Is your CRM system complicating your sales process?
Tuesday 23 June, 2009

A recent discussion with a prospect along with a post I saw on one of the LinkedIn group discussions has reminded me that some businesses have let their CRM (Customer Relationship Management) get out of control. The purpose of a CRM system is to make the sales and pipeline building process easy and repeatable.  However, I have recently seen and heard of businesses, mid-sized to corporate, who have allowed their CRM systems to become too cumbersome, complicated and over-bearing.  When that happens, look out!  Remember, information/data is only as good as the quality of the information that is initially pushed through the system. Typically, sales people are responsible for updating and maintaining the input process and if I have learned anything about salespeople (I include myself in that group!) when it comes to tracking data, if it ain’t easy, it ain’t getting done.

A CRM system should be easy to access, easy to use and set up to capture no more than 10 ‘critical bits’ of information. Frankly, I think most businesses can narrow it down to 5 critical bits of information. What are critical bits? They are pieces of information that can be triggers for your prospects that will open themselves to your products or services. Of course the obvious critical bits would include contact name, address, phone, email, website. But you already knew that!  If you are selling insurance, critical bits would be renewal dates and current carrier information.

Don’t over complicate the system or the amount and type of information you collect.   To use the over-used management mantra, keep it simple, stupid!

What is a ‘Core Competency?’
Wednesday 17 June, 2009

During a conversation with a client, regarding the reallocation of resources of his business and outsourcing, he asked me to give him working definitions of ‘core competency’ and ‘non-core competency.’  Here are the definitions I provided him:

Core - an area of proficiency in which you have a competitive edge in the market place and a profit driver in your business.

Non-core - those non-critical or administrative areas of your business in which you are not proficient and drain your valuable capital and human resources.

Is your business clicking on all cylinders and eliminating all potential costs savings?  Can you clearly define your core competencies and re-focus your resources on those areas of your business?   In addition, have you outsourced all of the non-critical areas of your business where you can realize cost savings and then reallocate your human/capital resources?

How to get past a gatekeeper
Monday 15 June, 2009

Confidence! Act like you have been there. If you act like a salesperson (overly nice, dripping with “can you please help me, I sound just like every other cold-calling salesperson”), the gatekeepers will smell you a mile away.

Be polite and professional, but act like you belong. Pretend you are calling a friend of yours at his or her work place. You would be amazed at how easily a gatekeeper will put you through if you are confident and act as if he/she is expecting your call.

A surefire way to get around gatekeepers: Call when they aren’t there and the C-level probably is still in the office (think before 8am and after 5pm!).
Terrence

Blame the Salespeople or the Sales Strategy?
Friday 29 May, 2009

I have been exploring this subject with a friend of mine from business school.  He has 8 sales people reporting to him, selling outsourced HR solutions ($70k avg deal), each with a quota of $425,000. Over the course of the last year, here are the results:
#1 salesperson (3 years tenure) - sold (6) units for $1,000,000 (185% quota) this year in territory A.
#2 salesperson (1.5 years tenure) - sold (5) units for $365,000 (85% quota) this year in territory B
#3 salesperson (1.5 year tenure) - sold (3) units for $150,000 (35% quota) this year in territory C
#4 salesperson (2.5 years tenure) - sold (4) units for $190,000 (28% quota) this year in territory D
#5 salesperson (1.2 years tenure) - sold (0) units, $0 this year in territory E
#6 salesperson (1 year tenure) - sold (0) units, $0 this year in territory F
#7 salesperson (1 year tenure - left company) - sold (0) units, $0 last year in territory F
#8 salesperson (9 months tenure) - sold (0) units, $0 this year in territory E & G

He is in the process of terminating the bottom three salespeople and rehiring for those positions. I advised him that he might want to look at their sales and marketing strategy/process, rather than blame the five “failed” employees (including the two salespeople who left after a year, not having sold anything). In addition, each employee represents $120,000 annually in first year salary, benefits and training. Since none of the five employees generated any profit (let alone revenue), they represent a loss of $600,000 over the last year and a half….and yet, he is going to re-hire for those same territories. Why? Because he is only responsible for a revenue-based quota and does not have P & L responsibility. Therefore, he is only concerned about putting “more boots on the street,” in order to bring in more leads and help him attain his overall quota.

I don’t think his company is hiring the wrong people (they are known for being a professional employer - recruiting, testing and hiring “the best salespeople”), as much as employing the wrong strategy. I encouraged him to look at consolidating territories which would save the company hundreds of thousands of dollars in salary/benefits/training and give the existing salespeople additional “dirt” in order to close more deals and make more money - both for themselves and the company!

