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The following are 10 power statements that can be utilized in sales meetings and sales management training.  The concept behind these 10 ideas was originated by Michael “Mickey” Madden of U.S. Home Systems.

These ideas are being published in memory of William “Bill” Sherwood who passed away in early December 2011.  Bill exemplified these disciplines and made them a part of his everyday business life. He has impacted hundreds of  sales trainees by being an example of what he taught.

1. Accepting total responsibility for the results: Success is in your hands.
2. A commitment to excellence: Be available; follow the methodology and the milestones on each and every sales call.
3. An expectant attitude: Expect to make a sale every day.
4. Establishing goals: In accordance with effective goal setting techniques.
5. A specific plan of action: A goal without a plan is like a destination without a map.
6. A commitment to self: The successful sales representative is eager to work all resources and disciplined to develop their knowledge, understanding of buyers habits and skill of delivery.
7. Insulation from the common sales cold “ Negativism”: A negative attitude is the most fatal illness of a sales person
8. Flexibility in thinking: Acceptance of new ideas.
9. Maximize creativity: Doing what it takes everyday to maximize earnings.
10. Belief: Belief in yourself, your family, your products and your effort. If you don’t no-one else ever will.

It’s never too late to effectuate change in your personal or business life – start today.

We will now continue answering questions from our latest home improvement webinar. If you haven’t done so already, make sure to read our last blog posting where we address more of the questions that were asked during the program.

Q: You mentioned “lead control”.  How does that relate to giving salespeople the freedom to handle the lead in the best way because they are experienced to do so?

A: A reminder – if a lead is any inquiry coming into your business, it then has to be structured into an “appointment” (which usually requires scripting).  A properly scripted “lead to appointment” has created information beneficial to the salesperson and anticipation on the part of the prospect.

Now let’s assume the lead is issued to the salesperson.  Most efficient sales organizations have policies where salespeople are required to turn in their leads immediately after the presentation. Unsold leads were rehashed along with “no-sits”, often producing an increase of 12-14% of the volume extracted from the same leads.

Incidentally, in well managed sales organizations, once the lead is given to the salesperson as an appointment, the salesperson is not permitted to call and requalify the lead. If that process is elected, you will immediately determine a lower sit (presentation) rate.  Some leads are easier to work than others, yet a good prospect, inefficiently handled is often categorized by the salesperson as a weak or poor lead. That constitutes a break down in the marketing to sales program and will usually lead to higher marketing costs.  Leads retain dominant value for about 48 hours. While they are not dead after that, they lose the strength of the impulse which created the contact.  When you receive a lead, act on it ASAP.  Confirm that you are interested in it and don’t set conditions about whether it is worthy of a sales call.  The chances are that you and your salespeople may need training on how to handle leads of this nature.  Most of our clients confirm leads (irrespective of the source) within minutes.  They have computers set to verify their interest in the prospect immediately.  Any delay diminishes the prospect’s value in your eyes and it diminishes your value in theirs.

Q: How do the most successful companies handle lead intake and lead distribution to their salespeople?

A: Many confirm their leads within 5 minutes of their receipt (via email).  Lead intake, confirmation and rehash personnel are rescripted and highly supervised.  Salespeople are required to return a confirming sheet from all prospect contacts, enabling telephone follow-up in conformity with the “Do Not Call” laws.  Sales managers frequent “ride-alongs” to observe and enforce methodology.  In a recent survey, we were able to measure the success of the companies who had diversified lead development and strong controls in place.  In most cases these controls produced an increase in sales.  Many saw their 2009 sales exceeding those of 2008.  Many also require a quota of self-generated leads by their salespeople to achieve monthly bonuses.

Q: We were inundated with questions regarding less qualified leads.  Some requesting “information only”, others coming from 3^rd party sources which had incurred delay on reception.  While these leads require laborious techniques, they often bear fruit.

