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Closing the Sale – Part 1
Closing the sale has always been a mysterious topic to those new to selling, and is, therefore, a frequently discussed topic in sales-related training environments. A variety of techniques are normally taught, and these concepts are necessary and useful to all of us, regardless of tenure, as they help to keep us focused on our ultimate goal of getting the business. In practice, however, most seasoned sales professionals will confess that the most effective closing techniques aren’t of any specific type, and that they know of no magic words with which they can close business at will. Their approach, instead, is to allow the customer to buy in a more natural way that is part of the entire selling process. Here are a few ideas (secrets?) on how to “naturally” close the sale:
Of course, there’s no such thing as a foolproof plan, so more ideas on closing the sale will follow in our next issue, which will include “Secrets of Closing the Sale - Part II."
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Closing Vs. Trial Closing
Closing the sale is a skill we're asked about frequently - and one surrounded by a great deal of mystery. One area of confusion that can, when demystified, result in a healthy increase in closing rates, is the difference between "closing" and "trial closing." Closing is the act of seeking a decision, usually through the use of a direct question. "Can we move forward?" "Would you like to place an order today?" Trial closing, on the other hand, is not about directly seeking a decision, but is a method of seeking an opinion - in other words, a way of testing receptivity. "Does that sound good to you?" "What do you think so far?" Trial closing is an extremely important (and often omitted) component of the selling process, because it gives the seller some insight into the relative interest level of the prospective buyer before closing questions are asked. When a seller receives positive, enthusiastic responses to a few trial closing questions, then he or she knows the buyer sees value in the offer or proposal and will be inclined to move forward with the sale. This is the time to close. Conversely, if trial closing questions are answered negatively or with little or no enthusiasm, then the prudent seller knows that something has gone off-track; needs were not properly assessed, some form of miscommunication has taken place, etc. In this latter instance, the best track is to go back to assessing and clarifying needs, interests and priorities, and then testing the waters again with additional trial closing questions. It's important to realize that the selling process is seldom thrown completely off-track when trial closing questions yield negative responses. In fact, the negative responses give the seller an opportunity to correct errors that were obviously made during earlier steps, and increases closing rates in the end.
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Remind Me...
How often must we remind our customers of the value we bring to the table? Is a once-per-year reminder sufficient? How about twice per year? Three times? Most people agree that, ideally, they'd like to "remind" their customers many more times each year; in fact, they say they'd like to keep a reminder of some sort in front of their customers as frequently as possible. This leads us to a couple of critical questions:
How Often is too Often...?
So, how often is too often? Generally speaking, sales calls and marketing messages become "over-done" when they fail to provide value to the customer or prospect. This leads nicely to our second question how will we accomplish this value-added approach? How Should We Do It?
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Glue...
Selling is a process, not a one-time event, and it is best to adopt the proper long-term perspective if we'd like to achieve long-term success. Using the circular visual below as a guide, there are two important yet often over-looked fundamentals to consider:
Once we adopt the proper long-term view, the means by which we will move from step to step is follow-up. In fact, we often refer to effective follow-up as the "glue" that keeps the process together and moving forward. If we follow-up diligently, on a value-added basis and with the right frequency, we'll be able to keep the process (and the customer) moving toward our ultimate goal. But be advised! If we move too slowly, we run the risk of losing-out to a competitor or to shifting priorities; if we move too quickly, or skip steps, we're likely to alienate or lose the customer. Therefore it is imperative that we maintain a keen awareness of the process steps, establish goals for each and master the art of follow-up. You can review a detailed summary of the activities and goals associated with each step on our website.
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Time to Sell!
A mid-sized New England company that considered itself highly sales-driven recently discovered their sales people spent less than three-hours per day interacting with customers or prospects. They also discovered that nearly 25% of the average sales representative's time was spent on company-required paper work. While this might seem surprising, research indicates that these results are typical across all industry lines. For example, statistics presented in The New Rules of Sales Enablement, by Jeff Ernst,indicate that 65% of the average sales rep's time is spent not selling. Similarly, process improvement experts have compiled data showing the largest waste in most commercial and industrial organizations is lost gross margin that results from sales not made, sub-optimal pricing and excessive costs in and effecting the sales and marketing process. Clearly, as business owners or sales managers, one thing we can all do to boost profits, productivity as well as longevity in our sales ranks is to get our sales people working on the right things. This will require some effort and research, as we must first study the work being done to determine where, in fact, their time is being spent. We cannot improve the process based on assumptions. Likely next steps might include:
Selling is tough enough, even in a good economy. It can only become more difficult if we fail to keep the sales force "selling." Maybe author Jack Falvey summed it up nicely when he said, "Want more sales? Make more calls!"
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Closing The Sale: Location, Location, Location!
When it comes to closing the sale, the timing or location of the close within the selling process is just as important as “location” is to the value of real estate. First, consider the impact of a premature close – that is, a situation in which the sales person asks for the order too early in the selling process. A stereotypical example might be when a customer enters a retail showroom, stops to look at a specific item and is immediately approached by a sales person who asks, “Are you interested in placing an order for one of these [item name] today?” Research indicates that buyers most often feel pressured or insulted when this occurs, as the implied message is that the seller simply wants the order for selfish reasons, and is not appropriately taking the buyer’s needs or priorities into consideration. Further, it is unlikely that the buyer has been presented with a sufficient amount of information or had ample time to make a prudent evaluation. Next, consider the danger of closing too late or, as happens in nearly half of all selling situations, not at all. A multi-year study of the impact in this instance yielded equally negative results, as when the “close” comes too late prospects or customers tend to sense that something is wrong or that the sales person is reluctant to ask what should be a simple and logical question. Many conclude that the seller’s organization is, after all, not able to meet their needs or, even worse, not really interested in their business! The “close” or a call to action (i.e., request for a logical next step) should be a natural component of every selling conversation. Ideally, the call-to-action should take place after a seller has formed an appropriate relationship with the buyer, qualified the situation, asked probing questions to identify and confirm needs, presented a solution and tested that solution via trial closing. It is at this point that the seller has “earned the right” to ask for the order or a next step, and that the buyer is likely to feel most comfortable. Put another way, the selling process is very much like a recipe. To successfully execute the process, a sales professional must include the proper “ingredients” (i.e., rapport-building, qualification, needs assessment, etc.), not only in the right quantity but also at the right time!
