Category: Sales Management

Creating Performance Improvement Plans For Salespeople

Business Analysis, Sales Management

Let’s assume that, in some way, every person desires to feel like they are successful. Most reasonable people do not pursue and accept jobs if they didn’t feel like they could be successful in it. The 2 questions are can they perform the work and will they perform the work? That’s where a performance improvement plan (PIP) comes into the picture. Someone is not successful at some aspect of their job. If both parties agree that the salesperson wants to, and can be, successful in sales then a PIP would be the next best step. If not, then you probably have a different problem that deals with attitude more than aptitude. 

 

In some ways, a PIP acknowledges that both parties have failed each other in some ways and both equally deserve a second chance. Often times the salesperson needed additional oversight and support, or maybe they just aren’t fit for the position and should look elsewhere for jobs where they can be successful. A PIP is our way of saying let’s give this one more try before any of us make up our mind. After all, everyone involved has much to gain if the salesperson comes out the other side successful from their PIP. The question is, how can I create a PIP that is appropriate for my salesperson? 

 

  1. Achievable Goals – Everything in your PIP must have measurable goals. We are in a sensitive situation when someone’s job is on the line, so there should be nothing to guess about. Let the numbers tell the story that if success isn’t meant to be, the numbers can validate that. Be sure to pick goals that are reasonable. Remember, we would rather this be the path to success than a painful exiting from the company.
  2. Pipeline – Make certain that the salesperson is maintaining a steady pipeline. This is often one of the biggest culprits for sales failure. Make sure you set acceptable standards for pipeline minimums during the PIP timeline.
  3. Activities – The PIP should express in no uncertain terms the types and amounts of activities that should be performed during the time period. If they can’t do the work, then this is not the job for them. How many phone calls, emails, visits, etc do you expect?
  4. Customer Meetings – Sales are not going to happen without meeting with prospects and customers. If a salesperson cannot get people to the table, then sales is not a fit. We all love hard workers, but we like sales even more. Hard workers can easily find a job elsewhere.
  5. Check-ins – Make sure you have at least weekly PIP check-ins with the salesperson. The PIP can last anywhere from 30 – 90 days. If you aren’t checking in regularly, there’s a good chance that the salesperson continues to struggle with the same issues. Remember, the goal of the PIP should be to make them successful, not to watch them slowly fail.
  6. Sales – I hesitate to add this to the list because certain industries have long sales cycles. If you have a sales cycle that is less than 60 days, this can be part of the PIP. If it is longer, I would rely more on the number of customer meetings that the salesperson has created.

B2B Cold Calling Made Easy

Marketing, Sales Coaching, Sales Management, Sales Training

 

Cold calling for Business-To-Business sales is one of the most misunderstood opportunities for salespeople. Quite often anymore it feels like a tool that no one even has, or if they do, they don’t know how to use it. Many salespeople like to think that emails were the long-awaited coffin nail for actually picking up the phone. So now a wave of passive-aggressive sales tactics has washed ashore mediocre salespeople to flop around on the beach. I say flopping around because email oftentimes is a choice of quantity over quality for cold calling as we flop our message around the internet. Don’t get me wrong, emails can be very effective and they certainly have their place in the sales process, but despite what your open rates tell you, you don’t really know what’s going on in terms of how your message is received. 

 

All that said, salespeople most often overcomplicate cold calling when using the telephone. This is because they either forgot or don’t know the primary purpose of a B2B cold call using the phone. Don’t believe me? Just ask your salesperson, what is the desired outcome of the initial phone call? It is not to sell something or even to discuss your product or service at length. In fact, it’s much easier and simpler than that. The goal is to get the meeting. That’s it. The more direct and purpose-driven you can be with that goal in mind, the more you will improve the results of your cold call. But let me give you a play-by-play of a simple and effective B2B cold call using your phone. There’s also a sample conversation as well.

