Most sales models include a conversion funnel in which reps try to convert a marketing-generated lead into a prospect and then a customer through sequential steps. In this model, sales people are expected to make the process as friction-less as possible for the potential buyer and to close the deal at the end by using certain phrases and techniques to “overcome objections.” This perspective is promoted in books and seminars, but research indicates it is not how people buy.
As one of us noted in a previous article, buyers work their way through parallel streams (rather than a funnel) as they explore, evaluate, and engage in purchase decisions via web sites, white papers, social media, and contact with other buyers through sites like Marketo, and so on.
This why the end of a sales process is the worst time to handle objections — prospects typically contemplate their objections long before “close,” and, to avoid conflict, often cite a socially-acceptable rationale such as price, which may not be the real barrier to buying. To better address this reality, sellers should ask prospects to make incremental commitments throughout the process.
Along with improving sales results, research has shown that incremental commitments can boost charitable giving, increase show rates for blood drives, and reduce smoking. In a seminal study, a team posing as volunteer workers canvassed a neighborhood and asked residents to put a large “Drive Carefully” billboard in their front yards. Most residents, over 80%, refused to do so, mostly because the signs would have obstructed the views of their homes. Researchers had better luck in a near-by neighborhood, however, by first asking residents to display a smaller, three-inch sign that read “Be a Safe Driver.” This request was met with almost universal acceptance. Then, two weeks later, when researchers returned and asked this second-group of homeowners to put the large “Drive Carefully” billboards in their front yards, 76% agreed to do so.
An incremental approach to sales has many benefits. It allows reps to glean more information from prospects and to gauge their commitment rather than just their comprehension — a crucial difference in a customer conversation. Usually, reps are taught to listen for phrases from prospects such as “that makes sense” or “that’s a valid point” or nonverbal signals such as head nods. But these cues mean only that a prospect is comprehending what you’re saying. They’re analogous to the conversational si in Spanish and many other languages, which means “I hear you,” not “I agree with you.”
Commitment, on the other hand, requires action. For instance, if you were to periodically prompt prospects to confirm that they agree with the data or objective you’ve cited, and then ask them if they’d be willing to act on that agreement via some small action, you’d receive much clearer feedback. If the prospect commits, you can move on; if not, you should identify the objection or barrier, and deal with it.
Because incremental commitments are so vital, you must be intentional in securing them. As a general rule, the earlier you can identify objections, the more likely the sale will occur.
Incremental commitments can also convince prospects to change, which is vital in selling new products or services. Unless the proposed benefits of a new product significantly outweigh their perceived losses of a change, prospects tend to stick with what they know, a phenomenon known as the endowment effect. The incremental-commitment approach can help to overcome status-quo inertia.
Consider Paccar, a designer and manufacturer of premium trucks, which has consistently introduced new products and maintained a price premium of 10-20% over its rivals. One reason for Paccar’s success is its online interactive that shows potential customers the expenses that accrue during the lifetime of owning a truck. You can input gasoline costs, tire rolling coefficients, and vehicle weight to quantify the benefits of a Paccar truck versus those of competitors. You can do the same for resale value, maintenance, driver retention (useful data if you run a fleet), and financing costs.
The interactive makes it easy for prospects to comprehend the relative economics at play and allows them to make small but meaningful commitments during the search and sale process, alleviating their fears. This is no small feat since truck owners, like Harley riders, are often beholden to a particular brand, and sometimes even tattoo its logo on their bodies. The process also improves prospecting and sales productivity because it allows reps to gauge the willingness of customers to commit before Paccar devotes expensive resources to closing the deal.
Other companies have found similar success. One firm, which sells complex technical services to telecom companies, was spending 9 to 12 months of its 24-to-30 month selling cycle in proof-of-concept meetings with multiple groups at the customer — a big sunk cost if the sale was not closed. By instituting demos at various parts of their buyers’ journeys, the firm decreased its selling cycle by 6 to 12 months, increased close rates, and freed-up more time for selling to other prospects.
To add to that, many companies are using content marketing campaigns to uncover potential objections, generate initial commitments to successive aspects of their value propositions, and identify more promising leads. This is more productive than relying on downloaded white papers or blogs, which often generate a broad and often unproductive array of leads.
New sales enablement tools are making it possible to make incremental commitments a measurable pipeline activity. Showpad and other services allow reps to forward materials to prospects and observe how the prospect engages (or not) with the content. Does the prospect look at the price list? Does she forward the document to others in the buying unit? Which collateral or trial offers do and do not generate action? This helps to pinpoint where incremental commitments can be best located.
It’s important to keep in mind that it’s not the customer’s responsibility to make selling easy; it’s the seller’s job to align sales activities with actual buying behavior. So don’t treat closing as the last step of a linear process; instead, you should always be closing — always — throughout the sales process via incremental commitments.
Frank – great post! Lately,
we’ve been discussing strategies for gaining customers. Your advice about encouraging
customers to make incremental commitments is very valid and worth consideration
for every B2B sales professional. Thanks for your work.