There is a common misconception that failing sales people lacked the winning sales skills or that their product was inferior in some way. When we compare the majority of competing salespeople and their product feature sets, they are relatively equal. This implies that additional factors differentiate the winners from the losers, some of which maybe outside the salesperson’s control.
Here are the top nine reasons:
1. Failure to eliminate risk
Buyers can never be certain that they are buying the correct goods. Despite their confident attitude, they are filled with fear, anxiety, and doubt on the inside. The capacity to reduce perceived risk is a critical factor in choosing who receives the contract. Here, the big companies will have an advantage over the smaller ones as the prospects will believe in their apparent ability to have available resources to fix any of the prospect’s problems.
2. The Incumbent Advantage
The established vendor has a significant sales cycle advantage and is more likely to gain business by default. Unseating an existing vendor has a one in five chance of succeeding.
One of the proof points for this is a VP (Vice President) of Purchasing of a leading tech company explaining to me that he found it difficult to switch vendors. It was an unnecessary pain to analyze whether he should make that switch or not. Unless there are negative situations that sour their working relationship, he would prefer working with his existing vendor.
3. Focus on business solutions:
A recurring element is that both winning and failed salespeople are extremely knowledgeable about their products. The victors, on the other hand, will continue to demonstrate their worth as a business partner with the expertise to handle the customer’s challenges. They demonstrated to the prospect that the solution they were selling would solve a current business problem, thereby enhancing the worth of the product beyond its apparent value in light of its price. They focus on solutions that show results beyond regular results thereby differentiating themselves from the competitors.
4. Highest level of executive access:
Because every large transaction requires executive clearance, a salesperson’s goal is to make a genuine face-to-face connection with a busy executive. However, breaking into the C-suite is the most difficult part of the sales job. Within the sales cycle, there is a direct association between winning and the number of interactions the salesman has had with the executive. Every salesperson tries to gain the CEO’s attention but very few do, because they do not understand what it takes to gain that level of access.
5. Pre-sales resources are insufficient:
The complex sales process is usually a collaborative effort including presales technical professionals. Losers were frequently blamed for having inadequate pre-sales resources or not having experienced professionals involved in meetings from start to finish. A great distinguisher for the prospect is when competitors have credible, dedicated and customer-oriented people as a point of contact from the beginning. The experience or dedication of such professionals inspires confidence in prospects and makes them believe in the competence of the organization as a whole.
6. Inefficient exchange of information
The cornerstone of all sales is effective communication. Winners are able to craft convincing messages that resonate with evaluators across the business as well as decision makers at all levels. It is tough to convince skeptical buyers but going gets tough when the message presented to the prospect is not persuasive enough for them to think that it applies to them. It is important for salespeople to tailor their message to fit the needs of every prospect. A wide and vague presentation will not convince the customer as the right fit.
7. Out of range pricing:
Customers don’t always choose the cheapest choice. Evaluators who are astute understand that there will always be a low bidder. The prospect has a price range that they are willing to spend, which can be anywhere from 10% to 25% greater than the lowest offering. Solutions that are priced outside of this range are rarely chosen. Highest priced services or products will have to work harder than ever to justify their price point, especially when competitors with a lower priced solution are a better fit for the organization or are simply offering equally good levels of quality.
8. Absence of an internal mentor:
The winners build an internal coach within the account, whilst the losers do not. Coaches are evaluators who give confidential information regarding the selection process, competitive status, and assist the seller in determining his or her next steps. It is important for the sales representatives to have an experienced person on the team to coach them from the ground up on the particular sales technique for that organization. He/she should teach them on how to respond to questions and do something for the prospect using their available resources. This mentor also gains the trust of the buyer by being an industry expert and holding proprietary information.
9. They’ve been outsold:
Successful salespeople develop credibility and keep account control. Losers live in a world where there isn’t enough knowledge and salespeople don’t know what they’re doing. Those who show up to presentations unprepared are ineffective salespeople. They don’t grasp the prospect’s way of doing business or the solutions he or she currently has in place. They also have no idea what problems the prospective buyer could be experiencing. They want the prospect to conduct the research and let them know what they require. Such salespeople have no understanding of what they’re asking the prospect for or why they’re asking it. This demonstrates their ineptness. Whereas, great sales people come fully prepared so they can have knowledgeable meetings and make meaningful relationships. They do their research and are honest about what they can help with and what they cannot.
CONCLUSION
Losing is usually an unpleasant, demoralizing, and frustrating experience. Salespeople have to take a step back and evaluate where and how they went wrong after they lose out on a deal to a competitor. Not all factors might be in their control but it is a wake up call that they need to change something in their next meeting or risk continuing the same cycle of failure in their world of incompetence.
