Category Archives: sales for small business

How to Increase Your Email Response Rate

Follow this simple template to write emails that actually get opened, read and replied to!

A study conducted by the Radicati Group in 2015, illustrated that the average business user sends and receives an average of 122 emails per day, a number that is expected to increase to 126 messages by the end of 2019.  As no surprise, the average email only has a 20% open rate and a shockingly low response rate of only 6%.  This means that for every 100 emails you send, only 20% (20 emails) are being opened and of those 20 emails, only 6% (1 email) are being replied to.  That works out to 1 email reply for every 100 emails sent, so essentially a response rate of 1.2%.

So how do you compose an email that will fall into that 1.2% category? The answer is quite simple.  Keep it short and to the point. Follow this simple template.

The Breakdown:

Subject Line:

This is the most important line in your email since most emails are deleted without opening based on the subject line alone.  Make it as succinct and relevant as possible to the reader.

For example: “Referral by [INSERT NAME HERE] Re: [INSERT OPPORTUNITY HERE]”

 

The Opener:

In this section, in 1-2 sentences maximum, address the following:

  1. Who are you?
  2. How did you get this email address?
  3. What do you want?

For Example: “Dear [ADDRESSEE], My name is [INSERT NAME HERE] and a mutual acquaintance of ours gave me your contact information. [INSERT REFERRAL NAME HERE] recommended I contact you regarding [INSERT OPPORTUNITY HERE].”

The summary:

In 1-2 sentences (3 maximum), outline the purpose of your email.  This can be a brief description of the business opportunity you wish to discuss. Do NOT be tempted to get into your sales pitch here!  Simply address the following:

  1. What do you want to talk about?
  2. Why should they talk to you?

Conclusion:

Once again, limit this to ideally 1 sentence:

  1. Call to action (i.e. request a meeting)
  2. How you can best be reached

 

I have found this approach to be successful over 90% of the time regardless of whom I am contacting (CEO’s, lower-level management, clients etc.). So, whether you are struggling with a low reply rate or you simply want to improve your existing reply rate, try this formula and I’m certain that you will see results.  If you require more assistance, please feel free to contact me for personalized sales coaching services.

Happy Sales my friends!

 

 

 

To Email, to Call or to Text: That is the Question

Shakespeare_ComputerAre you sending emails to schedule simple phone calls? If so, you are wasting your time!

Do you often email your customers or prospects in order to set up a time to have a phone conversation? Have you sat down and calculated the efficiency of this approach?

I find myself increasingly frustrated with the number of people who instead of picking up the phone, will send an email to schedule a time for something that would be a very quick conversation. This commonly results in several back and forth email messages with alternate times and then ultimately one party may cease to respond.  Days if not entire weeks may pass and to no avail. All of this could have been avoided by simply picking up the phone and having a 1-2 minute phone conversation or the message could be relayed in the form of a text message.

Why Email is Ineffective?

A study conducted by the Radicati Group in 2015, illustrated that the average business user sends and receives an average of 122 emails per day, a number that is expected to increase to 126 messages by the end of 2019.  As no surprise, the average email only has a 20% open rate and a shockingly low response rate of only 6%.  This means that for every 100 emails you send, only 20% (20 emails) are being opened and of those 20 emails, only 6% (1 email) are being replied to.  That works out to 1 email reply for every 100 emails sent, so essentially a response rate of 1.2%.

Alternatives: Phone Call or Text Message?

According to a study by eWeek, 80% of people are currently using texting for business however, studies have shown that only 25–31%  of people prefer text messages to phone calls.

The most preferred business activities conducted by text messaging according to the Harris Poll are:

  1. Checking order status (38%)
  2. Scheduling or changing appointments (32%)
  3. Make or confirm reservations (31%)

It must be noted that all of the above imply that there is an existing or soon to be existing business relationship.