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Money, Ego & Fear
Most sales managers agree that motivating the sales team is an important part of their job. Naturally, there are a number of ways in which people might go about this task. Money, ego and fear are considered the primary motivational tools... except for a certain percentage of sales managers who believe it's up to the sales people to motivate themselves! For the rest of us, what might be the best choice? While most agree the most effective approach involves a “healthy” combination of all three methods, the mix will vary depending upon your personal leadership skills, situation and team composition. Here are a few guidelines: Money – An Extrinsic Reward
For example, as referenced by Richard Bakosh of Accenture, “financial compensation is analogous to the lowest tier of needs in Maslow's hierarchy; it is basic and important, but it touches upon only one dimension of motivation, and a comparatively low-level one at that.” Similarly, in a recent newsletter, Conway Management Company points out that the traditional “carrot & stick” approach to motivation – if you do X, then you will get a bonus/commission/spiff (carrot) or, you will get to keep your job (stick) – is not a long-term solution. In fact, studies show that the impact of such extrinsic rewards wears off over time and, sooner or later, the rewards become expected! At that point the rewards no longer motivate, but their absence de-motivates! Even discretionary rewards or bonuses can backfire. Bakosh cited examples of how inconsistencies or “black box” components of compensation plans served as de-motivators. When sales people became unsure about the criteria associated with their bonus or commission plan, or about how to interpret formulas or components of these plans, they quickly lost trust in both the company and their managers. Ego – Belief in a Job Well-done
Two such areas are the need to belong and feel a part of a group, and the need to be held in esteem and receive recognition. It is important to recognize that, while the esteem associated with recognition by management is an important motivational factor, the recognition from a peer group is also critical to motivating the sales force. Sales managers can make good use of these motivational tools by publicly recognizing achievement or desired behaviors during sales meetings or team conference calls. This presupposes, of course, that team meetings are a regular component of the sales management system (see related article). At the top of Maslow’s list we have "self-actualization," something he often called a "growth need"—“striving to live up to one's potential,” Barkosh explains. His research revealed two key principles associated with this need:
This might indicate that “one’s potential” needs to be a moving target, and that sales managers are better off focusing on promoting success as opposed to carrots and sticks. Author Jeff Ernst refers to this concept as The New Rules of Sales Enablement, a theory that is based on enabling sales professionals to maintain high levels of motivation by providing the necessary infrastructure and an environment in which they can succeed. His perspective is consistent with Barkosh’s, which revealed that sales enablement tools Along the same lines, it is equally as important for sales managers to promote a belief among sales people that the job can, in fact, be done and that they are capable of doing it and doing it well. Possibly Zig Ziglar summarized this concept best when he said, “A lot of people have gone further than they thought they could because someone else thought they could." Fear While the “stick” has proven to be among the least-effective motivational tools, and one that often retains “C players” and repels “A players,” fear of loss can be a strong motivator. This fear is not associated with a form of punishment or ridicule, but is typically associated with “not” achieving a desired level of success. Examples might include the fear of “not” making President’s Club, the fear of losing a customer or the fear of losing the respect of one’s peers or management. In summary, the research referenced above is consistent with our observations over the past decade. The best motivators are those who recognize financial incentives alone cannot inspire positive attitudes or bring about the behaviors necessary to achieve sustainable growth and staff loyalty; those who are able to incorporate trust, self-esteem, social recognition, strategic communication and enablement into their motivational strategy. And for those who don’t believe in the importance or effectiveness of motivation, we’ll refer once again to a well known Zig Ziglar sound bite, “'People often say that motivation doesn't last. Well, neither does bathing--that's why we recommend it daily!”
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Pavement...
As each new year arrives ‘tis the season for, among other things, New Year’s resolutions. In the business world, many of us will resolve to pursue revenue growth in one way or another, and our hearts will tell us that this year we’ll succeed; our intentions will be good! However, it is commonly said that the road to “you know where” is paved with these good intentions! And as the adage suggests, many of January’s goals will sadly join the ranks of the unachieved, falling prey to the countless emergencies and new priorities that will most assuredly present themselves in the ensuing months. If you’d like to take measures to avoid this oh-so-typical situation – that is, to avoid sacrificing the important in favor of the urgent, here are five ideas for keeping this year’s resolutions alive and well:
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Selling Change!
It’s all new… the latest version! New and improved, updated; enhanced formula, just released! Hot off the press, the newest style! Less fat, more protein, superior quality, finer taste; easier to use, better, more comfortable, lower price...
At one time or another all of these phrases have been used to sell products or services, and they all promote the same thing – change. The marketplace must like change or marketers wouldn’t flaunt it; change, therefore, must be good.
What’s Good Can Be Bad – “If it ain’t broke…”
But of course change is not always perceived as being good. In their daily quest for new customers, sales people constantly struggle to overcome buyers’ comfort with the status-quo. In organizations of all types people tend to look with skepticism at new policies and procedures, and look with deep concern at new compensation plans or updated benefits programs; and people at all levels regularly cringe at the suggestion that there might be a different or better way to do their jobs! In the day-to-day real world, change most often promotes uncertainty, doubt, fear, resentment or loss, and this is not news. The concept of “creative destruction” — an economic theory based on the premise that new ideas inevitably bring about the demise of older (more comfortable) ones — was popularized way back in the early nineteen hundreds by Austrian economist Joseph Schumpeter.
Yet without change comes stagnation and potential loss. Current-day examples include Xerox in copiers or Polaroid in instant photography, each experiencing significant declines in market share and profits as competitors introduced new and improved, lower-cost alternatives.
The cassette tape replaced the eight-track, but was then outdone by the compact disc, which is now being undercut by MP3 players; and the list can go on.
Closer to Home – A Selling Mission
If we’re to learn from these examples, then we must accept the fact that change — either in the form of innovation, continuous improvement or both — is a critical component of growth and ongoing success. Without innovation and change we run the risk of losing our competitive position, or worse. “Whatever made you successful in the past won’t in the future,” said the late Hewlett Packard CEO Lew Platt. But if people tend to resist change as previously noted, how might managers or business owners best go about getting the team to accept it — to buy in? How can we help people more readily embrace improvement programs, try new protocols, accept new pricing models or generally believe in the up-side of change?
Simply stated, we must sell it.
