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Growing Sales and Profits in Uncertain Economic Times.

Many business leaders are concerned about scaling revenue and profits in 2024 so Mark delivered a webinar to help them increase revenue and profits in uncertain times.

We share four mindset myths from a recent McKinsey article about growth to help people understand you can scale your business profitably.

We discussed key steps to growing revenue in uncertain economic times as shared below.

1. Know your Markets and current trends
2. Right people right seats right skills
3. Understand your customers today
4. Leadership team aligned and built based on foundation of trust
5. Have a strategic plan
6. Aligned and execute the plan
7. Measure what matters
8. Communication
9. Coach and train
10. Pivot don’t Panic

Please share this link with others in your organization and networks who may want a proven process to grow in uncertain economic times.

If you would like to connect with Mark various links are below.

LinkedIn: https://www.linkedin.com/in/markaroberts/

Driving Explosive Growth Book: https://a.co/d/6x386OS

Email: markroberts@nosmokeandmirrors.com

Kind regards,

No Smoke and Mirrors Marketing Support Team

Congratulations, your team executed Voice of Customer Interviews…Now What?

Developing a strategy without gathering customer insights is “strategy malpractice.” Yet far too many organizations build strategies from the inside out and do not gather insights from their customers and markets. ( That is why I wrote my book Voice of Customer, a No Smoke and Mirrors Approach to Driving Profitable Growth)

Companies often launch new products and services and strategic plans based on what they believe they know and have always known about their customers and markets.

When this occurs, sales fail to deliver the planned sales and profit growth. Several organizations went into 2024 with what they felt were strong sales forecasts and sales pipelines, only to miss January sales goals.

Companies that consistently meet and exceed sales and profit targets have an intimate knowledge of their customers, markets, and challenges their customers face today.

You must gather customer insights if your company wants to be a market leader and scale revenue.

For the select few who interviewed their customers, inactive customers, and prospects they quoted but did not win….now what?

As we share with clients… there are dollars in your data if you know where to look.

Transaction data, market data, and gathering the voice of your customers are critical to profitably scaling revenue today.

You gathered the insights from your customers and found several insights…

  • What customers are satisfied and who is not?
  • Who are raving fans and promoters, and who are detractors or customers so unhappy they are preparing to defect?
  • Why do Customers buy from you?
  • Why don’t customers buy from you?
  • What is your share of your wallet?
  • How are your customers’ businesses doing?
  • How critical is the salesperson’s skills and market knowledge when they make buying decisions?
  • What do your customers believe their growth this year will be?  
  • What keywords and phrases are your customers and prospects using to search for solutions like yours?
  • What is the value your product or service is delivering, and how do they describe it?
  • What should you Keep, Start, and Stop Doing?
  • What are some new challenges and struggles your customers are facing today?

What should your team do next?

                                           Act!

It is critical to your team’s revenue growth, customer relationships, and the ability to gather future insights from your customers that you act after conducting voice of customer research.

We suggest, at a minimum, the below steps.

  1. Share findings with senior leaders of your organization
  2. Have your leaders share the insights with their teams.
  3. Share key insights with sales, marketing, and customer service teams.
  4. Marketing produces content that shares what the company learned and what your team plans to do.
  5. Share content with everyone who participated in the interviews and thank them for being a part of your commitment to continuously improving the relationship with your customers.
  6. Train sales on how to use the data. NEVER give sales the customer interview data file without training them on how to approach customers who are not satisfied, are detractors, or are preparing to defect.
  7. Engage with the inactive accounts and design account growth plans.
  8. Strategically engage with all the large customers who scored low on Net Promotor Score and or customer Satisfaction (who contribute to 80% of your net income) and, using the sales training, conduct professional discovery calls to learn more and develop a plan to improve.
  9. Contact customers who chose not to participate. Customers who choose not to participate often lack a close relationship with your company and or are detractors who are unhappy and may be planning to defect.
  10. Conduct contact list hygiene. Often, after we have tried to interview customers in companies’ contact customer databases, we discover errors. Some of the contact databases we have received over the years have as high and 40% inaccurate customer contact information. If the team conducting voice-of-customer interviews found inaccurate data, we must update the account records.
  11. Meet with each key account personally, share what your company learned overall, and then develop key account plans to gain a greater share of the wallet.
  12. Segment insights into three to five categories and assign leaders to develop improvement plans for each.( Sales skills, Service, Communication…)

We recommend teams act and engage with their current customers, inactive customers, and customers we quoted but did not win within 30 days.

We serve dynamic and uncertain markets.

Market-leading teams quickly turn the insights from Voice of Customer interviews into actionable plans.

We often help teams shape strategies and tactics and update value-based messaging based on the voice of customer insights.

The key is not to wait sixty or ninety days to act.

Let’s schedule a call if you want to discuss gathering actionable insights from your customers and developing strategic plans to scale your revenue and profits.

Essential Business Acumen Terms Every Salesperson Should Know Today

Buyers have spoken they do not want or need transactional “sales reps” pitch slapping them. Theses pitch slapping sales reps assume the buyer has problems and prematurely pitching their products and services. What 85% of buyers shared in a Florida State survey was they want salespeople who can connect the dots between what they sell and how it can impact the buyers bottom line. Sadly, the same buyers shared less than 14% of salespeople have those skills today. We must train and coach our salespeople in the language of business and improve their business acumen.
Building your financial literacy, beginning with your senior leadership team’s financial vocabulary, is a great way to increase your competitive edge. In this post, I will share the importance of financial literacy in manufacturing sales.

Business acumen is a critical skill for salespeople, enabling them to understand the broader context of their clients’ industries and make strategic decisions that drive sales success. Sales professionals must familiarize themselves with key terms related to business acumen. In this post we’ll explore and define essential terms that empower salespeople to engage in more informed and strategic conversations with clients.

1. Market Segmentation:

Definition: The process of dividing a broad market into smaller, more manageable segments based on common characteristics such as demographics, behavior, or needs.
Significance for Sales: Understanding market segmentation helps salespeople tailor their approach to specific customer groups, ensuring more effective targeting and communication strategies.

2. SWOT Analysis:

Definition: An acronym for Strengths, Weaknesses, Opportunities, and Threats, SWOT analysis is a strategic planning tool used to identify internal and external factors affecting a business or project.
Significance for Sales: SWOT analysis equips salespeople to assess their own offerings and those of competitors, enabling a more nuanced understanding of the competitive landscape.

3. ROI (Return on Investment):

Definition: A financial metric used to evaluate the profitability of an investment by comparing the net gain or loss relative to the initial cost.
Significance for Sales: Salespeople should be able to demonstrate the tangible ROI of their products or services to clients, showcasing the value proposition and justifying the investment. This is particularly critical in B2B manufacturing sales. If you sell a piece of manufacturing equipment that sells for $500,000 or more you must be prepared to build an ROI.

4. Customer Lifetime Value (CLV):

Definition: The predicted net profit a company expects to earn from a customer throughout their entire relationship.
Significance for Sales: Knowing and maximizing CLV guides salespeople to focus on long-term customer relationships, emphasizing customer satisfaction and loyalty.

5. Pricing Strategy:

Definition: The method companies use to set and adjust prices for their products or services, taking into account factors such as cost, competition, and market demand.
Significance for Sales: Salespeople must understand the company’s pricing strategy to effectively communicate the value of the product or service in relation to market dynamics. We encourage our clients to price based on the economic value they deliver to their customers and market prices for similar products and services. We do not encourage a cost-plus price model. In this model manufacturers and some distributors review their cost and determine price based on a multiple of cost.

6. Lead Generation:

Definition: The process of identifying and cultivating potential customers for a business’s products or services.
Significance for Sales: Successful lead generation ensures a consistent flow of potential customers, enabling salespeople to build a robust pipeline and meet revenue targets.

7. Value Proposition:

Definition: A statement that summarizes the unique value a product or service brings to customers, highlighting its competitive advantages.
Significance for Sales: Articulating a compelling value proposition is essential for salespeople to differentiate their offerings and address customer needs effectively.

8. Revenue:

Definition: The total income generated by a business from its primary operations, including sales of goods or services.
Significance for Leaders: Revenue is a fundamental measure of business performance and growth. Leaders must focus on increasing revenue streams through effective sales strategies and diversification.

9. Profit Margin:

Definition: The percentage of revenue that represents a company’s profit after deducting expenses.
Significance for Leaders: Profit margin indicates the efficiency of operations and is crucial for assessing the overall financial health of a business. Leaders should aim to optimize profit margins through cost management and strategic pricing.

10. Cash Flow:

Definition: The movement of cash in and out of a business, reflecting its liquidity and ability to meet short-term obligations.
Significance for Leaders: Positive cash flow is essential for day-to-day operations. Leaders must monitor cash flow to ensure the availability of funds for necessary expenses and investments. Several of my clients have trained their sales teams to speak in terms of improving their customers cash flow with just in time service.

