4 Better Ways to Sell Technology

bad_presentation

A lot of you guys make your living selling technology in the advertising and marketing technology space. It’s a great and noble occupation, but not for everyone. Our industry moves very fast, and software is always a stutter step behind. We are trying to solve problems for big brands and media companies, and a lot of what we sell sounds pretty much the same as the competition. Even if you truly have the best product, it’s really hard to get people’s attention. When you finally get it, it’s very hard to truly differentiate yourself and your products. In first meetings and big pitches, you have to leave the meeting accomplishing three basics: your potential customer should like you enough to work with you, trust you to do the work, and believe that your company can solve their problem.

In first meetings and big pitches, you have to leave the meeting accomplishing three basics: your potential customer should like you enough to work with you, trust you to do the work, and believe that your company can solve their problem. Like, trust and belief are pretty simple asks—but very hard to establish in meetings.

Does your typical one-hour meeting look like this?

  • Get the monitor set up and internet access established (10 minutes)
  • Go around the room with introductions (5 minutes)
  • Salesperson introduces the meeting and explains why you are there (10 minutes)
  • Salesperson gives the standard “about the company” pitch (15 minutes)
  • Subject matter expert talks about some use cases and benefits (20 minutes)
  • Demo (0 minutes. Oops. No time left for demo).

I have been in many of these meetings as a potential buyer, and I have also presided over quite a few of these meetings. Some are better than others, but for the most part, they are pretty terrible. Here are four things you can change up for your next meeting.

Stop the Slides

Here’s what happens when you deliver a slide presentation. If you show a slide with text on it, your audience will start reading it. In fact, they will finish reading it way before you stop delivering the content, and then they start thinking about what they are going to do for lunch. Maybe you think you’ve built the most perfect slide ever…full of compelling content and gleaming with ideas? Well, perhaps you have but you’ve alienated half of the room; the slide is the perfect level for the folks who already get it, and way too technical for the newbies (or vice versa). The approach here is to use a good headline and a gigantic picture of something interesting. Show a hammer, elephant, or a guy jumping out of a plane. The internet is full of great options. “Why is there a picture of a guy jumping out of a plane?” your prospect wonders. Your potential client will listen to you until he figures it out.

Grab a Marker

In the technology space, we sell a lot of complicated stuff, and we have a lot of ‘splaining to do in meetings, to borrow the popular Desi Arnaz phrase. Many of our potential customers don’t really know how the Internet works, and that’s okay. A 23-year old media planner at an agency isn’t immediately required to grok the differences between data integration types, but they still have influence over considerable budget dollars. What they need is some education, and that’s where your friend the whiteboard comes in. Why do mediocre actors salvage their careers on the stage? Because it’s harder. You have to know your material, deliver your lines, and there’s nowhere to hide. People respect that, and they will respect you when you close your laptop, pick up a dry erase marker and start explaining what your technology does, why it’s different, and how it will solve a problem. Plus, the element of theater is fun. People know exactly what you are going to say when you deliver a slide, so you will likely be judged on your delivery and the cut of your suit. Pick up a marker, and you will be judged by the size of your brain.

Show, Don’t Tell

Similar to the educational nature of whiteboarding, there is magic in a good software demo. After explaining all of the wonderful problems you are going to solve over 40 minutes, you will likely have a highly skeptical audience. Every other vendor has rolled in and also promised to solve the age-old “right person, right message, right time” conundrum, and you are just the latest in the pack. Whenever there is an opportunity to go into the software and demonstrate exactly what you are talking about, you should take it. “Did you ask about my integration with Amazon? Great, let me pull that up in our UI and show you exactly what to do.” As an industry, we also seem to suffer from using solutions engineers as a crutch. Guess what? If you need a highly technical person to walk through a few screens, then your client just found out that you have a product that only his most technical people can use. That’s a gigantic loser. If you sell software, you should be capable of giving a basic UI demo.

 Tell Stories

People are people, and they communicate best with storytelling. You don’t need to be a latter-day Walt Disney at your next meeting, but you do have to be able to tell a story similar to this: “Ron from Big Company has the same exact problem you guys are having. We worked with Ron and his team for 18 months and figured out exactly how to solve it. Ron is now an SVP. Hey, we should get you out to lunch with Ron, and he can tell you all about it.”

