Showing posts with label sales management. Show all posts
Showing posts with label sales management. Show all posts

Sunday, April 11, 2010

FOCUS Precedes Success--Where's Your's?

If your sales organization is trying to “right the ship” and get sales production back on track, here are FIVE key areas on which to turn your attention:

1-Attitude and Belief
“When fear and uncertainty are more commonplace in the customer’s mind, as they are in tougher economic times, it is imperative that the sales professional counters this with a strong level of confidence and credibility.”
Is it harder to sell today than it was two years ago? Most salespeople today would undoubtedly say yes! Prospects and customers are facing challenges that force their thinking to be more reserved and risk averse. There seems to less money available and more focus on pricing than in recent years. Salespeople are getting kicked in the teeth every day with pricing demands and perceived commoditization! There seems to be less buyers and more stress from management to get sales UP!! In fact, today it is very easy to become a VICTIM of the “perfect storm” many of us face.
The number one area of focus for salespeople (and thus, those who lead them) must be on ATTITUDE. In tougher economic times, the attitude and belief of our sales team needs to move up a notch to counter the negativity and challenges that they face. Attitude tends to drive the sales skills necessary for success. Attitude tends to define both quality and quantity of activity—both VERY important in slower times.
Here are a few ideas to give your people a “shot in the arm” and to drive that attitude and belief up:
**No VICTIMS!—Make it a policy to only speak solutions and NOT problems. Those who feel underwater (overwhelmed) typically are not far from drowning.
**READ—Your people need to feed their minds with the right stuff to counter all of the doomsday things that they hear and experience in the media and the marketplace every day. Start a sales book of the month club and stick to it.
**SHARE SUCCESSES—Don’t allow your team to get too mired down in the problems of the day. Talk about WINS twice as much as you discuss losses. Learn from all of them.
**TRAIN TO GAIN—Don’t fall into the trap of pulling back investment during slow times—that’s what their customers are doing. Get your people off-site and get their focus back on themes such as “WE CAN!” Consider retaining an outside speaker/trainer (I might know a good one) to facilitate and drive the message!

2-People and Performance
It is a reality that a more challenging selling environment tends to separate the winners from the losers. That may not be a politically correct statement but it is true! I find that when times get tougher, there are many (MANY) salespeople who roll up the proverbial sidewalks and hope to “ride out the storm.” There a few, however that take full advantage of this fact and use the tougher time to get closer their top customers AND their top prospects by working harder and adding significant VALUE! That is the type of ACTION that you need to have on your team now.
It is easy to hide when sales are going well. I am of the belief that many industries (real estate, mortgage, financial services) are coming off several years of irrational well-being which allowed for many salespeople to “pick the low hanging fruit” from the tree. If this recent shift in our markets finds your salespeople fruitless, you may need to take a good look at them. The fruit is still in the tree, we simply need to climb a little higher to get to it. Are your people willing to do so?
If things are not getting done today, there are only two reasons: Either they CAN’T do it or they WON’T do it! In either case, you need to address the issue:
CAN’T = Re-training opportunity. Define a clearer track for your people to run on today. Be clear with your expectations and performance standards. Define the “how to do” and “why to do” as much as you tell them “what to do!” Once the training is clear, it is up to the individual to perform. If they continue to be unable to accomplish minimums, you have a duty to do something about it. Tough times are no time to hold onto those who cannot!
WON’T = Attitude problem. These people (attitudes) need to be dealt with very decisively. Turning your head and hesitating to cut bad attitudes from the team in tough times is a kiss of death. Go back and re-read the above paragraphs on the importance of belief and attitude that increase in tighter economic times. Usher the bad attitudes and victims off your team ASAP!
Remember the old adage that states:
“If you can’t, I’ll TEACH ya—if you won’t, I’ll BEAT ya!”

3-Pricing Strategy vs. Value Strategy
Too often, I see many companies making concessions in their pricing models during tougher economic times. Due to the fact that our prospects and customers are more price sensitive, we often see price drops, term extensions and other similar negotiation dysfunctions. Although it is very natural for most people (ourselves and our customers) to believe that they do better by paying less, we KNOW that instead of offering lower prices, we should be doing MORE for our customers! (Value-Add)
If your customers are anything like mine, most of them didn’t wake up this morning excited to BUY or OWN your product or service. They do, however, have a desire to USE your product or service to accomplish something! What is THAT? More importantly, what is THAT today? Here are a couple of questions that you might ask yourself today?

