Selling: It’s a Matter of Trust

Posted on by Scott

sleazyThe concept of selling has been around a long time. Even before the first coins were minted around 600-700 BC, selling was a common practice. The bartering of goods and services in exchange for other items of value required people to convince each other that any given item was more valuable than something similar offered by someone else. The exchange of items of value is, in essence, selling.

It wasn’t until 1886 that the idea of sales as a profession came about. John H. Patterson, the president of NCR would identify the top person in prospect companies, sell them a cash register, and then incent them to share the word with other business owners. This marked the first time that people were paid for selling something they didn’t themselves create. It didn’t take long for the practice to spread.

In 1916, the first World Salesmanship Congress was held in Detroit Michigan. President Woodrow Wilson spoke and led credence to the idea of salespeople being important professionals. The theme of the congress was “trust-based” selling, an indication that nefarious practitioners had already begun to infiltrate the profession.

Ultimately, trust is at the heart of any sales proposition. Whether bartering or exchanging products and services for currency, both parties involved have to trust the other. In today’s sales environment, the burden of trust rests most heavily on the shoulders of the salesperson. They must appear trustworthy is the customer is to believe that what they are receiving is of sufficient value to justify what they are asked to pay. You might get away with violating a customer’s trust once or twice, but that’s it. Broken trust leads to broken relationships, and sales is all about relationships.

It’s the concept of trust that allows us to function as well as we do. Researchers have identified three functions that trust performs in society and interpersonal relationships:

Trust makes social interactions predictable. When you first meet someone new, you don’t know how they are going to act. But after a very brief interaction, you begin to pick up on patterns in their behavior. It’s these patterns that determine how you anticipate their future actions. Having observed the behavioral patterns of individuals over time, you can predict how a potential interaction will unfold. We start to “trust” that people will act a certain way.

Trust creates a sense of community. We tend to associate with people who behave in ways we prefer. It’s our trust in the future actions of others that leads us to form social groups. Your circle of friends exists because you’ve come to trust this group of people will act in ways you find agreeable. We move toward people we trust and away from those we do not.

Trust helps people work together. As communities develop, you trust that any given member of that group will act within the accepted boundaries of behavior. This means we don’t really have to know a specific individual in order to develop a level of trust with them. By affiliating with a particular community, we assume an individual believes in the same things as the group. We expect their behavior to follow the predictable mold that drew us to the group in the first place.

Think about the individuals and groups you associate with. How has trust influenced the makeup of your circle? What behaviors drew you to these groups? What behaviors would betray that trust and drive you away?

As salespeople, we have chosen to align ourselves with individuals and communities that communicate particular levels of trust. You reputation depends on, and impacts, the perceived level of trust customers have in your coworkers, your organization, and even others in your same profession working elsewhere. Each of us has a responsibility to validate, and strengthen, the trust placed in us. It is trust that leads customers to willingly engage with us, join our community by purchasing our products, and continue working with others in our organization.

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Why is “Sales” Such a Dirty Word?

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good-1123013_640Black or white. Good or evil. Republican or democrat. Positive or negative. We’ve gotten pretty good at drawing lines in the sand, haven’t we? As a society, and a species, we love to categorize and label people, things, and activities. We somehow feel more comfortable having declared our alliance with a particular side and then view the world in terms of absolutes. You’re either on one side or the other. We have a hard time making sense of any gray area, so we stop acknowledging that it even exists.

That’s often the way people view the ideas of sales and service. Sales is bad. Service is good. If you’re a salesperson, you automatically inherit the most negative connotations the word can conjure up. You can’t possibly provide good service, because your job is to separate me from my money, right? How can anyone who chooses to be a salesperson also profess to be a service provider? It’s hypocrisy.

I get it. There’s a lot of unethical behavior out there that, to some extent, justifies the categorization of sales as bad. Deceptive advertising, hidden costs, bait-and-switch tactics, and even outright lies – they’re all out there. Every person reading this has no doubt been burned at some point by an unscrupulous salesperson looking to line their own pockets by playing on our innocence.

And so we’ve come to believe in the evilness of sales so strongly that many advocate eliminating the word from their corporate vocabulary. Instead of salespeople, we have consultants and advisors – as if changing the word does anything to mask the intent behind the behavior. They cringe when someone identifies sales for what it is and then try to explain how what they’re doing away as something different – something less offensive.

