It Is Personal0

By Tibor Shantotibor.shanto@sellbetter.ca

The Happiness of Pursuit

One questionable piece of advice sellers are given is not to take “things personally”. While I understand the sentiment behind it, encouraging sellers to not go down a dark hole, there is something wrong with telling professional sales people, in fact professionals of any type, not to take it personally. The reality is that part of successful selling is conviction, not just in your ability to add value to the buyer, but and in how you sell. It is hard to have that and not be passionate about selling, and as soon as passion is involved, it also becomes personal.

Certainly there are parts of the sales cycle that you can remove yourself somewhat from the emotions of the sale, usually during the prospecting stage, especially if you are a proactive rather than a passive prospector. When you first reach out to a potential buyer they don’t know you from Adam, and the goal is to get them engaged. Initial rejections are more situational than directed; meaning that they are not rejecting you as an individual, but what you represent, an interruption. But as you get engaged and are working through the sale, you get more emotionally involved, things do become a lot more personal.

It is that emotional involvement that often allows you to go deep with a buyer. Passion and enthusiasm are contagious, and it’s something you want your buyers to catch. After all, we are constantly reminded that people buy on emotion, then rationalize their decision, so it only helps if you are going to connect with the buyer on that level as well.

A more workable and realistic goal is to understand that you do need to get involved on a number of levels, that it does get personal, and that you need to be able to deal with and manage the outcomes whether they go your way or not. The ability to step back, assess the circumstance, and move on to the next sale. No different than the expectation and practice in professional sport.

By assessing the outcome you achieve a number of positives that help with the personal aspect. First you can evaluate how well you did execute you plan and process and understand why perhaps you lost the deal. I say perhaps, because there isn’t always a clear answer all nicely wrapped, if the result of the assessment is ambiguous, you will still have to deal with the outcome and move on.

But if the analysis of the deal and outcome are not ambiguous, then you are in a great position to learn, both what you want to repeat and to accentuate moving forward, and what to avoid and improve. While this may not take away the sting of a lost deal, it does help you benefit in some way, cope, and have a reason to give it another go with your new insight.

It is very much the emotion we bring at sellers that helps us win deals where most all other things are equal. It is precisely then that you need to go deep, and leave yourself open to disappointment, and yes it does become personal precisely because of that; and given the opportunity I would advise you to get emotionally involved and deal with the outcome win or lose. After all, they only give you the advice about it not being personal when you lose, it seems they are OK with it being personal when you win.

What’s in Your Pipeline?
Tibor Shanto

Can You Switch Hit For Sales Success?4

By Tibor Shantotibor.shanto@sellbetter.ca

Switch hitter

I remember when I first started working for a company back in the early 1990’s (before we had web mail), the company had two main product lines, and had the usual territories across the continent, primarily driven by geography.   Each territory had two hunters, one for each product, two account development/management (AD) people, again one for each product, and an administrative person, all supported by a central customer care group, as to not overwork the front line folks.  The flow was simple, the hunter was in charge of finding and landing accounts, they would then hand off the account to the AD, who would work on maintaining and growing the account.  No one ever had to move out of their comfort zone, mine was hunting.

As the competition heated up, and costs had to be cut to maintain operating margins, the two teams were collapsed into one that handled both product lines, there was still a clear line between hunting and development of accounts.  While we had to learn a bit about the new product, we were still left in our functional comfort zones.

As in most similar scenarios, the hunter was always in a better position to earn more.  I am not saying that hunters were or are more important than the AD role, the fact was, that there were less qualified hunters than AD types, and this is still so now.

The next round of cuts was a bit more drastic for almost all involved.  Administrative resources were reduced, and more significantly, they collapsed the two roles into one, no more hunters and AD’s, just one person who had to execute both functions.  In some territories the hunter had to learn how to actually manage and develop the accounts they brought on; and the AD’s had to learn to hunt and bring on the accounts they were going to work on growing and retaining.   Since the company had a union to deal with, (yes I know, sales and unions, what a concept, nonetheless), the choice of who stayed and who left was not always made based on abilities and potential.  Many of those who remained were AD types who had to learn how to hunt, in most instances, a much bigger ask than the other way around.  At the same time it turned out that some of the hunter role were in fact “closet account developers”, and gravitated to the AD side of the job, increasing the value of real hunters even more.

To be clear, I am not saying that hunters are naturally better rounded, and are able to easily become good or even adequate AD’s, I was living proof that this was not the case, but hunting was a better cover for AD skill deficiencies; where as you can be a great AD, but if an account leaves for factors beyond your control, and you can’t hunt, you will be in a difficult hole.