In the sales process, texting can lead to conversion gains in excess of 100% however texting a prospect prior to establishing contact with them can not only adversely effect contact and conversion rates, it may also be illegal depending on the state or province you reside in.

That being said, how do you know when the most effective means of communication is to call, text or send an email?

When to Send a Text Message:

  • You have an existing relationship with your client
  • Your client has directly provided you with their cell phone number
  • Your message is brief, uncomplicated and only requires 1 or 2 basic single-sentence responses (i.e. setting up, changing or confirming a meeting time, following up on an order, etc)

When to Make a Phone Call:

  • You do not have an existing relationship with a prospect
  • The prospect or client did not give you their cell phone number directly. If you received their cell phone number from a 3rd party, they likely have no idea who you are so call them and speak with them first.  If you simply do not have their cell phone number, call their office number.
  • The subject matter you would like to discuss is more involved than and exchange of 1 or 2 sentences

When to Send an Email:

  • You have had a conversation on the phone or via text message and the recipient has requested additional information and/or details in the form of an email. Although the response rate for email is still low, if the prospect or client has requested it and knows to look out for your email, your response rate will increase. Sending unsolicited email is illegal in Canada and can result in fines of up to $1M for individuals and up to $10M for corporations.

In this day and age, it is all too easy to hide behind a computer screen.  As a result we, are all constantly bombarding each other with online messages and emails and in my opinion, they have simply lost their effectiveness as a communication tool.

So let the take home message be, don’t be afraid to pick up the phone and make a call.  Since most people don’t do that anymore period, that act alone will make you stand out among your competition.  We are all human beings and require some sort of true human interaction and relationships whether they are personal or business in nature, require that interaction in order to grow and flourish.

Happy sales my friends and the next time you’re tempted to hide behind your computer screen and send an email, remember that there is only a 1% chance it will even be replied to, so suck it up Princess and pick up that phone!

Cheers,

TSW

The Handwritten Note in Sales and Business: A Lost Art

Handrwitten CardYear after year, each Holiday Season less and less people are mailing out Holiday Cards.

Why? Because it’s so much easier and cheaper to just send a Holiday Greetings email or to post a Holiday Greetings picture on your website or email signature.  Sure you can send a Holiday Greeting email blast out to hundreds of clients and track who opened the email but is that really effective? What is your return on that investment?

I personally find those sorts of impersonal messages totally meaningless.  All it says is that the sender is too lazy or cheap to spend the minute or two to actually write a note in a card. I may spend 1 or 2 seconds to look at the email and think, “oh, ok” and promptly delete the email without further thought.  After receiving many of these in addition to the dozens of other emails I receive on a daily basis, it is likely that I have completely forgotten who even sent me that email greeting within a few days.

In today’s modern society it is all too easy to send a text or an email. Even if we need to “write” a formal letter, that letter is typed, never written.  The closest thing that most of us do to handwriting is signing a document or receipt. I bet most people these days don’t even remember how to do cursive handwriting! Try it!

A step-up from the impersonal mass email greeting are greeting cards that are pre-printed to include a personalized message (you can only have one of course) and your signature so it “looks” like you signed it.  This is a bit better than an email but I’d still toss that card right into the trash.

That being said, if you are in sales or run any sort of business it speaks volumes to your clients if you actually send them a card with a handwritten note.  Sure it is a total pain in the butt and is time consuming but it shows that you care about your client as an individual and are willing to put the effort into expressing your appreciation.  It is a small gesture but it can go a long way.

Furthermore, since nobody seems to actually write greeting cards anymore, you may be the only one to give your client a hand written gift card which will make you stand out in their mind.

If you have hundreds of clients, sure writing out personalized greeting cards to every single one of them is not an effective use of your time, however as a rule of thumb, you should send out personalized cards to your top 20% accounts or at minimum or your top 10% in addition to prospects which have the potential to be in your top 20%.

Not sure what to write?

