Sales and Sales Management Blog

November 11, 2008

Guest Article: “Managers Continue to Teach Their People How to Avoid Full Accountability,” by Keith Rosen

Filed under: business, management, small business — Paul McCord @ 9:04 am
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Managers Continue to Teach Their People How To Avoid Full Accountability
By Keith Rosen

“What is that guy doing now?” It was just an odd maneuver. Something out of the ordinary from what would have typically been an everyday experience at the drive through of a Burger King. (Hey, my kids love it and no, they don’t eat this ever day; just a treat!) I was on my way back home after spending the day with the family, unaware that within the next several minutes I’d be having a breakthrough which led to the development of many of the concepts and strategies you’re going to read about in my book, Coaching Salespeople into Sales Champions.

I watched the customer in front of me drive from the first to the third window of the drive through which happened to have been closed. “What an odd maneuver,” I thought, as I noticed that the typical handoff through the drive through window was not in play. Instead, the cashier came outside, headset in tact and bags of food in hand, to deliver it directly to the window. The customer, happy to receive his order, drove off.

As I pulled up, I wondered if I too would suffer the same fate as the customer before me. Then it happened. Out of the corner of my eye, I noticed a digital timer mounted above the cashier’s head near the window. At that moment, the manager at the drive in window waved me forward, without my food. “We will bring it out to you. Just pull up, please,” he requested.

The manager sent a young man out to my car and handed me my food. Wanting to understand this odd tactic, I couldn’t let it go. “I’m curious, why did we have to pull up, especially when there was no one behind me?”

“The timer,” he replied. “That’s how the manager is rated in performance. We’re supposed to serve each customer under a certain period of time.”

As a manager, is this truly a feat you’d want to be known for? This manager actually succeeded at beating the clock, yet at a greater expense and one that most managers are blind to. Then, with a puzzled look of disbelief, these managers are mystified when their staff doesn’t meet expectations of performance. This manager unknowingly or worse, consciously did his company, every customer, as well as every person on his team, a major disservice.

Is there really any wonder why there is such a shallow pool of real talent in the workforce? At some level, across every business unit, industry or profession, this is what our managers are teaching the workforce - how to skirt and dodge full accountability! And then they sit and wonder why they can’t attract better people into their organization who are fully accountable for their performance and success. Hmmmmmm.

Keith Rosen is the President of Profit Builders, LLC, (www.ProfitBuilders.com) a provider of leadership and sales coaching and corporate training. He is the author of Time Management for Sales Professionals. His last book, The Complete Idiot’s Guide to Cold Calling has been featured in Inc. magazine and became a Best Seller on Amazon.com.

November 9, 2008

Management Spy or Sales Aid–What is Your Client Management System Designed to Do?

Filed under: Client Relationships, Sales Management, business, crm, management, sales, selling — Paul McCord @ 7:28 pm
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“I know exactly what each of my sales team is doing-I know they maintain their contact management program religiously because they have to turn in a detailed report daily and an even more comprehensive report at the end of the month.  We know exactly who they contacted, what transpired, where the sale stands, and what the customer is going to buy.  We know everything we need to know.”

“How accurate is the information?”

“That I can’t say although our sales managers are supposed to be going over the reports with each member of the sales team and spot checking accuracy.”

“How well do the reports track with your actual sales numbers?  More specifically, how well does each team member’s report track with their sales numbers?”

“Of course there is discrepancy between the reports and actual sales.  Some things that are expected to close don’t, others don’t place as large an order as expected, others don’t buy when expected.  Those things happen.  If you’re asking if we use these reports for our sales projections, the answer is no.  We establish our objectives and each sales person’s quota and they’re expected to meet those numbers.  Projections are independent of these reports.”

“What are the reports for?”

“We track the team member’s activity so we know they’re doing what they are supposed to be doing.  It’s an activity management tool, not a projection tool.”

“What do your team members get out the process?  What’s the benefit to them?”

“They log each future activity for each prospect and client and that activity is then displayed on their screen on the day they have scheduled the activity.  They must complete the activity and check it off or the system will alert their manager.  They have an automatic tracking system to help them keep their prospect and client activity up to date and to make sure they don’t drop the ball.  The system won’t allow them to overlook a commitment they’ve made.  It helps them monitor prospects and clients and manage their time and work.”

“How much time do they have to spend maintaining the contact management system and doing the daily and monthly reports?”

“I don’t know.  Probably no more than a few minutes each day; maybe an hour to do the monthly report and another 30 minutes meeting with their manger to review it.”

“How much time does it take your managers to monitor and review the reports?”

“I really don’t know that, either.  I’d suspect maybe a half hour each day and no more than a day, a day and a half at the most, for the monthly reports, including meeting with each team member.”

“David, what do your salespeople and managers think of this system?  You said they use it because it is mandated that they do, but do they find it helpful or do they see it as nothing more than a way to be micromanaged?”

“We got complaints at first, but that was to be expected.  I really don’t hear too much complaining now except from the salespeople who aren’t doing what they’re supposed to be doing.  I think most see it as a major aid in keeping them up with their clients and prospects.  I’d be really surprised if many were unhappy using it.”

“Would you mind if I spoke to some of them and got their opinion?  I’ll certainly let you know what I find but I’m not going to reveal which salespeople I spoke to.”

“No, feel free.  I think you’ll find most are happy to use it.”

The above is an actual conversation I had with a new client a couple of weeks ago.  I suspect if you’re from the sales side of business, you can guess the attitudes of the salespeople toward the client management system.  They hate it.  They see it as both a time waster and a way management can micromanage them.

They don’t complain about the system too much-it’s been mandated, so they rebel by doing the least they think they can get away with.  If they don’t have enough contacts, they make them up.  They put in as few future tasks as possible.  They check tasks off as being done when they haven’t.  They give management what they believe management wants.

