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Mentor Moment #12: Dance with the Date who Brought you to the Dance

There are a number of ways to grow a business; sell current products to current customers, current product to new customers, new products to current customers and new products to new customers.

However far too often companies spend a disproportionate amount of time and energy is spent on new customers and not building relationships with current clients. You must insure you focus on serving current customers.

Current customers have given you their vote, their trust when they placed an order with you

. Market leaders understand the importance of including current client development programs in their growth objectives. Market losers forget who brought them to the dance, and give all their energy to chasing new dates …and often go home alone broke. Market losers are unaware of the interruptions for current clients and often turn customers into shoppers again.

How about your company….

Do you have current account growth plans in place?

Do you have a KPI for retaining and growing current customers?

Once you lose a current customer how hard and expensive is it to win their love again?

Technorati Tags: sales,sales growth,grow current customers

Are You a Sales “Stallion” or an “Order Taking Gelding” Headed For the Glue Factory?

When I wrote my post: Are you enabling your Sales Force or emasculating them? I discussed comments made by salespeople selling in today’s economic climate. In addition I shared other leader’s comments about their view of salespeople and my preference to hire sales Stallions over order taking geldings.

I had a couple of salespeople contact me concerned if they were sales Stallions or order taking geldings. So I decided to share some of the questions I asked them on the telephone in hopes it helps others determine where they fall. But before you answer these questions please understand that teams require all types of people with varying degrees of gifts and experience. If you are an order taker, then be the best order taker with the greatest accuracy to detail in your company…just do not call yourself a salesman nor expect to be paid like a sales stallion.

1. In the last 6 months have you identified a change in your buyer’s buying process that requires a new sales tool?

2. In the last 6 months, have you challenged a corporate norm that is self serving to your organization and not customer serving?

3. Would you describe your role as “fighting for your clients?”

4. In the last 3 months have you experienced conflict with key influencers in other departments in your organization in your efforts to better serve your clients?

5. Has an account thanked you for your quick follow up in the last month?

6. In the last 30 days have you taken a bold action to serve your client without seeking your manager’s permission?

7. Are you in the top 10% of performance to goal in your sales team?

8. Are your accounts in the top 20% of most profitable accounts for your organization?

9. In the past week have you presented your management clients needs for approval?

10. In the last 24 hours have you asked for a clients oder?

 

If you said “No” 2-3 times be careful as you are on the verge of becoming an order taking gelding.

If you said “No” 4-6 times, don’t look now but you have become an order taking gelding. If that is who you want to be, then be the best you can.

If you said “No” to 7 or more of the above questions not only have you become a order taking gelding, but you are headed for the glue factory if you do not change quickly.

Sales Stallions spend 2/3 of their time listening and understanding the needs of their clients. Stallions understand the needs of their clients and solve those needs with the products and or services they represent. They become internal champions who fight for the needs of their clients. Sales Stallions consistently produce profitable sales revenue. Sales stallions are experts in their client’s buying process. Sales stallions are in the top 10% of sales to quota performance.

How about your company….

How well does your organization embrace client needs?

 

Does your company welcome your fighting for the needs of your clients? Or do your actions politically hurt you?

 

Have you been told to “sell through your client’s objections” when you share your clients’ needs?

 

Are your companies ‘policies and procedures written to better serve your clients, or your own organization?

 

If you have challenged one of those; “how we do things around here” rules how was it received?

 

The role of salespeople today is to help guide clients to a sale. Salespeople must become internal advocates for their clients and help their buyers buy, versus selling them. If you are a stallion in line to become a gelding to survive in your organization, you need to ask yourself if you will be happy making that compromise for a company that is disconnected to the needs of its market.

Technorati Tags: sales,buying process,sales process,sales stallion

It’s never too late to jump the fence before you get your… “Values”…. snipped.

Are you Enabling your Sales Force or Emasculating them?

 

Market leading Sales forces are singularly focused: to sell stuff.

Sales are one of the most accountable areas of the organization and often are under the constant microscope of senior leaders as they have a significant, immediate, and direct impact on the bottom line. Companies must enable their salespeople and not  emasculate them. Over the past 25 years I have always preferred to hire the sales stallions over order taking geldings. Stallions require you to have a high emotional intelligence, and they will often try to get your goat, however they consistently produce and add value. While geldings wait to be told what to do, how to say it, and where to go. Stallions are saying get out of my way or I will run over you.

