sales management

Good sales people can close, but few “step up” for even more sales from that close. Yet stepping up should be one of the easiest accomplishments in sales – that is if you know how to build the staircase.

Do it by applying a leadership tool I have taught thousands of leaders worldwide during the past 20 years. The tool is simply to foster a particular viewpoint, which is this: Challenge people not simply to do a task but to take leadership of that task.

The difference in results-producing effectiveness between doing a task and taking leadership of a task is the difference between the lightning bug and lightning.

This change in viewpoint may seem simple even simplistic; but when put into action many times daily, it can work wonders.

For instance, I worked with a manufacturing leader whose workers were constantly falling short of productivity goals. I told him he was leading the workers in the wrong way; he was ordering them to get productivity advancements. I told him that he should have the workers sign on as leaders of productivity advancements. When the workers began seeing themselves as such leaders, they started hitting the goals consistently.

Now, let’s apply this leadership tool to the sales process. I’ll show you how to get step-ups in results that go far beyond the results achieved from closes. Here are three ways to do it.

(1) Don’t Just Sell Products, Get Cause Leaders: Salespeople often fail to get step-ups because they have a short-sighted view of the customer. They view the customer as only a customer! Whereas, if we want to get step-ups, we must see the customer not just as a customer but as a “cause leader,” one who can lead our cause both inside and outside their company. Instead of aiming just to sell a product, to get a close, aim to turn your customer into your cause leader.

For instance, I consulted with a materials supplier that wanted to acquire new customers in the computer industry. The salespeople of the materials company not only worked diligently on closing with the engineer-customers but also on creating step-ups by persuading those engineers to be the cause leaders for their materials within the company.

Here is the way that they enlisted that leadership. They discovered that the engineers needed increased productivity and faster cycle-times — and to do it with fewer resources.

In response, the sales people developed a materials performance package for the engineers that increased their productivity and cycle-times. In addition, they brought in productivity experts from their own company to help the engineers streamline their design processes. They’re not only selling their materials. They’re selling productivity as well. Seeing that the sales people were helping them meet their vital needs, the engineers became the sales people’s cause leaders within their company – unleashing a torrent of step-ups.

(2) Start Early: George Burns said, “I had to work hard for 20 years in vaudeville before I became an overnight success in radio.” That’s a lesson in stepping up. Stepping up sales results with my leadership tool doesn’t just happen overnight. You must prepare to get those step-ups starting in the early stages of the sales process: when prospecting for new clients, identifying decision makers, and making initial calls.

In this early stage, ask yourself: “What is the close in this sale? And how can that close lead to the customer not simply buying my product but also becoming the product’s cause leader, both inside and outside his/her organization?”

For instance, the sales people of the materials company I mentioned aimed to replace their competitors’ materials with their materials in computer housing applications. With that focus, they would have gotten closes – but not step-ups. The differences between their competitors materials and their materials were negligible in cost and performance.

The sales people continued to develop the traditional channels to their customers’ purchasing departments. But they also began building step-ups early by including design engineers in their first-stage sales activities. They focused on being their customers’ “design partners” – not simply showing them where they could save costs and achieve performance advantages but also showing them how they could get market share through the innovative uses of those materials.

Getting in early as their customers’ design partners, they not only got closes but step-ups from those closes by integrating their materials into new generations of housings.

(3) Link to “Must-Have” Results: Step-ups happen only when you answer the vital needs of your customers – not the nice-to-have needs. Discover those needs by asking and answering: “What are your customers absolute must-have results?”

Those “must-haves” are your great step-up opportunities, because when you are delivering on the must-haves, your customers are more likely to become your cause leaders.

In the above example, the sales people were able to get step-ups because they focused on their customer’s “must-haves”, productivity and cycle-time.

Here’s another example dealing with another busines sector: I consulted with an insurance company whose growth had flattened out. We found out a key reason why. Their products were not meeting the must-have results of their customers. The must-have results of their customers were that they absolutely had to grow their businesses. Yet the company’s products did not materially address the growth needs of their customers.

Only when the sales people convinced their own company to develop and sell products that met the growth needs of their customers were they able to turn those customers into cause leaders. Once those new products were offered to the customers, they far outsold the old products.

Don’t sell yourself short by focusing exclusively on the close. Liberate the step-up opportunities that are embedded in most closes by using this powerful leadership tool of challenging people to lead not simply do. By getting customer cause leaders, starting early, and linking to must-have results, you can multiply sales far beyond what closes achieve.

The best way to get a new customer is to clearly identify who you want to do business with and then get in front of them. They can then see what you look like, possibly see what your product looks like and also examine any data or statistics you might have. It gives you the ideal opportunity to start building a positive working relationship with your potential customer.

