Category: Business Analysis

The 5 KPIs You Should Be Watching For Sales

Business Analysis, Sales Management, Strategy Planning

There is a quote I really love when it comes to sales management, “You don’t get what you expect, you get what you inspect” from Louis V. Gerstner Jr. In fact, it has several applications across business, but let’s just stick with sales for now. Everyone wants a crystal ball to forecast sales, but it is not easy to do. One of the main problems is that we focus on the wrong number for our key performance indicators (KPIs); sales. Yes, it does make sense to follow sales results closely, but doing so only really looks backward, not forward. Past performance does not predict future results. 

 

Keeping your eye only on sales is a common mistake that both salespeople and sales managers make. Actual sales are in the past and there is nothing you can do to change that. You must start working for tomorrow instead of yesterday if you want to sustain or improve your sales. These are the KPIs that you must inspect if you expect good results.

 

  1. Pipeline – With no sales pipeline to feed your sales process, there are no sales. Simply put, inspect the list of leads and opportunities that you will be working on for the coming month or quarter. Is it sufficient  to reach your goals? Never overlook your sales pipeline. It is one of the single most important predictors for sales. 
  2. Activities – Is the sales team executing the right activities and how do you know? This is the one that we all take for granted. The question is, is the sales team being productive or busy? When you find that sales are down, every salesperson will tell you that they have been busy. Set the expectation of how many phone calls, meetings or presentations you expect over a period of time to achieve success and inspect it.
  3. Closing Rate – Are opportunities falling through the cracks? If so, why? There are several reasons why this can be the case, but if you ignore it, it will not improve. If you want to close more opportunities, then you must inspect the close ratio.
  4. Meetings – How often is the sales team communicating? Are you hands off or perhaps even excessive? The less communication and meetings there are with the sales team, whether as a group or individually, the more performance suffers. 
  5. Strategy – This may be a hard one to measure, and it may be more binary than anything. Do you have a strategy? Are you following it or falling behind? If you and your team are not in sync with your strategy, then chances are that old and unfruitful habits are starting back up again. Inspect your strategy often if you want meaningful results.

Are Your Customers Cheating On You?

Business Analysis, Sales Management, Sales Training, Strategy Planning

Have you ever met up with one of your customers only to find them holding the pen of one of your competitors? BUSTED! They were cheating on you and you feel your eyes turning red. “But wait,” the customer says, “I can explain.” Okay, perhaps it didn’t go down like a lovers quarrel, but for you it kind of hurts the same. If they are an important client, chances are they have a desk drawer full of your competitors pens, magnets, note pads, drink cozies or whatever clever swag they came up with. But is your customer cheating on you? The answer is ‘maybe’, depending on what your definition of cheating is. 

 

Let’s face it, most (if not all) of your customers are considered attractive to your competitors. In fact, it is your competitor’s job to woo the customers away from you in the same way that it is your job to do the same to them. When it comes to customers, it is only a marriage when it is a well written contract, but in most cases, it is just casual dating. They can talk to whomever they choose. 

 

The question is whether or not you should be worried. Chances are probably not, but it does raise an interesting point, who is getting more face time with your customers; you or your competitors? How often do you interface with our customers? Let’s assume at least once a quarter. Is that enough?

What does the math say? Let’s say you have at minimum 3 strong and aggressive competitors and each one reaches out once a month whether it is a phone call, email blast or whatever. Here is the annual net sum:

 

You x 4 = 4

Competitors x 3 x 12 = 36

36 > 4

If you courted your clients as much as your competitors do they wouldn’t stand a chance. This isn’t feasible but it has to make you wonder, are you making your customers feel special in the same way that you competitors are trying to do? Examine your book of business closely, track how often you are staying in touch as well as the quality of that touch. Are you looking for new ways to add value, or just filling orders and collecting checks? If you’re doing everything to create a great customer experience, delivering value and in good communication with your customers, chances are slim that they have no intention of cheating on you and your competitor’s swag stays in the junk drawer. 

