SalesBlog

Archive for May, 2008

The relationship of revenue growth to your job?

Thursday, May 29th, 2008

Every sales person knows the relationship of prospecting to sales is critical. Without prospecting you are not likely to get a sale. We all know the relationship of sales to revenue growth is high. But how many people in your company know the relationship of revenue growth to their specific job?

The sales people do. Owners do. They think about it every day.

Yet many people not working directly with customers don’t often think about how their roles impact sales and revenue growth. Even in some customer service teams they don’t realise the connection either. How many sales leads or up-selling or cross-selling opportunities pass them by?

If I had my way everyone in every business would know their line of sight to the customer. Everyone would have sales and service key performance indicators in their job description and performance expectations. Everyone would know how their job impacts on revenue and profit growth. And everyone would know what a sales opportunity looks like so they could spot them and capture them for your business.

Here’s the test. If I came into your business and interviewed everyone separately what answers would you expect from each of your people to the following questions?

  • How does your organisation generate revenue?
  • Who pays this revenue to you?
  • Why do your customers choose to do business with you?
  • What is your role and who do you support in causing customer satisfaction?
  • How does your position or job function impact the profitability of your organisation?
  • How does your position or job function impact customer satisfaction?
  • How does your position or job function impact sales?
  • What are your Standards of Service?
  • What is your own purpose statement?

If you do not know what a purpose statement look like here is an example:

“I’m in business to support and fulfill my customers’ needs, help create an enjoyable work environment and help my organisation operate ethically and profitably.”

Knowing what business you are in and what you stand for is very important to generating revenue growth in business whether you are in the front line or back office.

Take the test and see what happens. At your next meeting or interaction ask your people these questions and see what they have to say.

Let me know what you find, I’d be keen to hear from you.
You can reach me via this form.

Don’t confuse quantity for quality, or biggest for best

Thursday, May 22nd, 2008

Attracting and Searching for Candidates
Just like sales, in today’s market you need a combination of ‘Push & Pull ‘ contact strategies for finding the right candidates for your business. Advertising alone is not likely to yield the candidates you seek. When you decide to recruit externally, the following methods are available to select from:

  • Advertising (On-line job boards (MyCareer, SEEK, CareerOne, etc.); Newspapers;Magazines;Radio and television)
  • Recruitment Agencies
  • Executive search firms
  • Viral Marketing email campaigns
  • University Job Boards
  • In-store Advertising (shop window)
  • Family & Friends
  • Your own website
  • Information Seminars
  • Search (direct contact)
  • Networks
  • On-line network groups (My space;Link Me;Linked in)

With the advent of online job boards, many people can DIY their own recruitment more easily and at much cheaper rates than ever before. Pretty much everyone realises nowadays that online job boards are part of our front line recruitment strategy and not just a nice-to-have. In fact they are very rapidly replacing the traditional newspaper advertising medium, if not already. But you have to know how to use them wisely and well. Putting up recruitment ads willy nilly isn’t going to work. You really need to think about who you are writing the ad for and where they are likely to look. Content, placement and maintaining visibility are some of the key things to consider when using online job boards.

Yet many people assess the credibility, usability and value of online job boards by the volume of candidates they receive without really assessing what those numbers mean. Getting a whole lot of international applicants who are not qualified to work here and no local candidates is tough. As an ex recruiter (pre the online job board days) it was quality that counted not volume. My clients wanted the right sales person for the job not a whole lot of bums on seats. I don’t know about you but I don’t have the time to wade through email after email of irrelevant resumes. If I am advertising I want to attract good quality people that can do the job even if it means I only get two or three to choose from. If I cannot find the right person I need to have other strategies in place.

My advice is don’t get caught up the hype in the about volume / traffic metrics or the brand of the job board alone without investigating the quality of candidates you get from it. Because quantity doesn’t always equal quality and the biggest doesn’t always mean the best.

I am speaking from experience, not just as an ex recruiter, but through my current experiences and observations of the recruitment market and, in particular, online jobs boards and their effectiveness.

Over the last year, as part of our work, we have been assisting a number of our clients with the recruitment of sales and service people and managers. Now we are not working as a traditional recruiter, more like a quasi HR team working along side advising our clients on what to do in this space. We have helped a number of clients in various ways from building and/or supplying them with end-to-end structured competency based recruitment kits, to assisting with candidate screening and interview support.

As part of our support we also advise them on how to write a candidate attractive ad and where to advertise on the main online job boards, which categories to place the ads under, etc. Some of our clients have placed their own ads on the big online job boards in the past and achieved very poor results. This was mainly due in part to the type of ad they wrote. Once ad quality was rectified we helped them place the new ads on the two main online job boards (you know which ones I mean). Here is what we have found so far:

1. With one large online job board we can only get one selection area to place our ads in and within a few minutes of getting posted each job ad was not on the front page any more. The ads had slipped down due to the huge volume of ads they competed with for space and visibility. Within a day each ad was so far down the list that most people couldn’t be bothered looking past the first few pages. (Just think Google searches and you know what I mean). Its almost as if we need SEO for job ads here. Then there are the responses; sadly the quality of applicants from this online job board has slipped markedly over the last year – too many people just sending out applications and not even bothering to read the ad. Don’t get me wrong there are occasionally a few good ones but only a few.

