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.)
Friday, February 27, 2015
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.)
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