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The Latest (disturbing) Findings From The World of Sales

October 13, 2011 in Attitudes & Behaviours, Business Acumen, Procurement, Sales Pioneer

For the third year running I recently had the privilege and pleasure of attending, presenting and acting as MC at the CSE11, Asia Pacific’s Premier Sales Leadership Conference -  “The New Era of Professional Selling; The Pathway from Supplier to Partner Status”.

Over 150 delegates from Australia’s premium companies attended and we heard from some of the world’s leading experts on sales capability, strategy and culture. There was much talk about the rapidly changing face of our B2B (business to business) sales world and how we need to build relevant and sustainable partnerships if we are to flourish.  One of the highlights was hearing from one of Australia’s top Procurement Leaders, Craig Rooney who is the Group Procurement Manager for Porter Davis Homes and former Coles Group Procurement Manager. Craig’s insights were well received and gave us all a clear picture of how to build a Pathway from Supplier to Partner Status with 21st Century Procurement Professionals.   Like Selling, Craig pointed out that the profession of Procurement is undergoing dramatic evolution to adapt to the volatility of today’s business world.

Measuring Brain Waves

Measuring Brain Waves

The importance of Coaching to achieve real sales capability, results, and cultural transformation was a strong message as was the need to genuinely merge and unite sales and marketing, with the rise and rise of social media as a critical piece in the sales machine.  And the emergence of Neuroscience to our effective and sustained performance in sales was a highlight at this conference with live experiments on show.

Another key and somewhat disturbing message was Adapt or Perish.  The world of B2B selling is changing so rapidly that it is now polarising into two distinct areas, with the likelihood of a particular style of B2B sales person becoming extinct in the next few years.

There’s no longer a middle ground in B2B sales.  What you now have is a polarisation of sales approaches:

1.    B2B Transactional Selling
2.    B2B Complex Selling

B2B Transactional Selling is commodity based selling where there is no product differentiation and price or cost is the only priority.   The Pathway from Supplier to Partner Status is not relevant here and this is where we are likely to see the extinction or death of the transactional salesman as the costs to run (such as field sales force with diminishing returns) will see businesses re-thinking their go-to-market strategy.  Those B2B field sales teams that persist in selling product will be treated as commodity sales people who add no real value. Customers will therefore not waste their time seeing or dealing with them.  Eventually, we’ll see the sale of commodity based products move to internal phone sales teams and/or direct to online sales portals.  In many instances this is already happening.

Complex Sale

Complex Sale

This leaves B2B field sales people in the world of complex selling requiring a whole different level of skills, knowledge and mindset.  I have written previously in Know Your Business about the importance of business acumen in sales and becoming a business person who can sell which is even more of a priority now. I have also written previously about The Sales Pioneer the emerging breed of sales professional whose key characteristics rest in the ability to challenge and educate the client, bring insight and wisdom in their areas of expertise to the table and work in collaboration with clients to produce real results.  The genuine Sales Pioneers are the ones who will flourish and prosper along with their clients in the 21st century yet these people are not all that easy to find or develop.

This brings me to consider ‘how do we professionalise selling?’ and create a pathway to becoming the Sales Pioneer Professional.  The thinking and capabilities required to succeed in today’s complex sales environment are in the realms of the standards of MBA’s and other business qualifications.  We all noted at the conference that medical doctors, engineers, pilots and other skilled professionals invest 6-8 years of their own money and effort into attaining their qualifications. It’s about time Selling stepped out from under the shadows of Marketing and MBA’s to be a qualification in its own right and earn a place at the tertiary and professional table.

In conclusion the CSE11 conference signified that many sales leaders, salespeople and procurement professionals are on the same page about where our industry and the markets are heading – insight and collaboration is key to navigating our way in these volatile times.  Managing our own wellbeing and resilience by cultivating our neurochemical pathways and rewiring how we think and act.  While we have a way to go you cannot deny that it’s exciting moving forward to use the changing market to develop our minds, skills and expertise and apply ourselves and our work to benefit our businesses, our clients and customers and the sales profession.

