Welcome to The Pipeline.

Goodwill And Selling Now – – Sales eXecution 2570

By Tibor Shanto - tibor.shanto@sellbetter.ca 

Road to success

Goodwill: “a kindly feeling of approval and support: benevolent interest or concern”

I sales there is always talk of trust, easy to see why. But trust is not an instantaneous thing, nor can it be acquired by the pound, it has to be earned, demonstrated through actions, it needs to be reciprocal, and to the chagrin of some marketing folks, it is much more than an italicized bullet point in a brochure. Further, in sales, talk of trust brings with it an ever expanding range of opinions and advice from a number of “knowledgeable experts”.

As you would expect, the wider the range of opinions, the less likely it is that any one single source has the right, or even the “righter” answer. With trust, it is better to master a given element, learn, and build a base of success from which you can move to the next set of elements. This then becomes the iterative road should define your sales career. Unless you can definitively prove that you have figured trust, and you don’t need to evolve it further. (Hint number one, if someone claims to have the definitive answer, be suspect).

What I disagree with is the view held by some that people will not buy until a seller has established trust, or more important for sellers, that they cannot sell until they have developed trust. But since it takes time and action to establish trust, and buyers often have objectives with shorter timeframes, what do you do, especially in a quota driven reality?

The answer is Goodwill. As there is no ”Express to Trust”, think of Goodwill as the stations along the way; and great thing for you and your buyer, is that you can get sales as a result of building goodwill, avoiding the “what comes first the trust or the sale?” puzzle. We have all heard the sales expression “they don’t care how much you know until they see how much you care”; goodwill allows you to do just that.

There are myriad of ways of building goodwill with a buyer, much of it will be dictated by what you sell and your buyers objectives, another reason to implement a disciplined opportunity post-mortem routine.

As with other aspects of sales you can build goodwill if you stop doing certain things. For example, there is a leading expert, whose stuff I used to like. I say used to because every time they send out useful information, it is merely a teaser, the meaningful part is always “locked” behind a form, with a lot more detail than most forms request. While I utilize forms, there is a bunch downloads I provide to prospects that don’t require one. There are times I send prospects info and direct them right to the download, bypassing the required form. If the information is of use, I get an opportunity to engage, some goodwill, and a brick in building trust. Every time this this person writes me, I remember what a pain they are, and I score one against them.

Giving prospect access to something you normally save for clients; introducing prospects to some of your clients who could be their buyers; one company I knew had their product development folks available for a monthly Q&A for prospects the sales people selected, no selling just discussion. The choice is yours, both in terms of what and why, and the best why is it builds revenue now, and trust along the way.

Hey, if you liked what you saw here, invite me to speak at your next meeting!

What’s in Your Pipeline?
Tibor Shanto 

Micromanage Me, Please0

By Tibor Shanto - tibor.shanto@sellbetter.ca

microscope

The best way to turn a positive in to a negative is to give it a nasty name. A great example in sales is the use of the word “Micromanagement”, a favourite among those looking to shirk some responsibility and/or accountability that comes with “Active Management”. VP’s, Directors, Managers, and Front-line reps all love to throw up the Word to avoid dealing with issues and/or challenges they face but don’t like, i.e. “Active Management”.

I do want to acknowledge that real micromanagement, the wet blanket type, in the classic sense is not good (most of the time), but what a lot of people in sales label as micromanagement, is nothing more than active management. This includes real expectations, measured or tied to benchmarks and metrics. And it is usually those who fall short on the measured areas who cry “Micromanagement”.

Regardless of the title, the role of the front line manager is to lead their teams in executing the process, by leveraging and balancing activities and the coaching of their team to consistently better execute the high value activities that drive the process. Straight forward enough but not necessarily simple.

Let’s use the example of a core metric important in driving sales, one of the simplest, proposal to closing ratio. You would expect that most sales people would know their own, and that their manager would too, otherwise how could they possibly coach them. There are a host of indicators that can be used to manage activity and coach for improvement, of course as a leader you want to focus on the leading indicators.

