SalesBlog

Archive for the ‘Sales Talent’ Category

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Is internal competition eating away at your sales results?

Thursday, July 1st, 2010

Many sales cultures are traditionally based on respect for authority, status and success, and encouraging competitive, challenging and achievement-oriented atmospheres. Although this is not true for all businesses, especially in the 21st Century! There are a growing number of businesses adopting more collegiate, lead team approaches. However, despite different types of cultures, sales performance and results are usually derived from the efforts of individuals. Harnessing those individual efforts to achieve synergy (the sum is greater than its individual parts) is a key task of management, yet so many get it wrong. Let’s take a look at one case study and see why.

What is wrong with the following scenario?

  • Sales team has great products and service proposition and is part of an international business
  • Sales team is made up of individuals who are measured on achievement of individual sales targets
  • Each sales person is given a base retainer but earns the vast majority of their income on commissions made from sales converted
  • There are a couple of high achieving sales performers, some average performers and some new sales people yet to prove themselves
  • Annual staff turnover of sales staff has been about 30-40%
  • Average tenure is 18 months
  • The sales team is a state team all working in the same city
  • Sales performance is purely measured on sales revenue results
  • Sales League Tables are on public display showing who is ‘top sales dog’ each week
  • The sales culture is based on respect for authority, status, success and competition
  • The workplace atmosphere is competitive, challenging and achievement-oriented
  • The sales people do NOT work to specific territories/markets or customer segments to manage and grow, instead it is ‘first in best dressed’
  • The competitive environment encourages sales people to fight over leads that come into the business leading to ‘bullying’ tactics, attempts to ‘outdo’ each other, squabbling and fighting over who got to that client first
  • Sales people ‘sand bag’ lists of clients just to make sure that the other sales people do not get them even if they themselves are not working on those leads at present
  • Management provide no selling skills training, no sales coaching, no sales support, no CRM, no documented sales strategy nor a ‘go-to-market’ plan
  • There are no formal sales management practices in place except for the weekly sales meeting which deteriorates into an ‘I’m better than you are’ bun fight

This is an example of lazy and ineffectual management. Only focused on outcomes with no regard for strategy, team structure, performance quality, clear leadership, staff retention, values or culture, this sales team is not geared for high performance and continues to lag behind its true potential.

Why create competition where it doesn’t need to be?

Why make selling harder than it needs to be?

‘Old school’ sales management said that you had to have sales people competing with each other or they wouldn’t sell. You weren’t a legitimate sales team if you didn’t have league tables. They said that internal competition would motivate people to sell more. Well they are wrong. The scenario above is not uncommon. It reflects an actual real life situation – happening right now.

This archaic approach doesn’t work. It’s outdated and old fashioned. If you want to generate real sales growth, try harnessing the energy, talent and ambitions of your sales people in a constructive way where they can all achieve their individual goals along with those of the company without trying to ‘kill’ each other in the process. Remember the old saying ‘a team of champions will not beat a champion team’?

Remember everybody lives by selling something.

Author: Sue Barrett, www.barrett.com.au

How do you create future sales superstars?

Wednesday, June 23rd, 2010

How many of us entered our sales careers with our eyes wide open? Fully aware of what it takes to be an effective sales person – ably resourced with the tools, processes, plans and support essential to our success. Knowing full well what you were getting yourself into.

For most, if not all of us, our initiation into sales was nothing like this, and was cushioned with little or none of these luxuries. Does the analogy “sink or swim” resonate with anyone?

All of this makes the story I am about to share quite unique and refreshing. Recently, some rather clever and farsighted managers gave some very fortunate young people the opportunity to get a large glimpse into the world of selling.

Here is their story: Two senior managers from one company, both whom I have known and worked with for many years, had the presence of mind and foresight to think ahead and tap into the desire of some of their younger staff to advance their careers.

Their business is in the industrial equipment market where they sell new equipment, spare parts, service and rentals. Recently, they advertised for a new service sales person and received, amongst others, applications from several of their internal service technicians.

The senior managers took these applications very seriously. However, they could not appoint any of their internal applicants because they had no experience and very little idea about what it takes to be an effective sales person. Thinking about the future of their business, staff retention and the desire of these young people to advance their careers, the senior managers took it upon themselves to give these driven and ambitious staff the opportunity to really understand what selling is all about – so that they could one day go in into a sales role with their eyes wide open.