A: We call these “nebulous leads”.  Nebulous meaning not clearly defined.  These leads are frequently developed through “3^rd party” sources who run elaborate promotions or lead development campaigns.  When companies receive these leads and try to bring them to a point where a product and a price proposal can be presented, they experience a great level of frustration largely because their organization at all levels (1) call intake, (2) lead setting, (3) lead issuance is not on the same page and what follows is chaotic lead “mismanagement”.

Here is some thought on how to identify this kind of lead which was acquired by the means explained above.  Individuals that we classify as “nebulous” are usually prospects who haven’t committed themselves – yet would be open to listen and look.  The lead, once received, requires finessing beyond that of the prospect who says “give us a price” or “an estimate”.  Nonetheless, this prospect is identifying themselves as a potential customer.

Add them to your database and continue to follow up with them on a semi-regular basis. However, here is the caution, follow up too often and you may risk them opting out of your marketing, but if you don’t follow up enough they may forget about you entirely. As such, you need to continually strive to achieve the perfect mix.

Q: We hear the word “prospect” “lead” and “inquiry” used interchangeably at many seminars.  Are these all the same?

A: No, and here’s why.  A prospect is someone who can use your product or service. If you have found a way to get someone to respond to your marketing devices thereby acknowledging their need, you have a prospect which you can identify for lead purposes. If they do not respond to your marketing devices or that of others they are nonetheless a prospect and will remain so until someone gets them to acknowledge their need and sells them.

Q: Doesn’t this kind of lead represent a real challenge for salespeople who have never had to use them before?

A: A prospect requesting an estimate, responding to direct mail or registering at your booth at a show may openly declare “need.”  However, often the need may be deeply hidden in a prospect’s response for information, such as “send me some information”.  To add complexity, the prospect may say “we’re not going to buy now.”  This is complicated by the perception that the prospect hasn’t stated their need and the lead gets labeled as weak or poor.

The more sophisticated companies don’t try to force the “information only” lead upon the salesperson who had no respect for this kind of lead or doesn’t understand it.  It still requires marketing skills to turn that into an issued appointment.  One of our clients in a Midwestern city makes the following comment regarding this kind of lead after he developed a marketing technique with a series of “follow ups” which ultimately produced an issued lead (appointment).

“Most companies – don’t – or – won’t follow-up on an “information only” lead – we do.  Over a period of 6 years we sold $1,900,000 business with leads such as these.”

Q: What techniques work the best with unsold or unissued leads?

A: In our experience, a system that uses scripting, which in turn encourages a prospect who, in the past, hasn’t seen the demonstration, to view it now. This process is called rehash.

Take an example of a prospect who received a presentation that wasn’t sold, but later agrees to have someone come to their home and review the original presentation and price proposal (in well-run companies this also includes sales which were cancelled or were credit rejected).  Rehash requires a “refined” technique that starts with a scripted phone call that contains no risk or threat to the prospect – in fact, implies a “benefit”. This task is never allocated to the original salesperson.  It is, for the most part, a call center issue made by a marketer, not a salesperson.  The rehash lead is seldom, if ever, issued to the original salesperson (for obvious reasons). He/she didn’t’ sell it the first time and the no-sale or cancellation may have been created by a malfunction in the presentation.

All leads which do not turn into issued appointments or remain unsold, or those cancelled or credit rejected should be accumulated into a database.  We call the use of this database to manufacture sales asset recovery. The company has an investment in these leads and any sale made from the database has very few costs related to “reissuance”.  Most successful companies acquire 20% or more of their revenue annually from their database and their customer solicited referrals.

If we did not get to your question, please email us directly at admin@daveyoho.com and someone will get back to you shortly – - and don’t forget, part two of this home improvement webinar series will be held on Decmeber 13th.

Last week’s home improvement webinar on lead generation was a rousing success. There were over 950 companies on the program and we received numerous questions. As is frequently the case, we did not have enough time to answer them all on the webinar so we took the opportunity to respond on our blog (the first series of questions and answers are covered in our latest e-newsletter – to receive a copy e-mail admin@daveyoho.com).