Here are some tips on how to write a simple and effective note in a greeting card:

  1. Address the receiver by name (i.e. Dear John)
  2. Include your general message: If sending multiple cards, write up 2 or 3 different versions of this message so you aren’t sending everyone the exact same statement. Keep the statement brief (i.e. 1-2 sentences)
  3. Write a brief personal statement . This can be something that only applies to this particular client. It can be a reference to a joke between the two of you or something as simple as thanking them for the specific number of years they have been your client.
  4. Sign your card

A personal touch can go a long way.  Remind your clients this Holiday Season that they aren’t simply a number to you or your company but rather a valued client who you can relate to as a person. In spite of how technologically advanced our society has become, people still like to buy from actual human beings and put a face to the company they are dealing with.

So this Holiday Season, If you haven’t sent out your greeting cards just yet, there is still plenty of time to do so! But if you missed the boat this year, try to plan on doing it for next year.  In the meantime, it is also a great idea to send a hand written thank you note to a new client or one who has recently made a large purchase.

Happy writing my friends!

Cheers,

TSW

 

5 Surefire Ways To Lose Your Best Sales Representatives

iquitWant to Keep Your Best Sales Reps? Don’t Make these Costly Mistakes!

The average sales representative changes employers every 2-3 years.  At any given point in time, I know at least a handful of sales representatives who are looking to make a move.

Why? Because companies make the same mistakes time and time again that cost them their best reps.

What are they doing? In almost all cases, companies are trying to cut costs and increase profitability. The problem is, if you cut costs, service, quality or both will also be sacrificed to some degree.

The most common complaint from managers and business owners that I have heard is that their commissioned sales representatives are making too much money.

BusinessmanBurningMoney

What is wrong with this statement?

If your commissioned sales reps are making a lot of money, it’s a good thing! It means that their sales are good and the company as a whole is making more money. Reps on a 100% salary are another story entirely!  So, the problem is that companies of this mindset are simply being greedy and short sighted thinking that they can try to squeeze the highest level of productivity out of their sales force for a minimal investment.

Some sales managers alike may take issue with the representatives they manage who are making more money than them. Rather than taking pride in being a good manager and celebrating the success of their sales team, they see this as a bruise to their ego and then make detrimental changes to how their reps are compensated.

Whether you are a business owner, VP of Sales or a Sales Manager be sure to avoid making these hefty mistakes which will cost you your best reps and maybe even your entire sales force.

1. Cutting and/or Capping Commission

paycutLooking for a way to slowly poison your sales force and give them a prolonged, torturous death? Cut their incentives or better yet, cap them all together! Salespeople work on incentives, so if those incentives are taken away or significantly reduced, they will either work less or look for work elsewhere immediately.  Some but very few reps will persist and try to work harder to make what they were making previously but that will not last long.  They will eventually leave or burn out and then leave.

2. Territory Realignment

salesterritoryTrying to figure out a way to cheat your reps out of reaching their targets so you can save on paying out those commissions and bonuses? Shift their territories around every 6 months to 1 year.  That way nobody has been in their territory long enough to qualify for their commission or the reps who would have been entitled to a hefty commission, no longer have that account in their territory after the change so they are no longer eligible to receive it.  This strategy also makes it impossible for the sales reps to maintain any working relationships with their clients which is a substantial part of building the business.  Clients don’t want to meet a new rep every year.  It screams that the company is unstable and therefore potentially unreliable. Not only will the business as a whole suffer from this strategy, but it is also more than likely that the company will also lose their entire sales force. If a sales rep has no chance at making their commission or bonus, they will leave.

3. Unreasonable and Unachievable Sales Quotas

Dangling-CarrotFeeling a little sadistic and enjoy dangling that carrot in front of your reps and moving it further and further out of their grasp? Give them a massive increase in sales quota that none of them will be able to achieve.  I have seen well established companies that have been in business for decades implement a new sales target that is 10 to 20 times their previous target for products and services they have always sold and seen regular 3-5% annual sales increases. If a company increases a target, it must be a realistic target that can be achieved by at least 50% of the sales force.   Implementing completely unreasonable and unachievable sales quotas most often results in the resignation of the entire sales force. Afterwards,  good luck maintaining those regular sales increases!

