revenue generation

Sales Lessons From The Hot Tub

by Karen Jackson | on Apr 12, 2016 | 12 Comments

Our hot tub died in late February. An untimely death given we were still in the clutches of winter, but my family enjoyed 20 soothing years from it so I couldn’t be terribly annoyed.

“Karen, why are you telling me this story?” you ask. Because of what happened when I went to replace it! There are important sales lessons to be learned. Take a few moments to consider the buyer journey….

I immediately called the store that sold us the tub 20 years ago and that has been servicing it all along. After determining that the repair cost was 50% of the original price, it seemed prudent to purchase a new one, so I asked for a quote to replace it. The sales person emailed me a quote and brochure for the model that was effectively the 20 years later version of the original tub. Then there was silence – no follow up call or email.

Without a conversation or email exchange, he’d left me alone to ruminate…. “Do I really want the same thing? If I’m going to fork out the cash, ought I think a bit grander in terms of features and functions? Yes, this brand was reliable for 20 years. But it was pretty basic in terms of features, with a minimal number of jets and few customizable settings. Surely other options exist.”

But the salesperson hadn’t asked me any questions about my needs or desires, didn’t probe about my priorities or my budget parameters. He already “knew” me and offered a solution based on my need profile of 20 years ago. He also took literally my request for a “replacement” hot tub.

Like a watching a B-quality horror movie, I hope you’re already recognizing the signs of disaster for the salesperson.

Much had changed about me as a buyer in 20 years: My body aches more after skiing – hell, after sitting; I have more discretionary income; I now spend more on services and products that bring me peace, joy or time. Equally important, when I bought my first hot tub, I’d just finished building the house it resides at. I was financially stretched after the investment and went for basic, basic, basic on the hot tub. My needs and desires today are entirely different.

Left alone, I decided to research alternatives, and walked into another local provider. Hot tubs are a luxury item and this salesperson understood that completely. (That’s why 20 years later, they’re referred to as “spas.”) “Tell me about….” He said. And then he began to explore my pain points, desires, ideal outcome. He asked me questions, offered product choices that mapped to what he’d heard from me, and relayed a couple of purchase stories about clients similar to my profile. An hour later I walked out with a purchase order and he held my deposit.

It’s a B2C story but it applies to B2B purchasing decisions. In B2B, while the “B” represents business, business buyers are real people with emotional needs and personal agendas. Did you spot the mistakes made by the sales person? These are the important takeaways for your sales people:

• Beware of making assumptions about current customers, especially when selling products / services that are not high frequency transactions. You may think you know them, but things change and they won’t always share.
• Always probe for what has changed in the buyer’s universe since their last purchase.
• Don’t assume their request is what they really need or want; probe for pain points, desires and ideal outcomes just as one would for a new customer.
• Cost is rarely the leading decision factor, unless one is competing in a hyper commoditized space.
• Use closing questions to clearly understand concerns or objections, potential new competition, and the vision match between your solution and the customer’s desired result.
• Gain commitments for next steps. Always.
• Never leave a customer alone with a proposal for an extended period of time. There’s no firm rule on timeline, as scenarios differ based on complexity of solution, but anything longer than 1 week is a mistake.
• Follow up is an important element of the sales cycle, both to retain control of the process and make the buyer feel cared for. If you don’t pay appropriate attention to the customer, another vendor will.

If this seems basic to you, reevaluate. I witness sales people for multi-million dollar companies make these mistakes regularly. The good news is that there’s a solution. The development of sales process and play-books that leverage best practices, combined with training and coaching of the sales team, ensures that your company won’t lose the next hot tub – sorry, “spa” – sale.

P.S. I love my new spa. 🙂

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Understanding the Sales Ecosystem, and Why That Matters

by Karen Jackson | on Feb 16, 2016 | 6 Comments

We live within ecosystems, macro and micro, in our private lives and at work. The health of these ecosystems directly correlates to the quality of our experience and opportunity for impact. That’s true at both a personal level (think: relationships, family, community) and at a corporate level (think: people, process & systems.)

