Empathetic Leadership
Why You Need Special Recession Payment Terms
As leaders, one thing we’re all aware of is how tight budgets are – both yours and your clients.
Listen, I love getting paid for deals upfront. Cash flow and payroll are real my friends. But I also like closing deals. When times are uncertain, it needs to feel much less risky for prospects to buy now. Have you talked with your finance team about what risk you can shoulder so your prospective clients don’t have to? For example:
- Cancellation clauses. If it’s not working, they don’t have to pay for it.
- Better terms. How much less can we get up front? Can we extend 90-day vs. 30-day terms?
- Pause clause. If times get tougher, how long can we let clients pause their contracts with no extra fees? Can we tack on services to the end of the contract or do they lose some value during the pause?
Talk to your sales reps about the exact objections they’re getting out there.
What solution would help?
Important note: if they can’t tell you, they need some help.
READ: Changing Sales Incentives During A Recession
Here’s where to focus your coaching:
- Price objections are the beginning of a conversation. The most important thing top reps do next is ask open questions to uncover the root of the objection. A price objection could mean:
- My budget is frozen
- I’ve already spent my budget
- I don’t get more budget until next month
- You’re too expensive
- I can’t validate this spend to my boss
- There are 27 more, but you get my point
Work all four steps in overcoming an objection to get the best intel, and make it easy for reps to share. For example, you get an email for every price objection with a link to the call recording and the rep’s feedback on the root cause (trust, but verify, right?)
- Reps need help getting to the economic buyer to get these answers! If they’re stuck with a mid-level leader, they may not get the root cause. Coach reps on asking detailed questions about all the purchasing steps and people involved. These skills can absolutely be taught, but they aren’t 101 (hell, even 201) level conversations. It takes guts to ask for help going around a prospect and they’ll need some lines to steal, some room to practice, and some great role models who do it well. Bonus: you’ll get more accurate forecasts and fewer stuck deals as a result as well.
Subscribe to our email list to receive new content, webinar invites, and training offers.
Top Pipeline-Building and Recession Selling Tips
Regardless of the industry you’re in, there’s no escaping the dreaded R-word: Recession.
Some industries might be struggling more than others (over 58,000 tech workers have been laid off since 2023), and those ‘other’ industries might not even be feeling the effects at all. But the bottom line is: you never know when you might be impacted by a recession or by the mitigating factors in a nervous and challenging economy.
Whether you’re in the thick of it or preparing for the worst, if you’re in sales the good news is you’ve got plenty of ways to protect the pipeline you’ve built and keep building on strong momentum.
Factor 8 Founder Lauren Bailey recently chatted with Doug Landis – advisor to the biggest and brightest SaaS startups and current Growth Partner at Emergence Capital, and Zach Miller – a 20-year enterprise-selling veteran and Vice President of Sales at Highspot. Together they compiled essential tips for both reps and managers to keep building pipeline, continue selling, and boost company culture and morale during an economic downturn.
WATCH: How To Build Pipeline And Keep Selling During A Recession
Spoiler alert: DON’T wait to implement these or fall into the analysis paralysis trap! Vigorous execution of these strategies ASAP is the best way to get ahead.
Top 3 Tips for Sales Reps
- Get Used to Selling to New Personalities
If you’re a rep, the likelihood of the CFO getting involved in your sale just got higher. They\’re often now the ones making the final decisions when it comes to implementing new tools and products and adding it to their existing budget. You may also want to get comfortable selling to procurement.
- Own Your Own Mindset
Don’t wait around for your managers to offer you more development, ask for it! If you’ve got goals you want to accomplish or skills you want to learn, do some of your own research first. Find the people who know what you want to know and utilize existing resources. Don’t make excuses for your own success – get out there and make it happen!
DOWNLOAD: Essential Virtual Selling Tips Guide
- Emphasize Loss, Not Gains
It might sound counterintuitive – but how many times do you think a decision maker has heard about all the money they’ll save if they just invest in [x] product? Probably about over a billion dollars worth! Finding ways to surpass the ROI and value your product adds by highlighting what they’re missing is the A+ solution right now.
