Mon, 2 December 2019
5 Counterintuitive Mistakes Preventing You From Closing Revenue
There are times salespeople don’t make the best decisions that lead to closing deals. These mistakes can cause a loss in revenue. Let’s take a look at the 5 counter intuitive mistakes preventing you from closing revenue.
Devin Reed is a content strategy manager at Gong. He handles all the content marketing strategy courses and is responsible for presentations. He also goes to roadshows, such as Sales Live Miami.
At this roadshow, Devin talked about 5 Counterintuitive Mistakes Preventing You From Closing Revenue. It’s about the five things salespeople think are good practices, and are trained to believe are good habits when in fact, they’re the opposite. These five mistakes hurt their deals and sales conversations. What Devin is sharing is backed up by data.
Devin works for a company that has millions of sales conversations. They’ve analyzed these conversations to see patterns that help them get an idea of the things salespeople talk about the most. Here are the 5 counterintuitive mistakes preventing you from closing revenue.
Don’t use ROI to seal the deal
People make the mistake of using the ROI to close. Finding a way to bring ROI into the conversation is one of the basic strategies taught to beginning sales reps. This strategy is proving to be counterintuitive.
ROI isn’t bad in itself, but it becomes an ineffective tool when it is used for persuasion. Presenting your ROI to the client doesn’t work because the information doesn’t go to the right part of their brain.
The human brain has two parts - the emotional and rational. More often than not, the right part processes information later than the emotional part. If you want to get the attention of your prospects, you need to tap into the emotional side of their brains first. You do this by giving them a before and after story.
“Hey, I was in a podcast and not to brag or anything but that podcast did so well. They were doing this and that. I came on and I did this thing and two weeks later, they saw an X increase in their ROI.” This is an example of having a “before and after”, then diving into the ROI.
When you are able to provide the identifiers with the before and after stories, the emotional pull comes in. Make it a goal to tap into their curiosity instead of just desperately presenting the numbers. A good salesperson always starts with emotion and understands people need to feel before they will give you their ear and show interest. After you’ve piqued their interest, then you can get to the boss to present the ROI. You show them what you can do for them is not only a great idea but also makes fiscal sense.
Another reason why presenting the ROI often doesn’t work is because it’s naively done. Junior sales reps usually speak to CFOs who have years of experience. Their newness in the industry and lack of confidence make their calculations look phony. CFOs don’t find the numbers trustworthy.
Focusing on quantity when it comes to discovery questions
Most salespeople have a discovery playbook with 15 to 30 questions. New sales reps believe it’s necessary to ask them all because they have the mindset the more questions mean more information and eventually, the more chances of closing the deal. While asking questions isn’t a bad thing per se, it can give buyers discovery fatigue. It feels more like an interrogation than a valuable business conversation.
Based on the data, 11 - 14 targeted questions is the sweet spot for the number of questions a salesperson should ask. The article by Chris Orlob entitled Why You Can’t Sell to C-suite Executives shares how salespeople only have four questions to ask C-suite executives.
Tips when asking targeted questions:
Answering objections quickly and thoroughly
Answering quickly shows how ready salespeople are to handle objections but the downside to that is the risk of actually answering the wrong objections. Instead , pause and wait. The benefits go both ways. For the salesperson, pausing creates room to time to think and for the prospect, the pause makes them feel heard.
By the middle of the discussion, the prospect has already decided if they want to actually meet with the salesperson. It’s the salesperson’s responsibility to make sure the conversation is good throughout the meeting so prospects see the value and have a good time. The prospect enjoying the conversation is the most important goal.
Using the enterprise logo when selling
Data shows that salespeople using social proof has actually a lesser success rate. Salespeople may think dropping big company names they’ve worked with is compelling information but prospects don’t share the same perspective. Instead of building trust with the prospect, what it does is alienate them.
The right approach is to use tribal identifiers. This means building a tribe based on shared characteristics. The best salespeople will have three to six tribal identifiers to make the connection more appealing and compelling. For small startup businesses with fewer clients, salespeople can create a hyper-specific profile. This would mean not focusing on the same geography, for example, but instead , targeting companies with the same struggles and goals.
Salespeople need to show their clients they are more than just someone on LinkedIn. They need to invest time upfront if they want to be heard. #SalesFacts
Cold call opening line
Many believe if you want to catch your prospect's attention, give them an opportunity to first say no. The assumption is that using an opening line that allows them an opportunity to say no gives the prospect the power they want to feel in the conversation. Philosophically, you want them to feel comfortable in letting their guard down.
This strategy doesn’t work. Data says there’s a 6.6X increase when, instead of trying to get them to say no, you ask instead, “How have you been doing?”
The potential client answers in the same vein and it causes a pattern interrupt. Your opening line isn’t something that the receiver is expecting.
An opening question like, “Hey, this is Devin. Did I catch you at a good time?” is a telltale sign that it’s a cold call and immediately, guards go up. From that point on, it’s an uphill battle.
Always remember the before and after story because that’s how trust is built. People may not remember you but they will remember your story. You don’t have to be a great salesperson to share a story, you just have to share stories of value.
“5 Counterintuitive Mistakes Preventing You From Closing Revenue” episode resources
Catch Devin’s podcast, Reveal the Revenue Intelligence, where they interview industry leaders who understand how they use their revenue intelligence to win the market. They have a pretty impressive line-up of key interviews. Connect with Devin Reed in his LinkedIn profile.
This episode is brought to you in part by TSE Certified Sales Training Program. It’s a course designed to help new and struggling sellers to master the fundamentals of sales and close more deals. Sign up now and get the first two modules for free! You can also call us at (561) 570-5077.
This podcast is also brought to you in part by Reveal the Revenue Intelligence podcast. It’s about utilizing data to make business decisions instead of just guessing your way through major sales decisions. Visit gong.io for their podcast.
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