4. Reducing Sales Support

phone off hookWant to leave your sales representatives to hang out and dry? Cut back on their support. Sales people are out there all day long pounding the pavement, pushing the company product or service on their clients and often a situation arises where the rep needs assistance from a manager or from customer service.  When companies make cutbacks in this department, the rep is left completely to their own devices and do you know what most of the good reps will start to think? “Why do I need to work for this company? I’m doing everything myself so I should just start my own business!”. Alternatively, some reps may opt to jump ship and work for another company, perhaps even one of their competitors, who offers better service and support.

5. Dramatic Change in Management Structure and/or Style

DrEvilProjectManagerWant to take your company to the next level? Do it wrong and you’ll take the company to the next level downward! There are multiple ways companies can implement changes to management structure and style.  The most common mistake I have seen are companies that have historically given their reps a fair bit of freedom (and where the reps were successful in that environment) change to a micromanagement system in order to increase accountability and profitability.  This is flawed because simply some reps thrive in a micromanaged environment and some do not. If you change your management style, you will also likely need to hire an entirely new sales force that will fit nicely in that environment rather than resist it.

So if you are reading this article looking for ways to eliminate your entire sales force of “overpaid” sales representatives (without firing them so you don’t have to pay severance) and replace them with entry-level newbies who you can pay 1/3 of their salary, you may have found this article helpful. If that is the case, I hope that neither myself or anyone I know ever works for you.

On the other hand, If you have a great sales force or even just one or two star individuals and want to keep them, avoid making these costly mistakes. It takes a significant amount of time and money to hire and train the right representative, so why put yourself through this process time and time again?

If you need to cut costs, try to look elsewhere in the business where you can implement cost cutting mesures or better yet, try to explore other means to increase your business. Thinking out of the box can be difficult but it can also be immensely rewarding.

In summary, it takes money to make money.  Same goes for people who you invest in as employees.  If your people are doing well, don’t cheat them but rather reward them accordingly. Investing in great employees is a solid investment in your business.

Happy sales my friends.

Cheers,

TSW

 

The Price Objection: What it Really Means and How to Overcome it

“Your price is too high!”

In my 10 years’ experience as a B2B sales professional, I can say with confidence that any client who initially objects to your price and uses that as an excuse not to purchase your product or service simply brushing you off.

After all, saying “Your product is too expensive” is much more polite than saying “I don’t want to buy your product. Get out of my office!”

So what do you do?

For starters, do NOT be sucker and immediately drop your price.

suckers

If you simply sell based on price alone, you are an order taker. Sorry to break it to you but there is no ‘salesmanship” in giving your best price and taking an order. Any customer service agent on minimum wage answering a phone can do just that!

The most important “sales training” I have ever had is working for a company selling higher priced products at a non-negotiable price point.  Rather than focusing on price, I’m forced to focus on the quality and service that my company can deliver.  To properly relay that information and translate that into a sale, requires work and that my friends, is salesmanship.

Clients have to realize that they can’t have everything and by everything I mean the best product at the best price that is delivered with the best service.  At best, most companies can offer 2 out of the 3.

projectTriangle

 

Let’s walk through the process through a general scenario.

EXAMPLE SCENARIO:

 You’re in front of a client for the first time, introducing your company and product portfolio. You’ve established what products your client uses from your competitor and you proceed to inform them that you offer the same or a similar product/service.  Prematurely, your client interrupts you and asks you your price.  When you give them your price, they tell you what you already know, “You’re price is too high.”

There it is.  You could interpret this in one of two ways:

  1. They are right. I’m not getting this sale.  I can’t beat the price, so I better move on. 

OR

2.   Game on! Now the real selling begins!

I hope none of you sided with option 1.  If you did, you either need more training or should consider changing careers.

