Archives for February, 2010

ARE YOU SELLING OR JUGGLING SEAGULLS?

by Hal Alpiar

To figure out whether or not time is managing YOU, draw a bullseye with two rings around it and label the center space: FAMILY & PERSONAL, then label the innermost ring space: WORK & BUSINESS, and then label the outer ring space: FRIENDS & OTHER ACTIVITIES.

Then copy each heading onto a separate column or separate piece of paper. Then list the most appropriate items/people/places/things in each category. Allow one minute per list.

Put the list down and walk away. Get some water or a cookie or just stare out the window. (This is like a little ginger between sushi pieces.) Then return to your target and lists. The amount of blur between your bullseye and your next two rings will indicate how “fastlane” your life is right now.

I say “right now” because this is a here and now exercise: what goes in each part of the target can change by next week, tomorrow, tonight, or within the next 6 seconds! In fact, when life gets too hectic, it’s a useful device for daily assessment, for helping you sort out and stay focused on priorities.

Whatever blur does occur, whatever lack of definition exists between the 3 areas should give you a good heads up on how efficiently or inefficiently you are using your time, as well as the extent of your allegiances to each entity that is taking time and attention from your life.

Once you’ve done this little diagnostic study on yourself, and have a good overview of your current activities and involvements, you need to decide if these pieces are where you want them to be.

Are you spending too much time with your business and not enough with your family, for example? Or, are you so caught up in someone else’s problem that you haven’t made time to solve your own?

I once found myself so sucked into a Chamber of Commerce project to boost town retail traffic, that I ended up working nights and weekends just to catch up with my own business (which was not retail and stood to gain nothing from the initiative).

The crunch infiltrated my time commitments to my family. The small disruptions that surfaced were clearly the tip of cataclysmic explosion.

I extracted myself from the C of C mission and discovered — lo and behold! — the retailers I was knocking myself out to promote didn’t care enough to pick up the ball for themselves… AND, without all the volunteer work distractions, I was doing a better job of selling

This is NOT to suggest that voluntary community work is not worthwhile. It most certainly is. But I highly recommend such engagements be clearly defined, clearly justified, and clearly scheduled.

Plus –realistically — where choice is involved (vs., i.e., an emergency), no one should ever commit to helping others who is not coming from a position of strength to begin with.

A sick salespersonh is an ineffective salesperson. A cashpoor salesperson cannot donate to charities. A sales rep who’s preoccupied with family survival issues or debt collection issues cannot be an effective sales leader.

Draw your target again tomorrow. See if anything changes. Can make something change? Maybe if you stop juggling one fewer seagull, it will fly away!

The Inside Approach to Sales Productivity

In light of our unrelenting economic turmoil, companies are under enormous pressure to lower their cost of sales. Those with a direct face-to-face sales force are reducing sales positions, marketing staff, and support functions. These actions, in turn, are reducing customer relationships and market reach. So how do you address the critical issue of reducing cost of sales…while at the same time continuing to provide visibility with clients, create awareness with new prospects, and drive revenue growth?

One highly effective way to lift the productivity of your sales organization is through a well-run inside sales channel. Many inside sales channels aren’t being leveraged to their fullest capacity, nor are companies seeing the type of productivity “lift” they should be getting from a face-to-face salesperson once the inside channel is up and running. Here are a few checkpoints to determine whether your inside sales teams are giving you the highest return on your investment.

1. An effective inside sales channel helps the face-to-face organization have more time to spend on enterprise and larger opportunities. Don’t just organize inside sales reps around the SMB market—look at expanding to the national or major accounts. If you still have significant opportunity to cross-sell and grow additional business in your top accounts, put a telecoverage model in place where you partner field reps and inside reps together. The inside rep can focus on the less-complex products, as well as lead generation of more complex solutions to the field rep.

The field rep spends more time selling the larger opportunities and passing on the smaller ones to their inside partner. This type of model can also allow your field rep to cover more accounts and have larger territories. From the customer’s perspective, they now have someone available on the phone when they have questions and aren’t able to connect with their face-to-face rep.

