There are many things which make up a good salesman: you need to be able to talk to people, you need to have confidence, you have to be persuasive, and you must know your business. But there is one aspect to becoming a better salesman that nearly all the teaching manuals and books miss. This is a shame since it's probably the most important quality a person needs to become a great salesman and it has little to do with anything you say to a customer.
It has to do only with you.
The quality I'm referring to is being able to hear this word over and over again: "NO!"
You must be scratching your head and wondering what on earth I'm talking about, but trust me that this is important. You see, even great salesmen fail more often than they succeed. In fact, the acceptable statistics for salemen are that even if you're good, you only have about a 10% success rate. This means that you only make 1 sell for each 10 people you approach; 1 Yes for every 9 No's.
Most people simply get discouraged by these frequent rejections, lose heart and confidence which lowers their selling abilities even further. If you wish to be a better salesman, you need to break free of this notion and to learn to take these No's in the right way.
Here's the way to think about it: For each 10 people you only make 1 sale, right? So instead of thinking of the 9 rejections as failures, which can easily lead to demoralization, think about each of them as a 10% success. I mean, for each person you talk to you make 10% of a complete sale since 1 person in 10 will end up buying. When you think about it this way, you have no problem of hearing the occasional NO which will lead to increased confidence and in turn bigger selling success.
Wednesday, December 19, 2007
Mining for Those Golden Prospects Should Come Easy to Financial Advisors
Prospecting is necessary since the purpose of business is to attract and maintain customers. (Source - Peter Drucker) Many professional sales people including small business owners find prospecting difficult.
In today's world, there are 3 significant investments - house (property), car (transportation) and retirement. As a financial advisor, you have far more golden opportunities to increase sales than many others who seek to sell their products or services.
If you are a financial advisor, you should be able to mine for those golden prospects much easier because:
* More people have a need for financial security
* Less people understand what they need to do
* Very few people know how to do what they need to do
How you mine for prospects can be as simple as asking for referrals, joining a formal networking group or holding seminars that can further educate the need of your prospects. The goal is to build an authentic relationship of mutual trust from which you then have the opportunity to discover additional wants and needs of your prospect.
With so many financial advisors saying the same thing about protecting your money to growing your wealth, you must also use these opportunities to further separate yourself from the other financial advisors. I call this being the red jacket in the sea of gray suits.
Another way to prospect is to focus on a niche market such as:
* New married couples
* Families with children in middle school
* Couples without children
* Early retirement (forced attrition) workers
* Widows
* Widowers
* Business owners looking into succession planning
* Recent college graduates
Once your niche market is identified then you need to create a plan and then execute or operationalize your goals within that plan. All of your prospecting (marketing) activities should then be directed to achieving those goals. By taking these actions, you will be mining a lot more golden prospects and potentially not working nearly as hard to increase sales.
In today's world, there are 3 significant investments - house (property), car (transportation) and retirement. As a financial advisor, you have far more golden opportunities to increase sales than many others who seek to sell their products or services.
If you are a financial advisor, you should be able to mine for those golden prospects much easier because:
* More people have a need for financial security
* Less people understand what they need to do
* Very few people know how to do what they need to do
How you mine for prospects can be as simple as asking for referrals, joining a formal networking group or holding seminars that can further educate the need of your prospects. The goal is to build an authentic relationship of mutual trust from which you then have the opportunity to discover additional wants and needs of your prospect.
With so many financial advisors saying the same thing about protecting your money to growing your wealth, you must also use these opportunities to further separate yourself from the other financial advisors. I call this being the red jacket in the sea of gray suits.
Another way to prospect is to focus on a niche market such as:
* New married couples
* Families with children in middle school
* Couples without children
* Early retirement (forced attrition) workers
* Widows
* Widowers
* Business owners looking into succession planning
* Recent college graduates
Once your niche market is identified then you need to create a plan and then execute or operationalize your goals within that plan. All of your prospecting (marketing) activities should then be directed to achieving those goals. By taking these actions, you will be mining a lot more golden prospects and potentially not working nearly as hard to increase sales.
Thursday, December 13, 2007
Improving Sales Performance
Sales performance is a measurement of how a company has fared in promoting its product. Whether it be positive or negative, a review of the sales performance is crucial to see if a company is doing well or if it needs improvement in some areas. It can be gauged on several different factors. These factors can include revenue and turnovers. It is natural that a company seeks to maintain or improve their sales performance. There are several ways to improve the company's sales performance, this will include everything from the early stages of product development to the logistics involved in distributing the product. Another thing that is believed to affect sales performance is Pareto's Principle or otherwise known as the 80/20 rule.
