Myth #1 – It’s a numbers game
Having a list of names and ‘cold calling’ repeatedly until the prospective customer finally speaks to you is impersonal and can project a product pusher image. The prospective customer in many cases will react by becoming defensive or aggressive. So how would you develop a relationship when prospective customers are seen as a number? Answer – it’s not doable.

What works?
Focus on the quality of each interaction and not purely on numbers. Base your sales calls on prospective customers who have genuine potential. Establish an open and friendly manner aimed at creating mutual respect. Use open ended questions, survival phrases and good language. Begin by getting yourself in the right mental frame of mind by deleting language such as ‘cold calling’ and replace it with ‘new calls’ because that describes what it is. There is nothing ‘cold’ about calling on someone.

Myth #2 – For every “no” you are closer to a “yes”
Using the same approach for every call and expecting a different outcome doesn’t make sense. The chance of a “no” becoming a “yes” is highly unlikely and if so it would be luck than anything else. High volume calls in themselves won’t produce sales success.

What works?
Learn what has been going wrong with your sales calls and change what needs to be changed in any area of your professional image or skills. This can be and not limited to your vocal tone, pace or the words you use.

Myth #3 – You don’t need a script
Yes you do. Not using a script creates its own set of problems such as mentally freezing which can lead to sales call reluctance because you are not sure of what to say or what questions to ask.

What works?
Use your sales process as a guide when you write your script and list core questions. Then rehearse, rehearse, and rehearse until it comes naturally to you. It will also build your self confidence.

Myth #4 – You need to welcome rejection because it is part of sales
By expecting rejection there is a good chance it will happen. No one likes to be rejected but you can attract rejection if you sound nervous and anxious when you approach a prospective customer.  Rejection can also happen when a prospective customer feels angry about a personal situation and then expresses their anger when you call. Call back another time and the same person may talk to you in a warm and friendly manner.

What works?
Follow your sales process and selling skills and don’t take rejection personally. Rejection is expressed in the form of a rebuttal or a sales objection. It’s a business refusal and not personal rejection. You may have been rejected this time but not necessarily the next time you call on the same person.

Myth #5 – Close often and close hard
This is high pressure selling and it’s from the old school of sales. It is a single minded focus to try to sell a product with minimal regard as to whether the customer needs it or how they may feel. In many cases the response is a sales objection and if pushed too hard you may be asked to leave.

What works?
Follow the sales process and don’t assume the customer will buy what you think they should buy. Your aim should be to create trust in the first instance and not the sale. When you create trust and build a solid relationship the close will come naturally for both yourself and the customer. Ask qualifying questions to find out what they really want and need and then offer the right product or service

There are many other sales myths but the ones listed are the most common. Myths need to left where they belong, noticed that they exist because they have been around for a long time and then ignored. Do what you know works in sales.

Have you ever benefited from a negative thought? Has it helped you achieve great sales results or a happy personal life? Has it made you feel exhilarated or made you feel good about yourself? I think not. So why do we have negative thoughts and persist with them?

Unfortunately the great majority of people think and speak negatively without realising it. Perhaps it’s our social conditioning and we have become desensitized or for some people it’s to seek attention or to fit in? Negative thinking can become a habit and have a detrimental effect on your level of energy and happiness, and weakens the immune system.

Be careful what you think about most of the time because you will attract it, whether that is positive or negative, wanted or unwanted. The law of attraction is at work and it has no judging capacity and will give you what you want, whether you believe it or not. For example, if you used the phrase “I need more sales” repeatedly over time the result will be “need more sales.” This negative thought will prevent any change from happening such as actual sales. Begin by changing your thinking such as “I am taking positive action to build on the sales volume I already have.” Focus on what you have and not on what you don’t have.

In the short term the positive affirmations will clash with your belief system. Your belief system determines how you think, feel and behave. If you are already a competent salesperson and you want to change your sales results you need to eradicate the beliefs that create the negative result. A belief is a statement said over and over again that you think and feel to some degree is true about a current situation. Though a belief can be strong it is often not based on concrete facts or experience.

Write down and repeat the positive affirmation whenever you get the opportunity to until you create a new belief system. For example, if you are used to responding to a client who has asked “how are you?” with “good” why not use more uplifting language such as “great.” Now hold on I hear you say, I don’t feel great and that would be telling a lie. Is it a lie? Do you have to act out how you feel every time or can you change your mind? If you knew that you would be creating a better first impression by using more uplifting language and end up feeling better and more energised yourself, why wouldn’t you use words such as “great…wonderful…fantastic?” If anything is preventing you from changing it’s your current belief system.

So where do you to start?

1. Become conscious of your thoughts
Set a time frame such as 1 day and notice your thoughts. You may be surprised at how many negative thoughts you have, but don’t be concerned, you are on your way to a major change in your selling career and your personal life. If a negative thought happens, notice it and then let it go and avoid saying it out aloud. For example “Business is really tough.” You may consider changing your thinking to “The business environment is challenging but I am up to it.”

2. Change your thinking
Once you have become conscious of your negative thoughts replace those thoughts with positive ones and always make statements short, specific and in a matter of fact manner.     For example, “I really blew that sale” to “I am glad I know where I can improve, I will ask more probing questions.”

3. Change how you feel
This is the most difficult thing to do even when you’re thinking positively. To unfreeze the feelings you want to replace and refreeze the new ones begin by visualising the outcome you want. The outcome needs to be seen and felt in great detail. Do this repeatedly until the new thought and feelings are part of your new belief system.

