Author Archives: richAdmin

Selling is Not a Rodeo

Did you ever notice how, for years, sales training has been closely matched to a rodeo event? Sales reps are taught to chase after and rope prospects like mindless steer before they get away. We call that cold calling. When the rope is secure around their neck, we move into a trained sales pitch. If they fight to get loose, we break out another rope and tie their feet. We call that handling objections. The process of both roping steer and selling assumes that your target doesn’t want to interact with you and getting trained in clever verbal ropes will bring them to their knees.

Prospects are not mindless steer. Thanks to the Internet, they are more knowledgeable than ever and are more guarded from anyone who is a self-serving roper. Knowledgeable prospects are 60 to 75 percent through the order cycle before they even interact with a sales person.

So why to we continue this annoying random cold calling, roping selling technique to close business? Prospects today don’t want to be roped or sold; however they do want to buy. Selling in the Now takes into account today’s buyers, how they want to buy and from whom.

Using social media as a cold calling replacement is a Selling in the Now technique that is more aligned with the world today. Another is focusing on prospects that are already predisposed to buy from you. This results in a more valuable customer and doesn’t waste selling time on trying to close someone who will never buy from you. So leave your rodeo sales training home and tune in to your prospects and how they buy today.

Author: Rich Lucia
www.RichLucia.com

When Hiring for Sales, Replace Your Open Door With a Screen

I live in a wooded area and I take great care in making sure my garage door is kept closed. It’s not that I don’t want neighbors, friends and family to visit, just the opposite. What I don’t want field mice, raccoons or numerous squirrels wandering in to set up home. When that happens I have to stop what I’m doing and take the time to remove them, hoping they haven’t done too much damage.

How many of us see this same scenario when hiring a sales representative? We quickly open our company’s doors to whomever wishes to wander in. Sure, we want to fill the position with the best quality candidate as quickly as possible, however we have to have the skills and time to sort through the numerous people to find that best fit from all the wildlife that is out there. Tragically, if we do wind up with a squirrel, can we afford the lengthy process of damage control and removal? Don’t even compute the lost opportunity cost and the time to repeat a flawed methodology.

Before we just accept this as an avoidable business risk, consider a better way. Replace your open door with one with a screen. Yes, outsource your hunting process. Let a qualified recruiter screen out the wildlife and present you with the best fit. A qualified recruiter has the experience and skills to filter out the field mice, raccoons and squirrels. I have had fabulous results from using great recruiters to allow me to focus on what I do best while they do what they do best. They successfully do this every day, you don’t. You may know the ideal prospect profile, so tell them, and let them sort out the herd.

I know what your thinking, “Why should I pay to get sales candidates, there are so many available out there”. There is a reason; there are just too many frogs out there to kiss to find your prince or princess. Screening candidates is not your daily focus and you might allow someone to join your organization that might look great but is really a squirrel in disguise. I learned years ago, that when a candidate had an exceptional interview and after being hired was a poor performer, they were probably good at the job seeking process because they did it often.

So before you post your open sales position on the Internet and populate the social media world, consider the outcome. You will get a bunch, a huge bunch of responses from people looking for work. Evaluate your time, risk and overall importance of filling this position. If the evaluation reads high to very high, replace your open door with one that has a good screen.

Author: Rich Lucia
www.RichLucia.com

Is It CRM or MIS?