I think it’s time we put an end to this practice. I say we take back the word “sales” and acknowledge it for the noble profession that it is. How dare we allow the bottom-feeders out there to pollute the collective consciousness of our customers? How dare we hide behind some politically-correct term that attempts to soften an activity that has no shame?

Sales is a good thing. Without it, we wouldn’t know what new products are being introduced to the market. We wouldn’t hear about additional features and benefits that can enhance our lives. Without the proactive actions of caring salespeople, we’d be lost – searching for answers to problems we don’t even know we have.

Like most things though, there’s a right way and a wrong way to go about selling. The stories we tend to hear about – the ones that form our negative opinions about salespeople – are the ones that go bad. They’re the ones that leave us feeling uncomfortable with the process and the result. They’re the ones that cause us to avoid salespeople like the plague. Remember, we move toward those things that cause us pleasure and away from those that cause us pain. If all we experience or hear about are painful sales encounters, it’s no wonder we avoid them.

My wife just bought a new car. For most people, the prospect of interacting with a car salesman is pretty low on the “things I want to do today” list. But let me tell you about John. He does his job well. He asked Susan the right questions. He picked up on subtle cues and clues that indicated her preferences. He provided information that helped place each car she looked at in the proper context relative to the others on the lot, and those offered by his competitors. There were no vague answers, no off-the-cuff promises, and no high-pressure pitches. He simply sought to understand the customer’s needs and then pointed her to a product that would meet them.

The process of buying my wife’s new car didn’t feel sleazy. It didn’t feel like we were getting cheated or misled. It felt right. When my wife told the manager how impressed she was with John, he nodded his head in understanding. It turns out John has won many awards for sales excellence over his 20 year career with the dealership, and has a large list of repeat customers. I can see why. His approach to selling makes for a pleasurable experience – people are naturally drawn back to that. John is a salesman, and proud of it.

The world needs more people like John. We need men and women who actively seek to understand what the person in front of them needs and then share how their product can meet those needs. We need salespeople. Look around at your coworkers. They could be those kind of people. You could be one too. Let’s do it together.

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How To Recover From a Setback

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captain-america-861757_640Whenever superheroes and supervillains clash, there will inevitably be a high degree of collateral damage. Vehicles, buildings, even entire cities are destroyed when good and evil collide. But after the battle is over, who picks up the pieces? Who cleans up the rubble, replaces lost inventory, and compensates the victims after the dust has settled?

According to Marvel Comics, that would be Damage Control. Housed out of New York City’s Flatiron building, Damage Control was initially funded by a couple of billionaires before going public. This pseudo construction company exists to quickly get things back to normal (or as close to it as possible) following the epic showdowns that happen with regularity in a world inhabited by super-humans. Since its introduction in 1989, Damage Control has quietly come to the rescue in a number of movies, comics, and television series.

If only real-world businesses had Damage Control as back-up.

Who cleans up the mess when things go bad for your business? When good intentions have unintended consequences, who bails you out? When your best laid plans don’t pan out and you find yourself behind the growth curve, who rights the ship and gets it back on course?

As leaders, we can’t be content with developing an initial strategy and pressing the start button. Once the ship has set sail, we’re on it too. The captain has to be ready to step in when things go south in order to overcome setbacks. It’s up to us to provide the damage control. That’s because leaders – good leaders – are there for the good as well as the bad. Leaders are always leading.[Tweet “Leaders are there for the good as well as the bad. Leaders are always leading.”]

Consider the following steps to help your team get back on track following a setback.

  1. Keep your eye on the horizon. Last week I wrote about anticipating setbacks. Good leaders keep their eyes trained forward so they can see both opportunities and problems before it’s too late to act on them. When your focus shifts elsewhere for too long, say to celebrate past accomplishments or worry about some minute detail, issues can creep up on you. Pay attention to trends so you can anticipate what lies ahead.
  2. Act quickly to adjust course. Once an issue has been identified, you have to move swiftly in order to mitigate the damage. Some managers take their time analyzing the data before choosing a course of action. Some decide to wait, ignoring the problem in the hopes it will go away on its own. Neither is a good response. Waiting only allows the problem to grow and delays your ability to regain forward momentum. Develop a strategy and act on it.
  3. Use the experience to get better. Is there a way to prevent the same issue from popping up next year? Are there steps that could be taken sooner to speed up the recovery process in the future? Are there tweaks to the existing plan that need to be made that will help the business grow more efficiently? Once the problem is addressed, take a little time to incorporate what you’ve learned from the experience. That way the business will be stronger for having encountered this rough patch.