 

    1. ‘Did I call you at a bad time?’ – This is by far the best opener you can use. The prospect will always say ‘yes’ (which you want them to get in the habit of doing) and will immediately follow that with, “what’s this about”. They just gave you permission to sell without being aware that they did so. You’re off to a good start.
    2. ‘I assumed this was a bad time to call’ – No need to apologize, but let them know that the only reason why you called was to schedule a meeting with them to discuss how your product or service may be beneficial to them. 
    3. Head for the goal – Remember, every part of this brief conversation has to be to get the meeting. You won’t have a lot of time, so don’t go into a deep dive about what you’re offering and why it is so great. 
    4. Keep it brief – As I said, you already know you called at a bad time, so don’t disrespect the prospect by using this opportunity as your meeting. Answer any questions she or he may have and keep the conversation focused on getting the meeting.
  • ‘Can you think of any reason not to meet with me?’ – This is the best way to get a commitment. If they offer an objection then be sure to work through the problem, but if they said ‘no’ to this question, then they just said ‘yes’ to a meeting. Schedule it.
  • Always ask twice – Don’t be discouraged if they decline the offer to meet the first time. Empathize with their objection and ask at least one more time. You’ll be surprised how many times a ‘no’ becomes a ‘yes’. Persistence is powerful. 

 

Here’s a sample of how the phone call should go for you:

Salesperson – ‘Hi (customer) my name is (name) from (company). Did I catch you at a bad time?’

 

Prospect – ‘Yes you did. What’s this about?’

 

Salesperson – ‘I figured this would be a bad time, but that’s why I wanted to give you a quick call. I have been helping companies like yours to (reduce costs, increase profits, find more customers, improve efficiencies, recruit new talent, etc.). I wanted to schedule a 15-minute meeting with you next week to learn more about you and share what we are doing for our clients. Could we schedule a meeting for next Tuesday at 2:00 PM?’

 

Prospect – ‘Tuesdays are never good for me. What do you mean that you can (reduce costs, increase profits, find more customers, improve efficiencies, recruit new talent, etc.)?

 

Salesperson – ‘Well, basically we (*use one or two sentences to describe what you do) but I would need a little more time to really explain how this would work for you. Would Wednesday be better for you?’ 

 

Prospect – ‘I’m not sure this is something I would be interested in.’

 

Salesperson – ‘You know, all my best clients said that to me when I first met them. Let’s have a 15-minute conversation next week and, after that, if you decide this isn’t for you, I’ll respect that. But I have a feeling that there is something valuable for you and, at the very least, you can learn some of the options that you have. Can you think of any reason not to meet with me next Wednesday?’

 

Prospect – ‘No. I am very busy, but we can talk for 15 minutes. Let’s set an appointment for 10:30 AM. 

Hiring A New Salesperson? Try Before You Buy

Business Analysis, Sales Management

Recruiting, interviewing, and selecting a new salesperson is a very tiring and stressful responsibility. There is a lot riding on this position and if you don’t get it right, you lose a significant amount of time and money. Your strategic plans depend on you getting the right person on your sales team, but you’ve done this before and it didn’t go so well. Salespeople, as you would expect, are very good at knowing how to say the right thing in a job interview and when you’re ready to make your decision, there is always that inner voice telling you, “Self, this is going to be a gamble.” But you’re tired of gambling. The resume appears solid and the references check out and although that is promising, it in no way guarantees success. Well, what if I told you that there is a risk-free way to try-before-you-buy every single sales candidate? 

Most job interviews are structured by employers to learn about what a candidate has done in order to forecast a probability of what their potential is. This standard method is effective up to a point. That’s why employers developed skills tests and assessments for candidates before they make them an offer. In sales, the preferred tool is the personality test. We could argue how effective a personality test is for discovering the right candidate to be on your team, but the most simple and cost-effective way to actually evaluate your candidate is roleplaying with them. Roleplaying is great because it demonstrates in real-time how salespeople perform on their feet as well as the level of sales skills they possess. Best of all, it’s not that difficult to determine how well they have done based simply on your impression. Why? Because you will know instantly the impression the candidate will make on your prospects and customers by the impression they make on you in simulated sales scenarios. Here are the 5 scenarios to roleplay with your sales candidate so you can try em’ before you buy em’.

