You Are The Key: Unlocking Doors Through Social Selling

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AUTHOR’S NOTE

Many thousands of years ago, a giant Goliath was fighting against the then mighty kingdom of Israel. He was the Philistine’s surefire ticket to success. Towering several meters above normal people of that time, well built & strong, he would send shivers down the spine of the most fearsome of kings & warriors. Conscious of his own power & awe, he would have a standing, open challenge for combat every-day during the 40 day war which no one took up for obvious reasons.

David, a small, common man from Israel, worked hard to earn bread for his family. Barely being able to make 2 ends meet, he desperately kept looking for smart, inexpensive ways to make a living & keep himself afloat. He heard of the combat challenge, a bounty & decided he could do it. Success here, was not an option for him.

On the day of the combat, David the commoner faced Goliath the giant armed only with his intelligence, confidence, 5 small stones & his slingshot. From where everyone saw it, it was an instant write off – he’d be wiped off in a blink. From where he saw it, his size made him deft, agile & far closer within striking distance than anyone else.

Rest, as they say, is history. It took him one slingshot, timed right & aimed perfectly to get Goliath down.

We live in an era of Goliaths – big brands & large corporate giants who have the advantage of size & scale. More & more Davids in the form of start-ups are springing up every day challenging the might of these giants. So what do these Davids have to take that perfect aim? Social Media becomes that slingshot that allows the Davids of today to unlock doors to that success – for them to challenge the status quo & unleash their own power to reach out to their audience & make a mark.

It is my attempt in this book, to explain threadbare this Social Media & help each one of you to leverage your own power.

Apurva Chamaria

January 2016, New Delhi

YOU ARE THE KEY

UNLOCKING DOORS THROUGH SOCIAL SELLING

1

THE PARADIGM SHIFT

TO SOCIAL SELLING

Everything that can be social will be

Jeffrey Dachis, Chief Evangelist and Advisor at Sprinklr,

Co-Founder Razorfish

In this chapter, we will look at the evolution of sales processes over centuries. The objectives are:

1. To understand the evolution of sales processes

2. To understand the different types of sales processes/methodologies

3. To gauge the difference between social selling and social media marketing and

4. To understand how large organizations have benefitted from social selling

We are more social than our ancestors. From the ancient cavemen, to the beginning of tribes, societal structures, and emerging economies, social interaction between mankind has moved the world. The tribal societies were based on closed group communities where people lived in clusters, spoke the same language and followed the same practices. This was a society that had little to do with others. Highly territorial, aggressive as typical huntsmen, and extremely loyal; tribal societies were run by a common belief in their origins. Money and currency were still inventions in the distant future, and so, the society in its earliest stage began with the barter system. Barter is an old method of exchange where people exchanged goods and services for other goods and services. The historyof barter system dates back to the 6000 BC and was first introduced by the Mesopotamian tribes. The Phoenicians bartered goods to other civilisations around the Mediterranean. The Babylonian civilisation further developed the barter system. Goods were exchanged for food, tea, weapons and spices. While Egypt, Rome, Babylon and Arabia grew as trade centres, the Silk, Spice and Incense routes were formed. At some point of time, salt became a valuable ingredient and a form of currency for barter systems.

As man discovered that soil could be cultivated, so were sowed the seeds of an evolved society. The agrarian society formed the basis of economic institutions, political systems, governments and trade. The years preceding 3000 BC were most fruitful in terms of innovations and inventions. One of the most significant innovations of the period was the wheel, followed by the plough. The plough cultivated the consciousness of the people and held the greatest potential for social and cultural change. This singular piece of invention made large scale cultivation possible. It also facilitated the harnessing of animal energy, which further grew productivity. With land being the most powerful resource, conquests and land grabbing gained practice, and so there was a need for governance and enforcement of law. The agrarian society in its early years found the barter system a useful form of exchange. However, with time, an informal exchange of goods and services was running its utility to the end of the line. This was also the age that saw the emergence of money and currency.

As society grew, the industrial age saw finished products entering the market place. Factories came up, labour was deployed, busy hands and bodies sweated it out in factories making products that society needed. One of the first countries to industrialise was the United Kingdom during the Industrial Revolution in 18th Century. Product development, inventions, and innovations drove economies, and he who had a remarkable product would find ways to sell it. The post-industrial age saw products taking a back seat as services defined the selling proposition in the world. People realised that products alone cannot define their lives; they need services that will drive businesses. For the first time, the spot light moved towards professionals and technicians and was marked by an increased valuation of knowledge. From services, solutions were a natural and easy extension. People and businesses needed solutions that weren’t easy to find. The term ‘post-industrial’ was first coined by American sociologist Daniel Bell in his book ‘The Coming of Post-Industrial Society’, released in 1974. So even when there was a pool of professionals to choose from, some decided to outsource the services to people who provided solutions to them. Today we are at the crux of yet another churning of how businesses are run, as social selling becomes the defining mantra of modern day trade. Today, it is no longer important to stand up and sell a product; what matters is how we engage our audience and generate conversations. The form of exchange today is the feedback, review and endorsement that customers share through social networks!

