Advertisements

Tag Archive : joe girard

How to sell anything to anybody

I did several part-time jobs while in college but the only part-time job that I held for all the four years of my degree was as a salesman in a jewelry store. The managing partner of the store and still like an elder brother to me, Haresh, gave me this book, How to sell anything to anybody by Joe Girard. Haresh considered this book to be his bible on sales, and once I read it, it was my sales bible too. However, this book is not about sales.

This book is about creating a systematic approach to

  • Recruiting new customers without burning a hole in your pocket
  • Getting your customers to like you
  • Getting your customers emotionally attached to the product
  • Attaining (and maintaining) a high closing percentage
  • Engaging with your customers even if they don’t buy right away
  • Engaging with your customers after you have made the sale 
  • Getting referrals from customers, friends, family and service providers (including your barber!) to grow your business
  • Creating a team around you to ensure you get the highest return for your own time

Joe Girard sold 13,001 cars in his sales career. That is a staggering number because his sales career ended in 1978 i.e. way before the internet; WhatsApp or Facebook made it easy to reach out to a customer.

Joe was profiling his customers, listening to their needs, adjusting his approach to sell his customer. He also made several sales by reaching out to his customer just at the time that their car was ready to be replaced!

How did he know when to call? He kept all this valuable information on his customer in a physical CRM i.e., way before Salesforce, Dynamics, PipeDrive, etc. made record-keeping infinitesimally easier. 

It is for these reasons that this book is a must-read for all founders whether they handle the sales function or not because as I had mentioned before this is a book about creating systems. Therefore I recommend that every founder know how to support the sales function whether they sit in tech, operations, HR, or fundraising.

I have re-read this book several times in my career. Most recently, I re-read this book to create a system to approach, engage, and recruit LPs for my fund. The system ensured that only 13% of the 115 crores we have in commitments came from distribution relationships. Therefore, in the remaining 87% of the cases, I utilized Joe’s system to recruit, involve, and close LPs. My team used a CRM to manage follow-ups and we created new content to reach out to our LPs.

This approach saved us almost one crore a year in paying out fees to distributors, which is a massive cost saving for a MicroVC fund like ours. What is the investment?

Rs. 280 and 8 hours of reading time.

You don’t require a finance degree to explain that these are fantastic returns on your investment and time.

Now it’s up to you…

Advertisements

My atrocious car buying experience is a lesson in after sales treatment for all founders!

I am re-reading How to Sell Anything to Anybody by Joe Girard (book review coming soon).

Earlier today, I finished his chapter on Winning After the Close wherein Joe talks about the importance of ensuring customer satisfaction AFTER completing a sale. He gives examples of how he goes out of his way to ensure that his customers sing his praises to their friends and family. He links the importance of satisfying his customer to the Girard’s Law of 250, i.e., each person has a direct connect to 250 people; therefore, an unhappy customer can directly influence 250 people. Consequently a salesperson or a business that disappoints two customers a week will have 26,000 negative influence every year!

Why is it important to follow what Joe Girard says? For starters, the man still holds the Guinness Book of World Records for being the most successful car salesman in history. This man was selling six cars a day (on average) while the average salesman struggled to sell one. He was out making $500,000 a year selling cars in the 1970s, i.e., eight times the per capita income in the US of A – TODAY!

So yes, when that man says something – it is worth our time and attention.

I am coming back to my point for the post today.

I just bought my first car in India. It was an important moment for my team and me. We were ecstatic on getting the car delivered on Tuesday evening. However, instead of reveling that moment and remembering it for the years to come, all we cannot forget is how the salespeople delivered the car with just enough fuel to get the vehicle to the closest petrol pump!

The saleswoman blamed the empty fuel tank on some dealership policy of ensuring that customers get a bone dry fuel tank. I could not disagree more with her firm, her firm’s strategy, and finally with the saleswoman herself. If she was so embarrassed about her firm’s stingy policy, she could have ensured a happy customer by filling up the tank herself – she would make more than the Rs. 2200 it cost me to fill the tank.

Buying a car is one of the most important purchases in one’s life. I can still remember, like yesterday, the first car I bought with the money I earned by working during the first summer semester in college – a 1996 Mercury Sable with a v6 engine. I was so proud of the car even though it was six years old at the time of purchase. The moment gives me goosebumps even today.

Then 17 years later I buy my first car in India, a Honda Civic, and it is an expensive car (for my standards), but it was delivered as though the dealership was running out of money. It left a sour taste and you won’t have to think hard whether this dealership (Arya Honda) will be recommended by me to anyone. The answer is no.

I must re-emphasize that a happy customer is the best salesperson. He/she will boast about his/her positive experiences to their closest network. On the other hand, an unhappy customer will tell anyone that would like to hear him/her of their negative experiences and feeling cheated by a car dealership. Unfortunately, these car dealerships operate under old maxims therefore continue to misread their customers. Any start-up founder that is reading this post should not.

Your customer whether they are B2C, B2B, B2B2C or B2B2B or B2B2B2C (and so on) must be happy with their purchase of your goods or services. To hide behind the veil of corporate policies is the old way of doing business, and you must ensure that your salespeople are sufficiently empowered to ensure post-sales customer satisfaction, at all costs! It is just as important that those negative experiences are corrected by changing policies and processes.

The process in which the company acquires a customer, gives them lousy experience, and allows the salespeople to blame an insane corporate policy is a sure indication of a deeper rot settled in that organisation.

A rot that every entrepreneur should guard their companies against the cost of all their corporate policies.