4. Take affirmative action
Without action nothing will change. Actively go about your day-to-day work and apply what you have learnt. It is difficult in the beginning but it will get easier with practice. You will achieve the results that you need and you will feel better about yourself. What a great new belief system.

As sales professionals we are expected to handle rejection on a daily basis which makes it difficult, but not impossible to remain positive. Negative thoughts can easily creep in. Start today by becoming conscious of your thoughts. It’s the first step in the right direction to taking control of your thinking and leading a happier, healthier and more productive life.

If you would like to discuss this topic or any other relating to sales performance then contact
Kurt Newman direct on + 61 0412 252 236 or email kurt@salesconsultants.com.au

Once you have successfully navigated through the first 3 stages you are ready for stages 4 and 5.

4. Decision
If you have a client relationship where creditability has been well established your chances of success in acquiring more business will be high. Clients tend to stay with suppliers whom they trust. If the client becomes concerned prior to making the final decision they will more than likely tell you. However, if the concern is left unaddressed and the relationship is new then the chances of the business going to a competitor is highly likely.

Concerns
During the Analysis stage price will appear to be an important factor. This will be less important if the risk of doing business with you is less than doing business with your competitor. This can mean higher profit margins.

Concerns can be hidden and difficult to uncover. Unresolved concerns around risk either real or perceived are the main reason why sales are lost. However cost is usually given as the reason for not proceeding because it appears to be a more acceptable excuse.

Potential concerns
When any of the following situations are present there is the likelihood a hidden concern is present:

•    Price hypersensitivity – This is when the client has unrealistic cost expectations and questions every aspect of your pricing

•    Cancelled and rescheduled appointments – When this happens often there are other issues at play that need to be uncovered

•    Rehashing of a past issue – The issue may have been resolved some time ago but the client continues to refer to it

•    Refusal to give information – Asking for basic information is treated as if it were highly confidential

Handling concerns
Whilst there are no hard and fast rules to handling concerns the following are useful guidelines:

•    Build relationships based on trust and honesty. The client will be more open and prepared to discuss any concerns as and when they may arise

•    Ask questions in a warm and caring manner about what appears to be their concern

•    If the client has a fear of making the wrong decision then it’s best to reassure them that they are making the right decision.

High pressure selling tactics or being impatient is the wrong approach to handling a client concern.

5. Evaluation
Once your company has delivered on its promised product or service the client will evaluate its performance – does it do what was promised?

Once the client feels they are getting the promised outcome/s a great opportunity exists for you to establish a close business relationship. This can result in opportunities to add-on sell, introduce new products and services and effectively block out your competitors.

A client will tend to go through three phases of evaluation:

i)  Expectation
This is just prior to your company’s supply of or implementation of its product or service. It can be an exciting time for the client because they may have had the problem for some time and are now looking forward to having it fixed and enjoying the benefits.

ii) Experience
This is the most challenging period for yourself and your company and will require much effort. Unless the outcomes are clearly understood the client may express doubts about your product or service if their expectations are unrealistic. Their experience will depend on two factors:

•    Their level of commitment to change brought about by your product or service

•    How well your product or service is implemented in the client organisation

iii)  Exit
When a successful outcome has been achieved the exit can be the most enjoyable for both yourself and the client. If there were difficulties with your product or service during the experience phase the client may reflect on the challenges along the way and now feel good about what has been achieved.

The Selling Cycle
By adapting your sales process to complement the client’s buying cycle you will reduce the selling cycle time and automatically sell more often.

The selling cycle time can be affected when:

•    The client hadn’t previously dealt with your company and is unfamiliar with your products or services
•    A major decision is required that will need a large financial outlay
•    Cross organisational functions are involved in the decision making process
•    Many competitors including the client’s internal resources are bidding for the same business
•    Other client needs competing for the same funding
•    Procrastination through fear of making the wrong decision or recommendation
•    Internal politics

Sales pipeline difficulties
In this current economic climate the sales pipeline can be difficult to fill with quality sales opportunities. This is due to 3 reasons:

•    Clients leave the need to begin their buying cycle until it is really necessary. This affects the number of prospects the salesperson has in their pipeline

•    The time taken to progress from Awareness to Decision is taking longer because more time is spent in the Analysis stage

•    Sales opportunities are not progressing or exiting the sales pipeline because:

- Delays in beginning the buying cycle
- Not qualifying sales opportunities properly so there is a high volume of ‘rubbish’
- Ineffective sales pipeline management
- The client is risk aversive

Note: When the selling cycle time is extended well beyond the norm the opportunity goes nowhere resulting in a no sale outcome.

Developing a sales strategy that complements a client’s buying cycle will create a point of difference, reduce your selling cycle time and you will close more sales more often.

All the above reasons are possible but in a complex sale the most common cause for having lost the sale is the selling cycle is out of sync with the client’s buying cycle. So how does this occur?

Most often it’s because the salesperson has developed a sales strategy in isolation to the client’s buying strategy. The salesperson’s best selling efforts are then in vane because of the mismatch.

Buying and selling are both processes. If the salesperson knows their sales process then it’s only a matter of learning the buyer’s process. When a client makes a decision to buy a product or service they progress through 5 distinct stages. These are:

1. Concealed
If the client (the decision maker) doesn’t know or refuses to acknowledge that a problem exists, one that should be addressed, then nothing happens. It is not uncommon for others in the organisation to be aware of a problem and not act on it for a range of reasons. These people can be of value to you for background information on the problem and its effect on employees and the business itself. This information can help you to build your business case.