This company’s client management system is as worthless as the old handwritten activity reports they used to get from their salespeople.  The only difference is now the reports are easily accessed by all the company’s management, not just the salesperson’s immediate manager.

David’s company isn’t alone.  There are tens of thousands of companies that have bought client management systems that are just as worthless.  Like David’s company, they justify their system by convincing themselves there is a real benefit in it for the salesperson when in fact its real purpose is to baby-sit a sales team management doesn’t trust.  It’s automated micromanagement.

Unfortunately, when I informed David of the attitude his sales team has toward the system, his response wasn’t, “what do we need to do?”  Instead, it was, “I’ll talk to the managers and get everyone in line.  I didn’t invest in this thing for it to be abused or ignored.”

If your system isn’t giving tangible benefits to your sales team or if your team members view the system as a management spy tool, you are more than likely getting the same results as David-worthless information that is designed to get you off the sales team’s back.

Ask yourself these three questions about your contact management program:

  1. What tangible benefits do my salespeople get from the program that helps them grow their business or be better salespeople?
  2. What is the REAL purpose of the program-to help the sales team or micromanage them?
  3. How do the salespeople view the program-as an aid to their business or as a spy for management?

If your answers aren’t salesperson centered, you’re fighting a losing battle.

November 5, 2008

Guest Article: “Maximizing Your Price–The Value/Benefit Equation,” by Mark Hunter

Filed under: business, marketing, sales, selling, small business — Paul McCord @ 9:02 am
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Maximizing Your Price - The Value / Benefit Equation
By Mark Hunter 

Price increases are currently occurring at a faster rate than we’ve seen in the US economy for nearly 25 years.  The driving forces behind these increases seem to be the rising costs of labor, raw materials, etc.  Although these are certainly valid, the real reason for these price increases should stem from the value of the product or service you’re selling, not the cost associated with them.   Unfortunately, for the past two decades, there have been many companies leaving billions of dollars of profit on the table because they’ve been basing their pricing on cost rather than the value / benefit equation. 

Why should anyone pay more for something than the amount incurred to produce it?  For many companies, this seems like a logical question.  They determine the cost of their goods and services from a cost-plus model which says that the price you charge should not be out of line with what it costs you to produce it.  However, if this was true for all items in today’s marketplace, then we’d all be paying a lot less for tickets to concerts and sporting events, as well as items like computer software, DVDs, etc.  When companies understand that the real profit is made by pricing their items according to the value / benefit of what the customer is going receive from their product or service, their bottom line will reflect it.  Over the years, I’ve found that the larger the company, the more confident they are with their role in the marketplace, and thus the more confident they are in pricing themselves based on the value / benefit equation.  Small companies, on the other hand, are less confident and are more likely to set prices using the cost-plus model.  Although there are many successful companies that use the cost-plus model including Costco and Wal-Mart, I believe it’s imperative for every salesperson, no matter who they work for, to push themselves to the value / benefit equation.

The value / benefit equation is very simple.  It is built entirely on understanding the benefits that the customer is going to realize from using your product or service.  To discover these needs, a salesperson is required to not only ask them questions during the sales process, but also to really ascertain how their product or service will be used for the long-term.  Do not equate value to low-price.  On the contrary, the best value is many times the highest price (or at least what appears to be the highest price initially). Take, for example, the price to fly from New York to Los Angeles.  I’m sure a person could take a bus across the country for a lot less money, but the value / benefit equation would be low for the bus trip because of the time it would take.  Conversely, flying would cost more initially, but provide you with far more time once you reached your destination.

As a salesperson, you should never allow yourself to get steamrolled into a price increase discussion with a customer that is centered solely on raw costs.  Whenever you present a price increase, always begin by asking them questions about the benefits they receive from what you’re providing them.  This allows the customer to better understand the importance of you and your company to them.  Encourage them to explain how you fit into their supply-chain model or how you impact their overall business process.  The key is to get the customer to share with you something specific and unique about how you help them.   Then, to further drive this point home, ask them follow-up questions based on what they tell you.  Their specific responses will reiterate the fact that you and your company are an important asset to them.  Once you have achieved this level of dialogue, you can then share your price increase.  Because they realize how crucial you are to their success, they will be less likely to raise any objections.  At this point, you will have achieved the value / benefit equation you’re looking for and the higher price you deserve.

Despite the grim economy that seems to be driving many price increases, the outlook doesn’t have to be hopeless for salespeople.  By focusing your customer’s attention on the value / benefits your products or services offer, you can help them see that it is imperative that they continue in business with you because of how you and your company contribute to their overall success.  

Mark Hunter, “The Sales Hunter”, is a sales expert who speaks to thousands each year on how to increase their sales profitability.  For more information, to receive a free weekly email sales tip, or to read his Sales Motivation Blog, visit www.TheSalesHunter.com.

October 31, 2008

What Does Your Client Touch Program Say About You?

Filed under: Client Relationships, Communication, business, marketing, sales, selling, small business, trust — Paul McCord @ 8:26 am
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What are you doing with those prospects that are in your database that aren’t ready to purchase yet?  Are you in the process of establishing trust and good will-or are you demonstrating that you aren’t trustworthy or that you really don’t have anything of value to offer?

Whether you’ve considered it or not, everything you send to a prospect communicates your value-or non-value, and your trustworthiness.  Everything you send.  No matter how small.

Most salespeople, professionals, and companies will put their long-term prospects into a database and keep in touch with them on a semi-regular basis.  They’ll send a monthly or quarterly newsletter, a “how ya doin, ya ready to buy yet?” email or letter on occasion, and make a phone call once in a blue moon.  Some will inundate the prospect with so much junk mail and junk email that the prospect wonders how to get rid of them.

Either way, the prospect is learning about the salesperson or company.  The question is what are they learning?