Advertising, direct mail, web sites and telesales all have their place but nothing beats the face to face interview. The first challenge is, of course, getting to speak to your prospect and arrange a meeting.

When you phone your prospect’s organisation it’s highly possible you won’t get through initially even if you have their direct number. There’s always an assistant, a colleague or voice mail to deal with.

# 1 Deal with the other person

1. Always be pleasant and polite. Use the person’s name as soon as you know it but not over familiar.

2. Use your prospects name and your name; say – “Will you please tell John Smith that Alan Fairweather is on the phone for him.”

3. If you’re asked what it’s about, say – “It’s about the contents of a letter Mr Smith has received. (More later) Will you tell him that Alan Fairweather is on the phone for him please!”

4. If you’re told that your prospect is in a meeting, find out what time they’ll be out of the meeting and ask if it that would be a good time to call.

5. Thank the person for their help and say – “I’ll call back at 3.30 and look forward to speaking to John then. Thanks for your help Mary.”

None of this is easy but persevere and don’t be nuisance. Always be friendly, firm and courteous with Mary.

It sometimes helps to send a brief letter to your prospect explaining that you’ll call to arrange a short meeting. (Don’t use the word appointment). Briefly state your product or service benefit or even a couple of questions at the start of the letter.

But don’t make it a sales letter and don’t enclose literature. (Your prospect gets enough of the stuff).

# 2 Deal with voice mail:

1. Give your name, business name and phone number. Speak slow and clear, warm, friendly and businesslike.

2. Say what you do – “Were the people who minimise production time and cost on….. I’d appreciate the courtesy of a return call on ……..”

3. You might want to make an appointment to call – “I appreciate you’re very busy Mr Smith, however I have some interesting information for you. I’ll call back at 3pm and would be pleased if you’d speak to me.”

4. Follow up with a fax or email and make it human.

5. Leave your phone number again, slow and clear.

Again this is a challenge, however if you sound warm and friendly and that you could be worth talking to, then you’ll get call backs. Always keep customer details handy because when prospects call back they say – “Hi Alan, its Fred I’m returning your call.” If you made twenty calls that day you may not initially know who Fred is, so be prepared.

# 3 Sell the meeting

Once you speak to your prospect on the ‘phone you need to do a good selling job to get the meeting. Most of the time they’re going to say something like – “I’m not really interested, we already have a supplier, I’m a bit busy at present.”

Always keep in mind that the majority of prospects are reasonable human beings and they have nothing against you personally. There’s also a strong possibility that they’ll welcome a visit from you if you sound warm, friendly and businesslike.

If you sound like you have some worthwhile information to impart and you don’t sound pushy or manipulative then you’re more likely to get that meeting.

Plan your call carefully and consider the following.

1. Greeting – Speak slowly and clearly using the prospects name, your name, and your business name

2. Courtesy – Ask if it’s convenient to speak

3. Introduction – Say what you do and provide a benefit to the prospect

4. Close – Ask for a short meeting at mutually convenient time

5. Deal with resistance – Acknowledge what the prospect says, outweigh with a benefit and close again

6. Don’t use the word “appointment”

7. Don’t start selling your product/service on the ‘phone only sell the meeting

8. Don’t say you’ll send literature, say you’ll bring it with you

9. Don’t be pushy, be persistent and pleasant

10. Have a fall-back position. If they won’t see you this time then ask if it would be OK to ‘phone at an agreed time in the future – and make sure you do so.

You won’t win them all however if you sound professional and pleasant, potential customers are more likely to see you, so don’t give up.

Twiddling your thumbs and waiting for some business to come in? Why not use this downtime to set yourself up for greater success in the new year? Here are my 10 picks, but you don’t have to do them all. Even doing just one will get you another rung higher on your business ladder.

1. Evaluate your virtual team and make changes if necessary.

Are administrative tasks taking up most of your time and keeping you from working ON your business? Then hire a virtual assistant. (See my article on this topic at www.EzineQueen.com/everything.htm.) Are you paying too much in taxes? Meet with your accountant to talk about getting more aggressive with write-offs, or make appointments to interview new accountants. Same goes for your lawyer — do you love him/her? If not, take this time to ask around for referrals.

2. Learn how to get more business via your Web site.

Would you like to be getting business leads and sales 24-7? Then look at how your Web site could be working better for you. For help in writing copy that sells, sign up for Red Hot Copywriter Lorrie Morgan-Ferrero’s e-zine at www.Red-Hot-Copy.com. To get more targeted Web visitors, sign up for Marc Harty’s free e-course at www.StrategicTraffic.com. It gave me tons of new ideas!

