Archive for the ‘Leadership’


Battling the 57%: From Sex to Romance – The Ultimate Flank

Don’t be put off by the title. This might not be what you expect.  And sometimes that’s the point.

There is a lot of nuance behind the 57% statistic – the CEB research that says buyers are 57% through their purchase cycle before they contact a supplier – and there are things you should do before, during, and after, the 57% point, if indeed this applies to your business.  (I promise I will get to the romance shortly.)

I think it is important to reflect on what the 57% really means and the limit of its impact. It is getting a little out of control. (I have organized a webinar on March 25 to dispute/clarify/de-bunk/resolve a few of the myths.)  What is obvious is that you want to be in a position where you can educate the customer before they get to the 57% point. But let’s say that your buyer has indeed progressed 57% through their buying process before they contact you.  What do you do?

If the buyer is 57% through the cycle, then they will most likely have a preference for someone. If it is you then you might have a short sales cycle. Perhaps their search has been truly unbiased and you are now part of a short-list. But if their preference is for a competitor, you will need to change the criteria they have used to get this far.  Redefining customers’ purchase criteria is one of the most powerful ways you can wrest leadership from a competitor.  In the TAS methodology we refer to this a Flanking Strategy – and that gets me to a story I read in the December 2013 issue of Harvard Business Review.

From Sex to Romance – The Ultimate Flank.

Pfizer launched Viagra (the erectile dysfunction drug) in April 1998, with a record 600,000 prescriptions in that month alone at a price of $10 per dose. Pfizer created an entirely new market on the basis of one key criterion of purchase: efficacy. The drug got the job done! By 2001 annual sales had reached $1.5 billion.

Not long after that Cialis entered the market. Whereas Viagra was effective for four to five hours, Cialis lasted up to 36 hours, making it potentially much more convenient for customers to use.

At the time, the key criteria that physicians considered when prescribing were efficacy and safety with a combined relative importance of 70%. Duration had a relative importance of 10%.

The marketing team behind Cialis decided to emphasize the benefits of duration—being able to choose a time for intimacy in a 36-hour window, and set the price higher than Viagra to underscore its superiority.  The new criterion of purchase – marketed as romance and intimacy rather than sex – caught on. A BusinessWeek article reporting on an early positioning study stated, “Viagra users who had been informed of the attributes of both drugs were given a stack of objects and asked to sort them into two groups, one for Viagra and the other for Cialis. Red lace teddies, stiletto-heeled shoes, and champagne glasses were assigned to Viagra, while fluffy bathrobes and down pillows belonged to Cialis. In 2012 Cialis passed Viagra’s $1.9 billion in annual sales, with duration supplanting efficacy as the key criterion of purchase.

Flanking – redefining customers’ purchase criteria – is one of the most powerful ways you can wrest leadership from a competitor; you will undoubtedly have a powerful competitor if you truly only enter the deal 57% of the way through the process. To flank successfully you need something to flank to (i.e. your competitive UBV that the customer cares about) and someone to flank with (i.e. a supporter with the buyer’s organization who will help you navigate the last 43%).

I will discuss this and ways to avoid the 57% trap altogether on the webinar. I would love if you can join the conversation.

 

 

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Helping the Front-Line Sales Manager – It’s All about Rhythm

About once every six months I have the privilege of hosting some of our customers at our Customer Advisory Board meeting.  At these meetings we always learn a lot about how Dealmaker is being used to drive sales performance.  I am just back from San Francisco where we had gathered together a group of sales leaders to discuss our future plans and to get their input on how we can serve them better.

One of the topics we frequently discuss is the critical role of the front-line sales manager.  It is well understood that this important link in an organization’s sales ecosystem is a high-pressure role, but one that can be highly impactful when leveraged.  To help frame the discussion we had crafted a framework for the rhythm of a sales manager’s business.  The people in the room thought that this was helpful, so I thought I would share it with you.

(If you are interested in this topic we are hosting a Front-line Sales Manager webinar on Tuesday, February 25 with two of our customers; Salesforce.com and Shaw Industries. You can register here.)

One of the key observations is that effective sales managers can balance short-term current revenue activities (represented by your current forecast), with the future business pursuits (represented by your pipeline).  We endeavor to support both of these tasks with our Dealmaker Sales Performance Insight product, so we do have a vested interest in fully understanding the dynamics and efficacy of these competing motions.

temp-fcast-pipe

When most sales managers wake up every day they are concerned about the deals on the table right now.  Good sales managers triage the opportunities focusing where they can win and applying resources accordingly.  But at the same time they struggle with how to coach their teams, strategize future initiatives, ensure their teams are effectively enabled, worry about success at their existing accounts, hire and on-board new reps, performance-manage those existing reps who need help, liaise with marketing to help fill the funnel, and feed the corporate machine.

 

temp-cadence

 

………..

The chart here is a sample approach that you might consider.  The first column generally represents hygiene-factor activities but need to stay on the list.  Column 2 includes the most high-yield activities and as you move left to right you want to stay focused in the middle of the chart.  The last column is a necessary evil and can be almost completely off-loaded to technology. Spending time here adds no value to your business.

