Saturday, 26 May 2012

Developing Your Team



Sales REP Or Sales PRO?

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Sales Leadership - Developing Your Team
Written by Steve Young   

Sales professionals are among business owners’ greatest assets.  These talented and tenacious individuals advance the frontline of a business in the marketplace.  Their work is vital to the success of the businesses they serve.  Unfortunately, these individuals are becoming increasingly difficult to find.  The sales occupation continues to change from the influx of sales representatives into the workforce.
 
In recent years, the sales occupation has sustained a different kind of salesperson, which I refer to as the sales representative. While there are several types of salespeople, there are but two fundamental classifications of salesperson—the sales professional and the sales representative.  The difference between these groups is important for business owners and sales managers to understand, especially if they are interested in growing a business by acquiring new accounts. 

Most business owners and sales managers cannot distinguish a sales rep from a sales pro.  Unlike other professions such as accounting, the profession of sales is not formalized; there is no required certification process, and therefore, no criteria defining the differences between the levels of proficiency existing among those in the profession.  While these two groups—reps and pros—perform many of the same functions, the differences between them account for many of the problems business owners have in growing their businesses.

Drawing the Line

The difference between sales reps and sales pros can be expressed in terms of a degree of quality.  Sales reps will present your products and services to prospective customers, identity, qualify, and follow-up on sales opportunities.  They will create presentations, schedule sales meetings, and, in the process, occasionally receive a sale.  The sales of the representative are incidental to their work, which is more mindless (as of a routine) than it is mindful (as if engaged in to ensure the fulfillment of an objective).   By contrast, the sales of the professional are orchestrated results of his/her work, which is thoughtfully pursued with the intent of achieving a specific result. 

Vision, preparedness, investment, and skill provide categories for good examples that can more clearly highlight the differences between sales reps and sales pros. 

Pro or RepVision

There are several main objectives in most sales sequences, including finding and qualifying prospective clients, scheduling appointments with prospective clients, profiling and identifying leveraging points, clarifying urgency to buy, and obtaining next-step commitments with a prospect.  As selling becomes complex, additional steps are required in order to achieve a sale.  Identifying and having a vision of the often arcane, prospect-specific steps can challenge a salesperson.  And an initial vision must often adapt in order to accommodate new steps as they arise in the pursuit of sales.  

Sales reps lack vision.  They give little or no thought to modifying general sales procedures.  Sales reps are not concerned with maximizing the effectiveness of their endeavors.  Sales professionals consistently strive to gain insight and advantages into sales situations and opportunities to ensure the success of their mission to convert potential sales into actualized sales.  

Sales reps can develop their vision and improve their sales by thinking more deeply, questioning, not settling with their assumptions, and reasoning the “why,” “how,” and “what” beyond the ostensible.  This thinking process accounts for the main difference between many sales successes and failures.

Preparedness

The basics of preparedness for most sales pursuits are: (1) having a breadth and depth of knowledge about the prospect and the sales opportunities the prospect represents; (2) strong leveraging points; (3) anticipation of a prospect’s responses to your presentation, and consideration of any peripheral issues that could impact achieving the sale; (4) a step-by-step vision for securing the sale; (5) a fallback approach for reengaging a waning prospect.  Sales professionals are prepared to engage and nurture sales opportunities.  Sales representatives mindlessly go through the motions of call, meet, and follow-up without sufficient preparation.  Sales is a numbers game for the sales representative who hopes that eventually something will come from “all of my work.” 

Preparing a salesperson to engage in a sales pursuit requires an investment of time and materials from the business owner.  If the business owner or sales manager isn’t supporting her/his salespeople in the activities essential for selling in today’s world, both the business and the rep will typically lose in competitive selling situations involving competition that is better prepared.

Sales representatives can improve their preparedness by asking and answering for themselves questions such as:

1.    What data might help me engage and intrigue my prospect?
2.    What is the main objective of my meeting with this prospect?
3.    What possible issues might be influencing my prospect’s buying decision?
4.    How can I create desire for my product in my prospect?
5.    What questions might my prospect ask me and how will I answer?
6.    What hurdles can I anticipate between where the sale is now and finalizing the sale?
7.    How will my presentation help my prospect understand the value I offer?