Great Small Business articles
Tuesday 19 May, 2009

Over the last few months, there have been some great articles in Fortune Small Business magazine, by a “guest” writer named Jay Goltz. He has great insight and advice for small business owners. Unfortunately, only one of the articles is available online:
http://tinyurl.com/ojsvek

As more become available, I will post.

Oldies, but goodies from Zig Ziglar….
Tuesday 12 May, 2009

I found this list from an old Zig Ziglar book…with credit to Mr. Ziglar, I will reprint his list, along with some of my colorful analogies and insight.

“Every Sale has Five Basic Obstacles:”
1) No Need
2) No Money
3) No Hurry
4) No Desire
5) No Trust

No Need: This is an extremely important aspect to uncover in the sales process and I like to describe it as “Find the pain!” The customer either has it or doesn’t….not much of a gray area. However, sometimes they have a need, but don’t realize it, and in that case, you need to start digging for the “pain” and allow them to “claim it, feel it and realize they need what you are selling.” Confused? Let me give you an example:

A few months ago, I went to the dentist for a routine cleaning with the dental hygienist and afterwards, the dentist comes by for a routine check of my ‘pearly whites.’ As he is digging around in my mouth with this super sharp object, prodding each of my teeth, I hear him say very quietly, “Uh oh.” Of course, now I am fully engaged and respond with, “What’s wrong?” The dentist proceeds to tell me that I have a significant crack in one of my molars (back teeth) and it in a matter of days the tooth will crack in half, exposing the root. “That sounds painful?” I said. He shook his head and said, “It would feel like someone took a knife and stuck it an inch into your gums.” I didn’t have to wait to feel the literal pain. He painted a great picture and my decision was easy. I am buying…fix it!

No Money: This is a fun one! If someone doesn’t have money, how can we sell them something? First, start with the basics. Do you literally not have the money necessary to purchase the product (”You don’t have $99…Really? Or do you not have $99 that you want to spend today on my product?) In either case, god bless America, as we are the foremost experts on this great concept called “credit.” Take it today, pay us later. There are plenty of other creative ways around this one, but I will tell you about an instance where I created a work-around to this response. Everyone has heard of “Money back Guarantees,” which probably came about sometime during the origination of the infomercial industry. I took this a step further with medical equipment I sold to hospitals and surgery centers. I brought in the product,showed them how to use it and told them to use it for 90 days at no charge. At the end of that 90 days, I would call them and arrange to pick up the product or fax them an invoice, whichever they preferred. If a customer returned the product, I just used it as one of my “demonstration samples,” but the best part is that it only occurred 12% of the time! In most cases, I would show up to “pick up” the equipment and the staff would be screaming at me to get out of there. Amazingly, the hospital directors “found” money once they had 20-25 staff members beating down their door telling them how they couldn’t live without it. I didn’t have to sell a thing, but I had 20-25 of my ‘associates’ who gave a more powerful pitch than I ever could have delivered. (Side note: sometimes, you are better off letting others do the selling for you! My ability to train the staff proved to be more valuable than any sales pitch I could have mastered).

No Hurry: In my sales career, I have yet to see anything more powerful in a sale than timing.
I also call this the “what if” obstacle….What could happen if you don’t purchase my product or offering? Of course, If you knew the world was going to end next week, would it not change your outlook and spending habits for the remaining days? Absolutely! You would eat whatever you wanted, purchase without reservation and spend every dollar you had (you can’t take it with you!). The key to this hurdle is setting an artificial deadline and getting the customer to “buy in.” Whether you offer a discount for purchases that take place by a certain date (or number of hours!) or decide to sell your product on a future date and build excitement to a fever-pitch frenzy on the day your product hits the market.

No Desire: This is where the creative, right brain salespeople really thrive. Sell the dream! Some people would argue that this hurdle carries less importance in the buying process than a “need.” I would argue that a desire or want, can actually be much more powerful in the buying process than a “need.” I started off in college as a Psychology major and although I enjoyed some of the courses (along with the high female to male student ratio), the major was just too clinical for a simple minded guy like me. However, I remember learning about Sigmund Freud’s theory of the Id, Ego and Superego and I think it definitely applies to the “desire” factor. I won’t drag you through the intricate details of the theory, but just think of it as follows; the devil on one shoulder is the Id, the angel on the other is the Superego and the rational decision maker in between is the Ego. Now the basic drives of food, water and sex are all included in the Id. The best illustration I can give you is to think of the days of the caveman. If he wanted food, he hunted an animal so he could eat. If he wanted female companionship, he took a big club and dragged her into a cave (ladies, I am not endorsing or encouraging this behavior…blame Freud!). You get the idea. My point, is that “desires” or “wants” can be extremely powerful because they come from the same area (Id) that our desire for food and sex come from. We know how powerful those two aspects are in our lives as they also make up two of the larger industries in our global economy (think weight loss, dieting, pornography and Viagra).