Hopefully you’ll never have to clean up after a super throw-down disrupts your business plan. Odds are, though, not everything will always go as planned. Instead of calling for Damage Control, commit to your own damage control strategy. That’s one way to make sure you and your team are the real heroes.

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Anticipation vs. Expectation

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psychics-1026092_640It was mid-October when I received the call. On the other end of the line was a manager whose tone told me he was not happy. “Something is wrong with my scorecard,” he said. “You need to get it fixed right away.”

Like many organizations, our company utilized a monthly performance scorecard to track a variety of sales and service metrics at a variety of levels. My team assisted managers with developing strategies for growing their business. We provided training, created job aids, and reported on the progress made toward goals. The scorecard document was our baby.

I opened the file in question and listened as the irate manager pointed out the cause of his frustration. All year long, his scorecard had reflected stellar performance. Sure, they were down a little month over month, but still well above goal. Things had been going so well that he’d stopped worrying about even looking at the report. Why waste the time when you’re ahead? But that morning, a member of his staff had taken a look at the document and noticed that the team’s performance had suddenly dropped. In fact, they were suddenly below goal and in danger of missing out on year-end performance bonuses. Since every month up to this point had been above goal, something had to be wrong with the report.

As you can see from this sample graph, the team in question had indeed been above goal for each month through August. What they didn’t account for, however, was the downward trend in performance. Focused exclusively on the current month’s production, they’d failed to anticipate the disaster looming in the fall. This was no reporting error, it was an error in judgment.

Top performers aren’t content with being ahead of goal. They are fueled by a need to stay there. This drives them to look ahead. They scan the horizon for future opportunities and potential setbacks. They definitely celebrate specific achievements, but they know they can’t assume today’s win guarantees tomorrow’s victory. Had this manager been paying attention, he would have noticed the slow decline in sales volume and been able to anticipate the eventual drop below goal. More importantly, he would have been able to do something about it.

Anticipating setbacks isn’t the same as expecting them. Victors anticipate bums in the road and create a plan to overcome them. Victims expect obstacles and adopt them as excuses. The difference is a simple matter of perspective and mindset.[Tweet “Anticipating setbacks isn’t the same as expecting them.”]

Once this manager understood what was happening with his scorecard, we turned our energy toward developing a plan to overcome the setback. We identified some underlying causes for the decline in sales and wrote up a strategy for his team to implement over the remaining two and a half months. Armed with the right information, and a game plan, he was ready to execute.

So, how does your performance look at this point in the year? We’re half-way through 2016 – are you on track, or do you need to play catch-up?

Don’t let the dog days of summer find you napping. Even if last month’s numbers were stellar, take a look ahead. See if there’s something lying just around the corner that maybe you haven’t been anticipating. Take advantage of this opportunity to shore up your plans for the next six months, and commit to finishing strong. Anticipate the worst, expect the best.

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3 Ways to Hold Yourself More Accountable

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achievement-1238472_640During a recent webinar series, I likened managers who avoid accountability to the leader in Hans Christian Anderson’s tale “The Emperor’s New Clothes.” In this story, two charlatans tell the emperor that they are master clothiers. They offer to make him a beautiful suit like none he has ever seen. Furthermore, they say, the cloth they use is so light and soft that it actually appears invisible to anyone not smart enough to appreciate its uniqueness. The emperor, unable to see the non-existent fabric himself, parades through the streets naked; attempting to ignore the murmuring of the crowd and trying to convince himself that everything is ok.

Accountability is a huge problem for many people, especially those in positions of authority. Many are uncomfortable with holding their teams accountable, so they avoid dealing with issues in the hope that they will resolve themselves on their own. Of course, they rarely do. Meanwhile, employees grow more and more frustrated with leaders who ignore the obvious, convinced they are doing the right thing.

For the past few weeks, I’ve been exploring various aspects of accountability. I’ve presented the concept of conducting a team health check to get a feel for how the members of your team feel about the state of accountability. Remember, top performers thrive in an environment of accountability. [Tweet “Top performers thrive in an environment of accountability.”]

Then I presented the concept of the “former performer.” These are people who once set the standard for performance, but some reason have turned into speedbumps for the organization. Rather than take control of their own performance, they have become victims of circumstance, always offering an excuse for their lack of forward progress.

