Sales Down? It May Not Be Your Salespeople

I often meet with companies that tell me, “Sales aren’t what we want them to be so we want you to train our reps.” While training sales reps is a large part of what I do, I often find that the biggest problem lies somewhere else…with the sales manager.

Part of the problem lies in how we create sales managers.
Typically a sales manager used to be a top producing rep. You’ve paid them all you can pay them, commissioned them through the roof, they’ve won every award, received every accolade and there’s nothing left to do but promote them. The rep is happy because it sounds like a move up but once they sit down behind their new desk they quickly realize that selling and sales management are two very different animals. Most companies invest little, or nothing, in the development of their sales management. BIG mistake.

The “line manager” (the person the reps report to directly on a day-to-day basis) is the lynchpin of your organization.
They’re responsible for the daily supervision of your sales team and for making sure the quotas are met. (And exceeded!) Their workload is great, their day is full. But are they being productive? When sales are down the first place I suggest you look is to the sales manager. Ask yourself, and them, these questions:

1) Are sales meetings regular and productive?
Most sales managers don’t know how to run a sales meeting. Meetings need to start on time, have a specific agenda, include training, end on time and be focused. Ask your reps if they would attend the weekly sales meeting if it was optional. If they wouldn’t, you’ve got a problem.

2) Are pipeline meetings regular and productive?
Few managers run a pipeline meeting well. Pipeline meetings need to focus on whether or not the reps have enough in their pipeline to support their goals, accurate forecasts and strategies to move sales forward to Closed. Do reps leave these meetings armed with advice that will help them be more strategic and close more business? If not, you’ve got a problem.

3) Does the manager do regular field coaching? (or office coaching for inside sales reps)
Managers tend to do as little of this as possible. It’s frustrating to watch reps struggle, knowing you could do a better job but little can help a rep to improve their performance better than a field coaching session. Managers should watch reps sell (and critique their performance afterward) as well as having reps observe them while they sell. Manager not getting into the field enough to coach reps? You’ve got a problem.

4) Does the manager interview new reps regularly (even when there’s not an opening) and know how to conduct a sales interview?
Interviewing salespeople is an art. Salespeople typically do well on interviews because they’re “selling” their favorite product…themselves. Managers tend to ask stupid questions and end up basing a hire on whether or not they like the person as a person. I don’t care whether a potential sales rep is likeable (other than to the extent that sales reps need prospects to like them)...I care that they’re going to be productive. I often consult with managers on how to interview and actually sit in on the interviews. If your sales manager isn’t asking situational questions and clearly explaining the responsibilities of the job, as well as “selling the job” to the rep, you’ve got a problem.

5) Does the manager lead by example?
Sales reps watch everything their manager says and does. Is your sales manager a complainer? Does she turn in paperwork late? Does he moan about the economy? (The company? Other managers? Etc.) Does she arrive late and leave early? Sales people take their cues from their sales manager. If your sales manager isn’t a true leader, you’ve got a problem.

Fixing your sales management isn’t the answer to every sales problem but it’s almost always the first place I look in an underperforming organization. If you can’t get your sales management running on all cylinders it almost doesn’t matter what you do with your sales reps. There are lots of programs that can help sales managers become better at their jobs. An investment in your sales managers is likely to pay off with a large R.O.I.

Take Out the (Head) Trash

Often, as a sales consultant, I’m brought in to help companies that have a sales “problem.” When I meet with the salespeople and encourage them to open up and let me know what’s in the way of them making more money, I find that in many cases they need to take out the trash. The head trash. You, like me, may have heard many times that you’re your own worst enemy. When it comes to selling, that’s often the case. Take a quick look at a few of the possibilities below and if any of them seem too familiar, perhaps you need to take out the trash!

1)The leads stink

I’ve never worked with a company where the leads were great. You can blame the marketing department if you want but it doesn’t matter where the blame lies…if the leads stink, the leads stink. You can bitch about the “Patel leads” (It’s a line from the movie ‘Glengarry Glen Ross,’ not meant as an ethnic slur) all you want but if you depend on leads to get you in front of prospects, and the leads stink, go out and develop some good leads on your own. Don’t depend on your company to supply you with them. No one cares about your paycheck as much as you do.