Remember everybody lives by selling something.

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

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The Practice of Confusion Marketing

October 6, 2011 in Attitudes & Behaviours, Culture, Marketing

I wonder how many people, business owners and consumers alike are experiencing excessive frustration, anxiety or even depression as a result of the Confusion Marketing tactics employed by some businesses?

Confusion Marketing is the controversial strategy and practice of deliberately sending confusing marketing material in order to hinder consumers’ comparisons with other similar offers.

confused

Confused Marketing

Many examples are to be found in the telecommunications, banking and  finance sectors, where pricing plans, contracts or interest rate offers can be so complicated that it becomes impossible to make direct comparisons between competing offers.

You will find that with companies that employ such tactics that when you want any form of customer assistance to sort out your bill, statement or service issue, you might as well resort to prayer because that is likely to be more useful than the current standards of service on offer.

Confusion Marketing is the opposite of what we endorse as ethical, transparent selling and business practices.  Sadly, Confusion Marketing is still classified as a legitimate selling strategy, but is really nothing more than deception, sleight of hand, trickery.  Like smoking, just because it’s legal doesn’t mean it’s right.

In March 2006, Theresa Gattung, former CEO of Telecom New Zealand, courted controversy by characterising telcos to a Sydney audience as not “straight up” with customers on pricing.  “Think about pricing,” the press quoted her as saying, “what has every telco in the world done in the past? It’s used confusion as its chief marketing tool. And that’s fine … But at some level, whether they consciously articulate it or not, customers know that’s what the game has been. They know we’re not being straight up.”  On February 2, 2007, Gattung announced that she would leave Telecom at the end of June 2007.

The net results of Confusion Marketing show there is very little loyalty and a great deal of company switching, subsequently wasting valuable time and energy which could be dedicated to other more productive tasks.  Even Einstein would have trouble working out the confusing, ambiguous contracts on offer.

Expensive Mobile Phone Bill

Expensive Mobile Phone Bill

Bill shock is an obvious result of confusion marketing for all the wrong reasons.  Bill shock can generically be used as a term for the surprise an individual receives when the amount owing on their bill is higher than expected.  Other examples of bill shock have been noted in credit card bills, rental bills and utility bills.  The amount of anxiety and distress an individual faces due to these circumstances shows the extent of how poor this business practice is.

I wonder just how many man hours are wasted in lost productivity because people are forced to spend hours and hours working through the finer details to make an informed choice. The same can be said for  the hours spent on the phone waiting to get through to someone intelligible to work out a dispute when confronted with Bill shock or incorrect bills.

The Productivity Commission would have a field day trying to work out just how much of our time and money has been and is wasted because of Confusion Marketing.  I would love to send a bill to our current telco for all the hours my business manager has had to spend to get our telecommunications plans working effectively, and even then there are still issues.  Based on present calculations, I would be able to send a bill for $4,000 at least.   I wonder how they would respond to that.

Since 1 July 2010, Bill shock is illegal in the EU.  Eurotariff protected consumers by introducing a cut-off mechanism once the bill reaches €50 per month, unless they choose another cut-off limit.  There is speculation that this legal precedent will be copied internationally causing quick industry response on solutions for the problem.

Maybe we could get Confusion Marketing made illegal as well? Perhaps then those businesses and markets that still choose to indulge in this dubious practice will  to start to be better business citizens and take responsibility for their actions.  We live in hope.

Remember everybody lives by selling something.

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

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Death of the ‘Detailing’ Salesman

September 28, 2011 in Attitudes & Behaviours, Marketing

If you have been paying attention for a while you will have realized that a lot is happening and changing in the world of selling and buying. The internet and social media are the most significant game changes along with the commoditisation of products.

With access to so much information, the buyer has grown into a more sophisticated, well informed consumer, especially in the B2B (business to business) space.  The savvy business person knows that many of those commodity purchases they have traditionally made face-to-face with a sales representative can now be made online thus saving them valuable time and money.

