Archive for category GENERAL DISCUSSION
12 Elements of a Great Sales Playbook
Posted by Rick Pranitis in GENERAL DISCUSSION, SALES LEADERSHIP on May 17, 2013
The implementation of a sales playbook can be one of the most impactful initiatives for any sales organization. There are two reasons for this tremendous ROI. First, by following some simple guidelines, it can be a remarkably easy initiative to implement, and second, research shows that this results in 33% additional revenue.
Here are twelve elements of a great sales playbook that you should use to guide your implementation.
1. Repeatable Winning Sales Processes
The key word here is ‘repeatable’. When everyone adopts the same sales process, there is a common language that is understood, not just by sales, but by the whole organization. Recent research shows that while only 60% of sales teams have a sales process that is well defined, and well executed – those who do are 33% more likely to be High Performers*.
2. Customized to the Buying Cycle
Customers buy in lots of different ways; some purchases are guided by a single decision maker, while in other cases there can be a large buying committee. Some issue RFPs (health-warning!), others invite recognized suppliers to discuss their issues, an increasing number learn in the Social Universe, and just a few remain with the incumbent supplier trading ‘the devil you know’ for potentially more advanced or competitive solutions. Unless you visualize the journey the customer wants to take, you won’t be with them when they reach their destination.
3. Sales Tools in Context at Each Stage
At each stage of the buying process, salespeople need to employ just the right tools – at the right time to advance the sale to the next stage in the process. A B2B sale is not a single event. In fact it is a collection of micro-sales events, each crafted to move closer to the eventual goal. Salespeople are busy and often don’t know which tool they need, where to find it or how to use it at the specific point in the micro-sale. Integrating sales tools into the playbook as part of the sales process is the solution.
4. Industry Sales Process Templates
It is widely accepted that tailoring your sales process to the specific needs of an industry will increase your chances for success. Third party industry sales templates are readily available from suppliers who have been tracking and analyzing millions of sales cycles. That is the catalyst you need to get started.
5. Many Simple and Complex Processes
One playbook or sales process does not fit all. Sometimes you are pursuing a brand new customer or a very large deal that demands a complex and sophisticated set of ‘plays’ to win the deal. In other cases, the transaction might be quick, one that suggests a different rhythm. Your sales playbook should have the requisite intelligence to support that automatically and serve up the right playbook at the right time.
6. Process, Benchmarks and Insight
Benchmarking delivers many advantages for companies looking to improve the performance of their sales organization. Your playbook must capture those benefits, learn from them, and uncover insights that help you to drive your sales velocity. When deploying a playbook, ensure that you have built in a capability that guides you to progress through these stages of evolution for your sales team.
7. Team Visibility for the Sales Manager
Being a front-line sales manager is one of the hardest jobs in sales. It is also the critical link in sales. Unless the sales manager has all the tools he or she needs to easily manage the business, the whole performance of the sales organization could suffer. You need to provide them with the ‘Easy Button’. Sales playbooks are often designed just with the sales person in mind. Remember that the sales manager is the critical link.
8. Integrates with CRM System
This one should be a ‘no-brainer’. The playbook must integrate tightly with the CRM system so when the sales person works with an opportunity, the playbook will always be present, just where it needs to be. That way the playbook (if it is smart enough) can react to the attributes of the opportunity, like the size of the deal, or the products included in the opportunity record to present the right playbook for that opportunity. Complete integration with your CRM delivers the optimum experience for the sales person, and provides sales managers with greater flexibility on how they view the data in the context of the rest of the business. It is important.
9. Informs Sales Forecast Visibility
Salespeople spend about 2.5 hours each week on sales forecasting, and for most companies, the accuracy of sales forecasts leave a lot to be desired. To maximize the impact of your sales playbook on the accuracy of your sales forecast, there are two things to consider. (1) Does the sales playbook incorporate intelligence that objectively monitors the close date of the sale? (2) Does the sales playbook provide the sales manager with insight into deal vulnerabilities and risks in the forecast?
10. Motivational and Visual
There are only two reasons why an individual does not complete a task. Either they do not have the competence, or they are not motivated enough to do it. Think about that – these are the only two reasons. Your sales playbook should improve competence and increase motivation. The competence piece is easily understood.