Just like the sales and marketing experts who create the “new and improved” ad copy, slogans and selling presentations, we must sell the concept of change to our staff members and sales teams before trying to present or roll-out new policies, procedures, campaigns, programs or plans.
And just like any sales mission, this will require forethought and planning.
We might start by identifying how the team will benefit from a proposed change. What’s in it for them? What are the consequences of not changing? What will it cost? What opportunities might we lose?
What’s the competition doing?
The next step is to determine how to properly position a proposed change. Since we know there is a tendency toward defensiveness, it’s important to make people understand that they are not the problem. In other words, a change in policy or approach need not mean that the team has been doing things the wrong way. Rather, it means the world is changing and we must change too, lest we fall behind.
Finally, once the presentation is made and the new “whatever” is launched, there must be follow-up and assessment. Has everything worked as we’d hoped? Should we modify the new plan? Are there unforeseen consequences? While we don’t want to send a message indicating we’re not resolved to the new program or approach, it is also a good idea to let everyone know we’re fair and open-minded — that at the end of the day we’re all on the same side.
Change may be unsettling, but without it our futures are at risk; and there are clearly ways to minimize the negative effects. It will require effort, planning and persistence, as behaviors and attitudes are not easily influenced.
Margaret Thatcher may have summed it up best when saying, “You may have to fight a battle more than once to win it!”
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Closing the Sale – Part 2
Closing has always been a mysterious topic for those new to selling. And, regardless of tenure or experience, ideas promoting a strong focus on the goal of making the sale are worth reviewing – after all, every process can be improved! In our last issue, we presented the concept of allowing prospects and customers to buy in a natural way, and discussed the importance of asking the right questions, careful listening, delivering tailored selling presentations, and good timing. Here are a few more ideas on how to “naturally” close the sale: Assume the close. A short discussion with an experienced, successful colleague will likely reveal the fact that the most successful sales reps honestly expect customers and prospects to buy. If we are diligent in our questioning and listening techniques and, consequently, offer customers and prospects true solutions to their needs (needs that are both expressed and “identified”), then it is fair and reasonable that we should expect them to buy. If we approach people with this attitude we’re likely to be perceived as confident, knowledgeable, and deserving. Many buyers will opt for the sales person whose tone, demeanor, and attitude all say, “I’m sure that when you weigh all the facts, you’ll agree we’re offering the best solution – most everyone else thinks so too!” Look for the “No!” A common phrase in the selling world, looking for the “No!”, simply means that we should ask all pertinent questions, listen to the customers’ or prospects’ responses, and continue doing so until we’ve exhausted all potential objections. Some successful sales pros have even been known to ask questions such as, “What might cause you to choose a solution other than ours?” If we get an honest answer to that question, we can then address the given reason (objection) and then close the sale. If at this point we are not successful, we can ask clarifying questions, establish more value, and try again. Be direct – ask! A thirty-year old sales training film that is still used today features a distraught young woman who, when speaking of the boyfriend she has just broken-up with says, “He talked of a life in which I’d be his wife, but… he never came right out and asked me! And now it’s too late, no longer could I wait, I wish he had simply just asked me!” Buyers sometimes become wary of sales people who beat-around-the-bush when asking for orders. Some buyers even become suspicious, as a sales person’s indirect attempt at closing can be misconstrued as a lack of confidence in the product or service being offered. Knowing when to be quiet is also important. Once we have directly asked for an order, it is essential that we quietly await an official response. After asking for an order, the rule of thumb has always been, “The first one to speak owns it!” In theory, once we deliver a solid selling presentation in which appropriate features, advantages, and benefits have all been highlighted, there really isn’t anything left to say! We’re better off asking for the order and, for the moment, leaving the decision in the hands of the customer or prospect. Only after a “no” response is given should we once again resume the selling process. As noted in “Part I” of this article, there’s no such thing as a foolproof plan, so keep on trying – practice does make a difference, and through practice we all improve!
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The Benefit of Hope
Can you find a way to sell the benefit of hope? The practice might very well provide you with a significant advantage, especially in today's tough economy.
You may be familiar with the axiom, "Features tell,
but benefits sell." If so, then you know it simply means that, when involved in
selling, we should avoid the trap of talking about or promoting "features" in
favor of identifying and promoting the So, you may be wondering, how does the benefit of "hope" fit into the picture? Like many things in life, this concept is simple but not easy.
The key is to learn enough about our audience
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their challenges and goals
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so that we can identify what might provide
them with hope. This is not easy work. It requires effective probing and (of all
things!) listening skills, and it requires the use of both common sense
and imagination. But we must determine how our product or service can help them
improve their overall position going forward. We must figure out how to help
them become hopeful going forward into what, by all expectations, will be a
difficult economic year. And then we must share the hope and good news in
For example, if you sell consulting services, how
will your customers benefit from those services? Are they hoping to reduce head
count, hiring or training costs? Are they looking for ways to save time? Can
your consulting services help? If so, how
If you sell technology or office equipment, how
might your customers benefit? Are they working to enhance productivity or lower
operating costs? If so, how can In other words, instead of worrying about reduced budgets, lower spending limits or total cutbacks, the mission is to work harder at identifying and presenting the most relevant solutions − solutions that will give your customers hope in their ability to achieve their objectives or deal with their challenges.
Closer to Home If the economy is, at least to some degree, a function of consumer confidence and attitude, then let's become the catalysts for a more hopeful perspective.
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Keep Marketing Marching On By Peter Gagnon At the moment, Federal Reserve Chairman Alan Greenspan is telling us that the economy is sending mixed messages. We keep hearing about ideas to ‘stimulate,’ ‘jump-start’ or drive the economy on to better times. Will we ever get it to turn that proverbial corner? Regardless of when better times hit, it is important to keep marketing efforts on the move so that your customers are consistently aware of your presence. While your marketing efforts might need to become more focused or a bit more tactical, it is essential to keep delivering your message in a professional and meaningful way during tough economic times. It is also important to concentrate on market share when everyone seems to be focused on market conditions. If others are curbing marketing activities and becoming less visible, there’s an opportunity for those who continue to entice new customers. At times when consumers want to feel the most comfortable with whom they do business, are they likely to choose the providers who are not advertising? Don’t think of these as leaner times, but think of them as times when consumers are looking closer before buying; times when buyers are not as willing to make spur of the moment purchases. And if they do, in fact, want to take a closer look at those from whom they may buy, sellers who are not currently advertising are at a disadvantage. As noted in a recent Boston Globe article, “...the US economy should finally emerge from its prolonged 'soft patch' and begin growing at a faster clip, a panel of prominent economic forecasters predicts, but not until the second half of this year.” It may not be that long until the economy finally picks up the pace to healthier times. In the meantime, there is an opportunity for those who keep their marketing efforts on the march to let consumers know they have quality products and services that are worth a look in both good times and in bad. Peter Gagnon is a Paul Charles Associate. He can be reached through our office.