So, game on!

Here is What You Should Do to Overcome the Price Objection:

1. Be Firm: Don’t negotiate your price. Others pay full price, so why should this client be an exception? If you have other clients in the area that this client would happen to be competing with who happen to be using your product of focus, make that known. If those direct competitors of your client aren’t using your product yet, make it known that you will be calling on them afterwards,  All the more reason that “you” don’t really need the business as much as they think you do and therefore have no need to budge on price.  Reverse psychology can go a long way.

2. Elaborate: Focus on other features and benefits that your company can provide (i.e. better service, higher quality).

3. Be Creative. If you are in your clients’ environment, look around for clues that might give them reasons to use a product from your portfolio that they may never thought of using before. Sometimes I’ve been in a clinic and see a list of things they are looking for. Simply pointing that out and mentioning that I can offer one of those items has gotten me the sale many times.  On the other hand, if you are meeting outside of their working environment be sure to ask them more questions about their business while in the back of your mind searching for products or services you can offer them.  Once this dialogue is open, you’d be surprised at how open most people are.

4. Ask For the Sale: As you scan through all of the potential products your client could purchase and they demonstrate interest, be sure to ask for the sale.

5. Be Persistent: This is where I have the most fun. Once you’ve gotten them to order one product, why not ask for more? Laugh and have fun with it.  Your client knows that you are there to sell them something so they expect it. If they haven’t ordered anything yet, keep asking! I have no shame in asking for the sale multiple times in a single call. I think my record was asking for a sale 10 times in one call.  After striking out 9 times, when I asked the 10th time, I finally got the “Ok, you got the sale!”.  I realize full well that he may have done that to get me out of his office (another brush off, yes I know!), but regardless I did get the sale, was welcomed back and continue to get more business.

Always keep in mind that if you can get at least one of your products or services in the door, that leaves that door open for you to come back and acquire more business, so don’t give up at the slightest objection.

Experiment: If you are used to selling on price alone, for one day or one week conduct all of your sales calls as if you are not allowed to budge on price.  I would love to hear your results!

Happy sales my friends!

Cheers,

TSW

When To Fire A Client

Whether you’re in sales or own your own business, making the decision to fire a client may be one of the most difficult decisions you will have to make in your career.  After all, you’ve worked so hard to get the business, so why throw it away?

Well, in some cases, you may actually be losing revenue by continuing to service certain clients.  Whether it is the actual time or the energy that you invest into an account, it all adds up.  Your time and effort are worth money. If you find yourself calculating how much time you’ve invested in an account and don’t see a proportional financial return on your investment in that client, it may time to cut them loose!

The best clients are those who bring in the most revenue with minimal effort and not vice versa.  Sure there are always circumstances where you initially have to invest a lot of time and effort to get a client on board , however you have to make the call as to whether or not it is worthwhile for you to continuing to focus on that client or move on to a potentially more lucrative opportunity.

So how do you decide when to put your foot down and decide when enough is enough?

You may opt to fire your client if they:

  1. Don’t Pay their Bills

Ever heard the notorious “The cheque is in the mail”? It’s almost laughable.  Once a client’s account gets seriously behind, you have to cut them off. If they really need your product or service, they will come up with the money.

Solution: The best thing to do in this scenario is to put their account on hold and try to arrange a payment schedule. If you have to call on them in person to collect, do it.   When their account is paid in full, begin to service them again but require that pay upfront or at the time of their order. In very rare circumstances, clients may completely avoid you and in that case you have no choice but to send them to collections.

  1. Ask or Expect You to Cross any Professional or Ethical Boundaries

This could take on a variety of shapes and forms. For example, any client who asks you to do something illegal, break your company policy, lie, cheat, steal, provide sexual favours or anything else unethical in exchange for a sale.

