Brilliant: Two more uber posts from the sphere

Since 6am, I have spent an amazing amount of time working on some new projects and an hour ago I needed to take a break. It was a good decision as I when I was reading from my RSS feeds, I found these two gems.

Tim Rohrer at http://salesandmarketingloudmouth.blogspot.com has written an amazing post on word choice. So much of what I share is abut messaging and the power of words. His assault on the “follow up” and “checking in” conversations, made my day! You can reaad it here:

http://salesandmarketingloudmouth.blogspot.com/2008/05/powerful-word-
combinations-and-not-so.html

Colin Wilson, shares some insight on yet another way of looking at the buying side of the selling equation. In his post he clearly outlines what it takes to offer a solution. Simply put, you need to uncover problems that build into needs, THEN OFFER A SOLUTION. If you want a much more eloquent and educational explanation, you can read it here:

http://www.firstborder.com/sales-blog/2008/05/28/solution-
selling-or-selling-solutions/

Both of these gentlemen are part of a group of great sales advisors and I hope to continue finding gems on their blogs.

Ask the Coach: How do managers determine metrics?

Here is a question I received last week. It is from one of my previous team members in Pune, India.

Question:

Hello Coach,

My question is – “How do you decide upon the factor that a rep should make at least 49 dials or 8 connects per day, for the MBO.”
Is there a particular strategy or calculation to come up with this kind of target ??

My senior has asked me to set up 6 conference calls per week, and I am managing with only 3-4 call set ups per week.
He does not consider number of dials or connects, for performance. And, problem is that my prospect list is draining fast with majority of ‘Not Interested’ status comments.

Please suggest me about what i can do to improve my performance, in such a scenario .

Answer:

The answer to how to schedule more meetings comes in two parts. Before we dig into these answers, I want to begin by outlining the first question of how effective metrics are established. I was sitting in the office of the CEO of DreamFactory, and we were discussing the methodologies of the inside sales team and how to make them more effective. When we discussed metrics, I began explaining how you had to work backwards from the end result to the most minute activity. He saw this as obvious, and could not believe that anyone would see it another way. Unfortunately, many people design metrics based on other details, not just the end result. If you want to accomplish a goal, look at how many activities it take to get to that goal. In the case above, 980 calls produced 160 connects. 160 connects produced 3-4 meetings a day. It is from this that you can now build a plan.

The first thing to look at when trying to hit an objective is how successful you are at each leg of your activity chain. In the scenario for this question, the rep is only making 50-75% of their objective. The simplest way to improve this is to increase the number of dials and connects. If you look at the 980 dials to 4 meetings scheduled, this is around 243 dials per meeting. To get to 6 meetings, you would have to increase your monthly dials by 486 a month. This is an extra 25 dials a day. While this may be simple, it is also challenging in the amount of time it takes.

The other thing to look at, and the way I would recommend increasing your number of dials is to improve your ratios of dials to connects, and your ratio of connects to meetings. Let’s look at the connects to meetings ratio. If you are speaking to 160 people a month, and only 3-4 are interested, the message is poor. Work on scripting a compelling entry statement. Find unique reasons to talk to each company. 4 in 160 is a 2.5% close ratio, and frankly this is really poor. I would want to have at least a 25% close ratio in scheduling meetings, and this would mean that I could reduce my connects to 100 a month and still make 25 meetings. Now, how would I do it? I would start by looking at what accounts I target. Next, I would look for the right contact and only call people at the highest possible level. Third I would research the company for reasons they might want to talk to my company. And finally, I would create strong entry statements that sparked interest.

At first this will be challenging as you learn to gather this information and sharpen your message. If you can increase your close ratio to 10%, you only need 60 connects to make your MBO. Your choice is obvious, either increase your activity by 50%, or increase your effectiveness by 7.5%. I know what I would do.

From the newsletter: Interviewing for a Sales Evangelist – The Wants and What Not’s of the Methodology

Interviewing for a Sales Evangelist: The Wants and What Not’s of the Methodology

I am continually asked by peers, managers, and other sales people of every ilk, what are the key things to look for when hiring a sales person? Often I am also asked if there are different things to look for when hiring sales people for a startup. Our feature article today and next month will relate my methodologies when hiring sales people for companies emerging in new sectors. While several of the following points could be leveraged into the interviewing of any employee of a company, today the intent is to share unique points for hunting down evangelists. The seven key areas are:

1.      What questions to ask

2.      What answers to look for

3.      What to expect them to say

4.      How the meeting should go

5.      The key elements of their personality

6.      DISC testing

7.      The feeling you get and trusting your instincts

In this article we will discuss 1-3 and then next month we will look into 4-7.

