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March 21, 2014 / PACE Australia Pty Ltd

Making executive sales calls less intimidating

Businessman Giving out CardArticle by http://corporatevisions.com. Corporate Visions is a leading marketing and sales messaging, tools, and skills company that helps global B2B companies create more sales opportunities, win more deals and increase sales profitability by improving the conversations salespeople have with customers.

A client sales leader recently expressed frustration at the excuses she hears why her team doesn’t call higher: “takes too much time,” “executives don’t want to talk to us,” “we get referred down.”

She then shared her real suspicion:  They’re intimidated.  They’re not sure what message to deliver.  They lack confidence having the right conversation with the right person.

The necessity for engaging higher within accounts has never been greater.  Approval for even modest investments now often rests at executive levels, and deals are much more likely to stall — or worse — when  you’re unable to confidently engage customer executives.

Preparation Breeds Confidence

Preparation is the best way to build confidence for any sales call. When selling to executives, remember, it’s all about them, their business and their business performance.

Here are 3 ways for applying business acumen to help you feel as confident having business conversations with CXOs as any other decision-maker:

1.  Know the executive’s prioritized business initiatives.
Initiate executive conversations around the customer’s stated business initiatives.  This demonstrates you’ve taken the time to understand their business.  Your objective is to validate that the initiatives you’ve identified are priorities relevant to the target executive’s direct area of responsibility.

Asking executives to “tell you about their initiatives” is the fastest way to end the conversation.  Executives aren’t interested in being interviewed.  Prepare using management presentations, earnings calls and other available resources to expedite gaining customer insights.

2.  Participate in quantifying the value of your solutions.
Too many salespeople mistakenly believe that computing a project’s projected ROI is something the customer alone must own. This type of hands-off  ”let the customer compute ROI” is a flawed approach.

You’ve sold your solutions many more times than the executive has bought it — leverage that experience.  Prepare by getting comfortable talking about the positive financial impact you can deliver. That’s what executives want to know.

3.  Role play your executive conversation
If you’re not comfortable with role playing, get over it. It’s the best way to simulate the scenarios that can derail any well-rehearsed executive conversation and foresee how to effectively respond when the dialogue digresses.

When you role play to prepare for executive engagements, you develop the ability to deviate from your plan, yet still have a successful business conversation.

Business acumen and financial acumen are essential skills for today’s sellers.  When you understand what success looks like from your customer’s perspective, deals flow that much easier.

Article by http://corporatevisions.com. Corporate Visions is a leading marketing and sales messaging, tools, and skills company that helps global B2B companies create more sales opportunities, win more deals and increase sales profitability by improving the conversations salespeople have with customers.

 

October 25, 2013 / PACE Australia Pty Ltd

Why do we loose deals?

Burned-Out-Business-Man-538x218Article by Graham French of gfa Sales Improvement. He is a specialist b2b sales and sales management coach www.sellingcoach.co.uk and references CSO Insights  www.csoinsights.com

Sales Coach Graham French looks at some of the reasons why we lose business to competitors… and why we win….

Why do we win business?…. why do we lose deals? Is it price? Superior product or service features? Are we kidding ourselves as to the real reasons? Does it matter if we don’t really know? Let’s not suppose that we do know exactly why we win and why we lose. We’ll see later that the perceived reasons are contradictory and riddled with assumptions and in house “tribal wisdom”.

Of course, sales people always have an opinion about the reason and many firms ask for a win/loss form from the salesperson after the event. One US sales VP I knew included a box on the Win/Loss Report under “Reason for Loss” labelled “Poor Selling”. His wry comment: “You can imagine how many times that box got ticked”.

Some companies request a formal interview to see ask the customer why they bought from another vendor. This is good practice because it’s critically important to discover what lessons can be learned that can help shape our selling tactics and indeed our policy going forward. It’s too important to be left to the sales team, too easy to reach for the tribal wisdom, to make assumptions that the deal went the way it did because “our price was too high” or “we didn’t have all the bells and whistles that they needed”.

Customers don’t always tell the truth. If the salesperson has a good relationship with the contact person in the account, this person may want to let the salesperson down lightly by telling them that the decision was made on price or some other factor outside the salesman’s control. This is a lot easier than saying that the buying team was unimpressed by the way that the salesperson’s firm conducted their selling.  More often than not we simply get outsold by our competitor when we lose. Sales directors must get as close to the truth as possible.

