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Are your sales people at risk of leaving?

January 5, 2011 in Recruitment, Sales Planning, Strategy

How many of your sales people are thinking about a career move right now?

How many of them have come back from their holiday break wondering if they are in the right role or company?

Sales people are one of the highest “at risk” groups in terms of turnover (average of 26% compared to the national average of 14%).  Some industries have sales staff turnover up into the 70-80% range i.e. high churn call centres.

Some of the reasons sales people give in their notice is because:

  • they have not had the success they had hoped to achieve and have not attained their financial goals,
  • their capabilities did not match the job,
  • they are not getting adequate support by way of clear goals and direction, adequate product training and/or sales management support,
  • they feel discontented, and what was promised by the company was not the reality they came to know,
  • they are burnout through not having enough holidays (especially true for high performers),
  • poor leadership and poorly executed strategy have left them feeling disengaged and frustrated, or
  • they do not feel suited to a sales career.

High sales staff turnover is a costly problem.  Having sales staff on a company conveyor belt can lead to poor customer perceptions, poor service and the erosion of your brand.  This can further impair your recruitment of good staff and make it even more difficult to find good sales people.  Therefore, it makes good sense to manage this risk, maximise alignment and legitimise and protect an investment in sales performance improvement.

So how do we reduce high sales staff turnover?

One significant way is to improve Job Match.  Job Match is about clearly understanding what the job requires and what type of person best matches that job, then matching the job and the person as accurately and closely as possible.  This means not putting ‘just anyone’ into the job.  However, many people do so out of desperation but that desperation has costly consequences as you will see.

A significant study reported by Harvard Business Review showed how Job Match significantly affects staff turnover in sales teams.  The study looked at traditional ‘high turnover’ industries as well as traditional ‘low turnover’ industries. They compared sales staff turnover when Job Match was used and when it was not used.

Here are the findings:

HIGH Turnover Industry – Sample Size: 13,102

People with Job Match:
- % who quit or were fired after 6 months = 24%
- % who quit or were fired after 14 months = 28%

People without Job Match:
- % who quit or were fired after 6 months = 46%
- % who quit or were fired after 14 months = 57%

LOW Turnover Industry – Sample Size: 5,941

People with Job Match:
- % who quit or were fired after 6 months = 5%
- % who quit or were fired after 14 months = 8%

People without Job Match:
- % who quit or were fired after 6 months = 25%
- % who quit or were fired after 14 months = 34%

You can see quite clearly that using Job Match has a significant impact on sales staff turnover.  Job Match also affects job satisfaction and engagement.  For instance, job satisfaction and engagement (i.e. workforce alignment) can account for up to 23% difference in productivity.

Besides Job Match, what else can you do to ensure healthy sales staff retention?

Sales is a particularly challenging career.  In practically, in no other profession are mistakes or a lack of aptitude punished so mercilessly as in sales.  A deal is either concluded or not – there is no such thing as partial success.

In short, select wisely and help your people lead healthy sales careers.  This way you may reduce unnecessary sales staff turnover, have a healthier sales business and much happier sales people.

Remember everybody lives by selling something.

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

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Are you ready for Sustainable Selling?

October 21, 2010 in Ethics & Values, Procurement, Sales Relationships, Strategy, Value Creation

Sustainable Selling was voted by you as the number 10 Sales Trend for 2010.  With the green agenda comes Sustainable Selling.  More and more questions are being asked by many about how we can best manage this relationship now and for future generations?

I recently attended and spoke at the 6th CIPS Australasia Annual Conference (peak industry body for the Procurement Profession) where Sustainability was well and truly on the agenda.  The conference theme, ‘Managing Volatility’, had a range of national and international speakers presenting on how we manage and guarantee supply in an ever changing, often unpredictable world.  The key topic, which everything seemed to revolve around, was about managing value rather than only managing cost.  The messages I received was that the Procurement Profession wants to encourage real, measurable value, trust, transparency, substance, and ethical selling and procurement practices which discourages excessive consumption and greed.  The focus was on forging legitimate business relationships which serve the environment, people, businesses and communities.  ‘We are all in this together’ was the point that I resonated with.

Taking the lead from the CIPSA conference, other forward thinking professional bodies and emerging business practices such as Fair Trade, if we are to meet the needs of the present (economic, environmental and social) without compromising the ability of future generations to meet their own needs, we need to engage in Sustainable Selling practices which support the concept of Sustainable Development as part of our strategy moving forward.

