Archive for March, 2013
Do You Have A 90 Day Sales Rep Success Plan?
Posted by Rick Pranitis in GENERAL DISCUSSION, SALES LEADERSHIP on March 25, 2013
Fortune 500 companies have a structured “On Boarding Process” which every new sales person follows. The plan lays out detailed time lines and benchmarks, specific action items and goals. This formal process is great for both the company and the new representative because it leaves nothing to interpretation and establishes shared expectations. The initial training is structured and detailed; giving your new employee the knowledge and confidence that your organization has a plan and intends to succeed.
The problem arises within many of small to mid-sized businesses. In most cases, these are owner-operated companies where the on boarding process and training falls to the owner or manager of a small sales team. Although the intentions are always good, regularly you’ll hear from the new sales person there was no process in place and they spent too much valuable time trying to figure out what to do and how to do it. Secondly, the new rep is often not sure what is expected of them in terms of direction and performance. “Welcome to the company. Here’s your price book, now go out and sell,” is not a recipe for success or a viable On Boarding Process!
Not having a process in place from day one results in the sales person losing direction and becoming frustrated, and the business owner being disappointed and fearing they have made the wrong hiring decision. So how do you fix this problem? First, regardless of the size of your organization, you must develop a written plan of action that lays out specific actions, goals and timelines for the first 30, 60 & 90 days, with a continuing plan for the first year. This may sound like a daunting task but it is actually much easier than you would think.
If you are the business owner & COE (Chief of Everything), you should look for outside expertise to assist you with this process. This can be an inexpensive way to develop a quick start program allowing you to remain focused on revenue driving activities. After all, you most likely hire an accountant, web-designer, and IT firm so why would you attempt to self manage the one area of your organization which directly affects your bottom line? Each dollar in lost sales opportunity is revenue you will never recover.
The complete 90 day plan needs to include goals, activities, product training, competition, prospecting, order processing, customer service, market evaluations, performance metrics, as well as simple things like getting to know your company and its people. Once you have a sales process in place, your new sales rep will be highly motivated, more confident and able to perform better. A detailed template you can use to create your 90 day sales rep success plan is included in the book, “Action Plan For Sales Management Success”.
Consider this analogy; You may be a good driver but will you take the time to teach your son or daughter to drive or would you rather they go to an accredited driving school? Besides, if they learn from a driving school, the insurance companies will provide a discount. It’s a better ROI for you and less stress for your kids. The same theory applies to your On Boarding Process. What’s the fastest way to make a new sales person profitable?
Studies show companies with a defined sales process consistently outperform those with no process. After all, as Harvey Mackay once said, “Failures don’t plan to fail; they fail to plan”.
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This article was originally posted by Robert J. Weese on March 12, 2013 at the B2B Sales Connection Blog
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Are We Moving Beyond The Consultative Sale Model?
Posted by Rick Pranitis in GENERAL DISCUSSION on March 21, 2013
If you look back over the last hundred years or so, there have been three or four major shifts in how major organizations sell. Each period was dominated by a specific sales model and best practices for implementing that model.
Clearly the “king of the hill” for the last thirty to forty years has been Consultative Selling. Consultative Selling emphasizes the importance of moving from a product-centric to a customer-centric sale. A focus is placed on doing a superior job in building relationships and uncovering and developing customer needs. The art and science of asking questions is a pivotal skill set.
Now for sure, each business organization and each training company has their own particular twist on Consultative Selling – for example: different questioning frameworks. But the underlying assumptions and fundamental skills are the same.
It is important to highlight, as compared to the product-centric approach, Consultative Selling has proven to be a dramatic improvement – it has worked and worked well.
With that said, if one looks very carefully, it’s possible to discern the emergence of a new model for selling in B2B markets. Like most paradigm shifts the change is not happening everywhere, all at once – over night. Instead, the change is emerging in phases with some markets and companies spearheading the way.
The important point is to be aware a change is happening and to start exploring the importance of the shift for your organization. With this in mind, let’s take an initial look at the new sales model and explore why the change is occurring.
This new sales model maintains a customer-centric approach, but the assumptions about the expectations of the customer are different. Let’s examine that difference.
