Tag: performance

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Leads Sales Advice Sales Basics

How to Build a Sales Pipeline

I was asked this question recently and thought I would try to answer in this post.  As simple and easy as it sounds, some intricacies need to be worked out before you ever begin.  My last article, “Cold Calling is Dead-Or Is It?” addresses an old method of simply picking up the phone and dialing.  Not much in that thought process! Nor, much success!

The trick (or secret) is to use your time wisely to build as big a sales pipeline in the shortest amount of time.  After all, the clock is ticking and the sooner you get a score on the board, the easier it is to garner some breathing room.  So where do you start if you have what is considered a fairly greenfield territory? Or your company’s presence has been minor?

You start with a collaborative meeting with your sales manager and the lead generation support (I talk more about this further down) Work with marketing to get awareness and interest in your area.  If you do not have any marketing effort at your disposal, your job is going to be a bit tough.  At the very least, you will have a sales manager, and between the both of you, you need to understand your target market, and how best to segment that market.

Building your pipeline is a bit like asking someone how to paint a picture.  You are going to get several different answers and many methods. I have seen this question asked in an interview.  It is unfair to ask someone without first establishing the premise for the question because it can have many different answers and none of them wrong.  Usually the person asking is looking for the same answer that is in their head so answering it differently does not make it wrong, just different.  Unfortunately, some interviewers do not see it that way.  That is why I think you need to understand from a collaborative view, what management is thinking and form your strategy and tactics from there.  There is not really a wrong or right answer because it can go both ways depending on the end objective.

You have to ask yourself two questions: Am I looking for numbers or am I looking for qualified numbers?  Let’s assume the latter. Qualified leads are the life-source of every company.  Why?  These leads have had a positive response from a potential customer.  If handled correctly, they turn into sales.  Lead nurturing is an absolute necessity to keep this potential opportunity from dying on the vine or your competition to swoop in and steal this right from under your nose.
Earlier I spoke of lead generation. Regardless of the size of a company, lead generation and nurturing is a requirement; period.  Your field sales force needs to be closing sales, not seeking qualified leads.  This role is one of the most overlooked, yet one of the most vital position for supporting a field-based sales force.  When you ramp-up your sales force, place serious importance on how this team is going to be getting their leads.  Do you know why companies always have a ramp up time?  Partly because of the training, but mostly because of the time to get there territory in order.

I realize there are other methods, but these really just lend themselves to the efforts of a dedicated lead generation machine.  Personal leads, contacts, and luck all are good, but a coordinated marketing and lead generation plan should be an integral part of sales.

If you find this useful, Contact Me or better yet, leave a comment. If you have a Twitter account and found this article useful, it would be much appreciated if you would retweet this with the tool at the beginning of the article!

Happy Selling!

Ed Warner

Categories
Experience Sales Advice Uncategorized

Is Your Sales Forecast Inaccurate?

A few years back, I worked for a company that spent more money, time, and effort on sales forecast accuracy than what most companies pay in corporate taxes.  There was a complete department that had 3 permanent employees and at any given time 2 temporaries.  Why the expense?  While most would say spending this amount of money was ludicrous, this company’s accuracy in sales forecasting was 8%.  At the time, this was phenomenal compared to other companies in the same industry.

In later years, I worked for a Fortune 500 company that demanded 4% forecasting accuracy.  Moreover, they got it too!  Being a public company, how the street loved them!

So why are most companies lacking in their accuracy?  I think it comes down to a couple of things.

  1. Pressure to make a number that executives have not been realistic in obtaining.
  2. Not getting input from the rank and file members of the salesforce.

Too often, I have seen front line managers take numbers, pad them, then pass them upstairs.  No two ways about it, this is just plain wrong.  I think this is unethical because it is now forcing a quota number on someone that was not involved in the planning process.  Crazy idea, but how about getting people responsible for what they were hired to do, generate revenue. When you get the by-in from the sales force, it now becomes a point of pride and ownership.  No salesperson I have ever worked with wants to tell their manager they won’t be making their forecast.

Despite loads of money spent on CRM and SFA tools and software, along with hours of time dedicated to reviewing the forecast, it is still way out of line.  Why?  In all my years in sales, I have never seen a company do a detailed analysis on a territory other than do say “it did $$$ last year and we expect $$$ this year”.  What does this say about the coming year, or the next?  Nothing, absolutely nothing. When a new sales person starts a territory, unless a detailed analysis has been done, how can a quota be set and handed to them with an honest expectation of meeting that quota?

The fundamental flaw in all forecasting is that we are asking the wrong questions.  It does no good to set-up a sales rep for failure from the very beginning by overestimating the territory.  This is like having no target; you are going to hit it every time.

When salespeople, especially those who are behind are asked to update the forecast, are you really expecting accuracy? Organizations are kidding themselves if they do.  The opposite end of the spectrum has the top reps ‘sandbagging’ or understating their pipeline.  The point is, if done correctly, the accuracy is built from the ground up with everyone’s acceptance, and no one has to be double checking numbers.