As you would expect there were a number of reactions, outcomes and repercussions to the new reality, about 20% – 25% floundered and struggled, and eventually were replaced.  At the other end of the spectrum, about 20% or so, turned out to be natural switch hitters, not losing a stride in the transition, relishing the new found opportunities in the job and the rewards.  They stepped back, reformulated their action plan and then marched forward as if nothing had changed.

A large majority 55% – 60% worked diligently at developing the “other” skill, and over time found the required balance, but as you would expect things were usually skewed towards their original skill set and comfort zone, but they were able to generate both organic growth and new account growth.  No surprise the hunters had just as hard a time, if not harder, in developing their AD skills, than AD’s had in developing enough hunting skills to make sales happen.  What was interesting is that in the end both groups leaned more on improved hunting than improved maintenance skills.

Again this is not to say that being an AD does not require skills, is easy or any other “better/worse” comparison, but does speak to the fact that getting to the right person to have the right conversation with, is still the biggest challenge in sales.  Most sales people I speak to, be they traditional sellers, social sellers, or other, tell me something along the lines of “get me in front of the right prospect, and I will close them”; and they probably will.  But the ability to find and engage with the right person, and then talk about the right things, those things that will lead to real engagement, is a rarer skill, but one that can be learned and with practice, and mastered.  Those that do, are your switch hitters, they can deliver revenue in by succeeding in both cases, prospecting and selling.  The difference between baseball and the revenue game, is you need to do both to succeed, you need to be a switch hitter.

Since then sales teams have continued to contract, sales goals have continued to grow, as has the number of sales people who almost, but don’t always make goal.  These are the group of sellers I call the “80-90 Percenters”; year after year they deliver 80% to 90% of plan, and when you strip back the layers, most often you’ll find that they are great at growing their base, but not as good at finding, engaging with and brining on new clients.  Their new business growth is usually from referrals, or people who are like people who have already bought from them.  Again, nothing wrong with the thinking or reality, just the lack of consistently delivering against plan.

In today’s market there are a number of parallels; a specific one can be found in those industries that are making the transition from selling products, to managed services.  You see this trend in any number of industries, from copiers to managed print service; break fix to managed it services; in transport from loads or lanes to managed freight services; really, in any industry where before you sold “stuff”, “stuff” that is becoming commoditised, to selling a complete service that allows clients to reduce costs while allowing you to grow, both products sold and the services around them, while locking in revenue streams and locking out competitors.

Product sellers need to learn to switch hit and hunt not only in new jungles, but for prey they have not encountered before, a prey that is smarter, more demanding and usually less accessible.  The prey speaks a different language and have entirely different set of objectives and expectations than the people they used to sell “stuff” to, or account they maintained.  Further, the new prey does very much have to be hunted, they are not out there declaring their readiness or willingness to buy, they are the Status Quo, doing their thing deep in the jungle where only hunters go and maintainers and posers avoid.  Selling to the willing will leave them short unless they step up and learn to hunt a bit more, learn to switch hit.

Hunting in this environment requires skills upgrades whether you are coming from an AD background, or have successfully hunted while selling products, “stuff”.  Unless you take the time and make the effort to become a true switch hitter, you are bound to the beige of the “80-90 Percenters”

What’s in Your Pipeline?
Tibor Shanto

 

 

Short Cuts – Do it Now or Do it Later0

By Tibor Shanto – tibor.shanto@sellbetter.ca

Short cut

The pressure of time, or more specifically, a lack of time, for sales professionals continues to build for sales professionals.   Sales people often ask me for ways to achieve something by skipping steps or finding short cuts for critical steps of the cycle.  Especial when there are specific things that have to be executed in one stage of the cycle/process before you can move to the next; some may not seem important at the time, but are fundamental to a successful sale, and there is no escaping them.  In some ways in sales it is very much like the old Fram commercial, you can do it now, or you can do it later.

In an environment of declining resources and increased demands and expectations, utilization of time continues to grow as one of the most critical skills for successful sellers. Given the choice between someone who is a good seller or a good user of time, give me the time skilled individual any day.  Doesn’t matter how good you are, if you can’t get around to using the skill. Notice I have avoided the term “time management”, because it is never about managing time, but about how we choose to allocate and use time for critical activities; activities are what need to be managed.  In most instances, with all things being equal, it is more likely that you miss deals because you ran out of time, rather than running out of skills.

