Are Salespeople About to Become Extinct?

I was one of the first people in the world to have a Blackberry. True story! And, I’ll never forget the first conversation I had with the Blackberry salesperson. He said, “Lee, get this… Email on the go! People will be able to send you a message and you will be able to send a response. How cool is that?! Forget those pagers that beep and you have to call someone back. You’ll have two-way communication at your fingertips.”

This was a compelling story which is why I had a Blackberry strapped to my belt the very first day the devices were available in the U.S. Imagine that same salesperson calling on me today with that same pitch. “Email on the go…” I’d think he was crazy for positioning “email on the go.” Why? The PDA device is an accepted part of the business professional’s toolkit. We bought into the “email on the go” concept long ago. What question is on our minds today? Which PDA device is right for me? After all, the market is flooded with PDA devices with varying features and functions.

There have been countless articles written on the future of the sales profession with many of the authors concerned about what is to become of salespeople. No one has a crystal ball telling them what the future holds for salespeople. Yet, there are steps salespeople can and should take (if they have not already done so) to, not only avoid extinction, but also to dominate the sales game. Quite frankly, the salesperson in the aforementioned story deserves to fall to the perils of extinction for failing to adapt his style with buyer purchasing changes.

Every industry goes through changes. Not some, every single one! No industry is immune. Yet, the media only tells you about the massive marketing changes that companies make. You don’t hear about the changes that salespeople must make to also remain competitive. Oftentimes, salespeople wait for the corporate tap on the shoulder addressing sales changes rather than proactively making adjustments.

Look at the new car industry. Not long ago, new car salespeople were viewed as Yoda, the wise and knowledgeable being in Star Wars. Those sales people knew everything about the features, functions and deals. Prospects relied on them to share their wisdom so that educated car purchase decisions could be made. What choice did prospects have? There was no way for them to get that information unless it was provided by the salespeople.

We don’t need new car salespeople to play the “Yoda role” anymore. The Internet puts every bit of information (and even more than what the salespeople shared) at our fingertips. As a matter of fact, more and more, people are making their purchasing decisions without ever setting foot in the dealership. They research online and make a buying decision.

If you are a new car salesperson clinging to the “Yoda past,” you probably aren’t selling many cars today. You’ve not adapted your approach with the changes in the decision-making process. As a result, you are in jeopardy of going the way of the dodo.

The Internet hasn’t just impacted the new car salespeople. It has changed selling for every salesperson on the planet! Salespeople used to be able to show up on a prospect’s doorstep and ask, “What is it you do here?” Given that the only way to learn that information was to ask, prospects were willing to share it. Ask that question today and you will quickly be shown the door.

To be successful selling today, salespeople must create value with their prospects…above and beyond what their products offer. That value is often presented in terms of “experience.” The term is often used to describe their tenure with a company or within an industry with the objective of dazzling prospects. Experience is meaningless! Prospects aren’t impressed by it. They won’t buy because a salesperson (or their company) has it. What they want is expertise. Experience means you’ve spent time. It doesn’t mean you are any good at what you do. I’ve seen two-year industry novices develop mastery at levels that blow twenty-year sales veterans out of the water. Those veterans, oftentimes, cling to the “good old days” of selling as opposed to continually shucking and jiving with changes.

Bottom-line, if someone is going to invest his time with a salesperson, he must perceive that he will come away with something other than the “privilege” of sitting through a sales call.

Up to now, everything that has been shared assumes that the salesperson is even able to book a face-to-face meeting with a prospect. There are still many salespeople “dialing for dollars” and finding that their approaches fall on deaf ears. The change in the selling approach isn’t limited to the in-person prospect meeting. The entire spectrum has changed starting at the very first moment of the prospect pursuit.

Imagine. It’s the middle of the night. There’s a pounding at your door. You scramble to put on your robe and rush downstairs to see who it is.

It’s the police! “We want to talk to you about a crime…”

How did they find you? Did they just knock on every door until they found a suspect? Of course, they didn’t. The evidence has led them to your doorstep and that’s why they are contacting you right now.

What if the police’s strategy to solve crimes was to ring every doorbell and say “Hi, did you commit a crime today? If so, could you tell me which one?” No suspects would ever be caught.

As ridiculous as that sounds, this is exactly how most salespeople approach their search for prospects. They start making calls without a “crime theory” which means good luck finding suspects. If you can’t find suspects, you can’t turn them into prospects. No prospects means no sales. That’s a sequence of events that even makes sense to Inspector Clouseau.

There’s an old expression about sales being merely a numbers game. While there is truth in the need for quantity, quality is the ultimate measure. Prospects won’t tolerate being the sales call of the day. Not today! While it is accepted that salespeople hear tons of “no’s” before getting to “yes,” it is exacerbated by poor sales preparation.

Let’s say a salesperson plans to call the CFO of a manufacturing company. The sole objective of the phone call is to schedule a face-to-face meeting. Before ever picking up the phone, this salesperson needs to:

• Research the company by visiting the website and by conducting an online search of it
• Research the prospect’s industry by visiting association websites and by conducting an online search of it
• Research the prospect’s competitors websites and conducting an online search of them
• Research CFO’s to learn their language (terminology), challenges and areas of focus today

By contrasting the information uncovered through this research with the challenges addressed by the salesperson’s product suite, the salesperson is provided with the tools needed to formulate a sales crime theory. Taking a similar approach as the police investigator, the seller answers the question of why that CFO should be interested with this solution right now. If the salesperson can’t answer the question, neither will his prospect. The result – no sale!

Salespeople are often adept at mastering their products, but not necessarily as skillful on the other side of the equation…mastering their prospects. Top salespeople become students of the sales game. This doesn’t mean that they just read sales books. These salespeople master what is most important to their prospects at that any given moment.

There are many salespeople who will not adapt to their new selling environment. Those salespeople will most certainly be run out of the profession. Those who want to, not just survive, but also thrive will perpetually question the strategies and tactics that made them successful yesterday to see if those same approaches will make them successful tomorrow.

No one knows for sure what the future holds for the sales profession, but one thing is certain…
 

“What made you UNIQUE yesterday,
Makes you a COMMODITY today,
And EXTINCT tomorrow,
Unless you ADAPT to change.”
 –Lee B. Salz

 

Your Sales Team – Wise Investment or Money Pit?

