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Sales Relationship-Building Strategy 1: Promoting Shared Values

Earlier we introduced five strategies for building stronger relationship commitment and trust in the selling process.  Now let’s dig a little deeper into one of these strategies:  promoting shared values.

What are “Shared Values?”

Shared values are simply beliefs or principles commonly agreed upon between exchange partners (customers, prospects, channel partners, etc.).  Strong shared values indicate two people are like-minded with regards to what is important or unimportant, and what is right or wrong.  While “shared values” sound like deep, complex sets of beliefs (they may be), they may also be fairly mundane interests like sports, hobbies or activities if they are truly important to the exchange partner.  Interestingly, shared values is the only component research has shown to impact both relationship commitment and trust at the same time. 

It’s a concept with which we’re all familiar.  Each of us has met people with whom we’ve “hit it off” very quickly.  Many times, the connection is made due to the discovery of some belief, practice or principle shared between us.  This can be as superficial as recognizing the person sitting next to you on a plane uses the same brand of computer, or as deep as finding yourself in the middle of a crisis and discovering another person  shares your same religious views.

Leveraging Shared Values for Enhancing Sales Performance

If you’ve been in sales for any length of time, you’ve probably heard the advice that upon entering a prospect’s office, you should look for ways to connect with what is important to him/her on an individual level.  Pictures of family on his desk?  Talk about your kids.  Golf trophies on her bookshelf?  Tell her about your trip to Pebble Beach.  Mercedes Benz emblem hanging around his neck?…(kidding).  All of these are indicators of some personal interest or value that could provide a connection point.  The goal, according to traditional thinking, is to establish personal rapport through aligning oneself with the prospect’s interest.  It’s sound advice, as honing in on personal interests is clearly an effective method for easing initial introductions. 

However, deeper relationship building requires expanding this practice beyond the initial meeting.  Salespeople should move past thinking of the method as just an ice-breaking gimmick, and instead, focus on ways to build a deeper shared value framework between them and their prospect or partner over the long-term.   

 Practically, what steps do we take to make this work?  Here are some key steps in the process:

• Observe.  Make a concerted effort to become more aware of the interests and values of prospects and partners. 
• Capture.  Make notes about the interests/values you uncover and capture these in your contact database for future reference. 
• Review.  Revisit the values for your entire prospect list regularly so you’ll keep them fresh in your mind.
• Collect.  Be on constant lookout for things you know will pique your prospects’ interest or tap into mutually shared values.  Simple things like news articles or pertinent websites are great.
• Share.  Commit to passing along content that will be of interest to prospects and reinforce any shared values.  Don’t make a big deal out of your efforts, and don’t try to squeeze in a heavy sales pitch.  Just an “I saw this and thought of you” will suffice.

A word of caution is in order.  Trying to “force” shared values where none really exist will most likely backfire on you.  It is certainly fine to appear interested in your prospect’s passion for Bavarian enamel dinner plates, but pretending to have that same love without any real emotional tie will be easily detected, ultimately working against you.  Even if you don’t have a mutual level of interest in something, recognition of its importance to the prospect will go a long way.

You’ll be amazed at how much mileage you’ll get from tuning into shared values.  Practicing the simple steps outlined here will impress prospects and customers with your attention to detail and your personal interest.  Over time, you’ll build the relationship commitment and trust you seek, creating a long-term customer and a continuous source for new prospects and referrals.

All the best,

Lorin

For a FREE report entitled “Five Sales Rules to Break when Selling to the Government” email [email protected] or visit www.galainsolutions.com.

Selling to Government In Difficult Economic Times

As covered in our Galain Solutions blog, a new report from the National Conference of State Legislatures says thirty-six states are currently facing budget shortfalls of more than $28 billion.  And it's going to get worse.  Historical analysis shows state budgets continue to struggle long after a national recession ends.

What can state-focused government contractors do as budgets lag behind the rest of the economy?  Here are a few suggestions for driving more business during tough times.

Learn the Ropes

If you are new to government contracting, take this time to develop your go-to-market approach, learn how the process works, and begin implementing your plan.  You may find today's slower pace helps keep you from making discouraging mistakes, and you'll be ready when the recovery hits full swing.

Build Relationships

Business is still about relationships, and now is a great time to make and enhance those connections.  While competing vendors may be diminishing their "field efforts," take the opportunity to fill the gap.  Connecting with decision-makers when there is no immediate opportunity says you're committed to the market and the customer.  You'll find yourself getting a "shot" when things turn around.

