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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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sales manager

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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Becoming A Master Communicator

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Communication skills are the key to being successful in sales.  They serve two important purposes.  First, they help you understand the prospect’s business objectives.  Second, by focusing the conversation on the prospect, you are able to build a high level of trust and minimize the perception of self-interest.

 

Communication is a two-way street.  That is, it involves both speaking and listening.  Salespeople must have the skills to keep the focus on the prospect, to keep the prospect talking, to be a good listener and build a trusting relationship with the prospect.  After all, your job is to get information, not give it.  How else can you diagnose the prospect’s challenges effectively?  If the diagnosis is flawed, how much confidence will your prospect have in the solution?

When you are talking you are saying something that you already know.  When you listen you discover something that someone else knows.  Many attempts to communicate are nullified by saying too much.

If you want to interact with someone, communication is essential.  If you want to influence or advise someone, understanding his or her point of view is critical.  A good rule of thumb is to keep your prospect speaking twice as much as you do.  After all, you have two ears and one mouth and you should use them in that ratio in professional selling.  Unfortunately, most salespeople are like alligators – all mouth and no ears.

In diagnosing the prospect’s challenges, and establishing their business objectives during a sales meeting, it is important to ask good questions, take notes and follow up. Taking notes really shows the customer that you are paying attention to what their needs are. At the end of the meeting:

  • Verbally summarize what you heard at the end of a sales meeting
  • Discuss what the next steps should be including time and date for the next discussion
  • Follow up by sending an email to the prospect outlining what was said during the meeting and what the next steps are

These simple tips, when followed on a regular basis, will help you to differentiate yourself by the way that you sell, and move you into the master communicator category.

 

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Ask A Sales Leader: Perspectives from the Front

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Our new feature article, “Ask a Sales Leader” is designed to provide perspectives from the Sales Leaders that we have worked with and how they have used sales processes to win more business. We asked four questions below to capture this insight. In this edition, we feature Kevin Leak. Kevin is a two time customer of FSS, a 30+ year veteran in the Life Sciences/Pharmaceutical market and has lead teams in Sales, Product Management and Marketing capacities. To learn more above Kevin’s success click here.

1. Describe how your customer facing teams use your organization’s sales process.

They work together during opportunity development by asking a series of questions and listening to the customer, in order to identify and fully understand the root causes of the customer’s problem. In conjunction with Sales, the Product Engineering team has a check list of ways we could resolve the customer’s problem and deliver value through the four drivers of Speed, Cost, Quality and Innovation. Can our solution perform faster, thereby improving the customer’s efficiency? Can our solution help the customer lower their total costs? Can our solution help the customer improve the quality of their products and processes? How can our solution deliver innovation that creates a competitive advantage?

2. What is your Management’s approach to coaching sales reps?

The two key areas of coaching that we focus on are (1) opportunity development and (2) listening skills. Opportunity development coaching is the process we follow for identifying the critical factors that are required in refining an initially vague and undefined opportunity into a very specific and well defined opportunity that lists the decision makers, the timing, the value and the likelihood that we will be selected. Listening skills coaching is the process we follow for identifying, in the pre-call planning, the list of questions the sale rep should be asking, improving their ability to weave those important questions into the conversation with the customer and their ability during the post-call report (Meeting Summary) to show progress in our understanding of the customer’s situation.

3. How do you reinforce sales skill development for sales reps?

Repetition is the key. They must buy-in to our sales process that is repeatable and reproducible. The analogy I use to describe “repeatable” is that our sales process is a play book and everyone on our team has agreed that these are our plays, knows how to execute the plays and when we call those plays, everyone knows their role so that we professionally execute those plays. The analogy I use to describe reproducible is that our team plays at many venues (our different customers) with varied situational challenges (such as different competitors) and we sometimes need to bring in customized resources. When we execute our “plays”, based on the consistent use of our sales process, we successfully generate the consistent sales, margins and long term customer relationships that we are playing for.

4. What advice would you give to other sales leaders?

Break the “check the box” trap that many experienced sales reps fall into. Sales reps have their list of customers that they like and who like them in return. If the sales rep could, they would spend all of their time calling upon those “nice customers” and “check the box” each week when completing their sales call report. But frequently, they are not learning anything new that identifies new business opportunities or new influencers and decision makers, competitive threats or changes the customer is undergoing that could effect, for better or worse, our sales revenue with that customer. Challenge your sales reps to call upon the tough customers and learn something new about those customers.

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Improve Sales Forecasting Accuracy: Confirm the Customer’s Opinion During Opportunity Development

We have worked with over seventy individuals in a Sales Kickoff Workshop that took place in Australia and New Jersey. There were many bright stars within these groups, meaning the top 10 % that simply gets things done. But for as long as we have been doing this (over ten years), it never ceases to amaze me when sales people, some very experienced, do not clearly communicate with their prospect about what comes next in developing an opportunity.  These same salespeople will be asked to forecast the likelihood of success in converting this piece of business from an opportunity into revenue at some time in the next 3-12 months, yet many don’t know what is coming next.

The cult-like sales movie Glen Garry Glen Ross cites the acronym “ABC” when it comes to sales, or “Always be Closing”. Well, this tired old tactic simply won’t work in today’s buyer-driven world. Instead, we embrace a concept, and practice this with our customers, that includes a related approach to “ABC”, or Always Be Confirming. For those of you who do this every time, we offer a round of applause. For those who skip it, or only do this when it feels comfortable, read on.