**What do we do for our customers to help them succeed with our product or service?
**What do we do (or can we do) for our customers that our competition can’t or won’t?
**Are we adding value in the minds of the customer? Really?
**What is the experience that we deliver when a customer buys? How can we improve that in every area of the company?
**Where are the areas in our business that the customer is NOT getting taken care of or NOT feeling appreciated or important?
**If we lower price and cut margins today, how will ever get them back tomorrow?
**P.R.I.D.E. = Profit is Reflected in Daily Effort! Does our company (at every touch) exude that PRIDE that earns our margins?
**Do our customers feel more important when we drop price or when we help them succeed?

Don’t lower price---instead, sell better, add value, and build customer loyalty!

4-Communication andVisibilty

Many of the customers that we serve today are “battening down the hatches” and going into defense mode due to the economy. Many of our competitors are following suit; slowing things down, cutting back, visiting customers less, and trying to “watch the pennies” until these difficult times subside. It’s almost as if they are waiting for the next shoe to drop or counting the days until death. What an opportunity this affords us!
Now is the time to OVER-communicate in your company—to let everyone know that we have the competition “on the run” and that we need to be sharp, focus, and more customer focused than EVER!
In addition, now is the time to truly “move the dial” on your (value-add) interaction with your customers. Now is the time to be more visible, more consultative, more customer focused than you have been in the past. Many of your customers are second-guessing every relationship, every vendor, and every decision today. Here are a few good questions to within your team:
**How can we increase mind-share AND heart-share with our customers today?
**What do our customers VALUE most of all today? (Don’t say low price!)
**What do our customers want to avoid more than anything today?
**How can we assist in this area? (Even if it has nothing to do with our products?)
**How can we become a part of the customer’s culture this week?
**What indecision, doubts, and fears are my people experiencing today and how can we address & overcome them through communication?

When the going gets tough, the tough get going—and don’t go invisible!

5-Activity and ACTION

Just as mentioned above, uncertainty in the marketplace can often lead to a “freeze” mentality and a wait and see approach to decisions. Too often, in a sales environment, this can lead to Call Reluctance, hesitance, and indecision on the part of the salesperson. This often results in even lower sales due to less opportunity, due to less calls and prospect/customer interaction. Although this relates pretty heavy to the topic above, (communication and visibility) the willingness and ability to bust through your issues, your fears, and your indecision during tough times is absolutely imperative!
Many times, tough times bring about a SLUMP in sales. Just as with many things, I define a SLUMP in a classic acronym:
S---Saying Negative Things—This occurs when you or your people spend too much time focusing on what is NOT happening rather than the efforts necessary to change it is a ticket directly to LOSERVILLE!
L---Laziness of Purpose---This is a direct reflection on a loss of focus on “What you intend to be” that causes too much “what if” thinking and, thus no ACTION!
U---Undecided---Indecision is one of THE WORST things that results from a tougher economy (especially for a leader). There are three types of decisions: right decisions, wrong decisions, and NO decisions. Indecisions KILL a sales culture and a book of business. Make a decision and take ACTION---even if it is the wrong one, the decision to ACT identified the right one!
M---Misdirected---When we are negative, unsure, and undecided, we have a major tendency to work on the wrong things. Although we remain busy, the fact is that busy-ness doesn’t translate to business! Always stay focused on your highest and best use—especially during tougher times!
“Poor-Me” Attitude---Finally, the worst thing that a tough market can do to you is to get you or your people is get you in the role of a VICTIM! This place is a very difficult place to come home from so be steadfast in your focus to “catch yourself” and to “catch others” from going into the pity closet.

Pay attention to lack of activity, lack of focus, lack of attitude, and lack of belief within yourself and your team during these more challenging times. Each of these issues can (and often will) dig a deep hole from which it is tough to crawl. Don’t make issues worse by getting SOFT during this “recession.” Get clear, get focused, and get BUSY!

Tuesday, March 2, 2010

No More Low-Hanging Fruit...Now you Need to Climb!


"Look around the orchard of opportunity and tell me what you see."

Many of you see no fruit in the tree. Some of you see opportunity disguised as work. While it is true that opportunities are more challenging to identify today and even more challenging to get to, we need to realize two things:

1-The fruit is higher up in the tree--but it is still there!
2-We need to learn (or re-learn) how to climb!