When we’re experiencing dysfunction, there’s a tendency to isolate the problem to a single source of culpability. The trouble with that approach is we’re more likely to address a symptom without ever discovering the root cause. While we may alleviate the symptom in the short term, it’s frequently a temporary fix. Instead, if we look at the entire ecosystem wherein the problem exists, we can better identify the multiple adjustments required to return us to high function, and keep us there.

Which brings me to the “sales ecosystem.” It’s comprised of the people, process & systems responsible for revenue generation. When it’s not functioning well – translate: “We have a sales problem” – there’s a strong tendency to blame the sales people and to question their competency and commitment. More often its breakdowns in the sales ecosystem that are causing the sales people to struggle. When that ecosystem is not well understood, we attempt to fix the problem through micro-management, discipline and churning personnel. New team members get hired, but the results don’t change. The only way to a lasting solution is to analyze the ecosystem they work in. It’s there you will find the root causes of dysfunction.

I’m a visual person and prefer to categorize the elements into key “buckets”:

• Target Market Strategy (Customer set, problems they face, how we solve, why they should buy)
• Sales Force Effectiveness (Sales process, playbooks, coaching, messaging, account management, performance management)
• Sales Operations (CRM systems, analytics, tech enablement)
• Talent Management (Comp plans, on-boarding, training, professional development)
• Marketing (Product & pricing, collateral, content marketing, campaigns, lead gen, social media)

Each of these elements is necessary for a sales person’s success, irrespective of the size of the company. The level of sophistication may differ, but the need does not. Once we take this holistic view, we can better interrogate where the breakdowns are occurring. For example, the problem might lay in the lack of sales process, or archaic CRM systems. It could be misaligned marketing, poorly articulated value proposition, lack of training, or comp plans at odds with corporate goals. Most often it’s a combination of issues. Rather than simply hanging poor results on our sales people, we must look at all the elements of the sales ecosystem that are broken and impeding success. If we repair those, we can now fairly assess the competency of individual team members. It’s possible some can’t cut it; they must go. But in my experience, fully 78% of existing sales teams are perfectly capable of achieving quota were the sales ecosystem healthy.

But wait, our micro-ecosystems exist in the context of macro-ecosystems. In other words, there may well be other forces at work causing the “sales problem.” If you’ve dispassionately examined the sales ecosystem and consensus exists that it’s sound, these are the usual culprits:

• Dysfunctional corporate culture
• Lack of vision & values
• Wrong person managing sales
• Sales people performing non-sales related activity
• Breakdowns in hand-offs between sales & operations

If you’re experiencing a sales problem, look to the ecosystem. Start with the premise that it’s not the fault of the team members but the context they are operating within. Shine a bright light on these buckets. It will greatly improve your ability to find solutions to what ails the top line.

Does this ring true in your experience? Weigh in and keep the conversation going.

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Driving (or Losing) Revenue Through Customer Experience

by Karen Jackson | on Oct 29, 2015 | No Comments

Starbucks CEO Howard Schultz famously said the company’s success was not about its coffee, but rather, “It’s about the experience.” These simple words are profound. People (whether in the form of an individual consumer or a business) buy from companies that create a delightful experience. Schultz knew that in any given town or city there was little demand for another coffee shop. But he understood there was a demand for creating a community experience that involved coffee.

The recipe for Starbucks phenomenal growth was in large part due to its focus on the ingredients needed for delight: well-trained and personable staff, wi-fi, music, comfy chairs, attractive display cabinets with fresh food, consistent quality and seasonal menu offerings. Customers came, returned, and increased their spend across product lines – and bought gift cards for friends and family, increasing the number of delighted customers in the most organic way possible.

