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The Philosophy of Selling to Save, Time, Trouble and/or Money.

May 16, 2018

If you do not know how to save a prospect time, trouble, or money with your product and service than you should not even be in the door.  I cannot tell you how many people I have mentioned this too.  I still hear from sales people I worked with 20 and 30 years ago that still mention TTM (Time, trouble, and money).  To many times I have heard sales people talk about features and benefits.  The benefits always somehow come down to dollars.  Although this makes good sense.  A sales person really needs to understand how their product for a particular prospect saves time, trouble, and money (TTM).  It can be different for each company you are dealing with.  However, if you want them to buy, it really comes down to this simple acronym.  And when I say money, I am not referring to just the COST of a product or service.  Usually the cost of a product or service are minor to the overall cost of an operation.  However, buyers will always use the excuse “The price is to high”.  That’s because the solution has not been expressed in the very simple terms of TTM

As an example, the product you are selling is a commodity.  What different ways can you save a customer TTM without lowering your price? Try and quantify with some number either dollars, time, or a percentage on what you can save a customer.  Try and at least quantify 2 out of 3 TTM’s.  Probably if you have done 2 you really have 3. If your TTM is not greater than 10 times the cost of your product than you do not have a sale.   Some initial thoughts are as follows:

1.       Smaller order requirements

2.       Shorter lead times

3.       Faster delivery

4.       Extended payment terms

5.       Faster throughput

6.       Less errors in production

7.       Less waste

8.       More yield

9.       Portion controlled packaging

10.   Less waste

11.    Energy cost savings

 

I am sure there are many more examples.  Please share and let’s discuss.  You can either e-mail (allan@salescoachaz.com ) call 480-220-4296 or make your comments below:

THE SCIENCE OF MOTIVATING SALES PEOPLE

April 30, 2018

I recently read an E-mail white paper by the Hoffeld Group called “The Science of Motivating Sales People”. The Hoffeld Groups sales training approach is based on neuroscience and behavioral science.

There are some very interesting points, which I can whole heartedly agree. The true essence is this mentality of the carrot and the stick of Sales Management must go.

Their white paper makes the following points.
1. Most of motivational strategies that sales managers use demotivate sales people. My blog in 2012 Sales People Are Not Just Motivated by Money, I quoted Dan Pink’s book Drive, which says how people are truly motivated. By the way sales people are people too.
2. Of course, compensation is important. However, compensation based on financial incentives motivate to a point. Once the goal is met, they cease to motivate. The results are temporary and do not produce lasting improvements in performance.
3. Self-motivation and the desire to be better at what they do is the strongest driver.

What is important to Sales people other than money? From personal experience and from what I have read, most people are motivated by autonomy, a sense of purpose, interesting work, and job security. Great leadership can motivate, but overall people must be self-motivated. Your most important job as a Sales Manager is not to demotivate but help them get better.  Beating them with a stick does not work.

So, what can you do to assure that you get all top performers. It starts with proper hiring. Form your hiring interview on uncovering self-motivation. Don’t worry so much about experience in the industry and/or education. Think about the most successful people you know and what are their traits, and how you will uncover them in the interview? With your present sales people see where there are weaknesses and help them if you can. Here are some attributes of successful sales people.

1. They do not fear failure – The understanding that one can learn more from failures than from successes.
2. Their mentality is one of constantly improving themselves and improving things around them. This also means that they are willing to be coached.
3. They are goal oriented.
4. They have a lot of self-confidence – If they are not confident in themselves, and are not confident in the company, how can a prospect or client be confident.
5. They love a challenge. – Nothing is more challenging than sales.
6. They have creative thoughts on how to approach different situations
7. They are optimistic about themselves and the world around them.
8. They easily relate to others and have empathy.
9. They have excellent communication skills both verbally and in writing.
10. They are persistent and not afraid to follow-up with people if they see a benefit to the prospect.
11. They connect easily with people and are not afraid to share their connections.


Now the question becomes how you compensate these type sales people. A good article to read from Harvard Business Review is “How to Really Motivate Sales People” by Doug J. Chung. In essence devise part of the compensation plan that will make them more successful and motivated other than money. Keep your payout periods short not annually. Keep it simple. Think about giving gifts for achievement rather than money. In any case, keep experimenting with the compensation system till you find something that works for your sales force.

Your comments are welcomed and appreciated.

