One of the challenges facing all businesses is that of being seen as ‘different’. A business-owner must take deliberate and positive steps to set their business apart from other businesses (especially their competitors) in the eyes of their prospective customers.
If you are in business you must remember that one of the questions your prospective customers will have in mind when considering a purchase is “Why should I deal with this person/ business and not one of the others I can choose from?” While your customers may not ask you this question directly they will ask themselves. Therefore, you must have an absolutely clear understanding of the answer and make it easy for your prospective customers to find it.
This is because, if Business A looks too much like its competitor, Business B, the products and services offered may be reduced to the level of commodities in the eyes of the prospective customer. If the prospective customer sees a product or service as a commodity they will almost certainly base any buying decision on price alone.
How can you set your business apart?
Firstly, identify your Positive Points of Difference (PPDs). These should reflect a number of positive points about your business; for example
> the superior quality of the products or services you offer
> the wider range of products or services you offer
> the wider range of options (or locations) you have
> the ‘look’ of your premises and/or your staff
> the quality, attitude and experience level of your staff
> the more comprehensive nature of the guarantee you offer
> the promise you make through the slogan or jingle you use in your advertising.
If you operate in a field that has a bad reputation for tardiness it could be simply that you are always on time. Your staff may simply be more polite and obliging than the staff of your competitors (remember that most people will pay a premium price to deal with people they like).
As you do this consider these points. You may wish to present a combination of PPDs that makes you appear unique; and, if you can’t identify PPDs (or think that the PPDs you do identify lack potency) you will have to create some.
Secondly, you must, where appropriate, introduce your PPDs in your sales presentation/ demonstration.
This is easily done. During the initial minutes of your presentation/ demonstration when you are trying to relax your prospective customer include a minute or two to talk about your PPDs. You can introduce them by saying, “We think we are a little bit different at Our Business Inc – do you mind if I tell you why?” You can then give simple summary of your PPDs.
Thirdly, another way of being seen as ‘different’ is to always do that little bit extra, and do it for nothing
This means always trying to give your customers a little bit more than they paid for. This is like the free coffee or mints at the end of a restaurant meal. It’s a free vacuum or wash when your car is serviced. It’s the follow-up phone call to say “Thanks”. It’s the birthday phone call. It’s the occasional freebie. Most of your competitors will be too stingy or too busy to do these things. This makes it easier for you to make a good and lasting impression of being ‘different’.
Final words of warning – when talking about your PPDs never ‘put down’ or criticise your competitors; and certainly don’t refer to them by name. Simply identify and present your own PPDs in a sincere attempt to have your prospective customer see you and your business as ‘different’ and ‘good to deal with’.
(The up-coming post for Wednesday 22/4 is The Common Denominator for Success. It's ageless wisdom that is still relevant in today's world.)
Monday, April 20, 2015
Friday, April 17, 2015
Practice makes perfect
Professional actors and musicians rehearse. The best sportspeople practise. The armed forces make their members drill and practise things like tactics and weapons handling.
Why do they do that? So they can perform in pressure situations almost without thinking. For an actor or musician it could lead to a near-perfect performance and a rave review. For a sportsperson it could mean the difference between being a team regular or a fringe player. For a soldier, it could save their life or the lives of their mates.
Similarly, the ability to perform in challenging situations is tremendously valuable to salespeople. If they are able to do so they find it easier to deal with them; if they are not able to do so they will lose sales that they otherwise would make.
Why then is there a reluctance in many businesses to provide adequate sales skills practice – away from real life customers?
Is it because the boss simply doesn’t ‘get’ the importance of such practice? Is it because the boss is uncomfortable with the idea? Is it because the boss doesn’t want the sales staff to feel uncomfortable? Doesn’t the boss know how to set it up?
Here are some pointers for bosses who want to help their salespeople practise effectively.
Make sure that your expectations are clear
This means that any skills to be practised must first be scripted (or at least a comprehensive outline prepared). The best salespeople are performers in the same way that actors are. The best actors have the ability to put life into the script they are following. Similarly, practising sales skills is about having salespeople follow the script (or outline) to the best of their ability and to bring that script to life. This is what you expect.
Give practice a name that your salespeople can be comfortable with
In some businesses practice is called role-play; other businesses call it drill; others call it rehearsal. Give it a name that fits the style of your business but, whatever you call it, don’t let it be seen as an opportunity to embarrass people or put them down.
Set aside adequate practice time on a regular basis
Practice is best done on a regular basis as part of a general training routine. It can’t be seen as punishment. Regular practice gives salespeople the opportunity to get over any initial discomfort and to get used to the practice environment. This then gives them the opportunity to focus on improving their performance without being overly-concerned about the presence of others.
Lighten up – treat mistakes as learning opportunities
Practice must be a positive learning experience; it’s about building people up not about putting them down. This is best done if it is carried out in a good-humoured way without it becoming flippant.
The place to make mistakes is in the training room; in the training room mistakes are cheap; in the show room they can be very expensive. With this in mind the boss must forgive mistakes while making sure that the salespeople learn from them
Take your turn
The most effective practice occurs when the boss, whether the business-owner or a manager, takes a turn. This means demonstrating what is expected of the salespeople; not only ‘telling’ but also ‘showing’.
This means that the boss has to keep his or her sales skills up. This also is a positive thing; it sets the standard and demonstrates leadership by example (and makes salespeople more likely to follow).
Always create the opportunity for self-critique
The first question any salesperson should be asked after a practice session is ‘What, if anything, would you do differently if you had the chance to do that again?’
This is a positive opportunity. It means that the salesperson can critique themselves first; pointing out things that they recognise could have been done better. Self-criticism is easier to accept than the criticism of others.
Sometimes the salesperson will be unnecessarily harsh in their self-critique. If this happens it’s appropriate for the boss to correct them and let them know that they did a better job than they thought they did.
Ensure that feedback from others is always constructive
Once the self-critique has been made, others in the group can offer their feedback. The boss can’t allow the criticism to become destructive – it must always be constructive. Remember also that the feedback is about how well the salesperson followed the script (or outline) and brought it to life; it is not about unrelated personal opinions.
What to focus on when practising
There are key steps in any sales process; clumsiness during any of them could result in the needless loss of a sale. While the steps differ slightly from business to business they generally include Engaging the customer, Conversational questioning (to establish needs and wants), the ‘show’ (or demonstration), handling Objections and Closing.
It is important that all of these key steps be practised on an on-going basis; the idea is to sharpen the knife before it gets blunt.
Final point
Many salespeople assert that they perform better in a real life sales situation than they do in a practice situation; this is probably true. It follows therefore that if they can improve their performance at practice they will perform even better in real life, with even better results.
(The up-coming post for Monday 20/4 is What sets your business apart. It's about Positive Points of Difference.)
Why do they do that? So they can perform in pressure situations almost without thinking. For an actor or musician it could lead to a near-perfect performance and a rave review. For a sportsperson it could mean the difference between being a team regular or a fringe player. For a soldier, it could save their life or the lives of their mates.
Similarly, the ability to perform in challenging situations is tremendously valuable to salespeople. If they are able to do so they find it easier to deal with them; if they are not able to do so they will lose sales that they otherwise would make.
Why then is there a reluctance in many businesses to provide adequate sales skills practice – away from real life customers?
Is it because the boss simply doesn’t ‘get’ the importance of such practice? Is it because the boss is uncomfortable with the idea? Is it because the boss doesn’t want the sales staff to feel uncomfortable? Doesn’t the boss know how to set it up?
Here are some pointers for bosses who want to help their salespeople practise effectively.
Make sure that your expectations are clear
This means that any skills to be practised must first be scripted (or at least a comprehensive outline prepared). The best salespeople are performers in the same way that actors are. The best actors have the ability to put life into the script they are following. Similarly, practising sales skills is about having salespeople follow the script (or outline) to the best of their ability and to bring that script to life. This is what you expect.
Give practice a name that your salespeople can be comfortable with
In some businesses practice is called role-play; other businesses call it drill; others call it rehearsal. Give it a name that fits the style of your business but, whatever you call it, don’t let it be seen as an opportunity to embarrass people or put them down.
Set aside adequate practice time on a regular basis
Practice is best done on a regular basis as part of a general training routine. It can’t be seen as punishment. Regular practice gives salespeople the opportunity to get over any initial discomfort and to get used to the practice environment. This then gives them the opportunity to focus on improving their performance without being overly-concerned about the presence of others.
Lighten up – treat mistakes as learning opportunities
Practice must be a positive learning experience; it’s about building people up not about putting them down. This is best done if it is carried out in a good-humoured way without it becoming flippant.
The place to make mistakes is in the training room; in the training room mistakes are cheap; in the show room they can be very expensive. With this in mind the boss must forgive mistakes while making sure that the salespeople learn from them
Take your turn
The most effective practice occurs when the boss, whether the business-owner or a manager, takes a turn. This means demonstrating what is expected of the salespeople; not only ‘telling’ but also ‘showing’.
This means that the boss has to keep his or her sales skills up. This also is a positive thing; it sets the standard and demonstrates leadership by example (and makes salespeople more likely to follow).
Always create the opportunity for self-critique
The first question any salesperson should be asked after a practice session is ‘What, if anything, would you do differently if you had the chance to do that again?’
This is a positive opportunity. It means that the salesperson can critique themselves first; pointing out things that they recognise could have been done better. Self-criticism is easier to accept than the criticism of others.
Sometimes the salesperson will be unnecessarily harsh in their self-critique. If this happens it’s appropriate for the boss to correct them and let them know that they did a better job than they thought they did.
Ensure that feedback from others is always constructive
Once the self-critique has been made, others in the group can offer their feedback. The boss can’t allow the criticism to become destructive – it must always be constructive. Remember also that the feedback is about how well the salesperson followed the script (or outline) and brought it to life; it is not about unrelated personal opinions.
What to focus on when practising
There are key steps in any sales process; clumsiness during any of them could result in the needless loss of a sale. While the steps differ slightly from business to business they generally include Engaging the customer, Conversational questioning (to establish needs and wants), the ‘show’ (or demonstration), handling Objections and Closing.
It is important that all of these key steps be practised on an on-going basis; the idea is to sharpen the knife before it gets blunt.
Final point
Many salespeople assert that they perform better in a real life sales situation than they do in a practice situation; this is probably true. It follows therefore that if they can improve their performance at practice they will perform even better in real life, with even better results.
(The up-coming post for Monday 20/4 is What sets your business apart. It's about Positive Points of Difference.)
Wednesday, April 15, 2015
It's not just about price
Sometimes we can fall for the trap of believing that sales success is all about price - if we do this we overlook the other two Ps - product and person.
Sure, price is important but it's also important to get the product right. By this I mean that the product or service that we are offering must satisfy our customer's needs and wants - if it doesn't there will be no sale regardless of the price.
The person (in this case the salesperson) is also important. We all know salespeople who have that 'winning way' - they're not con-artists or crooks - they're simply genuine, honest, open, likeable people who demonstrate that they have their customer's needs in mind.
These salespeople don't have to haggle or discount to the bone - because people want to do business with them. Maybe we should follow their example.
(The up-coming post for Friday 17/4 is Practice makes perfect. It's about the importance of rehearsal for sales training to be effective.)
Sure, price is important but it's also important to get the product right. By this I mean that the product or service that we are offering must satisfy our customer's needs and wants - if it doesn't there will be no sale regardless of the price.
The person (in this case the salesperson) is also important. We all know salespeople who have that 'winning way' - they're not con-artists or crooks - they're simply genuine, honest, open, likeable people who demonstrate that they have their customer's needs in mind.
These salespeople don't have to haggle or discount to the bone - because people want to do business with them. Maybe we should follow their example.
(The up-coming post for Friday 17/4 is Practice makes perfect. It's about the importance of rehearsal for sales training to be effective.)
Monday, April 13, 2015
Continue to add new customers
As business-people we understand the priority that must be given to looking after our existing customers. Because of this we can sometimes overlook the need to also always be adding new customers.
In my view if a business is not adding new customers to its customer base it is dying - sometimes slowly, other times at pace.
(Let's remember that, over any reasonable time-frame, some of our existing customers will go out of business, move to other suppliers or simply be taken over by another entity with pre-existing relationships.)
My tip therefore is to, as part of your regular objective-setting, set objectives related to sales (ideally, profits) to be generated through new customers acquired and measure your results. Treat this as one of the critical KPIs.
By doing this you will have taken an important step towards keeping your business viable over the long term.
(The up-coming post for Wednesday 15/4 is It's not just about price. It's a reminder about the other factors that can lead to a sale being made.)
In my view if a business is not adding new customers to its customer base it is dying - sometimes slowly, other times at pace.
(Let's remember that, over any reasonable time-frame, some of our existing customers will go out of business, move to other suppliers or simply be taken over by another entity with pre-existing relationships.)
My tip therefore is to, as part of your regular objective-setting, set objectives related to sales (ideally, profits) to be generated through new customers acquired and measure your results. Treat this as one of the critical KPIs.
By doing this you will have taken an important step towards keeping your business viable over the long term.
(The up-coming post for Wednesday 15/4 is It's not just about price. It's a reminder about the other factors that can lead to a sale being made.)
Friday, April 10, 2015
Keep your eyes on the target market
As a general rule the better-defined a business's target market is the easier it is for that business to develop strategies for accessing that target market.
If the target is clear the necessary actions are normally clear; if the target is fuzzy the actions will be fuzzy.
With that thought in mind regularly re-define your target market and re-calibrate your marketing 'guns'.
By doing this you should be able to get best value for your marketing dollars (and time) and continue to hit your target market(s) (in the nicest possible way!).
(The up-coming post for Monday 13/4 is Continue to add new customers. It's about rings on the sales 'tree'.)
If the target is clear the necessary actions are normally clear; if the target is fuzzy the actions will be fuzzy.
With that thought in mind regularly re-define your target market and re-calibrate your marketing 'guns'.
By doing this you should be able to get best value for your marketing dollars (and time) and continue to hit your target market(s) (in the nicest possible way!).
(The up-coming post for Monday 13/4 is Continue to add new customers. It's about rings on the sales 'tree'.)
Friday, April 3, 2015
Keep your 'sales saw' sharp
When he wrote his ‘must read’ book The 7 Habits of Highly Effective People Steven Covey reminded us to ‘sharpen the saw’ if we wanted to be effective as a person. In doing so he referred to the need for self-renewal in life generally.
We can apply this principle to the business of selling.
In sales, having a blunt saw results in wasted effort and resources, with sales being lost when they should have been made. This in turn results in decreased profitability and lessening enthusiasm. Unless something is done it can start a serious downward spiral.
Whether you are an employee-salesperson or a business-owner-salesperson, if you think that your ‘sales saw’ has got a bit blunt, here are five ‘back-to-basics’ steps that you can take to help sharpen it.
1) Remind yourself of the benefits that your products provide to your customers
Customers don’t buy products or services, they buy the benefits that a product or service provides. If you have been focusing on your product or service when selling to your customers (and not focusing on the benefits that your product or service provides) you have been compromising your sales results.
An ideal way to fix this is to do (or re-do) a Features and Benefits analysis for each of your major products.
Take some sheets of paper (one sheet per product) and draw a vertical line down each sheet in such a way as to give two columns of about the same size. Head the left column of each sheet Features and the right column Benefits. Under the Features heading list ‘bullet-point’ fashion the various features of the product; then under the Benefits heading describe the benefits that each of these features provide your customers.
Now you can concentrate on talking benefit-speak not product-speak when talking with prospective customers.
2) Remind yourself of what’s so special about you and your business
This is about knowing and promoting the positive points that set you apart from your competitors; these are your Positive Points of Difference.
Customers generally have choices when buying. They can choose from a range of products that meet their requirements and they can choose from a number of suppliers.
You need to be able to give your customers good reasons for dealing with you and you must be prepared to put those reasons in front of your customers in a professional, non-aggressive way.
(Customers will rarely ask “Why should I deal with you and not a competitor?” but they will almost always have the question in mind while talking with you.)
You can now take the opportunity to answer the question (whether they ask it or not) by ‘selling’ your Positive Points of Difference via your standard sales talk.
3) Remind yourself of your Target Market
To my mind there are two aspects to this point. The first is to do with prospect ‘profile’, the second is to do with geography.
Firstly, having reminded yourself about Features and Benefits in Point 1 you should be able to think through and answer the question ‘What sort of people (or businesses) stand to gain most from the benefits my product provides and be most prepared to pay?’
This in turn will help you profile your best prospects and point you towards the section of the overall market that will give you better sales results and improved profitability.
Secondly, are you seeking to serve customers in your suburb, the state, the country or the whole world?
Marketing time and dollars are always in short supply. The clearer the definition of geographic area the easier you will find it to focus those limited resources where they are likely to get best return.
4) Review your Lead Generation methods
The easier it is for you to identify your preferred prospects the easier it is for you to be precise and targeted in approaching them.
For example, if your Target Market is amongst plumbers or printers you can be very precise and targeted because these businesses usually list themselves in various directories. The initial approach to these businesses could be via Direct Mail with a follow-up phone call.