 

Getting the meeting – One of the biggest aspects of sales is getting meetings with new potential clients. Have the candidate cold call you to tell you about their product or service and persuade you to have a meeting with them. It may be best for the candidate to pick a product or service they have sold before so they can focus on technique instead of product knowledge. 

 

Present the product/service – Have the candidate again pick a product or service they are comfortable with and have them spend 3 – 5 minutes discussing the it with you as a potential customer. This should be less about features and benefits selling and more on their presentation skills.

 

Getting the commitment – We’re not ready to close the deal yet. Get the candidate to persuade you as a potential customer to take to next step in the buying process. This could be scheduling a follow-up meeting, requesting documents, requesting another decision-maker, etc.

 

Managing an objection  – This is the most crucial scenario to roleplay with a sales candidate. Sales objections are a constant reality and you need to see how the candidate can work through the problem. The candidate doesn’t have to be perfect, but how do they respond to pressure and confrontation? Three objections to roleplay are 1) I think your price is too high, 2)I am happy with my current vendor, & 3) I’d just like to think it over.

Closing the deal – It is critical that this candidate knows how to ask for the sale. It is surprising how often this technique is blown off; especially in interviews. Does that candidate come across as comfortable and confident or is she at a loss for words? This will help you to separate the wheat from the chaff. 

How To Deliver Bad News To Your Customer

Customer Service, Sales Coaching, Sales Management, Sales Training

Salespeople hate to deliver bad news. I mean – really hate it. Of course, no one wants to be the bad guy when it comes to customers, but salespeople especially hate it. Why? Because much of their career is based upon being liked and it isn’t easy to get someone to like you when you tell them something they don’t want to hear. This is made all the worse when your commission check depends on what information you have to share with customers. We’ll do everything we can to sugarcoat the message, delay sharing the message, and add a little prayer in hopes that the bad news will disappear quietly. But there is some good news about delivering bad news.

 

We create moments of truth in a series of actions with our clients to create an overall customer experience. Truth is the operative word and it’s not that customers want the truth; they want their truth. It’s up to you to bridge this gap between the two and when you do it successfully, you can strengthen the customer’s loyalty. Some bad news can be a deal-breaker, but oftentimes you can recover from bad news if you deliver it properly. So the good news about the bad news is that once you master the art of delivering it, you develop the reputation of being honest and trustworthy and, given the overall experience, the customer is more likely to do business with you anyway after you get them through this moment of truth about the bad news. Here are the best ways to handle delivering bad news to your customers.

 

  • Do not be afraid – Your fear will trigger fear in your customer if you are not careful. Stay calm and be ready to approach the situation with truth, understanding, and a willingness to listen.
  • Do not delay – You don’t have to rush delivering bad news when you don’t have all of the information, but don’t delay sharing once you do. It appears dishonest to the customer.
  • Be truthful – Altering or misrepresenting information will always make matters worse. I can understand if there are details you want to omit, and sometimes that’s okay, but bad news served with lies is never a good idea.
  • Acknowledge the customer’s feelings – Customers are more likely to be responsive to bad information once they feel that they have been heard and understood. If it’s a big deal to them then it is a big deal to you.
  • Offer solutions – There are always options, even if they aren’t optimal in comparison to what the customer originally wanted or expected. Delivering bad news without a solution is like pushing the customer out into the cold. Show them that you are thinking and working on their behalf and you stand a much better chance of retaining their business. 

Texting An Angry Customer: Customer Communication Etiquette

Customer Service, Sales Management

I remember when there was a time when the only option to talk remotely with customers was with the telephone, and nothing makes me feel older than when I use the phrase, “I remember when there was a time”. But this is an excellent point when it comes to customer communication etiquette because new generations bring new tools and technology for us to choose from. Emails and texts are an excellent way, in some cases, to speed up communication and provide timestamp documentation. However, it has created a generation of passive-aggressiveness that avoids phone calls and direct confrontation. When it comes to customer service and handling customers who are otherwise unsatisfied for any reason, the new electronic methods of communication can cause more problems than they solve. 