Solution: DON’T DO IT! WALK AWAY IMMEDIATELY! Then report their behavior to your direct supervisor and explain why you will no longer have anything to do with that account. If you are a business owner, simply inform them that you do not conduct business in that manner and they will have to do business elsewhere.  If you give into these requests it may seriously harm your business, your reputation and your company’s reputation.

  1. Complain Incessantly

Every one of you reading this has encountered this sort. No matter how perfect your product or service is, they will find something wrong with it and repeatedly so.  Sure everyone makes mistakes sometimes, but when there are no mistakes made and clients routinely fuss about every little thing time and time again, it may just not be worth the aggravation in dealing with these people.  They will never be happy.

Solution: If you’re totally fed up with them, you can try referring them to your competition however in my experience that doesn’t usually work.  In spite of how apparently disappointed they are with your product or service, they’d prefer to stick around and annoy you.  If that’s the case, just ignore their fussing. Don’t feed the monster.

  1. Use You

These type of clients will drain you of all of your knowledge and resources and push you to your limit because they know you want to make the sale.  It is difficult to identify these types of clients in the early stages because quite often a client will “test you” before they decide to do business with you.  This is perfectly normal and acceptable.  If someone is serious about engaging in a long term business relationship with you and your company, they should do their due diligence and see what you and your company are all about and what kind of service you can provide.  What is not acceptable is if this “testing” behavior persists over many sales calls and they don’t give you the business.

Solution: I call them on it and say outright “Every time I see you, I provide you with a wealth of product and industry knowledge but I know you still buy mostly from my competitor.”. They usually agree and then wonder why they do so. At that point I give them an ultimatum, “If you want the knowledge and you want me to keep coming back, you have to give me the business.  Otherwise, I’m never calling on you again because I will be focusing on other clients who will actually do business with me (who happen to be your competitors). Going forward you can ask my competitor to help you with your questions.” That usually solidifies the business 99% of the time. If it doesn’t, walk away.

  1. Take Advantage of Loopholes and Con You

Ever had a client buy a promo only to return part of it so that they can get a lower volume of product at the promo price and your company didn’t figure out how to deal with that loophole?  Or buy enough product to get free shipping only to return what they didn’t actually need but rather tacked on to their order so they don’t pay freight? Or try to get credit for the same item repeatedly? There are a million examples!

Solution: Since these types usually think they are quite clever, you have to call them on it and not allow them to get away with it again.  You’ll typically be greeted with a smirk and an “I’m better than you“ attitude.  Whatever it is they conned you out of, make sure you find a way to put it on their next invoice.  If they refuse to pay, refuse to offer them product or service. Some people you just have to play hardball with.

  1. Are in Bed With the Competition

Unbeknownst to you, you may end up meeting with a client who has very close ties with your competition.  By close ties I mean a business associate, investor, family member or perhaps someone who literally does share a bed with them, not simply someone who is loyal to a company.

Solution: Once you discover this STAY AWAY!  They will funnel all of your information directly to your competitor and give them an edge on you.  They won’t buy from you and if they do, it’s only to give your product to the competition.

  1. Waste Your Time

Sometimes it’s difficult to distinguish between someone who has a very extensive decision making process  and who is legitimately interested in purchasing compared to someone who has nothing better to do and just wants to play games with you. Some people will even fake a deadline for when they have to purchase when they don’t have any intention of purchasing period.

Solution: Give them a deadline to purchase.  Let them know that after that date, you will be moving on and changing your focus to another product, service or clientele.  This will usually force the client to be upfront about their true intentions.

  1. Disrespect You

You may encounter a client who never listens to you because they know better. They may think they are superior to you in every way and do not respect you or your time.  These types of clients are likely to be a no-show for your meetings, repeatedly.