If this sounds familiar in your company try these:

  • Collaborate with the sales force to get ownership of the quota.  Supply detailed supporting data so that informed decisions can be made; not what you want to be made. Managers need to remove the pressure from the process.  If you do not, the resulting forecast is no more than a subjective and inaccurate piece of paper.
  • Quarterly reviews are worthless.  The process of review needs to be ongoing and management updated weekly.  Clearly establish grading milestones for pipeline deals over a certain amount.  Once they reach a percentage level towards close, do an overall review.
  • Have an agreement between the salesperson and the customer that qualifies all key measures, conversations and meetings.  The process that outlines the due diligence necessary to lead to the ultimate ‘yes’ or ‘no.’  In most cases, any verbal agreement ambiguity from either side removed and now put into writing.  Both parties now share and understand with crystal clarity. Every step the customer adds and agrees to adds to the next level of accuracy to the forecast.

Hope you find this useful. Please let me know by leaving a comment. If you have a Twitter account and found this article useful, it would be much appreciated if you would retweet this at the beginning of the article!

Happy Selling!

Ed Warner

Categories
Experience Sales Advice

How Desperate Are You?–Part 1

It has been said desperate people do desperate things. As a sales professional, do you?  Let’s try something…Close your eyes and recall this image from your past:  Remember seeing ducks just smoothly gliding on top of the water? Pretty relaxing right?  However, did you stop to think about what is going on underneath?  It could not be more chaotic;  with the constant churning and paddling to make the gliding possible.

This can even be an illusionist’s trick, and one you as a sales person must master.  In trying to close or negotiate a deal, frustration will always be part of the mix.  How you deal with the frustration is how the tempo of your close will go.  Clients do not like to be rushed, but they do need to be prodded sometimes.

In order to keep things gliding smoothly along without showing any level of frustration, you must be constantly paddling, though you don’t have to be going at a constant 0-100 break-neck speed all the time.  The one thing all salespeople see themselves at a disadvantage over, is time.  In fact, some consider it a liability and this can lead to desperation.  I completely disagree with those that do;  but only if it is accompanied by a plan of attack.  In other words, if you don’t have a plan, it is a liability, a big one!  One thing I am adamant about is having a plan. I wrote this article about the benefits of having a game plan.

Time is a liability if you don’t have a plan. This is because when you enter into the negotiation stage and you are pressed to make your numbers,  you will be at an instant disadvantage. The moment you view this as a liability in your sales cycle is the moment you just gave the upper hand to your buyer (client).  When you become desperate in your dealings with customers, it comes through loud and clear on their end.  Once the genie is out of the bottle, it is twice as difficult to stuff it back in.

So how do you keep from coming off as being or sounding desperate?  Here are a few items that work, but keep in mind that for most sales people these concepts are extremely foreign and difficult to grasp. So much so,  I wager that only 3 in 10 sales people reading this article will really understand the concept.  That’s ok, this is more for the managers in the audience.  Nevertheless, if you want to reach the level of your manager you will need to be a little more open-minded and grasp these concepts.  I’m not asking you to endorse them,  just understand them.  So here are some things to try:

  • Build a plan that is inclusive of the buying process of your customer.  This replaces trying to accelerate the process in order to make your numbers.  Did I mention to make a plan? This allows you to forecast the closure date accurately.
  • Time sensitive sales closures should be tied back to cause and effect and the consequences for inaction.
  • Manage your tunnel digging before you have to use it.  The closer you get to final negotiations, people become less talkative.  This is not the time to be trying to reach the approvers.  This should have already been done early in the sales process.  Doing it now makes you look desperate.

I will end part 1 with this:  You must ooze confidence from the moment you first meet the client all the way to the end.  A keen negotiator will look for any kink in your armor.  Remember the duck;  paddle like heck, but glide smoothly.

I will follow-up with Part 2 and cover some additional techniques that will enable you to project the confidence necessary to reach the levels of attainment meant for the very elite of the sale force!

If you find this useful, Contact Me or please leave a comment. If you have a Twitter account and found this article useful, it would be much appreciated if you would retweet this at the beginning of the article!

Happy Selling!

Ed Warner

Categories
Sales Advice Sales Basics Sales Tips

The 4th Quarter and Beyond

It’s here folks, do-or-die time for those on the calendar sales cycle! Are you ready?

Right about now people up and down a sales organization’s chain are either confident or extremely worried about the approaching end of quarter (EOQ). No doubt, it has been a tough, tough year and it isn’t over yet, so don’t give up the ship just yet. There are some things you can do and some things you can’t.

Having one or more deals that seems to be stuck in the pipeline is one of the most frustrating situations a salesperson can encounter, and even more so as the year-end looms closer. One of the things you cannot do is BEGIN the selling process in hopes of getting closure by December 31. The exception to this is the transactional or commodity sale, but this isn’t guaranteed either. So What Can You Do?