All significant forecasted opportunities should be subject to a win/loss analysis – ideally conducted by an external, objective agency to eliminate sales spin, any bias and self-serving. Failing that, have an executive unconnected with the account make the call. Management needs feedback which is objective.

Some interesting light on why firms think they got the outcomes they did is shed by CSO Insights, the US based sales performance measurement consultancy. In their 2008 report -   based on responses from 1500 firms, cross-industry and worldwide – they asked sales VPs, among a host of other questions, why they believed they won and lost deals.

The results give some fascinating clues as to why firms perceive that they are successful and why they don’t win. Of course, all of this is based on the company’s own perceptions and, as we will see, there are contradictions in these perceptions that point up the fact that people tend to lay the blame for losing deals on convenient factors.

Before we get into this, let’s just face a fact of life that outcomes don’t always divide into two clear cut categories – wins and losses. There is a third category, we need to examine closely if we want to improve our sales success – opportunities that have not been closed as per forecast, stalled deals. Let’s call them “no decisions”.

These, according to CSO Insights, represented 21% of all respondents’ forecast opportunities.  In my experience this percentage is often higher.) Adding stalled deals to the deals which were lost to competitors (30% of all forecast deals according to CSO Insights) we see that over half of forecast deals, didn’t materialise as expected.

The knock on effect of this is huge – on revenue and profit forecasts and cash planning, to say nothing of the reputation of the management team as far as their understanding of what is going on in their business is concerned. But let’s leave ‘no decisions’ for the moment.

CSO Insights’ respondents rated the top three reasons why they won deals and the top three reasons why they lost deals. The results are instructive but contradictory.

Why did we win? The highest percentage (56%) believed that existing relationship was one of the top reasons for winning.

The next were:

  • level of support/service ( 42%)
  • product superiority (35%)
  • brand/reputation (35%)

It is interesting that the next reason firms believe that they won business is the quality of their support or service with, in joint second place, product superiority and brand or reputation.

Price was thought by only 22% to be one of main reasons why they won with, more surprisingly to my mind, return on investment justification coming in at 19%. (I personally expect this last selling tactic to become more important as the economic crisis deepens)

OK, so it’s clear why people think they win.  Let’s now have a look at the top three reasons these same respondents said they lost deals.

Bearing in mind that only 22% firms think that price is a key reason for winning, in a surprising contradiction, 63% (the highest percentage) see competitor’s price – presumably lower than theirs – to be one of the top reasons they lost! So price is not a reason for winning but it is the main reason for losing?

Expect consistency? Think again! Perversely, only 11% of firms rated competitors’ product superiority as one the main reasons for losing whereas 35% rated their own product superiority as a key winning factor.

Other areas of apparent contradiction surround support and service which 42% said was a prime reason for winning. Yet this is also thought by just 10% to be one of the top three reasons for losing.

Competitor’s marketing message was thought by 23% to be a top three reason for losing but just 10% thought their own marketing message was a strong factor in winning.

Consistency comes to the rescue, however, with relationships. This figures highly among the reasons for both winning and losing. 60% of firms (the second highest percentage – just below “price”) rated their competitor’s existing relationship as being one of the top reasons for losing deals whilst  56% (highest again) believe it to be a key reason for why they won.

One conclusion, therefore, is that firms should spend time, resources and money building and enhancing their relationships. This is going to be easier for established companies. But there are implications for start- ups which won’t have strong relationships in place.

The relationships that win are not the simple relationship of the account manager with an individual in the prospect’s organisation.  Deeper, broader relationships involving trusted partnership are what drive winning performance.

The second conclusion that I draw from this part of the report is that companies need to really understand the reason they win and lose business and make changes to improve their selling effectiveness based on solid evidence rather than tribal wisdom. Lastly, find out why that fifth of all forecast deals – the ‘no decisions’ – don’t close as forecast. Do these things better and you can expect to improve selling performance.

