Saturday, 26 May 2012

Sales Tips



The First Seller with the Answers Wins

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Written by Andy Paul   

Customers today are armed with a wealth of data gleaned from the Internet about the products and services they want even before they contact a seller for the first time. Given the trove of information available online, if a buyer still has questions after doing their research, then their need for an answer is, by definition, urgent and critical. When that customer contacts a seller, they want an answer right now in order to make an informed buying decision in the least time possible.

The first seller to be absolutely responsive to the buyer’s need for information wins. Every person-to-person interaction between a salesperson and a customer, who must be presumed to have already researched your product online, requires the salesperson to be completely responsive and create value for the customer in the least time possible.

Why are responsiveness and creating value so important? Here are two important reasons:

1. For all businesses, responsiveness is inextricably linked to content and speed. If you’re a seller and your customers are working their way, step-by-step, through their decision-making process (otherwise known as the buying cycle), they won’t move from one step to the next until their information requirements for the current step are completely satisfied. Without responsiveness, a sale, or a buying cycle, will come to a screeching halt.

2. When you create value for the customer during the selling process you build trust and differentiate your company from your competition. A customer may have 80% of the facts about your product when they first contact you, but they’ll understand very little about the intangible value your company or product can add to their business. Being “absolutely responsive” will quickly give you that intangible advantage over your competition.

There are four simple rules to being absolutely responsive to your customer.

1. Responsiveness = Content + Speed.

2. You aren’t absolutely responsive unless you are completely responsive.

3. A fast but incomplete response to a customer’s request for information is the same as no response at all.

4. A complete but slow response to a customer is marginally better than no response.

That’s what Zero-Time Selling™ is about: using absolute responsiveness to reduce to zero the amount of time required to convert a sales lead into a satisfied customer.

Do whatever is necessary to take the prospect’s breath away with your responsiveness. Keep in mind that every interaction with you takes time that the customer could be spending on other important tasks. The customer’s Return On the Time they have Invested in the buying process with you (ROTI) will fall dramatically if you aren’t completely responsive. A completely responsive salesperson not only follows up with the prospect in Zero-Time but also has the product knowledge and experience to answer virtually 100% of the prospect’s questions on the spot.

Think about the negative compounding impact of having salespeople who are not in command of all the facts about their product or service. The extra time they spend shuttling between your product experts and the customer is time they could be devoting to other prospects. If all of your salespeople aren’t completely responsive, your company will handle fewer prospects than it should, in essence handing business to a competitor’s salesperson who is completely responsive.

Here’s a quick story to illustrate my point.

Recently I was shopping online for a particular service. I spent a few hours researching the alternatives and narrowed my choices to one system that seemed to fit my needs. I had some questions before I could make a decision. I tried to find a phone number to call but they didn’t offer one. So I tracked down an email address for their Sales department and submitted a list of 5 specific questions. Within an hour I received an email response. Needless to say I was encouraged. I like doing business with like-minded companies. Then I read the response. As best I could tell it didn’t appear to have been machine-generated, but even still…

"Dear Andy,

Thank you for your interest in XXXXXXXXX. We are here to help you. Please let me know if you have any questions."

Sigh. I bought from another company.

 

Why It Is So Easy To Become An Exceptional Sales Person

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Written by Dave Kahle   

When I was 18 years old, I got a summer job working for a company then called Jewel Tea, whose business was selling groceries, housewares and kids clothing to housewives on a route.  I was hired to work the routes for the vacationing sales people who owned the route. 

At age 18, I had no sales experience and little personal presence or confidence, but I consistently outsold the older, more experienced people who owned the route, and was recognized by the company as the “outstanding college student” summer employee.

I was astonished.  I had no idea why I was successful.  It really wasn’t that hard. I just did what my boss told me to do, in the way he told me to do it.  Didn’t everybody do it this way?

Over my career as a sales person, I sold a variety of products in a variety of selling situations.  From suits and sport coats in a retail men’s store, to capital equipment to schools, to surgical staplers to surgeons in the operating room, to 70,000 line items for a wholesale distributor.  I always did well, and was the number one sales person in the nation for two different companies and two distinctly different selling situations.