With all the pressure growing each hour and day into the depleting selling year, it is not a surprise that sellers are always seeking short cuts, or tips to reduce time.  While I understand what’s driving the desire, I would caution you to focus on the objective and desired outcome(s).  Better to look at a sale as an exercise in building.  You need to build a solid foundation before you erect the house on top.  If you rush things, opt for a short cut and start before the foundation is dry, you’re going to have to go back and do it again, do it right, which will cost time, resources and money.

One example is the propensity to present proposal way too soon, long before key facts are uncovered.  I know sellers face tremendous pressure, especially when others are willing to submit at the drop of a hat, but in the end, a bad proposal is a bad proposal no matter how fast you get it in, which why so many come down to price, no foundation.

I was taught that there are five things that have to be in place in order for a proposal to be properly underpinned and solid.  Sure I can submit with only four, but more times than not, I have to go back and resell that missed portion or the whole thing.  Slowing me and the sale down, if not risking it all together.  Again, I know there is pressure, and the other guy is in, but I am will to bet they usually win on price not based on value or the merit of the product or proposal.

The problem with short cuts in sales, is the same as the oil filter, you can do it right the first time, or you can do it later.  Problem with later is that it ends up sucking up more time, money and nerves.

What’s in Your Pipeline?
Tibor Shanto

What’s Improving – Your Sales OR Orders?2

By Tibor Shantotibor.shanto@sellbetter.ca

Bubbling up

As the economy continues to show hints of progress, and business picks up, it is important to understand the nature of the improvements in sales you and your company experience. Taking into account the old adage “all boats rise with the tide”, you need to be able to discern where your growth is coming from.  Is it from increased sales, or just an increase in orders due to an improving economic environment; and yes Sunshine, there is a difference, much like the difference between sales professionals and order takers.

More than ever, having a defined sales process, with supporting metrics is a must. Without that, you may easily mistake increased revenues with improved sales or selling, when in reality the improvement may be organic.  Increased demand, leading to an uptick in orders or improved selling, the two are very different, but often mistaken.

In fact, this is one of the risks of relying strictly on a single lagging indicator – Revenues, rather than a mix of leading and lagging indicators.  In many ways you can look at it the way investors look at interest rates paid on fixed income instruments, where they back out the rate of inflation from the total rate they receive from an instrument to arrive at the real rate.  Think of the organic increase in orders as inflation, and the real rate as YOUR ability to sell more or better in a given market.  All sellers benefit from a rise in demand, only those who focus on selling will grow sales beyond the herd, and get more than their share of growth.  Increased market share is always a good thing.

To avoid being caught, you need understand your intra-sale conversion rates, understanding if in fact you are doing a better job of converting leads to prospects, prospects to proposals and proposals to wins.  By measuring these and other critical points you will know if you are just benefiting from an increase in demand – more leads, or ability to convert those leads.  If you have a 4:1 lead to prospect rate, then it goes without saying that you’ll have more sales from six leads than 4, 1.5 sales vs. 1.  But if your sales and selling skills improve, and you can move to a 3:1 ratio, you’ll sell proportionally more.  This is important in down markets too, but people get fooled in up markets when the wind is in their sails.

Once you understand these measures, you can set goals for theses (or other) conversions from stage to stage, and benefit from the compounding effect, and increase both real and organic sales.  With goals and metrics in place, it is much easier to develop and Execute a tactical plan, you will be in a position to adjust or change your model to ensure continuous growth and skills improvements.

Not knowing can create more than false comfort, it could lead you to make wrong decisions, and by the time you realize, you may be left too far behind the competition.

What’s In Your Pipeline?
Tibor Shanto

Inventory Clearance B2B Style0

By Tibor Shanto – tibor.shanto@sellbetter.ca
Clearnce

This time of year is an interesting time for the retail trade.  As memories of the holiday season begin to fade and the last of the Boxing Day (week, month) sales come to a close, retailers begin another annual ritual, the “Inventory Clearance Sale”.  Makes sense, retailers want to clear old and non-selling inventory, freeing up cash, so they can reinvest it in more profitable inventory. In the process the can also open up shelf and storage space, again to make way for newer more salable goods; not so much out with the old in with the new, more like out with lower potential goods and in with better margin and turnover potential.

There are some lessons here for B2B sales people as well.  Consider your pipeline as your inventory of prospects and opportunities, add to that the notion of time representing your shelf space, both finite, both needing active management.  As such, applying the concept of inventory clearance could be very beneficial for B2B sellers.

When you look at your inventory of prospects, the reality is that no matter how much potential they had when you first decided to carry them, over time and as a result of a number of factors, the likelihood of that inventory turning over changes, usually diminishes, often to a point where they have a negative impact on your pipeline and success.  Prospects are similar, in as much that some will close, many more don’t.  Either way they need to be removed from the pipeline, or else you can’t bring in new inventory.