Our experience would suggest that if you can develop a rhythm in the business, balancing the important with the urgent, you will be more successful, particularly if you can off-load the management of the machine to someone else and leverage technology to automate as much of the reporting as is practical.

I am concerned about the current trends towards unguided use of analytics to ‘help’ the sales manager, and I have written about that before.  The experience of successful practitioners would suggest that sales domain expertise embedded in a structured business rhythm removes much of the friction.

 

 

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7 Principles for Individual Sales Success

You should only read this if you believe that your level of success is largely up to you. Yes, it’s impacted and influenced by external events, but it’s not your sales manager, employer, customer, product, partner, bank manager or religious leader who ultimately determines your destiny. It’s you, and in difficult selling times, that’s the first principle that you have to accept.

There are few professions where the inner strength of the individual protagonist is as critical as that of an individual salesperson. During each sales call, you put your own credibility – and that of your company – on the line. Most likely, you are the primary arbiter of success or failure, and you always face the risk of failure or rejection. But when you win, the sense of achievement and personal gratification are amplified just because you are always putting yourself out there.

There are 7 principles that winners exhibit more frequently than others.  These are not best practices, processes, methodology, or selling skills – but rather personal choices that you control to define your personal purpose – the ‘why’ you do what you do.

1. Ambition: To achieve your ambition, you first need to be very clear as to what it is. There are two main questions you should ask yourself;

  1. “Do I know what I really want to achieve?” and
  2. “Is my goal ambitious enough?”

A ‘shoot for the moon’ goal is a wonderful motivator. By figuring out your personal outrageous goal – conceived in a moment of suspended reality – you see what might be possible. Then you can plan to achieve that ambition by breaking it down into attainable and realistic steps. Winning sales professionals do this in small ways every day as they strategize how to maximize revenue from an account, or win a specific deal. Then it is the art of the possible, planning the realization of the ambition.

2. Commitment and Resilience: How badly do you want it? Will you stay the course? Invariably you will see seemingly ‘lucky’ people for whom everything just works out. Evidence of their hard work is sometimes hard to see. Enduring hardship is frequently the bedfellow of success, so you’ve got to be committed to your goal and both resilient and relentless in its pursuit. When you continue to do the right thing, and stick with it, good things invariably happen.

3. Honesty and Integrity: These are two of the least understood, and most under-valued, personal and business assets. A reputation for being honest or having high integrity is priceless. It brings trust and openness, deeper relationships and more productive engagement. Trust is ‘truth delivered over time’. It is hard to win but easy to lose. The sustained value of these assets cannot be overstated.

4. Inquisitiveness and Learning: In sales, as in life, it is better to be interested than it is to be interesting. You need to be inquisitive and curious about what matters to others and less focused on what ‘interesting’ stuff you have to say. When you have earned the right – you can then be interesting.

If you are in the right job/company/industry, being interested in your customers’ business/industry/market comes easily to you. You have a natural passion for what you do, choosing to continuously self-improve. Without this passion to learn, you will find it hard to be naturally inquisitive. Then you’re possibly in the wrong job/company/ industry – and probably stuck in mediocrity.

5. Empathy and Perspective: Without Empathy you can’t possibly appreciate what’s important to your customer or your own support team. Remember the last time you complained about your marketing / product department, ‘I just don’t understand why we never seem to get … [Insert leads, new features, competitive analysis, better pricing]. Usually when you start a sentence with ‘I just don’t under stand why …’, it’s usually just that – you don’t understand. Arrogance is usually bred from ignorance, and that’s never pretty or productive. Consider the other Perspective.

6. Vision: Innovation and Leadership: Ambition without vision is dangerous and usually counter-productive. Vision elevates ambition to a higher place, one where your insight, founded on innovative thinking and thought leadership (informed through Inquisitiveness and Learning), propels you to the front. (There is another V for Velocity – click here to learn more)

7. Enterprise: You’ve got to work hard, really hard, no really, really hard. Come up with the right strategy to fulfill your ambition, and then through your own initiative and resourcefulness, determine how you best execute your plan. Unless you have the requisite Commitment and Resilience you won’t reach the uncommon heights you’ve visualized in your ambition.

When you put these principles together – Ambition, Commitment, Honesty, Inquisitiveness, Empathy, Vision, Innovation, and Enterprise – you can choose to A.C.H.I.E.V.E. your goals.

It really is up to you.

 

 

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7 Principles for Successful Sales Leadership

One of the perks of my job is the interaction I am privileged to have with so many great sales leaders. During the beta phase for a new solution we just launched (to help sales managers understand the potential vulnerabilities in the sales performance of their teams), I had more intensive interaction than usual with a number of sales leaders.  Going beyond the challenges of the front-line sales manager, which is really the problem that Dealmaker Sales Performance Insight helps with, I was struck by some common principles that seem to be consistently applied by those sales leaders who are at the top of their game.  Here is my synthesis of those conversations.

