Earlier this year the team of Google and CEB published a report that shows that over the last decade that business customers have drastically changed the way they work with vendors. Historically there was a very classic sales model that defined how vendors sold things to businesses, but with the Internet the entire sales process has changed.
Historically sales have been done by the book, and there literally shelves full of books about sales that laid forth the classic sales process. These books preached that the sales process involved the following steps:
- Identifying the sales opportunity
- Qualifying the opportunity
- Making a proposal
- Closing the sale
- Post sale implementation and follow-up
But the Google and CEB report says that businesses, on average, are already 57% through the historic sales cycle before they first talk to a vendor today. And this is all due to the Internet. A customer is able to do now fully research the products and solutions they are interested in. They can read reviews from other similar companies who have already bought what they are looking for. They can compare prices and service from alternate vendors without talking to any salespeople. And by the time they contact a vendor they are mentally much of the way through the sales process and generally are ready to make a choice.
So how does this change the way that companies sell telecom services? I would suggest it means some of the following.
- Listen to Your Customers. First, it means that your salespeople need to become adept at listening, something that is not always a salesperson strength. If a potential customer has already done their research then they want to discuss the nuances of the products they are interested in and they want to ask questions. They do not want to start at the beginning of the above sales process. So ask your customers how much they already know about what you are selling to save you both time.
- It’s Harder to Sell on Price Alone. Customers who have done their research are already going to have a price in mind, and this makes it hard to sell on price. So instead you need to be able to define the value proposition of why a customer should buy from you and not one of your competitors. Telecom companies are famous on selling by price alone since we inherited a world with many services greatly overpriced by the incumbents. But web research is beginning to kill price as a differentiator and so you better have other reasons why a customer should pick you.
- Be Knowledgeable. If customers are doing their homework then your salespeople need to really understand the products. Again, this is another reason you can’t just send out salespeople who are just going to offer a discount from the current monthly telecom bill. It means sending out somebody who really understands the nuances of what you are selling.
- Master Consultative Selling. The most effective sales technique to use with a knowledgeable customer is consultative sales. This means that you are not there to sell them a product, but instead there to find them the solution that best fits their telecom needs. This is the one advantage that a good salesperson can have with a customer who has done their homework. Such a customer will understand only so much about telecom products and is usually going to be willing to listen to creative solutions that might be different from what they thought they needed.
To sell in a consultative way rather than on price alone means you are going to need a well-trained sales staff, and probably are going to have to pay them more than the traditional salesperson. But the upside is that customers become very loyal to a vendor who helps them solve problems. For many telecom firms, that kind of loyalty is going to be a refreshing change.