This is where Barrett came in. In discussion with the managers, we developed a one day session where these young participants explored topics like:

  • Why sales matters
  • The changing face of customers and what they really want
  • Ethics in selling
  • Missed and lost opportunities
  • Critical success factors, and key qualities of the 21st century sales performers
  • Olympics Game – our sales fitness and simulation exercise which tests peoples’ natural sales capabilities and gives them real time feedback
  • The sales essentials overview:
  1. 5 step sales planning process
  2. 4 step sales prospecting process
  3. 7 step sales communication process
  • Skills you can apply NOW to build your steps to being a sales performer

As part of the session, we pointed out that even if they were not currently in a sales role, there were still numerous, valuable things they could take from the session and apply immediately in their current roles. Skills, knowledge and insight that would (and did) serve them, their customers and the company well right now, as well as lay the foundation for when the time comes for them to knowingly and willingly step into a sales role. Things like:

  1. Knowing, understanding, communicating and modeling the vision, key message and promise, values and customer service ethic of the business
  2. Knowing how to make effective phone calls to clients, etc. – being clear about the purpose of their calls and how to position themselves confidently (this relates to how to make prospecting phone calls)
  3. Recognising and understanding different communication styles and how not to confuse different with difficult
  4. Knowing how to ask good questions to clarify and verify their understanding.

What was most impressive was the prolific note taking, questioning and genuine interest in really getting a handle on what it takes to be a great sales person. For me it was one of the most enjoyable and inspiring days I have had in a long time. There is nothing like working with people who really want to be there and be their best.

All the people I have shared this story with in the last month have all expressed the same wish – that they had had the chance to experience such a session before they became a sales person.

All credit to Cameron and Mick for having the wisdom to provide this opportunity to their team. I am sure that the benefits will be varied, significant and long-lasting.

Remember everybody lives by selling something.

Author: Sue Barrett, www.barrett.com.au

How fit is your sales team?

Wednesday, April 7th, 2010

Earlier this year we had the opportunity to put a client’s field sales force through the Barrett Sales Fitness Circuit to test their sales fitness.

The Sales Fitness Circuit is designed to reinforce and continue the process of learning from the Barrett Sales Communication Training. The Sales Communication competencies (skills, knowledge and mindset) covered in the initial training is put to the test through a series of exercises. The aim is to embed the learning from the training as a way of life in the sales team’s actions and thinking.

Specific skills, competency enhancement, and behaviour change were supported during the Sales Fitness Circuit Course through:

  • Reviewing and reinforcing key learning’s from the 7 Step Sales Communication Process, in particular the Pre, Analysis, Problem Solving, Recommendation and Closing steps
  • Sharing lessons learnt and obstacles experienced in using the models, techniques, and skills in the field
  • Reflecting on strengths and areas requiring further development
  • Developing individual action plans to address skill gaps moving forward

The Sales Fitness Circuit Course provided an experiential and high impact learning opportunity.   The 1-day session is designed to be fun, high energy, and collaborative. It creates an effective learning environment that combines conceptual knowledge, real sales situations experienced in the field, and reflective learning.

Like the physical fitness circuit you would see in a gym or on the hit show The Biggest Loser, the elements of the Sales Fitness Circuit included:

  • Sales people worked in discrete teams
  • Each activity is set up as a station in the circuit
  • Each station simulates a different activity requiring the use of Sales Communication skills, techniques and tools
  • Props and visual cues were used at each station to enhance the experience and recall
  • Teams rotated around the stations receiving instructions, feedback, and wrap up from the ‘Sales Fitness Instructors’
  • Participants were required to perform under time pressure, simulating the real pressures in the field
  • No one salesperson was able to complete all client interactions on behalf of the team
  • Competencies positively demonstrated were reinforced throughout the circuit via allocation of points
  • At the end of the circuit prizes were awarded to teams and individuals who demonstrated exceptional levels of sales fitness
  • Participants observed others in action and were encouraged to reflect on potential positive and negative consequences of different approaches
  • The participants collaborated at the end of the circuit to rate their overall sales fitness as a team across the key competencies

We have run this circuit format with many sales team sizes over the years and the feedback has been fantastic, even though some people were really challenged by it.   The insight people get into their skills and capabilities by really putting themselves to the test helps them see what they need to do and how they need to perform if they want to step up and be real sales performer.