1.      What Questions to Ask and 2. What answers to look for:

Let us begin with the key piece of the puzzle. If you are not asking the right questions, how can you expect to get to understand the way your prospect thinks. There are five key areas to uncover when looking for a great sales evangelist:

A.    Ambition – The candidate must have drive and goals beyond being a sales person in your company. Look for hungry individuals with an entrepreneurial sense. Two great questions:

a.       If you were not in sales, what would you be doing? Look for an answer that involves leading or owning something. The desire to learn or educate is also a big plus.

b.      What is your greatest personal accomplishment? Look for an athletic or academic achievement, the next best is something that involved making large sums of money. While buying a house, simply finishing school or getting married are great accomplishments, they show a security side of character. We want desire to over achieve. Graduating top of your class, or winning a tournament championship, that is what the sales champion remembers.

c.       Tell me the story of your best sale to date. Look for names of companies, people in the process; a great answer starts with, “Oh that is when I sold XYZ to Jeff over and ABC company…” This is the answer of a winner.

A couple to avoid:

d.      Where do you see yourself in five years? If you cannot give a perfectly rehearsed answer to this question that involves moving up the ladder, you have not been in enough interviews for sales jobs. Try question a. in it’s place.

e.       Tell me what motivates you. Again, brace yourself for the most typical of responses. How can you extract creativity from a candidate if your questions are lacking of it?

B.     Ideals – INTEGRITY IS #1! The modern day sales person must be a pinnacle of business morality. Questionable activity eliminates trust, and in today’s business relationship this is very important. Your sales people are representing your company. The integrity of your team will create the perception of your own integrity. No matter what else is in play, or how much you like someone’s abilities or personality, if you sense a dishonest nature, do not make a hire. Now place on top of this standard opinion that of the evangelist. Your prospects have to trust the sales evangelist to be a business partner with a valuable new idea. There is a greater perceived risk in a new company and a new industry. Without the trust there are only uphill battles. Most of a person’s tendency to be honest can be solicited from how the interview goes. Look for physical behavior as well as asking a basic question.

a.       Eye movement. There is much to debate in this arena, but I am one who believes. At some point early in the interview, determine if your candidate is left or right handed. This should be easy, as they should be taking notes. If not, you have other problems to address. When you ask a question, examine which way they avert their eyes. Look for long looks up and to the opposite direction, or quick looks to the opposite direction without moving up or down. These are signals that the person is constructing their answer. Long looks to the direction of their writing hand means they are remembering something…this is good.

b.      My favorite question to ask an interviewee is simply, “Is it OK to lie?” The instinct for anyone asking this question is to say “no”. We have been taught that lying is wrong and usually it offsets people to be asked this question so frankly. There are definitely times it is not just OK, but better to lie. Your wife asks if she looks fat in her new dress, or perhaps your three year old wants to know more about Santa Claus. These lies are actually helpful, as they avoid damaging someone emotionally. If your candidate emphatically says no, they are lying and you can start to wind down your interview. If they say yes too quickly, there is again danger that they have a habit of telling lies to accomplish their objectives. Even someone who is prepared for this answer, the evangelist we are looking for will wrestle with how to answer this question. They should answer it like answering a difficult question honestly. Example: “Well in business it is usually unacceptable; there are times when it is necessary to lie. When my wife asks me if she looks fat…” This is the person you want answering the questions of your one day or current customers. This is a person of integrity.

