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Sales Training is not a luxury – it’s essential

February 9, 2008 in Education in Sales, Performance Management, Sales Coaching, Sales Culture, Sales Excellence Acadamy, Sales Research, Sales Skills, Sales Training

Keeping you and your sales team ‘match fit’ and actively engaged in the market place selling effectively is paramount to your survival and success in today’s market. Yet too many businesses, large and small, do not train their sales teams in the vital skills needed in the much more consultative, value add, less product focused market of today.

I was reminded of this again when I was speaking with a 35+ year veteran in sales and sales management who works in the office equipment and facilities management industry. We were discussing the sales team he has inherited recently and how they cannot seem to get their head around talking about facilities management and business processes. They have their heads well and truly stuck in the box (i.e. their products). In order for them to survive they (and others like them) need to transition from selling products to selling in systems and solutions, but as it happens they have had no training in how to make that transition. Whilst they have received some training in the past, it was only product training.

Why do we keep doing this to our sales teams? Why don’t we invest more in their ongoing development and help them adapt to the changing business world? Why do we invest in Occupational Health and Safety Training, for instance, and not in Sales Training? Most likely because we will get fined if we don’t have our OH&S in place or our Workcover insurance premiums will rise. In the OH&S scenario sense we are forced to. (PS I am all for OH&S).

Yet without a good sales team we cannot survive. Sadly, I cannot legislate for good sales training, however, if you are smart you would realise the continuous development (formal and informal) of your sales people it is a type of insurance as well as an investment for your business. Here is a one of our client case studies which illustrates the point:

Banking Products: Case Study: Bank Personal Banking Investment Products
Call Centre – Business to Consumer Telephone Sales

Project Purpose & Pre Intervention Issues
Head of Distribution for Banking Products wanted to create seamless “One Bank” approach to meet customer needs and enhance the customer experience in Banking Products Direct (BP). BP embarked on an attitudinal / behavioural change and skill enhancement program.

Issues needing attention:
No formal sales process or set structure to guide sales calls effectively
Sales people lacking confidence in their own abilities to sell effectively
Too much focus on building rapport instead of building real business opportunities
Sales people not controlling the sales call and lacking a proactive assertive approach
Sales people not cross selling or up-selling instead sticking to “one product” missing growing the “Prime Accounts”

Within 6 months of implementing Sales Skills, Behaviour & Process training (2 days class room training plus 6 fortnightly 1 hour follow up sessions run by the manager supplemented with some training for the sales manager in how to run the follow up sessions and coach their staff on the phones) the following results were achieved:

  • Accounts Opened: 58% uplift
  • Accounts Activated, 43% uplift
  • Sales per FTE: 39% uplift
  • Conversion Rate, 33% uplift
  • New TD FUM ($m): 39% uplift
  • % of Total BP accounts opened via BP Direct: 106 % uplift

Business Climate: Post Intervention Results
Apart from the noted uplift in sales, the manager noted a change in behaviour for many sales consultants. Several consultants commented on the program being a ‘light bulb’ moment for them, as that they were suddenly made aware of behaviours and felt empowered to take charge of the situation.

The ROI was definitely worth it. Yet this is the exception in the business world. One of my other clients (another senior sales manager of 20+years experience) alerted his young sales team at the end of their sales training program recently to the fact they were indeed very lucky to receive sales training as most people do not get this kind of support or indepth approach to their develop their careers. He wanted them to really value what they were receiving as it was not the norm.

I am deeply concerned at the lack of adequate support many sales people get. Instead of giving them the vital skills and training/ coaching support they need to flourish and succeed, we (often with the best intentions) mistakenly, think our sales woes will be solved by implementing a CRM system, doing more advertising and marketing, or giving them a motivational RAH RAH session, etc.

