Revenue Journal®

People buy when they're comfortable that they're making the right decision. If they're uncomfortable, they don't buy. This is especially true when money is tight or people are fearful. Their comfort zone - and how well you stay within it - will determine if you make a sale, or not.

Let's look at what will kick you out of their comfort zone - and how you can stay inside.

Some time ago, I wrote an article about how software buyers were mired in the "skepticism swamp." It's even worse now.

If you're selling software, you have to be able to overcome the massive amount of disbelief that has built up in buyers' minds, thanks to all the promises that have been made to them - and broken. Everyone promised higher productivity, increased efficiency, and plug-and-play. HA.

What everyone delivered was installation headaches, integration nightmares, missing-in-action service, and navigation that required that you know the program intimately before you could do anything useful with it.

Today, software buyers and users consider each purchase an investment - of time and grief, as well as the money.

Salespeople (or, I should say, order takers) who are used to taking calls all day are still having a hard time adjusting to the email-driven business world we live in now. The same is true of many small business owners.

The phone is no longer the "instrument of choice" for today's busy buyers. Their preferred way of contacting companies when they are interested in a product or service is via email. And yet, too many salespeople and entrepreneurs are still treating email as an intrusion into their busy day. Because they get so much email and spam, and because they don't want to spend all day typing notes to people, they just aren't giving incoming email buyers the attention that they deserve.

If your salespeople are struggling with, or ignoring, this issue, it helps for them to see the email scenario from the buyer's point of view. It will help them understand how just a few minutes spent responding can make the difference between closing a sale or losing a customer for life. Let's look at this from the perspective of a customer we'll call Jane.

"Fast, right, cheap. Pick two."

Print shop owners used to like to post this little truism near the front desk of their shops. There's a lot of wisdom on those five words. If you do it too fast, it's likely to be wrong. If you take too much time obsessing over details, it isn't going to be fast. And if you get it cheap, you might also get it fast, but it probably won't be right.

The problem is, today's customers assume that they can get "all three" if they just look hard enough. Google has given them a virtual, endless, global shopping mall. If one vendor can't give them all three, they'll just keep looking. Click. Click. Click.

I really enjoy making sales departments more productive. It's one of the most rewarding aspects of what I do, because there's always so much to improve, and because even a few changes can make a huge difference in a company's revenues. As we slip further into group-recession-think, it's time to look at what an economic slowdown really means and what you can do to make sure your business continues to grow - in spite of the persistent recession drumbeat. There are a number of things you can do to improve your sales levels in this economic environment.

1) Ignore the recession drumbeat. It's easy to be spooked by the latest news on the economy. Even if you are in an industry that is directly affected by a slowdown, being distracted from your normal revenue-producing tasks - and lowering your sights - will only make matters worse. Make a personal, definite decision that your business will be an exception to the overall trend.

It is possible to be going "up" when everyone else is going "down" - I've done it myself several times in my career, so I speak from personal experience. Your two biggest enemies are always distraction and fear.

John Smith is a typical customer in the market for a fairly high-end product, one that requires a salesperson to finalize the deal. He has done his research on the web - he's spent hours, in fact, researching. Now he has a couple of questions for the salesperson to answer. Otherwise, he is ready to buy. He decides that the best way to get the answers he needs is to go to an industry tradeshow.

I've been interviewing "John Smiths" for a client, and one of them described what happened next, using these words:

"I had to defend my wallet and my family against The Pitch."

He was there with his wife, and as he was trying to get answers to his questions, the salesperson kept trying to close the sale.

From the customer's perspective, this is irritating. Sleazy. Totally inappropriate. You're just asking someone questions, and the whole time, they keep trying to sneak around to the side of you and grab your wallet out of your back pocket.

Lately I've encountered more entrepreneurs who have bought into the idea that they can just set up their search engine marketing and websites, and the orders will pour in. Oh, how nice it would be if it were true!

There are consultants who will say that it is possible, and say that they have made bundles of money doing it. But they sell one type of product (usually a guide of some sort), using one type of marketing method (usually a combination of search engine marketing, and a dedicated website that makes outrageous promises as it offers the guide for sale on the website). The website contains a single long-winded, direct-mail-like page that sells you on all the things that the guide will do for you, filled with convincing testimonials and "scientific" proof. And they let you pay and download the guide right there. This is a perfect product for the Web, and the method works well for that type of product.

