SalesBlog

Archive for November, 2007

You’re on show

Friday, November 30th, 2007

Today people are looking for honesty and authenticity and do not have time to be misled. They want to work with people who are what they say they are. They are assessing your every word and action. They are looking beneath the surface and are wanting to see the real you.

Many people are now more wary about companies and sales people making big claims and promises with lots of ‘sizzle’. They are wary of the ‘charmers’ and the sales people after the ‘big kill’. What they are now looking for is the steak and all that comes with it: i.e. what kind of steak is it? How it was it grown, prepared and cooked? Where did it come from? Is it grown in an environmentally friendly, humane manner? etc. They no longer want to confuse packaging with substance. They look for evidence at every turn and how you align with the promises you make.

Sales is now getting personal. The spotlight is now squarely on the sales person and the business they represent. Their actions and words are scrutinised every day.

Going (not quite gone) are the days of the ‘charmers’ who try to seduce you into buying something – the term often used in this situation is ‘getting into bed’. In recent times I have seen some sales people, salesmen to be precise, usually with 20+ years sales careers whose whole sales strategy was to seduce people with their charm, designer suits, Tiffany cufflinks and personal flair. Their preference was always for face-to-face meetings – none of this telephone stuff (meaning it is much harder to dazzle you over the phone).

I have even seen them try their ‘charm’ offensive on colleagues and myself in training sessions. But we were having none of it. In fact it was very inappropriate and quite embarrassing, mostly for them. What we found was that they shied away from acknowledging the relevance of effective selling skills like questioning, active listening, problem solving, etc. and didn’t like being put under the spot light when it to came to participating in competency oriented role plays and validating themselves. Instead they complained and tried to distract us with their charm again. Some of these men had also found they were in and out of sales jobs more quickly in recent times, with one man having 4 sales jobs in different companies in the last four years. He was clearly frustrated and was struggling to come to terms that his ‘charm’ strategy wasn’t working anymore. He and others like him hadn’t adapted nor recognised that people want more than the packaging on show they are wanting substance.

Then there is the overly competitive, self centred, soloist sales people who want everything for themselves – everyone else, even their peers, are either there to serve them or are competition. And they want to win and win big. Being on top of everyone else is what they want – but I ask you at whose expense? They see sales as a sport, more precisely Big Game Fishing or Hunting. Customer are ‘Targets’. Getting a Sale is referred to as ‘the Kill’. Customers are regarded as objects to be possessed or trophies to be placed in their cabinet, to be shown off and admired (perversely so) like stuffed animal heads on the wall.

Quite frankly, as a customer I do not want to be possessed, or displayed like a trophy nor do I want to be seduced or charmed into ‘getting into bed’ with someone. I want to be in a productive effective relationship. Like I said before I do not have the time to be misled nor do I want to be misled, coerced, bullied or intimidated into buying.

Thank goodness these types are dying (al beit slowly) and making way for a more enlightened, consultative, big picture focused, business oriented, cooperative sales person who is well organised, disciplined, can prospect proactively, is fully aware of their product and business’ value to their customer market, their competitive edge and how to make business work for them and their customers.

They are fit, well-presented, up to date, self aware and relevant – and they are not just female. There are more men out there working this way too. I am also noticing a growing trend among younger men who recognise the need to be more integrated as sales people and people as a whole. In fact I have three men this week alone mention this without prompting. What they and others like them recognise is that if we only focus on competition for competition’s sake or try to seduce people with our charm we are apt to miss the main point; which is:

Without the cooperation and kindness of others we cannot exist.

That is why I am finding more and more people saying they want to work with others (suppliers, partners and customers) in a spirit of cooperation, consultation and respect not competition or deceit. This personal insight and awareness makes for much better sales people and much better sales results.

Broken Promises & Bagging the Competition

Friday, November 23rd, 2007

Watching the antics of all the parties in the Federal Election, especially the two major parties, and how they go about trying to convince the electorate to vote for them, has reminded me about what NOT to do in sales:

  • Make promises you cannot keep
  • Bag the competition

Nothing irks customers more than sales people overstating their capabilities and making claims and promises they cannot keep or live up to. It’s the fastest way to break trust and leave customers doubting you and your business. Making grand claims with little or no substance is foolish at best. In today’s networked world, many people have access to information and can check pretty quickly whether what you claim is true or not.

So can you do what you claim you do?