Yet if our sales people cannot adequately:

  1. Define who they should be targetting or
  2. Define what a viable prospect looks like, or
  3. Pick up a phone and prospect for new business, or
  4. Investigate and understand a client/prospect’s needs, or
  5. Use effective problem solving and identification skills, or
  6. Present a range of viable solutions, or
  7. Make effective customer centred recommendations or,
  8. Know their competitive advantage and that of their competitors, or
  9. Advance a viable sale towards a close, or
  10. Pitch for the business and close a sale, or
  11. Up sell and cross sell, or
  12. Follow up and deliver, or
  13. Manage themselves and their portfolio

What hope do they have in making effective sales? How is a CRM, new brochure or RAH RAH session going to fix their lack of skills and process? If their skills, behaviours and attitudes are not addressed they and you are in trouble.

Yet so many businesses (small through to large) are happy to let luck take its chance when it comes to have a fit viable sales force. You cannot replicate something that does not exist in the first place. So why risk your business and future sales to luck, chance and the intuitive (non replicable) approach taken by many sales people. Do you know why most sales people take this intuitive approach? Because they are given nothing else to put in its place. Instead they get a motivation session here and there and, at best, some product training. And the thing they usually need the least of all is product training. Especially if we are trying to get them to be more investigative and client needs focused.

As you have seen from previous articles I have written, many seasoned sales people are struggling in this market to shift from a ‘product focused’ sales approach to a more ‘complex solution sales’ approach – at least in B2B sales. The skills, knowledge and behaviours now required are more complex. As their market changes many are are still left to their own devices to make it up as they go. They need training just like the rest of us to move with the times and remain relevant.

Most people do not engage in self evaluation and continuous learning so they need prompting and our help to sources the right training and support for them. At the very least having a regular series of mini (in-house) sessions where they can review and reflect on their actions, the causes and effects of what they do and link it something tangible will help them in their endevours. Sales training does not have to be formal class room sessions – 70%+ of sales training should occur in the field using the right type of coaching approach linked to real tangible skills and behaviours.

We have come such a long way in technical advances in science and technology and now it is time we put good sales training and development on the map and under the microscope. Here is a list of competencies or capabilities that, at the very least, most field sales people and outbound telesales people need to know how to apply to survive and thrive in sales: (taken from the BARRETT Sales Competency Dictionary) :

Excerpt from: BARRETT Sales Competency Dictionary

Prospecting

Identifies and chases new business opportunities in new and/or existing accounts.

Customer orientation

Understands the customer’s needs and expectations, ensures that all activities are focused on fulfilling the customer’s requirements, and provides exceptional service and product quality.

Building relationships and networks

Proactively identifies, develops and maintains effective internal and external relationships that are useful in achieving business objectives.

Understanding the customer’s landscape

Understands the existing customer or prospect, their business and their needs; uses their knowledge of the industry, products and competitors and utilises this knowledge to engage all stakeholders, influencers and users of the products and services in order to maximise the opportunity for sales.

Results focus

Sets challenging targets and proactively and persistently strives towards the achievement of goals, whilst maintaining accountability.

Planning and organising

The ability to plan, organise and prioritise work activities, time and resources to efficiently achieve business objectives.

Understanding customer needs

Determines the customer’s needs and gathers additional information to identify the business issues and personal motivators underlying the customer’s requirements.

Self reflection and development

Recognises the need to continuously improve one’s capability and identify new areas for learning by proactively appraising one’s performance and competencies in order to initiate development activities.

Copyright Barrett Pty Ltd 2000-2008

I recommend we give our sales people a fighting chance by investing in relevant, purpose built, evidenced based (competency) sales training programs which are ideally supported by coaching in the field. At least given them training in the three most fundamental / essential areas:

  • Sales and Account Planning
  • Sales Prospecting Strategies & Skills
  • Consultative / Solution / Diagnostic Sales Communication Process

(Assuming you have a product/ service and business structure that is viable) If your sales people understood WHO they need to prospect to, HOW they need make contact with prospects and clients, HOW OFTEN they need to do the activities in order to be viable, WHAT their competitive edge is, HOW they help people solve problems and succeed with your range of products and services, WHY they should continue to work for you and your company and WHAT the benefits are for them, the clients and you by being part of your business, then we are on the right track to get more and better quality sales with fitter sales people.