Improving your company's sales performance shares the same principles as improving your own personal skills. For example if you want to be a better painter or artist than you are now, you will have to improve your skills as an artist, you may turn to books and lessons that will teach you the tips and tricks that will improve your skills.
All these tricks to improve your skills in painting may also be translated into improving your company's sales performance. First, you need to spend time looking over what you need to do. This step includes researching and extensive studies on what products and services sell the most in whatever market you are in. Another crucial part in ensuring that you get the optimum sales performance is the Presentation. No matter how great your product is, no matter how promising your prospects are; they can all amount to nothing if you do not present it properly. Presentation can oftentimes make or break your product. Spend adequate time on this to make sure that your products are presented in the best possible light. Perhaps the most important tip in improving sales performance is simply by knowing your product. You have to know what you are selling to the public. This was you can easily defend it and you can showcase it in the best light possible.
One thing that is considered relevant to Sales performance is that of Pareto's principle or the 80-20 rule. The 80-20 rule can be surmised by saying that the 20% that is known to affect 80% of the outcome should be given importance. It also states that most of the time 80% of the problems is caused by 20% of the defects found. This means that the lesser (20) is much more important than the greater (80). So, in order to improve sales performance, managers must learn to focus on the 20% most important matters that have the greatest effect to the whole. Proper identification and improvement of the 20% can dramatically affect the outcome of the rest. Check on the top players of the sales team to increase overall sales.
Improving your company's sales performance shares the same principles as improving your own personal skills. For example if you want to be a better painter or artist than you are now, you will have to improve your skills as an artist, you may turn to books and lessons that will teach you the tips and tricks that will improve your skills.
All these tricks to improve your skills in painting may also be translated into improving your company's sales performance. First, you need to spend time looking over what you need to do. This step includes researching and extensive studies on what products and services sell the most in whatever market you are in. Another crucial part in ensuring that you get the optimum sales performance is the Presentation. No matter how great your product is, no matter how promising your prospects are; they can all amount to nothing if you do not present it properly. Presentation can oftentimes make or break your product. Spend adequate time on this to make sure that your products are presented in the best possible light. Perhaps the most important tip in improving sales performance is simply by knowing your product. You have to know what you are selling to the public. This was you can easily defend it and you can showcase it in the best light possible.
One thing that is considered relevant to Sales performance is that of Pareto's principle or the 80-20 rule. The 80-20 rule can be surmised by saying that the 20% that is known to affect 80% of the outcome should be given importance. It also states that most of the time 80% of the problems is caused by 20% of the defects found. This means that the lesser (20) is much more important than the greater (80). So, in order to improve sales performance, managers must learn to focus on the 20% most important matters that have the greatest effect to the whole. Proper identification and improvement of the 20% can dramatically affect the outcome of the rest. Check on the top players of the sales team to increase overall sales.
How to Sell Through an Economic Downturn
It may be time to dust off my notes for a talk I gave a few years ago about the challenges and opportunities of selling in a down economy. Little did I know then, in 2001, that the economic upturn that followed would be so short lived. Before you can prepare to sell in a down economy you need to be sure you're in one or will enter one soon. But how can you tell?
Watch the fortunes of small business. Signals of an economic downturn begin to flash when small businesses cannot obtain the financing they need to operate and grow. It's easy to forget that 90% of American businesses have fewer than 20 employees. As credit markets tighten, and small businesses are unable to secure financing for growth, or for weathering rough waters, it's time to prepare for selling in a down economy.
There are some other unconventional economic indicators I pay attention to when I think about how the economy is doing. Cutbacks in the routes of delivery companies like Federal Express and UPS usually appear as early warning signs of a general slowdown. Federal Express recently advised that it expected reduced revenue in 2008. When Hormel Foods Corporation, the maker of Spam, reports higher sales of the canned luncheon meat, as they indicate they will in 2008, you can bet that folks in large numbers are hunkering down for a recession!
The causes of each economic downturn differ, at least slightly, from previous downturns. The housing industry, which was generally credited with propping up an otherwise wobbly economy for the past several years, now is leading the economy into choppy waters. The large number of interest only, adjustable rate, no money down, no income verification, and no credit-required loans written during the housing boom, and the reality of declining house values, is now a prime cause of the bad moon rising.
How then do you, the sales professional, survive and maybe even prosper when a bad moon rises and you find yourself selling in a down economy? There are at least four things you can do to prepare to sell through an economic downturn:
- Stay in front of your customers.
- Get to the senior executives in buying organizations.
- Share success stories with senior executives that are relevant to their business.
- Manage your time as a guardian of your company's resources.
