Archive for June, 2013
How to Handle Sales Rejection
Posted by Rick Pranitis in SALES BEST PRACTICES on June 28, 2013
Conventional sales wisdom has it that a sales person must drive through many “no’s” to get to a “yes,” but when considering how to handle sales rejection the better point of view to take might be how to turn those “no’s” into “yes”. By taking a more positive line on sales rejection, you can help yourself overcome the anxiety that can stall your sales numbers. Try the following exercises to support your positive attitude so that you can get to a mindset where you can overcome sales rejection through viewing it as an opportunity to sell better.
Look at Your Accomplishments When Sales Rejection Threatens Your Outlook
People tend to give the most recent events in their lives the greatest influence over their short-term perceptions. If sales rejection has been a recent trial, you may be at risk of losing sight of your past accomplishments and your future goals. You are in control of how sales rejection impacts you, and if you do not want the specter of rejection anxiety to cast a shadow on your sales numbers you should take steps to remember your positive accomplishments.
- Think about recent contracts you were able to leverage, and what you did right to get to that point.
- Keep a file of accolades from prospects, clients, peers, managers, and anyone else who sends you positive feedback so that you have something to refer to to get you over sales rejection.
- Turn your focus to what needs to change as you move forward to keep yourself on track for your long term career aspirations.
Freeze Out Sales Rejection by Arranging Your Day around Preventing It
The times that you choose to undertake your sales activities can have a measurable impact on your ability to handle and overcome sales rejection. Just consider how positive you feel when you are able to end the day with a scheduled contract signing, as opposed to the feelings you might have when you end the day with a series of unanswered or negative answer sales calls. Put yourself in the driver’s seat over sales rejection by looking at how you schedule your time.
- Schedule activities that traditionally have higher rates of sales rejection between more positive experiences such as follow-ups with strong relationships.
- After a successful presentation or close, make the positive boost in energy work for you by making a few cold calls.
- Use the last minutes of your day to wrap up positive tasks, so that a sales rejection just before you close the day does not set the tone for the next morning.
Know that Short Term Setbacks from Sales Rejection Are Just Part of the Picture
It may feel as though sales rejection is somehow filtering through the air when you encounter a series of negative responses, especially when a temporary negative trend impacts your goals for the day or even for the whole week. Do not set yourself back by projecting that negative trend any further than the last call. If you tried your best and are working to improve your tactics for handling sales rejection, your next call can be the one that says yes. Remember:
- A large part of sales is in attitude, and if you make a call expecting to be rejected, you may be encouraging a negative response without realizing it.
- Your short term goals support your long term goals, but are not the whole picture; one less-than-outstanding day does not need to devastate your month.
- Sometimes external events really do lead to a series of rejections when a whole industry is impacted; consider what is happening so that you can adjust to overcome sales rejection.
Your career in sales is what you make it, and your ability to handle sales rejection in a positive light is one of the foundation stones of your career. Never let sales rejection slow you down; stay affirmative and in control by viewing it as another opportunity for improvement.
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This article was originally posted to the Sales Force Search blog by Doug O’Grady on June 27, 2013
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Dealing with Upset Customers
Posted by Rick Pranitis in CUSTOMER SERVICE on June 20, 2013
No one enjoys dealing with upset customers, and people don’t buy a product or use a service with hopes they can call customer service to complain. You need to keep in mind the customer is not simply calling you to ruin your day. How you handle the customer’s complaint will either escalate or diffuse the situation, which will make your life much harder or much easier. And, most importantly, determine whether or not you have lost a customer or retained his or her business. So how should you deal with upset customers to ensure the best possible outcome? Here are some tips to help you out.
