Selling Power Feature Article
The Microsoft Way
By Selling Power Editors
There's more to the Microsoft
success story than high-bandwidth programmers and
hard-driving CEO Gates sitting atop a mountain of
cash. Just as important as the brainiacs who produced
"the code that changed the world" is the
company's high-powered sales force. These folks have
helped turn Chairman Bill's Information Age vision
into a marketplace reality. Doug Dayton entered
Microsoft as employee number 169, then later became
sales manager for the company's original equipment
manufacturers (OEM) division, one of the early sales
superstars who helped put Microsoft products onto
nearly every home or office desktop in the developed
world. Many of the lessons he learned during those
pivotal years are related in his new book, Selling
Microsoft (Adams Media, 1997). Since leaving Microsoft
10 years ago Dayton has systematized those lessons
into an overall sales strategy he calls
Client-Centered SellingTM.
Reflecting on Microsoft's sales secrets, Dayton gives
particular credit to the company's sales
representatives' ability to tell Microsoft's story and
get customers to buy into the company's vision.
"At the time, our OEM group only consisted of
about five people," he says, "so we all
thought of ourselves as evangelists, sort of getting
the word out. In no way was Microsoft the de facto
standard yet, so we had to convince people that this
was the case."
To provide the evidence customers needed, Dayton
developed a simple Microsoft "story" that
addressed the who, what, when, where, why and how of
the OEM customers' key concerns. Each question was
paired with important corresponding customer benefits
to help move the sale forward.
"Being able to tell your company's story in a
clear, compelling way will provide your customers with
invaluable help in making their buying decision,"
Dayton says. "So if your prospect is concerned
about doing business only with established vendors,
and your company is the industry leader in the field,
make that a part of telling who you are. Or maybe the
customer has had trouble with an existing supplier's
inability to deliver products on scheduled due dates.
If so, focus your story around your company's 94
percent on-time delivery record. Other areas you might
focus on include any competitive advantages your
company offers (how) or the comparative features and
benefits of a particular product (why)."
Dayton emphasizes that in telling your story you want
to give customers every reason to buy your product and
to make that decision as easy as possible. Admittedly
for Microsoft, the unabashed industry leader in a
fast-paced field, this may be quite simple. But Dayton
argues that every competitive company has a compelling
story to tell, even if the company's product is
something low-tech, like ball bearings.
"If you go into a customer and say, 'We make the
best ball bearings in the world,' just try to put
yourself in the customer's position," Dayton
says. "They're thinking, 'Well, who wouldn't say
that? Is someone going to say that they build
second-rate bearings? No. Everyone's going to say
that.' So how much value does that offer in getting
customers to buy your products? Very little. But if
you say, 'XYZ independent engineering company says
that in a fluid environment our bearings have .001
nanometer better tolerances than our nearest
competitor,' or something equally compelling, then at
least there's some credibility there. But typically
sales organizations don't go that extra mile,
emphasizing these pivotal points in describing who
they are and what they do, and it costs them
business."
Dayton argues that this ability – to see a sales
situation through the customer's eyes – is crucial
to becoming an effective, client-centered sales
professional. Too often, he says, whether because of a
lack of preparation, failure to concentrate on the
business at hand, or a simple misunderstanding of the
customer's needs, salespeople get lost in the sales
process and fall out of sync with the customer's
buying process.
"Most salespeople don't know where they are in
the selling cycle," he says, "and so they
wind up getting lost. They have sales that are stalled
and they don't know why. If this is the case,
typically the reason is that you have not verified
that you have addressed all the customer's concerns
before moving forward. So you've got a breakdown in
communication where you feel like you've answered all
the customer's concerns and don't understand why he or
she isn't ready to make a decision. But the customer
may still be worried about some other issue you've
already moved beyond."
The solution, Dayton adds, is to retrace your steps in
the sale and find out where you fell out of sync with
the customer.
"Go back to the account," he says, "and
verify that you have addressed all the customer's
concerns about each step on the path of action you
recommended. This way you can uncover whatever the
stumbling blocks are, cover that ground again until
both of you are satisfied and move the process
forward. Selling is a lot like dancing; the two of you
have to stay in step if you're going to get
anywhere."
To ensure that you stay toe-to-toe with your dance
partners, Dayton recommends closing every sales call
by going back over the objectives you set for the
meeting and verifying that the customer has received
all the information he or she needs to move the sale
forward. This simple act, he says, will communicate
that you care about the customer's concerns, and help
you expose and address any objections before trying to
close the sale.