In tough economic times it's vital that you stay in front of your customers, especially your best customers. One major caveat applies to this advice - only contact your customers when you have something of value to offer them, such as advice, an unusual perspective, or special knowledge. Never, I repeat, never, contact a customer during tough times and ask, "Do you have any orders for me today?" That inane question will drive customers to the nearest exit!
Unfortunately, middle managers are often a primary layoff target when times get tough. This reality, however, presents an opportunity for you to meet with senior managers who might be inaccessible during boom times. Forget about "pitching" special programs and offers to senior executives at buying organizations. Rather, listen carefully to them and be sure you really understand their concerns and the challenges impacting their business.
Senior managers are usually eager to hear about what other companies are doing to address tough issues and circumstances. Without divulging anything held by you in confidence, sharing success stories with executives is a powerful way to build your credibility and your business relationships with company leaders. You might, for example, share the experiences of a vendor who used a particular marketing approach to expand their universe of potential customers.
Finally, while it's always important to effectively manage your time and your territory, it's critical to optimize your selling time and guard your company's resources during an economic slowdown. By pursuing only realistic, profitable sales opportunities, you can help ensure the best use of your time and of company resources - both of which are usually strained in a down economy.
Most salespeople are notoriously poor planners, and preparing to sell in a down economy isn't much fun. Keep in mind, however, the words of Sir John Harvey-Jones who offered this observation: "The nicest thing about not planning is that failure comes as a complete surprise, rather than being preceded by a period of worry and depression."
Watch the fortunes of small business. Signals of an economic downturn begin to flash when small businesses cannot obtain the financing they need to operate and grow. It's easy to forget that 90% of American businesses have fewer than 20 employees. As credit markets tighten, and small businesses are unable to secure financing for growth, or for weathering rough waters, it's time to prepare for selling in a down economy.
There are some other unconventional economic indicators I pay attention to when I think about how the economy is doing. Cutbacks in the routes of delivery companies like Federal Express and UPS usually appear as early warning signs of a general slowdown. Federal Express recently advised that it expected reduced revenue in 2008. When Hormel Foods Corporation, the maker of Spam, reports higher sales of the canned luncheon meat, as they indicate they will in 2008, you can bet that folks in large numbers are hunkering down for a recession!
The causes of each economic downturn differ, at least slightly, from previous downturns. The housing industry, which was generally credited with propping up an otherwise wobbly economy for the past several years, now is leading the economy into choppy waters. The large number of interest only, adjustable rate, no money down, no income verification, and no credit-required loans written during the housing boom, and the reality of declining house values, is now a prime cause of the bad moon rising.
How then do you, the sales professional, survive and maybe even prosper when a bad moon rises and you find yourself selling in a down economy? There are at least four things you can do to prepare to sell through an economic downturn:
- Stay in front of your customers.
- Get to the senior executives in buying organizations.
- Share success stories with senior executives that are relevant to their business.
- Manage your time as a guardian of your company's resources.
In tough economic times it's vital that you stay in front of your customers, especially your best customers. One major caveat applies to this advice - only contact your customers when you have something of value to offer them, such as advice, an unusual perspective, or special knowledge. Never, I repeat, never, contact a customer during tough times and ask, "Do you have any orders for me today?" That inane question will drive customers to the nearest exit!
Unfortunately, middle managers are often a primary layoff target when times get tough. This reality, however, presents an opportunity for you to meet with senior managers who might be inaccessible during boom times. Forget about "pitching" special programs and offers to senior executives at buying organizations. Rather, listen carefully to them and be sure you really understand their concerns and the challenges impacting their business.
Senior managers are usually eager to hear about what other companies are doing to address tough issues and circumstances. Without divulging anything held by you in confidence, sharing success stories with executives is a powerful way to build your credibility and your business relationships with company leaders. You might, for example, share the experiences of a vendor who used a particular marketing approach to expand their universe of potential customers.
Finally, while it's always important to effectively manage your time and your territory, it's critical to optimize your selling time and guard your company's resources during an economic slowdown. By pursuing only realistic, profitable sales opportunities, you can help ensure the best use of your time and of company resources - both of which are usually strained in a down economy.
Most salespeople are notoriously poor planners, and preparing to sell in a down economy isn't much fun. Keep in mind, however, the words of Sir John Harvey-Jones who offered this observation: "The nicest thing about not planning is that failure comes as a complete surprise, rather than being preceded by a period of worry and depression."
Tuesday, December 4, 2007
Direct Sales - Why the Bad Rap?
It seems that for the last several years, just mention the words "Direct Sales" and entrepreneurs run the other way. Why is that? Direct sales isn't such a bad thing. In fact, that is what I do and I believe it is a very good thing. Works for me!