Example: If you don’t buy today, you risk losing out on $100,000 a quarter.
(Looking for more tips on virtual selling? Factor 8 can provide the training and resources you need to excel. Learn more about our training and coaching services here. )
Top 3 Tips for Sales Managers + Leaders
- Get Involved Now
As a leader, it’s important you have a pulse on your reps’ activity without micromanaging. Both of you are in a critical atmosphere right now when it comes to sales – so make sure you aren’t waiting until there’s a problem or all hands are needed on deck before getting involved. Mitigating risk is important on both sides of the transaction!
- Protect Your Time
What’s the one thing you still have full control over? Your time! This is your best resource to utilize and protect. You may be inundated with “fire drills” from your reps – but making sure to prioritize and block off your schedule is still a crucial part of ensuring responsibilities are front and center.
READ MORE: Top 8 Sales Management Productivity Hacks
- Celebrate Wins
Quota is probably not the best way to motivate your reps right now if things are tight. So what can you do to keep culture motivated and morale high? Rethink your incentive structures! Shift from focusing on closed business to most leads, highest number of calls, or celebrate the smaller wins that might have previously been overlooked. When employees feel successful, they’ll also feel good about going back to work.
READ: Creative Tips for Rewarding Top-Performing Sales Reps
Remember: the economy is cyclical, so this downward turn isn’t forever. If you’re having a tough time adjusting to the new normal, take a deep breath and remind yourself this is a great opportunity to invest time into your personal training, building pipeline, and preparing for when business is back to booming. You’ll be ready!
Struggling to maintain your schedule? Do you want to take your team to the next level? Contact us today to learn about our available sales manager training programs.
Subscribe to our email list to receive new content, webinar invites, and training offers.
I’m in Sales [Live Event Recording]
I’m in Sales!
[Live Event Recording]
How to Have Difficult Conversations at Work
Difficult conversations are often dreaded and sometimes even avoided, but hey, let’s be honest, these are conversations that we need to have. Before I became Lauren’s sidekick (AKA Executive Assistant), I was in sales. I’ll be honest, I would find myself occasionally avoiding difficult conversations, sometimes at all costs, but that’s not going to help us grow and get results. LB was joined by four amazing ladies on a panel talking about how to overcome the temptation to avoid a conversation, how to prepare for the talk, and what to expect.
Our panelists included:
Shianne Sampson who has been working with great startups and technology companies across the U.S. to help build out world-class sales teams. She’s currently the VP of Sales & Customer Experience at PetDesk in San Diego as well as a freelance consultant.
Wendy Mitchell-Covington, National Vice President of Sales Success at TriNet, who is a high-energy, polished strategist who builds and scales sales organizations. Wendy has spent the last 20 years in the HR outsourcing space funneling her expertise into helping America’s businesses improve and thrive.
Brenda Roper who is the VP, Global Sales Enablement at Thomson Reuters based in Minneapolis. She’s also held many sales leadership roles but her passion is seeing behavior change as a result of training – and she’s trained over 15K sales people!
Natalie Servino who is the VP of Marketing for Chorus.ai. where everyday she gets to help B2B sales professionals win more. She oversees all marketing and sales development for Chorus, including product marketing, demand generation, and communications.
What Mistakes Are You Making When Having These Conversations?
- People don’t address the situation or the problem – they address the person and sometimes it feels like a personal attack. Our job is to help them understand how to do it right the next time.
- Delaying the conversation – this is never going to help the situation as it can continue to spiral and get worse.
- Not setting clear expectations up front on what you are asking of them.
- Managers should not have the conversation on the fly – instead think about what you want to say, plan the conversation, and the desired outcome.
Lauren used the Factor 8 COACHN℠ Model framework as a guide. This model is used for all sales manager meetings to help leaders provide consistency and embody coaching best practices. For difficult conversations, it’s called the E-COACHN℠ Model.
