Archive for April, 2013
12 Key Steps to Improve Your Sales Team
Posted by Rick Pranitis in SALES BEST PRACTICES on April 25, 2013
“Grow your sales force in quantity and quality. And if you grow your sales force in quantity and quality, they in turn will grow your sales,” says sales training and coaching expert Jack Daly in his Fridays with Vistage webinar. His presentation, “Getting the Most of Your Sales Force: 12 Activities For the Winning Sales Leader” addresses the most important factors that management can practice in order to build a successful sales force. He explains these 12 key factors as follows:
1. Ranking of the Sales Staff and Minimum Standards of Performance: “All sales people should not be treated equally,” he states. As sales personnel have different capabilities, experiences and territories, the plan and minimum performance standards negotiated should be customized for each individual. The sales force should be ranked at least monthly, and consider replacing your bottom tier for better prospects and to improve company culture. He suggests, “low turnover is NOT a good thing. Low turnover of GOOD Performers IS a good thing.”
2. One-on-One sessions: Managers should meet with each member of the sales team for one-on-one sessions to discuss pipeline, goals and activities, touch system and for coaching at least once a month. If possible, meet weekly to examine what is making them successful or unsuccessful.
3. Inspect the Baskets – Proactive Pipeline Management: Each team member’s pipeline should be divided into two categories: prospects and clients. Prospects should be ranked in order of importance, and records should be kept on how and how often they’ve been contacted and, most importantly, why a prospect hasn’t become a customer yet. When prospecting, identify which businesses have the most opportunity, and spend time targeting them more frequently rather than prospecting to more companies. He suggests that more touches can create more trust, and people buy from companies they trust.
4. Inspection of Prospecting Touch System: Studies show; most organizations don’t begin to remember a company, until at least nine contacts have been made. Most organizations quit contact after five or less unsuccessful tries. Use different media to contact clients and prospects including phone calls, emails, direct mail and social media. Also, customize your contact agenda with industry-specific info and ideas or messages that appeal to the personal interests of the contact.
5. Goals and Key Activities Inspection Process: Each salesperson should create their goals in writing and have a written plan on how to reach goals as wells as a system of measurement and a system of accountability. Break long-term financial goals into weekly amounts, and identify the key activities that need to be done in order to reach those goals. Keeping accurate measurements of the process will help make them accountable.
6. Training is a Process, not an Event: “If you’re NOT training, you’re NOT Gaining,” says Jack. Each team member’s performance should be analyzed, and they should be continuously trained by doing field calls, role practice, one-on-ones, progress reviews and other techniques.
7. Field Calls: Managers should incorporate field calls into their training programs. The three scenarios for field call training include joint, training and coaching calls. Joint calls are when both manager and salesperson participate equally, training calls are conducted by the manager, and coaching calls are conducted by the salesperson. Debrief after calls to discuss what worked well and what could be improved.
8. Role Practice: “If your sales people are not practicing inside their company, where are they practicing?” asks Jack. Doing 3-person group practice calls where members alternate in the roles of salesperson, prospect and observer will hone their skills in a constructive environment without having the potential of losing prospective business.
9. Building the Success Guide: There are only so many variables in a sales call, and sales staff can prepare themselves beforehand by composing a case-specific guide to study these variables thoroughly. They should ready themselves for each call by knowing company products well, which questions to ask and which unique objections that prospects are likely to encounter. Top sales people can anticipate these variables so well that their actions and reactions can almost become “canned.”
10. Effective Sales Meetings: Hold sales meetings regularly that communicate a clear purpose, have assigned actions, and include follow-up steps.
11. Progress Reviews: Managers should meet with individuals to set future goals and give feedback on their progress. Consider doing pre-emptive reviews that outline objectives for the upcoming quarter and areas needed for improvement. That way there’s written documentation if goals are accomplished or haven’t been met.
