Sales and Sales Management Blog

August 15, 2008

How to Destory Your Credibility without Even Trying

China wowed the world last Friday evening with their spectacular opening ceremonies for the Olympics. Those ceremonies had been in the works for two years. And for several years prior to that they had been building the sites, preparing their cities, and promoting not just the games but their image. These Olympics were to be their coming out party to showcase China to the world. This was the time for them to shine.

They promised these would be the best games ever held. Not only would the games be the best, the atmosphere and the spectacle would do both China and the Olympics proud.

Although the immediate lead up to the games was shaky with arrests of dissidents, preventing some foreign protesters from protesting, and a number of other issues, the games got off with a magnificent start. The world was wowed and hopes were high that these really would be the greatest games ever.

Then the trouble started–just little signs that maybe all was not what it seemed. Some of the opening night fireworks had been faked-just to make them stand out better on TV. Then the girl who sang wasn’t really the girl who sang. Then questions about the eligibility of some of their athletes. Now questions about whether the kids carrying out the Chinese flag were what the Chinese said they were.

There seems to be new questions daily about what was real and what that opening night wasn’t. As the questions mount, the press is looking more closely at not only the opening night ceremonies but at other aspects of the events–the Chinese teams and coaches, the officiating, and the presentation of China the country is putting on.

Most of the issues uncovered have been relatively minor-fireworks enhanced to make them standout better on TV, a girl substituted for the real singer because they felt the substitute represented China’s image better, kids from a single ethnic group representing all ethnic groups in the country because it was easier to get an existing troupe to perform.

Yet these small incidents accumulate and cause many to question just how much of what they are seeing is real and how much isn’t. Years of preparation and credibility building brought down in just a few days because of a series of small, meaningless, unnecessary incidents.

This on a big scale before the eyes of the world, but this same dynamic can destroy our credibility just as quickly. Ours may not be fakery. Ours may not be smoke and mirrors. Ours may simply be a series of small promises not kept, dates missed, phone calls unreturned. But the damage is the same. Those small promises, those unimportant dates, those too busy to return phone calls can destroy us more quickly than anything else because we think no one will notice. The problem is-they will notice.

August 13, 2008

Guest Article: “Winning a New Client When There is an Incumbent,” by Andrew Sobel

Filed under: Client Relationships,sales,selling — Paul McCord @ 7:04 am
Tags: , ,

Winning a New Client When There Is an Incumbent
By Andrew Sobel

Breaking into a new client requires skill and perseverance under any circumstances, but especially so when the client already has a strong relationship with a firmly entrenched competitor. If the client is satisfied with an existing provider, there has to be a compelling reason for them to shift their business to you. It can and does happen, however. After enjoying the fruits of a relationship for many years, an existing advisor can get complacent, leaving room for an energetic, creative, and determined newcomer to capture the client’s imagination.

Here are 9 principles that can help guide you in trying to win business from a new client which already has strong, existing relationships with the competition:

1. Look for trigger events. There are a number of circumstances that will make it easier to build a relationship. There could include things such as:

** A conflict. Due to a conflict with another client, your competitor may find itself unable to execute a piece of work. This can most commonly occur with investment banks and law firms, but similar situations can arise with other types of advisors.

** Executive changes. The individual who has a strong relationship with your competitor may leave or be reassigned elsewhere.

** Reorganizations. This may cause the client to rethink how it distributes its business among outside firms.

** Economic events or shocks. Sometimes, a profit crunch or loss of market share will trigger a company to rethink its use of advisors (e.g., clients will often change advertising agencies for these reasons).

** Turnover or retirements at the competition. If a lead partner or key relationship manager retires, for example, this may be an opportunity to press your case and invest in trying to capture some share of wallet.

** A service or quality failure on the part of your competition. One of my clients won over a new client despite that company’s 10-year relationship with another advisor. They were told that the incumbent, in 10 years, had never learned anything about the client’s business, and the client was tired of their complacency and of the generic advice they were getting.

2. Try to identify something small or non-threatening that you can work on. If, in order to hire you, a client has to dump an existing provider with whom they have a good relationship, your chances of success are very small. How would you feel if someone you just met said, “I want to be your friend, but you have to get rid of your best friend in order for us to build a relationship”?

