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Fix Sales: Could a Business MRI (BMRI) Make Your Sales and Profits Healthier?

 

By Mark Allen Roberts

The new year is underway and soon we will be ending the 1st quarter. When I ask CEO’s and Sales leaders: do you feel you will achieve this year’s plan? I hear I hope so, I think so, and more often than not I hear I’m not sure, it’s too soon to tell. I recently spoke at the NAW event in Washington DC and asked a room of CEO’s and business leaders to raise your hand if you felt with 100% certainty your sales organization would hit your sales and profit objectives in 2020…. not one hand was raised. Will 2020 be like the movie Groundhog Day and be another year like last year where more sales team’s missed quota than achieved it? Or will 2020 be the year you make strategic adjustments to transition your sales organization? In this post we will discuss how to run a BMRI for your business now and detect problems before the end of year when they can become terminal.

 

There was an interesting article in the Wall street Journal some time ago about a reporter who wrote about healthy lifestyles discovering he had a blocked Carotid artery although he was not currently showing any symptoms. As I read this article it reminded me of how many business owners, CEO’s and sales leaders I speak with have deep issues in their businesses that need some kind of an early warning, a business health MRI maybe to identify issues today that could be potentially crippling  at year-end or fatal in the future.

 

Meet Thomas Burton, age 68 a journalist covering the medical field, and he has spent years writing about strokes, most of which are caused by clots blocking blood flow to the brain. Now he faced a question as he shared in this article: “Am I going to become a weird punch line? As in: Did you see that the guy who writes all those stories about strokes just had a big one?” He felt healthy, ate right and exercised. He considered himself a young 68, but inside his body small fat cells were traveling in his blood and forming a clot.

 

He had none of the common stroke symptoms like:

 

Slurred speech

Temporary loss of vision

One side of face droop

Arm or leg weakness

 

As I read the article I learned 700,000 strokes a year are caused by blood clots and 130,000 of them end in death according to the American Stroke Association.

 

A simple scan, an MRI saved this reporters life. I was so moved by this article I signed up for a body scan myself.

 

This led me to a a couple of questions:

 

What if we could provide a scan for the health of your business today and predict the future health of your business?

 

If we used a scan of your businesses health today could it help us prevent your business having a stroke and or going out of business?

 

Would you do it? Why or Why not?

 

What if we had a Business MRI (BMRI) and we could scan your business and share specific areas that need to improve before they become fatal?

 

For over 30 years of my career I was hired to “fix sales problems”. The first thing I would do is assess various parts of the business, understand the voice of their customers today, and determine the organizations’ overall health then work with the leadership teams to improve any areas that are not performing or could be a risk for the organization in the future. This process I used was the same but the time to complete it varied from 3-6 months to a year. (but that was many years ago) As a leadership team we would find, divide and concur the data and I would conduct four legged sales calls with the sales team and visit all the customers who represented 80% of the profits. I was assessing the sales team skills, beliefs, motivation, process, strategy alignment and the tools they were using. I was also capturing the voice of their customers today. Luckily today we have the technology and systems to complete a business health scan (BMRI) in less than three weeks.

 

What if, buried deep in your transaction data and your sales team itself are the answers you are seeking?

  • How effective are we?
  • How much more effective can we be?
  • How long would it take?
  • Does my sales team have the beliefs, motivation, skills and systems support to drive the sales and profit growth I need?

 

Could clots be forming that can cause a sales and or profit stroke in your business or worst?

 

If we could run a diagnostic scan of your sales and your overall business health what would we look for?

 

I would suggest seven (body) parts of your organization to scan.

 

Voice of your customers

 

Net promoter score

Customer satisfaction score

Company knows why they win and why they lose sales

Understand your customer’s buying criteria today

Understand your customers buying process today

Understand the business of your customer’s business

 

 

Systems and Processes

 

Sales Plan

Sales Process that is buyer centric

Systems to support profitable growth

Sales skills and competencies

Is the CRM your single point of truth or a box of lies?

Sales Support

Excess capacity

On time shipments

Shipment accuracy

 

Marketing

 

Web page rank

Web bounce rate

Web content in the form of problems you solve

Testimonials

Lead generation

Quality of leads generated

Cost per lead

Lead rolling 12 months close rate

Case studies with economic impact

Social Media presence

Digital marketing competence

Ease of online engagement

Content

Content, thought leadership positioned in key channel associations

Leads from events

 

 

 

Sales support

 

Ideal customer profiles

Buyer personas by channel and product type

Sales Enablement

Sales tools

Sales Management Skills

Sales Manager Coaching Mastery

 

 

Sales Mindset

 

Beliefs of your salespeople about selling

Motivation of your salespeople

Sales team Accountability

Will they sell?

Emotional intelligence

Figure it out factor

Empathy

Beliefs about your pricing

Beliefs about your quality

Beliefs about the economic value your team delivers

 

 

Sales Skills

 

Qualifying

Discovery

Value based sales skills

Product knowledge

Follow up

Build and leverage relationships

Account management

Project management

Problem solving

Critical thinking

Do what you say you will do

Listening, active listening skills

Business acumen

Market knowledge

Understanding of your customer’s customer

Understanding of how your customer makes profit

Negotiation skills

Closing skills

Understanding of company strategy

Understand sales behaviors that support company strategy

 

 

Metrics and Data

 

On boarding new sales associates and time to revenue

Sales skills assessment

Sales training content, time and delivery method

KPI’s (leading and lagging indicators)

Sales $’s

Cost of sale by customer

Sales growth trend last 24 months

Cash flow

Average sales profit last 24 months, total, by region, by salesperson

Net profit by customer

Share of wallet by key customer

Customer retention %

Customer defections $’s

Net new customer $’s and profit

Net new product and or new service sales and profits

Price override %

Cost of new customer acquisition

Sales turnover (planned and unplanned)

Sales close rate

 

Once we scanned your organization for all of the above, we could diagnose the overall health of your business today and predict the future success of your organization. We are establishing your current state.

Most of the teams I have served have a much clearer vision of their future state they desire than the current state they are working in today. We look at your business and customers today then create a plan, connect the dots between today and where your team desires to be,

 

What would you add to the list?