This experience-centric approach is not exclusive to the B2C world; B2B companies such as Salesforce.com, American Express and Constant Contact leverage customer experience for competitive advantage. They understand that robots aren’t making purchasing decisions in B2B, people are. The context of the company doesn’t eliminate the fact that emotion is a key buying factor.

But too few companies understand the importance of customer experience and its correlation to revenue generation. Companies focus on their sales team’s impact, but not on the myriad of other touch points their firms have with the customer, both pre- and post-sale. And often, when sales people bring back experience issues to operations, they’re met with deaf ears. Ignorance is not bliss, for when the customer experience is ho-hum, difficult, or blatantly negative, there is no incentive for their loyalty, much less to rave to their colleagues or friends about their experience. The door is open to a competitor who offers delight. As Gary Vaynerchuk drives home in his book The Thank You Economy, business leaders better “care – about your customers, about your employees, about your brand – with everything you’ve got.”

A few of my own recent vendor interactions illustrate what goes wrong when leadership forgets (or doesn’t care about) the customer experience:

  • Landscape company’s voice mail greeting: “Your call is very important to us but we’re not in the office right now, so please call back tomorrow.”
  • Empty restaurant at lunch time where the host seated me and my guest at a small table next to the wait staff’s station.
  • Doctor’s office A/R voice mail greeting: “Sorry, the person who takes payment information is out this afternoon; please call back tomorrow.” That was after the invoice instructed me to, “Call the office to pay by credit card” instead of providing an easy mail in form or web payment option.
  • Letter from my credit card company’s fraud department asked me to call but provided the wrong department’s phone number. For good measure, the person I reached gave me the correct number but couldn’t transfer me and said I must re-dial.
  • Countless supplier websites where it’s difficult to find the information I seek.

These experiences send a variety of subliminal messages, among them:

  • “You’re just not that important to us.”
  • “We’re super sloppy about our work.”
  • “Our financials are shaky and we had to cut back on staff.”
  • “We run our business based on our needs not yours.”

A customer who experiences this lack of caring may stay on, but with few recurring transactions and no referrals. At worst, and more often, they run screaming to another provider who understands the power of customer experience.

CEO’s should be up at night with the fear that their customers and prospects are having these experiences. Excluded are companies with rock bottom pricing as their value proposition; the customer consented to give up service in exchange for price performance. But few businesses operate on that model and probably not yours. More likely, you couldn’t afford to sell your product at a price low enough for the customer to forgo the experience. The damage shows up as an inability to convert prospects, low customer retention, inability to upsell and negative reviews. It’s not too hard to find a new landscape company, doctor, restaurant or credit card provider. Or, accountant, cloud services provider, architect, IT consultant, etc. There’s always another game in town.

How do you solve? Begin with an audit of your organization, all departments included, not just those that are customer facing. After all, incorrect invoices reduce the quality of the customer experience. Scrutinize processes and systems to understand their impact on the customer. Review practices and scripts for all customer facing positions. Identify the customer experience you provide before the buyer has even converted from prospect to customer. Ask these questions:

  • In what ways are we hard to do business with?
  • How complicated is it to engage with our people, processes and materials (website, shopping carts, marketing collaterals, forms, etc.)?
  • How closely do we fulfill on our promises? Are we saying we’re one thing but being another?
  • Have we created a culture of caring and are we hiring people with the DNA to act accordingly?
  • Is the customer experience integrated into our values statement?
  • Does everyone in the organization understand their impact on the customer?
  • Have we established and trained everyone in standards of performance?
  • Does everyone that touches the customer have the training and the authority to solve a problem?

Get your entire workforce involved in this inquiry. Empower (and reward) teams to find the issues and solutions. Ask your customers for their perspectives. Make Schultz’s mantra, “It’s about the experience” a core element of your business strategy. You can close the gap between customer fail and customer delight. Revenue growth depends on it.

