PEOPLE BUY WHAT THEY WANT, NOT WHAT THEY NEED!

A notably successful ad from the past shows a hung over man who takes an ‘Alka-Seltzer’ and walks away looking refreshed and invigorated. For salespeople the question should be what did the man buy. An ALKA-Seltzer many will reply. Those with a little better understanding may realize he bought the product of the product, relief from discomfort. This product of the product or PRINCIPLE BUYING MOTIVE is often referred to as the buying NEED. There is however a more powerful buying motive, even deeper than the need, that is the all-important... SECRET BUYING MOTIVE. This ‘secret’ is what the customer REALLY wants. The man in the ALKA-Seltzer needed relief but wanted to be able to feel good and get on with what he wanted to do or achieve.

Many will still argue that people only buy what they need… a question, how many TV’s do you have in your house… or how many pairs of shoes do you own? If shoes were invented for foot protection and we can only wear one pair at a time why do we all have so many pairs? Because we WANT... cool feet, fashionable feet, sporty feet, smart feet, corporate feet, golfing feet, formal feet, outfit coordinated feet, or in other words we are really buying social acceptance. In the case of TV’s, we may need to occupy the children or get away from the ‘what we watch argument’ with our spouse and still many will still say… I need a second TV, however, what they really want is the ability to take control of what they watch.

When salespeople understand that customer’s inner wants are far more powerful motivators than their perceived needs its…

“YES SIR, PRESS HARD, THE THIRD COPY”S YOURS”

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MORE NEGOTIATION TIPS – The Bare Minimum

If all of the previous tips are too hard at least:

Separate the people from the problem – stick to specifics and discuss only the facts of the situation, (personal attacks and attacking others beliefs and values will build a no win divide – it is almost impossible to change peoples beliefs).

Look at interests (REAL NEEDS), don’t argue over positions – e.g. don’t dwell on number of ‘nuclear inspectors’ as in the case some years ago that led to the failure between the US and USSR during their initial nuclear arms limitations negotiations, when each side’s real need was mutual transparency.

Create options for mutual gain – get all participants involved in an exercise to discover mutual needs and a range of possible solutions, (builds on the idea that you are allies or even a team trying to solve a mutual problem).

Get parties to use objective criteria to judge the validity of positions – keep away from opinions & perceptions, don’t allow distorted ideas about what is going on the cloud the reality, (find out real facts, precedents, industry norms, competitors conditions, factual business conditions, best practices).

STICKING TO OUR PRINCIPLES IS MINDLESS, SELF CENTERED AND A REFUGE FOR THE INEPT.

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MORE NEGOTIATION TIPS

Things that will help us mess up a negotiation

A negative attitude, assuming a winner & loser outcome, communication difficulties, becoming emotional, fear of assertiveness, a self-righteous attitude, lack of knowledge of the negotiation process, seeing the others as adversaries, lack of knowledge of tactics, fearing we will lose, lack of confidence, lack of patience, fear of confrontation and of course the big one… lack of persistence.

Things that will help us NOT mess up a negotiation

Developing a win-win strategy and attitude, learning to listen (not just hear), practicing emotional control, taking an objective rather than subjective approach, developing patience and appropriate timing, not fighting with our ‘opponent’, deciding what we can afford to lose, knowing what our alternatives are if minimums aren’t met (lifeboat), trying to build a relationship before we start to negotiate, (it is hard to be committed to a win-win if opponent is a total stranger), finding out common interests or goals so we feel comfortable in looking for a win-win.

CHURCHILL ON SUCCESS… ‘NEVER, NEVER, NEVER GIVE UP’

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EXCELLENT SERVICE IS A PHILOSOPHY, NOT A TECHNIQUE!

Does our company/department/staff take customer requirements very seriously? If we are to be truly customer focussed… no one is just doing a job, we are all satisfying customers. How long has it been since we have executed (metaphorically speaking) anyone for saying “its not my job”. Is our organization free of demarcation disputes? Do we have a total quality attitude to our work or is everybody working to rule.