Save Them Money

Products or services that reduce customer operating expenses or increase efficiencies can actually thrive in down times.  Expenditures can be justified if a clear ROI can be established.  Develop marketing and sales messages around the concept of cost effectiveness and value.

Consider Creative Financing

While procurement rules vary across states, it may be possible to win deals through creative financing.  For example, multi-year deals with accelerated payments toward the end of the contract (buy now--pay most of it later) may get customer's attention.  Leasing arrangements may be well received.  Consider creative ways to help customers get what they want (your product) while dealing with the current cash crunch.

Target Well

All states did not enter the recession at the same time; they will also not all emerge at the same time.  Be aware of activities in states less affected by the recession, and pursue areas that are recovering the quickest.

Go Where Others Aren't

In addition to pursuing recovering states, you may find opportunity in places competitors are abandoning.  Governments continue to procure goods and services even in lean times.  Less competition may increase your odds for success.

Target Other Government Buyers

While states may experience budget difficulties for some time, other government buyers may have more resources.  For example, many federal agencies have operating budgets in line with last year.  Some even have new infusions of money due to the American Recovery & Reinvestment Act (ARRA), also known as the "economic stimulus."  Now may be the time to expand beyond state or local buyers and target bigger fish.

Clearly, states are not out of the recessionary woods.  However, contractors with the drive, smarts and creativity can still excel in difficult times. 

Happy hunting and all the best,

-Lorin

To receive Galain Solutions' FREE REPORT "Five Sales Rules to Break When Selling to the Government," email [email protected] or visit http://galainsolutions.com/economicstimulus.html and complete the form.

Understanding Grants in Government Business

We often see confusion from businesses interested in selling to the government surrounding the concept of grants.  Small businesses in particular often have a misconception they can receive free money from the government just for opening their doors.  While a few grant programs aimed at businesses do exist, most funding sources are actually loan programs—not grants. 

The grants we’re interested in (and those important to companies selling to government) are those providing funds to a government customer, allowing them to buy the vendor’s product or service.  Many government agencies rely heavily on grants to support or augment their operating budgets.  They often have personnel on staff to create, submit and track the significant paperwork associated with grants. 

As a key source of revenue, contractor sales and marketing professionals must understand which grants are targeted by customers, how they work procedurally, key deadlines and critical grant parameters. 

Practical advice on grants:

A customer’s grant funding source can make or break a deal.

Grant requirements are very specific and can potentially derail a sale before it gets started.  For example, in the technology world, certain grants allow for agencies to purchase computer software, but prohibit them from leasing or subscribing to the same software.  A vendor with the “software as a service” model will struggle or be excluded in this situation.

New grant sources could mean “new money” for a buyer.

  Government buyers may be accustomed to dealing with grants for which they rely on apply and annually.  However, creative thinking and work by a vendor might also uncover non-traditional grant sources capable of funding a project not included in the budget.

Vendors may need to do more than simply uncover an alternative grant.

Grant writers within buying agencies are already swamped with work.  Suggestions these workers should manage yet another grant application may be met with resistance.  Vendors should instead consider developing a “grant template” for non-traditional funding sources.  With this approach, the vendor does much of the work required for completing a grant application.  While the vendor cannot submit the application itself, it can provide the template to the buying organization as a resource—easing the administrative burden and making it easier to buy.

Next time, we’ll look at another important government selling concept—the purchasing vehicle. 

All the best,

Lorin

Rick and Lorin help companies increase government sales and marketing effectiveness through their firm, Galain Solutions, LLC.  For a FREE report entitled “Five Sales Rules to Break when Selling to the Government” email [email protected] or visit www.galainsolutions.com.

Basic Secrets to Government Selling

We frequently talk with business professionals who want to pursue government markets but are not sure where to begin.  Whether you are new to this segment, or a seasoned veteran, here are three basic secrets that should be kept in mind when selling to the government.

First, solve the problem.  You might think this is obvious, but many times sales people propose canned “features and functions” instead of real solutions.  In order to solve real problems, you must get prospects to reveal their true pain points.  This means being there before the RFP is issued whenever possible, and it means establishing good rapport and strong credibility.  

Once the problem is well understood, the solution offered must clearly provide a legitimate fix.  “Smoke and mirrors” may win you the occasional deal, but real solutions create a long-term business.  If you can’t solve the problem, move on.