 

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Dragging Your Feet on Process Stymies Sales Success

by Karen Jackson | on Nov 12, 2014 | No Comments

I’ve wondered why so many CEO’s of small and lower middle market B2B companies insist on buttoned-down processes throughout their businesses, but not in the sales department. They’d never dream of running finance or operations without process. How would they know if their P&L is accurate, receivables contained, billing error-free, service delivery optimized, or cost of goods under control? But when it comes to sales process, there’s a tendency to abdicate control and allow sales personnel to approach their jobs in an ad hoc way. “Go forth and sell” is the strategy.

So, I decided to ask. Three rationales CEO’s repeatedly shared with me were:

  • “I pay these people lots of money; they should know how to do their job.”
  • “We’re struggling right now so how would we know what process to use?”
  •  “Each sales person has a personal style; I don’t want them to read scripts.”

Let’s debunk these arguments and get clarity around the opportunities presented when sales process is implemented and subscribed to.

Truths

At its most basic level, sales process is a methodology for sales people to organize themselves, manage their prospect & customer pipelines, and follow best practices that take a prospect through the sales cycle to deal close.  The old adage “what doesn’t get measured doesn’t get managed” also applies. Even the most senior sales person benefits – process streamlines their work, provides a set of best practices to leverage, and ensures they don’t forget any steps known to secure deals. Equally important, it prevents folks from spending their time on the wrong things. The idea that a successful, highly paid sales person can do without process is as erroneous as the idea that a CFO can govern finance on the fly. What’s true is that successful sales people rigorously follow their own process, but it’s a usually a well-kept secret and not capitalized on by the entire organization.

Second, when organizations are struggling to drive revenue, it doesn’t necessarily mean they don’t know the ingredients for sales success; more often it means there is a highly ad hoc approach to execution. I’ve yet to work with a company where the best practices of how to successfully move through the sales cycle, the “playbook” if you will, don’t already exist. It’s just that they’ve not been identified, articulated, and institutionalized.

The most fruitful approach is to build your sales process internally, with all sales personnel (including sales support & leadership) participating in its development. If you have a marketing department, include them as well. You’ll harness everyone’s knowledge and perspective, gain buy in for execution, and identify what tools are missing for successful implementation. An experienced sales consultant can facilitate, bringing form and efficiency to the process along with insights from how other companies attack the problem. Just beware the consultant who wants to bolt on a process they’ve invented externally. It likely won’t fit your business model and you’ll never get buy in from the team to execute. Wisdom exists on the front line.  It’s just too infrequently tapped.

As for the argument about personal style, process in no way inhibits individuals from showing up as their most authentic selves. Think instead of sales process as a toolkit. It provides a proven methodology for moving through the sales cycle along with the supporting tools needed to make it happen: email templates, case studies, prospect scoring matrices, deal evaluation criteria, etc. Scripts should be included for training purposes, though not to follow word for word when talking with a customer.

Your process shouldn’t be rigid or pedantic, but rather a set of guidelines flexible enough to stray from when a situation warrants. Instead of fumbling around and searching for the way forward with each new prospect, your reps are free to express their personalities, develop relationships, collaborate with customers, and earn trust.

Big Pay-offs

It takes energy and discipline to build, implement and adhere to process. But the pay-offs are many and big. Here are my top 5:

  • Accelerated on-boarding, training and ramping of new sales people
  • Best practices employed by everyone, not just your “A” reps
  • Spotlight shines on where in the sales cycle your reps struggle, making diagnosis and solution possible
  • Individual training needs are identified
  • Improved alignment between sales, support, management and marketing

The sum of these benefits is what every CEO covets: scaled revenue growth.

Top-performing sales organizations utilize well-structured and repeatable sales processes. Not to stifle individualism nor to baby-sit, though it’s true process helps each of us stay focused, disciplined and accountable. Rather, it’s because process identifies, codifies and institutionalizes best practices for sales success, elevating the performance of not just one sales person but the entire sales organization.

