Are they being served?

MASTERCLASS:With buyers slower to commit, sales people have to work harder and come up with new approaches to ensure they can sell, sell, sell

DURING THE boom days of the Celtic Tiger, products and services almost seemed to sell themselves. Now, in more difficult times, sales people have to work a lot harder to seal a deal and need to be smarter and more flexible in their approach to winning business against stiff competition.

Organisations and individuals are still buying, but they are slower to commit and more cautious. They also want real value for money. Those who were once too busy to notice prices and service levels now have plenty of time to look at what they’re being offered and, if they don’t like it, to shop around.

“The selling climate has changed significantly and sales people need to respond,” says Robert McKernan, managing director of McKernan Training Solutions. “Those who adapt can still do very well even in a downturn. There is still a vibrant market out there but selling to it demands persistence, flexibility and creativity.”

The first thing to realise, McKernan says, is that most buyers are under budgetary constraints. The second is to appreciate that the decision-making process is taking longer because in many cases purchases now have to be signed off by more senior managers.

“This is the market so work with it,” he advises. “Give buyers the ammunition and information they need to make the buying decision themselves or to bring a strong proposal to the person who will make the ultimate buying decision. Recognise that big companies in particular will expect 20 per cent off what they’re buying and look at what you need to do within your operation to be able to offer them that sort of deal.”

McKernan says companies need to put offering value for money right at the top of their agenda. “When you go in to meet a customer show them how you can save them money, or provide them with a more flexible service or add value in some other way. For example, can you extend their credit period or offer them a payments plan or add an extra service such as insurance or warranty?”

When order books were full it was easy to get out of touch with customers and McKernan says it is time to get back on top of that relationship. “Go and talk to your customers and find out what their real needs are,” he says. “More than likely their business will have changed and you need to know what their priorities are. Ask them straight out about their purchasing criteria and purchasing process and sell back to them based on that.”

Because so many companies have let staff go, Conor Morris, chairman of the Sales Institute of Ireland, says it is imperative to make sure you are still talking to the right person within an organisation. “We all feel comfortable talking to someone we know, but they may no longer be as central to the procurement process as they once were and you need them to introduce you to the person who is,” he says.

“It is also worth noting that in many companies decision making on purchases has moved up a level to more senior management. They are going to expect a high level of professionalism from sales staff who will need to be more polished, better researched and more able to engage with them on the key issues.”

As buyers have become harder to pin down, who you know has become even more important. Referrals, personal recommendations and testimonials can all play a part in getting access to potential customers while networking is also central to getting on people’s radar.

“The opportunity to get referrals and be listed in members information and contacts is one of the main reasons why people join organisations such as ours, particularly in a recession,” says Mark Fielding, chief executive of the Irish Small and Medium Enterprises Association. “If a member is looking for a product or service they will normally look within the organisation first.”

Wearing his buyer’s hat, Fielding says his biggest gripe with today’s sales people is that they focus on the features of a product or service and not the benefits.

“The market has changed and it’s the benefits that are of more significance now, but a lot of salespeople, particularly younger people with no experience of selling in a recession, still haven’t grasped this,” he says.

Top tips

Ask for referrals from existing customers and offer them something in return.

Keep close to your customers. Conduct regular reviews and show yourself willing to adapt to new situations.

If you have more than one sales channel review the resources allocated to each.

Be creative with your product or service. Up sell, cross sell or bundle your offering.

Invest in training your sales team.

Advertise, as rates are keen, and do more promotions to raise your company’s profile.

Offer customers free trials.

Monitor your sales team. Make sure you know what business they are chasing and set targets.

If sales staff are not reaching targets replace them.

Find ways to keep sales staff motivated during the downturn.

Don’t price yourself out of the market.