The sales team is the primary revenue source for most businesses. However, this revenue is not without significant cost. If not carefully managed, this revenue source can easily become a money pit. There are five areas business executives should watch to ensure they make a wise investment in their sales team.

Hiring. In most organizations, if a new idea is proposed that will cost $20,000 to implement,
blue ribbon panels are commissioned, meetings are held and a decision is ultimately made. After all, the company is considering a significant investment which requires careful consideration.

However, when a company is hiring a sales person at a salary of $20,000, there isn’t nearly the same level of due diligence performed. Yet, it’s the same $20,000! In essence, the worst mistake a company can make is to hire sales people. Adding headcount to a sales team should be viewed as an investment made in revenue. Recognizing that this is an investment is a critical first step toward driving sales team profitability.

As executives evaluate sales candidates, there is a perception that they can hire great sales people. Unfortunately, there are no great sales people. They don’t exist! The issue is the word “great.” Greatness isn’t a standalone quality, but rather an attribute of the relationship between the sales person and the sales role in your company. Don’t believe it? How many sales people have you hired – great resume, fantastic track record, polished appearance – and failed in your company?

If you believe that there is this entity called “great sales person,” you must also agree to one of the two of the following statements:

“When the sales person arrived at my company, she completely forgot how to sell.”

“Our company is the absolute worst company to sell for in the history of business.”

After all, what other choices could there be if this person is truly a great seller? Companies with highly profitable sales teams don’t search for great sales people. Their quest is to find the right sales people who have the potential to be great on their sales team. While this may seem subtle, its impact is not.

This quest begins with the development of a highly-detailed, ideal sales person profile which identifies every factor that affects a seller’s ability to succeed in the role. Once created, a sales talent screening program is put in place that allows them to compare and contrast the candidates with this profile. With that in place, instead of looking across the desk wondering if this person is a “great seller,” potential investors (which are what the executive team becomes when adopting this philosophy) are looking for synergy – or lack thereof – between the candidate and the profile.

Onboarding. Many executives believe that – once they’ve hired a sales person – the hard work is over. And, why shouldn’t they believe that? They’ve just hired great sales people! Hand the new sellers a phone book and send them off to sell.

Highly profitable companies recognize the real work is about to begin when a new seller investment is made … for both the new sales person and the company. This work comes in the form of an onboarding program. Onboarding is commonly seen as completing new hire paperwork and getting the office ready to go. While administrative work needs to be done, it does nothing to protect the new investment or ensure a healthy return.

During the recruiting process, the sales talent screening program helped the investors make an informed decision prior to extending an offer to the candidate. Now, the new seller arrives at the company with potential, but a program is needed to ensure the potential becomes reality – in as little time as possible. After all, every minute that the seller is on the bench, not yet ready to sell for the company, she is merely a cost on the books.

The starting point in the development of a sales person onboarding program is the end. In other words, without identifying the program objectives, it’s impossible to create an effective onboarding program. The investors need to clearly identify the finish line for the onboarding program based on expectations they have of those new sellers who successfully complete it. Those expectations are identified in the context of KNOW-DO-USE.

What do they KNOW?
KNOW refers to information like product knowledge and territory analysis.

What can they DO?
DO refers to actions like conducting a sales calls or delivering a corporate presentation.

What can they USE?
USE refers to tools or systems like a CRM or back-office utility.

KNOW-DO-USE provides the framework to identify the finish line for onboarding. With that, the sales person onboarding program is then designed to lead the new sellers to this finish line and should conclude with testing and assessment. After all, investors want visibility into the performance of their investments. Completion of an onboarding program is one of the milestones providing that visibility. Testing can come in the form of written exams, practicals and mock sales calls.
 
If the new seller is not able to demonstrate proficiency based on what the investors have documented as their expectations of someone who has successfully completed the onboarding program, it’s an opportunity to protect the company by ending the investment early.
 
Managing. There is an age-old debate on micro versus macro management. Micro-management is often defined as constant, in your face management. Macro-management is aligned with the French “laissez-faire” philosophy of leave them alone. The debate seems to be limited to these two extremes. Yet, top performing companies cast this debate aside and take on a different philosophy.
 
Hiring and onboarding are seen through the lens of an investment in revenue. Managing the sales team falls in line with the “investment philosophy” as well. Each sales person on the team represents an investment made on behalf of the company. When investors consider opportunities, they look for a well-developed business plan. This is the same philosophy highly-profitable sales teams have in place to ensure there is a strong return on investment.
 
The investor team develops a sales business plan template which is structured in a “wizard-format.” The plan is designed so that the investors can get a high level of confidence in the strategy, tactics and measures for each member of the sales team. Once the plan is completed by the sellers, an investor call is held during which the sellers present the plan for acceptance. During the call, the investor team asks questions to instill confidence in their investment decision. Once accepted, periodic calls are held to update the investor team on sales business plan implementation progress.
 
Rather than argue micro-management or macro-management, these companies have a management structure in place that positions them for a high return on their sales team investment. Those sellers that perform well receive additional investment (time, dollars, resources, etc.). Those that don’t, they find their business ventures no longer funded.
 
Metrics. There is no end to the data associated with sales and it’s easy to get lost in it. Worse yet, it’s common for executives to focus on the wrong data points. Companies that recognize that the sales team is a revenue investment develop their sales metric management system designed to help them analyze performance.
 
Many start their system with “revenue” identified as their first metric. Yet, revenue is not a metric. It’s a result of the right metrics being delivered upon by the sales team with the right frequency. Companies can’t affect revenue, but they can affect the behaviors that lead to it. The investor team identifies a series of metrics that indicate that the business is on track. There are four criteria for each metric that is to be included in a sales metric management system:
 
1. Measureable. It is easily quantifiable as opposed to merely gut-feel.
 
2. Meaningful. The data point indicates something of importance to the business and seller performance.
 
3. Trainable. If a seller is deficient in this area, training can be provided to improve performance.
 
4. Goal-oriented. As it is measurable and meaningful, a driver is needed to ensure it is achieved.
 
With a sales metric management system in place, the investors have the ability to monitor the corporate investment and take swift action.
 
Compensation. “You’re only as good as your last sale.” This is one of the worst expressions ever uttered as it conflicts with how businesses are measured. Wall Street looks at tomorrow much more than yesterday. And, it is this expression that leads companies to develop flawed sales compensation strategies.
 