2. Inside sales is just that: sales. If you are still caught up in a lead generation-only mode, it’s time to change. Why send out a lead for a simple product when it could be sold over the phone, freeing up your more expensive field resource to sell high-value products? And why have inside sales sell simple products that customers could buy from you over the Internet? It’s all about cost efficiencies and leveraging each channel in the product/solution complexity chain.

3. Are you getting too caught up in the measurement metrics of dials, talk time, and time between calls…and not focusing on what really matters, which is the quality of the conversation? Don’t get me wrong: I’m the first one to insist metrics must be in place and monitored daily. But metrics only tell one side of the story. If inside reps aren’t having good quality conversations and moving the sales cycle along, then the metrics become a futile exercise. Managers must be actively involved in listening to a rep’s dialogue, with the accompanying coaching, training, and support necessary to help improve their conversations.

4. Is your sales compensation plan driving conflict or cooperation between your field and inside channels? If you’re seeing too much conflict, there’s a good chance your coverage model and/or compensation plan needs work. Field reps may try to hold onto the simple transactions which they are comfortable with versus passing them to the inside. Inside reps may not be passing on the more complex leads soon enough, thinking they could become a hero by closing the large deal. Compensation should be driving the behaviors behind where you want each of your channels focused.

5. Do you have the right tools in place to make your team productive? Inside sales needs a “dashboard” to give them quick information for that next phone conversation. This includes an efficient CRM system, accurate account information on both clients and prospects, phone numbers and e-mail addresses, quick access to electronic marketing information, and proposal templates, to name a few. Field sales need these things as well, but an inside rep has great dependency upon the data and systems, as they should be making make 5 to10 times the number of calls per day as a field rep.

6. Is senior management supporting the inside sales approach, or is it just another program some hope will eventually go away? Creating an inside model should be of strategic importance to any organization—end of story. If inside sales is new to your company, it can also create concern among the field organization if they think its implementation threatens their jobs. They may also resist having someone else calling within “their accounts.” After all, we work hard to teach our field people to “own” their accounts, and now we are asking them to allow someone on the phone to build a relationship with their customer. This initiative necessitates leadership at the top, with a clear vision of the intent and goals.

Simply put, creating an effective inside sales organization requires hard work and nurturing. But when done right, the results can bring significant productivity to the entire sales process.

Mary Donato is President of Applied Principles and Associate Director of the Institute for the Study of Business Markets. She can be contacted at mary@marypdonato.com.

The cost of a lead in 2010

What is the cost of a quality lead in 2010?

Recently I was invited to a luncheon at a well known 5 star restaurant to listen to three executives tell me how their product (err, ahem, I meant SOLUTION) was more powerful with greater breadth of capabilities that “point solutions” from their competitors.

The interesting part is how I got invited in the first place. I am curious by nature. Moreover, I like to keep up on trends and in so doing, I can apply what I’ve learned to solve business problems for my clients. So, when this particular company was featured as part of a email campaign from an aggregator- (surely this cost them some money (let’s say .08 – 10. per click to develop and include in the email blast) I was curious about what they offered. At the time, I was working with Customer Service teams in a call center as well as keeping up on Social Networking.

That click-thru put me on the vendor’s web site where I opted-in to download a white paper. (The cost of the white paper? Let’s say $1000 conservatively if it was written in-house). Hence, I was now on the vendor’s email list.

An email showed up in my reader a few weeks ago inviting me to lunch at a very well known establishment. Lunch included a fresh field of greens salad with walnuts and Granny Smith apples in a light honey-based dressing sprinkled with crumbled Maytag blue cheese. Followed by a prime 8 ounce Filet Mignon (cooked charred rare- slightly warm center) with creamed corn, sugar snap peas and garlic mashed potatoes. Warm fresh break was served as well. Lunch concluded with a creamy chocolate mousse dessert and coffee. (The steak entree alone is $44.95)!