Investment

A sales rep rarely considers what his/her sales pursuits cost her/his employer.  Profitability is not a consideration for the rep.  Sales reps see a sale simply as a sale, and their effort in any sales work as equally valuable.  Sales professionals are more valuable to employers and will consistently outperform sales reps by simply knowing where and how to invest their skills.  Professionals know which prospects to pursue, when and why a sales pursuit should be abandoned, how to negotiate and achieve profitable transactions, and strive to improve their skills in order to maximize profits from their endeavors. 

Sales representatives can improve their value as salespeople by periodically questioning themselves:

1.    Am I on-track for reaching my goals, and, if not, how will I change that status?
2.    What overall value does this sales pursuit represent to me and my employer?
3.    What priority should I give this pursuit in helping achieve my goals?
4.    How does the work I’m doing right now rank in helping achieve my goals?
5.    What can I do in order to increase my productivity and ensure reaching my goal?

Skills

Salespeople must develop a multitude of skills in order to consistently bring sales opportunities to fruition.  Sales reps often neglect developing their skills.  Sales representatives and sales professionals, therefore, vary to the extent that they diverge in possessing the skills required to sell most effectively. 

Consider the components of most sales work and their respective demands:

Conducting - Requires resourcefulness and creativity
Qualifying - Requires logic, and breath and depth of specific (industry) knowledge
Setting appointments - Requires technique proficiency, discernment, and assertiveness
Presenting - Requires stragegy formation, positioning, and presentation skills
Nuturing business - Requires patience, resourcefulness, persistence, creativity, and subtlety

Selling professionally requires a multitude of skills working synergistically.  Those who possess and refine such skills become top performers.  Most people employed in sales, however, do not improve their skills, and thus, remain ill equipped to succeed consistently. 

When striving to improve the sales of your company, understand which skills are required to meet your specific challenges.  Consider your sales methodology.  Understand the rationale behind what you are practicing, and require the same exercise from your salespeople. 

The greatest sales skill that you can develop is the depth of your thinking.  Sales professionals are deep thinkers about sales situations and, therefore, are more capable of figuring out how to effectively manage those situations in order to achieve success.  Convert your sales reps into sales professionals with process-based sales training, performance standards, and appropriate support, and then enjoy greater sales success.


Copyright © 2010 ESM4, Inc. All rights reserved.

 

When Sales Training Isn’t Working

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Sales Leadership - Developing Your Team
Written by Kendra Lee   

Nothing is more frustrating than investing the time to identify the need, design, develop, and deliver great sales training and then discover that sellers aren’t implementing what they learned when they get back to the field.

Whether you’re delivering product or soft skills training, participant time away from the job is expensive and your organization has a right to expect to see a sizeable return on their investment.

Executives and sales managers often lament that while they can quickly tell us how much they’ve spent on training their sellers in a given quarter or year, pointing to actual behavior changes and sales increases is not always as easy. Increase the value of your training by changing the way you think and plan for sustainable implementation.

Design and Develop:  Confirm with your stakeholder, the business value and observable behaviors the organization is expecting at the end of the training, then 3 and 6 months later. Are they looking for an increase in new client opportunities in the pipeline, reduced sales cycles, or more up-selling?

As training is designed and developed, use learning objectives and module goals as beacons to create the training content. Conceptualize and then validate exactly what it is you and the stakeholder expect from participants at defined milestones. Use those measurable behaviors as a yardstick. Hold the developing content and activities up against it to ensure their value.

Sales trainingDeliver: Tell sellers early exactly what’s expected of them by the end of the training. Show them the WIIFM, what’s in it for them, and how the improvement in their skills will directly impact their sales results, goal attainment, and pocket-book. Finally, tell them how their skills will be observed and measured by their manager.

Today’s adult learners are sophisticated, constantly seeking short cuts to get results quicker. We’ve found that compulsory learning paths don’t always work, especially with sellers. Learners will implement only those skills and tools that make them more productive, faster. We’re amazed at the success achieved when we involve learners as much as possible in the interpretation and application of the content. They feel a sense of ownership and want to try new techniques. Be flexible in your delivery even if it means diverging from the path you’ve defined. Let them share their own experiences and hardships and apply them to the techniques you’re training.

Use the measurable sales behaviors as the goal you’re all striving for. For example, if you’re focused on moving a solution sales force to a consultative approach, measure behaviors like executive meetings and quarterly business reviews.

Evaluation: Involve the managers and team leads who’ll be supporting and helping implement the desired sales behavior changes throughout the design, development and delivery process. They’re busy people who’re often challenged when told it ‘s their responsibility to “coach” their teams. Managers that we repeatedly work with expect us to interview them early in the training process to clearly understand their team’s current – and desired behaviors. With a clear picture of how the sales training is designed to help reach the measurable business goals, they buy-in early and support participation from pre-class prep work, through delivery, and into implementation. 

