Politics and Salespeople

I just finished listening to Sarah Palin's nationally televised, seven-minute response to the recent politically-charged murders in Tucson, Arizona.  I'll go on record to note that I'm relatively a-political.  I believe in our Constitution, and ability of our country to self-govern (and self-correct).  However, I feel somewhat compelled to use this blog as a sounding board for what I believe to be an unbelievable challenge for the U.S.  What does this have to do with salespeople?  Well, I'll admit, not much; however, there are few careers that represent the sheer numbers and ability to communicate with people like salespeople.  We're out and about, talking with other people, and our influence should not be trifled with.  As a profession, let's not sit back and ignore the events that have transpired.  Here's a perfect storm:

• We're at war.  Not with one country, but many.  Our soldiers are dying.
• We're in an economic depression.  Some people call it a "recession," but that's only because we're actually printing money and giving it to the same companies and banks who got us into this mess.
• Our two primary political parties are at such odds, that a new political faction has arisen (Tea Party) seeming to indicate that there's enough Americans unhappy with the Dems/Reps to break-off into a new organization.

An isolated gunman goes on a shooting spree in Tucson, killing people at a grocery store, and we're faced with a puzzle.  Why is Sarah Palin calling a press conference to combat a frenzy of accusations that she's somehow involved?  Do you really need an answer?  Have you watched her nationally syndicated television show?  Have you been asleep since the last presidential election?  

We've got a problem.  Lots of them.  Let's turn the ship around.  Let's get the country back on-track.  Talk to people about this.  That's what you do for a living.

Salespeople can change the world.

I Know Why You Lost That Deal!

You know the deal I'm talking about, right?  That big one.  That one that you thought you had figured out. The one where you spent hours, weeks, strategizing about what you THOUGHT the customer would probably do.

We've all been there.  We cultivate a customer relationship.  We develop the opportunity.  We get to a spot where we really believed that big deal was ours.  Then we lose.  We try to figure it out.

I sat in my office the other night strategizing with four other team members trying to figure out a really complex strategy for an account.  I mean this deal had more spin on it than Kobe Bryant's layup.  The pricing scheme was a nightmare.  The customer options were staggering.  We thought we had a good lay of the competitive landscape.  This was one of dozens of hours that we had invested trying to create the perfect scenario where we'd land on top.

One of the most fascinating topics squeezed in-between the complex strategizing was one of the big reasons we were sweating it, was that they "didn't like the way the technology looked."  Are you kidding me?  Here we are looking at this thing 100 different ways and there's this funny little cosmetic issue that rears its ugly head.  It made me stop and take a look at all of our efforts.  Did we really understand all of the simple things about the customer and opportunity?  Had we taken the time to be in a position to be working long hours?  Maybe so, but it allowed me a brief glimpse of reality.

Here's why you lost that big deal:  You didn't know something really important to the customer.  Maybe it was something you couldn't know, but here's the kicker:  it's the same reason that your competitor won.

Happy Selling and Happy New Year

Best Urchil's Take-Aways: Relationship Selling

In Urchil's Relationship Selling, published in 2008, he spins a masterpiece of success.  Here's the biggest take-aways that need no elaboration from me.

"...a trusted advisor relationship is not the same as a "buddy" relationship."
"...it is most important for the client to perceive you more as the person who they can trust to provide the appropriate solution and less as the person who is their friend or buddy."
"You need to evolve from a person who recommended and sold systems or devices to a person who collaborates with the client and helps resolve business problems affecting the organization as a whole, or a specific problem that affects that client in person."
"You should be genuinely interested in people."
"You should be genuinely interested in helping others without expectations."
"You should have a genuine desire to make friends."
"You should have a genuine belief in yourself and in the goodness of others."
"You should have a genuinely positive outlook on life."
"I suggest that you consciously cultivate the ability to see the positive in everything."
"I have experienced, time and time again, that it is these small, simple, seemingly insignificant things that matter the most."
"If you forget somebody's name...do not try to cover up the fact that you forgot someone's name.  Apologize once and do not make a big deal of the situation."
"My employees are all aware that if I ever catch them or hear of them responding to a cell phone call or typing away at a blackberry while in a meeting with a client or during a formal meeting with their peers, I will terminate their services."
"The following four skills define the LUST technique:  Listening.  Understanding, Soliciting Input, Trusted Advice."
"Let me assure you that if you truly listen to someone and really hear what he or she is saying, ninety-nine percent of the time you will find that you have something in common with him or her.  Don't force the interaction.  Don't pretend to like something."
"Things that successful people share:  They are ethical.  Successful people exhibit a core set of personal and professional ethics and honesty that they are not willing to compromise.  They exhibit perseverance.  They are willing to work through the hard times and strive towards the desired goal.  They do not give up at the first sign of trouble or hardship.  Tought times do not last, tough people do.  They have good work life balance.  They are multi-dimensional.  They practice.  Persevere.  Adapt.  Learn.  Practice."
"...There is no such thing as natural talent and if there is, it plays an insignificant part in consistent long-term sucess."

