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		<title>THE COMPELLING REASON TO BUY: PART I, THE CURRENT BUSINESS ISSUE</title>
		<link>http://imperativeselling.wordpress.com/2011/10/03/the-compelling-reason-to-buy-part-i-the-current-business-issue/</link>
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		<pubDate>Tue, 04 Oct 2011 00:34:58 +0000</pubDate>
		<dc:creator>Enterprise Selling</dc:creator>
				<category><![CDATA[Enterprise Selling]]></category>
		<category><![CDATA[sales management]]></category>
		<category><![CDATA[sales training]]></category>
		<category><![CDATA[value selling]]></category>
		<category><![CDATA[compelling reason to buy]]></category>
		<category><![CDATA[creating opportunity]]></category>
		<category><![CDATA[decision maker]]></category>
		<category><![CDATA[demand generation]]></category>
		<category><![CDATA[enterprise selling]]></category>
		<category><![CDATA[increasing sales performance]]></category>
		<category><![CDATA[proposals]]></category>
		<category><![CDATA[qualfiying a sale]]></category>
		<category><![CDATA[Request for information]]></category>
		<category><![CDATA[Request for Proposal]]></category>
		<category><![CDATA[Request for Quotation]]></category>
		<category><![CDATA[RFP]]></category>
		<category><![CDATA[sales cycles]]></category>
		<category><![CDATA[sales enablement]]></category>
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		<category><![CDATA[sales methodology]]></category>
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		<description><![CDATA[Whether you’re battling other solution suppliers for your unfair share of discretionary budgets or your company is striving to cross the chasm to the larger market of mainstream adopters, knowing how to articulate a compelling reason to buy your solution is a critical skill. Most sizable orders are scrutinized by multiple people with a penchant [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=imperativeselling.wordpress.com&amp;blog=9638144&amp;post=86&amp;subd=imperativeselling&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>Whether you’re battling other solution suppliers for your unfair share of discretionary budgets or your company is striving to cross the chasm to the larger market of mainstream adopters, knowing how to articulate a compelling reason to buy your solution is a critical skill. Most sizable orders are scrutinized by multiple people with a penchant for asking questions in a<br />
quest to stop the purchase before it happens. As we kick off the fourth quarter, let’s review some basic concepts for articulating the compelling reasons to buy your solution.</p>
<p>In the Enterprise Selling methodology, we identify three components that make up the compelling reason to buy: the <strong>Current Business Issue</strong> (CBI), the underlying people/process/technology <strong>Challenges </strong>that are impeding the CBI, and the <strong>Impact </strong>of not resolving the CBI. This article will be dedicated to the CBI, with two more on the Challenges and Impact topics to follow.</p>
<p>The CBI is defined as the most important business issue that is currently on the radar of the contact. This inherently means that there may be more than one CBI if there are multiple stakeholders involved with the purchase of your solution. For example, while the CEO may be reeling from a board meeting where s/he was chastised for letting expenses get out of control,<br />
the CSO is still held accountable for hitting the revenue numbers on a quarterly basis and the VP of Engineering is still under pressure to make the committed product release schedule, among other issues for other stakeholders in the organization.  The more CBI’s we can address and the higher the level of CBI connection we can obtain will help our articulation of the compelling reason to buy our solution above other alternative uses of funds.</p>
<p>Let’s say you’re selling a Social Collaboration Platform for Enterprise customers. Given the example above, the vendor that is able to validate their solution will improve time to market by increasing collaboration in engineering, enhance the average contract value of new purchases by sharing best practices amongst the sales organization, and reduce expenses by capturing expert knowledge (instead of flying the waterwalkers to multiple meetings) is more likely to get approval than another vendor that simply articulates their solution as an interesting set of capabilities: “we can handle twice the Database size”, or “our code is certified by three independent industry coalitions”.</p>
<p>So how do we uncover the CBI’s? The first step is to do some basic research on the target prospect. It takes two minutes to look up a 10Q on the internet and scan for poor performance in a number of categories. It’s also a couple of mouse clicks to google “&lt;Customer Name&gt; News” producing a list of articles on recent news coming out of the organization. There are lots<br />
of industry analysts, press reporters and bloggers doing this work for you. You simply need to find them. I also advocate googling the name of the contact to see if they have been quoted recently on any relevant topic.</p>
<p>The second approach is to ask. You could start by saying, “<em>I noticed on your 10Q filing that expenses were up very high compared to last year. Is that a current sore spot?</em>” Or<br />
you could leave it wide open, “<em>Before we begin, I would like to shape our conversation about the issue that you care about most, how would you describe the most important business issue on your agenda?</em>” And finally, you could take an educated guess based on the contact’s<br />
role, industry, or other profiling factor, “<em>I talk to a lot of VP’s of Marketing who tell me that measuring the outcome of specific marketing campaigns is the most important issue on their agenda, is that the same for you?</em>” (This is also an example of leveraging the bowling alley analogy in Crossing the Chasm. Leverage the knowledge about why others bought your solution.)</p>
<p>But don’t stop with the first contact. This conversation needs to be repeated with every stakeholder to uncover the constellation of business issues that they care about, and finding as many as we can that we can address to increase the compelling nature of our value proposition.</p>
<p>Last point! When you find one or more CBI’s, use them! Every conversation, presentation, proposal or other communication should include a recap of your understanding of the CBI’s. “<em>Today’s presentation is targeted at how we can address your company’s need to reduce<br />
expenses, get your product to market faster, and sell larger transactions.<br />
Before we begin, are there any other business issues I should know about?</em>”  The more you reconfirm the CBI’s the more likely the prospect will hear the compelling reason to buy your solution, and the more likely they will repeat your message to other stakeholders that you<br />
don’t have access to.</p>
<p>In summary, the first leg of the compelling reason triangle is the CBI. Next time, I’ll examine the role that underlying <strong>Challenges</strong> play in the articulation of the compelling reason to buy your solution.</p>
