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Train with the Sales Dodo: The Most Underutilized Strategic Advantage…References
March 13, 2008
Salespeople are always looking for a way to differentiate themselves to win an account. Few use one of the most powerful tools in their bag—the right reference.
By Lee B. Salz
You've been chasing an account for six months and feel quite optimistic as the buying process comes to a conclusion. The sale is between you and two other firms. The competition is fierce, but you feel you are ahead. At 11 a.m., the procurement agent asks for three references to be provided to her by the end of the day. In a panic, you send a company-wide e-mail in search of these reference-able clients. At 4:58 p.m., you get the three references from your colleagues and quickly send them out to the Procurement Agent. Mission accomplished—just barely.
This scenario plays out in companies every day across the country. The request for references is a standard part of any buying process. However, few salespeople use the reference stage of the process to their strategic advantage. They simply desire to provide a quick response to the prospect with their requested references. In the mind of the salesperson, the speed of his response communicates supplier performance. While somewhat true, the discussions the prospect will have with the references carry more weight in the selection decision.
Why Do Prospects Ask for References?
Webster's defines "reference" as someone who can make a statement about a person's qualifications, character and dependability. Interestingly, there is a perception disconnect on this definition between salespeople and prospects. When I talk to salespeople, I usually hear that references are just a standard part of due diligence. Some say it's a "rubber stamp" of an award. However, when I talk to buyers, I hear a very different message. Many buyers look at the reference step of the buying process as their opportunity to validate the potential supplier's message. In essence, prospects are searching to ascertain whether a supplier can deliver on the promises made during the buying process. Can the supplier really handle this size account? Are they really that fast or that accurate? Is the service as good as they described?
Sometimes, prospects ask the same questions of the reference that they asked thhe salesperson to see if there is a difference in response. Other times, they ask specific questions relative to their needs that may not have been shared with the sales person. For the prospect, this is their most critical evaluation step of a supplier's expected performance.
It is the little things that winning salespeople do that makes them winners. So, if all of the competing salespeople are going to provide "good" references, can you provide the "best" references? You most certainly can. But there is a process to do so, as "best" is different for each prospect.
1. Have a conversation with the procurement agent.
"I received your request for references and I’m happy to provide them. So that I can provide you with the references that best support your initiative, what are you hoping to learn from our clients?" If you can gather that information from the procurement agent (don't say it can't be done until you try it), you have the roadmap to identifying references. Even if they can't—or won't—provide you with this information, you have at least shown that you care.
2. Think about the account and what is important to your prospect.
Take a different approach to responding to the request for references: Reflect on what was learned during the needs analysis discussions. For example, think back to the needs assessment part of your sales presentation. If your prospect was concerned about implementation, provide an account that your company recently implemented. Perhaps the decision is being made by a CFO. Provide a CFO from one of your other clients that can speak to your performance as your second reference. For the third reference, provide a client that is purchasing the same amount of the same product. How great is it from the prospect's perspective to have the opportunity to speak with three clients who can relate to their needs? They'll be able to gather the information they desire from someone with whom they share something in common, and make an informed decision.
3. Give more and you'll get more.
To take it a step further, don't just send your prospect contact names and phone numbers. Provide a brief narrative explaining to what purpose each client serves as a reference. How many salespeople are doing that?
4. Contact your references.
Contact each of your three references and inform them that a call will be coming their way to discuss your performance as a supplier. During the call, share which particular areas of the business your prospect will be inquiring about. This way the reference is prepared for the conversation when the prospect calls. An unprepared reference reflects negatively on the supplier.
In a competitive marketplace, every opportunity that you have to demonstrate value to a prospect is critical. Leveraging the reference step of the process can give you that little edge that will push you over the top.
Lee B. Salz is President of Sales Dodo, LLC, author of Soar Despite Your Dodo Sales Manager and an online columnist for Sales & Marketing Management. Lee is available for keynote speaking, business consulting and sales training. He can be reached via e-mail at lsalz@salesdodo.com, his Web site at www.salesdodo.com or by phone at 763.416.4321.
Sales & Marketing Management Magazine
This article is brought to you by Sales & Marketing Management, the leading authority for executives in the sales and marketing field.
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