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Count your chickens

February 19, 2009 in Communication, Customer Service, Prospecting, Sales Relationships, Tips

Everyone I am speaking to, at least, are aware they are working in a softening market.  Some businesses of course are counter cyclical, meaning they can make money in these tougher times i.e. outplacement firms for all the obvious reasons, but they are more the exception.  If you market is softer or heading or a down turn it doesn’t have to be all gloom and doom.  It’s true now you have to earn your real money through proactive sales practices.

So with on the agenda, one of my clients in regional Australia kindly sent me a great article on “The three basic sales strategies in a softening market”.  It was presented at the client function of a regional accountant firm he had attended.  The article is by Robert Miller, who wrote Strategic Selling and set up Miller Heiman group.  Here the excerpt from the article:

“Here are three strategies proven by winners to work in a downturn:

  1. Count your chickens.   Make sure that you are looking after your existing customers better than usual (if that is possible) because there’ll be plenty of hungry competitors out there to do anything to steal them from you.  If you step up first, and raise service levels when everyone is talking doom and gloom, you’re going to be a beacon in the dark, and attract both old and new customers alike.  You’ll also raise the bar so high your competitors will waste a lot of valuable resources trying to jump over it.
  2. Find your lost chickens.  Lost and lapsed customers – and ones you just plan mislaid, are still more likely to buy from you again, than a new client.  So it makes sense to go back, find those lost chickens, apologise, crawl over broken glass if need be and win them back into your pen.  We all lose customer in good times for the simple reason that sales people like the thrill of chasing new customers more than the drill of looking after the old ones, so there will be lost chickens on your books.  If you dropped them because they would not meet your price, see if there is a way you can meet their price point profitably with and economy offering.
  3. Steal someone else’s chickens.  With competitors cutting service levels you have the perfect opportunity to raise yours (having first done if for your own customers, you should be good at it!) and steal their chickens.  If you’ve retained all of your sales force when the market is rife with lay-offs, you’re in the perfect position to ask your entire sales and service teams to step up to a new mark and secure their company’s future (they know they are thereby securing their jobs, so you don’t need to raise this as a threat).

The odds are in your favour
Here are some interesting odds calculated for four types of sales behavior.  They might not be precise for your industry, but I’ll guarantee their relativity is accurate regardless of your market:

  1. Sell a current customer a current product: 2:1
  2. Sell a current customer a new product: 4:1
  3. Sell a current product to a new customer: 8:1
  4. Sell a new product to a new customer: 24:1”

I found this to be a true in most situations and a useful guide to keeping your sales pipeline fresh and full in these softer markets.

Happy counting chickens and selling.

Leadership, Sales and a Clear Message

January 16, 2009 in Communication, Ethics & Values, Marketing, Prospecting, Sales Leadership, Sales Training, Strategy, Success

Welcome to 2009.

Over the summer break I was talking with a number of friends about what 2009 will hold for us, our families, our communities and our businesses.  Without exception, we discussed the current and possible effects of the GFC (global financial crisis) on our markets and especially on our thinking and our actions moving forward.   We discussed the importance of open, clear and honest communication and decisive leadership, clear goals and defining what we stand for.

We discussed the fact that it would be very hard for people to make ‘easy’ money this year  i.e. playing the stock market, etc. No more making money by just moving money around.  And that people now needed do some real work to get real revenue coming in the door.  (not that some of us weren’t doing that already.)

It was mentioned that the current market conditions call for people to draw upon the ‘real’ money making skills of ‘Selling’ and any businesses relying solely on:

  • Blanket Advertising, or
  • Their technical capability, or
  • Passive referrals, or
  • Brand or reputation. or
  • SEO alone (depending on your market model)

will suffer as a result.

And those people and businesses who haven’t integrated their sales and marketing initiatives and invested in developing their sales people’s prospecting and sales skills will be left wanting this year as well.

We acknowledged that this is the year where leadership and people’s real sales fitness levels and skills will be put to the test and further developing our leadership, sales and business development capabilities skills is critical to not only survive but thrive.

Many of the conversations reminded me of the late 80’s and early 90’s markets when I was working as a recruitment consultant and the lessons I learnt in how to really make the most of tough times.  I wrote about this on 4 February 2008 in Watch who you let near your mind

In my opinion, this year calls for focus on 3 key areas:

  • Clear and decisive Leadership
  • A clear market message of intent
  • A proactive, disciplined, ongoing sales effort

This is the year where people and businesses need to prioritise and focus on these core areas that will help them make 2009 work for them and their customers.

The SmartCompany.com.au webinar (15/01/09, download the audio file here for free) featuring IBIS stated about 65% of a business’ success will depend on leadership effectiveness and how honestly and ethically you face the challenges ahead.

I can’t agree more.

My friends and I discussed our leadership approaches and what messages we are putting out to our staff, our clients and our markets.  How we are communicating our intentions to participate in the business world.