The moment you encounter an upset customer, your very first step is to listen carefully and be patient. Allow the customer to vent and explain the problem. It’s natural for your “hackles” to go up when a customer is yelling or starts with personal attacks. But remember, behind the emotion is a genuine problem. So carefully listen and be patient while the customer lets off their steam. If you start off defensive, it will only escalate the customer’s anger, and it will be harder to sort through the issue and get a sense for what the real problem is. Remember not to take the attacks personally, even if the customer is making personal accusations toward you – the customer is looking for acknowledgement he or she is angry, so recognize there is a problem and he or she has a right to be upset. Chances are a patient approach will help diffuse the anger. Once the customer is calmer, you can start working on addressing the problem constructively.
Once the customer has started to calm down, it’s now time to start figuring out how to address the problem and start putting your soft skills to work. Avoid phrases such as “that’s our policy,” or “you’ll have to go to our website”. The customer didn’t call to be shut down or re-directed. The customer called to speak to a live person who will help solve the problem. By reiterating the issue, you’re communicating to the customer how you clearly understand what is going on and affirming to the customer you’re listening – and HEARING!
You risk being perceived as distancing yourself from the customer’s problem by telling the customer another department will help them, or you’ll need to have a supervisor assist with the problem. Instead let the customer know upfront you, personally, will take responsibility to ensure the issue is solved, and you’ll work with them to make sure he or she ends up satisfied. By stating your responsibility, instead of simply passing the customer off (even if you will need to coordinate with another department or a supervisor to solve the problem), you’re communicating you’re on the customer’s side – you’re an ally. This personal approach will reinforce to the customer he or she is being listened to and the problem is being addressed. In a customer service world where customers are used to navigating through automated phone systems and dealing with scripted call center reps, this personal acknowledgement will stand out.
Instead of dictating to the customer your company’s policy or telling the customer what will happen, re-phrase the process by saying something such as: “What would you consider a fair solution?” When you do this, you’re helping the customer be part of the solution and help set the starting point for a negotiation, as well as setting a level of expectation for the outcome. Even if the customer suggests something that is beyond what your company can offer, it gives you a starting point to work down from so the customer is compensated for time lost on a service or a broken product.
Once you have ended the call, your job is not over. After you’ve dealt with an upset customer, it’s vital you follow-up, after a few weeks, to make sure the problem was sufficiently resolved and the customer is pleased with the result. By checking back in, you’re demonstrating your company really does care and is focused on customer satisfaction. And you’re letting the customer know his or her business really matters and you’ll go the extra mile to keep them as a customer.
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Five SMB Sales Management Blunders
Posted by Rick Pranitis in SALES LEADERSHIP on June 11, 2013
Hiring a sales staff for your small business comes with the responsibility to provide effective sales management. While many small to medium business entrepreneurs are also good sales people, not every SMB owner has a natural talent for managing a sales team. Here are some of the most common sales management blunders and how you can avoid them.
Mixing Recognition with Coaching. One common sales management blunder is to congratulate your sales force for a job well done and quickly move to areas of improvement. This tactic can often be interpreted by sales staff as a lack of appreciation. A best practice is to separate the recognition from the coaching. Save the performance improvement areas for coaching sessions. Set up separate recognition of your sales rep success even if it’s a small celebration. It’s the little gestures of respect and celebrations of achievement which gain the hearts and minds of the sales force.
No Sales Plan. Another common sales management blunder is: not developing a sales plan to help manage the sales team. A successful sales team requires regular planning tracking, and review to achieve their targeted results. Every sales representative requires their own action plan to direct day-to-day activities and set up accountabilities.
All sales plans have at least three requirements:
· Sales Rep Development: Where most plans fail is they are developed by the sales manager not the sales rep. To ensure a high level of plan acceptance, have the rep develop the plan and guide them toward the right objectives.
· Regular Reporting: Sales plans should be established on a weekly basis to provide flexibility in the planning cycle. Reviewing can take place on a monthly basis. Sales management excellence involves reviewing the results against the plan to determine missed opportunities and areas for improvement.
· Sales Metrics: A successful sales plan focuses on results and activities. Establish the proper sales metrics to drive your business results. Metrics can include: number of client phone calls, number of contacts, appointments set, appointments conducted and sales closed. Do not overwhelm your sales staff with excessive tracking numbers. Focus on the few measures that matter the most to your business.
