to talk about the very things that drive and impact their business, and it will give you insight into the kind of business results your customer seeks. The following questions can help you focus the discussion on the future while critically analyzing the present situation. If you can get prospects to ask, “Can I get where I want to go with what I have now?,” no matter what the answer is, helping them to face that question will prove valuable to their business—and to yours—as your prospects come to look to you as a forward-thinking advisor.Use these questions to engage your prospects at a deeper level, and get into their mindset. But use them judiciously, with attention to the prospect’s reaction, and with care not to over-do it. Start with what you consider the most relevant and potentially interesting issue for a particular prospect. Then proceed accordingly, selecting subsequent questions that will lead to a discussion of how your products/services can help attain your prospect’s goals.
What has been the biggest contributing factor to your company’s success?
In the next three years, what opportunities and threats do you anticipate?
What do you think truly differentiates your company from the competition?
How does your company measure progress?
How does your company approach change?
What pending market conditions (i.e., regulation, competitive threats, demographic trends, etc.) might change the way you do business?
How does your company address the competitive pressures of the market?
What issues do you think your company must address or overcome in order to be more successful? What specific steps or actions will you need to take?
What are your goals to increase market share. What’s working well for you? What isn’t?Remember that your prospects’ time is at a premium, so you’re in danger of disconnecting from their wavelength if you try moving too quickly to tactical approaches to qualify or close. The way to connect and demonstrate your worth is by asking the right questions, and zeroing in on what’s important to your prospect. Asking big-picture questions will help tune you into their mindset—and will highlight your added value as an insightful advisor to them—with faster and greater results.

Love the One You're With: Strengthening Existing Customer Relationships

Strengthening customer relationships is like strengthening a marriage. Have you ever faced a situation where you thought your relationship with a customer was still going strong, only to find she’s got her eye on a rival vendor? You come back from a sales meeting feeling confident and secure, only to find a message on your voicemail that your business won’t be up for renewal because a competitor bid lower! You feel so betrayed—how could your customer do that to you after all that you’ve done to support her, without even a hint that she was unhappy with you?
QUESTIONS TO STRENGTHEN EXISTING CUSTOMER RELATIONSHIPS
Wait around for your customer to affirm your relationship status, and you’ll probably hear about it after she’s taken her business elsewhere. Instead, be proactive and uncover her true feelings by asking the following questions:
“What is it that you value most about doing business with us (me)?”
“What do you feel we are (I am) doing right to sustain our business relationship?”
“In what ways are we (am I) helping you to achieve your goals?”
“In what ways can we (I) improve?”
“What changes do we (I) need to make to ensure greater success?”
“If you could change one thing about our relationship, what would it be?”
“What goals would you like to see us (me) accomplish with you in the next 12 months?”
“How can we (I) make your job easier?”
“Would you be willing to serve as a reference for my product or company? If so, can you elaborate on what you would say about us? If not, why not?”
“What will it take on our (my) part to win the business you are giving to our competition?”
DON’T BE AFRAID OF THE ANSWERS
Maybe you’re reluctant to ask these questions because you’re afraid of your customer’s answers. After all, what if she says she isn’t satisfied? What if she wants faster turnaround, greater discounts, and higher quality? But if those issues or anything else are indeed bothering your customer, you need to hear it from her before she runs into the arms of the competition. So embrace negative answers—respond to them with gratitude and a desire and determination to meet her requests by asking for things in return.What if, deep in your heart of hearts, you already know your service or quality leaves much to be desired? Then you don’t need to ask her those questions—you need to fix the problem, and fast. If you don’t, your competition will be happy to do it for you!If it’s better pricing she wants, persuade her to commit to purchasing greater volume. If she wants faster turnaround, price those projects at a premium so that they receive the extra attention, commitment, and support that your customer values.Like a marriage, a business relationship is always two-sided, so don’t be afraid to ask what you can do to enhance the relationship while asking for something in return. If you do, the answer to the age-old question “Can this business relationship be saved?” has a much better chance of being “Yes!”