Let’s set the record straight. CRM is supposed to stand for ‘Customer Relationship Management’. But with current CRM that’s just about where the relationship to your customer ends. If you believe knowing your customer and understanding their needs gives you a greater chance you to solve their problems with your solution then what’s on the market today will be of little or no help. The original CRM systems were founded on the belief that if you could see the world through your customer’s eyes, then you will know what they buy and how they buy. Early CRM captured relevant information about your customer. Their likes, dislikes, family names and birthdates, hobbies, past buying experiences, how they are evaluated and compensated, personal preferences etc. were all kept on record. These systems got you closer to your customers and help you build a relationship by keeping in touch with their world through their eyes. They truly helped you manage the relationship.
However, CRM companies started catering to the check writers: Management. The benefits of capturing and sorting customer profiles data were part of why CRM existed, yet it yielded to a more immediate need to measure: What is going on? Customer relationship building data was replaced with pipelines, forecasting, probability of close and activity documentation. All of which are geared around the end result of an action, not how to achieve success. Let’s face it. CRM is now an MIS, Management Inspection System. I had a sales manager once tell me that he loved their new CRM system as it gave him everything he needed to manage his team. He said, “No one can make a move without me knowing about it. I can see how much and what they are working on, as well as their activity and forecast accuracy.” I asked, “How does that help them sell more”? He responded. “They know I’m watching”. Customer Relation Management System, I don’t think so: Management Inspection Systems, most definitely.
Other than the practice of trying to catch someone doing something wrong, these new MIS systems might be necessary in running a well-managed, reportable sales organization. They do not, however, deserve the title of Customer Relationship Management Systems. Moreover, emphasis on these mislabeled CRM systems have taken us on a different path than getting to see the world through a customer’s eyes. Knowledge to build a strong relationship has been replaced with pie and bar charts of results or forecasted results. Sadly, not only have the check writers prioritized their needs over the CRM mission but they have also sent the message to their sales force that knowing your customer takes a back seat to data entry that answers, ”What are you doing?”
I posed this dilemma to several CRM companies and other than them telling me I can customize their fields to capture more data, they had little understanding of what it takes help their clients make that sale. So, if current CRM has become a post-activity data collection system, then who is concerned with what a sales person needs to know in order to close more sales? There just may be hope as LinkedIn is getting ready to announce a new contact management system. LinkedIn has always been a believer in the power of connections and relationships. Who is better positioned to merge that power with a contact management system?
While the modern sales process has changed in many ways, the fundamentals are the same. The tricky part is merging the past and future together. Visit richlucia.com to learn more about forging ahead in today’s sales environment and May the Sale be With You.

Author: Rich Lucia
www.RichLucia.com

Don’t Train the Person Out of the Salesperson

Have you ever noticed that when you hire salespeople, you do your absolute best to find someone who has great communication skills? We all tend to make our decisions based upon the candidate’s ability to demonstrate superior listening skills, as well as a keen interest in our organization, and a strong desire to understand the mission ahead.

We look for a person who can relate well to our customers (and potential customers), while honestly gaining trust and an eventual commitment for our product or service. Though we have the best of intentions, once the hiring is accomplished, we begin to train the actual person out of the salesperson we hired.

We begin our sales training process much like a recipe that has been passed down through generations. Unfortunately, the end product just might be a cake that no one wants to eat.
We start with a full cup of the standard one-size-fits-all list of the product’s features and benefits. Then we add two canned pitches that can be memorized, along with a heaping tablespoon of what we call an “elevator pitch.” (It’s called that because if you only had a short time, like in an elevator ride, you could give the short version of the lengthy pitch.) Our training recipe wouldn’t be complete without half a cup of pre-written retorts, providing some automatic responses in case the prospect has an objection. Add a teaspoon of “pointing prospects to the website” for more one-size-fits-all benefits, and just a pinch of the “template of a standard proposal,” and you have it.

But wait, what has happened to our newly hired salespeople? We have given them all the standard sales tools, and they have memorized and practiced until their presentations are flawless. However, with this recipe, we have discouraged them from being the people we hired. No need for them to listen intently as they did in the interview, for we have trained them to believe that what a customer says will not change what we present. Why else would we send them into a sales call with a pre-written pitch book or the same PowerPoint presentation that everyone gets? No need to relate specific benefits to their prospects, as the memorized version includes everything anyone would ever want. All the qualities we hired for now take a backseat to a bucket of one-size-fits-all presentations. We have successfully trained the person out of the salesperson.