HOW A CRM CAN DRAMATICALLY IMPROVE BUSINESS

March 4, 2018

 

Although CRM stands for Customer Relationship Manager, it means different things to different people. CRM’s are constantly evolving and are seldom used to their full potential. They are tremendous tools to collect data, keep contact, track progress and help analyze the information. Of course, as Sales Managers your main purpose is to generate revenue and profit and close more deals. However, no matter what you think the CRM does, the emphasis is on Customer focus.

We must start out with the people, the process, and the customer before even thinking about getting a CRM. If there is no formalized Sales process, and the people are not convinced that a tool will help them and NOT just help management, the CRM will become a very expensive data dump, and nothing else. All aspects of the Enterprise must be committed to making it work, and participants in the development and use of the CRM. It is NOT just for Sales and Sales Management.

As a consultant this is the type of scenario that often happens.

Sales Manager Bob bought a CRM one year before I started consulting him. After 1-year Bob felt that the CRM was an unnecessary expense. There was no increase in revenue, the pipeline was filled, but there did not seem to be anymore closing of deals. Before eliminating this tool, I asked Bob a few questions:

1. Is there an in-house champion that helps people with utilizing the CRM?
2. Do you have a Sales Process that is Customer focused and has your CRM been customized for the Sales Process?
3. Is the CRM integrating your sales, marketing, and customer service operations?
4. Do customer support people have access to the CRM to help track work orders and progress?
5. Are there enough defined steps in your Sales Process, where you can see and help your sales people through the next step?
6. Is the CRM cumbersome where the sales folks must copy and paste from Outlook to the CRM?
7. Is there a dashboard of data and information that will help you manage and lead your Sales people?

After many long discussions with not only Bob, and the different departments we decided to take the following steps.

1. Develop a CRM Team with the different departments to gain advice on what will promote cooperation and work flow ease internally, so the customer benefits.
2. Be clear on what information is needed by every department for prospects and customers to make the CRM important to every discipline.
3. Clearly define not only the Sales Process, but the internal processes needed for a sale to be completed, and for customers to be maintained.
4. Make sure that the CRM is easy to learn and use, particularly by the Sales people.

It really took almost another year before the benefits of the CRM started to be seen. The first benefit was seeing cooperation and work flow improvements through the departments. It made Bob’s job a lot easier. Bob was now managing the process more than the people. This gave him better insight in what and how to coach his salespeople and name the roadblocks that stop salespeople from closing the sale. Revenue increases in the second year were 48%.

Why Have a Sales Process?

February 27, 2018

Sales Management can read ad nauseum about creating a Sales Process and Implementing one.  I have helped develop and worked with companies that say they have a Sales Process.  For the Sales process to be effective, it must be Customer focused. This means understanding and fulfilling the customers needs, wants, pains, fears, and desires with your product or services must be the foremost thought and result in developing the process.  The Process is a roadmap, and not a railroad track.  You must allow for salespeople’s creativity, and style to reach the end goal.  It will not be the same, but there are critical points along the way that must be done. It is important to develop Different Versions of the Sales Process for Different Target Customers and understand the motivations and concerns of the prospects.  Don’t waste company money on a CRM, until you have clearly defined your Sales Process.  Developing a clear concise Sales Process can have a dramatic positive effect in reducing the Sales Cycle and closing more deals.  The key elements in a Sales Process are as follows:

  • Method for creating and handling Leads
  • Identifying and Qualifying the leads into prospects
  • Prospect Development –
  • Negotiating and Closing the Sale
  • Customer Retention, Follow up Procedures

Following are points to consider under each element of the Sales Process.  detailed

What is the main source of Getting Leads? How many leads are needed to generate the revenue goal from the different Lead Generators? 

  • Trade Shows
  • Networking Events
  • Social Media
  • E-Newsletters and Direct Mail
  • Web Site / Blogging
  • Customer Referrals.
  • Cold Calling – from lists – chambers, industries, etc.

 

Identifying and Qualifying Leads

  • Who will handle the lead?
  • What critical questions need to be asked to qualify the lead?
  • What possible needs must be identified?
  • How fast do we follow up after initial contact?
  • What are acceptable next steps for the lead? Examples:
    • Appointment
    • Sending Information
    • Demonstration of product

 

Qualified Prospect Development – Depending upon the business, this can take several meetings.  Start the relationship development and understanding the situation. Identify the decision-making process, and the motivators to buy.  At this juncture, what is the percent that become customers, and how many will you need to achieve the revenue goal.