Article by Graham French of gfa Sales Improvement. He is a specialist b2b sales and sales management coach www.sellingcoach.co.uk and references CSO Insights  www.csoinsights.com

August 28, 2013 / PACE Australia Pty Ltd

“I Need My Team To Step-Up!”

business people stand excitedArticle by Paul Donovan, Director, The Change Company

Ever felt this way?  I need my team to step-up!  This sentiment is something I hear from clients, well, fairly regularly.  They are feeling the pressing demands of the business on them, and in response, need their team to take more responsibility and initiative, display a greater sense of urgency, be more aware of wider business constraints or challenges and/or simply deliver more.  These clients are requiring their team to lift, usually because they have in turn been required to deliver more in some way. To do this, they require their team to do likewise.

Here is a short list of things to attend to if this is your situation, or you have a manager whose rhetoric is now sounding a little like that described above.

1.  The manager is in large part responsible for how work is done and should avoid blame and accusation associated with it.  Therefore the manager must begin by acknowledging their role in creating and supporting the existing pattern of behaviour, or practices within the team.  Their means of interacting, (or not interacting), and rewarding, have been instrumental in facilitating the current reality, even if she/he is at first unaware of exactly how they have done that.  Acknowledging this may help the manager to avoid sounding patronising while he or she asks their team to “step- up”.  As a general guideline, honour the present if you want to make a successful transition to a different future.

July 2013_Article 1_Quote 1_2

2.  When a “step wise” jump is required, putting more pressure on individuals to deliver more often gives disappointing medium term results.  Generally, individuals already carry a significant workload and a good ‘pep talk’ may get a bit more done, but probably not the jump you need.  Instead, consider providing a bigger challenge to the collective team.  Ask; “what project could they tackle together?  How could they work together as a team to meet the challenge you are now facing?  Could they together investigate solutions to the problem and propose a solution?  How could they enact that solution as a kind of ‘project team’?”  In general, research suggests that individuals are overloaded, but teams are under challenged.

July 2013_Article 1_Quote 23. Engage the team to consider what capabilities they might need to build to fulfill the challenge.  Research now suggests that a good deal of learning is done collectively, as opposed to the traditional notion where individuals, as separate entities, somehow acquire skills they require.  Instead, learning and skills building is most likely co-created by people working together.  (How do you do that?….that’s the topic of our next newsletter)  The individual and group learn and change simultaneously.  Creating detailed lists of competencies that individuals must build does not adequately reflect the reality of how we learn, change and become.  Instead, consider what collective capabilities might help.  Ask; “What shared ability is required?”  In that context, individuals will more likely develop the skills required to make the collective growth possible.

July 2013_Article 1_Quote 3_2

I hope you have enjoyed and found helpful these three ideas, which are based on the latest research.

Article by Paul Donovan, Director, The Change Company

July 23, 2013 / PACE Australia Pty Ltd

Always tell people what they want to hear!

communication level meterArticle by Matthew Coleman – Director, Coach, Facilitator and Public Speaker at Serious Clarity

By that, though, I don’t mean for you to be a “Yes Man”(or woman). What I mean is, talk to people in their “language” or their preferred mode. This is one of the most powerful lessons I have learned as a manager, coach and trainer.

If someone doesn’t speak English, it is not very useful speaking it to them. Conversely, as much as I might try, if you speak to me in Cantonese I am going to struggle. Fruitlessly.

Even when you ARE speaking the same language, people use language differently. Another example is when you call an I.T. company or a Telco and the person you are talking to waffles on a about gigapixels and terrablocks, but even that is not actually what I am talking about…

Have you noticed that when you speak in PLAIN ENGLISH that sometimes people either go blank, lose concentration, or simply don’t get it? Probably you are not giving them the type of communication that they want. So, if you want to get people on side (or simply get them to do your bidding!) here are a few tips from one of the many models out there, the NBI Whole Brain Thinking model. I love this one because it applies easily to one-on-one as well as group scenarios. It also works well with the Six Core Needs. And you can use it without a profile.

