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Attitude Adjustment

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Too many salespeople show up with an attitude. It sounds like this. “I’ve got the best solution available, and my job is to convince my prospects that I’m right. This is the “try harder” syndrome. This attitude just doesn’t work well any longer. Here’s a list of the beliefs that salespeople have that will do them more harm than good and what you should be believing instead.

Faulty Belief: I need to educate my prospect; presentation skills are my most effective tool.
Winning Belief: Your job is to qualify your prospect and investigative skills are your most effective tool. Let’s face it, no one ever lost a sale by listening too much.

Faulty Belief: Everyone needs what I sell; hearing “no” is a failure.
Winning Belief: A more productive belief is that not everyone is a prospect for
what I sell and “no” is not a failure as long as I’ve qualified the opportunity adequately.

Faulty Belief: When the prospect says, “I need to think it over,” there’s still a chance.
Winning Belief: You should be skeptical (not reassured) when your prospect tells you that he needs to “think it over.”

Faulty Belief: My features and benefits differentiate me from my competitors; they give me an advantage.
Winning Belief: If you rely on features and benefits, you’re probably going to sound just like everybody else, and your prospect may conclude that what you sell is just a commodity. When you’re perceived as a commodity, price becomes the most important buying criteria.

Faulty Belief: My job is to convince my prospect that he would benefit from purchasing from me; I need to be a good closer.
Winning Belief: It’s the prospect’s job to convince you that he has a problem, the budget and the decision-making ability to fix it and needs your help. Try this attitude on your next sales interview and see how it will change your approach.

Faulty Belief: Financial considerations are the most important factor in determining who gets the business.
Winning Belief: If you can help them increase their business or save them money, your price is relative to their gain.

Faulty Belief: If my prospects like me, they will buy from me.
Winning Belief: The real issue is whether or not the prospect thinks you can solve their problem. If they do, you’re likely to get the business.

Key Points

1. Your attitudes and beliefs are very important; they dictate what you do and how you do it. Ultimately, your attitudes and beliefs control your results.

2. Hearing “no” is not a failure; not everyone is a prospect for your product or service.

3. You should believe in the Law of Abundance – there’s plenty of business out there. Don’t hang on to a prospective client when the odds of being successful are slim. Find another opportunity.

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3 Ways to Change Your Sales Approach to Keep Up With Technology

We’ve all experienced a lot of technology-driven change in our lives. Just how much change depends on how old you are.  People in their 50s can remember a time before the Internet.  People in their 30s can remember life before Uber. And twenty-somethings just might remember when their parents carried flip phones, not iPhones.

If it seems like technology only evolves faster and faster, that’s not your imagination. It’s true—meaning we can expect more disruption and change in the near future, even in the field of sales. But when you work in sales, you have to make sure you’re looking at those changes through the right lens. There’s how technology has changed sales, and then there’s how technology has changed how we sell.

How Technology Has Changed How We Sell

Technology will keep changing sales. Vendors will develop new apps we can’t even imagine yet. Software will automate sales processes. Artificial Intelligence will score leads. Chatbots will handle online queries…and so on. All of us in sales will be on a constant learning curve to keep up. But if we’re not also thinking through how we must change our approach to sales, that tech might not do us all that much good. So here’s a look at three ways technology has changed how we sell—and how we must adapt…

  1. Buyers go looking for information on their own.

These days, when buyers have a need, they go looking for answers on their own—and they’re not calling a sales rep to get those answers. According to Forrester:

  • 68% of prospects prefer to research on their own online
  • 60% prefer not to interact with a sales rep as their primary source of information
  • 62% say they can develop selection criteria or finalize a vendor list based on digital content

What does this mean for you and how you approach sales? You need to understand where the buyer is in the sales journey, and you need to be ready to offer them help and content appropriate to where they are in the process.

  1. The channels we use have changed.

Millennials do not like to use the phone. OK, they like to use their mobile phones, but not for phone calls. They use their mobile devices as communications tools, but for them that means texting, messaging and emailing.

What does this mean for you and how you approach sales? You need to know more about your prospect so your efforts are targeted, and you need to know how your prospect wants to be approached. Is email better than a phone call? What about a LinkedIn message? Do you have a mutual connection who can make an introduction?

  1. Social media is commonplace.

Salespeople used to build relationships in real life. Now we build them online as part of “social selling.” We network on platforms like LinkedIn and Twitter and build relationships that way. In addition, customers are also turning to social media when they’re researching possible solutions to their problems—and the vendors that sell them.