 

What else would you want to diagnose?

 

How healthy is your business?

 

How healthy is your sales and profits?

 

Are your salespeople doing the sales behaviors you need today?

 

I hear some of you saying: “Wow Mark that’s a lot of work, I am already buried in work and so is my team how will we find the time to gather this information?

Or another common concern: ” This sounds like a pretty big change and we are not typically strong at change management.”

If you have been following any of my articles or attending webinars there is an assessment tool and process to gather the above data points. We leverage technology to gain the insights we need to shape a healthy business plan for the future.

If you want to DIY your assessment have at it. Before the tools we available today I helped teams gather this much needed data and it typically took 6-8 months.

With the rate of change we are experiencing in this VUCA economy by the time you gathered everything yourself it may not be relevant anymore.

The other consideration you must assess is the organizations culture if you want to DIY your sales and profit health project. Your organization culture is like the blood flowing throughout your body. It touches every organ or as in this case every process and system.

 

Culture 

Innovative or Protect the Fort?

Comfort with change?

Leaders have fixed mindset?

Matrix structure, top down, very flat?

Decision making process?

Leaders open to new ideas or do they have deep biases that may slow down the process?

 

My recommendation is you want a 3rd party to give your business a BMRI so the data is not biased.

 

Be prepared some of what you learn will be great and confirm your beliefs and some of what your 3rd party discovers will make them seem like a Heretic. There is a tremendous value of hiring a heretic when it comes to adding value to your bottom line.

Keep your focus on the desired future state, processes and customers.

Create cross functional teams to help you get there.

You have a smart and experienced team give them data and watch them shine.

When you find the above you will complete a health assessment of your business.

You will have all the data. Where the art of this comes in is seeing all these puzzle pieces and knowing how to assemble them into a plan your team can execute that drives short term gains while establishing long term profitable sustainable growth.

 

If you want help let’s chat.

 

I can help you answer the above questions in 3-4 weeks and establish your current state, then together we can collaboratively build your sales and profit health plan.

 

 

 

 

Fix Sales: Is Your CRM a “Box of Lies”?

 

By Mark Roberts

More and more sales teams are investing in a CRM to improve their sales effectiveness and drive more revenue to the bottom-line. (or that’s what the business case you wrote said to justify the investment) The right CRM becomes your single voice of truth to determine sales pipeline, sales behavior and customer activity. Salespeople often push back because the tool was thrown on them and not sold to them on how it could benefit them. Most salespeople believe a CRM is basically one more way for the organization (big brother) to watch them and challenge what they do. Sales organizations are already the most measured business team in most organizations. One-way salespeople push back on a CRM is making it a “box of lies”. In this post we will discuss why sales teams often hate CRM’s, the value a good CRM will deliver and how to tell if your current CRM is just a “box of lies.”

 

I was watching the Jimmy Fallon show not long ago and he had a guest Mellissa McCarthy and they played a game called box of lies. If you are not familiar with this game click here and watch a short video. The game is set up with two players facing each other and they have a small window to make eye contact. One player picks a box from the shelf and opens it and can describe what they see or lie. The other person must try to guess if what they are being told is the truth or a lie.

 

As I watched this show it reminded me how this is often how sales leaders feel when they look into their CRM systems trying to find valuable insights about the accounts their salespeople are working with.

 

Working with senior sales leader I often hear two common concerns about their CRM:

 

  1. The doubt the accuracy of the data
  2. They struggle to have their sales teams use the tool they invested in

 

Salespeople who have the right CRM for their application and have received training on how to use the technology to become more efficient and effective love their CRM. The CRM is the first thing they open each day, they can enter updates from their cell phones and they have seen how this tool helps takes the complexity out of account management and helps them close more sales faster.

 

However this is not the norm in most sales organizations I work with. Salespeople do not use the CRM in many cases and if asked they share they hate it.

 

Why?

 

If we seek the root of a problem we can often better understand it and fix it. To fix this sales problem I Goggled: “Why Sales hates CRM systems” It seems I am not the only one who has noticed salespeople hating their CRM and wanting to know why.

 

Why sales (don’t) hate CRM, but why they won’t use it 

Why do salespeople hate CRM? 

5 Reasons Salespeople Hate CRM 

Why do your Sales Reps Hate your CRM 

Why salespeople hate their CRM (you tube)

Why Your Sales Reps Hate CRM Software [Infographic]

 

I read these posts and watched You-tubes and identified 5 common reasons salespeople Hate CRM.

 

  1. Trust – they believe it was implemented to check on them, hold them even more accountable. They believe its one more way for big brother to watch them and challenge them and their sales leaders have no idea what selling is like today.
  2. Written for sales managers not salespeople– this came up often and I hear it from salespeople I work with and coach. The tool their leaders invested in (often in a big way) does not add any value to the salesperson. The tool they use, if they use it, was not designed for the user but the manager.
  3. Access– some salespeople complain their CRM system is not accessible when they are in the field working with customers. Many complain they cannot update account data from their cell phones. One team expressed the concern their CRM is so poor they spend hours entering the updates and it is lost.
  4. Not easy to learn or use– many of the salespeople I coach share they received little if any training on how to use their CRM and if they did receive training it was on the basics and not real life examples of what they do in a typical day.
  5. Adds more time and complexity to their day not efficiency – this comes up in every conversation. Some CRM tools have such a poor user interface they just add frustration to the salesperson’s already frustrating and stress filled day. As one seasoned salesperson shared with me off the record: “ What does my CEO and Sr. VP of Sales want? They said it very clear in our last meeting. They want more organic growth, more customer face time, more net new business and sales selling based on value not price. The trouble is the CRM system we chose is not adding efficiency to my day it is taking time from the hours I could be selling.”

 

One article shared the below quote:

The valuable data and sales process flow reviews and improving your sales forecasting you hoped to gain from the investment is now a bunch of meaningless data that is not worth the time it took a salesperson to enter it.”

