Why waste time, energy and money presenting proposals that have a low probability of closing?

In previous articles I talked about the importance of diligently researching and studying your customer’s business. I suggested that you use your research findings to construct a sound theory showing how your customer could benefit from a partnership with you.

By testing your theory, you gain the customer’s agreement BEFORE you develop a final proposal.

Scientists run experiments to test and validate their theories. They use what they already know to find out what they don’t know.

Sales professionals need to do the same thing. You test your theory by discussing it with a customer executive to see how they react.

That’s because the only person who can validate your theory is your customer.

Here are three ideas to guide you through this important conversation:

1. Introduce Your Theory Early in the Conversation

Busy executives don’t have the time or the motivation to educate salespeople about their business. You have to prove that you’ve already done your homework.

Amy is a sales professional who works for one of my customers. She sells specialty chemicals that are used as additives in the manufacture of automotive paints. One of her biggest customers, a large paint manufacturing company, was suffering the effects of slowing demand and increasing competition.

Amy researched her customer and developed a theory: To spur demand, the paint company could conduct training seminars for automobile body shop painters. Experts could teach the painters advanced auto body repair and painting techniques. During the training, the experts could also point out unique advantages of using paint manufactured by Amy’s customer.

Body shops would benefit by learning new techniques they could use to grow their business. They would also become more likely to use Amy’s customer’s brand of paint.

Amy’s theory shows that she had done her homework. She invested time and energy into learning about her customer’s company and understanding some of the critical issues they face.

That’s the reason you need to introduce your theory early in the meeting with your customer and then let the theory guide the remainder of the conversation.

2. Wait for a Response

Once you present your theory, stop talking. Wait for your customer’s reaction.

If your customer does not like or agree with your theory, they will typically say so, or not say much of anything.

If they are interested, they will usually begin asking questions.

3. Proceed appropriately

Each customer is different. Each situation is different. But your goal is to arrive at a point where you and your customer agree on your theory. The path you take to arrive at that point depends on your customer’s reaction when you present your theory.

If your customer disagrees with your theory, you need to find out why.

A Sales Vice-President of a trucking company recently asked me to come to his company’s headquarters and present an overview of my company’s sales training capabilities.

I researched the trucking company and developed a theory about how they could potentially address an important issue and accelerate their business results by using my products and services.

Early in the presentation I introduced the theory. The sales vice-president immediately said, “No. You are wrong. That’s not the way we operate.”

Not expecting this response, I was rattled. After an awkward moment I asked, “Where am I off base?”

My question was an invitation for the Sales VP to explain where he felt that my theory was incorrect. He did. This opened the door for our dialog to continue.

Once I understood the VP’s perspective, it became clear that with a few adjustments, the theory would remain valid. After making the adjustments, we went on with the meeting and we formed a healthy business relationship.

In this instance, “proceeding appropriately” meant modifying my theory.

Here’s the lesson: If your customer disagrees with your theory, ask clarifying questions. You may be able to modify, alter or tweak your theory and continue moving forward.

Even if your theory is completely unworkable, it’s better to find out now rather than after you have invested time and resources into developing and presenting a proposal that will never close. Discovering disagreements at this stage gives you the opportunity to develop a new theory based on your research of your customer’s business.

Once your customer agrees that your theory is valid, they are essentially agreeing that a business partnership with you is feasible.

Now you are ready to work with your customer to gather necessary details and construct a proposal. In the end, your proposal is a business case that your customer helps you build. It shows the details of how your products and services can help your customer accelerate their business results.

That’s what customers are willing to pay for. And that’s why the pros close more sales than the amateurs.

(This article may not be reprinted or copied without written permission from Howard Wallin.)