The NBI whole brain thinking model, once you have done a profile, breaks down your “thinking preferences” into quadrants of the brain, and aligns each with a colour. Each quadrant has some characteristics. We all have these in some measure but the profile breaks it down for you

Blue – Results oriented, Factual, Blunt, Analytical, Critical, Focussed

Green – Detail-oriented, risk-averse, conservative, organised

Yellow – Holistic thinkers, visual, unstructured, future-focussed

Red – People focussed, attuned to non-verbal queues, sensitive

So, what is unsurprising when you think about it, is that these types of people all have different wants and needs in communication, and if you don’t hit the right note or provide the right details these people will switch off.  So here’s what I have found:

People with a high preference for “Blue” thinking basically want you to answer the question “what’s in it for me”. If you don’t have a good answer for that they aren’t interested.  (Note: I said this works well with the six core needs… Anecdotally, I have found that people in my training sessions with a high blue score have a high need for significance. Not a single one of my “blue” participants has ever argued that point with me…and they are the MOST likely to argue!) They also like you to get to the point. Quickly. The Executive Summary was invented for “blue” managers.

“Green” people like LOTS of detail and they like to know the history of something. You will probably recognise this by the way they tell you the WHOLE STORY of a situation before they ask you a question. Likewise, that’s what they want to hear. If the Exec Summary is written for the “Blues” then all the footnotes and tables are in there for the “Green” people. They will often ask “but HOW do I do it?” and “What worked in the past”. They like clear guidelines and directions. (Read: Certainty)

“Yellow” people are the opposite of “Green”. They look to the future and are happy to take risks. They also bore easily and like colourful language and pretty pictures. They like things to be “fun” and they want to know The Big Picture. (Read: Variety)

So who’s left? “Red” people. And you definitely don’t want them to feel left out if you want to get anything constructive out of them. In Six Core Needs speak, these are our people most in need of Connection an they want to feel the love. When making a decision they will want to know who is impacted. To keep these people engaged, tell them how much you appreciate them.

As I said, you can use this one-on-one and in groups, and you don’t even need the profile to do it (although I do recommend getting a profile to all of my leadership communications clients and it helps you to understand better where you are coming from). Just look for clues in how someone communicates and try and feed a bit of that same style back to them – they will lap it up! And the more foreign it is to you, the more you probably need to learn it!!

One of my favourite moments in training is when a hard-ass, bottom-line, results-focussed “blue” person realises that by being “nice” to a “red” person they will actually get better results! It’s not just “touchy-feely crap” anymore. Something almost snaps in their brain and I watch on, smirking in my very red way…

Communication really is the key to success. If you get better at this, you get better at everything!

Oh..and to use this in a group setting, like a meeting, just make sure that you are ticking all the boxes: Visuals/Fun, Bottom Line Results, A Story, and making people feel like part of the picture. It takes practice, but it works, and it will MASSIVELY improve your meetings/training.

Article by Matthew Coleman – Director, Coach, Facilitator and Public Speaker at Serious Clarity

July 12, 2013 / PACE Australia Pty Ltd

Time Management: 5 Rules for Managing the Monkeys on Your Back

monkeys1Article by Mike Bohlmann . Mark has more than 10 years of experience as a Web developer and an IT manager. He is an IT manager at the University of Illinois, where he is in the process of completing work toward his master’s degree. His research is focused on IT management, leadership, and services.

Leaders and managers in smaller businesses struggle to make do with scarce resources. It’s a condition of being smaller, but the one resource that smaller businesses have in exactly the same amount as large enterprises is time. Having the same quantity doesn’t make it any easier to manage.

Several years ago, William Oncken Jr. and Donald Wass wrote an article for the Harvard Business Review about time management called “Management Time: Who’s Got the Monkey.” Oncken and Wass used the metaphor of monkeys to approach the issue of time management. The point is that we can’t really manage time. We can manage how we use our time, but there are not any ways to increase the amount of time, move time around, or buy more of it (though we’d all certainly like to buy some once in a while). Time management is really more about priority management and delegation.

Monkeys are a metaphor for taking the initiative on tasks and responsibilities. A user’s printer problem is a monkey. Setting up new user accounts for the staff members is a monkey. Reviewing server logs to troubleshoot the backup software is a monkey. Monkeys live on people’s backs and they can be exchanged and moved around from person to person. The question is: how do you manage the monkeys so thing get done? Oncken and Wass proposed five rules for managing monkeys.

Rule #1: Monkeys should be fed or shot.
Although you should absolutely not micromanage, it’s important to check in with your people to make sure they are feeding their monkeys with the appropriate attention. If a monkey isn’t getting attention, it will eventually get angry and demand more attention than if it were addressed immediately. At the same time, it occasionally becomes necessary to shoot a monkey because it’s no longer important or required. If you have a monkey that’s been sitting around for weeks, maybe it would be better to just remove it as a to-do and move on.