 

Another article went on to share:

“Salespeople should be doing one thing and one thing only: talking to prospects and building real human relations in the process. Traditional CRM systems are keeping them away from that. Instead of facilitating relationship building, CRM’s hold sales people from their prospects and force them to log calls, update contacts, attach emails and other mindless admin work humans are not meant to be doing.”

 

What good is a tool if you need to help it to make it help you?

 

One last quote from SalesBox.com (I promise):

We have personally discussed CRM with thousands of people worldwide. The general feedback from the salespeople is usually unprintable, we usually say they get something dark in their eyes when you mention the word CRM”

Why have a CRM if a sale hates them so much?

What are the key benefits of CRM software?

The right CRM can help your sales grow profitably with:

  • Improved efficiency
  • Improved customer retention
  • Get greater customer satisfaction
  • Increased sales productivity
  • Do better forecasting and reporting

Former CEO of General Electric, Jack Welch insists that the secret to making it to the top of your industry (and staying there) starts on the inside:

“An organization’s ability to learn, and translate that learning into action rapidly, is the ultimate competitive advantage.

I thought this quote was a compelling reason to have a CRM:

“Digital transformation is no longer an initiative used by progressive companies to increase efficiency or gain a competitive edge over their peers—it is a requirement for all businesses to thrive in the future.” – Gartner

How do you know if your current CRM is the wrong CRM?

  1. Sales Managers have to force salespeople to use it
  2. The tool is not accessible 24/7
  3. The tool is not accessible on mobile devices
  4. Sales is not updating account records timely
  5. You have zero confidence in your sales pipeline
  6. Salespeople are spending less time selling and more time with data entry

So how about your team?

Are you looking for a CRM?

Does your sales team hate your CRM? If so, why?

Did your CRM training include applications for typical sales activities?

Did your sales team receive CRM training?

I purposefully did not call out any CRM Software companies in this post. You need to find the right tool for your sales process. As Covey said: “start with the end in mind.” Why do you want or why did you buy the CRM you have? We need to help salespeople by improving the user experience and with training. Fail to have a good user experience and fail to train your sales team…you will have an expensive box of lies.

To close, I want to share I do not work for any CRM company. I would also like to share I am a huge fan of having a CRM if it is the right application and interface for your business and supports a better buyer experience and adds efficiency and effectiveness to your sales team.

 

What is my advice if your sale hates your CRM and they are not using it?

 

  1. Understand your current sales process and make sure your CRM matches how your salespeople sell, or are supposed to sell today.
  2. Ask the users what they want and need to make the CRM more useful.
  3. Continuously train and facilitate peer to peer sharing of best practices
  4. Coach your salespeople
  5. Share with your sales team how you will use this tool to identify needed new sales tools and job aids based on the data they are entering.
  6. Share how critical it is to enter account updates and why we win and why we lose sales and the role that data will play in the future

Increase Your Profits? Show Me Your “Whale Curve”

 

On a scale of 1 – 10 (one being not strategic at all, ten highly strategic) how strategic would you say your pricing is with your customers?

Do your sales teams’ price your products and services based on cost plus or value?

Do you have price tiers and discount structures?

Do you price by market or do you have one price for all the markets you serve?

Do you know what percentage of sales transactions had price overrides in the past twelve months?

If these questions make you pause or feel a little nervous, you are not alone. Far too many companies are breaking even and often losing profits on the majority of their customers without realizing it.

There is a solution. Every business has a Whale Curve.

One of the quickest ways to stop the bleeding and improve profits is using your Whale Curve to identify accounts that are not profitable and create strategies to make them profitable.

For years we have heard how the Pareto Principle, or 80/20 rule, can be seen everywhere in sales results. In business, 20% of your customers produce 80% of sales. Within those customers, 80% of profitable sales are often generated by only 20% of your salespeople.

Unfortunately,even Pareto’s 20% number is shrinking to 17%, and we are experiencing a shift with up to 90% of sales now being delivered by 10% of customers for some companies.

We need more than Pareto to fix this sales and profit problem.

Traditionally, Sales Leaders work with sales teams to create strategic account development plans for LARGE key accounts.

We help our LARGE accounts improve their sales and profits, and
we grow top line sales in the process. This model has worked for years. When key account sales increase, CEO’s are happy (OK, happy is not the right word because we
can always sell more, am I right?), but if we bring in the sales and profit numbers they require, they have happier board meetings.

That strategy addresses LARGE key account sales, but what do we do with the smaller and small accounts that often create a great deal or equal amounts of activity and cost of sales but contribute little if any to the bottom line?

In April of 2019, I was asked to join SPA and SPASIGMA as the Vice President of Sales and Marketing. Since 1993, SPA has helped their customers improve their bottom-line profitability leveraging pricing analytics with proprietary tools, processes, and training.

When I am asked to serve a team and their customers I prefer to start in the market and
listening to the voice of their customers. During my first week with SPA, I met with one of our customers and listened to our team share how we have been on a strategic pricing journey with this account for the past few years. This key account’s customer price analysis and strategic pricing recommendations has resulted in an incremental $110,000 to the bottom line per month.

In the next meeting, the numbers were even more impressive: SPA’s work has added an
additional $26 million of incremental profits since starting their strategic pricing journey in 2015.

I have always focused my energies on helping sales teams with sales enablement, capturing the voice of their customers, and teaching their organizations to serve their customers and markets with a value based sales and price strategy. As I continued to have meetings with client partner after client partner, I grew surprised how little I knew about the Whale Curve.

Leading sales teams, I have always had several reports at my disposal. These reports show sales, sales by customer, sales by market, sales by region and sales by salesperson.

Each of these reports also showed profitability by customer, market, and salesperson. In addition to growing top-line sales, I often challenged sales transactions made at profits below targeted market pricing.

The one report I didn’t have was the Whale Curve.

Knowing what I know now, I wish I had because it would have been helpful.

What is this Whale Curve?

The Whale Curve shows you accounts where your team is making healthy profit margins and accounts where you are breaking even and where you are losing profit dollars with each transaction.

In a whale curve, customers are cumulatively ranked by profitability, from highest to lowest.The resulting curve is said to look like a whale coming out of the water.

