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Buying Decisions Are Moving Higher In Organizations How When

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The document provides tips on how and when to implement tactics for dealing with purchasing decisions moving higher in organizations. It recommends re-evaluating opportunities to determine their viability and focus on gaining agreement on value and priority with key decision makers. The document also suggests customizing your approach based on where prospects are in their purchasing cycle, with different tactics for early versus late stages. Accessing senior executives earlier allows influencing the process more.

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How & When – Tactics – Part II “Buying/Purchasing decisions are moving higher in organizations! Part II HOW do I deal with this and WHEN do I deal with it? By Dan Lemke, The Vision Group In part I of this article we discussed WHY buying/purchasing decisions are moving higher in organizations! We also discussed WHAT we should do in light of these economic and organizational changes in buying decisions moving higher in organizations. In part II let’s discuss HOW we approach the WHAT we should do and, WHEN we should execute tactics and strategy. Based on the WHAT’s discussed in Part I here Review these opportunities for 1) are some tips and tactics on HOW we respond as Goals/Issues, 2) Has a solution been agreed consultative sales people: on, 3) Has Value been explicitly stated and documented, 4) Am I talking to the right New Prospects or New Projects with people, 5) Do I have control of the buying Clients: process with the key players (SOE). For any open areas above, build a strategy Stop and re-evaluate your pipeline. and plan to complete them. Determine which of those active opportunities will buy from you or anyone. Determine if they should be in your pipeline In Part I of this month’s newsletter we discussed or not (Is it in the sweet spot of your how Senior Executives are involved in offerings?). Purchasing Decisions (Figure 1 page 3). Ask yourself (your opinion) on a 1 to 10 (1 ‘not a big issue’ to 10 ‘can’t do without it’) Our tactics and strategies should be sensitive to what the value of your offering(s) is to the WHERE your opportunities are along the prospect. prospect or existing clients ‘purchasing decision If the prospect is a new one and it is on your ‘time-line. The activities and actions mentioned top 10 list, then in your next call focus on above will dictate HOW we execute our selling determining via questions (goals, issues, programs. current situation) the severity of the situation. You are trying to determine with A brief example of this is: the prospect if a project is likely to win support with senior management. If you found or entered into the buy/sell As quickly as possible try to gain agreement cycle in the EARLY phase of an organizations on VALUE and determine with the buyer ‘purchasing cycle’ you have an opportunity to the priority of the need. (Is it in the top 5-7 gain access to senior executives, since they areas they are focused). If not, then re- are usually involved in the EARLY phase. evaluate the situation. The HOW of this varies and will determine Do some internal brainstorming with your the sell cycle length. manager or peers on how to get access to o Access to lower levels means potentially a other key players if you don’t already have longer sell/buy cycle. that access. o Direct access to senior management may result in NO Sell/buy cycle or with Opportunities that have been working urgency/Value a shorter sell cycle. So with for some time: “Bad News Early is Good News”! o Your ‘Sales Messages’ are critical at any entry level. They should focus on key 1 100 Parkers Lake Road, Wayzata, MN 55391 USA • Phone: 952-475-1475• Fax: 762-592-7943 E-mail: dlemke@visiongroupmn.com • Web:http://www.visiongroupmn.com
How & When – Tactics Part II goals or issues your prospect may be with you at a mutually agreed time facing, and I recommend ‘aggressive’ BEFORE a decision is made. This tactic prioritization with potential buyers of will give you insight into whether you are their goals or issues. in a good position to win the opportunity or not. o If you entered the sell/buy cycle in the MIDDLE or LATE portion of the Here are some additional thoughts for working “Purchase Decision Cycle” it is in today’s economic situation. These were imperative that during your re- discussed by us at the Duluth Business Expo. evaluation of in-flight opportunities you Please feel free to review that presentation. build strategies and tactics for backing up the prospect(s) discussions to the Have a process to discover all key buyer EARLY stage of the decision process goals, and problems. (seen in Figure 1). Train yourself more on product usage (how products are used to reach goals or solve This is done so that you can work with issues) tied to value for each key buyer, (not prospects to determine