The laws of microeconomics find a direct correlation between demand and supply. I would throw in sales as a game changer in this classic economics equation. While demand determines supply and vice versa, it means little something if the correct sales methodologies are not deployed. But then, why does something have to be ‘sold’ when there is a demand for it? No business owner wants his/her products or services to drown in a sea of competition. It is the sales efforts of the company that can sort the chaff from the hay and really make any business grow over its competitors.

Sales methodologies have evolved over a period of time, and there is a reason for that. Mainstream sales methodologies began to appear in the late 1970’s, and were in fact, a by-product of the technology boom and early years of the information age. Technology was making bold inroads into businesses, and those deploying in their businesses were looking to make the most of their position. There was a sudden need to catch up with technology. So, if businesses were evolving with majority of services are incorporating technology, then why would the sales methodologies not match up? This demand-rich period also produced a large volume of sales opportunities. Naturally, many sales training vendors capitalised on this emerging market by creating their own sales methodology and training practices. By the time the 90’s came knocking at the doors, the internet was poised to change the game again and perhaps forever!

But then how many are there and how to decide which one works for you and/ or your company? Let’s now discuss how the sales methodologies evolved over the years.

SEVEN STEPS SALES METHODOLOGY

The origin of the Seven Steps sales methodology is unclear, but it is said to have started finding mention in books around sales techniques in the early 20th century. The original, commonly used Seven Steps terminology is as below. In recent years, more sophisticated interpretation and application of the Seven-Step selling process requires the model to be expanded and interpreted with more subtlety and flexibility, as shown here:

1. Prospecting/ preparation/planning/research

2. Introduction/opening/pre-approach/establish initial credibility

3. Questioning/identify needs/ask how and what/establish rapport and trust/ approach

4. Presentation/explanation/demonstration

5. Overcoming objections/negotiating/fine-tuning

6. Close/closing/agreement/commitment/confirmation

7. Follow-up/after-sales/fulfill/deliver/admin

AIDA AND AIDCA

AIDA stands for Attention, Interest, Desire and Action while AIDCA which evolved later, stands for Attention, Interest, Desire, Commitment and Action. It is said to have evolved from earlier work by American psychologists concerning assimilation and understanding of communications and information. Walter Dill Scott’s ‘Attention-Comprehension-Understanding’ model, developed in 1913 at the Chicago Northwestern University, is considered by some as one example of possible contributory thinking, which lead to the development of AIDA; although it is unlikely that a specific single origin for AIDA actually exists.

Often referred to as the ‘Hierarchy of Effects’, AIDA describes the basic process by which people become motivated to act on stimuli, including the way that successful selling happens and sales are made.

The beauty of AIDA lies in its simplicity and linear approach to the sales process, and here also lies its greatest drawback – in the era of social media, people often don’t follow a linear decision-making process.

DALE CARNEGIE’S SALES COURSE

Dale Carnegie (1888–1955), the American writer, speaker and businessman is often given the credit for most of the early development of selling skills and conventional sales-training theories. Although Carnegie started his training business in the early 1900s, focusing on personal development, it was only much later in 1937 that his self-help book ‘How to Win Friends and Influence People’ became a rage and spawned off many ideas which formed the bedrock of traditional selling throughout the 20th century.

PROFESSIONAL SELLING SKILLS (PSS 1, 2 & 3)

The story of modern sales methodologies was pioneered in 1968 by Xerox, when the corporation created an internal sales training programme and methodology to combat still competition in the photocopying business. Don Hammalian, an executive in the Xerox team, developed a new approach to selling – a sales method which evolved many times and by Version 3 came to be known as the Needs Satisfaction Selling. This is a technique based on the premise that in order to attract and retain customers, salespersons need to understand selling from the customers’ viewpoint. Both new and experienced Xerox sales professionals were taught to understand the true value of a ‘win-win’ experience with prospective and existing clients, and learned that professional sales persistence during a presentation to a prospect was expected by all decision makers. PSS taught that at a subconscious level, all decision makers want a sales person to ‘deserve and earn the right to an order’ and to help solve a problem for them or their company. Xerox was reputed

to have the best sales training programme in the world, and some of the Xerox sales alumni went on to become world famous business leaders like Bill McDermott, CEO-SAP, Jerry Whalen, Head-Sales (USPS), etc.

FAB AND USP

In the mid 1970’s, the product offer or sales proposition gained focus. A sales proposition is how the product or service is described and promoted to the customer. As an opening or initial proposition, the words are used by the sales person to attract attention and interest in verbal and written introductions to prospects – so it has to be concise and quick – remember that attention needs to be grabbed in less than five seconds. FAB, USP and UPB came to characterise this movement.

Features, Advantages, Benefits (FABs) was developed in the 1970s. FABs were identified by the brand owners and handed by the sales training department to the sales teams, who rarely thought much about developing and/or customising them. The biggest problem with the Features, Advantages, Benefits (FAB) model was that customers usually don’t buy features and advantages; what they really buy is what the product’s features and advantages will do for them, which in selling terms is called the benefit.