Second, follow the rules.  Policies and procedures are fundamental elements of government procurement.  Successful contractors will be adept at following them.  That doesn’t mean a contractor can’t have some degree of influence over the process.  It does mean any influence must come in the early stages of the procurement cycle. 

Third, make it easy.  “Ease” builds value in the government market (in all markets really).  So even if your product solves the problem, and you’ve followed all the rules, your solution still may not make the cut if another vendor illustrates they require less hand-holding. 

The opportunity for winning government contracts has never been better.  Keeping these three fundamental secrets in mind will help move the odds of success in your favor.

All the best,

Lorin

Rick and Lorin help companies increase government sales and marketing effectiveness through their firm, Galain Solutions, LLC.  For a FREE report entitled “Five Sales Rules to Break when Selling to the Government” email [email protected] or visit www.galainsolutions.com.

Selling to the Government: Does Your Company Have What it Takes?

--In our previous post we examined some key qualities of government salespeople.  Today, we’ll look closer at characteristics of companies with success in selling to the public sector. --

Government selling is all the rage today; companies are rolling out plans across the country to bolster their government business.  However, not all companies are cut out for such an endeavor.  Even those that fill knowledge gaps with experienced government salespeople may not achieve the results they seek because of their culture, organizational design, business model, etc.  Let’s examine a few characteristics of companies that tend to fare better in government markets over time.

Ability to handle complexity and customization.

While there is some movement within the government sector to buy more “off-the-shelf” products and services, the fact is, much of what is purchased at the government level is fairly specialized in its design or service requirements.  Government is big on specifications.  Many times requirements are understandably more rigid than those for consumer or commercial applications.  As such, companies must be able to deal with the demands of customizing products and services.  Companies pursuing government customers must be aware of the potential impact of this complexity.

Longer-term Commitment.

With complexity comes the need for long-term commitment to the market sector.  Government customers often expect to see product road maps and growth plans to assure them investments will not be short-lived.  Multi-year contracts and service level agreements are not uncommon.  Effective government vendors build supporting organizations for the long-haul.

Organizational patience.

Government sales deals can be lucrative, but they are often not immediate.  Customer budgets may be cut.  Projects stall.  Leadership and directions change as political tides come and go.  Successful government contractors treat selling to this market as a strategic initiative, not a quick-win, cash-generation tactic (although over time, it’s nice to know your customer WILL pay you—and typically when due). 

Clear differentiation.

Differentiation is always desirable, but it’s critically important in government markets for two primary reasons: 1) companies with highly unique capabilities may be able to “sole source” deals, allowing government procurement departments to forego the competitive bid process, and 2) when participating in a competitive bid process, unique positioning will stand out in the vendor evaluation process, increasing the odds of winning the sale.

Ability to manage partnerships.

Many government contracts can only be fulfilled through “teaming agreements,” (i.e. partnerships between two or more companies).  Whether the reason for teaming relates to expanding one’s overall capabilities, or simply for “passing through” a deal through a third-party due to their status as an approved purchase vehicle vendor, successful government contractors are generally adept at working with outside partners.

These are a few key company characteristics that relate to success in government markets.  What do you think?  Are there other traits successful companies must possess?  We’d love to hear from you.

All the best,

Lorin

Rick and Lorin help companies increase government sales and marketing effectiveness through their firm, Galain Solutions, LLC.  For a FREE report entitled “Five Sales Rules to Break when Selling to the Government” email [email protected] or visit www.galainsolutions.com.

Selling to the Government: Do You Have What it Takes?

There are many qualities of government salespeople that mirror those of sales professionals in other sectors.  Ambition, drive, lack of fear, competitiveness—all are characteristics that help a government salesperson rise to the top.  However, there are also a few personal qualities we believe are unique to government-sector sales success.  Let’s examine a few of these.

Sense of Mission

Whether selling to the Department of Defense, Federal agencies, or local officials, a sense of mission is prevalent in most of the great salespeople with which we’ve worked.  Generally, this is made up of a couple of things: 1) the strong belief that the product or service being represented will truly help a community or country achieve some greater goal, and 2) a respect for the fact that funds used for acquiring products and services ultimately stem from citizens in the form of taxes.  While we’re not suggesting every top salesperson we’ve encountered is the proverbial Boy or Girl Scout, we do see a correlation between success and deeper internal motivations and character.

 Process Orientation

Government procurement most often follows defined and detailed processes.  Such processes are in place to minimize biases in purchasing and ensure the government spends taxpayers dollars wisely (or at least that’s the theory).  This can be frustrating for salespeople skilled at “winging it” or accustomed to winning deals based on pure charisma.  Sure, a winning personality and outstanding presentation skills will give you an edge over competitors.  But, if you’re sloppy with details or irritated by “confining” procurement rules, you won’t win in government selling. 