Traditional thought is that sellers are paid an incentive over their salary because they sold something yesterday. Profit-focused companies pay an incentive to get more sales in the future. Their focus is on growing a healthy sales pipeline in addition to winning accounts. When companies pay for yesterday’s news, their performance chart resembles an EKG.
 
The common starting point when developing a sales compensation plan is to ask:
 
“How much do we want our sellers to make if they achieve plan?”
 
While this is an important question, it should not serve as the foundation for the compensation plan. Since paying dollars beyond salary is a further investment made by the company the foundation question to be asked is:
 
“By paying an incentive (bonus, commission, etc.) to our sellers,
how will that help us get more of the sales we want in the future?”
 
The answer to that question helps to guide the development of a sales compensation plan that not only rewards for yesterday’s results, but for a healthy sales pipeline.
 
Each of these five areas has a major impact in the profitability of your sales team. While it may seem like a large undertaking, the result of transitioning your sales team to a “revenue investment philosophy” is exactly what the corporate bottom-line needs.

Are You Setting Up Your New Hire Sales People For FAILURE?

You’ve hired your rainmaker! The hard work is over and now it’s time for the dollars to roll in. After all, you’ve just hired a great sales person. Take her to the office, hand her a prospecting list and success is imminent!

Oh, if only this formula worked… Actually, it is this line of thinking that is the leading cause of  new hire sales person failure and sales team underperformance. You hire potential, but you have a shared responsibility with your new seller, to ensure the potential becomes reality. What many business leaders don’t recognize is that the sales person arrives with a portfolio of skills, but a program is needed to help her quickly and effectively use those skills in the sales role for the company. The bridge from success potential to reality is your sales person onboarding program.

Taking a step back, profit-driven companies never hire sales people. They make an investment in revenue. If you asked your CEO for $30,000 for a trade show, how many hurdles would you have to jump to get the approval? How many return on investment studies would you need to provide? How many blue ribbon panels would be commissioned? Yet, hiring a sales person at a salary of $30,000 is oftentimes not seen the same way as the investment in a new initiative. Yet, it’s the same corporate dollars and should be prudently handled as any other investment.

With that in mind, you wouldn’t invest $30,000 in your trade show, keep your fingers crossed and hope for the best. Steps would be taken to ensure the desired return is recognized. In this case, the missing step is your sales person onboarding program – which protects your new seller investment. If you’ve never had one, you may be wondering where to start. The best place to start is at the end.

Imagine your new hire sales person has successfully completed your onboarding program. What do you expect that your new seller knows, can do and can use? The three words KNOW – DO – USE serve as your onboarding program development guide.

KNOW refers to information like product knowledge, competitive landscape and company history.

DO refers to action like conducting a sales call, delivering the corporate presentation and demonstrating a technology platform.

USE refers to tools like your CRM, web meeting and ordering system.

After identifying your proficiency expectations, the next step is to identify how proficiency will be developed for each one. For example, if you expect your new seller to adeptly conduct a needs analysis sales call, what proficiency development areas are needed to ensure this happens?

After going through this exercise, you will have a laundry list of components for inclusion in your sales person onboarding program. A common mistake is to squeeze everything into one week – immerse them in your world and send them out to sell the value. This strategy isn’t effective as there is only so much your new seller will master in a boot camp environment. Plot the program components over several weeks in a logical sequence that is paced such that your new seller has every opportunity to succeed.

Finally, develop a proficiency exam so you can assess performance during the program. This can come in the form of a written exam, individual practical and/or group practical. In essence, you’ve made an investment in your seller by including them in the onboarding program. This is the opportunity for them to demonstrate that they are on track to generate a return on the investment that has been made in them.

You may think of onboarding as a corporate luxury. It’s not! A well-designed onboarding program leads to a quicker revenue contribution from new sellers and performance levels not presently experienced from the veteran sellers. Don’t ever hire another sales person, make an investment in revenue!
 
To get my FREE worksheet for use when developing your sales person onboarding program, click here.

Learn more about sales person onboarding programs at www.TheRevenueAccelerator.com.

Can't Sell Today

Can’t sell in January. Between the terrible weather and everyone coming
back from vacation, how can you expect someone to focus on buying now? I’ll pound the pavement next month.

Can’t sell in February. More snow and more vacation. Way to go, Washington and Lincoln; thanks for President’s Day! It’s such a short month. No one can make a decision in such a short month. Next month is going to be better.

Can’t sell in March. No one is going to make a decision on this with more holidays around the corner. Good time to shop for summer clothes. I’ll just use credit cards because I’ll make huge commissions later to pay it back.

Can’t sell in April. Who wants to focus on buying with Spring in the air? And hey, my kid’s birthday is this month. I’m sure my prospects are working on their taxes anyway. Next month will be better for sure.

Can’t sell in May. Great weather in May, and I hear that my prospect may be thinking about being acquired. No problem. I’ll look for better ones next month. There’s tons of opportunity out there.

Can’t sell in June. Kids are getting out of school. Wow! I almost forgot Flag Day. No one buys in this weather. Besides, July is a better month for sales anyway.

Can’t sell in July. Great time of year to be at the beach and enjoying the outdoors. I think all of my contacts are on vacation…together! August is a much better month anyway.

Can’t sell in August. Too hot! Besides, I’m taking my vacation. They probably are taking theirs too. No selling to be done now. Next month, for sure.

Can’t sell in September. Between the three-day Labor Day weekend and a new fiscal year kicking in, no one is buying anything. I’m feeling good about next month.

Can’t sell in October. Columbus’ birthday; what should I get him this year? I almost forgot Halloween! I’m going to focus on selling hard over the next two months. I’ll finish the year strong.

Can’t sell in November. Thanksgiving, ya know. Very short month. I don’t think any of my contacts have their budget yet. Can’t buy without a budget. Man, December is going to rock!

Can’t sell in December. Everyone has holiday fever in December. I know I do! Besides, who can focus on buying with the end of the year so close? What should I do for Festivus this year?

Oh well, maybe next year will be better for sales. Luckily, no one is buying anything from anyone this year.

     

How Sales People WANT To Be Managed…And How They SHOULD Be Managed

During my work with clients, I'm often asked to interview their sales people as part of my sales team due diligence. One of the questions that I always ask is their desired management style from the company. The response I hear most frequently? “I want to be treated as if I were running my own business.” On the surface, this should be music to the executive team's ears. The truth of the matter is that it is actually cause for alarm.