I certainly wanted to learn more and a free steak dinner for lunch sounded great! So I emailed back that I would be attending. I received an email confirmation. I also received a call from a friendly person reminding me of the date/time and re-confirming my attendance. I assured her that I would be there. About 40 people attended; both customers and “suspects” alike.

The three executives (as you might guess) were 1)the CEO of the division, 2) the Marketing Leader of the local Division and 3) A technical pre-sales person. All men. Suit jackets. Collared shirts. None wearing a tie. It follows then that the order of events during the luncheon were 1)An overview of how big their company was and how fast they had grown (”Google-like meteoric rise!), 2) A movie of how fast social networking was adopted compared to the radio and television, 3) The features of the software and 4) A demonstration of the software.

At the conclusion, the Marketing VP thank us for our attendance and warmed us that we would all be getting a call in the morning from their business development people who were going to set up appointments with each of us to come out and discuss how they could help us.

“So when you get the call and you are thinking about the steak you just ate, please pick up the phone”. Like I don’t have enough guilt in my life already?

So, I may have used the wrong term for the title of this blog; I am not a lead at all. They never qualified me as a potential person who might be interested in having a dialogue with them about how they could help. If they had asked me, I would have disqualified myself! Yet they spent the money on my “butt in the seat”.

Here is the real kicker- they are selling Customer Management solutions that are suppose to “automajically” help decide when a “live prospect” is on their web site or has responded in a certain way to their marketing materials, blogs, Facebook, tweets, etc. so they can respond quickly in the most appropriate way. With me, they missed the mark.

I will take their call tomorrow and share my thoughts. I may share it on a blog or a Facebook page. Millions of people may eventually read my thoughts. That is the power of Social Networking and Web 2.0. We all can type what we wish.

How many of you have found this approach to be beneficial? (I know that one deal pays for the whole luncheon, however….).

How many of you are tired of the 1,2,3 punch of My Company, My Products/Solutions, My demo?

How many of you put the customer’s priorities before your product/solution?

What is the cost of a quality lead? What is the price of poor execution?


Gene Carlino
Sr. Manager- Knowledge Advantage

The Selfish Bastard

Here is a reprint from a recent post in one of my LinkedIn Groups by Kavin Williams National Sales Director at MCF.

“The reason why sales professionals, in your organization, continue to struggle with uncovering opportunities, and closing business, is because they are either unaware of The Selfish Bastard Rule or are unable to adhere to it. The same is true for the majority of chief sales executives, whose sales strategies are driven by nothing more than a wild guess; and sales managers, who offer nothing to their sales teams except a watchful eye over their shoulder.

The Selfish Bastard Rule has two parts: (1) Buyers prefer to buy outcomes, not solutions, offerings, or commodities; and (2) Decision-Makers, when possible, will act in their own interest over that of their employer.

Any disconnect that occurs between buyers and a sales professional is due to the fact that while buyers prefer to buy outcomes; sales professionals sell solutions, offerings, or commodities. Simply put, they are not buying what you’re selling! Instead, buyers are left to figure out which solution, offering, or commodity offers them the best possible chance to gain the outcome they are seeking to buy in the first place. As a result, business is normally awarded to prospective vendors by default.

Hint: If you are an inward looking sales professional, sales manager, or chief sales executive whose activities are driven by what your company or product is or does, instead of the outcomes you can deliver, you are relying on the relative incompetence of your competitors to win or grow your business.

Your best chance of enhancing your sales performance and growing your business lies in your ability to: • fully capture your prospects’ desired outcomes • communicate that your company was founded on, and continues to be driven by, delivering those specific outcomes to similar organizations • further communicate that your company developed whatever you’re selling, specifically to deliver the outcome your prospect is looking to buy In other words, sell outcomes.

All decision-makers are driven to make purchasing decisions based on their need to either gain a desired outcome or avoid an undesired one. It’s that simple. Hence, your mission to be a more effective sales professional, if you choose to accept it, is to lead with your prospects’ desired outcomes and position your company, its offerings, features, and benefits as a means to deliver it.

