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Know Your Prospects and Their Commitment Will Follow
 Sales professionals often seek to strengthen the informal commitments they have with the companies or prospects with which they regularly do business by trying to implement mandatory or contractual agreements. This may not necessarily be the best path to pursue.
For example, Jeff, a customer relations manager at a mortgage company, has several informal commitments from builders that he wants to formalize. His company has an excellent reputation among home builders in his area and many have indicated that they were committed to using his services and company.
But Jeff has no agreement or formal arrangement with any of them — which, in his mind, minimizes their true commitment level. Consequently, he contacted me asking for advice about what possible actions he could take to break through the barrier.
My general advice to Jeff ― and to salespeople or business owners in similar situations ― is not to spend time trying to get a mandatory contract. Rather, deliver quality, differentiated services and products — and commitment will follow.
In my article from last month, “Follow the Four ‘Knows’ to Sales Success,” I advised people to:
- Know Your Purchasers. In other words, you have to understand buyer profiles and the marketplace in which you operate. You have to listen, listen and listen to effectively build a relationship with your prospective buyer, clarify their needs and wants and know when to close the transaction.
Drilling deeper into the process, you must nurture your business relationships so you can secure the information needed to earn more business. In general, formal agreements reflect a high level of trust between the companies or parties ― and a solid relationship must precede any such agreement.
Further, if the relationship is based on trust and value to each party, a formal agreement is rarely needed — so focus on building the relationship instead.
- Grow the Relationship. Meet with the people with whom you are cultivating a stronger relationship on the golf course, at a restaurant, on the building site, at the fitness center ― wherever you can spend time with them on their appropriate turf. Find out more about them, their business and the challenges they face — i.e., in Jeff’s case, about securing mortgage funding. Find out what worked for them in the past and what didn’t. Determine what they want from a relationship with your company ― a better deal, better service, improved response time, etc.
- Know — and Articulate ― What Differentiates Your Company From Your Competition. Make sure you understand what sets your company apart and how it stacks up against the competition. For instance, Jeff needs to understand that a builder wants more than just the mortgage rate. He wants service. You have to articulate all of the advantages that come with doing business with your company now and in the future.
- What Will It Take to Get the Business? Ask them...then, listen, listen, listen. If you have developed an effective relationship, your counterpart will tell you what it takes to earn their business. If your company can deliver what is asked and it makes good business sense to do so — then do it.
If you can’t meet those needs under your company’s operating parameters (and the needs seem reasonable), work with your management to see if your company can make the necessary adjustments.
If commitment cannot be reached at this point, continue to develop the relationship so that additional buying needs can be discovered ― and you can earn the business in the future.
- Have a Clear, Predetermined Plan or Agenda for Every Time You Talk. Inexperienced sellers simply make “howdy calls.” Experienced sellers try to move the prospective customer "one step further" in the sales process. Are you achieving your sales call objectives with every contact?
Analyze your company’s sales process to determine where it may be breaking down for you. If you have a well-defined process, the problem (and solution) may be staring you in the mirror. Get some feedback from trusted colleagues as well as your sales manager. Some slight adjustments may be all you need to make.
You can never learn too much about the prospects in the marketplace you are trying to serve. When they see you working hard to understand them, their business and their special needs and challenges, you will have taken a major step in getting their business.
My company sends brief, online surveys to customers and prospects in order to quickly find out what they might be thinking. While a survey never takes the place of live conversation, the data can certainly help the seller focus on key trends in the marketplace. Consider trying a brief three- to six-question survey — and use the information gleaned from it as a door opener for your next conversation.
In this exercise, Jeff did not get help on how to move his customers closer to a formal agreement. What he did get was an idea about how to strengthen his informal agreements so he and his customers can both benefit.
If you serve your prospects or customers well, you won’t need an “exclusive.”
Mike Owen is vice president of human resources, sales, marketing and business development for Empliant, Inc. of Chapel Hill, N.C. Owen has 30 years of human resources, operations and sales management experience. E-mail Owen for more information.
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Residential Marketing Courses and Designation Programs for Sales & Marketing Professionals
The Institute of Residential Marketing (IRM) offers four designation programs for sales and marketing professionals:
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For more information on these designation programs, click here or call 800-368-5242 x8192. To locate a MIRM in your state, visit www.nahb.org/MIRM.
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