Posts

Sharon Drew Morgen

Buying Decisions, Buying Decision Path, Buy Cycles, and Pre-Sales

I’d like to set the record straight. In 1985 I coined terms that I’ve written extensively about in best selling books, magazines, and hundreds of articles. Unfortunately, when finally adopting them, the sales field defined them differently than originally intended, causing important concepts to be lost. This article presents the intended definitions and explains how I came to coin the terms.

In 1979 I became Rookie (stockbroker) of the Year at Merrill Lynch with 210 accounts (the market was 777). I couldn’t understand why prospects who ‘should have’ bought didn’t buy. When I started up a tech company in London in 1983 and became a ‘buyer’ I realized the problem and developed a new skill set to migrate it. Here’s how I figured it out.

HOW SALES IGNORES BEHIND-THE-SCENES BUYER’S REAL ISSUES

As an entrepreneur with needs, I invited sellers in to pitch me. But regardless of their professional skills or my potential need, I couldn’t decide what or if to buy before

  • the people involved shared their thoughts and concerns, and bought-in to any changes a new solution would involve,
  • we discerned any fallout to the company, relationships, people, policies etc. that change would incur and figure out ways to minimize it,
  • we tried workarounds and determined we couldn’t fix the problems with known resources.

Even though we were only a $5,000,000 company, I had a closely knit team and flourishing business to consider before bringing in anything that might rock the boat with my employees, investors, clients, company strategy, bottom line, brand, daily routines and systems. With a focus on placing solutions and ‘understanding’ needs (impossible to answer accurately until we all comprehended the scope of the givens) the sellers pitched solution data I didn’t know how to consider responsibly and potentially lost me as a buyer. That’s when I realized the problem I had had with buyers not closing:

The sales model focuses on placing solutions (seeking folks with a ‘need’ who ‘should’ buy) and ignores the confounding human-, policy-, and system-specific issues buyers must handle before a purchase could even be considered (folks who ‘will’ buy). By entering only during the final element of choice (vendor, solution), sellers squander the ability to influence the major portion of a buyer’s decision process which has little to do with needs or purchase.

Indeed, the sales model promotes the cart before prospects even know if they have a horse or have mapped out a destination, ensuring only those who have their cart ready to go (knew the obstructions, route alternatives, and danger signs) would buy. Promoting solutions, and asking questions in service of a sale, merely captures the low hanging fruit – those ready, willing, and able to buy – and ignores the possibility of influencing, enabling, and serving the early, Pre-Sales components in the decision-making path (whether selling/marketing online or through customer contact) – not to mention loses untold amount of business.

I realized all buyers must do this; and as I seller I had been sitting and waiting while buyers did this on their own, without me. Indeed, the time it took them to complete this was the length of the sales cycle. I figured if I could facilitate the buyer’s decision path, I could accelerate their decisions to ‘buy’ or ‘not buy’, stop wasting time, close more sales (quickly) and really serve. So I coded the entire change/decision arc (13 Steps, 9 of which [70% of the decision process] are outside the scope of how/what we sell), learned how systems make decisions to change, coined some new terms and developed some new models for questioning and listening without bias, and built this into a front end to sales so I could enter, facilitate/serve, and influence, earlier. I named this process Buying Facilitation® to denote the difference in focus between ‘selling’ and ‘buying’ and help buyers do the initial stuff they had to do anyway, but without sellers:

  • assemble all appropriate stakeholders ((Buying Decision Team) to get their input;
  • get consensus for types and levels of change manageable;
  • research options;
  • discover easy, economical workarounds where possible;
  • decide how to identify handle any disruption a new addition would cause;
  • weight risks with stakeholders to discern the efficacy of buying anything (Buy Cycle);
  • choose solutions and vendors.