Adopting an outcome-based sales approach is not a departure from solution or consultative selling, but, rather, the next evolutionary step. Although it is a small step, it’s a significant one. When selling outcomes, it is critical that sales professionals make the distinction between the outcomes of the company being called upon and those of the actual decision-maker. While they will share desired outcomes, it is important to note that among the desired outcomes not shared by both, those of the decision-maker will often take precedence.

Finally understanding and adhering to The Selfish Bastard Rule is critical in enhancing the competencies of sales professionals at all levels. It also serves as an effective guide for chief sales executives, who wish to set a strategic direction that will grow their business and improve their market share, and sales managers who wish to be active in leading high performance sales teams.”

What would you do to insure certain success?

What would you do if you knew doing it would prevent failure?

No matter what your role in your company, persuasion is the only thing that you will get paid for. Some say that “everyone sells”. Selling = persuasion does it not? The new car you tell your friend about as fast, fast, fast. The golf club that goes far, far, far. The sales discipline that helps you get more appointments, get more appointments, get more appointments.

What often gets lost in these “success stories” is the time and preparation that was necessary in the first place. Think about a time when you had to make an important presentation, prepare for an interview, go before the Board. You were most likely laser focused. You did your homework. You rehearsed your approach/dialogue. And it worked! And you told everyone who cared to listen of your “outcomes”.

We often hear the cliche “… you don’t get anywhere until you take the first step”. While true you must take the first step, you must continue making strides.

How do you continue making strides? What have you done to earn the right to a dialogue with your senior colleague? With the C-level executive you have been trying to get in to see? With your boss or with your team? Continuing to make strides means doing things on your own to create your personal brand. You are who persuades others. You know it works for others right?

The CEO of a small company recently brought in a professional coach to help her with her presentation skills. The project manager of a major electronics manufacturer recently had his team attend a session around business acumen in order to advance his initiative.

What have you done recently to know that if you did it, you would not fail?

The SALES Snow Job…

“Git yer shovel and hipboots, Mollie.  That slick sales guy’s back agin.”

When did you last encounter a slick, fast-talking sales-person who answered your questions like he was snapping a towel? A car dealership? Discount furniture store? Are these stereotypes? Sure, but the examples serve a purpose because they bring the worst images of sales to the surface. If we can know the worst case scenario, it’s easier to strive for the best.

The problem is, it seems to me, that many salespeople who appear to be best case scenario salespeople on the surface are actually worse than the worst underneath. They are the ones who are smart enough to recognize that nobody likes or buys a “sales hustle” anymore, that today’s consumers are more enlightened shoppers, so they blanket the truth with a snow job and hope no one notices the slippery ice below until the check clears the bank.

These are the same hot-shots who ignore or trivialize prospects’ concerns and create diversions by instead emphasizing the strengths of the product or service being shopped, to the exclusion of the weaknesses. It’s a throwback sales attitude that no longer tweaks the twitter, if you know what I mean.

But, hey, doesn’t every one in sales do that? No. True sales professionals treat prospects like family (well, maybe not including the dysfunctional cousins!). True sales professionals don’t dwell on weak sales points, but they won’t smoke-and-mirror the negatives into some dark corner either.

Professional salespeople build high-trust reputations at every opportunity. They are invested in selling as a career. They get the big picture of life. They seek to build a reputation for honesty, not deal-making. They want to be able to establish long-term repeat-sale relationships once the sale is made.

If you’re serious about sales and you should be if you’re a rep or business owner or manager … because your very existence depends on how effectively and genuinely you listen to customers and respond to their needs and concerns.

This includes being as open and honest about your product and service weaknesses as you are about the strengths. Leave the one-sided boasting to the advertising and PR people. YOU are the company in the customer’s eyes! Customers and prospects expect and deserve truth as well as benefits.

When a salesperson tries to give someone a snow job, he or she is starting out with the assumption that the customer or prospect is stupid. Beware: ANY assumption is dumb. (A good reminder:Expectations Breed Disappointment.”) By starting out with a snow-making machine and not giving the prospect a shovel and hip-boots, self-destruction looms on the horizon.

