Comments from the author and his trusted readers about sales, selling, marketing and the like.

Friday, June 20, 2008

New Sales and Marketing Loudmouth Site

Some of you are already aware and others continue in blissful ignorance that there is a new home for this blog. The new site is http://www.salesandmarketingloudmouth.com.

The web site allows for more flexibility than this blog format and should be an overall better experience for both author and readers. Thanks for moving over with me and becoming a subscriber to the web site.

This will be the last post to go up on this blog and the last feed to go out so don't miss a thing and bookmark the new site right away!

Tuesday, June 3, 2008

Look Inward for Solutions

In 1988, Michael Jackson wrote and performed Man in the Mirror with the following refrain:

I'm Starting With The Man In The Mirror
I'm Asking Him To Change His Ways
And No Message Could Have Been Any Clearer
If You Wanna Make The World A Better Place
(If You Wanna Make The World A Better Place)
Take A Look At Yourself,
And Then Make A Change
(Take A Look At Yourself, AndThen Make A Change)
(Na Na Na, Na Na Na, Na Na,Na Nah)

While Michael certainly wasn't talking about sales effectiveness, his message is salient. As a lot, I find sales people to be less than introspective when it comes to figuring out what goes wrong when sales don't materialize.

"Why didn't we get this business, Mark?"
"The customer decided not to proceed with the purchase." (re: out of my control)

"Jill, to what do you attribute the loss we experienced on the Gerber account?"
"We didn't fit the specifications." (re: not my fault)

"Bob, we usually get a piece of the Northside business. What happened in June?"
"The client said we were too expensive." (re: my sales manager is an idiot)

During the last fifteen years that I've been working with account managers, I can honestly tell you that there has never been a single time that an account manager said to me anything resembling this:

"I think I blew this one, Tim. The customer gave me every indication that we were okay but I didn't ask the specific questions that would have revealed an unspoken objection. Unfortunately, I was just off my game and it cost us the business."

Why haven't I heard this confession? Certainly, we can all agree that something like this has been true at least once during the last fifteen years! Here are some reasons that I've come up with:

1) Sales people typically have big egos and admitting mistakes or failures is difficult for their personality types

2) Most sales managers don't create an atmosphere in which this type of admission would be met with understanding and consolation

3) Very few people look inward for solutions to challenges created by human interaction.

The vast majority of all people, not just sellers, look outward and blame circumstances beyond their control or some abherrant behavior by others for less than optimal results in their interactions. e.g. My boss just doesn't understand me; my wife doesn't listen; there's something wrong with my kids (But, I think we can all agree on that one!); etc.

Eventually, those of us who have matured, set aside the need to blame others and begin to look at the man in the mirror. The question to ask is,

"What can I do differently next time to get a better result?"

Wishing and hoping that the other people involved in our sales transactions will do something different is foolish and unproductive. The only person's behavior of which you have control is your own.

We all know that and yet we find it difficult and painful to admit that we must change our own behaviors in order to get different results. When we begin to know that - to really know that - we can begin the introspection required to make some changes.

Sellers who learn to admit that losses are influenced by their own behaviors and are sometimes their fault entirely will develop additional selling skills through introspection. This sort of emotional maturity is not only refreshing in an account manager, the growth in skills associated with this development allows a seller to work with and persuade a much larger group of people.

So, if you want to be a better seller, start with the man in the mirror and ask him to make a change.

Tuesday, May 27, 2008

Powerful Word Combinations and Not So Much

When I was coming up, Steve Martin was the comedian to which every guy was listening. (Now, my son and his friends are equally obsessed with Dane Cook). Steve Martin made us laugh just by the way he told his stories.

"Just landed the new company vehicle at the airport last night. . .

(crowd roars)

. . . yes, it's hard to land a station wagon at the airport."

His trick wasn't always the content but the word combinations he chose. A lesson learned by Dane Cook:

"Never, ever leave your shopping cart while you are in the grocery store. Someone might walk in - see your stuff. . . 'Jackpot! This is exactly the sh** that I wanted.'"

Both comics have hand picked the right words that surprise and delight us. In the Steve Martin example, he understood that a "station wagon" is much funnier than "car". Dane Cook's use of the word "jackpot" conjures up the sense that the shopper has won Mega Millions.

While most of us will never produce a comedy album, we would do well to understand the critical importance of our word combinations. Just like an audience at a comedy club, your prospect or customer responds to the words you choose to convey your message. One expert at this subject is Tom Freese, author of Question Based Selling (http://www.qbsresearch.com/).

Tom suggests that when you reach a prospect you ask,

"Did I catch you at a bad time?"

Most people will respond that you didn't catch them at a bad time because people are inherently helpful and will try to make you feel comfortable when it appears that you aren't. If the prospect responds that you did catch them at a bad time, Tom recommends that you say,

"I'm sorry about that. When would be a good time to call?"

When the prospect tells you what time to call, you have an appointment!

Word combinations in sales have been a topic for decades, of course. We all know to say, "Would you prefer black or green?" instead of saying, "Which color would you like?" Perhaps, less discussed are the word combinations that decimate your progress and leave you stranded with nowhere to go.

In my business - radio advertising - sellers will typically submit a proposal according to specifications requested by a media buyer. Then, they will call the media buyer numerous times in an effort to make sure that their proposal is included on the "buy".

Following up on proposals that we've made is a necessary and critical part of all sales. Doing it like this is the kiss of death:

"Hi Pam, it's Tim from 105.1 The Frog! How are you?"

"Fine."

"Great, great. Listen, Pam, I was calling to follow up on the proposal that I sent for the Circuit City buy."

"Okay."

"Did you get all the pages?"

"Yeah, I think so."

"Okay, yeah, good. So, what do you think? Does it look okay?"

"I haven't spent much time with it but it looks okay."

"That's great. Okay, thanks a lot. Do you have any questions?"

"No."

"Okay, thanks a lot. Talk to you soon."

Sellers are always calling to follow up, or check in or touch base (or even touch bases here in the South). If possible, I would completely ban the use of all of these worthless word combinations. In our example above, the seller has made a phone call that has zero value to the recipient and has received nothing of value in exchange.

Here is another approach:

"Hi Pam, it's Tim with 105.1 The Frog!"

"Hi"

"I know you are busy working on the Circuit City buy and I am confident that you received my entire 6 page submission. The reason for the call is that since the time I sent the submission over I have discovered new information that indicates my radio station is even better for Circuit City than I thought!"

"Really?"

"Yes. It turns out that my listeners are 40% more likely than the market average to purchase at least $1,000 worth of electronics per year. Would you like me to send this research to you?"

"Please do. The client is really looking for this advertising schedule to impact their Father's Day sale and anything you have in the way of research will help us make the right decisions on whom to include on the buy."

"You got it. As you know, our promotional team spent quite a bit of time working out a specific program that ties in with the Father's Day plans of the client. Did you have any questions about how the promotion will work?"

"No. What you wrote seems pretty clear. Did we need to buy your proposed schedule in order to get the promotion or can we trim it back?"

"In order to get the full benefit of the promotion, the station requires a purchase of at least the amount I proposed."

"Okay. We should have this wrapped up in the next couple of days."

"Great! Thanks very much. Please call me with any other questions. This business is important to the station and to me personally."

"Okay. Thanks for the call."

In this instance, the seller has added value to the process by having "new information" that is relevant to the process. The buyer is interested in the information because she is trying to do the very best job for the client. The seller earned the right to have a meaningful conversation because of the research he has done on behalf of the client. As a result, he gets to include powerful word combinations about A) how his promotion ties in with the marketing objectives of the client, B) the required financial commitment and C) the importance of the business.

Regardless of the industry in which you sell there is never an appropriate time to call the prospect or buyer without bringing relevant information to their attention - whether it's new information, a clarification or a reminder of a deadline.

Don't be the person to whom Steve Martin was referring when he said,

"Some people have a way with words and others. . . .don't have way, I guess."

It's a Sales Blogger Universe

The very best sellers are always looking to get even better. In the not too distant past, the best way to do this was to read books about sales and join sales networking organizations. Those are still great ways, of course, but the best way to accelerate your learning is to get on the internet and start to explore the myriad sites and blogs devoted to sales.

That's what I've been doing and I am pleased to recommend Brad Trnavsky's Sales Management 2.0. Brad collects submissions from all comers, culls them down and publishes the very best ones. Check out his Carnival of Sales ( http://www.salesmanagement20.com/profiles/blog/list?pageSize=20) and find out how one blogger has uncovered the sales secrets of The Matrix!

Think times are getting tougher for sellers? Colin Wilson agrees and offers some tips on differentiating oneself from the pack in his blog (http://www.firstborder.com/sales-blog/2008/05/20/time-to-differentiate-yourself/).

Sales is about human interaction - the art of finding those who might be interested in your products and services, getting in front of them and persuading them to your point of view. As society shifts and evolves, the challenges for sellers change and the approach needs to change, too. Staying on top of the latest thinking is not a luxury for today's top sellers, it is a necessity.

Wednesday, May 21, 2008

Building Relationships

Ask anybody and they will tell you that the ability to build relationships with key decision makers is a critical sales skill. Regretably, sellers hide behind this concept more than any other to disguise the fact that they are either wasting time or have no idea how to move a sale forward.

More time is wasted in the alleged pursuit of "building relationships" than any other sales step.

"Why are we making this sales call, Bill?"

"We're going to find out a little about their needs for next year and take the time to build the relationship a little."