And if you cannot invest in a more formal training or coaching programs, then at the very least talk about the skills, knowledge, attitudes and behaviours they need to work on to make their sales career a success. If it helps use the competency table above to initiate discussions and see what it brings forth. Most of your sales people will be grateful you took the time to speak to them about this.

NB: BARRETT offer a full range of assessment processes and competency based programs including Sales Simulation exercises to test your team’s current and ongoing sales fitness.

Same, Same but Different

November 1, 2007 in Sales Research, Sales Talent, Sales Training

I came across some research on sales motivation which seems to shed some further light on why it is important to use programs which are culturally specific to your sales peoples motivations and values.

A major study of sales motivation presented at the annual convention of the Society for Marketing Advances has revealed significant cultural differences driving sales success. It has helped explain why some of the better made-in-the-USA sales management practices aren’t more effective in other nations. The answers may lie in what really provides motivation for salespeople.

The study (coauthored by Dr. John F. Tanner, III, associate professor of Marketing at Baylor University’s Hankamer School of Business & George Dudley, Behavioral Sciences Research Press) asked almost 41,000 people across nine nations what they hope to obtain from their sales careers. Motivations assessed included:

  • opportunities to use talents
  • make money, work creatively
  • obtain status
  • interact with people
  • be self-managed
  • progress into management
  • freedom from routine
  • opportunities to be of service to others.

The nations studied include Australia, Canada, New Zealand, Norway, Singapore, Sweden, U.K. and USA. The study used the Sales Preference Questionnaire (SPQ®), to obtain data. The SPQ® assessed sales prospecting call reluctance. The study revealed the following:

 

“Sales motivation in the US is more money-motivated than in other nations, but there are other more complex motivations at work. 33% of US salespeople and 36% of the salespeople in the U.K. say they work primarily to earn substantial incomes. This compares to only 9% in Norway and 11% in New Zealand, where “lifestyle” considerations such as opportunities to use their abilities and freedom from routine are considered more important.

 

In fact, successful US salespeople often shun advancement into management, because they can usually make much more money in sales. That further distinguishes US salespeople from those of other nations, where sales is frequently viewed as a temporary step on the way to management.

 

Over 12% of Australian salespeople actually seek a career in management. For the majority of Australian salespeople, opportunities to use their abilities and freedom from routine are more important motivators than making money, a preference shared by salespeople in New Zealand. However, only 17% of the salespeople in Singapore are similarly motivated. Like their US counterparts, Singaporean salespeople sell primarily to make money.

US salespeople are more money-motivated than salespeople in other countries. But, they are also more service oriented. 14% of American salespeople say being of service to others is their primary motivation. Among the countries studied salespeople in only one other country, New Zealand (11.5%), even approach that level.”

 

What do these differences portend?

  • Knowing what makes salespeople tick is critical for finding and keeping top producers.
  • The implications are serious and far-reaching, especially when it comes to multinational sales management practices.
  • American sales management and training and procedures adhere to US presupposed values and perceptions, and may not be optimal, or even suitable, for other countries.
  • It is often better to access country and culturally specific training for your sales people.

What’s your competitive edge?

October 1, 2007 in Sales Management, Sales Planning, Sales Research

How many of us have been in business for a while and things have been going along smoothly, sales coming in, customers are happy. Then you notice that you are not winning the business you used to win.

In fact, you notice some of your customers are using new players in the market place when they once used you, or they are not doing anything at all. You follow up and find out that your clients are keen to work with the new players because they bring something different, new or unusual. Or they are distracted by other things.

Initially, you may take it as a personal rejection – “they don’t like me”. Then you stop the self-wallowing and realise that:

  • a. You missed out on a new trend or a new idea that was gaining momentum in your market, so your approach is not up-to-date or relevant any more.
  • b. You have not kept pace with changes in your market. Your business is at risk of becoming obsolete. You are losing your competitive edge.