At Microsoft, Dayton says, the biggest problem facing
the sales organization was getting salespeople up to
speed on the technical side of the company's marketing
story. To address this problem Dayton put together an
in-house OEM training group charged with providing
sales, product and industry skills to both new and
veteran account managers. Unfortunately, he says, most
salespeople have trouble analyzing their own sales
efforts to identify problems. This is where the sales
manager can step in and make a difference.
"The best way for sales managers to diagnose
sales problems," Dayton says, "is to go out
in the field with the salespeople and watch how they
interact with customers. Most sales managers are good
at assessing personality issues like 'John can't keep
his mouth shut' or 'Jane is really disorganized,'
which are superficial issues, but they don't have a
deeper understanding of what's going on. Unless they
get out on the sales calls they never will be able to
move things forward for that team member. In the field
the problem usually becomes apparent, whether the
account rep isn't comfortable making product
demonstrations, doesn't identify customers' key
issues, or whatever. And then, once the problem is
identified, the challenge becomes fixing the
problem."
Dayton acknowledges that even at a top-flight sales
organization like Microsoft, remedying salespeople's
performance problems can be a formidable challenge.
"This is a tough issue," he says,
"because you're dealing with people and with
their different personalities. Typically the problems
can be traced back to a lack of basic skills. Just
like with a professional athlete, salespeople have to
constantly work on the fundamentals. At Microsoft, for
example, there were people whom we would give product
demonstration training, yet they still couldn't use
the product worth a darn when they were in front of a
customer. They weren't comfortable going through a
product demonstration, so they would always find some
excuse to bring a product marketing guy or a support
engineer with them.
"So you have to look at the problem honestly,
without assuming that the sales rep has a certain base
line of knowledge. Because people get defensive when
you talk about basic skills, things you think they
should know already. There are ego issues involved,
and I've found that the easiest way to get around them
is to present the basics, but in a more jivey way. So
you acknowledge that you're covering fundamentals, and
that the sales reps may already understand these
things. That way, the rep or reps who don't know the
material can absorb it without getting defensive or
having their egos attacked." Once the new
training is in place, however, the manager's job is
not done. The next step, Dayton emphasizes, is to
confirm that the training has stuck.
"When I was at Microsoft," he says, "we
brought in many different outside training companies,
but for the most part our people would get excited
about it for a week and then go back to exactly what
they were doing before. One of the things I've
realized is that success isn't about getting people
excited at a training program – it's about
engineering change throughout an organization. And
that's why after you've conducted a training session
it is so important for the manager to go back out in
the field with that rep and validate that the training
has made a difference. Even at Microsoft we weren't
very good at that, to be very honest. In my opinion we
fell short on the validation side. But it's absolutely
key if you want to make change permanent, and not just
a matter of getting people pumped up for a week and
then going back to doing things the same way as
before." To Dayton, in addition to communicating
a compelling marketing story and focusing on
continuous improvement, Microsoft's sales force has
been so successful because sales goals have always
operated in lockstep with corporate goals. The sales
organization always knew what was expected of it, and
how those benchmarks related to an overall corporate
vision.
"This should always be the case," Dayton
says. "The sales function needs to support the
corporate vision. For example, at Microsoft Bill had a
vision of a PC on every desktop and Windows on every
computer. As a company we were all united in the goal
of engineering the highway that would bring Microsoft,
and in fact the computer industry, to that place in
time where that would become the state of the market.
As salespeople our function was to put down specific
sections of concrete on that highway. One section
might have been moving a particular customer from DOS
to a Windows shell, so that they were running the
MS-DOS operating system with the Windows interface on
top of that. Then the next step would be getting them
to run Windows on their PC. And then the next step
would be moving them to run Windows on their TV set,
or some variant of Windows so that TV channels will be
broadcast through the Internet.
"So we had short-term objectives that were
aligned with the long-term strategic plan for the
company, and which supported that vision. Too often
with companies this isn't the case, and you have
incentive plans guiding salespeople to do things at
odds with or indifferent to corporate goals. And if
that's the case you're just running around the barn
with your eyes closed and tripping over the rake. One
of Microsoft's great strengths is being responsive to
its mistakes. If Microsoft announces a new program or
initiative and the market balks, or the product flops,
they go back to the drawing board and try something
new. Too many companies are unable or unwilling to
admit when they've made mistakes and learn from them.
People in the industry sometimes joke that it takes
Microsoft three versions of a product to get it right.
This isn't always true, but regardless, Microsoft
keeps working until they do get it right, and
ultimately prevail in their markets."
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