"Certainly, there's value in building the relationship. Can you describe for me how we are going to do that on this call?"

"I thought we would spend some time talking about his family and invite him to play some golf with us."

"And this will build a relationship with him?"

"Well, it's a start. I mean, in order to build a relationship we are going to have to spend quite a bit of time with him and get to know him."

"What if we spend all this time building a relationship with him and it turns out he doesn't like either one of us? What if he likes us but doesn't really want to do business with us? In what way can we be assured that building a relationship with this guy is going to make a difference to our company?"

Don't get me wrong. It's true that people do business with people they like. When everything is equal, a buyer is going to buy from someone that has established themselves as a trusted resource.

To me, the relationship that you want to be building is one that indicates that "everything" is not equal and there is no need for a tie breaker. The way to do that? Establish a value for your product that exceeds the value the prospect assigns to your competition. I guarantee that this will trump the occasional golf game or tickets to Seinfeld.

To establish a value for your products you must start doing business with a prospect as soon in the relationship as possible. This has multiple advantages:

1) The relationship that you are building is focused from the beginning on the business that you do together. Relationships built on this foundation are stronger and more long lasting. (This may seem counterintuitive until you consider that companies almost always do business with your customers long after you leave the company)

2) You always have a reason to call or get together and build the relationship because of the business you do together. Who wants to keep getting calls from strangers asking them to get together for drinks or lunch or the ball game?

3) The business you do together automatically gives you permission to build relationships throughout the organization. If you didn't do business, the only relationship you would be working on would be the one with the key decision maker. Sounds okay until the key decision maker is transferred and the junior executive, whom you have never met, becomes the key decision maker.

While it's not always possible to do business right away, it often is. Find something small that you can do together that won't require sixteen proposals and four meetings in the executive boardroom. Still not possible? Maybe you are committed to a charity and you can find a way for your prospect to get involved. They could use the project as a way to put their company in a favorable light while you use it to start the critical relationship building.

Worst case scenario? You become a customer of the prospect in some small way.

By all means, let's build relationships with all of our best prospects and let's keep in mind that the reason we want the relationship in the first place is because we want to do business!

Sunday, May 18, 2008

Best Characteristic of a Seller

An interesting discussion broke out the other day about the characteristics of great account managers. Many traits were listed during a brainstorming session and then the group voted as individuals for those traits each thought was most important to being a successful account manager. In the end, we tallied up the votes to see which characteristics were named most often.

Interestingly, being smart or savvy didn't end up getting enough votes to make it a Top 5 candidate. This struck me as odd and I had to spend some time contemplating it before deciding if the group was correct or if they didn't recognize the trait in themselves and therefore decided it lacked importance. After all, if one thought of oneself as being a great account manager but knew from experience that one was more likely to get a call from Are You Smarter Than a 5th Grader than from Jeopardy!, one might not want to agree that smarts plays an important role in selling.

Perhaps, being smart is more important in some sales jobs than in others. The group with whom I had the discussion sells advertising and although product knowledge can be complicated in the advertising business, its understanding doesn't require a mensa candidate. A friend of mine sells pharmaceuticals and I think he is smarter than your average bear and probably needs to be smarter than an advertising account manager. Maybe, the amount of intelligence a seller needs is directly proportionate to the smartness of his prospects. If you call on doctors, you need to be able to keep up your end of the conversation!

The characteristics the group thought were most important included the ability to be social/friendly or a good networker, strong product knowledge, understanding client's needs, high degree of honesty/integrity, persuasiveness, determination and passion. Of these, the one characteristic that I believe is the best indicator of an account manager's likely success is passion.

Nobody persuades like the passionate story teller. Take the television evangelist, for example. He whispers and he rants and he cries and he invokes and people send him money. The purpose of the money? So that he can afford to continue to appear on television and persuade viewers to send him more money.

Another great example of a passionate story teller is the politician. They need your vote and your money in order to make the world a better place! Without your support, the people will not have the advantage of their wonderfulness.

When a prospect has been qualified, only the passionate believer will have the drive to get an appointment with the decision maker despite multiple setbacks. Only the passionate believer will then have the courage to stand on the prospect's desk and shout, "Wrong!" when the prospect foolishly attempts to suggest that the seller's product isn't right for them. Only the passionate believer relives his failed sales calls with his wife and children at the dinner table and only the passionate believer wakes up in the middle of the night with an idea that gives him another valid business reason to call the prospect.

Yes, give me the passionate believer and watch us blaze across the sky in a flaming chariot of success!

Tuesday, May 6, 2008

Don't be incredible

Sellers expect that the credibility they seek originates with complete knowledge about their own products. Many times, they think that a great elevator pitch or the ability to wax poetic about the features and benefits of their products will cause a prospect to swoon. While a lack of knowledge about one's own products would certainly deem you not credible (incredible?), the opposite doesn't build credibility so much as it keeps you in the game.

The only way to build credibility with a prospect or customer is to demonstrate knowledge about their products and services. The days of asking for and receiving an appointment for the purpose of doing a Customer Needs Analysis are over. Prospects and customers expect you to know about their business before you walk in the door.

This doesn't mean that you have to be as expert as they are and it doesn't mean that you need to do a 100 hours of research to get up to speed. What it does mean is that you shouldn't be surprised by information that was available to you in a news story or that is detailed in a press release on the customer's website.

The modern sales call begins with the seller double checking his research for accuracy.

"This is what I learned while doing my research. Are these initiatives your most important?"

This approach takes one's credibility from zero to something and has the added benefit of kickstarting a series of questions that serves as one's Customer Needs Analysis.

Do you want to take your credibility up another notch in the same meeting? Brainstorm a couple of ideas before you get to the meeting. If you get the answers you're looking for from the prospect regarding their most important initiatives, go ahead and let them know what you're thinking. Always couch the idea as "half-baked" or "partially formed" so if the prospect doesn't think it's for them, they don't a) dismiss you entirely and b) think that the idea you're mentioning is your best possible work.

Sellers always start from a position of zero credibility with prospects. At the first possible opportunity the professional account manager must move that needle at least one tick in the upward direction.

Monday, May 5, 2008

Persistence without Value

There is a lot of data available for sales people to justify their persistence. Sales trainers quote facts such as: Most sales are made during the fifth or sixth sales call but most sales people give up after three. When sales managers interview they want to hear candidates describe themselves as persistent and determined.

"I never give up."

"I am relentless."

"My persistence is more persistent than your persistence."

But, what is it like to be on the other side of that equation. How does the prospect feel when a sales person keeps coming after them like a bull in the streets Pamplona? Maybe my experience can shed a little light.

I was selling radio advertising in Charlotte for an Oldies station. We did a great job of reaching adults 30-60 years old. Most of our listeners were homeowners in the acquisition stage of life. We knew that they bought furniture, electronics, children's clothing, etc. I was monitoring one of the other stations in town when I heard Eastside Lawn and Patio advertising their outdoor furniture and accessories. I decided to drop in while I was out seeing other customers.

Upon arriving, I took a quick tour around the store to familiarize myself with the merchandise. When a sales person approached, I asked the name of the manager. Bob was the answer and yes he was in charge of making the advertising decisions. While I had a salesperson handy, I confirmed my suspicions about the target market and asked if they were happy with the current advertising on my competitor. The salesperson wasn't sure but Bob was right over there and good luck.

Bob disappeared around a corner before I could get to him and his administrative assistant told me that he was too busy to see me right now but go ahead and drop off any information I would like to leave. I left a basic media kit that described our station and the audience it delivered and left. Later, at the station, I called to speak with Bob so that I could get an appointment. Bob was not available.

Bob wasn't available the day after that or the day after that. The tricks of the trade started to make their appearance. I called early and late hoping to catch Bob answering his own phone. I stopped leaving messages so that it wouldn't appear that I was calling every day. I dropped in at least once a week. Many times, I saw Bob just out of reach but he always instructed the gate keepers to give me a stiff arm in the chest.

Apparently, Bob just didn't get that I could help him grow his business. I knew it as well as I knew anything. He was a qualified prospect that was already convinced that radio advertising worked. All of my training told me that I must never give up on this guy.

Then, one day Bob is on the showroom floor and he is all alone. Before he knew what was happening, I had snuck up on him, "Hi, Bob, Tim Rohrer with Magic 96 radio. I would love to speak with you about ways that we can help your business grow."

I couldn't believe it! Bob was inviting me back to his office. This was it. I was going to tell Bob all about my station and the dozens of clients that we had helped achieve their marketing goals. I would do a needs analysis and customize a program for Eastside Lawn and Patio! I sit down where Bob indicates and he says,

"You know, you're getting to be a real pain in the ass."

Uh, this wasn't going as I envisioned.

Back at the station, Chuck told me that it was a good thing that the prospect called me a pain in the ass. But, even then, I knew it wasn't good. Unfortunately, I didn't know exactly why until many years later.

Prospects don't always want or need to change vendors. A qualified prospect may meet your criteria, but your company may not meet theirs. That is true whether you are selling advertising or furniture or envelopes or computer networks. When a prospect perceives no reason to choose you, it means that you have not established the value of your product or service.

While it doesn't feel good to admit it, persistence without value equals "pain in the ass".

Monday, April 21, 2008

Your Name is Your Buzzer

By now, all of us have been to a restaurant, coffee bar or smoothie place that asks for your name when you place an order. At first, this seemed like an innocuous trend. A friendly way for each of us to get to know each other a little better. You're not a number at Starbucks, you're a name for gosh sakes!

