The power of SMS

I have recently been converted. No, I am not joining the church of Scientology or any other faith, I am talking about SMS. Until recently, I was cought in the misconception that SMS messages are for teenage kids who send silly text messages to amuse themselves. I could not be more wrong.

Here is the deal. Everyone has a cell phone. People carry it all the time. People will screen calls, junk or neglect to read e-mail but everyone will read text messages on his phone.

An SMS message can serve the following:

• Get information to someone in a meeting
• Communicate a critical point to a peer who is on a conf call
• Reach a person on a flight or who has his phone off (yes, he will get it when he lands)
• Reach a person in a different time zone who you do not want to bother with a potential wake up call (:
• Reach a person who is not reading his mail, or is buried under a ton of mail (first day back in the office syndrome)
• An alternative to e-mail when you are away from your PC
• Get a message to someone you really don't want to talk to right now
• Provide an unexpected thank you note alternative
• Send a photo or chart to a person away from their PC (using picture message)

I personally use a QWERTY enabled phone (I may review it later on as part of my concept to review tools of the trade). I highly recommend this option if you do not have the skill of a 13 year old at texting and you don't want your customers to have to disyphere messages like:

i m srry bt i do nt hv th tim to typ vwls

Free is Good !!!

Working in a small company, our sales CRM has been based on a sophisticated system namely Outlook and several long Excel sheets. I have had a long on and off affair with ACT! which I could no longer really get to work for me.

I have recently decided to change our system and after reviewing several expensive software solutions including SalesForce(tm) I have decided to go with a pure online (web based) system.

Basically, we are always connected. Why should our CRM reside anywhere but the web?

After looking at several system I have decided to test run a website called www.freecrm.com

This San Francisco based service has a free (limited) version but more importantly has an excellent feature set - everything I want without too much junk I can't understand and use.

The "Pro" version is only $15/m per user.

I am still not completely sold (some early problems are occasional lag when working with the system as well as some bugs I already found). Still, the upside of this system is high and I intend to call the company and see how the problems can be addressed. I will keep you guys posted on the up and downside of the system.

The Greatest Product For Long Flights

Over the last two month I logged a little over 100 hours of flight time on my various work trips. I would like to recommend a little item that makes my flights productive and fun. Well, maybe not fun, but bearable. The external universal battery allows my tired old laptop to log up to 6 hours of extra operation. With my internal battery maxing out at 2 hours, this allows me to catch up on all my e-mail, rehearse my presentations and catch a DVD movie (a real power drain) without worrying or working with a dim screen to save on juice. I recently purchased a second battery for a trip I had to Europe. You can get a really nice universal battery for $150 online with free shipping at this website:

http://www.laptopbattery.net/universalbatteries.html

Oh, I must warn you, if you travel like me, with a laptop, two external batteries, and IPOD, noise canceling headphones and a PSP, be ready to have the screeners look through your bag. Still, highly worth it....

Back In The Saddle

Hello Readers

It has been a while since my last post, in the interim I was able to squeeze the following:

1. My second daughter, Leah Rose Rotem was born.
2. I somehow found the time and energy to close a major deal with a fortune 100 company
3. I have managed to travel several trade shows and in Europe

I am back and committed to more regular posts. I have several articles on the back burner, but I would love to get your inputs on what subjects you would find most useful.

Happy trails.

The Price Is Right

A lot of focus is given to product pricing and price negotiation as part of closing sales. I have stated this before, and I will state it again - price is one of the less important aspects of selling technology.

Product is linked directly to value. It is much easier (not to mention profitable) to work on increasing your value rather than cutting your price. Since value is almost always perceived rather than measured, you the talented salesperson can increase your product value by taking the steps I preach.

Even when the product you are selling is 100% identical one can increase his price be making the sales process and post sale service more appealing. A good example is shopping with Amazon. Using price comparison engines I can almost always find identical products at a lower cost than Amazon. Still, the comfort of shopping on Amazon's excellent site, the guarantee they provide for shipping and returns and the knowledge that my credit card information resides in the safest place are worth 10%-15% more at times.

Here are a 10 steps I would like you to try:

1. Start by telling your customer that you are NOT the cheapest product out there.

2. Explain that the quality/service/support etc. cannot be delivered at the lowest cost.

3. Explain the differentiators you provide and ask the customer if they are worth money to him

4. If the customer tells you that you are too expensive, consider that you did not explain the benefits/value correctly to the customer.