An old boss used to tell me that a sale needs to get your client “paid or made” We can certainly help people get paid by saving the money through efficiency, and “make” their careers with a successful implementation. People love to hear that similar people are having the same issues, and they don’t want to feel left behind. By golly, if this was good enough for Ron at Big Company it’s good enough for me. A good story should be realistic, inspire, differentiate your technology—but also be referenceable.

Because they will call Ron.

Advertisements

What Makes a Great Salesperson?

4 top sales managers share the qualities they feel make the difference between good and great when it comes to selling

Chris O’Hara, Chief revenue officer, LookSmart, Ltd.

You cannot be a great salesperson these days without some profoundly advanced writing skills. Why do I say that? Every morning on the train from Cold Spring Harbor to Penn Station, for the bulk of the 56-minute ride, 70 percent of the people on the train will be doing some writing—mostly pecking at their mobile devices. That’s a big change from 15 years ago. Back then, writing was something that happened in a more formal setting, when you sat in front of your workstation and crafted a memo, or wrote a proposal after a sales call. Back then, your prospects mostly communicated by phone—and would even answer it once in a while.

What does that mean for today’s sales team? A lot. First of all, your prospects are online…all day long. They are answering emails, reading newsletters, browsing websites, checking their Twitter feeds, and updating their Facebook status. They let phone calls go to voicemail, and comb through their messages once or twice a day. If you are in my business [digital advertising], your prospects are being assaulted by 30 emails a day, all promising to solve the problems of modern media, each with their own compelling value proposition. So, how do you break through all that noise and clutter, and get your prospect to acknowledge you? Good writing.

What makes good writing? Good grammar, constructing a proper sentence, and being able to tell a story all help. What is especially important is avoiding the use of “internet casual” abbreviations in email correspondence. An email should not read like a text message. When you are asking for somebody’s trust and business, it is important to maintain a level of formality and integrity.

As important as writing is, being able to comprehend the industry your team is selling to is equally as important. You probably have four to five competitors that are calling on the same people, trying to sell them something quite similar to your product. What’s going to differentiate your salesperson from the salesperson down the street is not just your product, but what you are providing beyond the product. That thing is called information.

When your salespeople reach out to prospects, are they offering more than just a chance to buy something? If they provide interesting industry news, opinion, or perspective on an issue, or (best of all) a valuable industry connection or introduction, then they are not just selling, they are also building a valuable relationship. The ability to be that type of salesperson revolves around reading everything they can about the field they are in, and becoming an expert. Not everyone can do this, but the 5 to 10 percent of sellers who can position themselves as industry experts will be vastly more successful than the average seller.

Most of us don’t have the perfect, reasonably priced product that just happens to be ready exactly when the customer, money in hand, wants to buy it. Therefore, the key to sales is constantly being around, so that when this miracle of circumstance happens, your salesperson is on the receiving end of it. That translates to your sales team calling a lot of people to remind them that they have something to sell, going to a lot of trade shows, and constantly staying in touch with their prospects. Do this enough, and eventually someone will buy something. Why? Like you, the customer is naturally lazy and wants to get the maximum return on the minimum amount of effort. He has already gone through a lot of annoying work and plenty of bad table wine with you to get to the point where he is comfortable enough to buy something, and he doesn’t want to relive that process all over again. Therefore, even if your product is a little worse or slightly pricier than that of your competitor, he will sooner buy it from you than start a whole new relationship and, worse yet, fill out another credit application.

The number one trait to be avoided is the tendency some salespeople have to sell too soon. A real salesperson should do more listening than selling, especially on the first several appointments. Prospects can read PowerPoints, too. If that’s what your team is doing on sales calls, they should consider another line of work.

[This appeared in the October 2012 issue of New York Enterprise Report]

Digital Advertising Veteran Chris O’Hara Appointed Chief Revenue Officer at LookSmart

SAN FRANCISCO, May 30, 2012 (GlobeNewswire via COMTEX) — LookSmart, Ltd. LOOK +2.58% , an online advertising network solutions company, today announced a key addition to its management team with the hire of industry veteran Chris O’Hara as Chief Revenue Officer. In this role, O’Hara will lead the LookSmart sales and delivery organization and leverage his years of experience with direct advertisers and agencies to increase LookSmart’s market share.