Solution: If this type of client behaves this way consistently and does not give you any business, move on.  I usually give it 5 attempts then move on to other prospects.  Why so many? You have to give people the benefit of the doubt.  They may be legitimately busy or preoccupied and you might not be calling on them at the best of times.  I will usually try again after 1 year. Sometimes if you wait a while and call on a business at a later time, you might get lucky and they have a new decision maker who might be easier to work with or they may have had a bad experience with your competitor and are more open to change.

I am fortunate that in my business, 99.9% of my customers are awesome to deal with!  I sincerely hope that you don’t face any of these scenarios in your professional career but if you do, make sure to stand your ground because, the customer is NOT always right.

Happy sales my friends and don’t ever do anything you don’t feel comfortable with.

Cheers,

TSW

 

The Rumor Mill: How to Grind it to a Halt Before it Hurts Your Business

broken windmillWhether you are self-employed, in upper management or on the road as a sales rep, the last thing you probably want to hear is a rumor about your business, especially one that has the potential to negatively affect you and your company.

Most of the time, my clients will come to me directly when they first hear a rumor, be it good or bad.  Other times when for instance, I am on a sales call, if seemingly out of nowhere, my client starts to bombard me with questions about our industry and my company’s integrity, I know something serious may be going on.  If I have travelled from clinic to clinic to face the exact same questions over and over again, then I know for certain that I must investigate the matter further.  This typically happens when I’m trailing the route of a competing sales representative and for the most part, that is part of normal healthy competition.   However, sometimes that is not the case at all. It may very well be the beginning of a PR nightmare.

Rumors are a dime a dozen in my industry and I often feel that in any aspect in life, the more successful you are, the more prone you are to attack.

As some of you may be aware, I work for a small business. Although the bulk of my job is in a sales capacity, I am also responsible for all of the marketing, business development and public relations management for the company. This means that as soon as I catch wind of a potentially negative rumor that could affect my company and ultimately my sales, that I need to take that saleswoman hat off, and put my PR hat on.  I have to get down to the nitty gritty of it all and devise a plan to sort out all of the facts and relay the correct information to my clients ASAP before the rumor mill gets out of control.

I have to admit that public relations and “damage control” is the most challenging part of my job.  The reason being is that I take a lot of pride in my work and the company that I work for and I just can’t stand false accusations, especially when I have to take time away from selling to deal with them. I’ve been with my current employer for so long because of the ethical and upstanding way that the company does business and that is a huge reason for the company’s success.  Since its fruition, I have spent several years building and nurturing the business, so when false and threatening rumors start to mill about, I feel like I want to lash out like a Momma bear protecting her cub from a pack of wolves.

Angry-Bear-Grizzly

…But that wouldn’t be professional, so I digress.

In this article, I will discuss the different types of rumors, why they start and how to stop them from getting out of control and hurting your business.

Note: If you are a sales representative for a corporation and do not have decision making authority, I strongly recommend that you do NOT take matters into your own hands, but rather gather all of the facts you can and immediately report them to your sales manager. Only act under direction of your supervisor otherwise it may cost you your job.

INDIRECT RUMORS:

extraextraphoto

These rumors although not directly related your company, may have trickle-down effects that can affect your business. I have broken them down into two categories: Industry Related and Mistaken Identity

 

 

Industry Related

These rumors come about when a leading company within a specific industry has acted in a manner which has subsequently caused them or a particular product to receive negative publicity.  If such acts have caught the attention of national or even international media, this may instill fear in the consumer who does not use the company in question but does conduct business in the same industry. 

For example, several years ago one scientific study published results which claimed that people who supplemented with Vitamin E had higher mortality rates than those who did not.  Even though this study was very poorly done and was not conclusive, the media blew it out of proportion and broadcasted that “Vitamin E Kills”.  My father, who owns a nutrition store, saw a huge decrease in his Vitamin E sales as a result even though it had nothing to do with his business or a certain brand of product that he sold.