Assuming you are still holding a live close, you can and must turn up the heat. But how?

    • Go back to your internal coach or advocate and ask
    • Decision maker relationships are key here; What are they waiting for? What is crucial to them?
    • Sales management can help; ASK!

Holding out could just be the company’s way of negotiating. Turn this around and re-negotiate, but before you do, make absolutely sure your tactic will make a difference.

Here is a graph I share with salespeople that explains very simply where ANY action takes place; in ANY organization. I share that with you now.  Presentation1(Click for a bigger image) Using this simple graph, you can add a tick marks and pretty accurately track the closure time of the deal.

Don’t get wrapped up in emotion and be pressured to make concessions you later regret. I am a firm believer in NO unilateral concessions. If your prospect wants to play this type of ballgame, then request something from them that has value to your company, like access to the CIO, CFO or any other officer that would benefit your company and gain a deeper business relationship.

After doing all this, the deal still may slip into the next year. It happens. Especially in this economy.

Ok you are wondering about the “Beyond” part from the article title. As I stated before, some deals are going to slip into the next quarter. Here and now is where you want to begin planning for the coming quarter even if you have no idea about your quota, territory, etc. Begin planning with the thought of moving some of your customers into the top tier of your account list. In my last article, So You Wanna Be the CEO I explain how this can be accomplished. Additionally, I have another article, 5 Tips to Practice Daily that explains the refocusing of your efforts towards the top percentage of your customer base. TPresentation2he following picture illustrates what your goal should be, achieving the top level of this pyramid. Once you reach this pinnacle, the customer sees you as golden. Word of caution; rarely is this level obtained in the eyes of the customer.

If you find this useful, Contact Me or please leave a comment. If you have a Twitter account and found this article useful, it would be much appreciated if you would retweet this at the beginning of the article!

Happy Selling!

Ed Warner

Categories
Experience Sales Advice

Motivation and Sales Performance

Poor sales performance is often mistaken for a motivational issue.  A fine line exists between the two and unless you are an astute manager, you are going to miss the mark. image11

We first need to understand 5 myths of motivation. These are generally agreed upon as being the biggest culprits.

  1. Money as a motivator –if, as a manager, you believe this sits atop the list of motivators, seriously consider a refresher course in motivational management. Paying someone a hefty bonus will get the job done– but only short-term. This will be short-lived as the motivation wears off. Within itself, money has no sustaining power.
  2. Some people cannot be motivated –this unfortunately is a very common belief. Everyone, let me say it again, EVERYONE can be, and is motivated by something. What motivates one person does not necessarily motivate others. It is the manager’s job to know what motivates his team on an individual basis. As a manager, you need to match the motivators with the job responsibilities.
  3. People are happy and grateful to work here –not everyone is happy to work for your company and not everyone is grateful to be there. Assuming this attitude, as a manager, will just about guarantee you will lose your top [sales] talent. Non-engagement management usually accompanies this myth. You have to challenge, recognize and reward your team. The only way to be effective is by engaging your employees one-on-one.
  4. Believing you can motivate –no, no, no, you cannot and never will be able to motivate anyone, and neither can I. They must motivate themselves. Managers must find the factor(s) of motivation for each sales member as well as the environment that will enable employees to motivate themselves.
  5. Fear and intimidation motivate –for about 2 seconds! Beyond that, sales people begin to search for other positions. Unbelievably, some still manage by this course of action. Fear tears down any bridge of trust and cooperation between you and your team. It is a short-term compliance mechanism that breeds resentment. When you need to count on your sales team they will not be there for you!

Next are three perspectives (theories) on motivation directly related to employee performance. There are others, but I feel these to be most relevant. image12

  1. Expectancy theory suggests people are motivated to perform if they believe that their effort will result in high performance, that this performance will be highly rewarded.
  2. Equity theory is based on how fairly an employee perceives they are rewarded according to their contribution. If they are rewarded equally as compared to their fellow peers, then they judge they are being treated equally.
  3. Reinforcement perspective focuses on behavior that results in rewarding consequences, good and bad. There are several sub-categories that include positive, avoidance and punishment. It is simply a comparison between behavior and consequences.

There is no single solution to motivation, as no single theory should ever be used, but rather a combination of motivational techniques as appropriate.

So what does this all mean when it comes to the performance of your sales team? Your team must have four elements in order to have a positive performance.

  1. Motivation to do the job
  2. Ability to do the job
  3. The tools and information needed to do the job
  4. Reinforcement that their effort is wanted, needed and expected

Hope this message helps managers to increase sales. I also hope it enlightens members of your team as to what you deal with on a daily basis. Agree, disagree? Contact Me or leave a comment. If you have a Twitter account it would be much appreciated if you would retweet this at the top of the article!

Happy Selling!

Ed Warner