Out-Thinking The Relationship? Think Again.

I'm the first one to admit that while I'm a relatively social person, I differ from some of my peers and fellow salespeople in that I'm likely to focus more on sales strategy than anything else.  The big question (that will likely never be answered) is:  How important is relationship-based selling over sales strategy and tactics?

Here's the argument for focusing on sales strategy and tactics:
If people can be described in a simple way, its probably that they are unpredictable.  All the sales psychology in the world can never predict the complex world of human behavior.  Scientists spend their whole lives, generation after generation, trying to predict how different types of people behave in different situations.  It's a no-win project.  Even after careful study and hours of interaction, no salesperson can really pin down the predictability of a customer.  All too often, I hear people in our industry tell me that "this customer's key is talking about football," or "take this guy to the BBQ place once a month and you're golden."  Sure, I'm simplifying this a bit, but here's my point:  If we draw the conclusion that there are many things we can't predict about a customer, why not focus on the things that we CAN predict.  That's where the science of selling rules supreme.  Use math:  more activity, better qualified prospects, frequent contact, be reliable, follow-up closely, propose solutions that impact their business (and them), keep good metrics of sales ratios (like closing ratio), and use common sense.  If salespeople focus on these scientifically proven methods (along with being a friendly, social person), doesn't that make more sense than "focusing on the relationship?"

Here's the argument for Relationship Selling:
It's going to sound silly, so brace yourself:  relationship selling works.  I can't produce the scientific studies, nor can I describe a methodology that salespeople can follow in regards to selling primarily on creating relationships.  There is a best-selling book on relationship selling by Jim Cathcart (it's interested and recommended).  Maybe one of the reasons for this, is simply because the core of relationship based selling is difficult to teach (and for that matter, even learned).  Go back to the argument that we really haven't figured out how to predict social behavior.  One thing is certain:  Salespeople who have miserable sales strategy and tactics, but who are phenomenal at building relationships, are very successful.  I've even seen extreme examples of this where the salesperson is down-right irresponsible in terms of basic sales blocking and tackling (even those who know next to nothing about the products/services they sell).  The proof is in the numbers.  Relationship creation and sustainability is almost legendary.  What's their secret?  How do they do it?  There's not a good answer, but there are similarities between great relationship-based salespeople.  They're often poor at looking at situations analytically, their attention to detail is hit or miss, and they prefer not to get bogged down in planning.  OK, these might be perceived as negative traits, but to the relationship-focused salesperson, these things actually get in the way of maintaining that magic formula with their customers.

I guess there will always be a bit of a debate regarding which way to lean.  I wish I could tell you that I see a bunch of salespeople with a nice blend of these two traits, but I wouldn't be telling the truth.  In fact, I've worked with and trained over 1,000 salespeople and very few could blend the two traits.  In reality, a good plan would be to team-up a strategist and a relationship-builder.  This is a team that cannot be stopped.

Holiday Selling - November & December Could Be Your Best Months!

Happy Holidays 2010-style!

When I think about the impending holidays upon us, the Sales Manager in me always thinks about the short work weeks and the customers that will be out of town on vacation.  To make things worse, my company specializes in K-12 Education and many of our school districts are closed for weeks at a time.  Is the glass half-empty?  Maybe.  Let's talk about the other part of the Egg Nogg.

