Why Knowing ‘Why’ Matters

What Other People Think

“While that may be important to you Simon, others think otherwise.”

Twenty years ago I wrote about the Dutch company Fortis. I researched, cross-checked and peer-reviewed the report and published recommending investors buy shares.

Stock market research is advertising. It must be marketed, which meant calling everyone I knew and some I didn’t. It was an entry level sales job but better remunerated.

Not everyone wanted to listen. Most turned on voicemail, while the occasional person bruising for a fight answered. Like Neil, who suggested my report didn’t matter.

It was an important lesson.

What’s in it for me?

The link between research reports and revenue is tenuous. An analyst advertises knowledge hoping investors notice. If enough people at an asset manager rate you, their trading desk sends business.

To be relevant you must be different. There is a consensus and staying too close makes you dull. You must recommend action as no one needs advising to hold shares. And you need insight, because opinion must be substantiated.

With all this you still fail more often than you succeed. People like Neil aren’t ready to listen, let alone buy, because they are busy and have other priorities. You call everyone you know to maximise the chance of a sale.

Pitching research is ideal practice for launching new products. These must be different to incumbent products, trigger a reason to purchase and be useful. Even then only a few people are ready to buy.

Qualifications and Credentialism

Being an analyst requires a university degree or two, or experience in an industry. These are table stakes and at best get you one hearing. The brand you represent is important and investors tolerate analysts at bigger firms with more valuable services.

Outside of the top five banks you are as good as your last recommendation.

Prospective clients may listen to an expert but they won’t buy unless a product alleviates a pain. No qualifications or credentials are enough to sell a dull service.

Even when selling good product you must head off objections.

Objection Handling

Two weeks ago we met the four core personality types. Each has an adaptive strategy aligned with the BANT objections (Budget, Authority, Need and Time).

The Controller says there’s no budget if you don’t allow them a role in implementing a solution. The Cheerleader fears rejection and needs an authority to approve anything.

The Calculator prefers their way of doing things and does not see the need for yours. Finally, the multi-tasking Complier lacks the time to undertake something new.

To make a sale you must overcome these objections. This starts with marketing. Case studies tell stories of client pain and their initial resistance using one of BANT. The story concludes with a superior outcome, achieved with your expertise, product and service.

My research was a reason to call investors. The aim of marketing is to get a meeting. There you ask questions to uncover the personality types. Once you understand people and their pain, you start to sell.

Roles and priorities

In B2B sales there are multiple personalities. Four to 11 people in a process is common. Each is a user, an approver, or a negotiator, the latter including procurement and lawyers.

Users must have need for your product and time to adopt it. The approving authority requires budget. The negotiators must be convinced of the need, time and authority to minimise their interference.

Each person has an adaptive strategy. A lawyer who is a Cheerleader needs every detail checked with someone. A user who is a Controller wants confirmation of budget before asking for approval.

Effective closing requires recognising resistance and knowing how to overcome adaptive strategies. A one-size fits all pitch, for example with data showing off your product, lacks the appeal to multiple personalities.

Selling is a Duty

Fortis shares doubled in price from May 2004. Lots of others did too, so Neil might have been right to ignore me. But he lost his job soon after, which made me feel guilty.

Had I served him better maybe my recommendation would have saved him.

In sales we have a duty to sell to people when it benefits them and their organisation. Over the last 20 years I’ve been perfecting the art. Hit reply now if you’d like to know more.

I am Simon Maughan and I write The Profit Elevator as a guide for B2B firms seeking faster growth. Objection handling is included in The Streamlined Selling System in my P.R.O.F.I.T. Through Process Planner.

If you found this letter valuable, please share it with a friend.