Rule #2: The monkey population should be kept below the maximum number that the manager has time to feed.
Your people will only work on the number of monkeys that they have time for. A monkey that has been well maintained should only take five to 15 minutes of care to maintain. If your people have too many monkeys, you’re going to have too many monkeys to care for and feed, too. It’s important to know the team and yourself so that no one becomes overloaded. Otherwise, the monkeys will get to be overwhelming.

Rule #3: Monkeys should be fed by appointment only.
If one of your reports walks into your office with a monkey, it’s sometimes a good idea to send them away to schedule a time to come back. With the intellectual style of IT work, sometimes we just need a little more time on our own to figure out a problem. It might be a good idea, though, to feed the monkey a treat by giving the person a thought that might get them approaching the problem from a different angle by which they take care of the monkey themselves.

Rule #4: Monkeys should be fed face to face or by telephone, but not in writing.
If someone sends you an e-mail about a monkey they’re carrying that requires a response, who now has the monkey? That’s right — you do! The monkey is on the back of the person who has to take the next step. If you’re asked a question about someone else’s monkey, you want to be careful that they don’t get you to take the monkey for them. Even some phone calls can move a monkey to you, so be careful how you talk. You want to help the person take care of their own monkey, not let them give the monkey to you.

Rule #5: Every monkey should be assigned the next feeding time and a degree of initiative.
Although not every monkey is going to be long term or require weeks of work, it is possible that a monkey isn’t a task that can be completed short term. In that case, you want to check in and feed the monkey on a regular basis. By assigning how much initiative is needed, you also can set expectations about how much progress should be made before the next feeding. If you just check in to see how things are going, then maybe nothing will happen. If nothing happens, that could allow the monkey to jump onto the manager’s back.

Though these rules are a bit extreme when taken strictly, I think it’s definitely important to think about who has the monkey on a task. It can become easy to just say you’ll take care of something because you know exactly what needs to be done. But, before you take on a new monkey, consider how it will affect the rest of the monkeys you already have on your back.

Mike Bohlmann has more than 10 years of experience as a Web developer and an IT manager. He is an IT manager at the University of Illinois, where he is in the process of completing work toward his master’s degree. His research is focused on IT management, leadership, and services.

July 9, 2013 / PACE Australia Pty Ltd

How To Set Reasonable Sales Goals

This article is based on an interview conducted with Andris Zoltners, as well as his presentation “A Top 10: Insights that Lead to Sales Success” at the San Francisco Sales 2.0 Conference on April 8, 2013.

Ninety percent of all sales organizations set target sales goals for their salespeople, according to research published by ZS Associates in the book Building a Winning Sales Force. But how do you know your target sales goal is the right number?
 
Sales reps want goals that are attainable. Sales managers and corporate execs want goals ambitious enough to propel the company to greater financial success. But the difference of opinion on what is attainable and ambitious can be substantial. “Setting the right goal is an essential component of good sales management,” said Andris Zoltners, Founding Director of ZS Associates and recent speaker at the San Francisco Sales 2.0 Conference, “but it’s not always easy to get it right.”
 
According to Zoltners, the effects of poor goal-setting can be disastrous, especially for sales forces that tie a larger percentage of incentive pay to goal attainment. Two of the most common scenarios occur when target sales goals are set either too high or too low. Each situation has at least three negative effects.
 
When sales goals are set too low:
  1. Company pays out needlessly high incentives.
  2. Salespeople become complacent.
  3. Sales fall short of potential.

When sales goals are set too high:

  1. Sales force earnings decrease.
  2. Salespeople become angry and disengage.
  3. Sales suffer.

Notice that in both situations, the outcome includes a negative affect on the sales reps’ attitude. That is the opposite of what incentive pay is designed to do.

“The cost of poor goal-setting cannot be underestimated,” says Zoltners. “The fairness and difficulty of the goal will directly influence the salesperson’s level of motivation, which in turn will affect the amount of effort and work he or she puts in to meet the goal. And you can see all of those elements reflected in your revenue results.”