5. If the customer does not see the benefits, offer a lower cost alternative, with less features.

6. If the customer states that even your stripped down proposal is still too expensive, consider waling away.

7. If you are still interested, ask the customer what price he believes could make the deal happen.

8. Don't hesitate to counter offer

9. If you are still far away, consider waling away. There are plenty of opportunities out there and not all of them fit your product/service. Trying to fit a square peg into a round hole is not a good idea.

10. Other tricks to move negotiation closer is asking the customer to make some modifications to his purchase. Can he order a larger quantity? Can he provide a long term commitment to buy? Can you get great terms?

REMEMBER - NEVER EVER DROP PRICE WITHOUT A CONCESSION FROM THE CUSTOMER - this only weakens your position and makes your proposal look inflated thus ruining your credibility.

I can write 50 more pages about price negotiation, but there have been many great books on the subject (I intend to list a few in a future post) . Again, it all comes down to establishing value.

I will revisit this subject in future posts.

Now go and sell.......

Nice Guys Come First

The first time I seriously thought about sales as a career was after watching Glengarry Glen Ross, a great film based on a great play. If you haven't seen it - do it now. If you have, you cannot forget the sales "training" Alec Baldwin provides the hapless real estate sales people in the film.

It is a macho world of killer sales people. Real "sharks" who use every trick in the book to sell worthless real estate investments to naive marks.

Since working in sales, I have learned that:

A. I will never be as cool as Alec Baldwin or Al Pacino in this movie.
B. I cannot sell crappy product
C. I cannot scam people into buying anything
D. Nice guys actually do better in this field than "sharks"

Still, there is a lot to learn from the following clip. Get your popcorn and click the window below.

"Problem Solving" Sales

Big screen TVs, sports cars and iPods are three examples of products people "want". Given the right price, these products would sell infinity units. Unfortunately, in the technology field your customer will very rarely want your product or service.

It has nothing to do with how good your product is. It has nothing to do with your brand recognition. It is simply that technology products and services rarely provoke the emotional response. Your enterprise server, outsourcing services or DSP board does not provide sex (or sex appeal) or a cool factor (and yes, some people think DSP boards are cool, but they themselves are totally uncool).

Rather than trying to make our products cool and appealing I suggest an approach where we forget about our product and focus instead on the customer. What is he or she trying to achieve and how we can help them. Not our product. Us.

Sales people are often maligned due to the perception (which is partially true) that our goal is to push product and earn commissions. Why would someone ever like a person trying to make a buck at his expense? I propose a different approach. Forget about the sale and focus on helping the customer. Trust me. The sales will come.

I will dedicate a future post to the rational behind this approach, but for now I will outline how it works.

1. Target the company/customer
2. Engage the decision maker
3. Understand the problems he is facing
4. Offer your empathy
5. Asses the best solution(s) for the problem
6. Offer your time resources and experience to solve the problem
7. If relevant, close the sale
8. Follow up to see if there are any other problems that need solving

To illustrate, I will use an example based on a real life service I was involved in selling. The service is: Helping technology companies fund R&D by obtaining government grants for innovative technology.

The selling process can work as follows.

1. Target the company/customer
Reading or hearing of a company developing an innovative technology product. I research the company, its history, products, industry and finances if possible.

2. Engage the decision maker
Engaging the CEO or CFO of a technology company. There are a million ways (cold calling, soft bump at an event, mutual acquaintance etc.)

3. Understand the problems he is facing
I discuss the company situation, its plans and goal, its current obstacles and its finances (a touchy subject, but one that can be approached once a report is created). Understand if the company is seeking funding, or is in need of extra finance (most often companies will need more money, whether it is to keep running, or to fund more aggressive R&D)

4. Offer your empathy
I explain how I was a founding member of a start up. How R&D accounted for 70% of our expenses and how we struggled financially because we relied solely on VC money. I show the customer I am no stranger to this industry, I understand his problems and that I am able to see things from his perspective.

5. Asses the best solution(s) for the problem
This is the tricky part and the MOST important one in the process. Often we want to rush in an wave our service as the solution to all the customer problems. However we must resist this temptation. Sometimes there are several solutions to the problem. Some may be better than our product. Sometimes, our product is a completely wrong fit.