Looking at the right side of the curve can be alarming because you can visually see the impact of the bottom customers draining your overall business profit.

According to Harvard Professors Robert Kaplan and V.G. Narayanan, the 80-20 Pareto rule does not apply to customer profitability for organizations.

The whale curve for cumulative profitability reveals that the most profitable 20% of customers generate between 150 – 300% of total profits.

Let that sink in a minute….if that’s true why is your business not more profitable?

The middle 60 – 70 % of customers break even, and the least profitable 10 – 20% of customers cause a decrease of 50 – 200% of total profits, leaving the company with its 100% of total profits.

Put another way, your bottom 20% of customers is draining your peek operating profits and in so doing you realize the profits you see today.

On the profitability whale curve, the difference between the highest point of the chart and current company profitability (100% profitability) represents unrealized profit potential for the company.

The average organization has both customers having a positive impact on company profitability, and customers who negatively impact potential profits of a company by generating less revenue than costs – creating a negative effect on company profitability.

Often even managers who understand the issue are not able to easily distinguish between
customers belonging to these two groups because they lack a price analytic tools that include the cost of sales.

The total sales size of customer does not always show the customer is automatically the most profitable; in our experience, the largest customers may turn out to be the most unprofitable.

How did customers not know?

When a manufacturer and or distributor has 1.000’s of customers and over 40,000
SKUs over time, 100’s of salespeople, various price programs, numerous product groups and many locations you would be surprised how often we see it.

How does this happen and why didn’t they see it in their monthly reports?

Is this something that happens slowly over time or is it something in response to new
competitors?

What is the best way to solve this problem?

How long does it take to identify customers and their profits and plot them on the Whale
Curve?

What are the best practices for improving profitability in managing the whale curve data?

How long does it typically take from the day we share the whale curve data to improved
profitability?

How much profit should a company expect to improve in the first 12 months?

How do sales teams react to this data?

Are most sales teams trained and capable to negotiate price increases?

Why not just cut the tail off the whale? Wouldn’t that quickly fix the problem?

Is the pricing analytics exercise a one and done exercise or something that happens over the years? Why?

What I am finding is the Whale Curve is a valuable tool to help companies realize what
accounts are driving their profits, what accounts are at break-even, and what accounts are eroding your profits. In essence, the tail of your whale is eroding your total gross margins the longer it is allowed to swim freely without price guidance and a strategic pricing methodology.

As I learn more about the Whale curve and pricing analytics, I will post content so we can all learn how to improve our profits and the bottom line in the hyper-competitive markets we serve today. We will answer the above questions and many more to help you and your teams improve your profits and gain a higher return on the value your organization provides.

Have you heard about the Whale Curve before?

If so, what did your team do to improve your profits?

Did you cut the tail off the whale or did it take on a new shape over time?

What are some other applications for the Whale Curve that can help us make better decisions?

Are there other cost considerations companies are not considering when they build their Whale Curve?

Add Stardust To Your Sales Training

 

 

How effective is your sales training today? Does your sales training prepare your salespeople to have commercial conversations with customers and prospects in today’s market? How long does it take after completing your sales training do you see trainees create new revenue? The sad reality is most sales training does not produce the results senior sales leaders want and expect. Most “sales” training is actually “product “ training from my observations. Very few sales training programs are leveraging learning science in their training program and course designs and therefore they are destined to fail and not add value. In this post we will share how to fix this common sales problem by adding a little Stardust to your training program.

 

Labor day weekend my wife and I went to New York City to celebrate our 33rd wedding anniversary. We stayed at a wonderful hotel near Broadway the Citizen M and we enjoyed the play Wicked. We visited a fun dueling piano bar as well as the fun Chelsea market.

 

What was most memorable was having breakfast at Ellen’s Stardust Diner on Broadway. As we walked around New York City we determined where we would eat by the length of the lines waiting to be served. The Stardust had a line no matter what time of day you walked by.

 

Once seated we quickly understood this will not be a quiet breakfast. All the waiters and waitresses are graduates of theater programs from all over the world. One after another they performed famous songs from Broadway performances. The music was playing the MC was announcing the next act and at one point confetti was falling.

 

At one point in this entertaining breakfast the MC shared that he was going to pass a bucket around for tips. Each day the tips are divided among the performers and they had to use them to improve their skills with acting lessons, voice lessons and so on.

 

Each day, everyday, all day, the waiters and waitresses practice their skills while serving customers and possibly producers and agents looking for the next star.

 

The results of this program you might ask?

 

The Stardust is the 3rd busiest restaurant in North America. The waiters and waitresses consistently win roles in Broadway plays. The young lady in the photo above will be staring in the next production of Evita.

 

As a sales trainer most of my career, I sat there amazed at how well designed the Stardust is to recruit and train our next stars. The Stardust strategically designed skills development into their program and the waiters and waitresses also own their continuous improvement with additional courses personalized to their specific needs and future roles.

How do we add Stardust to your sales training program?

 

  1. Practice, Practice, Practice
  2. On the Job training and reinforcement
  3. Trainees own continuously improving their skills
  4. Trainees are doing their craft not just learning about it
  5. Producers frequent the Café and recruit the best demonstrated talent
  6. Skills are determined before the role is offered
  7. Everyone must audition, be assessed if you will to enter the program
  8. The experience is fun
  9. The experience was designed to produce stars
  10. The experience consistently produces stars

 

Let’s go back to the questions I asked earlier…

 

Is your sales training working?

 

Sadly 50% of salespeople receive no sales skills training whatsoever. Some receive product training. If you have a sales training program congratulations for winning senior leader support. From my observations over the last 36 years training and coaching salespeople, most sales training programs would score a 6 out of 10 in effectiveness. Most sales training programs I have observed will fail by design.

 

Not spaced learning over time

No peer-to-peer engagement

Instructor led lectures from subject matter experts not trainers

Little if any interaction

No on the job application exercises

No negotiations training

Little if any practice and role-playing

No human-to-human communications skills development

Little if any market training

Little if any business acumen training

Content is not designed to be stacked

No sales manager training for skills like coaching trainees once deployed

 

Very quickly 90% of what your trainees receive is forgotten by design.