The Brundtland Report that formalised ideas around Sustainable Development provides the basis for practical application of the principles of sustainability in the real world.  Sustainable Development is not a fixed state of harmony, but rather a process of change in which the exploitation of resources, the direction of investments, the orientation of technological development and institutional change are made consistent with future as well as present needs.

Cradle to Cradle Design is one example of some clever thinking and action around sustainable development.  Cradle to Cradle Design is a biomimetic approach to the design of systems.  It models human industry on nature’s processes in which materials are viewed as nutrients circulating in healthy, safe metabolisms.  It suggests that industry must protect and enrich ecosystems and nature’s biological metabolism while also maintaining safe, productive technical metabolism for the high-quality use and circulation of organic and synthetic materials.   Put simply, it is a holistic economic, industrial and social framework that seeks to create systems that are not just efficient but essentially waste free.  The model in its broadest sense is not limited to industrial design and manufacturing; it can be applied to many different aspects of human civilisation such as urban environments, buildings, economics and social systems.

Sustainable Selling, I propose therefore, is made up of ethical selling principles, ideas, values and practices which values trust, transparency, substance, community, the environment and healthy profits while discouraging the exploitation of people and resources, excessive consumption and greed.  Sustainable Selling recognises that everybody lives by selling something and that selling is about the principle of exchange – the sustainable exchange of ideas, innovations, products, tools, concepts, feelings, money and value.

The focus is on creating Sustainable Selling business cultures by encouraging and training all people in sustainable selling and business principles and skills so they can forge legitimate business relationships which serve the environment, people, business and communities.

Take the Victorian Government and VECCI initiative Carbon Compass which was launched in April 2010.  Carbon Compass is a place where small and medium businesses can find knowledge, share information and get practical advice on how to reduce their carbon footprint.  The website has been developed to help us understand what carbon is and where it exists in our businesses.  It is designed to help us make our businesses more sustainable.  The carbon, climate change and sustainability solutions they host have been recommended by businesses for businesses.

At Barrett, we recognise the importance of minimising the impact of the way we do business.  We have a continuous improvement approach and have developed a purchasing and recycling strategy and sustainability checklist amongst other things – our goal is to live and work with a cradle to cradle mindset.  As one of our initial steps, we have signed up to Carbon Compass as well and find it a great resource.

However, our vision for Sustainable Selling extends beyond the day to day operations of our business.  On a broader business perspective, at Barrett we are in the process of developing the Sustainable Selling Manifesto & Charter where we are inviting individuals and companies to contribute to its formation.

Following on from our vision extends to the creation of a tribe or community of businesses and business people who subscribe to the Sustainable Selling Charter which would lead to the subsequent opportunity for businesses to do business with other Sustainable Selling Partners.

The Sustainable Selling Charter & Practices would support the concept of Sustainable Development and Cradle to Cradle initiatives which provides practical applications of the principles of sustainability in the real world.

Sustainable Selling is not a fixed state of harmony but rather an evolving process in which the application of resources, the direction of investments, the orientation of technological development and institutional change are balanced with future as well as present needs.  2010 and beyond will be about putting eco into sales.

Remember everybody lives by selling something.

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

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When should we appoint a Sales Manager?

October 7, 2010 in Recruitment, Sales Leadership, Sales Management, Strategy

For many start ups and small businesses having a full time sales manager in place is not a viable option.  Firstly, there is usually no one to lead and manage in the sales function however, the function of sales management should be on your ‘To Do List’ as a business owner/manager even if you are sales managing yourself.  Paying attention to your sales activities and results, developing your sales strategy and plan, knowing who to target and how to target viable prospects, mapping your metrics (lead/prospect/sales conversion ratios, etc.), success rate, development of product knowledge, reporting, proactive review, and keeping yourself motivated and committed all form part of a sales manager’s role.

Making sure these activities feature as part of your regular business practices, your way of doing business, from ‘Day One’ means that when it comes time to appoint a sales manager you have the basis of a sales management function in place.

So when is the right time to appoint a sales manager?  How many sales people do you need to get to before you can afford a sales manager?  Do you need your sales manager to sell as well?