1.    Lead with Purpose:  Your team cares less about what you are telling them to do, but more about why you are asking them to do it. With a shared understanding of where you are headed together, you can more easily collaborate and communicate.  If you can articulate a higher purpose than just hitting the targets – they know they have to do that without you telling them – they will understand the ‘why’ you are taking the direction you are taking, and that is always more powerful than the ‘what’.  When ‘why’ is understood, the team has a better chance of figuring out the ‘how’.

2.    Set High Standards – Hold Everyone Accountable:  Inspire your team to execute to the best of their ability – every time. Every single internal and external interaction matters.  It reflects on your values if you let poor practices develop without instant intervention. Slow response to a customer, casual email communication, bad manners to internal colleagues, poor quality proposals to customers, or arriving late or unprepared to a meeting, all let you (and the whole team) down.

3.    Write the Plays – and then Play them Right: Sales strategy is relatively easy. Constant execution and sales discipline is harder, and separate the great from the mediocre.  From business development through follow-up after the sale, the overall sales process (or go-to-market strategy) will contain milestones, trigger points, best practices, disciplines, and specific recommended tactics. Writes the plays, and then ensure that they are rigorously adopted, every day.

4.    Be the Role Model: As a sales leader you will undoubtedly have other things on your plate distracting from your core task. De-prioritize these time thieves.  Spend your time on exhibiting to your team how you are holding yourself accountable to the high standards that you have set.  Lead from the front. Execute your plays. Remember, you are in charge.

5.    Be Prepared to Rebuild: If you don’t have the team you need, you must be prepared to re-build. Always be recruiting and building a bench. Just like nurturing prospects for future business, the sales people that you want to hire are probably not immediately available the first time you connect with them. Start the conversation early.

6.    Prepare to Win: Winning doesn’t happen by accident. It usually happens when you are better prepared than your competitor.  Methodology helps, but systematic planning will equip you to deal with situations that arise without warning.  Deal reviews, account plans, sales process refinement, smart sales software, are tools you might use. Once the game starts they are usually on their own and it is then too late to help your team.  You need to prepare them in advance to win.

7.    Embrace Change Methodically:  The business world continues to evolve. Buyers change. New competitors emerge. Economic stability fluctuates.  Responding to change is never easy – particularly when things are already going well. When things are going badly you might feel the need to press the restart button. In either case you must accept two constants; (1) you need to make this quarter’s number working with what you have today and (2) what you have today will need to change just in time to serve your needs tomorrow.

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10 Rules for Great Sales Coaching

Over the last number of years I have given a lot of thought to Sales Performance Management.  I think that most experienced practitioners and observers recognize that the front-line sales manager is the key to scaling sales performance. But it is a really hard job. And if sales managers are in fact the linch-pin of the sales organization, then when sales management fails, sales fails. Bouncing from task to task, managing up, out and wide, getting to the important tasks often suffers under the pressure of the urgent. One of the important tasks that get relegated to the ‘I-know-I-should-do-it-but-I-just-can’t-get-to-it’ bucket is sales coaching. I thought that I would share some thoughts here on how you might make what every coaching time that you have most effective.

But first, some facts:

  • According to SEC/CEB, Coaching can improve sales productivity by 88%
  • Per Gallup, when sales coaching is effectively deployed, customer loyalty increases by 56%.
  • This is not surprising given that in a recent report from CEB, 53% of customers see the ‘Purchase Experience’ as the primary driver of customer loyalty.
  • Sales Management Association conducted a study looking at issues that are “important to sales force success” and examined the resource that was applied to those initiatives.  Sales Coaching stands alone, as being recognized as being important but not getting the attention it deserves.
  • According to a separate Sales Management Association study, most sales managers are spending less than 5% of their time on sales coaching. Perhaps given all of the time they are spending on all of the other activity, perhaps this is not a surprise.  But it is still worrisome.

We looked at why Sales Managers don’t coach, and saw a combination of (1) the lack of time, and (2) uncertainty about what to look for as two of the major obstacles.  As you would probably expect from me – I believe that technology and smart automation has a huge role to play in resolving both of these issues to empower the sales manager to (a) understand the vulnerabilities in his/her team and (b) provide coaching to help the team members improve.  (Disclosure: This is precisely what we do with Dealmaker Sales Performance Insight.)

But it is worth stepping back to consider what good coaching looks like:

Here are my 10 Rules for Great Sales Coaching

(I want to thank all of the experienced practitioners who contributed/validated/improved my work in creating a list and then reducing it to a manageable number of just 10!)

 

1. Collaborative:  collaborative

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Coaching should be a joint process. It is not about the manager telling the sales person what to do.  It must be viewed as connected to a shared positive purpose, with agreed expectations and suggested preparation.  You may jointly want to progress a deal, learn from a loss, or review strategy – but the emphasis needs to be on jointly – it must be a two-way flow.

2. Regular Cadence:cadence

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Coaching should be embedded in how you manage your sales business. If centered around deal reviews, assessment of account plans, discussing a sales process, coaching should not be viewed as an event.  Regular, scheduled coaching sessions will develop a consciousness and familiarity with the process that will grease the wheels and make each coaching session less challenging and more productive.