Sure we need to train our hires on our product or service, but if we can’t train them to choose their benefits and presentations carefully, we are creating a recipe for failure. A feature or benefit that has no interest to someone is not only ineffective, but can add a nuance factor that will send your prospect running. Instead, spend your training efforts on teaching salespeople how to customize presentations to prospects. Throw away standard one-size-fits-all presentations. You know, those presentations that when they don’t work, you teach the salesperson to just give it to more people.
So put your training to the test. Sure it must provide product and service information, but does it compliment the communication skills of the person you hired? Does it reinforce the practice of not only carefully listening, but taking that gathered information and building trust? Does your training focus on how to relate specific benefits that are of key interest to that individual prospect? If you can keep on track and understand the recipe for adding a productive, valued sales resource, you will have a greater chance of serving a cake that your customers will return for again and again.
Hire well, train to what you hired, and avoid training the person out of your salesperson.

Recession? Choose not to Participate

Everywhere you turn the word recession is the major topic. Job layoff’s cut backs, “cost savings sacrifices” have become part of our current corporate culture. Several years ago someone figured out that cutting costs had the same effect on the bottom line as gaining revenue; however what was never reveled that, although necessary, this is a short term strategy. This quick fix of reducing resources to become profitable has now been adopted as a practice of habit.

Companies have long since gone thru their organizations fat and have now cut into the muscle. The very muscle that made them great, leaving them with an organization that no longer is positioned and capable of growing revenue. (Which if we haven’t forgotten is an excellent way to increase profits both short and over the long haul). This is at the heart of our “recession” and frankly I choose not to participate. There is a solution and it begins with just that: Refusing to participate.

Today, we have morphed into Turtles and Ants. The turtles spend each day in their shell, occasionally peeking their heads out to see if the “recession” has gotten any better. The turtles hope is that a stock market will magically rally or for government intervention and political hopefuls will rescue them from these bad times. Upon observing that not only haven’t things gotten better, but the media discovered that a bigger audience can be had by pointing out anything that looks like a despair sandwich, they return to their shell to “wait it out”. The ant recognizes the need to survive and is content with following everyone else in a single line, hoping to pick up a few crumbs along the way.

Where are the eagle’s? Who is out there soaring above this belief that all we have to do is keep reaching into the seemingly bottomless pit of cost reduction. Find your eagles and return to growth by increasing revenue.
Let’s all refuse to participate in this “recession” but instead commit to growing our way to prosperity.

To accomplish increase revenue thru growth it begins with a attitude change about your companies physical and human resources. These are assets not liabilities and deciding to do more with your resources, not less is the first step. The 2nd step is to develop a plan. Organize a “growth team within your organization that focuses on opportunities and have them develop a plan. Not a cost cutting strategy, but a roadmap to increase revenue and profitability through a program that leads to growth. Step #3 is to Focus and train to these new initiatives. Step #4 is once you have trained for your new growth strategies, develop measureable milestones. Execute your plan and keep close check on results measured against expectations, modifying if necessary. There you have it. Sounds familiar, that’s because this is what we did before it became fashionable to be turtles or ants.

Participate in the “Growth” word

  1. Change attitude, recognize assets
  2. Organize a Growth Team to build a plan
  3. Focus and train to the growth plan
  4. Execute Growth Plan and monitor results

Bringing Gasoline to a Fire

When I was in executive management, I had the opportunity to meet with salespeople who were presenting their solutions to my company. In many cases I was in the “investigation stage” of a solution. I knew my company needed a better way to address a problem, but I didn’t know what was available to me. I had no objections at this time; however, I had my share of perceptions. My business was going to go to the first salesperson’s company that could solve my problem while being congruent with my perceptions. Throughout the various presentations, I was rarely listened to, yet I continued to volunteer all the information needed for the salesperson to make a recommendation. Still I had no objections, and one would think that it was clear sailing to the sale. But then it happened. The salesperson began telling me how their features were so much better than ABC Company and XYZ Company. Little did he know that I wasn’t even aware of ABC Company and XYZ Company’s existence, let alone the features they offered. As a matter of fact, XYZ Company sounded very interesting, and I made up my mind to look into their offerings. Beyond the normal objection of the salesperson being unprofessional by criticizing someone else, I had a new objection going forward. Now armed with competitive information, I wanted to look some more. And you can bet that XYZ would scare up a few objections that I’d never thought of as well.