Here is a sampling of the questions we received:

Q: You give the impression that many home improvement companies have tried canvassing, yet few have been successful at making it work “long term” within a practical budget.

A: As we pointed out in the webinar, it is not uncommon for companies with a canvassing program to issue as little as 30% of their canvass leads as appointments. In addition to that, they may only gain entry into 40-50% of these homes for a presentation.  They experience a closing ratio lower than they do for other leads (some of this is attributed to the salesperson’s dislike of that lead). Then top this off with marketing costs that sometimes exceed 20% (some even much higher).  Not a practical way to do business.

Q: Has your company made a study of effective canvassing programs?

A: You bet, and here are some of the basics:

Unless companies subscribe to a plan that includes territory and time selections (by management) for canvassing in middle income neighborhoods, they’re off to a poor start.

It is human nature to try to find the path of least resistance. Better neighborhoods with higher income families frequently represent better education and more well-informed prospects and in turn represent more complications in developing a lead.

But there’s more to it than that.  Actually, there are about 51 components for an effective program. The script language is extremely important.  Intelligent people with money to buy the products you offer have to receive information which they see as beneficial.  Many canvassing groups use a mini-presentation book at the door.  One company we studied has canvassers earning $40-60,000 annually with a fully loaded marketing budget of approximately 9.6%.

Q: What kind of results can be effective with a well-managed canvassing program?

A: The better managed companies have a 50-60% issue rate, a 60-80% sit rate and marketing costs below 15% (fully loaded).

Here is an actual case study of a very efficient program:  Canvassers working (average) 4 to 5 hours daily produce ½ lead per hour set with the homeowners by the canvasser (via cell phone) with their office. This translates into a 60% (minimum) presentation (sit) rate and a minimum of 1 presentation (sit) produced in less than 8 hours of the canvasser’s effort.

One of the keys in this last case study is the “canvass manager” who makes everyone (including himself) adhere to the “model” of the program.

Is it easy? No. Is it successful? Yes. Is it cost prohibitive? This particular company operates with overall marketing costs at 13% and their canvass program (fully loaded) is slightly over 12%.

Q: We are considering hiring a company to do our canvassing.  What are some of the cautions?

A: We received the same question from 12 companies who participated in the home improvement webinar.  If you tried canvassing on your own and couldn’t make it work, or it was too costly, you may succumb to someone who encourages you to let them do the canvassing and provide you with the leads.  There are several smaller companies who provide this service – however – be cautious of “canvassing companies” who want to sell you leads. Several larger companies who provide this service do not appear to have “long term” success stories.

Q: Our salespeople don’t like the canvass leads, so we haven’t been successful with closing many.  Apparently our canvass program “stinks”.

A: Your question probably contains the answer.  You hired salespeople, promised them bona fide leads and they expect to get them. However, if you are allowing your salespeople to determine the source of leads you will never get a canvassing program to work, and since this is but one form of face-to-face lead solicitation (which also includes “shows” and “events” and “SFI programs”) the failure is not in the lead, but in the method of adapting a salesperson on how a face-to-face lead has to be handled to obtain results. Unfortunately this is a management failure.

Management frequently “succumbs” to the complaint of the salespeople that these are “weak leads”.  When the sales department convinces management this is the case, the marketing department is told to get a stronger lead. Ergo: the number of leads decrease and management is unhappy because they don’t have enough leads for the salespeople.  Weak canvassing methods include “looking for”.  Successful canvassing programs treat the canvassing department as part of the sales methodology. At the risk of being repetitious, modern techniques require that the canvasser be hired with a behavioral profile indicating sales “traits” and the ability to follow special scripting devices which often includes a mini presentation book. The appointments were set via cell phone from the canvasser and the prospect to the call center.

Again, at the risk of being repetitious, The successful companies measure not only the number of leads which are produced by hourly effort, they measure the hours it takes to produce a sales presentation from the leads acquired with a marketing budget of 12% to 15%.  In short, the entire process is treated as a science – not – an art form.

Q: We received numerous questions on “diversified lead sources”.