3. Consistent Framework:  framework

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Consider, for example, a Deal Review.  You should create a consistent framework that the sales team is familiar with.  You might start with an overview of the deal, allow for clarification questions, identify risks and vulnerabilities and then brainstorm solutions and strategy.  Do it the same way every time and it will flow more easily.

4. Apply Buyer’s View:buyer

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In truth there is only one perspective that really matters, and that is what the customer thinks.  Remember that the impact on a customer of a bad buying decision is typically greater than the impact on a sales person of a lost deal.  So the sales manager, or others in the coaching session, should take the perspective of the buyer. Honestly answer the question: “If I was the customer, would I buy from us?”  It’s a great lens to use to focus your thinking on what the customer cares about.

5. Look for Evidence:  evidence

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Always look for evidence.  When presented with comments like “Joe Smith really likes us,” or “We have strong compelling event,” you should always respond with questions like “How do we know?”  Be clear about the evidence of customer action that helps support those assertions.

6. Elicit Critical Thinking:thinking

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The role of the coach is to elicit critical thinking from the sales person.  Start with “If we were to lose the deal, or fail in this account, what would be the top three reasons?”  Then, when these risks have been identified, allow the sales person to come up with their own answers.  This critical thinking is a muscle that can be developed with progress.

7. Praise Good Insight:  good-insight

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People respond to praise – particularly in front of their peers.  If you don’t acknowledge or recognize valuable contribution, you are less likely to get that same contribution again.  You audience will think either that you don’t get the value – or think that you are too important (in your own mind) to respect their opinions.

8. Be Objective & Curious:  curious

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As Albert Einstein said, “Never stop questioning.”  Remove any bias that you have about account, the opportunity or the sales person.  Remain objective and seek the truth that will serve you all.

9. Don’t Take Over:  no-control

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It is not your job to close the deal, be too prescriptive on strategy or directive on the next action.  Don’t feel that you are the only one who can call the customer, or do the research, or plan the account.  You are trying to develop new behaviors and that only happens with practice.  Don’t take over.

10. Document Actions:document

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If the coaching session was worth doing, then it is worth recording what happened, the insights you learned, and the actions that were agreed, and then follow up.

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What to do when “No Decision” is not in the customer’s best interest

I have written before about the only two reasons that you lose a sale;

  1. You should not have been there (chasing this particular opportunity), or
  2. You were outsold.

I know I have fallen at both of those hurdles.  Sometimes being outsold means you lost to the dreaded No Decision.  In fact according a report I read from CSO Insights this is happening 26% of the time. Ouch!

Now in most cases when the customer is making No Decision they are in fact making the right decision. They will have objectively evaluated the project, and decided that this particular project did not reach the required threshold of return, or was not as important as another more pressing initiatives.

But in some cases they are just afraid, and No Decision is taking the easy way out.  This No Decision will often be accompanied by phrases like; “I don’t think we have the right team in place to implement this project now”, “We need to learn to walk before we can run”, “I’m not sure the team is ready to embrace this amount of change.” In truth they are just afraid.

They might be afraid of making an investment for which they will be held accountable. They might be afraid of something that is new. They might be afraid of change. They might be afraid of upsetting the status quo lest it might threaten their own status.

In these cases they are not in fact making No Decision, they are making a decision not to fix a problem that is broken. They are taking cover in the status quo where they are less likely to be seen as the instigator of something that went wrong. Sometimes that is a consequence of organizational culture – and in other cases it is  individual responsibility being abbrogated, denied, or ignored. But, is it your job to tell them?

I’ve written before that ‘A bad buying decision usually has a greater impact on the customer than a lost sale has on the salesperson’.  I believe that to be true, and I further believe that it is the sales person’s responsibility to tell the customer if they think the customer is making a bad buying decision. It is part of delivering on the trust that you’ve tried to earn.

In all of this post I have assumed that there was a real problem that the customer wanted to fix, the issues were identified, you were speaking the people who had the power to make the decision, and you had developed a joint vision of the desired end-state.  Then the customer got cold feet.

But how do you tell the No Decision customer that they have made the wrong decision – without it appearing as mere sour grapes, or that all you care about is selling them your solution?

  • First, be honest to yourself and about yourself. Acknowledge that you have failed to provide enough evidence to the customer to make them comfortable to make a positive decision.
  • Second, restate the problem you think the customer was trying to solve and the impact of No Decision
  • Third, withdraw from the sale, pointing out that this maybe the impetus for the customer to act (and maybe buy from your competitor.)   This is in the best interests of the customer. Maybe you’ve nothing to lose anyway, but that’s not the point. The point is that you must maintain your integrity.Your initial contract with the customer prospect was to help them solve their business problem.  That’s where you started and that’s where you should finish.

You have two other alternatives to this approach. (1) You can do nothing except walk away and lick your wounds. That serves neither party well, or (2) You can seek other (perhaps more senior) people in the organization who will reverse the No Decision made by your contact – but that’s the subject of another post.

