Sales Laundry

Posts Tagged ‘Sales Process’

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:  What is the interrelationship between a sales process and the sales person’s natural style?

A:  A “Sales Process” should simply be a sales tool designed to get the greatest number of potential prospects successfully converted from “leads” to “landed” in the most efficient manner possible.

A “Sales Process” becomes overbearing at the precise point that it stops being a roadmap defining the most likely path for sales success and becomes an overriding dogma that must be adhered to regardless of customer, personality, situation or circumstance. When adherence to the process becomes so important/rigid that the sales process itself becomes an impediment to the sales of the very product the process was built to serve, it is time for a change.

Conversely, a “Sales Process” becomes ineffective at the precise point that it stops being a roadmap defining the best path to sales success and becomes an exercise in “style independence” with so loosely a defined process that the process again becomes an impediment to product sales. The rigidity of the sales process needs to be tuned to the product being sold.

Very knowledgeable customers making repeat purchases of commodity items could benefit by a very clear and rigid (to the point of being automatic, even) process. The floor of the NYSE being one example. Products being sold to customers with varying depths of knowledge or with wide ranging customer specific variations and infrequent purchase patterns require a more broadly defined “guiding hand” type of sales process, where listening, asking situation specific questions and conversation become more important than blindly following a rote process.

A well defined sales process should be malleable enough to bend to the needs of the product being sold and potentially the personalities selling it, as the product moves through its life cycle, anything else adds unnecessary friction.

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:  At what point does process become so overbearing that the sales person comes across as unnatural, insincere or insensitive? Conversely, at what point does style independence create disorder, chaos and inconsistency?

A:  A “Sales Process” should simply be a sales tool designed to get the greatest number of potential prospects successfully converted from “leads” to “landed” in the most efficient manner possible.

A “Sales Process” becomes overbearing at the precise point that it stops being a roadmap defining the most likely path for sales success and becomes an overriding dogma that must be adhered to regardless of customer, personality, situation or circumstance.

When adherence to the process becomes so important/rigid that the sales process itself becomes an impediment to the sales of the very product the process was built to serve, it is time for a change.

Conversely, a “Sales Process” becomes ineffective at the precise point that it stops being a roadmap defining the best path to sales success and becomes an exercise in “style independence” with so loosely a defined process that the process again becomes an impediment to product sales.

The rigidity of the sales process needs to be tuned to the product being sold.  Very knowledgeable customers making repeat purchases of commodity items could benefit by a very clear and rigid (to the point of being automatic, even) process.  The floor of the NYSE being one example.

Products being sold to customers with varying depths of knowledge or with wide ranging customer specific variations and infrequent purchase patterns require a more broadly defined “guiding hand” type of sales process, where listening, asking situation specific questions and conversation become more important than blindly following a rote process.

A well defined sales process should be malleable enough to bend to the needs of the product being sold and potentially the personalities selling it, as the product moves through its life cycle, anything else adds unnecessary friction.

Who is managing your sales force, your Sales Manager or your compensation plan?

If you said your compensation plan, the good news is you are in the majority. The bad news is your sales could likely improve 15-20% with a solid Sales Manager steering the ship.  Neil Rackham , in his book Rethinking the Sales Force: Redefining Selling to Create and Capture Customer Value, would say 17%.

When I find a Sales Manager that is giving honest effort but is not effective, it is usually because of one of these reasons.

1. The Sales Manager was your best sales professional and is still your best sales professional. Management? What management?
2. Most companies have a training program in place for new sales professionals and executive management, but few utilize any formal training for their Sales Managers. As a result, Sales Managers have no tools to help them manage the revenue production arm of the company, and run solely on gut instinct.
3. Sales Managers have a responsibility to complete a myriad of reports every week, with consequences for not getting them done. There is usually no compelling reason to make time for training or coaching exercises, and as such they don’t get done.
4. The Right Now. Sales performance is often measured on 30 day – 90 day increments on products and services with sales cycles that are much longer. No one dares to take their eye off the sales ball long enough to build in team development time.
5. The Sales Manager compensation model is out of line with company and/or the sales teams defined objectives.