It doesn’t take more than a couple of minutes with Bing or Google to learn as much if not more than any sales rep, about a particular brand or product or service … and whether snow is in the forecast!

By HAL ALPIAR http://www.halalpiar.com

The Inside Approach to Sales Productivity

In light of our unrelenting economic turmoil, companies are under enormous pressure to lower their cost of sales. Those with a direct face-to-face sales force are reducing sales positions, marketing staff, and support functions. These actions, in turn, are reducing customer relationships and market reach. So how do you address the critical issue of reducing cost of sales…while at the same time continuing to provide visibility with clients, create awareness with new prospects, and drive revenue growth?

One highly effective way to lift the productivity of your sales organization is through a well-run inside sales channel. Many inside sales channels aren’t being leveraged to their fullest capacity, nor are companies seeing the type of productivity “lift” they should be getting from a face-to-face salesperson once the inside channel is up and running. Here are a few checkpoints to determine whether your inside sales teams are giving you the highest return on your investment.

1. An effective inside sales channel helps the face-to-face organization have more time to spend on enterprise and larger opportunities. Don’t just organize inside sales reps around the SMB market—look at expanding to the national or major accounts. If you still have significant opportunity to cross-sell and grow additional business in your top accounts, put a telecoverage model in place where you partner field reps and inside reps together. The inside rep can focus on the less-complex products, as well as lead generation of more complex solutions to the field rep.

The field rep spends more time selling the larger opportunities and passing on the smaller ones to their inside partner. This type of model can also allow your field rep to cover more accounts and have larger territories. From the customer’s perspective, they now have someone available on the phone when they have questions and aren’t able to connect with their face-to-face rep.

2. Inside sales is just that: sales. If you are still caught up in a lead generation-only mode, it’s time to change. Why send out a lead for a simple product when it could be sold over the phone, freeing up your more expensive field resource to sell high-value products? And why have inside sales sell simple products that customers could buy from you over the Internet? It’s all about cost efficiencies and leveraging each channel in the product/solution complexity chain.

3. Are you getting too caught up in the measurement metrics of dials, talk time, and time between calls…and not focusing on what really matters, which is the quality of the conversation? Don’t get me wrong: I’m the first one to insist metrics must be in place and monitored daily. But metrics only tell one side of the story. If inside reps aren’t having good quality conversations and moving the sales cycle along, then the metrics become a futile exercise. Managers must be actively involved in listening to a rep’s dialogue, with the accompanying coaching, training, and support necessary to help improve their conversations.

4. Is your sales compensation plan driving conflict or cooperation between your field and inside channels? If you’re seeing too much conflict, there’s a good chance your coverage model and/or compensation plan needs work. Field reps may try to hold onto the simple transactions which they are comfortable with versus passing them to the inside. Inside reps may not be passing on the more complex leads soon enough, thinking they could become a hero by closing the large deal. Compensation should be driving the behaviors behind where you want each of your channels focused.

5. Do you have the right tools in place to make your team productive? Inside sales needs a “dashboard” to give them quick information for that next phone conversation. This includes an efficient CRM system, accurate account information on both clients and prospects, phone numbers and e-mail addresses, quick access to electronic marketing information, and proposal templates, to name a few. Field sales need these things as well, but an inside rep has great dependency upon the data and systems, as they should be making make 5 to10 times the number of calls per day as a field rep.

6. Is senior management supporting the inside sales approach, or is it just another program some hope will eventually go away? Creating an inside model should be of strategic importance to any organization—end of story. If inside sales is new to your company, it can also create concern among the field organization if they think its implementation threatens their jobs. They may also resist having someone else calling within “their accounts.” After all, we work hard to teach our field people to “own” their accounts, and now we are asking them to allow someone on the phone to build a relationship with their customer. This initiative necessitates leadership at the top, with a clear vision of the intent and goals.

Simply put, creating an effective inside sales organization requires hard work and nurturing. But when done right, the results can bring significant productivity to the entire sales process.

Mary Donato is President of Applied Principles and Associate Director of the Institute for the Study of Business Markets.