3. Focus on an area where you are clearly differentiated or have a tangible strengths vis-à-vis your competitor. I’ve seen firms make inroads because they had a strong presence in a particular market or country, or had done some unique research around an issue of importance to the client. Ask yourself, “Where do we have a particular strength we can leverage?”

4. Invest to earn their trust and respect. The incumbent has the advantages of knowing the client better than you and having built up a repository of trust that you lack. You’re probably going to have to go above and beyond in terms of making an up-front investment in understanding the client’s issues and organization.

5. Identify executives in the client organization who are not so loyal to the other provider. You’ll certainly be able to capture the attention and interest of these executives more easily, potentially dividing and conquering.

6. Emphasize innovation and new ideas. Clients are always looking for fresh perspectives, and they will usually not let an existing relationship get in the way of at least listening to someone else’s good ideas. One of my own clients aspired to work for a major global company based in London, one that was the largest client of their direct competitor. Their ticket to entry was a bold strategy which involved leading with a controversial but well-developed and innovative viewpoint on the future of the industry. They also leveraged strategy (5), above, by appealing to a senior executive who was less tied to the other firm. Once inside, they all but entirely displaced the competition.

7. Be patient and persistent. Usually, it will take many visits and many conversations over a long period of time–months not weeks, certainly‹to find the right opening.

8. Stay in touch so you are there when your number comes up. This applies to any new business development situation, but even more so when there is a major, established competitor. You may get lucky and receive what seems like a call out of the blue because a client’s advisors have an unforeseen conflict, but even such a call is likely to be the result of your systematic relationship-building efforts rather than serendipity.

9. Pick your shots. When there is a strong incumbent, breaking in can be an uphill struggle, and it’s no fun to bang your head against a door. Be selective about investing your time, and focus on those few opportunities where the potential payoff (future revenue, opportunity to serve a marquis client, etc.), multiplied by the probability of success, suggest a worthwhile goal. Sometimes, until there are some major personnel changes, the client just isn’t going to give you any business under any circumstances. If that’s the case, move on.

Relationships do change–they aren’t cast in concrete. Remember, this very week, your competitors are calling on your own best clients, trying to capture some of their business–the least you can do is return the favor. Don’t just play defense.

Andrew is the author of two acclaimed, best-selling books, Making Rain: The Secrets of Building Lifelong Client Loyalty (John Wiley) and Clients for Life: Evolving from an Expert for Hire to an Extraordinary Advisor (Simon & Schuster), as well as over 75 articles on building long-term relationships. Andrew has worked for 25 years as both a strategy advisor to top management and an executive educator, designing numerous, leading-edge programs for senior professionals. Visit his website at www.andrewsobel.com

August 12, 2008

Two Recent Encounters—Anomalies?

Do prospects OWE you their time and attention? Of course, for many of us that seems like a silly question. But for some salespeople it’s not only a legitimate question, its one that they believe the answer to is ‘yes.’

I’ve met two salespeople over the past 90 days or so that make me wonder if the world isn’t going off the deep end faster than I once thought.

As prospects-in both of these cases we’re talking about business prospects-become harder to reach, insulating themselves more deeply from salespeople’s attempts to connect with them, some salespeople appear to be adopting a slash and burn mentality, trying to force prospects to pay attention to them.

One salesperson who specializes in cold calling told me that when he encounters a prospect who won’t return his call or whose assistant won’t pass him through to the decision maker, he informs them that if they want him or his company to ever purchase their products or services, the decision maker will take his call. He says he is very upfront about the fact that the decision maker-because the decision maker sells a product or service–owes him the time and courtesy of taking his call and if they won’t, he’ll not only not buy from them but do everything he can to keep others from buying from them also.

Another says he has let a number of decision makers from companies who have sent him direct mail know that they are obligated to hear him out because they approached him first with their marketing pieces. Since they sent him their material, they expect him to read their material; consequently, he expects them to listen to him in return.

Neither of these men are sales neophytes. One owns a company that specializes in setting appointments for their sales clients; the other owns a financial services company.