Here are the first five tools I drop in my tool box when I am headed out to fix Sales Management related problems.

1. Put a “sales Manager” instead of a “Sales manager” in charge of your sales organization. Having the wrong person or personality type in the Sales Manager role is more often than not a significant part of the problem.
2. Train your Sales Manager. If you don’t have the budget, think of what an additional 15%+ in sales could do for your business.
3. Build training metrics into your Sales Manager performance measurements and make sure his/her workload will allow time to get the job done.
4. Build a model of continuous improvement into your sales process, making sure you do not shortchange your sales team’s growth and long term revenue potential for short term sales targets.
5. Align the Sales Manager job and compensation model with company goals to make sure a Sales Manager is watching and responding to the objectives and issues that are important to the company. Tie your Sales Managers compensation to the sales team and/or the sales professionals he is responsible for.

I want my Sales Manager to take care of his customers (the sales professionals he is responsible for) and keep the road clear of obstacles that might prevent them from doing their job.

I want my Sales Manager to be my eyes on the front line, making sure we are allocating our sales resources in the most efficient way possible to engage prospects and that he has and will use his authority to make necessary changes on the fly.

I want my Sales Manager continually engaged in enhancing or reinforcing the skill set of the sales team and identifying new ideas and best practices discovered by one sales professional and incorporating them into the entire sales team.

Put your Sales Manager to work growing your business instead of growing the stack of paper in your in-box. There is typically not another person in your organization that can have as much immediate impact for the dollar on your front line sales team as a well trained Sales Manager.

Have any Sales Management best practices or unique signs of spotting trouble?  I would love to hear them.

Image courtesy of  lumaxart

How much time does your sales team spend on revenue producing activities?

 According to CSO Insights in their Optimization:2007 Survey Results and Analysis report the actual amount of time a sales person is actively engaged in selling averaged just under 36%.  My own experience would suggest that sales professionals’ time spent on revenue producing activities is closer to 30%.  The best run sales organizations that I have experience with engage in revenue producing activities, at best, no more than 50% of the time.

 If you don’t know where your sales team stacks up, it is time to measure.  If you find your sales team is engaged in revenue producing activities at or below 25% of the time, then there is a distinct possibility that you could almost double your revenue producing activities and lower your Cost of Sales considerably.

 If you find you have room for improvement, here are some of the most common things that eat a sales professional’s time.

 Building Proposals/Quotes – Look to offload this function to a non-sales role or to a low cost sales role where the proposal building experience could be used as a training tool.  If that does not make sense for your business, build common templates and boilerplate text to simplify the process as much as possible.  Think about your likelihood of winning a project vs. the amount of time you are going to spend on the RFP.

 Lead Generation – The same CSO Insights survey highlighted the fact that 18% of a sales professional’s time is spent generating leads.  This subtopic is worthy of several posts in and of itself.  If leads are being generated for sales within your organization, look at the quality and quantity of those leads.  A large quantity of poor leads is almost worse than no leads at all.

 Sales Meetings – Many sales meetings continue well beyond their expiration date. Is there a defined agenda for each meeting?  What items could be better communicated in a less time consuming way?  What items could be eliminated completely?  Eliminating four hours of meetings could give you 10% of your week back.

 Managing the Internal Sales Process – In the early days of my B2B sales career I spent as much as five hours a week walking a signed proposal through our internal processes, getting items ordered, following up on backordered items the order desk failed to tell me about, making sure all of the items arrived, setting up delivery, coordinating installation, making sure we invoiced for the correct items/amounts, making sure we had applied payments correctly to make sure my commission check would be correct and assisting with collections when it became necessary.

 Map your own internal processes and look for ways to streamline your workflow and get sales disengaged as much as possible from this process.

 CRM Software Data Entry/Retrieval – CRM software, when designed well CRM can be a fantastic tool.  Designed poorly, it can be an agony inducing, time sucking vortex that is worn like a boat anchor around the entire sales teams neck.  

 Work with your sales professionals and watch how valuable data is recorded and retrieved.  Look at the areas they use most frequently and the specific steps they go through to get to that data.  Does that process make sense?  If not, do your own ROI calculation on getting customizations done vs. the sales time lost.

