Thursday, November 30, 2006

The Sales Sandwich

Legend has it that the 4th Earl of Sandwich placed his meat between two pieces of bread because it allowed him to continue playing cards while eating without getting his cards sticky from his greasy hands -- hence the name “sandwich.”

If you will pardon the pun, if your advertising sales are not a sandwich you are missing the bread and butter of the sales process.

Each of the most popular sandwich making salads (tuna, chicken salad, egg and ham, etc.) can be served on a bed of lettuce, a salad, or between slices of bread, a sandwich.

The salad is the heart of the sales meal. Within the salad, you have mixed all the facts and benefits that make the meal. You are pitching the best ingredient you can muster. You have seasoned to the prospects taste. You have added the mayo of your personality to bind it all together. You’ve added bits of pickled testimonials, diced onion stories, and the salt and pepper of evidence. You have tossed together the best of all possible sales salads.

At the risk of pushing the analogy too far, the Earl of Sandwich’s motive for bread was to keep his hands clean. He knew he needed to eat, but he didn’t want to interrupt what he was doing. If you consider the fact that your prospective client is also more interested in what she or he is doing, than eating what you are serving. It makes sense to present your “sales salad” in bread as a sandwich. This way they can partake without getting their hands greasy.

Now, let’s look at the bread. The two slices of bread needed to create a sandwich, represent the before and end of the sales process. The bottom slice is the foundation, the preparation you have made. The marvelous thing about selling today is that most of your prospects have been kind enough to post everything we need to know about them on the internet. It used to be that doing a detailed, “customer needs analysis,” was the vital portion of the sale cycle. Today, investigating all the available information on the web is the first step.

This first slice of bread is the critical piece of the sales sandwich. Here’s why:

•Preparation Prepares You – remember as a kid the days you really did your homework. You were ready for class. You couldn’t wait for the teacher to call on you. Oh, those might have been rare days, but you remember them. Your confidence was high. You were proud. You were ready. Selling is no different. When you are well prepared for a sales call, you exude confidence, a certainty of demeanor that breaks down resistance.

•Confirming answers is better than asking questions – How much more powerful is it to say, “My research tells me you have been in business for 15 years. Is that right?” or, “How long have you been in business?” Obviously, the answer is the first. It tells the prospect you have researched her business. You’ve taken the time to prepare. You are serious. You are a pro.

•The little time it takes makes a big difference – The world is full of advertising sales people. Why? Because, there is a lot of advertising to be sold. You’re second most important task is to differentiate yourself from you own competition. (You decide what the first most important task is.***) The first slice of bread is what few, if any, of your competitors do. It takes a few minutes, may be ten, to make you ten times better than the others.

•People don’t care how much you know until they know how much you care. Show them you care, by showing what you know. Among Dale Carnegie’s Human Relations principles is, “Talk in terms of the other person’s interest.” Your first slice of bread will put you on the road of a professionally caring relationship with your client. It is what make business worth doing. It is what builds lasting business and life long friends.

Now, if I have convinced you to put a slice of bread down, then go ahead and spread out the presentation salad. Put it on thick. Give ‘em their monies worth.

Now let’s top it off with the other slice of bread --closing. Yes, I said “closing.” You simply ask for the order. As in, “Can we go ahead and start?” Asking for the order is critical. Everybody talks about it, but few do it. Failing to do so makes it an opened faced sandwich and hard to eat. If your purpose is to close a sale, then go ahead and close the sale. Asking is not being pushy. Asking is being professional. Selling is what you do, so do it! Ask for the order. Top off the sandwich with another slice of bread.

Thinking of the sales process as a sandwich provides a solid diet of quality sale calls. The fact is that having great sandwich filler is important, but serving it between two slices of fresh bread is what makes for the most rewarding sandwich.

Wednesday, November 29, 2006

Costs Analysis

Careful analysis of most marketing costs shows that the money is spent for a specific purpose – for example, to develop or promote a particular product or to serve particular customers. By breaking out and comparing the costs of different sales reps, the marketing manager has a much better idea of what it is costing to implement the strategy in each sales area. Two basic approaches to handling allocating costs are possible – the full-cost approach and the contribution-margin approach.