We must never force our product when we know it is not the right fit. We must always present all the possible solutions and recommend the best product, even if its not ours. You might be able to "trick" the customer into buying your product even though it is not right for him. In 9 times out of ten, the customer will not buy much of your product (maybe some samples, maybe a small test run) and will NEVER come back for a second sale.

In this example, various options for R&D funding can be: raising more VC money, applying for a loan, finding a strategic customer who may be willing to fund the research, reducing costs by going to an outsourcing solution, going to alternative funds or even going to the fund I work with, but doing it without my help or with the help of my competitor.

And then, there is also the option of going with my company and approaching the fund I work with.

I lay out all the options, being careful NEVER to talk badly about any alternative (especially about competition) and not to eagerly of my solution. I like to explain the upside and downside of each option as it relates to this specific customer.

6. Offer your time resources and experience to solve the problem
This seems like a not brainer in the case where the customer selects your product. I claim that you will do well by offering your help regardless of the option(s) the customer is exploring. Maybe I know someone in a VC who is looking for exactly this type of company. Maybe I know a company who would love to buy the product and help the company do more business. And in the case where the customer decides to go with a competitor of mine, I will recommend the best one.

This last one seems wierd, but I believe there is no "good product" and "bad product" just a product that fits in the right time and the right circumstances. Your customer will be amazed when you recommend a competitor, instantly giving you a world of credibility. Next time, he will come to consult with you and your product may be the best fit. Remember, sales are not a sprint, they are a marathon.

7. If relevant, close the sale
If you got this far, this should be trivial. You have already established empathy and credibility. The customer has selected your product from the various options. You are 90% there. Provide a fair price and terms the customer can live with and he will gladly hand you the PO.

8. Follow up to see if there are any other problems that need solving
Remember, repeat business is the easiest and most profitable sale in the world. If you sold a product and delivered on your promises, the customer is now yours to loose. If you did not sell because your product did not fit, you still have the empathy and credibility established last time around. Just keep track of new opportunities and when one comes along that fits, you are 90% there.

In my future posts I will expand each segment, but that is essentially it. If you can go through the eight steps you will have customer who will buy and keep buying from you for many years.

Tech Sales Vs. "Other Sales"

Some people are considered "Natural Salespeople". You must have heard about people who could "Sell refrigerators to Eskimos". I am not one of these people. In fact, my early forays into sales have been unmitigated disasters.

At age 17 I was lured into selling the Herbalife pyramid scheme (yes, I was that stupid). It goes without saying that my money and effort went down the drain. Later on in life, I had several temp jobs selling various products at fairs and other public events. I did not rock the world on those jobs either.

I spent the first seven years of my professional career as an engineer designing and building the products I now sell. I now sell millions of dollars of product to fortune 100 companies.

So what is the difference? I believe I am part of the new generation of sales people. Sales people who rely less on old school "wine and dine" techniques and more on hard core knowledge of the product and "problem solving"to make my sales happen.

Let me make it clear - this type of selling is not unique to technology sales, and to make it work you still need to employ all the classic skills (networking, effective communication, questioning and listening, strong follow ups etc.) that every sales book preaches.

Can this technique work for other industries? I am sure it can, as long as your product or service presents a unique value (or you can instill the quality in the way you deliver your product).

I do not make any claims that my way of selling technology is the only way, or even the best way. It is just the one that works for me. As my old boss and mentor said "There are many different styles of sales people and there are many styles of selling. The only thing that matters is the bottom line".

Here We Go

"Does the world need another blog about sales?" That I was asking myself prior to this post. The answer I must admit is - probably not. And yet, I am here typing. Why you ask? Well, all people who work in sales must have a little part in their psyche that says "I can bring something to the table that no one else can". Boredom would be another answer (:

So here goes.

Welcome to the Tech Sales Blog. This blog's mission statement (yes, I do read too many sales books) is "Be a hub for sales professional who wish to network, learn and improve their trade". Some of the posts I will add will be specific to technology sales, but I hope all sales professionals will find something of interest.

My goal is to post a new topic once a week and share sales techniques, tips and even sales opportunities I come across and could help someone else out.

I will try and keep the posts entertaining and if possible ehmm.... "inspiring"

Thanks for reading. Thanks for posting comments (they are all welcome)

And as the Ramones said "Hey ho, let's go"