When sales people say they want to be treated as business operators, they mean it. Yet, their perception of running a business is not consistent with reality. They are saying they want complete autonomy to do whatever they want to do, whenever they want to do it. The French expression laissez-faire describes what they really desire…hands-off management. And that's not how successful businesses operate.

Anyone who has ever operated a business knows that running a business does not include the right to follow the path of the wind. If you operate a publicly-traded company, you have responsibility to the Chairman, the Board of Directors, and the shareholders. If you run a privately-held company, you have accountability to the bank or partners. In both instances, you also have responsibility to the employees. This doesn't quite sound like laissez faire and running a successful business are compatible.

That said, you should treat your sales people as business operators…real business operators. After all, your company is funding their business. Your sales people have an obligation to present their plan to make that business profitable. In essence, you are the primary investor in their business.

The first step toward treating your sales people as business operators is to ask them to provide you with a business plan that shows how they will make their business successful. The plan should not be the second-coming of “War and Peace,” but should be thorough-enough to give the investors comfort in the plans for success.

If you provide the sales team with nothing more than the instruction to write a business plan, they will waste a lot of time trying to figure out what you want…and will still miss the mark. The best approach is to create a sales business plan template using the questions the investors have about their business strategy. The overall plan should “map back” to the revenue target you have set for the sales people. If you are asking them to generate a million dollars in revenue, the plans should clearly show how they going to achieve that target.

The plan should have five core components:

Accounts. The accounts section is the place in the plan to list clients/prospects and their expected revenue contribution toward the million dollar target. If the sales person's target includes both existing accounts and new ones, this section of the plan forecasts the expected performance of their portfolio and documents the new accounts that lead them to the target revenue number.

Prospecting. The prospecting section shows their plan to build a sales pipeline. If there are no prospects, there are no sales…so understanding their strategy to reach prospects is a key for the investors to sleep at night. This area should highlight both their pipeline development strategy and tactics.

Sales Metrics. The sales metrics section shows how their activities correspond to results (i.e., revenue). This is a statistical presentation of the sales activities that they will perform that leads them to achieve the million dollar goal. This should show their success formula that works backwards from the goal and corresponds to sales activities (i.e., how many meetings will lead to a proposal, how many proposals will lead to a sale, etc.).

Skill Development. This is area is often ignored by sales people, but should be important to the investor group. After all, if there is no commitment to continuous self-improvement, how will the business continue to grow? The plan should show what they will do to improve their skills and industry knowledge…with a time commitment.

Business Needs. The final section of the sales business plan asks what the sales people need from the company to succeed. This area of the plan provides each business operator with an opportunity to share his needs of their manager and the company. It also tells what would prevent him from achieving the million dollar goal. As an investor, you want to know about his potential roadblocks so they can be addressed.

Once the plan is created, a conference call/meeting is scheduled with the investor group (the key business stakeholders) and each sales person. During the call, the sales person presents the sales business plan and the investor group challenges it to make sure it is sound. On a quarterly basis, the sales people present an update to the plan to ensure progress is being made toward the annual million dollar goal.

Need help with your sales business plan template? Click HERE for a sample sales business plan. Keep in mind that you will need to adjust the template to match your business objectives.

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If Price Really Matters

Sales people have always had a laundry list of excuses that keep them from being able to sell today. Yet, is there any excuse more infamous than the price one. “If we just lowered our price, I could sell a ton of this stuff.” Oh really? People buy primarily-based on price? Well, if that's true consider this.

If price really matters…

• Everyone would buy generic drugs

• No one would have cable or satellite television

• The seat every fan fights for would be the last row in the stadium

• Satellite radio wouldn't have over 15 million subscribers

• No one would own a Bose product

• You would get your drinking water from a faucet

• A Yugo would be in your driveway

• Nordstroms would be empty

• Everyone would shave with a single blade razor

• Starbuck's wouldn't have poured a single cup of coffee

• The only food in your kitchen would be supermarket brand

• The toilet paper in your bathroom would be single-ply sandpaper

• And… You wouldn't have any clients!

After all, someone bought from your company. Not just one person, lots of people have bought from your company. Remember this the next time you let yourself argue that you can't sell because of price. It isn't the price… It's your ability to demonstrate value to prospects. And, people will pay for value. You've just seen evidence that they do, even in your own backyard.

The Unprecedented Sales Management Challenge

As a sales manager, for years, you've had Human Resources preaching to you about the importance of work-life balance for your sales team. They reminded you that studies showed that productivity increased when employees had balance between their work life and their personal one. They told you that the team needed time to recharge their batteries so they could sell more for the company.

Some still talk about work-life balance, but the truth of the matter is that this is a yesterday issue. Work-life implies that “work” is a stressful world and “life” is a place of solace. Those days are gone with the way our economy has evolved. Your sales team is getting it from both sides now. They have unprecedented, high levels of stress at work and at home. The former life of solace is now filled with concerns of mounting debt, drastic drops in home values, a real fear of job loss, and disgust over their investment portfolio.

When your sales team arrives to start the day at 8am, the reality is that their day is already over. They began their day by watching the morning news. “Unemployment is at a record high! Housing values continues to fall! Consumer confidence is non-existent!” What a great way to start a productive sales day!

Imagine a boxer who gets beaten up before he enters the ring…What chance does he have of being successful in the match? ZERO! Today, your sales team is faced with the same challenges as that boxer. The media is defeating them before their day even begins. They arrive at work to begin their day, but the truth of the matter is that they are already finished. They've already lost.

Despite all of these woes, the company is relying on the sales team to pull the company out of the painful downward spiral driven by the economic mess. Logic would tell you that with the present state of affairs, the sales team is more focused than ever on generating sales. Every minute of the business day, they are either on the phone with a prospect or meeting with one. All they can think of is… Make a sale!

Unfortunately, logic does not come into play here. All of the external noise is leading your sales team in the complete opposite direction. They are checking the market hourly, their 401k every 15 minutes, and checking the job boards. It's as if there is total sales paralysis. Sales productivity is probably at an all time low, at a time when the company needs them most. As the sales manager, this all falls in your lap. You are the face of the sales organization. The company needs you to change your hat from manager to leader to help focus the troops on the task at hand.