3. Revamp your e-zine or launch an e-zine.

Remember that having a ready list of warm prospects is your goldmine, and having an e-zine positions you for more sales on a regular basis and for the LONG-TERM. The beginning of the new year is the perfect time to release your first issue! If you’re not publishing yet, get ready with all the great free resources at www.EzineQueen.com.

4. Clean out that e-mail inbox once and for all!

Unanswered e-mails, people to follow up with, information not recorded or filed in the proper places — need I say more? Delete e-mails that are more than a few months old. Set up e-mail folders to help you stay more organized in the future. And if your program allows, set “rules” to automatically sort incoming e-mails into those folders.

5. Clean out your filing cabinet, bookshelf, desk, etc.

Is your office a fire hazard? Do you have to rustle through giant stacks of paper like a large rodent to find anything? Will your spouse not even enter the premises? Put on some good music, start digging, and make piles. Make sure to have plenty of trash bags and cardboard file boxes on hand. (And a good glass of wine always makes it more fun.)

6. Upgrade or clean up your computer.

Your computer probably holds most of the information that’s crucial to your business, so take care of it! Now’s a great time to do an overhaul. Upgrade your operating system (do you STILL have Windows 95?), get rid of unnecessary files, archive old files to CDs, add more disk space for all those downloads, and do system maintenance. Not sure how to go about this? Find a geek-for-hire to come and help you out.

7. Let your clients know how much you are thankful for their business.

Whether it’s holiday cards or thank-you notes, this is a good practice for both your business and you. Letting the universe know you’re grateful for what you have will only bring you better things in the future.

8. Plan an upcoming teleseminar.

For a quick cash-flow boost, plan a paid teleseminar! These phone-based events are easy to do and can be great income generators. Either host it yourself on a topic you’re qualified to talk about, or invite a special guest to interview. To encourage holiday signups, offer special pricing for those who register before the new year. (Learn how to host a successful teleseminar at www.EzineQueen.com/teleseminar.htm)

9. Write down your 25 best accomplishments for this past year.

This simple exercise is extremely powerful. Time goes by so quickly that we forget to celebrate the good things that happen. First I light a candle and write down my 25 accomplishments. Then, taking each one in, I read them aloud. After the last one, I blow the candle out, and then IMMEDIATELY make a list of 10 goals for the new year. (After truly acknowledging all the amazing things you did this year, you’ll feel incredibly powerful and set even higher goals!)

10. Actually enjoy the holidays!

Yes! I realized that for the past few years I’ve been running around like a nut every December and suddenly the next year is here. Christmas and New Year’s blaze by like a freight train, and I’m back to the grind shortly thereafter. Where’s the joy, peace, and love?

Remind yourself what the holidays are for — to take a step back and appreciate what you have, to enjoy your family and friends, to give to others, and to be good to yourself. So take that walk in the snow, go to that tree lighting with your kids, get that massage, and plan a leisurely shopping day during the week.

Remember, we only have so many Christmases in a lifetime.

In the past, if you said the word “plan” to me, I would bolt and run. I’m the “creative type,” a former ballet dancer and choreographer-I’m terrible with details. When I was dancing professionally, all the details were taken care of; all I had to do was show up and dance. Even when I was choreographing, as long as I met my deadline for when the dance needed to be complete, I could go with the moment, go with the impulse and see where the dance led.

A hearty dose of reality hit when I began to run a dance company. All of a sudden, I had people-employees, volunteers and dancers-waiting. I had to know where we were going and how we were going to get there. It was a different world. Every decision had impact down the line. If we were going to have a spring season, I needed to know what we would be performing and where we’d be performing it. How many dancers would I need? What about costumes? Were we going to commission music? What would it cost? How would we pay for it all?

It took a long time for me to grasp the impact of having a plan. Because I was running a small, grass roots organization, there never seemed to be enough time, people, money or resources. I was always putting out fires. Every plan I developed changed the moment I keyed in the last sentence and printed it out. Plan-who has time to plan? Especially when the plan keeps changing!

Over time, I began to see the planning process as a road map. You know your ultimate goal. You figure out the best way to get there. Your plan needs to include contingencies and have enough space that you can deal with fires and still move forward. And sometimes, the plan changes; it might need some adjustment or “tweaking.” As long as the goal remains the same and as long as you keep taking steps forward to achieve that goal, your plan will help you get there.

In sales, your goal is revenue-driven. How much money do you want to make? Or a better question: How much profit do you want to make? Then, how are you going to achieve that?