 

Market losing organizations myopically manage every sales activity and create approval thresholds that slow the sales cycle when the heat is on and the market dries up.

 

I thought it would be helpful to get inside the mind of a salesperson today, in this economy…so I interviewed a few and below is a summary is what I heard…

It’s simple really, as a salesperson our job is to; Sell. Yes you ask me to do all kinds of little side projects, write reports, and conduct market investigations gathering data to insure what marketing is telling the CEO is actually what’s going on out here in this mystical place called “our market.” However at the end of the day my compensation is specifically tied to: selling stuff. The more stuff I sell the more money I make. My job is to “make it happen” with whatever you folks at corporate throw over the wall.

I tried telling you the reason that last product launch failed was because you created a product because you could and not because you should…but you said I was just making excuses and I needed to “sell through objections…and hit my numbers”

My pay, my commission rice bowl if you will, is about selling as much as I can, as quick as I can, and building relationships that plant seeds for future sales. With the internet my customers are more knowledgeable than they have ever been before about our products and services, (they often know things about our company before I do these days and this really makes me look bad in my market) so my job is really to help buyers solve their problems with the stuff I sell, and help them buy from us. I don’t like to discount our product unless I have to because my commission is based on the selling price, and the more I discount the more units I will need to sell to hit my targeted compensation.

My buyers are really it playing close to the vest right now;

· My buyers have to justify every expenditure to the “higher ups” who they do not have relationships with

· C-level executives need to sign off on all orders

· I have to speak with all kinds of people I never had to sell before; CTO, CMO, CEO, CFO…

· Customers are not stocking up and they are taking much longer to buy, our programs give customers the incentive to buy volume, but they want Just In Time

· My buyers have the C-suite recommending all these competing vendors to our products and my buyers are spending time chasing these leads the C-suite read about or heard about at the country club…versus keeping a close eye on my inventory…so now I am checking our inventory for our customers

· Since you have changed my compensation, I am working twice as hard, twice as long and struggling to make what I made last year

· After the headcount reductions we had at corporate, we have dropped the ball a number of times over the last six months and I am being pulled to fix past sales issues in ;customer service, billing and quality issues ( you see I am out here, I have to stand belly to belly with these folks called “customers” and I can’t hide behind voice mail, email, or transfer them to someone else, if I do not solve these past sales issues they will not buy until the problem is fixed.

· My family life is strained, you see we established a lifestyle based on my past compensation, and when you changed it, it not only affects me, but it touches my entire family. My wife and kids felt I spent too much time working as it was however they justified it because I am a work-a –holic and we were making good money, but now they pressure me..” why work so hard after what they did with your pay..You need to go someplace where you are appreciated like XXXX used to.”

· About 70% of what marketing gives me I do not use. I know it will piss you off, but what I have been doing is writing my own stuff and using some of what Mike also created up in the North West region, you see it is old, but it works!

· I lost another customer last week because we out sourced XXXX to china. I know you said we make more profit and their cost is 1/3 of what it would cost us to make it, but if it’s junk what’s the point. Besides, I have been selling him a lot of other products and now I lost the entire account over the stuff we outsourced?…I know sell through it…

· The young “Hitler youth” you hired in accounts receivables has pissed off a number of my key accounts. I hear the CFO told him to trim 15 days off the receivables aging? Well if he keeps threatening my customers, you won’t have to worry about receivables much longer! Is it true you have him on a commission of what he collects? No wonder he put my largest account on hold for $3500 12 days past due…it’s hard enough out here guys!

· That launch of xxxxx was great, but now we are on back order and my buyers are calling to check on their orders versus buying more.

 

So for all of the leaders out there who never have carried a sales bag, I hope the above was enlightening.

(do you still think a monkey could do it?)

Having led salespeople for 25 years, what they said did not surprise me, but what took me back was the energy, anger even, in the way they said it. Are you listening and observing the challenges your salespeople are experiencing? Are you creating sales enablement tools to help keep conversations flowing to a sale? Or are you telling them to stop making excuses and “just make it happen”?

I was also taken back by the disconnect that seems to have grown wider when the teams became challenged by current economic conditions.

Market leaders grow closer through challenges and emerge stronger.

Market losers conduct Blame-storming that adds no value and if left unchecked cripples a team.