A: Today’s marketing techniques, whether for a small company trying to stay alive or a large company attempting to expand, have to include diversification. Smaller companies may have 10 or 12 sources for lead development; larger companies 30 to 50 sources.  Companies who choose not to diversify their home improvement marketing typically tell us:

• The majority of their leads are referred to them through a satisfied customer.
• We are a recognized name in our territory, so we don’t do much advertising.
• We invested heavily in print ads – yellow pages – web design – or similar and couldn’t make it profitable.

Here is what you have to remember.  In every market and for every product or service sold in that market, there are a certain number of prospects who develop a “need” for most of the products sold.  The trick is how to identify and find these prospects then sell them without resorting to being the “lowest price” in town.

The next “trick” is to find ways to identify and attract prospects who haven’t yet met the explicit need level, but could be convinced to “take a look”.  That requires a good marketing technique which then has to be balanced with a strong sales technique.

This is not being critical of those who get “referred” as a good contract or source, because referral leads are great; most salespeople love them. The reason they don’t get more of them is usually determined by their lack of “asking for them”. If you can develop enough business without advertising or spending promotional dollars, I applaud you. However, keep in mind that past customers should be solicited for referrals with a plan that meets the requirements of your local state laws.

We will answer more questions on our next blog posting so make sure to subscribe so you can receive updates as they happen!

They responded to your marketing message.  They became prospects, customers (hopefully satisfied) and they can be the source for quality inexpensive leads. The term proximo marketing is used to define any type of marketing around completed jobs or jobs under construction

For siding, roofing, gutters, windows, cabinet facing as well as other products we recommend a marketing method called “hang em.”  This is a door hanger which briefly describes the product(s) being installed on a neighbor’s house.  It requests phone, email or fax responses.  In this format you extend the range to a larger number of neighbors, perhaps an entire development.  “Hang em” is phase one, which can be followed by direct mail, direct solicitation or both.

The next step (beyond direct mail) would be personal contact.  Here the salesperson (or canvasser) makes a house call to get a specific appointment.  If your salespeople seem loath to take on this task, hire canvassers to do the job instead.

Don’t give up after the first pass through this neighborhood.  Thirty days later repeat the process with another “hang em” and a direct mail postcard a few days later.

David Alan Yoho makes the following recommendation to all of our clients: Mail the radiation letter upon approved status using the customer’s name and address (with approval). Mail a postcard the week before the installation. Knock during the job and hang ‘em then – in conjunction with obtaining referrals, etc by visiting the customer.

The wise home improvement marketer takes advantage of the completed job and utilizes it as a center for proximo marketing. Working around the job isn’t complicated.  Mostly it just isn’t done wisely.  If your product is a sunroom, kitchen, deck, bath or similar, these lend easily to an open house format.  The agreement to do so is structured during the sales presentation and invitations are sent out to neighbors over your new customer’s signature. The RSVP invitation can extend to ten neighbors on either side of the completed job and to twenty on the other side of the street plus those in the general neighborhood who are friendly with your customer.

A continental breakfast, lunch, brunch, or snack paid for by your company and hosted by one of your staff becomes an inexpensive “lead potential” and contact.  Each attendee signs a guest book page giving name, address, telephone and email address, as well as permission to re-contact by phone for product changes, special offers, etc. Remember, you will need the latter to meet the qualifications of the “Do Not Call List” (check your state for specific qualifications).  A power point presentation with before and after pictures and a lead form can make these neighbors ideal prospects.

During the “open house” provide an inexpensive gift (i.e., gift card from gas stations, supermarket, or fast food restaurant) as a thank you for their attendance.  The presentation on your company and product should be limited to general information.  You are not selling the job. That remains an aftermath responsibility of the salesperson that will get the lead.

In the case of those who attended your open house, and you have their phone number and email address together with permission to call, you are now in a position to glean additional prospects as an aftermath of the installed job.  If your sales presentation to all prospects and a follow up includes solicitation for referrals you will find that proximo marketing pays off with low cost leads.