Last week, I wrote about the methods teams use to hold themselves accountable. Winning teams never rely on a single star to pull them through. It takes everyone committing to the vision and expecting the best from themselves and those around them to win championships.

Today, I wrap up this series on accountability by offering three ways individuals can introduce more personal accountability. We all want to do our best work. We all want to achieve our fullest potential. But too many times, we fall short due to a lack of personal accountability. We may find it easy to push ourselves appropriately in a group setting, but left to our devices, it’s all too easy to let things slide.

I personally fall into this category. Despite my best intentions, I often find myself procrastinating. I put off important projects and wind up struggling to produce at the last minute. Sometimes this works to my advantage (I tend to have my best ideas under a time crunch), but it is always stressful and I never feel like the work I produce is my best. I need to be held accountable. So for those projects where I don’t have another person whose job it is to provide external accountability, I use these methods to create it.

  1. Find a partner. During my sophomore year of college, I enrolled in a weight lifting class. I felt that this would be a great way to get in shape and develop an exercise routine. Unfortunately, the only class available was at 7:00 am – and I am not a morning person. I soon skipped enough classes to earn a warning form the coach. Another classmate received the same warning and we decided to become workout partners. We agreed to hold each other accountable for making it to class and making up those we’d missed. By working together, we managed to pass the course. Finding someone who shares the same goals, and even the same struggles, is a great way to create partnerships that help you both succeed.
  2. Create a competition. I like to win. I’ve found that a little friendly competition is great way to push myself into completing tasks I otherwise wouldn’t. My kids and I used to do this all the time when it came to housework. None of us enjoy cleaning house, but staging a race to see who could get their dirty clothes to the laundry room fastest makes the job fun. During camping trips with our Boy Scout troop, I’ll offer a reward for the person who picks up the most trash around camp. We always leave the place cleaner than we found it. Try creating a mini-rivalry with someone else and use the spirit of competition to boost your accountability.
  3. Go public. One method that has worked for me many times is to announce my intentions publicly. When I set a personal goal to reach 10,000 daily steps for the first three months of this year, I told a lot of people I was setting that goal. I gave them permission to check on my progress at any time. I knew that keeping that goal to myself was an easy way to let myself off the hook should an obstacle come along. Because I knew others would be asking to see my results, I did what it took to reach the goal. There were nights when I could be found walking in circles around my yard or a hotel room in order to get the last few steps in before going to bed. Without that accountability, I know I would have given myself permission to fall short. Thanks to that accountability, my streak continues well past the initial three month goal.

Like so many aspects of leadership, accountability is a skill. Some may have a natural inclination for it, but we can all develop it. Those who choose to ignore this critical aspect of personal and team leadership, never fail to suffer. Like the emperor parading around in non-existent clothes they become the object of contempt and derision. But those who commit to accountability, both for themselves and their teams, enjoy the benefits that only come from top performers consistently giving their best.

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3 Steps to Take After Receiving a Referral

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digits-705666_640I couldn’t believe what I was hearing.

A teller with a leading community bank (a former employer of mine) had sent me an email, saying she wanted to speak with me for a few minutes. She was looking for referral advice. Naturally, I expected her to ask for tips on making referrals. Perhaps she wanted help on identifying referral opportunities. Maybe she wanted some assistance in identifying the appropriate time to bring up the concept of a new product or service with her customer or acquaintance. Or maybe, I thought, she’s struggling to find the right words to use and wants to bounce some ideas back and forth. I certainly was not prepared for her actual request.

“Scott,” she said, “making referrals is hard. I’m shy and it takes a lot for me to speak up and suggest my customer consider an additional product.” I agreed. After all, making referrals is a leap of faith. You’re opening yourself up to potential rejection. Customers might not welcome the intrusion and, depending on how the conversation transpires, mistake the referral for a high-pressure sales pitch.

She continued, “I do it anyway, though. We all do. We love our customers and know a big part of our job is finding other ways the bank can help them.” I was pleasantly surprised at her level of commitment and encouraged her to keep at it. “So, what part of the referral process can I help you with?” It was her answer to this question that threw me for a loop.

“We’ve been sending a lot of referrals to the lender at our branch,” she said, “but he never follows up. I just spoke with a lady I referred to him last week. When I asked how their conversation went, she told me she’d never received a call from him. She wound up going to another bank for the loan that I suggested she look into. One of my coworkers told me that she has the same problem and has actually started sending her customers to a lender at another branch who always follows up. I hate to do this, but I also hate looking bad when my own go-to person doesn’t seem to appreciate the referral. What should I do?”