The other thing that can drive customers away from you is making derogatory comments about your competition. If your prospective customer has been using your competitor before you came along and was really happy with them and you start bagging the competition what you are essentially doing is bagging the customer’s decision to use them in the first place. Not a good strategy to set up a basis for an ongoing relationship. Find out whom they have used first before you open your mouth and watch what you say. No one likes to feel pathetic because they made a poor decision or haven’t kept up with the latest trend, or have their decision laughed at by an arrogant “I know better than you” smarty-pants sales person. Be very careful in how you position yourself and your offerings.

My advice:

  • Know your competitive advantage and how legitimately it compares to your competitors
  • Know how to present it in a manner that is respectful and non judgemental
  • Know how you can help people genuinely, with real substance and how you can demonstrate that to your customers.

That is why it is sadly amusing to watch the political parties trying to convince us of their merit and bribe us with their promises just so we will vote for them. All the while they behave like bullies beating each other up in the process. It all seems so primitive really. I had hoped we had come farther than this. I do live in hope though.

So maybe one day we will be pleasantly surprised that they will speak to us like adults, behave like adults and make decision like adults with the interest of all of us at heart. Good sales people do this everyday.

All this reminds me of a saying: A Politician thinks of only the next election. A Statesman thinks of the next generation.

Some food for thought.

Territory Management vs. Account Management

Thursday, November 15th, 2007

Terms such as Account Development, Account Management and Territory Management are often interchanged indiscriminately by many a sales people and managers thus creating confusion when it comes to sales planning, portfolio allocation and recruiting the right kind of sales person for your business.

I thought it might helpful to define these terms and give you a little more perspective.

All sales people involved in developing long term viable business relationships with the right kind of customers should be doing Account Development: Here is our definition of Account Development taken from the BARRETT Sales Competency Dictionary.

Account Development: Develops account profiles and plans for each customer with a thorough understanding of the customer’s business and their needs and works with that business to yield greater penetration rates for further viable sales.

It makes sense.  However, when it comes to field sales planning it is critical, not just to know whom you are calling on and how you are calling on them, but to know what type of portfolio allocation and management your sales portfolio requires. 

Are you and your sales team working a territory or account management strategy? 

The difference is quite important if you want to run a successful well managed sales team and business.  Let’s look at the two most common terms used when it comes to sales portfolio management:

Account Management

Relates to a Sales Representative entrusted with managing an account or series of accounts.  This, for example, would include the responsibilities for locating and negotiating to acquire clients’ accounts within a Territory, State or Nationally.  Account Management is not necessarily territory bound in practice, however, it does involve:

  • positioning yourself and your business at multiple levels with the client account,
  • handling all major decisions related to that specific client and
  • working with all key people within that account including the key decision makers, influencers, coaches, etc. 

True Account Management is usually reserved for larger, more complex accounts requiring one or more of a team of people to manage the account(s) from the supplier.

Territory Management

Relates, in the main, to a Sales Representative or Merchandiser with a Territory to manage – this is most common in businesses such as:

  • Pharmaceutical Sales: calling on GP’s, Hospitals and Pharmacies within a specific geographical area.
  • Selling into Retail: selling into and managing all the different retail stores in their territory i.e. Supermarkets, etc.
  • Some Mortgage Franchise Sales: in a number of these franchises, they have set Mortgage Brokers up with a designated geographical territory calling on consumers within that area.

Therefore how should your sales team currently be operating?

If you are unsure about what is right for you here is some information from www.sykronix.com, a marketing research portal that might help you:

REASONS FOR ESTABLISHING SALES TERRITORIES

Better coverage – salespeople cannot cherry pick; territory assignments constrain salespeople to work with less profitable customers or prospects as well as the most desirable accounts

Reduced selling costs – assigning responsibility to a single salesperson ensures that there is no overlap in coverage; customers and prospects are called upon by only one salesperson

Improved customer service – assigning responsibility to a single salesperson helps to ensure that all customers and prospects receive adequate servicing

More accurate evaluation of performance – if territories are relatively equal with regard to workload and potential, then salesperson performance can be compared on an equal basis; if territories are unequal in a known way, then adjustments can be made in evaluation of unequal performance

WHEN NOT TO ESTABLISH SALES TERRITORIES

Sales coverage is far below sales potential – e.g., a new company wants to cherry pick for the most profitable prospects first

The sales force is highly specialized – e.g., when the sales force is organized along the lines of product specialty rather than along the lines of customer location

Sales are made on the basis of personal contacts and by referrals

SOME GUIDELINES FOR DESIGNING TERRITORIES

Sufficient potential – with insufficient potential, a salaried salesperson will not be used effectively, and commissioned salespeople will leave the company for greener pastures

Reasonable size – is a salesperson’s time being spent traveling or making face-to-face sales calls?