With the commoditisation of many products and processes, the business landscape can change over night and you can lose your edge. What was once a high value, premium or customised product or service can be reduce to a “me2” very quickly, or become obsolete.

I have been reading a great book called A Whole New Mind by Daniel Pink, which talks about what can and can’t be replicated easily. He focuses on, among other things:

Abundance, Asia & Automation

He talks about how we now live in a world turned upside down by rising affluence, the outsourcing of “good jobs” overseas and the computerisation of our lives. He focuses on a world fast shifting from the information age to the conceptual age.

This got me thinking about how we now need to regularly look at our markets and especially our competition and what they are up to. Often the old SWOT is done (strengths, weaknesses, opportunities, and threats) where the original business plan is put together and then repeated once a year if you’re lucky.

Given the rate of change, new innovations and ideas in the market, how often do we need to assess our competitors and our competitive edge? I am not sure, but all I know is that once a year is not enough these days. There is so much competition out there competing for people’s time, attention and money, it’s hard to keep up. As a sales person we need to know our competitive edge – why we are better than the competition.

And if we have been around long enough we know that competition isn’t just our direct competitors either; it can be anyone. Your competitors can include:

  • Current competition.
  • Peripheral competition.
  • Emerging competition.

In the type of business I am in (consulting, assessment and training) my competition can vary and can also include internal company HR or Learning & Development departments.

However, it can also be the economy, an election, wars, droughts, etc. While I would love to be, and perhaps should be, an essential service provider for any business (we all need to be effective at sales and service), in reality my business is not perceived that way by companies. If things get tough or people get distracted, customers can lose sight of what may be important to them and not invest their money and time in your offering, even though they should.

Being market aware, community aware and world aware is part of our competitor analysis these days. Rather than sit back and think it is all too hard, I have found that regularly reviewing where you are at in relation to everyone else in your space and checking the broader market is a good idea.

This doesn’t mean you have to resort to investing in major market research campaigns. In reality, if you are mindful, you are really researching every day – the information is often right in front of you.

Internet: The internet is a powerful tool for finding information on a variety of topics.

Personal visits:If possible, visit your competitors’ locations. Observe how employees interact with customers. What do their premises look like? How are their products displayed and priced?

Talk to customers:Take careful note of what your customers and prospects are saying about your competitors.

Competitors’ ads / websites/ etc.:Analyse competitors’ ads, websites, marketing material, etc. to learn about their target audience, market position, product features, benefits, prices, etc.

Speeches/ presentations:Attend speeches or presentations made by representatives of your competitors.

Trade show displays: View your competitor’s display from a potential customer’s point of view. What does their display say about the company? Observing which specific trade shows or industry events competitors attend provides information on their marketing strategy and target market.

Written sources:

  • General business publications
  • Marketing and advertising publications
  • Local newspapers and business journals
  • Industry and trade association publications
  • Industry research and surveys

Understanding your competitors is an integral part of your sales planning process. By investing the time in researching your competitors you will be able to:

  1. Understand your competitor’s advantages and disadvantages relative to your own position.
  2. Highlight key areas of focus based on your position within the market compared to competitors.
  3. Provide an informed basis to develop strategies to achieve competitive advantage in the future.
  4. Be prepared to handle questions or challenges posed by potential customers in relation to competitors.

Ask yourself regularly:

  • Who are the key competitors in your market place?
  • What is a profile of each of your key competitors (market position, size, distribution, reputation)?
  • What are your competitors’ primary objectives (to be number one in market, rapid increase market share, to specialise in a particular segment of the market)?
  • What do they do well?
  • What don’t they do well?
  • What threats do your competitors pose?
  • What is your primary competitive advantage over them?

An important note: By reading outside your area of specialisation you can learn a lot about other markets and ways of doing business that might just translate into a competitive edge for you. Remember the old saying: “A mind is like a parachute – it only works when it is open”. So be open to new ideas and change. It’s an essential life skill.