Nothing makes me cringe as much as reading someone’s lengthy and litigious battle through an email or text thread. It is an escalation of, “I’m right. No, I’m right” that rarely, if ever, resolves. Not only that, but somehow it manages to get too personal too. I’m not sure why that happens, but when it comes to customers, that should never be the case. So when it comes to customer communication etiquette, let’s rank and review the best and not so great methods for having these difficult conversations.

 

  1. Face to face – This is obviously ideal when the opportunity presents itself, but for many of us who manage sales and service remotely, this opportunity seems to become less and less frequent. Face to face is best because it allows you to read the tones and cues of the customer to understand how to best address their needs.
  2. Telephone – The telephone, more often than not, should be the primary method for addressing customers who are unhappy. Even though the conversation may be an uncomfortable one for you, it will greatly shorten the cycle of assisting the customer. Handling their concern is obviously important to them, so it is best to do it in real-time. If the customer shared their concern with an email or text, it is still better to transfer the conversation to a telephone call unless they specify otherwise. Again, you can better gauge their tones and social cues. 
  3. Email – Emails are great because they give us time to think about what we want to say, calm our emotions (if necessary), and document what might be a sensitive matter. It may also be acceptable if this is what a customer prefers or if they are not available during business hours. But if the conversation starts to feel like it is getting out of hand, schedule a phone call to address the matter immediately. 
  4. Text – You should almost never respond to a text from an angry customer. A text from someone who is angry is often a trap they set to lead you down a path of confrontation and blame that you cannot control. Avoid this whenever possible. Pick up the phone and talk it out with them before it is too late.

LEROY’S Method Of Managing Difficult Customers

Customer Service, Sales Management, Sales Training

Most of us know the legend of Leroy Brown from that old familiar tune. He was badder than this and meaner than that and quite possibly the last person you would want to cross paths with. But what happens when you suddenly have him as a customer and he is not happy. Whether or not you’re from the Southside of Chicago, you better figure out what you’re going to do when you encounter him. Otherwise, you’re going to have a whole lot of trouble. 

 

There are a lot of different reasons why a customer can be difficult or challenging. It isn’t because they aren’t a good person, and perhaps it is due to a mistake that we made. No matter what the cause is, they desperately need to feel heard and in control. You, on the other hand, can use L.E.R.O.Y.S. Method to work through the customer’s issue for a positive outcome. Disclaimer, no one named Leroy came up with this method, but the acronym works on several levels. It definitely comes in handy if you come across a customer who is ‘meaner than a junkyard dog.’ 

 

Listen – Be sure to get in the right frame of mind so you can listen to the customer without assumptions or judgment. Make sure you get all the facts and write down what is being said.

 

Empathize – Put yourself in the customer’s shoes and whether they or right or wrong, how would you feel? Normalizing their emotions can deescalate the situation and make it easier to relate to one another. 

 

Repeat – Repeat back the important facts that the customer has shared. Note that this is not the time for you to share your facts or your perception of the facts. Demonstrate that you have listened to the customer’s issues.

 

Ownership – Make it your primary directive to care for the customer’s concerns to the best of your skill and ability. Let the customer know that you can either fix the matter swiftly, work on the issue or pass the issue onto someone else who is predesignated to handle the matter. 

 

You ask questions – Always ask permission to ask questions first with the customer to demonstrate respect. When you ask questions it gives the customer a sense of control as they tell their story. This helps them develop the peace of mind that their issue is important. 

Solve or pass – Do you understand what the customer wants versus what they need. Can the customer be satisfied with your help? Determine either the solution or the best next step and set the proper expectation with the customer. 

Power Up Your Sales Culture in 30 Minutes

Uncategorized, Business Analysis, Sales Management

What’s the difference between managing a sales team and managing a sales culture? A sales team starts with managing a process and a sales culture starts with managing yourself. Which do you think is easier? That answer can vary depending on your past experiences, suffice to say that self control isn’t easy for most people. That’s why sales culture is left to chance for many organizations. But what is sales culture and why is it so important? Your sales culture is a beefy stew that has all the ingredients that make your sales team what it is. Your shared values, beliefs, and behaviors. It is seen in your strategies, structure, processes, policies and results. It is demonstrated in teamwork, motivation, customer satisfaction, and so forth. And that’s just to name a few. Let’s open a new paragraph and talk about why it is important.