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		<title>Uncovering Impact or Value; The art behind the science of motivating prospects</title>
		<link>http://imperativeselling.wordpress.com/2011/09/14/uncovering-impact-or-value-the-art-behind-the-science-of-motivating-prospects/</link>
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		<pubDate>Wed, 14 Sep 2011 18:34:09 +0000</pubDate>
		<dc:creator>Enterprise Selling</dc:creator>
				<category><![CDATA[Enterprise Selling]]></category>
		<category><![CDATA[sales management]]></category>
		<category><![CDATA[sales training]]></category>
		<category><![CDATA[value selling]]></category>
		<category><![CDATA[enterprise selling]]></category>
		<category><![CDATA[increasing sales performance]]></category>
		<category><![CDATA[qualfiying a sale]]></category>
		<category><![CDATA[sales cycles]]></category>
		<category><![CDATA[sales enablement]]></category>
		<category><![CDATA[sales methodology]]></category>
		<category><![CDATA[sales methodology adoption]]></category>
		<category><![CDATA[sales training adoption]]></category>
		<category><![CDATA[top sales challenges]]></category>

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		<description><![CDATA[When I began marketing the first value selling course in the mid 90’s, “value” quickly became a buzz word. The intent was to uncover the value of making a change to motivate the prospect to take action faster and bigger. Unfortunately, it quickly morphed into another way of saying “differentiation”. “Our value is our ability [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=imperativeselling.wordpress.com&amp;blog=9638144&amp;post=84&amp;subd=imperativeselling&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<h1></h1>
<p>When I began marketing the first value selling course in the<br />
mid 90’s, “value” quickly became a buzz word. The intent was to uncover the<br />
value of making a change to motivate the prospect to take action faster and<br />
bigger. Unfortunately, it quickly morphed into another way of saying<br />
“differentiation”. “Our value is our ability to handle a much larger database”<br />
for example (differentiation), versus “It sounds like you are spending $10K a<br />
month to manually implement changes in your process” (value).</p>
<p>I have since renamed the subject “Impact” to denote the<br />
actual concept better and distance it from the mislabeled but complimentary<br />
skill of differentiating. Either way, the objective is to uncover the cost of<br />
taking or not taking action in both measurable outcomes and intangible<br />
implications. I’ve found that many sales people, when first introduced to the<br />
skill, struggle to get the subject uncovered with their prospects. If they fail<br />
the first few times, they tend to give up on the objective to the detriment of<br />
their future sales cycles. To aid the first timer, I’ve gathered a few<br />
suggestions.</p>
<p>To begin with, the visibility of impact can vary greatly<br />
depending on the person’s role in the organization, their level in the<br />
organization, their ability to translate tactical to strategic, and the<br />
questions you ask. So it’s not always an easy task to uncover impact, but it<br />
can be. I once met with a person from Apple Computer (as it was called then)<br />
and he started the meeting  by telling me<br />
that they were spending tens of thousands of dollars a day fixing manufacturing<br />
problems on the shop floor, not in the design department where they should be<br />
fixed. He had the ability to translate tactical activities into a strategic<br />
initiative that required action and he shared it without my prompting. But<br />
that’s not always the case.</p>
<p>So where do we start?</p>
<p>If you’re a student of the Enterprise Selling methodology,<br />
you know that the discovery process includes diagnosing the problems or<br />
challenges the prospect is living with, and connecting those unresolved<br />
challenges to a business issue like revenue, cost management, market share,<br />
etc… When that is done effectively, we have the starting place for uncovering Impact.</p>
<p>I suggest starting with the two most basic premises for<br />
uncovering impact: 1) Uncover any currently known measurable ramification of<br />
the challenges or business issue, and 2) Identify currently measured goals,<br />
especially those that are proving to be troublesome.</p>
<p>In the first case, I usually ask the prospect to “size” each<br />
of the problems or challenges that we’ve uncovered. Has there been a measurable<br />
pain associated with each obstacle? I’m ultimately looking for dollars, but<br />
could start with time lost or wasted, contrasts to best case or other<br />
competitors, etc… And then try to work with the prospect to convert the<br />
percentages or other metrics into dollars. For instance if I’m selling a<br />
solution that could reduce the number of people required to manage a process<br />
from four down to one, I would ask if they had a standard burden rate for this<br />
type of personnel, scale it by three people and come up with a hard dollar<br />
figure.</p>
<p>In the event that this path doesn’t produce results, or even<br />
if it does, I would also ask if there are current metrics for the organization<br />
that might be relevant. Here’s where it gets interesting. Some people are<br />
motivated by a goal, and if they see my solution as helping them reach their<br />
goal, then the goal itself is the motivating impact statement. i.e, My<br />
understanding is that you want to achieve $1M in new product bookings by the<br />
end of year”. However, some people are motivated by the gap. In this case, I<br />
would ask what the goal is, but also what the current shortfall looks like. “So<br />
what I’m hearing is that you want to achieve $1M in new product bookings by the<br />
end of the year, but you’re only on track to book $750K, is that right?” I<br />
might go further by restating it as “so it sounds like we have a $250K problem,<br />
would you agree?”</p>
<p>How do I know when to ask about goals or gaps? I try to<br />
determine from my conversation if the person is an innovator or a re-aligner.<br />
Meaning, do they anticipate and change to meet opportunity before there is any<br />
pain, or are they changing because they are feeling pain. The innovator is<br />
motivated by new goals in a proactive sense; the re-aligner is motivated by<br />
gaps in goals in a reactive sense.</p>
<p>Lastly, whatever the quantifiable impact, it can pale in<br />
comparison to the personal impact. People tend to make a purchasing decision<br />
with their own interests in mind, while using the quantifiable impact as the<br />
rationale. With this mind, a follow up question that gets the prospect to think<br />
about the personal value proposition is worthwhile. “So if we overcome this<br />
shortfall, how will that impact you personally?” Or “If you are unable to<br />
overcome this shortfall, how will that impact you personally?”, purposely<br />