Team Facilitator & Player

While lone mavericks may be held in high esteem in other sales sectors, government selling requires an inordinate amount of team facilitation and collaboration skills.  Customer solutions are often complex and customized, requiring diverse expertise just to put together a proposal.  Customer-preferred purchasing vehicles may mean a partner or reseller must be brought in to secure a deal.  While a government salesperson is typically the primary relationship manager, he/she is typically not the only one involved in making a sale.  If you don’t play nice with others, government selling is probably not the place for you.

Patience

Salespeople are not generally known for their ability to wait.  In fact, they’ve been taught to constantly move and “make something happen.”  While government selling requires substantial energy, activity, persistence and focus, there are times when a salesperson must deal with inactivity.  Procurement processes can bog down.  Elected or appointed officials may go in and out of office.  Budgets may be cut or held up for approval.  The government salesperson must not let these situations discourage him or her, but continue driving activities associated with pipeline building and relationship development--even while specific deals may appear to be stalled.

Up Next:  Does your company possess the characteristics required to thrive in government markets?  We’ll examine key predictors of company success within this sector.

 Rick and Lorin help companies increase government sales and marketing effectiveness through their firm, Galain Solutions, LLC.  For a FREE report entitled “Five Sales Rules to Break when Selling to the Government” email [email protected] or visit www.galainsolutions.com.

Introducing "Selling to Government--Secrets of Success" Blog Posts

There are billions of reasons why you would want to sell to the government.  Literally.  The stimulus package, passed earlier this year, amounts to $787 billion in new spending.  Add this to the billions already budgeted each year at the local, state and federal level and you know why so many sales and marketing professionals are scrambling today to “up” their government game.

To many businesses, government selling is a mysterious and confusing process.  Some may see the potential opportunity, but have no idea how to begin.  Others may have dabbled in the sector at some point, but found their traditional methods of selling and marketing simply didn’t bear fruit.  Still others may currently have a thriving government business, but realize continuous improvements must be made to overcome increased competition. 

Whatever your position, we hope to provide relevant and useful information for capturing government contracts through this new series of blog posts.  Based on more than 20 years combined experience in sales and marketing to all levels of government, we will reveal many of our “secrets” to success, while dispelling common myths about this market. 

We hope you will make frequent visits as we explore the many facets of selling and marketing to all levels of government.  We appreciate your comments and questions as well.  Thanks for joining us, and happy hunting.

Best wishes,

Rick Wimberly & Lorin Bristow

Up Next:  Do you possess the personal characteristics required to excel in government markets?  We’ll examine key predictors of personal success within government markets.

Rick and Lorin help companies increase government sales and marketing effectiveness through their firm, Galain Solutions, LLC.  For a FREE report entitled “Five Sales Rules to Break when Selling to the Government” email [email protected] or visit www.galainsolutions.com.

How to improve sales performance without training

Many sales leaders look to outside trainers to give their salespeople a jump start, an energy boost, a shot of motivation and sometimes, some new skills and tools to help them succeed.  As one of those trainers myself, I can tell you that training is not always the answer.

Before looking outside for training, why not make use of the wisdom already at work in your firm?  It is waiting to be discovered among your positive deviants.  Every firm has them.  They are the people who make their numbers no matter what, even in tough times.    They are the people the sales team goes to when they need a new idea, when they need that special PowerPoint deck that no one else has, or when they are stuck on strategy and want to talk about it with someone they trust.

These people already have the answer to many issues you are trying to solve.  The key is tapping into this rich resource of insight and know-how.  Here is how:

1. Choose an important problem or objective.   What result is worth working on right now?  It may be as simple as making your numbers, maintaining or increasing customer share or creating referrals.  The key is to focus on something that matters and is urgent to your firm.
2. Identify the high performers.  Who are the people whose performance is exceptional, who perform well beyond what is expected?  The water cooler talk may be that times are tough.  Yet as you look around, you notice that there are some who simply defy the odds.  Who are they?
3. Discover their wisdom.   My colleagues and I have found that in three days, we can tap the knowledge, perspective and processes of high performers and make it available to the rest of the organization in a way that they can use immediately.  One of the keys here is to capture the essence in everyday language - not in "corporate speak."  The vocabulary of many training programs is an obstacle because the learner has to learn the meaning intended by the trainer - and then relate it to their own experience.
4. Put the wisdom into action.  You want the non-expert motivated enough to absorb, adopt and take action on what was learned from the high performers.  Structure the information in a way that captures the essence of the experts' insight and know-how,  while shaping it for adoption by the non-expert.  Credibility also comes from the energy, passion and realism of the content.
5. Reinforce follow-through.  Most training is wasted because it never makes it into the learner's day to day actions.  Create a way to positively incorporate the expert approach into the non-expert's behavior, personalized for the learner's understanding and paced for the learner's schedule.