2)My computer (phone, CRM, etc.) is old technology

Company gave you some technology that’s more than 90 days old? Wahhhhh. Yes, it’s wonderful to have bleeding edge tools to use but if your company hasn’t upgraded in a couple of years you can whine and complain or you can go out and do your job anyway. Technology is there to assist you, not close the business for you. Do more work from home where your Internet connection might be faster and your equipment more up-to-date.

3)My company doesn’t give me the training I need

As a trainer this one breaks my heart (Hey, I’ve got bills to pay too!) but if you’re company isn’t investing in your development, maybe you should invest in yourself. There are books to read, public seminars to attend, private coaches you can hire and much more. The typical salesperson invest exactly zero in their professional development each year. Don’t be typical.

4)The economy is horrible

It isn’t where we want it but it also isn’t where it was last year at this time. Even if it was, what’s the difference? Customers are out there waiting for you. You may have to sift through more of them to find prospects that can afford what you’re selling but they’re out there. There’s not a load of low-hanging fruit but for the salesperson that prospects consistently and understands how to sell, there are still people ready to buy. From you. Now. Go out and make something happen. Or complain. Both are okay by me but it’s easy to figure out which one is going to help you pay your rent his month. I’m not saying there aren’t obstacles to selling…there are. I’m not saying all the obstacles are in your head. They’re not. But some of them are. Take out the head trash and see if it makes a difference in your paycheck. (It will!)

Beating Seasonal Slumps

I hear from a lot of salespeople that it's tough to sell in the summer. Or during "the holidays." Or in early January. Or at tax time. Or...(fill in the blank with your favorite time of year for not being able to sell) Lots of contacts are on vacation, it's hard to get appointments, you can't get people to make decisions. Here's what I have to say about that...BALONEY! Unless you're selling snow shovels in the summer (and I'd even argue that you can sell snow shovels in summer) you should be able to sell all summer long and all winter long. (Spring and Fall too) Here's the problem... (but there's a solution) people DO take more vacations during the summer. And some people do take off the week between Christmas and New Year's. It's harder to reach them. Harder to get appointments with them. It is more difficult to get them to make decisions, especially if they need some else's approval and that person is on vacation. Facts are facts, and you can't fight the facts, but you can be prepared for them. Was your office empty all summer? Probably not, and if your office wasn't empty your prospect's office wasn't empty either. Here's the "trick." (although you're not going to like it) Prospect more than usual in advance of typically slow times. Summer usually slow? Prospect twice as much late spring. Winter slow? Prospect three times as much as usual in late Fall. It might take two or three times as much, during a slow season, to reach the same amount of prospects but by preparing in advance you can still set appointments and close business. The same thing happens for most salespeople when they go on vacation. If you (not YOU...I'm mean the average salesperson) take a one week vacation, and are like most salespeople, the week before the vacation is shot. The week before is spent talking with associates about the great vacation you're going on the following week, taking care of last minute details and shopping, dreaming about where you'll be the next week. Then you go on vacation and, of course, when you're on vacation you should be enjoying yourself. Try not to think about work or think about it as little as possible. But then you get back from vacation and spend the next week talking about the great week you just had, sharing pictures and stories. You start to make calls to set up appointments but, of course, people are busy and can't see you immediately so it takes time to refill your pipeline. The smart rep takes the week before they go on vacation and doubles or triples the amount of prospecting they do so that when they come back from vacation they can hit the ground running. Yes, it stinks but it's a fact of life. Sometimes you need to prospect more than others if you want to keep your income steady. By buying into the mindset that "You can't sell during the summer" (or whatever other time of year you think is slow for you) you doom yourself to substandard income. Don't let it happen to you. Prepare, Prospect, Prosper. As always, please call or write if I can help you. It's always my pleasure. Make It Happen! Jeff

Determine the Right Amount of Activity for You

I often show salespeople and their managers how to determine the "right" amount of daily prospecting activity. For most, it's a real eye-opener! The average sales rep does as much prospecting as they have time for or as much as their manager told them they should do. Both of those are good ideas IF they get you to your goal. For most of us, they don't. That's what the average rep does and that's one of the many things that make them average. Want to be above average and earn an above-average income? (Or, at least, know what it will take to do that?) Then it makes sense to figure out the amount of activity you personally need to do each day, based on your own metrics, so that you can actually achieve and exceed your goal, rather than hope that you make it. Hope, as has been so aptly said in the past, is not a great strategy.