In almost 30 years of being in sales I don’t recall ever encountering such self-centered, irrational behavior regarding connecting with prospects. I’ve known salespeople who may have thought this in the past, but I cannot recall ever meeting salespeople who would confront a prospect directly in this manner. Are these two an anomaly or have we come to the point in the breakdown of social interaction where slash and burn tactics are becoming acceptable?

August 11, 2008

A Sales Training Question

There has been much written lately about why sales training is so often ineffective and how to improve its impact on the sales team.  Many of these articles can be found on The Customer Collective.

In a recent blog post Dave Stein discusses his email exchange with Tim Sullivan, a director of Sales Performance International, regarding SPI’s public sales training seminar offerings.   Dave’s original question to Tim was how SPI could justify a public training seminar when both Dave and SPI agree that sales training has little impact unless there is an underlying change in the company’s business process.

I’m in agreement with Dave and Tim that in order to maximize the impact and value of sales training it must coincide with a fundamental change in the company itself.  That, however, is more wishful thinking than reality for the great majority of companies.

My experience as employee, trainer, and consultant is that few companies-especially small and mid-size companies–provide sales training.  Most companies provide-or at least try to provide-substantial and effective product training, but little or no sales training.  Many companies in fact believe that their product training is sales training.

Some companies do recognize the need for sales training and try to address it in a variety of ways from having their management team act as trainers to making available to their team a library of sales books, CD’s, and DVD’s to sending their team members to public training seminars.  A few-these tend to be the larger companies-try to aggressively address the issue of sales training either through a steady dose of outside training companies or their internal training department.  Some do it well, some do it very well, some are just spinning their wheels and spending large sums of money for little return.

Most salespeople are left to fend for themselves; hence the hundreds of thousands of sales books, thousands of sales training sites, personal coaches, and flood of CD’s, DVD’s, sales forums, article sites, and other training products and services targeted to the individual salesperson.  Frankly, most of these resources simply parrot one another, although there are a few that challenge conventional thinking and offer new takes on addressing the increasingly difficult tasks of finding, connecting with and selling today’s business and individual consumer.

Worse for the salesperson, the training industry in many ways is more an industry of credibility than effectiveness.  Business is often acquired through credibility–that is publishing books, writing articles, giving great presentations, being quoted more than the next person.  But having credibility isn’t the same as being an effective trainer.  One may be a great thought leader in training without having the ability to effectively train.  Likewise, one may be a great trainer capable of taking the thought leader’s insights and turning them into highly effective and behavior changing training, but not be able to make any original contributions of their own.  The former has great credibility and little effectiveness; the latter no credibility but great effectiveness.

The problem for salespeople-and ultimately for trainers-is how to create some semblance of a comprehensive, workable, and effective training regimen out of this vast assortment of possible training options.  Salespeople tend to pick up a book, watch a CD, or attend a training seminar based on what they feel they need at the moment.  Often it is simply desperation that moves them to seek out and engage training, hoping to address a critical gap in their sales business.

In a fragmented industry where each company or individual trainer is free to seek business where they can find it and how they will (sometimes with less than ethical means and fanciful claims), is there a way for an individual salesperson or a very small company to acquire the objective guidance and direction they need in order to create a comprehensive training program for themselves or their small team?

August 8, 2008

A Few New Web Resources You Should Know About

If you haven’t found these resources yet, they’re worth looking into:

Insightory: Insightory is another in a long line of sites featuring the work of top business thought leaders.  Insightory’s difference is that they have a number of experts from around the world that are not often found on most other sites.  The site has some excellent material.

Sales Training Warehouse: For those from ‘Down Under’ there’s a new site that features sales training material from several top sales experts.  You’ll find coaching, books, training CD’s and more.  The site is new but the offerings will continue to grow.  For non-Aussie training material such as mine, one of the advantages of the site-besides aggregating resources on a single site–is that pricing has been converted from American dollars and the VAT added so you know what you’re going to pay right up front.

Sales Book Awards: My friends Jeb Blount and Jonathan Farrington have decided it is time to do something about recognizing the best sales books.  Their answer?  They created the Sales Book Awards.  You can nominate your favorite sales books for recognition in several categories.  Nomination deadline is Sept 30-so hurry and get your nominations in.

Business Expert Webinars: Another friend, Lee Salz, has created Business Expert Webinars.  Lee has gathered together dozens and dozens of business experts from almost every area of business you can think of to offered one-hour webinars.  Webinars are very reasonably priced at $79.00 each.  Take a look at their offerings-and register for a webinar.