11. Working Capital:

Definition: The difference between a company’s current assets (e.g., cash, accounts receivable) and current liabilities (e.g., accounts payable, short-term debt).
Significance for Leaders: Maintaining positive working capital is essential for meeting short-term obligations and supporting day-to-day operations. Leaders should optimize working capital to ensure business continuity.

12. Debt-to-Equity Ratio:

Definition: A financial ratio that compares a company’s total debt to its total equity, indicating the level of financial leverage.
Significance for Leaders: Monitoring the debt-to-equity ratio helps leaders assess the financial risk of the business. Striking a balance ensures a healthy capital structure and sustainable growth.

13. Budgeting:

Definition: The process of creating a detailed plan that outlines expected income and expenses over a specific period.
Significance for Leaders: Effective budgeting allows leaders to allocate resources strategically, plan for contingencies, and maintain financial discipline, supporting profitable growth. In our training and coaching we help salespeople build business cases to help their clients build a budget based on the economic impact to the clients’ business.

14. Return on Assets (ROA):

Definition: A ratio that measures a company’s ability to generate profit from its assets, calculated by dividing net income by total assets.
Significance for Leaders provides insights into operational efficiency and asset utilization. Leaders should aim for higher ROA to maximize the productivity of resources. Salespeople must understand this concept when selling capital equipment.

15. Earnings Before Interest and Taxes (EBIT):

Earnings before interest and taxes (EBIT) indicate a company’s profitability. EBIT is calculated as revenue minus expenses excluding tax and interest. EBIT is also called operating earnings, operating profit, and profit before interest and taxes

Buyers have spoken they want and need business consultants masquerading as salespeople.

Salespeople must learn to speak the financial language of business.

Their conversations must share how their product or service will….

Increase Revenue

Reduce Costs

Increase Ebit

Reduce Scrap

Reduce Downtime

Increase Net Income

Improve Cash Flow

Reduce the cost of Quality.

Reduce Safety Occurrences

Increase Gross Margins

Increase Market Share

Increase Shareholder Equity

Reduce Operational Costs

Reduce Manufacturing Variance

Increase Operational Efficiency

Increase Throughput

Mastering these business acumen terms provides sales professionals with a solid foundation for navigating the intricacies of today’s business environment. By incorporating these concepts into their approach, salespeople can engage in more strategic conversations, build trust with clients, and drive successful outcomes in an ever-evolving marketplace.

Let’s schedule a call if you would like your salespeople to evolve from reps into trusted advisors and improve their close rates while increasing their sales pipelines.

Navigating the Scrutiny: What Company Owners Should Expect During Private Equity Firm Due Diligence

The due diligence process is a pivotal phase when a company attracts the attention of a Private Equity (PE) firm. Company owners should be prepared for a thorough examination of their business operations, financial health, and strategic positioning. This blog sheds light on what company owners should expect during PE firm due diligence.

In-Depth Financial Analysis

PE firms conduct a comprehensive review of a company’s financial health. This includes scrutinizing financial statements, cash flow projections, and historical performance and identifying potential financial risks. Company owners should be prepared to provide transparent and accurate financial data.

Operational Evaluation

Due diligence involves a deep dive into the company’s operations. PE firms assess the efficiency of processes, supply chain management, technology infrastructure, and overall operational excellence. Company owners should expect questions about key performance indicators, scalability, and potential areas for improvement.

Customer and Market Analysis

Understanding the market and customer base is crucial for PE firms. Company owners should anticipate inquiries about market trends, competitive landscape, customer demographics, and the business’s market positioning. Insight into customer acquisition and retention strategies is also vital.

PE firms often engage us to conduct voice of customer research to determine current customer satisfaction, Net Promotor Score, and if any of their large revenue-producing customers plan to defect soon.

Legal and Regulatory Compliance

Due diligence includes a meticulous examination of legal and regulatory compliance. PE firms will assess contracts, agreements, licenses, and potential legal issues. Company owners should have all relevant legal documentation readily available for scrutiny.

Management Team Assessment

The strength of the management team is a key focus. PE firms evaluate the capabilities and experience of the leadership team. Company owners should be prepared to provide detailed information about key executives, their roles, and plans for succession.

PE firms will assess the senior leadership team for alignment and the ability to execute profitable growth.

Do you have any gaps in your leadership team that will need to be filled to scale your business strategically?

Technology and Intellectual Property Review

For businesses heavily reliant on technology or with significant intellectual property, due diligence will include a thorough review of patents, trademarks, software, and other proprietary assets. Company owners should ensure proper documentation and protection of intellectual property.

Employee and HR Examination

PE firms assess the human resources landscape, including employee contracts, benefits, and potential HR liabilities. Understanding the company’s culture and the strategies for talent acquisition and retention is also part of the evaluation.

Environmental, Social, and Governance (ESG) Considerations

Increasingly, PE firms consider ESG factors. Company owners should be prepared to discuss environmental sustainability, social responsibility initiatives, and corporate governance practices.

Contractual and Customer Relationships

Contracts with customers, suppliers, and other stakeholders are carefully scrutinized. PE firms assess the terms of these agreements, potential risks, and the strength of customer relationships. Company owners should expect questions about contract terms, renewal rates, and customer satisfaction.

Cybersecurity and Data Privacy

With the growing importance of cybersecurity, PE firms evaluate a company’s data protection measures and privacy policies. Company owners should be prepared to discuss cybersecurity protocols, data management practices, and compliance with privacy regulations.

Owner / Founder Activity in Business

Are you a business owner that works 15 hours a day or 15 hours a week? Have you built a strong empowered team or does every key decision need to run through you? When we help teams we develop processes, and systems as well as leadership training so the business owner can work more on the business and less in it.

The due diligence process is a critical phase in the PE investment journey, and company owners should approach it with thorough preparation. You’ll comprehensively examine the business’s financial, operational, legal, and strategic aspects. By proactively addressing potential areas of inquiry and ensuring transparency throughout the process, company owners can navigate due diligence successfully and pave the way for a strong partnership with the PE firm.

When we help business owners and founders who wish to scale and increase their valuation, we often help teams prepare the documentation, systems, and processes to make the due diligence process easy.

Let’s go ahead and schedule a call if you plan to sell your business or receive PE investment in the next 2-4 years.

If you work for a PE firm and wish our help finding the data you need to make a strategic investment, let’s schedule a call.

Strategic Crossroads: Choosing Between Loans and Private Equity Investment for Business Growth

Having helped businesses scale over the years, growth takes cash. For businesses seeking to fuel growth and expansion, the choice between securing a business loan and obtaining Private Equity (PE) investment is a critical decision. Each avenue offers distinct advantages and considerations. In this blog, we explore the key factors that businesses should weigh when deciding whether to opt for a loan or pursue private equity investment.

When to Choose a Loan

Immediate Capital Needs

If the need for capital is urgent and immediate, a business loan may be the preferred choice. Loans typically have a faster approval process compared to the due diligence involved in securing PE investment.

Preservation of Ownership Control

Entrepreneurs who are hesitant to dilute their ownership stake may prefer loans. With a loan, the business retains full control, and the lender’s involvement is limited to the terms of repayment.

Short-Term Financing Requirements

When the capital requirement is for short-term needs or specific projects, such as purchasing equipment or managing cash flow fluctuations, a loan may offer a more straightforward and targeted solution.

Predictable Repayment Structure

Businesses that prefer a predictable and structured repayment plan may find loans more appealing. Loan terms are usually agreed upon upfront, providing clarity on interest rates, repayment schedules, and overall financial obligations.

When to Opt for Private Equity Investment:

Long-Term Growth and Transformation

If the business is poised for substantial long-term growth, and the capital requirement extends beyond what traditional loans can offer, PE investment may be the strategic choice. Private equity partners bring not just capital but also industry expertise and strategic guidance.

Strategic Expertise and Networking

Private equity firms often have extensive networks and industry-specific expertise. If the business requires more than just capital – such as strategic guidance, industry connections, and operational insights – a PE investment can provide valuable resources beyond financial support.

Ownership Diversification and Exit Planning

For business owners looking to diversify their ownership, plan for an eventual exit, or navigate complex succession issues, private equity investment provides a pathway. PE firms bring experience in navigating exits and can assist in planning for the long-term future of the business.

Operational Optimization and Efficiency

If the business stands to benefit from operational improvements, efficiency enhancements, or a professionalization of management, a private equity partner can provide the necessary expertise to drive these changes effectively.

