In a recent blog, we discussed how sales reps should ask probing questions to qualify their prospects effectively. This article will continue the conversation, moving on to some of the more challenging aspects of qualifying leads – financial cost, justification, and urgency.
Most prospects can describe their business problems – and the frustrations they inspire – without too much hesitation. However, only a few have ever spent the time to quantify precisely what those problems cost them. To understand the reality of the opportunity and what solution should be proposed, the issue at hand has to be represented by hard numbers. The prospect needs to see the problem’s cost to grasp the solution’s value.
The cost may be hiding under inefficient production practices, or loss of market share through attrition, both the representative and the prospect need to know the actual ongoing costs of their problem.
Posing consultative sales questions that will inspire quantifiable answers will compel the potential customer to think about the money and resources being wasted and how much they can expect to realize by addressing the issue. But these questions not only help your prospects to see the light, but they also arm them with the needed data they will need to move the proposal up the line. Having a quantifiable argument turns a “complaining employee” into a knowledgeable problem solver and team player.
When sales representatives empower their prospects with insight, they will become advocates and garner the support to sell solutions internally. Selling a $25,000 solution is much easier when they can prove the issue costs the company $200,000 annually! Not only are there tangible or quantifiable direct costs but also opportunity costs. All of this adds to the value and makes it a more compelling reason to buy.
First, sales representatives need to uncover the business problem or challenge. In some scenarios, this might be a workflow issue, a problem achieving compliance, or perhaps too much time spent performing manual tasks that lead to a lack of efficiency and productivity. Additionally, external factors and forces in play will present new challenges to an organization.
We must understand these challenges and problems first. Then we can uncover the negative impact of these challenges and problems on the business, which is always a quantifiable value (unplanned costs, too much manual time spent, percent of work completed, or only 3 of the required ten tasks could be completed.) This is how you formulate a value statement – what is the problem, and what is the negative and quantifiable impact of the problem?
Here are some sample questions that can help to discover and quantify the actual costs of your prospects’ issue:
● What do you estimate this problem costs you weekly, monthly, or quarterly?
● Based on the problem described, what is the cost related to productivity and performance? Ask the same regarding people, resources, opportunities, customers, revenue, or market share – whatever is relevant to the situation.
● Who or what department owns or is responsible for the business problems and challenges? Who will sponsor solutions to the problems and challenges?
● How is this issue affecting the company’s bottom line, for example, their margin or revenue or cash flow?
● How much time, money, or resources do you expect to expend in solving this problem?
● What would you lose (time, workers, money, etc.) if you do not make a change?
● What is the cost of recruiting and training new employees if your turnover problem is not resolved?
● What is the cost of retraining and new hire development if you lose experienced and tenured people?
Understand Their “Pain Level”
One of the main qualifiers when determining the validity of an opportunity is their sense of urgency. If the prospect must resolve the issue immediately, they are more qualified than if they still need to set a timeline for the project.
If the problem is real, but the need does not seem urgent, it is the sales rep’s job to determine what is causing the hesitancy. Do they have more important projects? Do they not have the support of their executives? Are they too overwhelmed to take on the problem? If there is a significant roadblock to moving forward, try to determine how to help remove that barrier. However, if the problem is not a priority or you are unable to gain the right level of customer support, it may be time to walk away – for now and instead focus on nurturing and educating this prospect.
Here are some examples of questions designed to gauge a prospect’s sense of urgency:
● What likely impact will you and your organization experience if the problem persists?
● What are the long-term consequences if nothing changes?
● What concerns do you have for your team and company if the issue is not resolved?
Recognizing What They Might Gain
While the previous questions focus on the pain a situation may cause, there is a brighter side to the prospect’s circumstances. Focusing on what there is to gain requires identifying a prospect’s wants, needs, hopes, and aspirations as they contemplate the future. The sales rep must strive to create trust by understanding their prospect’s emotional drivers and motivations.
Did You Know? Prospects are 12 times more likely to purchase if an emotional connection is established. – Gallup.com
Here are sample questions aimed at focusing on the gain and establishing a connection:
● If you eliminated the problem, what opportunities would become available?
● What impact would it have on the business if you resolved the issue? What would you gain personally?
● What would your company look like if this problem no longer existed?
● In a perfect world, describe the solution you envision for your company.
● What efficiency and productivity gains will you realize with the right solution?
● Can you describe the operational, financial, and technical improvements the solution will deliver?
● What is the financial payback expected for investing in a new solution to address these problems?
Conclusion
Becoming proficient at qualifying leads is one of the best ways to ensure sales representatives maximize their time and effort. But managers and business leaders can spin their wheels and waste precious time if they have to teach each new hire their best practices and methods.
The KLONE Organizer allows organizations to collect and store their best practices, selling motions, discovery questions, value messages, SOP, policies, and business rules in one easily searchable location – not to mention to document the methods, tips, and tricks of your most successful employees. To learn more about how you can clone your most vital