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.
Thursday, December 13, 2007
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.
Tuesday, November 27, 2007
Some Simple Strategies to Increase Sales for Women in Business
Are you a woman in business seeking some simple strategies to increase your business sales? Then maybe it is time to revisit the 3Rs Performance Model.
No I am not speaking about the 3Rs from your early childhood education of reading, 'riting or 'rithmetic, but the 3Rs for business: Relationships, Referrals and Revenue.
Business exists to make revenue - the third R. This R is the direct result of business referrals (second R) given that 80% of all new business comes from referrals. Businesses secure referrals from relationships (first R).
To increase business sales demands that you track all of your relationships that have been generated through your marketing activities. From those marketing activities you realize sales that lead to productivity or profitability.
For example, if you know that you attend one business networking event (marketing activity), you will secure 5 leads of which you build 3 relationships. Those 3 relationships lead to 2 sales that deliver 20% gross profits.
Another way to measure business results is through how many calls you make that deliver X percentage of appointments. Those appointments give you X% of presentation appointments from which you receive X sales. In real numbers, the progression might look like this:
100 calls = 50 first appointments = 25 presentation appointments = 10 sales.
If you want to increase business sales, then you need to make 200 calls to double the current sales results. However increasing sales is only one part of the equation. An increase in sales may result in a decrease in profitability because you may be generating more costs to deliver more sales.
By returning to your strategic plan, you can map a course so that when you take action to increase activity, your costs will stay within the acceptable parameters. And if you really have taken the time to plan your strategy, you may even be able to reduce some costs and increase profitability.
No I am not speaking about the 3Rs from your early childhood education of reading, 'riting or 'rithmetic, but the 3Rs for business: Relationships, Referrals and Revenue.
Business exists to make revenue - the third R. This R is the direct result of business referrals (second R) given that 80% of all new business comes from referrals. Businesses secure referrals from relationships (first R).
To increase business sales demands that you track all of your relationships that have been generated through your marketing activities. From those marketing activities you realize sales that lead to productivity or profitability.
For example, if you know that you attend one business networking event (marketing activity), you will secure 5 leads of which you build 3 relationships. Those 3 relationships lead to 2 sales that deliver 20% gross profits.
Another way to measure business results is through how many calls you make that deliver X percentage of appointments. Those appointments give you X% of presentation appointments from which you receive X sales. In real numbers, the progression might look like this:
100 calls = 50 first appointments = 25 presentation appointments = 10 sales.
If you want to increase business sales, then you need to make 200 calls to double the current sales results. However increasing sales is only one part of the equation. An increase in sales may result in a decrease in profitability because you may be generating more costs to deliver more sales.
By returning to your strategic plan, you can map a course so that when you take action to increase activity, your costs will stay within the acceptable parameters. And if you really have taken the time to plan your strategy, you may even be able to reduce some costs and increase profitability.
Successful Women In Business Know What Marketing Strategies Work to Increase Sales
How will you get your message out to prospects as well as current clients so that you have Top of Mind Awareness (TOMA) is a big concern for any woman in business. Given that most women in business have limited marketing budgets, each dollar must deliver as much bang for the buck and truly hit the target.
First, the most effective marketing strategy is Word of Mouth (WOM). This strategy creates a buzz because people are sharing their positive experience with other individuals. And who is someone more likely to trust, a friend or a Madison Avenue type?
Contrary to many women in business, another effective marketing strategy is direct mail. If you have a targeted list based upon your strategic plan, you may realize anywhere from a 25% to 75% response rate to your direct mail campaign. There are different types of direct mail from the oversize color postcards to a series of articles that have value for the recipient.
One of the most overlooked marketing strategies is to simply just ask for a referral. Research suggests that 80% of all new business comes from referral. Many business owners fail to ask existing clients or disqualified prospects for a referral. Again, people listen to those that they trust rather than complete strangers.
Other effective marketing strategies include:
* Blending the Internet through auto responders
* Personal phone calls
* Lumpy mail (mail that has something in it)
* Internet article writing
* Writing a book
* Speaking at national, state and regional events
Given that people need to be touched over 30 times for them to have TOMA regarding your business, your marketing plan should have several marketing strategies and then tactics (actions) to execute those strategies.
