Selling Skills - Will your team have better selling skills in 2010?  Will they be able to improve their win rate?  This will be particularly important in industries with declining

     One of the greatest tragedies in business is to promote your most successful sales person only to find that they fail as a manager.  What makes this even more disheartening is that this happens way too often.  Sales people are promoted because they have performed well and management mistakenly believe that the super star sales person is also a great manager and trainer.  Too often, the great sales person doesn’t even realize what they are doing different.  They may be intuitive or just particularly committed to cold calling or business development.  It is not uncommon that the sales person doesn’t really understand what behaviors have lead to above average results.

     Being a super sales person and being a great manager often have traits that are diametrically different.  The successful sales person is usually to engage and empathetic with customers.  The really great ones are excellent listeners.  The exceptional sales manager is more analytical in that they can evaluate hoe effectively a sales person is executing their sales process and then provide concrete, specific feedback and exercises that will lead to improvement.  The listening skill that might have made them a great sales person is often a trait that enhances  success as a sales manager.  Larry King is credited with saying “I never learned anything while I was talking” and his words are well worth considering. 

     The sales manager that says, “Watch how I do it” is often using his personal skills to role model behaviors and that field experience is valuable but of only limited value.  Sales managers need to be coached to be successful.  Few football coaches are world class quarterbacks, kickers or tight ends.  The way that a coach is able to field a winning team is to be able able to assess the strengths and weaknesses of each player, to be able to diagnose the appropriate development and course of action and to be able to communicate the recommended changes in a manner that is clear and compelling.  If the sales manager is not able to change the attitudes and the behaviors of the sales team, it is questionable if the performance of the team will improve.  Think about the skill set required to change attitudes and behaviors.  That skill set may not be the same one that was able to close enough deals to get the salesperson promoted to sales manager.

     Transitioning managers to a coaching role is key to upgrading the collective results of the team.  Is the manager providing the appropriate development for the team and addressing individual needs?  Is the manager asking the right questions? Is the manager effectively listening?  Is the manager good at making accurate assessments?  Does the manager use a sales process as his playbook and work with the team to practice the process?

     The managers as coach analogy is a good one although there are many playback videos of sales people performances to assess.  Start by asking sales people specific questions:

•  What does a qualified prospect look like?
•  Who needs to be involved in the final decision that will lead to an order?
• What’s the cost to the buyer of not making a change?
• What value does the buyer/prospect see in your offering?
• How are we positioned against our competition

      The answers to these types of questions will enable the manager to make an assessment of how best to coach the sales person to success.  Increasing the overall effectiveness of the sales organization is the primary goal of the sales manager.  A sales manager that is a good coach is most likely to lead his team to greater success.

            At the conclusion of the recent Pittsburgh Steelers (American Football) game, the star player said that he “did not think he would have to wait until the fourth quarter to try to win the game.”  In essence, what he said was that his team had chances to excel earlier than the last moment, but failed to execute.     

            Either way, how will you take the information learned from this year and build plans for 2010? The lessons learned either way are valuable if applied correctly.  

A sign of how rapidly some things change is the speed in which the “New Normal” has become part of the vernacular.  With the financial system imploding in a matter of weeks in the fall of 2009, the ripples are being felt in almost every sector of life.  As a result, consumers are watching their spending, cutting back on frills and adjusting to the “New Normal”.

Most buyers in business have brought these same attitudes to work with them and in industries particularly impacted by the changes over the past year, shifts in buyer behavior are pronounced.  For sellers, some thought is required to determine what adjustments in approach may be required in working with buyers today.  Buyers will remain cautious about what they buy and when they buy it.  Many businesses are finding that their customers are highly price sensitive in this environment and buyers will be seeking price concessions from their suppliers.  Reduced quality, specifications or service is not necessarily a given with lower pricing.  A successful seller will need to be particularly adept at asking targeted questions to determine what is the optimal combination of attributes to best meet buyer needs.  Identifying and meeting critical buyer requirements will increasingly determine which seller “wins”.

While not new, the impact of the internet has accelerated the shift of power from sellers to buyers.  Vast amounts of data on sellers and their competitors is often available with a few clicks and buyers are more prepared than perhaps ever before.  This access to information has reduced the need for the buyer to be educated by sellers and consequently, the ‘spray & pray” technique is likely to result in sellers being shown to the door.  Buyers have less patience for sellers that don’t understand their needs and who haven’t done their homework in advance.  Sellers that listen to the buyer are likely to be best prepared to provide a value added solution that buyers will respond to. 