What rationales are you falling back on? Take a hard look; they’re standing in the way of scaled revenue growth.

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What Successful Sales Leaders Know To Be True

by Karen Jackson | on Aug 04, 2014 | No Comments

Anyone who’s ever held a sales position can share a horror story, likely 2 or 3, about working for a terrible sales manager.  The bad ones are easy to spot: ego driven, never wrong, hung up on process, excellent at alienating customers.  The successful managers are less obvious, and that’s because the focus is on their team, a team that’s humming, making its numbers and creating life-long customers. And somewhere in between are the mediocre, not necessarily disasters, but certainly not positioning the company for growth. continue reading »

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B2B Sales Management Mistakes That Might Prove Fatal

by Karen Jackson | on Jul 10, 2012 | 4 Comments

Small business B2B sales management is a tough, tough task. (It’s not so easy in big business either.  According to consulting firm Sales Benchmark Index, the average tenure of a new sales leader is just 19 months.) In part, it’s tough because small businesses don’t typically have an experienced sales manager. Often that task is left to the CEO, whose expertise lies in their product or service subject matter, not in sales.

Whether you’re the sales manager or the CEO wearing that hat reluctantly, the challenge is surmountable. Get outside help, subscribe to sales management blogs, and don’t make any of these 9 mistakes:

1.    Hire The Wrong Title.  This may seem obvious but it’s a common set-up for failure. Desiring to lure a big producer, you hire someone with the title “VP of Sales” even though it’s a direct sales role. I’ve yet to see a VP of Sales worth their salt go back to carrying a bag – unless they’re getting a big equity position. (Even then, they may no longer have the stomach for it.) They’ll collect their check from you and wait for permission to hire, you guessed it, a sales person. Instead, get clear about your needs, what makes your opportunity compelling, and go find a compatible person for your organization. He or she is out there; you don’t have to settle.

2.    Fail to Define a Go-to-Market Sales Plan.  “Go sell something” is a poor directive but it’s a pretty standard marching order. Writing a clear sales plan is hard, but essential, work. How else will your reps clearly understand their target markets, ideal customer profile, value proposition, positioning? How can they create smart tactics when they don’t clearly understand the goal? How will you decide where their energy is best spent, which opportunities to seize and which to pass on? Without a clearly defined plan, you’re guaranteed inconsistency at best; chaos at worst.

3.    Ignore Sales Process.  Without process companies fail to capitalize on best practices or manage their resources in the most productive way. By understanding the customer’s buying cycles and creating a related sales cycle with stage specific activities and milestones, you’re able to analyze sales activities and outcomes, take actions that influence buyer behavior, and uncover where sales people need additional support and training. Without process, forget about a realistic forecast; you’re left with lots of wishing and hoping.

4.    Neglect Metrics or Accountability Structures.  The adage “what gets measured gets managed” couldn’t be more true in sales. First identify key performance indicators, then create sales metrics that better influence outcomes, motivate individuals, and make forecasting more predictable. Include your team in developing these to gain buy-in. They’ll understand that by managing to those metrics their success is far more likely than without them. It’s not baby-sitting, it’s management. Big difference.

5.    Treat Your Reps The Same.  The sales manager is a coach. Like any team, the players need different levels and type of attention. Does s/he need help with skills, mind-set, time-management?  You won’t know unless you meet them where they are as individuals, and respond accordingly. Applying the same management techniques to everyone will not create equality; it will create frustration and missed opportunities to grow your team members. Keith Rosen’s book Coaching Salepeople Into Sales Champions offers some excellent guidance.

6.    Substitute Your Comp Plan for Management.  Slashing pay for a poor performer doesn’t solve your performance problem. It simply lures you into a false sense that the individual isn’t costing you too much. You’re kidding yourself. They’re costing you dearly through unexploited territory, wasted energy by support staff, and team morale. If you can’t manage a rep to better performance, release them. Quickly.

