A good way to think about marketing is to consider it a four-stage process that goes from Prospect to Customer. Each stage has a program of marketing activities that move a prospect along the path to a sale.
Attract activities make a broad audience of possible prospective customers aware of the selling organization and promote its Capture activities. Attract activities include advertising, brochures, industry events, public speaking, published articles, press mentions, mailings, etc. Capture activities increase a prospect’s knowledge of the selling organization through a value-added relationship and tie directly to Convert activities. Continue reading How marketing can turn a prospect into a customer. |
Category Archives: Sales Matters
Posts in this category relate to activities and operations intended to increase demand for what an organization offers its customers.
Three Steps to Selling a Work Plan
Follow the three steps below to prepare and present a professional services workplan for a prospective customer. Those who hire service providers should also study the steps to understand how the best providers think through what they propose to do for you.
To calculate a price for a body of work, a first prepare a plan that spells out:
- Tasks: what exactly will be done.
- Personnel: who, with what skills and experience, will do what.
- Time: how long it will take assigned persons to complete their tasks.
- Cost: the number of hours for each assigned person multiplied by their billing rate and summed.
When the service provider presents the work-plan and the price to the prospective buyer, haggling often ensues. The result is usually frustrating for both parties with the provider getting a lower price for the same work effort and the prospect feeling gouged.
The prospect wants the work at a price they can afford and the contractor wants a fair price given what it will take to perform the work. The problem is that both parties experience tension from their own frame of reference, and try too hard to close the deal in one step. Fortunately, there is a straightforward process to slow things down and, if followed to-a-tee, markedly increase the odds of a smooth progression to a signed contract.
Start with the list of the tasks required to accomplish a prospective client’s specific objective. Then follow these three steps precisely to maximize the chance of landing a project to perform the work at target rates:
- STEP 1 – Agree on the tasks to be completed: Arrange a time to sit down with the prospective client to review: their objective, the value of achieving it, and each task required to secure it. Discuss each task thoroughly and without regard to who will perform the work and without any mention of billing rates or price. The focus at this point is entirely on what must be done to achieve the desired result and the enormous value of so doing. Get your prospect to add/change/delete tasks so that they develop a genuine sense of ownership of the taskplan.
- STEP 2 – Agree on who will perform each task: Once the task-plan is agreed to, review the resources required to perform each task to completion with excellence and how long it will take a qualified person to perform them. Point out that less qualified people will take longer and not do as good a job but will be less expensive per hour. Do not dwell on rates or price at this point in the process. Only once the allocation of resources and durations are agreed to is it time to proceed to step three.
- STEP 3 – Compute the price: Share a schedule of hourly billing rates for the selected resources. Note billing rates for each person should be supported by evidence that other customers have paid the rates quoted for similar work by the same person. Multiply the hours required for each person to perform their assigned tasks by their billing rate and sum the result to compute the total price of performing the complete set of tasks.
If the client balks at the overall price, revisit steps 1 and 2. See if there are any tasks that can be revised or resources that can be adjusted to reduce the scope and total cost, rather than just lowering your rates. Consider offering a one-time credit, but avoid permanently reducing your standard billing rates.
Throughout the process, keep the focus on the immense value the work will deliver to the prospect. Position the cost as a small fraction of that value.
By methodically working through these three steps, you can build a strong, mutually-agreed upon foundation for the engagement – maximizing the chances of a successful sale at your target rates.
Prepare a separate exhibit for each step and go through them one at a time incorporating the edits from the preceding steps right then and there in the meeting. If the edits are too extensive, stop the process and go back to the office, make changes to what has been covered, and arrange another time to meet again to complete the three steps.
Throughout the process make sure it is clear to the prospect that there is great value to the output of the planned work effort. Express the value in the form of a specific dollar figure. Get the prospect to share their perception of value before discussing the work plan so it will be easy to point out in step three that the cost of doing the work is but a fraction of the value.
How to handle a disgruntled client.
When you have a disgruntled client, do the following three things in order to get back on track.
1. Unload the Negative
In a face-to-face meeting, first invite your client to inform you of all the things that are bothering him/her in great detail. Ask clarifying questions to draw out and completely understand exactly what the trouble is.
It is very important to repeat back each point in order to get explicit confirmation that you understand exactly what has been said. It is equally important to avoid contradicting the client, imposing your views, or defending against what is being said in any way.
This task is complete when the client has said everything that is on his/her mind and when you have recapitulated with a complete summary of all of the points that have been brought to your attention. While you may be itching to tell your side of the story and to correct any misinformation, stay calm, repress such urges, and stick with the guidance above.
It takes great self control to do. Just keep asking for more and recapitulate again, until the client has no more to say and they are completely sure you have heard them accurately. The point is that it will be a great deal easier for your client to hear and listen to you after they have been heard.
2. Transition to Positive
In the same meeting, next establish a basis of trust and credibility with a forthright, honest and sincere apology for anything you have done wrong and a firm statement about your interest and intent to do what it will take to make things right. Every sword still in its sheath must be laid on the table so that there are no barriers between parties which would inhibit moving forward. Ask the client if s/he would like to hear your perspective on the same points just raised. If so, share your version of the facts.
The objective is to create an atmosphere of mutual interest and understanding that leads naturally to a joint desire to move forward. If the client is not interested in your side of the story or if they refuse to imagine that there is anything you could do to get on track for success, then there is not much point in going further.
3. Take Positive Action
The third step in the same meeting is to make a concession so that your client feels they are getting something to make amends even if you still believe their claims have no merit. Then lay out and initiate actions that prove you are committed to moving forward and to make things right. Positive action, no matter how small, is absolutely vital to close out the meeting.
The number one reason things go wrong is lack of management attention. Assure your client that you will stay involved in order to make sure things stay on track and their needs will be met. Then follow through by paying attention, staying in touch, and making sure things come out right.
Each of these three steps must be taken and worked through to completion in one session and in the order presented. To prepare for the session, compile the facts as you understand them so that in step one you can be listening to discover what they client knows or has experienced that you may not know and so that in the second step you have an organized, orderly and unemotional presentation of what you have to say.
Be creative in step three. Find a way to give something in order to get something so that both parties feel that they have come out ahead and to lay the groundwork for a long and fruitful relationship.