“With the addition of Chris to the LookSmart team, we are continuing to build an outstanding sales and delivery organization with a history of proven success in digital advertising,” said Dr. Jean-Yves Dexmier, Chairman and CEO of LookSmart. “We are very excited to have someone with Chris’s vast experience to lead our revenue generating organization.”

Chris O’Hara is a domain expert on platform technology, with an emphasis on digital advertising workflow, data management, and real-time bidding. He has led successful sales efforts at TRAFFIQ, Reviewed.com, and Mediabistro.com. Chris is a member of American Business Media’s speaker’s bureau and the IAB’s Networks and Exchanges and Sales Executive Committees. Chris is an accomplished author and a contributor to industry publications including Business Insider, eMarketing & Commerce, eConsultancy, AdMonsters, MediaPost, The Agency Post, Adotas, ClickZ, iMediaConnection, DigiDay, and AdWeek. His latest work, Best Practices in Digital Display Media (eConsultancy) is aimed at helping marketers understand the digital display technology landscape. He is currently working on a comprehensive whitepaper on Data Management that covers marketing approaches to Big Data.

“I am very excited about joining LookSmart,” said Chris, “To me the three things you need to create differentiated ad technology are platform technology, valuable data, and great people. LookSmart happens to have all of that in abundance. I am looking forward to joining the team and leading the effort to tell the advertising community what our plans are for leveraging our assets to create a unique cross-channel digital advertising platform.”

About LookSmart, Ltd.

LookSmart is an online advertising network solutions company that provides performance solutions for online advertisers and online publishers. LookSmart offers advertisers targeted, performance based advertising via its Advertiser Networks; and an Ad Center platform for customizable private-label advertiser solutions for online publishers. LookSmart is based in San Francisco, California. For more information, visit http://www.looksmart.com or call 415-348-7500.

The LookSmart, Ltd. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=8717

This news release was distributed by GlobeNewswire, http://www.globenewswire.com

SOURCE: LookSmart, Ltd.

        CONTACT: Bill O'Kelly, Senior Vice President Operations and
        Chief Financial Officer
        (415) 348-7208
        bo'kelly@looksmart.net
        ICR, Inc.
        John Mills, Senior Managing Director
        (310) 954-1100
        john.mills@icrinc.com

The Five Things to Expect in a DMP

Getting back control over their inventory is giving publishers a lot to think about.

“We want to make sure that we’re controlling what happens with data . . . we want to make sure we control pricing. Control’s a very important message. We don’t want there to be a cottage industry built on our backs” – Nick Johnson, SVP, NBC Universal

What do publishers really want? It’s simple, really: Power and control. In order to survive the ad technology era, publishers need the power to monetize their audiences without relying on third parties, and complete control over how they sell their inventory. In this era of “Big Data,” there is a fire hose stream of tremendously valuable information for publishers to take advantage of, such as keyword-based search data, attitudinal survey data, customer declared data from forms, page-level semantic data, and all the 3rd party audience data you can shake a stick at.

All of this data (cheap to produce, and ever-cheaper to store) has given rise to companies who can help publishers bring that data together, make sense of it, and use it to their advantage. Currently, ad technology companies have been using the era of data to their advantage, utilizing it to create vertical ad networks, ad exchanges, data exchanges, DSPs, and a variety of other smart-sounding acronyms that ultimately purport to help publishers monetize their audiences, but end up monetizing themselves.

Rather than power the ad tech ecosystem, what if data could actually help publishers take back their audiences? If “data is the new gold” as the pundits are saying, then smart publishers should mine it to increase margins, and take control of their audiences back from networks and exchanges. Here are the five things a good data management platform should enable them to do:

  • Unlock the Value of 1st Party Data: Publishers collect a ton of great data, but a lot of them (and a LOT of big publishers) don’t leverage it like they should. Consider this recent stat: according to a recent MediaPost article, news sites only use in-site audience targeting on 47% of their impressions, as opposed to almost 70% for Yahoo News.  By leveraging site-side behavioral data, combined with CRM data and other sources, it is possible to layer targeting on almost every impression a publisher has. Why serve a “blind” run-of-site (ROS) ad, when you can charge a premium CPM for audience-targeted inventory?
  • Decrease Reliance on 3rd Parties: The real reason to leverage a DMP is to get your organization off the 3rd party crack pipe. Yes, the networks and SSPs are a great “plug and play” solution (and can help monetize some “undiscoverable” impressions), but why are publishers selling raw inventory at $0.35 and letting the people with the data resell those impressions for $3.50? It’s time to turn away those monthly checks, and start writing some to data management companies that can help you layer your own data on top of your impressions, and charge (and keep) the $3.50 yourself. Today’s solutions don’t have to rely on pre-packaged 3rd party segments to work, either, meaning you can really reduce your data costs. With the right data infrastructure, and today’s smart algorithm-derived models, a small amount of seed data can be utilized to create discrete, marketable audience segments that publishers can own, rather than license.
  • Generate Unique Audience Insights: Every publisher reports on clicks and impressions, but what advertisers are hungry for (especially brand advertisers) are audience details. What segments are most likely to engage with certain ad content? Which segments convert after seeing the least amount of impressions? More importantly, how do people feel about an ad campaign, and who are they exactly? Data management technology is able to meld audience and campaign performance data to provide unique insights in near real-time, without having to write complicated database queries and wait long times for results. Additionally, with the cost of storing data getting lower all the time, “lookback windows” are increasing, enabling publishers to give credit for conversion path activity going back several months. Before publishers embraced data management, all the insights were in the hands of the agency, who leveraged the data to their own advantage. Now, publishers can start to leverage truly powerful data points to create differentiated insights for clients directly, and provide consultative services with them, or offer them as a value-added benefit.
  • Create New Sales Channels: Before publisher-side data management, when a publisher ran out of the Travel section impressions, he had to turn away the next airline or hotel advertiser, or offer them cheap ROS inventory. Now, data management technology can enable sales and ops personnel to mine their audience in real time and find “travel intenders” across their property—and extend that type of audience through lookalike modeling, ensuring additional audience reach. By enabling publishers to build custom audience segments for marketers on the fly, a DMP solution ensures that no RFP will go unanswered, and ROS inventory gets monetized at premium prices. 
  • Create Efficiency: How many account managers does it take to generate your weekly ad activity reports? How much highly paid account management time are publishers burning by manually putting together performance reports? Why not provide an application that advertisers can log into, set report parameters, and export reports into a friendly format? Or, better yet, a system that pre-populates frequent reports into a user interface, and pushes them out to clients via an e-mail link? You would think this technology was ubiquitous today, but you would be wrong. Ninety-nine percent of publishers still do this the hard (expensive) way, and they don’t have to anymore.

It’s time for publishers to dig into their data, and start mining it like the valuable commodity it is. Data used to be the handcuffs which kept publishers chained to the ad technology ecosystem, where they grew and hosted a cottage industry of ad tech remoras. The future that is being written now is one of publishers’ leveraging ad technologies to take back control, so they can understand and manage their own data and have the freedom to sell their inventory for what it is truly worth.

That’s a future worth fighting for.

[This post originally appeared in ClickZ on 2/29/12]

What are we Selling?

Most of us that are involved in sales, marketing, or business development (they are same thing, actually) in the media space don’t really know what they are selling. And I don’t mean that the sales director or your DSP or data company don’t really understand the way their technology works (which can be the case at times). Surely, the digital media salesman can be relied upon to deploy the latest buzzwords, acronyms, and business jargon at the drop of a two-sided, logo-besmirsched business card. (see everyone’s favorite web humor from the year 2000). We all know what product we are selling.

That doesn’t really cover it, though, does it?

What we are really selling is a dream. The dream of a digital future, and the hope that technology continues to be the solution to the problem, rather than another problem itself. It’s becoming a tough sell out there for a few reasons. I think it all started with the flying car. Ever since the car was invented and the first guy has to wait more than 10 seconds for a traffic light, we have all dreamed of the flying car. The personal hovercraft…essentially the DeLorean from Back to the Future, without the time machine capabilities. That thing was promised to us (coming soon!) way back in the 1950s. It was even clear, not so far back as the 70’s, that we would–with certainty–have something like that by the turn of the century. Well, it’s 2010 and we are all still waiting. The way traffic is getting around New York, Los Angeles and China (they had a traffic jam that lasted a week, recently), we are going to need them soon. Now, even though we still want them, nobody ever talks about them anymore.

