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On the other hand, when you place a quality service in front of a client that solves a costly problem, sometimes you don t have to ask for the sale The client asks you The real key to discovering needs is to understand the value of solving a problem If a problem can be solved for 10% of the cost, it is likely a need If a problem is causing other problems, which in their totality is huge, fixing the root problem may very well represent a need
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The consultative professional thinks past the services sale to the needs of the client and to the long-term relationship
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our analyses of prospects and clients businesses should focus on the problems that need solving By asking a series of questions designed to size up the problem, its severity, and its impact on other costs or problems, you are able to get the prospect to tell you if this is a need A need is a problem that is cost justified to fix Cost can be justified in dollars or in hassle
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Some novice professionals may be uncomfortable asking problem questions However, taking your problem questions deeper in order to get your prospect to project the effect of problems on other problems and opportunities, is a powerful way to uncover needs For example, you might discover that total accounts receivable are averaging 65 days before collection You have also confirmed that management perceives this as a problem You could ask, What does it cost you annually for the working capital for accounts over 30 days old Or, you could go on, What does it cost you, in terms of accounting department staff and mailing and telephoning, to collect accounts once they exceed 30 days old When your prospects say something themselves, they believe it more than they do if you say it You could certainly say, You have $560,000 tied up in accounts over 30 days, so you stand to lose $140,000 from the sales you have made And your working capital line is at 5% per year So your working capital costs you over $28,000 You have one full-time person sending
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letters, making calls, and responding to requests for back-up, etc This person costs you $50,000 per year in salary, benefits, office space, training, and supervision But by saying all this, you could be putting your prospect in a defensive position If you are able to get your prospects to say this, then they will not be as defensive and will be more likely to recognize that they have a need
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When your prospects answer your questions, they will remember what they said more than they will remember what you said This process is very helpful in preparing your prospects to tell other people in their organizations about the issues When you can prepare your prospect for internal selling, you are impacting the sale at many levels in the business
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op companies compare themselves to leaders not just in their industries, but in any process they are interested in For instance, a company might benchmark its customer service against Nordstrom, even though it s not a department store Same-industry benchmarking gives you an idea of the standards you are competing with in your type of business Process-ori-
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ented benchmarking against other industries gives you a standard for what is possible, plus fresh ideas
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One of the most helpful tools you can use to help prospects develop and define their needs is a benchmarking tool A benchmarking tool allows you to compare information about your prospect against standards When your prospect s data vary from the standard, this provides you an opportunity for creating a dialog around the issue Which benchmarking tool is the right tool for you One of the leading benchmarking sources is a Robert Morris Associates (RMA) book that gives industry averages for things like sales per square foot, average gross, average profit margins, and so on Many banks use the RMA data for comparison purposes when making decisions about loans The comparisons quickly highlight how businesses are doing or when projections are unrealistic Some professional firms have developed their own benchmarking data because they have many clients in a particular industry For example, PricewaterhouseCoopers has developed a benchmarking tool they call advanced middle market business intelligence tool or AMMBIT This PwC tool was developed from business data input by many CPAs from many firms Sageworks has an industry comparison program that captures data from a variety of sources The unique aspect of the Sageworks program is that it provides a written analysis of the benchmarked data for you to provide your client
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