But, the usefulness of this little practice has outlived its cuteness and it's time for us to say enough is enough.

I was in a new smoothie store not too long ago. The place wasn't very crowded. Let's see there was one, two. . . two of us in the store. Me and a very old man in front of me. The old man was trying to order a smoothie for himself and his grandson. His adult daughter was nearby. After staring at the menu board and trying to figure out what all the symbols and signs were trying to tell him, the old man told the teen boy behind the cash register what he wanted. Then the trouble began:

Teen Boy: What is your name?

Old Man: Huh?

Teen Boy: Your name?

Old Man: (blank stare followed by a desperate look at the menu board followed by a desperate look towards his daughter)

Daughter to Teen Boy: What do you need?

Teen Boy: I need his name for the order.

Daughter: Why do you need his name?

Teen Boy: I have to put a name into the computer or else I can't total the order.

Daughter: Oh, his name is Martin.

About mid-way through this exchange I fantasized about leaping over the counter and stuffing Teen Boy's head into a blender. The poor man is having trouble! Just put any name into the stupid computer and stop the madness, Teen Boy!

Of course, the idea behind getting a name for the order makes sense. Since there will be a lag between the time the order is taken and the time it is served, the server will need to be able to identify who ordered what. Rather than yelling out "Double Orange Mania", the server will call out your name. Since two people may have ordered the same Double Orange Mania but are unlikely to have the same name, this should help avoid confusion. But, the practice of asking for the name and using the name to distribute the orders is cumbersome, unreliable and feels invasive. My wife and I were recently at Panera Bread and witnessed this exchange:

Cashier: "And what is your name please?"

Asian Man: "Excuse me?"

Cashier: "Your name please."

Asian Man: (after conferring with his three Asian companions) Jin Sung

When the food was ready at the far end of the counter, the preparer yells out, "Jim." The Asian customers are standing nearby but don't respond to "Jim" because the name they gave was "Jin". Noticing that "Jim" is not claiming his food, the preparer gets on the microphone and says, "Jim, your order is ready. Jim." Meanwhile, the only men (and therefore the only possible "Jim's") standing near the counter are the Asian guys. For reasons known only to themselves, the preparers do not engage the customers in an actual conversation. Instead, they periodically get on the microphone desperately seeking Jim.

Frankly, I'm surprised that some genius hasn't decided to differentiate their operation by asking for a customer's favorite color. "Order ready for chartreuse. Chartreuse, your order is ready."

Can we please stop with the nonsense and get back to a system that worked perfectly well - numbers? Personally, I'm not offended (and I don't know anyone who is) when a bakery or a busy store asks me to take a number upon entering. In fact, I find comfort in the fact that there is an actual system for identifying which customer belongs to which order. A system which is accurate, easy to use and provides very little room for confusion. A system that wasn't broken and didn't need to be fixed.

So what if the person behind the counter doesn't call me out by name. I'll get over the fact that we aren't likely to become best buddies.

Tuesday, April 15, 2008

The Clarifying Question

My wife hates it when I talk to telephone sales people. She thinks I'm rude and she would rather that I just didn't answer the phone at all instead of being rude to the working stiff on the other end of the line.

But, I'm not rude. I'm giving the seller an opportunity to sell me without being a complete pushover. I am testing their skills so that I can write about what works and what doesn't and educate those sellers interested in learning about the trade. Rude? For goodness sakes, I'm doing the world of sales a favor!

So, anyway, we receive a call and the caller ID says it is from Duane Reade. I knew it was a solicitor because we had ignored this same call on a couple of other occasions. But, needing to do the world of sales a favor, I answered the call.

"Hi, is this Tim?"

"Yes, it is."

"Tim, my name is Joe from Golf Digest. How are you doing today?"

"Fine, Joe." (Sometimes I say, "Do you really care?" but my wife thinks that is rude and she might be right.)

"Good. The reason for the call is to make sure that you are receiving your Golf Digest and that you are happy with the magazine."

(Another version of the "I'm not really calling to sell you anything" approach. Potentially annoying. Does any reasonable person actually believe that an automatically dialed phone call is coming from the customer service department of a magazine? If you don't want people to be rude to you (which I wasn't, of course) perhaps you shouldn't assume they are stupid.)

"I am happy with the magazine."

"That's great! I'll tell you what we are going to do. We are going to upgrade your account to 'preferred' and offer you our best rate of $1.88 per issue for renewing. How does that sound?"

"No."

"Excuse me?"

"I said, no."

"You don't want to renew?"

"No."

"Alright then. You have a nice night."

With that, Joe was gone. But, he shouldn't have been gone. Joe got confused by my first 'No'. Mainly because it was out of context. He didn't ask me a yes/no question but got a 'No' anyway. He asked me, "How does that sound?" Naturally, he was expecting me to be excited about achieving 'preferred' status and to say that "it sounds good". When I said, 'No' I threw him off his script and he didn't know what to do.

So, Joe made a fatal mistake and he assumed that he knew what my 'No' meant. He offered me the reason I said 'No' by saying, "You don't want to renew?" He should never have done that because he has now made it really easy for me to agree with him that I don't want to renew.

When a customer throws you off by answering one of your questions in a way that doesn't make any sense, you must get clarification of what is going on! For all Joe knows, I could have been saying 'No' to one of my rude children asking me a question while I was on the phone. Criminy! Is his training so bad and his reliance on his script so rigid that he just collapses when the customer refuses to play along?

How 'bout you? Is your training that bad or your reliance on a script that rigid?

Here is what Joe should have done after my initial 'No'.

"Tim, you just said 'No' to a question that isn't really a yes/no question. Was that 'No' directed toward me or someone in the room with you?"

"That 'No' was directed towards you, Joe."

"Okay. I'm a little confused. You like the magazine. I just offered you our very best rate to renew and you said 'No'. Why would a person say 'No' to renewing at our very best rate if they are happy with the magazine?"

(If you are thinking that you would never have the courage to go this direction with the conversation then you must get out of sales immediately! This is a simple clarifying question that must be asked.)

"Simple, really, Joe. I ordered a one year subscription of the magazine and I have received two copies. That means that I have ten months left before I need to renew. I never renew subscriptions until the subscription is about to expire."

"I understand completely and it makes sense. Here's the deal, though. We will never be able to offer this rate again. So, by renewing early you will get the very best deal and you will be locking in the very best deal for as long as you want. Even though you have only been receiving the magazine for two months, you have already experienced our award winning columnists, stroke-saving tips and interviews with the world's best golfers and most influential golf course designers. As an avid golfer, I know you wouldn't want to give that up and as a smart business man you wouldn't want to pass up the savings being offered today. Would you prefer to extend your subscription for one, two or three years?"

When prospects throw you off, don't just give up! Fight back with clarifying questions!

Monday, April 14, 2008

The Wisdom of our Fathers

My father didn't tell me a lot about how to succeed in business. Maybe, he wanted me to learn on my own. Maybe, he didn't really know so he chose not to advise. Either way, when he did dispense advice it was rare. Perhaps, that is why I remember it all.

I was managing a Domino's Pizza store out of college. This was a great job. One that I wish everyone could have so they would understand what I'm talking about. Try to picture what it was like. I worked in the store from 3p till about 3a six days a week. The majority of that time was spent making pizzas and ensuring they were delivered within 30 minutes of the order being received. On my day off and during other available times, I was recruiting delivery drivers or meeting with my boss or going to training classes or doing some field-level marketing to goose the sales. I was responsible for every aspect of running the store with the exception of paying the bills. A finer business education was not available at any price and they were paying me!

The store was beginning to really hum. I won a couple of awards and sales were up. I imagine that the cockiness was apparent in my voice the next time I spoke to my Dad.

"So, you think you're a pretty good motivator, Timmy?" (My Dad is one of only two adults who ever called me Timmy once I was past the age of 15)

"Yes, I know I am."

"Well, how many people do you think you can motivate?"

"I'm not sure I follow you. How can I put a number on it?"

"I already know the number. I'm asking you what you think it is. Can you motivate ten people or a hundred or a thousand?"

"Dad, I am sure that I can motivate a roomful of people. Put me in a big enough room and I can motivate ten thousand people."

"Ten thousand?"

"You know what, Dad, get me on TV and I can motivate a million!"

"That would be pretty good if you could motivate a million people. But, the answer is exactly one."

"One. Which one? What are talking about?" (Listening back on this conversation, now, as I play it in my mind I imagine my voice as more than just a little irritated.)

"There is only one person that you can motivate and that person is yourself. You can not motivate anyone else to do anything."

"I see what you are saying, Dad. But, I don't agree. There is no question that every single day at work I am getting people pumped up to do their job better. I do this by setting a good example of what a hard worker looks like and by having a positive attitude. I am able to convey my positivity to the other workers and motivate them to do a good job."

"You are no doubt setting a good example and being positive is great but I am telling you that the only person that you are able to motivate is yourself."

I was in my early 20's at the time and probably couldn't be told too many things by too many people. After all, like yourself, I pretty much knew it all back then. Luckily, experience has a way of teaching us that there was more to learn and it was many years later that I learned the wisdom of what my father was saying.

Motivation comes from within. Individuals who want to achieve goals establish them for themselves and then they set a path to achieve those goals. When we witness people exhibiting behavior that is consistent with their goals, we say they are motivated. But, the goal that a person wants to achieve - one that he is motivated to achieve - is always determined by that individual. As a result, it is the owner of the goal that is able to motivate himself and no one else.