This is why sales people need to develop rules for purging their pipeline of bad prospects.  Sales people hang on to bad inventory, many look at their pipelines emotionally, the fuller they perceive their pipeline to be, the lesser the propensity to prospect for new opportunities, fresh inventory, confusing a lot of inventory with quality salable inventory.

Bringing shelf space into this in the form of time, you can begin to remove bad inventory before it hit “best by date”.  Prospects and opportunities time out, if 80% of your sales close in 75 days, what’s the point in keeping it in the pipeline on day 121; if 80% of the time you can complete the Discovery stage in 3 weeks, should you really continue the Discovery into its 10th week?

It is important to remember that these concepts also apply to your account base, not just prospects.  How many low margin accounts are using up resources that if applied to other accounts or new ones would make for better revenues, margins and all around customers.  Putting those accounts on the clearance list would allow you to achieve more, be happier, and probably have a better attitude towards new opportunities.

Clearing out bad inventory, be they clients or prospects, should be an ongoing process throughout the year, but even for where it is not year-round, doing it at least once a year, at the start of the year, can bring immediate and yearlong benefits.  So good ahead, develop your policies, and hold that “Inventory Clearance”

The Art of Sales Contest Winners!

Congratulations to:
Kristin Geenty and Alan Hart, they are the winners of the tickets to the Art Of Sales, in Toronto next Tuesday January 29.

Enjoy and profit!

What’s in Your Pipeline?
Tibor Shanto

 

 

Compounding Your Sales Successes40

One of the greatest things invented by the financial service industry was “Compound Interest“.  Save for the fact that no one is paying much interest on money these days, the reality of Compound Interest still holds and delivers added gain regardless of how low of high rates are.  I was watching a teacher explain the concept to a grade 5 class, and he brought it down to “a little to start, a little from here, a little from there, and over time you end up with more than straight interest”.

As you assess your plan for sales success in 2013, you can take advantage of “Compounding” to achieve greater success. Rather than resolving to do new things in new ways in 2013, why not resolve to improve a little here and a little there with things you already do or need to do; but do it in a way that ends up being greater than the individual gains on your efforts.

Read On…

What’s in Your Pipeline?
Tibor Shanto

Standard Not Stagnant41

The great thing about sales is that every day is different, bringing new challenges, or familiar challenges with new wrinkles, testing your skills and agility.  This constant change directly impacts both sales people, their sales organization, and by extension their sales process.  Some organizations dodge this by not having a process, allowing their sales people to rely on their “creativity” or god given skills to deliver the numbers.  One of the risks with this approach is not knowing the quality of their execution efforts until after the numbers are in; in other words, after the fact, and after they can do anything to change the outcome.  Given the stats on the level of success of many sales organizations and individuals, it is clear that having a defined and standardized sales process is crucial to success even for companies selling the most basic products.

Read On…

What’s in Your Pipeline?
Tibor Shanto

Selling Like Greece!30

Every morning the financial pundits stick their finger in the air, and tell us how things are looking in Europe, and the Greek crisis, then they parade a series of talking heads to support the daily view. Things look good, markets rally; things look bad, markets tank. Many sales people start their day watching these pundits on say CNBC, or on their favourite app, but fail to take away the clear and real lesson that could help them sell better and more. As a result, they end up selling like Greece.

When you boil it down, the “crisis” (real, manufactured, or imagined), boils down to a simple thing, exemplified best, (or worst) by Greece, a country that simply does not have enough money to deliver against their obligations. Yes I know this may terribly over simplify things but after all I am a pundit of sorts, and as such at the very least I have an agenda to promote; Greece just does not produce enough revenue to meet their obligation; add the contagion factor, and you have a snap shot of Europe and their crisis.

Read On…

What’s in Your Pipeline?
Tibor Shanto

Z to A – Sales eXchange 17042

Today I have a bunch of things to do, so we’ll make things short, sweet and to the point, I need to prioritize and maximize my time.  Coincidentally, the point of the post is about improving the results of your prioritization process, extending the return on effort.

We have all heard the expression “practice makes perfect”, there is no debate that doing something repeatedly, will help you do it better if not perfect.  This is great as long as you are doing the right thing, or doing something the right way; perfecting a bad practice is not that good no matter how perfect you make it.

Forget for a moment how you prioritize your target competitive accounts, there are a number of methods you can use to make sure you are pursuing the right opportunities, based on your specific criteria and measures.  It is what happens once that list is complete that I want to focus on.  Change this one thing now, and you’ll close the year strong and set yourself up for 2013.