Your basic plan should start with a dollar amount and work backwards. If, for example, you want to gross $500,000 in sales this year, on average, how many sales would that be? What is your average sale? On average, how many prospects do you have to see or speak with to close one sale? So, how many prospects would you need to see or speak with to close the number of sales you would need to reach your goal of $500,000? What steps do you need to take to see or speak with that many prospects?

Wow! What a mouthful! Here is a mathematical formula:

First:
Value of average sale =______________
How many prospects to close one sales: _______________

Then:
Gross sales ¸ average sale = total number of sales needed

Number of prospects to close one sale x total number of sales needed = total number of prospects

(This formula is from a dancer who counts up to 8 and starts over again! If I can do it-you can do it!)

I don’t even like saying the word d———g. I have literally obliterated it from my dictionary with a black marking pen. I’ll bite my tongue until it bleeds, before I say the word.

Earlier this week Bernadette, my wife, and I went shopping . . . something I love to do. Just kidding! We were looking for a 3-piece plant stand for our deck. We found one in a catalog and went to the store to check it out.

Bernadette always asks the sales person if he can do better on his price. You’d be surprised how much you can save just by asking.

Sidebar! The word ASK is the most powerful word in a sales person’s vocabulary.

Back to what happened. We debated over two different pieces and made a decision. The piece we didn’t select had a 30% discount tag on it.

According to the sales person the 3-piece set we decided on was not on sale. Our sad faces didn’t seem to move him. He said he could get into trouble for giving us a discount.

Another sidebar. The GNP of the United States would increase by a staggering amount (Probably hundreds of billions) if all salespeople got into trouble with their organizations for giving discounts.

Back to the store. The salesman said the display unit was the only one available. Bernadette asked for a discount if we took the floor display.

He caved in and finally said I’ll give you a 10% discount.

Here’s the math: The list price was $178. 10% equals $17.80.

He could have said, after doing the math, I’ll take $15 off because it’s a display unit. The $15 is 8.4%. We would have been thrilled. And you can bet the ranch, we would not have reached for a calculator to see what the percentage discount was.

In my opinion dollars off always sounds more impressive than a percent discount.

Because it was a display item the salesperson had to remove some things before he could bring the 3-pieces to the cash register. Bernadette inspected each piece. They were painted black and one had a sizable and noticeable scratch on it.

Bernadette once again asked if he do any better on the price because of the damage on the 3-piece plant stand.

It’s time for more math. Remember he first offered us a 10% discount.

If he increased the 10% discount to 12% the increase is 20%.

If he increased the 10% discount to 14% the increase is 40%.

If he increased the 10% discount to 16% the increase is 60%.

If he increased the 10% discount to 18% the increase is 80%.

If he increased the 10% discount to 20% the increase is 100%.

Without any hesitation he said I’ll give you 20% off.

He doubled his original discount. It doesn’t sound like much but in reality it is. The plant stand list price was $178. For other products, perhaps even yours, it could have been $1,788, $17,888, $178,888, or even $1,788,888.

Don’t be too quick to give discounts, especially big ones. Use your head and do the math before you offer additional price concessions.

Forget about defending your price and do your best to explain your value.

Here are a few more things to keep in mind:

If you offer genuine value – don’t give it away, charge for it.

If you absolutely must offer a price incentive, never start with round numbers. Make sure there’s a decimal point included.

For example, any professional sales representative offering 5%, 10%, 15%, 20% off etc. should have to listen to seven straight hours of Lawrence Welk Music. If you must offer a concession try 3.9%, 8.9%, 13.6%, 19.3% etc. Once you calculated the discount % convert it to dollars because it always sounds like more.

Never offer a price concession without getting something in return – NEVER.

Finally, a small disclaimer. Please don’t think I’m violating my pricing strategy when you see me offer special incentives for my products. My speaking and consulting fees are at list price and I seldom offer any discounts.

I have negotiated very good pricing for all my products. And I’m happy to offer you a price break from time to time if it helps you to invest in your self-development. See the end of this letter.

This month I want to share a success from a friend and customer of mine. You’ll find in this story two important sales tactics for beating your competition.

From Chris Chalmers of Quova Inc:

“We sell a commodity product (geographic data) that is available from a variety of competitors and public sources. Recently, we lost a major account to a competitor, and based on our long-standing relationship with them, they consented to debrief us on what went wrong. Obviously we had an account management issue, and there had been a service problem or two. But the clincher was our competitor was perceived as “more helpful” and “more expert” because they were offering all sorts of unsolicited suggestions about how to use the product.