If, on the other hand, your Target Market is amongst DIY home-owners you can’t be very precise because, while they may be more numerous in some suburbs than in others, they generally live amongst non-DIY people.
With these people you may need to adopt a more blanket approach initially, while you build up a list of purchasers for ongoing marketing.
Make sure that your Lead Generation methods continue to be appropriate to your Target Market.
5) Review the questions you ask prospective customers during your sales discussions with them
A vital part of the sales process is that part where you attempt to identify your prospective customer’s Needs and Wants. The only way that you can do this is to, at the right time, ask intelligent questions in a conversational way. These questions need to be well-planned and well-rehearsed.
Make sure that you prepare well. Ask the right questions in the right order (and don’t ask questions that don’t need to be asked.)
Summary
It’s possible for us to get so busy selling that our saw goes blunt without us realising.
The solution, of course, is to set aside regular time for saw-sharpening so that it never gets so blunt that is causes us problems.
(The up-coming post for Friday 10/4 is Keep your eyes on your target market. It's about not wasting your marketing 'shots'.)
We can apply this principle to the business of selling.
In sales, having a blunt saw results in wasted effort and resources, with sales being lost when they should have been made. This in turn results in decreased profitability and lessening enthusiasm. Unless something is done it can start a serious downward spiral.
Whether you are an employee-salesperson or a business-owner-salesperson, if you think that your ‘sales saw’ has got a bit blunt, here are five ‘back-to-basics’ steps that you can take to help sharpen it.
1) Remind yourself of the benefits that your products provide to your customers
Customers don’t buy products or services, they buy the benefits that a product or service provides. If you have been focusing on your product or service when selling to your customers (and not focusing on the benefits that your product or service provides) you have been compromising your sales results.
An ideal way to fix this is to do (or re-do) a Features and Benefits analysis for each of your major products.
Take some sheets of paper (one sheet per product) and draw a vertical line down each sheet in such a way as to give two columns of about the same size. Head the left column of each sheet Features and the right column Benefits. Under the Features heading list ‘bullet-point’ fashion the various features of the product; then under the Benefits heading describe the benefits that each of these features provide your customers.
Now you can concentrate on talking benefit-speak not product-speak when talking with prospective customers.
2) Remind yourself of what’s so special about you and your business
This is about knowing and promoting the positive points that set you apart from your competitors; these are your Positive Points of Difference.
Customers generally have choices when buying. They can choose from a range of products that meet their requirements and they can choose from a number of suppliers.
You need to be able to give your customers good reasons for dealing with you and you must be prepared to put those reasons in front of your customers in a professional, non-aggressive way.
(Customers will rarely ask “Why should I deal with you and not a competitor?” but they will almost always have the question in mind while talking with you.)
You can now take the opportunity to answer the question (whether they ask it or not) by ‘selling’ your Positive Points of Difference via your standard sales talk.
3) Remind yourself of your Target Market
To my mind there are two aspects to this point. The first is to do with prospect ‘profile’, the second is to do with geography.
Firstly, having reminded yourself about Features and Benefits in Point 1 you should be able to think through and answer the question ‘What sort of people (or businesses) stand to gain most from the benefits my product provides and be most prepared to pay?’
This in turn will help you profile your best prospects and point you towards the section of the overall market that will give you better sales results and improved profitability.
Secondly, are you seeking to serve customers in your suburb, the state, the country or the whole world?
Marketing time and dollars are always in short supply. The clearer the definition of geographic area the easier you will find it to focus those limited resources where they are likely to get best return.
4) Review your Lead Generation methods
The easier it is for you to identify your preferred prospects the easier it is for you to be precise and targeted in approaching them.
For example, if your Target Market is amongst plumbers or printers you can be very precise and targeted because these businesses usually list themselves in various directories. The initial approach to these businesses could be via Direct Mail with a follow-up phone call.
If, on the other hand, your Target Market is amongst DIY home-owners you can’t be very precise because, while they may be more numerous in some suburbs than in others, they generally live amongst non-DIY people.
With these people you may need to adopt a more blanket approach initially, while you build up a list of purchasers for ongoing marketing.
Make sure that your Lead Generation methods continue to be appropriate to your Target Market.
5) Review the questions you ask prospective customers during your sales discussions with them
A vital part of the sales process is that part where you attempt to identify your prospective customer’s Needs and Wants. The only way that you can do this is to, at the right time, ask intelligent questions in a conversational way. These questions need to be well-planned and well-rehearsed.
Make sure that you prepare well. Ask the right questions in the right order (and don’t ask questions that don’t need to be asked.)
Summary
It’s possible for us to get so busy selling that our saw goes blunt without us realising.
The solution, of course, is to set aside regular time for saw-sharpening so that it never gets so blunt that is causes us problems.
(The up-coming post for Friday 10/4 is Keep your eyes on your target market. It's about not wasting your marketing 'shots'.)
Wednesday, April 1, 2015
Beware of poor attitudes
In the world of Sales things do not always go our way. When this happens it can be easy to become downhearted, even negative.
Remember that our attitudes have a profound effect on our actions. Our actions in turn determine the results we achieve. It is because of this that we must guard against developing poor attitudes.
We must also guard against being infected by the poor attitudes of some other people. Avoid negative people; they will only drag you down to their level.
(The up-coming post for Friday 3/4 is Keep your 'sales saw' sharp. It's a lesson drawn from one of Steven Covey's best books.)
Remember that our attitudes have a profound effect on our actions. Our actions in turn determine the results we achieve. It is because of this that we must guard against developing poor attitudes.
We must also guard against being infected by the poor attitudes of some other people. Avoid negative people; they will only drag you down to their level.
(The up-coming post for Friday 3/4 is Keep your 'sales saw' sharp. It's a lesson drawn from one of Steven Covey's best books.)
Monday, March 30, 2015
Do a SWOT
The value of a SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis is that it encourages a businessperson to look at their sales operation from an ‘outside looking in’ perspective. Don’t be afraid to enlist some help.
Write on a whiteboard all those factors that you see as being Strengths in your sales operation (eg great products, experienced salespeople, high profile promotion, high-value pricing etc). Then list the Weaknesses (eg lack of credit facilities, low profile, limited marketing resources etc). Having done this, talk through and identify the Opportunities available (eg add products, start marketing to new segments etc) and then the Threats (eg aggressive competitors, over-reliance on a small number of customers or suppliers etc) that may exist.
As the SWOT analysis is being done a number of possible Action Points will emerge. These should be noted for later evaluation with the view to including them in the business’s plans for the future.
(The up-coming post for Wednesday 1/4 is Beware of poor attitudes. It's a short reminder about the effect that attitudes can have on sales results.)
Write on a whiteboard all those factors that you see as being Strengths in your sales operation (eg great products, experienced salespeople, high profile promotion, high-value pricing etc). Then list the Weaknesses (eg lack of credit facilities, low profile, limited marketing resources etc). Having done this, talk through and identify the Opportunities available (eg add products, start marketing to new segments etc) and then the Threats (eg aggressive competitors, over-reliance on a small number of customers or suppliers etc) that may exist.
As the SWOT analysis is being done a number of possible Action Points will emerge. These should be noted for later evaluation with the view to including them in the business’s plans for the future.
(The up-coming post for Wednesday 1/4 is Beware of poor attitudes. It's a short reminder about the effect that attitudes can have on sales results.)
Friday, March 27, 2015
Sell more with a Concerns Menu
Do your ever get the feeling that you (or your salespeople) miss sales because they aren't getting close enough to prospective customers to really understand them and their concerns.
If so, a Concerns Menu may help. What's a Concerns Menu? It's a little like a 'bill of fare' on which is listed a number (no more than six) of issues that have been of concern to previous customers where you have been able to help.
The idea is to list these issues in bullet point format - keeping each point as succinct as possible. I encourage my clients to use no more that three words per bullet point and to put them on their business letterhead.
Using the Concerns Menu is a fairly simple matter. At an appropriate time in the sales conversation ask your prospective customer 'Do you mind if I show you something? It's a list of some of the major issues that some of our existing customers have had - and that we have been able to help them with. There may be something there that may help you'. Assuming that they agree to look at the list show it to them and talk them through each of the issues - keeping it short and simple.
If you are alert to their body language you will see what points 'hit home'.
Having gone through the list ask the question 'Is there any thing on this list that concerns you?'
Assuming that you have identified at least one concern you are now in a position to tease it out further.
(I am an advocate of the EASE sales format. The Concerns Menu concept fits well in the second step of EASE, that is the Ask.)
(The up-coming post for Monday 30/3 is Do a SWOT. It's a reminder of the value of a SWOT analysis in sales.)
If so, a Concerns Menu may help. What's a Concerns Menu? It's a little like a 'bill of fare' on which is listed a number (no more than six) of issues that have been of concern to previous customers where you have been able to help.
The idea is to list these issues in bullet point format - keeping each point as succinct as possible. I encourage my clients to use no more that three words per bullet point and to put them on their business letterhead.
Using the Concerns Menu is a fairly simple matter. At an appropriate time in the sales conversation ask your prospective customer 'Do you mind if I show you something? It's a list of some of the major issues that some of our existing customers have had - and that we have been able to help them with. There may be something there that may help you'. Assuming that they agree to look at the list show it to them and talk them through each of the issues - keeping it short and simple.
If you are alert to their body language you will see what points 'hit home'.
Having gone through the list ask the question 'Is there any thing on this list that concerns you?'
Assuming that you have identified at least one concern you are now in a position to tease it out further.
(I am an advocate of the EASE sales format. The Concerns Menu concept fits well in the second step of EASE, that is the Ask.)
(The up-coming post for Monday 30/3 is Do a SWOT. It's a reminder of the value of a SWOT analysis in sales.)
Wednesday, March 25, 2015
Who does the coaching?
Who does the coaching at your place?
A major mistake that business owners and managers make is that of not coaching their salespeople. While this is especially true in respect of new salespeople it also applies to salespeople with experience. If coaching is so important, and failure to do so costly, why is this mistake made so often?
It is because we assume that, when a salesperson says they know something they will also do it. In the words of the song “It ain’t necessarily so”.
To understand that knowing and doing don’t always go together we need only to look in a mirror. How often do we not do things that we know we should do, or do things that we know we shouldn’t do? It’s basic human behaviour. But why? And how can the answer help us to help our salespeople perform better?
Knowing but not doing is caused by a lack of self-discipline. It follows then that, if a salesperson doesn’t have the necessary self-discipline, the discipline must come from an outside source. Business owners and managers must accept the challenge of being that outside source and work on, over time, helping the salesperson develop self-discipline. This is a key part of sales coaching.
Put another way, business owners and managers must accept the Sales Coaches’ key responsibility of making their salespeople work effectively.
The following tips will help you do a better job of coaching inexperienced salespeople; you will also get some ideas for use with experienced people.
Firstly, decide how you want things done in the sales function of Your Business and publish clear expectations in areas like
- prospecting sources and technique
- approach technique
- qualifying practices
- presentation/demonstration structure
- work effort and activity levels
- Time Management, especially the use of To Do Lists and a Diary.
Secondly, inspect what you expect. While you do this keep a close eye on
- what is being said during the four critical sales steps; the Approach, the Qualifying, the Presentation/demonstration and the Close?
- how is it being said?
- how often is it being said?
- to whom is it being said?
Let’s look at each in order.
What is being said in the Approach, Qualifying, Presentation/demonstration and Close?
The Coach has the responsibility of ensuring that their sales team has access to the best and most useful sales material affordable. This includes approach and other sales scripts that work. The Coach must then provide plenty of drill in the use of these scripts to ensure that the salesperson knows what to say and how to say it under the pressure of a real life sales situation.
The Coach chooses the scripts to be followed and shouldn’t allow any alterations to be made by the salesperson. If a better way is identified then that ‘better way’ must be adopted as the standard.
In particular, remember that lots of sales are lost because the salesperson either doesn’t Close or Closes clumsily. This means that Closing must be practised until it is seamless.
How is it being said?
This is about style, tone and tempo. Is the salesperson conversing with the customer confidently and persuasively? Or is their performance lacklustre and unconvincing?
The best way to find out the answers to these questions is to observe the salesperson in real life sales situations. This means that the Coach sets aside time on a regular basis to observe the salesperson in the field. Sometimes the Coach should do the presenting; thus giving the salesperson a valuable opportunity to ‘learn by observing’.
How often is it being said?
This is about activity levels. Some salespeople fail solely through lack of activity. If activity levels are to be monitored the Coach must insist that the salesperson keep accurate records of units of activity like numbers of Calls Made (or Received), Sales Appointments Secured, Sales Appointments Conducted, Asked to Buys, Sales Made (and their $ value).
If these records are kept a lack of activity can be spotted early; it can then be fixed before too much damage is done.
At the end of each week this information should be entered on a spreadsheet set up to calculate key ratios such as Average Calls per Sale, Average Asked to Buys per Sale and Average $ value per Sale. These are the Coach’s match stats; they help pinpoint opportunities for improvement.
Who are they saying it to?
Some salespeople struggle because they waste too much time on poor quality prospects. It is the Coach’s responsibility to prevent this from happening by assisting a new salesperson to prepare profiles of 2 or 3 ‘prime prospect’ groups and then insist that the salesperson maintain focus on those groups.
For example, in the Business-to-Business market prime prospect groups could be described by Industry sector, location of Head Office and number of employees
The Coach then needs to show the salesperson how to locate such prospects and how to Qualify them properly.
Additional prospect groups can be added to the mix as the salesperson develops.
A final point
If all this seems to be too much trouble, remember that a poorly performing salesperson is costly. They’ll eventually leave and you’ll have to do it all over again. Why not strive to get it right from the start?
(The up-coming post for Friday is Sell more with a Concerns Menu. It's about a little-used but very effective sales aid.)
A major mistake that business owners and managers make is that of not coaching their salespeople. While this is especially true in respect of new salespeople it also applies to salespeople with experience. If coaching is so important, and failure to do so costly, why is this mistake made so often?
It is because we assume that, when a salesperson says they know something they will also do it. In the words of the song “It ain’t necessarily so”.
To understand that knowing and doing don’t always go together we need only to look in a mirror. How often do we not do things that we know we should do, or do things that we know we shouldn’t do? It’s basic human behaviour. But why? And how can the answer help us to help our salespeople perform better?
Knowing but not doing is caused by a lack of self-discipline. It follows then that, if a salesperson doesn’t have the necessary self-discipline, the discipline must come from an outside source. Business owners and managers must accept the challenge of being that outside source and work on, over time, helping the salesperson develop self-discipline. This is a key part of sales coaching.
Put another way, business owners and managers must accept the Sales Coaches’ key responsibility of making their salespeople work effectively.
The following tips will help you do a better job of coaching inexperienced salespeople; you will also get some ideas for use with experienced people.
Firstly, decide how you want things done in the sales function of Your Business and publish clear expectations in areas like
- prospecting sources and technique
- approach technique
- qualifying practices
- presentation/demonstration structure
- work effort and activity levels
- Time Management, especially the use of To Do Lists and a Diary.
Secondly, inspect what you expect. While you do this keep a close eye on
- what is being said during the four critical sales steps; the Approach, the Qualifying, the Presentation/demonstration and the Close?
- how is it being said?
- how often is it being said?
- to whom is it being said?
Let’s look at each in order.
What is being said in the Approach, Qualifying, Presentation/demonstration and Close?
The Coach has the responsibility of ensuring that their sales team has access to the best and most useful sales material affordable. This includes approach and other sales scripts that work. The Coach must then provide plenty of drill in the use of these scripts to ensure that the salesperson knows what to say and how to say it under the pressure of a real life sales situation.
The Coach chooses the scripts to be followed and shouldn’t allow any alterations to be made by the salesperson. If a better way is identified then that ‘better way’ must be adopted as the standard.
In particular, remember that lots of sales are lost because the salesperson either doesn’t Close or Closes clumsily. This means that Closing must be practised until it is seamless.
How is it being said?
This is about style, tone and tempo. Is the salesperson conversing with the customer confidently and persuasively? Or is their performance lacklustre and unconvincing?
The best way to find out the answers to these questions is to observe the salesperson in real life sales situations. This means that the Coach sets aside time on a regular basis to observe the salesperson in the field. Sometimes the Coach should do the presenting; thus giving the salesperson a valuable opportunity to ‘learn by observing’.
How often is it being said?
This is about activity levels. Some salespeople fail solely through lack of activity. If activity levels are to be monitored the Coach must insist that the salesperson keep accurate records of units of activity like numbers of Calls Made (or Received), Sales Appointments Secured, Sales Appointments Conducted, Asked to Buys, Sales Made (and their $ value).
If these records are kept a lack of activity can be spotted early; it can then be fixed before too much damage is done.
At the end of each week this information should be entered on a spreadsheet set up to calculate key ratios such as Average Calls per Sale, Average Asked to Buys per Sale and Average $ value per Sale. These are the Coach’s match stats; they help pinpoint opportunities for improvement.
Who are they saying it to?
Some salespeople struggle because they waste too much time on poor quality prospects. It is the Coach’s responsibility to prevent this from happening by assisting a new salesperson to prepare profiles of 2 or 3 ‘prime prospect’ groups and then insist that the salesperson maintain focus on those groups.