Price has become a driving factor in many transactions but ultimately performance is what elevates the seller’s ability to retain the buyer as an account.  Increasingly, buyers are presented steep discounts from desperate sellers.  There are many case studies of sellers that that offered steep discounts to win the contract at prices which were not sustainable.  The failure of many of these sellers to survive has further sensitized buyers to hedge their bets among multiple sources of supply and to be open to establishing a dialogue with prospective suppliers as back ups.

What are sellers to do?  Opportunities abound as buyers who may not have been responsive in the past are now actively listening to alternative suppliers.  Seeking a lower price is a common starting point, and sellers are commonly leading with price as a door opener.  The successful seller is one that is able to balance two competing forces:

1)                  Being in tune with existing customers to meet their needs and to be able to withstand the pressure of competing suppliers offering price concessions.

2)                  Understanding the needs of prospective buyers so that new accounts can be established by offering a sustainable combination of price and performance.

A successful seller in today’s world is one that has the skills and preparation to position their company as meeting the needs of buyers and driving value.  We welcome an opportunity to learn more about your revenue generation efforts and how Flannery Sales Systems can help you to improve the effectiveness of your sales organization.

The past year has proven to be difficult for some segments of our economy, and a series of parallel developments have forced front line sales professionals to become better at their trade. Specifically, there are 4 things happening that place buyers at a distinct advantage over sellers in many circumstances:

1-      The Internet keeps growing in scope with access to information.

2-      Buying as a dedicated profession continues to strengthen.

3-      Leverage has dried up.

4-      Competition is increasing with a cost reduction mentality.

 As a direct result of these factors, the role of the sales professional, in both front line and managerial capacities continues to be more demanding. In order to meet these challenges, sellers must be able to demonstrate value through the usage of their organization’s offerings.  

When meeting potential prospects for a first visit, some sellers do not realize how much information a prospect has obtained from the Internet. While this information may not be always accurate for what the buyer is hoping to accomplish, sellers must be prepared to conduct a conversation that provides an understanding of how a prospect runs their business today and how the capabilities they offer may help to drive value.

It used to be that the role of a “buyer” in organizations was that of a tier 2 type of employee-that is no longer the case. Buyers today are getting professional training and developing into roles that reflect in the titles “Sourcing Specialist” and “Supply Chain Manager”. These professionals are often compensated on dollars saved in their procurement role, and this may come at the mercy of unprepared salespeople.

Just two short years ago, our economy was being fueled largely by free-flowing capital markets and leverage that was utilized to fund strategic acquisitions. That scenario enabled many companies to rely on revenue increases from non-organic sources. Today, with a clamp down on capital and available credit, many companies must look inward to determine how to grow their businesses in an organic capacity with the players they have on board.

And as all these forces combine, some buyers, whether in a cost cut capacity or not, may use this environment to squeeze concessions from new and existing vendors. Some enticing competitive offers may be made to entrenched accounts held by your teams, and sellers must be ready to counter these opportunistic advances with value based answers.

How well is your team suited to face this challenging environment? Are you investing in yourself and your team to keep the pace, and as Stephen Covey would say “sharpen the saw”? If you are not proactive on how to address these scenarios with clear plans, the overall cost to your top and bottom lines may be greater than anticipated.

The key to maintaining and growing your market share in today’s economy is to go out and take customers from your competition. This means sellers must be proactively developing new revenue opportunities.  Prospecting is the hardest part of a salesperson’s job.  It is not uncommon for the task of new business development to fall on to the shoulders of the new salespeople as the more established staff are spending most of their time managing existing accounts and trying to grow their book of business through organic growth. In today’s market, all sellers must have the willingness and ability to prospect.   

One area that is commonly overlooked in new business development may be found right inside the valuable space called your existing clients. When I ask sales executives if they commonly receive or ask for referrals, most will reply “Of course”. In actuality what often times is the case is an informal or passing comment that may not yield the results you are looking for in getting a qualified prospect.