At each step of the customized sales process that we build with our customers, there is an action that the seller must take to qualify that the person they met with sees value in the conversation they just conducted, and agrees to proceed to the next step. This can be a formal document, or a simple follow-up email to identify clear next steps. In either scenario, we are asking the customer (or prospect) if we have a mutually agreed upon understanding of where this opportunity may go, and how they will work together to get there. This includes a situation when the two parties do not agree, and decide to stop. In our program, a “no” is okay, especially when it comes sooner as opposed to later in opportunity development.

The one confirmation of progress that all sellers will document is when they win. This is validated with a signature, check, or purchase order. But what about the 4-5 steps that come before, especially when it comes time to commit serious resources to winning the business? This generally plays out in the form of a demo, presentation, proposal or reference account to validate your ability to perform. Are your sales people making certain that when they provide that information, they will get an answer? Or is it left in that limbo zone of getting back with you when they’ve made a final decision.

By proactively managing the sales process, you can organize how the opportunity develops, and let your customer/prospect know that you will be asking for confirmation at certain intervals to confirm progress. Without doing so, many sellers are flying blind and can’t tell how well they’re progressing until very late in the game, which makes for messy forecasting and poor execution. To avoid this, make sure your team is trained on opportunity development and knows how to track progress from the very beginning of the customer engagement.

 

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7 Common Sales Myths to Avoid

 

sales_mythHere’s a summary of common beliefs salespeople have that will do them more harm than good.

1. I need to educate my prospect; presentation skills are my most effective tool.  Premature presentations are the biggest challenge salespeople face today.  Let’s face it, no one ever lost a sale by listening too much.  When you’re educating, you’re talking.  When you’re talking it’s difficult to understand your prospect’s challenges and he will realize that and conclude that you bring little value to the relationship.  Your job is to qualify your prospect and investigative skills are your most effective tool.

2. Everyone needs what I sell; hearing “no” is a failure.  If you feel that “no” is a failure, you’ll resist it at all costs, creating a pressure filled atmosphere that will turn a skeptical prospect into a defensive prospect who’s main objective is to get rid of you.  If you believe that everybody needs what you sell, it’s difficult to be objective.  The buyer will conclude that your self-interest is greater than your desire to help.  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.

3. When the prospect says, “I need to think it over,” there’s still a chance.  Many “think it over’s” are just slow “no’s” with a free torture treatment. Prospects rarely say “no” to salespeople even when they have little or no intention to buy.  They believe that it is polite not to hurt the salesperson’s feelings or they want to avoid the pressure that they feel the salesperson will apply when rejected.  Sometimes prospects won’t say “no” simply so they can bring the salesperson back to pick their brains for more information.  Instead, you’ll be put in the chase mode, making a long sales cycle even longer.  You should be skeptical (not reassured) when your prospect tells you that he needs to “think it over.”

 4. My features and benefits differentiate me from my competitors; they give me an advantage.  Face it, most salespeople show up with the same tired old platitudes (‘we have the best quality in the industry, our service is outstanding and our prices are very competitive”).  It’s called “fluff.”  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.  Bad news for you.

5. My job is to convince my prospect that he would benefit from purchasing from me; I need to be a good closer.  This is an antiquated belief and bound to lead to resistance. Following this belief will encourage you to put pressure on the prospect to buy.  People resist pressure in a relationship sale; it’s just human nature.   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.

6. Financial considerations are the most important factor in determining who gets the business.  This belief puts the emphasis on price and that’s not what you want.  Price is very seldom the real issue in a complex sale. Conviction that you can help them solve their problem and get a return on their investment is the bottom line.  If you can help them increase their business or save them money, your price is relative to their gain.

7. If my prospects like me, they will buy from me.  Trust and rapport are important but 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.

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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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Creating and Connecting the Dots with Brian Tracy

 

20141215_133131-1_resized_1On my way to have lunch with Brian Tracy, I took a moment to consider the conversation that would unfold. On one hand, I was about to sit down with one of the best known speaker-author-entrepreneurs in the world when it comes to optimizing human and organizational performance and results. On the other hand, it was also just a chance to sit down with a neighbor and friend whom I have known for over seven years.

Perspective

In the slim chance that you don’t know who Brian is, hit this link to learn more: http://www.briantracy.com/about. In short, Brian has worked in 80 countries and delivered his programs to over 5,000,000 million people in a 45 year career. He has authored 65 books that have been translated into many languages.

It was refreshing to hear Brian say that when it comes to sales, customer and buyer behavior is the same 80% of the time anywhere that he has worked or traveled. What is different, is the 20% of the equation that is attributed to cultural adaptation, languages and localization as buyers reflect the nuances of the areas in which they live.

Creating and Connecting the Dots

In our conversation, Brian referenced the speech that Steve Jobs delivered at the Stanford Commencement in 2005, saying that the key to success in business or in life is connecting the dots. The dots are the true opportunities that you pursue in your life, sometimes those that are off the beaten path of what “success” looks like. But before you connect the dots, you must be continually creating dots.

In that capacity, Brian is currently focused on a strategic planning program for organizations and individuals that he calls Idealization. This program takes into consideration all of the critical components that organizations and individuals must balance to account for family, careers, health and finances.

He is also working with business leaders throughout the world on Business Model Innovation, and has developed a nine-step process on how to stay ahead in business. The speed at which new technology is being introduced, coupled with the rapid globalization of commerce, both contribute to the demise of business models more quickly than ever before. To stay ahead, business leaders must innovate and Brian is addressing this need with his services.

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