Who created these objections? The world of selling is hard enough without salespeople creating more hurtles. Oh yes, there are thousands of techniques to address every detailed objection known to mankind, but why take the chance? No need to add objections. Why not nip them in the bud by not creating them in the first place?

Sometimes it’s not what you say, but what you assume that creates objections in prospects’ minds. Take the example of references. When you give a prospect an unsolicited reference, what you are trying to say is, “My product is so great that it is used by ABC Inc.” You’re assuming that they will be impressed by the reference and sign on the dotted line. But what does the prospect think of ABC Inc.? Do they respect them, or think they are nothing like their company (i.e. bigger or smaller)? If their perception of ABC Inc. is not creditable then you just hitched your wagon to a submarine and created an objection. The ball player Pete Rose was a well-respected icon for years. He was featured in a great deal of advertising, creating the message that if Pete Rose is behind a product, then you should be, too. But when Pete got accused of betting on ball games, the advertisements suddenly disappeared.

Another example of unknowingly creating an objection is the concept of customer tours. I realize that many salespeople are proud of their office facilities, and it’s a notion that I’m quite happy with, to tell the truth. However, I’m left wondering what they are trying to accomplish when their prospect visits them. Do they have a specific purpose and goal in mind that they would like to accomplish? Really think about it and ask yourself, “Does my office help or hurt that mission?” Maybe a customer’s site would suit the mission better, especially if you were to perform a demo there. Many a tour through an unfamiliar, cluttered and untidy technical area gave a prospect the “Can I entrust my work to these people?” feeling. Walking in the door there was no objection, but walking out was a different story. Just make sure there’s a purpose behind your strategies and that your action plan adds value to that purpose.

There was a startup software company that was quite proud of the expensive sign they had hanging outside of their office. It was truly a good looking sign. In fact, they were so proud of the sign that they took a picture of the building’s exterior, and made this image the major presence on their website. The only problem was that the building was small and located in a strip mall, yet they were looking for customers who would commit to their one million dollar software product over several years. This minor decision created an objection that the company might just be too small, and might not be around in the long haul, which was then broadcasted all over the World Wide Web. But you can’t assume you know your customers’ beliefs and opinions. You must truly know these invaluable pieces of information, or else everything you say or transmit is like rolling the dice.

At this point you are probably feeling like everything you say and do has an affect on creating objections, and you’re walking on eggshells. Well you’re partially right. Everything you say and do does have an effect on your success. But walking on eggshells is your choice. If you’re willing to take a “ready, fire, aim” approach, go ahead and step about freely. If you land on a couple of shells, you can try to do damage control, and handle the objection with one of a thousand pre-spun phrases. But if you are truly interested in avoiding the eggshells, thus avoiding the chances of dealing with the damage control/objection handling issue, then understand what affect your words will have in each situation. Try “ready. Aim, aim, fire”. There are plenty of monsters out there, and as salespeople, we should try not to bring any more to the table.