For example, in the Business-to-Business market prime prospect groups could be described by Industry sector, location of Head Office and number of employees
The Coach then needs to show the salesperson how to locate such prospects and how to Qualify them properly.
Additional prospect groups can be added to the mix as the salesperson develops.
A final point
If all this seems to be too much trouble, remember that a poorly performing salesperson is costly. They’ll eventually leave and you’ll have to do it all over again. Why not strive to get it right from the start?
(The up-coming post for Friday is Sell more with a Concerns Menu. It's about a little-used but very effective sales aid.)
Monday, March 23, 2015
About the goals pyramid
We all know that one of the keys to business success is the ability to set clear and co-ordinated goals. Despite this many people in SMBs and elsewhere struggle with the practical application of goal setting principles.
Here are some ideas that may help you -
The Goals Pyramid
Picture a pyramid on top of which rests a single large stone block. This large stone block represents your business’s Primary Goal. Every business must have a clear Primary Goal. This goal can be set by answering a question like “If we achieve nothing else this year, what is the one thing we must achieve?” This may not be an easy question to answer, since it is likely to be linked to stakeholder relationships and the viability or longevity of the business, however you must give it the deep consideration it deserves.
The layer of large blocks immediately below the top block on the pyramid represents a layer of Second-level Goals. These are the goals whose achievement will ensure the achievement of the Primary Goal. These Second-level Goals also need to be identified and set with great care. Depending on the substance of the Second-level Goals it may be necessary to set a series of supporting Third-level Goals, and so on.
By using the Pyramid structure you can ensure that the goal setting for all of your business functions, including your sales and marketing, is aimed at supporting the achievement of the Primary Goal.
Results goals and Activity goals
A Results goal is simply that; an expression of an end-result to be achieved, for example “Gross Sales of $x in the 2004/2005 Financial Year”. An Activity goal is an expression of activity-units to be achieved, for example “New Prospect sales calls of y in the 2004/2005 Financial Year”. People cannot do Results but they can do Activities. That is why it is vital for you, when setting Results Goals, to connect them to Activity Goals to support their achievement. Without this connection your goal setting is little more than wishful thinking.
Tangible and Intangible goals
Not all your goals need to be Tangible. Albert Einstein is reported to have said “Not everything that counts can be counted and not everything that can be counted counts”. With that thought in mind you should feel comfortable in setting Intangible goals and including them in your Pyramid if that’s appropriate to your business.
Examples of Intangible goals are “For Our Business Inc to be seen as a valuable member of the local business community” and “To maintain a happy and motivating work environment”. Both goals are worth striving for – however any assessment of success in achieving them could only be based on opinion.
Developing Action Plans from your Goals Pyramid
Goals are about “what the business is going to achieve”; Action Plans are about the “how, in what sequence and by whom”. Every goal in the Pyramid needs to be linked to an Action Plan that sets out action steps to be taken, a ‘do by’ date for each step and the name of the individual responsible for that step. A word of warning; never make a group responsible for an action step because responsibility will slip through the cracks – instead nominate a group leader, give them the necessary authority, and make that person responsible.
Obviously, Action Plans must be recorded in writing so that proper accountability can be maintained and progress can be monitored.
Don’t be fazed by obstacles
It is unlikely that you will progress to the achievement of your goals without meeting obstacles along the way – if it were to be that easy you would have achieved your goals already!
Take time to identify any pre-existing obstacles and include the steps for dealing with them in your plans. When you meet unexpected obstacles along the way don’t panic and don’t give up. Simply amend your plans to deal with the obstacles and get on with it.
Keep your plans alive
Don’t file them away to gather dust all year. A plan is meant to be a support not a straitjacket. Review progress regularly. If a part of your plan goes awry you may decide to dump that part. If an unexpected opportunity arises be flexible - amend your plans so you can capitalise on it.
(The up-coming post for Wednesday 25/3 is Who does the coaching? It's about taking responsibility for this important function in a sales group.)
Here are some ideas that may help you -
The Goals Pyramid
Picture a pyramid on top of which rests a single large stone block. This large stone block represents your business’s Primary Goal. Every business must have a clear Primary Goal. This goal can be set by answering a question like “If we achieve nothing else this year, what is the one thing we must achieve?” This may not be an easy question to answer, since it is likely to be linked to stakeholder relationships and the viability or longevity of the business, however you must give it the deep consideration it deserves.
The layer of large blocks immediately below the top block on the pyramid represents a layer of Second-level Goals. These are the goals whose achievement will ensure the achievement of the Primary Goal. These Second-level Goals also need to be identified and set with great care. Depending on the substance of the Second-level Goals it may be necessary to set a series of supporting Third-level Goals, and so on.
By using the Pyramid structure you can ensure that the goal setting for all of your business functions, including your sales and marketing, is aimed at supporting the achievement of the Primary Goal.
Results goals and Activity goals
A Results goal is simply that; an expression of an end-result to be achieved, for example “Gross Sales of $x in the 2004/2005 Financial Year”. An Activity goal is an expression of activity-units to be achieved, for example “New Prospect sales calls of y in the 2004/2005 Financial Year”. People cannot do Results but they can do Activities. That is why it is vital for you, when setting Results Goals, to connect them to Activity Goals to support their achievement. Without this connection your goal setting is little more than wishful thinking.
Tangible and Intangible goals
Not all your goals need to be Tangible. Albert Einstein is reported to have said “Not everything that counts can be counted and not everything that can be counted counts”. With that thought in mind you should feel comfortable in setting Intangible goals and including them in your Pyramid if that’s appropriate to your business.
Examples of Intangible goals are “For Our Business Inc to be seen as a valuable member of the local business community” and “To maintain a happy and motivating work environment”. Both goals are worth striving for – however any assessment of success in achieving them could only be based on opinion.
Developing Action Plans from your Goals Pyramid
Goals are about “what the business is going to achieve”; Action Plans are about the “how, in what sequence and by whom”. Every goal in the Pyramid needs to be linked to an Action Plan that sets out action steps to be taken, a ‘do by’ date for each step and the name of the individual responsible for that step. A word of warning; never make a group responsible for an action step because responsibility will slip through the cracks – instead nominate a group leader, give them the necessary authority, and make that person responsible.
Obviously, Action Plans must be recorded in writing so that proper accountability can be maintained and progress can be monitored.
Don’t be fazed by obstacles
It is unlikely that you will progress to the achievement of your goals without meeting obstacles along the way – if it were to be that easy you would have achieved your goals already!
Take time to identify any pre-existing obstacles and include the steps for dealing with them in your plans. When you meet unexpected obstacles along the way don’t panic and don’t give up. Simply amend your plans to deal with the obstacles and get on with it.
Keep your plans alive
Don’t file them away to gather dust all year. A plan is meant to be a support not a straitjacket. Review progress regularly. If a part of your plan goes awry you may decide to dump that part. If an unexpected opportunity arises be flexible - amend your plans so you can capitalise on it.
(The up-coming post for Wednesday 25/3 is Who does the coaching? It's about taking responsibility for this important function in a sales group.)
Friday, March 20, 2015
Customers are people first; customers second
This is an attitude that must be reflected throughout your business.
Look for the person in the customer and deal with that person on a personal level and you will enjoy great success. If you only ever deal with the customer in the person you will limit your success. This includes speaking to customers by name, it means saying ‘Please’ and ‘Thank You’; it means talking ‘with them’ not ‘at them’.
Just old-fashioned good manners really.
In business, treat people as you would a favourite uncle, aunt or cousin and you are heading in the right direction.
(The up-coming post for Monday 23/3 is About the goals pyramid. It's about a simple way of planning and prioritizing in business.)
Look for the person in the customer and deal with that person on a personal level and you will enjoy great success. If you only ever deal with the customer in the person you will limit your success. This includes speaking to customers by name, it means saying ‘Please’ and ‘Thank You’; it means talking ‘with them’ not ‘at them’.
Just old-fashioned good manners really.
In business, treat people as you would a favourite uncle, aunt or cousin and you are heading in the right direction.
(The up-coming post for Monday 23/3 is About the goals pyramid. It's about a simple way of planning and prioritizing in business.)
Wednesday, March 18, 2015
Don't confuse order-taking with selling
Some people who say they are ‘in sales’ are actually ‘in order-taking’; they never sell anything – they simply hope their customer will buy.
Order-taking is like turning up and asking a question that translates to “Is there anything you want today?” (The customer says “No thanks”; the order-taker says, turning to leave, “OK, that’s fine, see you in two weeks”.) Selling is about doing some preparation, thinking about the customer and having an idea/offer in mind.
The conversation can start the same way. The salesperson says, “Is there any thing you want today?” The customer says “No thanks”. Instead of turning to leave the salesperson says, “OK, that’s fine – however, before I go can I show an idea/offer we have going regarding …”
This creates an opportunity for the salesperson to move into selling mode.
Like so many other tips in selling, this is not rocket science. But it works.
(The up-coming post for Friday 20/3 is Customers are people first; customers second. It's a reminder to work with the person first to be successful in any sales situation.)
Order-taking is like turning up and asking a question that translates to “Is there anything you want today?” (The customer says “No thanks”; the order-taker says, turning to leave, “OK, that’s fine, see you in two weeks”.) Selling is about doing some preparation, thinking about the customer and having an idea/offer in mind.
The conversation can start the same way. The salesperson says, “Is there any thing you want today?” The customer says “No thanks”. Instead of turning to leave the salesperson says, “OK, that’s fine – however, before I go can I show an idea/offer we have going regarding …”
This creates an opportunity for the salesperson to move into selling mode.
Like so many other tips in selling, this is not rocket science. But it works.
(The up-coming post for Friday 20/3 is Customers are people first; customers second. It's a reminder to work with the person first to be successful in any sales situation.)
Monday, March 16, 2015
Using the Wish List question to sell more
Whether we sell products or services most of our customers have a Wish List.
(What's a Wish List? It's a list of products or services that your customer would like to purchase at some stage in the future if funds were to become available. Sometimes a Wish List will be made up of additional items to be acquired, other times it will include items to be replaced.
Sometimes the Wish List will be in writing, other times it will be 'in the mind'.)
Asking the Wish List question can be as simple as saying something like "Many of the business-owners I speak to have a Wish List. A sort of list of items they want to purchase in the future if and when funds become available. Sometimes it's to do with replacing old equipment, other times they are seeking to add new capacity. Do you have a Wish List in mind?"
Obviously you can't expect an answer if you haven't previously Engaged your customer. However, if you have properly Engaged your customer you may be pleasantly surprised by what you learn with the Wish List question. Used wisely this knowledge can help you sell more.
(The up-coming post for Wednesday 18/3 is Don't confuse order-taking with selling. It's a reminder about avoiding the order-taker trap.)
(What's a Wish List? It's a list of products or services that your customer would like to purchase at some stage in the future if funds were to become available. Sometimes a Wish List will be made up of additional items to be acquired, other times it will include items to be replaced.
Sometimes the Wish List will be in writing, other times it will be 'in the mind'.)
Asking the Wish List question can be as simple as saying something like "Many of the business-owners I speak to have a Wish List. A sort of list of items they want to purchase in the future if and when funds become available. Sometimes it's to do with replacing old equipment, other times they are seeking to add new capacity. Do you have a Wish List in mind?"
Obviously you can't expect an answer if you haven't previously Engaged your customer. However, if you have properly Engaged your customer you may be pleasantly surprised by what you learn with the Wish List question. Used wisely this knowledge can help you sell more.
(The up-coming post for Wednesday 18/3 is Don't confuse order-taking with selling. It's a reminder about avoiding the order-taker trap.)
Friday, March 13, 2015
What do sales champions do better?
As with other forms of endeavour the world of sales has its champions and its ‘not so champions’.
It’s worthwhile to examine four key areas where the sales champions do it better and that contribute to their success.
The first is attitude; champions have a positive attitude; they are ‘glass half full people’. This is not to be confused with brashness, cockiness or being falsely ‘pumped up’. It is a quiet positiveness that affects all of their interactions on day-to-day basis. It also means that they respect their customers, their work colleagues, their product and, most importantly, their chosen vocation. This positiveness is infectious and helps sway customers during the sales process.
They also keep their ego under control. They realise that it’s possible to learn from the most humble of people so they are open to suggestion and don’t fear criticism.
Having a positive attitude also helps the champion deal with the inevitable knockbacks that come in selling without taking the rejection personally and getting down at heart. They realise that disappointments are part of sales so they simply dust themselves off and move on as if the disappointment hadn’t happened. This doesn’t mean that they don’t learn from their disappointments. They value the lessons that come from experience; they simply refuse to dwell on the negatives.
The second is knowledge. Champions know their product. They take the trouble to study the features of their product and the benefits those features provide. They do this because they know that customers buy benefits that they want or need. They also accept the responsibility of identifying the customer's wants and needs and helping the customer see that those wants and needs can be satisfied by the product.
This leads to another aspect of knowledge. The champion is a student of the sales business. They take the trouble to read about selling; they take the trouble to attend sales courses and refreshers to keep their knowledge bank ‘dusted off’ and open for business.
The third is the area of skills. Champions polish their skills by practising what they learn; they practise in the field and they also practise in the privacy of their business or their home.
They do this because they realise that sales is a ‘use it or lose it’ business.
The fourth is the area of habits. Champions realise that successful people do the things that others don’t like to do – so they develop the habit of doing those very things.
They realise that sales is, to a large extent, a numbers game. This means that they consistently achieve a high level of sales activity; this has the effect of making the numbers work for them rather than against them. They have a daily and weekly sales routine that they stick to. They maintain the habit of conducting high-quality sales discussions/presentations by sticking to their planned structure.
They are in the habit of keeping good records including activity and results records. This enables them to evaluate their performance on an on-going basis in order to find opportunities for improvement. It also means that if things go ‘off the boil’ problems can be identified quickly and fixed before they do too much damage.
Here are some tips on becoming a sales champion
1) Protect and nurture your attitude; don’t mix with negative people, rather expose yourself to positive influences. Recognise that you have the power to choose your own attitudes – use it.
2) Look at your product from the customer’s point of view. What benefits does it provide? How will those benefits satisfy the customer’s needs and wants?
3) Become a student of the sales business; go out of your way to learn from others and through reading. The knowledge gained will provide a firm foundation for a long and successful career.
4) Set aside time to practise your sales skills; enlist the help of a colleague or family member to play the part of the customer. Get used to hearing your own voice saying what it is that you want to say.
5) Recognise that our habits will either make us or break us. Be diligent in developing good work habits and avoid short cuts. Get into the habit of making one extra sales call before knocking off for the day. That would give around 250 extra sales calls in a year – how many extra sales could you expect from that?
(The up-coming post for Monday 16/3 is Using the Wish List question to sell more. It's about a simple yet effective way of finding out about a customer's future purchasing plans.)
It’s worthwhile to examine four key areas where the sales champions do it better and that contribute to their success.
The first is attitude; champions have a positive attitude; they are ‘glass half full people’. This is not to be confused with brashness, cockiness or being falsely ‘pumped up’. It is a quiet positiveness that affects all of their interactions on day-to-day basis. It also means that they respect their customers, their work colleagues, their product and, most importantly, their chosen vocation. This positiveness is infectious and helps sway customers during the sales process.
They also keep their ego under control. They realise that it’s possible to learn from the most humble of people so they are open to suggestion and don’t fear criticism.
Having a positive attitude also helps the champion deal with the inevitable knockbacks that come in selling without taking the rejection personally and getting down at heart. They realise that disappointments are part of sales so they simply dust themselves off and move on as if the disappointment hadn’t happened. This doesn’t mean that they don’t learn from their disappointments. They value the lessons that come from experience; they simply refuse to dwell on the negatives.
The second is knowledge. Champions know their product. They take the trouble to study the features of their product and the benefits those features provide. They do this because they know that customers buy benefits that they want or need. They also accept the responsibility of identifying the customer's wants and needs and helping the customer see that those wants and needs can be satisfied by the product.
This leads to another aspect of knowledge. The champion is a student of the sales business. They take the trouble to read about selling; they take the trouble to attend sales courses and refreshers to keep their knowledge bank ‘dusted off’ and open for business.
The third is the area of skills. Champions polish their skills by practising what they learn; they practise in the field and they also practise in the privacy of their business or their home.
They do this because they realise that sales is a ‘use it or lose it’ business.
The fourth is the area of habits. Champions realise that successful people do the things that others don’t like to do – so they develop the habit of doing those very things.
They realise that sales is, to a large extent, a numbers game. This means that they consistently achieve a high level of sales activity; this has the effect of making the numbers work for them rather than against them. They have a daily and weekly sales routine that they stick to. They maintain the habit of conducting high-quality sales discussions/presentations by sticking to their planned structure.
They are in the habit of keeping good records including activity and results records. This enables them to evaluate their performance on an on-going basis in order to find opportunities for improvement. It also means that if things go ‘off the boil’ problems can be identified quickly and fixed before they do too much damage.