Factors to Consider in the Decision

1.Risk Tolerance

>Assessing the business’s risk tolerance is crucial. Loans come with fixed repayment obligations, while PE investment involves sharing the risks and rewards of the business. Consider the risk appetite and the business’s ability to handle potential fluctuations in performance.

2.Time Horizon

Evaluate the time horizon for capital utilization. Loans are typically repaid over a defined period, while PE investments often involve a longer-term commitment. Align the choice with the business’s strategic goals and timeline for growth.

3. Control vs. Collaboration

Consider the level of control the business owners wish to retain. Loans allow for full control but come with debt obligations, while PE investment involves a collaborative approach where decisions may be shared.

Conclusion

Scaling your business will require cash. Choosing between a loan and private equity investment hinges on the unique needs, goals, and circumstances of the business.
Whether seeking immediate capital for short-term needs through a loan or planning for transformative long-term growth with private equity, businesses should carefully weigh the pros and cons to make an informed decision aligned with their strategic objectives.

Have you modeled your cash flow needs for growth?

Let’s schedule a call if you would like to discuss your strategic options for fueling your cash requirements to grow.

Webinar: Driving Explosive Growth

Verne the author of Scaling up invited me to speak on a webinar about my new book.

Listen to the Webinar.

Trascript:

We’ve got one of our own, one of our two hundred and sixty nine coaching partners, Mark Roberts, who’s asenior level sales and marketing leader with over thirty five years experience, driving profitable salesgrowth in market leading organizations.

He has done so at companies like Timkin, Alpha Enterprises, Vantage mobility, Gardner, Denver, mobilityworks, and Fred Olet. As an author, public speaker, sales skill trainer, sales acceleration coach, and again,as I mentioned, one of us. He has helped several firms scale and sell for higher than industry averagemultiples.

In twenty eighteen, he received the business excellence award from NSME and in twenty nineteen, the highspot sales enablement award. He was also recognized by sales hacker in the sales enablement categoryand was recently recognized in Sort of Success Magazine. For his data driven approach to growing salesand profits. And this month, he’s featured on the cover of Pop Sales Magazine.

He’s the founder of OTB Solutions LLC and is the popular business development blog, no smoke and mirrorsdot com. Ranked number one in fixing sales problems. As founder president of OTB sales, he helps clientsdiagnose and improve revenue, profits, and shareholder value, his new book released just a few months agodriving explosive growth. It is a no smoke and mirrors approach to growing the business profitably.

And he’s got a book coming out, which we’ll be promoting in Christmas around the voice of the customer.And so with that, hey, Mark. I wanna I wanna welcome you And you and I were talking just as we weregetting ready to, to launch, my dear friend David Risher, who helped Jeff Bezos, scale up Amazon, thenkinda took a break from that to do some nonprofit work, was recruited to be the CEO of Lyft a couple ofmonths ago. And one of the first things he posted is three days in.

He got certified to be a driver. He was proud that he could then be a driver. And every Sunday, and again, itwas the same Sunday. He posted.

He’s out driving customers.

He’s out meeting the other drivers. And I don’t know if anyone noticed, but a few weeks ago, he made anannouncement that put Lyft back on the radar of a lot of people. One of the things he discovered the voiceof the customer, if you would, is that women would often prefer a woman driver.

And so there’s a feature in the app that they’ve added that allow that to be the case. And anyone whochooses a diverse different driver to match their diversity is able to do that. And always, when we look inhindsight, it’s one of these. I can’t believe Somebody hasn’t thought of that before, but this is your world.And so, Mark, over to you.

Well, thank you for inviting me. What an amazing group of authors and content. I was copiously taking notesfrom the last presenter.

Yeah, I’ve been working on my book for ten years. I hope you all have a coach. My coach, has been with mefor over thirty years, and she was pushing me hard. Mark, you gotta write a book. And quite honestly, Ithought she was crazy.

I’ve helped so many different businesses, metals companies, plastics companies, food, beverage, you nameit. But what she was right, when I sat down and looked at the process that we always went through to drivewhat I call explosive growth, it was always the same. So I wrote the book. I hope people enjoy it. And again,no smoke and mirrors. It’s it’s about serving people, not selling them. It’s about intimately understandingthem and their challenges.

So today, what I wanted to do was kind of help everybody as we go into twenty twenty four.

I’m gonna ask you a couple questions today.

First of all, does your team have the skills, motivations, and beliefs to execute your twenty twenty four plan?

That sounds like such a easy question, but you might be surprised. I spoke at an event in Denver recently, Itwas CEO, CFO, CROs.

Oh, three hundred fifty people there. And I asked them, raise your hand. Raise your hand if you feel ahundred percent of your team have the skills, motivations, and beliefs to execute your plan. Not one handwent up.

Okay. Seventy percent. Seventy percent of your team have the skills. Not one hand went up.

So I just kept doing it, and we got down to around thirty to forty percent, and all of a sudden, a lot of thehands in the room went up. So my question to you is you’ve worked really hard. Hopefully, you follow theone page plan template, but does your team have the skills to execute it?

Another question I’d like to ask you is, could an outdated assumption about your customers be stalling yourgrowth? I see it all the time. My passion is voice of customer.

As Vern mentioned, my next book coming out at Christmas is only about voice of customer because It’s theone thing from my current book people wanted to hear more about.

So could an outdated assumption? About your market, your customers, be impacting and slowing downwhat could have been scalable, profitable growth.

Well, a pretty smart guy that I know and had the pleasure of meeting said developing strategy withoutmarket insights is criminal.

So let me ask you. You worked on your strategic plan. You’ve started assigning goals. You started you know,those key initiatives and thrusts, but how much customer insight went into your plan?

I like to refer to it as a as running an MRI. Run an MRI on your business, your customers, your markets, Let’sreally build a plan based on data.

If anybody on this call had a headache and they went to their doctor, and the doctor said, well, tell youwhat, sit down. We’re gonna do brain surgery. Run. Run away. Right? Hopefully, they’re gonna run some testThey’re gonna run an MRI. They’re gonna do some diagnostics.

Chances are all you might need as an aspirin. Right?

The businesses are the same way. We need to run an MRI on our business on a frequent basis to make surewe’re really tuned in to our markets and the problems that they have.

People ask me, Mark, I don’t need voice of customer research. What what all are you trying to learn? We weknow this. Right? Well, what we’re trying to learn is why do customers buy from you? Kind of a simplequestion, really. And you’d be shocked when I do, sales workshops.

How many sales people can’t answer that question?

Why don’t customers buy from you? Well, every salesperson will tell me price on that one. Right?

But what share of wallet do you have? How how much more business could you get? What’s the buyingprocess of your customers today?

What criteria do the buyers need to make purchases today?

What are their goals and challenges?

You know, every salesperson, you can ask them their goal, and they could probably tell you by the month.But ask them what the goals of their customers are, and that’s usually when you hear crickets.

And then how satisfied are your customers?

And are they willing to refer you? Those are some of the things we do when we conduct voice of customerresearch for clients.

We often get some friction. Oh, my sales guys do this. No. You don’t want your sales people doing this.

First of all, their job is to sell. Far too often salespeople listen to reply and not to learn. So you’re not gonnaget those valuable insights. Second, they have relationships.

They have great relationships with your customers, and your customers might might not be as honest asthey could be.

And they also have bias.

They can’t help it. We’ve trained them to be hunters. Right? So if they hear something in a conversation,they immediately jump to a sale. That’s not what we want during voice of customer research.

Sometimes we do win loss analysis. Some of our larger clients like one that does very large industrialmachines.

We call every customer. We call if they win, we call if they lose. If we ask salespeople why they lose, theysay price. Always, they always say price. But in preparing for today, we look at the data. Over just so manyclients. And what we hear heard was, over eighty percent of the time the buyer shared, I didn’t think thesalesperson really understood my problem, my challenges.

Seventy four percent said, I really didn’t like their approach. It felt kinda salesy. It felt they were trying to hittheir numbers and not solve my own problems. In the end, price, yes, price was on the list as well as,service time frame.

But have you asked your customers lately what it’s like to do business with you?

Let me give you a couple examples of the power of voice of customer research. I was so blessed in the lateeighties and nineties working for a plastics company.

We made mechanical security devices for audio tapes and videos, and all of a sudden, there was a bigmarket shift. The large, music producers decided to change the packaging in jewel cases.

So other words, the CD would just ship in the jewel case. And as you can imagine, that’s like a a lossprevention nightmare.

What my competitor did was they made a sample. They wrote a really nice cover letter with pricing. Theyput a rubber band around it and mailed it to every one of their customers.

What we did was we went out into the market, and we asked really good questions. We met with Walmart.We met with large music chains like music land at the time.

We met with bookstores. And what we found was There’s actually three different problems, three differentmerchandising challenges that people had.

With that data, we invented three different types of products, we sold over a hundred million packages overfifty percent gross margin, and we doubled the company in twelve months.