These vendors often sell guides saying you can sell anything on the Web this way. Newbies have bought these guides and have become convinced that this method will work for any type of product - that all they have to do is set up this type of campaign and website, and then sit back and watch the orders flow in. It simply isn't true.

The better your content, the more you will sell.

A pretty simple concept to grasp, especially when we think of the buying process from the buyer's point of view. Most people who are buying something for the first time go straight to Google. They type in the search phrase they think will give them the right result, refine it if needed, and then start drilling down - mostly on the sites that come up "above the fold" on the screen. We all know this.

And yet, as I work with clients to improve content, and as I see content from the buyer's point of view, I am dismayed by how un-seriously managers take their own content.

What is the most important part of every email you send - whether to one person or to your entire email mailing list? The subject line.

What's the second most important part of every email you send? Your signature.

Marketing is often considered a very subjective exercise. But the expectations and behavior of email recipients have created certain absolutes associated with subject lines and signatures. Use them well, and you will add a lot of success to your work day. Use them poorly, and you will generate inefficiency, confusion, frustration, and a lot of wasted time - in your day and in the working days of your recipients.

The problem with marketing and sales is that they are the functions inside companies most likely to be driven more by emotions and anecdotal "evidence" than they are by facts. The result is never as profitable as it could be.

If salespeople dominate decisions, without the benefit of qualitative customer research and buying process analysis, the atmosphere is always dominated by fear of losing the next sale, and activity is always frantic.

The salesperson will send an email to the marketing person: "I just closed this sale. I sent this fax to them, and they read it while we were talking to each other, and the person loved this fax. We need an email and landing page that uses this copy!!!" The marketing person will comply. The salesperson will then talk to another customer, who will react positively to something else, and the salesperson will send another email to the marketing person, demanding another email and landing page.

Fear is a powerful motivator. Entrepreneurs use fear to motivate themselves; CEOs often use fear to motivate themselves and their employees. After a while, it's easy to consider fear as a valuable tool, a friend. Too bad it isn't true.

Every business starts with a dream. Every buyer starts the buying process with a dream.

Every business can turn into a nightmare. And, every buying process - especially those involving large, expensive, important purchases - can turn into a nightmare.

These dreams - and fears of nightmares - drive the decisions and actions of both business owners and buyers.

We've all seen this at work in extreme cases, where an individual will let their own fantasy world overwhelm reality to the point where they lose their job or their business, and the people who supported them along the way.

But these situations are rare. The more usual, day-to-day situation is one where the seller and buyer are trying to find common ground, to negotiate a realistic solution where everyone can be happy.

Let's say you're a vendor in a developing country selling some kind of product or service to customers in more developed countries. You know you can provide what the customers there need, but you're not sure how get the attention of the right kinds of buyers, and when you do get a lead, you find it too difficult to close the sale. Something is standing in your way. That something is the negative reputation that your country or industry might have in the mind of the buyer.

This article will address both of these challenges while looking at the process from the buyer's perspective. The advice in this article will help anyone selling any type of high-risk product or service - even in well-established markets - as the dynamics are similar.

It took a while before the Web really changed the way people bought things, but it has happened. Now people go to the Web first and research the heck out of a subject before they buy.

They scrutinize, analyze, and agonize. They Google and re-Google, fine-tuning their search term until they start getting the desired results. They know exactly what they want and they keep searching until they finally find it, then compare their options, read the reviews, and consider the price and the functions. Once they are satisfied they have found the right product and are comfortable with the company selling it, they place an order.

I'm sorry to say that, over and over, I am finding business owners struggling to make sales because their marketers - in-house or outside - are trying to use yesterday's marketing and selling methods on today's buyers, who have definitely moved on.

Buyers have specific questions. If you're not giving them specific answers, you're not going to capture those sales. All technology aside, this is the biggest difference between "old" marketing thinking and "new" marketing thinking.

The best way to illustrate this is with an example.

Here are some of the most common barriers to revenue that we encounter as we help our clients. Are you making one of these mistakes?

Your company name doesn't tell them what you sell. We call our company Zhivago Marketing Partners for this very reason. It would have been just as easy to call it Zhivago & Company or something similar - but that would not have answered the first, most basic question: "What does this company sell?"

If you're just starting out, make sure your name clearly indicates the type of product you sell.