This disconnect should not surprise me really because I frequently speak with business owners and senior leaders who say things like;

· “I make sales come to me personally with each “deal” they want to give away “Why? “Well because, if I told them upfront the range I am willing to work in they would all sell at the lowest price, and give away the farm” [for what it’s worth this is a trust and respect issue not a pricing issue gang] 

· “Saying the economy is tough is just an excuse, when I carried a bag….” (he carried one 20 years ago)

· Marketing ; “ we just spent six figures on the re-launch of xxxx and sales is not using any of the tools we developed, we need to hold them more accountable”[ no, how about understanding the market and the buying process and creating tools to keep conversations flowing?]

· I heard a marketing executive say; “sales is like water, they take the path of least resistance to a sale” [how would that make you feel if you were in sales? Does this sound respectful to you?] 

· A CFO said recently; “with what we are paying them they should be working 18 hours a day.”[Really? In most organizations sales is compensated with a base and a commission. Most commission rates vary from 5% to 15%. So Mr. CFO , you should look forward to cutting those commission checks because for every nickel you pay, you get ninety-five cents]

Tough times cause the true nature of people and teams to emerge. Market leading teams use adversity to become stronger.

 

Market losing organizations “eat their young”.

 

How about your organization?

 

What behaviors are you seeing when your team becomes stressed?

 

What other comments have salespeople heard that show a lack of respect for sales?

 

What comments have salespeople made that show a lack of respect for other departments?

 

Do you feel silos (kingdoms) are healthy, or negatively impact bottom line results?

 

Market leading teams tear down silos and align their entire team to a specific mission and establish key performance indicators that measure what matters. Market leading teams reward cross functional behavior and crush kingdom building.

 

What kind of a company do you work for?

The Expression of Joy Ad campaign by BMW; May be an Expression of Big Money Wasted

Companies spend millions and often billions to advertise their products in their marketplace however the effort to be creative often results in a dilution of their message. When your message lacks clarity, it requires an interpreter…and the variability of the individual interpreters’ ability (your salespeople) to articulate your value is not something market leading companies leave to chance today.

When its 114 degrees in Scottsdale Arizona there is not much to do on weekends unless you head for the higher elevations to escape the heat. As I said when I wrote: Are interruptions “transforming “your customers into shoppers again? I like to go to movies. Now that we are into the hottest part of our summer I am seeing a number of movies.

Is it me or are the ads prior to the movies getting longer? Do they really need to advertise TV series in movie theaters? Recently, I observed something interesting, the “Expression of Joy ad” by BMW. The ad starts out with a Z4 driving through paint and painting the surface like it were a huge canvas, with just one problem…when the ad came on the audience in the theater verbally groaned. So I’m not the only one who has seen this ad and hates it? Is it the music or is it because the ad feels like “the never ending ad?”

Personally I think BMW’s make amazing vehicles, and I get what they were trying to do with this ad; however the audience I shared the theater with not only failed to appreciate this ad’s artistic expression, but verbally groaned when the ad started.

I hear comments in front of me sharing their disdain for this ad. Now mind you, there were a number of other ads from an air conditioned indoor storage facility to a counter top manufacturer who supplies four different surfaces based on your needs, budget, and overall design objectives. None of the other ads caused a group audience response like the BMW ad, again…interesting.

Did BMW test this ad prior to its release? I am curious what the total cost of this ad was and is it driving the desired sales revenues, or just another Addy award for the creative team that developed and produced this masterpiece?

To me this ad says: our cars have so much margin in them we can afford to produce ads like this… 

The reason for this post is not to bash BMW, as I said they engineer amazing driving machines, their fit and finish is best in class, but more so to challenge everyone reading this to listen to the responses your market is making to your advertising. Are you listening? Is your advertising about driving revenue, adding value to your bottom line, or helping your ad firm win another award to dust on a shelf before their next new account pitch? As I discussed in my post: 88% of Those Surveyed Said Advertising Services Have Become Commoditized? Ad Firms Heal Thy Self! I discuss how ad firms must fight the perception their services have become commoditized. Perhaps the firm that created the BMW Z4 ad swung the pendulum too far in the creative direction? At the end of the day, my single opinion does not mean much, but an audience of consumers in north Scottsdale Arizona, groaning when your ad comes on should get BMW’s attention.

Are you listening to the response or lack of response to your advertising?

Have you tested your soon to be released creative in your market?

When you developed the creative, did you do so with a specific buyer persona in mind?

Or do you think I am just a ROI Neanderthal who lacks an appreciation for artistic expression?

 

 

Market leading companies create messages that resonate not repulse their market.

