Saturday, November 7, 2009

The Resolution of Concerns

Kurt Lewin, the founder of Social Psychology, created some theories about the conflicts we humans have to work through as we make decisions. He named them Approach-avoidance, approach-approach, avoidance-avoidance, and double approach-avoidance.

Approach-avoidance conflicts occur when one goal contains both positive and negative characteristics, like making a multi-million dollar purchasing decision. In this case, the buyer experiences fear over something that is also desirable.

When the decision is far away, like when the RFP is issued, both positive and negative feelings about the decision are less strong; however, as he gets down to the BAFO, the negative consequences are magnified.

Typical Customer Concerns
  • What are the risks associated with going ahead?
  • What if it all goes wrong?
  • Can we trust these people?

Sign that this Phase is Over

  • Easy. The customer makes the purchasing decision

Common Strategic Errors

  • Ignoring concerns with the hope that they will go away.
  • Pressuring the customer to make a decision.
  • Trying the "typical" amateur closing techniques.

Coaching Questions and Tips

  • Probe the salesman for his understanding of the concerns and potential show stoppers.
  • Map out the end game together.
  • Be alert to the threat of resurgent and wounded competitors.
  • Are there iceberg issues lurking in the waters?

Other Key Coaching Questions

  • What might stop this purchase from a happening?
  • Can the customer articulate the value of our solution?
  • Have we helped them define success?
  • How will we/they measure success?
  • Have we helped them resolve their concerns before we negotiate?
  • How do you know the issue has been resolved? Are you sure?
  • Do we have contractual or technical issues or both? Performance?
  • Do the benefits of our solutions outweigh the costs?

This phase is critical. Do not neglect it. Spend time coaching your salesman through it. Do you remember the old phrase - Whistling past the graveyard? It means ones attempt to proceed with a task while ignoring a clear and present danger and hoping for a good outcome. As Rick Page says - Hope is NOT a strategy.

Good selling!

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