2. Awareness
When the client has identified or acknowledged a problem exists, one that is costly, or causing great annoyance and difficulties they will want to deal with it.

Your role in the client awareness stage is to fully uncover the extent of the problem and its effect on their organisation. This will clarify the seriousness of the problem and its urgency to act.

3. Analysis
Analysis involves the client looking at all the options available including screening potential suppliers and to use internal resources where applicable.

In todays competitive selling environment clients are taking longer during this stage of their buying cycle. To move this stage along quicker salespeople can be tempted to pressure or ‘sell’ the client by offering a discount. This can result in their giving away profit margin unnecessarily with little or no effect on the time frame.

During this stage:

•    Find out what the client’s selection criteria will be and the factors the decision will be based on, for example customer support within an agreed time

•    Expand on and get agreement on the selection criteria. This can include an item the client may have missed and one that is a strength of your organisation.
For example: Regular sales calls within the client’s network of branches

Please note: the client needs to agree with the additional items of the selection criteria.

•    Highlight the close match that exists between your product or service and items on their selection criteria

When assessing and choosing a supplier, clients use selection criteria that can be categorised as essential and non-essential. They also use this to compare the advantages and disadvantages of each proposal.

Example:
Selection Criteria – Service, Cost and Quality
Successful Proposal – Service, Quality and Cost

Some clients will place weighted scores on each criterion particularly when a major decision will need to be made. A perfect match between the selection criteria and the successful proposal is unlikely so some negotiation maybe required. The successful salesperson will be the one who has been able to achieve the closest match between the client’s selection criteria and their proposal.

Common strategy mistakes

•    Failing to ask the right questions to uncover the selection criteria

•    Assuming the selection criteria

•    An inability to modify or expand on the selection criteria so it’s a closer match to the salesperson’s proposal

•    A mismatch between the selling and buying cycle stage

•    Not linking key selection criteria with significant product or service value.

To achieve a successful outcome in the analysis stage is no easy task. This is because the range of people involved in the influence of a decision and their individual motives can vary greatly. Competitor influence and people’s natural resistance to change also play their part.

Modifying the selection criteria requires one or more of the following strategies:

•    Write or verbalise a selection criteria statement based on the client’s needs and the advantage/s of your product or service. Encourage involvement and provide good business reasons for the client to use the selection criteria to make their decision

•    Reaffirm your product or service advantage/s and its compatibility with at least one essential criteria

•    Increase the value of criteria that is believed to be less essential. It may have been missed or discounted previously and should be revisited.

Strategies that can work are:

•    Negotiating and being innovative by offering something different but still satisfying the client’s criteria

•    Showing how other criteria is equally important

•    Expanding the criteria to include others so as to take the focus off those you can’t meet. This is the most risky and most difficult strategy and needs to be used with great care.

Gaining a competitive advantage through differentiation
A successful differentiation strategy is one in which the client has chosen your product or service over your competitors because they believe the difference is one they will benefit by. An example is superior customer service.

To qualify as a differentiator it must first meet the client’s needs and there must be a measurable difference between you and your competitor’s offering or the client’s internal alternative.

There are two categories of differentiators:

i) Tangible differentiators
Clients can easily measure tangible differentiators, for example a specification. If your product or service includes a tangible differentiator which is in their selection criteria, your proposal will be favoured. When clients need to make a quick decision they often rely on tangible differentiators.

ii) Intangible differentiators
Clients can find these more arduous to measure because of the very nature of an intangible differentiator, for example the level of commitment to customer service.

Clients are increasingly looking at differentiators to make their decision. Depending on the importance they place on tangible or intangible factors and how they align with your proposal will determine the easy or difficult of the sale.

This concludes Part 1. Part 2 will provide you with stages 4 and 5 of the buying cycle and the Selling Cycle including Sales Pipeline difficulties.

If you would like to discuss this topic or any other on sales then contact Kurt Newman direct on 0412 252 236 or email kurt@salesconsultants.com.au

The following are common myths about developing a salesforce:

Myth #1 – Strengths will take care of themselves
The assumption is it’s a waste time working on the things you are really good at and the greatest area of growth comes from working on weaknesses. Right? Nothing could be further from the truth. If a salesperson’s weaknesses were addressed then at best they would become an average sales producer. The risk is by not using their strengths and concentrating on weaknesses the strength will be lost. Professional athletes for example always work to enhance their strengths and never their weaknesses.

Myth #2 – We can be competent in anything we believe we can do
This comes from the power of positive thinking going one step too far. Competence is beyond merely believing we can do anything. If success is out of reach after diligent practice of core strengths you may be trying to develop competence from a weakness.

Myth #3 – Success and failure are at the opposite end of the scale
This is an oversimplification. Success is not the opposite of failure. In reality there are too many degrees to make such a judgment. For example why one salesperson has failed won’t explain why another has succeeded.