To be fair, the sales job has never been about facilitating change, using a restrictive ‘solution-placement’ model since its inception without recognizing the low close and enormous time wastage is anything more than a problem finding buyers. This singular focus has been so endemic that sales hasn’t accounted for either the idiosyncratic issues buyers must address prior to buying anything (even for inexpensive items) or the opportunity to influence and serve buyers much earlier than the final point they might reach to buy, believing that if they find creative ways to offer content earlier it will mitigate the problem. But it doesn’t.

The industry close rate of 4% has always been an indication of a problem: the centuries-old bias toward placing solutions (How can we accept a 96% failure rate [from first contact] as standard?) ensures all sales models, including Challenger, create resistance, potentially turn off real buyers who need your solution (80% of prospects buy a similar product within 2 years of your interaction), and ignore the ability to influence 70% of the Buying Decision Path.

Indeed, buyers don’t want to buy anything, they just want to resolve a problem congruently, without major disruption to that which works well. Indeed a purchase happens only when there is no alternate resolution; and we haven’t had a skill set that blends with the sales model to help: except for visionary areas within the global companies I’ve trained over the last 30 years, the sales field found my ideas and newly coined terms pointless. But sellers who added Buying Facilitation® to their sales activities experience upward of a 6x increase in sales as they truly facilitate buying decisions. My dream has always been that Buying Facilitation® be taught as part of sales training for all sales professionals.

Buying Facilitation® Facilitates 70% of Buyer’s Decisions

I taught my sales team how to add Buying Facilitation® to their current sales skills; we quickly experienced a 40% increase in sales (from first call) and I only needed half the sales staff. My tech team used the material to involve all the right people immediately and extract the most vital information quickly, making programming and implementing more efficient, and insuring early project completion and no ‘user errors’. I began teaching the material to clients, coaches, and managers.

Approximately five years ago my terms began entering the sales field. But, as happens when a new idea enters mainstream, the terms were not defined as I defined them, but re-defined to be a part of the very concepts I was fighting against.

Terms Defined

I have no illusions that the mis-definitions will continue and some mainstream sellers will think they ‘do this’ already. Hopefully some folks will seek to learn the material (and training is required as the model employs entirely different thinking and skills). But just for my own piece of mind, I’m offering the definitions of the terms I coined in 1985. They include some form of the word ‘buy’ to denote the disparity between the act of buying and the process of selling. And the underlying belief is that as sellers we should be using our unique positions as corporate representatives and knowledge experts to be servant leaders and truly serve buyers to discover their own path to excellence, hopefully, ultimately, with our solution (But if not, we end quickly and gently. Otherwise, we close in half the time.).

Buying Facilitation®. A generic change management model for coaches, sellers, managers, etc.) that enables efficient, congruent change, that employs a specific type of listening (Listening for Systems), and new form of question (Facilitative Questions – not information gathering), used in a specific, coded sequence, for facilitators to enable excellence through congruent change. It manages all of the unconscious, upfront, endemic change issues that would have to accede for change to happen. Until buyers (or anyone) know how to manage this, they cannot agree to change/buy, hence the length of the current sales cycle.

Helping Buyers Buy. The term comes from the first Buying Facilitation® training I delivered in 1988 to KLM. By ‘helping buyers buy’ we facilitate the full Pre-Sales Buying Decision Path.

Buying Decisions/Process. The outcome of resolving all of the change/decision issues into an action: consensus of all stakeholders who will touch the new solution; the route forward to change without disruption or resistance; deciding to move beyond their workaround; AND THEN the solution/vendor choice issues. The term is being misdefined by sales to merely include vendor/solution choice issues.

Buying Decision Path. 13 steps that traverse the elements of change management: starting with an idea (Step 1) through to a purchase (Step 13). It includes people, systems, implementation, resistance, workarounds, relationships – and comes well before any decision is made to buy anything, and quite separate from any ‘need’. The sales field uses this term erroneously to denote how buyers choose one vendor/solution over another, line up the funds, etc. – a usage dynamically opposite to the original definition.

Buy Cycle. The entire set of givens necessary for buyers to end up with excellence (either internally or with a purchase). Again, it’s not only the solution/vendor choice issues.

