Revenue Journal®

I don't do this very often, because I always have an abundance of original content, but, in conventional blogger style, today I'm going to refer you to two other articles.

Actually, I wrote one of them, so perhaps my resort-to-convention post only applies to one of the articles - a great post in Ray Wang's blog, "Software Insider's Point of View," posted by John Ragsdale, VP of Research for SSPA, formerly of Forrester.

In John's article, "Reality Check: Sales reps matter more than product," he says:

"I don't think developers and marketers at high-tech companies have any idea how many deals they are losing, based on the personality of the sales rep." [More]

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.

A depression is one of the worst things that can happen to the economy - it affects just about everyone, in every industry, in every country. Recessions, on the other hand, tend to hit a particular group of industries the hardest, with lesser "ripple effects" on others.

What's happening now, as everyone knows, is that lending institutions have stopped lending with wild abandon. The first people to be effected by this are those in the real estate business - real estate agents, lawyers, title companies, and all the others who gain income from real estate activity. Their income - and their spending - decreases. Many decide to leave the business. There is a personnel shift from the real estate industry to other industries, where the money is still flowing. Until they are securely ensconced in their new positions, and have recovered financially, they are still cautious about their spending.

Recessions affect other industries, too, because of the recessionary drumbeat. The news media is always prowling around looking for the latest disaster. As you know, right now they're writing stories about the "subprime lending crisis," profiling people who have been affected. This steady diet of bad economic news affects everyone. Anyone who views their house as their main economic security will be more cautious about their spending. They will take longer to make decisions. They will want more information before making a commitment. They will more carefully compare one option against another, and will be more likely to postpone major spending decisions.

Consumer spending will slow, and so will business-to-business spending. People who run businesses are consumers themselves, and they follow economic news closely. They become more cautious about their spending, too. Their employees see the boss pulling back, and they tell their families, "Things are getting tight at work. Better wait on buying that new car."

This classic, recessionary mass psychology will affect your own outlook, the outlook of your employees, and your revenue stream.

So why am I saying that recessions can be good for you? Because they provide a unique opportunity for improvement.

Long-time readers are probably wondering if I've gone off my rocker with that title. No worries, I'm not suggesting that you do anything stupid or lewd. But there is something that you can learn from any performer, even the most superficial ones.

Having come from a show business family, I learned at an early age about "stage presence." It really boils down to the fact that when you're on stage, you're in character. Even if you are a bit player in a crowd scene and you're the person at the very back of the crowd, you are still on stage. You must be in character and engaged the entire time you are on stage. If the main character in a musical is singing a solo, and you are part of the "listening crowd," your role as a listener is just as important as the soloist's role.

What does this have to do with sales? Imagine that you are part of a sales team, pitching a potential client. Someone in your group is presenting.

A group of consultants are in a conference room, pitching a new client. One of the consultants is making the pitch. We'll call him the salesperson.

So far, the client has been alert, sitting up straight, listening, eyes fixed on the presentation being displayed in the conference room. Then the salesperson says something that disturbs the client, and the client shifts in his chair. His brows furrow a little. His eyes are no longer open wide, but squinting slightly. His hand comes up to the front of his face, palm on his chin, fingers over his lips.

The client has just sent a signal to the presenter. It is an unmistakable signal, if the presenter is properly attuned to body language. The signal says, "Hmmm. Wait a minute. This doesn't sit well with me."

In any sales situation, the seller wants the buyer to buy. The buyer, meanwhile, is considering the purchase - and alternative courses of action. Most sales training gurus would call those alternatives "objections," and salespeople are trained to "counter" those objections.

But this usually backfires.

Here are some typical "alternative courses of action" that could be floating around in the buyer's mind as she listens to a sales pitch:

Most business activities can be managed in a fairly straightforward fashion. You decide what you're going to do, you create a project plan - complete with cost and timing - you get the right people to execute the plan, you build in checkpoints, and then you set the wheels in motion.

The chances of these activities being successful are fairly high. The barriers to success are internal politics, unrealistic expectations, and mismanagement or ineptitude as the project progresses. These problems can be overcome with effective management. Politics can be squashed by managers who are forthright and goal-driven. Unrealistic expectations can be avoided by seasoned managers who have "been there, done that," and they know what can go wrong. Mismanagement isn't a problem when the managers gather accurate data and make sound decisions. Ineptitude shouldn't get in the way - even when it is well-disguised - because good managers can spot ineptitude a mile away.

A perfect example of the buyer being "fed a story" by a vendor.

I recently interviewed a network security manager while doing customer research for a client. His name is Alan. He works in the IT department of a large UK company. His story is similar to those I hear from countless others around the world who describe their buying process to me.

Alan's story shows quite clearly how vendors lose sales because they deceive their clients.

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.