One of my favorite roles was helping a company that made vehicles for handicapped people. What they didwas they they reduced they lowered the floor of minivans, so that a consumer in a wheelchair could drive orbe a passenger comfortably in the van.

But the problem was when when they asked for my help, their revenue was pretty stalled, under twentymillion for about five years.

So again, I like to ask a lot of questions and get different versions of the truth. The leadership team sharedhow, you know, engineering, was so strong in their vehicle.

How they really intimately understood their dealers, but we really didn’t understand a lot about ourcustomers.

So while my sales team was out selling. I was interviewing people in in showrooms. And I’ll never forgetAkron, Ohio, the dealer’s name was Mobility Works, and this gentleman says, you know, You folks that makevans are not all that smart, which got my attention. He says, you know, we have less disposable incomethan most people. Why can’t you convert used vehicles instead of new vehicles and reduce the retail?

It’s like, this is such a brilliant idea. There’s gotta be a reason why.

Fast forward. Our sales started growing hundred and fifty percent, hundred and sixty percent year overyear.

We had to add second shift, third shift just to keep up. Today, over seventy percent of vehicles sold in thismarket, Our converted used vehicles. That company went from being stalled at twenty million dollars andlater sold for around ninety million dollars.

Oh, I I had really enjoyed helping this company. I was the managing director of pragmatic marketing. It’s theworld leader in teaching product managers how to develop products people wanna buy.

Well, during the recession, however, two thousand six, two thousand eight, We saw sales just tank. So wefollowed the process that we taught. We call, we interviewed customers, we interview customers we won,we interview customers we lost, We determined what had changed in their world, and we created new salestools, and we actually changed our sales process.

Within three months, sales got back up to pre recession numbers. And within six months, we were beatingthe recession numbers, pre recession numbers.

And then another fun story is I like to do the the, voice of customer calls when I can. And we have a clientthat makes metal, shelving, and you’ve probably seen some of their product at retail stores.

Well, I was interviewing some of their top accounts, and it was their third largest account. And the womanjust went on and on about how happy she was, satisfied with the quality, the service. But at the end of thecall, because I ask open ended questions, she said, you know, I am a little disappointed though.

What’s going on? Well, I asked them to quote a very large project that’s important to me and they no quotedit. So I had to go to one of their peditors. I’m not happy.

The quality is not as good. I said, tell you what, tell me more information. Let me call the CEO and see whatwe can do. Now, to the salesperson’s credit, they did follow the qualifying document that we have theirsalespeople follow.

But the CEO met with this person, had about a forty five minute conversation, and it turned into six hundredthousand dollar order.

And then sometimes, when we do voice of customer, research, we solve problems, it turns into newproblem, new new products.

If you go into Best Buy, or you go into any retailer, you’re probably gonna see a device that looks like this.

This device was designed by alpha enterprises back in the day when we were solving the music challenge,and then they said, you know what? Can you solve other problems?

Because when I have something locked behind a case, sales go down about seventy percent. But if it’s outlive, And I don’t need an employee to open a case. I can sell more. So we met with all the different retailersand we designed products that would solve problems and help them improve their sales.

That led to alpha ultimately being sold for over three hundred million.

So let’s get back to that other awkward question I asked. Does your sales team have the skills, motivations,and beliefs to execute your plan?

But here’s something scary. Fifty percent of salespeople have never had formal sales skills training.

You know, like how to have a conversation with somebody, how to uncover, unmet needs, how to qualifythem. So what we did was We can go in and quickly assess. One of the best ways to assess, and it’s thenumber one step in my book, by the way, is assessing assessing your customers and assessing yourcurrent team, assessing your leadership team with some of the scaling up tools, But assess your salesteam. The best way to assess sales is observation.

We can really determine level of mastery by watching people and and how they perform But sometimesthat’s unrealistic. Let’s say you have a team of seventy salespeople. That would take you years to do. Right?

The other thing that’s happened is buyers have shifted and changed post pandemic.

The new data out today says thirty percent of buyers choose not to engage with a salesperson at all. Andwhen we ask why, it’s because sales is behaving badly.

They don’t have the skills. They’re showing up. They’re throwing up, and they’re not really helping people.Another shift is eighty five percent of buyers expect a salesperson to connect the dots between what theysell and the value it delivers the buyer. That was a Florida state study. And sadly, around fourteen ofsalespeople actually do that today.

Over eighty seven percent of buyers expect virtual selling to continue. So my challenge is, have you helpedyour salespeople be able to sell virtually.

And what we keep hearing over and over again in a lot of different ways is I want human to human authenticconversations. Kinda like, the the previous speaker.

They wanna trust us. People buy based on trust and they buy based on confidence.

So I kinda looked at all the different feedbacks we’ve received over the years because we transcribe everyinterview we do. And I took a little bit of liberty, and and and what I’m hearing people saying is I don’t wantsales reps pitch slapping me. I need industry consultants to help me solve my market challenges.

So the question is, what do you have? Do you have sales reps who are out trying to hit their numbers, or areyou having consultants in your industry sharing insights with your customers, intimately understanding theirchallenges and giving them solutions.

When I ask that question of an audience of sales leaders, It was kind of disturbing.

When I asked that question, about thirty percent of the people believe that, you know, my team has theskills, motivations, and beliefs to do what we need them to do. But the vast majority needs additionaltraining And what the data shows is about twenty percent of the people in sales roles actually shouldn’t bein sales.

They would add a lot more value to your organization and other roles.

So you don’t have to guess anymore. I remember when I spoke at the break, people always come up to meand say some pretty interesting things. And one sales leader said, you know, that was a disturbing question,and I really need the answer, but was kinda uncomfortable to admit that I don’t. Well, today, you don’t haveto take you don’t have to guess. Like this team here, we were helping to add sixty nine salespeople withinten days, we had them taken a sales assessment.

Great news. Team of hunters, but they really needed some help with closing skills. So very quickly, kind oflike the MRI, we diagnose the team, and then we prescribe training and coaching, new tools, new systems,new process, so they can execute their plan.

What was the impact of closing those skills? Thirty nine percent increase in organic sales over three years.

They didn’t have to introduce any new markets. They didn’t have to open up and sell any new products. Allwe did was close skills gaps and give their customers a better experience.

So again, my name’s Mark Roberts. I wrote a book driving explosive growth. My next book is on voice ofcustomer and how to leverage the voice of your customers.

And My mission in being here today is to help you.

Help you be prepared for twenty twenty four.

There’s a lot of ways to get in touch with me. Please connect. I try to put something out of value everyweek.

Burn. We’ll go back.

Thank you so much. You know, as I was listening, I you made me think, an early, early client that I wasinvolved with. It was literally thirty years ago, a company called Deltek. They were in Northern Virginia, theirjob to be done was to provide the first real focused accounting system for government contractors becausework doing work for governments can be quite more onerous from an accounting perspective.

And the founder was Ken Delaski. At the time, he had about seventy employees And look, he had a verysimple b hack. You wanted to be number one in that space. And after being there for a day, I could tell hewas gonna do it because I saw two things.

I was in the technical support area. And there were four people answering phones, you know, taking thecustomers, concerns, and questions about the software. And there was this cubicle with this guy in it whowas not answering any phones, and I’m not quite sure could.

And I’m like, who is this guy? And he goes, so that’s one of our programmers. Every one of our programmershas to spend a half a day a week doing their work from this cubicle. So they’re overhearing directly.

What are the real concerns and challenges the customer real time is having with our software, that way it’dbe much quicker. Kinda almost like Francis phrase, getting the voice of the customer installed in thesoftware. And if one of the technical support people didn’t know the answer, they could say, look, I got oneof the guys who actually programmed it. And I thought, alright.

And I see an empty cubicle cubicle. And who’s that for? And you can guess. That was for Ken.

He said, look, and I would spend a day a week, not answering calls, but doing my work from that cubicle so Icould hear the same voice of the customer real time. And I knew, Mark, when I saw those two thingshappening inside his company, the Deltek would be the hundred ton gorilla. In that space, and they theyprove to be the case. I know you were sharing a story about a client that was selling a two million dollarpiece of equipment.

Share that story real quick. We’ve got a couple of them. Yeah. I have a a brand new client.

Their private equity firm asked me to help them. They sell industrial equipment. Talking like two milliondollar machines.

And when I went for the versions of truth with their leaders, they say, well, you need to understand ourmark Mark. This thing’s a very big and expensive machine. People typically buy one, and we never hearfrom them again. Well, that didn’t resonate with me, but, okay.

So our team started making phone calls. We called their existing customers.

We called customers they quoted, but did not win. We also called customers who raised their hand and hadinterest, but were never quoted. And here’s what we found.