Never Lower Your Price Until You Ask Twice

Business Analysis, Marketing, Sales Coaching, Sales Training

Customers will make their purchasing decision based on price if they perceive no other value. This is an old sales truth that will never change. A major part of our role as salespeople is to communicate that value in a compelling way to the customer. Easier said than done for some of us. As salespeople, we acknowledge that customers can get similar products and services from our competitors, although we’d rather not call attention to it. When the conversation of options comes up, you can bet that price will be a part of that discussion.

You want the sale and the customer will make you work for it. So if a customer wants a discount, shouldn’t they work for it as well? Most salespeople dislike price objections and buckle under this pressure every time. This is the point where you usually lose control of the sale and you adopt a defensive position. It is critical to remember: Never Lower The Price Until You Ask Twice!

If you are not willing to ask for your same price twice, then you are giving up control of the sale at the most vital time. (read more about how to control the sale here.) Customers love to play games with the price, and you will lose every time you play it if you play by their rules. If you find that you have no other choice but to lower your price and it is still a fair deal, do not do so until you have asked for the same price twice. You will find that this demonstrates confidence and customers will respect you for it. Many times you will find that the customer isn’t willing to push back a second time; especially if he or she has no grounds to ask for a lower price. The customer isn’t holding all of the cards that you think they are holding. So when you get to the discussion about price and you want to stay in control, remember that you never lower your price until you ask twice.

6 Reasons Good Salespeople Stop Reaching Their Goals

Business Analysis, Marketing, Sales Coaching, Sales Training, Uncategorized

Sales is hard work and there is no doubt about it. Sometimes we have good years, and other years, well, not so much. There are times when we believe that we are a great salesperson, and if we’re being honest, there have been some days where you thought about changing your profession. It is very easy for salespeople to get in a rut and course-correcting for some salespeople is very difficult. Our goals suddenly extend beyond our grasp and once we fall behind, we lose hope of being where we need to be. We now question whether or not we are the good salesperson we thought we were.

Selling requires you to frequently pivot in order to stay competitive and relevant. When we forget to pivot we start to get farther and farther away from our goals. It doesn’t mean you are no longer the great salesperson you once thought you were, but there is a good chance that you have turned a blind eye to things that you know are important. Let’s talk about a few things you can work on to get back on track to being the great salesperson you know you can be.

  1. You are reluctant to change and take risks – Change is hard for salespeople, as it would be for most people, but our profession demands us to change more than it does for others. Consider what you do in terms of what is, and is not, working. What changes need to be made and what risks are you willing to take on? (,Fortune Favors the Bold and ,5 Tips to Becoming a Confident Salesperson)
  2. You are not paying attention to your pipeline – Long term sales professionals tend to fall victim to this issue more than new salespeople because they become complacent. You get into a comfortable place where referrals are strong and so we stop developing raw opportunities. When the referrals dry up, there is no pipeline to work on and you are left short of reaching your goals. A poor pipeline is always one of your biggest sales problems. ,(How Does My Sales Activity Relate to My Pipeline?)
  3. You think there is nothing new to learn – And I don’t blame you because sales are always sales, however, there are new techniques and technologies that become available all the time that help you stay sharp and competitive. Some of the worst salespeople I meet are the ones who pretend to know everything. (,Going to the Sales Gym – Working Your Core)
  4. You are not meeting enough new people – As salespeople, we must be in front of the target markets often and making a name for ourselves. It is exhausting work and it consumes a lot of evenings, but if you are staying within your own circles, you are ignoring the fact that there have been a lot of changes and new faces in your market. Those opportunities are going to someone else.
  5. You stopped being persistent – Instead of trying 10 different ways to get a new account, you give up after 2 or 3 tries. Persistent feels like groveling to an experienced salesperson like yourself. If you are not being persistent, that means you have a very leaky pipeline and you have been missing a lot of opportunities. (,Pushy or Persistent?)

You rely too much on past results – Many salespeople will hit the cruise control button on their sales any chance they get. It is one of the only professions that can get away with this and frankly, who could blame you for coasting a little bit to catch your breathe and enjoy life. Sometimes we try to coast a little too long and we run out of steam and before we know it, we are no longer on top. Congratulations on your past success, but there is still a lot of hard work ahead of you and you need to demonstrate that you still have what it takes to crush your goals. (While referrals are terrific, ,here’s why it’s dangerous to rely on them to carry your pipeline).

