“No, I don’t think we’re the best fit for that work.” Surprising to hear this from one of the top performers on your sales team, talking to a client? How’s this going to help that salesperson hit her goal? How’s this going to help a fast-growing company maintain its revenue momentum? Shouldn’t we do whatever's necessary to serve any potential customer that comes our way?
No.
At HourlyNerd, we’ve learned that “No” can be a powerful growth driver in our business. But let’s back up.
We’re relentlessly focused on delighting our customers. We’ve developed matching and talent management technology that gives our users the ability to collaborate with independent business consultants.
We’re thrilled with the interest our customers have shown in having on-demand access to a global network of business brains. We feel the same pressure other fast-growing businesses do to bring on new customers. Just ask our Sales team.
One of the important lessons we’ve learned along the way, though, is that despite our eagerness to land new customers, there are times when the most effective sales tactic—and the best thing for our business—is to tell a client No. Here are some of the reasons why:
Delighting customers is always critical—but it is especially so for disruptive businesses. Introducing a new solutions provider inside your company requires investing personal capital and, often, a meaningful amount of time over the course of the sales process. The pressure on the buyer to prove to colleagues that they were “right” and on the provider to prove that they were “worthy” is real. Neither side can afford a breakdown. Over-delivering on expectations is critical, and often necessary to unlock the referrals, case studies and testimonials that will drive the relationship forward. That is critical spot for a No. Taking on a project where confidence in over-delivering is low risks potential disaster for a nascent provider-client relationship. There are few second chances. Avoid this risk. Say no.
The kinds of customers you want value credibility. At HourlyNerd, we come to work every day believing that we’re changing the way companies engage elite independent talent--just like you probably believe that your company is . What we’ve observed, however, is that customers don’t want to hear that you are good at everything. They actually value hearing about the things that you’re not good at. A salesperson pulling back the curtain on where services are thinner has real power. It builds credibility that you can leverage into a stronger (and more profitable) relationship over time.
The costs of delivery are too high. A sales team’s job is to sell. But selling business that over-extends your company’s delivery or services team is a recipe for a bad margin story over time, and a friction-filled sales and service relationship. Coach your teams on the front lines to sell business that fits your delivery model. Coach them to say No when scale starts to creep beyond what’s manageable.
You’re chasing the wrong revenue. We’ve all been there. The clock is ticking on your monthly/quarterly/annual goal, and you’re pushing yourself and your teams hard to close a gap. In these circumstances, the temptation to divert from your strategy is strong. Maybe you take a on a project that falls outside on your delivery sweet spot (see bullet 1 above), or maybe you chase a potential buyer that has little lifetime or strategic value to your business. Whatever the distressed choice you make at these moments, you are likely creating more challenges for yourself or your teammates down the line: a failed project, a type of work that trains the customer to use your product for something you’d prefer they not, a tough conversation with a customer about why you’re not a great fit for each other. All of these tough outcomes can be avoided by saying No even in the throes of great temptation.
We learned this lesson with one of our most sophisticated financial services clients. They requested a large project that was outside our ability to deliver excellent outcomes with confidence. With dozens of successful projects for them already completed and an intimidating sales goal looming, the temptation to say yes was substantial. Instead, we said No, setting a strong precedent that we intend to delight every time, and signaling that the long-term health of the relationship mattered more to us than any short-term cash. The decision crystalized the foundation of trust that’s nurtured the relationship into one of our largest and healthiest.
Saying No to customers may seem unnatural, especially when the message is delivered by commissioned sales professionals at the front-line of customer interactions. And it’s not easy for us at HourlyNerd, even though we know from experience that it has always led to a better long term outcome with a customer or for our business. Some of the specifics above may be unique to HourlyNerd, but customer satisfaction, credibility and scope alignment transcend any particular business model. Think about your company and your own approach to customer interactions like this. What are the conversations like for you in the scenarios above?
Do you and your team get to No?
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