what their product features). “Vision” of a solution has been, and then If you are a manager of sales personnel begin hopefully using “Vision Re- your coaching and involvement with sales engineering/Enhancement” techniques opportunities at the prospecting stage. This you can insert NEW requirements for way you can help shape the sell/buy cycle capabilities that are UNIQUE to you or rather than trying to SAVE it at the end. have increased Value. (See “Shifting Challenge yourself to call higher on both Buyer Concerns” Figure 2 page 3). new and existing customers. Sell reliability, peace of mind, security and As we have discussed with our clients safety. In economic uncertainty safe and and strive for in our own revenue reliable is good! generating opportunities: Have a process to work with buying committees. “Make Yourself Equal, BEFORE you make yourself different, or you’re just More to come on HOW’s in future newsletters!! different”. Feel free to contact us to discuss any of the Just as importantly, focus on gaining tactics and HOW’s discussed above. agreement that the project has high priority with your Champion or Sponsor, and that they are willing to move forward Dan Lemke to get the right key executives involved Reference material In a downturn, Provoke your Customers by Philip Lay, Todd Hewlin, Geoffrey Moore – Harvard Business Review (www. Hbr.org) CNN Money - Psychoeconomics - Date/Issue: JULY 1995 VOL.24 NO.7 Section: COVER STORY Smart Selling in Tough Times – John Kratz, Ken Jondahl, The Vision Group, March 2009 – Duluth Business Expo 2 100 Parkers Lake Road, Wayzata, MN 55391 USA • Phone: 952-475-1475• Fax: 762-592-7943 E-mail: dlemke@visiongroupmn.com • Web:http://www.visiongroupmn.com
How & When – Tactics Part II Senior Executive Involvement In The Purchase Decision (Figure 1) 80% 80% 80% 60% 60% 44% 20% 20% Understand Set Establish Set Explore Examine Plan Measure current vendor objectives strategy options alternatives implementation results issues criteria EARLY MIDDLE LATE PHASE IN THE PURCHASE DECISION CYCLE Selling to Senior Executives A white paper written by: Alston Gardner, Stephen J. Bristriz, Jay Klompmaker – Kenan-Flagler Business School, University of North Carolina Shifting Buyer Concerns* Figure 2 *Based on the research of ‘The Huthwaite Group’ Phase I Phase II Phase III Discovery/Vision of Evaluation/Proof Risk/Commitment Solution Concern Level of Buyer Concern Needs Re-Engineer Vision with Cost You’re unique Capabilities Get best Price Solution Risk Time People Product Company Consultative Selling Processes (‘Best Practices’ designed to be Customer-Centered & Client-Sensing) 3 100 Parkers Lake Road, Wayzata, MN 55391 USA • Phone: 952-475-1475• Fax: 762-592-7943 E-mail: dlemke@visiongroupmn.com • Web:http://www.visiongroupmn.com

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Buying Decisions Are Moving Higher In Organizations How When

  • 1. How & When – Tactics – Part II “Buying/Purchasing decisions are moving higher in organizations! Part II HOW do I deal with this and WHEN do I deal with it? By Dan Lemke, The Vision Group In part I of this article we discussed WHY buying/purchasing decisions are moving higher in organizations! We also discussed WHAT we should do in light of these economic and organizational changes in buying decisions moving higher in organizations. In part II let’s discuss HOW we approach the WHAT we should do and, WHEN we should execute tactics and strategy. Based on the WHAT’s discussed in Part I here Review these opportunities for 1) are some tips and tactics on HOW we respond as Goals/Issues, 2) Has a solution been agreed consultative sales people: on, 3) Has Value been explicitly stated and documented, 4) Am I talking to the right New Prospects or New Projects with people, 5) Do I have control of the buying Clients: process with the key players (SOE). For any open areas above, build a strategy Stop and re-evaluate your pipeline. and plan to complete them. Determine which of those active opportunities will buy from you or anyone. Determine if they should be in your pipeline In Part I of this month’s newsletter we discussed or not (Is it in the sweet spot of your how Senior Executives are involved in offerings?). Purchasing Decisions (Figure 1 page 3). Ask yourself (your opinion) on a 1 to 10 (1 ‘not a big issue’ to 10 ‘can’t do without it’) Our tactics and strategies should be sensitive to what the value of your offering(s) is to the WHERE your opportunities are along the prospect. prospect or existing clients ‘purchasing decision If the prospect is a new one and it is on your ‘time-line. The activities and actions mentioned top 10 list, then in your next call focus on above will dictate HOW we execute our selling determining via questions (goals, issues, programs. current situation) the severity of the situation. You are trying to determine with A brief example of this is: the prospect if a project is likely to win support with senior management. If you found