12. Recruiting and Upgrading the Sales Team: Companies should always be recruiting for better sales personnel. Recruit staff from other companies; don’t promote poorer sales people within just to fill positions. Spend the time to get to know the inner person you are hiring, and hire those with the best attitudes. Jack encourages employers to “hire smart verses managing hard,” and to know the position profile to help define what would be the perfect candidate.
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This article was originally posted to the Visage.com blog by John Bogdon on April 5, 2012.
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The Four Most Important Words in Sales
Posted by Rick Pranitis in GENERAL DISCUSSION on April 23, 2013
In sales, these four words most often will determine whether or not you deliver excellence and in doing so, close the sale:
· Accountability
· Communication
· Comprehension
· Consistency
While not seeking to minimize our profession, these four words can literally mean the difference between success and failure in any sales organization.
Accountability – “The quality or state of being accountable; especially an obligation or willingness to accept responsibility or to account for one’s actions”*
These are powerful words…quality, obligation, responsibility…and day in and day out, everyone is held accountable for something. In most cases, accountability is a two-way street – people and organizations are accountable to each other. For example, a mortgage company agrees to accept the obligation of loaning the outstanding value of a property to a buyer, who in turn agrees to be accountable and pay the monthly payment along with the agreed upon interest. Teachers meet their obligation of providing an education for their students and to teaching the curriculum their superintendent outlines, and students (and parents) are obligated or accountable for attendance, homework, behavior and studying.
Yet, when it comes to work, accountability is what most employees fear most. No one wants to be held accountable, least of all sales employees. This leads directly to communication, comprehension and consistency.
Communication – “A process by which information is exchanged between individuals through a common system of symbols, signs, or behavior; also exchange of information; sign language = road rage”*
Information exchange. It seems simple enough, yet miscommunication takes place more often than not, especially in business. As a manager, it’s not enough to think that your employees know what is expected, nor is it enough to simply tell them. People communicate in different ways and require different resources to ensure communication is remembered and learned. Some learn by hearing, others by seeing, and still others by doing. Effective communication requires all three methods. Tell your employees, show them and then have them do it.
Even so, is this enough? Do people remember after a single communication? In our world today, there is so much “noise” that for communication to truly be effective, it needs to be repeated and recorded. People seeking to drown out superfluous noise practice selective hearing, which further complicates effective communication.
Managers must tell employees clearly what their job is, what the expectation is for their sales and/or customer service performance every day, how they are measured, where to go for more information, how to handle challenges or problems, and even things as simple as how to dress.
Employees must have access to the necessary material, Internet, books and other resources that can serve as references to what they’ve been told to make their jobs easier and to set them up for success. For example, if your business uses the Internet, be sure your employees have full access to internal resources as well as to the customer view of your business as reference tools.
A good example of this is Coldwater Creek, a retail women’s clothing store. When a customer is in a store and requests an item that is not available, a salesperson can immediately go to a computer with the customer, look up the item online, help the customer with the selection process, close the sale and offer to have the item sent either to the store or directly to the customer. In addition, the salesperson can access internal information that tells them if the item is available in another store, is discontinued, will be going on sale, or other internal data that helps them communicate and close the sale. This is an example of service above and beyond with the interest of the customer coming first.
Even the best communication, however, is worthless without comprehension.
Comprehension – “The act or action of grasping with the intellect: understanding”*
Do your people understand what they are accountable for? Most people will answer, “yes,” yet most of the time people make mistakes or fail to meet expectations because of a lack of understanding. Comprehension cannot be assumed. Without a clear understanding, employees either do what they think should be done or what they feel like doing. Rarely, will they meet expectations.
Comprehension comes when an individual has a full understanding of what is being done, how it must be done, and why it matters. To fully comprehend, an individual must be involved in the process. They have to understand the benefit for himself or herself – like the great radio station WIIFM (What’s In It for Me), and for the customer. Using a simple example, if you ask someone to jump off a bridge, 99% will ask why. They need to understand before acting, because it could be their “final act.” The same is true in business. Employees, who understand why processes exist, perform better. Often, simply asking questions will provide a reality check on whether or not an employee understands, and whether or not management is communicating clearly. This is not a dress rehearsal.