2. Now the other online job board is producing quite a different result. Admittedly we are paying a slightly higher fee per ad but only slightly and what we are getting is the following:

  • 3 job listing locations for the ad
  • the ad is refreshed every week over 4 weeks; which means that the ad goes back up to the top of the page and appears as a new ad again every week for the life of the ad
  • And the overall quality of the candidates has been vastly superior, resulting in hires coming from this job board 90% of the time to date
  • I know the candidates are local and/or qualified to work here.

In short, the second online job board out performed the first in every way with the exception of traffic volume. Now I know you can pay top dollar for big online display ads and get prime position but most SME’s do not have the volume of advertising to get the better ad rates that you get if you are a recruitment agency or big corporate. So as SME’s we have to use a range of tactics and that means using online job boards smarter too.

My advice, if you are speaking with the sales people from any online job board company ask them about how their job board really performs. Ask them about:

  • their demographics;- are their % of unique browers international or local traffic hits? (you can easily inflate the ‘value’ of an online job board site by including international hits)
  • how do they attract local candidates to their site?
  • what % of unique browsers are from your own country?
  • what do their real numbers mean?

If all you get is ‘volume traffic talk’ with no real substance then make sure you have other options available to you. See above

Culture and Communication

Thursday, May 15th, 2008

Selling and servicing across cultures is more common now than it has ever been. And as more and more of us come across international sales opportunities I thought it would be worth while looking at some of the challenges we may come across when trying to communicate effectively cross culturally in sales or other business areas.

In many of the articles I have written I advocate for open, honest, trust based relationships. And I still do, however being a direct, no-nonsense, tell-it-like-it-is person that is what I value most. Therefore, by contrast, I can often find indirect, seemingly non-committal, indecisive communication a real chore. ‘Just get to the point’ I hear myself say. Or ‘are you just saying “yes” to just be nice or do you really want to go ahead?” Aaggh.

I don’t think I am alone, however, in recent times I have really had to take a look at Direct vs. Indirect communication styles as we are quoting for some sales and service training in Asia. I have trained in Asia before, but I really need to be much more aware about the potential communication divide and the value different cultures place on Direct versus Indirect communication. Especially when I am putting relevant sales and service programs which are all based around effective communication.

For instance a well known company have located a main part of their internal services off shore. The people in this offshore team need to answer queries, solve problems and pro-actively deal with their Australian counterparts. While the technical aspects of the job are easy to train, the issue lies in how to equip these people with Direct Communication styles that suit their Australian audience. Some of us have seen Asian call centre staff being trained in the Australian vernacular i.e. G’day mate, etc. However it is so much more than that.

Tackling this issue is not easy especially given the cultural / communication divide. Understanding the core competencies and specific behaviours needed in the offshore team at each level is critical to gaining clarity and providing evidence as to the standards of work performance expected in each role would make a good start. Understanding the business and personal values shared by the people, in each country team, is also critical. These shared values can provide a link and bridge to connect with each other. Building a further bridge between different communications styles and cultural morays is the challenge.

This issue is one of the communication dichotomies which can cause problems between Asian and Western co-workers. Each of these styles has its own intrinsic, often unspoken, rules. When a person used to communicating under one set of rules is thrust into a situation where another set of rules is being used, it ultimately leads to frustration.

Frustration is what the company I referred to before is experiencing. You can try cultural training but unless it is backuped by direct behavioural interventions, shared values, links between direct and indirect communication and ongoing support then nothing will change.

I am no expert in this area, but if I am going in to train a team that uses Indirect Communication in their daily life and culture in Direct Communication approaches and techniques that are part of another country I had better sort it out fast. Here is some information I found as part of my ongoing study in this area. A great article I found really expressed some of the issues and options very well:

SOM@Work » Blog Archive » How to Communicate with Your …

Some cultures, such as in the Australia, U.S., Germany and the U.K. generally value a direct style of communication. They like to “get down to business,” “cut to the chase,” and “get to the point.” They do not feel offended or shamed by the kind of direct statements that might be considered offensive in indirect cultures such as in Asia. In fact, when things are not stated directly, people from direct cultures (such as Australian co-workers) can become confused and frustrated, and might not understand the message at all. They are used to communicating with people whose mantras are “say what you mean, and mean what you say” and “let your ‘yes’ be ‘yes’ and your ‘no’ be ‘no.’” In these cultures, being direct is how people show respect.

In cultures that use an indirect communication style, such as India, China, Japan, and other Asian cultures, it is very common to encounter situations where people communicate in a way that would not cause someone to lose face. Thus, communication happens indirectly. Messages are subtly implied rather than explicitly stated, and people are accustomed to reading between the lines for the message. Words such as “perhaps” and “maybe” are often code for “no,” since saying “no” could risk shaming someone. In these cultures, being indirect is how people show respect.