What does this mean for you and how you approach sales? You need to be where your customers are. Research shows that salespeople who use social media outperform their competitors. Get active on the social platforms used by your prospects and build a presence—and relationships—there.

Technology will continue to transform how we live our lives, both personally and professionally. The upside is, we have more time to sell when processes can be automated and data drives our sales efforts. So let’s take that extra time we’re getting back to make sure our approach to sales is keeping pace with the technology—and equal to our customers’ expectations of us.

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Discounting Does Not Buy Loyalty

Reflecting on the past is a common occurrence.  Did results meet expectations, what improvements can be targeted for the future, what learning took place in the past?  These are all common questions that managers and leaders should be asking themselves.

More precise metrics are also available to judge past performance.  Were margins and profits sacrificed to meet sales quotas?  Quarter end and year end discounting are not uncommon but they do tend to diminish the margins that had been targeted in the profit plan.  We believe that this is an avoidable trap that can be addressed with advance planning, discipline and training.

The time to protect your margins is now.  By reviewing the opportunities in your pipeline you can determine the following:

  1. Do you have enough opportunities to provide you the revenue that you will be targeting at quarter end or year end?
  2. What is the confidence that those opportunities will close on the targeted timetable without needing to offer a steep discount?
  3. Do you have enough bandwidth to focus on all the potential opportunities or are you better served by grading them and focusing on the highest margin opportunities?  Let your competitors dissipate their resources chasing the low margin deals.
  4. Do you need to dial up business development to get more opportunities in the pipeline?

During a phone conversation with a VP of Sales, he told me that his team was busy “cutting deals” to hit their annual revenue plan. This is not selling, and the words chosen made my skin crawl. If your team seems to rely on discounting to get orders, maybe you need to focus more attention on your sales process and developing your team to sell value.  The value the customer will receive by using your product or service, not the discount they will get from price list.   Building the discipline to ask the customers the right questions to qualify them as a high or low margin opportunity is a learned skill.  It takes restraint for sales people who have been conditioned to close, close, close.  We know that margins can be improved with well trained sales teams and we’ve seen that happen hundreds of times.

Maximizing your profit margin doesn’t happen by accident.  It won’t happen by sending out a memo targeting desired margins for the coming reporting period either.  It is a result of leadership identifying the development plans needed for the sales team, providing the training, giving feedback on performance and ongoing coaching to reinforce the process that has been identified to close deals without needing to resort to deep discounts.

Revenue is important and sales quotas are an important part of a business plan.  Discounting adds risk as it increases the amount of products to manufacture or services that need to be delivered to achieve a given profit goal.  Start today to protect your margins in future quarters.  Having regular deal reviews will open your eyes to the reliability and quality of the opportunities in your pipeline.  Want to buy some margin insurance?  The time is now.

Flannery Sales Systems helps organizations develop and implement a repeatable sales process.  Improving the effectiveness of your sales organization is the key outcome we provide to clients.  We would welcome an opportunity to explore your needs and understand where your team could benefit from improved skills and sales processes.  Flannery Sales Systems works with a broad cross section of industries and we are confident we can enhance your results.

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How to Make Learning Stick

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You did your due diligence in providing a fantastic Sales Training event for your team, expecting them to turn it on and kick off record sales! Right?

Wrong….

A couple of months after the training, you find your reps are still talking about the “great training”, but the effects of the event have faded while you were trying to wrap up numbers.  They don’t remember what was covered; they feel unprepared to start using new tools they were given; they haven’t practiced since the training; and after-all, they survived last year without changing anything, so why should they rock the boat now?

Your training investment is just the first step in the Adult Cycle of Learning.  Your initial investment can lose momentum as everyone settles back into the way they’ve always done things.  You may find that you aren’t getting the behavioral changes required to increase the long-term performance results you were looking for because the learning didn’t stick.

Adult Learning Theory states that repetition and reinforcement are the next necessary steps which internalize learning to the point of behavioral change.  While a training event can cause a short-term bump in performance, long-term success depends on underscoring process and best practices with repetition.  Research shows that learning improves with repetition for two reasons:

  1. Our short-term memories are just that: short-term. We can forget something like a person’s name in less than a second.  Repetition moves things from our short-term memory into the longer-term memory, and hence is a key method for learning.  Just like when we learned our multiplication tables in school, we need to repeat things more than once for them to finally sink into our memories.
  1. Repetition leads to understanding. It gives time for the “penny to drop”.  What at first may feel uncomfortable, after repeated exposure becomes clear.  Understanding provides context and relevance, providing a reason for performing new tasks, or changing behaviors.