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Marketing Magic
Many business owners and managers wonder about the role their marketing effort should, or could, play, especially during slower economic times. Since qualified buyers are not a given, we must consistently seek out, attract, acquire, and retain customers if we are to keep our businesses thriving - even when the economy isn’t cooperating. If you’re wondering how this might best be accomplished, the simple answer is marketing. Marketing is the process for planning, as well as executing, the pricing, promotion, and distribution (selling) of goods and services – it is the process for generating demand. And it is a business function that has, over the past fifty years, become an area of increased focus for companies of all sizes. To establish a simple starting point on how to best focus your marketing effort, you might consider the following steps from the American Marketing Association: Identify and research your market. You must understand how customers and prospects relate to your products and services – you must know what they want, when they want it, how it fits into their lives, what satisfies them, and what frustrates them. Develop a marketing strategy – the best ways of approaching the right segments of your market, given your current business position and goals. Build a marketing plan – set straightforward objectives that are consistent with your overall strategy, using tools such as direct mail, advertising, promotion, etc. Implement – stick to your plan and coordinate your group’s selling strategies and activities. Monitor the success of the plan – we all learn from past success or failure. Though this five-step process may appear straightforward, many companies demonstrate confusion when attempting to carry it out. Success will be yours, however, if you can offer products and services that match consumers' needs, wants, and desires, and if you find an effective way (marketing plan) to get the message out.
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Long War - Sell Value By Laurence Sanford Life is a long war, make sure you survive. Business is a long war, make sure you survive. Professor Hickey, who taught my sophomore Business Law class at Boston College, constantly used the expression "life is a long war and the main priority is to survive." The same is true in sales or a business life - make sure you survive. And the key to selling and surviving is effective pricing and the perception of value. If the overall pricing is not high enough to cover costs, business can not survive. But the perception of value for your product or service determines the pricing. If viewed as a commodity, then pricing is very constricted. A paper clip is a commodity item in the office; in prison the same paper clip could be worth a fortune if it assists in picking a lock to escape. In the office product business, paper clips and another dozen or so items are often sold below cost in order to promote the perception that, since your company offers the lowest price on these items, your company is the low-cost supplier on the other 26,000 items in the catalog. Supermarkets also use the loss leader concept of selling by advertising special items at low prices to lure customers into the store. In this model, perception is more important than cost. Obviously you can not survive if you sell loss leaders and not enough profitable products. The trick is to provide the perception of low prices and the reality of charging higher prices on other products. But you need customers and you need to continually add new customers. Pricing and the perception of value is what keeps old customers and recruits new customers. If your product is not perceived as a commodity, then pricing is much more flexible. But even the most common commodity, if perceived as being of value, can be sold at a high price. The “Pet Rock” is a classic example. Our job is to get past the price of paper clips and create the perception of value. We all would love to find customers who have little or no spending restraints. A Tyco $5000 umbrella stand comes to mind, as does a government project such as the $2 billion Big Dig escalating to $16 billion – but that is a future issue. The sales organization’s job is to keep and find customers by projecting the perception of value to maximize pricing to maximize profits so your company will survive. And while they are at it, they should try to find customers where there are little or no spending restraints too! Laurence Sanford is a Paul Charles Associate. He can be reached through our office.
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Rate the Value of Your Presentations What should your company’s typical sales presentation include? Obviously product and service information along with pricing and delivery details must be a part of every presentation. So too must visual aids - brochures, charts, pamphlets, overheads, videos, specifications, etc. - any material necessary to inform and educate your prospects. And every presentation must be interesting if it is to be effective. You have more than likely read and studied various texts and sales manuals describing the how-tos, dos & don’ts, and structural concepts that relate to good selling presentations. And good form is certainly important. But what about the company message? Does your sales team convey the big picture? Are your prospects and customers hearing what your company is really all about? Does your sales team truly know what your company is all about? In many cases it is difficult to impart the necessary quantity of information to prospects. Some are too busy, others disinterested, and there are those who just "don’t want to hear it" because they are inclined to buy elsewhere or because they are under the impression that they are already well enough informed. So as we vie for their time and attention, most often taking what we can get, what portion or portions of our full presentation do we present and what portions do we leave out? Unfortunately, product descriptions are usually left in and the big picture message often gets left out. And the "big picture" company message is the most important part of a winning sales presentation! Making prospects aware of company business philosophies, satisfaction guarantees, problem solving and support capabilities, and customer care programs is what will best distinguish you from your competitors. If a prospect is impressed with this portion of a sales presentation, the odds are that he or she will make time to hear the rest of the details.
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Business Meetings that Work In their book "How to Communicate," Patrick Flanning, Matthew McKay, Ph.D., and Martha Davis, Ph.D. discuss group meetings and the dynamics of communication. They define a business meeting as being a task-oriented group activity where group problems take precedence over individual needs. A review of www.bestmind.com will reveal that "the best meetings are the ones where attention is paid to content, design, and process." We are also reminded that meetings are not destinations, but rather vehicles for reaching strategic objectives. So what are the best ways to make sure that our business meetings are properly structured and effective?
