GrowthANSWERS » No sale? Just ask your potential customer WHY?

February 20, 2009

No sale? Just ask your potential customer WHY?

Filed under: sales team development, sales process optimization, 1-to-1 relationship marketing, lead generation, General —

BY J. MARK WALKER

Several years ago I was the regional sales manager for a small manufacturing company.

One of our product lines was made by this German parent, and was often used in OEM applications.We had a prospect in my Region who bought $500,000 per year worth of a product like one of ours, and we wanted their business. I worked through their Purchasing Department and Engineering Group to insure that we met or exceeded all their design specifications, and that our price was right. After more than a year, we still did not have the order.

I called the Purchasing Agent and asked, “We have the best product at the best price. Why don’t we have the order?” His answer floored me. “Our Vice President of Sales and Marketing does not want to change suppliers?” I asked, “That seems a little out of the ordinary. Why is that?” He responded with a story about a big problem with their present supplier which caused a major public relations disaster in one of their markets. They eventually got the problem resolved, but the VP of Sales and Marketing did not want to risk going through that kind of issue with a new supplier.

After verifying that he wanted to order our product, I asked the purchasing agent to set up a meeting. My Vice President of Sales, Director of Engineering, and Product Manager met me at their plant and we sat at the table with their Vice President of Sales and Marketing, Director of Engineering, Quality Control Manager, and Purchasing Agent. We got all the concerns out on the table and demonstrated how the problem they experienced in the past could not occur with our product. We then agreed upon a plan for a site visit to our facility by their people to verify that we could serve them.

From then on it was just a matter of working the plan, and we got the order.

What was the question that I had failed to ask one year earlier? After we became an approved vendor, I should have asked the Purchasing Agent something like this: “Who else needs to agree to this before you can place the order with us?” I could have saved a year of time and earned an extra $500,000 in revenue had I uncovered the issue with “changing suppliers.” Often there are factors in a purchase decision which don’t make sense to us, but which relate to a cultural issue or a historical problem like my customer had.

You will only learn this when you ask questions to pull out the information.