Since this is a relatively new issue, most sales managers have not been trained how to help their team regain their focus to drive productivity (a.k.a. sales). As a sales manager, what can you do to regain the reigns of the team and lead them to sales success?

  1. Communicate, even…over communicate. Open and honest discussion about the present state of affairs helps to relieve the angst that the team is experiencing. As a manager, you may be in a leadership chain, but the team looks to their direct leader for guidance and support.
  1. Hold the team accountable. While empathetic and understanding, the sales leader needs to remind the team of the task at hand. Direction provided to the team should be clear and team members should be held accountable for performance.
  2. Coach them. Little things can help your team regain their sales edge. Suggest that they not start their day by watching the morning news. Have them read the news online so they have total control over which news to become informed. They control the information saturation point, not the television media. (This is a prudent thing for you to do as well.)
  1. Lead by example. While challenging, put on your game face and show confidence. Keep the conversation on the task at hand, not external influences. Smile! If you walk around showing stress, your sales team will mirror your behavior. They will think something is wrong and sales paralysis enters.
  1. Be visible! When the number of closed door meetings increases, sales people speculate that something is wrong. While a productive meeting may be taking place inside, on the other side of the door, your entire sales team is talking about what you may be discussing in your meeting. In the absence of direct knowledge, your sales team will guess the meeting is about gloom and doom. Limit your closed door meetings. Be visible with your sales team. Join them on sales calls. Meet with clients.

Other industry experts have also weighed in on this issue. If they were talking to a sales manager about how to focus their sales team and drive productivity, they suggest…

 

“Sales managers must remember the behavior of sales people is driven by the desire to avoid pain or gain pleasure. The more powerful of these two drivers is the desire to gain pleasure. Smart sales managers recognize that achievement and recognition of that achievement are the two most powerful motivators in sales. So instead of cracking the whip, they are whipping up contests, games, spiffs, and awards that keep their sales professionals focused, happy, and engaged.”
- Jeb Blount, CEO of SalesGravy.com and author of “People Buy You”

 

“Stop being complacent to selling professionals. Selling professionals control their destiny more than any other organizational function. Nothing happens unless something is sold. Selling professionals must speak with customers, requesting referrals and closing business. Watching the news is simply a form of procrastination. They must discover the unspent allocated money from the current budget year and request the business. Products and services are still needed. Tell selling professionals to do what the competition is not – sell something!”
-Drew Stevens, PhD, Business Growth Consultant and author of Split Second Selling and Ultimate Business Bible

 
“Managers need to shift away from fear based management and develop more of a collaborative coaching culture. You cannot inspire others when you are afraid and you can’t be inspired when you’re full of fear and worry. Conduct more frequent one-to-one meetings, build greater accountability by relinquishing your role as Chief Problem Solver and have less tolerance for mediocrity. Ultimately, management needs to adapt, innovate and evolve or suffer from corporate inefficiency, rigidity and declining profits.”
-Keith Rosen, Executive Sales Coach and author of the award winning, Coaching Salespeople into Sales Champions

 

“In tough times, sellers must be at the top of their game. As a sales manager, your job is to infuse your team with fresh thinking – to make sure they have the knowledge and skills to deal with today's challenges. Start a “book of the month” club. Register for webinars or teleseminars put on by sales experts. Encourage sign up for sales e-newsletters. Lead weekly “how we won” sessions. For maximum impact, start now!”
-Jill Konrath, Sales Strategist & author of Selling to Big Companies and Snap Selling

 

“Sales managers must help salespeople to maintain clarity, calm their nerves, help them function, keep them positive, get them motivated, challenge them to perform, urge them to fill their pipelines and hold them accountable to all of that. And talking the talk isn’t quite enough. When conducting pre-call strategizing, coaching must include how the account or call plan will be executed – with role play – so that sales managers are certain their salespeople truly have the ability to get it done. Your pipelines may have been thrown into a holding pattern. Orders haven't canceled or been lost to competitors; they are simply delayed. The sooner that everyone gets over their initial reaction to the recession and gets back to just doing business, the sooner that money will loosen up and start changing hands again.”
-Dave Kurlan, Sales Development Expert, and author of Baseline Selling

 

“To get the malaise out of your sales team give them permission to press the “off button” and shut out the negative media. Protect seller’s natural optimism – have contests for the best joke of the day – buy coffee for the winner. Equip them with the winning words – role-play the very words decision-makers long/need/want to hear: which are how your product increases revenues; decreases expenses; mitigates risk.”
-Leslie Buterin, founder ColdCallingNetNews.com

 

“We read & hear the doom and gloom every day about this economy. Well, I believe we need to start managing our attitudes and mindsets, as well as our sales efforts. It is time to look at all the challenges, issues and problems as OPPORTUNITIES wearing disguises. Strip off the disguises, identify the opportunity and deliver a solution. Be positive, persistent, proactive and patient in this time of change.”
-J. Glenn Ebersole, “Your Strategic Thinking Business Coach”

 

“Here’s my best piece of advice to those leading sales teams today: Do all you can to continually boost your staff’s confidence — confidence in themselves, confidence in their product, and confidence in the problems your product solves for your customers. Suggestions on how to do that: Remind them of successful case studies often. Feed them creative ways to confidently answer your top objections. Work with them one-on-one to develop their own individual style, so they sound and act naturally confident. Today’s customers have NO margin for error in choosing their suppliers; do all you can to help your staff be the ones that others can trust to make them look good!”
-Bill Guertin, CEO, The 800-Pound Gorilla and author of Reality Sells and The 800-Pound Gorilla of Sales

 

“Many sales teams are not only going through a big wake up call on the economic front, but are going through an earth moving generational shift…from Baby Boomers and Generation X running the show to men and women under the age of 30 making critical business decisions for our organizations. At the end of the day, they want to know “How are my ideas being incorporated and actually applied to our sales processes to make us better at what we do?”
-Bea Fields, Leadership and Generation Y Consultant and co-author of the book Millennial Leaders: Success Stories From Today's Most Brilliant Generation Y Leaders

 

“To create momentum, keep your sales team focused on what they need to do today, or this week, by implementing a 20 point system. On this system, they earn points for doing the right types of sales activities: conversations, appointments booked, face-to-face meetings, referrals, closed files and closed business. The focus on the right kind of activities with targeted prospects will result in creating the desired energy.”
-Danita Bye, President of Sales Growth Specialists

 