Clear plans, goals, honesty, ethics, values and trusted relationships all featured heavily in how we would and should communicate where we stand and what we stand for and how we wanted to be communicated with ourselves.

We didn’t want more hype and ‘promises’ that can’t be backed up by evidence, transparency and trust.  We want to give our people a reason to step up and be counted.  We want our people to be clear about what we do for our customers and confident and competent to get out there and genuinely connect with our market place, our customers.

Having a clear market message your sales people can communicate to customers in a way they can understand, relate to and action is vital in uncertain times.  To illustrate the point, one of my close friends was in New York and London in October 2008 when the GFC was in one of its first full free falls and said the difference was clear.

In New York the atmosphere was distressed, disturbed and directionless, a real helplessness seemed to prevail.  People were complaining that there were no messages being broadcast or communicated at all by the US President or his Administration.  They bemoaned the lack of leadership.  Where as in London, love him or hate him, Gordon Brown was communicating with the media every day about what he and is Administration they were doing.  While people were rightly concerned about the GFC, the atmosphere was somewhat different.  My friend said people were resigned to the fact they needed to deal with the GFC.  Instead of feeling helpless they were already looking for solutions.

In my experience it is better to know if it is good news or bad news than no news at all.  This way you can take action and keep moving forward.  Therefore in uncertain times it is even more vital that our leadership is evident and our market message is being heard and understood with the best intentions and right outcomes.

Here are some questions you might like to consider regarding your key market message:

  • What key message(s) are you giving to your prospective market about how you intend to operate this year?
  • How is the message(s) being received and understood by your sales people?
  • How is the message(s) being delivered by your sales people and received and understood by market?
  • How can your customers take action and work with you?
  • Can your customers  trust you to be a valid business partner with them in 2009?

Now take your key message and couple this with a Proactive Sales approach.  If you haven’t already, you need make sure you and your sales people know and understand the message and can then get out there to connect with, listen to and understand your customers and prospects so you are in a position to really understand how they think and feel and what decisions they want to make this year and where you will feature in that relationship.

Unlike advertising, selling is the vehicle that gets you in real and direct personal contact with your market, your customers and your prospects.  This is where you have real conversations about real business, real priorities and possible solutions.

If you are not already talking with your customers, referrals and prospects you need to be NOW.

I encourage you to make sure you call as many customers, referrals sources and prospects as possible because, if my 25 years+ sales career is anything to go by, there are a lot of changes happening out there and it’s not all bad news.

In fact when I returned from leave on 12 January I spent the better part of that week calling as many clients, past clients, referrals sources and leads as possible and will continue to do so this year.  The amount of changes, information, leads and opportunities I unearthed as a result of making these calls in one week alone was fantastic.

And if you not convinced, take a leaf out of one of our larger clients who, despite the GFC and really tough market conditions, have prioritised sales fitness as one of their Top 3 business priorities.  The other two being clear leadership and clear market messages.  They have invested heavily in training and up skilling their regional and rural business sales teams in sales vision, planning, sales prospecting and selling process.

Despite the drought and tough times these sales people are out there selling and communicating that they are there to do business and its working.  Even though it is still early days they are finding viable deals and good clients to do work with despite the challenging markets.  They are being supported by their managers, who in turn are trained to deliver effective sales coaching and provide sales leadership to make sure this in a ‘way of life’ not a fad.  They all know this a vital life skill.

By focusing on:

  • Clear and decisive Leadership
  • A clear market message of intent
  • A proactive, disciplined, ongoing sales effort

They have also found there is greater team unity, better cooperation and collaboration with each other and with customers, greater sales results and better margins.

So don’t hesitate!    Get clear, get focused, get active.

There is business to be done and business to be won.

I wish you happy and prosperous selling in 2009.

Create your own opportunities

October 24, 2008 in Attitudes & Behaviours, Call Reluctance, Prospecting, Strategy, Value Creation

Just one idea can positively transform your life, career, income and wealth.
As I have written before, in uncertain times, we can let the negativity of current events and others consume us or we can continue to look for opportunity. Excessive worry, however, can often cause us to lose sight of our goals and can limit our creativity and problems solving capabilities just when we really need them.

These tough times call for us to be even more innovative, inventive, creative and persistent. Some of the most successful sales people are the most adaptive and creative people you can meet, especially when it comes to finding new markets and new ways to solve customers’ problems with their products and services.

As the saying goes “Necessity is the mother of invention’. And in these tougher times it is not only necessary to keep our sales activities going and ensure that have enough people to speak who can work with us but to think creatively about how we going to do that.

Does your thinking or sales approach need a refresher?

If you are feeling in a bit of sales slump here are some questions to consider that may help you keep your ideas fresh, check for any blind spots and help you create opportunities so you can keep your prospecting and sales efforts on track:

  • What are the current boundaries or rules in your business, team or area of expertise?
  • What are the rules that can increase the likelihood of success in your business, your team’s field of expertise? Rules can be formal (written down) or informal (spoken or implied). How do these rules help you solve problems?
  • List 3 times when you didn’t listen to an opportunity and it hurt you, your team / business. What can you learn from this?
  • What were the rules you followed that kept you from seeing or taking advantage of those opportunities?
  • What changes can you make to your thinking to increase your imagination and flexibility and create more sales opportunities?
  • What is impossible to do right now, but if it could be done, would fundamentally change you, your team and your business for the better?