 

Does your sales training prepare trainees for commercial conversations with customers and prospects?

 

From my observations most do not. Most sales training programs are heavily weighted in product and how to apply the product technical training. Most sales training programs do a poor job of preparing salespeople for human to human conversations in skills like qualifying opportunities, uncovering buyer goals and problems and more importantly teaching your sellers how to connect the dots to what they are selling to the financial gain it provides the customer. Most trainee’s leave training with a lack of understanding how their future customers make money and what are the key levers to pull to help their clients.

 

How long does it take for a trainee to start adding measurable value?

 

From my observations most trainees leave the drinking from the fire hose sales training experience and start adding measurable value in 18-24 months. Most trainees learn on the job practicing on customers and failing often. It should not surprise us when we see up to 50% of trainees leaving in their first 4 years. Couple this with the fact they report to sales managers who likely were never trained in skills like coaching and mentoring.

 

It’s time our sales training programs leveraged what training science has taught us. If you would like to learn what the future of sales training may look like feel free to download my recent EBook: 17 Training Innovations For Relentless Sales Improvement.

 

 

How do you measure the success of your sales training program?

 

Does your sales training program need fixed?

 

How long should it take for trainees to add value?

 

Does your sales training use spaced and stacked learning designs?

 

Does your organization have a continuous learning culture?

 

Do you offer personalized learning for your current sales team?

 

Does your program assess the skills motivations and beliefs of your trainees?

 

It’s time we leveraged what learning science is telling us and apply it to our sales training programs. Companies who do have sales training need to start seeing an ROI for sales training and much sooner.

Accountability is not a 4 Letter Word When Fixing Sales Problems

 

 

Are your salespeople accountable? When I ask you that question what is the first thing, first emotion, you feel? Why do you think that is? Did less than 60% of your salespeople hit or exceed their sales goals last year? Has someone on your senior management team said: “ we need to hold our salespeople more accountable “? How do we improve accountability and achieve the profitable sales growth we want and need?

 

If you have experienced discussions about sales accountability lately this post is for you and your team and you all need to read: How Did That Happen by Roger Connors and Tom Smith of the Performance Group.

 

I was asked to help a company whose sales had stalled for the last five years. In the first senior management team meeting I attended I heard:

 

The furious young President and CEO shared: We need to hold our regional sales managers accountable to their growth goals”

 

Marketing quickly chimed in: (or threw kerosene on the fire…you pick): Why can’t our salespeople follow up on the good leads we send them, if they did we would be hitting our numbers?”

 

Engineering decided they had best pile on: Why can’t sales sell the innovative new products and features we launched”

 

Which triggered the CFO to look up from his laptop and share: “ We need to start getting a return on all the investments we made to grow this business

 

The COO needed to contribute; Why can’t sales provide accurate forecasts? Its killing our manufacturing efficiencies, inventory costs and on time shipment goals”?

 

The Partner from the Private Equity Firm who is now attending meetings due to poor financial performance added: When will we see results? What specifically are you doing to turn these results around? Do we have the right salespeople?”

 

Their HR Vice President added: Our salespeople who work from their homes need to stop cutting their grass and golfing and get out in front of customers and make some sales, they need to put in 12-15 hour days like we do”

 

I wish this was a rare meeting and the comments were unusual…but they were not and unfortunately I have heard the above or something similar with many of my past clients. Everyone assumes the solution is sales just needs to work harder and become more “accountable”. Some managers assume salespeople hate to be held accountable, as if it will somehow hurt their motivation. Nothing could be further from the truth.

“Top Performing Salespeople Hold Themselves Accountable”

– Mark Allen Roberts

The reality is top performing sales super stars love to be held accountable and serve on teams of accountable leaders. Sales super stars are like elite athletes. They are very competitive, they train relentlessly, and they are always learning and practicing their craft. From my observations over the past 35 years, most elite salespeople were athletes and now sales is their sport. Top performing salespeople own their goals and strive each day to hit their objectives and drive profitable growth for their organizations.

So where’s the disconnect? …And more importantly how do we fix this problem quickly?

The authors of How Did This Happen do an excellent job of explaining that accountability has two sides:

Taking Accountability For Yourself

 Holding Others Accountable

What we often quickly assume, as the team above thought was a sales accountability problem is actually an organization wide accountability issue. (Sorry) While all of your team is firing missiles from their silos, the true problem is your entire organization lacks a culture of accountability and this must be corrected.

 

Have you ever worked for someone who assigned you very specific objectives and held you accountable to your goals but they never follow up on emails, signatures needed, budget approvals and other tasks they committed to? How did that make you feel? Were you more or less motivated to achieve your objectives?

 

So if our manager is accountable it impacts our performance? ….Absolutely!

 

The good news is your team is motivated by meaningful work. They want to help the organization grow profitability and in the process contribute and one day retire from your organization.

 

The elite salespeople are accountable. They are out everyday hunting for opportunities to serve your current customers and searching for new accounts with problems your organization solves.

 

Still doubt your salespeople are accountable?

 

Let me ask you a few questions…

 

Where else in your organization are people as accountable as your salespeople?

 

  • Their sales are tracked real time, you can see their activity and results
  • You can see what they plan to do next in the CRM
  • You can read what happened in the last meeting in the CRM
  • In your weekly call in meetings they share what they set out to do, what they did, what they will do and what help they may need from you
  • You can see who they are selling, what they are selling them and at what price
  • You get reports showing profit by customer, salesperson, region, district, country (there is no hiding in sales)
  • Their expense reports tell you if they are making good decisions based on return on investment, if they are managing their time appropriately and you can see where they have been and how long they were there
  • They often do weekly call reports
  • You complete customer surveys and ask about their service
  • Other executives attend customer meetings with them
  • If they do not make the sales to achieve their sales goals they do not make the targeted income they were promised

 

So again, are you sure you have a sales accountability problem?

 

The book: How Did This Happen is brilliant!

 

It introduces the concept of an accountability sequence that is broken down into two parts.