Motivation is a little more challenging. A study on What Motivates Sales People shows that, perhaps surprisingly for some, compensation is not the primary motivator. ‘Making Progress of Winning’ is ranked by sales people as the main reason they get up in the morning. To entice adoption of the sales playbook (rather than force compliance) your sales playbook needs to provide true value for the sales person – resolve that reward/effort equation, so that the salesperson gets more back from the playbook that they put into it.
11. Social and Collaborative
As B2B companies rely more heavily on social collaboration tools, some of the biggest gainers are going to be salespeople. Sales people who are the leaders in their organization are using social tools such as Chatter in Salesforce to improve collaboration in their own sales teams. Leading sales playbooks help by letting everyone ‘follow’ the plays, contributes to the conversation, and collaborate on the deal. The B2B world is constantly becoming more social and collaborative and you should ensure that your sales playbook accommodates this advancement.
12. Mobile and Cloud
Time is precious, and the sales person’s time is incredibly precious, both to them and to the sales organization looking to maximize the performance of their key quota-bearers. Since so much of a sales person’s time is spent moving between A and B and back again, they should be equipped with the mobility to connect to their sales playbook allowing them to be responsive, productive, collaborative and consistent at any time, wherever they are. In other applications, mobile and cloud capabilities are being leveraged to facilitate access anywhere, anytime. It must be the same with your sales playbook.
Unless mobile and cloud are core elements of your sales playbook plan, the initiative could face severe challenges in a very short term.
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This article was originally posted to the Dealmaker® 365 blog by Donal Daly on May 12, 2013
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A Business Owner’s Simple Guide to Ruining a New Employee
Posted by Rick Pranitis in GENERAL DISCUSSION on May 7, 2013
Most small business owners are not human resources experts, so dealing with hiring/staffing issues is often difficult. Additionally, most tend to gravitate toward what they enjoy, and for business owners that’s usually working with clients, generating new business and developing personal relationships. This can sometimes leave internal practice management issues neglected, with employee relations being perhaps the most overlooked area.
Here are some of the mistakes that some SMB owners most often make when they hire new employees:
Not knowing or understanding the role. This is probably the biggest hurdle, but it is the easiest to avoid. It takes firm owners asking themselves the tough strategic planning and vision creation questions which they sometimes put off. Owners need to have a good idea of where they want to end up so they can shape how they want professional staff to help get them there. They need to ask: Will more of the same get me where I want to be? Or is the new hire going to bring with them the introduction of a “fresh air” approach within the organization? And, am I willing to accept the changes that will bring on? Often, firms are reactive and hire backward due to an unexpected increased workload and operate in the “just get me somebody” mindset. This type of short-term thinking can lead to bigger problems further down the road. In other cases, when business owners think they have an idea of what they want their new hire to do and how they want the new position to look, despite what may be to them a clear internal perception, they do not communicate it well or fully to the candidate.
Assuming too much. This is a symptom of the first pitfall. Owners sometimes assume the new hire knows what the position should entail and the new hire assumes the owners know what they want. All of this assuming is a recipe for disaster because the relationship never gets started off on the right foot. Candidates should have a good idea of what type of role they think they would perform the best in, but the buck stops with the owner to have a strategic vision for the firm and a specific vision for where and how the new candidate fits. Further, this vision must be consistent, and not reactionary or constantly changing.
Little to no ongoing communication/mentoring. This is a direct effect of assuming too much. Communication is critical, especially during the on-boarding stage and directly after. Business owners are usually hiring someone because they are beyond overloaded and therefore can’t spend the appropriate time getting the new hire up to speed. Yet for many top talented individuals, mentoring is the primary reason they choose to join a certain firm. They deeply desire an experienced mentor that is willing to spend the time to teach them the side of the business of which they’re unaware or haven’t fully experienced. In some cases, this is why many gravitate toward smaller firms and sometimes take less pay.
Throughout the mentoring process, regular communication is imperative. Always let your new hires know where they stand. Younger employees are used to constant and instant communication through texting, MySpace, Facebook and Twitter. It would almost be impossible to over-communicate with your new hire from this social genre. If you don’t deliver on the mentoring, you lose a crucial chance to help build firm loyalty with your “newbie.” If you know you are not a good mentor (and not all of you are), find someone, or work out another process for training and working closely with your new hire.
