Is sales a circus?

A wise person once said “Running a sales operation in an SMB is like running a 3-ring circus”. When asked to elaborate they said “Jokes aside, it’s like this – the 3 rings are equivalent to the 3 key functions in an SMB sales operation. The first ring is the Lead Generation function, the second ring is the Lead Conversion function and the third ring is the Client Relationships function. To be outstandingly successful an SMB needs all 3 functions performing at a high level - just like the ringmaster of a 3-ring circus needs the acts in each of the 3 rings performing to a high level. If one act performs poorly it drags the whole show down”.

This story illustrates a fundamental of SMB success. It also alerts us to opportunities for improvement; if we can improve our effectiveness in some or all of these 3 functions we can improve our sales results. With that in mind, let’s look a little closer.

Lead Generation

Obviously the purpose of this function is to generate leads. This can be done passively through advertising, unaddressed mail, direct mail etc. It can also be done pro-actively through networking, telemarketing, direct canvassing etc. The passive approach may be more appropriate in some industries and the pro-active approach may be more appropriate in others. However, as a general guide it is better to have a number of Lead Generation activities going on at any one time, some of them being active others being passive. This gives a better spread and also creates the opportunity for proportionately better results. This is to do with the fact that the more ways in which a prospective customer hears about your business the more credible your business will be in their eyes. For example, if Customer A hears about your business via some press advertising your business will achieve a certain level of credibility in their eyes. If Customer B hears about your business via some press adverting, then hears a radio advertisement and then receives a direct mail pack your business will achieve a much higher level of credibility. Assuming that your product is appropriate to both, it follows that Customer B will be more responsive to a sales approach.

A key component in any sales approach is the Offer made to the prospective customer; the more attractive the Offer is in the eyes of the prospective customer the more likely it will be that they will take it up.

An SMB could improve its results by adding one extra pro-active lead generation activity to its mix and by revamping the Offer made in its approach to make it more attractive to prospective customers.

Lead Conversion

This is where superior sales skills make a difference. It is imperative that the Lead Conversion process is structured soundly and that the structure is adhered to by all involved in the process.

A key step in the Lead Conversion process is that aimed at establishing the prospective customer’s needs and wants. This is best done using a technique known as ‘conversational questioning’ where the customer is asked a series of information-seeking questions. This must be done in a polite, relaxed and friendly manner; if it becomes an interrogation the prospective customer will ‘turn off’ immediately. Once a salesperson understands a prospective customer's needs and wants it is much easier for them to make a sound product recommendation with the reasonable expectation that the recommendation will be accepted.

An SMB could improve its results by revitalising the structure of its Lead Conversion process and by making sure that the information-seeking questions used in it are effective and appropriate.

Client Relationships

Many businesses categorise their customers (A, B, C etc) and set their systems up to deliver a level of ‘service’ aligned with their rating of their customers. Sometimes, the only difference between A-class service and C-class service is the frequency of sales calls.

The flipside is that while the business is rating the customer the customer is rating the business; this rating could range from Preferred Supplier to Pain in the Neck. If the customer believes that the only time the business contacts them is when the business is looking for another sale they will rate the business accordingly.

An SMB could improve its results by working on non-sales ways to develop the relationship that they have with their customers. This will require finding ways to add value and to develop the ‘business friendship’ so as to move towards the prized Preferred Supplier rating.


(The up-coming post for Wednesday 31/12 is About Trial Closing. It's a short reminder of the value of this often-overlooked technique.)