Sales culture is your DNA. Much like your own self, without you simply don’t exist. So, besides your mere existence, here are the important things a sales culture can, and should, do for you. It should support a cooperative and cohesive sales team. It stays focused on goals. It identifies and corrects problems (often quickly). It builds trust and collaboration. It develops a better customer experience. It produces results. If you are deliberate about your culture, it becomes your competitive advantage in that salespeople are just as excited to sell your company as they are your products. It also becomes a great recruiting tool when you are scouting for new sales talent. That’s all good and well, but where do you get started? By spending 30 minutes a week powering up your sales culture.  

Power Up Your Sales Culture

  1. Celebrate a success (5 minutes) – Take the time to acknowledge and praise something for your team or salesperson. This could be hitting a goal, a great customer meeting or simply achieving their KPIs.
  2. Review the goals (5 minutes) – Make sure everyone knows where they are and where they need to be. If someone is off course, help them by showing them how they can course correct.
  3. What is working (5 minutes) – Talk with someone on your sales team about what is working. What is creating success? You’ll be surprised what you learn when you start to listen.
  4. What is not working (5 minutes) – Now, this time, talk to someone about what they feel isn’t working. Stay alert for the trends you might notice. You may find that there is a problem you can fix.
  5. Fix a problem (10 minutes) – Some problems are easier to fix than others, but when you really devote yourself, you’ll be surprised how simple some solutions are to find and implement. If you only fixed one problem per month, imagine what your sales culture would be like in one year’s time. 

CHOPPED For Change: A Sales Culture Makeover

Business Analysis, Marketing, Posts, Sales Coaching, Sales Management, Strategy Planning

Do you know what you look like when you are stressed? We think we do, but other people can see stress on us better than we can see it on ourselves. In fact, for salespeople, we are doing our best to hide our stress, but our body language gives us away. Our jaws stay clenched. Our brow outlines the hint of a scowl. You look like you are ready to fall asleep or collapse under the weight of exhaustion. No fun. You want and need something to change. Wouldn’t it be nice to get one of those makeovers that you see on TV? I admit that I am not one to consult when it comes to your physical appearance, but you know what else looks stressed? Your sales culture.

 

It is hard to hide the symptoms of a stressed sales culture. New sales people last for 12 to 18 months at best. Few, if any, salespeople are reaching their goals. Phones get more attention than the agenda at the sales meetings. There is no sense of sales process. You’re losing customers. You’re not finding new customers. Your sales culture looks like it will collapse under the weight of its own exhaustion. Now, here is a makeover I can help you with. Things need to get better, and they can, but you will need a process to do this. You need to get CHOPPED for change. 

 

  • Communication – You need to start talking more with your salespeople and their customers. You want feedback that is honest and conversations that happen frequently. Be ready to listen and you will hear what you team and the culture needs.
  • Habits – Small habits compounded over time make big results. What small and achievable changes can you make with your team today that will start to turn things around? Celebrate victories? Run a better sales meeting? There is much to pick from.
  • Outcomes – What is it that you really want? It could be sales, higher employee retention, better processes or just better engagement. Stay focused on that goal and, if possible, focus on one or two goals at a time.
  • Process – Change, as a concept, is easy but the work is hard. You need to create a simple roadmap that you can follow toward your desired outcome in case you get lost along the way.
  • Patience – Good things take time. Stay the course. Change is not a pass/fail test and some days it is an endurance challenge.
  • Engagement – Be with your team during the change. Cultural changes are scary for sales people; even when they are good changes (they are a suspicious bunch). Don’t become an absentee leader during this critical time.
  • Desire – Make sure the change is something that create a mutual benefit and everyone will want. No one ever likes working in a negative sales environment, but if you tap into their desire, you have plenty of people helping you with this change.