The “E” reminds us to maintain an employee’s self-esteem. It also reminds us there are four legs of research to do:
- A private location
- Ample time (double your best guess)
- Data or examples
- Desired goal
Once prep is done, we can follow the COACHN℠ Model to guide the conversation:
- Clarify Expectations: one sentence intro for the meeting – the “problem statement”.
- Observations: Talk about behavior you have observed, data you’ve seen. Not hearsay.
- Asking questions: can the employee explain what’s going on?
- Committing to action items – this is where the employee decides and commits to fixes.
- How can I help? Great managers offer to get involved where appropriate.
- Next steps – nailing down when we check back and what will be done.
Download the E-COACHN℠ Model here.
Tips & Tricks For Having Difficult Conversations
The panel shared so many awesome tips and stories. Here were a few that stood out:
- Make sure that you are ending the conversation helping them come up with a solution for the problem. We can show our faith in them and be encouraging. This helps maintain esteem.
- Follow-through is critical. Get next steps on the calendar and be accountable for your own actions AND measuring their progress and actions.
- The most difficult conversations that you encounter aren’t just performance conversations. When we enter them with the intent to help and learn, they will turn out OK – even the really embarrassing ones!
- Don’t expect to have all the answers. It’s smart to ask HR, a mentor, or a boss for guidance and to practice before having the difficult conversation.
Now for some GREAT Q&A between the audience and our panel:
1. How do you give feedback up the ladder? To superiors, leadership, or your boss.
Always start with your end in mind. What outcome are you seeking? Prepare, have an outline, have someone you trust review and practice. Ask your boss if you can have an open conversation to help propel the business, relationship or whatever it is further. Tell her or him that you have been hesitant to bring this up (if that is true) and that you are seeking to improve whatever it is you are going to discuss AND then go for it!
Remember, your boss can’t read your mind. Everyone is human and makes mistakes. Be prepared to hear feedback that you may not want. How will you react? Do your best to take the feedback as a gift, even if it is something that doesn’t make you feel good.
“Feedback is a gift” – This came up many times during the webinar. What an amazing perspective to help all parties navigate giving and receiving feedback.
2. How can you use difficult conversations with clients as an opportunity to strengthen the relationship?
Many difficult conversations with clients occur because the company that you work for can’t or won’t fulfill something the client wants or needs. Sometimes these occur because expectations were not met.
Honesty and timely communication will actually strengthen a relationship, versus harm it. The worst thing anyone can do is avoid the crucial conversation.
3. What is the best way to have these conversations with your boss. For example if you disagree with an approach or need to “manage up”.
This one is tricky because it really depends on what type of boss you have, you’ll need to gauge your boss’s openness to feedback and these types of conversations. That being said, start with clear expectations. I use a simple format of expectation setting which is: Here is what you should expect from me, and what should I expect of you? They will almost always say the right things: support, transparency, accountability, etc. If not make sure they cover what you need by asking the right questions. Then, once expectations are clear you can use those expectations to align on feedback, similar to the roleplay we did in the webinar. Let them know where expectations aren’t being met and be specific with examples, then provide actionable solutions. The most important part of managing up is for YOU to come with solutions, don’t just come with issues and expect them to solve. If you disagree with their approach it means you are not aligned on what protocol/expectations should be, so start there.
4. Do you have any tips on having difficult conversations remotely, e.g. via Zoom?
Eliminate distractions and make sure you plan as you would for face-to-face. Then always make sure that your video is eye-level and that you maintain eye contact. The rest conveys just as well through video as it does in person. If this is a conversation that is HR-related or could end in termination, you should have HR present or record the session for documentation.