Let’s look at the three most common negative messages prospects get from salesperson and company communications:

You Aren’t Reliable:

Reliability is a major trust factor and what you send and when you send materials to your prospects will communicate to some extent whether or not you are reliable.  If you promise to send information, do you send exactly what you promised, when you promised?  If not, why should a prospect trust you?

Do you send a monthly or quarterly newsletter?  Is it on time, every time?  If the date on your newsletter is May and it arrives in June because you were too busy to get it out, what message does that send?  Think people won’t notice?  I received the Jan/Feb newsletter from an interior decorator-in April.  Is that how she handles all of her commitments?

You Don’t Value My Time

Are the items you send of real value to the prospect?  If it isn’t of value, why do you send it?

What people will send is amazing.  I get newsletters with recipes, gardening tips, and other information that might be appropriate for some salespeople, but not from the people who are sending it.  Recipes, gardening tips, household tips, etc. might be appropriate in a REALTOR’S newsletter, but not an accountant’s, or financial planner’s, or insurance agent’s, or from an auto repair shop.  If I get something from an accountant, I expect it to have some relevance to my financial needs.  If I get something from an auto repair shop, I expect it have something to do with automobiles.  I don’t expect an attorney to send me an article on how to give a massage (yep, got one). 

What can you send of value?  There is a ton of stuff.  Articles relating to the area you address; special offers; new services and/or products; major company news; and other pertinent information.  All of these items are likely to be of interest to a majority of your prospects.

The key is not to waste your prospect’s time.  Of course, not everything you send is going to be of interest to every one of your prospects.  But if your information is good, all of your prospects will find value in your communications-just not every prospect for every communication.  I get a number of emails after each edition of my newsletter.  Many praise a particular issue; others are indifferent.  But some of those who were indifferent to one issue may email me an issue or two later raving about the latest issue, while the one who was enthused about the first issue emails me to let me know I missed the mark with them on the last issue.  I, like you, have to aim to bring lots of great material to the table, knowing that each reader is at a different place in their careers.  What appeals to one, may not appeal to another.  However, if I bring enough diversity to the newsletter, I can hit everyone’s needs, just not in every issue.  You must aim for the same goal-bring substance to the table, and overtime, you’ll feed the lot.

Every time you communicate with a prospect or client, even with your mass communications, you are teaching them to pay attention to you because you value their time and give them value-or you are teaching them to ignore you because you are nothing but a time waster.

You Don’t Know Your Business

Sending out-dated or erroneous information also will be noticed by many prospects.  If you fail to review and carefully examine your information to make sure that it is up-to-date and accurate, you run a serious risk of convincing your prospect that you simply don’t know what you’re talking about.

The articles and other materials you send, whether written by you or others, must contain current, accurate and trustworthy information.  Never assume that yours is the only information the prospect is receiving about your subject.  Your object is to inform, not confuse.  Your goal is to impress, not show your ignorance or laziness.  Errors are especially easy to miss when dealing with statistics and factual matters of record.

This isn’t to say that you can’t send items that may challenge conventional wisdom.  You certainly can-and if you can back your information up, these may be your most potent communications.  For instance, I work obviously in the areas of sales and sales management.  Most salespeople and managers know there are a great variety of training methods and theories.  Controversy and going against convention isn’t an issue in this industry.  As a matter of fact, many are well aware that many conventional ways of doing things simply don’t work that well.  Consequently, going against convention and finding better ways is welcomed. 

But in other industries, for example, many sectors of the financial services industry, bucking convention many not only raise many eyebrows, but your very competence may be questioned if your ideas are not well documented by independent sources.  Does this mean that you can’t present non-traditional ideas in these industries?  No.  It simply means that you must go out of your way to document their validity because you know upfront that you’re dealing with a subject where innovation is going to be questioned-not just by peers, but by many prospects also.

In addition to sloppy work, overstatements and exaggerations are another red flag for prospects.  It is perfectly permissible to make strong statements about your products and services as long as you are not the author of those statements and you can identify for your prospects exactly who made the claims about your product or service. 

If you use superlatives about yourself, your product/service, or your company, they cannot be from you and you must fully identify the person who made them-meaning they can be checked out.  If you make the claim yourself, you lose credibility.  If you attribute the superlative to someone who is not fully identified, you lose credibility.  If you use an authority in your particular field and give full identification, you gain credibility.  If you use an everyday customer with full disclosure, you gain credibility.

Examine your prospect communications in light of these three most common mistakes.  Don’t allow yourself to lose credibility while trying to build credibility.  Every communication you have with a prospect or client is just as important as your initial communication with them.  You’ve worked hard to gain their trust and respect.  Don’t blow it by teaching them that you’re nothing but a time waster.

October 23, 2008

Guest Article: “Maximizing Your Price in a Soft Economy,” by Mark Hunter

Filed under: Closing Sales, Economy, business, sales, sales psychology, selling, small business — Paul McCord @ 5:25 am
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Maximizing Your Price in a Soft Economy
By Mark Hunter

Establishing maximum value for your price is never easy.  In today’s volatile economy, it’s even more of a challenge.  For most companies, costs are increasing, yet the ability to pass them along to the customer is fraught with numerous roadblocks.  The customer’s response to a price increase is rarely positive, with the usual line of objections that go along with it.  In addition, there are the concerns that a competitor’s price may undercut yours or that the customer may choose to go down a different path instead of buying from you at all.  As big as these issues are, they pale in comparison to the number one roadblock to maximizing your price point:  the confidence of the salesperson.

The main reason why companies do not capitalize on their potential revenue is because their salespeople do not have the confidence to ask for and receive the highest price point.  If a salesperson is secure in what they are selling and in knowing how the customer will benefit from their products/services, then they will be confident in asking for and getting the desired price point.  The problem is that many times the salesperson lacks confidence in at least one of these areas, resulting in their inability to make their sales quota.