August 6, 2008

Cold Calling–Some Advice to Get the Call Answered

Filed under: cold calling,prospecting,sales,selling — Paul McCord @ 7:27 am
Tags: , ,

The Inside Sales Experts Blog has a couple of very good posts regarding cold calling.  Although I’m not a fan of cold calling and believe there are far more effective methods of connecting with prospects, I do realize that there are some prospects you just can’t connect with any other way.  Even though cold calling in my opinion should be the exception, not the rule for any salesperson engaged in a relationship selling process, it is still paramount to hone your cold calling skills.  Most of us, however, simply pick up the phone and call–without really knowing what we’re going to say.

Matt Bertuzzi is a Marketing Manager who gets tons of cold calls.  He gives his advice on how to answer a cold call here.

Trish Bertuzzi is President of The Bridge Group, a company that trains inside salespeople.  Here she gives her advice on cold calling.

August 5, 2008

New Referral Book Coming Spring of 2009 from Sales Gravy Press

Sales Gravy Press Signs Best-Selling Author Paul McCord

Author and internationally recognized sales trainer Paul McCord has signed with Sales Gravy Press to publish his newest book, a follow-up work to his best-selling book on referrals, Creating a Million Dollar a Year Sales Income: Sales Success through Client Referrals (Wiley 2006).

Cape Coral, FL (PRWEB) July 31, 2008 — Author and internationally recognized sales trainer Paul McCord has signed with Sales Gravy Press to publish his newest book, a follow-up work to his best-selling book on referrals, “Creating a Million Dollar a Year Sales Income: Sales Success through Client Referrals” (Wiley 2006). The new book leads the reader through specific application strategies of the groundbreaking referral generation process laid out in Creating a Million Dollar a Year Sales Income.

“The initial book laid the groundwork for a disciplined, predictable, effective process for generating a large number of high quality referrals from each client,” McCord said, “and now I show salespeople how to apply those principles to specific situations. The first book demonstrated why the training they received hasn’t worked and walked them through a process that not only generates referrals, but generates a large number of high quality referrals. The new book goes even further and shows salespeople how to mine their database, turn cold calls into referred calls, and how to make giving referrals so easy they can generate 10, 15, 20 or more quality referrals from every one of their clients.”

With almost three decades under his belt as a salesperson, manager, business owner, and consultant, McCord’s experience and knowledge is both wide and deep. And like most of us, his life’s journey has taken some strange turns. “I thought I was going to be an academic, teaching Philosophy in a university,” he admits. “But as a doctoral student, it became clear that I didn’t have the personality for the academic life. I was more attracted to the real than the theoretical. I left the program and went into sales — and what’s more real than selling? Now, almost thirty years later, I’m back where I started–teaching, combining my love of working with and training salespeople and managers with the hard lessons I’ve learned over the years in the sales business.”

“Getting Paul on board is a huge win for Sales Gravy Press,” said Publisher, Jeb Blount. “Paul’s large following and proven success as an author are cornerstones in our mission to build a foundation of the brightest authors, speakers, thought leaders, and experts in the sales profession. We are just ecstatic that Paul has joined the Sales Gravy family.”

The new book will be released in the spring of 2009.

August 4, 2008

Interview with Mike Brooks, Mr. Inside Sales, on His New Book

Mike Brooks, Mr. Inside Sales, has just released The Real Secrets of the Top 20% (Sales Gravy Press, 2008). I interview him about the book and how it will help salespeople increase their effectiveness and their income.

mike-brooks-invterview-revised

The Real Secrets of the Top 20% is available at Amazon, Barnes and Noble, Borders, and all fine bookstores.

August 1, 2008

From Classroom to Paycheck–Making Sales Training Work

One of the most common complaints that I and other sales trainers get from both salespeople and companies is that sales training in any form, whether via book, workshop, seminar, or on-line course, has little or no impact for most of the men and women who take the training.  Unfortunately, their complaint is backed up by a number of studies that confirm that training does not change the behavior, attitudes, or results of the vast majority of salespeople.