These are some of the critical questions facing many SME’s.  In reality the sales management function should be the second most powerful role in a business behind the CEO.  The role has considerable power to make or break a business.  Effective sales managers lead the charge for sales growth directly and via a sales team.  They make important decisions about customer acquisition, growth and retention, entry into new markets and viability of a sales force.

The appointment of a sales manager into your business is one of the most important decisions you will make.  Getting it wrong can be catastrophic.  So here are some guidelines to help you with your sales management employment plan:

Step 1:  Begin with the end in mind

What do you want to see happen to your business in the next 5+ years?  How do you visualise it happening?  By beginning with the end in mind you can then work backwards and plan your business progression by mapping it out over the next 3-5 years, taking into account your revenue and profit projections, then plan your sales force around these guidelines/goals including the appointment of a sales manager.  For instance, I have clearly articulated my business vision over the next 10 years including the next several steps in my business growth plan which includes mapping the size and type of sales team and the type of sales manager I need.  With a clear plan in place, I have now gone to market and appointed the first role, a Director of Sales, whose job it is to grow my business and build a sales team around him to achieve our revenue and profit projections via a well established and clearly articulated sales strategy.  In the early stages, the Director of Sales needs to be able to sell as well to get the sales momentum going.  This way they learn my business, how it works and how to make it better.  They know what needs to be in place for an emerging sales team and how to promote and position my business favourably in the market.

Step 2: Create a transition plan

As your business grows you need to plan for growth in your sales team.  You can start with a Director of Sales to lead the charge like I have or you can appoint sales people.  However, sooner or later you will need someone performing the role of sales manager in a formal manner.  You can use the following points as a guide:

  • If you have 2 or more sales people you will need someone taking the lead on the sales management function on a part time basis.
  • If you have 4 of more sales people you are likely to need a full time sales manager who can also sell into and manage key accounts.
  • If you have 8 or more sales people you will need a full time sales manager whose sole function is to be a sales manager.
  • If you have more than 10 sales people you need more than one sales manager.

A word of advice: don’t leave it too late.  Usually people appoint a sales manager out of desperation after they are exhausted trying to do everything themselves.  Don’t let that be you.

Remember everybody lives by selling something.

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

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Through the looking glass

August 26, 2010 in Attitudes & Behaviours, Emotional Intelligence, Performance Management, Sales Management, Sales Training, Strategy

Through the looking glass was voted by you as the number 8  Sales Trend for 2010.

Many sales people are tired of being told that they need to sell like someone else to be successful.  Many are unsure of what they should be modelling.  Too often they are told to ‘just be like’ someone else but with no reference to what that actually looks like they are left poking around in the dark mimicking the ‘star’ performer and left feeling unauthentic.   And ‘big sticks’, bribes or fear don’t help either.

Most people, and especially sales people, want to be the best they can be but without having to be someone else.   Clearly defining what good performance looks like is key.  Here is a model we use at Barrett where we focus on three key areas:

The Three Dimensions of Optimal Performance

  1. KNOWLEDGE: General awareness or possession of information, facts, ideas, truths or principles.
  2. SKILLS & PROCESSES: A series of actions directed towards a specific aim.  The ability to do something well, usually gained through training or experience.
  3. INSIGHT: The ability to see clearly and intuitively into the nature of a complex person, situation or subject; a set of beliefs or a way of thinking that determines somebody’s behaviour and outlook.

Putting practical tools and processes into the hands of sales people and sales managers are an important step however, the first step is giving people insight into their own strengths and capabilities and allowing them to change from the inside out.   Seeing what is possible and being able to model their capabilities and attributes on top performers whilst retaining their own identity as a person is crucial.  Articulating exactly what that is by using the model above puts real content on the table.

With the product edge gone, the key differentiator will be your people.  In 2010 and beyond, enlightened leaders are focusing on understanding their people and helping their people understand themselves and what motivates and drives them.  They are taking note of how people think and make decisions.  Creating the best team for your business will be about how you play to your people’s strengths to achieve goals and fulfill ambitions.  Teaching people how to transform their capabilities, communicate more effectively, and how to manage their behaviours and mindsets are critical.

Gaining deeper insight into self and others is much more than just navel-gazing.  With proper resources and support, insight can be a life changing experience for people and can greatly enhance company success.  While for a number of years we have been focusing on skills and processes, we are now realising the importance of people and their role in business.  Enlightened leaders will be supporting their people in gaining deeper insight and more knowledge.