Trust: At the end of a a sales process, after the needs have been uncovered, the purchase has been determined, the time horizon has been set and the wants and desires have been fulfilled, it still comes down to one important aspect: People buy, from people who sell.
You can surpass all of the hurdles detailed above and yet if the buyer does not trust you, no sale will take place. Trust has to be earned and for some salespeople, it is easier than for others. It is no coincidence that the salespeople who have a long, successful track-record are the same ones who are honest and trustworthy. Building rapport is an excellent way to gain the trust of your prospect and it isn’t as simple as asking him about his family (although, that can be important).
I would encourage you to approach each prospect as if you are selling to your mother (notice, I didn’t say mother-in-law) and you will find that this hurdle becomes a non-issue.

Kudos to Mr. Ziglar for breaking it down into 5 simple hurdles!

Corporate Sales Training is Garbage!
Thursday 30 April, 2009

I know, because I was a corporate sales trainer. After graduating from college, I started off as an entry level salesman and did well enough that I became the sales trainer for every new sales group that came through for training. However, they wouldn’t let me teach the tactics I used to be one of the top salesman in the company. They wanted me teach the same old, tired concepts that could be read in any sales manual or textbook. The tactics I was employing to crank up my sales (note: my tactics are legal, ethical, moral and within company policies) were so far “outside the box,” that my VP of Sales couldn’t understand how it worked and didn’t want me to include in my sales training sessions.

I still use these same tips, tricks and tactics (sounds like a catchy title for a book!) in my sales endeavors. While I understand the importance of sales training, I prefer to teach what works rather than the “watered down” tactics that many large companies teach today.

Set up your Fishing Poles….
Thursday 16 April, 2009

I was working with a group of salespeople today, trying to get across the importance of building a list of prospects in a target market. I was checking to make sure they understood the concept and one of my students replied, “You mean like fishing.” Not quite sure he was grasping the details, I asked him to explain.

“Growing up, my dad would take me to the mountains and we both liked to go fishing, however, I liked stream fishing and he liked to fish at the lake. Stream fishing was fast moving, as you waded through the mini-rapids of the river, hitting spots under logs, near tree branches and next to rocks. You would start at the top of the stream (melting snow moves from the top of the mountain to the valley below) and and work your way down a mile or so, to the bottom of the valley with a variety of conditions during the4-5 hours of fishing. My dad preferred to go lake fishing, where he would set up his chair, a cooler by his side and cast his fishing line into the lake where it would sit for 6-7 hours while he proceeded to empty the contents of his cooler. At the end of the day (read: empty cooler), he would reel in his line and regardless of what was (or wasn’t) on the end of his line, he and his empty “beer locker” would head home. We would trade off going to the stream and the lake, so that each of us got to enjoy our idea of “fishing.” However, I discovered a way to make lake fishing a little more enjoyable, and even more
rewarding than the stream fishing I favored. I had the a similar penchant for beer, but a large case of ADD (attention deficit disorder), so I decided to set up 5 fishing poles around the lake, then continually walk around, checking my poles, reeling in the ones with fish and then casting them out again. At the end of the day (much shorter day, since I was helping dad with the cooler!), I collected my fishing rods and counted my fish. Without fail, I would have 4 times as many fish as my dad did with his one pole. The next time we went, I set out 10 poles and guess what happened….my dad had to clean a whole lot of fish and my mom told me to start drinking more and take fewer poles!”

After his story, I had to think about the analogy, but I think he got the message. By setting up a lot of “fishing poles” and letting your customers “bite” on your concept, you will quickly build a large list, which you can use in future marketing efforts.

Prospecting for Voice Mail
Wednesday 8 April, 2009

Have you ever heard of a salesman calling prospects and PRAYING for voice mail! No, he wasn’t delivering bad news. He was prospecting.