selecting the question based on the prospect’s orientation toward being<br />
proactive or reactive.</p>
<p>To get the real answer, our trust, credibility and rapport<br />
will have to be really high; however, even if they don’t answer the question<br />
with a straightforward response, you will have caused them to go to that place<br />
in their mind. We want them to recognize career implications (both good and bad),<br />
prestige, eliminating frustration, getting accolades, etc… and be motivated for<br />
their own reasons. Sometimes, its triggered by a question they won’t answer for<br />
anyone but themselves.</p>
<p>Final thought: getting this information is only half of the<br />
value to you as the seller. Now you want to make sure the prospect is crystal<br />
clear on the impact of buying or not buying your solution. Recap the<br />
information in an email, during the next presentation, or before beginning a<br />
demonstration. The more we can have them recognize the impact, the faster they<br />
are going to want to make a purchase. The only caution is that you can’t always<br />
replay the personal impact component, especially in a public format. So<br />
consider alluding to it with something like, “… and you also implied that this<br />
was important to your personally as well”.</p>
<p>Try these basic approaches out, and let me know how it goes.<br />
I’m also available if you’d like some advice on the current opportunity you’re<br />
developing.</p>
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		<title>Use Early Wins to Create a Rally in Your Sales Transformation</title>
		<link>http://imperativeselling.wordpress.com/2011/06/21/use-early-wins-to-create-a-rally-in-your-sales-transformation/</link>
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		<pubDate>Wed, 22 Jun 2011 00:07:23 +0000</pubDate>
		<dc:creator>Enterprise Selling</dc:creator>
				<category><![CDATA[sales training]]></category>
		<category><![CDATA[increasing sales performance]]></category>
		<category><![CDATA[sales cycles]]></category>
		<category><![CDATA[sales enablement]]></category>
		<category><![CDATA[sales leadership]]></category>
		<category><![CDATA[sales management]]></category>
		<category><![CDATA[sales methodology]]></category>
		<category><![CDATA[sales methodology adoption]]></category>
		<category><![CDATA[sales training adoption]]></category>
		<category><![CDATA[top sales challenges]]></category>

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		<description><![CDATA[A short note for today since I&#8217;m posting from my new tablet. As many of you know, one of the keys to a successful sales transformation is to rack up some early wins. These are successes that indicate your team is on the right track and can be achieved in 30, 60 and 90 days. [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=imperativeselling.wordpress.com&amp;blog=9638144&amp;post=78&amp;subd=imperativeselling&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>A short note for today since I&#8217;m posting from my new tablet. As many of you know, one of the keys<br />
to a successful sales transformation is to rack up some early wins. These are<br />
successes that indicate your team is on the right track and can be achieved in<br />
30, 60 and 90 days. If your transformation goal is to move from product<br />
centricity to customer centric for example, the journey may take a year or more<br />
until the culture is supporting the transition. But most people will lose focus<br />
on a long term transformation if they don’t see short term gains. They need to know they are making progress along the way.  They can be simple milestones that are a subset of the overall objective. Some examples<br />
might include achieving 3 sales calls on a new type of stakeholder (business<br />
unit outside of IT for example), or an increase in the attach rate for a new<br />
product.</p>
<p>Much like baseball, where base hits can create a rally: Early<br />
wins help build momentum, keep people focused and create the basis for your<br />
rally. I read a recent article connecting baseball rallies to transformations…  <a href="http://www.linkedin.com/nus-trk?trkact=viewShareLink&amp;pk=network_update_discussion&amp;pp=0&amp;poster=18654774&amp;uid=5488605788505120768&amp;ut=NUS_UNIU_SHARE&amp;r=&amp;url=http%3A%2F%2Fwww%2Elinkedin%2Ecom%2Fshare%3FviewLink%3D%26sid%3Ds435868796%26url%3Dhttp%253A%252F%252Ftinyurl%252Ecom%252F3wne9zr%26urlhash%3DsYR0%26uid%3D5488605788505120768%26trk%3DNUS_UNIU_SHARE-lnk&amp;urlhash=xdeS&amp;goback=%2Enmp_*1_*1_*1_*1_*1_*1" target="_blank">http://tinyurl.com/3wne9zr</a></p>
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		<title>To RFP or Not to RFP, That is the Question!</title>
		<link>http://imperativeselling.wordpress.com/2011/03/31/to-rfp-or-not-to-rfp-that-is-the-question/</link>
		<comments>http://imperativeselling.wordpress.com/2011/03/31/to-rfp-or-not-to-rfp-that-is-the-question/#comments</comments>
		<pubDate>Thu, 31 Mar 2011 22:54:28 +0000</pubDate>
		<dc:creator>Enterprise Selling</dc:creator>
				<category><![CDATA[Uncategorized]]></category>
		<category><![CDATA[increasing sales performance]]></category>
		<category><![CDATA[Request for information]]></category>
		<category><![CDATA[Request for Proposal]]></category>
		<category><![CDATA[Request for Quotation]]></category>
		<category><![CDATA[RFI]]></category>
		<category><![CDATA[RFP]]></category>
		<category><![CDATA[RFQ]]></category>
		<category><![CDATA[sales cycles]]></category>
		<category><![CDATA[sales enablement]]></category>
		<category><![CDATA[sales leadership]]></category>
		<category><![CDATA[sales management]]></category>
		<category><![CDATA[sales methodology]]></category>
		<category><![CDATA[sales methodology adoption]]></category>
		<category><![CDATA[sales training adoption]]></category>
		<category><![CDATA[top sales challenges]]></category>

		<guid isPermaLink="false">http://imperativeselling.wordpress.com/?p=72</guid>
		<description><![CDATA[No matter what you call it, RFP, RFI, or RFQ… the success rate for winning unsolicited requests for proposals are dismal. If a buyer sends out 10 bid requests for an RFP, statistically each vendor only has a 1 in 10 chance of winning. That’s much worse than a normal 1 in 3 win rate [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=imperativeselling.wordpress.com&amp;blog=9638144&amp;post=72&amp;subd=imperativeselling&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>No matter what you call it, RFP, RFI, or RFQ… the success rate for winning unsolicited requests for proposals are dismal. If a buyer sends out 10 bid requests for an RFP, statistically each vendor only has a 1 in 10 chance of winning. That’s much worse than a normal 1 in 3 win rate for most line items on an average sales rep’s forecast.  But if the RFP is rigged for a single vendor, then all the other vendors have zero chance of winning.</p>
<p>So, back to the question, do you bid? I’ll say it depends. I’ve helped many companies improve their RFP win rate, usually very dramatically. But the strategy is very heavily dependent upon knowing which RFP request to ignore. The best way to ascertain if you should walk is to test the RFP. Here are a few of my favorite test points:</p>
