Sunday 16 March 2008

NLP and how it can be applied to sales

I have a lot of sales professionals asking me: what is NLP (Neuro-linguistic programming) and what can they do with NLP and can it be applied to sales!?

 

The simple and short answer is: Programming the language of your brain and yes, it can be applied to sales!

 

Some might ask themselves what possible good that can be!? Even though the practical process is complex, the answer is simple: Outstanding results can be achieved by producing specific communication to and through the nervous system.

 

Which basically means that, NLP is an interpersonal communication model and an alternative approach to psychotherapy based on the subjective study of language, communication and personal change! Therefore it can only influence you, they way you communicate and thereby your sales process

 

It was co-created by Richard Bandler and linguist John Grinder in the 1970s. The initial focus was pragmatic, modeling three successful psychotherapists, Fritz Perls (Gestalt Therapy), Virginia Satir (Family Systems Therapy), and eventually Milton H. Erickson (Clinical Hypnosis), with the aim of discovering what made these individuals more successful than their peers.

 

In sales this is very relevant as in most companies, the salespeople receive the same basic training and learn the same sales method and techniques. These individuals are selling the same products or services at the same prices as their fellow sales professionals. They are usually working with similar demographics and more or less equal territories.

 

Given all of these similarities, how are some salespeople able to become great salespeople and help their companies gain market share, while so many other salespeople struggle just to make their minimum quota?

 

The conclusion has to be, that the success of a salesperson goes beyond having good products and services, knowledge of those products and services, and knowledge of sales methods and techniques.The success of sales superstars goes beyond having good products and services, knowledge of those products and services, and knowledge of sales techniques.

 

Sales superstars literally see the world differently.........they have a different mindset.

 

This is one of the reasons that today the predominant patterns of NLP, the application of those patterns, and many variants of NLP are found in many sales seminars, workshops, sales books and audio programs in the form of exercises and principles intended to influence change in self and others (for example a customer). Watch out when buying some of these offers, there is a great deal of difference between the depth and breadth of sales training and standards, and some disagreement between those in the field about which patterns are and are not "NLP" and how it applies to sales.

 

I know this sound scary, however while the field of NLP is loosely spread and resistant to a single comprehensive definition, there are some common principles and presuppositions shared by its proponents. Perhaps most generally, NLP aims to increase behavioral choice by the manipulation of personal state, belief and internal representation either by a practitioner/trainer, or by self-application. Therefore it is for the performance of the sales professional very important.

 

Some of the main ideas from NLP, imported from existing counseling or psychotherapy practice, include:

• Problems, desires, feelings, beliefs and outcomes are represented in visual, auditory and kinesthetic (and sometimes gustatory, olfactory) systems.

• When communicating with someone, rather than just listening to and responding to what a person said, NLP aims to also respond to the structure of verbal communication and non-verbal cues.

• Certain language patterns such as the meta model of NLP can help clarify what has been left out or distorted in communication, to specify thinking and outcomes, reframe beliefs, and set sensory specific goals. In contrast, the Milton model language patterns are intentionally non-specific and metaphoric to allow the listener to fill in the gaps and make their own meaning from what is being said and find their own inner resources and solutions for problems.

• The actual state someone is in when setting a goal or choosing a course of action is also considered important. A number of techniques in NLP aim to enhance states by anchoring resourceful states associated with personal experience or model states by imitating others.

 

So the real question and conclusion a NLP coach or practitioner should come to is:

1. How and what should you do to produce optimum sales results.

2. How can you duplicate sales excellence in a short period of time.

 

As already mentioned short, in NLP, modeling is the pathway to sales excellence. The very idea is that if you identify the traits and habits, and pay the price of time and effort of a successful athlete, friend, parent or sales professional, you will become a successful athlete, friend, parent or sales professional.

 

From business we all know that successful sales professionals make money by determining what is successful in one sales or customer and duplicating it in another. Take a proven system and duplicate it, and maybe improve upon it. It might sound too simplistic for you, but there is scientific proof that, people who do this are virtually guaranteed success.

 

NLP in its very basics believe that the difference between those who succeed and those who fail isn't what they have – it is what they choose to see and do with their resources and experience of life. I guess this why it has become so prominent the last 30 years. For NLP is a tool to develop your own insights and strategies and help you change what you need.