Buying Decision Team. The full set of stakeholders – some not obvious, some not ‘decision makers’ – who will touch the final solution and need to add their ideas, concerns, knowledge, and feelings to the discussion. Usually sellers (or change agents) aren’t privy to the internal machinations necessary before a purchase (or any change) can happen. Hence the 4% close rate.

Buying Patterns. The way the buyer has traditionally bought/changed in the past. Do they always use known vendors? Will they never take cold calls or meetings with sellers? Sellers traditionally use their comfortable selling patterns and cannot connect with buyers with divergent buying patterns.

Marketers currently use the term Buyer Persona to denote ‘influencers’ who will enable a sale. This ignores most of the early decisions buyers make and keeps marketing from entering effectively much earlier. Using different types of content it’s quite possible to influence different points along the Buying Decision Path.

Time for Change

Think about it. Are you happy with your low close rate? Your horrific waste of time and resource running around after people who will never buy (and who you could know on the first call weren’t buyers) or responding to RFPs that fail? The time waste seeking prospects who will take an appointment only to have one person on a data gathering mission show up – and then you never hear from them again (not to mention the hours planning for the meeting!)? Have you never wondered where buyers go when YOU think they have a need?

The current sales model closes a fraction of people who need your solution, and costs much more than necessary on wasted resources (large sales forces, presentations, proposals). The problem isn’t finding the buyers; the problem is facilitating those who can buy. As an example, using Buying Facilitation® at Kaiser, sellers went from 110 visits and 18 closed sales in a month, to 27 visits and 25 closed sales, an increase of 600%, not to mention the time saving.

I go back to the original question I posed decades ago: Do you want to sell? Or have someone buy? They are two different activities. And I’ve developed terms that help sellers think through the steps that help buyers buy. Maybe it’s time to begin learning the ‘how’ of helping buyers buy, the ‘what’ of the buying decision path, and the ‘who’ of the buying decision team. Let’s begin using the terms properly and stop ignoring such a large piece of the puzzle.


About the Author

Sharon Drew Morgen is founder of Morgen Facilitations, Inc. (www.newsalesparadigm.com). She is the visionary behind Buying Facilitation®, the decision facilitation model that enables people to change with integrity. A pioneer who has spoken about, written about, and taught the skills to help buyers buy, she is the author of the acclaimed New York Times Business Bestseller Selling with Integrity and Dirty Little Secrets: Why buyers can’t buy and sellers can’t sell and what you can do about it.

To contact Sharon Drew at [email protected] or go to www.didihearyou.com to choose your favorite digital site to download your free book.

Sharon Drew Morgen

How Sales, Marketing and Social Can Facilitate the Decision Path

Sales, marketing, and social marketing attempt to place solutions and create relationships by supplying great content, discovering likely prospects, and creating trust. Unfortunately sellers end up closing a small fraction – less than 5 percent – of those they reach, and marketers and social end up wasting a lot of time and don’t often meet their goals. What’s causing our failure? And is there one solution that can enhance all?

Problems with Our Current Thinking

Here’s a bit of flawed thinking that exacerbates the problems:

  • Sellers believe prospects are folks who SHOULD buy rather than those who WILL buy. It’s possible to know very early if the prospect CAN buy;
  • Marketers believe that content is king, that offering the right content at the right time enables a buying decision. But we don’t know the role the reader plays on the Buying Decision Team, how or when the content is being used, and if it’s making a difference in the buying decision (i.e. it might be just a resource);
  • Social believes that by engaging in relationships over time and developing trust, followers will come back when they are ready. But because we can’t know their decision path, or associates who need to buy-in to any change, or internal political issues, we can’t know if we are spending time wisely.

We can facilitate the buying decision and create more success with followers by employing different thinking to save us from:

  1. Merely guessing at, or manipulating, our results without knowing our true outcomes;
  2. Wasting time assuming if we play nice or offer good content people will buy or take action;
  3. Neglecting actions we can take to facilitate the decision steps buyers and followers take before they are ready to make a choice.