Mother of a sales performance

July 23, 2007 in Attitudes & Behaviours, Gender & Sales, Performance Management, Sales Coaching, Sales Leadership, Sales Management, Sales Relationships, Sales Research

As the New York Stock Exchange is now looking at “employee engagement” as a significant predictor of higher share value and market return, and given we are all competing, not just for clients and market share but for good employee talent, maybe a key performance indicator for sales management could be in Organisational Citizenship Behaviour (OCB).

I came across some recent research into sales management, and it got me thinking about how team leaders were not allowed to “mother” their sales teams.

A loaded term, “mothering”, and without proper definition creates myths and innuendo where none should exist. The following research piece might surprise you - then again it may not.

The research, conducted by Piercy, Lane and Cravens, examines the gender issue across multiple companies from the perspective of sales managers.

What the research found was that, by and large, sales units led by female managers who had higher levels of behaviour control activities displayed higher effectiveness in terms of better job satisfaction and job involvement; lower role ambiguity, job anxiety, and burnout; higher organisational commitment; and with a lower propensity to leave.

Behaviour control activities include monitoring, directing, evaluating and rewarding people. The research says, in part: “Female sales managers perform significantly higher levels of behaviour-based control activities and display higher competence in this management approach, compared to male counterparts.”

Subsequent analyses of the same salesperson study (Piercy, Lane, and Cravens 2002) examined sales manager gender as a predictor of sales team Organisational Citizenship Behaviour (OCB).

The results show that sales teams led by female managers display significantly higher levels of civic virtue, sportsmanship, altruism, courtesy, cheerleading, peacemaking, and overall citizenship. This suggests the management style of female managers (perhaps most particularly, their higher levels of behaviour control activity) encourages and facilitates higher OCB among salespeople working in the sales unit.

While the research showed that both female and male sales managers were able to achieve comparable sales performance, the effect that sales management behaviour control practices (as described above) had on OCB was positively linked to critical factors such as:

  • Superior performance with customers
  • High sales unit performance
  • Helping with work-related problems
  • Effective organisational performance
  • Higher employee retention

Interestingly the research did not provide support for the “nurturing and caring” stereotype that suggests female managers will lead by supportive and facilitative behaviours, often referred in derogatory terms as “mothering”. However, female sales managers appear to “go the extra mile” in terms of conscientiousness.

It was reported that female sales managers spend more time monitoring, directing, evaluating and rewarding control activities in their sales teams than their male counterparts.

One of the benefits of a behaviour-based approach to sales management control is that sales managers work more closely with sales people and gain a greater understanding of the weaknesses of their salespeople – important areas that need to be improved – and provide strategies on how to help them improve their performance. If that’s mothering, then I’m all for it.

Motivation or manipulation?

June 25, 2007 in Ethics & Values, Sales Coaching, Sales Culture, Sales Leadership, Sales Management, Sales Research, Sales Skills, Sales Strategy

What is the line between motivating sales staff and manipulating sales staff? How do you make sure you don’t go over the line and place people under extreme pressure to achieve?

Research both here and overseas shows that high performing sales people identified how important it was to their performance that they remain motivated, which they recognised can be influenced by both internal and external factors, with a sense of self satisfaction found to be the most important contributor to their motivation.

The recent 4 Corners program on Telstra staff and a bullying culture that is supposed to be being cultivated in its call centres (transcript in full at www.abc.net.au/4corners) was very disturbing indeed.

It highlighted that once top performing sales people where now highly stressed, frightened of not meeting (changing) targets and felt unable to control their own destiny.

Research shows that the ability to control their emotions (ie self regulation) was seen as important in keeping sales people focused on key objectives, issues and working to resolve customers’ problems.