“That was a real surprise – Shouldn’t the customer already know what they were going to do with the product? Otherwise they wouldn’t have bought it, right? How much advice can you give when your product is a simple commodity?

“So we tried our competitor’s approach in our next sales cycle. When the customer was talking about their perceived needs and uses of the product, we used to sit mildly and take notes. This time, we launched into a barrage of questions about the intended use our product, interspersed with short stories about how other customers were using it.

“What about this application? Have you ever considered this alternative? Here’s how someone else in your situation is using it..” and so on. Instead of going into detail about the functionality of our application, which was simple and undifferentiated, we went into detail about the usage of our product, which was highly differentiated.

“Much to my surprise, it worked! Now WE were perceived as ‘experts’ and ‘adding value’ to the product – even though it was still a commodity that our competitor was selling for a lower price. Our coach really wanted to do business with us, and we were able to defend a higher price point and get our deal closed.”

Thanks for sharing your story with my readers and me Chris. You and your sales team were smart to adopt your competition’s tactics to beat them at their own game.

Sales Tactic – Asking questions

Aggressively asking questions is one of the most effective sales techniques you can use. Asking question uncovers the prospect’s pains, wants and desires.

In Chris’s words: “we launched into a barrage of questions about the intended use our product”

…instead of sitting mildly and taking notes while the prospect spoke about their needs.

Most salespeople don’t go far enough with their questioning. Its not just about open versus closed questions. You need to take it further. Find out how they want to use your product in detail. Find out what excites them. Find out what they are afraid of. Find out the one or two important things that are driving them to make a purchase.

Asking questions offers the potential to increase rapport and build stronger bonds faster with your prospects. When you ask a person what is important to them, they feel more known and understood by you as they answer. This increases their receptivity giving you more opportunities to communicate in a way most effective for your prospect.

Sales Tactic – Telling Stories

Story telling offers the power to transform your product from a nebulous idea into real vision for your prospects. Features certainly have little selling power. Benefits give you a bit more selling power than features do. It is story telling though that packs the big punch because it wraps the what, why, and how of your product all together into an entertaining package that holds their attention.

Stories don’t have to be long. Very effective sales stories need only be a sentence or two. In Chris’s case, the stories were short: “interspersed with short stories about how other customers were using it”

…because his sales team wanted to stay on their agenda of asking questions and finding all about the prospect’s proposed use of their product. This was a very smart move because when you tell longer stories, you risk losing control of the sales call if you let the prospect ask you a lot of questions.

Stories position you and your company as capable experts. You imbue yourself with the success of your customers. Your prospect sees what is possible and believes that you can help them get what they want because you are discussing a customer who is getting their desired results.

Learn from Chris Chalmers’ example. Incorporate more stories into your selling and improve your questioning techniques to find out what your prospects want, why they want it, and what they will do with it. Work on these skills and closing gets so easy its almost a nonevent.

This week’s article is my response to a question by David Cohen of Bridge-Soft.

“Quite a few prospects have told me that business is stagnant at the moment, but they are hopeful towards the 4th quarter. How do you approach the sales cycle where the cost of the product is relatively high and the sales cycle is lengthy, sometimes six months or more, in good times. I have little trouble generating interest in our products during my cold calls, but the relationship of a slow economy, long sales cycle, in combination with the cost of the software puts a few road blocks up. Any ideas on how to either avoid or breakdown these road blocks?”

-David Cohen, Sales Director, Bridge-Soft

Thanks for writing in David. Essentially what you want to know is how to speed up the sales cycle. Let’s start the discussion from the standpoint of why people and businesses buy when they do.

Everyone buys to solve a pain or fulfill a desire. This is true for individuals and businesses alike (businesses are nothing but a group of individual decision-makers). Buying decisions are always prioritized, whether people are aware that they do this or not. Businesses making buying decisions usually have formal procedures for prioritizing their acquisitions. Individuals also prioritize their buying decisions, but this generally is a much more casual and often unconscious process.

To speed up your sale, you must move the pain that you are offering to solve near the top of the prospect’s priority list.

Here are three ways that you can do this.

#1 – Choose Your Prospects Ruthlessly

To put it simply, the fastest sales happen when the prospects know they are in pain. For a given problem, the businesses (or people) who have this in common will likely share other characteristics. Look at who has been spending money during this slowdown with either you or your competitors, and ask yourself what they have in common. You want to have a profile of what these customers look like when you are prospecting. This will enable you to quickly decide whether to engage in a sales effort. Prospects who don’t meet your profile should be thrown out.