<h3>Posture</h3>
<p><strong><em>“As the leader in an industry that is growing dramatically, we don’t have the luxury to respond to unsolicited RFP’s. If you would like to evaluate our solution for your needs, we’ll need to engage in a dialog about your business in a more direct manner.”</em></strong></p>
<p>One of the best methods for increasing your win rate and reducing wasted sales cycles on unwinnable RFP’s is to posture you way out of the process altogether. Although ideal, this strategy usually only works for the leaders in an industry and has to be truly aligned with a buying frenzy.  </p>
<p>One of my clients recently hosted a prospective CIO customer during a headquarters visit. After the VP of Sales gave a very energetic overview, the CIO implied that the next step would to tender an RFP for response. The VP of Sales responded with a solid posturing strategy, “As you know, our technology is in the perfect storm of opportunity, market leadership, and high growth. We don’t do RFP’s, we can’t afford to.” The CIO responded, “Yeah, I can see your point. OK, we’ll skip the RFP and go direct to an evaluation phase.” That’s how the posturing is supposed to work.</p>
<h3>Test their Resolve and Intention</h3>
<p>Of course, not everyone is a market leader in a perfect buying storm, and when a quota has to be met, every opportunity should be evaluated. (Notice I said evaluated, not pursued.) I suggest a series of tests to determine their intentions about your solution and to improve your position should you decide to pursue.</p>
<p><strong>The Shadow Story</strong></p>
<p>I worked with an experienced sales management professional who had a saying, “An RFP is the shadow of the story.” What he meant was when you receive the RFP it’s focused on the requirements. What’s missing are the reasons behind the RFP. What unresolved business issue is driving the RFP? What specific people/process/technology challenges were linked to each solution requirement? How big are these problems in terms of money, lost opportunity or other value proposition?</p>
<p>The first place to test an RFP is to ask the prospect if they can share the story behind the RFP. If they refuse, you’re not on solid ground. But if they agree, you have some indication that you are needed in their RFP process either as their first choice (good footing) or an important price/functionality reference point (not so good).</p>
<p>This is your opportunity to not only understand the story behind the RFP, it’s also a chance to change it. This is where the next test comes into play.</p>
<p><strong>Adding Challenges and Requirements</strong></p>
<p>If you have the opportunity to hear the story behind the RFP, you have an opportunity to change the story. This is where you look for problems or challenges that have not been identified, link to your differentiators, and have value for the prospect. There is always something they overlooked.</p>
<p>If they accept the suggestion to change the RFP to incorporate the challenges and associated required solution capabilities you suggested, you have another favorable data point. If they refuse, you have a negative data point.</p>
<p><strong>Reprioritizing Challenges and Requirements</strong></p>
<p>Sometimes you have a capability that differentiates your offering. Look for the opportunity to get a priority ranking of key capabilities. If you have a differentiator that is low on the list, ask about the pain associated with the challenge it addresses. The more pain the higher it should be on their priority list. Conversely, look for competitor’s differentiators. If they are higher on the list, a review of the pain (or lack thereof) behind the associated challenge could help to lower the priority of a capability that you can’t address as well.</p>
<p>If the prospect engages you in the reprioritization dialog and responds favorably to suggested changes in priorities, you have another favorable data point. If they refuse, note the negative data point.</p>
<p><strong>Trade Offs</strong></p>
<p>There will be occasions where you can’t address a capability as described in the RFP, or you address it differently. This is where you request a trade off. You’re trying to get the customer to accept an alternative capability or trade a different capability for the one they specified. If they accept, your position is stronger, if they reject the request, you have another negative data point on your position.</p>
<p><strong>Stakeholders</strong></p>
<p>Another test is to request access to the stakeholders that would benefit from the solution. If they allow the request, you have a stronger foothold, and you may be in a better position to influence changes to the RFP. If they deny the request, you have another data point that may indicate your solution is not valued.</p>
<p><strong>Date of Submission</strong></p>
<p>Another good test point is to ask the prospect if you can be late for the submission date, whether you need it or not. If they agree to accept your submission late, it may be an indicator that you are valued in their RFP. If they reject your request, you have another data point that doesn’t indicate a position of strength.</p>
<p><strong>Conditional No-Bid</strong></p>
<p>At one point in my sales leadership career, my sales team came to me with a very comprehensive RFP tendered by a large corporation. The sales team wanted to secure a large technical team to spend several weeks assembling our response. I said, “No”.  One of our competitors was the incumbent in the account and we had no role in building the specification for the RFP. So I asked for an audience with the RFP committee. My sales team relayed the request and the RFP committee agreed to meet with me.</p>
<p>During the meeting I requested the story behind the story. They declined to share any information. Then I asked if they could extend a longer period of time for our response.  They said if we wanted to compete, we had to play by their rules. Then I asked for access to the stakeholders that would benefit from the purchase. Once again they said, “No”.</p>
<p>I walked away from that meeting with the feeling that we were not their favored vendor. When I got back to my office, I wrote a contingent no-bid letter. I addressed it to the CEO of the company.</p>
<p>In my letter, I explained that we were the leader in our industry, that we were excited about the opportunity to potentially add value to their business, and so on. But, I explained that without more information about the circumstance that brought this requirement to the surface, we could not possibly tender a proposal that would hit their business needs as well as we probably could. I suggested that if the circumstances were to change, and they were willing to share the information, we would be happy to submit a proposal, but in the meantime, we had to decline the RFP. This is what I call a contingent no-bid. I leave the door open, but decline under the current conditions.</p>