If you've already invested too much in your non-specific name to change it now, then add a tagline to your logo that says what you sell. Keep it short - no more than five words. Tell them what you sell, using the words people would use to find you.

Well, it's that time again. People are worried about a recession.

Strange, because according to the US Department of Labor, the unemployment rate is at 4.4%. For historical perspective, ten years ago (April 1997) it was 5.1%, rose to a high of 6.3% in June of 2003, and has been falling ever since.

Average hourly earnings have risen from $12.29 in January of 1997 to $17.10 as of January 2007.

How do I know people are worried? The phrase "How to make money during a recession" has started to become more common again in my search term results. Plus, the bigger companies have stopped spending while they wrangle over budget cuts. And entrepreneurs are focusing more seriously on making more sales.

If we do have a recession, what will happen? What typically happens in all recessions?

I've mentioned before that I buy a lot of software online. Recently I undertook an extensive search for software I could use to efficiently build outlines for books and other large, complex documents, because the outlining function in Word is pitiful and slows...the...creative...flow...to...a...crawl, and has a klutzy expand/contract outline function.

I must have looked at 25 programs, and trialed at least 10. For all of you out there selling software online, I have some very specific advice for you, from a buyer's point of view.

Every CEO and entrepreneur has a need for both graphic and website designers. Too bad there are so few good ones out there.

Sure, there are people who say they are designers. And they do, in fact, churn out work for clients. But I'd estimate that only one out of 200 actually know how to solve design problems, have truly satisfied clients, and consistently turn out good, solid work.

What's the problem? It goes back to something a CEO once said to me, about ten years ago. "No one is teaching kids how to think." He was right. Being a good designer means you follow a well-tested process. You gather all the input you need, you prioritize it and analyze it, and then you come up with solutions that meet the requirements.

There will be tradeoffs; the design process always involves a delicate balance between all of the various goals, resources, form, and function. But the best designers do a masterful job of meeting all the requirements while creating something pleasing and functional.

Instead of learning how to make these tradeoffs, young designers are taught to imitate established designers or to follow their own creative whim. It is easier to teach someone to imitate or to do whatever he/she wants than it is to actually teach the student to think - or be of service.

The result is always something inappropriate for the client. I can't tell you how many entrepreneurs and CEOs are frustrated with the designs that come back to them, after they think they've provided the information the designer needed.

As the leader of your company, what you decide to do is what gets done. At least, that's how it should happen. What you have control over (to a degree) are your own decisions, your own actions, and the management of your employees. You have some influence with your business partners. You have no direct control over your customers.

Of course, without customers, you wouldn't have a business - no revenue, no employees, no partners. The people most important to your business are your customers.

Whom do you spend the most time with? Employees.

The president of a small company recently sent me an email. "We've done well in a lot of areas of business, but what we haven't done is sorely inhibiting our growth. We need to master marketing and are committed to doing just that. Will you point me to the best learning tools?"

I'll bet you can guess where I pointed him…right back to his own customers. Here was my reply:

Well, it's that time again. Elections. Always causes a bit of a dip in productivity, and a slowdown of the buying process, while everyone waits to see how the election will turn out.

Welcome to Distraction City.

In our news-dominated culture, distractions interrupt buying patterns. The larger the distraction, the larger the interruption. I tend to think of these periods as distraction-driven mini-dips. If there are a number of them in succession - especially those involving armed conflict or a terrorist attack - the dips can turn into a recession.

During these distraction-driven mini-dips, it's more difficult to generate revenue. Everyone still goes to work, meetings are still held, contracts are still signed, but if you're on the selling side, it always feels like the world is sliding sideways. As you attempt to finalize a contract, it's like talking to someone who is talking to someone else on a cell phone. Or who is pretending to be paying attention to you while simultaneously watching a movie. Sure, they will answer your questions, but they're not "all there." People are no where near as adept at multi-tasking as they think they are, especially if they have an emotional stake in the other task.

It's not just the buyers who are distracted. Sellers are distracted, too.

Major opportunity for you

If you haven't been to the launch site for NXP, a spin-off from Philips, take a look - and prepare to be blown away.

The site is beautiful. Breathtaking, even. The Guy in the Green Shirt (below), who will talk to you while you're on the site, does a pretty good job of being professional and yet friendly, in a geeky/retro kind of way. So friendly, in fact, that when you return to the site he will welcome you back.