I’d love to hear your thoughts. This is not a simple question.

 

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12 Elements of a Great Sales Playbook

The implementation of a sales playbook can be one of the most impactful initiatives for any sales organization. There are two reasons for this tremendous ROI. First, by following some simple guidelines, it can be a remarkably easy initiative to implement, and second, research shows that this results in 33% additional revenue.

We have done hundreds of Sales Playbook deployments with Dealmaker Smart Sales Playbook. Here are the 12 Elements of a great sales playbook that you should use to guide your implementation. 

1. Repeatable Winning Sales Processes

The key word here is ‘repeatable’. When everyone adopts the same sales process, there is a common language that is understood, not just by sales, but by the whole organization.  Recent research shows that while only 60% of sales teams have a sales process that is well defined, and well executed – those who do are 33% more likely to be High Performers*.

2. Customized to the Buying Cycle

Customers buy in lots of different ways; some purchases are guided by a single decision maker, while in other cases there can be a large buying committee. Some issue RFPs (health-warning!), others invite recognized suppliers to discuss their issues,  an increasing number learn in the Social Universe, and just a few remain with the incumbent supplier trading ‘the devil you know’ for potentailly more advanced or competitive solutions. Unless you visualize the journey the customer wants to take, you won’t be with them when they reach their destination.

3. Sales Tools in Context at Each Stage

At each stage of the buying process, salespeople need to employ just the right tools – at the right time to advance the sale to the next stage in the process.  A B2B sale is not a single event. In fact it is a collection of micro-sales events, each crafted to move closer to the eventual goal. Salespeople are busy and often don’t know which tool they need, where to find it or how to use it at the specific point in the micro-sale. Integrating sales tools into the playbook as part of the sales process is the solution.

4. Industry Sales Process Templates

It is widely accepted that tailoring your sales process to the specific needs of an industry will increase your chances for success. Third party industry sales templates are readily available from suppliers who have been tracking and analyzing millions of sales cycles.  That is the catalyst you need to get started.

5. Many Simple and Complex Processes

One playbook or sales process does not fit all.  Sometimes you are pursuing a brand new customer or a very large deal that demands a complex and sophisticated set of ‘plays’ to win the deal.  In other cases, the transaction might be quick,  one that suggests a diffferent rhythm. Your sales playbook should have the requisite intelligence to support that automatically and serve up the right playbook at the right time.

6. Process, Benchmarks and Insight

Benchmarking delivers many advantages for companies looking to improve the performance of their sales organization. Your playbook must capture those benefits, learn from them, and uncover inisghts that help you to drive your sales velocity.  When deploying a playbook, ensure that you have built in a capability that guides you to progress through these stages of evolution for your sales team.

7. Team Visibility for the Sales Manager

Being a front-line sales manager is one of the hardest jobs in sales.  It is also the critical link in sales.  Unless the sales manager has with all the tools he or she needs to easily manage the business, the whole performance of the sales organization suffer.  You need to provide them with the ‘Easy Button’.  Sales playbooks are often designed just with the sales person in mind.  Remember that the sales manager is the critical link.

8. Integrates with CRM System

This one should be a ‘no-brainer’. The playbook must integrate tightly with the CRM system so when the sales person works with an opportunity, the playbook will always be present, just where it needs to be.  That way the playbook (if it is smart enough) can react to the attibutes of the opportunity, like the size of the deal, or the products included in the opportunity record to present the right playbook for that opportunity. Complete integration with your CRM delivers the  optimum experience for the sales person, and provides sales managers with greater flexibility on how they view the data in the context of the rest of the business.  It is important.

9. Informs Sales Forecast Visibility

Salespeople spend about 2.5 hours each week on sales forecasting, and for most companies, the accuracy of sales forecasts leave a lot to be desired. To maximize the impact of your sales playbook on the accuracy of your sales forecast, there are two things to consider. (1) Does the sales playbook incorporate intelligence that objectively monitors the close date of the sale? (2) Does the sales playbook provide the sales manager with insight into deal vulnerabilities and risks in the forecast?

10. Motivational and Visual

There are only two reasons why an individual does not complete a task.  Either they do not have the competence, or they are not motivated enough  to do it.  Think about that – these are the only two reasons.  Your sales playbook should improve competence and increase motivation.  The competence piece is easily understood.

Motivation is a little more challenging. A study on What Motivates Sales People shows that, perhaps surprisingly for some, compensation is not the primary motivator. ‘Making Progress of Winning’ is ranked by sales people as the main reason they get up in the morning. To entice adoption of the sales playbook (rather than force compliance) your sales playbook needs to provide true value for the sales person – resolve that reward/effort equation, so that the salesperson gets more back from the playbook that they put into it.

11. Social and Collaborative

As B2B companies rely more heavily on social collaboration tools, some of the biggest gainers are going to be salespeople. Sales people who are the leaders in their organization are using social tools such as Chatter in Salesfore to improve collaboration in their own sales teams. Leading sales playbooks help by letting everyone ‘follow’ the plays, contributes to the conversation, and collaborate on the deal. The B2B world is constantly becoming more social and collaborative and you should ensure that your sales playbook accommodates this advancement.