Other things that happen during the holidays for salespeople include:

• Time to review the year's performance, activity metrics, bookings and analyze information about your sales year.  Looking at metrics like Closing Ratio, Average Deal Size, Time frames in the Sales Cycle and others make fantastic fodder for keeping busy.
• Time to plan for next year.  I keep saying this over and over, "if you don't plan for your success, you significantly decrease the changes you'll get what you want."  Plan the activity required to achieve your financial goals.  Want to make more money?  Find out what you did last year and plan out your year.
• Time to give thanks.  Thank your customers.  Send holiday gifts.  Thank your fellow employees (the people that made your job easier throughout the year).  Thank your boss and company.  Thank your family and friends.
• Time to train on those items that you just couldn't do throughout the year.  Read the latest literature, take required tests, learn more about your industry, read a business book or two. 
• Time to strategize your attack plan for new customers.  While everyone loves a good existing customer who places orders all the time, what would happen if that account went away.  Don't think it can't happen to you.  People change.  Circumstances change.  Relationships change.  Not everything is in your control.  What new customers will you develop to replace a possible loss.

On a personal note, please accept my thanks to all of you out there who have spent time reading these blogs.  With your readership, your comments and your participation - we make this a better place to sell.

Happy Selling and Happy Holidays.

In An Electronic World - Writing is Key

I see it everyday.  Email reigns supreme.  Instant Message is the preferred form of communication.  Web site and PDF's portray the message.  Unfortunately, in the world of sales, people still need both informal and formal written communication.  When you think about this topic, you should come to the realization that while technology has changed (and the patience of today's youth), people are still people.  Make a compelling argument in person, that's one thing.  Make a compelling argument in writing, that's something else.

As a Sales Manager, I am continously amazed at the lack of basic sales written communication.  I am presented with Executive Summarys, Project Summarys, Scopes of Work and proposal calrifications that would satisfy almost no one.  I fear this art is somewhat lost (but I have hope for the future that this skill set will return).  Bloging is an interesting medium.  Unlike an email or instant message, one is almost required to be prolific, explanatory and compelling.  After 26 blog entries, I'm just now getting used to the format.

One of the decisions I've made lately is to only hire Account Managers with a decent set of writing skills. And yes, I mean typing with all ten fingers.

Sales Engineer vs SalesPerson - What's the difference?

In my industry (Information Technology), we have something called:  "Sales Engineers."  We also have Salespeople.  In fact, there's different styles and types of Salespeople.  What's the difference between a Salesperson and a Sales Engineer?  What does a Sales Engineer do that a Salesperson doesn't?  Some people have preconceived notions as to different roles.  Here's an interesting take:  All Sales Engineers are Salespeople, but are all Salespeople Sales Engineers?  Maybe.  I'm not even sure if that's an accurate sentence.  Wait, it gets more confusing.

A Sales Engineer is supposed to be somebody who is technically saavy (maybe even certified), but also has sales chops.  Wait a minute, couldn't that be the just a technically saavy salesperson?  Where does the distinction happen?  In fact, I know some Salespeople that know more about technology than some Sales Engineers that I know.  Hmmm...still confused.

OK, I know the difference.  Sales Engineers are usually categorized as "sales support" which means that they don't carry a quota and are there to SUPPORT the Salespeople.  Right?  Well, maybe.  If a Salesperson isn't producing, does the Sales Engineer get called into the Sales Manager's office?  I don't think so.  If the sales team does well, and everyone's in the money, does the Sales Engineer get commission - usually.  Something doesn't add up, right?

If the salesperson doesn't understand the technical requirements and/or configuration of a technology sale, they rely on the Sales Engineer.  Does that mean the salesperson doesn't really need to understand the technology in the first place.  I mean, if you strip away the product knowledge from the sales process, isn't the salesperson's job reduced to building relationships and getting "their foot in the door?"  That doesn't seem right.

OK, here's another one.  If the salesperson proposes a technology solution to a customer and they messed up costing your company some real cash, they get busted - maybe even having their commission taken away.  What happens if the Sales Engineer's configuration is messed up?  Anything?  A "lesson learned."

Bummer.  I was hoping to figure this one out, but instead I'm more confused than ever.  I'll figure it out - eventually.