5. How do you acknowledge a counter argument and listen without agreeing?
Depending on the situation, you might not have to agree, but you likely need to address the disagreement and how to move forward. So to start, you need to be OK with disagreement. If the disagreement is done the right way it can actually be productive and build trust! There is a time and place for rude and blunt disagreement, for example at political rallies and debates, however, for business professionals, the polite and respectful approach is always the right way to go. Here are some tips to make this type of difficult conversation productive:
- First, you need to understand that your argument is stronger when you acknowledge an opposing side! It shows that you have thought deeply about your argument or position.
- Be respectful and listen intently. Before you disagree make sure you listen and ask clarifying questions. Sometimes the idea being discussed is good, but the articulation of the idea is not good. Either way, you must actively listen to the other person, don’t just be thinking about your response. Note: it is important to be aware that active listening can give the other person the impression that you agree with them even if you don’t.
- Mirror the person who is disagreeing. A technique you can use is to respond by repeating what he or she has said. word for word. “Correct me if I’m wrong, but what you are saying is…” This helps people feel as though you have heard and understood them. This puts them in a position to listen more carefully to what you have to say.
- Validate the person who is disagreeing. Another approach is to express that you understand what they are saying (but not that you are agreeing). “It makes sense to me that…”. This approach helps to lower people’s defenses so that they are more open to what you have to say.
- Finally, be prepared to articulate how you can both “agree to disagree”. This shows that you are willing to recognize the other person’s point of view, but you do not agree.
6. How to disagree with your boss without getting fired.
We already know the complexities and tips to improve difficult conversations, but initiating one with your boss might be intimidating. However, it doesn’t have to be! If you have a good manager, disagreeing should not be an issue, it should just be another constructive conversation that you have. However, if you do not have a manager that is open to others’ opinions, here are a few additional tips.
- First, pick your battles wisely… you can’t and shouldn’t fight every battle!
- Carefully consider the time and place before you set up a meeting to discuss. If you believe your manager is not going to be receptive to your view, pick a time that is not stressful for him / her. Remember it is not just what you say, it is also about when you say it.
- Tread carefully and don’t make it personal. Stay positive, address the issue and focus on the facts.
- Use “I” statements. For example, “I see where you are coming from, but I am concerned about…”
- Ask questions! This will foster a collaborative discussion, rather than just your point of view. It is important that the conversation is not one sided. Questions are crucial for making your opinion more of a suggestion or request, rather than a mandate.
- Be prepared to confidently articulate the benefits of your position. You will likely be asked this so be prepared and be concise.
- No matter what, respect the final decision. Go into the conversation knowing that your boss does have the final say and be prepared to let it go and support the final decision if it does not go your way.
I hope you found these tips helpful!
If you’d like to watch the recording for our webinar on “Having Difficult Conversations With Ease”, just fill out the form below!
What’s Working? Top Tips from Sales Leaders
My third post in a series following our “Friends of Factor 8 Open Bar” with top leaders across multiple industries, this post will share the top tip that they brought to share of what’s working for them with their colleagues. The advice flows into four key areas: My team, My talk track, My training, and My strategy. Here’s the summary of what leaders shared:
1. My team:
Focusing on sales team morale: daily “stand ups” / 1:1 check in’s / WFH productivity tips / increased coaching / more communication / metrics and goal changes
2. My talk track:
Everyone is leading with empathy: longer conversations with customers about COVID effects on their business / more listening / more human connection and deeper learning
3. My training:
Using professional outside trainers for new ideas and motivation / mindset training / objection handling / resilience and persistence training and book clubs
4. My strategy:
Focusing on growing existing accounts / focusing on customer retention / focusing on long term partnerships and future opportunity / focusing on selling to different buyers (finance)
I like that we see more focus than ever on team morale and health. And I also love that folks are having more human connections with their customers. I hope we see overall consumer trust of sales people climbing fast into double digits.
My two favorite:
- We now have to sell to finance and that means we need some new sales tools, talk tracks, questions, proof points…
- Our people need new skills. Folks, I sell training for a living so of COURSE I love this one, but I love the topics discussed. Got a field team or a very new inside team? You need the phone skills we sell right now to help them work phones better and faster so they don’t die on their own out there. But things we ALL need (including me) are skills around resilience. YES! Mindset. Duh. Objection handling. HELL YEAH!