In the full-cost approach, all costs are allocated to products, customers, or other categories. Because all costs are allocated, we can subtract costs from sales and find the profitability of various customers, products, and so on. The full-cost approach requires that difficult-to-allocate costs to be split on some basis.

When we use the contribution-margin approach, all costs are not allocated in all situations. The contribution-margin approach focuses attention on variable costs – rather than on total costs.

The difference between these two approaches is important. The two approaches may suggest different decisions. Arguments over allocation methods can be deadly serious. The method used may reflect on the performance of various managers – and it may affect their salaries and bonuses.

To avoid these problems, firms often use the contribution-margin approach. It’s especially useful for evaluating alternatives – and for showing operating managers and salespeople how they’re doing. The contribution-margin approach shows what they’ve actually contributed to covering general overhead and profit.

Top managers, on other hand, often find full-cost analysis more useful. In the long run, some products, departments, or customers may pay for the fixed costs.

Tuesday, November 28, 2006

How to Build a Sales Pipeline

Many salespeople or businesses never build a sales pipeline that will deliver the results needed to become successful. These are guidelines for building a successful sales pipeline. Before we begin, we must define what a sales pipeline is.

A sales pipeline is any list of qualified prospects that aren't ready to buy right now.

A good analogy is fruit on a fruit tree that hasn't ripened. You many have qualified these suspects as good prospects for customers. However, you must be around when these prospects are ready to buy. If you don't build a contact pipeline to them, these prospect opportunities will wither away. Worse yet, someone else will be around when the prospect ripens and you miss out on new business.

Follow the Best Practices of Selling When a master gardener lays the foundation for a lawn or garden sprinkler system, they plan the pipeline down to inches. The gardener starts out with a map of where they want the water to go. The same is true with sales except it will be your contacts that feed sales instead of water. Think about sales as if they were fruit trees and you wanted to increase the fruit yield each year. You must lay the sales pipeline so it provides the contact nourishment for maximum yield. This would be the best practices of selling.

If a fruit tree could talk, it would tell you not to forget about it and tell you to water it consistently over time. The tree would tell you to water it during the hottest months just like you should contact your hot clients when they are most likely to need your services. This requires a system that will regulate your contacts with each client. The important thing is to listen to your clients and follow the best practices.

If a client tells you they will be ready in about 6 months, you should have an action plan that will contact them regularly during the time period they ask. The consistency of your action plan will yield the most sales. Just like with an automatic watering system, your sales plan should be automatic.

Automate Your Selling System for Best Results Many of the contact management systems on the market are only semi-automatic. This means that they require a human to do most of the work and it isn't the same as an automated system. Additionally, many of these sales systems don't have the best practices built into them. An automated sprinkler system is designed to water at about the same time each day and with the correct amount for each plant or tree. Ideally, a sales action plan will provide the correct amount of contact for each type of situation for each contact. This would be based on the contacts selling position in the selling process.

One sales program, Impactivator, is designed to mimic the feature of an automated sprinkler system. With the push of a few buttons each morning, a salesperson is able to manage their sales pipeline with consistent results. This is because the program uses the best practices of selling. There are about seven positions that cover the typical sales path.

* Introduction
* Qualify
* Closing
* Proposal
* Satisfaction
* Maintenance
* Waiting

Although most businesses are different from one another, most of them require a similar pipeline system. When you build your sales pipeline, it should be customized to match your business and have the flexibility of change. Think of this creation like you would if you were laying a garden plot or an orchard of fruit trees. You will want to deliver the right amount of water. In selling, this would be the right type of contacts such as email, letters, personal visits and telephone calls in the right sequence.

For the best results, you should seek assistance from a resource experienced in your industry. You will want specific expertise with the type of clients you want to do business with.