A component of our classes that managers now look for and appreciate is a checklist of content covered paired with expected, observable sales behavior, and desired business results. As managers discover what behaviors to look for and have available resources from the class content and activities, they’re ready to “coach” at every possible opportunity from listening in on a sales call to participating in an on-site demonstration or assisting in negotiating the final contracts.

Waiting until after sales training has been delivered to consider how it will be implemented and who’ll be responsible for supporting it doesn’t work. Insert the implementation conversation earlier in the instruction design process and watch how quickly sales behaviors change.

 

The Hidden Path to Sales Success

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Sales Leadership - Developing Your Team
Written by Dave Kahle   

In my twenty plus years of educating sales people, I have encountered tens of thousands of sales people, and worked with literally hundreds of sales organizations. The vast majority of them want to do better.  They want the benefits of greater success:  Increased income, greater respect from their peers and managers, and increased self-confidence.

Yet, the vast majority of them remain at a level best described as “ordinary.”  They never make the transition to being a true master of their craft. In spite of their desire to excel, few do. 

The reason, for the overwhelming majority of sales people, is that they take the wrong path to sales success.  Only a few discover the hidden path to sales success.

Let me illustrate. I have had these kinds of conversations in almost every training session that I have done:  A sales person is concerned about an issue in one of his accounts.  It could be that he can’t unseat the competition, or that he’s at risk of losing the business, or that he can’t gain an audience with the right people, or that he’s constantly asked to reduce his price, etc.  The list is without limit.  There are as many variations on the theme as there are sales people.

But, while the specifics vary, they almost always revolve around the same themes.  There is a problem in an account.  Someone won’t do what the sales person wants them to do.  The question, in one form or another, is always, “How do I get them to do what I want them to do?”  The focus is always on the account, the other people, the things outside of the sales person that he/she wants to influence. 

Hidden pathI don’t think I have ever had a sales person ask me in these encounters, “How can I change myself in such a way as to impact this situation? ” And therein lies the problem.

As sales people, we almost exclusively focus on those things that exist outside of ourselves – the prospects, the customers, the politics, the products, the price, etc.  We focus on the externals.  And as long as we do that, we will be forever stymied in our desire to become exceptional performers. 

We will never reach our potential until we begin to focus inside – on changing and improving ourselves.  The hidden path to sales success is the “path less traveled,” the path that traverses the bumpy geography of self-growth and self-improvement – the inward path.

When we focus on self-growth and self-improvement, those changes that we make in ourselves naturally ooze out of us and impact the people and the world around us.  If we want to improve our results, we need to improve ourselves.

Here’s an example.  A sales person recently shared this scenario.  He has been trying to penetrate an account in which he had some business, but was a minor player.  One or two other competitors dominated the account.  He had difficulty even getting an opportunity to present his solutions.  He saw his problem as external – the politics, processes and personalities in this account.

I talked with him about his ability to nurture professional business relationships, to uncover hidden concerns and obstacles via effective questioning, to empathize with the key decision makers.  In other words, my conversation was about his competencies (internal) instead of the account’s specifics (externals).  If he could improve himself to the point where he was more competent at these sales fundamentals, he would be more effective in that account, and the problems he expressed would gradually decrease.

He saw the problem as existing outside of himself (external).  I saw the solution coming as a result of improving himself (internal).

As I reflect on the thousands of these kinds of conversations that I have had with sales people and sales leaders, I have concluded that the conversations almost always follow that pattern.  They present an external problem, and I reply with an internal solution.

The obvious question pops to the surface.  Kahle, is it you?  Am I so far outside of the mainstream of reality that I am misleading the people I’m supposed to be helping?

Honestly, I don’t think so.  The concept of reaching your fullest potential, of making your greatest mark on this world, by focusing internally instead of externally is a position that all of the world’s greatest thinkers, from King Solomon  thousands of years ago, to Mahatma Gandhi in more modern times, have espoused.  That concept lies at the heart of the world’s greatest religions, a key part of the world view of Jesus Christ and Buddha, for example. I’ll often share this quote from James Allen in my seminars:

“Men are often interested in improving their circumstance, but are unwilling to improve themselves, they therefore remain bound.”

