Chapter 21: How To Take Data And Turn It Into Impact

You’ve followed Chapter 19 and 20, assembled a massive pile of facts and figures, and now have to find a way for it to make sense and show how it impacts your prospect.  You have probably found that the data can be grouped together in some obvious categories.  There are two bigger categories that all of the data will fit in:  Problem Data and Impact Data.  We covered Problem Data in Chapter 18, but what is Impact Data?

This is where you want to spend your time, as Impact Data is where the C-Level prospects spend their money.

All companies have problems, and some just sit there, year after year, annoying people who ask, “Why doesn’t the VP of Operations know about this and fix it?”  It is likely that the VP of Operations knows about the problem.  It is also likely that the problem has been evaluated, and one of two things have happened:  the impact of the problem is less than the money or time it would cost to fix the problem or the impact of the problem has not been supported by enough data to prove that fixing it is financially viable.

Understanding the impact of a problem is crucial for proving the business case for any solution you hope to provide.  There are five questions that form the basis of understanding the impact a problem can have on an organization:

  • How do you measure the problem?
  • What is the current situation?
  • What results would you like?
  • What is the value of those results?
  • What is the value of those results over time?

This is relatively straight forward when dealing with hard data.  For example, let’s say that you are trying to sell a university an electronic dormitory room key lock system.  Your conversation might sound something like this:

  • Prospect:  Your electronic dorm room key lock system would increase the security of our 400 dorm rooms.
  • You:  What is the biggest problem that our system would solve? (measurement)
  • Prospect:  We have too many old keys floating around.  We only know where about 80% of them are.
  • You:  That’s about 200 keys that you are missing. (current situation)  What would be an acceptable percentage of unaccounted keys?  (desired results)
  • Prospect:  We need it to be zero, because it costs us $65 to rekey a lock.
  • You:  Let’s see, 400 dorm rooms times $65 dollars a lock…that’s $26,000.  (value impact)
  • Prospect:  And students are constantly losing keys, getting duplicates, moving in and out of dorms…we just aren’t as safe as we could be.
  • You:  If this is a continuing problem, then over four years at two semesters per year, you could have a total of over $200,000 in rekeying costs.  (value impact over time)

Other types of products and services can be more difficult to prove impact, as they often rely on soft or inferred data.  For example, let’s say that you are trying to sell a mass notification system to a university that would alert students to dangerous situations on campus.  Your conversation might sound something like this:

  • Prospect:  Your software would help keep our students safe from gun violence on campus.
  • You:  Other than the possibility of fatalities, what is the biggest problem that gun violence would create for the university?  (measurement)
  • Prospect:  Our students and staff would feel very unsafe, and the bad press we would receive would severely harm the university’s reputation.
  • You:  How do your students and staff feel now, and what is your university’s reputation for security?  (current situation)
  • Prospect:  We’ve never had a major incident, so our students and staff feel safe, and we have a reputation as a place where parents can send their kids and know that they are safe.  This is especially important for our foreign students and their parents.  (prospects implies desired results)
  • You:  What would happen if you had an incident that made the evening news?  (value impact)
  • Prospect:  Other universities have seen their enrollments decline by 10%…almost 25% for foreign students.  (inferred data)
  • You:  Let’s be conservative…if we take your 20,000 students, reduce enrollment by just 5%, and multiply it by your $15,000 tuition…that’s about $15,000,000 in lost tuition alone, not counting the fact that foreign students pay more and stop attending at a higher rate.  (value impact)  How long would it take to regain your reputation, and ultimately your students?  (value impact over time)
  • Prospect:  Others have recovered in three years, some never fully recovered from their foreign student losses.
  • You:  If that is the case, your university could face well over $30,000,000 in tuition losses.  (value impact over time)

This is of course simplistic and scripted, but hopefully you can see how there needs to be a process to help both you and your prospect understand the impact of the problem, especially the financial impact, so that you can create a better business case.

Chapter 1: Why the World Hates Salespeople (and Why they Should)

Wouldn’t it be great if your prospect gave you a checklist to complete, and if you followed that checklist, they would buy from you?  Of course it would – what fool wouldn’t follow a set of directions handed to them by the person who writes the check?  And yet it happened to me this week. Six times.  And all I was trying to do was buy a new car.

That’s right.  I was dealing with one of the most despised creatures on earth:  the car salesperson.

The checklist was simple.  It gave the exact make and model, the options I wanted, and the color.  In addition, I explained that I would not be paying for any other factory options or dealer ad-ons like floor mats.  If they didn’t have the exact car I wanted or couldn’t get it, they could hit the magic delete button on my e-mail.  All I asked for was the price of the car, the monthly lease fee, and all the other nickel and dime things up front before I stepped in the dealer’s showroom.  I wanted the paperwork all done through e-mail before I picked up the car, and wanted to spend no more than 45 minutes in the showroom the day I took delivery, no test drive needed.  Nowhere did I say I would choose a car based on price.  Simple, right?

Well, no.

All six dealers sent me form letter e-mails, inviting me come in for a chat, look at the colors and options, discuss my budget, and take a test drive or two.  So with all of my “buying signals” given to them in writing, how is it that six different companies blew a sure thing sale?  Professional salespeople attend expensive week long seminars to learn how to detect these buying signals.  Senior level sales professionals are paid more than junior level sales professionals because they have decades of experience which enable them to pick up on these barely visible signs that buyers try to hide.

Is there a more dysfunctional selling paradigm than that of the automobile sale?

Doubtful.

And yet I see variations of this every day, from the simple consumer electronics gadget sale to the multi-million dollar global IT system sale.  Why is this?  Why are so many salespeople so bad?

Maybe that is an unfair questions, but not because most salespeople are good.  It is an unfair question because half of the blame resides with the customer.  That’s right.  The guy on the other side of the table, the one with the checkbook, the furrowed browed guy who keeps looking at the price page of your proposal?  Yes, that guy.  He has been taught by you and dozens of your peers over the years that he needs to protect his company against you and your ilk, because he thinks that you’re out for yourself, trying to charge as high a price as possible, and will then head off to your condo in Maui for two weeks and ignore his phone calls.

Is it the buyer’s fault that they see salespeople as adversaries instead of partners?  I don’t think so.  But there is a better way forward for salespeople.  If you choose your prospects and clients carefully, if you can develop a relationship to the level where they are willing to learn from you why your product or service is the best overall value, and you can then have them bring you up through their company to the decision makers, then you can dramatically improve your sales and waste far less time.

This is not hard stuff.  I’ve been successful selling this way for decades, and I’m as lazy as a salesman can get.  Maximum results for minimum effort is my goal.  I have taught these skills around the world in various formats, from two day crash courses to week long full immersion courses.  You can get the same information right here (minus the important student interaction portions, unfortunately) on this blog.  So go ahead and bookmark this page and come back to it for the next chapter at least once a week.  I’ll do my best to make it worth your while.

And the car fiasco?  Finally, one dealership figured out how I wanted to buy, followed my format, and sold me the car.  He wasn’t the cheapest, but he made it the easiest for me, and with this purchase, that is what I was looking for.

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