I hope that’s not what happens to us. We are out there selling the future of advertising, and the future of how it’s measured, bought, sold, traded, served, shown, billed, and reconciled. Whether you are out there “pimping uniques and impressions” as some like to say, or selling SaaS model software for selling or buying display ads, or hawking premium data sets to ad networks, exchanges, and DSPs–you are selling the dream. You are an evangelist, a technology tent-revivalist of sorts, going from one campaign event to the next, trying to convince people  to take a nice sip of the technology Kool-Aid It tastes pretty sweet at first.

It seems that, with all the technology and measurement tools, that this business is worthy of being proselytized. We are offering  a world that has changed dramatically for the better. Instead of (in the print days) selling some vague subscriber that is self-described as “recalling your ad” and “passing along the magazine an average of 2.3 times,” you are selling results. Doesn’t matter how they pay for it; in the end, everyone is measuring by CPA (including yours, if your software/media/data cost is counted into the equation). The basis for that CPA comes down to the numbers, and the numbers don’t lie. Or, more precisely, they lie in ways that are harder to argue against.

What you are out there selling is control, which is the ability as a buyer to control exactly who you are reaching, and where they are being reached. Control over pricing, which means knowing how that audience is being valued, whether on an impression-by-impression, or guaranteed future audience. Control over what data you use to make decisions about that audience, and control over the technology you use to disperse your messages across the many screens of the interconnected web. We are far away from the time when the dream of total transparency and control over media is as easy as, say, updating your Facebook profile.

But, after the dust settles and an emerging class of technology winners in the media space emerges, we will see how well the dream was sold…and who ended up really buying it.

(Hopefully it’s not all Google).

Chris O’Hara heads up sales and marketing for TRAFFIQ.

[This article appeared in DIGI:day Daily on 12/2/10]


Looking for the Best Salesman? Find the Best Writer.

Today’s Dependence on Written Communication Means Your Next Great Salesperson May be an English Major

A headhunter recently asked me if she could help me recruit some new salespeople to our organization, and asked me what qualities I was looking for I told her, “Find me a great writer, and I’ll make a salesperson out of him.”

Why a writer? Look around. I’m riding on the 7:17 AM train from Cold Spring Harbor to Penn Station right now and, for the bulk of the 56 minute ride, 70% of the people on the train will be doing some writing—mostly pecking into their mobile devices. That’s a big change from 15 years ago. Back then, writing was something that happened in a more formal setting, when you sat in front of your workstation and crafted a memo, or wrote a proposal after a sales call. Back then, your prospects mostly communicated by phone—and would even answer it once in a while.

What does that mean for today’s online sales organization? A lot. First of all, your prospects are online…all day long. They are answering internal e-mails, reading newsletters, web browsing, checking their twitter feeds, and updating their Facebook status. They let phone calls go to voicemail, and comb through their messages once or twice a day. If you are in my business, your prospects are being assaulted by 30 e-mails a day from new start-up companies in the space, all promising to solve the problems of modern media, each with their own compelling value proposition. So, how do you break through all that noise and clutter, and get your prospect to acknowledge you?

Good writing.

Did you ever read an e-mail that made you laugh right off the bat, or had such a compelling subject line that you simply had to open it? How about an e-mail that felt like it was written exactly for you, or one that automatically answered a business question you’ve been asking for a while?  Those are the e-mails that get opened, read past the second line, and flagged in your inbox for later action….the ones that break through all the noise and make a connection. They are hard to write, and finding the people that can write them is even harder. But in a world where the written word is truly king, those that can communicate the most effectively in writing will be the leaders.