I was interviewing a team last week, including their manager (he’s been around a while, so his title was VP, but he was a line manager), and when I asked him about some key conversion rates, he responded that he did not want to “get involved to that level, I don’t want to micromanage”. This would seem OK if they were blowing their numbers away, but that’s not why I was there. I asked what expectations are set either in terms of activities, pipeline coverage, or territory contact/coverage/penetration. And in all instances, the reply was basically that the guys are professionals, “do things their way, and don’t like to be micromanaged.” Apparently, they don’t like to exceed quota either.

When I asked about how the team was coached, the typical, “we talk every day, they call me when they have issues with a deal, and we meet once a month as a team to talk about the market.” Any coaching plans for the reps? “We do a performance management meeting every six months.”

When I spoke to the reps, I got their version of the “I don’t want to be micromanaged” routine.

Now we all know if I went back and asked them what their favourite ball player’s batting average, or RBI numbers were; or +/- in hockey, they would know it. I am willing to bet that if a ball player didn’t follow the coach’s system, they would expect the coach to get involved, and why not, just look at the success Phil Jackson was able to drive with his process, was he micromanaging? Or if someone was not producing as many goals as in previous years, they would lead the “trade them” charge. If the team was underperforming they would be calling for the coach to be fired, but not when it comes to their performance, the very same expectation would be met with the “micromanagement” cry.

Active management is a must for any professional team to continue to outperform their competitors, sales is no less a profession. You want to succeed, embrace active management.

Hey, if you liked what you saw here, invite me to speak at your next meeting!

What’s in Your Pipeline?
Tibor Shanto 

2014 Annual magazine with “Top Universities for Professional Sales Education” listing0

2014 Annual

In 2007, fewer than 30 universities had recognized sales programs. In 2014, the number has grown to close to 100, evidence of the success of sales programs in educating the next generation of sales professionals. One key factor driving that growth has to go to the good folks at the The Sales Education Foundation and their efforts in bringing attention to this overlooked faculty. In some ways it speaks to a reality that should be of great interest to companies and future professionals.

The average rate of student employment, within three months of graduation, hovers around 50%, sales programs report an average of 92%. Students from sales programs average 2.8 job offers before graduation. Add to that the fact that approximately half of all college of business graduates begin their professional careers in a sales role.

All this adds up to why you need to get a hold of and read the 2014 Annual magazine is housed on the Sales Education Foundation website, www.salesfoundation.org. The magazine includes the listing of “Top Universities for Professional Sales Education.”

As a college recruiter, hiring manager, sales organizations: you’ll find that statistics show sales graduates ramp up 50% faster and turn over 30% less than their non-sales educated peers. Partnering with a university sales programs ensures recruiters and their organizations with a pool of future top sales professionals.

If you are a student, you can research and choose a university that offers Professional Sales programs. Sales graduates report their career satisfaction at over 77%. The average starting salary for a sales representative is over $56,000.00. For those looking to pursue an undergraduate major that virtually guarantees employment, professional selling is the program of choice.

University looking to start a program, or connect with other programs, the “Top” listing provides contact information for these programs.
I had the opportunity to be introduced to the Sales Education Foundation, as a result of working with Dawn Deeter-Schmelz, Director, National Strategic Selling Institute, Kansas State University, where I had the pleasure of presenting during their Sales Week this past February.

The Sales Education Foundation’ tag line is ELEVATING THE SALES PROFESSION, something we should all get behind. Grab the Annual, get involved in make our profession an profession everyone aspires to be and improve.

Why Get Ahead Of The Buyer?0

 By Tibor Shanto - tibor.shanto@sellbetter.ca

Rear view

I recently saw an ad for a sales program, and that big bold letters enticing me to buy read: “How To Get Ahead Of Your Buyer”. While I get where they were coming from, or more accurately who they were trying to appeal to, but there was just something wrong with the way it was phrased.