Here are some tips on becoming a sales champion
1) Protect and nurture your attitude; don’t mix with negative people, rather expose yourself to positive influences. Recognise that you have the power to choose your own attitudes – use it.
2) Look at your product from the customer’s point of view. What benefits does it provide? How will those benefits satisfy the customer’s needs and wants?
3) Become a student of the sales business; go out of your way to learn from others and through reading. The knowledge gained will provide a firm foundation for a long and successful career.
4) Set aside time to practise your sales skills; enlist the help of a colleague or family member to play the part of the customer. Get used to hearing your own voice saying what it is that you want to say.
5) Recognise that our habits will either make us or break us. Be diligent in developing good work habits and avoid short cuts. Get into the habit of making one extra sales call before knocking off for the day. That would give around 250 extra sales calls in a year – how many extra sales could you expect from that?
(The up-coming post for Monday 16/3 is Using the Wish List question to sell more. It's about a simple yet effective way of finding out about a customer's future purchasing plans.)
Wednesday, March 11, 2015
Is your Offer strong enough?
A vital ingredient in successful lead generation is the Offer you make to your prospective customers. To be effective your Offer must be strong enough to be seen as ‘of value’ in the eyes of your prospective customers.
Developing a strong Offer requires creativity; it may be ‘something for nothing’, something new, a discount or a ‘special’ or a combination of these.
Your Offer must then be effectively communicated to your prospective customers in such a way to grab their attention and, through a strong ‘call to action’, motivate them to respond positively. To do this you must select the most appropriate mediums and make sure that your material is attractive and well constructed.
(The up-coming post for Friday 13/3 is What do sales champions do better? It makes sense to emulate the best if we want to become one of them.)
Developing a strong Offer requires creativity; it may be ‘something for nothing’, something new, a discount or a ‘special’ or a combination of these.
Your Offer must then be effectively communicated to your prospective customers in such a way to grab their attention and, through a strong ‘call to action’, motivate them to respond positively. To do this you must select the most appropriate mediums and make sure that your material is attractive and well constructed.
(The up-coming post for Friday 13/3 is What do sales champions do better? It makes sense to emulate the best if we want to become one of them.)
Monday, March 9, 2015
Dare to be different
Why is it that a steak in a 5-star restaurant costs more than a steak in a 3-star restaurant, even though the steak may be of similar quality?
It's about what goes on around the steak. It's about things like the ambiance, decor and service. In essence it's about the difference in the experience.
And the customers are happy to pay for it!
What goes on around the steak at your place? What sort of experience do your customers enjoy when doing business with you? Honestly?
If it's more towards the 3-star than the 5-star, and you are struggling to maintain your margins because you find yourself discounting to get the sale, here's a tip.
Dare to be different.
Set about making the experience more enjoyable for your customers; tidy up your decor, hire some happy people, tighten up on your customer service standards, create some points of difference and make them work for you.
Get this right and you may find that customers stop haggling because they like the experience you provide and want to do business with you.
Wouldn't that be great?
(The up-coming post for Wednesday 11/3 is Is your Offer strong enough? It's a reminder about making sure your Offer is strong enough to attract potential customers.)
It's about what goes on around the steak. It's about things like the ambiance, decor and service. In essence it's about the difference in the experience.
And the customers are happy to pay for it!
What goes on around the steak at your place? What sort of experience do your customers enjoy when doing business with you? Honestly?
If it's more towards the 3-star than the 5-star, and you are struggling to maintain your margins because you find yourself discounting to get the sale, here's a tip.
Dare to be different.
Set about making the experience more enjoyable for your customers; tidy up your decor, hire some happy people, tighten up on your customer service standards, create some points of difference and make them work for you.
Get this right and you may find that customers stop haggling because they like the experience you provide and want to do business with you.
Wouldn't that be great?
(The up-coming post for Wednesday 11/3 is Is your Offer strong enough? It's a reminder about making sure your Offer is strong enough to attract potential customers.)
Friday, March 6, 2015
Telling ain't selling
Effective selling is built around a 'conversation' not a 'lecture'. (Most of us don't like to be lectured at - neither do our customers.)
This conversational approach certainly requires the ability to use 'conversational' questions to identify a customers needs, wants, preferences and prejudices (aka their 'hot buttons'); it also requires a conversational tone from beginning to end - including the Final Close.
The main advantage of the conversational approach is that it's non-threatening and therefore unlikely to provoke unnecessary resistance from the customer. Remember that there's an element of woo in good selling.
So keep cool - in golfing parlance 'don't try to hit the cover off the ball'. Swing your sales club sweetly and let it do the work.
(A footnote: Don't get the feeling that conversational means meandering, unstructured or aimless. On the contrary it requires a careful structure and a strong mind. It's mainly about tone and manner.)
(The up-coming post for Monday 10/3 is Dare to be different. It's about the importance of being seen as 'different' in the eyes of customers.)
This conversational approach certainly requires the ability to use 'conversational' questions to identify a customers needs, wants, preferences and prejudices (aka their 'hot buttons'); it also requires a conversational tone from beginning to end - including the Final Close.
The main advantage of the conversational approach is that it's non-threatening and therefore unlikely to provoke unnecessary resistance from the customer. Remember that there's an element of woo in good selling.
So keep cool - in golfing parlance 'don't try to hit the cover off the ball'. Swing your sales club sweetly and let it do the work.
(A footnote: Don't get the feeling that conversational means meandering, unstructured or aimless. On the contrary it requires a careful structure and a strong mind. It's mainly about tone and manner.)
(The up-coming post for Monday 10/3 is Dare to be different. It's about the importance of being seen as 'different' in the eyes of customers.)
Wednesday, March 4, 2015
Do sales competitions work?
Most of us who have been in sales for any length of time have been involved in sales competitions of various sorts (either as a participant or as a sponsor-organiser).
To me the main benefit of running any sales competition is the opportunity to create a buzz based on friendly rivalry; to generate 'good news'. The competition, its rules, its prize(s) and its recognition of winners is simply the vehicle by which that buzz is created.
In my experience some competitions work and others don't - for a number of reasons. Here are some of them -
Reasons why some competitions don't work -
They have too many participants
If the pool of participants is too big and the opportunities to 'win' too small many if not most of the participants will lose interest very quickly. They will be turned off rather than turned on because they recognise the unlikelihood of them winning.
The competition is run over too long a time frame
A competition run over a year will fail to hold the interest of all but the top two or three participants. A competition run each month of a year will do a better job of holding participants' interest; it will produce a winner and the good news twelve times during the year rather than just once.
The winner(s) are easily predicted
If there is a superior performer in the sales group it's likely that that person will win every competition unless the competition rules are designed carefully. Some ways around this include basing results on percentage of budget achieved or number of orders from new customers. If the group has a number of 'old hands' and a number of 'newer hands' you may want to run your competition in two 'flights'.
The competition isn't 'talked up' by the sales manager
If you are the sales manager you need to take the opportunity as often as you reasonably can to talk up the competition and ask individual salespeople how they're progressing in it. If you show your interest they will become interested also; if you don't they won't.
Regular progress results aren't forthcoming
This goes back to the old adage - if we keep the score the score gets better. It's important to keep participants informed of the score.
Winning is made too difficult
It all goes back to the reasons behind the running of the competition. In my view the reasons for running a sales competition are (or should be) to
> Create some good news by recognising good sales performances
> Reward that performance; to foster a 'winning' culture in a sales group
> To provide another medium to publish sales results apart from the bare statistics generated by 'the system'
> To engage salespeople in friendly rivalry
People who feel good about themselves generally perform better. Sales competitions are about helping salespeople feel good about themselves.
(The up-coming post for Friday 6/3 is Telling ain't selling. It's reminder about another old truth in sales.)
To me the main benefit of running any sales competition is the opportunity to create a buzz based on friendly rivalry; to generate 'good news'. The competition, its rules, its prize(s) and its recognition of winners is simply the vehicle by which that buzz is created.
In my experience some competitions work and others don't - for a number of reasons. Here are some of them -
Reasons why some competitions don't work -
They have too many participants
If the pool of participants is too big and the opportunities to 'win' too small many if not most of the participants will lose interest very quickly. They will be turned off rather than turned on because they recognise the unlikelihood of them winning.
The competition is run over too long a time frame
A competition run over a year will fail to hold the interest of all but the top two or three participants. A competition run each month of a year will do a better job of holding participants' interest; it will produce a winner and the good news twelve times during the year rather than just once.
The winner(s) are easily predicted
If there is a superior performer in the sales group it's likely that that person will win every competition unless the competition rules are designed carefully. Some ways around this include basing results on percentage of budget achieved or number of orders from new customers. If the group has a number of 'old hands' and a number of 'newer hands' you may want to run your competition in two 'flights'.
The competition isn't 'talked up' by the sales manager
If you are the sales manager you need to take the opportunity as often as you reasonably can to talk up the competition and ask individual salespeople how they're progressing in it. If you show your interest they will become interested also; if you don't they won't.
Regular progress results aren't forthcoming
This goes back to the old adage - if we keep the score the score gets better. It's important to keep participants informed of the score.
Winning is made too difficult
It all goes back to the reasons behind the running of the competition. In my view the reasons for running a sales competition are (or should be) to
> Create some good news by recognising good sales performances
> Reward that performance; to foster a 'winning' culture in a sales group
> To provide another medium to publish sales results apart from the bare statistics generated by 'the system'
> To engage salespeople in friendly rivalry
People who feel good about themselves generally perform better. Sales competitions are about helping salespeople feel good about themselves.
(The up-coming post for Friday 6/3 is Telling ain't selling. It's reminder about another old truth in sales.)
Monday, March 2, 2015
Are questions the answer?
The best salespeople are opportunity-identifiers and/or problem-solvers working to help their customers.
To do this they must locate and respect their customer’s buying triggers, those being their customer’s ‘hot buttons’, cold button’ and ‘sore points’. (A hot button is a point of interest or concern to the customer – something they want to hear more about and will buy; a cold button is a point of no interest or concern to the customer – something they don’t want to hear about and won’t buy; a sore point is an aspect of their current situation that they are unhappy with and would like to have fixed.)
A salesperson can identify a customer’s buying triggers only by asking well-planned and well-rehearsed questions (and listening to the answers).
Here are some tips that can help with this process.
Avoid using Yes/No questions
An amusing way to illustrate this point is to examine the classic old-time greeting ‘How ya goin? OK?’ In this greeting the greeter asks an Information-seeking question ‘How are you going?’ Then immediately turns it into a Yes/No question by asking ‘OK?’ Little wonder that the answer is monosyllabic and the conversation dies.
Information-seeking questions generally keep the conversation rolling. Therefore, whether the situation is social or business it’s best to use Information-seekers whenever possible.
Information-seeking questions start with words like Who, What, When, Where, Which, Why and How.
Most, if not all, Yes/No questions can be turned in to Information-seekers with a little thought. ‘Did you have a good weekend?’ can become ‘How was your weekend?’ ‘Have you tried such-and-such?’ can become ‘What have you tried so far?’
Tee up the question before asking it
This is a lesson many TV and radio interviewers need to learn. How often have you heard a sports commentator ask a question like this; ‘Bill what did you think of the course today? In the past you’ve been quoted as saying that Troon is more suited to ……than ……’
The mistake here is that the question is asked, but then the interviewer keeps talking, letting the interviewee off the hook by helping with the answer. (To extend the golf analogy, it’s like trying to tee up the ball after you’ve hit it.)
Better to re-structure the question to ‘Bill, in the past you’ve been quoted as saying that Troon is more suited to …… than ……. What did you think of the course today?’
Having finished with the question, the interviewer should keep quiet and give the interviewee a chance to answer. If more information is wanted a follow-up question can be asked.
Give your customer the opportunity to express a preference
It’s vital that salespeople understand their customer’s attitudes and preferences before trying to sell them anything.
One way of helping with this, and also keeping the conversation rolling is to, early in the discussion, ask the customer for their preference or opinion.
One example of this is the investment adviser who says something like ‘Some of the people I talk to about their investment arrangements feel more concerned about the security of their investments than the rate of return they get. Others feel the opposite. How do you feel?
Another example might be the auto salesperson who says something like ‘Some of the people I talk to about their auto requirements feel more concerned about on-road performance than fuel economy. Others feel the opposite. How do you feel?
If the customer nominates one the salesperson has identified a possible trigger. If the customer responds with ‘A bit of both’ it opens the way for another question, keeping the conversation rolling.
Don’t use questions as traps
Good selling is not about getting a customer to say ‘Yes’ when they want to say ‘No’. It is, however, about helping them say ‘Yes’ when they want to say ‘Yes’.
Even so, a salesperson will sometimes be tempted to use questions as traps to get the customer to say ‘Yes’ when they don’t want to. The giveaway here is that the salesperson will either use a Yes/No question or make a statement and ask the customer to agree to it.
This is a dangerous practice. Customers aren’t silly; they know when they are being manipulated and resent it.
Keep it conversational
Discussions with customers should be conversations not interrogations. None of us like feeling that we are being interrogated; we normally clam up and give only minimum information (and not all of that accurate).
With that in mind salespeople need to master the skill of asking questions in a conversational way. This requires a respectful mindset and a relaxed manner. It will maintain the opportunity for relaxed and open communication with the customer. This in turn makes it easier for the salesperson to understand, and therefore satisfy, the customer’s needs and wants.
A final thought
The ability to ask the right questions is a skill that helps in all areas of business not just in sales. Consider areas like personnel, production or finance; how many times are problems in these areas over-looked or dealt with in a less-than-satisfactory manner because people who should know better failed to ask the right questions at the right time.
Remember that the quality of a question generally determines the quality of the answer it generates.
(The up-coming post for Wednesday 4/3 is Do sales competitions work? It seeks to provide some ideas on the effectiveness of sales competitions in improving sales results.)
To do this they must locate and respect their customer’s buying triggers, those being their customer’s ‘hot buttons’, cold button’ and ‘sore points’. (A hot button is a point of interest or concern to the customer – something they want to hear more about and will buy; a cold button is a point of no interest or concern to the customer – something they don’t want to hear about and won’t buy; a sore point is an aspect of their current situation that they are unhappy with and would like to have fixed.)
A salesperson can identify a customer’s buying triggers only by asking well-planned and well-rehearsed questions (and listening to the answers).
Here are some tips that can help with this process.
Avoid using Yes/No questions
An amusing way to illustrate this point is to examine the classic old-time greeting ‘How ya goin? OK?’ In this greeting the greeter asks an Information-seeking question ‘How are you going?’ Then immediately turns it into a Yes/No question by asking ‘OK?’ Little wonder that the answer is monosyllabic and the conversation dies.
Information-seeking questions generally keep the conversation rolling. Therefore, whether the situation is social or business it’s best to use Information-seekers whenever possible.
Information-seeking questions start with words like Who, What, When, Where, Which, Why and How.
Most, if not all, Yes/No questions can be turned in to Information-seekers with a little thought. ‘Did you have a good weekend?’ can become ‘How was your weekend?’ ‘Have you tried such-and-such?’ can become ‘What have you tried so far?’
Tee up the question before asking it
This is a lesson many TV and radio interviewers need to learn. How often have you heard a sports commentator ask a question like this; ‘Bill what did you think of the course today? In the past you’ve been quoted as saying that Troon is more suited to ……than ……’
The mistake here is that the question is asked, but then the interviewer keeps talking, letting the interviewee off the hook by helping with the answer. (To extend the golf analogy, it’s like trying to tee up the ball after you’ve hit it.)
Better to re-structure the question to ‘Bill, in the past you’ve been quoted as saying that Troon is more suited to …… than ……. What did you think of the course today?’
Having finished with the question, the interviewer should keep quiet and give the interviewee a chance to answer. If more information is wanted a follow-up question can be asked.
Give your customer the opportunity to express a preference
It’s vital that salespeople understand their customer’s attitudes and preferences before trying to sell them anything.
One way of helping with this, and also keeping the conversation rolling is to, early in the discussion, ask the customer for their preference or opinion.
One example of this is the investment adviser who says something like ‘Some of the people I talk to about their investment arrangements feel more concerned about the security of their investments than the rate of return they get. Others feel the opposite. How do you feel?
Another example might be the auto salesperson who says something like ‘Some of the people I talk to about their auto requirements feel more concerned about on-road performance than fuel economy. Others feel the opposite. How do you feel?
If the customer nominates one the salesperson has identified a possible trigger. If the customer responds with ‘A bit of both’ it opens the way for another question, keeping the conversation rolling.
Don’t use questions as traps
Good selling is not about getting a customer to say ‘Yes’ when they want to say ‘No’. It is, however, about helping them say ‘Yes’ when they want to say ‘Yes’.
Even so, a salesperson will sometimes be tempted to use questions as traps to get the customer to say ‘Yes’ when they don’t want to. The giveaway here is that the salesperson will either use a Yes/No question or make a statement and ask the customer to agree to it.
This is a dangerous practice. Customers aren’t silly; they know when they are being manipulated and resent it.
Keep it conversational
Discussions with customers should be conversations not interrogations. None of us like feeling that we are being interrogated; we normally clam up and give only minimum information (and not all of that accurate).