Unfortunately, sales managers don’t always have the final say over the sales goal, and C-level executives are not always in tune with the psychology of motivating a sales force. “Very often, corporate executives don’t understand the impact of a sales goal that challenges a sales force too much or not enough,” says Zoltners. “They pick the number they want to see, not the number that’s going to help the sales force achieve success.” Executives’ unrealistic expectations, poor forecasting, unforeseen internal changes, and market shifts can complicate the question of where the bar should be set for sales goals.

What’s the best way to correct sales goals gone wrong? When it becomes clear that a sales goal is too challenging, Zoltners recommends setting a new, more realistic goal. This isn’t always a popular solution; many companies believe it shows more integrity to stay the course. Remember the larger picture, however: the point of an incentive plan is to motivate reps to succeed. Reps will likely appreciate the choice of committing to a more reasonable goal.

If you really want to stick to a goal even though it’s too challenging, announce instead a plan to reward reps who meet a certain percentage of the original number. Base the contingency plan on past sales data, as well as market trends. If these factors indicate that most reps could reasonably make 80 percent of the stated goal, for example, then add a bonus for anyone who achieves that 80 percent.

If you realize your number has been set too low, Zoltners advises taking action based on the length of time left in the incentive period. If the incentive period is short (a quarter or less), it’s better for morale to leave the goal as is and instead prepare the sales force for an increased number for the next incentive period. On the other hand, if the incentive period is significant (one year or longer), the best approach is to increase the sales-force goal sooner, rather than wait for the period to end.

As Zoltners told the audience at the Sales 2.0 Conference, sales organizations are better off establishing target sales goals within a certain range, rather than holding the team accountable for a hard number. In most cases, this flexibility allows reps and sales leaders to strike the right balance between ambition and attainability.

– Selling Power Editors
This article is based on an interview conducted with Andris Zoltners, as well as his presentation “A Top 10: Insights that Lead to Sales Success” at the San Francisco Sales 2.0 Conference on April 8, 2013.

 

April 22, 2013 / PACE Australia Pty Ltd

Advancing Newspaper Media – Advertising ‘Tens’ Lists

j0285031Article by By Mort Goldstrom, Newspaper Association of America www.naa.org 

Quick give me ten. If you go to see a customer and the advertiser asks why he should advertise with you, what would you say? Could you give several reasons? Ten? Here are several questions you frequently hear, each with ten good reasons why.

Why Advertise?

*Suggestion: print these back-to-back as a sales sheet (click titles for link)

Newspaper Numbers

Ten Reasons to Advertise During Tough Economic Times

Ten Reasons to Advertise Frequently

Ten Reasons to Advertise in Color

Ten Reasons to Advertise in a Newspaper

Ten Reasons to Advertise on a Newspaper Website

Ten Reasons to Use Newspaper Preprints

Ten Reasons to Use ROP in Newspapers

Ten Reasons Why Readers Vote and Voters Read

Ten Things a Good Ad Does

Ten Truths About Newspaper Circulation

Ten Ways Shopping Habits Have Changed

Ten Ways to Improve Your ROI

Throw the Red Challenge Flag on Super Bowl Marketing

Why Auto Ads Are Less Effective Today

How?

Ten Components of a Good Ad Layout

Ten Ways to Waste Your Advertising Investment

Article by By Mort Goldstrom, Newspaper Association of America www.naa.org

March 7, 2013 / PACE Australia Pty Ltd

Don’t Pounce On Prospects

Fox PounceArticle by Chris Butterwick. The PACE Partners. Published in PM Forum Magazine 

A common concern that I hear from clients very often these days is “We’re not converting opportunities the way we should be”.

In the same vein, clients tell me that they and their colleagues often have meetings with good quality prospects which they have felt very positive about following an hour or more of friendly, constructive discussion. Such meetings often conclude with lots of positive words from the prospect all the way out of the meeting room, through reception and to the office building lifts or exit.

We’ve all experienced it: “That went really well, I reckon there’s lots of opportunity, especially with that XYZ project” or “He was eating out of our hands!” or “We can definitely dislodge their current advisors”. Invariably a summary report of the meeting is recounted back at the office, high expectations are set and an opportunity is recorded in the CRM system (which of course is included in the firm’s total running pipeline value).

