Sales Laundry

Archive for the ‘Sales Training’ Category

Q&A’s are excerpts of questions I have answered as part of Sales Laundry or other forums that I am apart of. If there is a relevant sales message for the masses I post it here to share, gather feedback and discuss.

Q: We have a strong sales guy, excellent with Small/Medium Enterprise accounts, but is obviously struggling to land large enterprise accounts and failing to sell them on our services.  He has not closed a single large enterprise opportunity.

I would appreciate any help in steering this guy in the right direction, any issues you feel they may have with these account types, and what plans/procedures/proposals may be put forward to resolve this issue. Thanks

A: The absolute best way to get to the bottom of the problem is to go with him on some SME account calls where he is excellent and some large account calls where he is struggling and see first hand where the challenges are getting the best of him.

The good news…

He is able to at least get an appointment with the Large Enterprise accounts, so he is able to convey value over the phone (I assume) to a viable company contact and get the meeting.

The fact that your sales professional is excellent with Small/Medium Enterprise accounts tells me he does have the ability to convey your products value to a prospective customer and secure a signed contract.

Areas to look for an answer…

The fact that he is struggling to land a Large Enterprise account does suggest some potential problem areas worth investigating.

1. SME accounts will almost always have fewer decision makers involved in making the ultimate decision to purchase your product while large accounts may have a handful of individuals scattered across the organization that need to be collectively convinced.

Look at who he is meeting with at the large accounts, is he uncovering all of the potential people involved in making the purchasing decision?  He might need help identifying who the key players are in large corporate environments and developing a successful strategy to get in front of all of them.

2. While he may be getting meetings at the large enterprises, I would evaluate his efforts at qualifying the person he is meeting with making sure they can make a purchasing decision vs. being an internal advocate that cannot influence vendor/product selection.

3. The problems of the SME customer may not be the same as the large enterprise customer.  If he is selling to the same pain points in a large enterprise as a SME account, he may be missing the mark by trying to solve problems the large enterprise does not have or are of too low a priority to garner immediate attention.

Ask him what pain points/problems he is trying to solve for the large enterprise and evaluate his answers with other sales professionals successfully landing large enterprise accounts.

4. Look at your historic sales cycles.  It is not uncommon for a sales cycle to be longer with a large enterprise account vs. a SME account because of the bureaucracy and volume of departments and decision makers that have to be won over to your offering.  Benchmark the sales cycle you went through to land your other Large Enterprise accounts and SME accounts and compare them to this sales professional’s benchmarks.

From my experience, the answer you are seeking is most likely somewhere within these four suggestions.  If, however, none of these seem to address the problem, pinpoint the specific areas (from first call to signed contract) where your sales process differs between your SME and Large Enterprise accounts.  Systematically work through each one of those identified areas with your sales professional as it is almost a certainty that one or more of them are the source of his struggles.

In twelve minutes, John Nese, owner of Galco’s Soda Pop Stop, is going to make you want a bottle of soda pop.  John is also going to teach you something that will change the way you look at soda pop from this day forward, and make you want to buy that bottle of soda from him.

A business focused on a niche makes for focused sales people.  Focused sales people become niche experts and niche experts, in many cases, sell circles around sales generalists without really trying that hard.

I like the way John said it better.

Ready for that soda pop?  Head on over to the Soda Pop Stop and say hello to John for me.

Networking.

Historically just saying that word out loud has made me think of smarmy business card exchange exercises with people that have a paper-thin layer of genuine friendliness masking unfathomable depths of desperation and a near unstoppable urge to smack you over the head with their latest product pitch just because you happened to be standing suspiciously out in the open, unprotected, and dared to make eye contact with them at a business after hours event.

Just typing that makes me want to go wash my hands.  Yuck.

Why then do we even entertain the idea of slapping a plastic grin on our faces and moving about uncomfortably stuffing our pockets with random business cards?

We do it because we have been told that “networking” is important to our careers.

Which it absolutely is.

Unfortunately, who ever tossed out that bit of sage advice failed to leave proper instructions on how to “network” properly.  Thus the “biological business card dispenser” model was born, and the mere thought of attending a networking event is met by most with the same level of disdain reserved for the drill at the dentists’ office.