So why do so many product companies, such as the lucrative Pharmaceutical Industry persist in funding highly expensive, field sales forces whose job is nothing more than getting in front of clients to detail basic product information that is already known to the client and available on the internet?

What value does this add to the client experience?  What costs does it add to the product? And could we get it cheaper elsewhere?

pharmaceutical repclubI propose that before long, the ‘detailing’ sales force days will be  numbered.
I originally was blooded as a sales person in the pharmaceutical industry back in the early 1980’s and found the experience of selling that way really at odds with my natural tendency to help, advise, educate and produce results.  I left the industry after only 2 years hating selling – or at least hating how selling was portrayed to me in this industry.  Since then I have understood why this type of selling is not the best approach.

So it came as a great shock to see that nothing had changed in the industry when I presented at a recent industry conference for the pharmaceutical industry – it was like Groundhog Day, the 1980’s all over again.  Although there is mounting evidence that this is not working anymore, the industry is still sending out field sales forces.

Time poor professionals such as doctors and dentists do not want to see them anymore – they do not see any value in someone just ‘showing up and throwing up information’ or ‘taking orders’ they could put through on the internet, unless, of course, the sales representative shows up with a lovely lunch befitting Masterchef.

Clients are not stupid; if they can get the basic commodity products cheaper online they are not going to make time for a sales person that adds no further value. Why would they?

They would rather invest time talking to a sales representative who will bring valuable insight to the latest innovation or technique and  educate  them on how to run a better business, achieve better results, give them back more time.

If these businesses are to invest in any field force representation the place would be in new product and techniques innovations, and education and consulting. Clients want business people who can sell, add value and help grow their business. At the same time, these businesses will need to set up effective online channels which give their clients access to fairly priced commodity items they know they can rely upon in terms of quality and efficacy.

However if the original companies who have made a name developing and producing these quality products, which are now commoditised, do not have an online presence then other companies, some who are less than reputable, will fill in the gap and take sales the original companies could have got.

The clock is ticking down.  Watch this space.

Remember everybody lives by selling something.

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

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8 Top Tips To Stop Yielding and Start Earning

September 22, 2011 in Call Reluctance, Coaching, Prospecting, Sales Assessments, Sales Training, Tips, Yielding

Do you experience difficulties asserting yourself with others in a sales context?  Is maintaining positive relationships with clients so important to you that you are concerned these relationships may be damaged if you are perceived as pushy or intrusive? Do you hesitate to prospect, sell or self promote due to a reflexive fear of being considered too pushy, intrusive, or selfish?

If you recognise any of these behaviours you might just be suffering from the debilitating behavioural issue known as ‘yielding’ which affects many sales people and keeps them from earning what they are worth.

Despite the fact that selling requires assertive behaviour, ‘yielding’ is the most common behavioural issue for sales people. The result of yielding is underperformance in sales and devastating consequences for the individuals concerned, their teams, customers and managers.

So how do you stop yielding and start earning?

Make no bones about it, selling is an assertive profession.

Selling requires people to ‘push’ themselves out into the market place and put themselves in the right position to work with the right customers.

balanced approach

A Balanced Approach

People who act assertively are:

  • Positive – Rather than negative.
  • Calm – They’re at peace with themselves & others.
  • Enthusiastic – They complete tasks with zest & feel they’ll succeed at them.
  • Proud – They accomplish what they do without stealing ideas from others.
  • Honest – When they give their word that they’ll do something, they do it.
  • Direct – They don’t play manipulative games to get what they want.
  • Confident – They take calculated risks.
  • Satisfied – They know where they’re going & how they’re going to get there.
  • Respect for others – They recognise others have needs & rights.
  • Energetic – Their energy is directed toward achieving their goals.