I think one of the biggest challenges sales people have is not to get ahead of the buyer, it seems to me that getting ahead of the buyer is the same as “leaving the buyer behind”, a dangerous notion and more dangerous practice.

One of the key things we help sales teams accomplish with the EDGE framework is alignment with the buyer. Executing the sale in a way that keeps you engaged and in step with the buyer, leads to a number of pluses, not to mention more sales.

Alignment is key, it helps you focus and cover objectives, which then allows you to offer practical means of helping the client achieve those objectives. The idea of getting ahead of the buyer has an old school ring of pain and needs based selling.

When you rush ahead of the buyer, because you are familiar with the scenario, you’ve seen and heard it before, you tend to want to “close” too early, usually relying on old school “closing techniques”. In some ways I thought we were past this, but this ad and a recent discussion in a LinkedIn group suggest that we are not. That discussion was based on the question “What’s the best, most effective question you’ve ever asked a client?” Apparently some sales people still ask what keeps the prospect awake at night. With thinking like that, and leaving the buyer behind, sellers move to close too early in the process, you may feel you are done your discovery, but the buyer is still defining and refining their requirements. Moving to close at this stage will at worst make the buyer feel pressured, scare them to compare to others, and at best, slow down the deal, requiring a longer sales cycle, the use of more resources, and less time to spend on other opportunities.

When this happens, and other companies enter the fray, price will not only become an issue, but a central issue. What was your deal to win, now becomes your deal to buy, and there is never money in that.

The flip-side of getting ahead, is falling behind, the relationship approach, “whatever makes you happy, I’ll be here when you’re ready.” The net effect of this again is that the buyer learns whet they require, after all you are there with all the facts and didees, and when they are ready to buy, they do so from the guy asking for the order, not the one waiting.

Work with the buyer, lead the buyer, based on their objectives, your expertise as a subject matter expert, but don’t get ahead, or fall behind, manage the alignment.

What’s in Your Pipeline?
Tibor Shanto 

Sales Leaders – You Get What You Ask For – Sales eXchange 2372

By Tibor Shanto - tibor.shanto@sellbetter.ca

Money on scale

Price is a ‘big’ subject for all in sales, right from those developing product, to marketing, all in the sales organisation, and as important as any, the customer. We all have an economic and emotional involvement in it, yet it often continues to be a challenge for all in the chain.

I think one reason is the message many sales leaders send their teams, and their peers in the revenue generation process. I think in some terms, it is the mixed messages they send that confuses and leads to undesired results.

One obvious factor and lever is incentive. I keep hearing, as I have heard throughout my sales career, that incentive drives behaviour, if so why do so many companies (senior sales executives), continue to reward sales people on the price they get, rather than the profit that sales person contributes? I used to work with someone who kept insisting that companies go out of business due to lack of sales. He would never accept that in fact businesses go under due to a lack of profits. Even when I showed him that many businesses had their best revenue days when the bankruptcy trustees were holding liquidation sales.

I have fund that companies who incent their sales people based on gross profits are consistently better aligned with their reps, and achieve mutually better results. But many continue to base incentives on top line gross revenues, others on some proxy for revenue or some model of potential residual revenue stream to materialize in the future, even when the incentive is paid out now.

Sellers who are paid on revenues only, are more likely to discount, and advocate for the buyer, rather than drive mutual value. As we all know, a $500 discount on a $10,000 piece of equipment, can have little impact on what the reps gets paid, but could be a huge part of the gross or net margin.

One has to wonder why in today’s economy anyone would pay out based on top line vs. GP. One company I worked with couldn’t really tell you what their margins were, as a result they went with paying on the top line, which only compounded the issue, as they didn’t know if commissions were wiping out the last bit of profit, or… At the end of the quarter they were either profitable or not, but either way not by design. This may be an extreme example, but I don’t think it is rare.