 One Software-as-a-Service CRM package I have personal experience with could waste as much as five or ten seconds on every click as data moved back and forth across the web.  In my own pursuit of efficiency, I found that I was losing up to half an hour a day to those delays.

 Expense reports and other administrative paperwork – Look at all of the reports and paperwork you ask your sales professionals to create and ask yourself two questions.  Do we really need this report?  Does it make sense that our revenue producers are spending time on this as opposed to selling?  If it makes sense, great!  Carry on.  If not, look for ways to improve or eliminate the process.

 One more point before we wrap it up.  Finding, offloading or eliminating these non-revenue producing tasks is only half the battle.  Before you begin, establish a baseline of calls/meetings and other revenue producing events so you have a gauge on which to measure your progress. 

 Recovering five to ten hours a week for each sales professional to spend on revenue producing activities is only beneficial if they actually spend that time on revenue producing activities.  From my experience, you will need to break out your training hat and work with what could be up to 40% of your sales staff on the best ways to use the “extra” time.

 Every time I have done this exercise I have been amazed by some of the low value tasks that eat up enormous amounts of time and unnecessarily increasing my Cost of Sales.

 One more last, last point.  To maximize the benefits of this process, do not let this exercise turn into a micro management tool.  Remember your end objective is to increase “customer-facing revenue producing time” not “looking over my shoulder, wondering who is watching me time.”

 We have barely scratched the surface here but I hope this gets you thinking, measuring and doing.  If you have a “best practice” that helps you measure your revenue producing activity percentage or keeps you or your sales team engaged in revenue producing activities, I would love to hear about it.  As always, give me your thoughts and let’s get smarter together.

 Click here to learn more about CSOInsights and their annual studies.

Photo courtesy of http://fasteddie.wordpress.com

In training new people to become sales professionals and developing them into successful sales teams, or building sales engines as I like to call it, I have found that how you allocate your sales team is just as important as the training and development that gets them ready for a sales career in the first place.

The default way to allocate sales professionals seems to put the strongest relationship builders and highest income earners on the largest companies/named accounts in a territory, and then allocating the balance of the sales team in support of those large account representatives or scattering them across the remaining territory, engaged in outside sales, inside sales, or sales support typically based on their years of experience.

This approach can anger and annoy customers and prospects alike. This method can also be an incredibly inefficient way to field a sales team that unnecessarily raises Cost of Sales.

What if we divided sales teams not by the size of the customer but by the way a customer prefers to buy?

Your company has customers that could care less about your sales team or interacting with them because the customer knows your products and their applications as well as you do, perhaps better because they interact with your products every day. Does it make sense to deploy a “relationship building” sales professional or a dedicated sales team to this large customer and raise your Cost of Sales by providing your customer sales resources they do not want or value?

Nope.

Regardless of the client’s size, if they are ultimately only concerned about bottom line cost, then provide a method to purchase for them that meets their needs. Let them order through an inside sales representative or build a nice functional online purchasing mechanism that makes sense for you and will let them do business with you in a way they prefer.

For those clients that value the expertise of your sales professionals, big or small, deploy your relationship builders and subject matter experts, delivering the products your customer needs and the support the customer values and is willing to pay for.

If you are thinking ahead a bit, you might envision a scenario where a very expensive relationship building sales professional could be assigned to a small opportunity with a company valuing your expertise that could be as wildly unprofitable as anything we have mentioned previously.

Your right. So, don’t do that. You need more than a sledge hammer and a flyswatter in your bag of sales tools. Allocate internet sales, inside sales, junior account managers, senior account managers, Subject Matter Experts, Field Overlays and your Sales Top 10% where it makes the most sense for your customer and the most profit for you and your sales professionals.

The one guiding principle of this model that needs to be understood is that regardless of how sales people and resources are deployed, they must meet or exceed the accepted level of service the customer requires. Under deliver and you lose the customer, exceed their expectations beyond the point of where a customer cares and you are unnecessarily raising your Cost of Sales again.