Referrals represent the holy grail of marketing. What better way to generate new business than to have other people selling for you? How better to qualify prospects than to have partners making one-on-one recommendations to people they’ve identified as great candidates for your product? And how much easier can it be to overcome the credibility barrier when the recommendation comes from someone the prospect already has a relationship with and trusts?[Tweet “Referred customers carry a lifetime value 16% higher than the norm.”]

Referrals are timely, targeted, and carry no upfront costs. Furthermore, referral leads convert at a rate 30% higher than those obtained through any other type of marketing. Add to that the fact that referred customers carry a lifetime value 16% higher than the norm and it’s easy to see why smart business owners attempt to leverage this strategy as much as possible. But sadly, 48% of referred leads never make it to the next step of the sales cycle.

Referral marketing only works when referrals are acted on. Without follow up, referrals don’t turn into sales. They turn into poor service experiences, disappointed customers, frustrated referral partners, and missed opportunities.

When you find yourself the fortunate recipient of a referred lead, take these steps right away.

  1. Act on the lead. 50% of buyers choose the vendor that responds first. The sooner you follow up on a referral, the more likely you are to actually get business from it. You need to act while the prospect is thinking about taking the next step, and the propensity to buy is highest right after a quality referral is made.
  2. Deliver exceptional service. Referral leads should be treated delicately. The expectation of performance is high – after all, you did come with a personal recommendation – so make sure to shine. Even if the sale doesn’t close, your interaction with the lead impacts your reputation as well that of the referring party and the organization. The way you follow up on any given referral can influence how many more come your way.[Tweet “The way you follow up on any given referral can influence how many more come your way.”]
  3. Follow up with the referrer. Thank them for sending someone your way, even if things didn’t work out. Let them know how the conversation went and, if necessary, provide any tips for better qualifying prospects in the future. The more you develop this partnership, the more likely you are to see additional referrals come your way.

Of course, if you’re not interested in referral business, simply ignore these steps. In fact, ignore any referrals altogether, just like this banker did. Feel free to thumb your nose at a strategy virtually guaranteed to provide a steady stream of qualified business to your doorstep. Just don’t be surprised when all that business winds up being referred somewhere else.

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10 Tips for Better Referrals

Posted on by Scott

human-763156_640re-fer-ral (noun) an act of referring someone or something for consultation, review, or further action.

Growing a business is hard. Unless what you have to offer is cutting-edge, standing out from the crowd can be a grind. And let’s face it, most of us aren’t selling something truly innovative. We sell commodities, a product or service that’s readily available from another provider. For us, finding a way to differentiate yourself from the competition can prove difficult.

There’s plenty of evidence to suggest that word-of-mouth advertising is one of the most effective methods of generating new business. It’s certainly the most economical. If generating referrals isn’t a significant part of your marketing strategy, then you’re missing out.

In my experience, people think of referrals in two ways. With the first, employees interacting with existing employees make note of an additional product or service the customer isn’t taking advantage of and suggests they take action to fill the gap. In the second, customers and business partners are encouraged to proactively approach members of their network on behalf of the organization, recounting their positive experience and suggesting their contact give them a try.

Both referral scenarios can add significantly to your pipeline, but in my experience, few people are comfortable with the referral process. They hesitate to make referrals and, when they open their mouths to speak, the words don’t come easy.

But it doesn’t have to be this way. Making referrals, like any other business activity, is a learned skill. All it takes is the right attitude, the right approach, and practice. Here are 10 tips to help you become a master at referrals. Let’s start with ideas for referring additional products to an existing customer.

1. Think of referrals as a service rather than a chore. Your customer or contact is missing out on a valuable product or service. You have knowledge that could help them solve a problem. Why are you holding back? Referring someone to a product, service, or colleague that could benefit them is not just good business, it’s a part of providing good service. What better way to take care of those who already trust you enough to business with you than to share information that could prove valuable to them?[Tweet “Making referrals is not just good business, it’s good service.”]

2. Study up on the subject of your referral. People often hesitate to make referrals because they aren’t confident in their own knowledge of the product or service in question. If you find yourself unsure of whether or not you are competent to speak to the quality of a product your own firm provides, don’t make the referral. Educate yourself first, make sure you know enough to speak intelligently before opening your mouth.