The four key elements involved are:
Design is a function of purpose, and involves participant selection, location, and scheduling. Before designing a meeting, it is important to define its purpose and goals. Only those who are crucial to goal achievement should be invited, as every meeting has an impact on the normal day-to-day responsibilities of the attendees. In addition to participant selection, designers sometimes select others to act as meeting or group leaders. While site decisions are normally straight-forward, scheduling often is not. If, for example, the purpose of a meeting is to solve a critical problem, then the meeting is likely to take priority over other scheduled events. This type of meeting is generally attended by senior/upper managers, and lasts for "as long as it takes." Training meetings, on the other hand, can be scheduled around busy times of day or year. Location, participant selection, the frequency of sessions, and the time allotted to each session can all be determined based upon the nature of the training, the group size, average tenure, or job performance. Once design decisions are made, planning is the next step. Though vital, the need for planning is often overlooked, and poor planning is the most common cause of unproductive meetings. Ideally, planning is done by both the meeting leader and the participants. The planning process, however, begins with the leader, who must conduct appropriate research so as to be capable of effectively organizing an agenda and leading the group. Once created, the agenda should be distributed to participants - preferably three days prior to the meeting - and the leader should encourage the group to not only become familiar with the agenda but also to prepare themselves for a meaningful discussion of the issues therein. As part of the planning process, meeting leaders should also compile handout/visual-aid materials, practice delivery, anticipate group reaction, and plan for group interaction. When necessary, the most effective meeting leaders also familiarize themselves with the room and with any props that will be used during the meeting, such as a microphone, projector, or computer system. It is also the leader’s responsibility to verify the availability of such props. Process involves starting and ending the meeting on time, establishing a decorum, presenting content, coming to a consensus, and setting a follow-up course of action. The best meetings are brought to order with a restatement of purpose and an explanation of the "rules," such as structure, the scheduling of breaks, who will have the floor, how questions will be addressed, and how long the meeting will last. It is then the leader’s responsibility to keep the discussion on-subject and focused on pre-defined group goals. Involving individual participants in the discussion might generate better ideas and can help to keep everyone interested, but can also compromise order. It is important for the leader to maintain control, to draw conclusions from the dialogue, and to identify the next step(s) in the process. Just as lack of preparation often results in poor meetings, poor follow-through is the most common cause of failure to accomplish anything after-the-fact. It is the leader’s responsibility to identify and/or assign follow-through steps and to monitor follow-through activities. If required, a follow-up meeting should be scheduled prior to adjournment. To be sure that all participants are on the same page, the astute leader will allow time for questions, and will end a meeting by summarizing both the discussion and the conclusions that were drawn, along with all agreed-upon next steps.
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Selling in a Slower Economy Economic shifts and the associated changes in buying attitudes demand reactionary modifications of selling activities. In slower economic times, people become more cautious. Not only are "buyers" harder to find, but they also take longer to buy and tend to buy form the safest sources - a-la "No one ever got fired for buying an IBM!" To keep your slice of the suddenly "smaller pie," be ready to adapt your team’s sales habits: Back to basics! When things get tough in sales, the "tough" get back to basics - back to making more calls; back to following-through and following-up on everything; back to the daily checklist and meticulous record-keeping; back to consistent prospecting and to using sales automation tools; back to visiting more customers, and back to providing a little "extra service." Before long, you'll be back on track! Looking for sales orders in more places will likely yield more of them. A regular dialog with co-workers such as installers, technicians, and the administrative staff is a start, as in many cases they can provide "inside" information about your customers. Networking with industry-related contacts to exchange strategies is another good idea. Useful data can also be found in local or regional newspapers and trade journals. Browsing one at lunch each day might well provide a couple of leads worthy of pursuit each afternoon. Regularly seeking out networking opportunities at association meetings, chamber of commerce events, or trade shows is another key activity that often gets underused. It's not always comfortable approaching people at these gatherings, but consider that many of them are there for the same purpose! In addition, making a habit out of asking customers and prospects for referrals is a good practice that makes even more sense during times when orders aren't as plentiful. Keeping the ball in your court makes it easier for you to set the pace of business. Being prepared with a few polite but effective phrases is often the key to keeping control and to arranging a timely next step. "I'm traveling (or) in meetings, so I'll call you back. When's a good time to try?" "Is it all right if I stop by with the pricing? I could leave it at the front desk, or maybe you'd like me to identify a few key points while I'm there." "I know you're busy, so let me take the initiative… can we get together again on the fifteenth?" Working on the right things might seem obvious, but brainstorming with managers/peers increases efficiency by shedding light on the right people to call, the best approaches to take, and the most appropriate benefits to stress. Regular meetings keep everyone focused on the right things. Diligent Follow-up. National Sales Executive Association stats regarding the importance of following up: 2% of sales are made on the 1st contact The sales process works best when a number of different things go right. The more things we try, the better our chances of success - especially if the market isn't cooperating.
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What Are You (Really) Selling? It is every sales person’s job to distinguish his or her products and services from those offered by the competition. And in a business world crowded with competitive offerings, an attempt to accomplish this by selling features and price most often fails. BMW makes cars, but they talk about (sell) performance and prestige! Volvo sells safety. What are you selling? Facing the challenges of buyers who focus on price or who "commoditize" our products and services is difficult. Success can only be achieved by selling benefits and solutions. The best sales people have developed skillful questioning and listening techniques to uncover a buyer’s true needs, as it is only then that they can effectively sell what every buyer truly wants (solutions). Conducting regular FAB (Feature, Advantage, Benefit) brainstorming sessions is a great way to get started. These are typically more challenging than one might expect! The simple formula is to say, "Because of this FEATURE, you get the following ADVANTAGE, which means BENEFIT." You might also imagine speaking to a customer who simply replies, "So what?" after each feature you present. Keep working until there is no way the customer can say, "So what?" Another option might be to conduct focus group meetings that match various service offerings with appropriate benefits or customer testimonials. While the methods can vary, the exercise will be worthwhile. Does anyone remember what Noxzema was selling?
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Sales Management - Does it Ever Change? By Alan MacNaughton I was talking to another old sales pro the other day and he mentioned that the fundamentals of selling haven’t changed since the Phoenicians were leasing ships to the Egyptians, back before Moses was a boy.