Technorati Tags: BMW,BMW Z4,message,marketing,creative,addy award,drive revenue
Image of ad came from http://www.zercustoms.com/news/2009-BMW-Z4-Expression-of-Joy.html

What are we supposed to do when the Heat is on and our market dries up?…SOW!

The bible is very clear that we are to SOW in the dry spells, in the time our business hits a dry spell, yet so many market losers do the opposite.

It was 114 degrees yesterday, here in the Arizona, and I know people say it’s a “dry heat” but that does not seem to console me…it’s hot. Simple errands seem to drain you, suck the life out of you even. For example in this time of the year all the trees are dropping their pods full of seeds. Although the animals welcome the food, they quickly make quite a mess. So there I was at 6:00 am (102 degrees) picking up pods in my yard before it got hot. How ironic that the trees are dropping seeds when we are in the hottest part of the summer, where’s natures wisdom in that? Actually it is smart because when the pods fall they are baked in the desert sun and they crack open allowing their seeds to fall into the earth. When the rains return, the seed is now in an environment to take root and grow.

I was thinking about the wisdom in this as it relates to what we as business people must do when our market becomes dry and the heat is on to hit our numbers. The Bible is very clear we are to “SOW” in these times. What does it mean to “SOW”? At Dictionary.com the definition is;

1. to scatter (seed) over land, earth, etc., for growth; plant.
2. to plant seed for: to sow a crop.
3. to scatter seed over (land, earth, etc.) for the purpose of growth.
4. to implant, introduce, or promulgate; seek to propagate or extend; disseminate: to sow distrust or dissension.
5. to strew or sprinkle with anything.

The Bible has a number of lessons about sowing. It is very clear we are to;

 

“Sow in the midst of suffering”

“There may be no fruit now, but the grains of love and faithfulness you have scattered will produce a rich harvest”

“Let your eyes be on the field which you reap”

“Each will receive what he has earned.”

If you feel your market has dried up, it’s time to start sowing. Ironic however that I see a number of companies doing just the opposite; cutting back on marketing and sales travel. Market leaders are taking this time to sow.

As I explore this deeper it is often the result of not having and understanding of what marketing and sales activities actually produce fruit and what are just “ Activities”. To ensure you are sowing to produce the greatest harvest the first thing you must do is understand how your buyers buy. What makes their soil fertile, and what causes the seeds you plant to be washed away? What marketing initiatives are you doing today that are falling among the rocks and will never take root? What marketing and sales activities are you doing today that are falling among the thorns only to have sales spend time on them as “good leads” only to have the life choked out of them before they produce fruit?

The key is to know your market and more specifically your buyers.

How about your company…

How well do you know how your customers shop for your product?

What do your buyers use as buying criteria?

Where do your buyers go when they have a problem they need solved?

Who are the key influencers that impact your buyer’s ability to purchase today?

Answer the above and compare the answers to what your team is currently doing and you will be well on your way to a bountiful future harvest.

What Jimmy Buffet and Bruce Cockburn can teach Marketers about Nailing a Persona?

While at the gym this morning I was listening to my iPod to take my mind off the workout. I guess I hit “shuffle” and in the middle of the upbeat songs I try to keep up with a song by Jimmy Buffet grabbed me. His song; “Pacing the cage” so intimately captured a feeling that so many leaders experience at some time, but more often when the supposedly “made it”.

Maybe it’s because today is my 48th birthday and I am always a bit reflective on my birthday, but this song totally nailed my feelings, and the feelings of a number of the executives I have helped.

If you have not heard the song, below are to lyrics I downloaded from one of the song Lyric web sites for you.

by: Bruce Cockburn
Sunset is an angel weeping
Holding out a bloody sword
No matter how I squint I cannot
Make out what it’s pointing toward
Sometimes you feel like you’ve lived too long
Days drip slowly on the page
And You catch yourself
Pacing the cage
I’ve proven who I am so many times
The magnetic strip’s worn thin
And each time I was someone else
And everyone was taken in
Powers chatter in high places
Stir up eddies in the dust of rage
Set me to pacing the cage
[ Jimmy Buffett Lyrics are found on www.songlyrics.com ] I never knew what you all wanted
So I gave you everything
All that I could pillage
All the spells that I could sing
It’s as if the thing were written
In the constitution of the age
Sooner or later you’ll wind up
Pacing the cage
Sometimes the best map will not guide you
You can’t see what’s round the bend
Sometimes the road leads through dark places
Sometimes the darkness is your friend
Today these eyes scan bleached-out land
For the coming of the outbound stage
Pacing the cage
Pacing the cage

The way I feel and what I hear other executives share is our lives can be broken into three phases if you will;

Go get it

Don’t lose it

Give it away.