Remember, if you have an effective marketing strategy, then continue to execute that strategy. Do not stop doing something that is working. This is a mistake made by many women in business because they listen to someone else or try something new.
Effective marketing strategies should delivery a high number of leads and turn those leads into actual converted sales. You, as the woman business owner or woman executive, must take the time to determine what marketing strategies are delivering the most conversions and at the lowest cost. By taking this action, will eliminate this issue to allow you to focus on those other issues keeping you from your goal to increase sales.
First, the most effective marketing strategy is Word of Mouth (WOM). This strategy creates a buzz because people are sharing their positive experience with other individuals. And who is someone more likely to trust, a friend or a Madison Avenue type?
Contrary to many women in business, another effective marketing strategy is direct mail. If you have a targeted list based upon your strategic plan, you may realize anywhere from a 25% to 75% response rate to your direct mail campaign. There are different types of direct mail from the oversize color postcards to a series of articles that have value for the recipient.
One of the most overlooked marketing strategies is to simply just ask for a referral. Research suggests that 80% of all new business comes from referral. Many business owners fail to ask existing clients or disqualified prospects for a referral. Again, people listen to those that they trust rather than complete strangers.
Other effective marketing strategies include:
* Blending the Internet through auto responders
* Personal phone calls
* Lumpy mail (mail that has something in it)
* Internet article writing
* Writing a book
* Speaking at national, state and regional events
Given that people need to be touched over 30 times for them to have TOMA regarding your business, your marketing plan should have several marketing strategies and then tactics (actions) to execute those strategies.
Remember, if you have an effective marketing strategy, then continue to execute that strategy. Do not stop doing something that is working. This is a mistake made by many women in business because they listen to someone else or try something new.
Effective marketing strategies should delivery a high number of leads and turn those leads into actual converted sales. You, as the woman business owner or woman executive, must take the time to determine what marketing strategies are delivering the most conversions and at the lowest cost. By taking this action, will eliminate this issue to allow you to focus on those other issues keeping you from your goal to increase sales.
Monday, November 26, 2007
Lead Management - A Focus Above the Funnel - Part II
One of the sad truths of sales is the activities involved in being successful above the funnel; Lead Generation and Prospecting are more "blue collar" in nature than the rest of the Revenue process Sales, which traditionally has been more "white collar" in nature. Many sales reps fancy themselves white collar professions and therefore do not take to lead generation and prospecting. They fail to acknowledge that there is heavy lifting, plenty of hard work, in this contact sport called Prospecting.
Having implemented a Touch > Contact > Engage, approach to managing your leads, you need to have a replenishment plan. The fact you are recycling leads, ensuring that you benefit from the fact that today's dud is tomorrow's cash cow, understanding that more is not best, just a start, you still need a means of brining new leads in to you base.
As with many things above the funnel, there are few secrets, the real deal is in implementing, and staying consistent; the things you'll read below all will work if you put them in to practice, and do so in a consistent ongoing way.
In no particular order, and with the understanding that many verticals have other unique sources for leads, here are a few everyone could use immediately:
• Referrals
• Dependent Referrals
• Networking
• Directories
• Cold Calling
• Referrals - Everyone talks about them, very few actually do it, or do it right. I find it very interesting, at every workshop I ask how many people have success with referrals, and in a group of 15 or 18 people two people will put up their hand; I then ask how many actually ask for referrals, and the same two people raise their hands. Everyone has worked referrals, but very few actively generate referrals. The one that do seem to restrict it to people they "have a relationship with"; when asked why they don't include prospects, or leads in pursuing referrals, they rarely have anything to offer other than that they "don't yet have a relationship". There have been numerous quality books written on referrals, we recommended one in The Pipeline's Recommended Reading section. The key is you can get referrals from a lot more people you deal with in business, from prospects, clients, vendors, tradesmen, even other leads. It is never too early to ask for referrals, you may not get one right away, but people will know you are ready for them.
