Category: Strategy Planning

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. 

Selling On Friday Never Works

Marketing, Strategy Planning

Now that I have your attention, let’s talk about the salesperson implied and perpetual  3 day weekend. You’re reading this because the title got your attention and either you A) agree and are looking to validate this argument with your boss or B) completely disagree and are enraged with such a bold claim. This topic could be the third rail for yours truly and his audience, but let’s look at the issue from both sides.

 

For salespeople who almost always write off Fridays for legit selling activities, I hear you. You’re not the only one who becomes a phantom on Fridays; lots of customers do too. So perhaps we’ll make an appearance to the office in the morning, catch up on the ‘admin’ stuff that makes us look busy in front of our computers, then quietly slip out the back when no one is looking. And if anyone asks, you’re going to catch up on your emails at the local coffee shop. Well, you’re neither wrong nor right about your customers. Some of them have ghosted 👻 and the remaining ones have no interest in a sales call on a Friday any more than you do. However, there are still plenty of opportunities to be had on Friday.

 

What do I say about sales people who are crushing their goals? Well, most sales jobs are never typically a 9 – 5 job. You’re not making widgets, you’re producing results. If you can crush your sales goals in only 30 hours of the week, then so it goes. Most sales managers are more concerned with your outputs than your inputs. You’re paid on salary with a commission and you punch no man’s clock. If you, your team and your superiors are happy with your results, then perhaps Friday is negotiable.

 

Now, let’s see what’s on the other side of this coin. People who stick it out and sell on Fridays are keeping a secret from the non-Friday salespeople and cashing in. 🔐Do you know who else is ducking out on Fridays? Your competitors. Sure, you might have a smaller audience on Friday, but they are a captive audience nonetheless. Most people prefer not to jam pack their schedule on Friday and have a little extra time for a sale call, perhaps more time than any other day of the week. After all, Friday represents 20% of your time to sell. Who in their right mind would give up 20% of their opportunities? 

 

Salespeople who are crushing their goals and still give their best on Friday are the ones filled with passion, desire and motivation. Naturally, they are higher earners as well. They aren’t about to forfeit that 20%. They want more and they will certainly get it. In some cases, they will even tell you that they have their best successes on Friday.

 

So, where do I land on the issue? It really depends. I don’t argue with successful sales people and whatever good or bad habits they have that gets them results. Results speak louder than anything. But why forfeit 20% opportunities that may be at a premium? I guess it really depends on where you are with your goals, the company’s goals and overall results. It’s nice to be rewarded with some extra padding to your weekend, but perhaps put the extra effort in on a few Fridays. You might like the extra sales and income it gets you.

Do You Know Your Customer’s Code Of Ethics?

Uncategorized, Marketing, Strategy Planning

Every business is expected to have a set of rules and to play by those rules when it comes to our customers. We do our best to adopt a service-first business model where we will do anything for the sake of our customers. Customers are, of course, the lifeblood of our business so naturally, we want to do anything we can for their sake to keep them coming back for more. The question is, do you feel like you are playing on a level field with your customers?

We have to accept some hard realities that quite often our relationship with our customers are more one-sided than we like to admit. So, if we tell our customers that they can expect certain things from us based on our code of ethics, then what do you think we would expect from customers? Here are the hard truths about the Customer Code Of Ethics.

The customer demands a deal that is best for them every time.

  1. The customer expects options that are easy to choose from.
  2. The customer wants everything about working with you to be easy.
  3. The customer insists that their demands are reasonable… as far as they are concerned.
  4. The customer will want their money back if they are not happy, even if it is their fault.
  5. The customer believes that they deserve to be right about everything.
  6. The customer believes that it is your privilege to have them as your customer.
  7. The customer expects you to treat them as your most important customer.
  8. It’s the customer’s money so they expect to be calling the shots.
  9. If you cannot satisfy the customer’s demands, they can take your business anywhere else and anytime and leave you a bad online review regardless of whether or not it is deserved.

This is what you are working with whether it is expressed or not, but why is this important to know? Because the customer does not and will not see the sale the same way that you do and they want you to give up control of the sale. Any you will be tempted to do so, but before you give it all away, remember that customers don’t care about:

  • Your profit
  • Your income
  • Your other customers
  • Your idea of a fair deal
  • Your personal problems
  • What motivates you
  • Whether or not you think you are a nice person
  • How badly you need this sale

Remember that a sale should always be mutually beneficial and as a respected sales professional, you should expect to be treated as such. It is good to want to work with customers to get them what they want, but it is also important to stand your ground. If you don’t look out for the best interests of you and your company, your customer certainly never will.