#2 – Get To The Executives First

Not getting to the decision-makers early in the sell cycle is a common reason for lengthy sales cycles. To get there, you have to know how to talk to them. Exec’s want to know how you are going to increase revenues or efficiency, and save money or time. Their biggest fear of salespeople is that you will waste their time with techno-babble.

You can create a direct mail and telephone campaign to make contact with your target executives. This is a topic that demands way more space than I have here to write. But the strategy is to get their attention with specific stories and questions that dramatize the pain using examples that they can identify with.

You can also have your current executive customer contacts refer you to other executives that they know within your target prospect accounts. Or You can use your management as a “power meets power” way of getting access. And you can also form partnerships with complementary vendors who might have access into your accounts.

In the case of a small software company, it could make sense to partner with a larger company who already has the executive relationships. Companies like IBM, HP, or Accenture have salespeople for every account you can imagine. When you show them how they can sell more of their products and services, they will want to work with you to get into the account.

#3 – Intensify Their Pain

When your sale is low on their priority list, it is because the executives believe they have bigger problems to focus on. You can influence their perception and priorities by getting them to experience the consequences of the unaddressed problem in advance of it happening. You want to make this problem feel real in the present moment.

There are two very effective techniques for doing this. One is to tell stories. You mentioned that you had a number of customers both large and small. Interview your customers and find out precisely why they bought your software. Determine the specific pains, and the specific results they got from installing it. Create detailed stories about your customers such that your prospect will identify with the pains that your customer’s had. Discuss how bad things would have gotten if they hadn’t solved the problem with your software.

Stories are an effective indirect way to get a prospect to open up about a potential problem. The most powerful motivation for a sale is the prospect’s own fears and desires. You can uncover this and use it to propel your sale forward with planned persuasive questioning. People make decisions to buy, or move your sale up on their priority list when they are in an emotional state. Questions that get them to experience the consequences of problems that they are not dealing with can bring the pain strongly into the present moment.

Focus On The Right Things

You cannot control the slow economy.

Here are some things you can control.

• Who you sell for and what you sell.
• Which prospects you choose to engage.
• The level at which you first engage your prospects:
  • executive, middle management, or staff.
• What you do, say, and ask when you engage people

As you are reading this sales article, read very carefully. Because I wouldn’t want you to think of a pig right now. No, do not think of a fat, brown, smelly pig right this moment. What are you doing? Do you have a picture of a smelly, fat, brown pig in your head right now? I thought I just told you not to do that. What are you doing then?

The mind can only process positive statements directly. In order to process a negative statement, one must first create a positive representation of the negative statement in the mind. To *not* think of a pig, you first had to see a fat, brown, smelly pig. Only then could you attempt to tell yourself not to think about it. Gee, by now though you’ve already thought of the pig, so what good is it to tell you not to?

So how does this relate to sales and persuasion? Let’s think for a moment. Have you ever said something to a prospect like this: “Don’t worry about the strength of our widgets. I assure you we have the strongest widgets in the industry”? You just told the prospect that there is reason to be concerned about the strength of your widgets! This statement either planted the suggestion that there is reason to be concerned about the strength of your widgets, or it reinforced the belief that your widgets are weak. The prospect may have never even heard of the possibility that Zebox widgets are weak. Sometimes we get so wrapped up in our own perceptions, that we forget what its like to be an outsider new to our company, products and services. Language patterns like the above severely weaken you by needlessly drawing attention to your weaknesses.

Words to remember: “Say it the way you want it”.

Are there times when negatives are useful? Sure. Let’s say you want to draw your prospect’s attention to the lengthy implementation effort of your competitor’s product. You could say “Zebox Technologies Widgets take forever to get installed. Ours install much faster.” This might work if you have a lot of rapport with the prospect. But if you are presenting to a group, or talking with someone you don’t know well yet, you could annoy the prospect and lose credibility through this direct attack.

Here’s a more effective indirect language pattern: “So you’re also considering S Widgets? We’ll don’t worry about whether you can complete your project on time in 3 months. All of our widgets install in 30 days or less. Just ask our customers.” Through the use of a negative, I have just raised concern about my competitor’s installation time, whilst highlighting how my company meets their rapid installation time criterion. And I have avoided using a direct assault, helping to maintain rapport and respect with my prospect.

I just finished a phone call with a potential client who had called to discuss a problem. His 18 person sales force was paid on straight commission. All had been with the company for 8 – 15 years and were earning healthy incomes. His problem was that he couldn’t get them to do what he wanted them to do. Here’s the example he shared.

He wanted the salespeople to call on new prospects to expand the company’s base. Instead of just seeing established customers, he asked them to call on prospects, and report back to him on the progress they were making.