Do You Have a Great Sales Compensation Plan? 💲

Uncategorized, Business Analysis, Sales Management

It is no secret that most sales managers and owners struggle to find a great sales compensation plan for the sales team. Quite often these discussions lead to analysis paralysis as proposed changes to the comp plan can create even more questions and what-if scenarios. To be sure, salespeople and leadership do not think alike and have a very hard time seeing eye to eye. Everyone has a different opinion about what is fair, so creating the ideal compensation plan is going to be difficult.

There are a lot of variables to consider for creating your plan which is highly dependent on your business model. Do salespeople create the estimates or just sell? Will your customers become repeat customers? How strong are your profit margins and do they vary across products and services? How long does it take to take a prospect to become a customer and then how long until you have a paid invoice? There is no one plan that will work for every company, but there are certain elements that should in every single sales compensation plan.

  1. It is simple – Sales comp plans get really murky when trying to account for every single type of sales scenario. This is especially true when salespeople sell different products and services with different margins. Sale plans, at most, should have no more than 2 or 3 variables tied to. Beyond that, it becomes a tracking nightmare for the salesperson, accounting, and management. It is possible that with a fair plan each person may win some or lose some, but in the end, the net sum is a mutual gain for everybody.
  2. It inspires desire – Successful salespeople should see an easy and attainable path to a 6 figure income that can be sustained by doing a good job for the customers and the company. Don’t create a plan that will starve your team because the good ones won’t stick around for very long. Great salespeople who are appropriately compensated for a good performance rarely quit and never get fired.
  3. It drives the company’s goals – Don’t implement a comp plan that does not align with the company’s goals. If you want to grow the company, you want a plan that rewards new business. If it is profits, then base your rewards on the margin. Be careful to pick a goal that the salesperson can affect.
  4. The salesperson can control it – Don’t create a comp plan based on profits if the salesperson does not create the estimate or negotiate the price. It is out of their control and will often leave them feeling unsatisfied and unmotivated. Great salespeople will always work the comp plan and the more control they have over it, the better results you will get.
  5. It creates trust – Trust is often the biggest gap between the sales team and owners and vice versa. A comp plan identifies activities and results that are easily verified and documented. Commissions, incentives, and bonuses should be a time for celebration for all involved because beneficial results are achieved. If instead, it becomes a moment of stress, criticism, and resentment, then your comp plan may be causing more problems than it is solving. 

How to Help Underperforming Salespeople

Sales Management, Sales Training

There are a lot of people that are simply not good at sales. Perhaps they could be good under the right circumstances, but sales is often a sink-or-swim career. It really depends on what the salesperson is willing to do to achieve her goals just as much as the support she receives from her company. The fact is, no one wants to fail in their sales career. Deep down, every salesperson wants to be thought of as one of the top performers. Every salesperson wants to achieve some level of success. So why is it that so many salespeople fit in the category of ‘underperforming’ and what can be done to correct this? 

Most people wait too long to call attention to a poor-performing salesperson. They tend to appear in environments where accountability is limited, processes are absent, goals are ignored and leadership is weak. The trick is to catch the issues before it is too late and do an investigation before you jump to conclusions. What does the underperforming salesperson tell you the issue is? What does the sales data tell you or what trends do you see? What does their process tell you? What do the goals and results tell you? Once you find the defect, there are a few ways to coach the salesperson back to the path of success. 

  1. Affirm the pipeline – Does the salesperson have enough qualified leads and prospects to work on? Are they focused on the right types of accounts and customers?
  2. Affirm the activities – Is the salesperson doing enough of the right activities in the right way to generate results? Are they over-focusing on one method and ignoring another one? Does it match what other successful salespeople do?
  3. Roleplay – Salespeople will tell you one thing, but when you roleplay real scenarios, you will find out very quickly what they are actually doing if you run it the whole way through. It is very difficult for any salesperson to hide their habits when it is time for roleplaying. This creates great coaching opportunities.
  4. Attend presentations – And listen to phone calls as well. This also creates really good coaching opportunities. Find out where the defect is, help them to see it, and give them an action to correct it.
  5. Listen to the customers – They will tell you what the salesperson is doing right and wrong. Share all of that feedback with the salesperson. Some of it may be difficult to hear, but it will create a pathway for them to grow.