We then got onto the subject of sales force make-up from a talent-to- productivity standpoint, and how it always seems that:
1/3 are superstars - truly consistent, excellent producers How do you manage a sales force, given the above, particularly in times (like right now) of a limited pool of potential sales candidates? The "old pro" and I agreed that there was nothing inherently wrong with the mix as described, but there are a few challenges. We discussed three, along with the following solutions: Q. How do you maintain motivation of your superstars even though this group tends to be self motivated, already knows that they are "good," and are probably well compensated? A. One solution is to get this group competing against one another via some kind of sales contest, and do it regularly. Also be creative in your choice of prizes, leaning toward something that includes husbands, wives, or significant others. We all like to look good to our peers and partners. Q. How do you improve the middle group’s performance? A. In addition to sales training and in-field sales management support, encourage cross-fertilization between this group and the superstars at off- campus meetings or evening get- togethers. You want the superstars to share their skills, techniques, and attitudes. It is also important that contests are not structured so that the superstars always win. Contests must motivate the entire sales force. Q. What about the remaining third? A. Accept the fact that you will always have sales force turnover, and try to have the turnover come from the group that isn’t producing. I know of no sales manager who only hired winners. And we all know of people who became very successful in sales despite coming from (supposedly) unpromising backgrounds. As a manager you have to weed out non-producers, do it professionally and with empathy, and then get on with hiring the current bartender, bank teller, or inside person who wants to be in sales and who may be your next superstar. Alan MacNaughton is a Paul Charles Associate. He can be reached through our office.
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SFA Systems & Their Missing Link Most sales people report that their sales force automation (SFA) record system is a valuable asset, but deeper digging into how most systems are being used usually reveals a missing link. First, let’s state that we consider SFA systems, off-the-shelf or customized, to be key components of successful sales efforts. The list of plusses is a long one, and includes benefits for both sellers (easily retrievable data on sales activities, customer’s past buying habits, price quotes, etc.) and managers (if a sales rep leaves the company, a useful, legible customer- interaction history remains!). But while most sales people make efficient use of the customer-related data, few put to good use the daily activity summaries that most SFA systems offer. This data pertains to the sales rep’s work habits. The missing link, simply stated, is a daily call sheet - the means by which sales people keep track of what they are actually doing each day and, more importantly, what they are accomplishing! Not only is it important to know the number of calls made each day, but also the type of calls - prospecting calls, follow-up calls, presentations, closing appointments, deliveries, customer service calls, etc. - and the results of those calls. It is only when a daily log or call sheet is kept and analyzed that we can make honest determinations about what’s working and what isn’t, about what should be done in heavier doses and what should be done less frequently, and about which activities are bringing in the orders! Selling is a complicated business, and basing decisions simply on sales revenue, or the lack thereof, often results in many lost opportunities. But by paying attention to the details associated with daily activities and daily progress, it becomes possible to make necessary adjustments or to take notes that can be shared with other, less successful team members. After all, it’s difficult to know how well a total sales effort is really going, or how much better it could actually be, if nobody’s keeping score!
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Selling Attitude! "Nothing can stop the man with the right mental attitude from achieving his goal. Nothing on earth can help the man with the wrong mental attitude." W.W. Ziege Selling is a people business. People buy from people, and most often, from people that they like. But what makes one sales rep more likeable than the next? Surely all, or at least most sellers try to be likeable! Attitude makes the difference. A positive attitude is not only easily recognizable, but it’s catchy. Sellers who possess truly positive attitudes "assume the close." They honestly expect the best from prospects, and they offer their personal best as well. They tend to react to things positively and, more importantly, tend to bring about positive return reactions. Christine Harvey asks a pertinent question in her "Successful Selling" book. "What are the chances that your customer will be positive if you aren’t? The answer is zero." But it’s not easy to be truly positive! Especially when so much of selling tends to be negative. In his book Selling 101, Michael McGaulley writes, "Despite all the people one meets, selling is a lonely profession. They [sales people] may feel isolated, and not understand that selling is a matter of working through the nos to find the few yes responses that make it all worthwhile." Successful sales people know and understand this concept - and react positively to the negative responses that they know are all part of the cycle. Many sales professionals will readily admit that they "look for the nos," because it is only then that they can actually sell something. You may have read "Lifetime Plan for Success" by Dale Carnegie, who relates the story of poor Thelma Thompson, who in desperation complained to her parents about the miserable living conditions forced upon her during the war. Her father’s reply changed her life; his letter consisted of two lines: Two men looked out from prison bars, A positive attitude is a pre-requisite to long-termed sales success. We must first believe in our products and services, as well as in our companies and ourselves before we can expect customers and prospects to do so. Every sales person and every sales manager should recognize the importance of developing and maintaining such an attitude within themselves and within their organizations. A final testimonial to this discipline is a poem, author unknown, entitled The Winner. The final verse: Life’s battles don’t always go
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Tradeshow Selling Participating in a tradeshow is a common component of most business development efforts. The experience can be fun - the crowd, excitement, change in scene, and new product info are all stimulating, and there is the lure of developing new sales leads. You might even sell something! But lots of sales managers will tell you that "shows" can be expensive, and in many cases yield nothing. One frustrated VP of Sales even expressed disappointment with his group’s after-the-show effort. "We had a pile of business cards that nobody really knew anything about; as a result, any attempted follow-up was ineffective." Are tradeshows worth the effort? Can the costs be justified? Is there a way to make productive use of floor time? At a recent Greater Manchester Chamber of Commerce workshop, Rick Bonyman, Sales Manager at Woodmaster, Inc. of Hooksett, NH, masterfully answered yes to these questions and more. Planning, goal-setting and follow-up are all important, but the secret to tradeshow success is to properly deal with the known prospects, friends, competitors, and "suspects" that you encounter. "Suspects are the key," Bonyman explained. "You can call everyone else on Monday because you already know who they are." Everyday sales presentations are best left at the office on tradeshow days, as it becomes important to:
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Business Development - A 5 Step Plan Do you have an annualized business development plan? If not, please read on... because having such a plan can make the difference between success and failure, or possibly between a good year and a great one! First let's define the terms. An annualized plan is simply a schedule of which activities will be done and at what time. Plotting this information by month allows you to take advantage of any seasonal opportunities, and also to determine overall time and cost commitments. Business development is a multi-faceted practice that keeps your business moving ahead. It consists of various components, including:
A close review of this list reveals three very important facts. First is the fact that our customers and clients are also prospects for new or incremental business. Second, there is a big difference between "identifying" business opportunities and "generating" them. While the former might, at times, be easier to accomplish, both activities are essential.
The third key fact, simply stated, is "one easy way to get business is to not lose business!" Customer retention is an important element of every business development plan, because any lost business must be made-up if we are to achieve our overall goal. Simple 5-Step Approach
 The plan must be well-organized, and your approach to implementing the plan equally well-organized and persistent. The plan won't work if you quit or if you only execute a portion of it. As John Wanamaker once said, "Half the money I spend on advertising is a waste. The problem is I don't know which half!" It is also true that developing new business requires the development of new business relationships. This is a process rather than a one-time-event, and it takes time - some experts have even identified the "rule of seven," which states you will, on average, need to interact with a prospect seven times before getting serious consideration; others say it happens between the fifth and twelfth contact. Whatever the actual number might be, only those who persistently maintain their effort will achieve optimum success.