For sure, the sales manager may set a goal that is also consistent with the seller's own goal and the seller will be motivated to achieve that goal. But, the motivation did not come from the sales manager. Imagine a scenario where the seller wants to break the record for most sales in a month. The sales manager offers an incentive to the entire team. The seller who breaks the monthly sales record will earn an additional $1,000 and a day off! The sellers who already care about being the record holder will have an added incentive to achieve that goal. But, the sales manager didn't motivate them to become the record holder. The sales manager simply provided an incentive for the motivated sellers to marshall their efforts during a certain period of time. When someone breaks the record, the sales manager will ask which of the two incentives provided the necessary impetus for their amazing achievement.

The seller might say, "Well, I didn't really care about the day off since we are paid on commission."

The sales manager decides that a $1,000 award for breaking the record provided the necessary motivation and establishes a permanent incentive of $1,000 for anyone breaking a monthly sales record. The sales manager is surprised when the record isn't broken the next month or the month thereafter. After all, the first time the record was broken it was because of the $1,000, wasn't it?

Records are never broken by the unmotivated but they are broken all the time by those not incentived.

Of course, sales managers, coaches, teachers, parents, etc. have a role in motivation. Their job is to create an environment in which the motivated (seller, athlete, student, child, etc.) stays motivated.

While my Dad was technically correct about the number of people any of us can motivate. The truth is that the best sales managers are motivational. They foster positivity and they remove obstacles. The best sales managers are motivated to assist sellers in the achievement of their goals and for a great seller there is nothing more motivating than that.

Friday, April 4, 2008

The Confidence Provider

People who sell can tell you when a sale has been made or not made long before the customer says "yes" or "no". They know when they are getting through to someone. When the target of their persuasion is beginning to come around.

People who can sell know that a sale is a transfer of confidence.

Consequently, sellers must have a great deal of confidence before they can make a sale. Confidence in what?

Confidence that their product or service will do what the brochure says it will do.

Confidence that the support people that need to make certain things happen will make those things happen.

Confidence that the company is going to continue to stand behind its product and always do the right thing.

Confidence that his next paycheck isn't going to bounce.

Confidence that the web site is going to be up and running when he gets in front of the customer and needs to make a demonstration.

Confidence that the airline is going to get him to the meeting on time.

Confidence that the boss is going to approve the terms he needs in order to make the deal happen.

Confidence that his car is going to start and that his favorite suit will be clean and that the top button of his shirt is going to be repaired by the dry cleaner like they said it was.

Confidence that he'll order the right thing at lunch even though he has never had sushi before.

Confidence that his wife will still love him even if his sales are "below plan" this month.

If it sounds as if sales people are pretty needy, you're beginning to understand the necessary role of the sales manager. (And you thought it was to project forecasts accurately.)

Thursday, April 3, 2008

The Lies of Our Fathers

Did you grow up with the big lie? I did. My father told it to me many times and here it is:

"You can be anything and do anything that you put your mind to."

I believed this for the first 17 years of my life before cracks started to form in both the logic and the sensibility of this assertion.

In high school, there was no one on the track team that trained harder than I trained. My specialties were the long jump and the triple jump. These were chosen because I mistakenly believed that there would be a limited amount of running involved. Regardless, I pushed myself through it, knowing that every wind sprint would strengthen my legs. The legs that would propel me over a massive distance and help me land successfully in a giant pit of sand. After the running, there was jumping. Jumping for distance. Jumping for height. Hopping on one leg around the track. Hopping up the stadium steps. There was weight training and stretching. I read books about jumping and mastered the techniques necessary to fly as far as possible. When the meets came, I broke out my 100' tape measure and marked the exact distance I needed to run to hit the board in precisely the right spot. My jumps were pure and clean and beautiful and, usually, good for second or third place. First place? That went to the guys who could flat out fly down the runway and throw themselves into the air. Technique? No. Measurement of their approach? Heck, no. Beautiful and pure and clean? No, no and no. Better than me? Yes. Normally by more than just a little.

No one could deny that I had put my mind to it. But, I was not the high school track star that I wanted to be.


Later, perhaps in my 20's, I was sure that he was wrong, wrong, wrong and the knowledge of his wrongness made me feel lied to and angry.

What if I wanted to be an astronaut?

Sure, as long as you put your mind to it.

Wrong! I get sick on the TeaCup ride at the county fair. There is no way that I would make it in one of those centrifuge spinners. Astronauts can not throw up when they experience a couple of g's, Dad.

In my 30's, I knew he was wrong but I had forgiven him for the lie because I knew that it was a form of encouragement.

What if I wanted to be a professional golfer?

Sure, if you put your mind to it.

Dad, I appreciate it but you and I both know that I don't have enough golfing talent to become a professional. I could practice all day and all night and, although I would get better, I would never get good enough to make a living on the professional golf tour.

You don't know that.

I'm in my 30's now, Dad, and I do know that. You know what, it's okay. The professional golfers could try as hard as they want and not be as good as me at what I do professionally.

Now, in my 40's, I still know he was wrong but I have a new philosophy about the wisdom of the lie. Believing that we are capable of more than what we've experienced so far is intrinsic in our ability to achieve more than what we've achieved in the past.

Do you think I could run a marathon?

Sure, if you put your mind to it.

So, I did put my mind to it a few years back. Until that time, I had run several 10k's in my time but never a marathon. I developed a training program. Bought some decent sneakers. Started running. After a couple of months, I was running for nearly two hours straight. Pretty decent progress and I still had a couple of months to go before the marathon. I decided to enter a half-marathon. I was ready for the half and felt good on race day. Two hours and twenty minutes later, I had finished my first half marathon. A couple of days later I got sick and stayed sick for six weeks. Coughing, weezing. Went to the doctor and got some strong decongestant but it didn't help much. Eventually, had to get an inhaler and a steroid. Finally, I was better but had lost nearly two months training time. I decided to put off the marathon.

After a couple of months of not running, I decided that I could still do a marathon if I put my mind to it. Back to the training. The annual half-marathon rolled around and I entered. Two hours and twenty minutes later, I had finished my second half-marathon. Later that day, I couldn't walk. The next day was worse. Turns out that I had a stress fracture in my right shin. The anterior shin muscle gave up and the bone started taking on too much of the impact. At least that's the reason my doctor gave me. So, I wore a boot for six weeks. Had to put off the marathon again.

Then, I decided that I could still do a marathon. This time, my plan was to build the strength in my legs through weight lifting and running. I started to work hard on my anterior shin muscles to avoid another stress fracture. After a few months, I ran a 10k without incident. By the time the training regimen had gotten me to 9 miles, the familiar pain was back in my shins and I decided that maturity demanded a re-evaluation of the wisdom of continuing to put my mind to accomplishing a marathon.

So, I never did do a marathon despite putting my mind to it. And the lie of my father reared its ugly head once more in my life. But, now I have another perspective.

If I didn't believe that I could run a marathon, I would never have run a half-marathon. And, you know, a half-marathon is a pretty cool thing.

If I had never tried to be a track star, I never would have long jumped 20'.

If you didn't believe you could earn $500,000 in a year, you may never have earned $200,000. If you didn't believe you could be the valedictorian, you may not have made the grades to get in med school. If you didn't believe the best looking girl in your class would go to the prom with you, you might never have met her friend - your future wife.

By stretching our boundaries, we achieve more. We don't always achieve the original goal but so what. That's not really the point our fathers were trying to make. The point they were trying to make is much better summed up by a saying that my mother had about nearly everything:

"You don't really know unless you try."

Tuesday, March 25, 2008

Short Takes: How to do everything better!

Short Take #1: I am at Publix and the person two customers in front of me at the checkout is writing a check for groceries. They wait until the total is presented and then they complete the check. Then they hand over the check and the appropriate picture ID. The cashier punches in some numbers and then has to wait. And I have to wait.

When will grocery stores and other retailers where folks wait in line to pay for their goods eliminate the check as a form of payment. There are so many other ways to pay that checks just don't make sense for anything other than paying bills at home. Maybe I'm in too big of a hurry or maybe I'm not just the only one sick and tired of waiting for check writers to get with the 21st century.

Short Take #2: Last year, we needed to paint the interior of our home so we asked some neighbors about their experiences, gathered some names, got some estimates and made a choice. The painters came in and did their thing and I paid them on the last day as they were walking out. Big mistake. For the next week, I was finding painting mistakes that were big enough for even my wife to agree that my irritation was justified.

Recently, we needed to have the exterior of our house painted. I went through the same process with the neighbors and the bids and all of that. This time, when the painters were finished, I told the foreman that I was going to call the sales person and have him come back to the house to review the job and receive payment. I called the guy and out he came. After all, I still had the money and, consequently, the leverage. We walked around the house and you know what happened? Daniel found way more mistakes that needed to be fixed than I did. You know why? Because he is the expert and he didn't want to look like a chump when I showed a greater interest in the proficiency of the job than him. The crew will be coming back out and touching up a few spots. Not because I asked them to but because the guy that represents the company in front of the customers needs them to!

Short Take #3: I took the mini-van in to the shop for routine maintenance. As you have experienced, routine maintenance at the dealership takes a while. So, I did what a lot of people are doing these days and brought along the laptop to check some e-mail and read the news, etc. This dealership is one of the big Toyota dealerships in Atlanta and they are all the way up to date with free wi-fi, a cafe, a game area for the kids, etc.