No involvement in the decision-making process. If business owners see their new hires as being part of the firm long-term, then these employees should be included in the firm’s decision-making. Owners don’t necessarily have to use a new hire’s suggestions, but a new hire that knows he or she is heard will likely find more satisfaction and show more loyalty. Follow the lead of some of the larger public firms, which bring all of their new hires together to get their unbiased, untainted, fresh ideas and fuel creativity and company innovation.
Viewing candidates as “Mini-Me’s”. Some firm owners try to make new hires exact replicas of themselves. From the outside looking in, this often makes little sense, but it is still attempted frequently by small business owners. Ideally, you want to minimize overlap and maximize talent over a broad set of areas, especially in a small firm. Resist the urge to force your skill set template onto the new hires even if they are receptive. Frustration can build on both sides when this approach is tried. Your firm will benefit most if your new hire has a skill set that complements yours, not one that clones it.
Not providing challenging and meaningful work. New hires will have a longing to pursue meaningful and challenging work so that they can add value to a firm. Give them projects and increase the level of responsibility as they prove themselves. It is up to the new individual to prove his or her skills, but it is the manager’s job to push new hires out of their comfort zones and help them avoid stagnation. Keep in mind that part of letting them try different things to build their experience means letting them make mistakes too. We all learn from failure, we grow from failure, we innovate from failure-if we don’t fail, we don’t grow.
The feedback trap. Avoid giving only negative feedback and disguising it as constructive criticism. Consider how you give your clients feedback. This is a great way to approach things with your new hire. At the onset of a great client relationship, you provide honest feedback about the positive aspects of the situation and the areas that need the most focus. It shouldn’t be any different with new hires. Consider the different ways you communicate with different clients. You will need to find the communication and feedback style that works with your new hire. Consider personality profiles or other behavioral surveys to understand the best way to get the most out of your new hire. Keep in mind, in this highly transitory society many of new hires may be from diverse backgrounds and cultural environments. So finding the best approach to relate, communicate and manage them will save you time and headaches. Plus, don’t forget feedback is reciprocal. Don’t be offended when they give you honest feedback about your performance-it can only make your firm better.
Lack of a career path. Small business owners sometimes struggle with the transition from hire mode to post-hire mode. This is similar to politicians who are always in getting-elected mode even after securing office. It is prudent for owners to think to themselves, “OK, they are hired, now what do I need to be doing, other than signing a paycheck, to give them opportunities for career progression?” Most new employees are not going to be satisfied staying in the same position for their entire career. Furthermore, if you cannot produce a career track or describe how one might look in your firm, be ready to lose out to other firms that can.
Not sticking to your guns. If you don’t have the first issue above figured out, an accurate job description can’t be developed. If you don’t have an accurate (written) job description, it is virtually impossible to ask the right interview questions. Plus, without these two items, job performance metrics can’t be developed. Resist the temptation while interviewing to say to yourself, “I really like that person and they could work here,” if their characteristics don’t fit your job profile. Stick to the position you are hiring for! And that same vein, don’t change your expectations or perceptions of the new hire’s reason for coming on-board to something they didn’t sign on for after they’ve joined your firm.
For those that have not ventured into hiring yet, you will most certainly encounter something on this list at one point or another during the process if, or when, you take the plunge. With some awareness, simple planning and concerted effort you will be well on your way for a smooth integration with your new hire. A small up-front thoughtful investment of time and money in human capital, and an on-going consistent follow through, will pay big dividends later – for you and your new hires.
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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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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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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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Successful Selling is a Journey
Posted by Rick Pranitis in GENERAL DISCUSSION on February 28, 2013
The sales process is a journey. If the customer doesn’t understand where you’re headed and why they should come along, they won’t. Making a sale should be easy, especially when you have the right product at the right time in front of the right person. But too many people try and make it more complicated than it needs to be, and lose the prospective client in the process.
Here’s five “keep it simple” rules which can keep you on track and help get you to a successful close.
Cut to the chase.