<p>A few days later I received a phone call from the CFO of the company. He said the CEO had asked him to get back to me personally. He told me that there was no budgeted purchase planned. He also explained that this group of people were in-between projects and were being funded by a training budget until they were assigned to a project. In other words, there was never going to be a purchase. He apologized for the confusion and asked me if there was anything else he could do for me. I said, “yes, there is!” I asked for a meeting with the CEO and the CFO to simply describe how we could address their business challenges better than the vendor who was currently supplying their solution. He said he would look into it. (I eventually got the meeting). More importantly… I asked him to please not share the information he just disclosed with the other vendors involved in the RFP. He laughed and said he would let it run another 30 days before shutting it down.</p>
<p>A contingent no-bid is an effective test for determining if the prospect needs your response. If they do, they will call you back and attempt to talk you into the response. If they don’t, you were not going to win, and best case, you were only there for pricing comparisons. Better still, if worded correctly, it leaves the door open if the circumstances change.</p>
<h3>Improving Your RFP Hit Rate</h3>
<p>The quest to improve your RFP hit rate is highly dependent upon setting a goal to NOT reply to blind unsolicited RFP’s. If you can posture your way out of responses you’ll save a lot of resources and project yourself as the most attractive solution. But if you have to reply to win, you can use the strategies listed about to improve your position and test the reality of your chances for winning. If the tests indicate a weak position, you should feel good about walking away from the situation before you invest any resources into the response. After all, if there’s no way for you to win, the unsolicited RFP robs you twice. First because you can’t win this deal, but they also rob you of the time you could have spent on any opportunity that you could have won.</p>
<p>Let me know if you’d like a copy of our RFP response checklist and good selling!</p>
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		<title>&#8220;You All Are a Bunch of Coal Miners in a Gold Mine&#8221;</title>
		<link>http://imperativeselling.wordpress.com/2011/03/09/you-all-are-a-bunch-of-coal-miners-in-a-gold-mine/</link>
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		<pubDate>Thu, 10 Mar 2011 01:32:39 +0000</pubDate>
		<dc:creator>Enterprise Selling</dc:creator>
				<category><![CDATA[Uncategorized]]></category>
		<category><![CDATA[increasing sales performance]]></category>
		<category><![CDATA[sales cycles]]></category>
		<category><![CDATA[sales enablement]]></category>
		<category><![CDATA[sales leadership]]></category>
		<category><![CDATA[sales management]]></category>
		<category><![CDATA[sales methodology]]></category>
		<category><![CDATA[sales methodology adoption]]></category>
		<category><![CDATA[sales training]]></category>
		<category><![CDATA[sales training adoption]]></category>
		<category><![CDATA[top sales challenges]]></category>

		<guid isPermaLink="false">http://imperativeselling.wordpress.com/?p=63</guid>
		<description><![CDATA[When I first heard these words come out of Hank Johnston’s mouth &#8211; they stung. I wasn’t sure why they stung, but I knew it was not meant as a compliment. Hank was the new member on the board of directors. Our CEO had sent him to me to talk about our sales engagement process. [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=imperativeselling.wordpress.com&amp;blog=9638144&amp;post=63&amp;subd=imperativeselling&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>When I first heard these words come out of Hank Johnston’s mouth &#8211; they stung. I wasn’t sure why they stung, but I knew it was not meant as a compliment.</p>
<p>Hank was the new member on the board of directors. Our CEO had sent him to me to talk about our sales engagement process. Hank had recently retired from EDS and had spent many of his years there very close to Ross Perot. After I described our engagement process, he shook his head, lifted his feet up and rested his cowboy boots on my desk. He put his hands behind his head and said, “Son, we got some work to do”.</p>
<p>I asked him what he meant by the coal miner statement. He said, “Your sales people slog through this long, dark tunnel every day in order to hack away at the wall for a few sacks of coal. On their way through the tunnel, they keep kicking these yellow rocks out of the way. What they don’t know is those rocks are gold.”</p>
<p>What I came to learn and appreciate was that our sales people were closing $50,000 deals when there were $500,000 deals to be closed. They were tactically focused when there was a strategic opportunity.</p>
<p>That’s when I learned to focus on the business issues of the customer. If they have a business issue that you can help them solve, your solution is worth a lot more to them, and gets higher level attention. We started closing bigger and bigger deals. Soon $5M, $10M and $20M deals were coming in the door.</p>
<p>I conduct lots of opportunity reviews for my clients. Partly to add value to each individual sales rep, but also to reinforce the process I’ve previously introduced. Each review starts with a question about the customer’s current business issues. Most often I hear about the initiative they have to change THIS technology, or implement THAT capability. The concept escapes most sales people, even if they’ve been trained to understand the difference between a business issues and a technology challenge or solution.</p>
<p>I think it’s because they take their customer’s word for it. When they ask their customers what the most critical business issue is, the customer tells them what they think they want to hear… “we’re looking for a solution to do “X””. But that’s not what we’re asking. We’re really asking “why are you looking for a solution to do “X”? What’s driving this requirement? Is it tied to revenue generation? Cost management? Quality problems? Regulatory changes? We want to find the story behind the story.</p>
<p>Soon after my encounter with Hank, one of our top sales reps was delivering his territory plan for the year. When his largest account had a zero next to it on his spreadsheet I had to ask what was going on. This account had generated over $1M a year for several years, and now he was forecasting zero for the entire year. He went on to explain that they canceled 4 of their 5 products. As a result of their scaling back, a majority of their people were looking for new jobs. He concluded they would be quickly oversaturated with our products and the place would be a ghost town.</p>
<p>Our top tier sales rep was looking at this as a justifiable buying objection, but the more I dug in, the more I saw yellow rocks and concluded this as a business issue that we could solve. I told him to get an appointment with the general manager of the division.</p>