7.    Saddle Your Reps with Non-Sales Activities.  Every position has a certain amount of administrative work, but it’s mind-boggling how much non-sales activity small business reps get saddled with. If you want reps to sell, give them time to do so. Look at your processes and identify what activities could be off-loaded to a less skilled, lower paid headcount.

8.    Skimp on Tools.  Are your reps on the road but they’ve no access to your servers through their mobile devices? Are they travelling regularly but don’t have a wireless card to access 3G networks when no wi-fi is available? Are Post-Its, lists, and disconnected spreadsheets substituting for a CRM tool? Don’t think of these items as nice-to-haves. They are keys to productivity, sanity and morale, which make them investments, not expenses.

9.    Undervalue Continuous Recruiting.  It’s really hard to hire good sales reps, and it doesn’t get easier when the pressure is on to fill a spot. When territory is open there’s a tendency for management to settle on a sub-optimal candidate. Be disciplined to continually interview and recruit for the role. Put the word out with business partners and maintain an on-going search through LinkedIn and other social media platforms. Target individuals who work in your industry and court them. They may not be ready to move today, but when something changes, they’ll call you first. Equally important, you’ll learn tons about what the competition is doing and what others perceive as risks / opportunities in the market.

B2B sales management is hard, but essential in an organization’s ability to drive revenue. Without customers, there’s no reason for a company to exist. I can’t think of a better motivation to improve sales management skills.

Please share mistakes you’ve made, suffered, or witnessed so we all can learn.

 

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Surprising Reasons Why Sales Process Matters

by Karen Jackson | on Jun 04, 2012 | 8 Comments

Last week I was talking with the CEO of a small software company struggling with driving revenue. Looking for a possible solution, she wanted my thoughts on where in the sales engine she might zero in. When I mentioned lack of defined sales process as a typical culprit for lagging revenue growth, she remarked, “I don’t see that as an issue for us. I’ve hired very experienced sales people; they certainly ought to know what to do.”

Uh-oh.

Many small-biz CEO’s, particularly those without sales backgrounds, perceive sales process as little more than lowest common denominator management. The rationale is, if they hire seasoned sales people (hard in itself but that’s a different conversation) then they shouldn’t need to create a sales process. After all, isn’t the purpose of creating a sales process really just for baby-sitting?

The answer is no.

At its most basic level, creating and following a sales process does ensure that everyone is following a best practices approach to sales. It also creates a method, particularly if a CRM or other reporting tool is utilized, for sales people to organize themselves, and for management to track and measure activity. All well and good and valuable. But, if that’s the only rationale, then this CEO may be right to think she can do without.

When B2B companies ignore sales process, here’s what they’re really choosing to live without: data. Data to inform any number of strategic and tactical decisions, to identify trends, to help us answer questions like:

  • How well do we really understand our clients’ buying process?
  • Where in the sales cycle are we having difficulty closing?
  • Is there something we could do differently to push our prospects into the next stage?
  • Are we jumping stages therefore finding it hard to close?
  • What’s the quality of our pipeline?
  • How predictable are our forecasts?
  • What danger are we in of elongated sales cycles?
  • Where can the cycle be shortened?
  • Are we chasing the wrong leads?
  • How efficiently are we deploying sales and support resources?
  • How can we refine our tactics for better results?
  • What customer stakeholders are we failing to convince / convert?
  • Do we understand the key moment when a prospect will become a customer?
  • Have we become “proposal happy?”
  • What skills training do our reps need right now?
  • How quickly can we bring new hires up to productivity levels?

Top-performing sales engines utilize well-structured and repeatable sales processes that leverage best-practices and identify true milestones in the buyer’s journey. The process isn’t a baby-sitting tool, though it’s true that the process helps each of us stay focused and disciplined. Rather, it’s because the process provides key data that elevates the performance of the sales person and the entire organization. If you can’t answer the questions above, it’s time to start thinking process.

 

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