When I was in the “Go Get it” phase I was working 6-7 days a week, traveling 4-5 days per week, with 18 hour days. I thought it was about building wealth, about building safety for me and my family, but the truth was this time was about self justification and proving my metal. A bad choice as I reflect because lost so many memories with my young children and my wife while I was…on the road.

So you have moved up through the ranks, and now “you da man” and you have teams reporting to you. You still are full of the “piss and vinegar” that got you hear, but now you also focus on growing what you captured as well as protecting it in the “don’t lose it phase”. At some point you have a wakeup call moment, something that happens that makes you say “is this all there is?”

At that moment you have a wakeup call and realize all your focus, all your driving for success is kind of a hollow victory. Some of the worst times in my career were when I achieved a goal early. (Now what?) Sometimes I hear executives say it happens when they are sitting quietly at their big desk when everyone has gone home for the night, and they realize they just missed their daughter’s musical recital.

Then we move into “Give it away” in which success becomes second to significance. In this phase, the phase I am in now, we want to not just “kick ass and take names” but we want significance, we want to make a difference in this world and the lives of others. Studying the Word and becoming a Christ Follower has helped me in this phase more than I can share.

For me, I get much more joy in helping others than the thrill of the conquest I once had in my “Go get it” phase. Each morning before my feet hit the floor I pray “Lord, please help me to help someone today.”

If you are a marketer you need to intimately know your buyer. Jimmy Buffet does an amazing job of capturing an intimate understanding of a feeling a number of us feel. I recommend you buy this song and listen to it today.

My question: Do you have an understanding of your buyer’s that Bruce Cockburn had when he wrote this song?

Hit songs, like hit products happen when we intimately understand a buyer persona and their needs, and that takes work. But once you have it, and speak in that person’s voice you will experience explosive sales growth.

If you are in the go get or don’t loose them phase, make a conscious effort to focus on what really matters, what you will realize, often too late in the give it away phase. Put your family, friends and others intentionally into your schedule, and when you are with them, be with them 100%.

88% of Those Surveyed Said Advertising Services Have Become Commoditized? Ad Firms Heal Thy Self!

I am a problem junkie. I see problems everywhere. Problems are awesome as they provide an opportunity for new solutions that we can monetize. Over the years I have called this “the art of thoughts”. Recently I was on the Advertising Age website and participated in a survey that said 88% of those surveyed feel Ad Agency services have become commoditized.

This really bothered me as one of the favorite companies I helped was an integrated marketing firm in North Canton Ohio called Innis Maggiore . I had hired this firm over the years when I was the VP of Sales and Marketing for a local manufacturer, and when our company was acquired Innis Maggiore group asked me to do what I do, and  help them grow. We served a variety of companies from a small Amish furniture maker to MSN.COM , Harry London’s Chocolates, and a local hospital as well as many more. It was easy to help them grow because their work …well it worked, it added measurable value to their clients’ revenues.

(Obviously they never let me help with client copy!)

Honestly, as a buyer of Ad firm services for years I lacked an appreciation of the what goes on behind the scenes. Many times the good firms just made what they do look too easy.The firms I hired would listen to what we needed and produce something that either drove the desired result, usually revenues, or their work had no effect, and I found another firm. Good Ad firm partners like Innis do a great deal of work to ensure their work produces a result. At Innis we often would listen to the client’s objectives, and after the meeting have more questions than answers. So we would go into our clients’ market and interview customers, non customers, and influencers. From these interviews we would gain a better understanding of the problem our clients’ product solves and then we were equipped to turn those amazing creative folks  loose on the solution. They say you need to “walk a mile in another man’s shoes…”well having helped this firm gave me a new appreciation for what goes on behind the final work for market leading firms.

Good Ad firms connect to the problem in the market, understand buyers and speak to those personas in a voice that emotionally connects. When I wrote “blame-storming” I referred to an ad that is amazing. Whoever led the creative for this ad connected with something almost every executive has felt in a meeting at some time…”being thrown under the bus”. This firm nailed it so well that it  made me feel Direct TV knows me…

What is the value of that kind of creative? Creative that cuts through the noise and gets your message to connect with a targeted buyer persona is not priced as a commodity.