Often times our customers can have the answers to these question also. So if nothing get out there and ask them for feedback about how you can all work together more effectively and creatively get through these challenging times in good shape.

Persistence and the Honourable Retreat

October 15, 2008 in Attitudes & Behaviours, Call Reluctance, Prospecting, Self Promotion

Did you know:

  • Over 50% of sales people give up at 1st contact if they get a ‘NO’ from the prospect never to go back to that prospect again .
  • At the 5th contact 7% of sales people are left to speak with the prospect to see if they can do business together.
  • At the 8th contact there is only one sales person left to work with the prospect. Hopefully it is you.

Many sales people, especially those new to sales, often take it personally when a prospect says ‘NO’. Many fail to persist and often fail to favourably position themselves to ‘leave the door open’ for future contact thus limiting their sales opportunities even further.

Now I understand there can be a fine line drawn between persistence and harassment, however in order to have a steady stream of sales coming in the door we need to ensure that we have a regular mix of prospecting activities happening on a daily basis.

Sometimes we will strike viable and interested prospects and other times we come across viable but not interested prospects. Don’t burn those viable and not interested prospects as they may become viable and interested in the future. But you will never know if you don’t go back.

Here are some handy hints to make sure you can go back to these prospects in the future and give yourself a chance of working with them.

Don’t take it personally
If a prospect doesn’t commit to seeing you it could be due to one of the following reasons:

  • They do not have a need right now
  • They do not fit your target market
  • They do not perceive having a need right now
  • They have other associations or relationships
  • They are not convinced they need to see you

Honourable retreat
Don’t give up. Whenever you make contact with someone make sure you always leave a favourable impression. Make sure they felt it was worthwhile to speak to you even if they don’t fit your target market – you never know who they might know.

Allow for the honourable retreat if they cannot meet with you now:

  • Seek permission to send some information for their review
  • Seek permission to follow up in the future
  • Seek permission to keep in touch in case their current suppliers cannot support them in the future
  • Ask for a referral

Follow up with persistent daily effort
Choosing your state of mind, your attitude, is critical in when prospecting and selling too. Successful salespeople know that prospecting doesn’t happen by chance it is requires a consistent and persistent effort.

Successful sales people:

  • Diarise follow up calls
  • Use a CRM to track activity
  • Keep a number of activities on the go
  • Prioritise
  • Persist

Happy and prosperous selling

Locating Prospects

September 17, 2008 in Prospecting

In the sea of information that is the internet and the ever growing networked communities we live in, you could essentially get a sales lead from anywhere. In principal this sound great. You always have someone to call on or prospect too.

However having too many choices can often lead to feelings of being overwhelmed by too much information. And when you have too much information this can lead to indecision and subsequently inaction. And inaction is the NUMBER 1 killer of any sales prospecting strategy.

So where do we start to sort out where we locate prospects? Besides the internet I find locating prospects come for the following areas as well:

Referrals
A name given to you as a lead. Choosing your time to ask for referrals is important. Wait until your customer has been able to judge you and your ability to meet and exceed their expectations. A good referral program is highly effective if you have a proven track record of in keeping promises and providing outstanding solutions and service.

Introductions
A variant of the Referral technique. It involves also asking for names, the salesperson asks for a note or letter of introduction to the prospect. This is most effective when prepared as a testimonial from a very satisfied customer who holds you in high esteem.

Centres of Influence
Centre of Influence refers to a well-known, influential person who can help you prospect and gain leads. For example, Accountants, Lawyers, Business Owners, Teachers, Politicians. First gain this person as a satisfied client and then solicit their help. You can also consider joining a community or social organizations to access Centres of Influence.

Organisations
Community Groups, Business Groups & Professional Associations can be a valuable source of prospects. These groups generally meet on a regular basis, providing you with an opportunity to build relationships. However, to make this approach beneficial, you must 1) set contact goals for each meeting, and 2) you need to communicate to the group what you do, offer assistance and make positive contributions. If other members see your involvement as being purely self-serving, this technique will not be beneficial.

Non-Competing Salespeople
Other salespeople can be a great source of prospects’ names and valuable information (this excludes confidential information!) about prospects. The key to this approach is reciprocity – ‘ you scratch my back and I’ll scratch yours’. Establish relationships with non-competing suppliers and consider going out of your way to offer information to a non-competing salesperson about an opportunity you know of. The favour may well be returned when you least expect it.

Visible Accounts
This is where you consider cultivating visible and influential accounts that will influence other buyers. These accounts can give you credibility and make you attractive to other buyers.

NB: just make sure you are clear about the types of customers you need to call on as part of your sales plan and strategy.

Happy selling.