On the ladder to today's sales opportunity, there are THREE rungs on which sales leaders need to place laser FOCUS:

ALL-IN
During a trying selling environment, many salespeople hold a “The grass is always greener” thought process. In other words, the thoughts of self-doubt, marketplace doubt, customer doubt, and “Am I in the right place?” doubt start kicking in and thus, they begin to begin to look around for new opportunity. You cannot blame them; their commissions are down, the customers are buying less, their prospects are in hiding, and very few risks are being taken by their customers. It’s gloomy---it’s dark---it is very challenging.
This type of situation is very dangerous for your company! With uncertainty in the minds of your sales force, nothing happens! It is time to circle the wagons and gain commitment from your team. It is time for a COACH (you) to gauge your team’s level of “buy-in.”
The sport (?) of Texas Hold-Em poker has become very popular today. Many times, tournaments are broadcast on television and online games are being held around the clock and across the globe. My favorite part is when a player is dealt a hand and, based upon his hand—or his strategy—pushes all of his chips (money) into the center of the table and declares that he is “All-In!” This means that he is betting every dollar on this one hand and that he is fully committed to winning it! The beauty of this in my mind is that it leaves no wiggle room—no back door! One hundred percent of his effort and focus is on the next few cards and he has no way out---no option but to see this hand through to the end.
Pull your sales team together NOW and figure out who is “All-In.” It is my belief that we, in the profession of sales, are either All-In or somewhat OUT. The latter of the two options can create major dysfunction in your sales organization and lost opportunity for your company. It is often the “glue” created by the leader giving solid guidance and coaching during this time that is needed most. Decide right now WHAT you need your people doing and HOW! Gain (or Re-Gain) their buy-in to the growth necessary to fight today’s battles. Those who are ALL-IN belong and those who are not………….?

ADD VALUE
What is it that your customers are going through today that is posing a challenge in their business? What is it that they value today? What is it that they want to accomplish more than anything in the upcoming 24 months?

Too often, there is a tendency to turn very transaction oriented in an economic downturn. We are too often more concerned with getting something (a deal/a sale) done that we lose focus on getting the right things done! We make concessions, lower prices and hope to hold on---in fact, only adding to our problems through margin erosion. We even train our customers to beat us up for lower prices and unhealthy terms. That is not adding value to your customers---that is only subtracting value for you!
It is now that you need to turn your focus on your customer’s needs. Most times, a customer does not really want to own your product or service. Instead, they want to experience a BENEFIT. So what does your product or service DO FOR your customer and how can you add to that in tough economic times? What is it that you can add to their business that your competition cannot or will not? Figure this out and turn your attention to this VALUE. Take action today!

TRAIN TO GAIN
Two of the things that get dropped from the focus (and budget) are training and marketing---two of the main things that drive new sales and account penetration! Sales Managers at this time typically focus on more activity; “Make more calls, see more people, get out there and fight!” The skill sets of our people need to be re-tooled constantly—especially in more challenging selling environments. Here is a very valuable exercise for you to go through with your team:
Identify the areas in which your salespeople need improvement. Not sure what areas these are? Then I suggest that you need to get out into the sales process with them! IN the meantime, here are a few ideas:
Prospecting/Visibility-If today’s clients are buying less and/or less often, it is imperative that we refocus the efforts of our sales team towards the identification and pursuit of new opportunity. Many of your salespeople have not been focused heavily enough on properly becoming visible. Now is the time to develop and track a New Business Development Plan with your team and schedule time every day to take action on it!
Questioning-The approach that your salespeople take every day with their prospects, customers and clients needs to be very focused. We need to communicate to the customer that we are focused on their issues and challenges---that we are different from our transactional competitors. This occurs with very focused, well prepared, customer focused questions. Think! Prepare! Ask!
Listening-What do you need your customer to admit to you, to share with you so that you might identify opportunity to serve them? What is it that you need to hear from them? Our sales training programs tend to be too focused on what to say and not enough on what we need to hear. Engage in an exercise to teach your salespeople to re-engage with their customers and to LISTEN with the intent to UNDERSTAND! If you are willing to listen to your customers, it can be amazing how clear they can be about how you need to run your business.
Networking-Now is an incredibly opportune time to work with your salespeople on how to effectively generate new leads for your organization through their visibility efforts in networking. I see to many salespeople mistaking the word not-working with networking. Develop a plan to sharpen your people’s networking skills today and begin scheduling specific opportunities to get out there and make the rain!
Referral Generation-The customers that buy from you today represent a substantial opportunity to help you grow your business. If you are turning (or returning) your team’s focus to adding VALUE to the customer as I mentioned above, you will earn the right to ask for VALUE in return. That should come in the form of referrals. Build a referral generation plan today and take immediate action on it!

By returning your focus to climbing the tree to get to the fruit you will re-establish control of your growth again. Take these three steps on the ladder to start your “climbing journey” today. The fruit is up there---you just have to go up and get it! By re-focusing with your salespeople on these three rungs on the ladder (All-In, Add Value, and Training/ReTraining) you can recapture the hearts and minds of your team and arm them with some forgotten weapons to differentiate themselves, and thus your company, in the marketplace.

For more articles and information on training your sales organization, please visit my website a www.GerryLayo.com or call us toll-free at 866-979-Layo(5296)