Understanding the three reasons for commoditization will help you provide value to your customers.

Company executives and their teams are struggling with differentiating their complex business solutions in this highly competitive and complex market. Simultaneously, customers are putting a squeeze on margins by driving buying decisions down to the lowest common denominator -- price.

How is this happening? Why is this trend increasing at an alarming rate? How can you hold your price and get paid for the value you create?

Let's start by taking a hard look at the three driving forces of commoditization…advances in technology, difficulty connecting value to the customers' business drivers, and pressure on buyers to make decisions when the problem to be solved, and solutions offered, are not clearly understood.

Companies are constantly seeking differentiation by upping the ante in technological advances; but this can be problematic if that differentiation exceeds the needs and understanding of your customers. If your customers can't comprehend or measure your value, they will respond by ignoring what could be very valuable to them and focusing on what they do understand…price, and there goes the downward spiral to commoditization.

Continue reading "Don't be a Victim of Commoditization"

What obstacles do salespeople around the world face? The answer may surprise you.

I've just completed a four week, eight country tour that included the US, Europe, Southeast Asia and the Middle East. Set aside the critical cultural nuances for a moment and you will find that sales professionals around the world are asking similar questions regarding how to become more successful in this complex and global market.

1. What are the most important skills a sales professional needs in order to succeed in today's competitive environment?

There are critical components that form a foundation for learning and performance for all professionals. They are systems, skills and disciplines. A system is a set process or organized procedure that leads to a predictable result. The skill is in the individual's knowledge and ability to execute the system. Discipline is having the emotional or mental stamina, perhaps even the courage, required to achieve the highest standards of the profession. In short, these three areas represent knowing what to do, how to do it, and having the emotional strength to actually carry it out at a quality level.

Continue reading "Standing Out in Today's Complex Market"

When customers see you as contributing to their business's success, you're rewarded with greater loyalty.

Exceptional sales professionals recognize that the traditional strategies of differentiation through product and price are not nearly as effective as building a solid base of customers who look upon the seller, their solution provider, as contributors to their business.

Customers deal with many salespeople and are demanding a higher level of expertise from the individuals they choose to work more closely with. They are giving greater loyalty to those professionals who most adequately support their business objectives, those that become a source of business advantage. We refer to that unique group of professionals as P.R.I.M.E. Resources®.

What does it mean to become a P.R.I.M.E. resource?

Continue reading "Becoming an Exceptional Resource for Your Clients"

The beginning of the new year is a great time to re-evaluate what worked well last year, and what didn't, and what you'll need to do to face the challenges ahead of you.

In the past year we have seen businesses undergo dramatic changes in their attempts to meet customer requirements and serve their markets more professionally and successfully. Competitive pressure is relentless, especially when it's becoming more obscure as to whom the competitor actually is and how the customer is evaluating their choices.

The beginning of a new year is a great time to pause and re-evaluate what has worked well and what has not, what's evolving and what we need to do differently to meet the challenges in front of us. As you examine your own business strategy, I want to share with you the top three challenges that I have observed organizations struggling with, and give you some ideas on how to reposition yourself and win more business in 2008.

1. Customers don't fully understand their problem and what to do about it.
The complexity of today's business -- advancements in technology, evolving global markets, unanticipated competition, creation of robust and more complex solutions, etc., make it nearly impossible for the customer to be expert in all areas of business and be able to recognize the best opportunities for improvement.

Continue reading "Three Keys to a Successful New Year"

You gain more credibility with the questions you ask than with the stories you tell.

I had the pleasure of joining my partner today on a conference call with a prospective customer. This is about the fourth such call she has had with this customer. It is a substantial opportunity for us, and of course in an opportunity of this size, the customer is speaking with a group of potential suppliers. The initial group was large -- 12 great companies looking for an edge -- but it always narrows down to the preferred choice. In this case it was Prime Resource Group.

Today I heard this customer say those critical words, "Quite frankly, you guys are asking a lot of questions that I haven't heard from the others. You've helped me think this through and, in fact, you have really caused me to change my thinking on my entire approach."

Let me share with you one of my "Key Thoughts": You will gain more credibility through the questions you ask than the stories you tell! It's one of those simple nuggets of information that, when applied, can make a great impact on your business.

Continue reading "Set Yourself Apart"

What are your customers saying about you online? If you're not paying attention, your reputation could be suffering.

Has your company been yelped? Yelp.com and other sites like it capture consumer reviews about firms of all kinds -- from painters and pet sitters to restaurants and railways.

Yelp affects business. A month before I moved across town, I hired a moving company -- a name you'd recognize. I'd used it in the past with neutral results, but not bad enough to look elsewhere. About two weeks before the move, I searched online for its number so I could call to confirm my reservation. I found the number, and guess what else popped up in the first few Google search results? Negative yelp, from bad to worse.

Continue reading "What To Do When Your Customers Yelp -- Part One"