We have been bamboozled, my friends.  That is  not “networking.”  That is just a more polite form of Rockum Sockum Robots I like to call “notworking.”

The right way to network

So how can anyone build a solid network of people to help their business without feeling like they have been collecting business cards while wading chest deep in a pool of snail slime?

Networking for me got a whole lot less “slimy” when I stopped thinking about “me” and about the important stuff I had to say and started listening to the person I was talking to, and thinking how I could help them solve their problem/be more successful.

With the simple change in mindset of looking to help someone else first, dozens of new opportunities to genuinely connect with people began to present themselves.

As you listen to someone talk you will discover some of the things that are really important in their lives and you will find some new paths to connect with them outside of tradeshows and seminars where you can form a relationship that can help you move right past the gate keeper when it is time to talk business.

Here are a few ideas to get the wheels turning:

Start with the small stuff

Everyone in the room has something in common.  They are people.  (Godzilla and Bigfoot do not typically attend these things.)  They are people that have, more or less, the same problems and daily challenges you face.  Start with the small stuff, share something personal, and let the conversation unfold.

Listen for all of the opportunities to help, not just the ones your company’s product or service can fix. Is their child having a hard time in school or looking for an entry level job?  Offer to connect them with someone in your network that can help.  Are they relocating?  Buying a car?  Need a new cell phone?  Need some contacts to get their business going?  Planning an anniversary?  Need help pulling off a customer appreciation event?  There are opportunities to connect at some level in all of the “stuff” we fill our lives with.

Figure out who you want to network with in advance. Do your best to figure out who you want to meet at an event and position yourself to make that acquaintance instead of randomly trolling about the room.  Research them online so you can pick up some of their specific interests and have something relevant to say.

Prepare a small secondary event. For the handful of people you meet at an event that you would really like to get to know better, invite them all to join you for dinner/drinks after the event to continue the conversation.

“Networking” does not have to be a negative experience that leaves you feeling like you just ate a four pound bag of French fries.  It can be a very rewarding experience to know that someone is better off in some small way because of your selfless actions.  I would sum it up this way:

“Listen and give and you will get more than you gave.”

There are some fantastic thought leaders on the topic of networking I urge you to explore.

Keith Ferrazzi, author of Never Eat Alone and current NY Times best seller Who’s Got Your Back is a great resource.  You can also tap into the Never Eat Alone LinkedIn group, of which I am a member, as well.

Andy Lopata, which someone in my network pointed out to me, also known as “Mr. Network” in the UK and author of two books on the subject of networking, Building a Business on Bacon and Eggs and …and Death Came Third! You can catch more good stuff from Andy’s blog Connecting is Not Enough.

Image courtesy of http://www.marriedtothesea.com

I was posed this problem recently so I thought I would open up discussion to you and get your input.  What is the best path to grow sales for this company based on what we know below?

A company is manufacturing and selling 25 different products.

Company sales are split approximately 50/50 between wholesale and retail channels.

Sales cycles are short, the company is on cash terms with most of its suppliers, but the five year old company is making a 20% profit annually on just under a million in revenue.

The manufacturing facility is at 100% capacity with no ability to outsource and does not enough cash/assets to leverage for expansion.

50% of company sales come from one product and demand is increasing.  The remaining 50% of sales is split evenly among the remaining 24 products.

Removing any one product from the lineup will anger some segment of the customer base and potentially impact sales to some unknown degree for every other product.

Cash flow is tight because the company is still paying off the last expansion and the largest customers want the company to extend Net 10 terms to Net 30 and some are asking for Net 60 terms on payment.

The sales team is being actively pushed to sell the entire product line every day.

You are hired as the companies first VP of Sales charged with overseeing a sales staff of 8 retail and 2 wholesale sales representatives and finding someway to get past these issues and grow the business to a point where the company can afford another expansion.

The existing retail sales staff is working at maximum capacity, and just able to cover sick days.  Customer service is at an acceptable level.

The wholesale sales staff is getting irritated because their income has been capped by the manufacturing facilities inability to increase supply, and competitors in the market are promising no such problems for sales staff working in their facilities.