A good sales person doesn’t waste time with filler words. They start talking about their product right away. Here’s an example; a website developer calls your company and starts by saying, “I am glad I finally got a hold of you. It took me more than 10 minutes to find your contact information on your website. My company does web development, and we could help you quickly fix that. Your customers would then be less frustrated and more easily able to contact you. Can I go over the site with you and find out what else you might like it to be able to do?” As the person being pitched, I am now fully engaged in the web developer’s product–because he showed me he did his homework, and can solve a problem I didn’t know I had.
Skip the jargon.
Whether your product is technical in nature or you just tend to be on the know-it-all side of the spectrum, find a simple way to explain your product which anyone can follow. Customers don’t want a lengthy explanation; they want to understand right away. Recently I was looking to buy a new mattress and was confronted with all kinds of features to choose from. Rather than use empty pseudo-technical terms like moisture-wick and memory foam, a salesperson carefully went over why his mattress would last longer, how its structure would keep my wife and me from waking each other with our movements, and why the two different materials on its surface would help us be comfortable in any weather.
Paint a picture.
You’ll not always have the luxury of meeting with your customer face to face. Learn how to describe your product in a way that even someone who’s never seen it can imagine what it is. Recently I worked with a company who sold products over the phone. They have several items which are made of lesser-known wood species, so they can be hard for the customer to envision. They added a new product to the line and I had not yet seen it, but I heard one of the sales reps describing it to a customer as looking like the inside of a tree when it’s freshly cut. I knew immediately that it was lighter in color, had a ring pattern, and a visible grain.
Get curious.
When you speak to a customer, concentrate on finding out about the customer instead of making your pitch. Start by asking open-ended questions, and then by carefully listening to the answers you’ll find you’ll always get further than delivering a monologue. A bank I never would have considered recently landed a meeting with me because the sales person, after hearing I was not interested in changing credit card processors, asked me if there was anything I was frustrated with at my current bank. As it happened, there had been a recent frustrating situation with my current bank and I was mad enough to want to talk about it, and he was astute enough to carefully connect my discontent to how his bank is different.
Make it matter.
Your product may have a ton of benefits, but they’re worthless if the customer you’re trying to sell to doesn’t need them. Be able to constantly reframe your product benefits so the particular customer with whom you’re speaking understands the direct impact the product could have on their world. Our current health insurance broker won my business not because he explained to me how he was going to save me money (which wasn’t particularly a priority for me), but because his product offered a web portal that was able to help my employees clearly understand their health care options, and made my job as the administrator less burdensome. Those were the high priorities on my list.
A good way to think of selling is like a journey on which you are leading your customer. If the customer doesn’t understand where you’re headed and why they should come along, they will either choose not to take the trip, or wander off in a different direction midway through. All you have to do is get them excited about the destination, tell them all the beautiful things they will see along the way, and answer any questions so they feels safe and can enjoy the route.
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Never End a Sales Call With; “I’ll Send You Some Information”
Posted by Rick Pranitis in GENERAL DISCUSSION on February 9, 2013
This is especially true if it’s you, the salesperson, who has offered the idea up to send the prospect some information. Although you might think you’ve done a good job, what you’ve really done is give the customer an excuse to end the meeting.
If your sales process requires several sales calls, then saying you are going to send them some information can work — but only if you’ve been able to first uncover the following:
- A specific need the customer has shared with you that you believe you can help them with.
- A level of confidence the customer has placed in you that what you send them they will place value in.
- The knowledge the person to whom you’re going to send the information is indeed the person making the decision.
If you can’t get answers to these three things, then why should you believe that what you’re going to send them is going to move the selling process forward? The odds are far greater the process is going to go nowhere.
For customers this is an easy to way to come across as being courteous, but really what they’re doing is jerking you around. There is no reason for you to go through the effort of doing more work if there is little to no chance of a sale materializing. Sending the customer information may give you a warm feeling, but don’t go kidding yourself. What you’re going to send them isn’t going to do anything.
When you don’t know where the call is going and you’re trying to figure out a viable next step, the process should be:
- Find something you and the customer can agree on.
- Gain the customer’s permission to allow you to follow up with them at a later point in time.
With these two things, you can now go forward and develop a better list of questions you can use to engage the customer. Your challenge on the next phone call or the next meeting is to get the customer to have their confidence in you increase because of your level of competence.
