Selling in tough times - Supplier Savvy

T+D, March, 2002 by Diane Hessan

Last fall (after September 11), the Instructional Systems Association isaconnection.org surveyed its members--150 leading learning and performance consulting suppliers--to determine the impact of the economy on their businesses. The results were predictable: Eighty-two percent reported that sales were lower or flat compared to the previous year, and most respondents expected that trend to continue for the foreseeable future. Respondents also remarked on the significant number of clients having to postpone projects.

There's no question that in good times, almost anyone can sell. No more. Challenging times call for selling that differentiates a supplier from the crowd, that's truly customer-focused, and that earns the right to do business with a company.

What does it rake to sell successfully in tough times? Having been around the industry for more than 20 years, I have some thoughts. But to make sure I got it right, I asked 10 of my favorite chief learning officers what advice they'd give about selling in the current environment. Here are the words of wisdom that emerged.

Do your homework. No advice was proffered more frequently than the importance of a supplier doing its homework instead of wasting customers' time. Taking place all over the world are conversations similar to this one:

Customer: "Hello, Catherine CLO speaking."

Salesperson: "Hello, Cathy. I'm John Doe from Perfect Training, and I'm calling because I know I can help your company, BigCo, with its e-learning needs. (Goes into features and benefits for several minutes.)

Customer: "Excuse me, but did you say you can help me?"

Salesperson: "Yes, ma'am!"

Customer: "Well, tell me a little of what you know about my company and our needs."

Salesperson: Well, I haven't had a chance to explore that just yet, but I plan to before we meet."

Customer: "Thanks, but we're set."

Most suppliers think their salespeople wouldn't call a prospect without doing their homework first, but my CLO advisors say it happens to them frequently--especially lately. They say that a salesperson with some basic understanding of the client company and its issues is the exception rather than the rule. In a way, that makes sense: In difficult times, sales managers tend to put on the pressure to rack up revenue, asking their salesforces to make as many calls as possible. The unintended consequence is that salespeople meet their activity goals by preparing less and calling more-- plain unproductive.

One global head of training and development with a $20 million budget says that he expects suppliers to be current and thoughtful. "My advice to [salespeople] who want to impress me is that they deepen their understanding of my challenges and demonstrate they've invested some time in learning about us. They don't have to be completely right the first time.

Another training purchaser says, "I want the seller to know a little about who [we are] and what [our] gaps are. I hate it when X calls me and asks if we do e-learning when we're one of the largest technology companies in the world."

Know how you can help customers increase sales or decrease costs. One CLO says, "These days, suppliers need to come into corporations knowing the dollars that their programs will add to the bottom line and how they'll drive shareholder value. They need to have solid examples of similar industry successes, and they need to be crystal clear about the business problems they're solving."

Hans Jerrell, a senior learning executive at Defense Acquisition University, puts it another way: "Your product won't even be on my radar unless it can save me time, trouble, and money. And yes, I want derails and facts."

Although a supplier might be in love with its product or service, it needs to connect its solution to the need or problem it addresses. In the good old days, "better knowledge sharing," "improved learning," or "increased employee retention" were enough to make a sale. But now, if a supplier can't tell customers how its solution will add to revenues or decrease costs, it'll have a tough time getting their attention.

Discount if you can get something in return. Beth Thomas, a senior learning executive at The Limited, says, "[Suppliers] should realize that even if they aren't willing to make a deal to get business, several of their competitors are ready to do that."

That's absolutely critical advice in tough times. A supplier shouldn't drop its price arbitrarily, but clients will expect a vendor to go the extra mile. Suppliers should figure out what they can get to justify a discount: A larger or faster initial payment? Quicker implementation? A way for the client to pick up some of the work? A much-needed referral? Clients are completely aware of a supplier's need to make a profit, but they also know that all situations aren't created equal.

Realize that customers are inundated with prospecting calls. More than 10 years ago, I moderated a panel for the training industry, and someone in the audience asked for advice on great marketing materials. A panel member, a senior-level learning executive at Blue Gross/Blue Shield of Massachusetts, stood up, grabbed a box she had onstage, and emptied it onto the floor. Dozens of letters and brochures spilled our, including a (brilliant) brochure from me. "This is my mail from training suppliers in the past two days," she said. "You're all making me crazy."