Having clear tangible goals, performance targets, customer segmentation, competitor awareness, a sound USP (unique selling proposition) and transparent pricing model segmented into individual and team sales plans as part of a sound sales and business strategy is what good sales people need and expect to be able to control their own destiny and achieve their personal and professional goals. This autonomy and control is highly motivating for good sales people.

However the 4 Corners program told a different story. It focused on call centre staff having their targets changed and increased to what some people say are unachievable levels with no reason or link to strategy.

This was compounded by a new management culture that encouraged team leaders to use phrases like dragons, savages and submarines to describe their team members if they missed performance targets and encouraging team leaders to “‘shoot ‘em’ if they don’t work out”. This left some team leaders hating and bullying their staff, with some of them hating themselves for becoming this way.

Selling is a relentless job at the best of times. It’s like being an athlete – you set clear goals and workout in rain hail or shine. You are committed to overcoming obstacles and challenges and stepping up when it counts.

Beating the competition is hard enough, but if your coach then starts adding to your load by bullying you, putting you down, changing the rules, setting unrealistic goals and training regimes and even, in some cases, completely changing the game or sport you are playing, then all hell breaks loose.

Locus of control is so important for anyone in times of stress, but especially for sales people, who want to earn bonuses or commissions, to be their best and manage themselves to succeed within the given rules. Changing the goal posts and game rules after people committed to a game plan leaves hard working, dedicated sales people feeling cheated at best. And stressed, disengaged and burnt-out at worst.

Fact or not, the 4 Corners story set back the perception of the sales profession to the draconian days of Henry Ford who said “work is for work”. He had a policy that if anyone smiled, whistled, laughed or showed any signs of enjoyment at work they should be sacked.

Having every keystroke and toilet break monitored implies that no one can be trusted. This is not an example of a healthy sustainable sales culture.

If you are a dedicated hard working person who prides themselves on being able to be trusted to do a good job and management wants to manage you this way, it is very demotivating indeed. I had hoped we had come further than that, given current thinking and research into performance and motivation, but obviously not if this story has any truth to it.

The story was discussed at great length in my circles and many people were troubled by the implication of intense sweat-shop type call centre sales environments. Sadly, it’s not new and many other stories about these draconian call centre practices are in circulation.

One of my colleagues who has worked in telco sales, in both call centre and field sales, for many years had this to say: “My experience in these environments is that the word ‘manipulation’ comes into effect when management have moving targets. In saying this I mean that half way through the game, someone changes the rules.

“The rules usually alter when companies feel that the targets are too easy and they are increased, new products appear, thus the commission plan alters, the compulsory amount of outbound calls doubles. You may achieve your results, however in the 11th hour management decide that commission will only be paid to those that completed their calls in a certain time frame etc.”

So how do we create a climate of motivation? To motivate sales staff is through honesty, loyalty and clear direction; really no different to how you would want your sales staff to treat your customers. To achieve consistent results from your sales staff and have good morale, you need to provide a very clear achievable bonus or commission structure, with no moving goal posts.

The criteria that bounds this bonus or commission (that is, amount of calls made per day/visits, markets penetrated, sales made, profits achieved etc) also needs to be achievable, structured and based on sound strategy and facts. Provide further incentives if you must, to focus on certain products throughout the year, but do not alter the bonus or commission structure.

SHL, a world-renowned psychometric test developer, has identified some key motivating factors. While these can vary from person to person, they give a good indication; money, competition, achievement, pace, social contact, recognition, growth and autonomy.

Management need to act as true mentors and motivators for their staff, especially in sales call centres as this is, or can be, a very mundane job, and staff need to feel comfortable to bounce ideas or frustrations off their manager without feeling like they are being judged or readied for execution.

So if sales targets are continually changing and sales people are finding it increasingly difficult to get bonuses or commissions, ask yourself:

  • What is motivating senior management to do this?
  • Is the sales strategy wrong? Did management make a mistake?
  • Who will benefit financially or career wise from these changing targets
  • Are management’s actions self-serving at the cost of their people?

Remember: A fish always rots from the head down.

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