Unfortunately, the building is old and there aren't enough outlets for people like me and you to plug in the laptops. I was sitting in a room with three other net surfers and we had our cords stretched all over the place. One inconsiderate chap (okay, it was me) had his cord stretched across the coffee area and people kept tripping over it. I was excited about the free wi-fi but service places need to actually try being a customer so they can see simple problems like a lack of outlets and fix them. If they think stuff like this doesn't matter, they should realize that my memory of the visit had nothing to do with my car!

Short Take #4: Other than Publix, my home away from home is Home Depot. I am there the other day because I bought some edging for my garden but didn't buy enough. So, I bought two more boxes and took them home to finish the job. I tear one box open and pull out the rubber edging. I stretch it out to warm it up in the sun so that it is easier to work with. I drive a couple of stakes into the bottom of it in order to hold it in position.

That's when I notice that this edging is different than the edging I have already installed. Nuts. I check the other box and that is the correct edging. Now, I have to re-box the wrong edging and take it back to HD. And, I can't find my receipt. The edging is stretched out and doesn't want to go back to its original shape so I end up tearing the box to get it back in. The stakes were in a bag but I ripped the bag open so I toss the stakes into the box. I schlep the whole mess to customer service and say, "I bought the wrong edging and would like to return it. I don't have my receipt."

The answer from Home Depot? "Not a problem. We'll have to issue you a store credit instead of a cash refund since you don't have your receipt."

Wow. I took the card she gave me and went over to the garden section and picked out the correct edging. Can't wait to go back tomorrow for something else.

Sunday, March 23, 2008

Congratulations Mr. Manager, you got the job

You wanted the job and you asked for the job. You interviewed for the job and you pitched for the job. You coveted the job and practically begged for the job. Now, you have the job.

What are you going to do next?

Sales managers, like me, are gluttons for punishment. We are eager for the difficult challenge. We crave the spotlight that comes with the turnaround. We often fail to understand that the reasons why the sales management position is open in the first place is reason enough for us to not want the job.

But, we want it anyway. The key to success in situations like this is to know what to do when you get there. So, here's what you do:

Step #1: Evaluate the talent. Don't take anyone's word for what you've got to work with - evaluate the talent yourself. Probably, you shouldn't evaluate the talent on your own for that matter, you should have your sales talent tested. There are plenty of tests out there and many of them can be had for a small investment. D.I.S.C. is one that works very well but there are others. Get one and make everyone take it. Yes, there'll be bitching but so what. You're the new boss and you get a little leeway before they throw you out with next quarter's bad results. Take your leeway where you can get it and test everyone on the staff.
Step #1b: Drill down into the data. Where does each seller rank on the staff in the key metrics that are important to your industry? What is their tenure? How many customers do they have? Who calls on the most important customers?

Step #2: Observe the skills. Talent is great but you need to see the the place where the rubber meets the road. You've got to go on sales calls and watch your talented sellers use their skills in front of customers. Don't say too much to the sellers. Part of the beauty of Step #2 is that you are beginning to develop relationships with the key customers independent of their relationship with their current account manager. Spend your time talking to the customer. Make sure they have your direct line.

Step #3: Meet with each account manager individually. You have tested them and observed them and now you have something to say. Here's what you say, "I've heard great things about you. I've taken a look at the talent test we administered, drilled down into the data and observed you in front of customers. What do you think I have learned?" What they say next will be very enlightening. Some will say that you have learned they are the very best and you should feel very fortunate to have them on the team. Others will say that their performance has been below par but it isn't their fault because the sun got in their eyes and they tripped over a rock and the former manager made them promises that weren't kept and their dog at their homework. Others might be smart enough to say that they would love to know what you learned and can't wait for you to tell them. Regardless, information will flow and the lay of the land will be revealed to you.

The key to this part: don't say too much.

Step #4: Develop your strategy. You were hired to take the team to another level regardless of whether their current level is good or bad. So, you have to have a strategy for doing that. Now that you know on whom you can count, you can develop a strategy. After you have your strategy, get a meeting with your boss and lay it out. Get some buy in because you are going to need it. Your strategy may include some personnel changes. If so, you're going to need buy in from the boss when you are attacked by the those being asked to walk the plank. Your strategy may include a realignment of territories or accounts. The buy-in is going to be important. Make sure you've got it.

Step #5: Call a meeting and present your strategy. This is the meeting they were expecting on Day #1 but they are getting it on Day #30. Make sure it is damn good. No glitches and no mistakes. This is the meeting where you let them know that you are in charge - not the status quo, not "the way we do things", not the previous manager. This isn't a question and answer meeting. This meeting is a monologue, a presentation, a lecture. At the end of the meeting, let the folks know that you will be meeting with each of them individually to discuss the tactics they will need to implement in order for your strategy to be effective. Note that the most important reason you were hired was to achieve the goals of the company.

Step #6: Individual Meetings to discuss tactics. Change of image time. Whereas the big meeting was all about you, the individual meeting is all about the account manager. Each needs to understand your opinion of their work and where you see them fitting in to the equation. You are there to help them achieve their professional goals. Assure them that despite the presentation, your job is to assist them and to be there for them and the only way the company is going to acheive its goals is through them. You need them. Now, what obstacles are in the way that might be stopping them from achieving their goals. How can you help? What behaviors do they need to display in order to achieve the goals that they have established and that you are now expecting? Exactly how are they going to be held accountable by themselves and by you? What is the process for dispute resolution? How will they be graded?

Step #7: Report back to the boss. Explain what you have done and what is likely to happen next. One of the results you can expect is that one or more of the veteran account managers will go to the boss to complain about you. If you had the buy in and you've given the update, the boss will make it clear that you are in charge and the veterans need to get to work. If not, your window for achieving results just got smaller.

Step #8: Work your ass off to achieve credibility with the staff. Did you say that you were there to assist the account managers in achieving their professional goals? Yes, you did. Now it's time to act like it because nothing stinks more than a sales manager who knows how to make a great speech but can't walk the walk.

If this isn't working, call me to discuss and we'll get you back on track together.

Sunday, March 16, 2008

Becoming Smarter in Four Steps - Part Two

Author's Note: This is the second in a two part series. If you haven't read part one, yet, skip down and read it before continuing with this post.

The art of working smarter instead of harder is not just fashionable, it is necessary. With traffic congestion and family commitments and the critical nature of a work/life balance, sales people no longer have the option of just putting in longer and longer hours in order to succeed.

In the last post, we discussed the first two steps in a four step process of becoming a smarter seller. This post covers the last two steps:

Step Three - Becoming Disciplined

Now that you are becoming a smart seller, you have identified your ideal customer and are using this profile to discover the best prospects. You have built your pipeline and structured it into four columns (for a refresher, read the post entitled Becoming Smarter in Four Steps - Part One).

Maintaining the system that you have developed requires that you become disciplined about your time and effort. Becoming disciplined is a process and requires that you break habits and make new ones. Do this:

1) At the beginning of every day, take a look at Column 1 and determine which of those customers could be turned into revenue on that day. Perhaps, you have proposals out to several customers and today is the day to call them and finalize the deal. Or, maybe your particular sales cycle is very short and doesn't require lead time. In that case, which of these Column 1 customers is "due" to be closed again. Depending on what you sell, some customers could have used all of their product or they could be near the end of a subscription. If you can find out by using your own tracking software that's great. If you need to speak to the customer, then you know that you'll be calling them today.

2) Now that you've identified who you will be contacting from Column 1, you need to craft a reason for contacting them. A legitimate business reason. Your reason is that you want them to buy something but that isn't a very good reason from the customer's point of view. Imagine that you were eating dinner at home and the phone rang. Seeing that the call was from your local Audi dealership, you answer it because you own an Audi and take it to the dealership for service.

"Hello?"

"Hello, Mr. Rohrer, it's Jim from Sunshine Audi over on Highway 11, how are you?"

"Fine, Jim."

"Mr. Rohrer, the reason for the call is to see if you would like to buy a new Audi today. We have lots of terrific models from which to choose and we are having a special."

"You're calling to see if I want to buy a new car today?"

"Yes, sir! Today would be a great day to take advantage of huge savings!"

From the seller's perspective, he has a good reason to call but from my perspective it's just odd. If Jim was a little more disciplined and spent some time crafting his message he may have come up with this:

"Hello?"

"Hello, Mr. Rohrer, it's Jim from Sunshine Audi. Three years ago this week, we had the privilege of delivering a brand, new Audi A4 to you."

"Has it been three years already?"

"Yes, sir. The reason for my call is not to celebrate the anniversary of your car, though. It's to let you know that Sunshine Audi is looking for A4's. There is a pretty strong demand for used A4's - especially the six-cylinder versions like yours."

"You don't say."

"Yes, sir. So, in order to acquire '04 and '05 A4's we are calling our customers who own them and offering them a special incentive to trade their cars in on brand new '08 A4's or other Audi models."

"What's the special?"

Clearly, this is a far more productive conversation for the seller because he has presented the customer/prospect with a legitimate business reason for initiating the call.

3) After you've made the list of Column 1 customers that you are contacting today and crafted a message you need to make the calls and send the e-mails. By the time you are finished you will have a list of assignments that can be prioritized according to urgency and importance. After you have done that you are ready to move on.