Before you begin a full sales retreat and cut your head count or risk alienating your customers by trying removing some of the perks customers have come to expect from a relationship with you, I urge you to reassess how you sell your products. Is it possible to cut your Cost of Sales by reorganizing your sales team to sell the way your customer wants to buy and continue to grow your company while your competitors are running for cover? I don’t know, but I certainly hope you will tell me when you find out.

Image is the sales team for Microbizz and provided by Microbizz.

Early into my sales career I found myself working in a regional electronics and appliance store trying to figure out how to sell the stuff I was surrounded by but had ignored my whole life growing up, appliances.

The #1 reason I wanted to know how to sell appliances was not for the noble purpose of being a knowledgeable source of information for customers; it was for a far more selfish reason, I wanted to beat Davis.

Even on my first day as a trusty new representative, I could see Davis was not a man to be trusted. He had shifty eyes, a smirk like he knew something you didn’t, and a good decade of experience on the rest of us. Picture Snidely Whiplash without the top hat.

Davis was the number one sales rep my first month at the store. He was also number one each and every month he had ever worked there. He was a selling machine and was being paid stupid money compared to the rest of the sales team.

How could a guy that looked about as trustworthy as a snake in a cage full of furry mice continually outsell every other guy on the floor? Why didn’t the customers see right through that stupid grin?

Trying to figure it out, I asked each and every other rep what they thought his secret was before my first two months was at an end.

“He just lies and tells them stuff to get the sale.”

“He has been here so long he has repeat customers that wait for him.”

“He steals sales on your day off.”

“The owner throws extra special customers his way.”

“Customers just don’t understand what a shyster he is.”

“He has good product knowledge.”

And finally…

“He is just good.”

It seemed easy to believe the repeat customer part, or that he had built up a client base that would come back to see him, but that did not make sense if he was lying to every customer he sold to.

The only thing I could see as a tangible difference was his product knowledge, so I set about learning about every item in the store. Anytime a manufacturer’s rep would come in the store I would quiz him about every feature and benefit to every box in the building that we carried.

I studied owner’s manuals (this was long before the Internet) and product sales literature. I watched the TV commercials to see how they were pitching the products. I even went to other appliance stores to watch reps, ask questions, and in general try to be an information sponge.

Finally, after six months of careful painstaking study I knew the story and feature set behind every product in the building and I thought for certain the very next month would spell the end of Davis’ streak of consecutive months at being number one.

I beamed with pride the first day of the month because I crushed Davis’ totals. I sold $2000 worth of merchandise, Davis sold $359 worth. Of course, it was a hollow victory, as that had been Davis’ day off and his one sale was a customer coming back with his card to buy a TV.

Day two, though, I was ready. I had a two pronged attack planned. I had massive product knowledge and I was fast, so I could out run Davis to the customers. I was certain with knowledge and speed combined, Davis would be doomed.

Davis crushed me.

Day 3. Davis crushed me.

Day 4. I was off. Davis crushed me.

Day 5. I was working. Davis crushed me.

With few moments of triumph, which I had already accomplished a time or two before I set my new strategy in play, that is how the entire month played out.

Finally, I decided Davis must have access to product knowledge through his experience I just did not know, so I decided to ask him how to sell Maytag washing machines, because Davis sold them better than anybody and they were expensive compared to the other brands for the most part.

What Davis said that day changed my perception of sales every subsequent day for the rest of my sales life.

He said “When a customer likes the Maytag’s, I sell them a Maytag. When a customer likes the Kitchenaid, I sell them a Kitchenaid.”

Don’t worry; it took me a bit of thinking to unlock the brilliance of that statement as well, so I followed up his statement with a very succinct question.

“Huh?” David laughed at me, looking at me like I was a little boy playing a game for the grownups.

“When the customer likes the Maytag, I tell them about how the small agitator in the Maytag washer is easy on their cloths, because friction with the agitator makes the cloths wear out more quickly. Maytag moves the water through the cloths, not the clothes through the water. Plus they are easy to repair yourself with front access and pieces that are user serviceable.” He said. “When a customer likes the Kitchenaids, I explain how the large agitator in the washer does a fantastic job of churning the cloths and scrubbing them clean as Kitchenaids move the cloths through the water and there are no belts that need replacing like there are on the Maytag’s. Get it?”

