‘Results not Solutions’ was voted as the Number 5 Sales Trends for 2011. If you’re business is about selling packaged or aggregated solutions you may be in for a rude shock – the world of selling has changed yet again. The world has moved on from selling solutions to delivering results. Selling solutions is a very “1990’s” approach, however even today much of the sales training you will see still hovers around selling solutions. The truth is people find solutions pretty quickly but delivering real results, well, that takes skill. People now want to buy ‘Results’. They are looking at how you can help them achieve results with your ideas, creativity and ingenuity.
In 2011 we are seeing more and more packaged solution offerings such as print solutions, financial planning, education and car leasing going the way of the product sale and becoming commoditised. Especially if they are not part of a total offering that contributes to better business results. Businesses selling packaged or aggregated solutions are at risk of losing their profitable edge because processes and systems are continually being automated and can therefore become like anything else that can be packaged and put online. Even the bread and butter documentation of legal firms and end-of-year tax return work for accountants is now automated and readily available online, making professional services firms go after more complex work to maintain margins.
Welcome to the Evolution of Selling.
When I began my career as a professional sales person in the early 1980s, sales professionals were trained in product benefits and communication skills which focussed mainly on handling objections. Our tool kit was simple. We were armed with a business card, product brochure, a geographic territory of clients to manage and grow and a car to get around in. The end goal? Make sales.
Yet, many people felt at odds with the way they were taught to sell because so little attention was paid to what comes naturally to people – how can I help you and be of use to you with my products, services and talents?
Instead in the 1970’s we fell for the product trap where we sold product features to curious buyers in a world of mass consumerism. In the 70’s it was all about product features – if your product was distinctly different from your competitors and you could get first to market you were then granted lead time to make hay while the sun shone.
However, in the 80’s, technology produced by these great ideas sped up the manufacturing process allowing competitors to copy products quickly. Now we were required to talk about product benefits. However this did not release us from the product monologue with clients still treated as passive by-standers. As technology sped up it also made it cheaper to produce product and the margins began to disappear as products became more commoditised.
Welcome to the 90’s; solving problems and creating productivity drives. Now we start to talk to clients about what they are trying to address, what problems they want to solve and what efficiencies they want to achieve. We sold in an aggregation of products which when combined solved problems and brought efficiencies and other benefits.
But now the margins are being eroded in the aggregated solutions space. We are seeing more packaged solution offerings such as print solutions, financial planning, education and car leasing, like products before them, become commoditised. Companies who cut costs, reduce levels of service and move customers online and DIY are stripping away any real value and reduce packaged/aggregated solutions to price negotiations. Selling packaged/aggregated solutions is at risk of losing its profitable edge.
So, where to from here?
If you only sell based on your product you are in a commodity space unless that product is so exclusive that people will pay a premium. Even some high end brands are at risk of losing their exclusive appeal. Just see how fast new technology like iPads and iPhones have been copied to ‘smart phones’ and prices reduced allowing more access to what was once considered an exclusive brand.
Unless you want to stay in the world of low margin commodity selling, which can be easily done at very cost effective ways over the internet, you need to recognise that the product is only part of the sale.
Smart sales people and their businesses know the real value and what clients are prepared to pay for lies in the collaboration and production of real ideas and results. Despite offering aggregated solutions they will look for ways to accelerate their clients businesses or personal lives to produce more outstanding results. This requires, amongst other things, business acumen combined with thinking outside the product and solution boxes and dealing with variables and ambiguities, which by nature are messier and less defined. Working together to achieve real results will bring with it all new partnership arrangements. In short, our jobs as high performing sales people is to help our clients map a pathway forward to the future.
This brings with it a whole new skill set. Think of the types of conversations you now need to have with your prospective customers where listening, questioning, resolving problems, collaboration, empathy and understanding are encouraged.
Remember, everybody lives by selling something.
Author: Sue Barrett, www.barrett.com.au
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