In order to determine the correct amount of activity the first thing you'll need to do is to track your numbers over time. I recommend a minimum of 30 days, and it will probably be 60 days before you can get metrics you can rely on but it's well worth the minimal investment in time and effort it will take to track your activity. You'll need to know the:

1) Number of distinct Dials you make (Calling the same person 15 times does not count as 15 dials)

2) Number of DMCs you make (Decision Maker Contacts - each time you speak with a decision-maker. Leaving a message and speaking with an assistant do not count as a DMC)

3) Number of Appointments you set

4) Number of Sales Visits you go on (This can be different from the # of appointments you set - sometimes people aren't there for the appt. or can't see you when you get there)

5) Number of Sales you close

6) Average Dollar volume per sale (Total $ volume of all sales divided by total # of sales)

You can only discover the above numbers for yourself by tracking them over time but you can easily set up a manual system that allows you to keep track on a daily basis. At the end of each prospecting period simply transfer your metrics to an Excel spreadsheet. By putting in a formula at the bottom of each column you'll have a running total for each of the above (Dials, DMCs, Appointments, Sales Visits, Sales) and over time your real metrics or ratios will become evident.

Once you've got your baseline numbers it's fairly easy to figure out the "right" amount of activity for you.

Here's an example:

Goal - Earn $100,000.00 in commission

Average dollar volume per sale = $800

$100,000 divided by $800 = 125

You need 125 sales for the year to reach your goal of earning $100,000 in commission. 50 week year (2 weeks off for vacation) = you need to close 2.5 sales per week.

Assume a closing ratio of 1:7* (you close 1 sale for every 7 first appointments)

*Of course you'll want to use your own numbers and any change in any of the numbers from this example changes the results. Get better at closing? You'll need fewer appointments to make the same money. Raise the average dollar volume per sale? You'll need to close fewer deals. Or you can continue on with your current activity levels and make more money to blow away your quota and reach your real goals!

2.5 (sales per week) x 7 (number of first appointments needed to close one sale based on your 1:7 closing ratio) = 17.5 first appointments needed each week

Assume a DMC to Appointment ratio of 3:1 (every 3 conversations with decision makers results in 1 appointment)

17.5 (# of first appts. needed per week) x 3 (number of decision makers needed to speak with to set 1 appt) - 52.5 conversations with decision makers over the phone to set 17.5 appointments

Assume a Dials to DMC ratio of 4:1 (Every 4 dials results in 1 conversation with a decision maker)

52.5 (# of conversations needed each week with decision makers over the phone to set appointments) x 4 (# of dials needed to have 1 conversation with a decision maker to set an appt.) = 210 dials

210 (# of dials per week) divided by 5 (# of days in a week) = 42

42 dials per day gets you 52.5 conversations with decision makers which results in 17.5 appointments per week which results in 2.5 sales per week which results in $2000 in commission per week which results in $100,000 in commission for the year.

Once you figure out that last number (42) life becomes simple...simply make certain, that no matter what else happens, each day you'll dial the phone 42 times to people who might set appointments with you.

You'll need to track your activity levels over time in order for you to figure this out for yourself but once you do, you're golden!! Sales is tough enough...make your life easier by figuring out exactly what you need to reach your financial goals...then do it.

As always, please call or write if I can help you. It's always my pleasure.

Make It Happen!

