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Last week, one of my clients—we'll call him
Rick—had a demo scheduled with a prospect. The standard
"show up and throw up" they typically did early in the sales
cycle.
Trying to shorten the sales cycle, I asked
naively, "Why does the customer want to buy? What are they
trying to accomplish?" Rick couldn't tell me. I asked if he
thought the salespeople knew. He said no. I gave him an
assignment: he had to find out "Why," "Why now," and "What's
it worth." Otherwise no demo.
In other words, no compelling reason to
buy...No demo.
So Rick took a risk, and is rapidly moving to a
fully-paid trial implementation.
Sure, long-term objectives and plans still
matter, but I've been getting more and more inquiries
focused on "what to do now." Entrepreneurs and executives
alike are demanding help on how to improve revenues and
profits right away.
How do you make the quickest difference? Focus
the bulk of your energy on revenue generation. In other
words, sales! And don't do it the same old way either,
because -- as you may have noticed -- it isn't working that
well.
Here are five ways for your sales force to
bring in more business in short order. There are no magic
bullets, but just last week I taught one of these techniques
to a client (#2) and he used it to close a deal the
following day! Use one or use them all. Each technique will
have its own effect, and each will multiply the power of the
others.
1. Sell return on investment, and sell it to
the CFO.
Sales people are complaining that while the
pipeline may be full, the deals are taking too long to
close. Perhaps that's why the pipe is so full! What are the
reasons for this? Companies have money, and in many cases
they have needs. But many people are so scared THEIR
customers aren't going to buy THEIR wares, they are loath to
spend any money themselves. The result? They are only
willing to spend money when they absolutely see near-term
financial payback, and the CFO is killing many deals.
The solution? Sell the return on investment.
Sell the payback. And sell it to the CFO. Arm your
salespeople with two things: A series of case studies that
document the returns from using your product, and a
well-defined ROI process worksheet. Work with the CFO to
build the ROI case so that he or she owns it. This is the
only way they come to believe it. Make it their idea and
instead of killing your deal, they will help you close it.
2. Forget USP. Determine your Usage Cases
Instead of focusing on why your product is the
latest and greatest, clarify the ways in which potential
customers will use your product to solve specific problems
and produce tangible results. Then, instead of touting the
"benefits" of your product--which often fall on deaf ears,
anyway--engage your prospects in conversations about what
costly and quantifiable problems they now have, and how they
might use your product or service to alleviate those.
And, as sales guru Mike Bosworth says, don't
tell them your offering IS the solution. You're a sales
"guy" and they won't believe you. Instead, ask them if your
possible solution might help them. If they believe it does,
they have accepted your solution as truth. Then get them to
tell you, in real dollar terms, what fixing that problem is
worth.
3. Increase Sales Training. Use the 10%
solution.
But don't expect any one salesperson--even your
superstars--to be 100% at every part of your sales process.
They almost never are. But there is a way you can raise the
level of every person in your sales
organization—immediately.
Use this process adopted from W. Edwards
Demming's principle of optimization. Break your sales
process into as many discrete--but meaningful--steps as you
can.. Cold calling. Letter writing. Setting appointments.
Identifying pain. Writing proposals. Presenting. And so on.
Find out who in your organization excels at each step, and
have those reps explain their methods and mindset to the
rest of your sales force. Do all the steps at once in a
marathon session, or one step at a time. Either way, the
results will be amazing.
4. Use the 80/20 Rule. And get rid of the
bottom 20.
There's no room in today's world for mediocre
producers. Hold each member of your team accountable for
reaching two kinds of performance benchmarks: results
measurements, which include not only revenue, but perhaps
new accounts and repeat business, and action measurements,
which might include prospecting calls, appointments, and new
contacts.
Not every sales person will be a superstar, but
every one should pay their own way--and then some.
Salespeople who aren't producing not only cost you money,
they drag down the performance of your whole organization.
You may not pay them very much, but why pay them anything? I
suggest you do both yourself and them a favor, and let them
go. Don't worry about having an empty desk: that warm chair
was an expense your company doesn't need.
If you feel it isn't fair to "dump" them, or if
your sales cycle is too long to measure short-term revenue
results, give the problem reps a 30-day plan to increase
their level of activity in specific ways. That's long enough
to see an improvement if there's going to be one.
5. Track your results and work harder
Most entrepreneurial sales organizations fail
to analyze their efforts. They have no idea how much
effort--or money--it takes to create a new customer. The
only indication they have of whether salespeople are "doing
enough" is based on the revenue numbers. The answer? Track
both activity and results, and use the statistics your
garner to quickly raise performance. Break your sales
process into a series of meaningful steps, counting each
time a rep completes one. Calculate averages and set a
benchmark. And while you're at it, analyze the percentage of
deals that close whenever you complete that step. That
knowledge can dramatically improve your sales forecasts.
Once you establish benchmarks--this one's a no-brainer--RAISE
THE BAR. Yes, that's right, because the fact is, revenue
isn't coming in fast enough. Do everything discussed above
to improve your sales effectiveness--then do more of it.
Just working smarter isn't going to cut it. You're going to
have to work harder as well. And anyone who doesn't want to?
See number 4 above.
I've developed a unique Sales Audit Process
based on the work of W. Edwards Demming. This program is
guaranteed to produce an immediate 10-25% improvement in
your company's sales, or more. If you'd like to find out
more about how you can increase sales right away, call me at
858-951-3055, or visit www.paullemberg.com/contact.html and
send an email with details about your company's sales
situation.
Paul Lemberg is the president of Quantum Growth Coaching,
the world’s only fully systemized
business coaching
program guaranteed to help entrepreneurs rapidly create More
Profits and More Life™. Read more of Paul's articles at his
business coaching
website.
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