Thirty percent, thirty three zero of their current customers need another machine.

And their strategy going into twenty twenty four before we did this research was we need to call on newpeople.

Forty percent of the people they quoted but did not win plan to buy another machine.

So talk about a shift in your strategy. Talk about an improvement in your overall profit margins.

I I wanna leave everybody with a challenge. I know we gotta jump to the next author.

I want you to call five customers and interview them. Just interview them. Ask them how you’re doing. Askthem some of the challenges they’re facing and see if there’s any that you face. And then as far as yoursales team, I want you to do one thing. I want you to ask your sales people to leave you a voicemail sharingyour value proposition.

Hopefully, you’ve got a little bourbon when you’re listening to those because you’re gonna need it.

Make sure your team has the skills to execute the plan and communicate your value If you can’tcommunicate your value, how can your customers understand it? But thank you, Vernon, for having me heretoday. You got it, Mark. Hey, one more story.

You know, I’ve always got one more story. Okay. I think of a company citizen. Raymond Roberts and hiswife, both Cubans founded it.

They were working with government agencies, and they had seven main clients. Seven major agencies.They were about twelve million in revenue, and they said we’d like to get to a hundred million. So clearly, itwas we need to go find more like those seven agencies.

But our first quarterly theme was called CSI customer satisfaction investigation, and they realized that theydidn’t just have one customer inside the government agency There were lots of people that their solutionwas touching. And so they went about calling twenty customers a day Ninety day and then by the way, theycome into their daily huddle and report out ninety days later, Mark, they found eighty seven million dollarsof additional business within those seven clients. They didn’t need to go out and find more to your point.And so I just hope everyone who’s been listening in take it very serious that the folks that are running majorcompanies and the examples that we gave of mid market are the ones that really get back in touch with thecustomer. And, Mark, I know you guys do this work for folks. And so if you’re not gonna do it, get Mark tohelp out.

Reading the Room: How Top Salespeople Use Situational Awareness to Win

Imagine walking into a boardroom, filled with potential clients, and feeling the energy, understanding their needs, and knowing when to pitch, pause, or pivot. This isn’t magic; it’s the power of situational awareness in sales. In a world where sales landscapes are ever-changing, relying on scripts alone won’t do. That one and done sales training last week won’t cut it either. The top salespeople combine their knowledge and experience with intuition and perception to truly read a room.

The Pillars of Situational Awareness in Sales

Understanding the Situation

Recognizing context: Every sales meeting has a backstory. Maybe the company just went through a rough quarter, or they’re expanding and looking for new solutions. Knowing this context can shape your approach.

Assessing the immediate environment: From the layout of the room to the tech setup, the environment often gives away cues about the company’s style and preferences.

Reading the Individual

Non-verbal cues: Did the client’s eyebrow raise when you mentioned a price? Did their posture change when a competitor was mentioned? These subtle cues can offer insights into their thoughts.

Emotional states and their signals: From excitement to skepticism, recognizing and addressing these emotions can help guide the conversation.

Gauging the Collective Mood

Group dynamics: Who talks the most? Who looks to whom before answering? Understanding these dynamics can reveal the decision-making patterns in the room.

Recognizing influencers and decision-makers: Not all influencers have the loudest voices; sometimes, it’s the quiet nod of approval from someone in the corner that seals a deal.

Identifying underlying tensions or enthusiasms: Sometimes, the energy of the room isn’t about your pitch but an internal matter. Being sensitive to this can help you navigate the conversation.

Why Situational Awareness is a Sales Game-Changer

In today’s saturated market, products often look alike. The edge? How you sell it.

I shared in a recent keynote at sales kick off meeting…

“How you sell is much more important than what you sell today

Situational awareness lets you:

  • Stand out by tailoring your pitch in real-time, aligning with your client’s mood and needs.
  • Build trust-based relationships by demonstrating genuine understanding and responsiveness.
  • Swiftly navigate unexpected shifts or objections, turning potential setbacks into opportunities.
  • Close deals by aligning perfectly with what the client feels and needs at that moment.

Techniques to Enhance Situational Awareness

Achieving keen situational awareness isn’t about being psychic; it’s about honing certain skills that allow you to perceive, understand, and react aptly to the social environment. Let’s deep dive into these techniques.

Active Listening

Active listening is an art, one that goes beyond merely hearing words. It involves total engagement with the speaker.

Beyond words – tone, pace, and hesitation: A hurried pace might signal anxiety or excitement. Hesitations could indicate uncertainty or the need for more information. And tone? It’s the emotional soundtrack of the words spoken. For example, if a client says, “We’ve worked with similar products before…” with a tone of disappointment, there’s a backstory there worth exploring.

Responding to what’s said and what’s implied: Sometimes, the real message lies between the lines. If a potential buyer comments, “We’ve had a busy quarter,” they might be hinting at budget constraints, recent growth, or even internal challenges. Your ability to pick up on these subtleties and address them directly can make all the difference.

Observational Practices

Observing is more than just seeing. It’s about noticing nuances and deriving meaning from them.

Scanning the room: This isn’t a one-time action when you enter. Continually glance around. Notice if someone’s interest piques when a particular point is made or if there’s a collective nod when discussing a pain point. These cues can guide your pitch.

Noting physical setups and their implications: The way a room is arranged can tell you a lot. For example, if most of the decision-makers are seated at the back, they might prefer to observe before they engage. Or if there’s a noticeable distance between two groups, it could indicate departmental divisions or even internal disagreements.

Where are people sitting, who is talking the most? The least? How loud or soft is the tine? How fast is the pace of conversation? What is each persons’ body language telling us?

Empathy and Emotional Intelligence

Selling is as much about emotions as it is about logic.

People buy with emotion then justify their purchase with data.

Sensing emotions: This requires tuning into the emotional undertones. For instance, a client might express concerns about a product feature not because they find it irrelevant, but because they’re apprehensive about its implementation.

Research shows over 70% of decision makers make decisions to mitigate risk. If the customer brings up an objection do not overlook it as it will arise again when you attempt to close. Don’t “overcome” the objection but handle it professionally.

Reacting with authenticity: People can sense when you’re genuine. If a client is sharing a concern, a simple acknowledgment like, “I completely understand where you’re coming from,” can go a long way.

Mindfulness and Presence

In the high-stakes game of sales, being wholly present is crucial.

Being in the moment: Imagine talking to a friend who’s constantly checking their phone. Annoying, right? Clients feel the same when you’re not entirely there with them. Whether it’s a large presentation or a one-on-one, give it your undivided attention. Being in the moment is so critical to sales success we assess this in the sales assessment instrument we use.

Avoiding preconceived notions or biases: Walking into a meeting with assumptions can be a pitfall. Every client and situation are unique. By approaching each sales opportunity with fresh eyes and an open mind, you position yourself to respond most appropriately to the situation at hand.

Practical Applications in Sales

Situational awareness isn’t just a theoretical concept—it’s a hands-on tool that, when applied correctly, can revolutionize sales outcomes.

It reminds me of when I trained in martial arts. We practiced and practiced techniques and drills so if the time came to use them we would be in a state of “MU Shin” or no mind. Trained salespeople who have practiced various scenarios will have a high situational awareness and the skill to adapt to the meeting needs.

Tailoring solution pitches is fundamental. Reading the room means sensing its energy and adjusting your message accordingly. For instance, if you feel a room filled with seasoned professionals exuding confidence, diving deep into technical details might resonate. In contrast, a group showing signs of curiosity, but limited knowledge might appreciate a more foundational approach.

Group presentations are rife with dynamics. Observing body language can reveal who’s engaged, skeptical, or undecided. Recognizing these cues enables a salesperson to address concerns directly, involve silent yet influential participants, and subtly sway key decision-makers.

In one-on-one meetings, the spotlight’s intensity is magnified. Keen situational awareness helps in promptly identifying any reservations the buyer might harbor. By actively responding to these, trust is built. Moreover, by mirroring and attuning to the buyer’s pace and mood, rapport is solidified, making the sales process feel more like a conversation than a pitch.

Lastly, the post-meeting debrief is where reflections crystallize. Recalling situational cues aids in decoding client dynamics, preferences, and potential roadblocks. These observations, when documented and discussed, become foundational for strategizing future interactions, ensuring sales endeavors remain adaptive and client centric.

Continual Growth and Mastery

Situational awareness in sales isn’t a “learn once, use forever” skill; it’s a dynamic competency that demands ongoing refinement. With the ever-evolving nature of client needs, market dynamics, and sales environments, a salesperson’s situational acumen needs constant honing. Regular training, be it through workshops, webinars, or role-playing, can offer fresh perspectives and sharpen observational skills.

One of the most potent tools for growth is feedback. Constructive critiques, either from peers, mentors, or clients, provide direct insights into areas of improvement. Couple this with self-reflection, and you have a recipe for sustained growth.