Do we look at what we do from the customer’s point of view? How long has it been since we surveyed our customers; got feedback on how we are doing. (“Face-to-face” is best.) How much effort is really taken to make our customers feel important and respected? Try this… put a dollar coin in a jar every time you hear a phone sound for more than three rings and if the jar is too heavy to lift at the end of two months invest in some attitudinal changes in the corporate culture.

The latest wisdom suggests that partnering is the way to the future… do we show concern for our customer’s business requirements, communicate effectively our needs and demonstrate an understanding for theirs. Is there a follow-up system in place or do we just wait for complaints. When we get complaints do we conduct a ‘witch hunt’ or do we re-educate the staff to do it better next time.

DOES OUR ORGANIZATION PROFIT (LEARN) FROM OUR MISTAKES OR DO THEY JUST COST US CUSTOMERS?

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EXCELLENT SERVICE NEEDS TOTAL COMPANY COMMITMENT!

A strong customer focus at all organization levels is basic to success in providing excellent customer service. Customer focus by all employees versus, the all to common, ‘IT’S THE SALES DEPARTMENTS RESPONSIBILITY’ is essential to prevent ‘cock-ups’ at the external customer service level. We all need to realise that there are three types of customers for most of us to service… ‘internal’, ‘ultimate’ and ‘external’…

We all know our internal customers (don’t we)… these are any individuals that receive our work output. In most organizations we also have ultimate customers… these are guys/ladies at the sales/buyer interface… and of course we are all here to serve the external customers or those (if we are smart) we refer to as ‘king’!

So who are our customers then? Anyone for whom we do anything is our customer, whether it is directly from one hand to the next, or indirectly through others in the service chain. Therefore if we need a strong customer focus by our non-sales staff they will have to buy into the proposition that they need to work to serve the ultimate customer and their priority must be to do their job in such a way that it makes the job of the next person in line as easy as possible.

HOW DO THE STAFF IN PURCHASING, FINANCE, ACCOUNTING AND ADMINISTRATION SEE THEIR ROLES?

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HOW TO BEHAVE DURING A NEGOTIATION PART II

When it is our turn to present in a negotiation we should never make inflammatory accusations or become personal, we must try to create empathy for our situation by explaining our stance with facts rather than giving our perspective on their attitudes. They are entitled to their attitude regardless of how we feel about it.

It is wise always to encourage the parties to define a number of possible solutions, emphasizing both party benefits to be gained rather than starting a bargaining or trading process, which is not true negotiation. It is dangerous and foolish to go to our extreme position (i.e. if you don’t do this, I will or will not do that), rather we need to emphasize that we are looking for a mutual solution.

If the negotiation is stalled, (with the process still functioning) we need to try to resolve some less crucial issues to get the process re-started. If a deadlock occurs focus should be on ways to keep the negotiation moving by introducing discussions on how to continue the process rather than resolving the issues. It must always be a priority to stay in the process rather than letting the negotiation degenerate into an open dispute or walk out.

WE ALL NEGOTIATE CONSTANTLY, BARS, BEDROOMS OR BOARDROOMS… OR THE MIDDLE EAST… WINNERS ARE GRINNERS.

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HOW TO BEHAVE DURING A NEGOTIATION

From the start of any negotiation we need to be objective when outlining the issues and while doing so watch closely for non-verbal gestures in an attempt to gauge reaction. If the other side interject, be patient and ‘listen to learn’. Our primary aim at the early stages should be to identify areas of agreement or disagreement.

When the other party is speaking we should NEVER interrupt, listen and look carefully and see if you can gain some insights into their level of knowledge and see how confident, (or fearful) they are. We should be trying to see what they need or want from the negotiation or what is driving or motivating them.

Always focus on what is happening now and where we and they want to go in the future, never get into ‘the last time we met you said’, it is confrontational and a road to no where. At the outset take the initiative and ask the other party to define their current perspective on the issue, remember as in selling, the one who asks the questions controls the discussion.

NEGOTIATION IS ABOUT WIN – WIN, BARGAINING IS ABOUT WIN – LOSE!

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WHAT ARE THE PRIMARY FACTORS AFFECTING COMMUNICATION?