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This article was originally posted to The Sales Motivation Blog by Mark Hunter on October 3, 2012
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Ten Reasons Why Salespeople Fail
Posted by Rick Pranitis in GENERAL DISCUSSION on January 13, 2013
I have yet to meet a sales professional who doesn’t want to succeed, who doesn’t want to exceed quota and make more money. But the reality is salespeople still fail. Sometimes it’s a temporary slump, sometimes (unfortunately) it’s a career-long trend. In the work we’ve done with sales organizations, managers and individual reps, these are the 10 most common reasons why salespeople fail.
1. No experience
Honestly, this is a bit of a false crutch & excuse. If you have the right drive and make-up, you can succeed with zero previous sales experience. I’ve seen it happen countless times. Of course, a raw, inexperienced new sales professional can’t succeed without the proper support, training and management to help them accelerate through the learning curve.
2. No plan
If you come to work every morning waiting for the good leads, you’re going to fail. If you’re waiting for the phone to ring, reacting to what comes into your email inbox, that’s not exactly a recipe for success. And yet, many salespeople work without a plan – reactively and opportunistically going through the month or quarter without a strategy. Just because you have a plan, doesn’t mean you’ll always follow it. But if you don’t have a roadmap, how do you expect to get where you want to go?
3. No discipline
Sales can be incredibly difficult. Oftentimes, it’s not even fun. The daily grind, the never-ending activities required to get through the “no” answers and find the ready-to-buy prospects, that not only takes a ton of work but requires daily discipline to stay focused and actively on the path to success. Look at the most successful reps and you’ll find men and women who get up early, power through their calls, and do what it takes – every day – to make their number.
4. No training
This is more than just product training, which is critical. Every rep should know the details of their product or service, but that’s table stakes. They also need to understand the market into which they’re selling, as well as who their target prospect is – what they care about, what their problems are, and what they’re trying to achieve independent of your product or service. And this training needs to happen far more often than the annual sales kick-off meeting too. For world-class sales organizations, training and reinforcement is a regular, ongoing habit.
5. No support
To be successful, sales professionals need tools to help them work smarter. They need sales support and operations resources to provide the infrastructure, tools, processes and other execution best practices so they can spend more of their time in front of customers. And they need a proactively supportive management team, including managers who know that coaching requires more than just reinforcing process, but also proactively helping reps solve unique sales problems.
6. No leads
This is another place where many sales professionals find a perfect excuse for why they’re not hitting the number. In some sales organizations, reps are given leads for follow-up. Some leads are qualified, some are not. But even when reps aren’t handed leads, they’re responsible for finding their own. Yes, this can be a pain-staking, inefficient process. Yes, this can directly impact an individual reps ability to close more business. But you have two choices when face with no leads – get some yourself, or go somewhere else.
7. No motivation
Motivation can come in a variety of formats, of course. It can be material, such as a new boat or stereo system or exotic vacation. It can be fundamental, like putting your kids through school. But whatever it is, motivation to succeed drives performance and ensures consistent execution for reps who don’t let failure take hold.
8. No adaptability
The way you were taught to sell 20 years ago might not be as effective today. The tools you used, the approach that once worked, might fall flat today. If you aren’t able to adapt to the changing market, the changing customer – you’re likely to see declining results. Successful sales professionals constantly adapt their strategy and execution to what’s changing and working around them.
9. No customer insight
Gone are the days of one-sided selling (if they ever existed in the first place). Gone too are the days when the prospect allowed you to ask them questions to which they already knew the answer. Reps today fail in part because they don’t take the time to understand their customer before making an approach. This is far more than just having a solid introduction or insights to break the ice. This is about getting to the root needs your customers has, and differentiating yourself as someone who isn’t there just to sell, but to teach and enable the outcomes the prospect needs and/or has envisioned in the first place.
10. No focus
There are so many things that can distract you during the day. Things that feel important, maybe even feel urgent, but are neither. It’s incredibly difficult to stay focused on what’s important, what will truly push your results forward. But that’s why so many reps fail, and so few consistently hit their number.
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This article was originally posted to Heinz Marketing on January 8, 2013
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