  • What questions and connections do you have with the prospect that will help you establish credibility and a relationship?
  • What questions or information is needed to be asked for Management and Internal Staff to understand the situation? Examples:
    • What is the possible revenue to be generated?
    • Are the discussions with the decision maker or an influencer of the decision?
    • Other than price, how and when will the final decision be made?
    • Who else is involved in the decision?
  • What problem, fear, challenge, opportunity, or aspiration was identified?
    • Has there been a quantification of the problem?
      • How much time is it taking them?
      • How much money is it costing them?
      • What kind of trouble have they gotten into or foresee if they do not resolve this situation?
  • Is there an established vendor and has the risk of change to a new vendor been addressed?
    • Do we understand what will inhibit them from moving away from the vendor?
    • Have we agreed to a way to mitigate the risk?
    • Do they perceive it as a risk?
  • What other obstacles / objections are there in doing business with our company?
  • What other competitors are being evaluated?
  • Are there specific requirements for the solution?
    • Price
    • Job Completion
    • Payment terms
    • Security Issues
    • Technology and Regulations
    • What is the most convenient and preferable way to communicate with the prospect and company?
  • Is there any flexibility in these requirements?
  • What possible options were discussed and was one more acceptable than another?
  • What is the value proposition, and key non-price differentiator vs. the competition?
  • Does the prospect agree, or have they verified the benefits of doing business with you?
  • Do we have to somehow prove the benefits before the sale is made?
  • What are the next steps in moving forward and when?  Is there a mutually agreed upon Product / Service Evaluation Plan that proves the company’s capabilities?
    • Demonstration
    • Proposal
    • Visit with Technical Experts
    • Tour of Facility
    • Visit of Higher Level Management
  • Are there important follow-ups needed before the next meeting?
    • Third Party referrals
    • Support Materials or articles supporting proposed solution.
    • Other

 

Negotiation and Close

  • What obstacles will stop from closing the deal?
  • Is the proposal presented as a Win-Win?
  • Are we very clear on the value that the customer will receive?
  • What is the least we expect from this proposal?
  • What is the best we can expect from the proposal?
  • Do we understand and have we addressed all critical business issues?
  • Can we quantify the value to be gained by the client?

 

Follow Up and Repeat Business

  • Who are the responsible parties for following up with the customer?
  • After the contract is completed, what plans are there to be getting additional business?
  • How will we handle the customer in the future?
  • How frequently will the customer need to be visited and / or contacted to keep them as a customer?
  • When and how do I ask for a customer referral?

So you may now be totally overwhelmed with the information needed to develop a Sales Process.  Your best and first source is to solicit your Sales people in helping develop the Sales Process.  It is truly amazing what you will hear from them.  However, in the end you will get better buy in if they participate in developing this all important process.  

Best Practices for Handling an RFP

February 26, 2018

I asked my colleague Lisa Rehurek, a leading authority in RFP success to add her comments to this blog.

Has this happened to you?

Some large potential client calls you up and asks for your company to make a company presentation. You spend hours putting together a presentation, then you fly to the prospect taking some top executives with you.

After the presentation you are asked to participate in an RFP (Request for Proposal), which would bring in $2,000,000 in revenue.

Because this was an unusually large request from a reputable company, your whole team spends the better part of two weeks trying to put together the proposal.

The result: Thank you very much for your time, but we decided to go with the competitor.

WHAT WENT WRONG?

Part of our jobs as Sales Managers and Sales Coaches is to make sure that the company does not waste time and resources on long shot opportunities. In some cases, even with large potentials it is not worth the time and effort of our people if there is no true basis for doing business.

The first mistake was giving a presentation without being very specific as far as what attracted your prospect’s interest and understanding their overall objective. Never give a presentation if you do not know what is important to the prospect. Once you know that, then focus your whole presentation around it. The prospect is only mildly interested in all the other things your company does, and the first presentation is not the time to inundate them with your entire series of offerings.

Some questions you should ask of your prospect include:

1. Other than price, what criteria is important to the prospect?
2. Has there been an issue with the previous supplier? Is there a previous supplier?
3. Why are you going out to bid?
4. What is your biggest challenge when it comes to…. {whatever you are providing a solution for}
5. What additional information do you need from the prospect to make sure that they are comparing apples to apples?
6. Is your timeline the same as theirs? Do they want the project finished within a specific time?
7. Are they willing to take suggestions to their RFP, which may reduce costs, or improve the project overall?
8. Will you be allowed to present the RFP face to face, and ask some of these questions?

The second mistake was responding to the RFP without first asking some of the following questions internally:

• Why is this prospect important to us?
• Do we have the resources to bid on this and to do the contract work?
• How does this client fit into our overall business development strategy?