While repetition teaches a skill, reinforcement is defined as anything that strengthens or increases a behavior once a skill is learned.  Behaviorist B. F. Skinner observed that the rate at which a behavior was reinforced had a direct impact on the frequency and strength of the skill because reinforcement increases the likelihood that the behavior will continue to occur.

Methods of reinforcement of learned behavior can include the following:

  • Live in-person training – Just like any skill, one lesson won’t do it. Continued lessons and practice will build capabilities over time.
  • Online learning webinars – Programs on specific topics offer opportunities for retention and to deepen understanding of basic concepts.
  • Coaching –A person dedicated to supporting continued learning, performance and success of sales people, coaching around specific goals and expectations of actions, and then holding the team accountable has the best chance of inspiring change.

Sales Training is not enough.  The adult cycle of learning follows this progression:

Training > Repetition > Reinforcement > Real-world Application > Measurable Results > Repeat.

 So don’t sell yourself short by stopping after the initial training.  Provide repetition and reinforcement to enable your team to drive revenue results!

 

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MANAGING SELLING EXPENSE

salesIn the song “Cheaper to Keep Her”, the words spell out the trials and tribulations of whether to stay in a bad relationship or make the painful decision to cut ties.

Companies are always looking for a big finish; then the analysis begins.  The bottom line seems to get all the attention.  Did we make more money than we did last year?  Every expense gets the once over.  And the biggest expense in selling is walking around on two legs: the sales force.  The compensation, training, travel and entertainment and benefits all add up to the overall expense.  How can companies rationalize the investment in sales people?  When do Managers make the decision to stick with an average contributor, or move them out of the organization?

The three quantitative measurements in relation to expenses that Management needs to look at are total revenue produced, margin on sales, and the mix of products sold.  There are also important qualitative measurements that should be considered, and they will be addressed in the next article.

1.  Revenue Production:  The most common quantitative analysis done on sales people is at the macro level; did they hit their revenue number for the year?  The challenge is that some of the sellers who drive revenue have huge salaries and some do not.   In sports, the salary (expense) does not necessarily correlate to how well the athlete performs.  In business, the total expense associated with the revenue production must make sense.

2. Margin: A week after Q4 ends, most management teams can see what the net effect of last minute discounting when the reps buckle to pressure to close year end business. The exercise to protect margins should be built into a coaching formula that includes opportunity review. Once this is embedded, the mechanism should allow managers to know the profit that reps can obtain in closing situations.

3.  Product (and Service) Mix: Product mix will show if the sales person is selling the right products to the correct customers.  Let’s say a sales person consistently sells low on a medical device but the consumables for the device are sold at full price.  It will take twice the volume in consumables to make up for a discounted sale of the device.  These numbers tell a story and will point dramatically to drags to the bottom line.

After watching Moneyball,   the movie that documented the notion that winning in baseball boils down to how many players get on base during a game, you would think there is a scientific formula that could provide the answers to controlling selling expenses.  The good news is, for our customers that mechanism is in place.

Once fully implemented, a well created sales process can provide managers with a lens to look at these, and the related qualitative measurements, to determine if they should invest more time in developing sales people. In this capacity, “Cheaper to Keep Her” means continuously developing the skills with the seller to bring their performance up to speed in relation to the 3 areas mentioned above. Otherwise, it may be time to part ways with that employee, and begin the arduous task of replacing them with new talent.

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Revenue Generation Plans for 2020

It is hard to believe, but many of you are finalizing your revenue generation plans for 2020.  Your leadership team is now looking three months ahead to what the new year will look like. Plans, budgets and kickoff meetings are all being created, and the commercial/go-to-market (GTM) strategy is perpetually being fine-tuned.

Commercial/GTM strategies include the likely components around the markets you compete in, the competition, and your positioning (product, price, place, promotion, etc.). But what about the HOW when it comes to sales and others who interface with prospects and customers? Often times the plans are refined to the point of specificity, except when it comes down to what we call the tactical execution of sales, meaning how conversations are conducted with prospects and customers, one at a time.

We help our customers improve the quality of the sales opportunities they develop and increase the overall revenue in their pipeline. All sales organizations are focused on this, and we enable it with a skills-based program that is custom built for our customers based on the markets they compete in and how organizations BUY, not how they should be selling. And there is still a lot to do to close out 2019 strong.

Whether it’s the preparation for next year or fine tuning of opportunities in the pipeline now, we can help in either scenario. Our skills-based approach for all individuals in customer facing roles (this includes marketing, inside sales, customer service, product development, technical specialists) is proven to work. Take fifteen minutes to consider how we can help you meet and exceed your objectives. Ready? Let’s go!