It is not just about the company’s profits, but many who pay on GP, are able to attract and develop better sales people. Sales people who want to and sell at full value, a true win-win-win situation. The same instincts that allow sales people to choose a discount when paid on top line, drive sale reps paid on margin to deliver value for all three key parties. No value for the client, no sale, no commission; no discounts offered, because those come as much out of the seller’s pocket as the company’s. Clients don’t get gouged, because there would be no sales, no commission.

There is no doubt that switching from top line to margin payouts cause reverberations, and push back from sellers. But I am willing to bet that only from those who can’t survive on the crumbs they leave in any given deal. Sometimes you need to shake things up, thin the herd to make room for those who want to feast along with the customers and their employers.

Dear Sales Diary3

By Tibor Shanto - tibor.shanto@sellbetter.ca

Diary

Those of you have kept or keep diaries, know that one of the reasons it has such great value is not just because you open up about intimate secrets, but that you share everything, not just the good, not just the bad, but all that and everything in between. You were able to go back and relive the experience, and more often than not glean lesson and things you would do differently if you had to do them all again. You didn’t just look at what you did well, or things that turned out to be good, living up to and beyond your expectations. You looked at the bad things that happened and tried to understand how you might avoid similar things in the future. The more honest you were the more rewarding the experience. If you skewed or slanted things one way, you may feel better for a while, but reality comes creeping back in, forcing us to deal with the bad, and the gray.

Sales people and sales organization need to keep a diary of their experiences, all of them, the good, the bad, and the in between. Most already do deal reviews in some format, but many do not, either choosing to them selectively, or just enough to satisfy a KPI or ScoreCard requirement. Few do the real deep dive required in order to get the most out of it, in the process allowing both a learning and revenue improvement get away. To be clear, and as you will see further on, “deep dive” does not have to be a laborious time consuming exercise with minimal payoffs, it can and should be an ongoing process that helps you with deals you are currently involved in, while also allowing you to capture and repurpose things on the fly. Done right, it should resemble the old EDS add about building an airplane while it is flying, the opportunity for sales people and organizations, is to build a continuously better sales, even as they are executing current sales, and prospecting for their next one.

Specifically this involves reviewing all deals you were involved in, those you won, those you lost, and those which go to “no decision”. Note, if you are involved in ten to a dozen deal a month, I recommend you review all of them; if on the other hand you are involved in dozens of deals, you may want to review a representative sample. If you have 7 wins, 15 losses, and 6 no decisions, review 25%, or seven, and you will get good, executable output. But as you’ll see, even if you don’t formally review each one, you will produce usable output.

Now some of you reading this may be aware that I am the coauthor of an award winning book about Trigger Events. In that book the recommendation was that you focus your reviews to only those deals you win. This will allow you to continuously repeat those things that are consistently help you win deals. Sound thinking, to a point. Let me explain, coauthoring a book is a lesson in compromise, you give you, you learn, you take, and in the end you produce a book that reflects the learning of both. But as you move on, the hope is that both authors evolve, not limited by the required compromises, and we each continue down our path, shaped by or experiences.

Since the release of that book, my thinking has evolved to where I see focusing strictly on one segment of your activities and only one of many outcomes, brings an unnecessary level of risk to one’s sales success, regardless of which one of the three possible outcomes you focus on. Given that on average, wins make up less than half of potential deals, if for no other reason than to broaden you perspectives, you should review outcomes other than just wins.

This is why the 360 Deal View was developed. It allows you to capture relevant information about the sale, the outcome and specific contributors to that. As with most tools, it is less about the tool itself, and much more about the approach and behaviours it promotes, which in turn lead to the desired results in more repeatable, predictable and consistent ways. It allows you to evolve you selling along with the way your market and buyers evolve.