I was always a bit perplexed by my success.  I always worked hard; always tried to do well; listened to my boss and did what he told me to do; and constantly sought out ways to improve my skills.  I bought the books, went to the seminars, listened to the audios, etc. 

For almost my entire selling career, I could never understand why I was more successful than others in my company.  Didn’t everybody do it this way?

It wasn’t until I formed my sales consulting/sales training practice and began to work with sales people and sales forces that I discovered the answer to the question.  “No, not everyone did it like this.  In fact, very few do.”

What did I do that I now realize very few sales people do?  These are the three cornerstone characteristics that I just took for granted, but which I have since discovered are the rare building blocks upon which sales success is built.

1.  Work hard, every day.  I can’t believe I’m actually telling people to work hard.  That ‘work ethic’ was just instilled in me by my parents.  I was raised in a family of six boys, and we all had paper routes and part-time jobs as soon as we were able.  We were expected to work hard.  I never questioned the wisdom of it.

Of course there were times when I took that afternoon off, or those special long weekends.  Every employer, though, got at least 45 – 50 hours from me every week. 

In my practice, however, I run into sales people seemingly every week who have no problem with routinely leaving the house at nine and being done for the day at three.  As one of my clients verbalized recently:  “So many people in the work force today have an entitlement mentality, a short attention span, and inordinate hubris.”  If he’s right, that’s too bad.  Those are not qualities upon which success is built.

2.  Try to do well.  Again, I find it incredible that I have to mention this. Doesn’t everyone strive to do well?  Actually, no.  The vast majority of people, sales people included, just want to do a job and forget about it at the end of the day.  Only a small fraction – somewhere between 5 percent and 20 percent in my experience – actually strive, day in and day out, to do well. The reason why most sales people are not highly successful is that they don’t want to be successful.

Let me be really clear.  Everyone wants the results of doing well – the extra income, the higher degree of respect from bosses and colleagues, the feeling of accomplishment and the extra confidence that comes as a result of sales success. But very few are willing to pay the price for it.

I remember reading a quote from a famous coach, whose name escapes me at the moment.  It went something like this:  “Every athletic has the will to win, but only the winners have the will to practice.”  There is a price to pay to be successful.  You have to want to be successful, and you have to want to be successful badly enough that you will invest time, money, ego, energy and emotions in it.

3.  Constantly improve.  Believe it or not, you are not as good as you can be.  Ever.  If you are going to be successful at sales, you have to become more competent than you are now. 

Sales is a proactive profession.  In other words, the customers don’t send you a purchase order, and then you go see them.  No, you must see them first, and influence them successfully.  Your actions get reactions.  If you act well, they will react accordingly, and you’ll eventually get enough of the deals to become successful.  If you don’t act well, they will react accordingly, and you’ll forever be relegated to mediocrity. 

So, if you want to be successful, you must continually improve your skills, your habits, your attitudes and your mindsets.  That’s something that only a handful of sales people actually understand.

There are two things to do to continually improve:

a.  Constantly reflect on your performance and your actions and identify things to improve.  That means, reflect and evaluate after every sales call.

b.  Expose yourself to the best practice of the profession.  That means read the books, go to the seminars, listen to the audios, read the Ezines, etc.

Now, here is why it is so easy to succeed at sales.  Sales is the only profession where most of the practitioners don’t practice the three simple habits above.  In every other profession, there is the expectation that serious practitioners will continually improve.  That’s why doctors go to conferences, nurses have in-service training, lawyers read case studies, executives attend roundtables, minister listen to webinars, etc.  Every other profession in the world expects its members to constantly improve, and the vast majority of them do. 

In the profession of sales, there is no expectation for constant improvement.  So, most sales people don’t bother.  The reason it’s so easy to be successful in sales is that your competition, other sales people, don’t really want to be successful!

 

4 Nervous Habits That Kill Sales

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Written by Robyn Davis   

Have you ever had that out of body experience where you feel like you’re watching yourself kill a sale? …where it feels like you can literally see the prospect becoming less eager to buy but you just can’t stop yourself from making the situation even worse? You aren’t alone. I work with exhibitors full time and, because the sales process is accelerated during trade shows, there are plenty of opportunities to observe booth staffers who feel like they’re under intense pressure (or simply out of their element) and inadvertently turn off their visitors with nervous habits.