• Direct Authority Referrals - One source of referrals need to be segmented from the others, and needs to be more consistently pursued and harvested, we call these Direct Authority Referrals. These are people who have relationships with people who could use your service or product, and are in a position to have to more than strongly influence matters as a result of being an authority figure. Often as a result, they are privy to information that you can benefit from, and where their recommendation or referral will fast track the process of moving a Lead to a Prospect, and hasten the sale in general. These could be lawyers, accountants, business advisors, bankers. Within given markets there could very specific relationships where one party is in a position to help the referral take on real teeth.
For example, there is a natural synergy between what I do and Sales Compensation consultants. They are interacting with people who can use our services, and can often be perceived as "an authority" by these people. Not only can we add value to their relationships by ensuring that the client fully benefits from their service we are able to accelerate the cycle for both our companies and increase the benefit for the client.
Regardless of the nature of the referral, you can take the initiative in ensuring a healthy relationship, send referrals their way, if you can, before you even receive one from them, this is a small investment, but one that pays long dividends.
• Networking - It's on everyone's to-do, not all ways done effectively. There are all kinds of books and articles written on networking, everything from etiquette to finding different networks. Our focus here is to get you thinking about where prospecting fits in to your lead management strategy and program. Not all networks a suitable for every type of sale, but there are always a number that will provide you a steady stream of leads. Since networking is part of the over all strategy make sure you don't over do it, but do it right. When you attend an event remember you are there to network not socialize. Have targets to measure against and adjust them and you networking based on clear objectives and results.
Having implemented a Touch > Contact > Engage, approach to managing your leads, you need to have a replenishment plan. The fact you are recycling leads, ensuring that you benefit from the fact that today's dud is tomorrow's cash cow, understanding that more is not best, just a start, you still need a means of brining new leads in to you base.
As with many things above the funnel, there are few secrets, the real deal is in implementing, and staying consistent; the things you'll read below all will work if you put them in to practice, and do so in a consistent ongoing way.
In no particular order, and with the understanding that many verticals have other unique sources for leads, here are a few everyone could use immediately:
• Referrals
• Dependent Referrals
• Networking
• Directories
• Cold Calling
• Referrals - Everyone talks about them, very few actually do it, or do it right. I find it very interesting, at every workshop I ask how many people have success with referrals, and in a group of 15 or 18 people two people will put up their hand; I then ask how many actually ask for referrals, and the same two people raise their hands. Everyone has worked referrals, but very few actively generate referrals. The one that do seem to restrict it to people they "have a relationship with"; when asked why they don't include prospects, or leads in pursuing referrals, they rarely have anything to offer other than that they "don't yet have a relationship". There have been numerous quality books written on referrals, we recommended one in The Pipeline's Recommended Reading section. The key is you can get referrals from a lot more people you deal with in business, from prospects, clients, vendors, tradesmen, even other leads. It is never too early to ask for referrals, you may not get one right away, but people will know you are ready for them.
• Direct Authority Referrals - One source of referrals need to be segmented from the others, and needs to be more consistently pursued and harvested, we call these Direct Authority Referrals. These are people who have relationships with people who could use your service or product, and are in a position to have to more than strongly influence matters as a result of being an authority figure. Often as a result, they are privy to information that you can benefit from, and where their recommendation or referral will fast track the process of moving a Lead to a Prospect, and hasten the sale in general. These could be lawyers, accountants, business advisors, bankers. Within given markets there could very specific relationships where one party is in a position to help the referral take on real teeth.
For example, there is a natural synergy between what I do and Sales Compensation consultants. They are interacting with people who can use our services, and can often be perceived as "an authority" by these people. Not only can we add value to their relationships by ensuring that the client fully benefits from their service we are able to accelerate the cycle for both our companies and increase the benefit for the client.
Regardless of the nature of the referral, you can take the initiative in ensuring a healthy relationship, send referrals their way, if you can, before you even receive one from them, this is a small investment, but one that pays long dividends.
• Networking - It's on everyone's to-do, not all ways done effectively. There are all kinds of books and articles written on networking, everything from etiquette to finding different networks. Our focus here is to get you thinking about where prospecting fits in to your lead management strategy and program. Not all networks a suitable for every type of sale, but there are always a number that will provide you a steady stream of leads. Since networking is part of the over all strategy make sure you don't over do it, but do it right. When you attend an event remember you are there to network not socialize. Have targets to measure against and adjust them and you networking based on clear objectives and results.
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