Let me preface this post by saying that this is not an assault on those within the home improvement industry who use a price drop as an incentive to close a deal.  The issue is the “big drop”.

Historically this practice dates back to the late 40’s and early 50’s when in an effort to sell roofing, siding and storm windows, sellers would offer a discount, maybe 10% of the quoted retail price to get the order.  In those days the average roof sold for $350 to $500 and siding ranged from $1200 to $2000. Accordingly, the discounts used were believable and represented a reasonable incentive. A siding job quoted at $1600 representing a $160 (10%) discount was equal to more than an individual was paid for a week.

By today’s standards, the $35,000 sunroom or basement, the $15,000 siding job or $10,000 window replacement (where there are multiple discounts ranging from $3,000 to $8,000 and more) start to resemble the way automobiles are sold – - with little or no credibility to the quoted price. If you are a proponent of this selling style, you need only review the manner in which you get rescission. The majority of respondents cite price as the reason.  If the customer believes your net price is too high, they certainly didn’t believe the list price was reliable.  Consider the number of people you don’t close because the abundant discounts don’t seem credible.

When the list price is validated and the customer sees value in the product versus the price, the incentive offered has reliability.  Often salespeople rely on that “big drop” to get the sale, because value was not sold. If you offer a bonus or discount as an incentive in your advertising, this price reduction is dealt with soon after you quote the list price.  The net sales price is then validated by your prospect.  Then the “buy tonight discount”, which can be anywhere from 3% to 5%, will make sense.

This is a call for home improvement companies to review the manner in which their in home presentations are made and how the value of their product is being established.  Once this happens, “big drop” is replaced with an initial presentation incentive, which will increase your closes and diminish your rescissions.

Thanks to everyone who made our fall summit in Chicago possible – from all 150+ attendees to all of our sponsors.

While it is always challenging to hold our programs in facilities such as the McCormick Place, the feedback we got was tremendous and it encourages us to revisit such sites in the future.

This was our final live seminar of 2011, but we are already underway planning our schedule for next year – - so if you have any suggestions please e-mail admin@daveyoho.com or respond to this blog entry. Also, we will be holding our next complimentary webinar on the 15th of November so keep your eyes peeled for more information.

Finally, we have included a picture from the end of the program on day two. See if you can spot who doesn’t belong!

This is a critical time for the home improvement industry as recent laws are making it more and more complex to do business as many retailers have done in the past.

With that in mind here are eight critical issues that the industry is facing:

The inherent risk in using “share of profit” compensation for salespeople.

Despite it having been “industry practice” for many years, government agencies continue to crack down on retailers and levy exorbitant fines in an attempt to curb these practices.

The co-mingling of 1099 and W-2 employees in your installation department.

Frequently, this will lead to an IRS audit or citation for misclassification.

The use of a “price drop” for a one night close if followed by a rehash using the same product at the same or lower price.

Consumer protection legislation that has been enacted over the past few years leaves this issue open to interpretation and has proven to have disastrous results for many home improvement retailers.

Improper (or lack of) compliance with EPA regulations/requirements concerning lead paint.

If you perform work on houses built in 1978 or prior are you providing correct documentation (whether the job is sold or not)?

Providing the proper notice of rescission as required by federal and frequently state law.

There is a required format and number of copies of the notice of rescission required for each sale made at other than the seller’s place of business.  Many retailers leave an incorrect number and are in violation.

Operating with a retail contract that doesn’t provide sufficient protection.

Collection practices may be difficult. Clear definition regarding limits of liability should include arbitration in the event of disagreements.

Failing to protect your intellectual property and proprietary information.

Your logo, brand, motto, customer/employee list and presentation material can be at risk without proper protection.

The use of a “non-compete” provision for salespeople.

May be a mistake if you don’t have one  – - and in some states a worse mistake if you do.

To hear us expound upon these issues, make sure to join us in Chicago at the 2-Day Home Improvement Profitability Summit where you will hear expert analysis from our legal counsel D.S. Berenson while also being exposed to the top trainers in the home improvement industry.

