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May 11, 2005

Ten Realities of Complex Sales

1. Brands are in a coma. A blue-chip business card may open the door. But by itself, it won't move the sale forward.

2. Client loyalty is an oxymoron. Research tells us that client loyalty is on the decline. Don't take it personally, but many clients are spreading around how they spend money on professional services.

3. Strong relationships won't overcome poor performance. If your track record is poor, having friends in high places won't save you.

4. Value and track record trump relationships. Superior value will give you an edge, even over competitors with strong client executive relationships.

5. Single decision makers are rare. Many projects impact many parts of an organization, so multiple decision makers get into the act. Add the bevy of gatekeepers, influencers, and technical evaluators, and it becomes harder and more imperative to figure out who will make the decision.

6. Referrals work, but new clients are very cautious. Word of mouth is a potent marketing tool, but keep in mind that 70% of referrals will check your reputation and your Web site before contacting you.

7. "Free" consulting is often expected. Clients often expect some aspect of the project, like preliminary recommendations, to be developed during the sales cycle. Be careful to walk that fine line between demonstrating qualifications and providing free work.

8. Price matters. Early in the sales cycle, it's typical for clients to say their focus is on results, not price. As the decision gets closer, clients will pay much more attention to price. The lesson: clarify scope early, so you don't have a jaw-dropping price when decision time arrives.

9. Scope evolves unpredictably. As the client discusses the project with multiple consultants, subtle shifts in project scope and objectives can occur as the client reacts to consultants' ideas. Be sure to re-clarify scope once the client has finished preliminary conversations with consultants.

10. Sometimes the game is rigged. It's not uncommon for a client to bring competitors into a proposal effort even though a consultant has already been selected. Use your sales qualification process to assess your probability of winning before writing a proposal.

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