5 Ways to Fix Your Leaky Pipeline

Sales Management, Sales Training, Strategy Planning

A salesperson without a pipeline is like a farmer without seeds; that said, he’s not much of a farmer. Most salespeople understand the need for a healthy and robust pipeline of leads and opportunities so that they can hit their sales goal and earn a good living. Without it, you are stuck hoping for a few opportunities to drip in, but that won’t be enough to quench the thirst for sales. But let’s assume that by now, you already understand what your sales pipeline is and why it is important. Instead, let’s talk about the fact that your pipeline has several leaks that you didn’t even know about. Not only can you fix those leaks, but you probably caused them in the first place.

A leak in the pipeline means that there are good opportunities that have escaped you and you didn’t even know it. If you get enough leads to close then you may find this acceptable, but leaks, in any sense of the word, cost money. These are potential leads that fell through the cracks because there is a deficiency in your process. In other words, we don’t always do the best we can to develop the leads we have been given. Here are a few ways you can fix some of the leaks in your pipeline.

  1. Add more touches to your prospecting sequence – Too many salespeople are ready to throw in the towel after 3 attempts to reach someone. I don’t blame you for feeling discouraged, but you really don’t start making meetings and money until you try 6 to 8 times. In fact, 10 would be the minimum amount of times you should try to reach someone before you decide to move on. You missed a lot of opportunities just by giving up too soon.
  2. Diversify your approach to reaching prospects – So many of us rely on one or two methods to connect with people, and we prefer more passive-aggressive tactics with email because it is easier and faster. However, is this less effective? Prospects will never tell you this, but many actually like to be courted. There are a variety of ways to get your prospects’ attention besides emails and phone calls. Maybe it is time to brush up on your Linkedin and Facebook skills. You’d be surprised at how much a handwritten note sent in the mail can really get someone’s attention. Be creative and differentiate yourself from the start by adding fresh approaches to your prospecting.
  3. Increase your frequency – Sometimes we let too much time pass when trying to get the attention of new customers. I understand that you don’t want to be annoying or pushy, but one of the primary functions of your job is to interrupt people. If you are waiting more than a week for your follow up attempts, chances are you have already become forgettable. Try to schedule your touches in 3-day intervals instead.
  4. Change your message – We condition our prospects to tune out our message as it becomes noise among the other messages they are receiving. Perhaps they just aren’t connecting with what you thought was compelling. There is a good chance that there are customers that are a great fit for you, but they didn’t understand your message and they leaked right out of your pipeline.
  5. Embrace persistence – This is more than adding more steps to your prospecting sequence, this is about adopting a mindset of not giving up. Believing in yourself and acting tenaciously gives you the drive to explore the potential of every opportunity you receive. Make sure you give the opportunity your best shot before you let it leak out of your pipeline. You’ll be surprised at how many more yes’s you are going to get by pushing onward.

For more help developing your pipeline, consider sales training and coaching with Scorecard. We help create great salespeople through training, technology & coaching. Find out more and sign up ,here.

5 Tips To Turn Sales Pain Into Progress

Marketing, Sales Coaching, Sales Training, Strategy Planning, Uncategorized

No one likes pain because, well, it’s painful. It’s unavoidable, unpleasant, and unappealing. Most people don’t see the benefit of pain and so they wait it out and suffer through it just to wait and get back to where they were; possibly exposing them to the same risk of pain again. But what if pain, and whatever is causing it, is your opportunity to advance to something new and better? Pain is both your mind and body’s way of telling you something has to change. The same could also be said about the universe. The pain will not go away until you do something different and change whatever caused the pain in the first place. You need to expect a certain amount of pain in order to grow.

The world of sales is full of pain. We get rejected from prospects. We lost a deal we thought for certain was going to close. We are behind in our sales goals. The volume of new sales calls has become painfully small. It all comes with the territory, but if you want to make progress as a salesperson then you have to deal with these pains and turn them into opportunities. Challenge yourself to embrace the things that trouble you and use them to your advantage.