If everything holds steady with no significant equipment breakdowns or cash expenditures, the President has told you it will be 3 years before the company can afford the necessary expansion.

What would be your solution to this problem and how would you grow the business?

Image courtesy of jefftzucker.wordpress.com

Big or small, we should all be actively working to prevent our products and services from sliding in importance for our consumers and being recategorized as a low priority as our customers retrench and re-shuffle priorities in this new economic climate.

What are you doing to raise your profile with your prospects and customers, compelling them to spend their hard earned dollars with you instead of sitting on the sidelines waiting for better days?

In this downturn, some huge companies are pushing new innovations to enhance the buying experience.  A few others are trying some far reaching ideas to connect with customers in a meaningful and personal way to gently nudge them into continuing to purchase their products.

Previously, I have written about what Kellogg’s is doing to make a bowl of breakfast cereal more important by tying breakfast cereal to our children’s education.  I have also written about Domino’s Pizzas use of technology to enhance the pizza delivery experience.

Today I noticed Microsoft paired itself with the infamous Jack Welch and Suzy Welch as co-hosts of a new online program (everybodysbusiness.msn.com) delving headlong into the problems faced by brand name (Hertz & Domino’s Pizza so far) businesses.  Jack and Suzy guide a diverse executive group in identifying some real challenges the company faces and then leverage the groups collective experience to find some legitimate solutions in a very candid way that makes you the viewer feel like you are sitting in the boardroom with them, watching and listening to an honest conversation you would otherwise never get to hear.

With the help of Jack and Suzy, Microsoft delivers valuable entertaining content that stands on its own, but still manages to drive the company message and squeeze in a stealth mini case study.  I for one am happy to report I did not feel like I had just swallowed a twenty minute Microsoft infomercial.

After watching this was I compelled to run out and setup a server farm driven by Microsoft products?  No, but I now understand in a subtle way that a lot of the technology Domino’s has in place across almost all of their stores, including their powerful online pizza delivery system is built on Microsoft technology, so Microsoft can probably handle the needs of my business.  I am not certain, though, how Microsoft fits into the Hertz solution by watching the show.

I just consumed a Microsoft case study reframed as (and rightly so) as a content rich business dialog with Jack Welch, and I enjoyed every minute of it.

Enough about Kellogg’s, Domino’s, and Microsoft, how can we make your product a more compelling purchase?  What can we tie your offering to that enhances you brand and ultimately sales?  How can we take a product that has dropped in priority with your buyers and get them snapping up your goods again?

I know several of you out there, so I am going to offer up a few ideas that will hopefully get you and everyone else reading this to expand your thinking.

Mortgage Industry. – Could you put together real/virtual seminars providing honest advice and resources for people struggling to pay their mortgage and help them save their homes?

If you could help me keep my home, or cross the great divide from renting to home ownership, helping me avoid the pitfalls along the way, you would earn my loyalty in a way the cheapest mortgage rate on Bankrate.com never could.

Copier/Office Machine Industry. – Every business of any size has some form of copier they bought/leased, right?  Could you setup business forums introducing clients that could benefit by doing business with each other?  Could you setup a lead exchange program identifying a need at one client business and passing that information along to another client business to potentially fill that need?

Bringing my business real leads and I just might be more likely to accept a slightly higher price for my supplies.  Real leads would certainly inspire my loyalty more than a cold-call walk-in four-legged (the new copier sales guy and his Sales Manager, typically) sales call ever could.

Can you think bigger?

Annual charity drives to collect reams of paper for a local school district or charity organization in your region?  Could you put together a toner cartridge recycling program for your city?  Have a big service fleet of vehicles?  How about delivering or augmenting Meals on Wheels efforts?

What about every other business?

How can you raise your importance to your community and the need for your product?  What programs or partnerships could you put in place to positively change the perception of your business and its support of your community?

Think out loud about your business and how you can raise customer loyalty and the priority of the problems your product solves in your customer’s eyes.

Think until you hear a “Wow” in your head, then tell me about what you came up with and let me know if I can help.

Through an odd set of circumstances I found myself touring the Lyndon B Johnson ranch outside of Johnson City, TX a while back trying to give my kids some perspective on history.