Consistency – “Harmony of conduct or practice with profession”*
Another primary cause of misunderstanding is a lack of consistency from one manager to the other, or even by the same manager. If employees are educated on processes and expectations and they are applied inconsistently they are left wondering what to do. How can any employee be held accountable if the rules change day to day? Managers must be consistent. And, if changes are made, they need to start back at the beginning, communicate what employees are responsible for, ensure comprehension and apply the new standards consistently. Only then can managers hold employees accountable and business achieve sales and service excellence.
Have you ever wondered why a veteran airline pilot, walks around the plane before take-off and then meticulously goes through a checklist before starting the plane? Even pilots who are 25-plus-year veterans consistently go through the same process before every flight. That pilot knows – comprehends – that the procedures and processes that have been communicated are in place to ensure that the plane and its passengers arrive safely at a destination, a trip that he as the pilot is accountable for.
Accountability, Communication, Comprehension, and Consistency – when taken to heart and applied by management with their people, these truly are the four most important words in achieving sales excellence.
*Source: Merriam-Webster, m-w.com
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This article was originally posted to the SSM Sales & Marketing Management Blog on April 11, 2013 by Richard F. Libin.
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How to Take Over a New Sales Territory
Posted by Rick Pranitis in SALES BEST PRACTICES on April 10, 2013
The protocol for taking over a new sales territory depends largely on the type of territory into which you’re moving. Is this a territory where you will, for the most part, be pursuing new sales opportunities? Or, is it a sales territory where you will primarily generate new business through existing accounts with established relationships? In other words, will you utilize the Hunter or Farmer approach? The two role definitions below offer some tips on how to attack each of these new sales territories.
“Farmer” Sales Territory Protocol
“Farmer” sales reps usually work primarily with existing accounts, and take on a quasi-consultative role. They are very customer-centric, and nurture relationships and opportunities from within those secured accounts. They cultivate new sales opportunities through these relationships.
Two things to remember about the “Farmer” Sales Territory:
- You most likely have outgoing sales people who should be consulted prior to taking over the territory. Since the outgoing sales person is a farmer, he or she should be able to offer valuable insight and customer information. It’s crucial you obtain the proper customer knowledge so you’re able to continue cultivating the relationship to the point new sales opportunities can be uncovered and capitalized on.
- The outgoing sales person should accompany the new sales person on a minimum of one meeting per client. It’s essential the transition from one representative to another be handled seamlessly and professionally so the customer is convinced they’re still in the hands of a strong player who will always satisfy their needs and behave in their best interests. This will be to the overall benefit of both the clients’ and sales person’s organizations.
“Hunter” Sales Territory Protocol
“Hunter” Sales People are generally those who continually look to secure new accounts and new relationships. These types of sales people draw their energy from winning new opportunities, and securing new business for the sales organization. They are charismatic, independent, and generate lots of excitement. They continually hunt for the next new sales opportunity.
In the case of “Hunter” sales people, the territory transition can be a bit trickier, and as a result there are more steps you may need to take in order to assure it remains a successful territory in the long run.
- The incoming sales person must spend time with his or her sales manager. It is paramount these “Hunters” know the lay of the land before they go in guns blazing. It’s very possible that the sales manager has some inside knowledge about the territory which is critical to properly managing the territory. Or perhaps the sales person’s predecessor didn’t do something well – good information to have when trying to convert new business.
- If at all possible, the new sales individual should meet with the outgoing sales representative. Granted, this may not always be possible, but valuable information can be obtained during these meetings. Don’t miss this opportunity.