Adequate coverage – is the salesperson able to service all accounts and able to meet new prospects?

Minimum impediments – try to set territories such that rivers, mountains, railroads, etc. set the borders of territories rather than run through the middle.

DESIGNING TERRITORIES

Determine appropriate focal points and boundary areas

Political boundaries – state, city, county, etc.

MSAs

Trading areas

Natural boundaries – mountains, rivers, railroads, etc.

Determine territory shape for efficient use of time and routing

Wedge – slices of a pie; use when salespeople work out of a common office

Circle (or square) – use when salespeople work out of a home office

P.S. Then there is

Category Management: Relates to someone being given the responsibility of managing a ‘Category’, example ‘Footwear’, they would manage Shoes, Socks, etc. but they would not be responsible for shirts etc.

Also thanks to Tom at Golden Circle for the additional insights.

A Time To Reflect

Thursday, November 8th, 2007

I don’t know about you, but I often find myself reflecting on a whole range of things in my life including my professional sales career and wondering at all the things I have learned over the years.

Conscious reflecting on sales has now become almost a daily occurrence for me, especially, since I have been writing this sales blog. There are so many aspects to selling that the more I look into selling the more I find to reflect upon. So it was with some amusement that I found myself reflecting on reflecting itself and how valuable it is to our continued development and overall healthy functioning in this ever-changing world.

Sadly, I have noticed that not too many sales people proactively and independently take the time to reflect on their own performance, the needs and requirements of their customer, business and markets, or their own personal goals. They often need prompting to do so.

How do I know this? Well in every training session I have ever conducted in sales, the feedback I receive from almost every participant is along the lines of:

“This is the first sales training program I have ever done that actually looks at me and how I function in a Sales role.”

Or

“I never looked at myself this way before – now I can see where I can make improvements in my skills and behaviours.”

Or

“Now I understand why I am good at sales”

In this busy world, too many of us do not take the time to self-reflect. Yet self-reflection can be one of the best things you can do for yourself personally and professionally.

In fact research reveals that self-reflection and self-appraisal are the top key attributes demonstrated on a regular basis by top performing sales people. Is it any wonder then why they are top of their field?

So I thought it might be worth reflecting on Self-reflection.

Self-Reflection involves both skills and an attitude of acceptance

Reflection is “thinking about a thing, particularly with a notion of meditation upon a previous experience or event and its significance” (Penguin Dictionary of Psychology)

In the context of Competency enhancement and self-development, Self Reflection relates to what a person thinks about the feedback received, whether it be direct feedback or your observations of others’ reactions to your actions and the outcomes you achieve.

Reflecting on Self involves:

· Making realistic self-appraisals

· Being willing and able to see those aspects of yourself you are less happy with, i.e. your shadow self

· Being motivated to grow, learn and willing to change

· Creating opportunities to receive feedback – It is hard to give feedback at the best of times. We can enhance the likelihood of others’ giving us feedback by giving them invitations to do so

The benefits obtained from Reflecting on Self can be enhanced through the use of the following key skills.

Skills…

Self Awareness – the condition of being aware of, or conscious of oneself – in the sense of having a relatively objective but open and accepting appraisal of one’s true personal nature.

Self-Appraisal – the process of providing an appraisal of oneself

Adopt an attitude of…

Acceptance - seeing yourself as you really are, even if what you see feels unpleasant, being receptive to any aspect of yourself without trying to avoid it or deny.

Non-judging – taking an objective and impartial approach. Being aware of your judgments of yourself and others and then taking a step back to watch, listen and understand.

I encourage you to take time in your day to reflect on yourself, your goals, your plans, your career and your life. Here are some questions to get you started:

· How has your market place changed?

· How have you needed to adapt and change to stay sales fit?

· What feedback are you receiving from various sources that is giving you further insights into your effectiveness as a sales person or human being?

· Am I aware of all the skills and qualities I possess that allow me to sell, communicate and build relationships effectively?

The time you take to self-reflect might just be worth it.

Same, Same but Different

Thursday, November 1st, 2007

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.