Last week’s home improvement webinar entitled “Open Your Mind to Close More Sales” generated an excellent response from our customers as well as industry leaders.

Once again we would like to thank all of the attendees as well as all of our sponsors of the program.

The 90 minute webinar was filled with tons of Q&A; yet despite that we were not able to answer all of the questions that were posed.

As has been our habit in the past, we are now posting a sampling of questions that were asked prior to and during the webinar.

Q: In today’s market, people seem to be more price conscious and our area is loaded with “price cutters”.  How do we justify our price for a quality product?

A: You can’t justify your price — stop trying.  With the right presentation, you establish “value”.  You have to demonstrate and have your customer agree that the product you sell is high quality, long-lasting, installed by experts and meets their needs better than other products in your market.  In our series “The Science of Successful In-Home Selling” we explain a method entitled The Total Offer Concept™ which goes into great detail on this topic.

Q: We are often met at the door (sometimes over the phone) with the statement — “We just want a price, not a long visit.”

A: Respond quickly by saying — “No problem.  Let’s take a look at your project and determine your needs.” During the review of the project, ask questions, write down the responses and sell yourself.  Present yourself as a professional.  It is your job to uncover needs.  Then present your product to meet those needs.  Explain the options, the various protections they need, such as a written proposal, a reliable guarantee, a product installed by specialists.  Most prospects will listen if you are talking about them — their needs — their problems — and how you can help solve them and why this home improvement project isn’t an expense — it is an investment.  You will extend your time with those prospects.

Q: Can I use a one-call close without high pressure?

A: It all depends on what you consider high pressure.  Explaining in detail what your product and service represents — isn’t — establishing the value of the product/service you are providing — isn’t —and — asking for the order, if done properly — isn’t.  Our closing system is utilized by the most successful companies in your business. I recommend that you listen to the free recording “The 7 Myths of In-Home Selling” — where this question is answered in detail.

Q: What is a decent closing rate?

A: Some companies still measure their close rate against presentations, which fails to account for the number of leads issued and this is a mistake.  So we measure closing efficiency against leads issued.  Yes, there will be some no-shows or some 1-leggers that you do not wish to present to, but if these are not exorbitant in number, it’s all part of the process.  So if you’re still measuring by the old fashioned rate – closes vs. presentations – 1 out of 3 or 4 is decent provided there is a 70% sit rate on leads issued.  Small ticket items ($4,000 or less) should close at 50-70% with a 70% sit rate.  Caution – don’t be too quick to blame the low sit rate on your marketing department.  Frequently it is the inept processing when the salesperson is at the door of the prospect.

Q: So what’s the difference if you’re measuring against leads issued?

A: First of all, our latest industry survey shows that the average cost of a lead issued is $285.  If a salesperson receives 7 leads per week, that equals $1995 – close to $8,000 a month and that’s $96,000 a year.   You will want to measure the efficiency rate of anything in which you have invested $100,000, I’m sure. Depending on the lead source, conventional leads (radio, television, print, direct mail) should look for a 70% “sit rate”.  That’s a presentation being made to all interested parties where you have sufficient time to do a needs assessment (walk around), company and product presentation, present the price and attempt to close.  If you sell 1 out of 3 of these presentations, that’s a 23% close rate against “sits” and roughly 33% against leads issued.  These would be effective goals.

Q: How do statistics differ with canvass leads?

A: A whole different ball game.  Our surveys indicate that canvass leads as well as those produced from other face-to-face sources, such as shows, malls and even S.F.I., don’t do nearly as well (greatly due to the attitude pervasive in salespeople who don’t like canvass leads ) – partially due to mismanagement by marketing (poor scripts and poor lead issuance management).

