Three steps that earn business VIABILITY with customers

In simple business terms, an investment proposal that forecasts profits is part of proving business VIABILITY. This is true whether it’s an internal proposal or a proposal from a sales person. However, given that it’s still just an idea that forecasts a profit, we still have to validate the proposal and build confidence via analysis and validation.

The typical language of business VIABLITY is financial calculations such as return on investment (ROI), internal rate of return (IRR), payback, etc. These are standard formulas for forecasting and reporting on the health of an investment. When in the sales mode, by definition, you are estimating what numbers go into the algebraic formulas with the goal of forecasting a result that makes your customers confident with your predictions.

Calculating the numbers may or may not be the role of the sales person depending on the business you’re in but making the customer confident about the results is absolutely what incredibly successful sales people do. To construct the customer message that earns business VIABILITY, I use a simple problem solving methodology that I call What-Why-What-Go. www.go

What is the opportunity or the problem that requires a solution?

Sales people must have enough knowledge to describe the customer’s problem in the customer’s language.

When I was trying to get radio stations and record stores to carry my children’s album, I knew there was a movement in the industry to evolve the music to be more appealing to the parents who were spending the money and choosing the radio stations. I built my pitch around the proposition that parents would have as much fun listening to the music as their kids thus making them more likely to buy them. I also put myself in the position to take advantage of some luck when the likes of Kenny Loggins, Nicolette Larson and Carly Simon decided to produce ‘children’s music that parents would like too.’

Why is your proposal the best? Why should the customer trust your calculations?

Knowing “why” is the most important part of the value proposition. Explaining “why” leads you to assemble the logic that allows the customer to put the pieces together for themselves.

When selling my album, I used industry information that was in major publications, like Billboard and USA Today, which suggested the need for children’s music to evolve to appeal to parents. I used this information with radio stations and music stores to show “why” they needed more of this content to offer to listeners and buyers.

What are the steps forward?

To confirm business VIABILITY, you must show the customer how they achieve the results you have proposed. Part of this is you and your company’s ability to deliver what you promise. A bigger part is the customer’s ability to manage what you’ve proposed.

Continuing with the story of my music pursuits, I was able to help some of the stores and radio stations with their marketing of children’s music overall and specifically how to market the children’s music that appealed to parents. So they didn’t just buy my music, they also got a marketing plan that helped them sell more of my CDs along with those from other artists in the same music genre.

I have many examples of this related to Microsoft and HP but I wanted to emphasize that the same steps are needed, in all sales situations, to prove business VIABILITY. Your delivery might be more formal and complex in big-ticket situations, but “what-why-what-go” still applies.

Lastly, proving business VIABILITY can be the most rewarding part of selling when done well. It’s the time when you learn the most about your customer. If they’re leaning towards choosing you, it’s in their interest to have you present the most viable proposal. When you’re helping each other, you’re building the core of a relationship that can result in a customer for life.

©2014 Rick Wong – The Five Abilities® LLC