Jeff

Conversational Selling

If the key to selling is asking the right questions, and plenty of them, then the key to being a better question-asker is to make it more conversational. Nobody likes to be interrogated. It brings pictures to mind of movies where detectives have hot, blinding lights shining directly in the face of their prisoner as they hammer the prisoner with question after question. The prisoner has a sweat-covered face and a wild look in their eyes. Not a pretty picture and certainly not the way to gather useful information from your prospects. The fact is, if you ask the right questions then SHUT UP AND LISTEN, your prospects will tell you everything you need to know in order to help them get involved with your product or service. (Sell them)

I use, and teach, a very simple method for turning what could easily be seen as an interrogation into a conversation, and it's by using what I call "softeners." A softener is a word or phrase that comes before your question, and softens it. I'm just curious, would you like an example? Hey, I just used a softener! In the preceding sentence, "I'm just curious," softens the question, "Would you like an example?" (No, we didn't need a softener...I wanted to use one as an example)

"I'm just curious," "By the way," and "Out of curiosity," are all examples of softeners that I use constantly. These aren't the only softeners; they're just the ones I like to use most often. I'm sure you can come up with more!

You'll also want to be sure you're prepared to ask questions when you go on a sales call. Once you're sitting across from your prospect it's too late to prepare. You're already "on stage" and need to be completely focused on your interaction. Before you go on a sales call you should stop and ask yourself, "What information do I need to gather today in order to consider this a successful meeting?" "What questions will I need to ask in order to get that information?" Amateurs "wing it" but professionals plan in advance. You should also plan for how you're going to move the sales process forward, if appropriate, by having a Best Next Action Step in mind. The way you can judge how interested a prospect is in doing business with you is by asking for a BNAS at the end of your meeting. In fact, that's the best way to shorten your sales cycle...by never leaving a meeting or phone call without arranging the next meeting or phone call (Best Next Action Step) right then and there. If a prospect gives you some of their valuable time, and agrees to give you some more of their valuable time (by agreeing to another meeting or call) they're letting you know they're interested in continuing the conversation and possibly doing business.

Keeping it conversational and always getting a Best Next Action Step...two great ways to make selling easier and more profitable.

Amazingly Affordable Sales Coaching with Jeff!

High performers have a coach, sometimes multiple coaches. Many of you have asked me for personalized sales coaching over the years but, because of my corporate training schedule, the hourly rate has been unaffordable for most. In this still very challenging economy I've been searching for a way to help as many people as possible get more appointments with decisions-makers, shorten their sales cycle and close more business, more profitably. I've finally come up with an answer that will give you the assistance you can use to propel your sales career forward in 2011 at a rate that is amazingly affordable!

Starting on Wednesday, February 2nd, at 8:00 p.m (Eastern Standard Time) we'll begin a series of weekly, one-hour conference calls that will address the exact sales issues and challenges you currently face in order to make 2011 an outstanding year for you financially.

Here's how it works: For just $10 (USD) per week (Investment is paid monthly) you'll be on a conference call with me. Prior to each call you'll receive a reminder to email me a question or situation you're currently dealing with. (For example - "Jeff, I met with a prospect this week and they are a perfect fit for what we offer but she told me to check back next quarter. Really, our offering is exactly what they need. How do I get the deal NOW?") Each person on the call must email me at least one question per week. (That's right, you have to do some work! Just like when you go to the gym...you don't get fit by paying the annual fee...you have to work out) During the hour I'll answer an many questions as we have time for with "real-world" advice.

The beauty of this method is that even if your particular question doesn't get answered during any one phone call, you can bet that you've either experienced, or will experience, what did get discussed on the call. The result? You'll be better equipped with the tips, tools, techniques and specific advice you need to close more business and make more money!

There's no contract! We'll do one, one-hour call per week and before the beginning of the next 30 day period you'll get an email reminder to renew. If you choose not to participate there's nothing to do. Your credit card or PayPal account won't be charged unless you take action and renew for the following 30 days. If you're getting at least $10 worth of value per week and decide to continue you'll renew. If not, you're always free to rejoin us in the future but the choice is yours.

There will be a limit on the number of participants so if you're interested, invest in yourself. Cut and paste this address into your browser to go to the registration page in order to register now and join us on the kick-off call on Wednesday, February 2nd! http://stores.be-your-own-coach.com/-strse-4/Telephone-Sales-Coaching-with/Detail.bok

Questions? Call me at 516-608-4136 or email me at jeff@jgsalespro.com

I'm excited about the prospects for 2011 and working with you to help make this your best sales year ever!!