 

This might sound very complex and difficult, but let's look at it a little more simplistic: you can teach a dog patterns that will improve his behavior. From psychological as well as a behavioral science view, you can actually do the same with people (yourself). What is the message with that - as my brother who is a Doctor always puts it (and lives it): "seize excellence, and make it your own". Let's face it, isn't it true that building from the successes of others (seeing what works) is one of the fundamental aspects of most learning! Technology – every advance in technology is based on the foundation of earlier discoveries and breakthroughs.

 

This however doesn't change the fact that for many, NLP and its basic principles are really a way of thinking, an epistemology — the study of knowledge — of how we know what we know. As an Engineer, I however have to say that in considering NLP as a science, it is important to recognize that the epistemology of NLP is more 'subjective' and 'systematically' oriented than many 'hard' sciences, which tend to be more 'objective' and 'deterministic'. That is the patterns explored and identified by NLP are often necessarily contextual and influenced by the perceptual filters of the observer. As a scientific approach, then, NLP tends to be more 'qualitative' than 'quantitative' and more 'structuralist' than 'materialistic.......but since this is deep psychological and mindset approach, it is argued that this is scientifically speaking valid.

 

In most companies, the salespeople receive the same basic training and learn the same sales method and techniques. These individuals are selling the same products or services at the same prices as their fellow sales professionals. They are usually working with similar demographics and more or less equal territories.

 

 

Given all of these similarities, how are some salespeople able to become great salespeople and help their companies gain market share, while so many other salespeople struggle just to make their minimum quota?

 

The conclusion has to be, that the success of a salesperson goes beyond having good products and services, knowledge of those products and services, and knowledge of sales methods and techniques.

 

It has been analyzed and proven that there were a few common traits expert sales communicators and successful sales professionals have – whether top executives or top salespeople – all seemed to share (study by Bandler and Grinder, 1979):

• Everything they did in their work, was pro-active (rather than reactive), directed moment to moment by well-formed outcomes rather than formalized fixed beliefs

• They were exceedingly flexible in approach and refused to be tied down to using their skills in any one fixed way of thinking or working.

• They were extremely aware moment by moment, of the non-verbal feedback (unconscious communication and metaphor) they were getting, and responded to it - usually in kind rather than by analyzing it.

• They enjoyed the challenges of difficult ("resistant") clients, seeing them as a chance to learn rather than an intractable "problem"

• They respected the client as someone doing the best they knew how (rather than judging them as "broken" or "working")

• They had certain common skills and things they were aware of and noticed, that were intuitively "wired in"

• They worked with precision, purpose, and skill

• They kept trying different approaches until they learned enough about the structure holding a problem in place to change it

 

They summarized their findings in the following ways:

You need only three things to be an absolutely exquisite sales communicator and change to be successful. We have found that there are three major patterns in the behavior of every sales professional we've talked to. The first one is to know what outcome you want. The second is that you need flexibility in your behavior. You need to be able to generate lots and lots of different behaviors to find out what responses you get. The third is you need to have enough sensory experience to notice when you get the responses that you want [...] (Bandler and Grinder, 1979)

 

This is very important for that is a scientific proof that sales excellence can and is made. The success of sales superstars goes beyond having good products and services, knowledge of those products and services, and knowledge of sales techniques.

 

Sales superstars literally see the world differently, because sales superstars have a different mindset.

The hard reality is that whenever your sales performance is below where you know it should be, examine your mindset.

 

Many salespeople underestimate the difficulty of developing a "salessuccess mindset".  They confuse a mindset with the simplistic positive thinking movement ("Every day, in every way, I am getting better and better.")

 

So what is the right or the wrong  "salessuccess mindset?

 

The answer is that we all act in accordance with the way we see ourselves to be.

         We always act as we see ourselves. People who see themselves as intelligent do the things that intelligent people do.

         People who see themselves as athletic do the things that athletic people do.

         What takes effort is acting contrary to your self-image—and it usually ends in defeat.

         If you think you do something good…..can or will you then improve?

 

Therefore if your self-image is not that of a salessuccess mindset, you will not engage in the sales behaviors that can make you and your company highly successful.