And yet after a couple of weeks there isn’t the response to the follow up that was expected – no response to emails sent and a deafening silence to voicemails left following the seemingly fantastic meeting. Or if there is a response, it is muted, non-committal and basically nothing transpires. The high expectations start to diminish.

So what’s going on?

Much of the answer is in what we call “The Pounce”.

When I drill down into the specific circumstances of meetings of this kind that have not met expectations, in many cases it becomes evident that auto-pilot has been engaged very quickly, and out pops “We can do that!” or “We have a client with the exact same issue so we have plenty of relevant experience” or “Let me tell you how we would solve that problem for you”.

Unsurprisingly this can happen very early in a first meeting because the prospect often has a problem that is very much ‘front of mind’ and so he/she mentions it fairly soon into a discussion, maybe even immediately.

So there’s an opportunity hanging in the air……..

that must be grabbed!

immediately!

before it disappears!

before I miss it!

 And why not?

Because it’s a MISTAKE. By pouncing on an opportunity too early we may as well kiss goodbye to the possibility of working with the prospect right there and then. It’s as simple as that.

But why? Surely we are there to solve problems and start providing the solution that the prospect requires?

That is true, but looking to solve problems as soon as possible may appear to be good business, but it is not necessarily good business development and the proof is in the pudding – in the subsequent emails that elicit no reply and the voice messages not being returned, in the end manifested by diminished expectations and “We’re not converting opportunities the way we should be”.

By immediately pouncing on an opportunity that has presented itself, all thought of getting to know the prospect’s world goes out the window and from then on it’s “TELLING AND SELLING”.

Telling the prospect how brilliant we are and selling the features of our company, its capabilities and services. So the meeting can very quickly become completely focused on a solution to the prospect’s issue and therefore all about “me, me, me!”

This mistake can be described as “solutionising” and many of our clients admit to moving into solutionising mode as soon as they hear something that they believe they can help with. It’s pretty much an automatic response.

The problem is that solutionising means that all the energy switches from our potential new client to us. They stop talking and therefore giving important information about their world, and we start talking instead.

It’s important to understand that the prospect won’t stop you – they want to have their problem solved, of course they do, so they may actively encourage a discussion. Or they might just sit back, say lovely, positive things occasionally but actually be thinking about the mountain of work sitting on their desk, or their next meeting for which they must not be late. Or worse still: “These people aren’t really interested in my world”.

It’s only a couple of days later, after they have had time to reflect on the fact that the whole meeting was about you, your firm, your expertise etc. that they then start thinking that all you were interested in was the fees involved in being engaged…….and then the follow up emails don’t get a response, and they don’t call back.

What’s the alternative? Well in many ways it’s simple:

Bite the tongue

Make a note of the problem/opportunity, jot it down in your notebook, and then don’t even think about it – because if you do then you will more than likely have stopped listening, and will certainly have stopped listening actively.

Later, when it’s appropriate, perhaps when summarising what you have gathered from your prospect during the course of the meeting so far, refer to the issue by saying “I’d very much like to discuss XYZ that you mentioned earlier, but before doing so I’d really like to understand the wider context……” In other words, demonstrate an interest in your potential new client’s world – and mean it. Failure to do so will result in wasted emails and telephone calls later, and lots of frustration too!

So rather than come up with solutions at the first opportunity, we would be better off understanding the context of the issue in depth i.e. “What happens if this isn’t solved?”, “What will be the impact on your people, business, future?” Drill down and around the issue so that you really understand it, and at the same time demonstrate your understanding.

By doing this and by holding back on proposing the solution until the prospect is ready to buy and become a new client, we are much more likely to present a solution that is a better, indeed a perfect fit to their requirements and to their “world”.

Disengaging our auto-pilot, our need to tell the prospect how knowledgeable we are and how good we are at solving the “exact same problem you have Mr Smith”………is harder than it may sound, simply because it’s an automatic response so our tendency to engage our auto-pilot is VERY strong, and habits like solutionising are somewhat hard wired.

But with practice, some clear thinking and confidence, disengaging our auto-pilot can be done – by biting our tongue, making a note of the opportunity, drawing a star in our notepad, and then at the appropriate time later in the meeting, going back to it. Or better still, using the opportunity to create the motivation (meaning energy from the prospect, not from ourselves) for a follow up meeting: “I’d really like to discuss XYZ in more depth, let’s meet again in a week or so and between now and then I’ll be able to give the subject some thought, how does that sound?”