The following definitions can create clarity to improve individual sales performance:

• Strength
A strength is an unfailingly near flawless execution in an activity that can be performed repeatedly and  in an enjoyable manner. A salesperson doesn’t need to have strengths in every sales task to do well in sales. For example if a salesperson is exceptionally strong at the Warm Up stage of the sales process but weak at Closing they can create a sales environment  in which most clients will initiate the close

• Weakness
A weakness is any action that prevents consistent outstanding performance. If a salesperson feels great discomfort and drained of energy every time they perform an activity it’s usually an indicator of it being a weakness

• Talent
Talents are the natural recurring patterns of thought, feeling or behaviour. For example a salesperson who is naturally friendly. Talents have a ‘feel good’ quality about them.  Talent with knowledge and skills can form the foundation of a strength. A strength can only be a strength when talent underlies it

• Sales Knowledge
Knowledge can be factual or experiential. Factual knowledge can be obtained through various means such as in books or structured classroom learning. Experiential knowledge is derived through life’s lessons. A salesperson needs to have both forms of knowledge in order to be exceptional in sales

• Selling Skills
Skills are the steps that make up what needs to be done and, when coupled with experiential knowledge, brings understanding. When a salesperson is able to apply a skill it means they are able to follow the steps in an activity. For example by following the sales process they can be good at selling but to achieve outstanding performance requires talent to be present

Developing a strength in a salesperson starts through identification of their talents and refining of the talents with knowledge and skills.

Uncovering Strengths
There are three indicators to uncovering a possible strength:

1. Passion
A passion can start early in life and create an attraction toward a profession or an activity

2. Assimilating information easily
If learning is quick and the ability to apply skills with little or no difficulty then there is a good chance a strength is present. Another good indicator is when the volume and intensity of learning do not diminish enthusiasm

3. Enjoyment
Enjoying an activity triggers internal motivators that leave good feelings. Enjoying an activity can also indicate an underlying talent.

Managing weaknesses
As defined previously a weakness is any action that prevents consistent outstanding performance so when a salesperson experiences difficulty it’s because they have a low level of, or no talent, knowledge or skill in the activity

The first step to manage a weakness is to identify if it is a lack of knowledge, skill or talent. If poor performance is due to a lack of knowledge or skill then structured learning and or sales coaching is the answer. If after this process sales performance continues to be below expectations then there is a weakness.

Strategies for managing a talent weakness
Any one or a combination of the following strategies can assist the salesperson to manage their weakness:

1. Work to improve
Through sheer hard work and persistence the weakness shouldn’t get in the way of the salesperson’s strengths. For example this could mean doing exercises in active listening

2. Develop a back-up system
A back-up system can be anything that will keep the salesperson on track. For example, if time management is a weakness use a smart phone with the vibration mode switched on and activated as a reminder of an impending meeting

3. Use a strength to overcome a weakness
For example if a salesperson has a talent for being self disciplined, self-motivated and a high need to achieve but has a prospecting weakness, this person will work twice as hard to get the results needed.

Develop a profile of every salesperson in your team and list their strengths, weaknesses, talents, sales knowledge and selling skills. Then outline your action plan for how you will grow their individual selling strengths every time you coach them.

If you would like to discuss this topic or any other relating to sales performance then contact
Kurt Newman direct on 0412 252 236 or email kurt@salesconsultants.com.au

Great sales coaches use the following tools:

•    Standardized formal sales process to create common understanding
•    Active listening and questioning skills so they can replicate a sales situation
•    The ability to shut up and let the salesperson lead the sales call even if they are failing
•    The ability to role-play the salesperson’s part of the sales call
•    The ability to uncover and question everything they hear
•    The ability to remain in the moment and not become emotionally involved
•    They don’t need to seek approval so they say, ask or do whatever is necessary to get the salesperson to the next competency level
•    Patience so they can take small steps to clarify a situation
•    Their hands on experience
•    Their wisdom based on years of experience
•    Their sense of humour by keeping it light
•    The respect of their salespeople
•    The trust of their salespeople
•    The relationship they have with their salespeople.

The sales coaching framework
Sales coaching sessions are done between pre-identified client and prospective client sales calls. The environment can be in the car, in an open area such as a park or in a café. One or more of your salesperson’s previous sales calls is used as an example for learning.

As a sales coach you will need to consider:
•    The salesperson to be coached
•    The objectives
•    What you need to ‘bring to the table’ to develop the salesperson
•    The expected outcomes
•    What you will do if the objectives are not achieved
•    The objectives for the next coaching session

This framework will help you to determine the priorities, time allocation, frequency of each sales coaching session and the manner in which the goals are to be achieved.

What do you need to focus on during sales coaching?
You will need to focus and work on three areas with your salesperson:

1. Sales Strategy
This relates to the client and potential clients, selecting the right product or service offering and pricing

2. Facts
These include ratios and percentages such as the sales call to order ratio and sales margins. When this information is linked to the sales process facts can provide an indicator of future activity and sales results

3. Sales behaviour
Notice what the salesperson does before, during and after the sales call. Do they understand what they are doing, have they followed the sales process, have they applied skills correctly and can they self-correct? If not what competency gaps are there? What do you need to show and demonstrate?

Sales coaching styles
Every sales manager or sales coach has a sales coaching style. What is yours? Start by reviewing your natural sales style/s. A good tool is the Sales Style Indicator In-depth Interpretation from CRG Leader (www.crgleader.com). It will provide you with information about your natural strengths, common areas of difficulty, reactions to stress, team functioning and compatibility with other styles, leadership implications and how to increase effectiveness.

Though the focus is on sales it will provide you with valuable information that will assist you to understand behaviour changes you may need to implement in order to work more productivity with the salesperson. Read their In-depth Interpretation to give you greater insight.

Salespeople want to know how you can help them become successful and by developing your coaching style and competence as a sales coach they will look forward to learning and working with you. Your job will also become more enjoyable. Your salespeople will want to follow your example and through this they will grow in sales competence.