or entered into the buy/sell As quickly as possible try to gain agreement cycle in the EARLY phase of an organizations on VALUE and determine with the buyer ‘purchasing cycle’ you have an opportunity to the priority of the need. (Is it in the top 5-7 gain access to senior executives, since they areas they are focused). If not, then re- are usually involved in the EARLY phase. evaluate the situation. The HOW of this varies and will determine Do some internal brainstorming with your the sell cycle length. manager or peers on how to get access to o Access to lower levels means potentially a other key players if you don’t already have longer sell/buy cycle. that access. o Direct access to senior management may result in NO Sell/buy cycle or with Opportunities that have been working urgency/Value a shorter sell cycle. So with for some time: “Bad News Early is Good News”! o Your ‘Sales Messages’ are critical at any entry level. They should focus on key 1 100 Parkers Lake Road, Wayzata, MN 55391 USA • Phone: 952-475-1475• Fax: 762-592-7943 E-mail: dlemke@visiongroupmn.com • Web:http://www.visiongroupmn.com
  • 2. How & When – Tactics Part II goals or issues your prospect may be with you at a mutually agreed time facing, and I recommend ‘aggressive’ BEFORE a decision is made. This tactic prioritization with potential buyers of will give you insight into whether you are their goals or issues. in a good position to win the opportunity or not. o If you entered the sell/buy cycle in the MIDDLE or LATE portion of the Here are some additional thoughts for working “Purchase Decision Cycle” it is in today’s economic situation. These were imperative that during your re- discussed by us at the Duluth Business Expo. evaluation of in-flight opportunities you Please feel free to review that presentation. build strategies and tactics for backing up the prospect(s) discussions to the Have a process to discover all key buyer EARLY stage of the decision process goals, and problems. (seen in Figure 1). Train yourself more on product usage (how products are used to reach goals or solve This is done so that you can work with issues) tied to value for each key buyer, (not prospects to determine what their product features). “Vision” of a solution has been, and then If you are a manager of sales personnel begin hopefully using “Vision Re- your coaching and involvement with sales engineering/Enhancement” techniques opportunities at the prospecting stage. This you can insert NEW requirements for way you can help shape the sell/buy cycle capabilities that are UNIQUE to you or rather than trying to SAVE it at the end. have increased Value. (See “Shifting Challenge yourself to call higher on both Buyer Concerns” Figure 2 page 3). new and existing customers. Sell reliability, peace of mind, security and As we have discussed with our clients safety. In economic uncertainty safe and and strive for in our own revenue reliable is good! generating opportunities: Have a process to work with buying committees. “Make Yourself Equal, BEFORE you make yourself different, or you’re just More to come on HOW’s in future newsletters!! different”. Feel free to contact us to discuss any of the Just as importantly, focus on gaining tactics and HOW’s discussed above. agreement that the project has high priority with your Champion or Sponsor, and that they are willing to move forward Dan Lemke to get the right key executives involved Reference material In a downturn, Provoke your Customers by Philip Lay, Todd Hewlin, Geoffrey Moore – Harvard Business Review (www. Hbr.org) CNN Money - Psychoeconomics - Date/Issue: JULY 1995 VOL.24 NO.7 Section: COVER STORY Smart Selling in Tough Times – John Kratz, Ken Jondahl, The Vision Group, March 2009 – Duluth Business Expo 2 100 Parkers Lake Road, Wayzata, MN 55391 USA • Phone: 952-475-1475• Fax: 762-592-7943 E-mail: dlemke@visiongroupmn.com • Web:http://www.visiongroupmn.com
  • 3. How & When – Tactics Part II Senior Executive Involvement In The Purchase Decision (Figure 1) 80% 80% 80% 60% 60% 44% 20% 20% Understand Set Establish Set Explore Examine Plan Measure current vendor objectives strategy options alternatives implementation results issues criteria EARLY MIDDLE LATE PHASE IN THE PURCHASE DECISION CYCLE Selling to Senior Executives A white paper written by: Alston Gardner, Stephen J. Bristriz, Jay Klompmaker – Kenan-Flagler Business School, University of North Carolina Shifting Buyer Concerns* Figure 2 *Based on the research of ‘The Huthwaite Group’ Phase I Phase II Phase III Discovery/Vision of Evaluation/Proof Risk/Commitment Solution Concern Level of Buyer Concern Needs Re-Engineer Vision with Cost You’re unique Capabilities Get best Price Solution Risk Time People Product Company Consultative Selling Processes (‘Best Practices’ designed to be Customer-Centered & Client-Sensing) 3 100 Parkers Lake Road, Wayzata, MN 55391 USA • Phone: 952-475-1475• Fax: 762-592-7943 E-mail: dlemke@visiongroupmn.com • Web:http://www.visiongroupmn.com