The final consideration involves the regular measurement of achievement and ongoing improvement. Each "contact" must be planned and, based on your success or failure, these plans must be evaluated and continually enhanced. Each contact must be value-added and fresh - so there's plenty of work ahead. But it will be worth it when you tally the numbers at the end of the year!
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Successful business development, therefore, requires a combination of marketing and selling skills. Other requirements include time management, organizational skills and a positive attitude.
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Are You Interested? Whether you are a sales manager, business executive or business owner, becoming "interested" is an important component of driving your organization's sales and business development effort. While great amounts of emphasis are more commonly placed on striving to become "interesting" in our interaction with others, consider the concept of becoming more "interested" and how it influences the various people involved. As a sales manager, one of our primary responsibilities is to motivate the team. This typically involves helping sales people maintain a positive attitude as well as a belief in their ability to get the job done; it also involves managing processes so people stay focused on the right things, and leading people toward mutual goal achievement. It is not easy work. It can become easier, however, when we find ways to consistently exhibit an honest interest in the work being done by our sales team. And please note, this means becoming "interested" not only after the work has been done, but also while the work is being done! An after-the-fact or "rear-view mirror" approach to management can only yield judgment about past performance; but our "interest" while work is in progress enables us to influence results – hopefully for the better!
But most of all, if consistently implemented this interactive and collegial management style has a tendency to send a strong implied message – a message that says we care! A message that says each team member is important and their work is important. We might be surprised at how much more effectively people perform their jobs when they realize how important their success really is from our perspective. In addition, the sales team will very likely express OUR interest when they interact with OUR customers and prospects. Sending a message to customers and prospects that says WE care can only generate good will and, hopefully, increased revenue. As an executive or business owner, becoming more "interested" when interacting with customers and prospects can have the same effect. Consider the fact that studies and surveys, including an extensive buyer's poll done by the AMA, indicate that people make decisions based on their feelings. In other words, according to one marketing expert, "People decide based on their emotions, and then justify it with the facts." If this viewpoint rings true, then consider how being "interested" in customers and prospects might make them feel and how it might influence their decisions. Here are a few ideas on becoming both "interested" and, therefore, interesting:
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"Interested" people tend to ask questions. So, this genuine interest can best be expressed by asking questions about day-to-day efforts, successes and challenges; we can then analyze the information gathered (by listening carefully to people's answers to our questions) and proactively find ways to become involved. A steady diet of this type of interaction will quickly lead to a better understanding of the team's attitude and aptitude. It will also yield potentially useful information about the marketplace, which can help us in making decisions with respect to pricing, policies, training, hiring and more!
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Proactive Business Development ACTIVITY DOES NOT EQUAL RESULTS If you would like to grow your business or sales territory this year, try making a true commitment to the proactive components of your business development plan. We all know that growing a business or sales territory is hard work, especially in more challenging economic times when referrals and leads are less plentiful, customers are spending less and the competition is tougher. A good start (as noted in a previous article) is to create an annualized business development plan. But simply crafting the plan isn’t enough! We must commit to the plan as well as to the proactive components of the plan. Honest Self Assessment
Running advertisements, updating a web site, posting blog entries, distributing newsletters or attending networking events might all be parts of the plan, but once these action steps are taken we often find ourselves in a reactive position – that is, waiting for someone to call. These reactive action steps are the “easy” components of business development. The more difficult aspects of business development include proactively working to make things happen. These activities include sending follow-up emails or letters suggesting next steps, leaving proactive voice-mail messages, making follow-up calls and scheduling meetings. Research, pre-call planning and some imaginative thinking are also part of the mix, but the “hard” part of business development is staying the course. Statistics indicate that most things “happen” after someone (a seller) completes five or more contacts with a prospect. But most “sellers” make fewer than three approach calls – thus the challenge most of us face when trying to make things happen. Setting goals and monitoring results are the best methods of ensuring success, and now is the time to get started for 2010.
If appointments or meetings seem hard to come by, then review your metrics as well as your message. Growing a business or sales territory is not easy work. If you are able to achieve sufficient growth in a primarily reactive way – advertising, referrals, and so on – then you’re among the fortunate. For the rest of us, committing to proactive business development is the best approach. |
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Holiday Networking Turning holiday networking into productive time might be challenging, but it can be done by implementing a simple twist in pre-event preparation. It's not what we say, but... Even better, if we plan a few good questions that are geared toward learning about how the people we interact with handle some of the solutions we provide, the information we gather will be very valuable when we make follow-up calls in January! Maybe Rudyard Kipling said it best: I keep six honest serving-men |
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Performance Management  An Everyday JobBALANCING THE REAR VIEW MIRROR A strategically balanced performance management plan is a key component of effective sales management. The most successful approach not only enables sales managers to identify opportunities for team improvement based on analyzing past activities and results, but to also identify preemptive action steps and strategies that can impact future results. Balancing the Rear View Mirror Circumstances and competitive offerings within the marketplace are constantly changing. While the practice of reviewing past performance and using the data as part of a performance improvement plan is necessary, this “rear-view-mirror” approach can be costly (in terms of lost opportunities) if it encompasses ones entire sales management approach. While there are different ways to accomplish a more balanced approach
Because the sales process takes place in so many diverse locations (customer offices, prospect offices, restaurants, on the phone, electronically, at networking events, and so on), and because it involves so many different people with varying needs, it is essential for sales managers to keep track of a wide range of activities as well as team morale and work ethic. In a recent article published on-line at about.com, Human Resources, HR Expert Susan Heathfield said, “…the true goal of the performance appraisal is employee development and organizational improvement..., [so] consider moving to a performance management system.” By taking a systematic as well as balanced approach to performance management, and by assessing what has “been done” as well as what is “being done,” managers can maximize the impact of their efforts on sales Rep development as well as sales results. * See related article: Selling to the Sales Force in the Paul Charles & Associates Article Archive. |
or sales management system, here’s a well-tested example consisting of five key components:
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Which Half of Your Sales & Management Effort is Working? John Wanamaker once said, "Half the money I spend on advertising is wasted; the trouble is, I don't know which half!" This is, of course, the reason frequency is such an important element of marketing. It is also an important element of selling and of sales management. We must be diligent in our efforts to maintain a proactive and persistent posture when selling, and we must do the same when engaged in sales management The key reason for this fact is that we can never be sure about which component of our effort is going to be effective at any specific time. In other words, time spent coaching a Rep today may, in fact, pay off immediately or it may not pay off for a month or two; time spent presenting good reasons for a policy or procedure may not truly result in team buy-in on the spot, but might do so over time. Just like John Wanamaker, we just can't be sure If we fail to interact with our customers, pospects or sales people with sufficient frequency, and if we fail to reaffirm the value associated with our products, services and our orgnaizations as well as our personal value, then we will most likely fail as sales people and sales managers. |
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Closing the Sale ASSUME THE SALES BUT NEVER THE REASON Many organizations have increased their focus on selling during this past year’s more challenging economic climate, and we are frequently asked to help business owners, service providers and sales people learn how to close the sale more effectively. But while there are certainly many techniques and approaches involved in completing a sale, closing is not a stand-alone activity. Even worse, a seller who attempts to "close the sale" more aggressively without properly executing the entire selling process can do more harm than good.