Insight means having Choices; working with clear Purpose; Self and Other Awareness; knowing your Capabilities; developing your Creativity; building Resilience; and Self Direction.

Knowledge means having a clear Strategy;  access to well defined Processes; good Information; Role Clarity; clearly defined Tasks; Standards of High Performance; Responsibilities; and the ability to make Decisions.

In addition to skills and processes, giving sales people access to insight and knowledge allows for the cultivation of sales wisdom because achieving sales mastery is about working from the inside out.

Remember everybody lives by selling something.

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

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What’s the difference between a member, a client and a customer?

July 22, 2010 in Attitudes & Behaviours, Communication, Culture, Customer Service, Ethics & Values, Sales Relationships, Sales Skills, Strategy

What’s in a name?  Well, there seems to be some confusion in the market place around the terminology used to describe those people who pay us money for goods, services, experiences, donations, etc.

Different industries can have different terms for the consumers of their products and/or services.  We see terms such as customer, client, patient, guest, patron, member, subscriber, donor, etc. used to describe a person who buys our products or services and intends to use them directly.  In short, these terms are referring to the same person – the ‘end user’.  However, not everyone ‘consumes’ our products or services or is the intended ‘end user’.  Some people or businesses buy our products or services to ‘on sell’ them to another party, often the final end user, but not always.

Many industries might a have a chain of buyers and only one will be the end user.  For instance, if we follow the chain from the manufacturer who sells via a wholesaler (partner or client) who then sells to a retailer (client or customer) who then sells to the end user (customer or consumer), we can have several terms to distinguish who’s who.

If this is your situation, it does help to define who is who by having specific terms such as ‘client’, ‘member’, ‘customer’ or ‘consumer’ so we can keep track of our actions and key messages as each of them may want something different from you, and as sales people we need to know who we are working with.  For instance, you may use ‘client’ for the retailer and ‘consumer’ for the end user to keep roles and communication clear.  Marketing and advertising agencies use the term  ’client’ for their direct customers since marketers also have to refer to the consumers of the client’s products.

So where does ‘member’ feature?

Some businesses, often retailers, use ‘member’ to distinguish between those who buy regularly from them compared to those who do not.  They want to set up memberships so as to attract and retain regular users of their products/services and reward them with greater benefits or discounts so they keep coming back.  It’s a way of building up your database to build a tribe of followers or a community of users or supporters which, if done correctly, can make future sales that much easier to attain.  Retailers often have membership cards and reward programs for regular purchasers of their products or services.  There are usually benefits and special privileges to being a ‘member’ but essentially a member is a ‘customer’, ‘end user’ or ‘consumer’ of your business.  This means you can have customers and members in the same business.

When having ‘members’ can be a problem for sales growth

To avoid any challenges, you need to make sure that before you embark on a ‘membership’ program there are very clear definitions and actions in place that distinguish membership from customers.  However, do not make the mistake of thinking once a person is a ‘member’ that you do not have to sell.

We are seeing a trend in some businesses who claim to be there for their ‘members’ or ‘member associations’ dissociating themselves from the function of ‘selling’ when their members are customers.

Because these people choose to be ‘members’ of these businesses there is an expectation of being kept informed of the latest trends, best buys or ‘right’ options for them, or why would you bother being a member.  You expect the membership team to keep in touch with you and to help you make good ‘buying’ choices and decisions.  You trust them to offer products and services that meet your needs.  After all, they should know your current preferences and buying patterns.  Members expect to deal with people who are skilful in client centric consultative sales practices even if they do not know to call it that.

However, when speaking to some of these membership businesses we find a deep reluctance to acknowledge and admit that the skills they want their membership teams to be competent in, such as prospecting and client centric consultative sales communication practices, are indeed selling skills.

By denying this practical reality, member organisations can end up developing teams who are reactive, passive and reluctant to engage in proactive, problem solving, solution based interactions with members.  The number of membership based businesses that swear that being a member and a customer are mutually exclusive, are fooling themselves and are doing a disservice to themselves and their members.  By telling their people “we are not sales people, we do not use the word selling, we have members” creates cultural and competency issues.

I am happy for people to call their ‘end users’ members, patients, guests, donors, patrons, subscribers, customers or clients as long as they recognise that serving the end user of buyers of your products and services properly means employing ethical, consultative selling skills and processes if you mean to exchange something of value i.e. money for your products or services.

Remember everybody lives by selling something.

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

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