Monday, November 27, 2006

Top 10 Reasons Salespeople Fail

We studied how the Top One Percent of Salespeople in 23 industries actually sell. They earn more than the average CEO, yet they seldom work as long, nor as hard. Almost all of the Top 1% utilize a consistent sales process with all their prospects and customers. Most of them print out their sales process in questionnaire format so that they do not have to memorize anything. That way, they can focus all of their attention on their prospects, rather than thinking about their next question or the next step in their sales process.

We have also studied how most of the other 99% of salespeople actually sell. Most of what they do is in direct opposition to how the Top 1% sell.

1. Most salespeople don’t prospect efficiently, effectively and enjoyably. (See my previous article, “Top 10 Tips for Prospecting Success".) Therefore, they spend most of their selling time with prospects who will not buy.

2. Most salespeople do not utilize a consistently effective sales process. Therefore, each sales opportunity is handled differently, based on what they are comfortable doing. Their results are hit or miss. The Top 1% consistently do what has the highest probability of producing high closing rates.

3. Most salespeople believe that their primary function is to persuade and convince prospects to buy their products and services. Therefore, they utilize manipulative persuasion tactics, which most prospects resent. That creates sales resistance and results in low closing rates. The Top 1% know that persuasion and convincing are obsolete sales tactics. They utilize selling tactics that are compatible with the way the human mind works.

4. Most salespeople fail to get a conditional commitment to do business at the beginning of the sales process. Therefore, they waste too much time with prospects that have no commitment to buy.

5. Most salespeople neglect to determine the exact buying intentions of their prospects, including what their financial capacity is, when the purchase will occur, who makes the final decisions, etc. Therefore, they spend too much time and resources on low probability prospects.

6. Most salespeople attempt to do what they call “building rapport." However, what they are really doing is trying to get the prospects to like them, which is an inherently manipulative process. Most prospects are far more concerned about whether they can trust and respect you. Therefore, you must learn how to immediately develop that kind of a relationship.

7. Most salespeople do “sales presentations,” rather than determining what their prospect wants, and why. Therefore, their prospects feel neglected and disrespected.

8. Most salespeople close at the end of their sales process. Top salespeople start closing at the beginning of their sales process – as in item 4 above – and continue to close throughout the process, as many as thirty times. The sum of all those commitments adds up to a relaxed, no-pressure close.

9. Most salespeople learn a few techniques for “overcoming objections” which are largely Manipulative Rhetoric. Top salespeople eliminate almost all objections with their sales process.

10. Most salespeople are locked into old beliefs about selling. Therefore, when they try to improve, they only improve on what they already know. That can only result in small incremental improvements. Top salespeople look to make dramatic changes in their sales process in order to get major increases in their sales productivity.

Top 10 Reasons Sales Managers Fail- and What To Do About It

Sales managers fail for two primary reasons: 1) They don't know how to manage their people; and 2) They don't rigorously implement effective selling processes. Just as an engineering manager needs to be a pretty competent engineer, a sales manager need to be a pretty competent salesperson. In both cases, however, their essential responsibility is to manage staff performance. Understanding modern management principles beyond a few readings of “The One Minute Manager" is critical.

Most engineering managers know that technology is evolving too quickly for them to keep up at the level of a functioning engineer. However, they do know enough about the latest technology to manage the engineers deploying it.

In contrast to engineers, most sales managers believe that very little has changed in the "Sales Game" since they became a manager. Therefore, they tend to manage their people in the same way that they used to sell. However, the markets for every product and service have changed dramatically in the last twenty years. Information Overload, the Internet, inexpensive communications, increased competition, more savvy prospects, brain science and new sales channels have affected all businesses.

Top salespeople have developed new sales processes to address and exploit these changing market conditions. That is what most sales managers don't know.

1. Most sales managers don't know how to use highly effective tools to recruit and train salespeople that will perform well in their organization. Therefore, they often hire salespeople who are incompatible with their company’s culture and lack the appropriate sales aptitudes for their industry.