Some customers are changing from wanting consultative sales people to wanting expert sales people. These customers are becoming increasingly impatient with sales people who consistently start calls with a “discover your pain” discussion. They expect the sales person to have a good handle on their needs and interests before the call. So time in the call can be spent on diagnosing and integrating the problems and on generating alternative innovative solutions which will have a positive impact on the customer’s business.
In order to conduct this type of call, the sales person must know beforehand the economic, political, market, and regulatory trends driving the customer’s business. With this knowledge in hand, they can bring a point of view to the discussion, ask second and third-level questions and work with the customer to formulate a business solution, as opposed to, starting with a basic discovery conversation. Today’s problems are complex and time matters. So customers cannot afford to start at square one to help every sales person understand their business issues.
Anytime there is a paradigm shift, it’s interesting to ask the question: Why now? Usually there are a number of voices speaking out but seldom is there total consensus. But what is common is some trend which defines the change and a match that ignites the change.
In this case it could be speculated the underlying driver is the fact customers in a wide variety of markets are facing the necessity to up their game. Market economics are demanding, competition is tough and getter tougher and a lot of the old answers have been played out.
So business-as-usual is not going to carry the day and changes which are simply incremental may help you to survive but not to prosper. Customers need new ideas they can use to innovate their business and they are expecting their suppliers to help. This business dynamic has been occurring for some time and some companies have gone through transformational changes in order to adjust.
But, what was the match that lit the fire for change in the sales function? Again consensus is unlikely to be found … but here’s something to consider.
The match which started the movement toward Consultative Selling – the key event which brought Consultative Selling to emerge – was the research done by Neil Rackham’s Huthwaite Research Group. This was subsequently turned into the all-time best seller – SPIN Selling. The research provided the credibility and the book provided the how-to.
As was the case forty years ago, a new piece of research has been conducted and a new book has been published to provide the foundation for change. In this case, the research was done by the Sales Executive Council and the book was authored by Matthew Dixon and Brent Adamson. The book is entitled The Challenger Sale.
It’s always hard to tell whether a new set of ideas are a vanguard for an important change or simply a creative fad for promoting discussions. In this case, you may not want to bet against the former.
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This article was originally posted by Richard Ruff on June 20, 2012 to the Sales Training Blog
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Coaching – A Critical Element of Sales Performance and Retention
Posted by Rick Pranitis in GENERAL DISCUSSION, SALES LEADERSHIP on March 1, 2013
Most sales managers would agree that coaching their sales teams is key job function contributing to their success. However, when it comes to actually defining what the term “coaching” means, how best to do it, and what are its affects in the long term, each sales manager would probably have a different opinion.
What is coaching? Is training and coaching the same thing? How much time should a sales manager spend coaching? How much time do they actually spend? What type of sales rep benefits most from coaching? Do top performers need it? What are the best ways to coach? Does it affect sales staff turnover?
Leslye Schumacher of Talent Bits and Bytes recently addressed these issues in her blog post, “How Much Time Should Sales Managers Spend Coaching Their Salespeople?” You can read the entire article here. In my opinion, it’s a must read for anyone involved in managing sales people.
In this very well researched article, Schumacher quoted several studies that give much clearer answers to these important questions. Here are some of the highlights:
- To maximize sales results, the optimal amount of coaching is 5 hours per month per sales rep.
- Salespeople that are coached daily outperform other salespeople by 30%.
- What prevents sales managers from coaching is the time spent on administrative tasks, the time spent direct selling, and lack of training in proper management techniques.
- Only 7% of sales managers were found to be effective at coaching without training.
- Core salespeople receiving ineffective coaching averaged 83% of goal attainment. Their performance rose to 102% when they then received effective coaching.
- In regards to retention, top performers were 50% more likely to stay if they received good coaching
The conclusions are clear. These statistics prove what the top sales managers have been practicing for years; coaching works and you have to plan to make time to do it! Not just any coaching, mind you, it has to be effective. Take the time to learn how to “show how, not do for” properly, and you will be a better sales manager for it.
Remember as John Quincy Adams once said, “If your actions inspire others to dream more, learn more, do more and become more, you are a leader.”
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This article was originally posted on A Sales Compass on February 13, 2012 by Susan A. Enns
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