Category Archives: Sales Performance
Competing against an incumbent provider is one of the more challenging sales situations that we encounter. The existing account holder likely has a stronger relationship with the client, first-hand knowledge of the client’s business, and enjoys the benefit of being a known entity. Remarkably, even with mediocre performance, an incumbent can be difficult to unseat, and a lot of the reason why is attributed to psychology. There are a few neuroscience concepts that give us some insights as to why customers hold on so tightly and how a challenger might loosen the grip.
Loss aversion is the simple idea that the fear of losing something is much stronger than the joy of gaining something — in fact, it is about twice as strong, according to research. In a competitive sales environment, that means that the value proposition of a challenger needs to be significantly stronger than that of the incumbent if the challenger hopes to win the business. Loss aversion is how even relatively weak providers maintain accounts. So why is our fear of loss so strong?
It is human nature to overvalue what we already own; this is called the endowment effect. It is evident when people are reluctant to part with something they own for its cash equivalent, or if the amount that people are willing to pay for something is lower than what people are willing to accept when selling it (Kahneman, Knetsch, & Thaler, » Continue Reading.
In sales, we hear them all the time — objections from our customers that just don’t make a lot of rational sense… not to us, anyway. We don’t say it out loud, but we’re thinking, “What? Where did that objection come from?”
The irrational objection is one of the tougher challenges in Sales because we know that there is something deeper that the customer is not comfortable sharing. Also, the customer may not be fully aware of some of his/her deeper drivers. Since the sale will not progress until we resolve the objection, we need to discover what is causing the objection — but how?
Our brains — ergo, our customers’ brains — are wired with biases that cause errors in judgment. Because we may not be aware of these cognitive biases, even skilled questioning may not reveal them. During the sales dialogue, we need to identify and understand biases and get good at using “debiasing” techniques to move the conversation forward.
The Status Quo Bias
The status quo bias is at the root of many irrational objections. It’s really simple to understand — our brains don’t like change. Essentially, we have a preference for things to remain the same until the status quo becomes too uncomfortable to accept. This bias is a powerful and normal reaction for us in response to anything new and » Continue Reading.
For the Third Consecutive Year, Richardson has been Named to Selling Power’s 2015 Top Sales Training Companies List
Philadelphia, PA—July 20, 2015 — Richardson, a leading global sales training and effectiveness company, announced that it has been included on Selling Power’s 2015 list of the Top Sales Training Companies for the third consecutive year. The Selling Power Top 20 Sales Training Companies list identifies leading companies that excel in helping sales leaders improve the performance of their sales teams. Selling Power editors say that the firms included on the 2015 Top Sales Training Companies list have “demonstrated an excellent awareness of the skills and tools required to succeed and remain competitive in today’s selling environment.”
According to Selling Power magazine publisher and founder Gerhard Gschwandtner, sales training is a vital component of a high-performance sales organization. “Great salespeople require the right toolset, the right skillset, and the right mindset to win,” he said. “A great, consultative sales training initiative can address all three areas. Sales leaders should use this list of the Top 20 Sales Training Companies to find the solution that best suits their needs.”
“We are very thankful and honored to be recognized once again as one of the top sales training companies in the industry,” says Jim Brodo, SVP of Marketing at Richardson. “Richardson’s success is a direct outcome of working with some of today’s most innovative clients and by the excellence and » Continue Reading.
Connecting Dots in the Sales Performance Ecosystem
We’ve written a few times about the Sales Performance Ecosystem. It can be a daunting concept. While many people can relate to what’s included, either the sections or individual elements, how to actually intertwine and align the elements (or “connect the dots”) is often less clear.
Focus on Your Average and Bottom Performers to Improve Sales Performance
Yeah, I know. Based on the title, you’re already shaking your head, wondering if I’ve finally lost my marbles. Hang with me… I’m pretty sure you’ll see what I mean.
In an earlier post entitled “Which Top Producers Should You Study to Develop Sales Training Programs?”, I introduced a sales analytics approach that I’ve use for analyzing top producers and placing the sales organization into six major bands.