4) Look at Column 2 prospects and identify the order in which you are going to contact them. For each, do some research so that when you reach the decision maker you are able to have a reasonably intelligent conversation about her business. Craft a legitimate business reason for calling or contacting and start making it happen. As you progress through the list you will be able to prioritize your assignments according to urgency and importance.

Step 4 - Staying Focused

By now, you are probably feeling pretty smart and you should be! You have a plan and you are becoming disciplined about sticking with it. Now, you need to make your new discipline a habit and that will require focus. Focus is all about eliminating or ignoring distractions that take you away from the disciplined steps you require to achieve your goals. Distractions can come from many places:

1) Your personal life. Set aside a few minutes every morning and every afternoon to check in with the wife, husband, daycare, mechanic, etc. Other than those times, ignore your cell phone. Do not engage in instant messaging with these folks. Commit to doing the work that is required to achieve your goals.

2) Management. You might be in a rhythm when your sales manager asks to see you in the office. By all means, go but do not allow this impromptu meeting to last longer than five minutes or so. Perhaps, the sales manager would like to review your pipeline or some other legitimate function. Set up a time to do this in the future - preferably at the very beginning of the day. Ask for the meeting to be on the same day and time each week or every other week. Explain about your sense of purpose and your need to be focused. A good sales manager will want you to be doing what you are doing and will adjust accordingly.

3) Co-workers. Socializing with the co-workers is fun and one of the reasons that people enjoy work. Do it at lunch. Let everyone know that you can shoot the breeze from 7:30a-7:45a and then again at lunch. Don't commit to being on the party committee or anything else that can't be done before work or at lunch.

You'll want to share your goals with the people around you so that they can help you stay focused and disciplined. No need to just brush these people aside - especially if you were a part of the social circle before.

So, there you have it. A lot more can be said about these steps and specific types of selling may require some revisions. Working smarter should always be the goal because smarter is better than harder. Plus, if you need to work harder and you're already working smarter, imagine how much more productive those extra hours will be!

Friday, March 14, 2008

Become Smarter in Four Steps - Part One

Author's Note: This is part one of a two part series.


When did it become fashionable to say that one "works smarter" rather than "works harder"? I don't know but like many fashionable sayings, many folks don't have the slightest idea what it means or how to do it.

Assuming that "smarter" is better than "harder" let's take on the task of figuring out what it means for a seller and how to do it.

"Smarter" sounds like a person who doesn't waste much time. "Harder" sounds like a person willing to put in as many hours as it takes to get the job done. Of course, smart sellers work hard but the difference is that smart sellers realize that it doesn't necessarily take twelve hours a day to achieve peak productivity. A smart seller is willing to put in the extra hours when necessary but she works efficiently to avoid that being the norm.

Okay, that's what it means. Now, how do you do that?

There are four steps to becoming a smart seller:


Step One - The Ideal Customer Profile

Every smart seller has a very good idea of who buys the majority of their products and services. He is able to identify the characteristics of this customer so that when he comes across a prospect he is able to discern the likely value of the prospect. You see, a smart seller doesn't just want new customers, he wants a new customer that is at least better than his worst customer and as close as possible to his best customer. Smart sellers know that their time is limited and they seek to maximize that time by spending it with their very best customers and their very best prospects.

If you don't have an ideal customer profile then it's time to get started. For example purposes, we'll use a business to business sales process.

First Step: Identify the accounts responsible for 80% of your company's sales.

Second Step: Break down the group into industry categories. If you sell copiers, you'll have several categories but if you sell chemical resist you may have only one category.

Third Step: Within each category, identify the size of the business in terms of number of employees and annual revenue.

Fourth Step: Identify the title of the decision maker and her location.

Fifth Step: Examine the data and build a profile of your primary and secondary customers.

The key to doing this effectively is to start with a sufficiently large group of customers. We are trying to identify specifics but not every seller will be able to determine the specifics in every step. For instance, our copier salesperson may find that his company's top accounts represent fifteen different industries. So, industry category may not be all that helpful. However, if all of the best customers have less than 100 employees and revenue of less than $20 million and the seller can only sell in South Carolina, then we are on to something.

Furthermore, if the company has never sold a single copier to a prospect in the real estate management business we may conclude that the real estate management business is not a good place to prospect. Of course, if no one can identify a reason why the company has been unsuccessful in this category, we may decide to focus on the category for a short time in order to test our theory.

Ultimately, the smart seller will have a prospecting plan based on the ideal customer profile.

When I worked in the local recruitment website business, we spent a great deal of time prospecting for customers on the large national recruitment job boards. After much failure we came to the conclusion that these weren't our best prospects. Our best prospects were going to look like our best customers. When we re-directed our efforts we became much more successful.

Step Two - Building a Pipeline

Maybe you don't like to do administrative work. Most sellers do not. However, most sellers also agree that having a system to keep track of their selling efforts is critical to their success. Of course, but keeping track is only half the battle. Staying directed is the other half because it does no good to keep track of what you are working on if you are always working on the least valuable business.

Entire books have been written about building and managing a pipeline. I'm not going to get into all of that with one posting. Let's keep it simple for now and follow these steps:

Make a list with four columns.

A) Column 1 is for your customers that make up 80% of your annual sales

B) Column 2 is for your prospects that look most like your best customers (based on the ideal customer profile you created above)

C) Column 3 is for your other customers

D) Column 4 is for those prospects that you think can be added to column 2 but you just haven't done the due diligence. Column 4 is not for prospects that don't look like your best customers because you aren't going to waste your time prospecting for low value customers.

Now, when you come to work, focus on the customers that you are currently trying to renew in Column 1. After you've exhausted everything you can do for them, work on the prospects in Column 2. If there is any time left in the day, work on qualifying some of the prospects in Column 4 and make a determination if they should be moved to Column 2 or discarded. Do the same thing the next day.

Smart sellers work like this because they know the most important task is to bring in revenue and the best most likely place to find revenue is with those people who already trust you and like your products. You may be thinking that instead of spending so much time on Column 2 prospects you should work on increasing the value of Column 3 customers. No doubt there is value there but a smart seller allows the marketing department to spend their time with those folks. Face it. You have already had a shot at those customers and you've identified them as having the least value. You weren't wrong about that so don't lose sleep over the fact that you are not going to be spending a great deal of time with them.

In the next post, we'll talk about the final two steps to becoming a smart seller. Meanwhile, get cracking on your ideal customer profile and your four-columns.

Saturday, March 8, 2008

What do you do?

When I ask people in my neighborhood "What do you do?", I often get back, "I'm in I.T." I used to ask what that meant but the person in I.T. was usually unable to tell me in non-I.T. language. Here is a sample:

"When you say that you are in I.T., could you describe a typical day?"

"My unit supports java."

While I'm pondering the fact that my fellow citizens at work are also quite fond of coffee, the neighbor sees someone who knows what he is talking about on the other side of the room and eases away.

I understand.

I.T. people want to hang with other I.T. people so they can talk their secret language and probably shake their secret hand shakes.

But, if you are in sales, you need for others to understand exactly what you do. They might be able to buy something from you or they might know someone who can buy something from you. That would be good. But, unless they can figure out what you sell, they don't know if they or someone they know buys it.

That means that you need a clear, concise answer to what you do. Clear and concise doesn't mean short and sweet. It means that you have conveyed your primary activity in words that anyone at the cocktail party or networking event would understand. Sounds easy, right. But, it's fraught with difficulties. For instance, my Dad was a technical sales representative for a company that manufactured resist and other coatings. This was not an easy thing to explain because it was technical. As a result, unless someone knew what he meant by "resist" or "coating", they returned a blank stare. You might think that this is an isolated case and what you do is easy to understand but why would you take a chance?

The key to getting the common person to understand what you do is to break down the explanation into three parts:

1) The simple title.
2) An explanation of what the title means.
3) An example.

Let's try it out.

(Part 1) I'm a donut maker. (Part 2) You know, I wake up super early in the morning, report to work at the donut shop, mix up the dough and make donuts. (Part 3) Like that guy in the commercials for Dunkin' Donuts.

Okay, so that's an easy one. Let's try another one:

(Part 1) I am an enterprise software account manager for the financial services industry. (Part 2) My company produces proprietary software that helps banks and other financial companies manage their customer transactions. (Part 3) When you bank online, the software you see that helps you pay your bills. It says the name of your bank on it but my company builds that software for the bank and it is my job to sell it throughout the Southeast.

Let's try me:

(Part 1) I am an advertising sales manager. (Part 2) I recruit, train and manage a team of high performance advertising sales people. (Part 3) The majority of my experience has been in radio advertising sales but I have also sold internet advertising for a company that operated recruitment websites.

How 'bout my Dad:

(Part 1) I am a technical sales representative. (Part 2) I sell complex chemicals that are applied to circuit boards in the manufacturing process. (Part 3) Every electronic instrument in your house - like your TV or computer or remote control - has circuit boards. My company makes products that make circuit boards work properly and I sell those products to manufacturers on the east coast.

Don't make the mistake of thinking that your sales job is easy to understand and doesn't require the three-part explanation. People are easily confused. Remember that you want them to be able to explain to a potential customer who you are and what you do. This example will show you how easy it might be to confuse someone with a one part explanation regarding what you do:

"What do you do, Bill?"

"Well, Mike, I sell advertising for Auto Trader magazine."

"Oh yeah, the little newspaper booklets where people advertise their used cars for sale?"

"Yes, that's it."

"I think my brother used your publication once to sell his car."

