When college coaches recruit high school athletes, they don’t waste time listing all the fine features of their university, why? Because students are only interested in what they’re interested in. They are not necessarily interested in what the coach likes about the school.
The same thinking applies to vendors and lessees. Some sales people dive right into a presentation. They "dump" all the information they can about their company and their programs, and they think they are selling.
Telling is not selling. Selling leasing is not a one-size-fit’s–all process. Every customer’s needs, challenges, problems, budget and decision-making process is unique. Therefore, every sale must be designed and customized to fit that vendor or lessee’s needs.
There is only one way to find out what those needs are, and that is by asking questions. Questions are a salesperson’s most valuable selling tool. Most leasing salespeople know that in order to sell financing you have to sell the benefits of financing. But a benefit to one lessee may be of no interest to another. The only way to find out which benefits are important to a particular lessee or vendor is to ask questions.
I used to sit next to a sales rep who never asked questions. He was very overbearing and enthusiastic about leasing. He talked, and talked, and talked. He talked because he thought he knew more than the customer. He knew features and benefits. He knew how to structure deals. He was good at talking and he thought that was what the job called for. And a lot of people still think that is what sales is all about. Hire an outgoing affable person and talk at the customer. This sales person is not in leasing anymore. The lessee grew and he didn’t.
The image of the talkative salesperson has long been a cliché. The degree to which talking too much has been a nuisance to customers covers the spectrum. At one end you had customers who felt they didn’t know much and were willing to sit through the sales pitch to learn about the benefits of leasing. At the other end were savvy customers who found the talkative salesperson a nuisance but made the purchase anyway. They got what they needed and avoided the ordeal of listening to another salesperson.
Guess what? The marketplace has changed. That sales approach does not work anymore. Today’s lessee is better informed. You can see the increasing knowledge from the questions they ask: about residuals, and personal guarantees, about the tax advantages of leasing.
Years ago lessees could hide bad decisions. Large organizations could hide their equipment and financing mistakes. Improved management practices have done away with much of that. Now good purchases and bad purchases are part of the performance portfolio.
The lessee has more at stake than the broker. If the lease rate is too high, or the lease is evergreen, or it is riddled with miscellaneous fees then every person in their company who was part of the buying decision is asked questions like: Whose idea was this new equipment? What made Dana think this leasing company was any better than our old one? Couldn’t Kristi see that this buyout option wouldn’t work for us? And so the lessee is reminded: wrong choice. Today, mistakes will get a lessee’s windows boarded up. From the biggest customers to the smallest, there’s a lot at stake.
So, how do you start a relationship with the lessee? You engage the lessee in dialogue. You ask them questions that get them to open up and tell you what is most important to them with this transaction.
There is a process to this. The first step is to do your homework. Did you ever make a prospect call to a vendor, get through to the decision maker, and then start to ask qualifying questions like: How many sales people do you have? What manufactures do you represent? Then you hear the decision maker sigh because they don’t have time for this? I’ve made that mistake and it’s a tough hole to climb out of. First you qualify the vendor or the lessee by visiting their web site, or by speaking to the receptionist, or someone in their sales department. (Sales people are always good for information.) Also, you can call and ask for accounts receivable, your call will always be put through.
When you get a live person on the phone ask as many qualifying questions you can. For lessees the questions are:
- How long have you been in business?
- What does your company specialize in?
- Who are your main customers? What do they expect from your product or services?
- I know your main area is ____________, but can you tell me more about your company’s products and its history?
- What differentiates you from your competition?
Qualifying questions for vendors are:
- What type of equipment do you sell?
- What is the average dollar amount of your sales?
- How many sales people do you have?
- Who is the contact person for equipment leasing?
- Do you currently offer leasing to your customers? If yes, what leasing companies do you use?
After you have qualified your prospect, you then call the decision maker. Your opening statement to the decision maker is one of the most important parts of the call. On Pawnee’s web site we have a whole section dedicated to this one category.
After your opening statement, you want to engage the prospect in dialogue. The more the customer talks, the better. The reason for this is, if you are talking you’re not learning anything. When the prospect talks they’re revealing clues about themselves and about their business.
Here are some key questions that will allow your prospect to share important information:
- What are the most important criteria you consider when choosing a leasing company?
- What is your role in the organization?
- What are your company goals for the next year?
- What is the biggest challenge facing you this year?
- What does the next leasing company need to do to earn your business?
- What would have to happen for you to consider a switch from your present leasing company?
- What would you like to see from a leasing company in the area of support after the sale?
- What is the process you normally go through when considering a new leasing company?
- Who else would be involved in this decision? Should I speak with them?
- How did you choose your current leasing company?
- How many leasing companies do you use?
- What services provided by your present leasing company are most important to you?
- If for some reason your regular leasing company doesn’t perform well, what do you do?
- What are your feelings about our industry?
- Do you see any reason why you would not want to utilize our company?
- How do your sales people pick what leasing company to use on a particular deal?
- If a prospect says "just send me some literature" a good question to ask is "Let’s assume that you like what you see when you get it. What happens next?"
- If the prospect tells you; "Now just isn’t a good time…" Your questions might be; "I see. Let’s talk about that. So your saying that you are interested in working together but there is something that makes now a bad time?"
- What is going to happen between now and then that will make the second quarter a better time?
- If the prospect says "There is a possibility we might be able to use you at some point. I’ll keep your information on file. Follow that with... "When you say possibility what are you talking about?"
- To find out someone’s interest level you can say "On a scale from 1-10 where would you say you are? If they say a 7 say, "What would it take to get you to a 10?"
A few key points while asking these questions:
Listen to the answers, take notes, really listen to understand, resist the tendency to jump in and present your services right away. Instead question more. Use instructional statements such as "Tell me more" "Please go on." "Elaborate on that for me please" "I’d like to know more about that, please continue."
Remember not to just fire these questions away at the prospect, think of yourself as a concerned friend, someone who is there to help the prospect and uncover their needs before you try to fill them.
Once you understand their situation, and present the leasing options, questions are the way to firm up their level of commitment. Ask: ‘Can we fill out the application now? Or "When specifically do you see yourself moving forward?" "What is going to happen next on your end? When?"
A simple question that I use at the end of every vendor prospect call is; "Are you working on any deals right now that I can help you out with?’
Questioning and listening are the foundations for your sales success. Increase your questions and you’ll increase your sales.