When creative connects so deeply with your buyers that it creates an emotional attachment it shows you have a market leading Ad Firm partner.

Market Losing Ad firms will lower their billable hourly rates and write off more of their hours. They will replace their talented creative’s with young kids fresh out of college to drive down their costs. In a recent Ad Age article it discussed how firms are auctioning their services on EBay, offering free work and crazy low rates to capture large accounts from market leading firms.

If you are running an Ad firm today, you must” heal thy self.” Get out and understand the needs of your customers. Create buyer personas for your customers. For example, in today’s environment it should not shock us that the guy in charge of Ad Firms at P&G comes from a purchasing background. You have a new buyer persona. Like your clients, you now have many more people in the buying decision…make it your quest to understand them! If you speak to him in the voice you used with the past CMO you will fail. Get to know him, how does he make decisions? What are his problems, pain points? Just as you conduct focus groups to verify creative before you kick it off for clients, you need to test your new messaging before you launch your firms’ value proposition.

Or, you can keep playing let’s make a deal and keep complaining about how your accounts “just don’t value your work anymore…” And oh by the way, how is that working for you?

Advertising Age’s Jonah Bloom offered seven steps to fight commoditization;

1. Say No

2. Realize you are on the same side as your rivals

3. Specialize

4. Change the cost dialog

5. Accept risk

6. Stop selling ads as a solution to everything

7. Look for new revenue streams

Markets will always have bottom feeders doing stupid things, and rarely do they survive. It is your job to rise up and connect to your client’s needs of today and your firm will survive. If your entire business model is selling ads alone, then you are in trouble. When was the last time an Ad made you take action and buy something? An Ad may play a role in the overall buyer process, but buyers today are doing much more than waiting for the perfect ad to solve their problems. If your model feels like it has become commoditized it is because your customers have lost the connection between your work and the results your work produces. If all you have been “pitching” are more and more Ad’s then they have also lost trust in you.You are speaking to new buyer personas that make buying decisions differently than your buyers in the past. If you are selling a “one size fits all solution” in ads alone, you will fail.

I need to check in with Dick Maggiore. I learned a great deal working with his amazing team. Get to know the customer, buyer and users and speak to them authentically about how you solve their problems… my guess is Dick is struggling more with turning away clients than commoditizing his services.

Are You “Spinning” the Wrong Marketing and Sales Formula and getting nowhere fast?

I have been trying to lose weight for years as I discussed in my post: Do you need to “Detox “your business before it can hit your goals? If you have struggled with your weight as I have, you know it is very frustrating. I have tried a number of diets and workouts independently .One of the workouts I tried was “Spinning”. If you have not tried it, spinning is a very intense workout on a stationary bike. It was not unusual for my heart rate to exceed 160 beats per minute and the calorie counter would show 600-750 calories burned in each workout

When I first started spinning, I did lose some weight. After a few weeks of spinning my weight loss hit a plateau. So what do we do in situations like this? Well type A’s like me…we work harder! I added more resistance to the stationary bike and after the 50 minute spinning class I would go into the weight room and work out for another hour. Again, I saw some weight loss and again I quickly hit another plateau…very frustrating.

What I lacked was the right formula for weight loss. To have sustainable, repeatable weight loss the formula is 65% your food intake and 35% your activity level, your workouts. One without the other and you will not reach your goals.That explained why working out harder and not significantly changing my diet did not help me achieve my weight loss goals.

This reminded me of how most businesses lack or have the wrong formula for sales and marketing. I have worked with businesses in different industries and varying sized revenues; from under $1 million to $300 million, as well as over a billion and I have seen teams frustrated in each. They keep working harder, spinning faster and faster in sales adding more training but 40% still miss achieving their sales goals. They lack the correct formula to feed (marketing) their sales  in relation to their selling activities.

When I worked for Frito-Lay I was fresh out of college. I would say the formula back then was; 30% marketing and 70% sales and service. Marketing did research and generated brochures and sales would pick and choose the tools we thought would work. Frequently we would create our own tools borrowing what we liked from what marketing created. This model may have made the marketing team at Frito-Lay cringe, but it worked in the 1980’s. My Unit of route salesmen realized huge sales gains year over year and our team was recognized in Frito-Lay’s national magazine with yours truly standing in front of a bridge display we sold to Giant Eagle stores that spanned the entire back of their store for July 4th weekend.

