Sales Training Without Coaching is like Buying a Car Without a Steering Wheel

I did a presentation to a prospect a few weeks ago who is frustrated with his sales team not being able to close new business. During my probe of his particular challenges he said they conducted a “mystery shopper” test where a potential “prospect” called into their office asking questions about their product. The sales assistant properly responded by asking a few qualifying questions and told them she would have one of their sales team call them back. One lead was given to each of ten sales reps. The result? Only 3 of the 10 sales people actually called to follow up with the potential prospect.

As a manager what is your first reaction to that result?

Fire the sales people who didn’t follow up? Implement a CRM system so management can better follow up on the status of the leads? I hope you said no to each of those “solutions” (although they are viable considerations) because the correct answer is the SALES MANAGER should be fired! Is that too extreme? Stop for a moment and calculate 7 missed opportunities of a prospect calling you wanting to do business. Then add to that number potential repeat business loss, upselling loss and vertical integration opportunities lost. In this particular organization the potential was over seven figures in lost opportunities.

This particular client originally asked me to conduct sales training. Not following up on leads is not a training issue … it’s a personal skills issue. Lack of personal skills of the sales team is definitely a serious problem (results orientation, self starting, personal accountability), but more importantly, at the sales management level. I have always preached, ‘I have never seen an “average” sales force with an “outstanding” manager.’ Your sales manager sets the expectations for their direct reports and then coaches to those expectations. If the sales reps don’t perform to those expectations a top sales manager will coach them “out” and find someone who can.

Your sales manager is the steering wheel of your sales team. You may have a great looking, professional sales team (Mercedes S Class) with a lot of talented, experienced sales professionals (fully loaded options), but if your sales manager is not out in the field observing their people in the field, coaching them to expectations (steering wheel) and holding the sales team accountable to those expectations you may not even know how many lost opportunities exist within your organization.

With all the optimism of the economic recovery into 2010 most organizations are beginning with their sales teams and working with them to be out ahead of their competitors. I encourage you to “put the horse before the cart” and begin with your sales management team. If they are excited, optimistic and determined and have a solid sales process in place your sales team will rise to their level of expectations and coaching.

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Do you know the real armor being worn by the competition? – Determine the Effectiveness of Your Sales Efforts (Part 2 of 6)

Being prepared for battle is essential if you are going to emerge victoriously on the sales battlefield. You must have an ample supply of armor piercing weapons in your arsenal so that you can actually penetrate the competition’s weak points as well as prepare for the proper defense in areas that you do not measure up to.

As mentioned previously, there are key questions that you need to ask in order to prepare an analysis of your competition that will allow you to develop the right plan of attack.

Competitive Analysis:

Here are the 5 questions you should ask in order to analyze the competition

1. Who are your major competitors and how are you different? Being able to differentiate yourself from the competition will allow you to compete on more than just price. In order to confidently convey to your prospects and customers why they should do business with you, it is important that you take the time to understand the truth behind how you are different. Without differentiation then the lowest priced provider will prevail.
2. What new competitors have entered the marketplace in the past three years? This answer may give rise to a growing market segment that has potentially been underserved in your industry. Perhaps, a new way of doing business has been developed by these new upstart competitors and they are able to capitalize on their innovative approach to the market. If they are winning business, it is possible that your market still has room for growth but watch out for the sly fox that is simply stealing away your customers because they are outselling you. At the least, you will gain some insight into why these new competitors are gaining ground.
3. What is your competition’s marketing strategy? Knowing the message your competition is consistently communicating to the marketplace will allow you to prepare your own unique marketing messages in a way that elevates you above the competition. Are they touting benefits that you have but are not conveying? How many times have you lost a sale only to find out that the reason is because the competition pointed out a benefit that they provide and you did not point out the same benefit? Be aware of the exact messages your competition is sending to the marketplace.
4. Why have your customers chosen you over the competition? An obvious question, but one that many sales organizations do not even know the answer to. Let your customer talk and be thankful for every insight they give you.
5. What market segments will provide you with home-field advantage? It’s far easier to win when you have the home-field advantage. Your advantage will be in markets that you have a stronger presence in over the competition. Use these markets for leverage as you begin attacking other markets that your competition may do a better job in. It may be that you need to spend more time in this market than you have done so in the past.

All of these questions are designed to provide you with a framework for understanding your strengths and weaknesses as compared to those of your competitors. Part Three of this blog series will look at Customer Buying Intelligence.

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B2B Sales vs Retail Sales

Over 1 million people have viewed this video to date and it is a shame 1 billion people have not. I have always found it interesting that retail businesses have had the ability to establish price and for the most part that price is non-negotiable.

Why is it that in B2B sales everything appears to have some level of negotiation? However, in our roles as consumers for items such as office supplies, food, gasoline and a host of other items; we seldom think twice about paying the listed price.

It is amazing to me how many sales people ask the question “Where do I need to be to make this deal happen?” That is just setting up a price war, and no one wins at price wars. This only perpetuates the situation and conditions our buyers to thinking price is negotiable.

Learning to present price and negotiate can go a long way in reducing the amount of push back you receive when it comes to price. Always remember that when you lower your price without getting something in return, you are not gaining business, you are losing profit margin.

CLOSING

Last week on a discussion board, there was a considerable thread about “closing techniques”. Various “sales experts” got on and started dialog about The Ben Franklin Close, the silent close (down to the clicking your pen before you slide it over the table) and other closes.

I thought to myself, man what do these guys sell and what kind of relationships do they have with their customers, that they have to try and manipulate their prospects with tactics?

I always knew IMPACT Selling™ was an outstanding selling system but seeing the way these guys treat their prospects and clients was just another example of why IMPACT works. It works because it is not about us as the sales person, it is all about our customer and solving their problem.

Closing is easy, but only when you do everything else right. Closing is not a destination, it is the beginning of referrals, continuous business, long term partnerships and that can be said with almost anything you sell.

Why downgrade your position with cheesy closes and lines and tactics? Just follow a process, and most important keep the focus on your customer’s needs, wants and make the value of buying from you so superior that when it comes to the end of the presentation or recommendation that your prospect will ask you how to get started.

Remember, people would always rather buy something than be sold something.

Always Be Learning…

Recently I tried out to be a referee for the 2010 Men’s Lacrosse World Championships (the equivalent of the World Cup in soccer).

There were 84 players trying out for Team USA and 19 other referees vying to be the U.S. representative for this prestigious event. Well, I worked hard and when the tryout was over I was not selected.

As much as I wanted to be a part of this and be recognized, I will say I was disappointed in not being selected. But you know what — that disappointment went away very quickly because I immediately shifted my focus to working towards tryouts for the next event. I took feedback from my peers and assessors, and am implementing steps that will leave me better prepared to qualify when tryouts come around again in 2013.

What does this have to do with sales? Everything! As professional salespeople we must continue getting better. Never be satisfied; never be complacent. As a salesperson myself, I know when I gain a new client I always take time to celebrate in some way. But that may also be the best time to uncover how I could have done something better — maybe asking a different question or sending a client an article relevant to them might have garnered me a greater margin or a significant referral.

I encourage you to do something every day that will improve you as a person, salesperson or sales manager. Whether it is reading a book, an article or something as simple as asking a prospect or customer how they feel about how you interact with them.