To rectify this problem, it’s important to examine how the salesperson first developed a lack of confidence in their ability to maximize their price points.  Generally, it stems from a sale they perceived to be lost because their price had been too high.  On the surface, their assumption probably appeared to be correct.  However, in reality, it just seemed that way because the right price-value relationship had not been established.   If the salesperson had executed a proper sales strategy that allowed both himself and the customer to see the product’s/service’s true value, this could have been avoided.  It needs to be communicated that in a B to B environment, the benefits are to both the buyer and the business they’re buying it for.  In a B to C environment, the benefits are to both the buyer and to the person(s) who will actually use the product or service.  When the salesperson and the customer understand this, it can help erase the uncertainty that the price may pose.

Let me give you two quick examples.  If a person works for a mega-global company and is buying widgets, he’d have no problem spending a little on them if he knew he was buying them from a reputable company that has experience selling to other mega-global companies.  In essence, the customer is looking for confidence and is willing to pay for it.  In a B to C situation, because the customer doesn’t want to look like a fool for their purchase, they want the salesperson to provide them with enough emotional benefit to allow them to convey to others that they made a great decision.  In both situations, an inexperienced salesperson is going to lose the sale if they don’t take the time to use questions that encourage the customer to fully express their needs.  In general, new salespeople often lose the sale shortly after they’ve stated their price.  Thus, it’s only natural for them to believe that the price was the determining factor.  However, when digging below the surface, the price was not what prevented them from closing the deal.  Rather, they lost the sale because they didn’t ask enough questions to fully establish the needs of the customer.

Top-performing salespeople ask questions that allow the customer to elaborate on their needs and then demonstrate their listening skills by asking appropriate open questions and probing deeper with great follow-up questions.  They use the information that they learn to better explain how their product or service can be beneficial to the customer.  In my 25 plus years of selling, I’ve learned that the customer’s real needs, hurts, and wants don’t often surface until you’re demonstrated genuine interest in what their thoughts and goals are.  Ironically, this means that you can throw out their initial comments, as it is rarely the need they are looking to fill.  If you expect to base your price-value relationship on what you first hear, you’ll never come close to achieving your maximum price point. 

In summary, today’s economy is full of opportunities for top performing salespeople to ask really good questions that get customers talking.  This allows both the customer and the salesperson to see, feel, and understand what their true needs are.  When the salesperson can experience this across multiple customers, they will begin to develop the assurance they need to be able to confidently convey the maximum price point their company expects them to receive.

 

Mark Hunter, “The Sales Hunter”, is a sales expert who speaks to thousands each year on how to increase their sales profitability.  For more information, to receive a free weekly email sales tip or to read his Sales Motivation Blog, visit www.TheSalesHunter.com.

October 17, 2008

Turn Your Client Database into Gold

Filed under: Personal Marketing, Referral Selling, business, lead generation, marketing, prospecting, sales, selling, small business — Paul McCord @ 4:14 am
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Right this minute, you are probably sitting on tens of thousands, maybe hundreds of thousands of dollars worth of commissions. Most registered reps have a database of current and past clients whose potential referrals are worth several thousand additional commission dollars per month.  Yet, this resource goes virtually untapped for most advisors.

Why?  Simply because most reps have not learned how to successfully convert their client relationships into referral relationships. Acquiring referrals from clients is not as simple as “doing a good job” and then asking for referrals. Generating a large number of highly qualified referrals from a client is a process that starts from the moment the prospect is first met, not a one-time act after the sale has been completed.  It requires an understanding of what a successful referral is based on, and how to exploit the referral to insure a successful contact with the referee.

Every referral involves the interaction of three people and four relationships among those three individuals.  The strength or weakness of each of these interactions will influence the success or failure of the referral for the advisor:

  1. The Advisor/Client relationship:  In order for the client to be willing to give a quality referral, there must have been built a strong bond of trust between the rep and the client.  A client may give a “referral” to someone they do not trust, but they will not give a referral to someone they know well and respect if they do not trust the salesperson.  If there is only a weak bond of trust between the advisor and client, the “referral” the client is likely to give will be to someone the client either believes will not meet with the advisor or someone the client does not know well or respect.
  2. The client’s purchasing experience: Clients will not give high quality referrals if their purchasing experience did not meet or exceed both their expectations and their priorities.  All clients enter purchasing relationships with certain expectations and priorities.  Expectations and priorities are not the same.  A client may expect to be kept fully informed during the course of the sale and may have certain product or service functionality requirements as his top priority.  In order to receive a large number of high quality referrals, the rep must make sure that they meet or exceed both the client’s expectations and priorities.  Despite the current parroting of the buzz phrase, “exceeding the customer’s expectations,” meeting and exceeding client expectations is seldom accomplished.  Few people take the time and effort to discuss with their client what the client’s expectations and priorities are-rather most reps, and companies, assume they know.  At best, all they can knowingly accomplish is meeting or exceeding their expectations of what they think their client should expect.
  3. The Client/Prospect relationship: The trust and respect relationship between client and referee are of great importance.  The stronger the bond of trust and respect between the client and the prospect, the easier it will be for the advisor to set an appointment with and then sell the prospect.  In referral selling, a great deal of the rep’s credibility, or lack thereof, is built on the trust and respect the prospect has for the client who made the referral.  If the client/prospect bond is strong enough, the rep is virtually guaranteed a sale.  On the other hand, if the bond is particularly weak, the referral is little better than a cold call.  Consequently, it is of utmost importance for the advisor to know as much as possible about the client’s relationship, and likely bond of trust, with the prospect.
  4. The advisor’s initial contact with the referee: based on the client/prospect bond, the advisor must determine how best to contact the prospect to produce the greatest opportunity to acquire a meeting.   The weaker the relationship between the client and the prospect, the stronger the contact method the rep should seek to employ.  If the client/prospect relationship is extremely strong, virtually any contact method, including a phone call from the salesperson mentioning the client’s name will suffice, but for a weak relationship, the rep must strive to use the strongest contact method possible.  In descending order, from weakest to strongest, possible methods of contact include a phone call to the prospect from the advisor, an email from the client, a client letter, a client phone call, a client/prospect/advisor lunch meeting.