Make It Happen,



Jeff

Insatiably Curious

I’ve been giving a lot of thought lately to what makes the best salespeople good at what they do. Here are a few of the characteristics that almost all great salespeople seem to have and some thoughts on how you can develop them if you don’t. Don’t sweat it if you don’t have them all!

1) Insatiable Curiosity (Thanks, and a tip of the hat to Bruce Zutler of MCI Products Group – I mentioned curious and he threw in the “insatiable!”)

The most important part of the sales process is the questioning phase so you either have to be curious or act like you are. The more you know about your client’s world the more likely it is that you’ll be able to help them. If you don’t find out who they are and what they need it’s unlikely you’ll sell them anything. Great salespeople are genuinely and insatiably curious about everything having to do with their prospects. They ask lots of questions, over time, about their personal lives, (to establish rapport) their business, how they do what they do, what they want to accomplish and lots more areas that help them to develop a relationship and uncover what makes sense to the prospect.

Practice being more curious. Ask friends and associates lots of “why” questions. Try to get enough information to figure out what “makes them tick.” If you can do it with friends and associates, you can do it with prospects and customers.

2) Strong Sense of Self-Worth (ego)

The truth is that is almost every company and industry we hear the word “No” more often than the word “Yes.” In order to be able to handle this rejection great salespeople have a thick skin. I’ve often heard it suggested that we shouldn’t take rejection personally as they’re rejecting our product or service, not us. I disagree. People buy relationship and value. When they say “no” to us it means we either didn’t establish and strong enough bond or we failed to help the prospect see the value in what we have to offer. When they say “no” they are rejecting us but good salespeople are able to shake it off and say, “Well, I didn’t get that one but I know that it takes me 3 “No’s” to get one “Yes” so I just need to more and I’ll be in “sale city!”

Know your personal numbers. Review “wins” to discover what went right and remember these things. Review “losses” to figure out how you might have done things differently to try to reduce losses in the future. Remember that no one closes every deal that you only need to hit one of three pitches in the major leagues to be a hall of famer!

3) Strong Verbal Skills (Written too)

Sales is a communication game. The better we’re able to communicate with our prospects the more likely we are to close the deal. Great salespeople are well-spoken and well-written. They pay attention to things like grammar and punctuation in all written communications. It says you’re either lazy or ignorant if you don’t take the time to make sure even your quick emails to a client or prospect are free from spelling and grammar errors. The great salespeople are good storytellers and make sure to include verbal proof stories in their presentations. They know how to verbalize the benefits of what they have to offer and they always tie features to benefits. They understand that from the client’s viewpoint, it’s all about the W.I.I.F.M. and they make sure the client can see it.

If your communication skills need improvement take a course at a local college, join Toastmasters, attend seminars to learn to communicate more effectively. Double check and, if possible, have someone else check your written communications (especially proposals) before sending.

4) Consistent Business Development

The best salespeople know that the pipeline can dry up pretty quickly and are constantly adding new leads to their database and new prospects to their pipeline. It’s part of a salesperson’s daily grind.

There’s no way around it. Schedule time, each day, on your calendar to do business development. If it’s on your calendar it’s far more likely that you’ll do it then if you don’t plan for prospecting.

5) Great Time Management

The best salespeople respect their prospects time but they respect their own too. Time is a limited resource but most salespeople act like they’ve got plenty of it. Great (smart) salespeople protect their own time like a mother lion protects her cubs. They don’t waste time with prospects that aren’t buying and only invest their time where and when it makes sense. They actively monitor their pipeline to make sure they’re working with enough prospects at all times and only work with prospects that will give them a next action step.

Track where your time goes for three days. If you’re like most of us you’ll find that you invest a lot of time in activities that don’t pay off at all or pay off slightly. Focus your time and energy on activities that pay off. PROTECT your time.

6) Constant Improvement

The best are always looking to improve. They read books, blogs and newsletters, watch DVDs, listen to CDs and attend seminars. No one knows it all and there’s always something we can learn in order to help us do our jobs better.

What do you think makes great salespeople great? Write to jeff@jgsalespro.com and let me know what I left out.

As always, get in touch if there’s anything I can do to help you and be sure to

Make It Happen!

Jeff