With that in mind salespeople need to master the skill of asking questions in a conversational way. This requires a respectful mindset and a relaxed manner. It will maintain the opportunity for relaxed and open communication with the customer. This in turn makes it easier for the salesperson to understand, and therefore satisfy, the customer’s needs and wants.
A final thought
The ability to ask the right questions is a skill that helps in all areas of business not just in sales. Consider areas like personnel, production or finance; how many times are problems in these areas over-looked or dealt with in a less-than-satisfactory manner because people who should know better failed to ask the right questions at the right time.
Remember that the quality of a question generally determines the quality of the answer it generates.
(The up-coming post for Wednesday 4/3 is Do sales competitions work? It seeks to provide some ideas on the effectiveness of sales competitions in improving sales results.)
Friday, February 27, 2015
A lesson for sales managers
This is a fable about a sales manager, a salesman, his wife and a bank passbook
Once upon a time a salesman was recruited into a commission-only sales environment by a certain sales manager.
Early signs were not good - the salesman struggled to make any real money. The sales manager did what he thought was the right thing and kept on encouraging the salesman - "You'll be OK - just keep on making the calls" etc.
Results didn't improve and eventually reality had to be faced and the salesman quit - feeling bad about himself for having let down the sales manager.
Soon after this happened the salesman's wife went to see the sales manager - in her hand she had a bank passbook. She showed the passbook to the sales manager and said "Look what you have done to us!" The passbook showed a healthy balance at the time the salesman joined the sales manager's company but the balance was now almost zero. (Clearly, the salesman had been dipping into the passbook funds to keep things afloat.) The wife went on - "Why did you lead him on for so long when it was clear that he was not going to make it!"
Whether the wife was justified in her actions would make a good discussion topic at a sales management conference however I believe that there are at least two morals to the story (you may see others). Firstly, that continual unjustified encouragement is dangerous; secondly, the sooner we face disappointing realities the better all round.
(The up-coming post for Monday 2/3 is Are questions the answer? It's about the importance of using good questions in the sales process.)
Once upon a time a salesman was recruited into a commission-only sales environment by a certain sales manager.
Early signs were not good - the salesman struggled to make any real money. The sales manager did what he thought was the right thing and kept on encouraging the salesman - "You'll be OK - just keep on making the calls" etc.
Results didn't improve and eventually reality had to be faced and the salesman quit - feeling bad about himself for having let down the sales manager.
Soon after this happened the salesman's wife went to see the sales manager - in her hand she had a bank passbook. She showed the passbook to the sales manager and said "Look what you have done to us!" The passbook showed a healthy balance at the time the salesman joined the sales manager's company but the balance was now almost zero. (Clearly, the salesman had been dipping into the passbook funds to keep things afloat.) The wife went on - "Why did you lead him on for so long when it was clear that he was not going to make it!"
Whether the wife was justified in her actions would make a good discussion topic at a sales management conference however I believe that there are at least two morals to the story (you may see others). Firstly, that continual unjustified encouragement is dangerous; secondly, the sooner we face disappointing realities the better all round.
(The up-coming post for Monday 2/3 is Are questions the answer? It's about the importance of using good questions in the sales process.)
Wednesday, February 25, 2015
Selling is theatre
I’m sure that you’ve seen them – I certainly have.
They are the men and women who sell items of all kinds from street stalls and in markets the world over.
The ones I enjoy watching are those who sell kitchen items like vegetable peelers and mandolins – they are real show-people.
Even though their products may be of poor quality (they may have even fallen off the back of a truck!) and some of their tactics more than a little suspect they know one thing – they know how to draw and hold a crowd! They understand the theatre of selling.
While I wouldn’t encourage salespeople anywhere to adopt the dubious tactics that some of these people employ I would encourage them to accept that there is a deal of theatre in professional selling. Professional salespeople need to be able to draw and hold a person’s (or a group’s) attention throughout a sales discussion (or presentation).
With that in mind let a little of the inner actor emerge at your next meeting with a prospective customer – not to be phony or false but to help you draw and hold their attention.
(The up-coming post for Friday 27/2 is A lesson for sales managers. It's about being candid with failing salespeople - and what can happen if you aren't.)
They are the men and women who sell items of all kinds from street stalls and in markets the world over.
The ones I enjoy watching are those who sell kitchen items like vegetable peelers and mandolins – they are real show-people.
Even though their products may be of poor quality (they may have even fallen off the back of a truck!) and some of their tactics more than a little suspect they know one thing – they know how to draw and hold a crowd! They understand the theatre of selling.
While I wouldn’t encourage salespeople anywhere to adopt the dubious tactics that some of these people employ I would encourage them to accept that there is a deal of theatre in professional selling. Professional salespeople need to be able to draw and hold a person’s (or a group’s) attention throughout a sales discussion (or presentation).
With that in mind let a little of the inner actor emerge at your next meeting with a prospective customer – not to be phony or false but to help you draw and hold their attention.
(The up-coming post for Friday 27/2 is A lesson for sales managers. It's about being candid with failing salespeople - and what can happen if you aren't.)
Monday, February 23, 2015
The importance of repetition in training
My experience in training over a number of years has cemented in my mind some important points about the need for deliberate, careful repetition of key points in the training message during any training session. This is especially so of group training sessions.
Here are three of those important points -
Firstly, some people need to hear the same message multiple times before that message sinks in.
Secondly, it's sometimes necessary to 'package' a single message in several different ways for it to be accepted by all members of a group. (Some will 'get' it one way, others will 'get' it another way.)
Thirdly, people 'tune in' and 'tune out' during a training session - we shouldn't be surprised by that, it's basic human behaviour. What it does mean is that any information that we impart while any participant is tuned out will be lost to that participant.
My tip therefore is to build planned repetition of key points into any training presentation so you maximise your chance of having your training message accepted and, more importantly, acted on.
(The up-coming post for Wednesday 25/2 is Selling is theatre. It's about the need to put on a good show.)
Here are three of those important points -
Firstly, some people need to hear the same message multiple times before that message sinks in.
Secondly, it's sometimes necessary to 'package' a single message in several different ways for it to be accepted by all members of a group. (Some will 'get' it one way, others will 'get' it another way.)
Thirdly, people 'tune in' and 'tune out' during a training session - we shouldn't be surprised by that, it's basic human behaviour. What it does mean is that any information that we impart while any participant is tuned out will be lost to that participant.
My tip therefore is to build planned repetition of key points into any training presentation so you maximise your chance of having your training message accepted and, more importantly, acted on.
(The up-coming post for Wednesday 25/2 is Selling is theatre. It's about the need to put on a good show.)
Friday, February 20, 2015
Keep on scoring
Keep the score and the score gets better
Can you imagine a football game (or even a game of cribbage) where the game was played but the score wasn't kept. How interesting would that be?
The truth is that most, perhaps all, people are competitive and respond to score-keeping - and so it is with salespeople.
With this in mind keep the score and share it. To me this is not just about 'results' scores but also 'activity' scores; remember that it's the activity that generates the results.
Make a game of it by encouraging salespeople to continually 'beat their best' in key areas.
(The up-coming post for Monday 23/2 is The importance of repetition in training. It's about the need for ongoing reinforcement of key messages in sales training.)
Can you imagine a football game (or even a game of cribbage) where the game was played but the score wasn't kept. How interesting would that be?
The truth is that most, perhaps all, people are competitive and respond to score-keeping - and so it is with salespeople.
With this in mind keep the score and share it. To me this is not just about 'results' scores but also 'activity' scores; remember that it's the activity that generates the results.
Make a game of it by encouraging salespeople to continually 'beat their best' in key areas.
(The up-coming post for Monday 23/2 is The importance of repetition in training. It's about the need for ongoing reinforcement of key messages in sales training.)
Wednesday, February 18, 2015
Make your customers feel valued
Let me use a personal story to illustrate this tip. About two years ago a new coffee shop opened in our local shopping centre. Preferring to support local enterprise, my wife and I started to patronise this shop.
In the beginning it was great - the coffee was good, meals were available for those who wanted them and the staff were excellent - there was always a friendly greeting when we entered the shop and a sincere 'thank you' when we left (it wasn't just us by the way - I heard other customers being treated similarly).
My wife and I became regulars - in part because we felt valued. The shop became our preferred 'coffee stop'.
Then things changed; the management changed, some of the original staff left and the 'hellos' and 'thank yous' became less frequent. We lost that 'valued' feeling. We haven't stopped going to this place but we don't go there as often as we used to. It's no longer our preferred coffee stop; and I'm sure that other customers will have done the same.
This is just one example of simple things that can help a customer feel valued (or not valued). You will know of others from your own experience.
It's a fact that, everything else being equal, customers will patronise businesses where their custom seems most valued.
(The up-coming post for Friday 20/2 is Keep on scoring. It's about the notion that 'if we keep the score the score gets better' and how it applies to selling.)
In the beginning it was great - the coffee was good, meals were available for those who wanted them and the staff were excellent - there was always a friendly greeting when we entered the shop and a sincere 'thank you' when we left (it wasn't just us by the way - I heard other customers being treated similarly).
My wife and I became regulars - in part because we felt valued. The shop became our preferred 'coffee stop'.
Then things changed; the management changed, some of the original staff left and the 'hellos' and 'thank yous' became less frequent. We lost that 'valued' feeling. We haven't stopped going to this place but we don't go there as often as we used to. It's no longer our preferred coffee stop; and I'm sure that other customers will have done the same.
This is just one example of simple things that can help a customer feel valued (or not valued). You will know of others from your own experience.
It's a fact that, everything else being equal, customers will patronise businesses where their custom seems most valued.
(The up-coming post for Friday 20/2 is Keep on scoring. It's about the notion that 'if we keep the score the score gets better' and how it applies to selling.)
Monday, February 16, 2015
Let's beat that sales budget
If you are the sales boss in a business this post is for you.
The achievement of sales budgets in any business is critical to that business’s profitability and longevity; not to mention the longevity of the sales boss.
A sales boss can do a number of things to help their salespeople achieve their sales budgets. Here are some of them -
Break their budgets down in to achievable ‘chunks’ of activity
We all know that the way to eat an elephant is one bite at a time. Similarly with sales budgets; the easiest way to achieve them is one chunk at a time. Here are some tips that will help –
Firstly, allocate a portion of the annual sales budget to each month of the year. This is rarely as simple as dividing the year’s budget by twelve and allocating the result to each month as that month’s sales budget. In most businesses there is a seasonality that applies to their sales results.
For example in some businesses January may be a traditionally quiet month while June may be the biggest sales month of the year. Other month’s results may also reflect seasonality. The sales boss in such a business would be wise to allocate each month’s budget accordingly.
Secondly, convert each month’s budget into a number of sales (or orders) to be achieved. This is as simple as establishing the average sale value likely to be achieved (taking into account past results) and dividing that value in to each month’s sales budget. The result is the likely number of sales that will need to be achieved in each month.
Thirdly, establish the number of proposals (or quotes) that will need to be presented to customers to achieve the necessary sales. For example, if a business ‘closes’ half of the proposals it presents it will need to present twice as many proposals as it expects to make sales.
By now your salespeople have a budget broken down into monthly chunks covering sales dollars, numbers of sales and proposals to be presented.
They can now focus, month-by-month, on presenting the required number of proposals.
(If your sales activity records are good enough you could go at least one step further and determine the number of sales calls needed to be made each month.)
Record this data on a spreadsheet to allow for easier tracking and clearer feedback.
Ensure that customers are categorized
The 80/20 Rule applies to sales in a number of ways. One of these is that generally 80% of a business’s sales revenue comes from its top 20% of customers.
A practical application of this is to categorise the business’s customers into three groups, A’s, B’s and C’s as a way of ensuring that the business’s customers get appropriate attention and service.
Most of the TLC should be directed to the business’s A class customers because it will be the sales made to them that make or break the sales budget.
Help them balance their time allocation
The 80/20 Rule also applies to salespeople’s time. If a salesperson spends 20% of their time pro-actively prospecting for new sales opportunities they generally create enough follow-through work to achieve the desired sales result. (Prospecting in this context means phoning or calling on prospective customers to secure sales appointments; but not time spent in sales appointments).
Put another way, if a salesperson spends an average of 2 hours a day setting up sales appointments with good-quality customers they will achieve a high level of follow-through activity and plenty of sales.
Unfortunately many salespeople spend considerably less than 2 hours a day setting up sales appointments. Sometimes this is due to poor self-organisation. Other times it’s caused by distractions within the business. These can occur if non-sales staff, who don’t appreciate the sales staff’s priorities, side-track them with non-sales activities like administration or service work. (Sometimes non-sales staff simply need to get out of the way and let the sales staff do the job they are paid to do.)
As the sales boss you can help by ensuring that your sales staff manage their time properly and that non-sales staff are supportive and not accidental saboteurs.
Provide regular balanced feedback
Salespeople, like everyone else, respond to feedback that’s honest, fair and balanced. Don’t be a sales boss who only gives feedback when the news is bad.
Feedback can be informal or formal. Informal feedback is the impromptu enquiry as to how things are going and the impromptu pat on the back for a job well done.
Formal feedback requires preparation by the sales boss and involves noting key points to be covered in a feedback (or review) meeting. The individual salesperson should also be encouraged to do some preparation. One way to do this is to provide them with a short self-analysis questionnaire, asking them to comment on their own performance, in advance of the feedback meeting. This will prompt them to collect their thoughts in order to make the meeting more meaningful.
Be sensitive to the ‘atmosphere’
Salespeople get best results when they work in a positive and structured atmosphere.
Make sure that all staff are positive and supportive of each other; don’t put up with whiners anywhere in the business.
(The up-coming post for Wednesday 18/2 is Make your customers feel valued. It's a reminder that the more valued your customers feel the more likely it is that they will continue to do business with you..)
The achievement of sales budgets in any business is critical to that business’s profitability and longevity; not to mention the longevity of the sales boss.
A sales boss can do a number of things to help their salespeople achieve their sales budgets. Here are some of them -
Break their budgets down in to achievable ‘chunks’ of activity
We all know that the way to eat an elephant is one bite at a time. Similarly with sales budgets; the easiest way to achieve them is one chunk at a time. Here are some tips that will help –
Firstly, allocate a portion of the annual sales budget to each month of the year. This is rarely as simple as dividing the year’s budget by twelve and allocating the result to each month as that month’s sales budget. In most businesses there is a seasonality that applies to their sales results.
For example in some businesses January may be a traditionally quiet month while June may be the biggest sales month of the year. Other month’s results may also reflect seasonality. The sales boss in such a business would be wise to allocate each month’s budget accordingly.
Secondly, convert each month’s budget into a number of sales (or orders) to be achieved. This is as simple as establishing the average sale value likely to be achieved (taking into account past results) and dividing that value in to each month’s sales budget. The result is the likely number of sales that will need to be achieved in each month.
Thirdly, establish the number of proposals (or quotes) that will need to be presented to customers to achieve the necessary sales. For example, if a business ‘closes’ half of the proposals it presents it will need to present twice as many proposals as it expects to make sales.
By now your salespeople have a budget broken down into monthly chunks covering sales dollars, numbers of sales and proposals to be presented.
They can now focus, month-by-month, on presenting the required number of proposals.
(If your sales activity records are good enough you could go at least one step further and determine the number of sales calls needed to be made each month.)
Record this data on a spreadsheet to allow for easier tracking and clearer feedback.
Ensure that customers are categorized
The 80/20 Rule applies to sales in a number of ways. One of these is that generally 80% of a business’s sales revenue comes from its top 20% of customers.
A practical application of this is to categorise the business’s customers into three groups, A’s, B’s and C’s as a way of ensuring that the business’s customers get appropriate attention and service.
Most of the TLC should be directed to the business’s A class customers because it will be the sales made to them that make or break the sales budget.
Help them balance their time allocation
The 80/20 Rule also applies to salespeople’s time. If a salesperson spends 20% of their time pro-actively prospecting for new sales opportunities they generally create enough follow-through work to achieve the desired sales result. (Prospecting in this context means phoning or calling on prospective customers to secure sales appointments; but not time spent in sales appointments).
Put another way, if a salesperson spends an average of 2 hours a day setting up sales appointments with good-quality customers they will achieve a high level of follow-through activity and plenty of sales.
Unfortunately many salespeople spend considerably less than 2 hours a day setting up sales appointments. Sometimes this is due to poor self-organisation. Other times it’s caused by distractions within the business. These can occur if non-sales staff, who don’t appreciate the sales staff’s priorities, side-track them with non-sales activities like administration or service work. (Sometimes non-sales staff simply need to get out of the way and let the sales staff do the job they are paid to do.)
As the sales boss you can help by ensuring that your sales staff manage their time properly and that non-sales staff are supportive and not accidental saboteurs.
Provide regular balanced feedback
Salespeople, like everyone else, respond to feedback that’s honest, fair and balanced. Don’t be a sales boss who only gives feedback when the news is bad.
Feedback can be informal or formal. Informal feedback is the impromptu enquiry as to how things are going and the impromptu pat on the back for a job well done.
