The Last of the Seven Deadly Sins of the Construction Industry: Do You Have an Effective Sales Process?

The Last of the Seven Deadly Sins of the Construction Industry:  Do You Have an Effective Sales Process?

Seven Avoidable Mistakes Construction Businesses Commonly Make

In this final installment, will look at whether your business has an effective sales process. 

Know your “Top Tier” customers.  Define the qualities of your “best” customer, whatever those qualities may be.  Evaluate the current and potential sales generated by this group, the cost of acquiring this customer, and the cost of losing this customer.  After you’ve done that, determine how this definition affects your profit plan.  Your lead generation can be tailored specifically to attract these “best” customers, with the sales and pricing process focusing on encouraging these customers to buy from your company.

Sell effectively to your “best” customers.  Don’t leave business on the table because you don’t know your market or your pricing position.  If you are selling a commodity with fundamental standards of quality (in which there is no uniqueness to your product, simply a price comparison), then you must distinguish yourself from the competition with your communications and responsiveness, schedule maintenance, and meeting your customer’s delivery expectations.  The true value of your product or service when it is otherwise comparable to your competition is what is measured by the customer.  You can explain your value added (sometimes known as “service value” or “between the walls” value) to your customer, which helps them understand what they should be looking for from a “top tier” contractor.

Define your “Customer Promise”, and keep it. A “Customer Promise” is your up-front documented and agreed upon statement of the customer’s expectations of your company, its products, and results, as well as what you expect of the customer, including prompt payment, open communications and assessments, etc.  The process creates a branding and control process that allows the marketplace to know who you are.  The process allows you to secure testimonial letters from your customers, in which they attest that you keep your Customer Promises.  It is one thing for you to say who you are or what you do…it is quite another altogether, and far more effective, to agree up front with your client about who and what you are, followed by a customer “report card” at the end.  Post your testimonial letters and cumulative scores on your website. 

“Hook,” don’t “Sell”.  Generally, people and businesses don’t want to be sold. They want their expectations to be fulfilled, and most often they want to buy from someone who can take away the “pain” from previous interactions with vendors.  When you are the one asking questions of the potential customer, you are in control of the relationship.  On the other hand, when you are the one answering questions, you are not in control.   This does not mean that you shouldn’t answer questions, but it’s important to ask yourself why is this customer asking the question he or she is asking.  Asking yourself why establishes your interest in the customer; it establishes control; and finally, it touches this pain component of the customer, which is their fundamental basis for decision-making.  Intellectualizing will get you little in the way of business.  Do not start “selling” the prospect.  If you need to talk about your company, do it with an initial statement explaining how you work with customers and what they can expect from you.  There are multiple methods of non-selling that work:  one is the Sandler Method, which is described in David Sandler’s book “You Can’t Teach A Kid To Ride A Bike At A Seminar.”  In the Sandler method, a general series of questions called a “Pain Funnel”, is asked:

a.       Is that a problem, or was that experience a problem in the past?

b.      Can you be more specific?

c.       Tell me more about that?

d.      How did this affect you past on a day-to-day basis?

e.       How did you try to correct this or mitigate its impact?  Did it work?  Did you give up trying?

f.        How long did you have to deal with this problem?  That long?

g.       Ball park figure, what do you think the problem cost you in dollars, time and emotional inconvenience?  That much?  Are you sure?

h.       How does that make you feel?

i.         Can you see how our company’s process may support your needs?

Sandler’s conclusion for an effective sales process:  “Don’t sell, let the customer buy.”

I hope you’ve found this series helpful.  Next week, I’ll start addressing contract provisions you should look at closely before closing the deal.

Ideas?  Thoughts?  Questions?  Post a comment and let’s discuss!