While there is no denying that you want to know exactly what you are doing that is helping you win, you want to know what unfolded on the buyer’s side that prompted them to engage, and what outside and inside factors accelerate your sales cycle or cause it to slow and stall. What were the buyer’s objectives that allowed you to gain traction, and how you were able to connect with those? All important things you want to leverage. But it would be dangerous if not naïve to not go through a similar exercise with the other outcomes, losses and “no decisions”. Two simple advantageous to knowing why you lose, first, it may just take a small adjustment to change some of the inputs that will move a loss to the won column. Second, you may discover that a segment that made sense on initial exploration made sense to pursue, based on practice does not. Looking at “no decisions” will often allow you to understand when would be the best time to reengage, and take the cycle to fruition. It will also help you detect tire kickers a lot earlier.

These will be fallouts if you only review wins, but there is no denying that focusing on just one area, will lead to tunnel vision, causing you to miss changing trends that are more evident in the other categories, and more importantly, leave you very open to be blindsided. If you rely on one set of data, you will continue to find others who fit the mold, but it does not speak to the size of a market, things can continue to look good in a shrinking market, and by the time you react, many opportunities will have been missed, and competitors will have made unnecessary gains at your expense.

Most CRM’s and related apps will allow you to do a complete all three, and even allow you to get more granular if need be. You can download our tool here, but the key to success is not the tool, but the philosophy, and more specifically the discipline of doing it in up, down, or sideways markets. Just as with a diary, the best ones were usually written in simple notebooks, not fancy specially diaries, what made them great was the depth and completeness of what was captured, and the consistency of execution.

What’s in Your Pipeline?
Tibor Shanto

The Past is an Indicator of Future Action1

By Tibor Shanto - tibor.shanto@sellbetter.ca

Confident

Sellers are taught to ask probing questions, trying to discover what the opportunities can be uncovered, where the “pain” may be that will allow us to present “the solution”, win hearts and minds of buyer, win the sale, and win  the day.  But often despite a good execution of the “probing”, the prospect pouring their guts out, the sale does not follow.  While many turn to continuing to fine tune their probing, they should instead expand their area of probing.  They need to move off pain, product, solution track, and probe around the propensity of the buyer and their organizations to change and or act.

We have all seen scenarios where despite all the right elements being in place, there is no sale.  While that is not the worst thing, what is, is when sellers then spend a disproportionate time of energy, emotion and time, trying to get the sale based on the logic of the fit.  While they can recover from the wasted effort, they cannot ever get back is the time, a real non-renewable resource.  The answer is to add a line of questioning to the lines you already use.

It starts with a simple line of questioning around their current process or means of doing something, this will you a base to work with.  From there you can explore how they have traditionally dealt with specific things, and how they have progressed over the years.  If they have remained relatively constant, upgrading only when circumstances have forced them to, you are likely dealing with someone with little or no propensity to change until it is, or close to being late.  This is not a judgement, it may work for them, but is a clear indicator of someone slow to change, and you need to diagnose and act accordingly.

On the other hand, there are those who respond to your question by presenting a series of actions they have taken in anticipation of market conditions, or maybe even to force conditions.  If the reasons for taking proactive action, is tied to a proactive view of the market, they are likely a better prospect than someone with equal “requirements” and benefit profile, but with a history of inaction.

The key here is to spend more time with the right prospects, those most likely to buy (from you).  This is not about selling to your “dream client”, after all those only exists in your sleep/dream, what this offers you is an opportunity to deal more with those where the rewards truly match your efforts.  It is the best way to avoid the rabbit hole of a good solution fit, but a buyer with a history of inaction.  We are all good at moving on when the solution is not right, this enables us to walk away when the propensity is not right, not to be fooled by the fit of the solution.

You can’t change the buyer but you can very much change your approach!

One other thing to keep in mind to execute this approach to the fullest, explore this both on a personal level of the buyer, and on a corporate level.  The individual may be willing to act, but is prevented from doing so by their companies culture and policies.  Chances are a proactive individual will have moved on to an organization that appreciate and encourages their ability, but it is never a bad thing to test things on both levels.