10% of sellers, will take the resulting list, put their Amazing Kreskin hat on, and proceed to second guess their work, and divine using their mystic powers who they should call, in reality who they should not call, and why, amazing powers I’ve yet to master; but I have made my numbers, where many of these psychic sellers do not.

Another 15% – 20%, will do the right thing, and pursue the best opportunities first; start with the A’s,  B’s second, and C’s last.  Apportioning 50% of their prospecting time to the A’s, B’s 30%, C’s 20%.  Some will add a filter to make sure that the A’s represent the highest value, and greatest probability for closing.

The rest of the sellers will hit the list in alphabetical order, the way they are spit out is the way they will work the list.  I am not going to change that here, but let me make a suggestion, start at the back of the list, start with the Z’s, they have never been called.  Here is why, regardless of what people will tell you, activity does lead to interaction, interaction leads to prospects, prospects lead to sales; and all these things require time and your focus.

As people hit the list, improve their approach, they do get better with practice, which means as they get past the letter A and B, their prospecting is getting better, by the time they get to E, they are in a groove, and getting more traction.  By the time they get past G, they have opportunities in their pipeline, they have real things to keep them busy, and they have success.  And what happens to most sales people when they get some customers?  They stop prospecting and “look after the customer”.  As a result, the companies at the end of the alphabet have a very small percentage of sellers calling them.

Go ahead, give them a call, surprise them and yourself.

What’s in Your Pipeline?
Tibor Shanto

Pipeline Vs. Opportunity Review – Sales eXchange 169128

Some things in sales can be called by various names without much consequence, the underlying subject being very much the same, prospect – potential buyer, information gathering – discovery, and many others; it comes down to words not actions or outcomes.  In other cases the semantics are very important, and cannot be simply interchanged for convenience.  A stellar example of this is the confusion between pipeline reviews and opportunity reviews.  They are not the same, you can equate a pipeline with a funnel and funnel review, it is not the same as an opportunity review, and pretending they are will cost you time and money.

For me both type of reviews are important, in many sales organizations necessary, and if not done right, or just plain not done, could have big consequences.  One of the biggest is lack of engagements by the reps, many having spent countless tedious and unproductive hours in some of these meetings, simply stop taking them seriously, a disengagement that has big negative impact on success.

A pipeline review is a snapshot of the state of the pipeline and the directly contributing factors, usually activity.  Regardless of how you look at your pipeline or funnel, it is likely to have a minimal number of clear stages or sections.  Lead – Prospects – Pre-Proposal – Proposal – Initial (verbal) Agreement – Won Business (Closed).  A pipeline review just needs to look at the opportunities at each stage – are they real, next steps, and volume based on the individual rep’s documented conversion rates.  Are there enough leads to sustain the subsequent stages, and is the rep focused on the right activities.  Reviewing this in a brief efficient, and frequent fashion, leads to continuous movement of the right things through the pipeline or down the funnel.  You can do this review in as little as five minutes per rep, if you have 8 reps, you can be done and wiser in 40 minutes.  If you have a large volume of deals you can cut it back to a more than significant representative sample that will ensure short and snappy meetings.  These pipeline reviews should be done as a group, and in my opinion weekly, you don’t all need to be in the same room, and with today’s technology can be done from anywhere, including the parking lot of your next appointment.

An opportunity review is much more, and could involve a heavy dose of coaching, as such the first difference is that these are done individually with each rep, and therefore not as frequently, not more than once a month.  In this meeting you review each opportunity, how the rep arrived at where they are, strategies on what to do next, and develop a specific action plan.  This where the coaching is key, using the review not only to impact the outcome, but to directly impact how your reps can sell better using a real live scenario as a springboard.  Helping the reps to not only widen their view of the deal, but others like it.  It is an occasion to examine why some opportunities died, and why specifically some were one, or did not take a decision.

Trying to cram both into one meeting is useless, and typifies the KPI mentality many bring to the process, “did it, I can check it off the list”.  They conduct these meetings neither to help their reps, or to understand the state of their pipeline (all their reps’ pipelines rolled up to one), they do it as a CYA exercise.  Usually because they have to go into to a meeting with their seniors, and want to be in a position to answer questions they anticipate.  If they were to conduct both types of meeting separately, ensuring they achieve what they need to from each meeting they would be way ahead.  They would be in a position to directly influence the outcome of their reps activities, and by extension the outcome of the meeting with their reps and results presented.  They would also be in a stronger position going into the meetings with their superiors, not only answering anticipated questions, but presenting in a way and with content that would negate the questions and focus on results.

What’s in Your Pipeline?
Tibor Shanto

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