Formal feedback requires preparation by the sales boss and involves noting key points to be covered in a feedback (or review) meeting. The individual salesperson should also be encouraged to do some preparation. One way to do this is to provide them with a short self-analysis questionnaire, asking them to comment on their own performance, in advance of the feedback meeting. This will prompt them to collect their thoughts in order to make the meeting more meaningful.
Be sensitive to the ‘atmosphere’
Salespeople get best results when they work in a positive and structured atmosphere.
Make sure that all staff are positive and supportive of each other; don’t put up with whiners anywhere in the business.
(The up-coming post for Wednesday 18/2 is Make your customers feel valued. It's a reminder that the more valued your customers feel the more likely it is that they will continue to do business with you..)
Friday, February 13, 2015
How to conduct performance reviews with sales staff
If you are the ‘sales boss’ in your business (whether you are the business-owner or an employed manager) you owe it to your sales staff to maintain a schedule of regular performance review discussions in regard to their sales activities and results. This applies whether you have a sales staff of one or many.
Unfortunately, there are plenty of opportunities for mistake-making when conducting review discussions – so here are a few ‘do’s and don’ts’.
Do conduct your review discussions regularly and at appropriate intervals. This may mean that you have a review discussion with your experienced salespeople every three months. For a salesperson who is in the intermediate stages of development your review discussions may be conducted on a monthly basis. For an absolute beginner you may conduct review discussions weekly.
If you don’t conduct review discussions on a regular basis you will probably fall for the trap of ‘reviewing' only when the news is bad. This is not smart because it puts these discussions in a negative light.
Do have your salespeople do some preparatory work before the review discussion. In my view the best way to do this is to provide them with a self-analysis questionnaire. This questionnaire should, as a minimum, invite them to (a) comment on their own performance (b) nominate any areas where they have experienced difficulty and (c) give them the opportunity to point out actions they, or you, could take to help them improve their performance. This questionnaire can then be used as the backbone of the review discussion.
Do be prepared yourself. You will almost certainly have points you want to raise. Have these points prepared, with any backup data at hand so you can access it quickly if it’s required.
Do be open-minded and encourage two-way communication. Because you have done your preparation you may be tempted to speak but not listen. You must listen to your salesperson out of respect. Also, they may have an idea that could make a significant difference to the business (but, they will offer their ideas only if they believe they will be listened to with an open mind).
Don’t let the review discussion become an ear-bashing. This generally happens when ‘reviewing' a salesperson’s performance when that performance is below standard.
A properly conducted review discussion with such a salesperson can often uncover barriers to that person’s performance. Other times it can uncover that salesperson’s motivational buttons.
However, neither of these things will happen if the boss doesn’t ask the right questions and quietly listen to the answers.
Do be balanced in your comments. Rarely is the news all bad or all good. Deal with any ‘bad news’ aspects in an open manner. When dealing with bad news items, stick to the facts and try to point your salesperson in the direction that you want them to go.
As far as ‘good news’ items are concerned; highlight them. If praise is deserved, make sure that you give it. (Praise is like fertiliser for salespeople in that it helps them grow. Also, like fertilising, it can be overdone, so keep it sincere.)
Don’t cross the line and get too personal. The purpose of the discussion is to (a) review progress (b) identify areas where changes are necessary or additional help, training and support is required and (c) reach agreement on actions to be taken. This requires focus on the facts not the person.
Don’t make threats. If the performance of the salesperson is such that you are tempted to threaten them this sort of discussion is the wrong forum. Perhaps you should get your HR advisor involved and conduct a formal warning meeting.
Do follow-up in writing. This makes follow-though easier and helps make the next review discussion with the individual more meaningful. The written follow-up should be in the form of a letter from you to your salesperson. It is not a formal record but simply a summary of the key points discussed and any actions agreed upon by either party. The tone should be friendly and supportive; and it must finish on a positive note.
Do follow through on agreed actions (both your own and your salesperson’s). If you have undertaken to do certain things as a result of the review discussion, do them in a timely fashion. If your salesperson has undertaken to do certain things, make sure that they also keep to their side of the agreement.
Don’t try to save time by reviewing your salespeople in groups. To do so is disrespectful to your people and will certainly result in the laundering of comments by them. Let’s face it, an individual is unlikely to be totally open and unguarded if forced to discuss their own performance in front of their peers.
Summary
Preparing for, conducting and following through on review discussions requires the investment of time and effort. If you can accept the challenge of making that investment you can expect to receive some considerable benefits.
These include a better relationship with your salespeople; plus a better understanding of them and their motivators as well as their needs in terms of training and support. They will gain a clearer understanding of your expectations.
This, in turn, can only lead to a better business environment and better sales results.
(The up-coming post for Monday 16/2 is Let's beat that sales budget. It's about actions that you can take to ensure that you achieve, or exceed, your sales budget.)
Unfortunately, there are plenty of opportunities for mistake-making when conducting review discussions – so here are a few ‘do’s and don’ts’.
Do conduct your review discussions regularly and at appropriate intervals. This may mean that you have a review discussion with your experienced salespeople every three months. For a salesperson who is in the intermediate stages of development your review discussions may be conducted on a monthly basis. For an absolute beginner you may conduct review discussions weekly.
If you don’t conduct review discussions on a regular basis you will probably fall for the trap of ‘reviewing' only when the news is bad. This is not smart because it puts these discussions in a negative light.
Do have your salespeople do some preparatory work before the review discussion. In my view the best way to do this is to provide them with a self-analysis questionnaire. This questionnaire should, as a minimum, invite them to (a) comment on their own performance (b) nominate any areas where they have experienced difficulty and (c) give them the opportunity to point out actions they, or you, could take to help them improve their performance. This questionnaire can then be used as the backbone of the review discussion.
Do be prepared yourself. You will almost certainly have points you want to raise. Have these points prepared, with any backup data at hand so you can access it quickly if it’s required.
Do be open-minded and encourage two-way communication. Because you have done your preparation you may be tempted to speak but not listen. You must listen to your salesperson out of respect. Also, they may have an idea that could make a significant difference to the business (but, they will offer their ideas only if they believe they will be listened to with an open mind).
Don’t let the review discussion become an ear-bashing. This generally happens when ‘reviewing' a salesperson’s performance when that performance is below standard.
A properly conducted review discussion with such a salesperson can often uncover barriers to that person’s performance. Other times it can uncover that salesperson’s motivational buttons.
However, neither of these things will happen if the boss doesn’t ask the right questions and quietly listen to the answers.
Do be balanced in your comments. Rarely is the news all bad or all good. Deal with any ‘bad news’ aspects in an open manner. When dealing with bad news items, stick to the facts and try to point your salesperson in the direction that you want them to go.
As far as ‘good news’ items are concerned; highlight them. If praise is deserved, make sure that you give it. (Praise is like fertiliser for salespeople in that it helps them grow. Also, like fertilising, it can be overdone, so keep it sincere.)
Don’t cross the line and get too personal. The purpose of the discussion is to (a) review progress (b) identify areas where changes are necessary or additional help, training and support is required and (c) reach agreement on actions to be taken. This requires focus on the facts not the person.
Don’t make threats. If the performance of the salesperson is such that you are tempted to threaten them this sort of discussion is the wrong forum. Perhaps you should get your HR advisor involved and conduct a formal warning meeting.
Do follow-up in writing. This makes follow-though easier and helps make the next review discussion with the individual more meaningful. The written follow-up should be in the form of a letter from you to your salesperson. It is not a formal record but simply a summary of the key points discussed and any actions agreed upon by either party. The tone should be friendly and supportive; and it must finish on a positive note.
Do follow through on agreed actions (both your own and your salesperson’s). If you have undertaken to do certain things as a result of the review discussion, do them in a timely fashion. If your salesperson has undertaken to do certain things, make sure that they also keep to their side of the agreement.
Don’t try to save time by reviewing your salespeople in groups. To do so is disrespectful to your people and will certainly result in the laundering of comments by them. Let’s face it, an individual is unlikely to be totally open and unguarded if forced to discuss their own performance in front of their peers.
Summary
Preparing for, conducting and following through on review discussions requires the investment of time and effort. If you can accept the challenge of making that investment you can expect to receive some considerable benefits.
These include a better relationship with your salespeople; plus a better understanding of them and their motivators as well as their needs in terms of training and support. They will gain a clearer understanding of your expectations.
This, in turn, can only lead to a better business environment and better sales results.
(The up-coming post for Monday 16/2 is Let's beat that sales budget. It's about actions that you can take to ensure that you achieve, or exceed, your sales budget.)
Monday, February 9, 2015
It's about numbers
Selling is also about 'the numbers'. Because of this we need to track our match stats in the sales game - as a way of identifying what's working for us and what's not.
How do we do this?
By keeping track of our basic units of sales activity on a daily basis. This means counting things like the number of sales calls (phone and/or face-to-face) we make; the number of presentations we make and the number of sales we make (plus the sales revenue and contribution to profit that they generate).
(Depending on our industry and our sales processes we may need to count additional activity units.)
We can then use a spreadsheet to record our activity units and to calculate our personal KPIs.
This in turn makes it easier for us to spot opportunities for improvement. It also makes it easier to trouble-shoot if results start to fall away.
Remember the old saying 'If we keep the score the score gets better'.
(The up-coming post for Wednesday 11/2 is How to conduct performance reviews with sales staff. The title says it all.)
How do we do this?
By keeping track of our basic units of sales activity on a daily basis. This means counting things like the number of sales calls (phone and/or face-to-face) we make; the number of presentations we make and the number of sales we make (plus the sales revenue and contribution to profit that they generate).
(Depending on our industry and our sales processes we may need to count additional activity units.)
We can then use a spreadsheet to record our activity units and to calculate our personal KPIs.
This in turn makes it easier for us to spot opportunities for improvement. It also makes it easier to trouble-shoot if results start to fall away.
Remember the old saying 'If we keep the score the score gets better'.
(The up-coming post for Wednesday 11/2 is How to conduct performance reviews with sales staff. The title says it all.)
Friday, February 6, 2015
Sales time? Where did it go?
Many people in business wear more that one hat. This means that the person responsible for a business’s sales and marketing activities may have several other areas of responsibility in the business.
Therein lies a trap.
Many activities carried out in a business are reactive; they are done as the result of outside motivation. We answer the phone because its ringing motivates us to do so; we lodge our tax documents because the tax authorities motivate us to do so. Most sales and marketing activities require pro-activity; we must motivate ourselves to do them. They also have a gestation period. The gestation period is the time lapse between the carrying out of the activity and the time when most of the resultant sales (and dollars through the door) can be expected. The gestation period will vary between activities, between products and between businesses. This means, especially in small business sales and marketing, we need to be working ahead of the game all the time.
For example, if we are about to undertake a marketing activity that has a gestation period of 3 months we know that we can’t expect much sales revenue from that activity before the 3 months has passed. If we carry out the activity now we will probably achieve a better sales result in the next quarter (but that is not going to help with this quarter’s results). If we are ‘too busy’ to carry out the activity now it is likely that next quarter’s results will be disappointing.
What do we do? Do we respond to today’s demands (that is, continue to put out today’s bushfires) or do we become pro-active and set about influencing next quarter’s sales results. We all know that the key here is to achieve balance between the demands of today and the opportunity of the future – but it’s not easy to do this when we wear more that one hat.
Here are a couple of things you can do to help yourself.
Firstly, design your own Perfect (or Ideal) Week template. Take a blank piece of A4 and rule enough vertical lines to create a column for each day of your working week. Then rule 3 horizontal lines to create a number of timeslots (the number, obviously, being dependent on the number of working days in your working week).
On a separate sheet draw up a list of the various activities (pro-active and reactive) that need to be done in a typical week – be sure to include your sales and marketing activity.
Then, imagining that you have absolute control over your time, allocate the activities listed to the most appropriate timeslots. Make the allocation on the basis of your ‘best’ time for doing each activity. You now know what a Perfect Week looks like. The challenge is to, as much as you are able, use your time according to your Perfect Week template. “Too hard” you say? The fact is that most of us have more control over our time than we think we have – nevertheless we surrender that control to others and then complain about it.
Secondly, record and analyse your use of time. Create a simple Time Log containing categories that suit you and record how much time you spend on them. Be sure to include both reactive and pro-active activities in your categories. Some examples are - Business planning, Accounting, Administration, Travelling, Lead generation, Lead conversion (sales calls and visits), Marketing to existing customers. Record your time usage at least hourly as you work through the day.
Set up a spreadsheet and, at the end of each working week, enter the details of your time usage. Create some formulae in the spreadsheet to calculate the total time you spend on each activity, the percentage of working time spent on each activity and the percentage of working time spent on pro-active activities. In the beginning you may be dismayed by the low percentage of time you are spending on the pro-active. Over time however, by using your Perfect Week template as a support, you can work towards achieving a better balance.
In summary - we have all the time there is. Some use it better than others by focusing on ‘first things first’ – the trick is to choose the correct ‘first things’. If we get this choice right and focus on them until they are completed we can expect improved sales and improved profits.
(The up-coming post for Monday 9/2 is It's about numbers. It's a reminder about the value of sales activity statistics.)
Therein lies a trap.
Many activities carried out in a business are reactive; they are done as the result of outside motivation. We answer the phone because its ringing motivates us to do so; we lodge our tax documents because the tax authorities motivate us to do so. Most sales and marketing activities require pro-activity; we must motivate ourselves to do them. They also have a gestation period. The gestation period is the time lapse between the carrying out of the activity and the time when most of the resultant sales (and dollars through the door) can be expected. The gestation period will vary between activities, between products and between businesses. This means, especially in small business sales and marketing, we need to be working ahead of the game all the time.
For example, if we are about to undertake a marketing activity that has a gestation period of 3 months we know that we can’t expect much sales revenue from that activity before the 3 months has passed. If we carry out the activity now we will probably achieve a better sales result in the next quarter (but that is not going to help with this quarter’s results). If we are ‘too busy’ to carry out the activity now it is likely that next quarter’s results will be disappointing.
What do we do? Do we respond to today’s demands (that is, continue to put out today’s bushfires) or do we become pro-active and set about influencing next quarter’s sales results. We all know that the key here is to achieve balance between the demands of today and the opportunity of the future – but it’s not easy to do this when we wear more that one hat.
Here are a couple of things you can do to help yourself.
Firstly, design your own Perfect (or Ideal) Week template. Take a blank piece of A4 and rule enough vertical lines to create a column for each day of your working week. Then rule 3 horizontal lines to create a number of timeslots (the number, obviously, being dependent on the number of working days in your working week).
On a separate sheet draw up a list of the various activities (pro-active and reactive) that need to be done in a typical week – be sure to include your sales and marketing activity.
Then, imagining that you have absolute control over your time, allocate the activities listed to the most appropriate timeslots. Make the allocation on the basis of your ‘best’ time for doing each activity. You now know what a Perfect Week looks like. The challenge is to, as much as you are able, use your time according to your Perfect Week template. “Too hard” you say? The fact is that most of us have more control over our time than we think we have – nevertheless we surrender that control to others and then complain about it.
Secondly, record and analyse your use of time. Create a simple Time Log containing categories that suit you and record how much time you spend on them. Be sure to include both reactive and pro-active activities in your categories. Some examples are - Business planning, Accounting, Administration, Travelling, Lead generation, Lead conversion (sales calls and visits), Marketing to existing customers. Record your time usage at least hourly as you work through the day.
Set up a spreadsheet and, at the end of each working week, enter the details of your time usage. Create some formulae in the spreadsheet to calculate the total time you spend on each activity, the percentage of working time spent on each activity and the percentage of working time spent on pro-active activities. In the beginning you may be dismayed by the low percentage of time you are spending on the pro-active. Over time however, by using your Perfect Week template as a support, you can work towards achieving a better balance.
In summary - we have all the time there is. Some use it better than others by focusing on ‘first things first’ – the trick is to choose the correct ‘first things’. If we get this choice right and focus on them until they are completed we can expect improved sales and improved profits.
(The up-coming post for Monday 9/2 is It's about numbers. It's a reminder about the value of sales activity statistics.)
Wednesday, February 4, 2015
Keep the weeds out of your sales garden
This is about dealing with competitors who infiltrate your customer base
First categorise your customer base. Then, starting with your A class customers review each one and, using your knowledge of your customer, list those products that you could supply but that must be being supplied by a competitor. For example, if you supply restaurants with crockery, glassware and cutlery and one of your restaurant customers buys crockery and glassware from you but not cutlery you can assume that a competitor of yours is supplying the cutlery.
After doing this analysis of your A class customers select one item as the first item you are going to try to take away from your competitor (make sure that it’s a profitable one) and develop a strategy for doing so. This may involve asking your customer why he uses your competitor for cutlery. Do all you can to win the cutlery business and then select another item to focus on.
When using this approach focus on only one product per customer at a time; get an answer YES or NO and only then move on to another product or service.
Continue this approach with each of your A class customers (and then maybe some of the Bs who could be turned into As) - you may surprise yourself with the improvement in sales you can achieve without adding a single customer to your list.
(The up-coming post for Friday 6/2 is Sales time? Where did it go? It's about time management in selling.)