Our surveys indicate that 90% of all canvass programs are failures (too costly – poor sales vs. leads issued).  The person-to-person leads, when processed, have reached a 40% issue rate or less.  Remember, if you took in 100 leads that means you issued 40.  Then the sit rate as defined in the previous question is usually 50% against leads issued.  That means you’re now down to 20 leads from the 100 acquired.  The gross close rate averages 3 to 4 sales.  When you eliminate credit rejects and rescissions, you’re down to about 2 sales.  So fully loaded costs are usually more than 20% of the total revenue produced.

However, don’t sell the concept short.  Canvassing works if it’s structured properly, then managed properly including personnel selection and rigid script enforcement from the lead intake by the canvasser through the appointment setter or confirmer – - and, of course, add the “attitude factor” of the salesperson.

Q: What are your suggestions in terms of scripting for canvassers?

A: 2 factors need to be considered – -

1. You’ve got to have the right script
2. You have to rigidly enforce its use.

A well-scripted canvasser is not a canvasser. Modern canvassing requires the selection of the proper personnel.  Those selected should be profiled and have a behavior which is adaptable to a selling function.  The good canvasser is an extension of your sales department and will frequently grow into becoming a closer.

In addition, all scripting is subject to the discipline of the canvasser and management.  Scripts are what they imply, i.e. what to say and how to respond to questions.  With some success the canvasser starts to embellish these with war stories, personal philosophies and small talk that reduce effectiveness.  Successful canvassing programs have somewhere in excess of 50 components if done correctly.

Q: What are the statistics on rescission?

A: Here’s a rule of thumb – - if you’re getting no rescission at all, you’re probably selling “call back” business or you’re not attempting to close at all. On the other hand, if you’re getting too much rescission be aware that “rescission is a malfunction of the selling process” – so you’re doing something wrong.

Here are some statistics, if the size of your contract is $4-5,000 or less, your rescission should not exceed 5%.  If your average contract is $8-12,000, rescission should not exceed 10%.  If your contract exceeds $25-30,000, your rescission rate might be between 20-30%.  Remember, I said that rescission is a malfunction in the selling process.  In a well structured organization, 25-30% of the rescissions can be recovered and are then reinstated as valid contracts.

Should you have any follow up questions regarding this blog posting, or if your question was not addressed please comment or e-mail us at admin@daveyoho.com.

There is no such thing as a cold, rational, dispassionate buyer who buys solely on merit. Most decisions are influenced by emotion and similar feelings.

I once asked a purchasing agent who had placed an order with a manufacturer for products which he might have been able to purchase for less, “Why do you do business with this particular company?” His response was lengthy and contained specific references to the following emotions:

• He trusted and liked the salesperson.
• He felt the company was reliable.
• In a previous dealing with them, he developed confidence in them.
• The company seemed to care when a customer developed a problem.

In further questioning, he commented on the size of their manufacturing facilities and their quality control and customer service departments. Later I asked him if he had ever personally seen the plant or any of the departments he mentioned. He admitted he had never seen them, yet he was convinced of their existence and superiority.

Herein lies a portion of our proof on the importance of emotion in selling. If all aspects of his belief are true, he was nonetheless basing his decision on information supplied to him by the salesperson. The credibility, as well as other factors of the company’s substance, are validated by buyers largely based on their feelings toward the salesperson.

Frequently it is the energy, enthusiasm and creativity with which the product is presented that accelerates the prospect’s interest. Thus a great product or service which is poorly presented during a sales presentation may not get sold, while one of lesser quality which is presented well is purchased.

This is not an argument for emotional pitches in place of quality, service, and reliability. Rather, it is an appeal for more creative sales presentations.

Many years ago, we started teaching the practice of left versus right brain appeal in selling. Let’s review some of the ways the experts claim the two hemispheres of the brain function in terms of oral and written language.

Left Brain: Logic, practicality, statistical data, analytical thinking, technical problem-solving, proposal evaluation, arithmetic projections, procrastination, structured resistance, laconia, and pessimism.

Right Brain: Enthusiasm, creativity, visualization, humor, emotional response, impulse actions, upbeat feelings, analogies, allegories, rhythm, and optimism.