"That's great. I'm glad it worked for him."

Now, the two of them split up and a little while later Mike is talking to his wife about all the great people he met at the party.

"I met this great guy named Bill that sells advertising for Auto Trader?"

"That's interesting. How does that work?"

"I'm not sure. I think he sits in a room with a bunch of other people and when folks like you and me want to sell their cars we call in and talk to Bill."

"We'll need to remember that next time we have a car to sell."

The problem with what Mike said to his wife about Bill is that it is wrong. Actually, Bill sells advertising to car dealerships for Auto Trader magazine. He doesn't deal with individuals that need to sell their car and he isn't an inside sales rep. It's too bad that Bill didn't do a better job because Mike's wife's brother operates sixteen used car lots and doesn't currently use Auto Trader. Here's one possible change to what Bill said:

(Part 1) I am an advertising account manager. (Part 2) I call on car dealerships and help them sell their entire inventory of used cars by featuring pictures and descriptions of the cars in Auto Trader magazine. (Part 3) You're familiar with places like Valley Ford and Sunny Chevrolet? I call on the Used Car Sales Managers of those dealerships and all the rest in Orlando and sell them advertising space in our magazines.

By now, you may have figured out that getting this right will also help you craft a more effective voice mail message.

So, let me ask you: What do you do?

Tuesday, March 4, 2008

Poison me this

How much poison is the right amount? Seems like a silly question, but organizations ask themselves some version of the question every single day. The poison to which I am referring is the high-performing seller who abuses everyone around him - the other sellers, the support departments, administration, HR and management.

I once worked as the sales manager of a team that had a well-known poison arrow. This seller was legendary in the market for his tremendous billing and his step-on-your-neck ways inside the building. Here's what happens when you allow a poison arrow to exist in your sales organization:

1) Recruiting sellers becomes very difficult. Sellers who might otherwise love to work for your organization because of your well-known product or position in the market will stay away in fear that the poison arrow actually runs the sales department.

2) Sales management spends too much time cleaning up broken relationships inside the building. The poison arrow runs roughshod over support personnel. He doesn't bother to apologize or try to make amends because he feels as if the support personnel are there to do his bidding. Productivity always suffers when support personnel can't stop crying or they have to go home early because they feel "sick" after an encounter with the poison arrow.

3) Other sellers begin to understand that the best way to get what they want is to act more like the poison arrow.

4) Accounts will begin to request that they work with the poison arrow because the market learns that the poison arrow has the clout to get special rates, terms and conditions.

The only solution to the problem of a poison arrow is to cut it out. Yes, it's painful and there will be a recovery time. However, the inevitable is that your organization will die if the poison arrow remains in place.

Tips for sales managers who inherit a poison arrow:

1) Get rid of him at the earliest possible opportunity. Be sure to get buy-in from above and have a specific plan for what to do with the accounts and the fall out. Prepare for pain.

2) If you can't get buy-in from above, start looking for another job. The poison arrow might be willing to co-exist with you but if he finds out you are the enemy there will be a cataclysmic confrontation and you will lose.

Friday, February 29, 2008

It's all about attitude but it's not what you're thinking

I am watching an NCAA men's basketball game. The ball gets tipped away from the guard bringing it across the center line and there's a pileup as several players dive for the ball. Dickie V says,

"Look at the All American getting down on the floor! The hustle, the drive! You know, Bill, he has such a good attitude on the basketball floor."

What does he mean?

An account manager gets called into the sales manager's office for a performance review. The sales manager says,

"I don't understand your attitude lately. You've been coming in late. Your desk is a mess. You seem to be keeping to yourself and you're awfully quiet."

Does the account manager have a bad attitude? How can you tell?

Coaches, advisers, parents - they all love a positive attitude but how do you get one and how do you keep it? Does it mean that you have to be perpetually positive even in the face of real tragedy?

It could have been worse!

Everything happens for a reason!

It takes 47 muscles to frown but only 3 to smile!

For me, the most instructive definition of attitude is that used by aviators. The attitude of a plane is the measure of the plane's positive or negative angle relative to the horizon. If the pilot is trying to take off, the attitude of the plane must be above the horizon line. The plane is climbing and that is good! Conversely, when the pilot wishes to land the plane, she must point the nose below the horizon line so that the plane descends. The plane is descending and that is good!
In aviation, attitude is relative to the horizon line. In sales, attitude is relative to the seller's goals. We believe that a seller is more likely to achieve his goals if he has a positive demeanor, if he is exhibiting the behaviors consistent with sales achievement (making calls and setting up presentations), if he is interacting productively with support personnel, etc. When we witness something other than that, we label the seller as having a bad attitude.

Not so fast.

Have you ever been on an airplane that suddenly changes course? The pilot points the nose down and descends rapidly for five or six seconds. Your assumption is that the plane is no longer attempting to achieve its goal of landing in Phoenix and you decide that this is bad. The nose is pointed down before landing and we are descending. This is a bad attitude. But, what if the pilot just learned that another airplane was at the same altitude as his plane and he descended quickly to avoid a collision? You wouldn't want him to keep the same attitude relative towards the goal of landing in Phoenix and crash the plane in mid-air! You didn't have all the information but you still made a decision about attitude.

Back to our seller. As it turns out, the seller just found out that his baby needs to stay in the hospital after a difficult birth. He is upset and is dealing with a personal tragedy. When you see him, he is sullen and withdrawn. His long term goal of being the very best sales person in the organization, the goal against which his attitude is normally measured, has been replaced with a short term goal of trying to keep his wife from becoming unglued. The short term goal has taken the precedence of the long term goal and the behaviors of the sales person have changed. However, his attitude - the direction of his behavior relative to the most important goal in his life - has not changed. He knows that he has to fix the problem at home in order to be able to focus on work once again. Nothing about what he is going through changes his desire to be the very best sales person in the organization.

Great sales people come in all shapes and sizes. Some smile all the time and some do not. Some are back slappers and others tend to keep to themselves. All of them have a great attitude. In order to discover this you first need to have an understanding of the seller's short and long term goals.

Tips for sales managers:

1) Get to know your sellers as intimately as possible. What is going on in their lives that might occasionally take precedence over work?
2) Be quick to ask how you can help but not quick to judge a seller's attitude based on her demeanor.
3) Let it be known that experiencing human emotions in the work place is okay with you. When seller's realize they can have a range of emotion they are more trusting of management and more willing to let you know how to help.
4) Discourage gossiping between sales people about each other by refusing to participate. Answer all questions that sound like, "What's his problem?" with "I'm not sure he has a problem but if he does, I sure would like to help."
5) Never acuse a proven seller of having a bad attitude. Ask the proven performer if there are obstacles that you can help remove. Encourage a little self-analyzation - "What could you be doing differently to get a better result?"

Thursday, February 28, 2008

The "I'm not really selling you something technique"

I love to watch sales people in action because it teaches me about what works and what doesn't. This week was instructive because two different sellers attempted the "I'm not really selling you something technique". One was successful and one was embarassing in his futility.

The doorbell rings and I can see through the glass that there are two people on the front porch. Since we weren't expecting anyone and no one in his right mind drops by our house for an unannounced visit (when you tell us you're coming we give the children a mild sedative) I knew that there were salespeople on the front porch. Cool!

I open the door and two nicely dressed folks are standing a respectful distance from the door. I stand in the doorway and say, "Hello."

The gentleman introduces himself and his colleague but doesn't mention the name of the company they are representing. They are dressed in suits and the man who has taken the lead is carrying a small leatherbound portfolio. Here's what he says,

"We are letting folks know that we are going to be doing some work in the neighborhood just in case you see us around. Some of your neighbors have hired us to do some work on their homes and we're just letting you know that our trucks are going to be in the neighborhood. We don't want to get in your way or anything so we thought we should let you know."

"Okay. Thanks for letting me know."

"No problem. No problem. We're just going to be in the neighborhood. I am wondering if your house needs any work done."

"Like what?"

He pulls out a laminated sheet and hands it to me and says,

"We specialize in gutters, windows and siding. Which of these do you need help with?"

"None of the above."

"Really? Well, that's good. That's good. The house is in tip top shape. Well, if you do need any work done, please give us a call at Taylor Construction."

We'll analyze that sales call in a second. Two days later we are finishing dinner when the phone rings. My wife looks at the caller ID and its says P and P. Since the number is local, I suggest that she answer it and she does.

"Hello."

"Hello, is this Mrs. Rohrer?"

"Yes."

"My name is Pete and I'm with P and P painters. We are going to be in your neighborhood tomorrow doing some work for your neighbors and I am wondering if we could provide you with a free estimate while we're nearby."

"Do you do interior or exterior painting?"

"Both, actually."

"Hold on one moment." At this point, my wife puts her hand over the phone and asks if I would like a free estimate on painting the house. Painting the exterior of the house is something we've been talking about for a couple of months. I say, "Yes."

"Pete, we'd love to get a free estimate on an exterior paint job."

"That's great. Oh, shoot. We are going to be in the neighborhood tomorrow but we don't have anyone who can do estimates. Would it be okay if we came out Monday afternoon?"

"Yes, that's fine. See you on Monday."

Both of these sales calls are great examples of the "I'm not trying to sell you something technique". This technique has gained favor as more and more sales people learn that nobody wants to be sold something. So, they try to sell you something by pretending at first that they aren't there to sell you something. They kind of sneak up on you. Unfortunately, for sales people, prospects are familiar with this technique because it was first mastered by street beggars in major cities and then adopted by religious proselytizers.