Entrepreneurs, listen up. You may feel like you are alone in your struggle to increase your sales. You're not. Every single entrepreneur struggles with the same issues. And every conversation I have with an entrepreneur follows a similar pattern, and has a similar happy ending, once I show him where his solution lies.

The first conversation always starts out with the entrepreneur telling me what he has been doing about marketing and sales, and what he thinks he wants to try next. His options always involve decisions about marketing vehicles ("Should I do PR? What about my website? Should I follow the advice of this person selling direct mail services? What about this local agency that is trying to get me to run radio ads?")

I listen until he has given me the whole picture. It doesn't take long, because 35 years of selling every type of product helps me fill in the blanks--if he's selling direct, I know what his business model looks like; if he's selling through partners, I know right away the problems he's having in that area.

After asking him a number of questions - including "Are you interviewing your customers on a regular basis?", I can see why he is struggling with his marketing decisions. The problem is, he's focusing on his selling process.

"Demand generation" is the new name for "marketing." It has its roots in every salesman's fantasy. Salespeople are happiest when their product is in demand, when they're writing orders rather than having to make cold calls and trying to convince people to buy. The sweetest phrase a salesman can say to himself is, "I'm in demand!"

But "demand generation" has nothing to do with the customer's buying process. The only time "demand" can be applied to the customer's buying process is when a child is demanding something from a grownup. Picture the full-blown, in-store temper tantrum employed by the three-year-old, or the more subtle--but just as irritating--Major Sulk employed by a teenager using more "sophisticated" methods. But even in these cases, the child doing the demanding is not even the final decision-maker.

Your website is one of the most important "employees" in your company. It is your company's most important salesperson and service person.

What kind of employee is it? Is it friendly, helpful, and knowledgeable? Or snarly and surly, thwarting the customer (and sabotaging the sale) at every turn?

I just bought a new laptop and its associated software and accessories. As I purchased and configured the computer, I was reminded again how stark the difference is between companies with a helpful website and companies with an obstructive website.

On the good side of the equation, we have CDW, the large computer company based in Illinois. I was considering buying my new laptop from them, but became convinced it was a good idea after talking to Jim Sterne. He told me he had gotten a cold call from them one day, which quickly turned into a warm call, which caused him to go to their website, and actually buy something. He has continued buying from CDW, over and over. Having now gone through a very pleasant and successful buying experience with them, I can understand his enthusiastic loyalty. More on CDW in a moment.

Got a phone call today from a telemarketer for the "National Directory." Lots of voices in the background, obviously a boiler room. OK, no problem with that. But the guy calling me is talking too fast. Red Flag #1. Fast-talking callers make buyers uncomfortable.

He's talking so fast, I can barely understand which business he represents, and thus am not sure what this call is for, or where it's headed. Red Flag #2. He says something about this being the directory used by AOL's Yellow Pages.

He wants to confirm my contact information. OK, I can do that, I get these calls all the time. But I'm still suspicious. This "just confirming" shtick is usually the preamble to a sales pitch. Red Flag #3.

He confirms my contact information, then says, "Thank you. Now, you will be listed in the National Directory, free for 15 days." Red Flag #4. Big One.

"What happens after the 15 days?" I ask him.

"It's free for 15 days," he says, avoiding my question.

"That's not what I asked. What I asked was, 'What happens after the 15 days?'"

"Well, Ma'am, if you approve your listing, you'll pay $39 a month."

Let's assume someone really good-looking swept you off your feet with promises of a life of bliss. You dated, got engaged, and then tied the knot.

About five minutes after you left the church together in your limo, your new spouse suddenly turned into the ugliest, meanest, rudest person you had ever met. A broken heart and many months later, you were free, and you vowed to yourself: "Never again."

This is the mindset of today's software buyer. Especially those considering big-ticket, enterprise-wide programs.

These people are Skeptical, with a capital S. They have already been badly burned by "revolutionary" systems like CRM and ERP. Some of them almost killed their own companies trying to put these systems into place (and almost did it again when they had to remove those same systems).

Think you can impress these buyers with flowery promises? Not anymore. Think they'll believe that "It will be different this time - we will actually take care of you?" Ha! Think you're going to convince someone to champion your solution to their CEO? Dreamer!

They don't trust any promises; too many promises have been broken by everyone in the software business, from Microsoft (the biggest promiser and promise-breaker of all time) on down.

No wonder it's so tough to sell software.