Beyond the sales floor, the benefits of honed situational awareness ripple into personal relationships and daily interactions, making it not just a professional asset but a life skill. In essence, mastery in situational awareness is an ongoing journey, one that enriches not just the sales process but interpersonal dynamics at large.

Conclusion

In the dynamic world of sales, where every client and every meeting is unique, situational awareness emerges as the unsung hero. As sales professionals, embracing and continually refining this skill can be the difference between a missed opportunity and a resounding success. So, the next time you walk into a room, remember to truly “read” it, and watch as doors of opportunity swing wide open.

Let’s chat if you would like to improve your sales teams’ situational awareness through training and scenario exercises.

Winning the Negotiation Game: Strategies for Every Hard Bargain Move

Negotiation is an art form, a delicate ballet of give and take. And while many might believe it’s all about splitting differences, actual negotiation delves deeper. Echoing the philosophy of “never split the difference,” real negotiation is not about compromise—it’s about collaboration.

As we train and coach sales teams, we find less than 25% of salespeople have received negotiation skills training, and over 75% of professional buyers have been trained. This negotiation skills mismatch results in companies leaving millions of dollars on the table that could have ( and should have) flowed to their bottom lines.

In this post, we will discuss negotiation and the critical role it plays in increasing your gross profit margins.

Understanding the Core of Negotiation

Negotiation is more than just a transactional conversation; it’s a dance of dynamics.

At its heart:

  • A mutual conversation aimed at reaching an agreement: Both parties are active participants, each bringing their desires and constraints to the table.
  • A dynamic process, not a static event: Negotiation evolves with every exchange, every counteroffer, every nod of agreement, or furrowed brow of disagreement.

Whether in boardrooms hashing out million-dollar deals or at local markets haggling over the price of fruit, negotiation plays a pivotal role in our professional and personal lives. But to master it, one must shift from viewing it as a compromise, where both parties lose something, to a collaborative effort where everyone can win.

At the root of good negotiations is win-win intent.

Hard Bargaining Techniques

Hard bargaining is the poker face of negotiation, often seen but rarely understood.

Anchoring: The aggressive approach starts with audacious demands or resorting to threats. It’s like trying to win a race with sheer force without considering the stamina needed to complete it.

The guilt trip: Ah, emotional Manipulation! Whether feigning disappointment or playing the victim, it’s about trying to win concessions through sympathy.

The Flinch: you share your proposal, and the other person verbally and visually flinches. This is a tactic to make you make concessions.

Red Hearing: The person you are negotiating with brings up things unrelated to the current negotiation.

Stonewalling: Have you ever faced a wall of silence? Some negotiators use non-responsiveness as a tactic, hoping the other side will cave under the Pressure.

The salami” technique: Instead of going for the whole pie, they’ll ask for it slice by slice, wearing you down gradually until they’ve taken the entire thing.

The decoy: Like a magician’s trick—while you’re focused on the flashy distraction, they’re working their real agenda.

Good cop, bad cop: you are in a meeting with your decisionmaker, and the new person enters the room. They are difficult and demanding and often leave the meeting early in frustration. This is a play orchestrated by the person you are negotiating with to make you lower your guard.

Anchoring: The other person starts the discussion with an anchored price, often much lower than industry standards.

Deadline Pressure: Creating a sense of urgency or time constraint to force a quick decision.

Emotional Manipulation: appealing to the person’s emotions or relationship with the other person.

Nibbling: you thought you had a deal, and the other person keeps asking for more concessions.

Silence : ( salespeople hate this one) Using silence to make the other person uncomfortable and likely to make concessions to fill the silence.

Threats: Issuing direct or implied threats to gain compliance. The threat of losing their current business, the danger of damaging a long-term relationship.

Limited Authority: Claiming to have limited decision-making power to justify hardline positions. One example as of late my sales teams I am seeing: We must have 120-day terms to do business with you. I cannot enter any new vendors who do not offer 120-day terms.

Lying: I hate to break it to you, but people lie in negotiations to help their bargaining position. Working with the manufacturer of industrial products, their buyers shared you are 30% more expensive. Not 11%, 8.5%…but 30%. There is a strong probability their products are more expensive, but we doubt it is 30% based on our competitive research and win/loss analysis.

End of quarter End of Year– here, the other person has made a remarkable discovery and understands what closing this negotiation means for the other person at a critical timeframe.

Strategies to Handle and Counter Hard Bargaining Techniques

Navigating the choppy waters of negotiation, especially when faced with hardball tactics, requires strategic thinking, empathy, and assertiveness. In the four negotiation courses we offer, we help sales teams to handle brutal bargaining tactics as well as how take a consultative sales approach with a strong business case that often eliminates negotiations together and quickly moves to a close. Here’s a deeper look into strategies that can turn the tables and bring balance to even the most challenging negotiations.

The Power of Patience

In the fast-paced business world, there’s a temptation to respond quickly, to be seen as proactive. But sometimes, the most potent weapon in your arsenal is patience.

Not reacting immediately: When confronted with a highball offer or an ultimatum, take a step back. An immediate reaction might be emotional and not strategic. Please allow yourself some time to process the information and make a thought-out response.

Taking time to think and respond: This can also unsettle hard bargainers. They often expect a quick concession or compromise. By delaying your response, you’re sending a clear message: you won’t be rushed or bullied into a decision.

Active Listening

Every word, pause, or inflection in a negotiation carries weight.

Seeking clarity: Instead of making assumptions, ask questions. If a negotiator makes an aggressive demand, a simple “Can you help me understand why you believe this is fair?” can shift the dynamic, placing the onus on them to justify their position.

Asking probing questions: These delve deeper into the other party’s interests, revealing underlying motivations or concerns. It’s a way of peeling back the layers, getting to the heart of what the other party truly wants.

Establishing Clear Boundaries

Every negotiator has their limits. Recognizing and asserting these boundaries can prevent resentment or regret later on.

I want you to know about your non-negotiables: Before entering any negotiation, please be clear about what you’re willing to flex on and what’s off the table. This clarity provides a firm foundation upon which to negotiate.

Communicating them assertively: It’s one thing to know your boundaries and another to share them. Use clear, assertive language. Instead of “I’d prefer if…” say, “I cannot go beyond this point.”

Shifting the Focus

Hard bargainers often fixate on positions, but the true magic of negotiation lies in uncovering interests.

From positions to interests: While a job is a stated demand (e.g., “I want a 10% discount”), interests delve into the ‘why’ behind it. Maybe they’re facing budget cuts or have financial targets to meet. They are knowing the ‘why’ allows for creative problem-solving.

Seeking mutual benefits: Once interests are bare, look for overlap—a space where both parties’ needs intersect. This is the sweet spot of collaborative negotiation.

Know Your BATNA

BATNA is your Best Alternative to a Negotiated Agreement. It represents what the other person can do if the negotiation fails. Knowing your BATNA is critical in negotiations because it serves as a benchmark to evaluate the proposed agreement.

Why is BATNA so important?

  • Strengthens Negotiation Position
  • Informs Decision-Making
  • Reduces Pressure
  • Encourages realistic expectations
  • Promotes Creativity
  • Facilitates trade-offs

Building Rapport

Beyond tactics and strategies, negotiations are, at their core, human interactions.

Finding common ground: Maybe you both enjoy golf or attended the same university. These shared experiences can break the ice, making subsequent discussions smoother.

Humanizing the interaction: Remember, behind every hard bargaining move is an individual—with pressures, concerns, and motivations. By empathizing and connecting on a human level, negotiations can shift from confrontational to collaborative.

As we share in our relationship-building course, we must build a strong business relationship. We need to make deposits in the other person’s emotional bank account long before we enter into negotiations.

We instruct our trainees to move from sales rep to trusted advisor, adding tremendous value.

“Never Split the Difference”

Derived from high-stakes scenarios like hostage negotiations, the philosophy of “Never Split the Difference” goes beyond mere compromise. Authors Chris Voss and Tahj Raz share this approach challenges the conventional wisdom of finding a middle ground.

The origin and essence of this philosophy rest in its emphasis on achieving optimal outcomes for both parties. Splitting differences may result in both parties walking away unsatisfied. Imagine two parties arguing over an orange. If they split it, both might not get what they truly wanted—one needed the zest for a recipe, the other, the juice for a drink.

Actual negotiation, as embodied by this philosophy, is about delving deep, understanding core needs, and crafting solutions that serve these fundamental interests. It urges negotiators to go beyond superficial compromises, urging a focus on shared benefits and value creation, leading to solutions where both parties genuinely feel they’ve gained.