12. Mobile and Cloud

Time is precious, and the sales person’s time is incredibly precious, both to them and to the sales organization looking to maximize the performance of their key quota-bearers.  Since so much of a sales person’s time is spent moving between A and B and back again, they should be equipped with the mobility to connect to their sales playbook allowing them to be responsive, productive, collaborative and consistent at any time, wherever they are. In other applications, mobile and cloud capabilities are being leveraged to facilitate access anywhere, anytime.  It must be the same with your sales playbook. Unless mobile and cloud are core elements of your sales playbook plan, the initiative could face severe challenges in a very short term.

 

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20 Facts about Sales Performance

At The TAS Group, we just recently completed a global study of sales performance.  The full report will probably be available by late April.  If you want a copy email me ddaly (at) the tasgroup (dot) com.

The statistics are pretty revealing – so I thought I would share them with you now.

  1. 33% of sales people made quota in the last reporting period

  2. Only 52% of sales people say they can access the key players for a sale

  3. 39% of sales professionals say they are not able to effectively uncover customer problems, and

  4. 35% struggle with designing customer focused solutions

  5. 59% of sales close as originally forecasted

  6. Sales forecast accuracy jumps to 76% when sales methodology is applied well

  7. When the Sales function contributes to company strategy, quota attainment is 15% higher than when Sales is not involved

  8. Quota attainment is 25% higher when Sales and Marketing are aligned, and

  9. Win Rate is 15% higher when Sales and Marketing work well together

  10. 59% of sales reps are good at opportunity qualification

  11. 32% of sales professionals do not develop competitive strategies for their opportunities

  12. When competitive positioning is part of a company’s sales strategy, revenue increases by 30%

  13. 44% of reps are able to maximize the value of a sales opportunity

  14. Only 36% can maximize the value of their key accounts

  15. Salesforce.com has the highest % of CRM users with adoption > 50%

  16. TAS has the highest % of methodology users with adoption > 50% (We are very happy about this!)

  17. When methodology is integrated with CRM sales teams are 35% more likely to achieve average quota over 75% (As you know this has been my mantra for a long time!)

  18. The #1 reason why sales methodology is not used is that only some people use it.

  19. 60% of companies use a defined sales process

  20. Companies are 33% more likely to achieve average quota over 75% if they use a sales process.

We have analyzed all the data that we gathered – and it was a lot – and some of the insights are fascinating.  We are looking forward to getting this finished and published to share.

As I mentioned above – If you want a copy email me ddaly (at) the tasgroup (dot) com.

 

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8 Steps to Effective Sales Methodology Implementation

There is good news and there is bad news. The good news is that a sales methodology can dramatically increase the sales effectiveness of your entire sales organization, significantly increasing your sales revenue. The bad news is that not all sales methodology solutions are implemented well. There are few distinct topics in the world of the Sales VP that raise such polarized views as the effectiveness of sales methodologies. Sometimes the very phrase ‘Sales Methodology’ is enough to make Sales VPs reach for the Pepto-Bismol. On other occasions, sales leaders can point to successful implementations that delivered consistent revenue increases, and improved sales effectiveness.

In most cases where stellar (or steady) sales performance exists it is founded on well crafted and institutionalized selling processes, founded on a strong methodology, and customized to a company’s business. In other cases we’ve seen well intentioned executives make significant investments in Sales Methodology, Sales Process or Sales Training Programs, only to find sales representatives burdened by onerous processes that are too hard to use, and eventually just fall away.

We’ve put together this guide to help you become part of the winning crowd. Whether you choose to use the TAS Group’s methodology (which of course we’d prefer), or not, we do believe that you will achieve considerable benefit by adopting a sales process or methodology – but only if you are clear as to your objectives, what success means to your company, and what measurable benefits you plan to gain as a result of your investment.

Here we provide a list of what we believe to be some of the Critical Success Factors when adopting a sales methodology, including why we think they’re important. Also we have outlined a mechanism for you to consider them, and reflect on what achieving these CSFs would mean to your organization. We would encourage you to use this with your colleagues to score (and later rank) these for your own business and use them as you choose how to adopt a sales methodology. This is not an exhaustive list, but if you’re on the mark with all of these; then you’ve a much greater chance of success.

1. Better Qualification and Sales Effectiveness

Any good methodology should help your sales team enhance their selling skills, shorten the sales cycle, and close more of the right kind of deals. Sub-optimal performance usually happens because of poor or late access to key decision makers, a failure to create value in the mind of the buyer, and/or when resources are wasted on opportunities that are not adequately qualified. If these issues resonate strongly with you, the methodology you select should have demonstrable models to show how they can be addressed.

Think about the impact that Better Qualification and Sales Effectiveness could have on your organization and decide how important you think it might be as you choose your methodology solution.