Don’t Create Monsters

In the sales world, a new day often presents an old story – another prospect with another objection. Once you remove the factor of being in the wrong place with someone who has no need for your product (which is a huge time waster), you must still determine the other elements that create these objections. If you were to do a study, you would find that over 60% of all prospect objections come from salespeople. Yes, we salespeople create more monsters/objections in prospects’ minds than any other single cause. We accomplish this task by bombarding all who will listen with an endless supply of canned pitches, “boiler plate proposals,” and “one size fits all” PowerPoint presentations. We believe that our mission is to place “ideas” in a prospect’s head as opposed to guiding their ideas and perceptions to a sales solution. But we insist on pitching when we should be listening. When we do this, our prospects are sometimes catching all right, but they are catching our words and applying them to their personal reference points, and BANG – an objection is created.Let’s take a look at an example that illustrates this point. Once there was a salesperson that represented a website design company. He received an inquiry from a three man law firm about creating a website for their organization. The salesperson arrived, and if the time had been taken to find out what the prospect was thinking, he would have found out that there was no “IT” help on-site for the firm. In fact, the firm wanted nothing to do with updating the site. The prospect believed that having a website was something he needed, but worried that it would surely take time away from his practice to develop and maintain. Details were something reserved for his law practice, and this whole website process needed to be handled by someone else. However, the salesperson didn’t uncover these facts ahead of time, and instead arrived with an open mouth and an open PC, determined to show how great his product was. At this point there were no objections to the salesperson’s product or their company, just beliefs on the part of the prospect. The salesperson began the canned presentation just as he had done hundred times before. With all the enthusiasm the salesperson could muster, he told of how the law firm could customize the site’s look and feel. Out came the endless samples of fonts, followed by colors, graphics and clipart, all for the prospect to choose from. Next in the presentation came the customization of the site that could be performed including content changes, video insertion and semi-automatic HTML coding. Then came the mini-training overview on how, as an administrator of the site, the prospect could monitor and filter e-mail as well as all other mailbox options. The prospect asked (in an attempt to slow down the avalanche of information), “What is price for this service?” The salesperson, now encouraged with a buying sign, went into a twenty minute list of options, which led to a further detailed description of features. The call ended with a firm handshake from the prospect, a promise to “look over” everything, and an “I’ll get back to you”.

Let’s take a look at what happen here. There was never a direct benefit given to the prospect regarding what was important to him. How could there be, as the beliefs the customer held were never uncovered. In football, would a quarterback run into the game without knowing what yard line his team was on? Or where their goal line was? Or what down it was? Or where the opposing team’s defense was weak or strong? Of course not, but then why do salespeople run into the “sales game” unprepared? And worse yet, why don’t they ask for the very information that would help them avoid creating objections? In the case of the lawyer prospect, if his thought bubble could have been seen, it would have said, “I have some serious concerns about this offering. It’s too complex, too time consuming and I need to get back to work.” The salesperson realized that after the pricing conversation, the call ended. Therefore, “price” must be the objection. Armed with his new wisdom, the salesperson returned back to his office and told management that if they wanted this sale, they had better address pricing.

Where did all these objections come from? The truth is we (as salespeople) create them. In our example, there wasn’t even a chance to uncover the explanation of what was really going on, which ultimately prevented a sale. And what if the true objections had come out? It doesn’t really matter now, as the damage was done, and now all the salesperson is left with is the dilemma of how to undo or “handle” those objections in the future. Just as David slayed a thousand Philistines with the jawbone of an ass, these objections were created using the same instrument.

One Size Does Not Fit All

Customers are definitely different from years ago. A lot of selling concepts fit for the people who were totally loyal to their jobs and company. The company’s pain was their pain. Little else mattered. That’s when most people stayed with their company for their entire career. They never saw massive downsizing and indiscriminate reductions in the workforce. In their world, when a layoff took place, the company stock went down. It was a sign of trouble. In contrast, a layoff today signals lower costs and higher profits, resulting in stock prices being driven up.Take a close look at the tools you’re being taught and make sure they’re suited for NOW.

I’m not saying that customers aren’t loyal and devoted to their companies as much any more. Different priorities are now in the forefront of all prospective customers’ minds.

You may have a product that relieves your prospect’s pain and would solve a major company problem. However, if your solution requires that the buyer (A Gen Y or X) stays after work two extra hours a day for three months, watch out. It might conflict with what he perceives as his gain, which is getting home for dinner each night.

Go ahead and uncover the pain. But you also have to find the gain or you won’t make the sale.

It’s been said that we’ve experienced more change in the past 50 years than in the previous 500 years. This has left a wake of out-of-date strategies from four distinctive generations whose points of view and opinions must be taken into account.