No Sales Support. A common sales management blunder is to hire a sales person without providing them with the level of support required to succeed. Even if your new rep is well-versed in your industry and a top performer, they will still require help to familiarize themselves with your company, products, and markets.
Not all sales reps require the same level of support. For many small business owners, a hands-off approach to sales management is not the best strategy. Successful sales management requires a commitment to sales force training. Regardless of the size of your firm, an investment in sales training and support can pay big dividends on profitability. Spending the time one-on-one and in the field with your sales team will not only provide support but convey a sense of the importance of sales people in your organization.
Focus on Control Sales Management. Many new and unsuccessful sales managers will focus on the traditional sales management by intimidation or control approach. The top sales performers know they have a valuable skill set and will quickly walk to a competitor if treated poorly. Sales management is a partnership between the sales rep and the sales manager. Effective sales management requires sharing in the responsibility to find the problems and bottlenecks in your sales process. Seek the solution together with your reps. Be a champion for helping them achieve their agreed results.
Lacking Sales Accountability. There will be times when sales reps fail regardless of the support and training they receive. It is easy to pass off the lack of results to external forces such as competitors, the economy, or poor marketing. Remember the sales rep was hired to bring in sales. When support, training, and market potential are available, a lack of results often means it’s the rep’s performance.
A lack of performance can be traced back to your sales management program. If your small business lacks a clear policy of sales accountability, it remains your responsibility to implement the process. Creating a culture of sales accountability will not happen overnight. Expect to lose sales staff. A Sales person who has underperformed and will not accept personal responsibility for their own results will leave. This is a good thing. A sales accountability culture only accepts top performers – which is exactly what your business needs to survive in a competitive market.
Growing a small business is hard work. The sales management function is often overlooked by small business owners. Spending the necessary time wearing your sales manager hat will help foster a rewarding culture and build a successful sales team to boost your business to new levels.
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Do You Let Customers Set Prices?
Posted by Rick Pranitis in GENERAL DISCUSSION, MARKETING on June 4, 2013
If you ask a group of product management and marketing leaders most, if not all, will say they carefully develop pricing according to a set business strategy, and their pricing is guided by three requirements: the needs of the buyer, the value the offering delivers and profitability. However many will fail to set strong pricing policies to ensure the fruits of the strategy are delivered. Without this policy, every transaction runs the risk of becoming an “exception,” and customers – not the organization – end up setting prices.
A strong pricing policy clearly spells out pricing, how it’s structured, and what metrics are used to value the offering. It indicates the criteria customers must meet to fit into each price band. It also explains policy (e.g. price protection, raw-material cost increases, etc.). Finally, it provides direction to the sales team on how to manage price objections.
To maintain the value of an organization’s products or services, a best-in-class policy provides a menu of tradeoffs salespeople may offer when negotiating with buyers. Say a company has a budget of $25,000 for software. Your proposal comes in at $32,000. Do you discount? No! Offer tradeoffs of service levels or usage access. That way, customers come to understand the pricing is not open to negotiation, but a solution can be reworked to fit the budget. Once customers are used to working with your organization in this way, they will no longer assume they can negotiate, and will better recognize the value of your offering.
Once you have built strong pricing policies, make sure you do two things: First, educate your sales force on the pricing strategy and policy, and provide them with tools (e.g. ROI models and case studies) to support the policy. Explain the tradeoffs they may offer customers, and role-play negotiating scenarios with them. Second, develop strong pricing policy enforcement at the regional level. How is this done? First, include regional marketing and sales teams when developing the policy, so they can stand behind it. Second, allow no exceptions. Reject all quotes which go against the policy. If field marketing and sales data indicate that the policy is not competitive, (then) consider revising the policy as well as the pricing.
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This article was originally posted to the Sirius Decisions Blog by Lisa Singer on April 24, 2013
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