Conclusion

In the intricate dance of negotiation, every step, twirl, or pause matters. But it’s essential to remember—it’s a dance, not a battle. Leave your ego at the door. Or, as one of my mentors once asked…” do you want to win or feed your family?” By approaching negotiations with a blend of firmness and empathy, understanding when to lead and when to follow, you ensure that both parties leave the floor with a sense of accomplishment and harmony. After all, in the world of negotiation, a win-win is always the most elegant finish.

When we help teams improve negotiation skills, we have the best results with a blended spaced training design with live real-life scenario role plays to practice and perfect the skills they learned throughout the course.

Yes, you can take negotiation skills training online, but as I shared in a recent presentation, you can learn about how to ride a bike on a YouTube video, but you need to do it with someone running alongside you to master it truly.

Have your salespeople and buyers received negotiation skills training?

What impact would it have to win an additional 4%-7% or even 10% of gross profit margins to your bottom line?

Could your team be leaving money on the table?

Schedule a sales effectiveness assessment and figure out your team’s current negotiation skills.

Why Your Sales Team Isn’t Performing and How to Fix It

Let’s be blunt: a poorly performing sales team can be the downfall of any business, no matter how great the product or service is. The stark reality is that the sales team is the backbone of revenue generation. But hey, if you’re reading this, you’re not interested in watching your business falter—you want actionable strategies to propel your sales team to stardom. This article delves into what might be holding back your sales team and provides pragmatic steps to enhance their performance.

The Paradigm Shift: From ‘Salespeople’ to ‘Problem Solvers’

Traditionally, salespeople have been viewed as, well, just that—people who sell stuff. It’s time for a paradigm shift. In today’s competitive market, the most effective salespeople act as problem solvers. This means equipping your team with the tools, knowledge, and mindset they need to understand the unique challenges each customer faces. Resources for this transformation could include targeted workshops, mentorship programs, and ongoing education on industry trends and pain points.

Common Sales Skills Gaps That Impact Your Net Income

1. Closing Skills

One startling statistic reveals that a whopping 67% of salespeople never even ask for the order. Imagine going on a date and never asking for a second one because you’re scared of rejection. That’s pretty much what’s happening here. This could be due to a variety of reasons, including the lack of adequate training in closing techniques and a deep-rooted fear of rejection. To tackle this, incorporate role-playing sessions where team members practice different closing scenarios, guided by experienced mentors.

2. Business Value Conversations

In the B2B world, you’re not just selling a product—you’re proposing a change in business operations. Therefore, skills like discovery, rapport building, and qualifying are indispensable. Falling short in this area is like trying to play poker but not knowing when to fold. Teach your team how to ask the right questions that guide a lead through the sales funnel effortlessly.

3. Build and Deliver a Business Case

Your sales team should be able to convey the benefits of your product or service as a solution to a problem, not just as a standalone offering. If your sales rep can articulate how a feature will significantly improve a process for the client, they’re more likely to make the sale. Workshops focusing on crafting compelling business cases can make a world of difference here.

4. Handling of Objections and Negotiation

Resistance is inevitable. Every salesperson will face objections; the key is to not just anticipate them but to address them effectively and professionally. A good salesperson listens to objections as these could be the steppingstones to insights that seals the deal. Run regular role-playing sessions that simulate various objection-handling and negotiation scenarios.

When we train and coach sales teams, we identify the top 5-10 common sales objections and train team members how to handle sales objections not overcome them. When the objection occurs, the salesperson is prepared, and the discussion is conversational not confrontational.

5. Sell Based on Value, Not Price

The market is full of competitors who can easily undercut you on price. Now that  most teams have fixed their supply chain problems, everyone has inventory they are hungry( often desperate) to move. But what they can’t do is deliver the unique value that your product offers. Training sessions should focus on how to communicate this value to potential customers convincingly.

When surveyed 86% of C-suite executives said they would meet with a salesperson who could present a business case to improve their bottom-line.

Process to Get More Results from Your Current Sales Team

1. Assessing Sales Skills, Motivations, and Beliefs

Before we can figure out how to fix something, we need to know what’s broken, right? Assessment is like the diagnostic phase, an MRI of your sales team,  where you identify the current state of sales skills and beliefs. . It’s not just about asking, “Can they sell?” It’s also about understanding why they sell and what could potentially hold them back from selling more. Does the sales team have a high will to be liked? So high they are not asking great discovery and qualifying questions?

There are many ways to conduct this assessment. One teams often use is the sales manager assesses the skills of salespeople. The trouble with this method is the managers often just look at sales and profit results and not the actual skills to be a top performing salesperson. Sales managers often compare how the salesperson sells to how they sold “back in the day” and not considering the skills needed today.

However, for a more objective view, you might employ third-party assessments or even customer feedback. The assessment instrument we deploy reviews 21 sales skills, competencies and beliefs. Don’t forget about beliefs—sometimes, a salesperson may have all the skills and motivation but still fail due to limiting beliefs like, “I can’t close deals with big clients.” Or “ my customers will buy when they are ready”

2. Identifying Strengths and Skills Gaps

Now that you have the data, it’s time to put it to good use. You’ll likely find that your team excels in some areas while lagging in others. For example, many sales teams have strong product and service presentation skills but lack other skills like discovery, closing and negotiations/  The key here is to be as specific as possible. Instead of saying, “We need to improve sales,” say something like, “We need to work on improving our closing rate for inbound leads.”

Being this specific helps in crafting targeted training modules and application exercises that yield quick and efficient results. You don’t just want to know that your sales team needs to improve—you want to know exactly where they need to improve so you can apply the right remedies. Often we prescribe sales skills training, a formal sales process and sales coaching to close the gaps discovered.

3. Designing Sales Training and Coaching Programs to Close Skill Gaps

Okay, so you’ve assessed your team and identified their strengths and weaknesses. Now what? Now, you train them. But not just any generic training modules will do. What you need is a tailored program that specifically addresses the issues you’ve identified.

For instance, if your team struggles with handling objections, you don’t want to waste time teaching them how to improve their cold-calling skills. Instead, focus on objection-handling techniques, providing them with real-life scenarios and role-play exercises. And remember, training is for imparting new skills, but coaching is for refining those skills. Make sure your program includes both these elements. A good sales training program isn’t a one-and-done experience; it’s an ongoing spaced and stacked process that adapts as your team grows and evolves.

4. Ensuring the Right KPIs Are in Place and Measuring What Matters

KPIs, or Key Performance Indicators, are like the gauges on your car’s dashboard. They tell you what’s happening under the hood in real-time. But here’s the thing—KPIs can be deceptive. Vanity metrics, such as the number of calls made, might look great on paper but do nothing for your bottom line.

What you want are actionable KPIs that give you an accurate picture of your sales team’s health. Think metrics like customer lifetime value, conversion rates, meetings and quotes delivered and deal closure rates. These are the indicators that tell you not just how hard your team is working, but how smart and effectively they’re working. By focusing on the right KPIs, you can make data-driven decisions that lead to tangible improvements.

The Role of Sales Leadership in Sales Effectiveness

Leadership is the cornerstone of any effective team, and your sales team is no exception. Effective leaders don’t just dictate; they coach and inspire. Open communication channels between the leadership and sales reps can help identify issues before they escalate into problems. Leaders should be approachable, open to feedback, and should create an environment that encourages learning and innovation. When we train sales managers and leaders we teach coaching skills, pipeline management skills and how to have a weekly sales meeting that drives growth.

Conclusion

Don’t just skim through this article and forget it. If your sales team is underperforming, you have a wealth of actionable strategies at your fingertips to rectify that. From skill development to leadership approaches, these are not just theories but tried-and-true methods to propel your sales team and, by extension, your business into success.

We recommend assessing the current state of sales effectiveness of your team and developing a plan to strategically improve their skills. It is not unusual the wrong mindset is impeding sales results and lowering profit margins. If that is the case the salesperson needs training and coaching.

How effective is your sales team today?

How much more effective could they be?

What skills and beliefs might be hurting their sales results today?

Let’s schedule a call if you would like to discuss improving the effectiveness of your sales team.

The New Sales Playbook: Thriving in the Post-Pandemic Hybrid Sales Environment

The global landscape of sales is different from what it used to be. In this new era, marked by the aftermath of a pandemic, the post-pandemic hybrid sales environment has emerged, intertwining the virtual with the physical. For sales professionals, the mandate has become clear: adapt to this changed scenario by refining strategies and sharpening specific skill sets to resonate with today’s demands. Unfortunately, as high as 60%, based on our assessment data, salespeople have yet to adapt their skills to a hybrid sales environment.

The Shift to a Hybrid Sales Model Post-Pandemic

Historically, sales thrived on handshakes, face-to-face meetings, and in-person presentations. The pandemic, however, redefined these norms. We witnessed the birth of the hybrid sales model—a synergetic blend of traditional face-to-face sales and remote, digital interactions.