If you have ever experienced this issue, or know someone else who has, this article is for you. Here are four of the most common nervous habits that kill sales and what you can do to avoid them in your next selling situation:

1. Not talking enough.

As the meeting host (FYI – if you’re selling, you’re the host …whether that “meeting” is taking place in your office, trade show booth, or local Starbucks line), you are responsible for progressing the conversation. I don’t mean that you should monopolize the conversation (see habit number two below); but, it’s not okay for you to clam up either. If you don’t do your part to carry the conversation, instead of making your guest feel welcome and at ease (so they begin to like, know, and trust you), you’re placing all of the pressure onto them to entertain you. In this scenario, your problem is that you are not talking enough.

So, if you find yourself becoming too quiet, speak up! You need to be engaged, ask questions, and listen thoughtfully so that you can respond to your prospect’s comments before transitioning the conversation from one stage to the next. If you do get stuck (say you stumble upon a sensitive topic or draw a blank), just take a breath, remember that you’re probably more bothered by any awkwardness than your contact is, and redirect the conversation to a topic that will help you reach your mutual goals.

2. Talking too much.

If you get carried away with avoiding habit number one, you may see your prospect’s eyes glaze over, notice that he has a sudden fascination with his watch/phone, or feel like something really exciting must be happening just over your shoulder. These are all signs that you are talking more than you should and have lost your prospect’s interest. On the flip side, you may find that this habit causes your contact to withdraw from the conversation (especially if your “talking” sounds more like “interviewing”) or become confused while trying to translate your babbling back into coherent sentences. If you observe either of these responses, you are talking too much.

So, if you catch yourself being a bit too chatty, wrap up your current sentence as quickly as possible and immediately follow it with a question for your contact. As long as you let him answer and listen thoughtfully while doing so, this can be an excellent start to reengaging your prospect. From that point forward, it will be even more important to ensure that you are focusing on his needs, his interests, and his continued involvement in the conversation (so that there is a conversation to progress).

3. Overcompensating.

As a sales professional, there are times when you might feel unprepared or inadequate (for example, when you find that you aren’t as familiar with your prospect’s situation as you should be or you realize that your competitor excels in key areas that you don’t). In this situation, there are two clear options: lie or own up to your unpleasant feelings. However, in the moment, you may choose a different option. You may choose to “highlight” the knowledge you do have, like irrelevant industry information (to distract from anything you don’t know) or your competitor’s personal and professional weaknesses (to detract from their positive attributes). Even if you justify this by saying you’re doing your best in a challenging situation, you should know that you’re really just hurting yourself by overcompensating.

So, if you find yourself exaggerating to make up for your lack of preparation or confidence, reevaluate your options. If the information you don’t know is necessary in order to progress the conversation, either ask or reschedule your meeting until you can do additional research. If you are tempted to badmouth the competition, don’t; simply shift your focus back to the relevant benefits your products/services provide. Take the high road and bite your tongue as needed.

4. Appearing desperate.

In a society where the old “minimum standard” is seen as the new “extra mile,” going above and beyond is impressive to prospects and appreciated by clients. However, there is a fine line between providing excellent customer service and offering too much. Once you have offered a huge discount, promised to personally be available 24/7/365 to hold your (hopefully) new client’s hand, and agreed to rush the order at no additional cost, you have probably given away too much. In fact, if your prospect was sold on the value of your offerings themselves, throwing in all of those extras may just be causing him to question his original assessment… Your prospect may now be saying to himself, “why does she need this order so badly? If her offerings are as great as I thought they were, why is she practically giving them away? Maybe they aren’t so great after all…”

Side note: If your prospect can’t see the value of your offerings without so many extra benefits, you missed a step in the sales process; randomly throwing in extra benefits at this point, without resolving these issues, is not your best long term solution.

So, if you catch yourself going too far, just stop and wait for your prospect to respond to what you have already promised. If the package isn’t quite right, design a new offer that is a better fit for his situation (if he wants more benefits, charge a higher price or if he’d prefer a lower price, take away the expensive extras). Negotiating is part of the game, but don’t trade your self-respect or give your offerings away at a loss to get the sale. Premium offerings should come at a premium price (or else they won’t receive the respect they deserve).

