We have the best job in the world! In sales, we get to meet new people every day. We are afforded the gift of learning about different industries almost every day. We get to meet a lot of people from all walks of life. We have it made!
When it comes to sales, how is your close ratio? You may say smaaaall and then wonder why. It may be because you don’t really meet people. “ I mean really find out what they do, how they do it and what they really have for needs.”
I realized a certain synchronicity a while back. As an independent consultant in the commercial factoring industry, I realized that most potential clients will tell you that they need a “line of credit.” Of course they will say this as it is all that they know. Do they know about the 60+ non-institutional cash flows you have a “solutions?
” Of course not!
Having been in the cash flow industry for 22 years as a broker/consultant, as an employee of other factoring companies and as an owner of a factoring company, my search for the secret to sales success in this industry has been found. The secret is.. Ready?? .. Conduct your sales calls as interviews. Really. That is it! Make believe that you are a news reporter with the ultimate desire to get to the bottom of the story. The main question of our client’s story is “For what do you need money?”
During every training class for which I am afforded the opportunity to teach, I spend a certain amount of time discussing the presentation of commercial funding services. During this time, I always espouse the “80/20 Rule” to the class.
The “80/20 Rule” simply states that as you sell you should be “gathering information” not pontificating. You never get to gather information when you are talking. Therefore, to be a good gatherer of information, you should have your client spend a minimum of 80% of the time speaking while you use your 20% to ask questions like a good interviewer. You must use your questions to send the conversation back to your potential clients “court” while utilizing, at times, silence to keep them speaking.
We tried it in class, keeping the following theme in mind: You are not here to sell a funding service; you are here to “gather information. It is only after you gather information, that you are able to supply the proper solution.
Factoring Broker Training Example:
Broker: Tell me about your business.
Client: We run a toy manufacturing company.
Broker: Hmmm; what types of toys do you make.
Client: Plastic toys for younger children with a focus on safety.
Broker: Safety?
Client: Yes, we found a great niche in safety toys. All the bigs want safety toys.
Broker: What do you mean by “Bigs?”
Client: You know – Toys R Us, Walmart, Target those types of customers.
Broker: Hmmm – how fast do they pay you?
Client: That’s a problem. It seems that they pay me when they want to; 75, 90 even 120 days.
Broker: Wow – that must really stretch your resources?
Client: Yes, if you want to do business with them, you gotta get used to being paid in 75 to 120 days.
Broker: Then, how do you pay your suppliers??
Client: Slowly – they are always calling to see when my next check will be coming. That’s a real headache.
What the consultant has done in this example is to use his/her speaking time to steer the conversation until he/she finds the “needs” of the client. After, all the consultant has to do is re-state the “real” needs and to explain how the funding programs offered can be used to solve the cash flow problem(s) and enhance the relationship with their suppliers. No selling required! [After all; do you really need to “sell money?”]
Another tip would be to adopt a “final question” into your interview with your potential client. “In a perfect world, with a perfect cash flow, for what would you use your new found money?” The answer will steer you directly to the need of the potential client. It will amaze you!
Keep the client speaking.
Millennium Funding conducted an experiment for 3 months during which we asked Consultants one simple question. We then tabulated what percentages of consultants were able to answer. The question? “What does your client do?”
Would you believe that only 7% of the consultants asked that question were able to answer? Amazingly, these consultants obviously spend very little time listening to their potential clients during both phone and in-person meetings.
It is amazing how much you will learn about your client and the issues he/she is facing if you allow yourself to hear your client instead of worrying about speaking at and/or selling to your client. You are there to be a “solution,” not a salesperson!
So – in the future, if anyone asks you how you became so successful. You tell them that a wise man once told you that; The secret to good communication is…Listen!
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