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What’s in Your Pipeline?
Tibor Shanto

 

What Do You Sell? – Sales eXchange 2260

By Tibor Shanto - tibor.shanto@sellbetter.ca

Objectives

Seems like a straight forward question, especially if you are in B2B sales; as easy a lay-up as possible for today’s sellers, right?  But you would be surprised how professional sales people struggle to give a meaningful or useful answer to this question, especially if you measure useful in how well it causes a potential buyer to engage and/or act.  The main reason is that most answers are still anchored in the “product”, and while they may dress it up to sound like “solutions” or other euphemisms, it is usually still beige, and really non-engaging.

Typically I ask this from all groups I work with and over 80% of the time what I hear back are very much the deliverables that their company usually delivers.  I hear hardware, software, applications, blah blah services, etc.  You usually have a few who will say “solutions”, but when pressed for what solutions, many revert back to the comfort of their product or deliverable.  This just  validates that solutions is more a buzz word that the willingness to explore the real problems the buyers is experiencing, or more importantly, what is the perceived problem preventing the buyer from achieving.  While a lot of progress has been made by some, it is still very much that sales people are a solution (defined by marketing or their value proposition) running around the country side looking for a “problem” that fits their solution, rather than being able to help the buyer achieve their objective(s).

The answer to “What do you sell” needs to directly relate to not what the buyer is buying, but what they are trying to achieve with what they buy.

Here is a simple example, assuming a hypothetical buyer need to achieve perfect and identical quarter inch holes, hundreds in multiple places and over a period of years.  When they go to the “store” they are still fixated on the ¼ inch hole, but most sales people want to talk about the drill.  All it’s features, the innovativeness of the engineers who worked on the drill, the ease of use, and the multitude of available attachments, (of which only one could potentially deliver a ¼ inch hole), and more.  The assumption is that the buyer is looking for a drill, the best drill, their drill.  But the buyer is looking for ¼ inch hole, and usually could care less if it is done with a drill, or ice pick, they need a consistent identical whole every time.  But sellers keep talking about what you can do with “it”, not what “it” will do for the buyer.

The answer to the question of what you sell needs to start with what and why the buyer is buying.  Why buyers buy is the key, they are rarely looking for a solutions, they are always looking to achieve an objective, big or small.  Those objectives are in response to perceived risk, financial gain, productivity, time gains, and role defined interests.  But this is just the start, a step many reps have taken, but it is just that a step.

I hear too many reps staying on the surface, using the above categories as complete statements.  Just listen, and you will hear many reps say things like “we deliver efficiencies to workflow, while improving productivity”.  “Our document management solutions reduce costs while enhancing productivity”.  Good starts, but one needs to go deeper to get traction, especially if you are going to try to sell to people who are not looking or have identified a “need” or felt a “pain”.  Without need or pain, the only thing all buyers have in common are objectives, which are not product or solutions based.

Think about the consistently perfect ¼ inch hole, not the perfect drill.

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What’s in Your Pipeline?
Tibor Shanto 

Changing The Cycle Of Sales Abuse – Sales eXchange 2252

By Tibor Shanto - tibor.shanto@sellbetter.ca

sales abuse

Many sales managers are in the wrong job, and for the wrong reasons, the intentions may have right, even noble, but outcome serves neither in individuals in question, the companies and customers. It is a familiar cycle, they were truly excellent reps, and consistently exceeding the most challenging quotas, liked by their peers, management and clients, and their reward was an invitation to management. Some resist the temptation, understanding that their passion is in selling and they follow that passion to their greater success for all, customers and employers. Others go into it with their eyes open, realising it will take work on their part to reinvent themselves in their new role, working at becoming as good a manager as they were a sales person. With the help and support of their companies, they grow into to their new role, and again there is broader win for everyone. But these are in the minority, a large number end up differently.