“Sales managers should hold a meeting with their sales teams with a focus on creating two lists: one containing the things the salespeople CAN'T control, and one containing the things they CAN control. Managers should then encourage their salespeople to focus 100% of their attention on the things they CAN control. Nothing blows away feelings of helplessness like having an action plan and TAKING DAILY ACTION against that plan.”
- Alan Rigg, Sales Performance Expert, and author of How to Beat the 80/20 Rule in Sales Team Performance

 

“Downturn leadership requires laser-like focus. Focus to reinforce customer service, existing customer relationships, and presence in the marketplaces. This results in improved perception of market position and stronger, more profitable customer relationships (again, what every sales leader wants more of). Focus on the “vital few” – the 20 percent of customers, product lines, industries that has the greatest impact. Do not only rely on your instincts to identify your vital few—use data to determine the truth about your sales and customers.”
-Lee J. Colan, Ph.D., author of Sticking to It: The Art of Adherence

 

“During this time of stress, management needs to attend to the emotional needs of their sales professionals. Part of that attention is to help them understand what they can change and what is beyond their abilities to change. For example they can change their attitude in how they approach each day, keeping a positive focus and working to produce results. What they can’t change is how the market will fluctuate on an hour by hour basis.”
-Gregory Stebbins, Ed.D., internationally recognized Sales Psychologist

 

“Sales managers need to roll up their sleeves and join the team. The worse thing to do in this situation is to add pressure from above with no active participation in the solution. The sales teams I’ve coached tell me that because I’m in the trenches with them, they are more motivated—even in tough times. Your sales team needs to know you are in it with them. Together you will conquer!”
-Shannon Kavanaugh, president of Go-To-Market Strategies

 

“In order to re-energize your team you need to help them become more successful. The fastest way you can do that is by establishing a killer sales strategy that focuses on a moderate amount of ideal clients. An effective strategy positions you as the industry expert, educates the client/prospect on how to run their business better, sets the buying criteria and establishes doing business with you as a forgone conclusion. Your sales people will be fired up because they are closing lots of business, making good money and loving life!”
-Andy Miller, sales strategist

 

“Although the current economic situation presents problems for you and your sales team, it also presents unprecedented opportunities. There are still prospects buying and customers purchasing additional products and services, and your competitors are facing the same daunting and depressing news. Salespeople who overcome their lethargy and seek new business can turn this economic downturn into a record-breaking year. Empathize with their issues, but emphasize the tremendous opportunities your team has while their competition is sitting on the sidelines.”
-Paul McCord, management consultant and author of the Sales and Sales Management Blog

 

“The key to making the sale in this economy is to help your team stay focused on solving real customer problems and enabling them to add immediate value to their business. We have been in this economic situation before and we will be here again – the strong will survive and 20% of sales people will exceed their quota in spite of the economy. Our job as sales managers is to not let the economy become the excuse for non performance and lack of productivity.”
-Julie Thomas, President and CEO of Value Selling Associates and author of ValueSelling: Driving up Sales One Conversation at a Time

 

“The sales manager needs to communicate the company’s vision, mission, values, goals, and expectations to the sales team weekly and then reward their accountability. The senior management team must define and communicate the criteria for a profitable customer and all sales efforts need to be focused on securing and managing those accounts. The sales professionals, who learn how to thrive in this economy, will develop skills and talents that will guide them to long-term success.”
-Janet Boulter, Profitability Consultant, Center Consulting Group

 

“Salespeople will be excited to come to work when they adopt a referral-selling strategy. They’ll meet with decision makers, shorten their sales process, and convert prospects to clients more than 50% of the time—while acing out the competition and landing new, profitable clients. They’ll meet only with the people they want to meet and who want to meet them. What an irresistible proposition! Money in their pockets. What a great motivator!”
-Joanne Black, founder of No More Cold Calling and author of No More Cold Calling™: the Breakthrough System That Will Leave Your Competition in the Dust

 

“The issue has become one of finding and sustaining mental energy. Not just the energy you and your team need to achieve sales. Even more important is your ability to sustain the enthusiasm, calm and inspiration needed to get your team through these torrid times. Instead of work life balance, it’s about getting the right flow of personal energy input and business energy output. Having an enjoyable personal interest that enables you to switch off is a good start.”
-Peter Nicholls, Director, Work Leisure International

 

“My recommendation is simple. Identify specifically two things that your sales professionals have done well to adjust to the new marketplace. Once you determine them, discuss 2-3 areas that you both agree are in need of development. Reach out to all your sales professionals and repeat this process. Compile the responses and put together a measurable action plan for your team. And don’t forget to follow through.”
-Charles Brennan Jr., President of Brennan Sales Institute and author of Sales Questions That Close the Sale

 

“Employ equal doses of inspiration, motivation, and oversight to simultaneously raise morale and maintain production levels. Use anecdotes from well-known figures in history who’ve met and overcome challenges. Set specific short-term goals, and monitor progress against them. Project an air of optimism, and lead by example. Direct the team to focus with laser-like discipline on only those opportunities that have real legs. Provide oversight to ensure they are maintaining that focus.”
-Craig James, sales consultant and trainer, president of Sales Solutions

 

 

The Business Executive's Dilemma: Should I Promote My Top Sales Person to Sales Manager?

Early Greek mythology tells tales of sailors lured by Sirens. Their sweet music mesmerized the sailors and led them to believe that the illusion was reality. Ultimately, those sailors who blindly followed the tunes crashed their ships on the rocks and their boats sank.

Sirens lure business executives and small business owners too. The song that the Sirens sing has one line… “Promote my top sales person, put six people underneath them, and generate six times the sales.” And, like the sailors, many business executives and their companies have been led into harm's way.

A promotion? The first issue with promoting your top sales person into sales management is that it's not a promotion at all. The promotion perception is the first way the Sirens get you. Sales management is not a job elevation, it's a job change. If you consider this move as a promotion, you probably send a congratulatory email and hold a luncheon for the new sales manager. A nice handshake is offered and the new manager is sent to achieve grandeur. This approach delights the Sirens and your ship is sunk!

If you handle this as a job change, your approach is completely different. Since this is a new job, you provide training and mentoring as well as monitor their performance. As the manager of the new sales manager, your role is to help them successfully assimilate into their new role.