 

In NLP, here are the 3 very basic and fundamental ingredients that must be duplicated to form any form of human excellence and thereby sales excellence:

1. Belief System (read about how to change your belief system: www.xing.com/app/forum?op=showarticles;id=7371165)

2. Mental Syntax – organise thoughts, and understand how other people organise their thoughts. "Unlock the code"

3. Physiology – the way you breathe, hold your body, posture, your movements, determines what state you are in.

 

Now how this is done and put to everyday life, comes in slightly different versions of what coaches or practitioners consider to be the basic principles or presuppositions of NLP, but there is a fairly high degree of agreement on those most central to NLP. So here are some generalizations used as working guides (maybe it can help the one or the other).

• Behind every behavior there is a positive intention. Even a seemingly negative thought or behavior has a positive function at some level or in some other context. (presupposition)

• There is no failure, only feedback. (presupposition)

• The meaning of the communication is the response it produces, not the intended communication. (presupposition)

• One cannot not communicate: Every behavior is a kind of communication. Because behavior does not have a counterpart (there is no anti-behavior), it is not possible not to communicate.

• Choice is better than no choice. An idea from cybernetics that holds the most flexible element in a system will have the most influence or choice in that system.

• People already have all the internal resources they need to succeed. (presupposition)

• Multiple descriptions are better than one

 

Sorry for making this a long article, but this subject is deep and this is really just scratching the surface and in ending, here is my very practical advice: Your behavior and actions are a result of your state of mind. The ancestor of every action is a thought (which creates your mindset)......but this is nothing new, already in the teachings of Buddha, the Torah, the Qur'ān and in the Bible it is stated the same basic principle "beware of your thoughts, they are the gateway to your actions".

 

So, if one changes ones mindset/beliefs, one can achieve huge results. There is simply no power like the power of a resourceful state of mind, for the kind of behavior people produce is the result of the state they are in. How they respond to the state they are in is based on their models of the world (there believe system). Most salespeople take little conscious effort to direct their mindsets. Mindset change is what most salespeople are after, when they want success.

 

 

So let me end, in saying, if you want something real practical to start to work with NLP in sales, here is something you should start working with:

1. Control your thoughts they become your dreams/visions and thereby directions

2. Control your dreams/visions they become your actions

3. Control your actions they become your habits

4. Control your habits they become what you will be made of as a salesperson...............your destiny and hopefully your success

 

I know these are very psychological soft skills we are talking about and as you can read from my article I strongly believe that sales excellence is made, not born. That's why I actually wanted to create this forum and I'm dedicated to helping you grow and master practice this difficult task and am overwhelmed by the participation and thought and comments, I have read in the different discussions so far.

 

Regards your moderator Mark

 

Friday 14 March 2008

Spin Selling - what is missing - part 2

I have received a lots of mails, based on my last article about SPIN Selling and what is missing. Mainly I can split the comments in 2 big groups:

The first group, writing me how interesting the thoughts where and that they wanted to talk about how to add on SPIN. And the second group telling me how great SPIN is and which books I read –maybe I wasn’t up to date, since SPIN is great……………..which I believe myself as well, so they didn’t really get the point.

 

However for all the different readers who are interested in it, here are the basic books I build my SPIN Selling comments on:

 

1) SPIN Selling

This book is still today one of the top all time best written sales books ever. Neils approach was for this time ground breaking and unique and as we see in this discussion it stands the test of time. It has so many Fans and followers, as he was the first to go beyond product selling and talked about the buyers cycle as it relates to the sellers process. They need to be in alignment...if not, you will not get the sale. In my personal opinion this book is a must read for anyone selling.  As mentioned before and as you can read from my feedback, I have huge respect for Neil Rackham’s and his work.

 

And as for me, like for so many others in the 80's, has Rackham's book changed my career and sales life.

 

2) The SPIN Selling Fieldbook

Many have bought this book together with SPIN Selling or after reading the first book. In any case, the Fieldbook is mostly read after reading SPIN Selling. And both the official critiques as well as the readers point out, that If you've already read SPIN Selling, this book is not going to tell you much new things. If you would read the Fieldbook instead of SPIN Selling, then the Fieldbook is not thorough enough, at least if you compare it to SPIN Selling. It has been argued that the audience of this book perhaps was more college students, but not really experienced salespeople. A big critique was also the many cartoons, which made the book look like it's meant for younger people. What would be expected with a Fieldbook, following the SPIN Selling book, was that the Fieldbook offerd some transcriptions of salescalls, and an explanation of why certain aspects are wrong and how this could be improved using SPIN Selling. This was not really the case, it was more like a simple summary of SPIN Selling. So not really the Fieldbook anyone expected.