I hope you find these insights as helpful as I do. These conversations help me keep the pulse on public opinion, the health of sales and sellers, and the voice of the collective customer out there. Now is the time to share openly with each other and help us all get there.
Subscribe to our email list to receive new content, webinar invites, and training offers.
How to Show Empathy in Sales During COVID-19
Everyone’s talking about selling with empathy right now, but truth be told I’m not seeing it executed extremely well. Here are some quick tips I’ve pulled from our Expert Listening and Questioning courses to help.
Quick note: If you’re not seeing activity from your team right now, you have a training gap. They may know what you want, but feel uncomfortable in doing it. Talk with them 1:1 and do a training session on what you want, how it sounds, and help them practice to build confidence.
Empathy in sales works wonders when we’re evoking a true connection with our client or prospect. That means by the end of the conversation, we understand where they are AND how they are feeling about it. We won’t get that with just one question.
Just like how “normal pitches” are especially gross right now, “rote empathy” is too. Rote empathy is the single question before the pitch or sales process. It likely doesn’t include a follow-up question and may even skip waiting for an answer. Some examples I’ve received in the past week:
“Hi LB, trust all is fine with you in these crazy times. I’m writing to tell you about…”
“Hi LB, is all OK with you and yours?” Glad to hear it, I’m calling because…”
“Hi LB. How are you? It’s the new normal! Tell me, what is your team doing about…”
True empathetic selling comes from showing the speaker we care about them and their answers enough to dig another level or two deeper, internalize the answer, and then share in return. Try follow-up questions like:
“So, how are you coping this week?”
“How has your reaction changed over the past few weeks?”
“Tell me more about how your team is adapting”
“What are you and your colleagues focused on most during this crisis?”
“Describe the impact on your business. Your team. Your life.”
“What’s it like working from home?” “Are you also managing little ones or homeschooling?”
Even as I type these examples, it’s nearly impossible not to type 4 questions on each line as my second, third, fourth question. Empathy is in the follow-up.
Try this rule of thumb: Ask until you get something you can connect to. If you’re getting surface-level answers, ask about what’s been great or what’s been the toughest. Then be ready to share your own experience. Empathetic connection is a two-way street.
Remember, empathy is about being able to see life from the speaker’s point of view. It’s a walk in their shoes. Sympathy is feeling sorry for them, empathy is understanding and dare-say connecting with them.
Great empathetic exchanges follow questions with statements. “Catching phrases” that show you heard and even understand.
“That sounds like a real challenge.”
“You seem so resilient.”
“That must be hard.”
“I’d feel so frustrated in your shoes.”
It’s an active listening technique that builds some feeling into your response. Conversely, sympathy is more like:
“I’m so sorry for your struggles.”
“I’m really feeling for you right now.”
A business colleague only wants sympathy if they’ve lost a loved one, folks. Don’t feel sorry for them, try to understand how they are feeling and let them know you heard it.
Empathetic selling is also about timing. Right now we need to slow the sales cycle. If you normally got 10 pieces of information, a follow-up meeting, and a quote on call one, set that goal for call three or four. Let’s all agree to make call one about understanding and building empathy. Then let’s shoot for understanding their situation and challenges today. Not only will this prevent you from being in the “rote empathy” bucket, it will help show you the path to sell your solution – be it immediate or down the road.
Leaders, two last pieces of advice:
Dig into this with your teams. Invest in some training to build these skills so you’re not hurting your brand and future pipeline. (Need some help with this? We’ve added new courses to The Sales Bar focused on empathy and selling during COVID-19. Click here to request info.)
Secondly, take a look at changing some call goals with your teams. It could be your pressure that’s helping the team come off as insensitive right now.
Want to hear a REAL example of using empathy in sales?
Fill out the form below to access the call recording.