Allocating time
Within a salesforce there are 3 categories of salespeople that determine where you should spend most of your time in order to maximise sales performance.

1. Concern Category
These are the consistent low sales performers. Unfortunately most sales managers spend a great deal of their time working with these salespeople in an attempt to improve sales. These salespeople tend to rely heavily on the support of their sales manager.

Action – If you have this category of salesperson then you will need to cut back on the amount of time you give them. Start by asking them what they think the answer is to a problem rather than providing it. Reduce your infield sales coaching time and replace it with a phone call. Set a realistic sales target and time frame. If the sales target is not achieved you will need to take action. They may be suited for a different role in the company?

2. Top Performer Category
It is not uncommon for these salespeople to feel neglected because they receive minor or no sales coaching from their sales managers. This can affect their attitude and result in their being difficult to manage. They usually outsell the combined efforts of the average players in their salesforce so sales management think they don’t need further development.

Action – Seek the top performers’ input as to the number of sessions and the objectives. They usually only need minor skills refinement which then further enhances their sales performance and motivation.

3. Average Category
The majority of salespeople are in the average to above average range in terms of their sales competence and sales results. There is usually at least one salesperson in this category who has the potential to become a top performer.

Action – Schedule regular sales coaching sessions for this large category and identify the salesperson who has achieved level 4 or 5 sales competences. Assess their talents and strengths and outline a fast track sales development plan because they will provide you with the greatest single increase in sales.

Conclusion
Successfully coaching your salespeople requires you to be a competent salesperson in your own right, the ability to demonstrate how skills are applied within a structured sales process and to be able to develop trust in your salespeople. Go for it!

•    Assuming the salesperson has the skills to perform the task
•    Getting rid of tasks you don’t want to do believing this is delegation
•    Doing the task yourself because “nobody can do this better than I can”
•    Dumping volumes of work onto a salesperson to clear your desk

These examples and there are many others the outcome too often is disappointment, low morale through to revenue targets not being achieved.

The good news is most salespeople welcome the opportunity to get involved and to be trusted to take on more important responsibilities and activities. Their work becomes more interesting and rewarding.

Effective delegation can provide development opportunities, lift self-worth, motivate, balance workloads and create a positive work environment. The importance and value of delegation for the salesperson, the sales manager and the company should not be underestimated.

Delegation of authority
Delegation means to assign responsibility and authority to another person to achieve specific outcomes. Whilst delegation can be challenging and involve risk a common criticism is that only responsibility has been delegated and not the authority. Tasks should never be delegated unless accompanied with the appropriate level of authority to complete the task. The ultimate responsibility for achieving the outcome however remains with the sales manager.

Delegation involves explaining what has to be achieved. The salesperson then has to work out how they will achieve the result by thinking about what is involved, consider the alternatives, select the most appropriate option and implement it.

Delegation of authority can be temporary or permanent. Permanent delegation is linked to the company’s structure and lines of authority such as the amount of monthly expenditure allowed. Temporary delegation provides development opportunities for the salesperson.

Advantages of effective delegation
The main advantages are:

•    You can leverage your time and  productivity
•    You can develop the skills, confidence and the job satisfaction of your salespeople
•    You can increase motivation and efficiency
•    You can observe and evaluate the potential of your salespeople
•    You can create a climate of achievement and high expectation

What prevents delegation?
There are up to 3 areas that can prevent delegation from happening:

1.    Yourself
Are you suffering from 1 or more of the following symptoms?

•    Work evenings and on weekends
•    Feel overworked and exhausted most of the time
•    Need to attend to many crises
•    Find it difficult to meet deadlines
•    Self-defeating self-talk such as;
-    “The salesperson could fail and that would make me look incompetent”
-    “I enjoy this part of my job so why give it to someone else?”
-    “I like to keep my hand on the pulse”
-    “I have to handle this one personally”
-    “Everyone is too busy”

2.    Your salespeople:
•    Regularly interrupt you to ask for your advice
•    Rarely come to you with new ideas or suggestions to improve their work
•    Show little or no initiative
•    Only do what they are told to do
•    Avoid making a decision without asking you first

3.    The company:
•    Decisions, even minor ones, need senior management approval
•    Criticism is common and outweighs praise or recognition
•    Slow to react to change and have a  tendency to follow a competitor’s lead
•    Areas of responsibility are unclear

What can’t be delegated?
The following cannot be delegated:

•    Tasks that are beyond the salesperson’s competence
•    Hiring and termination
•    Disciplinary and performance issues
•    Policy, security and confidentiality matters
•    Business concerns relating to overall control
•    Praise, reward and recognition
•    Sales awards
•    Promotions
•    Pay and remuneration

Prepare for delegation
Begin by asking yourself the following questions:

1. What result do I want to achieve?
You may want to write notes of specific outcomes you need to achieve

2. What learning and development opportunities are there?
Identify the specific competencies including personal attributes the salesperson could learn

3. Select and evaluate the salesperson for the task
It’s easy to delegate a task to the most competent salesperson but would it be more appropriate to delegate the task to a salesperson who would benefit the most from the experience? This could be someone who:

-    Should be fast tracked
-    Shows the greatest aptitude
-    Is the most dedicated
-    Is seeking greater challenges

When considering a salesperson:

-    Assess their strengths and weaknesses
-    Ask yourself how would they work with others?
-    How do they cope under pressure?
-    Are there any competency gaps the salesperson has? If so what will I do?