Fortunately, the advisor can control most of the above interactions.  Only the client/prospect relationship is completely out of the rep’s hands.  Even then, the rep can compensate for a less than ideal client/prospect relationship through using a stronger initial contact method.

If you understand the foundation of a referral, you can quickly increase your referral-based business and begin to mine that gold mine in your client database.

October 16, 2008

Working a Networking Event Made Easy–and Effective

Filed under: Networking, Personal Marketing, business, prospecting, sales, selling, small business — Paul McCord @ 5:29 am
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Are you one of the millions of small business owners, salespeople, and professionals who have attended networking events held by the chamber of commerce or a business organization and found the experience to be far less than what you had hoped?  Attending networking events requires more than simply showing up-it requires a disciplined approach.

Typically, the frustrations and wasted time arise from two fundamental issues:

  • overblown expectations
  • not having a plan of attack

Networking events, especially those of a general nature organized by the chamber or a general business organization, will not provide you with a plate full of potential prospects.  If you can walk out of a networking event with three or four good potential contacts, you have done well.

Unfortunately, many, especially those who are not networking junkies, attend these functions with the hope of leaving the event with a whole stack of business cards of great prospects.  When their expectations are not met, they conclude that networking isn’t all it’s cracked up to be and decide their time is better spent elsewhere.

In addition, most attendees waste the majority of their networking time.  Rather than an organized plan to maximize their benefit from the event, they simply attend hoping to “run into” prospects.

Yet, if you attend regularly and with realistic expectations, networking can eventually pay great dividends.  There are three “secrets” to making networking pay:

  1. Know Where You’re Going

Knowing who is likely to attend the event you are considering is as important as attending the event.  If you are considering going to an event you have never attended before, try to get a copy of the host organization’s member roster.  By examining the membership directory, you can get a fairly good idea of the type of people you can expect to meet.  If it appears there are a reasonable number of people and businesses of interest, plan on attending.  If you can’t get a copy of their member directory, call the organization and ask-most won’t mind the inquiry and will be happy to give you as much information as they can.

  1. Know Why You’re Going

Go with a definite number of contacts you want to make.  Determine how many good contacts you will need in order to make the investment of time worthwhile.  Depending on your particular product or service, that number may be only one or two-or may be much higher at five or six.  By establishing realistic, objective criteria, you can easily determine whether or not your time was well spent and whether or not you want to attend the event again in the future.

  1. Have a System for Working the Event

For most business owners and salespeople, the real networking event killer isn’t so much who is in attendance or even their own unrealistic expectations, but rather the time they waste during the event.

Working a networking room requires planning and a clear vision of how you will spend your time.  I and many of my clients that I’ve taught the following networking method have found it to be easy and very effective:

Arrive about 15 minutes before the official event start time.  Wear a large, easy to read, high quality, permanent nametag that features your first and last name, not just your first name.  Of course, have lots of business cards.  Business cards should be blank on the back.  Wear clothing with two easy to reach pockets.

Station yourself close to the entry door-close enough that people might mistake you for one of the hosts.  Greet each person as he or she enters.  Nothing more than a greeting-and, hopefully, noticing their company name.  All you want is to hear a name, put a name to a face and to make a quick judgment as to whether they might be a prospect.

When arrivals begin to slow, begin your progression around the room.  Move in one direction-left or right.  Greet the first person or group of people you meet.  This round of conversations should be short-two to three minutes at most.  Your goal is to introduce yourself and learn as much as you can in a very short span of time about the person or persons you’ve just met.  Don’t clutter the conversation with information about yourself-keep everything focused on the person or the persons you are speaking with.  Your goal at this event isn’t to sell it’s to qualify prospects.  This will be your second meeting with many of these people, although you will probably not remember their names.

Since many, if not most, will offer you a business card, you will begin to segregate cards into an interest stack and a non-interest stack.  When you meet someone you believe you’d like to get to know better-a potential prospect, put their business card in your right-hand pocket.  Those you don’t believe are prospects, put in your left-hand pocket.  This system allows you to immediately find the cards of those you want to reconnect with during the event without having to try to remember their name.

If you meet someone you would like to get to know better, before moving on to another group, let them know of your interest in learning more about their business and ask their permission to contact them via phone at a later date.  Once they agree, take one of your business cards and on the blank reverse side, write the day and an hour span of time during which you will call:  ”Thursday, March 12 between 10:30-11:30.”  This day and time will be the same for everyone you meet that you want to call.  It keeps you from having to remember when you will call, but because it is an hour span, you’ll have time to make several calls without concern that you won’t keep your appointment.

Now, move to the next group and continue in this manner for the majority of the event.  About 30 to 45 minutes prior to the end of the event, go into your last phase.  The last phase is taking the few cards in your right-hand pocket and seeking to reconnect with those people.  This will be your third chance to meet them and to put a name and face together.  In addition, since it will be your third meeting, they’ll begin to feel like they know you and they will probably greet you as a friend rather than as new acquaintance.  Just as you are implanting their name and face in your mind through multiple meetings with them during the event, you’re planting your name and face in their mind.

This conversation will be a little more in-depth, but, again, keep the focus on the

other person.  During this conversation, possibly you can move the conversation to the point that instead of a phone call on Thursday, you can invite them to lunch.  If not, prior to moving to the next person, again reiterate the phone call on Thursday and give them another business card with the same information written on the back.

On Thursday, make your phone calls and close for a get to know one another meeting.

