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.
Tuesday, March 25, 2008
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.
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!
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.
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?
"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.
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.