 

The first half is the outer ring as they call it. Here is where you form, communicate, align and inspect expectations. This is where most managers fail. This step is about your managers setting clear reasonable expectations.

 

The second half is the inner ring where you engage in accountability conversations in a professional way to deal with unmet expectations. (Emphasis on words professional way)

 

What I enjoyed most about this book is it sets the tone to lose all your emotional assumptions about accountability and it teaches you how to be and lead your teams in a professional and accountable way.

 

This book provides many tools and assessments to help you determine where your team is in the competency of accountability and guides you how to improve.

 

The book shares five reasons people do not hold others accountable:

 

  1. Fear of offending someone or jeopardizing a personal relationship
  2. The feeling they lack the time to follow up
  3. A lack of faith that the effect will make a difference
  4. A worry that by holding someone else accountable their may expose their own accountability failures
  5. A reluctance to speak due to fear of potential retaliations

 

(Did any of the above resonate with you and your team?)

 

Lets get back to the small company. The senior management team meeting ended and the CEO and CFO asked I stay in the room. They were concerned I was taking notes but did not offer any advice or solutions. I shared I have a process and I have noted everyone’s concerns assumptions and perceptions and now I need the voice of your customers and your salespeople and we will develop a strategy to improve your bottom line results.

 

What did I find after spending just under six months in the market traveling with their salespeople and and doing voice of customer interviews with top distributors and end customers?

 

  • Customers openly shared how difficult the company was to work with
  • Their order follow up was poor and orders often had pricing errors
  • On time delivery was under 60% hurting distributor relationships with their customers
  • Their product was plagued with quality issues resulting in warrantee claims
  • Warranty claims just after purchase negatively impacted distributor relationships with end users
  • New products over the past 5 years were historically launched before they were ready. Distributors now wait at least 18 to 24 months before buying new products because they feel the company will have “worked all the bugs out by then
  • Their salespeople, regional managers and distributors were never trained in commercial selling skills
  • Their salespeople were exhausted and spending more time of tracking late orders and warranty parts than selling
  • Their customer service team was never trained and over 70% of incoming calls went to voicemail
  • Their sales compensation plan was so complicated their salespeople did not understand it, trust it, and often found the company made errors in their commissions and it often took over 90 days to correct them

 

Did this company have a sales accountability problem or a company wide accountability issue?

 

In chapter 9 the authors give you a simple yet brilliant model to assess accountability. It starts with asking: Is the person above or below the line

Above the line

  • Do it
  • Solve it
  • Own it
  • See it

Below the line

  • Wait and see
  • Cover your tail
  • Blame others and finger point
  • “Not my job”

Accountability is not a 4-letter word to elite salespeople. They hold themselves accountable and they must know you are accountable as well. They are constantly training, learning and practicing to improve their skills.

We must also understand accountability moves above and below the line for your people ( and yourself) . Once you have read this book you will quickly identify when a victor has become a victim and you are provided tools to help coach them to get them back on track.

I highly recommend you add this book to your library, read it, share it among your leadership team then share it with your sales managers and salespeople.

As for the company above…their sales grew from $14 million to over $80 million in the next 6 years once everyone understood their customers expectations and aligned their strategies and goals to achieve them. We became customer centric and when we did the silo’s went away. We all shared cross functional goals and the bottom line became healthy. So healthy they were acquired a few years later.

 

I saved the tough questions for last.

 

How accountable is your team?

 

How accountable are your salespeople?

 

Has anyone on your team said: “Our salespeople need to be more accountable”?

 

How accountable are you?

 

If the last question hit a nerve then you really need to read this book and help your team understand what accountability is and how to hold others accountable in a professional way. We all drift above and below the line of accountability. This book helps you identify it sooner and provides many tools and coaching ideas to getting your team back on course to profitable performance.

Hand Tattoos and Fixing Broken Windows in Your Marketing

 

 

 

What does your company really know about your customers and targeted new customers? Is your web site an inbound lead generation machine or a virtual brochure just taking up space? How strategic is your marketing and is it creating value or just costs? In this post we will discuss how to identify if you have any broken windows in your marketing.

This week all the news and radio stations are sharing the story about Ariana Grande’s new Kanji tattoo and how it says something totally different than it was supposed to say. Ariana went through the pain and cost of having a tattoo on her palm and wanted it to say “ 7 rings” to promote her new Album. What it did say was “small charcoal grill. When she was informed of this error she immediately went back and had it corrected. Now her Tattoo reads “small charcoal grill finger heart Huh? I have heard people laughing about this mistake and the star herself is making light of it. The trouble is she assumed people would read the tattoo as she does left to right then top to bottom. Here’s the trouble you read Japanese right to left. She shared a picture of her hand as seen below.

 

 

How could she let this happen?

 

How could such a fun message get so screwed up?

 

How could a promotion strategy become such a market joke now?

 

Ariana had a vision and she went to someone she trusted to execute that vision. She had a strategy, she invested money, time and pain to have her vision become a reality. Sound familiar?What if you discovered all the time, pain and cost you put into marketing today is a joke to your target customers?

 

What if I told you your marketing may be sending the wrong message or no message at all to your customers?

 

What if your customers read your promotional material and laugh and ridicule your company instead of want to learn more and want to buy from you?

 

Ouch…that’s not so funny anymore.

 

In my last post we discussed Broken Window theory. If you missed it, this is work completed by psychologist Philip Zinbardo from Stanford  who ran an experiment and it showed if you allow small crimes it will create chaos and even law abiding citizens will commit crime. The longer you allow small crimes the more serious crimes increase. In my last post I shared signs, broken windows you should look for in your sales organization. If they exist they must be repaired or replaced to have a sales team that meets and or exceeds it sales and profit growth targets.

 

Does your marketing efforts have broken windows that need to be repaired?

 

Do you know where to look?

 

Below are some common marketing broken windows you need to look for and repair before your marketing efforts can create the value they were meant to drive.