Creating assessment criteria for opportunities like this is important when you start looking at RFP opportunities, because the time and expense associated with bidding can be intense. You want to make sure you’re bidding for the right reasons, aligned with your internal strategy.

If you feel that you must bid and that this is a door opener, do it intelligently. If a prospect is not willing to let you ask these questions, could that be a sign that they truly aren’t interested in choosing the best vendor? You must also agree on a basis for doing business. The buyers’ job is to make you a commodity. Yours is to show them your competitive edge. Sell the value of doing business with the company and yourself beyond just the product or service that you offer.

In some cases, they are only sending out these RFP’s to compare to their present vendor. With such a large bid, trust and competence is more important than price to the buyers. They may say price is most important, but without the trust and competence would you put your job on the line for a better price?

Give us your situation and thoughts and let’s see if we can help you do a better job of winning the bid. You can contact Lisa directly at lisa@lisarehurek.com. 

PERSERVERANCE AND FOLLOWING UP

November 30, 2017

 

It is amazing to me how poorly sales people follow-up after their first touch or their first appointment. I have seen great presentations go to waste, because of lousy follow-up. The two biggest reasons for NOT following up are sales people do not want to be a pest, and some false assumptions about a customer. The idea in following up is to show that you can add value to their business, and to build a further level of trust and credibility. It is best to first ask the prospect for permission to follow-up. Do not follow-up by saying just checking in with an e-mail or phone call. Have a purpose. I have read that the average sale takes 7 touches. Today it probably takes more, because people are more reluctant to trust someone. Remember to deliver value on every call, and every correspondence. So here is my list of ways to follow-up. If you have more, please add to them.

1. General Follow-Up – Make sure before leaving the appointment, that there is an agreement on what details need are followed up and when. After sending follow-up phone call to make sure the information was enough.
2. Send Articles Related to Their Business – these sets the tone that you are a resource of information. You can find many articles in trade magazines, or the internet. Make sure to send a handwritten note tying it back to what you previously discussed.
3. Share Your New Company’s New Product or Service – This is a no brainer, and so important. Even if it does not pertain directly to them, it may show that your company is an innovator.
4. Customer Testimonials – Don’t be shy. If you got them, flaunt them. Testimonials are powerful, especially if they are from someone who your prospect knows.
5. Look for Referrals for the Prospect – Ask first what good referrals for them are? The idea is that we are all in this together. Again be a resource not just a salesperson.
6. Send News Articles about Their Company – Set up Google Alerts about announcements about their own company. Send Congratulations. This shows that you are knowledgeable about the goals and opportunities of the prospect.
7. Add them to Company E-Newsletters – If they read them or click on a link, it gives you more opportunity for engagement and discussion.
8. Send Competitive Information – Your buyer always wants to know what competition is doing. Just make sure that it is public information, and that you are NOT sharing any trade secrets.

HIRING TOP SALES PEOPLE

October 9, 2017

So, you think because of your great sales ability you know people?  You think because of your experience in the industry you know who you should hire as a top performing sales person?

I have news for you.  It isn’t that easy.

Hiring effective sales people and training them not only to sell your product but also to adhere to your company’s sales culture is perhaps the most difficult job you have.  However, if done right it will make your job easy.  If I have one regret it is not spending the time to hire the right people for sales territories which affected my job.

Realize that the average turnover rate of salespeople is between 53-68% in the first year. Just think what a tremendous cost that is to any organization and the time spent by sales management bringing someone on board.  The axiom of hire slow and fire quick is most important for salespeople because they are the face of your company.  There is nothing more important to you personally than making a great hire.  It will save you a lot of time and effort in the long run.  Spend the time and the money to do it right!

HIRING FOR EDUCATION AND EXPERIENCE

A Carnegie Foundation study once found that only 15% of a business person’s success could be attributed to job knowledge and technical skills.  A whopping 85% to one’s success could be determined by the “ability to deal with people” and “attitude.”  Hiring because of experience frequently leads to mediocrity.  Smart motivated salespeople will quickly learn your business and the needed technical skills to be successful.  Attributes like customer focus, competitiveness, solving problems and the desire for self-development are hard things to teach and are much more valuable than experience.  They may also be difficult to establish during the interview.