By contrast, yielding is passive, fear-based behaviour and is usually learned* to avoid dealing with difficult or confronting situations.  If practiced too much it can become a deeply ingrained habit affecting many situations in life.   Some of these habits include:

  • indecisiveness, non committal or excessively subjective
  • tend to agree with everything, hesitate to challenge or contradict
  • waiting for the ‘right time’ to prospect or sell
  • needing to be liked over making sales
  • sometimes manipulates others through non-confrontational means such as gossiping, pouting, and passive-aggressive power plays
  • super-sociable, a rapport-builder, empathetic, always agreeing on the surface yet can be critical behind others backs
  • conflict-avoidant; and have difficulty speaking when angry
  • have difficulty closing sales and talking about money
  • focussed on rapport-oriented sales presentations rather than having real discussions about clients’ priorities, issues or needs
  • too quick to accept client objections and let them walk all over you
  • give away margins or discount unnecessarily
  • would rather make friends rather than clients

Sadly sales teams have far too many people with yielding behaviour producing poor sales results. This is endemic in sales and service teams. Individuals with yielding behaviours often show a lack of prospecting capability, poor up-selling and cross-selling skills, have issues with quality control because they will not speak up about issues, often undermine the actions of others, which all leads to the erosion of  trust in relationships which is the very things yielders do not want.  The result is stakeholders and clients not getting what they really need because people with yielding will not ask more in-depth questions, assert themselves or challenge the views of others instead accepting everything on the surface while often disagreeing beneath the surface; and so on.

Often labeling people who act assertively as ‘aggressive’, people with yielding behavior will justify their actions and often resist attempts to be more assertive.   What people with yielding behaviour often do not realise is that when they yield other people feel:

  • Irritated – They wish you’d stand up for yourself  & make your own decisions.
  • Withdrawn – They avoid you because your negative attitude makes it difficult for them to maintain their own positive attitude.
  • Superior – They lose respect for you as a person, because you aren’t willing to stand up for what you believe in.
  • Tired – They waste valuable energy dealing with their negative reactions to you.

Yielding is not cool.  Never has been and never will be.

While building rapport with clients is important, a reluctance to adopt more assertive selling behaviours such as speaking up for yourself, challenging ideas, asking questions, etc. is likely to prevent you from initiating and closing sales.  So how do you overcome your yielding tendencies?

Tips for overcoming yielding:

  1. Remember that the price, terms, conditions, and other related aspects of your product and service have been set with a lot of forethought and planning in mind. Try not to fall for the trap of undermining your own product or service before you begin the negotiation.
  2. Negotiate for positive outcomes i.e. win/win outcomes. Quite frequently giving way, for its own sake only serves to damage the longer-term relationships with your clients and others.
  3. If you give something, ask for something back in return.
  4. People respect assertive people who speak well of their products or service. Inject enthusiasm and real warmth into your discussions. Particularly when you have to say ‘No!’ .
  5. Speak up about how you feel and what you really want – we cannot read your mind.
  6. Don’t make assumptions – always ask questions to uncover what people really need.
  7. Challenge yourself by asking some questions about the situation.
  8. Ask yourself ‘What is the worst thing they can say if I ask for what I want?’ The worst answer is ‘No’, however you will be surprised how often they will say ‘Yes’.

You can assess your sales fitness and behavioural tendencies too, including yielding, by taking the world renowned Sales Preference Questionnaire to give you a more accurate diagnosis.  If you want to know more about your current sales fitness and get your specific development tips and coaching, talk to us at Barrett on (+61) 03 9533 0000.

*Some people have personality traits which are more passive by nature, this means they will exhibit more of these behaviours. However,  they too can learn to be more assertive with training. Most people have learned how to be passive or yielding which means they can unlearn these destructive behaviours.

Remember everybody lives by selling something.

