The Sales Japan Series

By: Dr. Greg Story
  • Summary

  • The vast majority of salespeople are just pitching the features of their solutions and doing it the hard way. They are throwing mud up against the wall and hoping it will stick. Hope by the way is not much of a strategy. They do it this way because they are untrained. Even if their company won't invest in training for them, this podcast provides hundreds of episodes with information, insights and techniques all based on solid real world experience selling in Japan. Trying to work it out by yourself is possible but why take the slow and difficult route to sales success? Tap into the structure, methodologies, tips and techniques needed to be successful in sales in Japan. In addition to the podcast the best selling book Japan Sales Mastery and its Japanese translation Za Eigyo are also available as well.
    Copyright 2022
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Episodes
  • 403 Rationalising Failure In Sales In Japan
    Sep 17 2024
    “There are no excuses for failing in sales”, is a common ideological position. However, is this really true? There is no doubt that sales is a very macho environment for men and women. There are set quotas, targets, numbers to be hit and if they are not hit, then that person is deemed to be failing. There are no hiding places in sales. You make your target or you don’t. Now, if we fired every salesperson who failed to hit their target, we wouldn’t have many people in sales. Japan makes this especially fraught because the declining population translates into a shortage of salespeople. This also means that the quality of salespeople in the market is only going to decline. Whether we like it or not, we will be looking for anyone with a pulse to hire because we need warm bodies. Targets smargets in this case. In sales anywhere, we know a couple of things. The majority of people in the business are untrained. Companies want off the shelf top earners who they can cut loose and let them go forth and bring in the dough. That is an epic delusion in this day and age in Japan. People who can sell are not moving because the company is doing its best to keep them. That means the ones who are mediocre, or worse, are mobile. Even this supply will dry up as companies become more and more desperate for salespeople and will keep their underperformers because they at least know something about the product lineup and have met a few customers. We also know that at any point in time, a third of people we meet who we hope will become clients will never buy from us. There may be many reasons for this, to do with budgets, decision-making, ideology around self-sufficiency, stupidity, etc. Another third will buy, but unfortunately not according to our monthly sales quota driven schedule. In Japan, especially, it is exceedingly rare to meet someone and then immediately get a sale. The dispersed decision-making process in business here ensures that there are many voices to be consulted about a new decision to buy from an unknown supplier. This internal harmonisation can take a long time to come to fruition. The best way to think about is like this: “the buyer is never on your schedule”. The remaining third will buy, and the question becomes why will they buy from you? The “you” is important here because firms don’t buy from other firms. They buy from the individual they meet, who is sitting across from them in the meeting room. They make their decision on that basis. Is the chemistry there between buyer and seller emanating from a solid foundation of trust? Where does this trust come from? The biggest part of the trust equation is from the seller’s kokorogamae. This Japanese word can be variously translated, but in this context, “true intention” is the best version. True intention means what is really driving the salesperson? Is it desperation to keep their job by making their monthly sales target? Is it greed to score a big commission or a promotion? Is it to do the right thing which is best for the buyer? If it isn’t the latter, then we have a problem. Correct kokorogamae is often defeated by the culture of the firm. Doing the best thing for the buyer is not a smash and grab activity designed to yield immediate returns. The focus of correct kokogamae is to get the repeat order, not a single sale. That mentality is very specific and the time frame is long. If the sales manager is pushing everyone for immediate sales revenues, then the needs of the buyer get tossed out the window and the salespeople will do and say anything to get the sale. In fact, everyone is working hard to dismantle the brand and destroy the client trust for short-term gains and this is driven by the leadership. Is it the fault of the salespeople that they are working for idiots? Companies have to do much better by their salespeople. Target expectations need to be realistic and have attached timelines which make sense. Training is an absolute requirement, in particular, how to ask questions in order to fully understand what the buyer is trying to achieve. Pitching a solution makes no sense if you have no idea what the buyer needs, and this activity has to be replaced by intelligent questioning skills. The aim has to become the repeat order, because farming is a lot less expensive and more efficient than hunting all the time. Just hiring people and then firing them is an option that is no longer able to be enjoyed by companies in Japan. Given that the quality of those recruited will just keep going down, these individuals have to be encouraged and developed. That requires time and treasure, but there is no alternative.
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    11 mins
  • 402 What To Look For When Hiring A Salesperson In Japan
    Sep 10 2024

    Most of the sales jobs in Japan require the ability to sell in Japanese. That usually means native speakers of Japanese or foreigners who can operate at a highly sophisticated language level. There will be exceptions, but they are not that numerous. Probably the bilingual recruitment industry is one of the main employers of foreigners who can’t speak Japanese and English-language schools. One could argue that today neither requires any real sales skills. Recruitment, in particular, is at an inflection point where the demand definitely exceeds the supply, so anyone with a pulse can match a candidate from the database and invoice the firm looking to hire staff.

    Be they Japanese candidates for sales jobs or foreigners, what should we be looking for? Some might look for a track record of sales results. That is one indicator, but often not all that useful. Is the methodology in your shop teams doing sales and being rewarded as a team with salary and bonuses? Or are there individual targets and commissions attached to the sales? This is such a different construct, it depends on how you are configured.

    Japanese salespeople, in my experience, love a salary, bonuses and team accountability. They are reluctant to take individual responsibility for their sales results. The money is obviously better when operating as an individual, but most Japanese salespeople feel overly exposed to the harsh realities of the sales life in this situation and prefer the comfy team embrace. So expecting rocketing individual results from a salesperson who has been operating within a team is overly optimistic. Despite that, I always favour personal accountability for results and work on gluing the team together, even though they are focused on getting their own numbers.