If this has got you wondering how fit your sales team is give us a call and we would be happy to put them to the test.

Remember everybody lives by selling something.

Author: Sue Barrett, www.barrett.com.au

What do your sales people really need to know and apply?

Wednesday, September 9th, 2009

In today’s market selling skills training does not equal product training or pressure tactics.  If product training or pressure selling (the hard sell) are on the top of your sales training agenda or the only training you offer your sales people then you may want to rethink your sales training strategy.

What is expected of sales people today by way of skillful thought and action goes way beyond the product or the hard sell.

Let’s first look at what clients want.  This will then help us determine what sales people need to be able to do.

Clients today have access to more information than ever before. Clients can make product versus product comparisons very easily.  And most clients know what they are after even if they don’t know how to articulate it. Clients don’t expect to be coerced, bullied, tricked or intimidated into buying either.  They don’t expect to be treated like an ‘idiot’ or a ‘sucker’ by sales people who just talk at them and flash brochures or product sheets, looking for someone to boost their commissions.  Nor on the other hand do they necessarily want to make ‘friends’ with sales people.
Clients expect to communicate and deal with a real professional who knows their own business and how they can best serve their clients’ needs with creative solutions and fresh ideas.

So, what do clients want from sales people?

  • To deal with a real professional
  • To be ‘helped’ and understood
  • Business acumen and commercial awareness
  • A definition of what ‘success’ will look like
  • A planned approach for change
  • Conceptual thinking and empathy

In effect, clients are now after ‘business people’ who can sell that think about possibility and take information to the imagination phase.  Clients tend to value subject matter and solution expertise which is not the same as product knowledge.  They are looking for partners to help them map a pathway forward into the future and integrate a myriad of components, one of which is product.

Skillful thought and action are among some of the most critical skills in selling; diagnosing and solving problems, opportunity questioning, active listening, paraphrasing and verifying; advising clients on the best use of a product or a solution in relation to their priorities; linking the ‘big picture’ to details and strategy; thinking about possibilities; effective alignment of client and company objectives; listening closely to the needs of clients and being able to feed them back to marketing and technical people for product improvement and market relevance; and understanding the financial importance of client retention.

Effective sales professionals truly add value to client relationships well beyond the product.  The product is now only part of the sale, not the sale itself.

This approach to selling is seen as a distinct competitive advantage to businesses and any sales person or sales team not putting these skills into practice is at risk of losing sales and clients.   Training sales people in these skills has a significant effect on the profitability of a business.

The stereotype of the ‘smooth talking’ sales person whose job is to convince and persuade people to buy a product is outdated and, most of all, ineffective.

The skills we highlighted above are often described by those less enlightened sales individuals as ‘fluffy’ or ‘niceties’ and seen as irrelevant.  These people were either unable to extract themselves from the product  or at worst only saw their clients as a means to an end, i.e. it was only about extracting as much commission out of the client to serve their own needs – not a real partnership for a mutually beneficial relationship.

It may be worth noting that, both locally and overseas, there is an emergence of a critical skill which is ethical decision making in sales.  While not included in most selling skills programs, we are seeing a growing interest in this aspect of selling being included in training.  You have probably gathered that this always been a common thread through my writing and our work at Barrett – now it seems for obvious reasons.

Ethical training for all employees is coming through loud and clear.  This is also closely linked to ethical corporate culture, code of conduct, brand, reputation, and customer loyalty. As sales people have direct contact with prospects and customers, it would be advisable to have ethical decision making on the selling skills agenda as well.  I will discuss this specific topic in more depth in the coming weeks.

It is worth making sure your sales people conduct themselves with skillful thought and action as it may well deliver handsome payoffs.

Author: Sue Barrett is Founder and Managing Director of BARRETT.

Testing times when recruiting ‘good’ salespeople

Thursday, August 6th, 2009

When I consider how I spend my time professionally, I find it is often devoted to demystifying two things:

1. What is ‘good’ selling?
2. The proper use of psychometric assessments, especially in sales recruitment

Having written on the former on many occasions, I would like to dedicate this space to the latter – the proper use of psychometric assessments in sales recruitment.

To put this into perspective, my business has psychometrically assessed 40,000+ people in sales, business development and leadership roles using a variety of purpose built assessments.  This has provided us with valuable insight into what assessments work best in sales recruitment.  Over the years we have been exposed to many test publishers promoting their various assessments, claiming this and claiming that. We are constantly scanning for new tools.

