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"We made 100
cold calls this week, had twelve really good face-to-face appointments,
and still we closed no new business. What are we doing wrong?"
Sound familiar? This
week, I was given the opportunity to participate in a fascinating event.
Scott Wintrip, founder of StaffingU (http://www.staffingu.net)
allowed me to listen in on one of his sales training classes. Scott's
advice was terrific. But what I found most interesting were the frustrations,
and the perceptions, of the sales professionals involved.
Listening to these
people was kind of like watching someone run up the down escalator. You
know they may get were they're going, but what a waste of energy! For
example, consider how these people are being told to deal with the current
economy:
- Since business
is slow, these reps are under intense pressure to compensate for declining
sales by making more cold calls.
- HR managers, who
are sick of the near constant onslaught of staffing sales reps, are
becoming increasingly resistant to traditional sales tactics.
- High volume accounts
are using just a fraction of the services they did two years ago, yet
many of these reps are focusing on selling to the major accounts.
Pretty easy to see
why sales people feel frustrated. They're using transactional selling
techniques (cold calling and order taking) in a market that isn't buying.
And rather than changing their techniques to deal with market conditions,
they're being told to simply do more. These poor people are fighting an
uphill battle and relying on outdated tools.
Making New Clients
If you were in the staffing industry 25 years ago, you probably didn't
do a lot of transactional selling. When you called on a new account, you
couldn't ask them about their staffing needs; they didn't have any (or
at least, they didn't know they had any). To close sales, you frequently
had to teach people what a "temp" was and how to use one. Essentially,
you made new clients through a process of education.
Today, many companies
have become sophisticated users of staffing services, particularly those
with large HR departments. You're not going to teach them about using
temporaries. However, many other companies, particularly smaller ones,
still don't really understand the value of staffing. Let me share a story
I think you'll find interesting:
Three years ago,
I participated in a program at the University of Buffalo's Center for
Entrepreneurial Leadership. My class consisted of 22 business owners,
and as part of the program, each owner gave a presentation on his or
her company. One gentleman in my class ran a highly successful distribution
firm. In his warehouse, they outsourced 100% of their labor to a staffing
firm. Now here comes the surprise
.
During the Q&A
period, 20 of 22 other owners berated this owner for his use of "temps."
They threw out all the typical stereotypes: "they're not reliable,"
"quality will suffer," "they're expensive," etc.
To my shock, these 20 business owners unanimously viewed temporary staffing
as a bad thing
and certainly not as a means to running a more profitable
business.
In today's market,
educational selling can play a big role in growing sales. With small companies,
you can use education as a means to sell value. In your sales process,
show people how you can help them to control costs, improve productivity,
manage risk, and get more work done.
With larger companies,
educational selling may be a bit more challenging. First, you have to
find out what kinds of people-related challenges the business is having.
Next, you have to determine if (and how) you could solve these challenges.
And finally, you have to convince a fairly savvy consumer that you can
really solve the problem
and that the solution justifies the price.
While it may not be an easy sale, educational selling may be the only
way to get beyond the pricing game with larger accounts.
Educational
Selling "How To"
Step 1: Define the kinds of problems you can solve.
Step 2: Identify businesses
likely to be having those kinds of problems right now.
Hint: If you can,
skip the big companies with sophisticated HR departments.
Step 3: Create an
educational curriculum.
- Break your educational
message into a series of small pieces.
- Be sure to repeat
key learning points often.
Step 4: Deliver your
curriculum.
- Get your message
to your prospects (and even your clients) through the most cost-effective
methods. Consider using a series of direct mail, e-mail, drop-offs,
seminars, or a mix of all these techniques.
Step 5: Follow-up,
follow-up, follow-up.
- Integrate your
education with your sales efforts.
- Don't just sell,
focus on helping clients and prospects to understand how your services
can help their business to be more profitable.
Making It Work
Training
Unfortunately, many sales reps do not fully understand how staffing can
be used to solve problems. Some don't know how to sit down with higher
level decision makers to determine the real problems a company has. Before
sending your educational curriculum to the outside world, share the information
inside your company. Teach reps about the value of staffing. Provide them
with a list of the kinds of questions they can ask to uncover problems
and offer formal training on selling to executives.
Coaching
To maximize the effectiveness of your sales and service staff, hold regular
coaching sessions to review specific client challenges and brainstorm
staffing solutions. Through this process, everyone will come to better
understand the value your services can offer and how to sell that value
to their clients.
More training
Effective training is not a one-time event. Make training a process you
regularly repeat.
Purchase your content
curriculum
Educational content sounds like a great idea, but it's hard to create.
Most people don't have the time to develop this kind of curriculum in-house.
Find an outside vendor who knows your industry and can help you create
the right content to sell the value of your services.
Think cost-effective
Find ways to reach the most people with the greatest impact for the lowest
cost. Often, a mix of media is most effective (e.g., direct mail, e-mail,
in person).
Be Persistent
Educational selling is not a quick fix. It takes time to get people to
recognize and admit to their problems, understand the value you can deliver,
and develop enough trust in you to test out the solutions you recommend.
Stick to the process, and over time, people will come to see you as an
expert, a problem solver, and someone to whom they want to give their
business.
About the Author
David Searns, is President of Haley Marketing Group, a relationship marketing services firm specializing in the staffing industry. Haley Marketing provides relationship marketing campaigns, e-newsletters, postcard campaigns, website design, marketing strategy & creative services to staffing and search firms throughout the US and Canada.
Prior to forming Haley Marketing, David was Director of Marketing for a Western New York temporary staffing and direct placement service. He holds an MBA from the Wharton School of the University of Pennsylvania and a Bachelor's in Management Information Systems from Clarkson University.
For more information about Haley Marketing, please visit www.haleymarketing.com.
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