Eliminate Waste and Reduce Costs

What would you say if I were to hand you a check for $25,000? $250,000? Before you get too excited, I’m not going to do that, but I am going to tell you how you can find that kind of money and add it to your bottom line. No, it’s not by terminating employees or instituting pay cuts, two methods companies throughout the world are using in an effort to survive the drastic downturn in the economy. If you want to cut costs and save thousands, if not millions, of dollars each year, the most effective method—and one that will have long-term benefits—is to do so by eliminating waste, not people. How do you do that? Simple: Ask your employees. There is waste in every organization. The challenge is to identify that waste and then eliminate it. Your employees are the experts. They see where the waste is—in time, procedures, and materials—throughout the organization. You need to ask them to identify that waste and to make suggestions on how to eliminate it. When you do, you will build morale by making those employees feel like you value their ideas—and you will improve your bottom line. Many employee suggestion programs fail for one major reason: Executives are only interested in ideas that will save the company $100,000 to $1 million. They fail to identify the low-hanging fruit, the small savings that quickly add up to big money. Let me give you an example. My company, the Service Quality Institute, offers a program called BAD—Buck a Day—that asks each employee to identify a way to save just $1 a day. It has been used successfully during the past 30 years by 3,000 companies throughout the world. Right now you are probably thinking, “Why in the world would I go to the trouble of instituting a cost-savings campaign if it’s only going to result in savings of $1 a day?” I’ll tell you why—because that $1 a day adds up to a lot of money, money that can make a huge difference in your bottom line. Consider this: There are 250 working days in a year. If you have 1,000 employees and they each identify a way to save $1 a day, you are looking at a yearly savings of $250,000. If your company has 100 employees, your annual savings would be a respectable $25,000. If you doubt the impact of cost reduction and waste elimination, look at service leaders like Amazon, Costco, Wal-mart, and Southwest Airlines. They are successful for many reasons, including their ability to reduce costs at every level of their organizations. Then they pass those savings on to customers through reduced prices. The result? Increased market share and increase profits. When it comes to instituting an employee suggestion program that will be successful, I have some suggestions of my own that I’d like to share with you: Keep it short. Our BAD program, for example, runs for just 30 days. A short campaign keeps enthusiasm high. Make it fun. Dry, dull campaigns get little attention, which means they get few results. On the other hand, when you incorporate fun and humor, employees become more involved. Build it on recognition. You don’t have to offer monetary rewards or trips to Las Vegas to get employees to participate. Recognition is a much stronger motivator than money. Recognize employees in a timely manner through public praise. That might include an article and photograph in the company magazine or a simple pizza party. Involve everyone. The backbone of a successful employee suggestion program is to get all employees involved. That means everyone from frontline employees to executives. The idea is to get everyone to consider his or her job and ask, “Is there a better, less-expensive way to do this?” Implement ideas quickly. Nothing will kill a suggestion program faster than a long lag time in implementing employees’ suggestions. If you don’t implement ideas quickly, employees will lose interest—and faith—in what you are trying to accomplish. An effective cost-reduction campaign is based on the assumption that employees have worthwhile ideas. And those ideas can mean the difference between your company’s failure and survival. If you head a publicly held company, you can dramatically improve the value of your stock by reducing costs and eliminating waste. On the other hand, if you miss your earnings projection by just one cent, the value of your stock could plummet by 20 to 25 percent. In today’s dismal economy, if you want to survive and grow, you must look for ways to dramatically eliminate waste and reduce costs. Ask your employees to help you and you will be amazed at the results.

Exceptional service, exceptional returns

How many times have you seen an advertisement or heard a commercial in which a company proclaims: Our service is unparalleled! Service with a smile! Then, when you do business with that company, that service and those smiles are nowhere to be found.
That’s not the case with the folks who run the Oceanaire Seafood Room in Minneapolis, Minnesota. Their web site proclaims, “Where exceptional seafood meets exceptional service.” And that’s not just lip service; they deliver what they promise. They know the power of customer service in instilling customer loyalty, boosting word-of-mouth advertising, and adding to the restaurant’s bottom line.
Let me give you an example of the Oceanaire’s service and its impact on customers. Pat and her husband Bob decided to celebrate their anniversary by dining at the Oceanaire Seafood Room. When Pat called to make a reservation, the conversation went like this:
“Is this a special occasion?” “Yes, it’s our anniversary.” “How many years have you been married?” “Twenty-eight.” “That’s wonderful. Does your husband go by Robert or Bob?” “Bob.” “Thank you. We’ll see you at 7:00 Saturday evening.”
When Pat and Bob entered the Oceanaire the following Saturday, the hostess greeted them by name, adding, “Happy Anniversary.” After they were seated, the couple was pleasantly surprised to see that, printed at the top of each of their menus was this: Happy 28th Anniversary, Pat and Bob.
The rest of the evening was beyond their expectations—great food, superior service, and a wonderful ambiance. Even though the dinner took more out of their budget than they normally would spend on even a special dinner, they agreed that they would return and not wait for a special occasion to do so. They also told everyone and anyone who would listen—family, friends, and co-workers—about their wonderful experience at the Oceanaire.
The folks at the Oceanaire understand the importance of exceptional customer service. They understand that giving their customers more than they expect doesn’t have to cost a lot—but the financial rewards are tremendous. They understand that word-of-mouth advertising not only is much less expensive than any advertising they could pay for, it also is much more credible. When someone gives you a personal recommendation for a business, you’re much more likely to believe them than you are any newspaper ad or TV commercial.
No matter what business you’re in, you can earn the loyalty of current customers and attract new customers by providing service that is so exceptional it results in powerful word-of-mouth advertising. To do so, however, you must enlist the help of everyone in your organization. And that starts at the top. Management must make a commitment to customer service; they must develop a service strategy.
That strategy begins with hiring people who genuinely enjoy working with people and then training them to meet your service standards. You can bet the receptionist at the Oceanaire didn’t just happen to ask Pat why she and her husband were making a reservation at the restaurant; she had been trained to do so. And the other employees followed up, which made the couple’s dining experience a memorable one, one that they eagerly and enthusiastically shared with others.
At the core of a service strategy is the belief that no transaction is complete unless the service customers receive is sufficient enough to motivate them to return and do business with the organization again and again. The folks at the Oceanaire certainly accomplished that goal with Pat and Bob.
What kind of service are you providing your customers that will earn their praise—and their loyalty?