This structure allows you to “meet” a prospect three times during the course of the event, set up a definite telephone conversation and help both you and the prospect quickly move from the “just met” stage to acquaintance stage very quickly.  All without having to remember any details during the course of the event.

If you keep your expectations reasonable and focus you time during the event on the few true prospects you meet, you’ll find your time at networking events to be both more enjoyable and profitable.

October 14, 2008

Guest Article: “Managing the Millennials,” by Gregory Stebbins

Filed under: Coaching, Sales Management, business, management, sales, selling, small business — Paul McCord @ 3:45 am
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Managing the Millennials          
by Gregory Stebbins  

Independent, tech-savvy, social, and optimistic - why are these “kids” so hard to manage?

The New Millennial’s, people born after about 1981, are now entering the work force en masse. Even seasoned sales managers are having challenges helping these people become productive. They have a different approach to life, which greatly impacts their ability to sell effectively. Understanding them and some key events that took place during their youth will help you get a handle on their outlook on life in general and work in particular.

While they were growing up there was a technology explosion. Their every day reality included video on multiple devices, mobile phone, computers, and iPods. They have been bombarded with marketing messages that are constantly changing. School violence and global terrorism (specifically 9-11) have made them wary about the world and helped them develop a global perspective. For the most part, poverty is something that they have seen on television. Watching their parents get downsized in the 80s and 90s has caused them to question loyalty to the company. Reality television, MySpace, Facebook, Second Life and Google have caused them to believe (and experience!) that information is available for the asking so being “transparent” (putting everything out there for all to see) is the way things should be.

While I often hear comments about their lack of work ethic, those are the same comments that were leveled toward Generation X and Baby Boomers when they first entered the work force. Neuro research now tells us that the prefrontal cortex of our brain continues to mature until about the age of twenty-six. So Millennials may continue to be a little irresponsible until they’ve been on the job for a while. It’s neurological, not attitudinal. So make life a little easier on yourself and cut them some slack.

What is different is their work style, motivations and view of the world, especially the corporate world. These individuals do have loyalty, which is focused on their social network and specific managers and members of the team - not on the company.

Generally they have an ability to find information about anything at a rate that far exceeds expectations of management. What they lack is discernment about the accuracy of the information. If it’s on the Net they tend to believe it must be accurate. They can instantly communicate this information to their social network via Blogs, Instant Messaging (IM), personal Web pages and cell phones. Some companies have found out the hard way that their management mistakes are common knowledge within days, if not hours.

Many of these people had parents who hovered over them during every waking hour, giving birth to the term “Helicopter Parents.” With probably hundreds of possible activities, from soccer to music lessons, Millennials have been over-committed and over-scheduled. They also have been smothered in praise with constant reinforcement about how great they are: blue ribbons for the entire team, there are no losers, etc.  They expect recognition for everything, even the most mundane activities. They may not know their own strengths and weaknesses because there have not been many opportunities for self evaluation or honest, constructive criticism.

This creates your greatest management challenge. How do you help them understand that there are indeed losers as well as winners in the sales world? How do you provide constructive criticism without devastating their psyche?

Keep in mind that these people will tend to look at you as a parental substitute. I know that makes most sales managers more than a little uncomfortable. Nonetheless, since their parents didn’t wean them, you get to do that. And, generally, this is going to be a shock to the Millennial. You’ll need to teach them basic decision making by coaching and guiding them step-by-step, before you tell them, “You decide.” Don’t be surprised if they’re calling you constantly asking the simplest questions.

Here’s a four step process that can be helpful in guiding them in decision-making (this process may take two to six months total):

    1.    The first time they approach you, work with them to think through at least three options. Then make the decision for them. Having them consider options is the first step of developing the ability to reason.

    2.    After this, when they want your input, make sure they come in with the three options already thought about. Then help them understand the consequences of each option. Add in other options if they haven’t considered all of the consequences. Then, you make the decision.

    3.    The third stage is that they come in with three options, understand the consequences and a recommendation for the course of action. Either agree with their course of action or make suggestions. Essentially they will be making the recommendation which you are approving.

    4.    The final stage is to cut them loose and have them handle a situation on their own. However, also have them provide a written report (IM or Text message is OK). The report needs to tell you what the situation was, the options they considered and the decision they made. This step won’t last that long as their need for independence will kick in and they’ll just stop coming to you with every little situation.

Keep in mind that these individuals are going to need much more coaching than their predecessors. The good news is they are used to being coached. After all, many of them have been on soccer teams since they were four or five years old.

Like all previous generations they’ll be coming into the work world thinking that they have all the answers and know how to do the job better than you do. Once we turn about 35, we begin to realize that we don’t have all the answers and things may not be as they seem. Developing mastery at work requires us to listen intently, understand the history of each situation and gather the different perspectives of each of the players involved. However, growing up protected and interacting with others largely through technology, has created a generation whose people savvy is very limited. Their ability to read a person in a face-to-face situation (and almost all selling is face-to-face) will tend to limit their success, especially when selling to people of a different generation. Help them understand the nuances of body language, the uniqueness of each person’s office and what the contents of that office reveals about the customer. (Shameless promotion: Our book, PeopleSavvy for Sales Professionals covers these points in detail.)

In your coaching efforts with Millennials, your focus and approach may need to be different from others you have worked with. You’ll need to provide structure and give information in bite-size pieces. Praise for what they do is important to their self-esteem. If they’ve messed up you’ll need to present it as a development opportunity. Course correction instead of scolding or brow-beating is a better approach.

Millennials generally have short attention spans, so keep your coaching sessions short. If you go beyond about 20 minutes you will lose them. Use technology freely before and after the session; they’ll come in to the session better prepared and will actually appreciate the follow up. If you’re not comfortable using IM, it’s time to learn. Their mobile phone is like a third arm and gives you more access to them than you’ve probably ever had with anyone.