Never Lower Your Price Until You Ask Twice

Business Analysis, Marketing, Sales Coaching, Uncategorized

When I ask salespeople what their most common and least favorite sales objection is, more often than not it has something to do with a price objection. That makes sense because this is usually the moment of truth for any deal. Does the price meet the budget and expectation of the buyer based on the value and outcome they desire? But price, albeit important, is very shallow in the buying process for anyone. Buyers put it high on their list of importance and may even lock in on a number, but is this really what it all comes down to in our sale? Maybe yes, but likely not. However, that is how both the buyer and seller treat this common sales objection.

Price is merely the symptom of the value in an exchange. We all have an idea of what something is worth and what we are able or willing to pay, but price is really just a barrier between everyone getting what they want. This is important to remember in sales because we focus more on what someone will spend instead of what they will get. This means that you have to requote, discount or devalue the sale in order to close the deal because we believe the customer is more concerned about what the price tag is than the value. This is a deceptive illusion. Understanding that there is a limit to what can be spent, we have all been willing to pay more if it meant getting something that we wanted that we felt was valuable. Let’s talk about how we can start to get past the price conversation to close more deals.

  1. Empathize – Before you get defensive at a price objection, take a moment to connect with the customer. It’s not uncommon for someone to question the price and let them know that it is okay to do so and you, in fact, are also price sensitive. “Mr Customer, I don’t blame you for bringing up the price. In fact, I do the exact same thing and I expected us to have this conversation.”
  2. Challenge – Everyone has their own reason for being concerned about the price, but assumptions are not always based on reality. Before you validate their assumption that they should have a better price, be sure to understand their position. Many times you will find that you are uncovering a bluff. “Mr Customer, help me understand why you believe the price should be lower. Have you shopped and found the exact same thing for a lower price?”
  3. Position the value – Shift the buyer’s focus back on to the value that you presented. It’s the reason why he wanted to talk to you in the first place because his other options did not completely satisfy his needs. Otherwise, why would he still be talking to you? You still have something he wants so you still have influence over his decision. ‘Mr Customer, can we agree that, besides the price, what I am offering you is the best option you have?”
  4. Is it really about price? – When a buyer gets hung up on the price, be sure to ask, Mr Customer, is price really the only or most important criteria for you to make this decision? I don’t know about you, but the last time I went with a lower price I found myself being unhappy with my purchase. Did you ever go for a lower price and regret it later?
  5. Ask again – Never lower your price until you ask twice. You have to be confident in your value and pricing models because if you back down right away, you signal to the buyer that you knew you were going to overcharge them. It’s up to you to decide what you are willing to do to make the sale, but hold firm to your price and buyers will respect you. You’ll be surprised how often that respect will lead to the sale at the price you offered.

How about some more dialogue and ,practice with price objections? Contact us at ,ajacobs@scorecardsales.com for training and coaching.

Is a Difficult Salesperson Holding You Hostage?🔫

Business Analysis, Posts, Sales Management, Sales Training

Some people just have to make any and everything difficult. They refused to be managed, coached, or listen to anything that is contrary to what they believe and what they will or will not do. This is especially worse when it is a salesperson who brings in good numbers. Ain’t nobody gonna tell him what to do cause if you don’t like it, he’ll just quit. In essence, these types of salespeople derive a certain pleasure from holding their sales managers and the company hostage They put you in a darned-if-you-do-darned-if-you-don’t arrangement that gives them complete control at the expense of the rest of the team and your leadership. Who’s the boss?

When I say difficult salesperson, I mean someone who is truly disruptive and undermines the company and its process. They do not demonstrate the right attitude and behaviors, they act unprofessionally, focus only on themselves and they undermine leadership and policy any chance they get. Even worse, they carry themselves with a sense of diplomatic immunity and encourage others to be defiant as well. They just constantly set a bad example over your core values, but you really need the sales. Is this a hill that you are prepared to die on? If you do nothing, you may die on it eventually anyway. However, there is a good chance that you are dealing with a classic bully, and bullies must be dealt with. I’m sorry to inform you that the end result may come down to termination, but it almost never does. Besides, recovering from these kinds of losses may be inevitable yet easier to overcome than you think. But, let’s plan for the best by having the right conversation with the right person in the right way.