How to delegate
There are 3 actions to effectively delegate:

1. Clarify
•    Explain the whole task clearly, even if the salesperson will be responsible for achieving only part of the outcome. This will help them to understand the full extent of the task and it will create ‘buy in.’

•    Explain the task in bite-size steps and the result that they will need to achieve and why it’s important. Make sure they understand by asking regularly for feedback. Example “To make sure I know you have understood would you mind telling me what we have just agreed on?”

•    Don’t expect the salesperson to follow your instructions verbatim. Encourage them to use their initiative and to ask questions.

2. Measure
•    Agree on a realistic and achievable time frame or expected outcome. Ask how the delegated task fits into their current workload

•    Ask questions to ensure there are no competency gaps needed to perform the task well

•    Agree on the boundaries of authority so they are able to execute the task properly and agree on when and how you will keep in touch. It is not to undermine their authority and if the communication is conducted well it may minimize any problems and build self-confidence

3. Follow-up
•    Unless urgent stay with the agreed times and the follow-up format. Unexpected follow-up or spying will only undermine their self-confidence and trust in you

•    Provide constructive feedback and limit criticism to major concerns only

•    Offer alternate solutions or actions for them to consider

•    Explain any repercussions for their intended action

•    Look for success no matter how small and give full praise and recognition. This is an opportunity to create a learning experience. For example: “Congratulations on a very productive day. Your improvement in qualification has resulted in 2 new accounts. A great job!”

•    Always encourage the free flow of information and focus on results

•    Avoid doing most of the talking. You will be sending the wrong message

Conclusion
Whilst delegating can be challenging and at times mistakes will be made it is well worth doing for the development opportunities it can provide for your salespeople, your personal growth as a leader and for the prosperity of the company. The all-round benefits of delegating grossly outweigh any risk of failure.

If you would like to discuss this topic or any other relating to delegation then contact Kurt Newman direct on 0412 252 236 or email kurt@salesconsultants.com.au

So what is mentoring and its value to a business, a salesperson and a sales manager to become a mentor?

Mentoring is the term used to describe a relationship between an older and more experienced individual who is known as a mentor. Their role is to support and guide a less experienced individual, the protégé.

A mentor fosters the personal and professional growth in their protégé by sharing knowledge, skills, experience and insights that have been learnt over many years. A mentor’s background can vary greatly from the same profession and same position as their protégé’s through to a completely different industry.

Mentoring creates an exceptional opportunity for cooperation, goal achievement and personal development. An effective sales manager mentor can establish rapport, respect and trust between them and the salesperson

Mentoring a salesperson can provide:

•    Purposeful learning
When the sales manager also becomes the mentor their role is to encourage and advance the growth of the salesperson though planned learning. This includes their sharing learning experiences as and when the experiences relate to the salesperson’s need to learn. The experiences are communicated through anecdotes, scenarios and situational examples.

Both successes and failures are discussed in an open and truthful manner. These insights are often memorable for the salesperson and provide valuable learning

•    Cooperative responsibility
This means sharing the responsibility for the learning outcomes. This can be formalized in   a written agreement between the salesperson and the sales manager and designed to achieve the business’ specific mentoring objectives. The other type of mentoring is informal in that it operates by chance and for the most part is unrecognized by the business. Whatever method is used the salesperson’s growth is the focus

•    Allocating time
Effective mentoring requires regular interaction between the sales manager and the salesperson and is not done intermittently. A schedule needs to be developed with dates, activities, planned experiences, demonstrations, case studies, and time set aside for reflective analyses. This adds motivation and direction for both parties.

For the business mentoring a salesperson can:
•    Cultivate loyalty
•    Boost morale and motivation
•    Strengthen shared values and goals
•    Uncover Talent
•    Improve productivity
•    Set new standards of professionalism
•    Increase the years of service to a business
•    Be an effective career management tool
•    Enhance leadership skills of the sales manager
•    Identify any barriers in the business
•    Attract quality salespeople from other companies

For the salesperson mentoring can:
•    Fast track their development
•    Complement other structured learning or training
•    Be tailored to suit the salesperson’s needs in terms of content and time frame
•    Create an open and trusting relationship that provides encouragement and support
•    Develop and explore their natural talents
•    Expand current thinking and embrace new perspectives
•    Reinvigorate their selling career
•    Challenge the salesperson with new skills and ideas

For the sales manager mentoring can:
•    Be the vehicle to share knowledge and expertise
•    Develop skills in a more personal manner
•    Build active listening, communication and modeling skills
•    Develop a trusting and unique relationship with the salesperson
•    Expand their understanding on what else is happening in other parts of the business
•    Uplift their level of self-worth
•    Receive professional recognition for their role
•    Expand their expectations of self

Qualities of an effective mentor
Not every sales manager has the attributes to become a mentor. This can be because of their background or their lack of interest in this type of work. A senior salesperson with the right attitude and skill set may be better suited for the role? Often the driving force is a need to give back to others who will benefit from their experiences.

The following qualities however are common in all effective sales manager mentors:

•    A successful track record
The sales manager may come from a different industry or profession but their level of expertise and experience is evidence of an individual who has ‘been there and done that.’ They can have a good reputation for developing others and possess a humble approach to their abilities. They have much to offer others

•    The desire and commitment
The desire to be a mentor is a yearning from within that propels them into action and is underpinned by a feeling of excitement and the thought of the doing something extraordinary. The commitment is the sales manager’s pledge to continue working with the salesperson on the mutually agreed plan

•    The ability to model
With this carries much responsibility because the sales manager needs to be an individual with a good moral reputation and is respected and admired by others. This is the reason why their behaviour is often copied by the salespeople. The mentor remains calm when the salesperson expresses frustration or anger. They show that they genuinely care about the success of the salesperson as much as the salesperson does.