 

Having said that, please remember that for the time when SPIN Selling really came out, this was ground breaking, everybody else just made Product selling

 

 

3) Major Account Sales Strategy

In its day this would rate six stars out of five, but it's not much news and even this book has been superseded by "Selling is Dead" authored by Marc Miller and Jason Sinkovitz. In fact, the authors are students of Mr. Rackham and give him ample credit for the ground breaking work of "SPIN Selling and Major Account Sales Strategy. But as mentioned, it is nothing new, besides the fact that he starts to point out that need to tailor your selling strategy to match each step in the client's decision-making process - this however was not new, as this was part of his groundbreaking work in the 80’s. Ensure that you won't lose your customers because you'll know the psychology of the buyer and how to respond to their pains and doubts - and this is the heart of his old theory. Building on a customer situational pains, doubts and fears. Basically said - "customer needs and the possible doubts they might have with whatever you might try to position". Furthermore this book points out how you can handle negotiations, concessions on price, and term agreements skillfully and effectively - knowing the pain, problems and thereby needs of your customer. But many critics have already pointed out that Negotiating based on needs only is not a good enough negotiation strategy! In this theory is not used in any known sales negotiation  method known.

 

4) Rethinking the Sales Force: Redefining Selling to Create and Capture Customer Value

Neil Rackham shows in this work, how the successful sales force breaks away from traditional thinking and transforms themselves into complex business processes with multiple sales approaches and selling models that meet the demands of today's sophisticated customers by understanding there situation, problems, implications and from that the explicit need they have. In this book Value is argued that if you fulfill a customer need you go beyond communicating the value of products or services (which is right) and you start with the crucial ability to create value for customers.

 

 

However what many critics are right on, that this proved that SPIN Selling is truly dead. Rackham attempt to reinvent SPIN was very disappointing (in every way). This book was more about customer segmentation and how sales force alignment can be done successful. And what many critics say rightfully is that it takes over 200 pages to say something that deserves one paragraph (not even an article worth): some customers want a low-cost product and a low-end relationship, other customers want a more consultative, deeper relationship, and, pretty much, you have to know which is which to be successful.

 

And even though SPIN Selling has been one of the best sales methods for about 10-15 years, and Neil Rackham has tried to reinvent SPIN selling with some value based selling aspects, the conclusions "only" ends up with needs based value argumentations. This was great, when everybody just did product based selling, even when solution selling came around. Unlike practically every other segment of the modern business world, the corporate-sales department has changed very little from the rigid organizational framework it first attained back in the gray-flannel '70s. Only the sales methods have changed for many companies from Product to Solution selling. But even that bastion of traditional business structure is starting to evolve, as customers at all levels begin to reconsider their expectations, purchasing patterns, and criteria for establishing and maintaining relationships with sales professionals. So yes, the sales world and reality has truly changed, even the decision makers and budget holders have changed. Including the market and competition and today it is just not enough to understand our customer needs and NO, communicating Values based on the need of the customers is just not enough anymore. As mentioned before even psychology and behavioral science points out that the three main ways to influence human behavior is:

 

1) The most common way is by addressing needs.

 

2) Is to understand their wants (this is missing in SPIN)

 

3) By far, the most effective way to influence human behavior, is through core values (which is a mix of wants and beliefs, standards etc). This is not enough reflected in SPIN.

 

 

As mentioned so often in this article I’m a big SPIN selling fan and I am not suggesting that you ignore needs, for that is the first step and I don’tknow of a better method to identify the explicit need of a customer then SPIN. However, we no longer live in a needs-oriented society. Why are needs the least powerful way to influence human behavior? Needs are tied to shoulds. For instance, take statements like "I should save money"; "I should make more investments"; "I should make better decisions"; " I should get a financial plan"; or "I should have more discipline." Tangible wants are a step in the right direction. Therefore SPIN Selling should be re-invented to include wants in a much better way!