Direct sales can be done in such a big variety of ways. You can sell direct to the public, one method I truly love. If your products range in the area of figurines, vases, pictures, fountains, things like that, you can easily sell to all of your local gift shops and florists! Consider what types of products you sell, and market them to the appropriate businesses. When you have great products and believe in your products, they practically sell themselves. You really don't have to be a great salesperson to be successful in direct sales.
Another great method that can be used for direct sales is church and school fundraisers, home parties and festivals. It is extremely easy to make money giving home parties, or even having someone else do them for you! At home parties, you always have a plentiful supply of your products for the guests to be able to see the beauty and quality of your product firsthand. This is a very effective way to make great money, and word of mouth spreads very quickly!
The last method I am going to mention is direct marketing on the internet. This is a little more difficult, but it can be done. It takes a while to get the word out, do enough effective marketing and advertising, and get your site in a favorable spot with the search engines. But with a little time and effort, it can be done. Once you start using all of these methods with your direct sales business, you will see the huge income potential that is there. And, maybe, just maybe, you will see that direct sales isn't such a bad thing after all!
Direct sales can be done in such a big variety of ways. You can sell direct to the public, one method I truly love. If your products range in the area of figurines, vases, pictures, fountains, things like that, you can easily sell to all of your local gift shops and florists! Consider what types of products you sell, and market them to the appropriate businesses. When you have great products and believe in your products, they practically sell themselves. You really don't have to be a great salesperson to be successful in direct sales.
Another great method that can be used for direct sales is church and school fundraisers, home parties and festivals. It is extremely easy to make money giving home parties, or even having someone else do them for you! At home parties, you always have a plentiful supply of your products for the guests to be able to see the beauty and quality of your product firsthand. This is a very effective way to make great money, and word of mouth spreads very quickly!
The last method I am going to mention is direct marketing on the internet. This is a little more difficult, but it can be done. It takes a while to get the word out, do enough effective marketing and advertising, and get your site in a favorable spot with the search engines. But with a little time and effort, it can be done. Once you start using all of these methods with your direct sales business, you will see the huge income potential that is there. And, maybe, just maybe, you will see that direct sales isn't such a bad thing after all!
Where's The Fire?
I remember when that question, "where's the fire?" used to be a sort of humorous reference to someone in a hurry.
Over the past few years I've seen a general slow down in both thinking and action to the point where the aforementioned expression is now outdated as a reference to people in a hurry.
I seldom see the entire business pulling together in a response fitting an emergency situation when sales or profits take a dump. A few managers may explore cost cutting measures but seldom is the business put on full alert.
I think the business community has adopted this sluggish way of addressing crisis from the government. If a serious problem presents itself to the government, the usual first step is to appoint a commission to study the problem. Remember when those used to be called "Blue Ribbon Panels"? Ha. Look at the recent 911 Commission Report. What do you suppose that pile of expensive paper cost the tax payers? Guess what, the Bush administration rejected the findings and took their own course. Congress, the instigator of the report, didn't really like the tome either. Congress hoped for a more "Get out of Iraq Now" proclamation.
Here's my point. Assuming you have qualified people in your organization, when business slows down or margins take a dive, everyone needs to respond as though the place is on fire and that they are trained fire-fighting professionals. If your staff isn't in the mode of cranking out creative suggestions and working hard and fast to turn things around, you need to get them fired up. And if they can't be motivated to move like their job depends on it, cut them.
Over the past few years I've seen a general slow down in both thinking and action to the point where the aforementioned expression is now outdated as a reference to people in a hurry.
I seldom see the entire business pulling together in a response fitting an emergency situation when sales or profits take a dump. A few managers may explore cost cutting measures but seldom is the business put on full alert.
I think the business community has adopted this sluggish way of addressing crisis from the government. If a serious problem presents itself to the government, the usual first step is to appoint a commission to study the problem. Remember when those used to be called "Blue Ribbon Panels"? Ha. Look at the recent 911 Commission Report. What do you suppose that pile of expensive paper cost the tax payers? Guess what, the Bush administration rejected the findings and took their own course. Congress, the instigator of the report, didn't really like the tome either. Congress hoped for a more "Get out of Iraq Now" proclamation.
Here's my point. Assuming you have qualified people in your organization, when business slows down or margins take a dive, everyone needs to respond as though the place is on fire and that they are trained fire-fighting professionals. If your staff isn't in the mode of cranking out creative suggestions and working hard and fast to turn things around, you need to get them fired up. And if they can't be motivated to move like their job depends on it, cut them.
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