Top Seller = Top Sales Manager? Before we go any further, we need to take a step back. The second way the Sirens trick you is they lead you to believe all great sales people can become great sales managers. Some certainly do. And, some pretty good sales people become rock star managers. And some great sales people fail miserably at sales management.

Before moving your top sales person into the sales management ranks, consider the ramifications of this move. You are taking your rainmaker out of the sales game where they've generated millions of dollars for your company. While your hope is that your theory of “disciple selling” (placing six people underneath the new manager and getting six times the sales) becomes proven, that is rarely the case. If it was so easy to clone a rainmaker, every company would do it. Quite frankly, the “disciple selling” dream is flawed. Again, you've been duped by the Sirens. The sole reason to place someone in the role of sales manager is that you feel that they have the potential to succeed in that capacity.

What does all of this tell you? You need a process and methodology to evaluate sales management candidates…just like you evaluate sales candidates. And, even though the rainmaker got on your radar screen because they blew out their quota, their sales management candidacy should be handled the same way you would if you were considering an external sales management candidate. Don't skip any steps in the evaluation process!

Profile the Role. This evaluation starts with the development of your profile of the ideal sales manager for your company. Think about what it takes to succeed in the role and document those elements as part of your profile. Once you've prepared your list, identify each element as either required or desired.

With your profile developed, the next step is to develop a screening process that allows you to compare and contrast the candidate with the profile. It is critical during this process that you ascertain why this successful seller aspires for a management role and ensure that you set clear and accurate expectations of a day in the life as a sales manager in your company. In addition to interviews, you may want to consider tools to help identify a synergistic match like personality and proficiency assessments.

If your rainmaker succeeds in the evaluation process, you've found your sales manager. If not, don’t lose the revenue! Keep this seller selling!

Positioning Your New Sales Manager to Succeed. With your new sales manager hired, there are four keys to making the venture successful.

1. Support. The first is dealing with the sales team. Yesterday, she was a peer. Today, she is the manager. The new manager needs your help in developing managerial respect. The reaction to the new manager will be mixed.  Some will be fully supportive, but there will also be some on the team who are jealous and attempt to undermine her efforts. The key message for you to deliver to your new sales manager is that she has your unwavering support.

2. Mentoring.  Your new manager needs a resource to guide them through the neophyte status…a mentor. Don't just look within the organization for a mentor candidate. Many sales management consultants mentor and develop new sales managers. The role of the mentor is to bridge the managerial knowledge, skills, and experience gap.

3. Training. Chances are that your new sales manager has never been taught how to hire a sales person, have a difficult conversation with an employee, or develop a sales compensation plan. These are all skills that can be taught. If you aren't will to provide the new sales manager with skills training, don't put them in the role. They will fail!

4. Expectation Setting. Your new sales manager should be provided with a scorecard that tells them how they are going to be measured. In most companies, sales managers are measured on revenue…but that is only one component of the scorecard. Based on the role and responsibilities of the sales manager, the scorecard could include metrics like profitability, cost of sales, turnover, sales cycle, forecast accuracy, etc.

Sales is one of the few professions where moving into management isn't always the best path for the sales person or the company. Make sure the person you put in this critical role is the right sales manager for your company. After all, while this person may not be directly generating sales, they are the one responsible for the company achieving its revenue goals. Don't let the Sirens lure your business into trouble. Develop the systems to help you make the best decisions.

Not sure how to interview sales people for a sales management job, send me an email for my 29 favorite questions when interviewing new sales manager candidates.

LinkedIn Is a Waste Of a Sales Person's Time!

I continue to be amazed by the number of sales people who feel that LinkedIn doesn't provide any value to them. Yet, these same people spend countless hours on Facebook telling people what they ate for breakfast, are leaving for work, or entering YouTube links. How is that a benefit to your bank account?

My feelings about LinkedIn are not theoretical and I'm not a paid advertiser of it. I am a beneficiary of this social media/marketing platform. I've personally used LinkedIn to build two businesses with this website as the primary lead source. Just last week, I was speaking to a skeptical sales team about LinkedIn and the opportunity it provides. Two minutes before I was going to demonstrate how to use this medium, I received an email from a president of a company interested in hiring me for sales management consulting who had found me through an article I published on LinkedIn. Rather than start the LinkedIn discussion with a demo of the technology, I put the email up on the screen and the skepticism evaporated.

LinkedIn provides sales people with a unique lead generation opportunity. However, the operative word is unique which means that the approach needs to be geared toward this medium. Imagine having prospects coming to you rather than you chasing them. It can be done if you have the right social media strategy when using this tool. This is marketing's job, right? Wrong! It is a co-shared responsibility. They have the global responsibility for positioning your company, but there is a role for sales people to play as well.

For starters, you need to take the approach that you are going to position yourself as a thought leader in your industry…an expert. Remember, as a sales person, you know more about your solutions than your prospective clients regardless of their title. You track industry movement and trends…much more than the users of your products. This approach sets you on your mission of providing value with the goal of positioning yourself as an expert in your space. This will lead people to want to be associated with (or linked) to you.

The first step is to review your profile page on LinkedIn. What message is conveyed to someone who is reviewing your profile? This is where many sales people get stuck. They try to use their LinkedIn profile for multiple purposes…network with friends (save that for Facebook), leave the door open for a job search, and business development. That approach doesn't work as there is no clear message as to why you are on LinkedIn or what you seek to accomplish.

If your plan is to use LinkedIn for lead generation or business development, your approach should be linear. Your profile and recommendations should clearly position your role in your industry. Since you are not using LinkedIn, in this instance, for a job search, there is no reason to list jobs that don't reinforce your expertise. Provide only the information that helps paint the picture for the impression you want profile visitors to have of you.

When writing your bio, don't shoot for length…aim for focus. A one-paragraph bio that positions you in your industry as an expert is the goal. In this instance, people don't care about your personal information. If you aren't sure your bio conveys the desired message, have your peers read it and ask what message they derive from it.

Testimonials are very important. Your company probably has plenty of references for its product, service, or technology offering. However, your LinkedIn testimonials should be about you. What value do your clients receive by working with you? How do you support their account? Invite those whom you have earned the right to request a testimonial about their experience in working with you. The goal is not to get them to write that you are a sweetheart, but rather the results they received from working with you.

Remember, your profile serves as the foundation for everything else you will do on LinkedIn. All roads lead back to this page.

