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Buying Decisions, Buying Decision Path, Buy Cycles, and Pre-Sales
Guest articles > Buying Decisions, Buying Decision Path, Buy Cycles, and Pre-Sales
by: Sharon Drew Morgen
Iâ€™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 couldnâ€™t understand why prospects who â€˜should haveâ€™ bought didnâ€™t buy. When I started up a tech company in London in 1983 and became a â€˜buyerâ€™ 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 BUYERâ€™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 couldnâ€™t decide what or if to buy before
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 â€˜understandingâ€™ needs (impossible to answer accurately until we all comprehended the scope of the givens) the sellers pitched solution data I didnâ€™t know how to consider responsibly and potentially lost me as a buyer. Thatâ€™s when I realized the problem I had had with buyers not closing:
The sales model focuses on placing solutions (seeking folks with a â€˜needâ€™ who â€˜shouldâ€™ buy) and ignores the confounding human-, policy-, and system-specific issues buyers must handle before a purchase could even be considered (folks who â€˜willâ€™ buy). By entering only during the final element of choice (vendor, solution), sellers squander the ability to influence the major portion of a buyerâ€™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 â€“ those ready, willing, and able to buy â€“ 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 â€˜buyâ€™ or â€˜not buyâ€™, 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 FacilitationÂ® to denote the difference in focus between â€˜sellingâ€™ and â€˜buyingâ€™ and help buyers do the initial stuff they had to do anyway, but without sellers:
To be fair, the sales job has never been about facilitating change, using a restrictive â€˜solution-placementâ€™ 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 hasnâ€™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 donâ€™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 havenâ€™t had a skill set that blends with the sales model to help: except for visionary areas within the global companies Iâ€™ve trained over the last 30 years, the sales field found my ideas and newly coined terms pointless. But sellers who added Buying FacilitationÂ® 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 FacilitationÂ® be taught as part of sales training for all sales professionals.
BUYING FACILITATIONÂ® FACILITATES 70% OF BUYERâ€™S DECISIONS
I taught my sales team how to add Buying FacilitationÂ® 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 â€˜user errorsâ€™. 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.
I have no illusions that the mis-definitions will continue and some mainstream sellers will think they â€˜do thisâ€™ 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, Iâ€™m offering the definitions of the terms I coined in 1985. They include some form of the word â€˜buyâ€™ 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 FacilitationÂ®. 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 â€“ 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 FacilitationÂ® training I delivered in 1988 to KLM. By â€˜helping buyers buyâ€™ 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 â€“ and comes well before any decision is made to buy anything, and quite separate from any â€˜needâ€™. The sales field uses this term erroneously to denote how buyers choose one vendor/solution over another, line up the funds, etc. â€“ 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, itâ€™s not only the solution/vendor choice issues.
Buying Decision Team. The full set of stakeholders â€“ some not obvious, some not â€˜decision makersâ€™ â€“ who will touch the final solution and need to add their ideas, concerns, knowledge, and feelings to the discussion. Usually sellers (or change agents) arenâ€™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 â€˜influencersâ€™ 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 itâ€™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 werenâ€™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 â€“ 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 isnâ€™t finding the buyers; the problem is facilitating those who can buy. As an example, using Buying FacilitationÂ® 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 Iâ€™ve developed terms that help sellers think through the steps that help buyers buy. Maybe itâ€™s time to begin learning the â€˜howâ€™ of helping buyers buy, the â€˜whatâ€™ of the buying decision path, and the â€˜whoâ€™ of the buying decision team. Letâ€™s begin using the terms properly and stop ignoring such a large piece of the puzzle.
Sharon Drew Morgen is the author of 9 books, including NYTimes Business Bestseller Selling with Integrity, and What? Did You Really Say What I Think I Heard? She has developed facilitation material for sales/change management, coaching, and listening. To learn more about her sales, decision making, and change management material, (www.dirtylittlesecretsbook.com) go to www.sharondrewmorgen.com. To learn more about her work on closing the gap between what’s said and what’s heard, go to www.didihearyou.com. Contact Sharon Drew for training, keynotes, or online programs at email@example.com. Sharon Drew is currently designing programs for coaches to Find and Keep the Ideal Client, and Lead Facilitation for Lead Generation.
Contributor: Sharon Drew Morgen
Published here on: 20-Mar-16