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Transitioning A Salesperson To A Manager’s Role

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Transitioning a sales person to a sales manager

Transitioning A Salesperson To A Manager’s Role

One of the most costly mistakes in business is to promote your most successful sales person only to find that they fail as a manager.  What makes this even more disheartening is that you may also lose some of the revenue from that producer’s territory. Sales people are promoted because they have performed well and management mistakenly believes that the super star sales person is also a great manager and trainer.  Too often, the great sales person doesn’t even realize what they are doing different.  They may be intuitive or just particularly committed to cold calling or business development.  It is not uncommon that the sales person doesn’t really understand what behaviors have lead to above average results.

Being a super sales person and being a great manager often have traits that are diametrically different.  The successful sales person is usually easy to engage and empathetic with customers.  The really great ones are excellent listeners.  The exceptional sales manager is more analytical in that they can evaluate how effectively a sales person is executing their sales process and then provide concrete, specific feedback and exercises that will lead to improvement.  The listening skill that might have made them a great sales person is often a trait that enhances success as a sales manager. Larry King is credited with saying “I never learned anything while I was talking” and his words are well worth considering.

The sales manager that says, “Watch how I do it” is often using his personal skills to role model behaviors and that field experience is valuable but of only limited value.  Sales managers need to be coaches to be successful.  Few football coaches are world class quarterbacks, kickers or tight ends.  The way that a coach is able to field a winning team is to be able to assess the strengths and weakness of each player, to be able to diagnose the appropriate development and course of action and to be able to communicate the recommended changes in a manner that is clear and compelling.  If the sales manager is not able to change the attitudes and the behaviors of the sales team, it is questionable if the performance of the team will improve.  Think about the skill set required to change attitudes and behaviors.  That skill set may not be the same one that was able to close enough deals to get the salesperson promoted to sales manager.

Transitioning managers to a coaching role is the key to upgrading the collective results of the team.  Is the manager providing the appropriate development for the team and addressing individual needs?  Is the manager asking the right questions?  Is the manager effectively listening?  Is the manager good at making accurate assessments?  Does the manager use a sales process as his playbook and work with the team to practice the process?

The manager as coach analogy is a good one although there are many playback videos of sales people performances to assess.  Start by asking sales people specific questions:

  1. What does a qualified prospect look like?
  2. Who needs to be involved in the final decision that will lead to an order?
  3. What’s the cost to the buyer of not making a change?
  4. What value does the buyer/prospect see in your offering?
  5. How are we positioned against our competition?

The answers to these types of questions will enable the manager to make an assessment of how best to coach the sales person to success.  Increasing the overall effectiveness of the sales organization is the primary goal of the sales manager.  A sales manager that is a good coach is most likely to lead his team to greater success.

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On The Road Again: In Seattle, WA

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In March, John is up in the Pacific Northwest in the beautiful tree filled city of Seattle instructing a Sales Process Workshop, and working with the Managers on how to Coach to the process. In this video, John previews the upcoming articles for the newsletter and announces exciting travel plans that take FSS back out to the global market. Pack your bags and listen below.

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How to Get Sales Operations Right in 2015

 

sales_opsIndustry experts are talking about Sales Operations. Kellogg’s School of Management Professor Emeritus, Andris A. Zoltners, says “sales operations or ‘sales ops’ has become widely accepted as essential for effective sales management.” Seattle-based agency Heinz Marketing says “Sales operations may very well be THE most important and unsung hero for sales teams.”

Why has sales ops become so critical in the eyes of so many?

Much of it lies in the growing importance of technology enablement. Sales teams today rely on many types of technology solutions to provide data analytics, mobile capabilities and lead management. Sales ops professionals are charged with spearheading and supporting these types of initiatives.

But that’s not where their responsibilities stop. They are still burdened with traditional operational tasks like reporting, contract support, and administrative functions. Their job description has become so varied that Zoltners astutely poses the question, “Can one person really handle all this?”

The obvious answer is no. So what to do? Sales ops managers must hire and develop a team of people with both varied and specialized skill sets. The jobs they do as well as their ultimate career paths will be fundamentally different. Managers should also look to outsourced resources to fill in missing competencies.

Ultimately, the key to keeping this diversely talented group in sync is leadership. Scott Shimamoto, Principals at ZS Associates, says, “The best sales ops teams have a clearly articulated mission statement.” Sales operations leaders must create a clear road map for success.

What should be included in that road map? For a great overview, we recommend Selling Power Magazine’s recent article, “Understanding the Role of Sales Operations“.

 

 

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