Clearly, unequivocally, the path to achievement and fulfillment is an internal, not an external one.  What is true for our lives is true for our professions, and is true for our jobs as sales people.

Yet so few sales people understand that.  I’ve often shared this observation:  In any randomly selected group of twenty sales people, only one has spent $25 of his own money on his own improvement in the last 12 months.  Not coincidently, the same ratio is used to define the superstars of the profession.  Five percent (one of twenty) of the sales force produce approximately 50% of the sales. 

In a world of externally-focused colleagues and competitors, it is the one in twenty sales person who chooses the hidden path to excellence.  These are the people who understand this principal, and who consistently and willfully act on it.  They are the ones who buy the books, go to the seminars, listen to the audios, and watch the videos – all in a relentless quest to improve themselves, understanding that the only lasting path to excellence is the hidden path of internally focused self improvement.  And these are the people who inevitably rise to the top of the profession.

The same can be said of organizations.  Very few sales organizations understand that.  They expect their sales people to learn on the job, and look at investing in their development and improvement as a discretionary cost, rather than a fundamental strategic initiative.

Alas, that’s the world inhabited by the mass of sales organizations. They find a grab bag of reasons to not invest in their people:

•    they are too busy
•    they don’t want to spend the money
•    they know it all already
•    they would rather do it themselves
•    the time just isn’t right
•    if they improve their sales people, they will just go to the competition.
•    their people are too set in their ways to learn.

Pick the reason du jeur and come back next year to discover that another year has gone by without any significant investment in the skills and competencies of their people.  They select another reason from the list and use it to let another year go by.  And so it goes.  One year slips by, morphs into another, expands into decades and eventually deadens careers.  Focusing on the externals, they never come to grips with the real secret to sale success.

Study the leading companies in any industry and you’ll find that those who lead the industry are always those who most consistently invest in developing the skills and competencies of their people.

 

The 4 Areas of Essential Sales Skills

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Sales Leadership - Developing Your Team
Written by Todd Cohen   

For an organization to sustain continued growth and success, sales must occur at a continuous rate. If there is a sales culture within an organization, then it is more likely to find success over a long period of time.  A company where every individual has the necessary skills to understand and nourish what prompts a potential customer to buy will undoubtedly bring in more revenue and outshine their competition.  Educating everyone in the company about basic sales skills and showing them how their job affects the revenue of the company is what turns buyers into long-term customers.

Four essential sales skillsFor the business development team itself there are 4 areas of essential skills that sales professionals must master in order to build lasting relationships with customers and to learn how to close deals on a regular basis. These are personal skills, relationship skills, professional business skills and return on investment skills. If you hone your knowledge of these skill areas you will be well on your way to becoming a successful sales person.

In addition to focusing on sales skills, everyone in the company must also focus on the clients’ needs.  Sales professionals who take the selfish viewpoint will aim to close the deal at all costs. Sometimes this is to the detriment of lasting relationships with clients that could yield less immediate rewards but much larger in the grand scheme of things.

Let’s take a look at the 4 areas that are essential to sales professionals:

-    Personal Skills: Ensure that the sales professional is assured and competent with their own skill sets and self awareness.

-    Relationship Skills: Ensure that you have good interpersonal skills that can be used collaboratively to build trusting and long term relationship with co-workers, customers and employers.

-    Professional Business Skills: Have the ability to plan effectively, ranging from business planning, objective setting and goal definition, metric and measurement of achievements towards targets.

-    Return on Investment Skills: The ability to combine all other skill sets to enable sales professionals to maximize the potential from an environment of sales culture. This would be in the form of constantly striving for new innovations, products and service development. Always aiming to improve your services and sustain long term customer relationships.

Take these 4 areas of sales skills and become competent at them. When this has been achieved you have the tools at your disposal to build trusting and business focused relationships with customers. To reiterate the point again, by taking a customer centric viewpoint and combining it with your own sales skills you will engage the customers and your fellow employees in ways that will only sustain growth of sales and the organization as a whole. By taking this standpoint over a more selfish approach, you are giving yourself a better chance of higher monetary and reputational gain as your career progresses.

In order to reach this point you have to put in the long hours of developing your skills. Much of this rests with the sales leaders within an organization. Sales leaders must coach their staff, evaluate and mentor sales professionals and assist them in developing solid plans and opportunities to maximize their ability to lead effective sales campaigns.

If each team member is customer focused and is fully prepared and trained to deliver within their field of expertise, your organization will be on to a winning formula. This system of work provides clarity on connections to the customer and your targets being reached at all times.