•    A positive attitude
Often a sales manager was the past recipient of formal or informal mentoring so they know what it feels like and the benefits of being mentored. One of the many things they learnt as a salesperson was the importance of being positive particularly when things don’t go according to plan. These are the times when they need their sales manager to give them encouragement with a positive attitude

•     An active learner
Sales managers keep up to date with current technology, the latest in business and personal development, knowledge and skills in their field of expertise. They research and discuss areas the salesperson may need to further their development

•    Time and boundaries
An agenda and the required time is allocated for each session. It is usually a mixture of meetings in and out of normal business hours. Additional time is needed for the sales manager to prepare for each session and complete post meeting notes of the outcome. The boundaries of the relationship are discussed so both parties know the limitation of their engagement.  For example marriage difficulties won’t be discussed

•    Compatible
Not every sales manager and salesperson relationship is compatible for a number of reasons including a lack of openness on the part of one party and if one isn’t ‘sold’ on the other. What works is:

-    When both the sales manager and salesperson have similar goals

-   They genuinely like and believe in each other

-   They have an open and honest relationship

-  When expectations such as what can and cannot be realistically achieved are discussed   up front.

Conclusion
Mentoring isn’t for everyone. It may not be in your natural make up to be a mentor in which case actively look for someone who would be. It can be hard work and require your time and commitment. However, mentoring can also be a most intrinsically rewarding experience.

If you would like to discuss this topic or any other relating to mentoring then contact Kurt Newman direct on 0412 252 236 or email kurt@salesconsultants.com.au

According to a 2009 survey conducted by the CEO Institute, the number one challenge for the rest of that year was “maintaining sales”.

Since then I have met with numerous business leaders and without question their biggest challenge now is “maintaining margins”. I wonder if the game plan set out then to keep the volume of sales up, may be at least in some part to blame for a few headaches now. The widespread frustration voiced is that their salespeople fail to defend value, instead caving in and offering discounts way too readily and yet all too often still walking away without the order.

“You don’t win tournaments by playing well and thinking poorly.”
Lee Westwood

A client was recently telling me that his clients always squeeze him on price and that to win their business he had no choice but to give in. I questioned him further as I know he is relentless in pushing his suppliers for their lowest price, playing one off against the other. Also when buying things for himself and his family he behaves the same way, going from store to store, website to website in search of the best deal. We discussed this and concluded that because of his buying behaviour he unwittingly expects his clients will do likewise – he’s going into sales meetings with the expectation of being asked for a discount.

We hope our salespeople have the outward selling skills and product knowledge they need, but if they’re thinking poorly they’ll forever be vulnerable.

Objective Management Group’s  CEO, Dave Kurlan identifies a “Non Supportive Buy Cycle” as the most powerful weakness our salespeople can have. He explains “It is an extremely powerful weakness but very difficult to accept. While everyone will agree with the reporting of “how” they buy, it often takes some time before they understand and accept the impact that Buy Cycle has on the way they sell.”

He goes on…. “a non supportive buy cycle makes salespeople more vulnerable to stalls, put offs, lies, excuses, sob stories and other forms of “ I need to think it over”. The only solution to this problem is to change the way your salespeople make purchases.”

To pinpoint how widespread this issue is I selected data from four companies I have recently worked with, each operating in very different marketplaces. The test data comprised 68 sales managers and salespeople. Of this number 46 or 67.64% self evaluated as having a non supportive buy cycle.

Help! Two out of three of our salespeople need to think about it before they make a decision to buy something, merrily comparison shopping, gathering information and looking to get the best price. It’s clear that until this weakness is identified and resolved they’ll keep on giving our profits away.

Strong salespeople are impulse buyers. They see something they want and if they believe they can afford it, head straight in there and buy it. Sure they could get the same thing for a bit less if they shopped around but that’s not the way they think, instead seeing the value of making the decision there and then.

How does this affect them when selling? Put simply, they go into a sales meeting assuming their prospect will buy. Because they don’t quibble over a few dollars here or there, they don’t expect their prospects to either.

I discussed this issue with my colleague Dr John Gora  and he pointed out that whilst the strong salesperson will believe the sale is going to happen or at least progress will be made toward that end, they must not assume how the prospect will arrive at their decision to buy, the steps they need to go through. When coaching salespeople around this weakness he advises there are usually issues of low self esteem playing a part and that getting the individual to focus on the qualifying process is an excellent way to neutralise the weakness.

So what steps can we take to firstly identify and then manage this weakness within ourselves and our sales teams?

•    Look at the way you buy things, not the day to day stuff, instead more costly items. Are you hesitant? Do you seek out the best deal? Carry out extensive research? Go home and think about it? Squeeze suppliers for a lower price? If so you may well be vulnerable to giving a discount yourself and accepting put offs.
•    Instead ask yourself “Why do I want this?”, “What will it help me do?”, “What problem will it solve?”
•    Before setting out, establish your budget and stick to it and know where you want to buy from.
•    Make a decision. If you’re not ready to buy now don’t go shopping, do something else. Don’t go into a shop and have to answer “just browsing thanks”.
•    If you manage others in a sales team question how they buy things. Do some of your salespeople always drive a hard bargain? Are they the ones who struggle to maintain margins?
•    When hiring new salespeople find out how they go about making decisions to buy. If they give a long winded tale of how they went from A to B, dealer to dealer etc be very wary, particularly if you’re in need of a genuine new business generator.