That formula; 30% marketing/70% “bare knuckle selling” worked in the 1980’s The problem today that is the 30% marketing/70% sales formula is dated and backwards. The change that caused this formula to flip flop was the internet. The advent of the internet changed how buyers gain information. Salespeople are no longer the” keepers of the product knowledge keys”. Buyers now demand; instant, accurate, authentic information at their finger tips 24/7. Not only must we provide this, but we must provide product information in the voice of the buyer so they quickly can find solutions to the problem(s) they are trying to solve. Fail to clearly state the problems you solve and the buyer “clicks” their way on to the next website.One of marketing’s key roles is now sales enablement.

Today the formula for most businesses should be 70% marketing and 30% sales and service.

Peter Ducker said: “The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.” To achieve this definition a considerable amount of time must be spent in understanding your market.

Buyers like to buy; they do not like being sold. (Truth be told they probably didn’t like being sold a bridge display that spanned 15 isles) Sales today have a responsibility to start conversations and lead buyers throughout their buying process until they are ready to buy. Salespeople must now “serve” their clients as opposed to “sell” them. I discussed the top concerns buyers had with salespeople in my post titled: WARNING: Buyer’s say what salespeople do wrong? PRICE is not on the list! Buyers today want salespeople to listen and understand their problems before presenting what’s in their bag.

When I speak of “sales” and “marketing” I am discussing the roles and not titles and people. In some of the smaller companies I have served my title was “VP of sales” but I performed a marketing role in identifying customer needs and pain points. The smaller companies I have helped did not have marketing departments and we outsourced the development of sales tools to ad agencies. As companies grow they segment and define roles more clearly. I really do not care what you call the person that does it, but someone must understand your market and how your buyer’s buy.

How your buyers buy has changed since the 1980’s and market leaders have already made the sales and marketing flip flop to insure buyers move quickly through their process to a sale.

Stop “Spinning” the wrong sales and marketing formula, working out harder and harder only to miss your goals.

Find out how your buyers buy and create a winning formula for how your buyers buy today…

… or keep spinning with your heart rate racing while your competitors adjust their formulas to the market of today and leave you in their dust.

How about your company…

If you had to guess, what % is your companies’ energies are spent in the roles of sales and marketing?

Are you still “bare knuckle selling” or are you helping buyers find you, and supplying what they need to buy from you?

Do you know how your buyers buy?

Weight training and Sales training, how doing them wrong adds no value and may even hurt you!

Each morning I start my day with a workout at the gym. I like to start each workout with the elliptical machine. I listen to music and watch others training on the various machines to make my 30 minutes go by quickly. One machine almost everyone does wrong is the lower back machine.

Each morning I watch people plop themselves down on the machine without making adjustments based on their body. Some sit too high in the seat and some are seated too low. Some move the weights very quickly and some let the plates slam in-between repetitions. Not executing the exercise correctly not only fails to isolate the area you are trying to develop, but may also cause injury to the individual and the machine. There are two older gentlemen who train together each morning and not only do they fail to adjust the machine settings for their body size, but they do the exercise, (the training) completely wrong. They select the maximum weight and they begin.( double the weight I use) The weight is so heavy they are no longer sitting on the seat midway through the movement, and they are pressing the weight with their legs as they aggressively pull the weight back with their arms. Once one gentleman finishes I see his training partner execute the training in the same way. My guess is they have used this machine in this way for years and each assuming they are doing it correctly. They are so focused on looking impressive with the amount of weight they are lifting they lost the original objective of using this machine.

This machine was designed to provide training for an isolated area of your body, the lower back. To use this machine correctly and realize the maximum benefit the first thing you should do sit and adjust the machine settings so you are exercising in the proper range of motion. You are supposed to slowly push the resistance back, hold, then slowly return to the starting position while not allow the weight being lifted to rest. If done correctly, and balanced with lower abdomen exercises, you will develop a strong lower back and core.

As I watch these two older training partners each morning, I am reminded how most companies execute sales training wrong. I can speak from experience as I have done it wrong myself. A new product is about to launch so we bring in all the sales troupes to corporate for training. Marketing presents PowerPoint slides covering the market size, and they share the creative support materials, the sales tools they developed to help my team hit their goals. Then the product manager presents the product and reviews each feature and sometimes shares the benefits of the particular features. Far too much time is spent discussing why our product is better than our competitors and not enough time is spent helping my team understand the problems this new widget solves. We may visit the manufacturing facility and see the product being assembled.