Losing Your Job

I like to take on tough topics and I can't think of anything tougher than having to let a salesperson go.  I'll use the word:  fired (hard to even type).  Every Sales Manager faces the inevitable fact that sooner or later he'll have to fire somebody.  In fact, after a bit of Google research, almost 75% of salespeople don't stick.  That's a pretty horrible ratio:  25% retention rate over a five year period.  As a matter of fact, this retention rate is higher than any other category of employee.  Why is this?  I'm going to go out way on the limb here and postulate the most probable reasons:

1. Sales success is hard.  There's no other way to say it.  People who clock in and out each day, without having to sell something can't begin to understand the complexity of sales success.  For most industries, sales excellence involves about a dozen skill sets, incredible time management and a specific personality type.  There's lots of average sales people, but very few real sales performers. 
2. Salespeople are typically impatient, especially in today's "instant gratification" world.  Building a successful book of business takes time and patience.  During this waiting-period, salespeople suffer from bouts of depression from lost sales and a feeling that they're just not contributing enough to their company.  This is aggravated by desire to succeed.  You have a formula for stress.
3. Sales expectations are sometimes misaligned.  For example, during the hiring process, sometimes salespeople do not fully understand the level of effort and type of effort required for success.  A good salesperson really digs deep to understand the parameters of success and should interview other salespeople that are designated to be "successful" at that employer's company.  Many of the people I've let go over the past 20 years simply failed to understand the expectations.  If they had, they probably wouldn't have accepted the job.

While every termination is different (since every person is different), there are some general guidelines for both salespeople AND sales managers.  The first thing to recognize, is that there is a typical ramping period for any salesperson.  This period usually involves a bit of a roller-coaster both from a sales activity perspective AND an emotional perspective.  Good sales managers need to be supportive of this ramping period and provide good feedback, encouragement and coaching.  Every industry is different in terms of the ramping period (mine takes over a year).

If a salesperson is failing to perform, it should be no surprise to anyone.  If you're not having weekly 1-on-1's with your sales manager - start doing it today.  The biggest mistake ever is to fail to communicate.  If you're meeting regularly together, both of you know when things are good and things are bad.  The sooner you both take action in a down-slump, the more likely you both are to benefit.  If there's a problem, it can usually be linked back to sales activity, skills or attitude.  Good salespeople should track their sales activity using a CRM tool (see my previous blog on CRM tools).  This way, if there's a problem, you can identify where it's occurring in the sales cycle. 

If things don't improve with good coaching, the salesperson needs to be put on a Performance Improvement Plan (see my previous blog on these too).  Remember that the sales manager is just as responsible for working this out as the salesperson.  If nothing helps, even the best sales managers in the world will face having to terminate a salesperson.  My advice here is:  do it sooner than later (benefits both parties); be professional and honest (this is about performance); no surprises.

More than once, I've run into ex-salespeople who worked for me and they were happy in their new lives.  Maybe they're still selling, maybe not.  We've got a job to do.  Do it ethically and to your best ability.  The rest depends on you.  Good luck.

Talking Business Impact

I recently spent a few hours with one my Account Managers discussing the topic of how to ask compelling questions to customers about their business.  We came up with an interesting methodology.  There's no magic pill here (although if there were - I'd take the Red Pill).  This is simply a new way to approach the important topic of talking business instead of copiers, real estate or advertising (or whatever it is that you sell). 

Before I get into it, let me elaborate on that last sentence.  Let's say you sell copiers.  I guarantee you that most customers are expecting you to walk into their office and start asking questions about how their business makes copies.  They might be ready for a brief question, like "Before we get started, can you tell me a little bit about your business?"  What a horrible question.  You want to know EVERYTHING about them.  In fact, the more you know, the more opportunity you'll uncover.  If you ever ask this question, I'm going to track you down.  In other words, they're expecting questions like:  How many copies do you think you make per month?  Do you have a support agreement with your existing vendor?  What kind of equipment do you have?  Are you happy with it? - These are important questions, but not nearly as important as really understanding your customer's business issues.  Everyone needs to know those kinds of things, but this doesn't demonstrate that you're really concerned about their business, nor is it compelling.  Guess what is going to happen?  You'll be lumped-in to the same category as your competitors (or simply won't get anywhere).  If you're lumped in, it's a good chance your customer will think your product/service is the same as everyone else.  If they think that, there's only one thing that's going to differentiate you:  price.  See how bad that sucks?