“If it makes sense for us to do business, let’s work together, have fun, and make some money. If not, let’s find out quickly, shake hands, and part friends”
Mahan Khalsa

“The Way We Buy Is The Way We Sell – If We Push On Price When Buying, Is It Really Any Surprise That Our Prospects Do The Same?”
© Copyright 2011 Julian Griffith, The Good Peanut

So how does a business owner or sales manager motivate their salespeople? Where does motivation come from? With so many myths about motivation, as covered in last month’s Motivation and Sales Performance Part 2a Sales Myths it can be quite perplexing.

Let’s face it motivating salespeople is no easy task. It is a job that never ends and requires you to have a high level of self motivation and commitment to every salesperson in your team.

Motivation is an inner drive, an energy that propels a person into action to achieve a goal. It can be influenced by internal and/or external factors. These are referred to as intrinsic and extrinsic motivation.

Intrinsic motivation
This comes from within and is the desire to perform a task because it is of interest enjoyable and a skill is developed that in itself is rewarding. When a salesperson is intrinsically motivated they find:

• It easy to maintain focus
• They want to do well because the task is enjoyable
• They will do the task even if they don’t get remunerated for it
• The commitment to master the skill and be the best they can be
• Enjoyment because they are in control of what they are doing
Intrinsic motivation can only happen if the salesperson is happy to do the task. It doesn’t work if they are feeling down.

Extrinsic motivation
Working hard particularly when times get tough along the journey to winning the award is not something a salesperson will delight in. But the thought of winning the award can keep them going.
Designing an extrinsic incentive is easier than motivating intrinsically. With an extrinsic incentive, focus salespeople on the goal and the reward and not on the process of how to get there. You will need to take into consideration:
• Salespeople who won’t be motivated by the reward. If so what can you do to convince them or modify the reward?
• Possible short cuts a salesperson may take to win and the ramifications of such action
Sales management’s greatest challenge is to implement an extrinsic motivator that has meaning. The extrinsic motivation can be internalized and become intrinsic if it complements the salesperson’s values and beliefs. As sales management learn and understand their salespeople better this will become easier.

Reinforcement
Reinforcement is designed to encourage the salesperson to repeat certain behaviours without reinforcement the likelihood of repeating the desired behaviour is diminished. It’s about creating an environment that the salesperson likes and wants to be in or punishment which is to create an environment the salesperson dislikes and wants to avoid. Noticing what a salesperson does is often an indicator of the type of reinforcement used by sales management.

Positive Reinforcement
Positive reinforcement is a reinforcer used after a particular behaviour that strengthens the behaviour. Positive reinforcement is more effective in terms of altering behaviour and therefore the chances of the salesperson’s repeating the desired behaviour in the future is far greater. There are 3 types of positive reinforcers:

Social reinforcers – Any public recognition such as an award presentation

Activity reinforcers – For example the conversion ratio of customer calls to orders confirmed

Intangible Reinforcers – These are the acknowledgements for a job well done. Salespeople don’t tire of being given praise or recognition when it comes from the ‘heart.’ For example “Sandy, I thought you did a great job in handling that difficult customer, particularly the way you empathised with their situation.”

Negative Reinforcement
Negative reinforcement is designed to stop or avoid an unwanted condition so as to increase the strength of a desired behaviour. For example, a salesperson attends quickly to a customer complaint to avoid their aggressive manner. The strengthened behaviour is the salesperson’s quick action. Negative reinforcement is not punishment with which it is often confused.
Both positive and negative reinforcers have the same effect: they both strengthen particular behaviours.

Punishment
The traditional view of punishment is about modifying a salesperson’s undesirable behaviour. Punishment does change behaviour but only temporarily and it presents many damaging after-effects in terms of morale and performance issues. Usually there are clear behaviour signs that if they had been addressed earlier mean punishment could have been avoided.

What motivates salespeople?
The most effective way to motivate salespeople is individually. A blanket approach to motivation doesn’t work. One of the best known management theorists is Abraham Maslow who developed the Hierarchy of Needs.

Abraham Maslow classified human motivation into 5 hierarchical stages. The following explanation of his theory has been adapted into a sales context:

Self Actualisation
These salespeople like to test their personal potential and prefer to work solo to push boundaries. They are solid sales performers and are motivated by being shown the little things that will fine tune their selling skills. They tend to be impatient with sales managers who can’t add value to their sales performance

Ego
These salespeople are driven to achieve social status and recognition within the sales force by winning sales awards. Whilst they can be outstanding sales achievers they rarely succeed as a sales coach.

Belonging
These salespeople can be preoccupied with social relationships and therefore become too concerned with being accepted by their customers. They are usually reasonable sales performers

Security
These salespeople are rarely successful because they are too concerned about their job security. Motivation is difficult unless they progress higher up the hierarchy

Basic
These salespeople like to remain in their comfort zone and avoid prospecting for new business. In most situations they are a wrong hire.

Salespeople as any other profession are motivated by different things so a one does all approach doesn’t work. It’s up to you to get to know each and every salesperson in your team and understand who they are and what will motivate them to higher levels of sales performance.

If you would like to discuss this topic or any other relating to improving sales performance then contact Kurt Newman direct on 0412 252 236 or email kurt@salesconsultants.com.au