Today, I caught up with a friend of mine, Nate Olsen, who employed this tactic for many years, with a 40-50% success rate. Nate is a friend from Business school, who has been in the PEO (Professional Employer Organization) industry for the last 12 years. Nate works for a Fortune 300 company as a Regional Sales Manager, selling primarily to small and mid-sized businesses. Nate’s customers utilize his company to manage all of the Human Resource aspects of their business(Health Benefits, Workers Comp, HR admin and liability) so they can focus on their core competencies. Essentially, Nate’s company utilizes economies of scale and the buying power of 188,000 employees to give small and mid-size businesses the leverage it needs to effectively reduce costs, liability and to function more efficiently. It is a great model and a true win-win as the small business owner can outsource the non-revenue producing area of his/her business, which allows for them to reallocate internal resources to increase profitability.

Anyway, the Guerrilla Sales Tactic I want to pass along from Nate, stemmed from his days as a salesman. He had a target list of hard to reach clients that he knew were a good fit for his offering, and twice a month, he would call from his list and PRAY for voice mail! Once he got the voice mail of the business owner, he would leave the following message:

“Hi Mr. Business Owner, this is Nate Olsen from (insert your company name) and I will be meeting with company A (be specific, preferably a competitor or similar sized business) down the street from you, at 10am. I will be finished at 10:40am and I will stop by after my meeting. If this doesn’t work for you, please call my cell phone at (111-222-3333). Otherwise, I will see you tomorrow at 10:45am”

While presumptive, Nate would show up at 10:45am, tell the receptionist he had an appointment with Mr. Business owner and surprisingly, and 40-50% of the time, the owner would take his meeting. While I would not want to use this tactic for all prospects, I definitely think it should be a tool in your bag to use for those clients who are extremely difficult to reach. If you can’t get in touch with them using other Guerrilla Sales Tactics what is it going to hurt? Be presumptive and start praying for voice mail!

I couldn’t Sell Candy….
Wednesday 18 March, 2009

…but I learned so many lessons that it was worth the price my mom had to pay ($35 per box)

When I was in grammar school (a long time ago!), we had fund raisers for our school and the item that was supposed to bring in the big bucks was candy. Not just any candy….chocolate bars (with or without almonds), from a company (see link below) who has made a huge business providing “fundraiser candy” for schools/groups across America.

Anyway, back to my story. My friend Mike and I would get these boxes of candy bars and begin going door to door throughout our neighborhood. The responses, “Sorry, but we just bought some from Johnny/Jane/Billy.” What a shock….the other kids from school were also ‘hawking’ their chocolate covered commodity and had beat us to the punch. First lesson learned: Speed to market is paramount.

So Mike and I brain-stormed and came up with a new strategy. Let’s take our chocolate wares to a high-traffic area, where people are coming to us with money in their hands. Bank of America, here we come. So we stood at the front doors waiting for the tidal wave of foot traffic as we stood between the bank customers and their money! We waited and a few people cam through, but not what we were expecting. The problem? It was Wednesday. Friday is the busiest day at the bank as customers are cashing their paychecks and flush with cash from their weeks worth of work.
Second lesson learned: Timing can be more important than your offering

A new day, a new game plan. We adjusted our strategy once again and on Friday afternoon, we stood at the front door of the bank, ready for the mad frenzy that would turn us into chocolate magnates. The first 3o minutes were promising as we continually heard “I will buy one from you on my way out.” Great! We’ll sell out and be playing GI Joes while the rest of our friends are still out pounding the pavement. Of course, we were young and still a little naive and failed to notice the second set of doors on the other side of the bank. Whoops. Our high powered sales pitch was going wasted as the bank suddenly became a one way street with customers entering the heavily guarded front entry and exiting the rear doors.
Third Lesson: Make sure you cover all your bases.

As we started seeing some of the same customers we saw a few minutes earlier, magically appearing back at their cars, we asked ourselves, “How did they get past us?” Once we figured out that our boat was leaking water by the gallons, we decided to plug the hole for good and Mike took the entrance, while I took the rear doors. Instead of pitching to customers on the way into the bank (we figured out they had too much time to make up an excuse before exiting), we put the hard sell on those leaving, flush with cash from their untouched paycheck.
Fourth lesson learned: Your strategy may be sound, but keep fine-tuning.

We didn’t become millionaires selling boxes of chocolate, but we did learn some important lessons about selling.

Final lesson learned: Ready…Fire…Aim. Use Guerrilla Sales Tactics, track your results, and refine your strategy until you are killing your competition!

http://tinyurl.com/d743al