Last week, I answered a “Hot Question” about customers who make ‘wrong’ decisions. After considerable thought – and the realization that I am one of those customers who frequently makes ‘wrong’ decisions – I decided that the question deserved a full article.
To refresh your memory, here’s the question, which I edited down a bit for space: “Troy, I have a situation that is a bit unique. I’m an optometrist. Many of my customers come to me with a fairly large amount of spending capability on their health plans, but instead of spending all of it on a quality pair of glasses, they’ll instead buy the cheapest Chinese stuff available to them. How can I get them to make a good decision with their money?” The questioner further elaborated that the customers would come in with a spending capability of up to $400 – enough to buy a quality pair of glasses from him – but instead would buy the cheap “3 for $99” deals you see on TV, leaving both quality and free money on the table.
On the face of it, that would seem like a very bad decision. Even I would agree with that. However, there’s a lot that we don’t know. To solve this problem, however, you have to understand one key facet of selling in the 21st Century: Customers don’t make “bad” decisions. They make the decision that is right for them at the time. Let’s talk more about this.
Our optometrist is making one of the most common mistakes in sales: He’s viewing the customer’s decision through his own criteria for a successful purchase, not the customer’s. When you’re selling, the only criteria that matters is the customer’s. That means that we have to understand what the customer’s decision making criteria is, and then sell to that, not our own. Before I break down how to do this, let’s talk about another example of “bad” decision making.
A couple of days ago, I visited one of my favorite retail establishments: Barnes and Noble. I’m a book nerd (no, really, I am, I say to all of you, who are probably nodding right now). I love bookstores, both new and used, and I hit the magazine rack at B&N at least once a week. Barnes and Noble is really hardcore on their discount program. You buy a ‘membership’ for $25 annually and you get 10% off all products, and bigger discounts on best sellers. At least that’s how I understand it. As a loyal B&N customer, you’d think I’d have one of these, wouldn’t you?
I don’t.
I have two reasons for not having one. First is that in some things I stand on principle. I refuse to purchase a ‘discount.’ If B&N would like to reward me for being a frequent customer, they may do so (Borders used to without a fee), but I’m not going to pay for the privilege.
Second, I hate to carry discount cards. I’m a man. That means that I carry my wallet in my hip pocket, and the thinner it is, the more comfortable I am. Hence I don’t carry discount cards. Yes, they could look me up through my phone number, but then I’m back to paying. With what I spend at B&N, the card might save me $75-100 annually. It’s not worth it.
But I know that when I go to the cash register, I’m going to be asked if I have the card. I reply with a firm but polite “no.” Then I’m asked if I want to hear about it. I reply “no” again. At this point, if I’m lucky, the clerk will respect my wishes and ring me up. If not, the clerk might start by saying, “But, you would save $2 on this purchase…” or whatever. At that point, I get annoyed and ask if it’s OK for me to purchase magazines there. The clerk looks at me as if I’m stupid. Clearly I’m making the “wrong” decision. The trouble is that the clerk doesn’t know my criteria.
The optometrist is in the same situation. He’s looking at the value proposition through his own eyes and not the customer’s – but the customer is the one who will buy. The value proposition always makes sense to the salesperson. So, why in the world could a customer prefer cheap, badly made (he’s assuming) glasses in quantity over one high quality and more attractive pair of glasses, especially when there’s no cost to the customer?
There are reasons, much like my reasons for not getting a discount card. Perhaps the customer seldom wears glasses, but wants a pair in multiple locations (I have sunglass shades for my glasses, and I have multiple ones so I can have a sunglass in each car, for instance). Hence, quantity becomes more important than quality. Perhaps the customer doesn’t understand their own buying power. Or maybe they want multiple pairs of glasses with different “looks.”
The problem is that, usually, we don’t try to understand the customer’s criteria for the decision – instead we try to ‘educate’ the customer on the ‘right’ decision. That seldom works. It seldom works because WE say it, and it’s a transparent effort to ‘push’ things that the customer doesn’t want. There’s a better approach.
Ask, don’t tell. The customer’s words are always more powerful than yours; the key is to tease out of the customer what their criteria is, and ask questions that influence the conversation. Let’s take a look at our optometrist again, and how he might work questions into the conversation. Questions like:
“How often do you actually wear glasses?”
(If they don’t wear them all the time): “Do you carry them with you all the time?”
“What kind of impression do you want your appearance to make?”
“How important is it to you to be able to have different looks?”
At the very least, these questions would tell the optometrist if the customer is a good candidate to ‘upsell’ into better frames; at the most, there might be lead-ins to good selling.
So, if you want to succeed in this situation, you have to set up the criteria early, BEFORE you present. Here are the steps involved:
- Respect your buyer’s intelligence. Your customers (usually) aren’t stupid, so don’t treat them like they are.
- Be open to other viewpoints. This goes along with the previous step, but realizing that buyers have their own worldviews is vital.
- Set up the criteria by asking, not telling. Your customer’s words are the most important ones; ask good questions early in the process before you work toward a presentation.
- Ask “what if” questions to address or shift the customer’s criteria. The two most powerful questions in sales are “what if.” Use those words to your advantage by painting an advantageous situation.
- Find a way to solve the customer’s problem, not yours. The key to winning the sale is to get the customer’s agreement that your solution can solve their problem within their own criteria.
- Don’t argue. When you go down the road of believing that the customer’s criteria is ‘wrong,’ you’ve lost the sale. If you can’t get agreement on the criteria, it might be a better strategy to back off and preserve the relationship.
- Respect the customer. Remember, the customer is buying SOMETHING from you (in the case of the optometrist, it’s an exam). You don’t want to make the process so unpleasant by trying to upsell that they avoid you entirely.
Like anything else in sales, this won’t work all the time. NOTHING works all the time. This, however, will give you the best shot at succeeding when you think the customer might be “wrong.”