3. Refer to the expert. By definition, a referral is made by someone who cannot complete the sale themselves. If I can complete the sale, then my conversation with a prospect is a sales call, not a referral. Referring is the act of suggesting a connection between two other people, meaning you are not required to answer every single question the customer might have. That’s the expert’s job. While it’s important to know something about the product or service that sparked the referral idea, what you are really referring is someone else’s expertise. Don’t refer to people you don’t know. Make sure you can vouch for the expertise and character of the person you’re looking to send your contact to.

4. Refer selectively. Not every customer you come in contact with is a candidate for a referral discussion. Make sure the customer could actually benefit from the service you’re thinking of recommending. This is made easier if you’ve been listening for cues and looking for clues during your interaction. Don’t machine-gun spray your customer list. You’ll come across as insincere and lose credibility.

5. Speak to what you see. Something caused you to think about making a referral to your customer. Start by mentioning that trigger:

  • “Mr. customer, from what you’re saying, it sounds like you could benefit from …”
  • “According to our records, you’re not currently taking advantage of …”
  • “After our last conversation, I got thinking about your account. I think we may be able to help you even further…”
  • “You know, a lot of my customers have said they really appreciate the way we helped them with…”

6. Speak naturally. When the time is right to make a referral, speak as if you’re talking to a friend. Think about the last time you tried a new restaurant and shared that information with a friend. You didn’t slide into a fake, infomercial type spiel. You spoke on a personal level. You shared your experience and knowledge, then suggested your friend try it out for themselves. That’s what a referral should sound like – one friend trying to help another one out.[Tweet “A referral should sound like one friend trying to help another one out.”]

Now, let’s look at a few tips for encouraging referrals from others.

7. Educate your customers and business partners. You can’t assume that just because people know who you are and what you do that they will be comfortable referring business to you. Make a point to educate those around you. Share bits and pieces of information when appropriate so they feel educated enough to confidently speak to your expertise. Give them a story worth relating to someone else.

8. Make it easy for others to refer business to you. Most people like making referrals. Personally, I get a great sense of satisfaction when I connect two people I know in a way that helps them both out. As your customer, I’d like to refer business to you. The problem is, I don’t know everything about your particular product suite or the myriad of services you offer. However, there is one product I am intimately familiar with – the one you sold me. Make sure every new customer gets a couple of business cards and ask them to pass them on to people who could use the same service they are currently benefiting from.

9. Make referrals yourself. You have to give to receive. If you want business partners to send referrals your way, start by sending a few in their direction. Sending me a referral creates psychological pressure on me to reciprocate. When you help me out, I want (and need) to do something for you in return. Prime the referral machine by making a few deposits of your own. [Tweet “Prime the referral machine by making a few deposits of your own.”]

10. Ask for them. If you want more referrals, ask people for referrals. Business is rarely a case of “if you build it, they will come.” If you want something, you have to ask. “Hey, if you come across someone who could benefit from what I have to offer, do me a favor and hand them my card. I’d appreciate the referral.”

There’s one final tip I’d like to share for those seeking to earn more referral business. Be someone worthy of a referral. Do good work. Produce a superior product. Provide excellent service. Operate with integrity. Seek to be the kind of person others want to be associated with. If you focus on building solid relationships, you’ll have more referrals, and more business, than you can handle.

If you’d like to have a discussion regarding some specific referral strategies for your business, give me a call. If you have strategies that have proven successful for you, please share them on our Facebook page.

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Searching for Clues: Hone Your Powers of Observation

Posted on by Scott

detective-156647_640He can tell where you are from just looking at your shoes. He can guess your occupation after a brief examination of your hands. He can determine your next steps based solely on clues you’ve already left behind.

I’m talking, of course, about Sherlock Holmes. The world’s greatest detective has been solving mysteries since his introduction by Sir Arthur Conan Doyle back in 1887. I’ve personally been a fan since I first read The Hound of the Baskervilles as a kid.

Holmes possesses a number of traits that prove valuable as he works through each investigation. He’s a student of the physical sciences which aids his analyzing evidence from a crime scene. He is also a brilliant strategist, something that allows him to anticipate the motives and likely next moves of his opponent. The skill I most admire, however, is Holmes’ ability to decipher a great deal of information from a handful of seemingly meaningless clues.