2. Standard Sales Process and Common Language

Uncommon productivity results when a sales organization adopts a common way of selling that is understood, not just by the sales team, but by the rest of the departments that support the sales team. Sales representatives are speaking the same language as sales management. Marketing and customer support understand what is happening in the sales cycle, and there is a common understanding of when a sale will close.

How important do you think a Standard Sales Process and Common Language is for your organization?

 3. Adoption Rate: Ease of Use and Level of Sustained Usage

To achieve any real sustained benefit from a sales methodology it’s important that the sales person uses it consistently. We think the sales person’s perspective is as important as that of sales management to make this happen. Perhaps the question should be “What’s good for the sales person, what helps him increase his sales?”, rather than “Wouldn’t it be good if you got your sales team to do this?” If the sales person wants to use the sales methodology; isn’t it more likely that it would truly deliver value to him, and by extension his sales management. Spend some time on this issue. Seek out the average adoption rates of the methodology vendors’ customers. Look for tools that are powerful – yet easy to use. Seek out easy-to-use reinforcement tools that keep the methodology alive and part of the sales person’s everyday life.

Reflect on how important Adoption Rate, Ease of Use, and Level of Sustained Usage is to you as you consider investing in a sales methodology and score its importance to your organization.

4. Leverage Existing Investments: Integrate with your CRM system [Fully!]

If you use a CRM system, you’re already asking your sales team to enter their opportunity information. You’re asking them to work their opportunities in the CRM system.  We would suggest that it would then make sense that the methodology that you choose should integrate tightly with the CRM system, to amplify the benefits of both.  Let’s say you are using Salesforce.  You probably want to make sure that all of the data captured in the methodology application is inherently accessible to Salesforce reports, dashboards, and other applications.  When properly integrated, you do not have to worry about the security of a third party cloud, the data transfer issues that occur with non-native solutions, or the reliability of a third party hosting infrastructure.  Examine the relationship between the methodology vendor and the CRM vendor. Make sure they are strategically aligned – so that as you grow with your CRM system, your methodology integration can keep pace. This means that the learning and methodology can be available just-in-time and in context. As the sales person works with an opportunity in the CRM system, the methodology should be always present, just where the sales person needs it.

For your organization, how important do you think it is to Leverage Existing Investments and Integrate with your CRM system as you deploy a sales methodology?

5. Improve Sales Forecast Accuracy: Know when deals will close

One of the results of deploying a sales methodology should be a consistent sales process used throughout the sales team. When that happens you can remove much of the subjectivity from trying to assess when a deal will close if the methodology provides tools to convert qualitative progress into meaningful quantitative forecast data. Inaccurate forecasts can cause credibility problems for the sales organization, and real operational difficulties (cash management, production, etc.) for the business. If this is important to you we would recommend that you examine how the methodologies that you are evaluating meet this requirement.

What is the impact of inaccurate sales forecasts on your business? Is this a problem that you want to have fixed as part of the sales methodology implementation?

6. Gain Control of the Sales Process by Creating Value for the Customer

If a sales opportunity is real, the customer understands the need to change. He may not, as yet, have figured out the transformation that may be necessary, but an effective sales person, with the right tools, will guide him through that discovery and, through that journey, demonstrate evidence of his understanding of his customer’s business and his ability to create value for him. The methodology you select should provide your sales team with tools to support them gain control of the sale.

More than just assessing the health of the opportunity or defining the appropriate strategy, is your new methodology/process going to help you move deals through the funnel faster?

7. Customized to (the multiple sales functions in) your Business

Is the methodology you are adopting flexible enough to allow customization to your company’s way of doing business, or do you have to adapt what you do to fit in with the methodology? It’s important that a methodology brings structure, but not at the expense of how you want to run your sales team. The methodology needs to be prescriptive enough to optimize sales effectiveness while still being flexible enough to fit your business and support your business objectives. Ideally you should be able to have a common base methodology for your entire sales function, but yet be able to substantially tailor it to reflect the different needs of, for example, an inside sales team as well as a field sales teams, or a new business team alongside existing customer account management.

One of the strengths of a methodology is that it provides a structured approach. But can it be adopted to the rhythms of the different part of your business while maintaining that structure? You should rank this as important if you have small and large sales, new business and renewals etc.

8. Track Record of the Methodology Vendor’s Previous Implementations

The sales methodology market is very fragmented and served by a myriad of vendors. The success of an implementation is a function of the core methodology, how it is applied to your business, the implementation and after sales support, as well as the consultants or trainers who engage with you. We think there is always considerable merit in checking out the past record of your supplier, just as you should do when you are hiring a sales person. Ask about the preparation in advance of the engagement, the actual delivery and training, the experience post implementation, how well what was implemented is being used, and most importantly how it supports the core business objectives.

 

Where Next? – Get Internal Alignment

To really focus on what’s important to your organization, you might like to list the scores that you recorded for each of the questions, and then in the summary table rank which is most important to you. Pick the CSF that you want above all others and place 1 in the Rank column, then move on to the next most important and place 2 in the Rank column, and so on. If you share this exercise with others involved in the project it will help you achieve alignment, uncover what’s really important, and make success more likely.