Individual differences, Cultural differences, Attitudes about the message or the other person, Stereotyping, Generalising, Beliefs, Values, Assumptions about what the other person knows, thinks, feels or has heard, Age, Sex, Perceptions, Expectations, Emotional state, Jargon, Differing verbal and non verbal signals, Pre-empting, Thinking about your perspective or answer or something you don’t understand, Lack of feedback, Bad questioning technique or not questioning at all, Inability to summarise, Environmental noise or visual distractions, Way in which the message is sent and of course the big one, OUR OWN LISTENING ABILITY.

To send messages more effectively we need to think about:

WHAT WE WANT TO COMMUNICATE: Organise our thoughts. Make a mental outline… (Know any people that never get to the point?) and state what we are communicating concisely in the appropriate order and at the appropriate pace.
WHEN TO SEND MESSAGE: Is this the right time? What frame of mind is receiver in? … Is the receiver going to listen or are they under stress or pressure from other situations they are dealing with?
WHERE TO GIVE MESSAGE: Is this the right place or are there a lot of distractions? Is more privacy required? (Your standing with colleagues and the boss says... This proposal has some serious flaws, in Para, 4.3.a. the etc., how much do you hear)
WHO IS THE RECEIVER: Their frame of reference, experience and needs… (Hi so you’ve just joined, I’m Fred from HRD, I look after MDP and HRM planning for Mobile, Fixed and MD338 production and this is Harry from finance he is our expert on DCF analysis controlling project analysis for our AXE customers)… HUH!
THE METHOD OF SENDING OUR MESSAGE: In person, by phone, letter, memo or a combination of methods… (Ever received a long set of instructions on your voice mail?)

WHY NOT GIVE YOURSELF A REALITY CHECK AND ASK YOUR COLLEAGUES HOW WELL YOU LISTEN ON A SCALE OF ONE TO TEN?

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WHAT IS COMMUNICATION?

The shared understanding of what has been transmitted…about what has been meant… successfully received… as confirmed by appropriate feedback… The key word is: UNDERSTANDING. Communication is not just telling someone something!

Communication is also… a series of ‘symbols’ translated into language and gestures by the sender, which are then deciphered as a new series of ‘symbols’ by the receiver! … HUH! Example – It’s 3pm on your first day at work whilst hammering a nail into a piece wood your boss says to you, “you work like lightening”, aha you think the boss is happy I’m quick at this job, “thank you boss for the compliment” (you say), “compliment” says the boss “I’m telling you your hopeless, like lightning you never strike in the same place twice”

So what’s the problem? The most commonly used 2000 words in the English language can produce 14,000 possible interpretations. Because those with whom we speak constantly interpret rather than truly listen… our real meaning is often lost.

To be a good communicator we need to test to see if our message has been understood as we intended by asking the ‘receiver’ to explain what we have said or what we have asked for… in their own words.

TALK IS CHEAP, SOUND COMMUNICATION IS A KEY TO SUCCESS.

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PRE-NEGOTIATION TIPS – MEMORY JOGGERS 2

Once we analyse and decide where each party stands before a negotiation starts we should document each party’s goals, attitudes, limitations and the known or likely opening stance of each side… i.e. the current state of play.

This done, we need to develop a negotiation strategy by: -

Listing possible solutions for the ‘other side’, their repercussions for both parties and define possible areas of agreement plus the underlying mutual needs or common ground.

Preparing a list of fair operating procedures defining ‘how we deal with each other’ i.e. values, ethics, acceptable expertise and from whom, legal practices, standards etc.

Determining the impact of limitations, what ‘THEY’ may realistically be able to accept, deadlines, the power of the negotiating team to make decisions and any political situation. Try define their perspective on the negotiation i.e. what is their real problem and how do they view our position and attitude. List alternative actions that may provide some basis for continuation or a partial agreement or an, ‘if all else fails option’, (sometimes referred to as a lifeboat).

Planning ways to neutralise negatives or bias to the situation or negotiating parties such as, this customer is greedy, unionists are troublemakers or management is anti-worker that will hinder the process or willingness to listen.

Lastly we should practice, perhaps by role-playing both sides to find weaknesses in our arguments or approach.

TELLING RATHER THAN SELLING… CAN END UP IN YELLING!

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