Unfortunately, in these cases the business owner or sales rep ends up on the defense, having to defend the legitimacy of the product or service they are selling.  In business, the best practice to overcome these random and potentially harmful rumors is to be proactive. Ensure that you are routinely keeping up with current events in your industry and regularly educating your clients so that they will trust and value your opinion rather than succumb to the latest gossip.

Mistaken Identity

These rumors most often involve a direct competitor and can be quite a nightmare to straighten out.  For instance, let’s say in a niche industry where you may have two main competitors who may even have very similar company names (i.e. ABC Corporation and ACME Corporation), if one of those companies were to be exposed for having done something illegal or unethical, the other companies may be “guilty by association”.  In these cases, clients may easily confuse which company is “the bad guy” sort-to-speak or just be reluctant to use any of those companies out of fear that they may all be conducting business in the same manner.

If this happens to your business, the best thing to do is to get in front of your customers either face-to-face or by means of intense advertising to remind them of your business and what sets you apart from your competition. Remind them of your excellent quality, service or whatever it may be. Keep your head up, keep it positive and act like you are unaffected.  Playing your cards right in this situation may end up increasing your sales, especially if you can take some of that business from your competition.

 

2. DIRECT RUMORS (Targeted)

Target

This is an unethical, malicious attack conducted by an individual or an organization intended to harm a business.  It is also illegal and violates many codes of professional practice.  Although these types of rumors are rare, they do happen. I have seen this behavior in sales representatives, business professionals, and even some companies who do this in a desperate attempt to “win” back their market share.  If you have ever considered doing this, don’t! The egg will wind up on your face.

I hate dealing with these cases because it is such an absolute waste of everybody’s time. If you fall victim to this childish behavior, just laugh it off and clarify the facts.  If you have a solid relationship with your clients, they will believe you.  If the accusation is a serious potential threat to your business, then you will need to devise a solid PR strategy and may need to obtain legal advice.

If you are faced with any of these types of rumors or perhaps one I haven’t mentioned, follow these general steps to stop the rumor mill before it gets out of control:

  1. Qualify the Rumor: Is it a legitimate threat to your business? If not, just laugh it off. If it could be, proceed to step 2
  2. Find The Facts: In speaking with the person who brought the rumor to your attention (and no one else), ask the 5W’S: WHO,WHAT, WHEN, WHERE and WHY. Document everything in detail. Do NOT provide your opinion or commentary prematurely as that could further harm your business.

Some examples of questions to ask could be:

WHO did they hear it from? Was it first hand? Or second hand? Make note of any names in case someone may be guilty of slander. Knowing how far off from the source your client heard the rumor could give you valuable insight into how far it has already spread and how much damage could have potentially been done.

WHAT exactly did they hear? Be as specific as possible. Was it something that was covered in the media recently? Was someone in particular saying bad things about you or your company?  Or is your client just worried about something in general?

WHERE did they hear this? Were they amongst other clients of yours?

WHEN did they hear it? If it was a long, long time ago, it likely isn’t relevant anymore. If it was recently, how recently? Rumors spread very quickly, so if you are the first person they talked to about it, you have a good chance at grinding that rumor mill to a halt before it gets going.

WHY did someone say the things they did? Did the person sharing these rumors with your client share them out of concern or ill intent?

  1. Decide on the Most Appropriate Medium(s) to Present the Facts:  This will depend on your specific type of business.  Will you create a press release? Or target specific clients? Will you discuss it face-to-face? Or simply via a letter or email?
  1. Bombard Your Clients with The Facts: You can use one type of media or several. Regardless, make sure that your clients are crystal clear about the situation at hand.
  1. Consult a Lawyer if Necessary. If you are dealing with an individual or corporation who may be slandering you or your company, you should obtain legal advice.

I hope that none of you have to deal with these types of scenarios in business, but if you do, I hope you keep this article as a handy reference and find these tips helpful in grinding that rumor mill to a halt!

Happy sales my friends and remember to keep your head up and be professional!

Cheers,

 

TSW