You will find that the non-experts begin putting the ideas to work immediately.  Part of the reason is that it was created by the people they go to anyway when they need an expert - the high performers themselves.  Even the high performers benefit.  One of the surprises is that many high performers never take the time to understand why they are so exceptional.  Knowing what makes them great gives them a platform to get even better - and they do!

In many organizations, the person your sales and marketing people seek for guidance is not you, the sales or marketing leader or the trainer.  You are no longer the decider or "chief discoverer."  Get comfortable with your new role as facilitator and change agent.

Greg Krauska is President and Founder of The Change Agent Group.

What's the Scariest Thing This Halloween? The Economy.

By Karen Yi

This Halloween season has people shaking in their suits, literally. But it's not the monsters of the night or the rising of the dead that's sending a ripple of goose bumps and shivers across America--it's the economy.

Frankly, the economy has everyone running scared. And this fear has possessed consumers into hiding under the covers and shutting the door on spending.

Like monsters under the bed, some marketers are creeping up on frightened consumers, and tailoring their strategies around anxieties. But during tough times, it's important to remain proactive and resilient; marketers are learning to step up the plate and contest the prevalent market jitters with its own contrivance--frightening frugality.

A Visa advertisement for example reads, "Don't be afraid to save this month! Even a haunted house full of ghosts and goblins can't match the thrills and chills of a great shopping deal!"

Wal-Mart's Halloween ad reads, "The real trick? Saving money on all their favorite treats."

"Deals so good, they're scary," has been picked up brands such as Techbargains, Priceline and Papa Johns.

Halloween is the third largest party occasion, after New Year's and the Super Bowl. However this year, a survey by TNS Retail Forward, reported that 29% of respondents said they planned to cut back on Halloween spending. But some marketers aren't getting cold feet;  instead, they are refocusing their marketing campaigns to ensure "Monster Savings" and "Frighteningly good deals."

Don't let Halloween pass you by. Take it as an opportunity in disguise to evaluate how you can use these specific circumstances to get creative. Halloween doesn't have to be your worst nightmare.

Additional Select-ion

By Jeremy Cohen, Managing Editor, Sales & Marketing Management

I recently had the pleasure of speaking with Matt O'Connell, executive vice president and co-founder of Select International. You'll find the highlights of that conversation in "Natural Select-ion," the featured Training Q&A from the new issue of Sales & Marketing Management. For those who may be unfamiliar with the organization, Select International is a Pittsburgh-based provider of employee assessment and selection solutions for Global 2000 companies. By extension, this made O'Connell the perfect person to speak with on the subject of employee retention (the focus of the article).   

Great as the interview was, however, there was one downside: Space constraints prevented us from getting all of the insights he shared into print. Let's see if we can at least partially rectify that here...

As you're all well aware, there's been a lot of talk about the Baby Boomers and their impending exodus from the workforce. The problem is, far too much of that conversation gets focused on the folks who are going to fill that vacuum-i.e., the Gen Y-ers. You certainly can't fault upper management for looking to the future, but in the process of doing so, are they prematurely shoving their Boomer employees out the door?

If so, O'Connell argues, they're making a huge mistake. "Without a doubt, one of the most challenging things that an organization faces is trying to hire good, consistent salespeople who will be able to sell, and sell on a regular basis," he says. "Why would you not want to keep someone who is helping your organization and has a proven track record? If you've already found somebody who can do that, I would think that you'd want to do everything you can to try to keep them for as long as possible."

And as O'Connell points out, keeping them around may involve more than just keeping them out in the field. "As they get closer to retirement, one of the things that I think most people start to realize-and start to enjoy-is that, hey, there's probably more to life than just making their sale," he explains. "They would love to be a resource and a mentor to new salespeople, even if they weren't in a formal role of sales manager or whatnot.

"I think that you're missing a great opportunity to have an older, more mature employee working as a sales coach to provide some of the wisdom-the life lessons."