  1. Look for trends – Reflection is the first step in dealing with pain. How did you get here and what does it mean. Most importantly look for the trends and you will likely see yourself as the common denominator. The good news is that once you identify this, usually making a little change can make a big difference in your sales.
  2. Put it into perspective – We spend our entire lives seeking out pleasure while avoiding pain. That’s the name of the game. But pain clouds our perspective. For example, when you have a really bad headache, we forget that the other 95% of our bodies feel just fine because we can only focus on the pain. In sales, don’t get too caught up in the sale that didn’t close. Recall your victories and put your focus and energy into that and you will help your new sales opportunities to self actualize.
  3. Try something new – Most of us approach the same old problem the same way almost every time. We are creatures of habit. We all act like hammers looking for a nail even though there are a lot of screws in the world. It is time to challenge yourself to try something new for whatever is causing your pain. Don’t get caught up in whether or not you made the right decision in what you will do differently because experimentation also leads to growth. Switching things up in sales can lead to some pretty cool discoveries.
  4. Rise above your inner critic – I don’t know why each of us was programmed with a sense of doubt, but we have to deal with it nonetheless. Pain can make you stronger, but it can also make you weaker and most times that choice is yours. Pain can be hurtful, embarrassing, and discouraging, but it doesn’t have to be limiting. You have to remind yourself that when you get knocked down, you have to get up, brush the dirt off, and try again.
  5. Seek a mentor and learn – You’re not in this alone and you are not the first person to deal with this pain. In fact, there are countless others who confronted this pain and defeated it. Don’t keep your issues bottled up. No one expects you to. Instead, find someone to confide in whom you respect that may be able to guide you to a solution based on their example and experience. Every salesperson should have at least one great mentor or coach to help them through the bad times and celebrate the good times.

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.

5 Easy-To-Use Tips To Control The Sale

Sales Coaching, Sales Management, Sales Training, Strategy Planning

Do you ever get excited going into a sale knowing that you have a plan to close the deal and everything is going to go your way and then Wham! Before you know it, the customer is beating you up on the terms and price and has full control of the sale. You don’t want to lose this sale and you tend to be a people pleaser, so you are willing to concede and do whatever it takes to make the sale. But you have given over full control to the customer as they bark orders at you and tell you how it’s going to be. It’s not much of a sale at this point as your profits are quickly disappearing and you are creating what will probably be a difficult customer to work with. But how can you get control of the sale to get the terms back in your favor and still close the deal?

Don’t be confused; controlling the sale does not mean you go from being passive to aggressive. Controlling the sale is all about learning how to be assertive and persuasive. This may take some practice, but it is not as hard as you think if you can apply these easy to use techniques that level the playing field for you and the customer so you can both achieve a win-win deal.

  1. Listen – Don’t be so quick to speak. When salespeople sense that they are being backed into a corner, they begin to nervous talk and give concessions without even defending what is already a fair deal. Silence can be your friend and it gives you time to think instead of defaulting to discount mode. ,,Read more here: the Power of the Pause.
  2. Ask Questions – Whoever is asking the questions is the one who is controlling the conversation. It is not the one who is doing the most talking. When you feel yourself losing control of the sale because a customer is asking for more than what you offer, ask questions to let them justify their position. Why is that term important to you? Is that the only issue that is important to you? Is this issue a deal-breaker?
  3. Challenge Objections – All sales objections begin as assumptions, and more often than not these assumptions are incorrect. The price is too high. I need it delivered sooner. I need you to customize aspects of your product. Rather than accepting it as truth and agreeing with them, challenge them to defend their position. “I understand your concern, but what is it based on?” ,,Read more about defending your price here.
  4. Compare Options – When customers negotiate, they will make you believe that they have another option that is better than yours to pressure you into concessions. Instead of focusing on just one aspect of the deal, compare each aspect of what you offer to the customer’s alternative to help control their purchasing decision.
  5. Trust The Value – It is okay to be flexible and negotiate terms with your customer so long as you are the one controlling that process. You cannot enter a sales discussion doubting any of the value that you are bringing to the table. This is as true for yourself and what you sell. If you, at any time, demonstrate a lack of confidence in what you are selling and how you are selling it, you create a sense of doubt in your customer and they now feel that they are not getting the best deal. Believe in what you sell and the customers will follow your lead.

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