Do yourself a favor.  Make a list of the top 10-20 characteristics that you feel are important to be a successful sales person in your company.  Sadly, many candidates are knocked out of contention by Job Descriptions that demand years of experience and education.  Here are my top attributes that I think are often more valuable:

  1. Belief in the products and services that you are selling.
  2. Self-accountability and a continuous improvement mindset.
  3. How well they prepare.
  4. Maintaining a high activity level.  A need to hit a high percentage of targets.
  5. An enjoyment of the monitoring and measuring for tracking progress.
  6. Customer focused question asking at least 80% of the time.
  7. Relentless Follow up.
  8. Courageous.  Not afraid to challenge, negotiate and do the right thing for your company and the client.

BEHAVIORAL, VALUE AND PERSONAL SKILL ASSESSMENTS

Behavioral assessments like TRIMETRIX, OMG, and MySalesTest can help you determine some of the characteristics listed above.  Make sure that these assessments are customized for your business.  Although, I strongly suggest that you use these tools, only 30% of your decision should be based on what those reports uncover.

Before even starting the hiring process here are some critical points to consider.

  1. Can you weigh the importance of the following parts of the process and their effect on the selling of your products: Cold calling, networking, qualifying, closing, maintaining.
  2. Can you measure the key behaviors necessary to be a successful sales person in your business? (E.g. cold calls/day, quotes/day, talk time on phone, $ sales, face to face meetings)
  3. Do you have a written sales process and expectations of how fast deals close?
  4. Is your sales compensation plan reflecting the corporate objectives and culture, or is it just reflecting revenue?
  5. Can you accurately describe the culture of your company and why you do business? Do you really know what your company’s most critical values are and how it fits with the potential hire?
  6. How are you supporting your salesperson internally?
  7. How much supervision can you give to a new sales hire?

DEVELOP A HIRING PROCESS

The first step is to write an excellent job description.  If you have an HR department solicit their knowledge.  Make them your business partners.  Do not abdicate the function totally to them.  If you do not have an HR department go on-line, and get some ideas.  The Job Description must reflect the company’s culture, ideals and mission, key responsibilities, and expectations.

Whether you post on the different job sites, LinkedIn or go through a recruiter reviewing the resumes will be an arduous task.  The average HR person spends only 11 seconds looking at a resume.  The only thing you are really looking for is ACCOMPLISHMENTS.

Since the phone is one of the most important points of contact for the majority of sales people, qualifying with a Phone Interview can save a lot of valuable time.  One of the tricks I like to do is when setting up a phone interview make them leave a voicemail.  Do they have energy? Do they sound positive and enthusiastic when leaving the voice message?  Are they sort of rambling and dull?  What does it tell you about this person? Here is a list of 12 questions I like to ask in the phone interview:

  1. What can you tell me about our company?
  2. What made you apply for this position?
  3. Describe the type sales position you are presently in?
  4. How are you getting leads and prospecting?
  5. What is the most important thing you are looking for in a company/position?
  6. What is the most significant accomplishment or sales you have made in your career?
  7. Describe the best sale you ever made?
  8. Describe a situation where you had a conflict with either bosses, peers or clients and how did you resolve it?
  9. How do you see yourself in the next 5 years?  What do you want to be when you grow up?
  10. When would you be available?
  11. What is your salary/compensation expectation?
  12. Do you have any questions for me?

If they do not have any questions for you at the end of the interview I seriously suggest that you do not consider them as a candidate.  Purposeful questions and listening intently are key characteristics of top sales people.

THE FIRST INTERVIEW

Make sure that you have several team members involved.  Even your receptionist can be a vital qualifier.  After all, the candidate may give a great interview, but their true colors may be shown when they are talking to an Administrative Assistant or a receptionist.  How a sales person treats them may give you an indication of how they will be received by other companies.

You should not be the only interviewer.  The other team members will be people that will have continuous contact with a new sales hire.  Give each team member specific questions to ask that they can rate on a scale of 1-5.  In this way, every candidate will be asked the same questions.  Hold a follow up meeting with team members to discuss each candidate.  Your team members will help you narrow down your choices.

HAVE A SECOND INTERVIEW

Now that you narrowed down your choices, have a second interview.  By this time, it is strongly suggested that you have given them a behavioral assessment.  Give it to them before they come into the meeting and share the results.  This will alert you and them to differences between what they are saying in an interview and what the assessment says.  Be direct and be honest.  These assessments are there for a purpose and are accurate upwards of 90%.  They will show behaviors, drivers and what their true skills are.

By this time, you will have a good overall picture of your potential sales person.  Now you have to make sure that you have a great on-boarding process to assure their success and yours.

 

 

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