With your profile developed, the next step is to join groups. Again, the goal is to be linear. As a free member on LinkedIn, you can join up to 50 groups. It may seem like a lot, but you'll be surprised how quickly you use them. Using the search function at the top of the page on LinkedIn, search for groups using keywords that will show where your target clients are. If you are in employment screening, you may want to search on security, security professionals, small business, human resources, human resources professionals, etc.

The search will return a list of groups shown in order of number of members with the largest groups shown first. Join the largest ones, right? Wrong! How can you be visible with 50,000 members? You'll get lost. Ideally, join groups that have between 1,000 and 5,000 members. At that size, the group has enough mass to justify your time investment, but is not so large that you can't make yourself visible.

Once you are accepted into the group, there are a number of things you can do. Remember, your mission is to provide value first, not seeking to get buyers. Review the active discussions and participate in those where you can provide key insight. Resist the temptation to hawk your product here. Value first! (A suggestion…compose your responses using Word so you can spell/grammar check what you have written. LinkedIn does not have that functionality.)

You can also create discussions in groups. Don't create discussions that directly map back to the sale of your product. The group members will blast you for that. Use this opportunity to get key insight into the challenges that your buyers are experiencing. If you sell for a risk mitigation firm, you could create a discussion around the H1N1 pandemic and how organizations are handling this issue.

When people participate in discussions, their photo and link to their profile page are provided next to their comments. (Now, you see why your profile page is so important.) When readers are intrigued by comments, they research the author. When you are engaged in online discussions in a group, you can invite the member into your LinkedIn network. (Don't use the LinkedIn invite template…craft your own message.)

Once the members are in your network, you have a number of ways you can communicate with them. Remember, focus on value in every interaction. Want to learn more secrets to using LinkedIn for lead generation, get my FREE LinkedIn tipsheet.

Note. Before embarking on this journey, be sure to review your company's social media policy and/or check with your manager for approval.

The Sales Person's Kryptonite…The RFP!

RFPs can leave you feeling powerless. Before you decide to respond to your next RFP, read this article. You can regain the power!

Superman, as strong he is, is paralyzed by kryptonite. It brings him to his knees despite his superhuman strength. Sales people have their own kryptonite called RFPs, the dreaded Request for Proposal. An RFP process doesn’t have to be kryptonite. Superman has no choice but to fight this nemesis to survive. Unlike Superman, sales people have choices.

For one, there is no law that says you have to respond to every RFP that crosses your desk. You have the right to say no. Some of you are now thinking that I’m insane, but it’s true. Let me turn the tables on you for a moment. The definition of insanity is repeating the same thing over and over again and expecting a different result. If you aren’t the low price provider and you have no relationship with the prospect, how can you possibly win the business? You can’t and won’t. Therefore, sending in countless RFP responses under these conditions will yield nothing but losses. So, who’s crazy now?

Sure, when the pipeline isn’t as full as it should be, it is a natural reflex to want to pursue every RFP you can get your hands on. Yet, filling out an RFP is work. It also has a cost to both you and your company. While you are working on an RFP which you have little chance of winning, you aren’t prospecting for business that has a much higher chance of award. Look, we all get the same number of hours in our day. What you elect to do with yours determines whether or not you are successful in sales.

A couple of things you should know about RFPs. First is that there is a disconnect between Procurement and their customers (called users). Often times, Procurement authors the RFP and establishes the measurement criteria for evaluating the submissions. However, when you speak to the actual user, they say that the criteria developed by Procurement is inconsistent with their needs. Thus, a supplier is selected for a user based on flawed criteria.

Another thing you should know is that an RFP is not necessarily a commitment to make a change in provider. Some companies require that they source the business every x amount of time. Ever wonder how that RFP got in your inbox? Procurement will surf the web and pick a handful of providers to whom they will send the RFP and off it goes. It helps to know that Procurement folks are measured on their ability to reduce cost to the company. Just like a sales person’s scorecard is based on achievement of their sales quota, Procurement’s quota is based on cost reduction. The RFP that arrived in your inbox could very well be their attempt to put the squeeze on the current provider so they can show a 10% savings. Don’t kid yourself. This happens a lot!

One final thing you should know about RFPs is that they are sometimes used as a manager tactic. For example, some people are too nice to tell you “no,” so they hide behind the statement that their company only buys through the RFP process. Don’t buy that for a second. No company exclusively buys this way. Even the Federal Government, who is the most formal buyer, does not limit their purchasing to this means. Sales people, present company included, sell products and services to the Feds without an RFP being issued. It can be done!

There is also a safety net for managers when they buy through RFPs as multiple people are involved in the selection process. If the supplier fails to perform, the finger can’t just be pointed at one person. During your needs analysis discussions, you can often get a feel for who really wants the RFP, the company or the person with whom you are meeting. Don’t underestimate the fear of blame. Many managers try to stay off the radar screen so they don’t want to create risk for themselves.

Dealing with an RFP where you have a relationship with the prospect is the subject of a future article. Keeping us focused on the blind ones, as I said before, you have choices. You could just respond to every RFP. Or, you could just chuck it in the trash. Care for a third option? What if you called the Procurement person and had a conversation that sounded like this,

“Hi, I’m Lee Salz with XYZ Services. I just received your RFP in the mail and wanted to ask you a few questions so I can determine if it makes sense for us to respond. As you can imagine, we receive many RFPs and are very selective when determining to which we will respond.”

With that said, one of a few things can happen. She could give you permission to ask your questions. Or she could say, “Fill out the RFP, or not. It’s up to you.” My vote is to decline any RFP where the Procurement person won’t allow you to ask questions of them. How can you have a fighting chance to win if they won’t speak with you?

With permission granted to ask questions, what is it you need to know to decide if it makes sense to participate in this process?

  • How did they get your name for inclusion in this process?
  • Why is this RFP out now?
  • Have they definitively decided to change providers?
  • What criteria will be used to score the RFPs?
  • What are the steps of the process after the RFP is submitted?

Sure, there are a ton of other questions you could ask, but this information will best help you to determine if you have a chance at winning this account. The rule of thumb is that the less information Procurement shares, the lower your chances  of winning the account.

Yes, walking away from the mega-deal is hard and painful. But is this deal real or simply a mirage? Watch any Superman movie and you will see that he overcomes his kryptonite peril. Will you overcome yours? By the way, if you are a finalist resulting from an RFP submission, send me an email and ask for my Finalist Preparation tip sheet.