Have frequent coaching sessions. Remember they’ve been sitting in front of video games knowing instantly what their score is and how they compare with others. Waiting to give them feedback at their annual performance review won’t work. In fact, without feedback, they will probably be long gone before that performance review happens.

Provide the rationale behind your coaching. This generation is hungry to learn and if they feel they’re learning from you, they will be loyal-to you. If they feel like their skills aren’t being developed, they’ll leave.

In some ways you’ll need to teach them patience. They’re used to instant gratification. On the plus side, their impatience for results can be a bonus in the sales world. On the negative, they can be easily frustrated when they don’t get immediate results.

Work/life balance is important to Millennials. One of the biggest challenges to Baby Boomer managers is that Millennials don’t want the same life style. Many Baby Boomers were brought up in sales to believe that if you were working from 6 AM to 6 PM, you were still only working half days. Millennials want “time and flexibility” often before financial compensation and benefits. No other generation has had “time and flexibility” in their top three drivers.

And finally, transparency or confidentiality is often mismatched between Millennial and manager. It is not unusual that a private discussion between a manager and employee becomes public. You’ll need to teach your Millennials why discretion is important, and it may be difficult for them to understand. If your entire life is on the Web for anyone to see-even pictures in a drunken stupor at a college party-they just won’t understand why someone wants to keep something private or would be embarrassed about it being public. Be patient and explain why it’s to their benefit. In other words, you may need to sell them on the idea.

Smart managers that focus on developing Millennial’s people savvy and who understand flexible work roles and effective virtual teams while leveraging technology will help them become a valuable asset sooner rather than later. Managers who meet the challenges of working with, not against, this generation will reap the rewards that come with shorter ramp times and more rapidly gaining some very valuable sales professionals

 

. Sales Psychology Expert Gregory Stebbins has helped over 20,000 sales professionals become the point of differentiation while their competitors struggle with how to differentiate their product and service. In his book PeopleSavvy for Sales Professionals, he unveils for the first time his simple but groundbreaking plan to win your customers’ trust and business forever. Visit his website at http://www.peoplesavvy.com

October 13, 2008

Attitude, Expectations, and Reality

Filed under: Economy, business, motivation, prospecting, sales, selling, success — Paul McCord @ 5:14 am
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“I have to work harder than before, but even so, my sales this month will be better than last October’s.”

“My prospects and clients are certainly feeling the pinch of the economy and they’re fearful.  But I also closed the biggest sale of my career last week.”

“Despite the news and the hype of the last two or three weeks, I’ve only seen a slight decrease in our sales.  Our salespeople have to be much more selective in qualifying prospects and they have to spend more time building value into the sale, but our customers are still buying, they’re still getting the financing they need, and their companies are still profitable.  It’s tough, but not nearly as bad as what you’d believe if you just listened to the news.”

“Seems like everybody wants to just sit and wait it out and see what happens.  Everyone is afraid.  No one knows what to do at this point, so our sales have fallen off the chart the past couple of weeks.  I really don’t want our GM to talk to the salespeople because there’s a sound of panic in his voice.”

“I’m finding it more difficult every day to make sales calls.  No one wants to make a decision and even some who would be willing to go forward aren’t sure they can get the funds to do so.”

“I’m working hard.  I’m willing to talk to people I would have passed over just a couple of months ago.  I’m spending a lot of time talking but I’m not getting anywhere.  I’ve even found myself reverting back to doing some pretty hard sell stuff trying to get something going.”

The above are comments about selling during the last two weeks from several of my clients from various parts of the country, each in a different industry.

Like many others, I’ve spoken to many salespeople and managers over the past couple of weeks who blame the economy on poor sales.  Their words indicate they are struggling, their voice indicates defeat. When we talk about strategies to overcome sales resistance and to find and connect with quality prospects, they complain that I’m not being realistic, that I just don’t understand their situation, that in their industry in today’s economy it isn’t rational to expect to maintain their sales volume or their pricing structure.

Yet I have other clients in the same industries as those who claim it unrealistic to expect to maintain their sales volumes, who are still selling at or near their previous levels-one who signed the biggest contract of her career just last week.

Which ‘reality’ is reality? Is it the reality of those whose voice communicates defeat and hopelessness–or is reality really reflected by those who although they say the market is tough are producing at or near their pre-crisis levels?

I believe that both realities are, in fact, reality.  More correctly, I believe that the ‘reality’ of defeat and hopeless is a self-fulfilling prophesy, whereas the ‘reality’ of “it’s tough but the sales are still there” reflects the actual marketplace.

Let me explain why I believe that.

When we begin discussing the specifics of their activity, those who foresee doom and gloom and whose sales have plummeted, have:

  • Spent less time prospecting than they did prior to the economic ‘crisis’
  • They are less selective in whom they speak with, hoping against hope to find someone interested
  • Their conversations are more hard sell than they had been previous to acquiring their current attitude of desperation and depression
  • They expect the prospect to refuse to make a decision at this time

Not surprisingly, they get exactly what they expect.  By making fewer contacts with less qualified prospects and then trying to strong arm a sale, they are seeing their sales fall drastically.  They are getting the exact results they not only expect but have set themselves up to get.

On the other hand, when I speak to those who are doing well in this market I find that they:

  • Have increased their prospecting activity
  • Are more selective in qualifying their prospects
  • Are spending more time working with prospects to understand their needs and issues to build more value into the sale than they had previously
  • Are taking additional time and care to build relationships prior to seeking to sign a contract
  • Understand that although the market is more difficult, there are still more quality prospects in the market than they can take care of-their job is to find them

Yes, these men and women are working longer and harder than they have in quite some time.  But they aren’t seeing the drastic decrease in business many others are.  And, yes, they expect to be successful.  But that expectation is balanced with a serious dose of reality that says they must work both harder and smarter-they must invest more time and effort and be much more selective in how and where they spend their time.

