Tuesday, September 20, 2011
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
Tuesday, August 2, 2011
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
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
Friday, February 11, 2011
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.
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.
Wednesday, January 19, 2011
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
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
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