First categorise your customer base. Then, starting with your A class customers review each one and, using your knowledge of your customer, list those products that you could supply but that must be being supplied by a competitor. For example, if you supply restaurants with crockery, glassware and cutlery and one of your restaurant customers buys crockery and glassware from you but not cutlery you can assume that a competitor of yours is supplying the cutlery.
After doing this analysis of your A class customers select one item as the first item you are going to try to take away from your competitor (make sure that it’s a profitable one) and develop a strategy for doing so. This may involve asking your customer why he uses your competitor for cutlery. Do all you can to win the cutlery business and then select another item to focus on.
When using this approach focus on only one product per customer at a time; get an answer YES or NO and only then move on to another product or service.
Continue this approach with each of your A class customers (and then maybe some of the Bs who could be turned into As) - you may surprise yourself with the improvement in sales you can achieve without adding a single customer to your list.
(The up-coming post for Friday 6/2 is Sales time? Where did it go? It's about time management in selling.)
Monday, February 2, 2015
There are no magic words!
There is no abracadabra.
As far as I am aware there is no single magic word or phrase that will turn a sales disaster into a sales success.
Sales successes come as the result of sound technique and quality prospecting.
Conversely sales disasters result from poor technique (or total absence of it!) and/or poor quality prospecting.
So, if your sales results are less than you want them to be don't look for the abracadabra.
Review your prospecting practices - are you trying to get A class results from B class prospects? Then review your sales technique - is it based on a sound structure or do you fly by the seat of your pants?
(The up-coming post for Wednesday 4/2 is Keep the weeds out of your sales garden. It's about protecting your customer base from intruding competitors.)
As far as I am aware there is no single magic word or phrase that will turn a sales disaster into a sales success.
Sales successes come as the result of sound technique and quality prospecting.
Conversely sales disasters result from poor technique (or total absence of it!) and/or poor quality prospecting.
So, if your sales results are less than you want them to be don't look for the abracadabra.
Review your prospecting practices - are you trying to get A class results from B class prospects? Then review your sales technique - is it based on a sound structure or do you fly by the seat of your pants?
(The up-coming post for Wednesday 4/2 is Keep the weeds out of your sales garden. It's about protecting your customer base from intruding competitors.)
Friday, January 30, 2015
Nothing changes if nothing changes
So often I meet salespeople who, in conversation, indicate that they would like improve their sales results by closing more sales. When I discuss their practices and techniques and offer some simple suggestions for improvement they resist - not even prepared to put them to the test.
('I couldn't do that'; 'That's not me'; 'I do it my way' are responses I hear frequently.)
It's natural for us as human beings to resist change and stick to the comfortable but it holds us back.
In my opinion it is the # 1 impediment to improving sales results.
Be open to suggestions and be prepared to put them to the test. Not everything will work for everyone but you owe it to yourself (if no-one else) to give new/different techniques a genuine, enthusiastic try.
Let's face it, if we hadn't been prepared to try another way we would still be creating fire by rubbing two sticks together.
(The up-coming post for Monday 2/2 is There are no magic words! It's a reminder that there are no shortcuts to sales success.)
('I couldn't do that'; 'That's not me'; 'I do it my way' are responses I hear frequently.)
It's natural for us as human beings to resist change and stick to the comfortable but it holds us back.
In my opinion it is the # 1 impediment to improving sales results.
Be open to suggestions and be prepared to put them to the test. Not everything will work for everyone but you owe it to yourself (if no-one else) to give new/different techniques a genuine, enthusiastic try.
Let's face it, if we hadn't been prepared to try another way we would still be creating fire by rubbing two sticks together.
(The up-coming post for Monday 2/2 is There are no magic words! It's a reminder that there are no shortcuts to sales success.)
Wednesday, January 28, 2015
Four sales traps to avoid
The Sales Rep said to the Boss “Hey Boss, that sales idea you gave me last week worked a treat, can you give me another one”. The Boss thought for a second and replied “No, just keep on using the one I gave you”.
This wry anecdote illustrates just one of the traps salespeople can fall in to from time to time – in their eagerness to get to the next sale they make the mistake of seeking the new and exciting and not continuing to use already-known practices that work. They are lured away from the tried and true and, through carelessness, risk establishing poor practices rather than good ones.
Here are four examples of poor practices that can become established if salespeople become careless -
Failing to keep Activity records
Activity records are the Match Stats of the sales game. They must be maintained fastidiously; this means, as a minimum, counting the number of sales calls made (or received), the number of Sales Discussions held, the number of sales made, their value and their contribution to profit. This information needs to be recorded on a spreadsheet.
Only by doing this will you be able to easily and accurately calculate the key ratios within your sales process. This information is priceless when it comes to trouble-shooting in lean times or when planning for the future. You must have the means of calculating how much work needs to be done to achieve the goals you set for yourself and your business (or to get yourself out of trouble).
Failing to plan the next Action after every sales call
Too many sales opportunities slip through the cracks because of the lack of timely and appropriate follow-up. After each sales call two questions need to be asked in respect of the customer just spoken to. The first question is “What is the next step to be taken with that customer?” the second question is “When is the best time for that step to be taken?” The answers to these questions need to be recorded within your business’s CRM system in such a way that the customers requiring action on a particular day can be identified easily and, if necessary, a hard-copy list produced for sales action and supervision purposes. Your CRM software may need some tweaking to provide this.
Thinking that the key to the sale is in the Product (or Service) that you sell
The key to the sale is in the mind of the customer. Hopefully, a prospective customer has needs and wants that the benefits provided by your product (or service) can satisfy – if not, you don’t have a prospective customer at all. It is the salesperson’s job to get to understand the customer; the salesperson can do this only by asking relevant information-seeking questions in a conversational way. These information-seeking questions need to be structured so as to uncover the customer’s needs and wants. They also need to be well rehearsed so the salesperson doesn’t have to ‘wing it’ and can concentrate on understanding the customer's answers. When the customer’s needs and wants have been identified and understood by the salesperson it is much easier for an appropriate sale to be made in a professional manner.
Forgetting that customers are people first and customers second
We all prefer to do business with people we like. If we want people to like us we must be likeable. This means that, in your relationship with your customers, you must look for the person in the customer and deal with that person on a personal level. This is an attitude that must permeate your business from top to bottom. It requires speaking to customers by name, it means saying “Please” and “Thank You”, it means talking ‘with them’ not ‘at them’. This approach requires a little extra time and a little extra care but the rewards in the long run can be substantial. Remember - good people skills ‘cost’ a little more than poor ones but they make a lot more sales.
(The up-coming post for Friday 30/1 is Nothing changes if nothing changes. It's about the folly of expecting to achieve different results while continuing to do things in the same old way.)
This wry anecdote illustrates just one of the traps salespeople can fall in to from time to time – in their eagerness to get to the next sale they make the mistake of seeking the new and exciting and not continuing to use already-known practices that work. They are lured away from the tried and true and, through carelessness, risk establishing poor practices rather than good ones.
Here are four examples of poor practices that can become established if salespeople become careless -
Failing to keep Activity records
Activity records are the Match Stats of the sales game. They must be maintained fastidiously; this means, as a minimum, counting the number of sales calls made (or received), the number of Sales Discussions held, the number of sales made, their value and their contribution to profit. This information needs to be recorded on a spreadsheet.
Only by doing this will you be able to easily and accurately calculate the key ratios within your sales process. This information is priceless when it comes to trouble-shooting in lean times or when planning for the future. You must have the means of calculating how much work needs to be done to achieve the goals you set for yourself and your business (or to get yourself out of trouble).
Failing to plan the next Action after every sales call
Too many sales opportunities slip through the cracks because of the lack of timely and appropriate follow-up. After each sales call two questions need to be asked in respect of the customer just spoken to. The first question is “What is the next step to be taken with that customer?” the second question is “When is the best time for that step to be taken?” The answers to these questions need to be recorded within your business’s CRM system in such a way that the customers requiring action on a particular day can be identified easily and, if necessary, a hard-copy list produced for sales action and supervision purposes. Your CRM software may need some tweaking to provide this.
Thinking that the key to the sale is in the Product (or Service) that you sell
The key to the sale is in the mind of the customer. Hopefully, a prospective customer has needs and wants that the benefits provided by your product (or service) can satisfy – if not, you don’t have a prospective customer at all. It is the salesperson’s job to get to understand the customer; the salesperson can do this only by asking relevant information-seeking questions in a conversational way. These information-seeking questions need to be structured so as to uncover the customer’s needs and wants. They also need to be well rehearsed so the salesperson doesn’t have to ‘wing it’ and can concentrate on understanding the customer's answers. When the customer’s needs and wants have been identified and understood by the salesperson it is much easier for an appropriate sale to be made in a professional manner.
Forgetting that customers are people first and customers second
We all prefer to do business with people we like. If we want people to like us we must be likeable. This means that, in your relationship with your customers, you must look for the person in the customer and deal with that person on a personal level. This is an attitude that must permeate your business from top to bottom. It requires speaking to customers by name, it means saying “Please” and “Thank You”, it means talking ‘with them’ not ‘at them’. This approach requires a little extra time and a little extra care but the rewards in the long run can be substantial. Remember - good people skills ‘cost’ a little more than poor ones but they make a lot more sales.
(The up-coming post for Friday 30/1 is Nothing changes if nothing changes. It's about the folly of expecting to achieve different results while continuing to do things in the same old way.)
Monday, January 26, 2015
About WIIFM
WIIFM stands for What’s In It For Me? That’s another question all your customers will be asking when they are involved in a sales discussion with you. They may not utter the words but you can be certain that the question is in their minds. Be sure, therefore, that you answer the question - using their language and not yours.
If you do a good enough job of answering the WIIFM question they will buy from you - no question!
(The up-coming post for Wednesday 28/1 is Four sales traps to avoid. It's about four important points that some salespeople overlook - contributing to lost sales.)
If you do a good enough job of answering the WIIFM question they will buy from you - no question!
(The up-coming post for Wednesday 28/1 is Four sales traps to avoid. It's about four important points that some salespeople overlook - contributing to lost sales.)
Friday, January 23, 2015
Planning with FOCUS
Many business people who acknowledge the value of planning, especially sales and marketing planning, still don’t get around to doing the planning they know they should do. Among the many reasons for this are lack of know-how and concerns about the amount of time and/or money that may need to be invested.
Here is a simple five-step process that will help you focus on your sales and marketing planning for the up-coming quarter and get it under control. (The acronym FOCUS will help you keep things in order.)
Step 1 - Find out the facts. Take stock of your current situation. You need to look at the key 80/20 relationships in your business in respect of your sales staff, your customers, your suppliers, your sales volumes and each product’s contribution to profit. Your customers need to be categorised and you need to do a SWOT analysis of your sales and marketing function. Other questions that need to be answered include “What markets are being targeted?” “What results have emerged from previous sales promotion activities? eg telemarketing, face-to-face calls, your website, any directories you may use, newspaper advertising, direct mail campaigns, flyer campaigns etc”
The activities and strategies of your competitors need to be analysed. An audit of your staff’s sales skills and activity levels needs to be conducted.
In addition, your business’s Positive Points of Difference need to be confirmed.
Step 2 - Outline your sales and marketing goals. When doing this it may be helpful to think of your goals as forming a pyramid-shaped hierarchy. At the top is your Primary goal for next quarter (“If you could achieve only one goal what would that goal be?”). At the next level down are the second-level goals, the achievement of which will lead to the achievement of the Primary goal. At the next level again are the third-level goals the achievement of which will lead to the achievement of the second-level goals.
While doing this also ask the questions like “Do we need new products in our range? If so, which products?” “Do we need to move to new markets? If so, which markets?” “Do we need to develop new strategies?’
Put your goals in writing, be specific, use numbers and dates to make them measurable; make sure that they are stretching but realistic.
Step 3 - Choose your ‘ways and means’. Do some brainstorming and generate a list of all the potential ways and means available that may assist you to achieve your goals.
When the brainstorming is complete select the most promising ways and means and organise them into written Action Plans.
Don’t throw out your rejected ideas just yet; you may need to use them later if things don’t work out as planned.
Step 4 - Unify your team in support. Enlist the support of both your formal team and your informal team. The membership of your formal team is fairly obvious and comprises business partners, shareholders and your employees. Your informal team may include members of your family. It may also include your landlord, banker, accountant, business mentor and other professional advisers as well as key suppliers and customers.
Your objective is to share ownership of your plans in order to enlist the support of your key team members. Ask your team for their comments and give them a genuine opportunity to offer their ideas for improvement. Be sure to listen carefully to their suggestions and incorporate their good ideas, giving credit where credit is due.
Step 5 - Systemise and supervise; make sure that you and your people adopt the goals and plans that you have set and agreed – be absolutely systematic in your approach and be prepared to ‘inspect what you expect’ in order to achieve your goals.
As you do this your resolve to improve the results of your business may be tested. There are reasons for this. Sales and marketing is more art than science. Therefore, things do not always happen in a nice predictable way. As a result you must be prepared for some ‘trial and error’ learning. This means maintaining your commitment to success even if, initially, things do not work out as planned.
Remember also that human beings tend to resist change. This means that, because you are changing things, you can expect resistance. You may even feel some resistance within yourself. The remedy is patient, persistent, positive supervision of your team (and yourself). Hang in there! Eventually, good things will start to happen and the results you want will start to emerge.
When good things start to happen remember to give feedback to your team and celebrate your victories with them. They’ll be excited and want to continue with their support.
(The up-coming post for Monday 26/1 is About WIIFM. It's about a key question that customers want answered.)
Here is a simple five-step process that will help you focus on your sales and marketing planning for the up-coming quarter and get it under control. (The acronym FOCUS will help you keep things in order.)
Step 1 - Find out the facts. Take stock of your current situation. You need to look at the key 80/20 relationships in your business in respect of your sales staff, your customers, your suppliers, your sales volumes and each product’s contribution to profit. Your customers need to be categorised and you need to do a SWOT analysis of your sales and marketing function. Other questions that need to be answered include “What markets are being targeted?” “What results have emerged from previous sales promotion activities? eg telemarketing, face-to-face calls, your website, any directories you may use, newspaper advertising, direct mail campaigns, flyer campaigns etc”
The activities and strategies of your competitors need to be analysed. An audit of your staff’s sales skills and activity levels needs to be conducted.
In addition, your business’s Positive Points of Difference need to be confirmed.
Step 2 - Outline your sales and marketing goals. When doing this it may be helpful to think of your goals as forming a pyramid-shaped hierarchy. At the top is your Primary goal for next quarter (“If you could achieve only one goal what would that goal be?”). At the next level down are the second-level goals, the achievement of which will lead to the achievement of the Primary goal. At the next level again are the third-level goals the achievement of which will lead to the achievement of the second-level goals.
While doing this also ask the questions like “Do we need new products in our range? If so, which products?” “Do we need to move to new markets? If so, which markets?” “Do we need to develop new strategies?’
Put your goals in writing, be specific, use numbers and dates to make them measurable; make sure that they are stretching but realistic.
Step 3 - Choose your ‘ways and means’. Do some brainstorming and generate a list of all the potential ways and means available that may assist you to achieve your goals.
When the brainstorming is complete select the most promising ways and means and organise them into written Action Plans.
Don’t throw out your rejected ideas just yet; you may need to use them later if things don’t work out as planned.
Step 4 - Unify your team in support. Enlist the support of both your formal team and your informal team. The membership of your formal team is fairly obvious and comprises business partners, shareholders and your employees. Your informal team may include members of your family. It may also include your landlord, banker, accountant, business mentor and other professional advisers as well as key suppliers and customers.
Your objective is to share ownership of your plans in order to enlist the support of your key team members. Ask your team for their comments and give them a genuine opportunity to offer their ideas for improvement. Be sure to listen carefully to their suggestions and incorporate their good ideas, giving credit where credit is due.
Step 5 - Systemise and supervise; make sure that you and your people adopt the goals and plans that you have set and agreed – be absolutely systematic in your approach and be prepared to ‘inspect what you expect’ in order to achieve your goals.
As you do this your resolve to improve the results of your business may be tested. There are reasons for this. Sales and marketing is more art than science. Therefore, things do not always happen in a nice predictable way. As a result you must be prepared for some ‘trial and error’ learning. This means maintaining your commitment to success even if, initially, things do not work out as planned.
Remember also that human beings tend to resist change. This means that, because you are changing things, you can expect resistance. You may even feel some resistance within yourself. The remedy is patient, persistent, positive supervision of your team (and yourself). Hang in there! Eventually, good things will start to happen and the results you want will start to emerge.
When good things start to happen remember to give feedback to your team and celebrate your victories with them. They’ll be excited and want to continue with their support.
(The up-coming post for Monday 26/1 is About WIIFM. It's about a key question that customers want answered.)
Monday, January 19, 2015
The 80/20 rule and time
The 80/20 Rule applies in many areas of business and certainly in the area of time management for sales people.
Generally 20% of your time (let’s call it A class time) will lead you to 80% of your results. The other 80 % of your time (let’s call it B class time) will lead you to 20% of your results. Be sure therefore not to get your A class time mixed up with your B class time. Make sure that you spend your A class time on A class activities.