The unique selling proposition (USP) or unique selling point is a sales and marketing concept first proposed as a theory to explain a pattern in successful advertising campaigns of the early 1940s. The USP states that such campaigns made unique propositions to customers that convinced them to switch brands. The term was developed by Rosser Reeves of Ted Bates & Company. Sales executives in 1970’s were often taught to explain the USP of the product.

SOLUTION SELLING

There are other sales methodologies like Michael Bosworth’s Customer-Centric Selling or Solution Selling, each approaching B2B sales differently. Based on his experiences at Xerox, Mike Bosworth founded Solution Selling in 1983 and began appointing partners in 1988. With intellectual-property contributions from his collaborators, Bosworth’s methodology continued to evolve through the years. Mike sold the Solution Selling IP in 1999 to one of his original collaborators Keith Eades (CEO and founder of Sales Performance International (SPI)). Bosworth authored Solution Selling: Creating Buyers in Difficult Selling Markets (1994), and after leaving Solution Selling, he co-authored Customer-Centric Selling (2003). Less than a year later, Eades authored an updated version of the solution-selling methodology, released as The New Solution Selling and also co-authored a follow-up guide.

‘Solution-Selling’ practitioners generally apply a consultative sales approach to all aspects of their sales process (or during a sales cycle) including: Prospecting, Diagnosing customer needs, Crafting a potential solution, Establishing value, Bargaining for access to decision makers, Positioning proof, ROI and the total solution, Negotiating a win-win solution and following up to ensure customer success.

STRATEGIC SELLING® AND LAMP®

In 1985, Robert M Miller and Stephen E Heiman went on to publish a book called ‘Strategic Selling’. Miller Heiman looks at demystifying this conundrum by introducing their sales methodology of ‘Strategic Selling’. Expert in the field of sales training, Miller Heiman has developed an extensive module, helping organisations find their bearings around strategic selling. The process really begins right at the top by identifying and engaging the forces within an organisation who are the movers, shakers and decision makers of the company. The tacit ploy is to architect solutions with unique compelling value, and subtly eliminating competition. This is akin to a war plan, a strategic set of steps that will kill competition and tackle all the decision makers at one go! Organisations are typically an intricate maze of people and processes. The organisational chart can often be misleading. So, understanding the power base and influence dynamics within the customer’s environment will help in aligning the value with their problem areas.

The rules of strategy begin by intelligence gathering. So, before you know what you are headed towards, the first step is to gather as much information as possible. Nothing wins the management better than showing them that you have done your homework! So go ahead and set the agenda. Being strategic in your approach is best achieved by being the first to approach the top management’s door. It also means to truly understand the organisational dynamics and setting agendas against the biggest problems and opportunities of your potential client. The Miller Heiman technique of strategic selling involves the salesperson to talk like a business owner. When dealing with the top management, you cannot cut across the line as someone standing before doing a job or representing a solution. Instead, it advises you to own the solution! How does one do that? Being an authority in one’s domain is a possible start. So show your SME skills and understanding of the client’s environment, business and industry. Pull up the umbrella and show how your organisation has saved other businesses from the torrential downpour of business pain points and problems.

Being strategic in your selling proposition means you have to allow your customer call your product/ service the solution that he is looking for. Problem solving is the first and natural step, where the quantum of the client’s purchase is determined by the quantum of the problem being addressed by you. Facts, figures and analytics bring out the machinery and apply it on the client’s environment. Only the customer can define the true value of any product or service. The criticality of every sales process depends heavily on the competition. At no stage of the sales process can anyone discount the existence of multiple players who can affect the management’s buying decisions. Your competition is your enemy; you have to know their products as well as you know yours; in fact, sometimes even better than your own! Your strategy should have a careful analysis of what your competition offers and how and why is your offering a better choice in the market. Your competition is your business risk and at no point should you be not aware of them!

Strategic Selling was bolstered by the LAMP (Large Account Management Process) methodology for major accounts management developed by Robert Miller, Stephen Heiman and Tad Tuleja in their 1991 book, ‘Successful Large Account Management’.

SPIN® AND SPIN SELLING®

Rackham’s SPIN® model is a simple communications structure used by a sales person to develop the selling opportunity with the prospective customer: S – Situation – the customer’s circumstances, P – Problem – a difficulty for the customer, I – Implication – the difficulty causes more serious disadvantage/cost and N – Need (or Need-payoff) – the difficulty must be solved (by the seller’s offering).

SPIN selling builds on the bedrock of consultative selling. The onus lies on the seller to identify the client’s pain points by using a power suite of questions. Spin selling revolves around asking situational, problem, implication questions and questions around need-payoff. Published in 1988, SPIN Selling, Neil Rackham’s book from his extensive 12-year study into successful selling behaviour in 20 leading sales organisations, in 23 countries, involving analysis of data from 35,000 sales calls, is nothing less than the holy book for salespersons worldwide, and looks at deconstructing the customer pain points by the customer him/herself. The competitive set of questions begins by taking stock of the customer’s current situation. It’s quite like the ice-breaking process, trying to sink one’s feet in the customer’s business, trying to understand where the loop holes lie. The next step in the sales process is identifying and drawing out the problem