Sales Management

I recently came across an article written by Toni Hankins in the September 2009 issue of Selling Power Magazine. The piece was titled Sixteen Ways to Survive a Recession and Build Your Sales. What at first sounded like such a negative title contained a very upbeat commentary. The sixteen points Toni raised should serve as a guide and a reminder to all sales managers. Even ‘coaches’ need to be coached! Here are a few that caught my attention:

• Don’t experience recession – there is business out there. Someone is always buying.
• Get out of comfort zones – get more innovative, entrepreneurial and forward thinking. Flexibility and creativity rule.
• Train to peak performance – the military does not stop training and your sales team shouldn’t either.
• Accept responsibility – it’s your job to build and maintain the morale of your sales team.
• Stay the course – be confident you are doing the right things that will generate the right results.

I loved Toni’s reference to Christopher Columbus “We proceeded south by southwest,” which eventually lead the famous explorer to discover the new world.

Stay the course, be confident and optimistic. Be the leader you know you are!

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by Steve Hackett Filed under: Professional Selling No Comments

Determine the effectiveness of Your Sales Efforts – 25 Crucial Questions You Should Be Asking (Part 3 of 6)

What are Your Customers Telling You….or Not Telling You?

Today we are going to dive into the questions to ask that will give you key intelligence regarding the very foundation of your business…YOUR CUSTOMERS!

Here are the essential questions to ask:

1. How long do your customers stay with you on average? If you sell a product or service with a repeatable purchase history then you will need to know this information. This will allow you to spot trends in your customer loyalty programs. Should you change your programs or are customers leaving you quicker than they were a few years ago? Most businesses will generate 50-70% of their yearly revenue from their existing customers. Increasing customer retention is one of the fastest ways to grow existing revenue. Additionally, it is much more cost effective to retain your customer base then it is to find new customers.
2. Why do customers stop buying from you? Simply ask them! It’s amazing to me how many businesses do not track this information. The answer to this question will provide you insight into the core reasons why your customers leave. A band-aid, fix-it approach is not the solution and maybe you’ve used this method far too many times which is why you are loosing customers. Even if the reason is not your fault, then at least you gain a better understanding of why you lost a customer. Perhaps their top leadership changed and you need to resell the account.
3. What have you done to gain correct information on the following:

   a. Who’s buying your products and services?
   b. Why they’re buying?
   c. Who’s making the purchase decision?
   d. How effective is your packaging?
   e. What is your “Wow” factor?

   All of these questions go together because they are designed to help you with your external/internal marketing efforts. For example, if 90% of your products and services are being bought by CFO’s in mid-size organizations then you have defined your key market. You may want to craft a very targeted and specific message to this group of decision makers. Knowing why they buy provides insight into the trigger events that determine if someone is truly a qualified prospect. Even a minor detail dealing with how you package your product and the very color and contents of the outside packaging can determine a rise or fall in sales.

   Take the time to review these key questions to see where adjustments may be needed.

4. What are your customers really saying about you and your organization?
   Hopefully, they are saying good things. In today’s world of online social-media outlets your customers are going to talk about you. Be aware of what they are really saying. Customers will talk to each other and for your sake that conversation needs to be a positive one. We live in a fast paced world where feedback is instant. Find out where your customers are talking and have a presence there.

Simply taking the time to go through these questions is the first step. The answers will lead you to add some extra meat to your overall strategy moving into 2010. I’m always amazed at how many organizations tell me they have never taken the time to answer these questions.

The questions posed in the first 3 parts have focused on an external perspective. In part 4 we will look at questions that take an inward look at your organization by focusing on the product and services you offer.

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by Tony Smith Filed under: Professional Selling No Comments

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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by Brooks Group Filed under: Professional Selling No Comments