If each individual sales professional gets the basics right, the simple stuff that people overlook from time to time, you will bring more value and visibility to your career. Aim to become the best listener and approach clients as real people whom you would like to establish a lasting relationship with.

Treat people as you would wish to be treated, be polite and courteous, engage in compelling and fruitful conversations. Everything else will fall into place; your customer centric viewpoint will allow you to develop long lasting relationships that benefit your customers, the organization you are employed by, and most crucially yourself. Your essential sales skills have progressed from an individual focus to a more general and external focus, and now finally to a strategic focus.

The 4 essential sales skills can take you a long way if used correctly and paired with the customer needs at the center or all of your interactions. 

 

Hunters and Farmers: A Failed Sales Model

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Sales Leadership - Developing Your Team
Written by Jeremy Miller   

FarmerSplitting a sales force into hunters and farmers is a popular model. The hunters are responsible for new business development, while the farmers work on managing and growing the existing account base.

The concept brings a Taylorist view to sales force design, and one I advocated for six years ago. In January 2006 I wrote, “Hunting and farming a territory are two distinct activities, and by separating them you can improve sales performance by focusing your people on what they do best.”

I was wrong. Dividing a sales force into hunters and farmers makes sense on paper, but in practice it doesn’t work very well. The model suffers from three major problems:

1.    Increased sales force turnover
2.    Increased cost of sale
3.    Stunted customer relationships

Let’s unpack these further.

Increased sales force turnover

Hunting focused sales forces experience very high turnover of first year hires, typically in the 50% to 75% range. Reps are hired and put in the field, but only a small number survive. That’s why many sales managers will hire four sales people with the expectation that only one will make it to the second year.

It’s easy to blame sales people for not being “good enough,” but that’s a cop out. If the turnover rate is greater than 25% in the first year it’s not the sales reps’ fault, it’s a sales management problem.

The hunter-farmer model is ineffective, because it has a poor return on effort. Hunters face a daily barrage of rejection as they look for new customers who need their products and services right now. It is hard, discouraging work. Sales people could deal with the daily rejections if they were paid for it, but the reality is sales people are only paid commissions for sales successes not sales work. New hires quickly realize they are in a losing battle. The job is hard, the results are sporadic, the chances of success are limited, and in the end they move on.

Increased cost of sale

A hunter sales force is basically an expensive lead generation platform. Hunters are responsible for finding new business by networking, cold calling, knocking on doors and building relationships with future customers. Their job is to touch enough prospects on a regular basis to be their first call when they’re ready to buy.

The problem with using sales people for lead generation is their reach is severely limited. A sales person can only talk to one person at a time, and there are only so many hours in the day. Digital marketing, content marketing, social media and search engine optimization are far more scalable platforms to engage customers. Employing sales people to hunt is an 80’s and 90’s model, technology displaced it.

Stunted customer relationships

Above all else, the hunter-farmer sales model benefits the company not the customer. It focuses on selling activities versus relationships.

Before a customer buys they have to like and trust the brand. They have to believe the company will deliver on its promises, and fulfill their expectations. Part of forming that belief comes from the sales person they engaged with from the beginning. When a new person is parachuted in after the contract is signed, the relationship process is forced to start over.

Most customers will accept the process, because they want the product or service more than the sales person. But it also stunts their overall relationship with the brand. The handoff reduces their potential to provide future referrals and references. Since the hunter moves onto the next prospect and the farmers are not rewarded to find new business, customer referrals and references are overlooked. The customer is moved through the proverbial sales assembly line to maximize the organization’s efficiency versus building their relationship with the brand.

Focus on the relationship

Organizing a sales force for maximum productivity is essential, but we need to refocus our attention on relationship building.

Customers go through a typical relationship cycle: aware, like, trust, buy, repeat, refer, reference. Customers aren’t going to buy simply because they’re aware your company exists, they have to like and trust you first. Once they become customers they have to be confident in the product and your capabilities before they will refer you to friends and colleagues. Often times they will purchase a few more times before they give out referrals and references. Recognize how your customers buy, and organize sales people to build rock solid relationships with them.

A sales force aligned to maximize customer relationships will experience three benefits:

1.    More loyal, engaged customers
2.    More referrals and leads from customers
3.    Lower sales force turnover with more fulfilled sales people

What’s your take?

What is your opinion? Does the hunter-farmer sales model work? What sales force design do you think is most effective?

 
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