There were almost no results. Instead he got comments like: “I’m not going to do this, I’m not a new salesperson.” Or, “That’s just more paperwork.” This list could go on and on. The salespeople resented being asked to do something they saw as outside of their responsibilities, and the manager was extremely frustrated.

This is a classic example of the chronic malady I call a lack of “directability.”

The problem is that management has not cleared up this murky difference of opinion.

It may be, of course, that the salespeople choose to ignore management’s direction. That’s a different but associated problem. It really doesn’t come into play until the expectations are made clear.

For example, one of my clients moved his company to a CRM system. He gave the salespeople six months to learn to type, offered to pay for a typing class for them, and mandated that on a date approximately six months from now, the company would totally implement the CRM system. That meant that every sales person would be expected to use it to record sales calls, customer information, and etc.

The expectations were perfectly clear. At the end of the six months, three of the salespeople had not improved their typing skills. When asked about the use of the system, they responded, “We’re sales people, not clerks. We’re paid to sell, not enter information.”

In this case, the expectations were clear, but the sales people held onto an outmoded definition for their jobs. The company’s course of action was clear and those three salespeople were replaced.

While there are a number of things that should be done to cure this patient, they begin with an often-overlooked initiative – creating a clear set of expectations for the job of the sales person.

This malaise of undirectability has, at its heart, a difference of opinion as to what the salesperson should do. The sales people believe that taking care of their current customers and being rewarded by a portion of the gross profit is the total extent of their responsibilities. Management believes otherwise.

The difference in these basic expectations generates conflict, resentment and frustration almost daily. This negative condition leads, of course, to dismal productivity. The sales manager continually squanders his time in the dubious effort of trying to shape the behavior of the salespeople. The salespeople focus on doing exactly the opposite of what management asks so that they can build their case and prove their point.

There is another, longer range and more sinister effect. The company caught in this kind of malaise has virtually no ability to implement any strategic initiative. For example, let’s say that the company has decided to take on a new product line. Management sees the new line as holding excellent future potential to grow into a category that is a minor piece of business at the moment. As management looks ahead, they see this category growing, and want to use this line to position the company in this promising segment.

So, management makes a commitment to the new line, buys the beginning inventory, loads the SKUs into the computer, works out the pricing columns, posts the products on its website, and educates the customer service department. One last, but essential piece remains – harness the power of the sales force to generate business.

Management calls the sales force together, brings in the manufacturer’s rep, and introduces the new strategic initiative. At the end of the day, the sales manager announces that, because of the importance of this line to the company’s future, every salesperson should introduce it in every one of his good accounts in the next 30 days.

The sales force nods gravely, and then goes out and does whatever they have been doing for the last few years. At the end of the 30 days, virtually nothing has been done.

Sound familiar? I have sketched this scenario to thousands of principals and CSOs at annual meetings and national conventions. I then ask the question, “If you were in this situation, what would be the likelihood that every one of your salespeople would do what you asked them to do?” The response is dismal.

How about you? Take a moment and reflect on the state of “directability” of your sales force.

Now, consider the implications. If you cannot implement a strategic initiative like this, what is the future for your business? Do you have a future?

You can see why I am so adamant on the importance of a “directable” sales force. It is one of the most valuable assets you can have. Almost to the point that your company’s future may well depend on it.

There are a number of causes of this situation: 100% commission compensation plans, salespeople who have been around a long time, highly paid sales people, a corporate culture that promotes the idea that a sales person “has his own business.” All these contribute to the situation.

The cure is to address each of these, making changes that I have discussed elsewhere in the book. But, before you can do that, you need to attend to the first step: Creating and communicating a precise set of expectations to the sales force that describes their jobs and what you expect them to do.

Once you have done that, you will have laid the groundwork for the changes that should follow.

The point is this. It is difficult to create change in the behavior of a salesperson in the absence of a clear set of expectations. That document is not a guarantee that the salespeople will change, but it is necessary to direct the process. It’s necessary, but not sufficient. It’s the first step.

How to…

First, let’s start from the end. What are you going to end up with? There is room for lots of variation on the format and formula. I like to see this: One side of one piece of paper, on which you spell out the following things:

An overview of the job. The most important seven activities for success in the job. The definition of how success is measured. To whom salespeople report to. What sort of attitudes you expect. The question then becomes, how do you get to that point? Again, there are multiple paths. You may want to draft it yourself, or do in conjunction with a group of key executives. You may want to appoint a task force.