Think about the impact this ability would have in the workplace, for instance. Salespeople could uncover unmet needs by simply observing the habits or appearance of their prospects. Service personnel could determine the source of a customer’s unhappiness by reviewing past account usage and analyzing communication patterns. Managers could better equip their teams by acting on clues gathered from mere observation.

Known as abductive reasoning, Holmes’ ability to infer huge amounts of information from tiny bits of data seems like something only a fictional character could be capable of. Recent research, though, would seem to indicate that this “Holmesian deduction” is actually an innate ability that each of us can tap into. The power of focus is formidable, and it’s within our grasp. We’ve just forgotten how to do it.

Holmes himself once told Watson “You see, but you do not observe.” That, I believe, is the problem all too many of us face. Our eyes function properly, but we fail to observe what we’re seeing. That is, we fail to process information in a meaningful way. The vast majority of what we see simply does not register as important. Although seen, it is almost immediately dismissed and, therefore, forgotten.

Another barrier to abductive reasoning is our inability to focus attention on any given task. Our desire to multi-task coupled with increasingly short attention spans has robbed us of our ability to focus. While conducting research for her book Mastermind: How to Think Like Sherlock Holmes, author Maria Konnikova attempted to counteract her tendency to shift focus so that she could see as well as observe. The pull of email and social media proved almost too powerful to overcome. She found herself fighting the impulse to look at each email that popped into her inbox.

I know that, even in my own house, achieving a state of Sherlock Holmes-like focus is extremely difficult. My family has a hard time sitting down to watch an episode of television without multi-tasking. My son studies for school while watching. My wife hops up to finish the laundry. I reach for the phone when it signals some type of update.

So how do we regain our super-powers of observation? It takes discipline and time. To become a great detective in our own right, we have to begin by making a concerted effort to block out distractions. It’s hard to focus on any one thing when others are competing for your attention. Konnikova found that she lacked the personal discipline to ignore the lure of online distractions. She actually downloaded an app to her phone that blocks access to certain functions for a predetermined amount of time.

Secondly, it takes practice. Blocking out distractions does nothing to keep the mind form wandering on its own. You have to train yourself to live in the moment – to fully immerse yourself in what’s going on around you. You have to reach a state where your brain actually observes what your eyes see. This doesn’t happen overnight. Like any skill, this level of mindfulness has to be practiced.

There’s another benefit to mastering this skill as well. Konnikova uncovered research that shows multi-tasking is counterproductive and damaging to your psyche. We’re actually more productive and happier in general when we allow ourselves to live in the moment and fully take in what’s happening around us. The constant distractions that we think keep us connected and efficient are actually having the opposite effect.

I’m going to give it a shot. I often feel frustrated at the length of time it takes me to complete certain projects. Something tells me it’s my inability to block out distractions that keeps me from focusing in a way that produces my best work. Stayed tuned for an update on my progress. Or just watch the news. You might see me listed as the man who solves the next big mystery.

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Lend Me Your Ears: How Listening Yields Additional Business

Posted on by Scott

buddha-statue-546458_640I was just about to nod off when I heard the noise. Instantly awake, I sat up in bed and strained my ears for any sound. As my mind settled, I became aware of every creek and pop. I could hear the even breathing of my dog, Spencer, at the foot of the bed. I could hear the ticking of the clock hanging in the next room. And I could hear the rustling of the branches on the tree outside my window. The sound that had startled me turned out to be a neighbor getting home late.

It’s surprising what you can hear when you stop and listen. Put aside all the distractions and suddenly even subtle cues come through loud and clear. What’s sad is that we rarely settle down enough to hear clearly. If we made an effort to listen more closely, we might pick up on a few things our customers are trying to tell us.

During any given interaction, a customer could be providing you with one or more cues – hints that, to the attentive ear, suggest opportunities for additional business. Customers are often ignored following their initial purchase. Oh, any subsequent maintenance is handled appropriately, but little attempt is made to determine additional needs. Attention has shifted to locating the next potential prospect.

Most salespeople chase transactions, not relationships. With such a narrow focus, it’s easy to overlook secondary cues and leave the relationship only partially explored. Listen carefully, though, and you’ll find that existing customers often have additional needs, responsibilities, wants, and dreams. Think about it, and you just might be able to help them.