Where does the fault lie for this miserable return on investment from training?  Does it lie with the sales trainer who performed the training?  Is the problem with the content of the training?  Maybe the issue is with the teaching methods employed?  Perhaps the real problem is with the salespeople themselves?

No doubt blame can be affixed to all of the above.  But there seems to be a more basic issue that is obvious but often overlooked.  Sales training is not simply an intellectual activity; by its very nature it demands behavior change.  To be effective, sales training requires that negative or ineffective behaviors be replaced with positive or effective behaviors.  Sales training has more in common with sports coaching than it does with academic teaching.  It is action oriented.  The lessons must be integrated into one’s behavior, not just filed away in one’s mental filing cabinet.

Changing behavior is different than absorbing information.  The basic problem with sales training is that the delivery format-even in a workshop that entails role play and group interaction-is predominately information oriented.

To be effective, sales training must be converted from information to behavior and that can’t be done in an hour or half-day or even a two or three day training session.  It takes time.  It takes repetition of action.  It takes making and learning from mistakes.  It requires the student be able to analyze performance, isolate mistakes, and institute new behavior that corrects the mistake.

It takes coaching.

There are a few salespeople in each training class that really seem to get the training.  They understand not just the concepts being trained; they understand how to implant those into their daily activity.  They also have the drive to work through the mistakes, the false starts, the missed opportunities, the disappointments they encounter while honing their newly learned skills.  They are the exception.  They are the few who management sees a positive change in and wonder why the others didn’t make the same changes.

Most of us don’t have the ability or the patience to implement the training, work through the issues, and hone the skills while consistently ‘blowing’ the implementation on our own.  We have to have help.  We have to have an outside observer, a sounding board, an encourager, a disciplinarian.  We have to have a coach.

Coaching has been a staple of sports for thousands of years.  Every athlete, from the youngest to the best player in the world, has a coach.  Their coach performs a number of duties but the primary duty is to oversee behavior change.  Teach information, yes.  Discipline, yes.  Encourage, yes.  But all of those are supplements to the primary goal-behavior change.

A few years ago a friend of mine, a minor league baseball player, was trying to improve his prospects of being promoted to the majors.  One area where he thought he could add value to his game was learning to bunt.  Not a power hitter, he needed some additional ways to help his team and bunting could be one.  He read several books and watched videos of a number of the game’s top bunters.  After reading the best books and watching the best bunters could he bunt?  No.  He had the concepts, but he didn’t have the behaviors.  So, he headed to the field with his hitting coach.  Over the course of weeks-and untold hours of work-his bunting skills improved markedly.  But they still weren’t major league quality.  He ended up hiring a bunting coach during the off season that could spot the tiny mistakes and negative behavior in his bunting technique and help him replace those actions with the positive actions that would result in success.  It took him almost a year and a half to become a really good bunter-almost three years to become a top bunter.  Translating what he learned into actions, into behaviors, was a long-term process that required a great deal of practice and coaching–and lots of blown opportunities in games.

Selling is no different.  Knowledge in sales is useless unless you use the knowledge, and that comes in the form of action-whether that action is instituting the referral generation process, dealing with those pesky objections, or closing the sale.  And just as with an athlete, translating the information into action requires coaching.

If you want the sales training you or your teams engage in to ‘work,’ that is to instill positive behavior and eliminate negative behavior, you must have a coach.

Individual salespeople must find their own coach, whether through a formal paid coaching arrangement with a professional trainer/coach, their manager, or another member of their team.

More and more sales trainers are including group or individual coaching in their corporate sales training proposals.  Some trainers are including ‘coaching the coach’ segments into their training proposals where they train the management team to be the team’s coach.  Some companies are simply relying on their management team to coach without formal coaching training for the particular sales training that was just delivered.

Sales training doesn’t work if it is information oriented only.  Sales is a contact sport.  It requires salespeople to learn not just information but to perform certain actions, and those actions don’t come naturally or easily for most of us.

Sales training can have a high degree of success for you or your sales team.  Not on its own, but in conjunction with active coaching.  Whether you’re an individual salesperson or a manager looking to train your team, if you’re not going to back the training up with active coaching, you may as well save your money.  However, if you choose to add coaching to the training mix, you’ll see a significant change in your sales performance-and your paycheck.

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