 

Sales Methodology Implementation Critical Success Factor Summary

Topic

Score

Rank

Better Qualification and Sales Effectiveness

                   

Standard Sales Process and Common Language

                   

Adoption Rate: Ease of Use and Level of Sustained Usage

                   

Leverage Existing Investments: Integrate with your CRM system

                   

Improve Sales Forecast Accuracy: Know when deals will close

                   

Gain Control of the Sales Process by Creating Value for the Customer

                   

Customized to (the multiple sales functions in) your Business

                   

Track Record of the Methodology Vendor’s Previous Implementations

                   

Other:

                   

Other:

                   

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Account Planning for everyone (who uses Salesforce)

Regular readers will know that I am passionate about combining sales methodology with technology to make life easier for sales people.  One of the areas where I have seen lots of wasted time has been in Account Planning and Management.  So, I decided to do something about it and I’m excited to  let you know that my new book Account Planning in Salesforce is now available at your favorite online store. You can get an extract here, and buy the book here.  It should be less than $10 (I’m trying to make it very affordable) and proceeds go to Peter Gabriel’s WITNESS charity.

As I hope you would have come to expect, this is not a theoretical book – but is practical and marries methodology with technology to make effective account planning accessible to all sales professionals who care about taking care of their customer while they go about selling to them.  But this post is not meant to be a promo for the book.  I was very fortunate to have a number of people who are a lot smarter than me review the book while it was a work in progress, and I want to share some of their comments here – as I think they point to the many challenges that sellers face when seeking to maximize revenue from their major customers.

This is Account Planning that works – because it is fully integrated with salesforce.com. There has never been a time where customer focus has been more important.  As broad marketing becomes irrelevant, sales professionals need to treat their current customers as their marketplace; consider what the marketplace needs and then deliver true value.

My friend Matt Dixon, co-author of The Challenger Sale, was kind enough to review the work in progress.  Apart from commenting that this is the only business book that he has ever seen that quoted lyrics from Metallica! (more about that later), Matt’s take was that “[the book] grounds its recommendations in the context of modern B2B sales, where customers armed with massive amount of information and advice can afford to engage sales people later and later in the purchase decision … there are no short-cuts to getting this right.”  Matt knows this better than most I think.

When Bob Thompson of Customerthink read the book, he hit the nail on the head.  He was kind enough to provide this quote for me.  “All too often Account Planning is a once-a-year effort that gathers dust on the shelf. Use Donal Daly’s ACCOUNT PLANNING in SALESFORCE to help transform this critical activity into a usable, customer-centric approach to growing loyal relationships all year long.” I thank you Bob.  There is a recognition from those who know how it really works, that there are many hours wasted on developing account plans that are never used. (By the way, if you’re not familiar with Customerthink, you should go and have a look.  Bob curates some wonderful insights on his site.

Matt Cox over at HP told me that from his perspective “Account Planning is a core sales skill that requires a disciplined approach and ongoing care and maintenance.”  and of course he is right. When I spoke to Peter Jofriet, who runs Sales Excellence at Honeywell, he said that “account planning must live and breathe as part of how you run your business. It needs to become part of your culture, and should be integrated into your overall business cadence.”  This is a really critical observation. Account planning can be the new marketing for your large accounts.  If you are hoping that your marketing department is going to help you penetrate that key customer, then you’re likely headed for disappointment. Ask Peter, he knows. And he had nice things to say about the book as well.  I thank you Peter!

More than half of the sales professionals that I have spoken to acknowledge that they are not maximizing revenue in their accounts. Sales reps are leaving money on the table and they are not serving their customers well.  I am trying to help them solve those problems. This book, based on interaction with hundreds of sellers and their customers, describes how high-performing rockstar sales reps are successful at maximizing value in their strategic accounts, both for themselves and for their customers.

You can read more insights from some of the others who supported me along the way here. I am deeply honored by the caliber of people who were interested enough to share their thoughts.

And about those Metallica lyrics …

Account Planning is not always the most riveting subject, so a book about account planning isn’t guaranteed to be a page turner! Well, I tried to make it as consumable and enjoyable a read as possible.  I feel pretty confident in saying that this is probably the first and only book on account planning that includes a playlist to help you hum along as you develop your plan.  You will find songs here that you know (from the Beatles, Metallica and U2), some you may have forgotten (anyone remember Rose Royce?) and probably some new songs that you will not have heard before. I borrowed from the lyrics of these musical muses to illucidate some of the points I was trying to make.  Metallica’s Nothing Else Matters refers to Trust – and in Account Planning, it is true; without trust, nothing else matters.  I hope the playlist adds to your enjoyment when (if) you read the book.  I know it lessened the load when I was writing it.

Account Planning is a tremendously important endeavor. It drives revenue, increases customer satisfaction, aligns your organization, and provides incredibly gratifying moments when you can see the impact of your work – both for the customer, and for your company. I hope this book accelerates your journey. More info here.

Thank you.

 

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