 When asking your customers for referrals, make sure that you have a clear idea of what information you are attempting to gain, and if possible have your referring party facilitate the introduction to a new prospect. Be sure that the referral includes the specific information on how your product/service was used, and what the benefit was as part of the outcome.

 Also keep in mind a “quid pro quo” ready for your referring party. What I mean by this is simple- do you have anyone in mind to refer to the person you are speaking with to help grow his or her business? What’s in it for them should be considered so that you are working on a two way street.

 In my new business development activities, I come across dozens of companies each month that may be looking for the product or service that you offer. Please let me know specifically what your target market/potential customer looks like, so I can keep you in mind. Conversely, if you know of someone who runs a company, or a sales organization, I would appreciate the opportunity to speak with them if you feel that CCS ® may assist them in some capacity.

Much has been written about how to sell and today’s post will remind us of all the common ways that sales people can kill a deal.  In short, here’s a list of “worst” practices.

1. Focusing on product instead of usage.  The focus of Customer Centric ® Selling is to have buyers focus on how to use your product or service, not what the features of product are in an unknown environment.   

2. Talking too much.  By not making the buyer feel like he is in control of the conversation, you are likely to stimulate objections.  Being patient and asking good questions will provide greater insight in what the buyer needs.  

3. Making a presentation before confirming what the buyer needs.  Avoiding the presentation of irrelevant features that will generate an objection is a major step towards keeping the conversation productive and focused.   

4. Selling to someone who can’t buy.  Entering the sales process at the user level almost guarantees a long selling cycle.   

5. Premature use of sales collateral.  Technical information too early or one size fits all type brochures are likely to focus on features.  Success stories are a better approach and they also reassure the buyer that others have successfully used your product.  

6. Focusing resources on opportunities that are not winnable.  Effective grading and evaluation of your opportunities will cause you to withdraw from situations in which your likelihood of winning is slim.  By redirecting that time and resource to other opportunities, your success will be greater.  

7. Trying to sell a buyer a product that is not a good fit.  Sometimes your product is not the best option for a customer.  If you figure this out early, you’ll save lots of time and lose little margin as those situation are usually only won after offering a sizable discount.  

8. Closing prematurely.  Understanding the buyer’s needs and the ideal time to close are keys to success.  As sellers become more experienced, they run the risk of becoming “expert deal killers” as they try to move the buying process along too quickly.  Buyers must be allowed to arrive at a buying decision and the seller needs to facilitate the process.   

 Understanding how these behaviors can blow a deal will help sales people develop the insight into how to work with buyers and become more Customer Centric. 

Many companies get caught in the trap of ending every quarter with a massive effort to make quota in the twilight hours of the quarter.  Last minute trips and deep discounts are often symptomatic of companies in this mode and margin suffers as a result.  This is a difficult cycle to get out of as the pipeline is often depleted at the beginning of the next quarter and customers are trained to wait till the end of the quarter to make buying decisions knowing that quarter end pressure will cause sellers to offer discounts.

 Getting out of this mode is not unlike trying to quit smoking.  It’s a challenge that must be confronted every day with deliberate steps and activities to change behaviors.  Here are a few best practices to utilize if your organization is affected by quarter end fire drills:

1. Grade your pipeline early and often.  If your forecasts can withstand a high level of scrutiny, you may find that early in the quarter is an excellent time to ramp up business development activities to insure that you have enough opportunities in the pipeline.  

2. Focus on winnable opportunities.  Evaluate if the items in your pipeline are long shots.  Don’t spend too much of your time or resources chasing those opportunities.  

3. Document buyer goals and then have a conversation around the value that a prospect sees in your offering. If the prospect hasn’t convinced you that there is sufficient value, why continue?  

4. Don’t allow price to be the only variable.  Don’t even offer a customer a discount until you can determine that you are the vendor of choice and that price is the only obstacle. There are other items to consider in a negotiation with as much impact.  

5. Have sales managers audit milestones.  Use rigorous criteria to insure that opportunities identified in the pipeline are realistic.  By downgrading the probability of some opportunities early in the quarter, sales people have the time to react and add new opportunities to the pipeline.  

 Quarter end fire drills are a way of life in many organizations and they are difficult to break out of.  It is incumbent on sales leadership to take the actions required to manage their destinies by doing the heavy lifting early and regularly.  By being proactive, not only will the fire drills go away, but margins are likely to improve dramatically as well.