For Randy Daux, a recruiter with Howard Sloan Keller, the leading retained search firm in the media space, it’s all about knowing your audience. “Writing allows for a connection between writer and reader and is a demonstration not just of intelligence, but empathy and understanding, as well.  How many times has each of us read a cover letter or marketing email which, directed at a broad audience and without an understanding of our business objectives, we simply moved to the trash?  Competent, targeted, and emotive writing is capable of cutting through our increasingly frenetic and multi-tasked lives, and really making someone stand out.  Moreover, with everyone tied to a computer or iPhone (or Blackberry) 24/7, there’s little excuse for lack of communicative capability.”

Luckily, finding the best writers among your prospect list is fairly simple: look at their cover letters and judge them on the merits. Few candidates understand that, in sales, the easiest thing you can sell is yourself. If you can’t make a compelling argument for your own employment as a salesperson (knowing the “product” as well as you do), then I don’t want you selling something of mine. The cover letter is your gateway to understanding the way a good candidate thinks and, more importantly, expresses himself in written form. Here are some things to look for:

* Your Name: Did she get it right? Or are you “Whom it May Concern” or, worse yet, “Hiring Manager?” If your company has an “About Us” section, then your candidate should know who is in control of the hire, and address the cover letter appropriately. Even if you are not listed on the masthead, if your company has a phone number, then your candidate should be able to get the name and e-mail address of the hiring manager or HR person in charge of the hire. Would you let a salesman send a “To Whom it May Concern” e-mail to a prospect? Of course not.

* The Knowledge: Does your candidate know the first thing about your company and its hiring needs? Does she spell the company’s name correctly (don’t laugh…this is not uncommon), and know what the company does? Does the cover letter reference the actual job title in the body of the e-mail? Hint: if you get a cover letter for a “Sales Director” position that talks about “the exciting Director of Business Development position,” then you’ve just been mail-merged. Would you allow a salesperson to send 20 strategically important prospects a canned cover letter like that? No, you wouldn’t. Randy Duax, whose firm recruits for Pointroll, the Huffington Post, and The Knot, expresses a similar sentiment:  “I can’t tell you how many times I’ve Googled a sentence or two from a cover letter a candidate sent me to find it was copied and pasted from a stock cover letter/resume website.  If someone is going to put minimal effort into interfacing with me in such a fashion, how are they going to act when they’re actually in a sales role?”

* What Can I Do For You? Too many cover letters focus on the needs and skills of the salesperson, rather than the needs of the company that is hiring. You don’t have to be trained in the Huthwaite methodology to know that the first rule of sales is to get to know the customers’ problems before you try and solve them. The candidate that leaps right into his pitch without demonstrating knowledge of your needs is like a salesman who goes into a meeting and immediately leaps into a 30 slide PowerPoint. Do you want a salesforce that “sprays and prays,” or a consultative seller that can break down the digital media ecosystem, and explain your company’s place in it, relative to the issues your prospects are facing? The latter, of course. If your candidate leads by putting your needs before his, that’s one sign of a seasoned seller.

* The Close: Last, and never least, is the close. What is the “ask” your candidate is making? For an interview? Is the candidate’s “collateral” being left behind (her resume) compelling? Does the candidate reference anything besides her resume, or lead you to a place where you can find out more about her (a article or write paper she wrote, her LinkedIn page, or even an industry article you might be interested in)? Being a good salesperson means always getting a yes, no, or a continuation. Look at your candidate’s close, and see if it makes you want to take the next steps. If she can’t get to second base with you (an engaged “prospect” if there ever was one), then it’s likely that she can’t get there with one of your customers, either.

There are a lot of good salespeople out there, but few great ones. The great ones in the modern era are going to be the ones that can break through the clutter, and deliver the messages that your prospects want to read. They are the ones who not only communicate through e-mail the most powerfully, but the ones who write the Twitter messages that tend to get retweeted, and maintain a blog with their industry observations, and post the Facebook messages that don’t make you want to immediately “hide” them. The best salespeople know what you want, and deliver the content that addresses that need. Finding them is as easy as being a great reader.

[This article originally appeared in Adotas, 4/28/10]

SalesRants 14: Pigeon Feed

Swat ’em away, but they’ll still keep coming — those ‘pigeons’ of corporations that can’t stop flocking to consultants’ birdseed

Remember that television commercial featuring the two consultants talking to a corporate guy? It went something this like this:

Consultants: First you need to optimize your sales force using a state-of-the-art CRM tool, align your marketing message across multiple media to drive your quarterly goals, and implement a company-wide monitoring system to insure message optimization across multiple business units, resulting in huge gains across multiple metrics. This plan is sure to turn your business around.