Let’s look at some new thinking to add to what we’re successfully doing.

What I Learned in the Trenches

We overlook the myriad of things that buyers and followers must contend with outside of the purview of the solution, need, or relationship:

  • People have complicated issues to handle before they can buy or change;
  • Figuring out the full complement of people to include in any purchase or change decision is complex. Each participant brings their unique criteria into the mix;
  • Given politics, internal relationship issues, history and future, it’s challenging to get buy-in from everyone involved with the final solution, yet the buy-in is necessary to ensure the status quo doesn’t implode with a new purchase or change.
    • I learned this as both a sales person and an entrepreneur. When Merrill Lynch hired me a stockbroker in the 1970s, I became a million-dollar producer my first year. But I couldn’t figure out why everyone with a need (especially those I had a great relationship with) didn’t buy. Where did they go?

      When I started up my tech company in London in the 80s I realized the problem: as a buyer, my direct needs were often superseded by the social, political, organizational, and relational considerations I had to manage. When sellers came to pitch they understood my need and gave fine pitches but had no way to handle the fights I was having with the Board, or the issues the distributor was having with my solutions. Nor did anyone even try.

      The sales model, I realized, was not designed facilitate the behind-the-scenes non-need-related issues I had to manage before I could consider buying anything. I then developed Buying Facilitation® to add to the front end of the sales model. My own sales team used it as a front-end to our sales process by first navigating buyers through their change management issues – buyers must do that anyway so we facilitated the stages and steps instead of sitting and waiting for the time it took them to figure it out on their own. That way we got onto the Buying Decision Team early and became great relationship managers. Our sales tripled and the time to close was reduced by two thirds.

      The takeaway here for marketers and social is the recognition that we are largely ignoring the hidden, systemic issues going on that are not available to outsiders yet fundamental for any change to happen. That is our Achilles Heel.

      What’s the Role of Change Management?

      Buyers and followers don’t know their journey to change when they begin and hence take longer than necessary. But we can help them, and make our value proposition our ability to be their GPS.
      There are two elements of the Buying Facilitation® model that can be added to create a ‘pull’ that’s change- and decision-focused.

      1. Listen for systems: instead of coding, noticing, tracking details that will help us guess at who’s reading, who’s a decision maker, where they might be in their sales cycle, etc. let’s begin listening for, and designing, tools to facilitate the movement along the decision path that change decisions goes through; let’s ensure the right people are all involved (some not so obvious) and address consensus-building. We now listen for what we want to hear rather than listening for issues with decision making, change or choice.
      2. Use Facilitative Questions: instead of waiting until they do this on their own, Facilitative Questions guide people through their buy-in and change management issues (necessary for both small purchases and large solutions) and facilitate the trajectory through their steps. Facilitative Questions are a type of criteria-recognition and choice format I developed.

      It’s possible to develop assessments, questionnaires, intelligent contact sheets, CRM tools that provide the capability to lead buyers and followers through the steps they must take, send out just the appropriate data at the right point in the cycle, and facilitate the consensus and buy-in as they ready themselves for change. We can add these to the sales, marketing, and social models to truly serve our buyers and followers and close more. It will be an addition, and the results will stronger relationships and more conversions.


      About the Author

      Sharon Drew Morgen is founder of Morgen Facilitations, Inc. (www.newsalesparadigm.com). She is the visionary behind Buying Facilitation®, the decision facilitation model that enables people to change with integrity. A pioneer who has spoken about, written about, and taught the skills to help buyers buy, she is the author of the acclaimed New York Times Business Bestseller Selling with Integrity and Dirty Little Secrets: Why buyers can’t buy and sellers can’t sell and what you can do about it.

      Need help developing content, tools, training or questions that will enable a buyer’s buying decision process? A speaker at your next conference? Contact Sharon Drew at [email protected] or visit her website: www.buyingfacilitation.com.