In conclusion, nervous energy isn’t all bad. In fact, these actions can actually be helpful in small doses (for example, striking a balance between facilitating a conversation and being an active part of it, reinforcing your relevant expertise without getting lost on a tangent, and offering a great opportunity without appearing too needy or being unfair to yourself). However, it is important to consciously rein in those actions; instead of watching yourself spin out of control, keep your nervous habits in check and utilize them in the more positive ways mentioned throughout this article.

 

Increase Your Sales by Using Independent Sales Reps or Manufacturer's Reps

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Written by Jeff Simon   
Why would I be interested in using Independent Sales Representatives?

Simply put, to achieve more sales, faster, and at lower cost than other methods.

While Independent Sales Representatives or Manufacturer's Reps are not right for all circumstances, outstanding advantages could be right for you. Especially, if you need to take your company into new markets or grow existing markets with a lower up-front cost.

What is an Independent Sales Representative?

An Independent Sales Rep, also known as a Manufacturer's Rep, is an independent business composed of sales, marketing and customer service professionals, representing at least two related but non-competing products in a well-defined territory, and primarily compensated through commissions. The Principal can be a manufacturer, distributor, importer, or service provider.

An Independent Sales Representative is not the same as "inside" sales, showroom sales, or telephone sales. An Independent Sales Rep may use showrooms, trade shows or the telephone to interact with customers. But an Independent Sales Rep’s primary focus is to work face-to-face with customers, often traveling to meet with them to show products and services, close sales, provide training and solve issues. Commonly, Independent Sales Reps carry complementary product lines and cover a territory suited to effective coverage of the account base.

How does using Independent Sales Reps or Manufacturer's Reps increase sales?

The major reason that Independent Sales Representatives can increase sales is because they carry multiple lines. When more than one line is brought to the customer, sales can be made more effectively and at lower cost. The sale of one product can "trigger" sales of other products. With multiple lines, Manufacturers Representatives see more customers in their territory than inside salespeople. Thus a broader, better-defined customer base is created. The result is more sales and better market penetration.

What are the other advantages of using Independent Sales Reps or Manufacturer's Reps?

•    Principals can enter a new market quickly and cost-effectively. The Manufacturer Representative brings his existing customer base. The Rep knows his territory and has his own established network of both buyers and other Reps. For new companies who are still seeking to create their place in the market this feature is vital.
•    Manufacturer Representatives are paid for results, leading to a highly motivated sales force.
•    Sales costs are known.
•    Provide better focus in their territory due to familiarity with local preferences. Independent Sales Reps quickly identify new product opportunities, whereas an inside sales force may take months or longer to make that identification.
•    Reps have local acceptance. They are familiar to their customers and trusted by them. They often live in their community. So they have a vested interest in their products and customers, whereas inside salespeople may not.
•    Provide more objective ideas for product improvement and more objective customer feedback on new products because they do not work for the Principal. Customers feel confident in sharing information with Independent Sales Representatives about changes and opportunities in the market. Customers who would hesitate to bring valuable input directly to inside sales staff will openly share with Independent Reps, including both suggestions and criticism. This openness further motivates the Rep.
•    Provide quick response to customer issues because of close physical proximity. Customers may also feel that it is easier reach the local Reps.
•    Provide consultative selling, customer service, product demonstrations, product and sales training, sales analysis, credit reporting, market research, market development information, product quoting, and current product improvements, new product development, and participation in sales meetings, trade shows and conventions. Some may also offer showroom displays.
•    Alert Principals to new developments in their territory that could affect their lines.

Why don't all Principals use Independent Sales Reps or Manufacturer's Reps?

Many Principals who could benefit from using Independent Sales Reps who do not yet sell that way have misconceptions about the method, or about inside sales forces, or both. Another reason could be that they prefer to have complete control over the sales force.

Will my Rep help build my business -- or just be an order taker?

If sales could be successfully made via promotion and advertising by themselves, neither an inside nor independent sales force would be needed. However, because Reps are only paid by commissions, they cannot depend only on the sales support efforts of the Principals. They have to go beyond the Principal's efforts to develop and implement their own incentive programs which are tailored to their own territories and customer base.