And guess what? The prospect will hear four main things:

1. You are a really good listener

2. You are really interested in getting to know my world

3. You are not just selling to me

4. You are thorough and professional

The prospect will more than likely agree to the proposal of a follow up meeting because there is value in it for them, it’s worth their investment of time. And the follow up meeting will provide another opportunity for you to learn more about their world, as well as a deeper understanding of their problem for which you may have a solution.

If the follow up meeting is planned in advance and properly managed, your prospect will develop more trust in you as you demonstrate interest and understanding. In time, they will reveal lots more about their world, to the extent that, when they are ready, you may learn about much bigger opportunities – which dwarf the original opportunity which wasn’t pounced on!

This requires appropriate skills and behaviours, and most of all it requires time – but would we rather invest say, a year in developing a relationship with a valuable long term client of the future, or 45 minutes in meeting a prospect who will then not respond to emails and calls because we pounced on an opportunity and started telling and selling?

Article by Chris Butterwick. The PACE Partners. Published in PM Forum Magazine 

March 7, 2013 / PACE Australia Pty Ltd

How to Introduce a New Compensation Plan and Create Positive Momentum

attract-the-best-sales-people-with-a-well-designed-compensation-plan

Article by Danita Bye, a founder of Sales Growth Specialists, a sales turnaround company that works with clients to build a successful, sustainable sales culture thrives under all market and competitive challenges.

You’re rolling out next year’s goals with an updated sales compensation plan and both you and your staff are nervous. And if you aren’t prepared and thought through your logic, you should be nervous!

It is a fact that adjusting compensation is a tense time for most sales teams. On the one hand, your company needs to both grow sales results and control the budget.

On the other hand, most sales people earn a significant portion of their income from commissions and even if your plan is great for them, you are messing with more than money, you’re impacting their lifestyle.

First, it is important for you and your sales staff to understand that a well-designed compensation plan needs to be tweaked every year due to evolving market conditions and company goals.

Aligning the compensation plan is crucial for a healthy company. In addition, the optimum plan ensures that sales reps continue to earn top dollar when they focus on high value sales activities.

What can you do to make certain that the new sales compensation plan has a positive effect on morale and productivity? Here are five tips:

Keep It Simple. You’ve probably heard this before, but it’s worth repeating. A complicated or confusing plan will only frustrate and frighten your staff. Keep the plan as simple and straightforward as possible to motivate allegiance to the new program.

Be Fair. Take a look at your budget percentage for sales compensation. I always recommend that you look at your budget as a percentage of gross margins, not revenue. Then ask yourself these questions:

Is this budget fair for both the company and the employee?

Is the percentage fair for both top performers and under performers?

Does it pay the most for those sales activities which have the most value for the company?

Keep Top Performers Motivated. Every company has a sales budget. To keep in budget, many plans wind up taking too much from the top performers so that they have enough budget left to pay the under performers. Instead, make your plan fair based on percentage of sales, activities and results. If not, your top performers will not be motivated and will eventually leave.

Spell it Out. Create a spreadsheet for each sales rep, inputting their numbers from last year alongside their goals for next year. Model the new sales compensation plan at different levels of performance, ranging from 75% to 150% of their goal. Ask yourself, “Are the goals realistic for a good performer? Are the percentages and rewards fair?” If you can’t answer yes, neither will your sales team.

Not Everyone Needs to Like It. By definition, your under performers do not want to be paid for performance. Consequently, they are going to be resistant. In the end, they need to know that rewards come with results.

Roll It Out One-on-One. Pull your staff aside one at a time to explain the new sales compensation plan, illustrating the expectations and benefits each person will experience individually. Be sure that their questions are answered and that they leave this meeting feeling heard, supported and motivated.

It’s important to think through your approach before rolling out your new plan. There may be a few bumps in the road, but with these tips, you’ll improve your chances for success and a more profitable future.

Article by Danita Bye, a founder of Sales Growth Specialists, a sales turnaround company that works with clients to build a successful, sustainable sales culture thrives under all market and competitive challenges.

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