 

Remember, the least effective approach is to try to satisfy client needs – which SPIN selling does. A better approach is to help clients get what they want and desire. The thing to remember is that when needs-oriented planning leaves your client flat, try focusing on your client's wants and values instead. OBS, please note that needs and partly wants as well, don't have the emotional punch to influence human behavior. Therefore SPIN Selling should be both re-invented to include not only needs and wants, but value based selling methods that provide a way to communicate Personal and Business Buying reasons as well.

 

Remember, the least effective approach is to try to satisfy client needs – which SPIN selling, Major Account Selling and the Capture Customer Value method from Neil Rackham does. A better approach is to help clients get what they want and desire. The most important point about value is that value to your customer is not something you define – it’s exclusively defined by the buyer (and based on their wants). The value expectations that make them initially buy from you – as well as the total experience over time. Both the subjective and the more measurable values delivered by your total organization - that makes him buy from you again the next time. The most effective sales professionals help clients fulfill their values in life.

 

Again to point it out to all the different writing to me and tell me how great SPIN still is. You have misunderstood me, I believe that SPIN is a great method, I am a BIG fan of it, however it is just missing something - I hope this has given you a little overview. For anybody interested in modified version of SPIN selling please write to: mark@vonrosing.dk

 

Regards Mark von Rosing

Saturday 8 March 2008

Spin Selling - what is missing

From so many companies I work with, I'm happy to see that there are still so many SPIN users around (and I can count myself to them as well – even though I have heavily modified it). Having grown up on Rackham's sales models, I have huge respect for him and his work. And as for me, like for so many others in the 80's, has Rackham's book changed my career and sales life.

 

However what many critics are right on, is that SPIN Selling as a sales method is truly dead. You might ask yourself why? It is because SPIN selling is only based on Situational Problems, the Implication of the problems and from that the explicit need (or needs). It hurts to write it, as I'm such a big fan of it, however it doesn't change the fact that this is true and Rackham new book trying to reinvent SPIN was very disappointing (in every way). And what many critics say rightfully is that it takes over 200 pages to say something that deserves one paragraph (not even an article worth): some customers want a low-cost product and a low-end relationship, other customers want a more consultative, deeper relationship, and, pretty much, you have to know which is which to be successful.

 

And even though it has been one of the best sales methods for about 10-15 years, SPIN selling "only" ends up with needs. Things have changed, the decision makers and budget holders have changed (including the market and competition and today it is just not enough to understand our customer needs. Even behavioral science points out that there three main ways to influence human behavior.

1) The most common way is by addressing needs.

2) Is to understand their wants (this is missing in Spin)

3) By far, the most effective way to influence human behavior, is through core values (which is a mix of wants and beliefs, standards etc). This is not enough reflected in SPIN.

 

So here is why SPIN is good to identify the customer needs but not good enough to help you get the competitive edge you need to make the difference:

Prospects don’t always buy what they need – for that does not necessarily provide them value. They always, however, buy what they want, for that is of value to them. And for this, Spin is not tailored, here’s the difference:

Needs are…

• product specific

• rational (based on situational problem)

• above the surface (based on a situation and problem)

• based on facts and often measurable (in terms of implications for the customers)

 

Wants, on the other hand, are…

• product neutral

• emotional (this is where personal byuing reason comes from)

• below the surface

• based on perception and often not measurable

 

As a consequence, here’s the principle that needs to be added to SPIN:

Salespeople who can present their products or service (a need) in the way that their prospect wants to perceive it will be more likely to make the sale. That is Value Based Selling, let’s put it another way:

Prospects are more likely to buy what they need from prospects who understand what they really want, for then they fell you can provide them with value.

 

The thing to remember is that when needs-oriented planning leaves your client occupied, try focusing on your client's wants (which are his or her's values) instead. Needs simply don't have the emotional punch to influence human behavior. Remember, the least effective approach is to try to satisfy client needs (based on problems and pains). A better approach is to help clients get what they want and desire - which is their value expectation. The most effective sales professionals help clients fulfill their values in life. Differentiate yourself! Don’t be a traditional salesperson, become a Trusted Sales Professional - sell with values (with true values).