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

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Procurement & Value Managed

September 15, 2011 in Culture, Customer Service, Procurement, Value Creation

‘Procurement & Value Managed’ was voted as the Number 8 for Sales Trends for 2011. In 2011 we are seeing the development, thinking and sophistication of the Procurement Profession accelerate. This progression will surely see procurement on the front foot of supply chain management.  Around 60 percent of major global corporations now have Procurement and Supply at the executive table alongside sales, marketing, finance, production, HR, IT, etc.   Security of supply, environmental credentials, sustainable business practices, integrative processes and business cases will be up for discussion at the executive level and procurement are right in the centre of key decisions making.   Smart procurement professionals will centre much of their thinking and advice around Value Management rather than Cost Management.

Contrary to popular myth that all procurement people want to negotiate the lowest price, the procurement profession is presenting itself as far more sophisticated than most sales people give it credit for.

Recently I had the opportunity to attend and present at the CIPSA CPO100 conference where the top 100 Australian companies were represented by their Chief Procurement Officers. The insights and findings were fascinating – a significant feature being the growing importance of having viable relationships with internal stakeholders, sales people, suppliers and customers. The procurement profession recognises that in the past, its members haven’t done the best job in building and managing viable business relationships within their own organisations or with suppliers, admitting that the end-user customer could even be forgotten.

But things are quickly changing – smart procurement professionals now recognise they need to look at the whole supply chain process. They need to have a firm grasp of the organisation’s strategy, culture and capability as well as an understanding of the intricacies of the changing needs of their customer base and their buying behaviours.

In this volatile world, it is well  recognised that customers no longer buy vertically and now buy horizontally, subsequently creating havoc in traditional supply chains.  For instance ‘Zara’* one of the latest fashion brands to hit our shores has a three week turnaround on new range promotions. This means that new product materials need to be sourced, made and shipped to store within 15 days.  This means 16 new ranges per year.  This has turned supplier relationships, procurement practices and the retail fashion business on their heads.

How does procurement respond in this instance?  According to Supply Chain Management expert Dr John Gattorna they make sure they fully understand the business, its strategic priorities, its customers’ buying habits, internal stakeholders and suppliers’ capabilities.  He states that sole focus on cost management will not work in this case and says that effective supply chain management is all about understanding the behavioural profiles of your customers, internal key stakeholders all the way through to your suppliers. Aligning your behavioural preferences along with your strategic intent and cultural values will get much better outcomes for all concerned.

Procurement realises that multi-disciplinary work clusters within organisations rather than silos proves more effective. This means that people actually get to talk to each other and really connect about projects, production, supply and successful outcomes in the field.

Procurement professionals admit there is still some way to go as far as the reputation and actual capabilities of their profession.  They know they need to reposition and rebrand procurement as a strategic partner offering ‘value’, as suppliers also need to.  Many procurement professionals are fast realising they need to adopt the same skills they value in highly effective sales people or account managers.

The irony is that often the professions of Procurement and Selling have been pitted against each other when they have all the while really been trying to achieve the same thing – bring value to their clients and/or stakeholders.

Rather than work against each other smart procurement and sales professionals work together each understanding their goals and objectives and where they can find common ground and viable business relationships.  Smart procurement and sales professionals are business people looking for viable solutions that serve the end user – the customer, as well as the businesses of both client company and supplier.

This is why I’m building bridges between the two professions.  I have invited Craig Rooney, Group Procurement Manager for Porter Davis Homes and former Coles Group Procurement Manager to discuss what 21st century procurement professionals are looking for from sales people that’s beyond the price discussion at the CSE11 Sales leadership conference on 10-11 October 2011. This will be the first time a procurement professional has presented to the sales profession in Australia.  As I have been given the opportunity to speak at CIPSA conferences on several occasions I thought it would be good to hear from procurement.

So the sales profession could do itself a favour and pay attention to these changes and ditch the ‘Us versus Them’ scenario when it comes to dealing with procurement.  2011 and beyond is about working with procurement to build viable relationships manage real value.

*It should be noted that Zara has come under scrutiny for breeches of working conditions as it has been accused of using slave labour in Brazil.  Their procurement practices are currently under investigation.

Remember everybody lives by selling something.

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

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