<p>When we met with the GM, he explained that the market had consolidated and their broad product line was no longer necessary, so they were scaling back to their flagship product. But a byproduct of this scale back was their best people were shopping their resumes. They concluded it was a sinking ship so they should get out while the timing was good. Now he was concerned about his basic ability to deliver the next generation of their core product.</p>
<p>We came back to him with a creative proposal: Sell us your entire team for $1. Then contract with us directly to design your core product. Your people will land in a growing and interesting company, they won’t have to relocate, we can have them work on other projects, and we can deliver your product to you on time. He was ecstatic. The result was a $75M services contract that set the bar for our largest deal size, and we found a staffing solution to our fast growing services business.</p>
<p>There’s hardly a day that goes by that I’m not reminded about Hank’s statement. There are lots of coal miners out there. The real question is, how much gold are you leaving on the table by not digging deeper for the real business issue?</p>
<p>Let me know if you’d like to see how much gold is on the table. I will conduct three opportunity reviews for $900. If I don’t earn that back for you in spades, you keep the money.</p>
<p>My offer alone has some implication. Are you the coal miner or the gold miner?</p>
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		<title>The Transition to a Better Economy Has Some Potholes for Sales</title>
		<link>http://imperativeselling.wordpress.com/2011/02/08/the-transition-to-a-better-economy-has-some-potholes-for-sales/</link>
		<comments>http://imperativeselling.wordpress.com/2011/02/08/the-transition-to-a-better-economy-has-some-potholes-for-sales/#comments</comments>
		<pubDate>Wed, 09 Feb 2011 00:25:52 +0000</pubDate>
		<dc:creator>Enterprise Selling</dc:creator>
				<category><![CDATA[Uncategorized]]></category>
		<category><![CDATA[increasing sales performance]]></category>
		<category><![CDATA[Lead Nurturing]]></category>
		<category><![CDATA[sales cycles]]></category>
		<category><![CDATA[sales enablement]]></category>
		<category><![CDATA[sales leadership]]></category>
		<category><![CDATA[sales management]]></category>
		<category><![CDATA[sales methodology]]></category>
		<category><![CDATA[sales methodology adoption]]></category>
		<category><![CDATA[sales training]]></category>
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		<guid isPermaLink="false">http://imperativeselling.wordpress.com/?p=65</guid>
		<description><![CDATA[There are many signs that the economy is turning for the better; the Dow Jones index is at a three year high, consumer spending is also at a three year high and from my own perspective, my entire customer list exceeded their operating plans for 2010. No small feat for a group of companies that [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=imperativeselling.wordpress.com&amp;blog=9638144&amp;post=65&amp;subd=imperativeselling&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>There are many signs that the economy is turning for the better; the Dow Jones index is at a three year high, consumer spending is also at a three year high and from my own perspective, my entire customer list exceeded their operating plans for 2010. No small feat for a group of companies that was responsible for over $3 billion in revenues for 2010. Surprisingly, as the economy continues to improve, the transition can catch many sales professionals on their heels if they don’t keep the contrast in perspective. Although it seems counterintuitive, their productivity can decrease as the economy improves. This article is about one of those potholes.</p>
<p>With purse strings loosening up, there are many B2B buyers who now have a little money to spend, but not always enough to warrant your time, or enough to cover all the solutions they need to improve their business. This creates a risk in time management and overall productivity. While these buyers may feel empowered because they now have the green light to start spending a little more, they could end up being a waste of time for many sellers.</p>
<p>During a slow economy, many sellers hone their qualifying skills, but during a positive economic transition, sharpening their disqualifying skills may be just as important. Disqualifying is the skill of determining when to walk away from a prospect, even when they are demonstrating strong interest. After all, a prospect who doesn’t buy is actually robbing the seller twice. First they take your time without a return on your investment, and second, they take your time away from another prospect that could have made a purchase.</p>
<p>To understand disqualification, we’ll start with the definition of a qualified buyer. In the simplest terms, a qualified prospect has to have enough money available (notice I didn’t say “budget”, since this can be overcome with higher authority levels), and has an urgent issue that needs to be resolved because it’s costing their company money or lost opportunity.</p>
<p>Using this definition, consider getting answers to the following three questions:</p>
<ol>
<li>What business issue is driving you to look at this solution?</li>
<li>What underlying people/process/technology challenges are making this business issue difficult to resolve?</li>
<li>What’s the impact of addressing or not addressing this issue?</li>
</ol>
<p>The first question helps to uncover if there is a strategic aspect to the situation. This helps to open doors higher in the organization to secure executive level sponsorship, especially if lower level budgets are not sufficient to cover the cost of your solution. The second question helps you to establish the basis for your differentiation in the face of direct competition. You are looking for problems that only your solution can address, or addresses better than the competition. And the third question helps to prioritize your initiative over other initiatives that may not be directly competitive to your capabilities but are competitive as an alternate use of funds.</p>
<p>Should you find yourself in the common situation where the prospect contact doesn’t have the answer to any or all of these questions there is a fall back question:</p>
<ol>
<li>Can you introduce me to someone who could answer these questions?</li>
</ol>
<p>The answer to this question is the true test of the potential for a wasting your time. If the contact denies an introduction and can’t answer all of the first three questions effectively, you have a high probability for a “no decision” outcome. This is a situation where you should finesse them back into the lead nurturing queue and target them for follow up next quarter or the one after. If they agree to take you to another contact in their organization, repeat the same process until you are able to qualify the prospect.</p>
<p>As the economy heats up, you are bound to have more people that are willing to talk to you than you probably encountered in the previous three years. While this may feel great and be an encouraging sign, it can also become a productivity challenge, especially if your quota assignment has increased significantly. Disqualifying those contacts that don’t have a high probability for a purchase can open up more time for prospects than can buy, and buy in higher amounts.</p>