“Selling in the NOW” is recognizing different generational groups. Learning to understand, test, and then validate any perceptions they might hold will help you relate to them and gain their trust—and ultimately assist them in buying.

1. Mature (traditionalists) – born 1909 to 1945

  • Experienced World War II and possibly also WWI
  • Strong belief in duty, honor, country
  • Lived through the Great Depression
  • Hardworking, loyal
  • Slow to embrace change
  • See technology as having little value
  • Financially conservative
  • Strong desire to work out issues and meet company goals

Many traditionalists today are approaching retirement or have retired and hold temporary positions in an organization.

2. Baby Boomers – born 1946 to 1964

  • Born to post-WWII parents
  • Make up 28% of the population and 48% of the workforce
  • Raised to believe they can accomplish anything
  • Willing to give up family for advancement of career
  • Competitively seek advancement because of their numbers
  • Seek to please management, thus becoming skilled at company politics
  • Look down on others who don’t come into the office early and leave late
  • Pay attention to the amount of time spent at the office versus what gets accomplished
  • Place efforts on acquiring wealth
  • Value learning new things
  • Rebellious toward existing policy, especially if it’s not geared toward their personal goals

3. Generation Xers – born 1965 to 1984

  • Raised in times of rapid change
  • Make up approximately 16% of the population
  • Technologically savvy
  • Have witnessed major layoffs
  • Do not expect employer loyalty
  • Change jobs quickly
  • Work is not the most important thing in their lives; they seek a balance
  • Work hard and expect to be well compensated
  • Favor receiving money today versus future benefits (stock options, vesting bonuses, etc.)
  • Want to be regarded as individuals rather than be labeled by what they do.

4. Millennials – born 1981 to 1999

  • Recent college graduates entering the marketplace
  • Grew up in the computer age
  • Can apply technology to the workplace easily
  • Confident and ambitious
  • Skilled at retrieving volumes of information via the internet
  • Entrepreneurial and resourceful
  • Eager to learn and enjoy questioning
  • Desire career options that are open-ended
  • Can multitask with ease
  • Have a sense of civic duty
  • Their ambition is greater than their knowledge of how to execute new things

There’s little demand today for a 26-page boilerplate proposal. Most customers want their information fast, to the point, and on demand. And today, direct mail pieces find their way to the trash can faster than to the decision makers. No, the tools aren’t bad. But they definitely need updating. Doing spam email blitzes has introduced an electronic aggravation and makes discarding the sales approach even easier.

“Selling in the NOW” means making sure you find out exactly who your prospects are. That includes knowing the effects that different generations may have on the sales process. The generational differences are not hard fast as we all know Baby Boomers that have the traits of Gen Y and X’ers and the opposite can be true but being aware is a starting point to test and not assume. The point here is validating who is catching before you start pitching.

Selling in the Now!

Where do you turn when sales aren’t where they should be? Conventional wisdom tells us to hit the sales-training road in an attempt to utilize those time-proven selling techniques. Back to the basics – you know, those sales tools that have been used with great success for years and have stood the test of time. Not so quick. They’re often repackaged, but not much has really been altered during the past twenty years. But something has changed…your customer.Many of the selling tools and techniques we still use today were created back when all customers had the same motivations, values and perceptions. At that time, creating a set of universal selling concepts that would appeal to everyone was a pretty good idea. Ultimately, a “one size fits all” sales manual was utilized to teach and appeal to the majority of the prospects out there, namely Baby Boomers. The only problem now is that Baby Boomers have begun to retire, and the incoming Generation Y and X’ers don’t dance to the same drummer as the generation before them. And the Millennials who follow the Gen Y & X’ers are bringing even more diverse motivations, values and perceptions to the playing field.

So why are we selling in the past? It’s almost like we are skating where the puck used to be, and then surprised when we get there only to find that the game has moved to another place. If the mission is to win the game of today, then you must use the tools that customers respond to NOW. “Selling in the NOW” means recognizing that if you want to make a sale to today’s buyers, you have to be aware of how and why they buy in today’s world.