While looking at the hundreds of photos and exhibits across the three or four different sites I ran across a picture that gave me some perspective I was not expecting.

Under an otherwise typical picture in the exhibit of President Johnson shaking hands with an old gentleman with a bushy white beard was a crisp little quote that I almost missed.

“A five minute speech with fifteen minutes spent afterward is much more effective than a fifteen minute speech… that leaves only five minutes for handshaking.”

- Lyndon B. Johnson

As I thought about that statement my mind immediately jumped to the hours I have spent watching boring PowerPoint presentations wishing a hunk of ceiling would fall on my head so I would have a legitimate excuse to escape.

Then it hit me, (and not a piece of the ceiling, mind you) that spending hours writing and developing a presentation with little to no time spent developing a strategy to work the room post-presentation to communicate the important points face to face was just plain silly.

President Johnson figured out a long time ago that influencing the key individuals in the room that could be catalysts for the change he was advocating was a far more effective strategy than solely focusing on a big fat presentation.

Presentations are best used to lay out the facts as concisely as possible and not used as bully pulpits to agonizingly persuade an audience.  Face to face conversation, or “handshaking” as President Johnson put it, is where the deals really get done.

Long term success in sales is more determined by the network of prospects, customers, partners and friends you build than all of the killer 70 slide PowerPoint presentations you have spent all night cranking out.

Don’t get me wrong, a good speech or presentation can be essential to your eventual success but it does not have to last a lifetime in delivery.

The power in the room does not come from your presentation or your powers of persuasion but from the power of the prospects in the room and the strength of their desire to want to engage with you.

Presentations and speeches alike that are sharp, crisp, and to the point are, from my experience, much more effective than a gut-wrenching three-act opus that forces everyone to take a “bio-break” upon completion.

Use your speech to make them curious, use your handshake to make them customers, and that is a History lesson worth repeating.

Thank you, Mr. President.

Image courtesy of americandigest.org

Companies looking to hire key sales personnel in this recession should be excited about being able to pick up exceptional sales talent that would otherwise be unavailable in a better market.  However, what I am hearing from my friends and contacts is just the opposite.  They are telling me great sales professionals are just as difficult to find if not more difficult to find than ever.

Is your company facing a similar hiring dilemma?  Is your growth being hindered by your ability to find great sales people?

Then I will tell you the same little secret I told them.

Strategically I have always enjoyed selling into down markets as long as I was confident my number of sales professionals or department headcount would at least hold steady through the difficult times.

In down economic times I set a policy of continuous forward progress in the face of competitors buckling, retreating, cutting their sales force or taking other defensive steps.  Ideally when my competitors are pulling back I like to raise my sales headcount, increase our visibility and target key clients in a bid to gain marketshare from otherwise formidable competitors that have been temporarily knocked off their game.

If I am not in a position to bump my sales head count moving into a difficult economic period then I work through/replace my habitually poor performing sales team members (if I have any) with sales superstars that have found themselves unemployed for one reason or another and netting a stronger sales team as a result.  The key is knowing where to find them, and that, thankfully, takes me back to the point of this article.

The secret is that I do not place too much emphasis on requiring deep industry knowledge.  I find the exceptional senior sales guys in the market that already have the sales skills I am looking for, sans the bad habits, and teach them what they need to know to function.

From my experience it is much easier to convey product and industry knowledge to a smart, skilled salesperson than it is to convey the subtleties of sales to a “newbee sales toad” as one of my engineers used to refer to them.

There is no reason to shy away from older/experienced or out of industry sales reps.  As long as they still have that hunger to sell and have not been ruined by too many years of poor sales management, these guys are gold mines.

Ease your “must have” requirements for new candidates.  Requiring new candidates come to you with an established contact list, precise industry experience, a specific number of years of experience and exceptional selling skills is a tall order under any market condition and severly limits the candidate pool to the point of being too restrictive to allow you the flexibility to build your headcount and mentor them to take advantage of favorable market conditions when they present themselves.

Hire for the right character, sales training and ability to listen/learn and ignore the grey hair and non-industry experience.  I think you will find, like I have, that your industry/business is not that hard to learn and that a good hungry sales professional that can find the right contacts and get in the door can sell just about anything.

Image courtesy of uberreview.com