- Finally, the new person stepping into the territory should also meet with the sales operations leader. The sales ops leader will have access to background on details within the CRM system (for example: Salesforce.com) which will further educate the incoming sales person on all of the existing accounts and opportunities in the territory. Additionally, they’ll be able to pull information on the current stage of the sales process for existing opportunities. The client opportunity stage in the sales process is incredibly important intelligence the incoming sales representative should acquire as they start the selling process to the clients in the territory.
Make no mistake about it – the #1 key to success when taking over a new territory is information. Whether you are utilizing hunters or farmers, all sales people must know the customer and know the territory before trying to lock down any new opportunities.
Answer these questions: Who is the customer? What do they buy? How do they buy? When do they buy? What are their most compelling business challenges? All of this information will aid in orchestrating the proper sales strategy, as well as leading the clients through the sales process in the perfect manner that fits their needs (and yours!).
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This article was originally posted by Bryce Record to the Sales & Marketing Effectiveness Blog on April 8, 2012.
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Never Say “Thank you for your business.”
Posted by Rick Pranitis in CUSTOMER SERVICE, GENERAL DISCUSSION on April 1, 2013
Every sales person appreciates winning a big order from a key customer; but it’s rarely appropriate for him or her to say so to the customer. Saying “Thank you for your business” is bush league, and can significantly weaken your position.
Top performing sales executives recognize that customers buy their solutions because to do so makes good business sense for the customer’s organization. That isn’t to say that personal relationships don’t play an important role in the process. Strong relationships throughout the complex network of buying influences can play a significant strategic role in the sales rep’s ability to understand and communicate the relevant value that their solutions offer their customers’ organizations, to the exclusion of the competitors.
World class sales organizations train, coach, and provide the tools necessary to enable their sales reps to systematically investigate, identify, quantify, and prioritize customers’ specific value drivers, and enable them to formulate and communicate high value solutions across the buyer’s organization in order to clearly differentiate their offering against the competition.
Receiving a big order is confirmation that the sales team has successfully established its solution as offering superior value versus the alternative competitive options. This is no time to weaken your value proposition with a bush league “thank you”. Receipt of the order means that it’s time to proactively manage your customer’s post purchase evaluation phase. A strong competitor is not going to go down without a fight, and purchase orders have been known to be withdrawn after their award for a variety of reasons. Receipt of the purchase order means it’s time to reconfirm to all of the important buying influencers that their decision was the correct one. Saying ‘thank you’ serves virtually no purpose towards this objective, and will more likely plant seeds of doubt about their decision.
Send your customer a message that successful execution of this project is a top priority to your organization, and that it will be planned and executed in a manner that exceeds the expectations of the customer. Be careful not to open any cans of worms that may potentially cause doubt, but be thorough in communicating that your organization has a solid plan to execute and deliver.
While it is certainly acceptable, and generally expected, to send an order confirmation, the confirmation should convey the message; “We look forward to working together with you to ensure the successful execution of this very important project,” versus “We would like to thank you for your business.” Below is a sample listing of some key activities you can initiate to solidify your position and competitor-proof your Purchase Order.
- Provide your customer with a Point/Counterpoint Table illustrating the customer’s key issues and how your offering will successfully address each;
- Initiate an internal project kickoff meeting to ensure that your organization is prepared to deliver 100% customer satisfaction;
- Submit a detailed production, service, installation schedule that illustrates how your solution will meet the customer’s key milestones;
- Initiate a joint production kickoff meeting with your customer and the key influencers in the decision;
- Develop a joint project communication protocol and milestone update schedule that highlights the collaborative teaming nature of the project;
Yes, receiving a six, seven, or even an eight figure purchase order is a milestone that deserves celebration. It may have taken you and your team months to secure such an order. But don’t put such a huge win at risk by letting down your guard. In today’s highly competitive business environment, receipt of the purchase order doesn’t signify the end of the race. It represents the beginning of a joint collaboration between your company and your customer’s team to successfully execute and deliver a complex high value solution that will solidify your long-range organizational relationship.
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This article was originally posted on the Sales Racehorses blog.
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