How to Hire the Right People: Contract with a service agency that will benchmark you and your best salespeople, find candidates with similar aptitudes, and select salespeople most compatible with your management style.

2. Most sales managers don't have a highly effective, uniform sales process for their company’s products and services. They advocate “best selling practices” based upon past market conditions and obsolete sales strategies. Therefore, they focus on the wrong metrics, which inevitably are flawed.

How to Focus on the Right Metrics: Develop a sales process that is very different from the one that you are now using. Talk to sales training companies, and look for a company that will customize and optimize the selling process for your company and industry.

3. Most sales managers don't know how to train, supervise and track their salespeople's performance to optimize their sales effectiveness.

How to Keep Salespeople on Track: Maintain a uniform and consistent process, monitoring and benchmarking all sales activity throughout the sales process.

4. Most sales managers lack skills in target marketing and prospecting. Therefore, their salespeople waste most of their time with prospects who will not buy.

How to Focus on Likely Buyers: Set demographic, situational and attitude standards for the type of prospects that are most likely to buy. Develop criteria based upon booked business.

5. Most sales managers believe that “you can't close if you don't get in front of prospects.” Their salespeople go on as many appointments as possible, spending far more time with prospects who will not buy than with those that will buy.

How to Stop Wasting Time with the Wrong Prospects: Insist that salespeople find and make appointments only with highly qualified prospects.

6. Most sales managers believe that salespeople should be able to convince prospects to buy. Therefore, they have their salespeople try to persuade prospects to buy when they are merely “interested.” It doesn't seem to occur to them that their salespeople can't convince people to do anything they don't already want to do.

How to Stop Losing at the "Persuasion Game": Abandon the game altogether- there is no way to consistently win. Insist that your salespeople treat prospects with trust and respect, utilize an effective sales process, and abandon all forms of persuasion, false urgency and manipulation.

7. Most sales managers don't know the difference between qualification and DISqualification. Therefore, their salespeople create sales resistance by selling to prospects when they are not ready to buy. That lengthens the sales cycle and decreases their closing rates.

How to Shorten the Sales Cycle: Insist that salespeople only make appointments with prospects who are ready to buy or specify. Closing rates will increase dramatically.

8. Most sales managers don't understand how the human mind works, and how it accepts or rejects information. Salespeople typically spew features and benefits in terms of industry jargon.

How to Communicate with Prospects: Use words that prospects can readily understand. They'll feel more motivated to keep listening, they'll absorb and retain more information, and they'll be more actively engaged in the sales process.

There have been many studies about how to communicate most effectively. We used much of that research, as well as our own studies, to develop the High Probability Prospecting Offer Design Template. You can have a copy by sending us an email request with the words “Offer Design Template” in the subject line.

9. Most sales managers believe that most prospects make logical buying decisions. If that were true, enrolling in logic courses would be the path to success in sales.

How to Really Get Through to Prospects: Engage prospects emotionally. Recent studies in Brain Science have revealed that most important decisions are made in the part of the brain that deals with emotions. In High Probability Selling, we incorporate that knowledge into the selling process, resulting in higher closing rates.

10. Most sales managers don't know how to get salespeople past their fears. Therefore, most of their salespeople stay in their comfort zones and under-perform. The cost of this problem is enormous.

How to Boost Performance: Almost all salespeople, whether beginners or veterans, can learn how to get past their fears and avoid slumps and/or burnout. It just takes a specialize set of psychological principles. Getting your sales forces to operate at optimum effectiveness is an entirely reachable goal.

Astute readers will notice that there really aren't 10 Reasons That Sales Managers Fail! Underperforming sales managers make two fatal errors in myriad permutations:
1. They fail to target their true market and drive salespeople to "sell" to prospects who are unlikely to buy now.
2. They drive their salespeople to utilize obsolete persuasion systems because they don’t know how to the harness the power of Relationships of Mutual Trust and Respect.

How to Dramatically Improve Sales Performance? Develop a uniform structured, effective and quantifiable selling process that optimizes sales process, increasing the probability of closing the sale every step along the way.