We have discovered that there is no one single assessment that can measure everything you want to know about a sales person. Some test publishers have made this claim, however upon investigation we have found that they have often compiled several different assessments (measuring different things) into one offering. In doing so, they reduce the number of items measuring each area; therefore limiting the laser effect you need in sales recruitment.

This brings me to the major issue at hand: sales recruitment is one of the most challenging jobs around.  It is fraught with ambiguities because of the very nature of trying to assess ‘soft skills’ such as attitudes and actual versus perceived capability. Given this complexity, as a sales recruiter it may be beneficial to partner with a qualified and experienced organisation to support you when using assessments.

There is not one-quick-fix to getting this right. To assist you in your sales recruitment, let’s look at three important questions when it comes to using psychometric assessments:

1. Why use assessments?
2. What assessments should you use?
3. When should you use assessments?

Why use assessments?

While you don’t have to use assessments when recruiting, when used in conjunction with a robust sales recruitment process they can add real value to your decision making. The problem arises when assessments are used in place of a multi-pronged recruitment approach.

Recruitment, especially sales recruitment, can be very time consuming, therefore there is a tendency for people to take short cuts and replace the other steps in the recruitment process with a ‘quick’ psychometric assessment to base their hiring decision on.

This ‘assessment only’ approach is not how psychometric assessments are designed to be applied (reputable test publishers will always tell you this). This approach is not best practice; it does not give you all the answers and could get you into trouble with recruitment and anti- discriminatory laws. In fact, best practice states that assessments should account for no more than 20% of your decision making process in recruitment, especially sales.

The other main issue that arises out of this ‘assessment only’ approach is that the ‘assessment’ can get blamed if the sales person doesn’t work out.  Assessing in isolation is the issue here, not the assessment itself.

Psychometric assessments are best used to back up and cross reference the current data you have gathered via other means.   Depending upon which assessments you use, they can corroborate what you have already gathered and give you additional information to further investigate areas of concerns.

Tip: Psychometric assessments should compliment a multi-pronged sales recruitment process rather than be the recruitment process in entirety.

What assessments should you use?

I have seen anything from the CLEO quiz, numerology, star signs, and simplistic 4 quadrant models through to purpose built psychometric assessments used in sales recruitment.

Essentially there are thousands of so called ‘psychometric assessments’ out there, many claiming to test for sales effectiveness and predict sales performance.

So what to use?

First of all, it depends on what you want to measure.  There are a variety of purpose built assessments which are designed to address the following important questions about a candidate:

•  Will they sell?
•  Why will they sell?
•  How do they sell?
•  How well can they sell?

In our work we use a range assessments which have been purpose built to measure different areas including:

•  Personality
•  Motives and Values
•  Prospecting fitness- sales hesitation and call reluctance
•  Leadership potential
•  Cognitive Abilities – i.e. abstract, numeracy, and verbal reasoning, etc.
•  Coping strategies under pressure
•  Emotional Resilience and Emotional Intelligence (EI)

Tip: Depending on the level and complexity of the sales roles you should match the psychometric assessments to the required competencies and areas of capability.

When should you use assessments?

As assessments should not be used as the sole determinant, it is often advised to use them after the first interview but prior to the second interview and reference checking. This is recommended so that the assessment results can be used to verify and check gathered candidate information and then incorporating the results into interview questions and reference checks.

While there are some assessments you can use prior to the first interview or even at the resume submission point, the decision to assess earlier is often based on costs to the business. Obviously, it would be great to test everyone who applies, however this would not be economically viable or recommended in most recruitment situations.

Tip: Use the insight gained through assessments for the second interview questions and reference checks.

Conclusion

Whether you currently use assessments or are considering (recommended) incorporating them, the important point is:

Providing structure and using a multi- pronged approach are the two techniques most likely to help improve the reliability of your sales recruitment process and placements.

Remembering that sales recruitment is one of the most challenging jobs around; the average increase in output resulting from improved selection is approximately 2.5 times greater in sales jobs than in low-complexity, non-sales jobs. This is why is can also be important to partner with an organisation who has a sound understanding and working knowledge of recruitment and assessments.

I wish you happy and successful selling and sales recruitment.

Sue Barrett is Managing Director of BARRETT Pty Ltd. For more information please go to www.barrett.com.au.

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