 

No web site

 

A web site that is a virtual brochure not a strategic lead generation tool

 

Bounce rate greater than 70% 

 

Not knowing what a bounce rate is

 

Not understanding who your ideal customers are and why they are ideal for your business 

 

Not knowing and understanding the language of your customers

 

No buyer personas 

 

Your vision is about marketing activities today not strategies for future

 

Not knowing what a buyer persona is 

 

Salespeople are selling naked: do not know what sales tools you have or where to find them 

 

Salespeople are not using new sales tools because they so not work

 

Salespeople creating their own sales tools

 

You do not understand the current voice of your customers’ 

 

Do not understand the problems you solve for your targeted customer

 

Do not have clear-targeted markets

 

If you search for problems you solve on Google and your company is not found on first page (ideally in the top three)

 

You are in B2B space and marketing believes “content marketing” is only for B2C

 

No content strategy

 

No thought leadership published in your markets and industries

 

No content map

 

Not speaking at industry trade events

 

Do not understand how buyers buy today

 

No WebEx strategy to demonstrate your team’s knowledge

 

Do not understand what buyers need to buy today

 

Do not understand the buyer journeys of your buyers today

 

No blog

 

All your marketing talks more about you than the problems you solve

 

No LinkedIn presence or strategy

 

Someone on marketing team says: “Our buyers do not shop for products like ours on the internet”

 

No Facebook presence or strategy

 

No Twitter presence or strategy

 

Not leveraging pintrest and instagram

 

Your team cannot all agree on your target audience

 

You do not have enough team members to execute effective marketing

 

No You-Tube content

 

If you publish content you share same content in every social platform

 

Your content is selling not educating

 

Your content is gobbledygook (check out his link gobbledygook manifesto

 

Does your team have any of the above broken windows that need repaired?

 

Is your web traffic growing each month?

 

Are your inbound leads growing each month?

 

Have you strategically created a community…your tribe

 

Are your inbound leads converting into sales and profits?

 

What is the sale close rate on inbound leads?

 

Or does your marketing say “small charcoal grill finger heart” and you don’t even know?

 

Running a market leading business is very difficult. It starts with being customer centric and intimately listening and understanding your customer’s voice.

Marketing teams that add tremendous value know how to leverage the voice of their ideal customers and they strategically speak the language of their customers correctly. You must clearly understand your customers’ problems, solve them and capture the success stories and share them in strong content.

If you have any of the broken windows above in your marketing please repair them. The longer they are allowed to exist the more time your competitors are winning business you could have won.

As for Ariana Grande? TMZ just reported she now has a $1.5 million opportunity to remove the tattoo LazerAway.

Talk about jumping on an urgent problem and being able to solve it brilliantly and have all her fans and media share the problems you solve to a key target demographic ! Excellent Strategy!

In our next post we will discuss broken windows in leadership you need to repair.

Increase Sales: Fix Broken Windows in How Your Team Sells

 

 

Is your sales team prepared to win and achieve their sales goals  today? Do your salespeople consistently exhibit the discipline to drive profitable sales growth? Do your salespeople clearly understand your expectations and they are accountable to them? One way to ensure your sales team breaks the growing global trend of sales teams not achieving sales growth goals is to fix broken windows in your sales organization. In this post we will discuss where to look for broken windows that are hurting your sales performance.

 

I am very thankful to a number of my mentors over the years. They taught me how to capture and leverage the voice of the customer and how to serve customers by providing industry insights and best practices to improve their bottom line. One mentor taught me how to listen, actively listen for unresolved problems. Mentors help salespeople understand the discipline required to drive profitable sales growth and to be accountable for key behaviors that if performed consistently will drive profitable sales growth. Having disciple and being accountable is not about doing 1,000’s of things perfectly. Being accountable and having discipline is about is having clear goals and expectations on how you will achieve those goals. As the sales leader it is about inspecting what you expect and understanding the behaviors and attitudes to support key goals.

 

I am very proud of my children. My dream for my children was I would grow a business and give it to them one day to run. In running the business they would learn the life lessons I experienced and have financial freedom. I discovered about 15 years ago this was only my dream. My children had much different plans. My daughter became an amazing artist and now is the social media marketing manager for a company driving 3-5 times the traffic to their trade events and website leveraging her artistic skills creating innovative content. My son has a burning desire to serve and protect others and a police officer.

 

Over the holidays my son and I were talking and he shared something called “Broken Window Theory” and I thought it was fascinating. Broken window theory suggests that visible signs of crime like cars stripped and up on blocks in the street, street signs missing, traffic lights not working, people consuming alcohol in public and other anti- social behaviors create an environment for more crime and more serious crimes. The theory suggests that policing methods that target minor crimes such as vandalism, public drinking and others create an atmosphere of order and lawfulness, thereby preventing more serious crimes.

 

In the 1969 a psychologist named Philip Zinbardo from Stanford ran an experiment. He parked a car with no license plates in two neighborhoods. One that was run down, broken windows and signs of crime and one in an affluent neighborhood in Palo Alto California. The car parked in the run down neighborhood was vandalized within 10 minutes. Next he smashed the front window and what he observed surprised him. Others in the neighborhood with vandalism and other crimes joined in and within 24 hours the entire car was stripped to the frame. Who did the vandalizing is what was disturbing: It was respectable adults in the community often with their children not …street gangs.

 

The car in Palo Alto remained untouched.

 

The findings from the study?

 

Unintended behavior leads to a breakdown of community controls

 

One broken window leads to many if left unaddressed

 

Disorders drives fear and withdraw from community laws and norms

 

Even the best citizens in a community can start bad behaviors if the behaviors are left unchecked

 

My son has been a police officer in a large city now for a number of years. He has personally experienced how policing and correcting what seems like minor misdemeanor crimes helps bring a neighborhood back to life. He has seen the impact having the discipline to enforce common community norms and expectations that support a safe and prosperous community and how this reduces crime significantly.

 

“Ok Mark, this is all interesting … but how does this apply to driving profitable sales increases year over year?”

 

I thought you would never ask!

 

How many broken windows exist in your company’s sales organization?

 

Do you know where to look?