Just because a technique is well known by prospects, doesn't mean that it can't be effective. Like an old card trick or a favorite joke, it can still manage to provide enough amusement to be inoffensive. That assumes, of course, that the initial message of deceit is reasonably sensible.

In the first example, the people who came to my door were being ridiculous. First, they don't identify the company they represent - which makes my mind wander as I'm trying to guess what they are selling. Second, I'm supposed to believe that a company is sending messengers door to door in my neighborhood to let me know that they are going to be working in the area "just in case I saw their trucks"?! Furthermore, the company is sending these messengers to assure me that they don't want to inconvenience me or get in my way. Huh? Unless you are working on the road or you're taking down giant trees and need to block the road, how are you going to be in anybody's way? The premise is absurd and I am not amused.

In the second example, the seller identifies himself right away. By being upfront about who he is, he has earned the right to throw a sales technique at us. P and P is going to be in the neighborhood and would like to provide a free estimate. Nicely done. Of course, I know that all estimates are free and that every painter within 50 miles of my house would come out and give me a free estimate whether they were doing work in the neighborhood or not. But, somehow what Pete is saying makes sense. Why not cluster your prospecting near your existing customers? Shoot, Pete is going to be in the neighborhood so is it okay if he just "pops by"? Since we are interested in painting our house, getting a free estimate from someone who is going to be in the neighborhood anyway is a no brainer. You see, Pete knows that his proximity to our house while on a job reduces the amount of pressure I feel about responding to his estimate. Think about it. If I had called him and made an appointment for the estimate and he had to send a man out on a special sales call there is going to be some pressure for me to hire them. But, since he is in the neighborhood. . .

The best thing about Pete's call is that after my wife agrees to let him come on by while he is in the neighborhood, Pete fesses up that he can't really make it on Saturday. Now, did Pete know that before he called? Was he being a little bit slick by saying that he was just going to "pop by"? Yes and Yes.

But, so what. Sales isn't about telling the truth the whole truth and nothing but the truth. Sales is about trying to getting in front of "now" buyers, discovering their needs and then offering solutions. Your solutions have to be honest and your work has to have integrity but if you need a technique or two to get the appointment - that's cool.

Just be upfront about who you are and prospects will give you a chance to show them your moves.

Thursday, February 21, 2008

Managing the "in-between" time

I am stuck in traffic in Atlanta. Again.

Up ahead, I can see that the traffic light is green. A cursory count of the number of cars in front of me puts the number at about twenty-five. I sigh because I know that I'm not getting through the intersection for another cycle of the light.

But, wait! Twenty-five cars is less than 500 feet of distance between me and the light. Even at only 10 mph, I can travel 500 feet in thirty-five seconds. The light is timed for one minute of green. Why can't I make the light?

The answer is simple and frustrating. If everyone were paying attention to the light and started to move forward as soon as the light turned green, all of us would be going at least 10 mph within a couple of seconds. Not only would the 25th car in line make it through the intersection, the 35th car in line would make it, too. Life would be good and Atlanta would be a fine place to drive. But, the 25th car doesn't make it through the light and life is not good on the streets of Atlanta.

The reason why the 25th car doesn' t make it through the light is that not everyone starts to go at the same time. The car in the front of the line goes and then the next car goes. But, in between the time the first and second cars start, there is a lag. The "in-between" time. The time the second driver waits to make sure the first driver has seen the light turn green and is going. The in-between time is repeated for each car until the 25th car in line is waiting thirty to forty seconds before moving at all! The light is green. You can see it. But, you aren't moving because the guy in front of you isn't moving. The in-between time has made it impossible for you to achieve your goal of making it through the intersection in one cycle of the light.

In order to achieve one's goals in sales, one must sell more stuff to existing customers or find more customers. Busy sales people often find this difficult because there is only so much time in the day. We often hear that the most successful sales people are working deep into the night and on weekends in order to achieve their income goals. If this isn't practical or desireable, let me suggest that you start doing a better job of reducing your own "in-between" time.

Here are some tips for outside sales people:

1) Geographically cluster your sales calls. If you drive around a metro area like Atlanta to make your calls, there is no sense in making one call in the north and then another one in the south and a third one in the east. Cluster your calls so that you are making as many calls in one geography as possible before moving on to the next.
2) Be prepared to do business wherever you are. Sometimes traffic considerations cause us to schedule calls three hours apart when we know the call only takes an hour and the drive time to the next is only thirty minutes. We do it because of the uncertainty of both those estimates and the need to be on time to the next call. Perfectly understandable. What is not acceptable, though, is to sit in your car reading a newspaper as you wait for the appointment time to roll around. Carry a list of folks that you need to call with you. Always have your laptop with you. Be prepared to work during any in-between time that you have inadvertently created.
3) Develop very good relationships with the administrative and other support personnel back at the office. When circumstances conspire to keep you out of the office, you may need something from your desk or files. You can get work done through other people but only if you made them a part of your team.

Here are a couple of tips for inside sales people:

1) Leave the administrative work for the hours when you can not reach customers. If you are calling customers and being productive and everything is going along smoothly, you need to keep making calls. The last thing you'll want to do is to stop talking to customers in order to put together some presentation materials that need to be mailed to a prospect. Some sales people like to do everything that needs to be done for a particular prospect before moving on to the next, but this creates in-between time.
2) Schedule breaks for yourself. Working the phones or the internet or the e-mail can be tedious. If you schedule five minutes per hour to stretch your legs or to get a drink or to chat with your neighbor, you'll be more productive during the next 55 minutes. When inside sales people try to plow through two or three hours of super productive work, they invariably end up creating more in-between time when they become mentally and emotionally drained.
3) Maintain an accurate pipeline. Nothing reduces in-between time like knowing which are the most important prospects to call first.

If he could only learn to use his talent

What are we to make of people who are said to have "all the talent in the world" but somehow don't seem to win? If you watch sports, like I do, then you hear it all the time. Recently, during the Daytona 500 telecast, one announcer declared that a certain driver was "as talented a driver as we have on the track" but hadn't yet won a race.




And have you heard the tale of Tiger Woods walking through the clubhouse after a round? John Daly is sitting at the bar having a beer and he calls out to Tiger,




"C'mon and join me one time. Forget about the weight room for once and just have a beer with me."




Tiger is reported to have said, "If I had your talent, John, I wouldn't need to hit the weight room," as he headed to the locker room.







Is it possible that John Daly has more talent than Tiger Woods? That, of course, depends on how one defines talent. In golf, most people would think that the most talented golfer is the one who is the best "ball striker". That is, he can hit the ball in the center of the club face nearly 100% of the time. He can carry the ball the right distance and make adjustments to his swing in order to make the ball fly on a different path. But, on the PGA tour, this describes nearly everyone. There must be something more going on that helps explain why Tiger Woods won 7 out of the 16 events he entered last year and John Daly won zero.







The "something more" is the new definition of talent that has been discovered by The Gallup Organization. Gallup defines talent as "any recurring pattern of thought, feeling or behavior that can be productively applied." (p. 48 Now, Discover Your Strengths). Gallup went on to define and name all of the talents of humans. For a complete list of the talents and a description of each, please read the book by Marcus Buckingham and Donald Clifton.



We all know intuitively that talent is a recurring pattern of behavior. Success at golf requires one to be able to repeatedly swing the golf club so that the ball is struck in the center of the face. Success in motorsports requires one to repeatedly choose the right line on the track and to make good decisions about when to pass and when to draft. In sales, it's important to repeatedly make presentations to qualified prospects. But, as pointed out already, at the highest levels all the participants can do those things. What is at play that allows certain golfers and certain drivers and certain sellers to excel?



The answer lies in the other part of the definition of talent - "any recurring pattern of thought, feeling. . . that can be productively applied." Ask any professional analyst the reason why Tiger excels and they will tell you that it is his mental focus. They compare Tiger's ability to shut out distractions and hit the required shot under pressure to that of Jack Nicklaus. No wonder that one is the all time champ in major victories and the other is the greatest golfer the world has ever known. So, Tiger's talent is not just his ability to hit the ball correctly but also his ability to focus on exactly what is required in the moment.



John Daly doesn't have this talent and therefore, it is incorrect to say that John Daly is as talented a golfer as Tiger Woods.



At the highest levels of NASCAR, a driver needs the ability to communicate effectively with his crew chief. He must be able to describe exactly how the car feels so that the chief can direct the pit crew to make adjustments to the car when it comes in for a pit stop. So, the most talented driver is the one that can choose lines and make decisions as well as the other drivers but who can also communicate the nuances of the mechanics of the car to another person over the radio while driving 180 mph!!



When we start to think of talent in this way, it is much easier to understand why there are dominant performers among even the most physically gifted.



In sales, the critical nature of repeating thoughts and feelings, as well as behaviors, is as important to excellence as in the sports examples above. The very best sellers are able to put rejection behind them quickly and focus their efforts on making the next sales call. The very best sellers experience the negative feelings that go along with rejection as much as the average seller but they put another feeling in its place more quickly. The link between positive thoughts and success in sales is well documented. So, it's consistent to describe the most talented sellers as the ones most capable of repeated positive thoughts.

In sales, it is not enough to be persuasive or to be charismatic. Successfully repeating those behaviors will help you achieve some level of success. But to reach the highest levels, sellers must be able to repeat thoughts and feelings as consistently as the top achievers in sports.