Should you involve the sales force? I’m ambivalent. On one side, I’m a little hesitant to advocate that you ask the sales force or that you add a salesperson to the task force. Unless the person you involve is especially mature, the likelihood is that the sales people will input in ways that are in their own personal self-interest, not necessarily the good of the company. This is especially true if they are 100% commissioned.

On the other hand, I’ve seen clients who have involved a mature salesperson with good results.

So, the answer depends on the specifics of your personnel, as well as the corporate climate in your organization.

Regardless, at some point, you will have a document.

Now you need to communicate that. And that calls for a sales meeting with all the key players in attendance. It’s important that the CEO be involved, to lend credibility and authority to the proceedings. The sales people must understand that there is no opportunity for an appeal to a higher source, that there is no negotiation on your expectations.

It is always a good idea to give the “Why’s” of the expectations, particularly if the expectations represent a major shift from current practice.

It’s also a good idea to encourage dialogue and discussion. Use the meeting as an opportunity to encourage people to mentally process the information. There is a line, however, between discussion and negotiation. I take a hard-line view on this issue. I really don’t think it is up to the sales people to tell you what they should do. I think that is management’s job.

You don’t allow your CSR to explain that they don’t think they ought to answer phones. Nor is it acceptable for your warehouse foreman to refuse to take inventory.

There is plenty of room for sales people to define the “hows” of their job. But the “What’s “are the province of management.

What’s next?

The written set of expectations, clearly communicated, won’t by itself, make transformational changes in many sales people. A few may have an “ah-ha” insight, but it will take more than just this to power the change you want. However, the expectations are necessary to set up the changes to come.

It’s like outfitting a sailboat. You need to put the mast in place. A mast by itself, without a sail, a rudder and a keel, will do absolutely nothing to move the sailboat. But, you can’t hoist the sail until you fix the mast.

So it is with a written, communicated set of expectations. It is a necessary, but not sufficient, step in the process of transforming your sales forc

These 4 marketing myths can cause you to lose sales if you base your marketing decisions on them. But the related marketing tips I included with each myth will boost your sales if you act on them instead.

Myth 1:
People Always Buy Where They Get the Cheapest Price

If this was true, only businesses that charge cheap prices would exist. Some people buy where they get the cheapest price. But most people are more interested in getting value for their money than in getting a bargain.

Tip: Look for some low-cost ways you can enhance the perceived value of your product or service. Then test raising your price. Don’t be surprised if both your sales and your profit margin go up.

Myth 2: v Offering Your Customers Many Options Will Boost Your Sales

Presenting your customers with options usually reduces your sales. Here’s why…

When confronted with several options, most customers have difficulty making a clear decision. They often react by procrastinating – and never making a decision. When this happens, you lose a sale you already had.

Tip: Try to limit your customer’s decision making to either “Yes. I’ll buy.” or “No. I won’t buy”. Don’t risk losing them by including “which one” decisions.

Myth 3:
Everybody Needs My Product/Service

That’s what YOU think. Most of them don’t think they need it …and most aren’t ready to spend their money for it.

The hazard of this myth is that it causes many marketers to believe they can succeed without doing much marketing or selling. They think their product or service is so special that it should automatically generate hordes of paying customers. Unfortunately, it doesn’t happen that way.

Building a successful business is hard work – most of it devoted to finding customers. Even if most people can use your product or service, you still need a marketing strategy to reach them and a persuasive sales message to close sales.

Tip: Look for narrowly defined niche markets where your product or service solves a unique need of the customers. Focus your marketing on them instead of trying to reach a broadly defined general market. You’ll generate more sales and enjoy a better return on your advertising expense.

Myth 4:
Keep Changing Your Advertising or Your Sales Will Decline

This sounds logical but it’s not true. Never abandon advertising that’s working. I know many businesses that have been using the same advertising for years and they’re still growing. Here’s why…

The goal of most advertising is to attract new customers. Once someone becomes a customer, they won’t respond to that advertising again. But you can use different (and cheaper) advertising to generate additional sales from them.

But there’s still a large population of non-customers who didn’t respond to your regular advertising. Most have not seen it yet …and those who have usually need to see it numerous times before they will respond.

Don’t abandon advertising that’s working – but keep trying to improve it. And regularly test new things to see how they work for you. If you never make any changes in your advertising, your sales will eventually decline.

Tip: You can automatically keep your advertising up to date by allocating 80 percent of your budget to proven promotions and 20 percent to testing new things. When something new works better than your proven promotions, move it to the 80 percent group and start testing something else in the 20 percent category.

Don’t believe these 4 marketing myths. They’re not true. Marketing based on them will cause you to lose sales. Instead, apply the related marketing tips I included after each myth to boost your sales.