At some point I would present our team goals, and each region’s individual goals. Over the years I would develop specific regional play book drafts with objectives by market by account. These play books would illustrate the opportunity in their market my current and targeted new accounts and if every tactic was completed would result in the salesperson achieving 150% of their goal. I would ask each salesperson to review the plan for then report back on how they plan to achieve their revenue targets. We would have specific discussions that resulted in adjustments to the play book. I would often present some competitive information, and share how to overcome objections we may face when trying to displace our competitors, and or gain placement for this innovative new widget. We would establish key indicators the team would be tracking that we believed would drive our desired revenue targets.

About 15 minutes into the training you can see salespeople checking their emails and excusing themselves for incoming calls from “one of their key clients”.

WE HAVE ALREADY LOST THEM!

How do market leaders conduct sales training to produce the maximum revenue in the shortest amount of time?

· Share what market problem the new product solves

· Explain how big is this problem

· Share market data

· Explain what buying criteria buyers use when making buying decisions

· Share the process buyers go through when purchasing

· Position the sales tools developed for the specific steps of the known buying process

· Provide the sales team the buyer persona(s)

· identify the key influencers to the buyer personas, and who also may be involved in the buying process, and provide guides on how to start discussions with them

 

What I am describing is not “Sales Training” (like I did in the 1990’s) but “sales enablement”. Sales enablement is defined as:

Sales enablement is the process of arming an organization’s sales force with access to the insight, experts, and information that will ultimately increase revenue. It is a term that has gained momentum in the last decade. It is often used to describe a variety of tools, processes and methodologies that are applied to enable a sales force, both direct and indirect. The terms “sales effectiveness” and “sales readiness” are sometime used interchangeably to denote Sales Enablement as well.

In David Daniels’ recent blog he states:” According to the “Business-to-Business Launch Survey Executive Summary” conducted by the Center for Business Innovation at Babson College and Schneider Associates, 55% of companies rank sales enablement as critical to product launch success.”

When salespeople were the “keepers of the keys” for product information one could argue how the way most companies conducted sales training was OK. However the internet and the instant accessibility to information have changed sales forever.

Salespeople must become experts at starting and keeping conversations going with buyers. Today salespeople must be experts at understanding the buyer’s process, and what sales tool to use when.

Market leading sales organizations teach their salespeople how their product or service solves market problems.

Market losing organizations continue to spend more time convincing their sales teams how easy their goals are …”even a monkey could do it.” Market losing teams practice “marketing roulette”. They create a ton of sales tools and sales is supposed to use them ALL until they figure out which one works. If none of the tools work, sales will create their own. (A REALITY, BUT VERY DANGEROUS) Market losers are still teaching their teams how to overcome objections.

Market leaders understand the importance of listening to objections.

Stop sales training and start sales enablement today.

Remember people like to buy, but do not like to be sold.

Tell me about your organization.

How does your organization conduct sales training?

When salespeople leave your training do they understand when and where to use the sales tools in the buying process?

Is teaching salespeople how to overcome objectives smart?

How many minutes into your last training were salespeople checking their Blackberries and excusing themselves for an “important call?

“Skubala” Marketing, take a quick quiz to see if you qualify….

 

How do you know if your marketing is effective? How do you even define the word “marketing”? Simply put; marketing is about understanding your market, what they need, solving and serving those needs, and letting everyone in your market know you solve those needs.

So how do you know if you’re practicing “marketing good for Skubala”? This is an old Greek word, and is harsh. There is no mystery in what this word means , so I thought I would use it.

Take this quick quiz…

 

1. Do you clearly understand the problem(s) your product or service solves?

 

 

2. Does your messaging tell your market what you solve?

 

 

 

3. Do you know the buyer types you serve; do you have written buyer persona’s?

 

 

4. Do you know the buyer’s buying process?

 

 

 

5. Do you know your sales process?

 

 

6. Can you match the sales tools marketing provides to specific stages of the buying process?

 

 

 

7. Have you created any new sales tools in the last six months?

 

 

Pretty quick quiz right? If you answered “no” to any one of the above you are probably practicing Skubala marketing. If you said no to three or more (all) you’re marketing is definitely Skubala. How do you quickly fix this?….be able to say yes to all of the above.

 

How do you define “marketing”?

 

How do you measure marketing’s contribution to your bottom line?

 

Where do you start to change your marketing to make it a core competency in your organization?

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