<p>One of our clients is citing 20% more deals per rep as a result of their focus on disqualifying leads that can’t answer these basic questions or refuse to engage other stakeholders that can. They are also tracking 19% higher average contract value by focusing on opportunities where they are more strategic to the customer’s business. Imagine what your productivity would be if you closed 20% more opportunities than you did last year with a 19% higher contract value!</p>
<p>Are you committed to avoiding one of the most significant sales potholes in 2011? Then start disqualifying some of your prospects.</p>
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		<title>Optimizing Sales Performance 2010 eBook from CSO Insights</title>
		<link>http://imperativeselling.wordpress.com/2010/04/19/optimizing-sales-performance-2010-ebook-from-cso-insights/</link>
		<comments>http://imperativeselling.wordpress.com/2010/04/19/optimizing-sales-performance-2010-ebook-from-cso-insights/#comments</comments>
		<pubDate>Mon, 19 Apr 2010 18:38:02 +0000</pubDate>
		<dc:creator>Enterprise Selling</dc:creator>
				<category><![CDATA[sales training]]></category>
		<category><![CDATA[decision maker]]></category>
		<category><![CDATA[increasing sales performance]]></category>
		<category><![CDATA[lead scoring]]></category>
		<category><![CDATA[qualfiying a sale]]></category>
		<category><![CDATA[sales cycles]]></category>
		<category><![CDATA[sales enablement]]></category>
		<category><![CDATA[sales leadership]]></category>
		<category><![CDATA[sales management]]></category>
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		<category><![CDATA[sales methodology adoption]]></category>
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		<category><![CDATA[top sales challenges]]></category>

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		<description><![CDATA[This ebook has 4 stories written by CSO&#8217;s who have led their teams through major transformations. I found three of the stories very compelling given the circumstances in the economy. I can forward a copy by permission. Please send me an email kevin@enterprise-selling.com for a copy.<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=imperativeselling.wordpress.com&amp;blog=9638144&amp;post=61&amp;subd=imperativeselling&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>This ebook has 4 stories written by CSO&#8217;s who have led their teams through major transformations. I found three of the stories very compelling given the circumstances in the economy. I can forward a copy by permission. Please send me an email <a href="mailto:kevin@enterprise-selling.com">kevin@enterprise-selling.com</a> for a copy.</p>
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		<title>The Perfect Storm in Sales</title>
		<link>http://imperativeselling.wordpress.com/2010/04/16/the-perfect-storm-in-sales/</link>
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		<pubDate>Fri, 16 Apr 2010 17:02:47 +0000</pubDate>
		<dc:creator>Enterprise Selling</dc:creator>
				<category><![CDATA[sales training]]></category>

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		<description><![CDATA[I was recently interviewed by Jeff Ogden, aka The Fearless Competitor. CSO Insights cites a perfect storm in sales because more sales people are not achieving their quotas than ever before. Here&#8217;s a link to the interview http://bit.ly/dNVzu7<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=imperativeselling.wordpress.com&amp;blog=9638144&amp;post=58&amp;subd=imperativeselling&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>I was recently interviewed by Jeff Ogden, aka The Fearless Competitor. CSO Insights cites a perfect storm in sales because more sales people are not achieving their quotas than ever before. Here&#8217;s a link to the interview <strong><a href="http://bit.ly/dNVzu7">http://bit.ly/dNVzu7</a></strong></p>
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		<title>What would Clint Eastwood say about Consultative Selling?</title>
		<link>http://imperativeselling.wordpress.com/2010/03/31/what-would-clint-eastwood-say-about-consultative-selling/</link>
		<comments>http://imperativeselling.wordpress.com/2010/03/31/what-would-clint-eastwood-say-about-consultative-selling/#comments</comments>
		<pubDate>Wed, 31 Mar 2010 23:45:36 +0000</pubDate>
		<dc:creator>Enterprise Selling</dc:creator>
				<category><![CDATA[sales training]]></category>
		<category><![CDATA[increasing sales performance]]></category>
		<category><![CDATA[Lead Nurturing]]></category>
		<category><![CDATA[sales leadership]]></category>
		<category><![CDATA[sales methodology]]></category>
		<category><![CDATA[sales training adoption]]></category>
		<category><![CDATA[top sales challenges]]></category>

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		<description><![CDATA[Remember the movie “The Gauntlet” with Clint Eastwood? He’s been ordered to pick up a prisoner and deliver her to the courthouse a few hundred miles away. What he doesn’t know at the time is that he was selected to fail. As the plot progresses, it seems like everyone is out to kill him. The [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=imperativeselling.wordpress.com&amp;blog=9638144&amp;post=49&amp;subd=imperativeselling&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>Remember the movie “The Gauntlet” with Clint Eastwood? He’s been ordered to pick up a prisoner and deliver her to the courthouse a few hundred miles away. What he doesn’t know at the time is that he was selected to fail. As the plot progresses, it seems like everyone is out to kill him. The conspiracy runs right up to and includes the police commissioner. The same goes for sales reps that are chartered to sell consultatively. It’s almost as if everyone is against them as well.</p>
<p>I know many of you would conclude that the sales rep is the first obstacle. I’ve heard, “their strength becomes their weakness”, insinuating their product expertise becomes their own downfall. But let’s assume for the moment, they just completed the world’s best consultative sales training and they are anxious to engage their first real prospect since their workshop.</p>
<p>The first obstacle is the customer. The first words out of their mouth are usually, “so what does your product do?” If a seller is particularly tenacious and holds her or her ground by asking to understand more about the customer’s business, it’s not uncommon to hear the prospect elevate the defense by stating, “you don’t need to know that, just tell me what your product does”. A very seasoned consultative seller can navigate past a “Seymour”, but the new consultative seller will need some help and guidance, especially if they run into multiple Seymours.</p>