 

I am not suggesting that you ignore needs; however, we no longer live in a needs-oriented society. Why are needs the least powerful way to influence human behavior? Needs are tied to shoulds. For instance, take statements like "I should save money"; "I should make more investments"; "I should make better decisions"; " I should get a financial plan"; or "I should have more discipline." Tangible wants are a step in the right direction. Therefore SPIN Selling should be re-invented to include wants in a much better way!

 

Tangible wants are a step in the right direction. Tangible wants, such as early retirement, vacation homes, good schools for the kids, new car, estate protection, travel, and other goals are incentives to seek advice. But, in truth, even wants don't have the emotional pull that values do. Values are intangible feelings. Intangible, pure, undiluted feelings like love, pride, security, freedom, making a difference, independence, accomplishment, self worth, and so forth are key factors in influencing behavior. Values illuminate people's emotional motives so clearly, they must take action ... for their own reasons. Needs have the power to illuminate emotional motives as much as the penlight on your key ring, while wants work like your average flashlight. Values, however, illuminate emotional motives like a row of halogen high-beams on the front of a Mercedes on the Autobahn. Your prospects and clients are most likely to take action on your ideas when they feel a strong emotional connection to them. Your job is to illuminate their emotions so they fully understand the relationship between smart decisions and fulfilling their life values. Your job isn’t to be a traditional sales person and sell the ‘old school’ way.

Everyone has a unique 'values hierarchy.' Just like fingerprints, no two values hierarchies are alike. I do understand that on the business as well as the personal level value can be a difficult thing to define and comprehend. May be a simple scenario can help you grasp the idea. Your offering is a nice, cold glass of beer.

 

How valuable will it be regarded by potential buyers?

- to a person who’s religion does not allow him to drink alcohol - the value is absolutely zero

- to a person who’s body is very sensitive to alcohol – the value is next to zero

- to a person who is very drunk already – the value is very limited

- to a person who’s preferred drink is wine – the value is moderate

- to a person who has been on the golf court for hours without anything to drink – the value is high

- to a person who is crawling in the desert with the sun burning his back and his dry tongue hanging out of his mouth – the value is tremendous (he can hardly believe it’s a real beer - he is afraid it’s just a hallucination)

 

Conclusion: different people want something different and appreciate the value of a specific offering differently; the same person appreciates the value of a specific offering differently in different situations and even at different points in time; the more relief you can provide the more valued your offerings tend to be perceived. So, when you stimulate a conversation with current and prospective clients about their values (what is truly important to them), they will become emotionally involved, you can touch on their ranking of values, understand them at a deeper level, and you can dramatically shorten the time it takes to gain their trust. Emotional involvement and trust are two critical elements in creating profitable client relationships.

 

Without realizing it, you project your own values when you promote yourself. How do you feel when people project their values on you? Do you like it? Are you anxious to do business with people who project their values on you? You can't get people emotionally motivated when discussing your values. You do it by talking about their values. The first logical question to ask yourself is, 'How do I get people to talk about what is important to them (their values)?' Then, ask yourself, 'How do I use that information in a positive way? How does this create trust?' Listen for words and phrases like freedom, control, satisfaction, making a difference, independence, feel really good, pride, achievement, contribution, oneness with God, etc. These are indicators that you are on the right track, because they represent values. And values are emotional and they create positive emotional feelings in the person you are speaking with. The thing to remember is that when needs-oriented planning leaves your client flat, try focusing on your client's values instead. Needs simply don't have the emotional punch to influence human behavior. Therefore SPIN Selling should be re-invented to include not only wants, but value based selling methods that provide a way to communicate Personal and Business Buying reasons as well.

 

 

Remember, the least effective approach is to try to satisfy client needs – which SPIN selling does. A better approach is to help clients get what they want and desire. The most important point about value is that value to your customer is not something you define – it’s exclusively defined by the buyer (and based on their wants). The value expectations that make them initially buy from you – as well as the total experience over time. Both the subjective and the more measurable values delivered by your total organization - that makes him buy from you again the next time. The most effective sales professionals help clients fulfill their values in life. Differentiate yourself! Don’t be a traditional salesperson, become a Trusted Sales Professional.

 

Please don't misunderstand me, I believe that SPIN is a great method, however it is just missing something - I hope this has given you a little overview. For anybody interested in modified version of SPIN selling please write to: mark@vonrosing.dk

 

Regards your moderator Mark von Rosing