  1. Remain calm – It is way too easy to get your emotions involved when dealing with difficult salespeople. They will do everything they can to make sure that you lose your cool so they can gain control of the situation. Resist every urge, keep calm and focused on your desired outcome.
  2. Discuss the performance, not the person – Discussing a person’s character becomes subjective and argumentative. Once the person becomes defensive because you make it about them, any progress in the conversation will cease. Talk about what they do and not who they are.
  3. Create clear expectations – Leave nothing to chance here. This part of the conversation should definitely include potential consequences. If you are firm and fair at this point, most reasonable people will want to keep their job and are willing to begin the compliance process. If not, there is a good chance that you need this person off your team sooner than later. 
  4. Create a PIP – A Performance Improvement Plan demonstrates not only how serious you are, but your level of concern about performance, behaviors, and attitudes. Change won’t happen overnight, but a good PIP will get everyone headed in the right direction. If things ultimately don’t work out, then there won’t be any surprises. 
  5. Use good management follow through – It is important to sustain any course correction by managing the process, structure, communication, environment, and goals of the salesperson. There is a reason why things fell through the cracks, and it is up to you to make sure that it doesn’t happen again.

Defending Your Price Depletes Your Profits – 5 Steps For Keeping Your Price

Business Analysis, Marketing, Strategy Planning

Price objections are the most frequent and the most dreaded among all sales objections. It automatically triggers your defenses as your customer puts you on the ropes trying to beat a price reduction out of you. And you fall for it every time. You try unsuccessfully to defend it at first, but then you go back to your old defaults of discounts and reductions. Rather than defend your profits, you gladly hand them back to your customer because making the sale was more important. Less profit is better than no profit, right? It depends, but why is less profit a foregone conclusion for you?

When a customer brings up a price objection and you offer a defense or a reduction, what you are actually doing is giving a confession. Yes, my price was too high because I tried to oversell you, my profits are excessive and I don’t believe in the value of my original proposal. If these confessions weren’t true, then why were you so quick to concede your position? As far as the customer is concerned, it’s their ‘Gotcha!’ moment and now they own the sale and they take you for a long and profitless ride. Yes, it is important to stay flexible and work with customers and their budgets, but pricing is not your competitive advantage so stop trying to sell like it is. You can stop giving your profits away by following the 5 easy steps.

  1. Validate – Everyone is focused on price. Our culture conditions us this way through marketing. Some people forget that price is not the only important thing. So there is no need to draw a line in the sand right away with someone’s sticker shock. A simple acknowledgment can keep the situation from escalating at the start. “Yes Mr Customer, I always look at the price first and most of my customers are the same way. Your concern makes sense to me.”
  2. Challenge – Instead of defending your price, the customer should defend their assumption of the high price. Innocent until proven guilty, right? What basis do they have for making this statement? Is there another true comparable option? Maybe they are right or maybe they are playing you for a sucker. Challenge their price objection with a challenge of your own. “Mr customer, I can understand that you want the best price, which is what I have offered, but what do you compare it to that makes you believe it is too high?”
  3. Provoke – You must align the customer’s values and needs by provoking their own belief system. Start the conversation with, “Mr. Customer, is the price the only thing that is important to you when you make this purchase? Do you find that going for the lowest price gives you the value that you really wanted?”
  4. Explain – A price objection means either you are out of the customer’s budget and there just is no sale to be made or you have not effectively presented the value of what you are selling in context of the price. Don’t overcomplicate this. Pick the 3 most important problems you are solving or the 3 benefits you are offering that puts your price in a proper perspective. “Mr Customer, if I understood you correctly, these are the issues that were important to you. Have I properly addressed them in a way that the price makes sense and, if not, where did I lose you?”
  5. Ask again – The key to success is the faith in knowing you’re right. So, unless the customer can demonstrate that you got the sale all wrong, reinforce your position by asking for the original sale again. Customers respect confident salespeople more than they like to admit. Asking again communicates to customers that yes, you believe your price is fair, your profit is reasonable and the value is as strong as it ever was.