It is important to develop a sales presentation which is properly balanced between right and left brain appeal. The variations in balance are based on the product, the market, and the general buying style of the prospects. Let’s look at some examples:

First, consider products such as electronic devices which are frequently sold to engineers. In developing a presentation in this case, we would suggest an over-balance towards left brain thinking: problem-solving, statistical data, and logic. These have specific appeal to the buying patterns of this type of prospect, the engineer.

We would also include appeals to the right brain thinking with visualization and enthusiasm. This would encourage the prospect to visualize the product in successful application, reducing or eliminating problems, contributing to a quality image, etc. This enthusiasm encourages upbeat feelings in the prospect and a sense of well-being about the relationship between vendor and customer.

In another example, real estate sold to home buyers, we would suggest a presentation that is overbalanced toward right brain thinking: visualization, creativity, emotional response, and impulse actions.

A sound presentation of a home which meets the prospect’s needs has the prospect mentally moving in, placing furniture, and viewing the family in the setting. It encourages the prospect’s creativity toward changes in the decorations, furnishings, and landscaping. It prompts emotional responses whenever highlights of the home are presented.

Left brain thinking might be projected in the sales presentation toward practicality and statistical data. The practical aspects of the home could be brought out, like touting the needs of proximity to schools, churches, businesses, airports or shopping centers. Statistical data might relate to the turnover rate of houses in the area, equity increases, energy conservation features, potential return on investment, and tax savings.

If you examine again the appeals to each side of the brain, you might conclude that most decisions are weighed in the left brain and made in the right brain. Irrespective of the product or service, when the appeal is strictly to the left brain, the decisions are delayed, concepts are over-intellectualized, price becomes more of an issue, and the potential for conflict increases. Fortunately, it is possible to direct what is normally left brain data to the right hemisphere by using visuals and making the presentation in enthusiastic, positive, optimistic, and upbeat language.

In preparing and delivering your sales presentation, appeal to both brain hemispheres, but favor the right brain for those emotional appeals that close sales.

The advent of e-mail marketing has led many businesses to lessen their use of more traditional approaches such as direct mail and telephone, and the reasoning behind this is simple: E-mail marketing is less expensive, and it capitalizes upon the technology that more and more customers are comfortable making purchasing decisions from nowadays.

However, many companies take it a step too far, in that they abandon the use of direct mail and telephone altogether, when in fact this will do more harm than good.

The most effective method of communication is a multi-channel approach whereby a mix of these methods is employed to reach as many of your customers/prospects as possible.

Keep in mind that a portion of your database will not use e-mail to consider what you are offering. The same is true with direct mail and phone solicitation. To effectively reach every potential buyer you need to employ the use of every potential channel.

For the purposes of this posting I am only going to discuss phone, e-mail and direct mail although there are numerous other strategies you should be using as well.

The question you need to ask yourself as a business is: what is the ideal mix of multi-channel marketing?

While there is no definitive answer, a recent marketing study put out by the University of California sheds some light onto how you should develop your marketing mix.

According to the study, customer spending hit its peak when phone and direct mail contacts were combined 6 times each (this does not include e-mail). The thinking is that direct mail and phone strategies are complementary in terms of their impact on customer behavior.

In regards to e-mail:

• Per every phone contact, the ideal number of e-mails is 5 to 6
• If you bump this number up to 3-5 calls, the ideal number of e-mails drops to 2 to 3
• Per every direct mail contact, the ideal number of e-mails is 5
• If you bump this number up to 5, the ideal number of e-mails drops all the way down to 1

It is also vital when developing your marketing mix that you focus on not being too intrusive. Your customers and prospects value their time and if you interrupt them too much they will begin to see you as a nuisance.

The same marketing study listed the ideal number of single channel contacts over a 3 month period of time:

• 3 via telephone
• 3-4 via e-mail
• 9-10 via direct mail

In a time where everyone wants to abandon direct mail, many customers view it as the least intrusive of all these methods, and as such you should continue to incorporate it into your marketing mix.

At least as long as it’s not horribly ineffective.