How much commission is the Independent Sales Rep or Manufacturer's Rep customarily paid?

Commission rates vary by industry over a wide range, with the majority between 5 - 20% of gross sales.
 
How Can I Find Independent Sales Reps,or Manufacturer's Reps, or Sales Agencies?

1.    There are several online services that provide cost-effective access to Independent Sales Reps. They have a large and growing database of Independent Sales Representatives and Agencies that you can search for free.
2.    Visit regional and national regional trade shows to meet Independent Sales Reps and Sales Agencies.
3.    Set up a booth at a trade show and post in your booth a "Sales Representatives Wanted" ad.
4.    Employ or engage a consultant to act as a Sales Manager whose job it is to select, engage and train your National Sales Force.
5.    Advertise in Craigslist, on-line job boards, and classified sections of newspapers. While these routes may appear simple and inexpensive, be prepared for their hidden costs and time delays. To use them effectively, you will need an appropriate level of Human Resources staffing to screen a potential deluge of resumes, reduce their number by a factor of as much as a hundred or more, finally leading to phone and possibly in-person interviews. That is, some advance staffing may be necessary, and you will need to budget sufficient time and resources over and above the up-front advertising expense. Plus newspaper advertising can be quite expensive.


 

Help Your Clients Recognize Their Need

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Written by Stu Schlackman   

According to life insurance industry studies, 36% of clients don’t recognize they have a need.  You may wonder how that is possible.  Several years ago I made a sales call on a prospect that was losing $10,000 a month in revenue due to a problem with their invoicing system. We presented a solution that would not only stop the loss, but would actually increase monthly revenues by getting payments in a timelier manner. So what did the prospect do? Nothing! Why would they choose not to invest in a solution that would both solve their problem, and improve their revenue? Did they not believe we were telling the truth? Did they have other priorities? I don’t think so. Yet, when prospects are facing a problem and they have the opportunity to resolve it, why don’t they take action? I believe there are 3 reasons why a prospect will not take action.

1.    The pain is tolerable.   Yes the pain might be tolerable, but it’s your job to show them what the long term impact can be. If you were 50 pounds overweight and your doctor tells you have to lose weight, why don’t you? Because you’re not currently in pain. It’s the chest pains that come later that cause you to take immediate action. As sales professionals you need to show the prospect tangible and predictable evidence of not taking action. You need to take them into the future, engaging their imagination.  Take them to the emotional side of their brain where action is taken. People don’t buy on logic, they buy on emotion! When people buy life insurance they are buying it to protect their family from future disaster so you must take them to that expected future. Focusing on the current situation doesn’t provide them with a good reason to invest because there is no immediate need.

2.    Ask don’t tell. Prospects like to talk so give them that opportunity by asking questions that gets them talking about what is important to them. You retain 70% of what you say, but only 20% of what you hear. If you are in a pure presentation mode, you lose 2/3 of the impact because they aren’t talking. When the prospect is speaking, you’re learning vital information that helps you both build trust and lead the conversation to its’ intended conclusion – a sale.  When we ask questions that heighten the problem or situation that the prospect is in, they will hear in their own words why it’s necessary to take action. Naturally they are more emotionally connected to their own fears and concerns than the various issues that you might introduce.

3.    Priorities. One of the best open-ended questions you can ask is “where is this problem/solution on your list of priorities?”  Their response will give you clues about the timing and budget for a decision favoring your solution.  If it’s truly a priority for them, they will be much more motivated to take action. If they seem to hesitate, ask them why; is there a concern that you haven’t addressed; did you misunderstand the need?  You’ll need to understand that concern before you can truly understand their priorities. 

Your job as a sales professional is to help your prospects understand their need and to feel the pain that can result from avoiding a solution.  In order to help them own their need, you’ll need to:

•    Engage your prospects in the future – the pain may be tolerable now, but what about later?

•    Ask questions instead of spewing your pitch – listen carefully for clues to their most vital needs

•    Help them to understand their priorities – the closer you are to their biggest need, the more likely they are to buy

Taking these steps helps you to understand your clients’ needs which then helps them to comprehend the risks and rewards of action. 

Good selling!

 
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