The best way to do this is to use some simple time management techniques like The Ideal Week, Daily To Do Lists and by learning to use a Diary properly.
(The up-coming post for Friday 23/1 is Planning with FOCUS. It's about a simple five-step process for more effective planning.)
Generally 20% of your time (let’s call it A class time) will lead you to 80% of your results. The other 80 % of your time (let’s call it B class time) will lead you to 20% of your results. Be sure therefore not to get your A class time mixed up with your B class time. Make sure that you spend your A class time on A class activities.
The best way to do this is to use some simple time management techniques like The Ideal Week, Daily To Do Lists and by learning to use a Diary properly.
(The up-coming post for Friday 23/1 is Planning with FOCUS. It's about a simple five-step process for more effective planning.)
Friday, January 16, 2015
It's about 'contribution to profit'
It is easy for business-owners, their managers and salespeople to be seduced by good-looking sales turnover figures.
It is possible to achieve high turnover figures and yet still return a less-than-satisfactory profit.
The way to avoid this trap is to focus on 'contribution to profit' as one of the critical KPIs in all areas of your business.
By doing this you may be able to identify products and/or suppliers who are loss-creators rather than profit-makers. You may also highlight marketing initiatives and programmes that are not paying their way. Then you can do something about them.
Remember, if a business is profitable it can do lots of good things; if a business is unprofitable it won't be around very long.
(The up-coming post for Monday 16/1 is The 80/20 rule and time. It's about getting best value from your A class time.)
It is possible to achieve high turnover figures and yet still return a less-than-satisfactory profit.
The way to avoid this trap is to focus on 'contribution to profit' as one of the critical KPIs in all areas of your business.
By doing this you may be able to identify products and/or suppliers who are loss-creators rather than profit-makers. You may also highlight marketing initiatives and programmes that are not paying their way. Then you can do something about them.
Remember, if a business is profitable it can do lots of good things; if a business is unprofitable it won't be around very long.
(The up-coming post for Monday 16/1 is The 80/20 rule and time. It's about getting best value from your A class time.)
Wednesday, January 14, 2015
Closing the sale
Sam was a wise and experienced salesperson who was often asked the question “What is the best way to close a sale?” Sam’s answer to this question was always “The best way to close a sale is to ‘open’ it properly first”.
This answer always led to a request for more information to which Sam would respond
“The main reason that salespeople have trouble closing is that they don’t lead up to it properly. Closing is simply the natural conclusion to a sales discussion - provided the discussion was opened properly and handled properly to its conclusion.
The best salespeople, when in a sales discussion, put themselves in a position where they can show their customer a relevant and acceptable product (or service). This may take a little extra time; however, it’s the secret to successful closing.
Here’s a four-step process that you may like to use to help you get your opening right and make closing easier. The first two steps, where the sale is opened, are called Engage and Ask; the final two steps are called Show and Encourage commitment. Let’s look at each step.
Step 1 - Engage
The purpose of this step is to create the opportunity for relaxed and clear communication. In some situations it may be helpful use a little small talk (mentioning referrer, mutual friend or mutual interest if you can) to help establish rapport.
It will be helpful to (i) establish the credibility of yourself and your company and (ii) maybe explain your agenda for the discussion and the amount of time the discussion is likely to take.
(From time to time you may feel a bit pressured yourself so make sure that you relax also.)
Step 2 – Ask
This step is critical. You must use it to ‘tune in’ to the customer’s needs and wants so that you can later show them a relevant and acceptable product.
Take the opportunity to discover more about your customer by asking them some well-planned questions. Let them tell you where they’re ‘coming from’ so you can identify the features of your product that will provide the most benefits to them. Use a ‘conversational questioning’ technique to keep the discussion going so you can learn about their current position/usage, their experiences (good and bad) with similar products and suppliers, what they want, what they don’t want, any ideas they have and so on.
If you haven’t done so already take the opportunity to qualify them as to budget, timeframe and to confirm the ‘decision-maker’.
During this step avoid using Yes/No questions; instead use Information-seeking questions. These are questions that start with the words what, when, where, who, how or why. Watch the customer’s eyes and body language; listen to the tone of their voice so you can tune in to their feelings as well as the facts.
Be sure to take the necessary time to plan and rehearse the key questions in this step.
Step 3 – Show
This is the presentation (or demonstration) step where you show your customer how your product can help them.
This can only be done if you have done a sound job of understanding your customer’s needs, wants, preferences and prejudices via the Ask step.
Go through your Show enthusiastically; tie your product’s features and benefits to the customer’s identified needs and wants.
Again, watch your customer’s eyes and body language; this time for ‘buying signals’. Be sure to use Trial Closes to confirm that you are on the right track.
Step 4 – Encourage commitment
The purpose of this step is to secure the order - it will be easier for both you and your customer if you have done your job properly.
To make your Final Close, use an alternative. However, to avoid procrastination, only ever give your customer a choice between two. A Final Close can be made by offering a choice of product, colour, payment options, delivery/start times, ‘lease or buy’, cash or credit etc.
Try to build your close around a small decision that your customer will need to make anyhow. ‘Would delivery this week suit you or would next week suit you better?’ is an example of a good closing question.
It’s now time to ‘shut up’ and listen to the answer. Remember that it’s still possible to talk yourself out of the sale by talking too much after the end of this step. You should be able to simply start the paperwork.”
(The up-coming post for Friday 16/1 is It's about contribution to profit. It's a short reminder of the importance of looking past sales turnover figures towards 'contribution to profit'.
This answer always led to a request for more information to which Sam would respond
“The main reason that salespeople have trouble closing is that they don’t lead up to it properly. Closing is simply the natural conclusion to a sales discussion - provided the discussion was opened properly and handled properly to its conclusion.
The best salespeople, when in a sales discussion, put themselves in a position where they can show their customer a relevant and acceptable product (or service). This may take a little extra time; however, it’s the secret to successful closing.
Here’s a four-step process that you may like to use to help you get your opening right and make closing easier. The first two steps, where the sale is opened, are called Engage and Ask; the final two steps are called Show and Encourage commitment. Let’s look at each step.
Step 1 - Engage
The purpose of this step is to create the opportunity for relaxed and clear communication. In some situations it may be helpful use a little small talk (mentioning referrer, mutual friend or mutual interest if you can) to help establish rapport.
It will be helpful to (i) establish the credibility of yourself and your company and (ii) maybe explain your agenda for the discussion and the amount of time the discussion is likely to take.
(From time to time you may feel a bit pressured yourself so make sure that you relax also.)
Step 2 – Ask
This step is critical. You must use it to ‘tune in’ to the customer’s needs and wants so that you can later show them a relevant and acceptable product.
Take the opportunity to discover more about your customer by asking them some well-planned questions. Let them tell you where they’re ‘coming from’ so you can identify the features of your product that will provide the most benefits to them. Use a ‘conversational questioning’ technique to keep the discussion going so you can learn about their current position/usage, their experiences (good and bad) with similar products and suppliers, what they want, what they don’t want, any ideas they have and so on.
If you haven’t done so already take the opportunity to qualify them as to budget, timeframe and to confirm the ‘decision-maker’.
During this step avoid using Yes/No questions; instead use Information-seeking questions. These are questions that start with the words what, when, where, who, how or why. Watch the customer’s eyes and body language; listen to the tone of their voice so you can tune in to their feelings as well as the facts.
Be sure to take the necessary time to plan and rehearse the key questions in this step.
Step 3 – Show
This is the presentation (or demonstration) step where you show your customer how your product can help them.
This can only be done if you have done a sound job of understanding your customer’s needs, wants, preferences and prejudices via the Ask step.
Go through your Show enthusiastically; tie your product’s features and benefits to the customer’s identified needs and wants.
Again, watch your customer’s eyes and body language; this time for ‘buying signals’. Be sure to use Trial Closes to confirm that you are on the right track.
Step 4 – Encourage commitment
The purpose of this step is to secure the order - it will be easier for both you and your customer if you have done your job properly.
To make your Final Close, use an alternative. However, to avoid procrastination, only ever give your customer a choice between two. A Final Close can be made by offering a choice of product, colour, payment options, delivery/start times, ‘lease or buy’, cash or credit etc.
Try to build your close around a small decision that your customer will need to make anyhow. ‘Would delivery this week suit you or would next week suit you better?’ is an example of a good closing question.
It’s now time to ‘shut up’ and listen to the answer. Remember that it’s still possible to talk yourself out of the sale by talking too much after the end of this step. You should be able to simply start the paperwork.”
(The up-coming post for Friday 16/1 is It's about contribution to profit. It's a short reminder of the importance of looking past sales turnover figures towards 'contribution to profit'.
Monday, January 12, 2015
Let your people shine
It's not always easy for a business to establish a Point of Difference.
To me this is especially so for businesses that sell much the same products as other businesses do, at much the same, or higher, prices.
Sometimes it's the people alone who can make the difference; remember that people like to do business with people like.
With that in mind hire the nicest people you can. Make sure that they have a customer focus, have good product knowledge and are well-presented. Let their 'nice-ness' shine through.
Prepare for an upsurge in return customers.
(The up-coming post for Wednesday 14/1 is Closing the sale. Its title says it all!)
To me this is especially so for businesses that sell much the same products as other businesses do, at much the same, or higher, prices.
Sometimes it's the people alone who can make the difference; remember that people like to do business with people like.
With that in mind hire the nicest people you can. Make sure that they have a customer focus, have good product knowledge and are well-presented. Let their 'nice-ness' shine through.
Prepare for an upsurge in return customers.
(The up-coming post for Wednesday 14/1 is Closing the sale. Its title says it all!)
Friday, January 9, 2015
Five days to a better sales quarter
If you are looking for improved sales results in your business during the next quarter now is the time to put in place some improvement strategies to help achieve the results you want.
Here are five things that you can do over the next five days to get some ideas.
Review your sales data from the last few quarters
Where did your sales come from? Where did your sales not come from? What products made the largest contribution to profit? What products were disappointments? How many sales leads did your business generate? What were the sources of these leads? How many of these leads turned into customers? What ‘conversion rate’ does this represent? As far as you know, why did the buyers buy? Why did the non-buyers not buy? Are you overly-dependent on one or two major customers (or suppliers) for your sales?
As you answer these questions (and others that come to mind as you go through the process) you will find information that confirms what you already ‘knew’ – you may also discover information that surprises you. Some of this information will please you; other information will disturb you.
Nevertheless, the question then becomes ‘What ideas does this information give me that I can use to try to get a better result in the up-coming quarter?’
Look at your Lead Generation systems
If a business is not generating enough of the right sort of sales leads it has a serious problem that, unless fixed, will lead to the death of the business.
Are you getting enough leads? Are the leads you are getting also the sorts of leads that you want? What Lead Generation strategies are working satisfactorily? What strategies are not working? What strategies have you wanted to try but not yet got around to?
The key to successful Lead Generation in any business is to find those elusive mixtures of Offer, presentation and media that work for that particular business. Diversification is important; it’s dangerous to rely on one strategy (or one market) because of the vulnerability that it creates.
Check on how your salespeople are structuring their sales discussions
Does your business have a preferred, or required, structure to be followed during sales discussions with prospective customers? Do your salespeople use it? Or are your salespeople allowed to ‘wing it’ and handle things any way they like?
What questions are your salespeople in the habit of asking to help them identify prospective customers’ needs, wants, interests and prejudices?
What questions are your salespeople in the habit of using to qualify prospective customers as to budget and time-frame?
If there is no preferred, or required, structure to the qualifying and discussion process maybe you should institute one – it will surely improve your conversion ratio.
Review your Customer Relations strategies
Maintaining an appropriate level of contact with your customers is a balancing act. It requires matching the importance of each customer, and their requirements, with the resources that you have available in your business. It stands to reason that your best, most profitable, customers should get most of your attention.
With this thought in mind, have you categorised your business’s customers into A’s, B’s or C’s (or something similar)? If so, how long is it since you reviewed each customer’s categorisation? Have you set a customer service and contact routine that reflects the importance of each customer category? Does your staff know who your VIP customers are and treat then accordingly?
Review the Time Management practices used in your business
The more time that is devoted to A-class sales and marketing activities, the better the sales result
you can expect. If you allow A-class sales time to be frittered away on B-class activities you can expect to under-perform in your sales results.
Good time management is not a skill that comes naturally to most people. However, there are four strategies that can lead to a marked improvement. They are; the adherence to an Ideal Week time-allocation format by each staff member, the effective use of Diaries, the use of To Do Lists, and the use of To Do Books.
The Ideal Week concept supports the allocation of A-class activities to the most appropriate time-slots in the working week. This allocation improves the chances that the A-class activities will be carried out with adequate time for their successful completion. B-class and C-class activities are allocated to non-prime-time slots. This means that they still get done (or at least most of them do) but that they aren’t allowed to interfere with the achievement of the A-class activities.
How long is it since you discussed Diary use with your sales staff? Do they all use the same system? Or do you allow them to do their own thing? How long is it since you discussed the use of To Do Lists and To Do Books with your sales staff? Should you set a minimum standard for the use of these time management tools so your people understand your expectations?
A final comment
Improved sales results over the next quarter are unlikely to come from a single stroke of luck or brilliance. It’s more likely that they will emerge from the synergy of a number of marginal improvements in key areas; one way to achieve these marginal improvements is by the systematic application of ideas developed through careful review.
(The up-coming post for Monday 12/1 is Let your people shine. It's a short reminder about how your people can make the difference.)
Here are five things that you can do over the next five days to get some ideas.
Review your sales data from the last few quarters
Where did your sales come from? Where did your sales not come from? What products made the largest contribution to profit? What products were disappointments? How many sales leads did your business generate? What were the sources of these leads? How many of these leads turned into customers? What ‘conversion rate’ does this represent? As far as you know, why did the buyers buy? Why did the non-buyers not buy? Are you overly-dependent on one or two major customers (or suppliers) for your sales?
As you answer these questions (and others that come to mind as you go through the process) you will find information that confirms what you already ‘knew’ – you may also discover information that surprises you. Some of this information will please you; other information will disturb you.
Nevertheless, the question then becomes ‘What ideas does this information give me that I can use to try to get a better result in the up-coming quarter?’
Look at your Lead Generation systems
If a business is not generating enough of the right sort of sales leads it has a serious problem that, unless fixed, will lead to the death of the business.
Are you getting enough leads? Are the leads you are getting also the sorts of leads that you want? What Lead Generation strategies are working satisfactorily? What strategies are not working? What strategies have you wanted to try but not yet got around to?
The key to successful Lead Generation in any business is to find those elusive mixtures of Offer, presentation and media that work for that particular business. Diversification is important; it’s dangerous to rely on one strategy (or one market) because of the vulnerability that it creates.
Check on how your salespeople are structuring their sales discussions
Does your business have a preferred, or required, structure to be followed during sales discussions with prospective customers? Do your salespeople use it? Or are your salespeople allowed to ‘wing it’ and handle things any way they like?
What questions are your salespeople in the habit of asking to help them identify prospective customers’ needs, wants, interests and prejudices?
What questions are your salespeople in the habit of using to qualify prospective customers as to budget and time-frame?
If there is no preferred, or required, structure to the qualifying and discussion process maybe you should institute one – it will surely improve your conversion ratio.
Review your Customer Relations strategies
Maintaining an appropriate level of contact with your customers is a balancing act. It requires matching the importance of each customer, and their requirements, with the resources that you have available in your business. It stands to reason that your best, most profitable, customers should get most of your attention.
With this thought in mind, have you categorised your business’s customers into A’s, B’s or C’s (or something similar)? If so, how long is it since you reviewed each customer’s categorisation? Have you set a customer service and contact routine that reflects the importance of each customer category? Does your staff know who your VIP customers are and treat then accordingly?
Review the Time Management practices used in your business
The more time that is devoted to A-class sales and marketing activities, the better the sales result
you can expect. If you allow A-class sales time to be frittered away on B-class activities you can expect to under-perform in your sales results.
Good time management is not a skill that comes naturally to most people. However, there are four strategies that can lead to a marked improvement. They are; the adherence to an Ideal Week time-allocation format by each staff member, the effective use of Diaries, the use of To Do Lists, and the use of To Do Books.
The Ideal Week concept supports the allocation of A-class activities to the most appropriate time-slots in the working week. This allocation improves the chances that the A-class activities will be carried out with adequate time for their successful completion. B-class and C-class activities are allocated to non-prime-time slots. This means that they still get done (or at least most of them do) but that they aren’t allowed to interfere with the achievement of the A-class activities.
How long is it since you discussed Diary use with your sales staff? Do they all use the same system? Or do you allow them to do their own thing? How long is it since you discussed the use of To Do Lists and To Do Books with your sales staff? Should you set a minimum standard for the use of these time management tools so your people understand your expectations?
A final comment
Improved sales results over the next quarter are unlikely to come from a single stroke of luck or brilliance. It’s more likely that they will emerge from the synergy of a number of marginal improvements in key areas; one way to achieve these marginal improvements is by the systematic application of ideas developed through careful review.
(The up-coming post for Monday 12/1 is Let your people shine. It's a short reminder about how your people can make the difference.)
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