C.     A quick wit – I read an article the other day that gave sound advice. It suggested at some point during the interview to talk about the product and then propose to present some common objections to the candidate. The great sales candidate will handle those objections, the mediocre will attempt and fumble, and the poor will say they do not know enough. The key is not to ask questions that are too specific to features, and more in the realm of issues related to perception. Examples:

a.       “Your product is too expensive.” Look for the Feel, Felt, Found answer to this and any other objection. It may be as old as sales itself, but it is empathetic and very helpful in relating other people’s experiences. When it comes to price, sharing how others have felt it paramount.

b.      “We just do not have the time to deal with something like this right now.” Try to avoid those who talk respond with, ‘You can not afford to put this off’, or ‘ you should really reprioritize.’ These statements are more or less telling the prospect that they are not making intelligent decisions. A good salesperson will again empathize with the constraints their prospect are under and learn more about what the assumptions are in time and effort. Usually this objection is bred from an unwillingness to learn more, not a lack of time.

c.       “We do not see value in doing (What you offer) instead of (The status quo).” This will be the toughest for the candidate as some knowledge of industry and product will be essential. If they did any preparation for the interview, they should be able to give an acceptable response.

3.      What to expect them to say: This is particular to the evangelist and not necessarily every great sales representative. My recommendation is that you look for candidates that openly want to discuss certain details of your organization. Please let them bring these up, do not ask questions that solicit these particular areas:

A.    How did the company start? They should be looking for the story, the goals of the founders, and what kind of work environment they will be working in. They will usually follow up this question with:

B.     What are the goals of the company? They may monetize or quantify through expected hires. The bottom line is they should be checking your pulse for realistic growth expectations.

C.     Who are your partners? They are going to want to know who else you are working with as this helps them see that others have respected your potential.

D.    They should also ask and want to know about your management and sales philosophy. Without a clear understanding yourself this will be hard to define. KNOW THIS BEFORE HIRING SALES PEOPLE. If you do not, start by hiring the person who’s role it is to make these definitions, or send me a note and we can work on this together

To be continued….

Brilliant: Another new section about great posts around the sales blogosphere

This week I am starting another regular concept. In an effort to share the thoughts of other great sales leaders, I will share some of my favorite reads each week. This week I wanted to share:

Brad Trnavsky wrote on his http://salesmanagement20.com blog site about time management. This article really simplifies two of the best known laws in business. You can read it here!

Another great post I found was at Skip Anderson’s http://blog.sellingtoconsumers.com blog. He writes a great reminder that we should be proud to be in sales, and not try to avoid it. You can read it here!

I hope you enjoy my suggested reads, and I look forward to your comments and feedback.

Have a wonderful weekend,

Karl

Sales Training: Opening sales doors – The long haul, then consultative, and then done?

Again, I need to preface with one of my philosophies. If you have not read the last post, or had the “privilege” of sitting with me and talking sales after a couple of glasses of wine, you probably have never heard my opinion of closing. The greatest sales people are not deal closers, they are door openers. They see the first sale as a starting point, not the end, and no matter how you color it, closing has a sense of finality.

I ask all of the sales leaders reading this to think about what it takes to hunt. Prospecting is a thankless task, and finally one gets to qualify a contact extensively and uncover an opportunity. Then, to flush out the conditions of the sale, the requirements to make a difference, and the management of any possible objections. This process involves really getting to understand someone and what they are trying to accomplish. It involves become trusted and liked by that person. WHY ON EARTH WOULD YOU DO ALL OF THAT AND THEN BE DONE?

When you are finally done proposing and you have the opportuntiy to foster a long relationship between your company and another, it is time to start planning for the marriage. Plant seeds early to get what you want, a reference and referrals. It is critical to gain access into your contacts inner circle. People tend to run with others like them. If you develop a relationships with one person in IT, they will usually gain you access to other IT professionals. If they are trusted in their circle, you are welcomed by implied reputation. This can be even stronger within a company. Here the results can help you gain access. Doing a good job in one department can often gain you access to another. It can also make it easier to up sell or cross sell as the opportunity permits.

So, what do you do if you are not closing? The answer is easy, but takes some dedication. This is well worth the effort, since every customer you do this with can equal hundreds and hundreds of cold calls. Call them and thank them a day or two after the sale. Follow up via e-mail weekly, and remember those little news articles and tips you found and shared as you were cultivating the lead? Do not stop sending them. Call monthly and ask what benefits they are seeing. If they do not know, find out and take that data and develop a study. People appreciate these things, and once the data is confirmed, they will not only let you share it, but help you find people in their network to share it with. If this sounds hard, guess what while the answer is easy, at first doing this well is challenging. Like everything else however, it becomes second nature after time. Nothing, and I mean nothing, helps endorse a sale more than a colleague telling you why you have to do something NOW!