Here's a way to start thinking like your customer, instead of a copier salesperson (or whatever you sell):

1. Start with asking yourself, "What does this organization do, and what does their industry care about?"  This should lead you to categorizing the business.  For example, let's say they're a Realtor (it doesn't really matter here).  What do Realtor's do?  They sell houses or buildings.  What do Realtors care about (besides making money -that's too general)?  With a bit of introspection, you'll get to the meat of the matter (write it down).  Realtors care about: 1) The market;  2) How fast potential buyers can reach them; 3) How fast they move properties in and out of their sell sheet;  4) Connecting sellers and buyers.  You get it.
2. Now, take each of these "most important things" and think about the impact those things have on their business.  Ask yourself the "opposite-style question."  Something like this:  "What happens when they don't have a good handle on the market?"  "What happens if potential buyers have trouble reaching them?"  "What if properties don't get quickly moved in and out of their sell sheet?"  Answers to these questions might have multiple levels, but eventually they'll reach one of the following items:  profit, image, productivity/efficiency, safety/security.  When you get there - you're ready for step 3.
3. Think about what your product/service does that can help the business out in these specific areas.  For example, if your copier creates images that are unbelievable - this might help the realtor send a better image to prospective customers and impact those questions above.  You get it right?
4. Now, all you have to do, is start speaking this way in front of the customer and asking these type of questions rather than the other ones.  In no time, you'll be selling more - 100% true.

The PIP: Performance Improvement Plan

If you've been in sales long enough, you'll hear about the three letters you don't want associated with your name:  PIP, otherwise known as a Performance Improvement Plan.  I've heard salespeople refer to it as "the write-up of death."  As a Sales Manager, the PIP is simply a tool (used sparingly) to fully emphasize to the underperforming salesperson that things are bad and here's a road-map to make things better.

Sales best practice stipulates that the PIP should be a plan that both the salesperson and sales manager believe is realistic.  I've seen way too many PIP's that cannot possibly be realized by the salesperson.  In these cases, I really do believe that the PIP is used as a means of documentation prior to termination.  Let's face it.  If your under-performing, you have little pipeline and/or few activities, there's little chance you'll suddenly be able to do something like 25 calls a day, 3 appointments a week, 3 new proposals and $250k in sales.  These are the metrics that sales reps should have had months before so they could have worked towards these objectives.

Here's my Sales Management strategy in dealing with an under-performing sales rep:

• Upon hiring, set clear expectations (in detail) as to what sales success looks like at your company.  I'm not just talking about how much sales bookings they need, I'm referring to the activities that lead to those bookings.  Make sure you're both on the same wavelength.
• Give adequate time for the rep to pave his/her way.  Your way isn't the only way to see success.  This freedom supports creativity and gets the rep into a rhythm.  Impose requirements too soon and you'll be left with nothing but a relationship based on micro-management (which no rep enjoys).
• Sales performance can only be really understood in weekly 1-on-1s with your reps.  What's that you say?  You don't hold weekly 1-on-1 to review pipeline and activity?  Shame on you.  Shape up and do your job.  In these meetings, you'll clearly see trends both subjectively and objectively of their performance.
• When it's clear that the rep is performing, tell them so right then and there in the meeting.  Maybe expectations need to be reset.  Tell them that they must improve and be specific as to what you expect.  Follow-up with an email summarizing your meeting.
• If performance fails to appear, set a "come-to-Jesus" meeting with them.  This is formal meeting where you'll tell the rep that things aren't going well.  Tell them what they need to do to improve and this is the first place where I ask them flat out, "Are you happy here? and Do you want to Stay?"  This gives them a way out if they want one.
• If these methods don't work, it's time for a PIP.  You've already told them what you expect and this is what should be in a PIP, a realistic plan to get them back in the action.
• When you put them on a plan, they need to sign it and it needs to have strong language that if they fail to meet the metrics in the plan, it could mean a termiatnion.

In my experience I've seen a few reps actively embrace the plan, get through it, and become some of my most successful salespeople.

Done right, PIP is a tool that can be a tell-tale sign of an impending termination OR a way to dig yourself out of the hole and come up clean.