The current paralysis that a great many are seeing in the marketplace is only two or three weeks old.  It is very likely-a foregone conclusion-that the market will get tighter before it begins to get better.  But for a few, the current market driven by fear-for both prospects and clients-isn’t hindering their production.  Not because they’re lucky or because they have some magic formula, but because they haven’t allowed the ‘reality’ of the ‘crisis’ to stop them from selling.

They have to spend more time prospecting.  They have to work harder.  They are having to develop new skills and new strategies.  But they aren’t letting the perceived ‘reality’ of the negative and hopeless create their reality.

You need not accept the defeatist ‘reality’ either. You will have to invest more time and be more selective in finding and connecting with quality prospects-but they are out there.  You will have to invest more time in building solid relationships and building more value into each sale.  You may well have to invest in training and coaching to learn more effective prospecting and sales methods and strategies.  It isn’t easy and it takes commitment, innovation, and perseverance-but it works.  Just ask those who are finding the current market to be just as lucrative as the market was before the ‘crisis.’

October 11, 2008

Speak Your Way to Sales Success

Filed under: branding, business, career development, marketing, prospecting, sales, selling, small business — Paul McCord @ 5:10 am
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Salespeople and business owners often overlook one of the most effective and quick ways to both establish themselves as experts in their field and generate a pipeline of quality prospects.

Most salespeople and small business owners are all too familiar with cold-calling; purchasing leads; sending out mass direct mail and email pieces; and using print, radio and TV advertising and other common methods of lead generation.  However, becoming a niche expert and taking that expertise on the road in the form of speaking to groups and organizations is seldom considered.

The natural fear of public speaking is a deterrent for many, but most salespeople simply have not considered the possibility.  When we think of a speaker, most of us envision someone with grand ideas speaking to the most crucial events of the day-or maybe someone who has lead an extraordinary life, regaling the audience with tales of high adventure.  If we do think of business experts as speakers, we tend to think of names such as Jack Welch, Tom Hopkins, Zig Ziglar or some other high-profile guru who commands tens of thousands of dollars per appearance.

Those sorts of people may be the most visible, but they are, in fact, the tiny minority of speakers.  Literally tens of thousands of organizations in the US need speakers on a regular weekly or monthly basis.  A large percentage of these organizations are actively looking for businesspeople that have a message that will appeal to the majority of their members-and you could be that speaker.

You need not be expounding on the evils of the Democratic takeover of Congress, or the how badly the Republicans have governed, or the great coming economic downfall of civilization as we know it.  You do not have to be a stand-up comedian or a storyteller on the level of Garrison Keillor.

Speaking for local groups and originations only requires you to have information that is relevant and interesting.  A realtor client of mine became an expert in the minutiae of every neighborhood in her city and began speaking to groups about the transitions taking place in the city-which neighborhoods are on the verge of taking off, and which in decline.  Her presentation is laced with statistics but also stories and history, with fact and prediction. Within a matter of several months, she became the “go to” person when members of audiences she had spoken to began to think about buying or selling their home, because she is recognized as the expert on where to move, where to build and where to avoid.

Another client of mine, a business insurance broker, began speaking about the issues that businesses in his city face in terms of risk.  His presentation centers on crime, employee theft, and upcoming city ordinances that may affect business, and other, unexciting aspects of risk management.  Although he is a likable and entertaining man, his presentation is hardly worthy of an appearance on The Late Show with David Letterman.  Nevertheless, he has information that is of interest to other businesspeople.  Moreover, he, like the realtor, has become known as expert in his field.  Businesspeople come to him first because of their perception of his extraordinary knowledge of both business risk and how to manage it and the local issues facing businesses.

Neither of these people is exceptional in the sense that they have led extraordinary lives or have mythical business prowess.  In fact, the business agent has only been in the insurance business for a couple of years.  However, both recognized the power of getting in front of groups and presenting themselves as experts.  Their average audience is fewer than 40 people.  Their average talk is less than 20 minutes, and each speaks less than four times a month.  Nevertheless, if they speak three times per month to an average audience of 35 people, they are in front of about 1,200 per year as “the” expert in their field.  Moreover, many of these people are potential prospects.

How do you become the expert?  First, find something about your business that will be of interest to a broad range of potential customers.  Concentrate on areas that could give your audience information on potential risks or opportunities that could expand or enhance their life, open new doors, or increase or protect their wealth.  Once you have found an interesting niche, connect it to your local market.  The realtor deals only with local issues and demographics, but the insurance broker mixes general risk statistics with local business-related issues.  He takes mundane national statistics and brings them home, to a more personal level.

Do your homework on both your subject and your public-speaking skills.  Hone your presentation so that you are confident and do not have to speak with notes.  Work in front of a mirror until you have managed to eliminate all of your nervous movements.  Go over your presentation-both verbally in front of a mirror and in your mind as you drive-until it becomes second nature.  Check and recheck facts and figures. 

Join the Toastmasters.  Most of us probably think of the Toastmasters as simply an organization that will improve our public speaking skills.  It certainly will.  However, it will improve your leadership skills also, not to mention your interpersonal skills in general.  Most every community has at least one Toastmasters club within reasonable distance.  In addition, in a city of any reasonable size, you’ll probably have several options of meeting days and times as there will probably be several clubs from which to choose.

Then, once you have mastery over your subject and yourself, get the word out to groups, organizations and associations that cater to your prospects.  Send a self-promotion package and follow up with a phone call.  As you begin to set speaking engagements, more will follow.

Keep your material fresh and up-to-date.  Look and act like a professional.  Within months, you’ll have gained the reputation of an expert, the image of the guru, and the self-confidence to match.

There are few opportunities to influence potential prospects as powerfully as you can through speaking to them in a forum where you’re “endorsed” by an organization or association they belong to.  Becoming the objective educator and expert has far more power and lasting impact than any marketing or advertising you can possibly do.

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