The key to picking up on these cues lies in listening, but most of us have forgotten how. Real listening involves more than just our ears:

  • Listening involves eliminating distractions. You can’t really listen if you’re working on your computer while the customer is talking. You can’t listen if you’re checking for texts or updates on your smart phone. And you can’t listen if you’re eavesdropping on your coworker’s ongoing conversations. Listening requires turning away from competing noise.
  • Listening involves settling your mind. You can’t really listen if your thoughts are on other projects or interests. You can’t listen if your brain is busy trying to figure out the solution to some kind of personal issue. And you can’t listen if your focus is on determining what you will say next. Listening involves clearing your head of competing thoughts.
  • Listening involves focusing on the customer. You can’t really listen if your primary concern is completing the transaction. You can’t listen if your attention is on closing the deal. And you can’t listen if your more interested in what come next than what’s happening now. Listening involves being fully present in the moment – your customer’s moment.

I’ve certainly sleepwalked through my share of customer interactions. There’s no doubt in my mind that I missed a number of cues that would have led me to more meaningful relationships and additional business. Had I eliminated distractions, settled my mind, and focused on what the customer was saying, we’d have both been better off.

Going forward, I’m going to be more intentional about how I approach listening. It may take a while, but like any skill I’ll get better at it with practice. I owe it my customer and my business to do so. Hopefully, I won’t sit up at night wondering what I might have missed.

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80% of Your Growth Opportunity Lies Behind This Door

Posted on by Scott

door-e1456723457887A few years ago, there was a reality show that featured emergency personnel competing against each other in a variety of events designed to challenge their strength, speed, and ingenuity. One episode in particular stands out in my mind. A group of firefighters went head-to-head until only three were left to face the final test. The contestants had to navigate an obstacle course. The man who finished in the shortest amount of time would be crowned the winner.

The final obstacle on the course was a trio of doors the firemen had to get through in order to cross the finish line. The first contestant sped through the course, lowered his shoulder, and attempted to smash through the first door. It held. He then tried to kick his way through. Again it held. Finally, using an axe, the burly man was able to hack his way through that first door. Then, already exhausted, he slowly chopped his way through the second and third doors while the clock ran.

Contestant number two, having watched all of this from the sidelines, didn’t waste any time trying to muscle the doors open. He immediately picked up the axe and began swinging. His time was much better than his predecessor, but he too slowed considerably as the physical effort took its toll.

The last firefighter confidently made his way through the course, posting a similar time as the first two until he reached the first of the doors. He picked up the axe, drew back to deliver his first blow, and then paused. He let the axe slide to ground, reached out his hand, and turned the knob of the unlocked door before walking through it. The next two doors proved to be unlocked as well and he won the competition easily, having barely broken a sweat.

I don’t know about you, but I often wrack my brain looking for the best solution to a problem, only to realize the answer is right in front of my face. While my focus has been on crafting a complex, often taxing strategy, a much simpler solution has been available all along. I just didn’t know where to look.

This is the route many of us take when looking to grow our business. We instinctively focus on difficult, time consuming, expensive strategies. Too many times, these efforts offer a horribly low return.

What if I told you that there’s an easier path to growth – one that’s been sitting in front of you all along? What if there’s a group of buyers just waiting to respond to your offer if you’d only recognize them and extend your hand?

The group I’m taking about is your existing customer base. Studies show that, for a great number of industries, up to 80% of your growth opportunity lies with existing customers. Instead of fighting for outside prospects, look inside to find your reward. Your most promising audience is comprised of those you’ve already done business with.

Think about it. Your customers have already made the decision to do business with you. They don’t have to be alerted to your existence or convinced to give you a try. They already know you possess a certain amount of expertise. Your customers already know who you are and how you work. The learning curve is short and trust is high, otherwise they’d have left for a competitor by now.

What your existing customer base may not know is how you can help them beyond the initial transaction. You can’t assume that because they bought one product from you they automatically know that you have additional solutions to offer. And if your original interaction took the form of a transaction rather than the start of a relationship, you probably didn’t do much to help them see beyond that particular transaction.

The onus is on you then to reach out, identify other potential needs, and then educate those who already trust you on the additional skills, expertise, and products you bring to the table. Remember, you are the expert. You have to be the one to make the effort. But since the hard part – establishing that initial trust – has already been done, the effort to extend the relationship doesn’t have to be taxing.

Over the next couple of weeks, I’ll share a few strategies for reaching out to this gold mine of potential. I’ll explore the concept of customer cues and clues – bits of insight that indicate opportunity is knocking. And just like the winning firefighter from my opening story, we’ll see just how easy it can be to open the door to those opportunities.

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