Corporate Guy: Great! When can you start doing it?

Consultants: [Break down in gales of laughter]. We don’t actually do anything… we just tell you how to do it! [They dissolve in paroxysms of malevolent laughter].

Anyway, you get the drift. Despite the almost universal reckoning that corporate consultants do little more than sell glorified PowerPoint presentations full of the latest business jargon, companies such as my beloved Big Media Company continue to employ them. Let me introduce you to the very best consulting scam ever invented, one that Big Media Company fell for hook, line and sinker.

 

Scarily enough, it’s called “SPIN Selling.” “SPIN,” of course, is an acronym. Let me save you $500,000 and give you the S.P.I.N. Selling overview in a nutshell: First, find out what people want before you try and sell them something. Then, tailor your sales pitch to address their needs. Sounds simple, right?

Instead of barging into some agency, breaking out your media kit, and telling your customer your circulation, readership, and what special issues you have coming up, why not sit down over a cup of coffee and ask him a bunch of questions. Like: How is your business? (a Situation question); Is the price of paper leading to an increase in your costs? (Problem); Why is it important to solve this problem (Implication); and, If I lowered your rate, would this help you reach more potential customers? (Need/ payoff).

So, you SPIN a customer, slowly walking him through his situation, how it affects his business, and how you — his savior — may solve his problems using whatever it is you happen to be selling. It’s how probably 90 percent of all salesmen and 100 percent of successful ones approach their business. It’s called consultative sales or, put more simply, selling something that people need. What the company that sells the SPIN program offers, however, is more ingenious than anything that’s gone along with products I’ve ever hocked. They take what is a very straightforward and simple sales process (ask questions, provide answers) and pile a bunch of meaningless process and acronyms on top of it, creating a sales pseudoscience that, like Boggle, is “easy to learn, impossible to master.”

Let me tell you how it works (applicable not just to SPIN, but all bullshit media sales consultants and sales consulting in general): The Consultant comes into Big Media Company (the Pigeon) with a long list of corporate stooges who have used their product (IBM, Honeywell, or any Fortune 500 client whose size exceeds that of the Pigeon, and whose CEO is likely to be impressed by). The Consultant says they can increase sales by 20 percent a year using their new patented sale methodology. The Pigeon’s CEO cuts that estimate in half and still figures he’s up a few million net, even after paying the Consultant a healthy $500,000 fee. Soon enough, the Pigeon signs up, and mandates sales training for everyone on staff.

Naturally, since the test is based on the yet-untaught sales principles offered in the coursework, the results are terrible. Pigeon’s people are way behind the curve!

The Consultant comes in for about a month, and trains everyone, 20 at a time, using the same off-the-shelf Powerpoint presentation, with Pigeon’s name sprinkled throughout for that customized look. People are asked to take a test before the training to establish a “baseline” of sales effectiveness. Naturally, since the test is based on the yet-untaught sales principles offered in the coursework, the results are terrible. Pigeon’s people are way behind the curve! Compared to (insert Fortune 500 company’s results here), Big Media Company is a non-player in the 12th percentile!

The training commences, filled with obscure terminology and acronyms designed to turn what is essentially an easy-to-understand concept into something on which you can slap a patent. After the trainings are complete, another test is administered to make sure Pigeon’s salespeople have absorbed the expensive, mandated training. Lo and behold, the results come in, and Consultant has really made an impact! Compared to the initial baseline results, the latest monitoring shows that Pigeon’s staff is really embracing this new sales dynamic! Sadly, however, there is still work to be done. We show that IBM’s salespeople achieved a 15 percent higher result on their post-training assessment, so we recommend a further dose of advanced training (at a discounted rate of $250,000).

You get the gist. By the time Big Media Company — or any other Pigeon — realizes that their sales are about the same as last year, and that Consultant’s package is perhaps better suited to selling something like consulting services, rather than classified advertising, it’s too late.

Moral of story: Never buy something from a salesperson who is full of more shit than you.

[This post originally appeared in MediaBistro, 8/30/2006]