“Yes.” I said. I lied. It took even more thinking that night to figure out what he just said then it hit me like, like, like a truckload of Maytag washing machines.

I realized I had done all the research; from Consumer Reports to vendor reps and manuals, etc. and I had decided, based on my expert opinion, which products were the best and those were the ones I tried to sell everyone. If they did not see the brilliance of my logic, I would continue to whack them over the head with facts demonstrating why I was smarter than them and why they should pick the product I was recommending.

As a result I only sold customers I could shoehorn into what I thought was best, and I was taking way too long with the ones that were not listening, meaning Davis was selling more and getting to more customers.

Davis would steal a sale or two on your day off if you would let him, but he never tried to swim upstream with a customer unnecessarily to get them to buy what he thought was best. To his credit, the one the customer bought was the best one because that was the one that got him paid, not the guy at the appliance store across the street.

If you are selling multiple brands of essentially the same basic product, try to understand what each individual brand of that product type is trying to hang their hat on, so to speak.

There will be products selling on no other value than being the lowest price in the category, there will be products that try to offer a unique feature or service that they will try to differentiate themselves with and there will be the top of the line, feature rich models.

Which one should you sell? All of them. Ask your qualifying questions and listen to the answers. Let their needs and wants drive what you sell, not some preconceived notion of what you think is best.

Listen then educate, never dictate or pontificate.

I love cheesy sales one liners.

Image courtesy of newsday.com

For your 3 minutes today I will show you one consistent way to come across a little smarter to your prospect in a meeting and how to put them a little more at ease.  Planning is part of the conversation, so with that I am kicking us off with one of my favorite quotes on the subject of planning.   

 “You know what I noticed? Nobody panics when things go according to plan–even if the plan is horrifying. If tomorrow I tell the press that a gang banger will get shot, or a truckload of soldiers will be blown up, nobody panics, because it’s all part of the plan.”

-          The Joker (Heath Ledger) “The Dark Knight” 2008

Everyone, prospects included, likes to know there is a plan.  Everyone is happier, still, when they know what the plan is.  It must be hard wired in our DNA somewhere.

 Plans are everywhere.  Go to church?  They give you a church bulletin that lists everything that is going to happen, and we feel better knowing.

 Getting the car repaired?  As soon as we give them the keys we want a plan.  We want to know what they are going to do to it and when it will be ready.

 Going in for Surgery?  It is not quite as frightening when the doctor tells us his plan.  The same is true for every aspect of life, right down to our economy.  When everything falls to pieces and chaos ensues we move to the brink of panic until there is a plan to rally around, no matter how miserable the plan is.

 Want to seem a little bit smarter on your next account call?  Pre-plan the sales call.

Want to look like an expert and put your prospect a little more at ease?  Pre-plan your sales call and explain the details of the plan to your prospect up front and get natural human nature working in your favor.

Example: 

“Hello, Mr. Jones.  It is great getting a chance to meet with you today.  I have done some research, but if you don’t mind, I would like to ask you a few questions to get a better understanding.  Is that alright?”

 “Sure.”

 “Great.  I’ve got five or six basic questions that will fill in some gaps for me and give me a better understanding of your company.  That should take us about 15 minutes, depending upon your answers.  After that we should spend about 20 minutes drilling down into some specifics and identify a few areas where we might be able to help one another, leaving the balance of our time to wrap up any loose ends.  Do you have any questions before we get started?”

 When I was taught this it was called the Predict and Prove Method or the Sandwich Technique.  The objective is to predict the basics of what will occur in the meeting, prove your prediction by executing the meeting properly, and then following up at the end to confirm the fulfilled prediction with your prospect.  End result?  You look smarter and your client is not wondering where or when your sales odyssey will end.

 Got it?

 Good.  See you Monday.

 “I love it when a plan comes together!”

– Col. John “Hannibal” Smith (George Peppard) “The A-Team” 1983