    How have they been trained is also a strong indicator? Very few salespeople anywhere on the planet have been given formal sales training. In Japan, it is usually on-the-job training or OJT where they go with their boss or more likely, with their senior to client calls. Japanese salespeople turning up on their own is rare in Japan. Usually they travel in pairs, as one is the understudy to the other, until such time that they become the senior in their own pair. Ideally, we either want properly trained salespeople or we want to be able to train them formally, rather than rely on the Japanese system of intergenerational mediocrity.

    In some cases, the salesperson needs a degree of technical background for their work. Japan though has a weak connection between what they study at University and the jobs they wind up doing, so often there is no direct match. In many cases, the engineers may have the required technical training, but no formal sales training, so they are reliant on the OJT system for developing their sales abilities, which is at best a hit and miss affair.

    In general, broad skills are required and, in particular, communications and human relations skills are needed. Technical people can often be duds at both, so they need to be developed. In other cases, the person has these key skills but is weak technically. The Unicorn is always hard to net. When I first worked at the retail bank in Shinsei, the hiring criteria was maths skills for salespeople selling investment products to wealthy individuals. A rather dubious idea, I thought, so I changed it to put more emphasis on people and communication skills. Naturally, the results vastly improved immediately.

    The other element we need to think about is our brand. Does the person we are looking at hiring fit our brand or can we teach them how to fit. If I see a sales guy with some of the things we are looking for, but has scruffy, poorly shined shoes, I know that I can teach him how to fix that issue. If his haircut is a disaster, we can fix that too. The point, though, is the individual has to submit to the brand and fit in with the company’s thinking. In today’s environment where getting a sales job is super easy, maybe they don’t want to change themselves to match the brand and expect things to flow the other direction. In my case, I would always think long-term and want to defend the brand, because it is bigger than one salesperson.

    There is no doubt that we are all facing a lot of difficulty finding suitable salespeople based on our preferred criteria. Whether we like it or not, we have to be flexible and the best idea is to train the people we hire to get them to the level we need. Expecting they will come fully outfitted from the get-go is now a fantasy. Times have changed and we need to move with the changes.

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    10 mins
  • 401 Don’t Get Emotional In Sales In Japan
    Sep 3 2024

    I have been coaching a founder client here for quite a while now and his emotional reaction to his clients not buying on his schedule always surprises me. I keep telling him, “it is business; it is not personal”. We know that there are some customers who will just never buy, some who will buy now and some who will buy in the future. We just don’t know which is which until we get rejected.

    When I get rejected in a deal, they are not rejecting Greg Story. They are rejecting my offer, in its current construction, at this point in their cash flow cycle, within the bounds of their strategic direction, in relation to what my competitors are offering and a whole bunch of other stuff I will never even know about.

    Does it still hurt? Yes, of course it does. I get super annoyed and upset like everyone else. The difference between me and my client, who I am coaching, is I never pass that emotional reaction on to the client, who said “no” to my stupendous offer. He does pass it on because he feels so upset and frustrated. I keep telling him to chill. Write the email if you must, to get your hurt feelings out, just never send it. My advice isn’t working as yet, but I will continue to counsel him to not take it personally.

    I had my own rejection case the other day. I was doing an RFP for a client and they came back and said they went with a rival firm who specialises in sales in their industry. What was my initial thought? “They are idiots” was the first reaction. This was followed by “why are they just doing what all of their competitors are doing? Why not use another more differentiated approach with something more fresh?”.

    What did I reply? I didn’t mention any of that. By the time the decision has worked its way through their internal decision-making system, there is no going back. Telling them they are stupid may make me feel good, but it won’t alter their course of action. I wrote what I always write, “thank you for letting me know” and that is that. I don’t bother with appeals for consideration in the future. I just accept their idiotic decision and move on to find someone smarter, taller, better looking and who bathes and who can do a deal with us.

    Now I also put them on my follow up list, because not every deal works out. Their situation can change and maybe my competitor is useless and what they provide doesn’t work. So I keep in touch and ask them if they have any needs that we can help them with, and I do this regularly. The initial interval is around six months. That is long enough for them to realise they made a huge mistake by using my competitor and that they got nothing from that ridiculous solution they chose instead of mine. After that, I follow up every three to four months, because business is fluid and what wasn’t on the table is now in play.

    How long should you follow up for? Ryan Serhant, who I follow and who started his own successful real estate brokerage in the US, says “keep following up until they die”. I am not that pushy, because I figure there are reputational costs to being too pushy and too insistent in Japan.

    Tokyo is big, but it is also a small village in many ways. We sell to Japanese domestic firms and foreign multi-national companies. Our reputation as Dale Carnegie, a business based on being able to get on well with all different types of people, has to be careful how we are perceived in the market. If we say one thing, but do another, then our brand consistency will suffer and so will our sales.

    Where is the line between persistence, which is admirable, and being too pushy, which is frowned upon here? It is not always clear, but if I feel that there is no interest, then after about four follow-ups with no reaction stretched over a twelve-month period, I will shelve that firm for a while. The people may change in the future and maybe someone smarter will be the person to talk to or maybe their business has changed and they are now more open to our solutions.

    Regardless of what the client does, we can control how we react and we must keep cool, calm and collected in the face of failure and rejection. Is that easy? No, but the choices are few. My client hasn’t quite gotten to the point of handling the rejection in a calm, non-emotive manner yet, but I will keep working on him until he gets there. I am constantly working on myself, too. I have found that no one is a clear genius with this stuff and we are all a work in progress.

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    10 mins

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