 

The good news is you have a good smart team and there are many things about your company you and your team should be proud of. When I did business development consulting work I asked a lot of questions and looked for broken windows that are signs of much bigger sales problems to be solved. It is not unusual for my past clients to not even see the broken windows they walk by each day. Many broken windows have been broken for years and they became “ how we do things around here”. New team members will see them immediately but if they want to survive they learn to look the other way. Instead of repairing the broken windows teams try to just cover them up.

 

Let me help you see the broken windows that I have seen because you too may have grown accustomed to seeing them and may walk by them everyday and they are hurting your business development and sales growth efforts…

 

Majority of salesperson’s time spent in non-sales activities

 

“Hi how are you meetings” …Salespeople bringing donuts to their distributors with no other business reason for the visit, no one at the distributor even knew you were coming

 

Not being properly groomed

 

Company car dirty inside and out

 

Not making eye contact with customers in meetings

 

Sales people not taking notes in meetings

 

Salespeople not having a pen visiting a customer job site and having to “remember” the requirements

 

No pre-call plans 

 

No CRM entry for future meetings or past meeting notes

 

Outdated company brochures in sales associate’s vehicles

 

Damaged and stained brochures from not being properly stored used in customer presentations

 

Poor or no customer follow up

 

Not following up on leads provided, QDD disorder

 

Salespeople leaving sales training to make/ take phone calls

 

Customer email not responded to in 24 hours

 

Out-dated sales process

 

Salespeople working on laptops in meetings and not paying attention

 

Missing team weekly meetings

 

Salespeople openly criticizing others on sales team, others on other teams ( not constructive criticism ) 

 

Not responding top your email of voicemail in 48 hours if you asked them to

 

No plan to achieve their sales goals

 

Showing up late to weekly meetings

 

Salespeople playing feature and benefit bingo 

 

Not being prepared for weekly meetings

 

No cadence for how often they visit with each customer

 

Not completing expense reports timely

 

Poor interpersonal exchanges with team members from other business groups

 

Talking too much in meetings with customers

 

Salespeople who have never been trained in sales (product-yes, sales-no) 

 

Not understanding their customers’ businesses

 

Not understanding their market or market language

 

No dollar value in CRM for new opportunities identified

 

Not understanding how your product or service impacts your customers’ bottom line

 

Not qualifying potential customers

 

Salespeople seen as just another rep not a trusted advisor

 

Salespeople not spending the majority of their time in sales behaviors

 

Not updating sales stage in CRM

 

Asking poor questions in meetings

 

Poor listening, talking over customers 

 

Selling on price not value

 

No ideal customer profile so everyone could be a customer 

 

Company vehicle not maintained

 

Poor to no relationships at key customers

 

Key account budgets/goals… but no strategic growth plans on how to achieve them

 

Only knowing the buyers at key accounts no relationship with other influencers 

 

Sales pipeline bucket not a funnel 

 

Poor new product sales 

 

Poor sales customer visit trip planning (more time driving and flying than in front of customers)

 

No formal sales process

 

Salespeople staying at very expensive hotels

 

Salespeople submitting very expensive dinners without customers

 

If you see some of the above you have broken windows that need to be repaired before your team can experience explosive sales growth.

 

The above are some broken windows I have observed but there are plenty more I am sure.

 

How about you…

 

What broken windows have you observed in your sales teams that are negatively impacting your profitable growth plans?

 

Do you have associates in key sales leadership roles that have not been trained to lead salespeople?

 

Are their politically incorrect secrets that your salespeople know but are afraid to discuss?

 

If we allow broken windows in how we sell they hurt our ability to drive profitable sales growth and increase shareholder value. We are not saying everyone has to be perfect and 1,000’s of things. What we are saying is we need discipline and accountability in our sales teams. As the leader you need to set the expectation and insure compliance. If you observe a behavior that is not consistent with what your team has identified as your core values you must be safe to address it and correct it. If not the little broken windows become chaos and good team members in your sales community will start behaving in ways counter to driving profitable growth.

 

In our next post we will discuss common marketing broken windows to look for and repair.

Sell More: Become a Modern Seller

 

 

Are your salespeople seen as “just another rep” or a strategic partner who brings insights and delivers value? Are your salespeople focused on finding unresolved problems with their accounts or commission junkies needing their next fix? Amy Franko’s new book: The Modern Seller will help your salespeople understand what buyers want and need in a salesperson today. The Modern Seller accurately depicts what the sales landscape is like today and provides 5 practical tips to help your salespeople drive top results.

 

How are your salespeople today differentiating your product and or services in a sea of seemingly similar services?

 

I think we all can agree buyers today are more knowledgeable. With a click of a mouse they can find product features and benefits, competitors, pricing, and your customer’s comments. It’s now all out there and buyers are skilled at finding it quickly.

 

So how does your company win?

 

What if how your salespeople sell became your point of differentiation and value for your customers?

 

If you want your salespeople to differentiate themselves in our often crowed and highly competitive markets they need to become: Modern Sellers.

 

What is A Modern Seller?

 

A modern seller is recognized as a differentiator in their customer’s business and the value of their product or service isn’t fully realized without them. A modern seller ‘s customer sees the work they do together as strategic to their competitive advantage”

  • Amy Franko

 

Who wouldn’t want their salespeople seen as: “strategic to their customers competitive advantage”…right?

 

How do we help “sales reps” evolve into modern sellers?

 

The author shares 5 dimensions of modern sellers today.

 

Agile

Entrepreneurial

Holistic

Social

Ambassador

 

For example the Entrepreneurial dimension is critical to sales success today. You want your salespeople running their area of responsibility as if were their own business. You want them making decisions on how to spend their time to drive the greatest return. Our sellers today must have a balance between strategic thinking and executing to be a top performer today.

 

The Author unpacks each of the dimensions and shares not only why it is important today but also how to do it. She provides spreadsheet tools your sales teams can use like how to calculate: Loyalty Value and Lifetime value.

 

In The Modern Seller Amy Franko shares practical insights regarding what behaviors our salespeople must have today to be seen as strategic parts and trusted advisors by their customers.

 

I highly recommend you add The Modern Seller to your sales library and apply its 5 principles with your sales team.

 

 

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