It seems counterintuitive in sales, but leading with your flaws can shorten the sales cycle and disarm your customers, ultimately leading you to better metrics. Todd Caponi was the chief revenue officer for a company called Power Reviews which helps retailers and brands collect and display ratings and reviews on their website. His time there caused him to rethink the way he leads sales organizations because he discovered that consumers were more likely to buy a product that had a 4.2 to 4.5 rating than a 5-star rating. Statistics show that 95 percent of consumers in the B2C world are looking at reviews before they buy. Of those, 82 percent are looking for negative reviews before buying. Todd wondered what might happen if the same notion could be applied to the B2B world. Pros and cons Todd embraced the idea of embracing the pros and cons and leading with them. He discovered that his first deal, which previously had a sales cycle of 6 months, closed within 4 weeks. They discovered that when you lead with your flaws, your sales cycle speeds up dramatically. You’ll qualify deals faster and eliminate those deals that you probably weren’t going to win anyway. Todd was in New York when his VP of sales called him to say the company had an inbound lead from an apparel brand that wanted to initiate an evaluation. The brand happened to be headquartered in NY, so Todd scheduled coffee with the senior vice president of e-commerce. The coffee meeting became a presentation instead, and the SVP got right to the point. Competitor is better He said that his company had been talking to Todd’s competitor, and he wanted to know why Todd’s company was better than the competitor. Todd figured he had nothing to lose, so he asked an unexpected question. “Do you mind if I tell you why the competitor is better?” He explained that the competitor had offerings that his own company didn’t, so if he wasn’t going to be able to meet their needs, he wanted to determine that quickly so both parties could move on. The room deflated. The guy clearly thought Todd was crazy, but he agreed to the idea. Todd talked about an add-on that the other company had but explained that his own company was focused on certain core beliefs. The SVP acknowledged that the add-on the competitor was offering wasn’t a necessity for his company, so they moved on. Transparency Within 20 minutes, the SVP kicked everyone else out of the meeting and grabbed a folder that includes the company’s budget for ratings and review software. He pointed to a number inside and asked Todd if he could hit that figure. The two engaged in a collaborative process that culminated in a deal a few weeks later. The company didn’t initiate an evaluation. It simply chose Todd’s company. He recounted that he had called Todd’s competitor, who quickly went on a rant about the add-on that distinguished the two companies. Every time they led with their flaws, it completely disarmed their prospects. The company built its sales cycle on a foundation of trust and all of its metrics moved in a dramatically positive direction. Wired to resist Todd said that we’re all wired to resist being sold to. As a buyer, he simply wants to be able to predict what his experience with a certain product will be like, and then to get the best deal he can. He said that a salesperson will demonstrate within the first five minutes whether he will be a great resource or push toward a sale even if it isn’t what the buyer wants. People believe in authenticity and honesty. Many of them believe that there’s a trade-off required so that in order to have authenticity and honesty, you will sacrifice results. But the data suggests otherwise. The data says that when you provide authenticity and honesty to your customers, you’ll maximize your sales results. Truthfully, the era of hiding your flaws from your prospects is over. The proliferation of ratings and reviews has moved into the B2B area and it has become the way of the world. B2B buying

Ask this episode

“What did the council decide on item 42?” — answered with the speaker and the moment.

Transcript

Related