This group were good, not always great reps, they’ve around long enough, and when an opening presents itself, they are promoted to manager. Partly as a reward and recognition of their tenure, partly because senior management is impatient when there is a vacancy in the ranks, but usually not because they were best suited for sale management.

Worse, often they are not prepared or trained for sales management. In many companies they are offered “general” management training, how to administer performance reviews, sensitivity and harassment related training, etc. All important skills and knowledge for all managers, but managing a sales team, which by implication means managing a sales process, is a different and unique capability, and without that, they are only half ready.

Left alone to their own devices, the individual in question resorts to the obvious but incorrect conclusion: “They made me a manager because I was good, and they want more people like me, and so I will set out to make my newly adopted team in my image”. And that’s where the “Cycle of sales abuse” begins; or maybe continues depending on who their manager was.

I don’t mean to imply that these managers abuse their teams physically, but they do try to instill the habits they are familiar with rather than developing their team members. While changing behaviour is at the heart of changing and improving sales habits, skills and results, the most efficient way to do that is to manage the process rather than the individual. Behaviours and habits are very personal and subjective, and approached the wrong way, as often is the case with inexperienced managers. “That’s the way I did it”, makes for good stories, not good sales leadership, especially when many of these managers can’t always articulate why they succeeded, they just did.

Some organizations do invest time and resources into developing future managers with some form of high performance program, but those don’t always work as much as they hype would suggest, (imagine that), so while it’s an OK feel good exercise, it does not produce all its hyped up to be.

One overlooked opportunity is hiring professional managers, usually because of the misguided belief that you need to have product expertise to be successful. While product knowledge is important, it is easier learned than how to lead, transform and manage a sales team based on a process.

So now is the time to stop the cycle of managers trying to create mini-me’s, and embrace a better plan.

What’s in Your Pipeline?
Tibor Shanto

Clients Deal With Companies0

By Tibor Shanto - tibor.shanto@sellbetter.ca

building

We are all familiar with the battle cry of many in sales: People Buy From People.  This is all well and good (if not always true), it does not always turn out the way some expect.  Specifically for sales people who believe they have such a tight relationship with their buyers that they tend to ignore things that can cost them revenue and clients.

In a more specific way, it does not translate when it comes to sales people who think they own the account, and that the account will follow them no matter where they go.  We have seen companies hire sales reps less for their superior selling skills, and more for their “book”.  Worse we have all dealt with sales people who jump to competitors, extracting concessions in the form of bonuses, or compensation based on the fact that they will bring their book with them.  But the reality more often than not, is that most of the book stays put.

I remember reading the results of a purchasing manager’s survey, which detailed that they, purchasing managers, prefer to deal with sales people who can demonstrate that they can access and deliver their company’s broad resources.  While this may bode well for some sellers, it flies in the face of lone wolves, or those who want to be the centre of the deal, rather than the facilitator.  Sadly a high percentage of those who would barter their “book” or think they are the pied piper their clients will blindly follow.

What it also highlights is that savvy buyers will usually put more stock in the company they deal with than the person parked in the territory at the time of the deal.  Again, this is not universal, but if they see more contact from the company in forms other than the sales person, they usually see themselves as clients of the company, not the rep.  Here is a reality, they get an invoice from the company every month, if the rep is present less than that, the relationship will belong to the company.

Someone recently shared an interesting stat relating to client habits, they cited stats that showed only that only 10% of customers will actually switch when given a rate increase due to the high cost of change.  That cost does not go down if the rep switches, the considerations remain the same, if they are benefiting from the service, they will stay.  While loyalty is big, that loyalty is greater for the company than any given individual, including the sales rep.  Let’s not forget that the same people who will tell you they can bring their book, are the same ones that tell you the Status Quo rules supreme.

While people buy from people, clients deal with and stay with companies.  Clients are not lemmings, they know what is in their best interest, and stay loyal to that, and that is rarely based on one individual or relationship.

What’s in Your Pipeline?
Tibor Shanto

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