Those from indirect cultures think of their own style as polite and face-saving, and sometimes see direct communication as rude, blunt and overly aggressive. Those from direct cultures think of their style as open and honest, and sometimes think of indirect communication as “beating around the bush” and a sign that the communicator is trying to be difficult, shifty, or maddeningly vague.

Akio Morita (co-founder of SONY) once said that when Westerners “ask questions or express an opinion, they want to know right away whether the other party agrees or opposes them. So in English, ‘yes’ or ‘no’ comes first. We Japanese prefer to save the ‘yes’ or ‘no’ for last. Particularly when the answer is ‘no,’ we put off saying that as long as possible, and they find that exasperating.”

Each of us intrinsically feels that our style is the “right” style, and the other is the “wrong” style – but in the end, it’s not a matter of right or wrong, but of getting on the same wavelength.

The author of the article suggests the keys to effective cross-cultural communication are to:

  • try to understand the rules by which people are playing
  • play by their cultural rules as much as possible when we communicate with them,
  • give them grace when they have trouble understanding and playing by the rules of our culture.

I’d be interested to hear from other people as to how they are approaching this area. Contact me via this form.  I’ll keep you posted. It’s an ongoing journey.

Sustainability – the new criteria

Thursday, May 8th, 2008

What is your position on SUSTAINABILITY?

What community improvement activities is your company involved with?

These are questions, among many others, that my team and I are responding to for a Request For Proposal (RFP) document for a sales training project with a large Australian Corporation. This is the first time we have been asked to respond to these questions in a formal manner and legitimise our position on ‘sustainability’. As sales people and as business owners, not only are we being asked to legitimise our product offering, our service standards, etc. we are now required to articulate our stand on ‘sustainability’.

How many of us could articulate our approach to sustainability into a pithy, meaningful, realistic, workable statement and strategy that incorporates the many areas that affect our ‘sustainability’?

This RFP raised questions for our team:

  • ‘What is meant by sustainability?’
  • ‘What do we mean by sustainability?’
  • ‘What do we say when someone asks us to explain our position on sustainability?’

The ‘Green’ agenda has be successfully linked to the term ‘sustainability’ for over 10 years now, however, ‘sustainability’ can and does mean so much more. We knew we needed to make visible our approach to sustainability even though on reflection we were all, consciously or not, working to be sustainable. Here are some of the areas we raised to include in our ‘sustainability’ strategy and statement:

  • Vision & Values
  • Culture
  • People
  • Expertise & Process
  • Service & Delivery standards
  • Innovation, Research and Development
  • Business Viability
  • Environment
  • Community
  • Corporate Governance

In researching this topic to help our business to articulate our approach to sustainability I also came across a great resource from Swinburne University which I thought you might like to review as well: Sustainability Strategy

Here is an excerpt from their document on:

Developing a Sustainability Strategy
A ten-point guide for small to medium sized businesses

Business sustainability is becoming increasingly important for managers in the modern economy. Put simply, business sustainability can be described as a holistic continuous improvement process that includes the sound management of people and the environment. Business sustainability makes good business sense because the benefits feed directly back into the bottom line. But where do we start as small-medium sized businesses?

Rather then being just ‘another thing to do’, business sustainability is an over arching concept that involves doing everything better and more efficiently. True sustainability must be integrated into all operations of business – from policy and management through to on-ground activities such as purchasing, production and distribution. While sustainability needs to be driven from the top, it’s not just the job of a single staff member or department – it involves everyone! Sustainability is often approached in an ad-hoc way. For example, you may have a couple of standalone initiatives in your work place that are not linked to any broad strategic objectives of the business. This is a good start, but a coordinated process requires the development of a sustainability strategy that is strongly aligned to the business plan.

My advice is to make sure everyone in your business knows where you all stand on sustainability. Besides all the benefits it brings for everyone in your business to know and live your sustainability agenda you now need it to be evaluated and considered as a valid business partner so you are in a position to win business in the sales world.

Great Story Tellers

Thursday, May 1st, 2008

I have noticed that good sales people are often great storytellers.  They have the ability to find the right story to resonate with your situation.

They speak from experience and you know they know their stuff.  They can paint a picture that is your picture and get you visualizing success in partnership with them.

They seem to be able to connect disparate situations, events or feelings and find the common thread that binds them all together – together for you to connect with. And even if the story they are telling is not directly relevant to your business or market, the situation or person they describe feels familiar.

There is something comforting in knowing that other people experience what you experience even if they are not related to you.  This goes along way to building empathy, connection and trust.

However the world is littered with people who are very good at promoting themselves, telling grand stories to amaze.  These people are often the great raconteurs holding court or keeping everyone mesmerised with their daring do.  The story is all about them.

However these are not the people I am referring to.

The sales people I am talking about don’t tell a story until they have first understood your situation, your views, your challenges and your goals.  And they are often quite unassuming, yet when they connect other experiences with yours they help you understand the world a little better.  Their stories educate and illuminate.  Their stories are based on substance and can be verified.  It was worth listening to the story.

Here is a quote I found that illustrates my point:

“No man is great enough or wise enough for any of us to surrender our destiny to. The only way in which anyone can lead us is to restore to us the belief in our own guidance.”
Henry Miller