Clark Green, who manages a business development team at Infor, one of the world's largest business software companies, explains this perspective very nicely. “To be successful a Rep has to earn the right to go from one step to the next within the selling process,” he says. “And along the way he or she must build a foundation on which to ask for the order.” Assume the Close…
It’s important to realize, however, that this expectation is not a result of over-confidence. Instead, it is the result of diligence in executing the earlier steps of the selling process – and of “earning the right” to progress from one step to the next before asking for the order. If our qualifying, probing and listening techniques are well-executed, it is likely we’ll be able to offer customers and prospects the right solutions to their needs – needs that are both expressed and identified. If we fail to execute these steps, then closing the sale becomes a guessing-game. …but Never the Reason
Once we’re sure of that, it becomes much easier to assume the close – and to close the sale as well. * See related articles: Closing the Sale – Part 1 and Closing the Sale – Part 2 in the Paul Charles & Associates Article Archive. |
The most successful sales professionals are able to make things happen not because they are silver-tongued or aggressive when it comes to asking for the business, but rather because they are diligent and proficient when it comes to implementing all the steps that comprise the selling process. In fact, it is often the effective movement from step-to-step that enables a sales person to develop the relationship, knowledge and confidence required to effectively complete the sale.
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Growth Through Strategic Customer Service There are many components to business development and many ways to grow revenue – and strategic customer service is definitely one of the often-overlooked pieces of the puzzle. As many people agree, staffing, managing and growing a business hard work, especially in more challenging economic times when referrals and leads are less plentiful, customers are spending less and the competition is tougher; and it is especially in times like these that the value of a customer becomes most clear.
When asked, most people say they do their best to provide good customer service. However, the methods vary sigificantly and tend to be inconsistent. To maximize the effectiveness of your team's customer service effort, it's best to develop and implement a measurable, strategic approach that leverages your organization's unique benefits and that can become both consistent and cultural. Simple & Strategic
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Assuming there are no extenuating circumstances such as a poor payment history, the simple rule is that we should do everything within our power to avoid losing a customer... and providing consistent, high-quality customer service is critically important to that end.
Growing a business or sales territory is not easy work, but it will become easier if we can delight and retain our customers. Possibly
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Key Accounts - Keys to Long Term Sales Success Many business owners, managers and sales people tell us that eighty-percent of their business comes from twenty-percent of their customers. The Pareto principle… Whether this perspective accurately describes your business situation or not, it is still likely that some concentrated percentage of your customer base generates the majority of your sales revenue. Similarly, some concentrated or relatively small percentage of your current and prospective customers most likely makes-up the majority of your new business pipeline.
Given these facts, it is wise to create a “Key Account Program,” which is simply an organized sales and marketing strategy that will ensure a sufficient amount of attention is being given to the concentrated group of customers and prospects that will, most likely, make-up the majority of your organization’s sales revenue and growth over the next twelve to twenty-four months.
Please note that we call this plan a “key account” program, not a “key customer” program, because it is important to pay an appropriate amount of attention (extra attention!) to these select customers and prospects alike.
Key Objectives
The primary objectives of a key account program are to retain your best customers, increase penetration within customers with whom your organization has only a small percentage of the potential business, and to win over high-potential prospects. Consider the following three points:
Key Activities
Here’s a list of ideas on how you might create or improve your Key Account Program:
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Contact Frequency People often ask, "How many calls can we make on a prospect before going over the line?" Here are a few guidelines...
First, consider the following facts, which we shared last year in a related article – studies show that approximately 80% of those involved in business development approach prospects two or three times and then give up.
Now, consider the importance of these National Sales Executive Association stats regarding the importance of following up:
Next, consider the fact that sheer “frequency” does not guarantee success. Each contact must be “value-added” in order to properly impact your target prospects. This requires research, planning and good communication (probing and listening) skills.
Considering this information simultaneously, the best answer to the call frequency question is that we “cross the line” when our calls have no value for the prospect or customer. |
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10 Proven Customer Service Perspectives
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Customer Needs - Does One Size Fit All? Alec's Shoes is one of New England’s most successful independent shoe stores, offering athletic footwear, men’s and women’s casual and dress shoes, and a wide range of accessories. But the store is known for much more than its inventory. In fact, it’s the exceptional customer service provided by the twenty-plus staff members that satisfies patrons and keeps them coming back time after time. While this might seem like a simple approach, the store’s high level of customer service truly stands out. The floor reps are consultative, and focus on every aspect of how each pair of shoes will be used before making recommendations. They almost always offer each customer two to three choices, and customers who ask for size suggestions get both feet measured! “Statistically, nearly twenty percent of American adults wear shoes that are the wrong size,” store owner John Koutsos explained. “And few people have two feet of the same size. By measuring each customer’s actual size, both in length and width, and by considering the variation in size between their left and right foot as well as their hosiery preferences, we’re able to give them the best possible fit for both comfort and application.” Regardless of what type of business we’re in, gauging our customers’ and prospects’ needs requires more than a “one-size-fits-all” approach too. Here are a few proven best practices:
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