<p>You would think the best person to supply this help would be the sales manager. Unfortunately, this person was usually given a battlefield promotion for selling more product than the next rep, but that doesn’t often translate to possessing consultative selling skills. They are often ill equipped to role model the expected behavior and are equally inclined to cave under the pressure of the quarter end. You may agree this responsibility is probably the most critical in transforming a product centric rep to a solution centric seller. But more often than not, they are the key reason the sales rep falls back to previous behaviors.</p>
<p>Now, consider the company that is expecting the seller to suddenly begin consultatively selling and reap the rewards of larger orders in shorter time periods with greater forecast accuracy. Typically, their marketing messaging is still touting product capabilities, their recognition and reward systems still incentivize old behaviors, their leadership hasn’t defined success in any tangible way, and their sales training is still product centric. Imagine moving to a foreign country to learn a new language, but everyone speaks nothing but English. You’re not likely to learn very much.</p>
<p>The transformation of a single sales person to sell consultatively includes multiple obstacles. The transformation of an entire sales organization only magnifies the problem.</p>
<p>So how did Clint finally deliver on his promise? He had help. You may remember that his former partner helped him with information and coaching. For a sales team to succeed with this task, they need help as well. They need help from their manager, from their company, and from their customers. And those stakeholders need help to overcome their own contribution to the problem.</p>
<p><strong><em>The Enterprise Selling Group provides sales transformation strategy, planning and execution services. If you’d like more information about successfully transforming your team to a consultative selling model, please visit our website at <a href="http://www.enterprise-selling.com/">www.enterprise-selling.com</a> </em></strong></p>
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		<title>Qualifying an Opportunity Improves Sales Results</title>
		<link>http://imperativeselling.wordpress.com/2010/02/08/39/</link>
		<comments>http://imperativeselling.wordpress.com/2010/02/08/39/#comments</comments>
		<pubDate>Tue, 09 Feb 2010 01:35:25 +0000</pubDate>
		<dc:creator>Enterprise Selling</dc:creator>
				<category><![CDATA[sales training]]></category>
		<category><![CDATA[creating opportunity]]></category>
		<category><![CDATA[qualfiying a sale]]></category>
		<category><![CDATA[sales enablement]]></category>
		<category><![CDATA[sales leadership]]></category>
		<category><![CDATA[sales methodology]]></category>

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		<description><![CDATA[Qualifying and disqualifying are important to increasing sales results.<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=imperativeselling.wordpress.com&amp;blog=9638144&amp;post=39&amp;subd=imperativeselling&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>When I started selling years ago, my first sales manager coached me to qualify an opportunity by asking if there was a budget allocated to my product or service.  That was his entire definition of a qualified opportunity.</p>
<p>Since then, I have developed a much more refined vision of qualification which doesn’t necessarily include a question about budget in the direct manner described above.</p>
<p>My perspective is that qualification is a spectrum of potential positions.  Ultimately, the best qualified opportunity is one that has just given you a purchase order, and anything less than that is somewhere on the spectrum of being developed into a qualified opportunity.</p>
<p>I have a grouping of four buckets that help determine the level of qualification of the opportunity.  The first checkpoint involves the level of synchronicity between the prospect’s view of their problem and our solution as the answer. In other words, do they view my solution as the best way to address their challenges and contribute to resolving a critical business issue?  If they don’t view my solution as the best, or that it will address their challenges, or that it will contribute to resolving their critical business issue, than this qualification component is weak. This also insinuates that I must confirm their view on these subjects as part of my qualification process.</p>
<p>The second component is directly related to their sense of urgency and priority for my sale.  My objective is to develop or uncover the impact of taking action or not taking action in order to help the prospect motivate them self to take action.  If I don’t explore this dialog, I have hampered my ability to heighten their motivation to take action, and my ability to qualify their intent.</p>
<p>Next is the stakeholder and authority aspect of a decision.  The qualification of an opportunity is directly dependent upon the ultimate decision maker deciding he or she sees the impact of your solution as having a significant priority (second component above),  and that it is the best solution to resolve their challenges and contribute to resolving a critical business issue (first component above).  Qualification of this category also requires that the decision maker has discretion over funds and can allocate budget if none exists. Further, this category should also take into account the backing or opposition of the purchase by other stakeholders who can sway a decision maker.</p>
<p>Finally, the last bucket incorporates their decision process.  Do I know their decision criteria?  Have they verbalized when the decision must be made and why that timeframe?  Do I have these items confirmed back in some written form? The confirmation of the subject is the highest level of qualification for each individual category.</p>
<p>So how does this help a sales person sell more?  The major contribution is to provide a guide.  If the seller is setting out to answer the questions I’ve outlined, they will actually be doing a better job of facilitating a purchase.  This reduces the contribution of “no decisions” to the outcome of a forecast in two ways.  First, some opportunities can be moved from a “no decision” outcome to a winning decision, usually by helping with the connection to the impact and the critical business issue.  In the second situation, disqualifying opportunities that have no chance of making a decision allows the seller to focus their efforts on to opportunities that do have a solid chance of being won.  It’s a tragedy to miss a perfectly good opportunity because the seller was focused on a deal that never had a chance of being won.  That’s two losses in one.</p>
<p><em>ESG provides qualifying and disqualifying training that will improve sales, decrease sales cycles and differentiate you from lower cost alternatives. For more information, visit our website at <a href="http://www.enterprise-selling.com/">www.enterprise-selling.com</a> or read our most recent white paper “A Dynamic Selling Environment” at <a href="http://www.imperativeselling.com/">www.imperativeselling.com</a></em></p>
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