A global crisis, in the form of COVID-19, made this shift unavoidable. Traditional sales interactions faced significant challenges with lockdowns, travel bans, and social distancing norms. However, even as we gradually return to some semblance of normalcy, the hybrid model’s advantages are hard to ignore. It offers unparalleled flexibility, extends reach beyond geographical confines, and can be more time and cost-efficient.

Yet, this evolution isn’t without challenges. The digital shift requires mastering new technologies, guaranteeing effective communication over virtual platforms, and ensuring that client relationships remain robust without the regularity of physical meetings.

Salespeople who still need to adapt and build virtual selling skills are struggling. As I shared in one post, salespeople who have not made virtual selling skills are basically selling naked, like in the story of the emperor’s new close.

The Top Sales Skills for Success in a Post-Pandemic World

Navigating the sales domain in a post-pandemic world demands more than just conventional tactics; it calls for a blend of old-school principles, novel strategies, and an adaptive growth mindset. Here are the most sought-after skills in this hybrid sales era:

Building Business Relationships

Even in a digitized environment, the human-to-human connection remains at the core of the business. The relationships forged with clients go beyond transactions:

Personal Touch in Digital Interactions

It’s not about replacing face-to-face meetings but about replicating their essence in a digital context. This could mean using video calls more often, remembering personal details about clients in your CRM, or even sending a quick note on special occasions.

Leveraging Technology

Tools like CRM software can remind salespeople about follow-ups, ensuring no leads fall through the cracks. In addition, analytic insights can indicate the best times to reach out or offer personalized suggestions to clients. As CRMs add AI functionality, the CRM will recommend actions for sales managers and salespeople.

Value Addition

In the post-pandemic era, relationship-building means being an active partner in a client’s success. This involves understanding their challenges and proactively suggesting solutions—even when there’s no immediate sale involved.

Identifying Goals and Challenges

As I shared in my book, Driving Explosive Growth, human-to-human interactions will become the determining factor for sales teams who reach and surpass their goals and those that miss their sales plan again. More salespeople missed the plan that was achieved in 2022, and we do not expect 2023 to be much different.

Salespeople trained in building business relationships know how to build rapport and know industry trends and everyday struggles their customers have. They have been trained to use discovery and qualifying questions to get below-the-surface discussions with buyers and truly understand the problems to be solved.

Virtual meetings, building rapport, and asking great discovery and qualifying questions are essential for salespeople today. Opportunities they once would see as they walked around prospects’ facilities now must be heard from insightful questions that demonstrate competence and build trust.

Discovery and Qualification

Recognizing potential clients and understanding their needs is an art in some companies and a science in market-leading sales teams. We spend much training and coaching helping salespeople develop strong discovery and qualifying questions today.

Digital Profiling

In a world with extensive digital footprints, salespeople can use social media, company websites, and online reviews to get a preliminary understanding of a lead. Some sales teams are using sales AI tools.

Active Questioning

Instead of generic questions, salespeople should aim for specific queries that uncover needs. For instance, instead of “Do you need a new software solution? one might ask, “How are you addressing your current data analytics challenges? “By the nature of your questions, you can demonstrate competence and build trust.

Continuous Learning

Staying updated with market trends and potential client challenges becomes crucial with rapidly changing industry landscapes. Often teams leverage the voice of customer research to understand customer satisfaction and gain insights into any unresolved problems customers have today. Voice of customer research helps identify current challenges your customers and markets are experiencing.

Empathy and Active Listening

In a world bombarded with information, genuine understanding becomes a premium commodity. Unfortunately, too many salespeople ask questions, listen to reply, and do not learn. Active listening is critical to becoming the trusted advisor clients want and need today, and it is a skill that can be learned.

Emotionally Intelligent Responses

Recognizing and acknowledging a client’s emotions or frustrations can create a rapport. For instance, understanding the added stress businesses may have faced during the pandemic and tailoring conversations accordingly.

Feedback Integration

Active listening isn’t just about the present conversation. It’s about integrating feedback from past interactions. If a client mentioned a challenge in a previous conversation, bringing it up in subsequent discussions showcases genuine interest.

Digital Etiquette

On virtual platforms, active listening might involve non-verbal cues such as nodding or using reactions on platforms like Zoom.

Customer Personality Profile

Salespeople today must have solid situational awareness and be able to identify the personality style of their prospects. We teach sales teams how to adapt their presentations based on DISC,

Acting like the CEO of Their Region of Responsibility

The modern salesperson needs to be a strategist, viewing their portfolio with an owner’s lens. Time is one of their significant assets, and current salespeople must be able to allocate time based on opportunity. They must make decisions based on ROI and consider the cost of sales.

Data-driven Decision Making

This involves closely monitoring metrics like lead conversion rates, client feedback scores, and return on investment for particular strategies. They review what customers buy and recommend other products based on what similar customers purchase.

Risk Management

As a CEO would for a company, salespeople should be adept at anticipating challenges—be it potential objections from a client or external market shifts—and crafting contingency plans.

Stakeholder Management

Just as CEOs manage various departments, salespeople must liaise with delivery teams, product managers, or finance departments to ensure seamless client experiences.

Collaboration – Building and Delivering a Business Case

The essence of sales is solving a problem. Crafting a compelling narrative around this can sway decisions. As we assess sales effectiveness, we often find salespeople need to improve or have a low figure-it-out factor. We must upskill salespeople to build and deliver business cases, not just product features and benefits.

Cross-functional Partnerships

Collaborating with technical experts or product teams can lend more credibility to a pitch, especially in B2B sales scenarios.

Storytelling

Data is essential, but stories resonate. Whether it’s a success story of a past client or a hypothetical scenario illustrating the impact of your product/service, weaving a story can make your case more compelling.

Create Customer Champions

When salespeople are skilled in collaboration, the customer feels ownership in the plan and becomes an internal champion. Salespeople who pitch slap their customers lose that critical step of cooperation.

Negotiation and Closing

This phase is where the rubber meets the road. Mastery here dictates success. Unfortunately, our sales effectiveness assessment data shows less than 14% of salespeople have received negotiation training. As we learned in a buyer study, over 75% of professional purchasing agents have been trained in negotiation tactics, which often leads to a mismatch of negotiation skills. If salespeople do not receive negotiation training, they leave money on the table that could have flowed to your profits.

Understanding the Client’s Position

Often, negotiations stall because of unseen constraints on the client’s side. Unearthing these—be it budgetary restrictions, past experiences, or internal processes—can lead to more fruitful discussions.

Win-Win Solutions

Negotiation isn’t about victory but alignment. Instead of hard discounts, offering extended support or training could sweeten the deal for the client without compromising the price.

Professionally Handling Customer Objections and Not Trying to Overcome Them.

Top-producing salespeople know customers’ top objections and are prepared to handle them professionally. Our sales skills training teaches salespeople how to handle objections and not try to overcome them professionally.

Selling Based on Value Delivered, Not Price

In the information age, competing on price is a race to the bottom. The focus needs to shift. As we assess sales effectiveness in teams, we find many sales teams sell based on price and not the value their product or service delivers.

Highlighting Long-term Benefits

A slightly pricier solution might offer benefits that, in the long run, lead to cost savings or greater value for the client.

Building Trust

Often, resistance to higher prices stems from a lack of trust. Regular client testimonials, case studies, or pilot projects can bolster confidence.

Building a Business Case

Top-producing salespeople act as trusted business advisors and know how to build and present business cases to close the sale.

Acting as Consultants Rather Than Sales Reps

Today’s clients are looking for partners in growth, not just vendors. I want you to know that clients wishing to have trusted advisors share insights not found on your company website.

Offering Tailored Solutions

This might involve understanding a client’s industry in-depth, recognizing trends, and offering resonating solutions.

Educative Approach

Sometimes, it’s about educating clients about potential challenges they still need to recognize and showcasing how your product/service can address them.

In essence, the post-pandemic world has upped the ante for salespeople. It’s no longer just selling a product or service; it’s about offering holistic solutions, building genuine relationships, and navigating the nuances of the digital world with finesse.

Conclusion

The future of sales in a post-pandemic world isn’t just about selling—it’s about understanding, adapting, and providing genuine value. As the line between physical and virtual continues to blur, mastering these skills will not only be advantageous but also imperative. The message for sales professionals gearing up for this new era is clear: refine, relearn, and reignite your sales strategy—the future promises for those ready to embrace it.

Do your salespeople have the skills your customers and prospects expect today?

How effective is your sales team today?

How much more effective could your sales team be?

What impact would higher close rates at higher gross margins have on your bottom line?

Let’s go ahead and schedule a call if you’d like answers to questions like the above and to improve your sales effectiveness for today’s customers.

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