1- 330-413-8552 Mark@NoSmokeAndMirrors.com

sales velocity

Improve Sales With A “Sales Requirements Summary”

Improve Sales With A “Sales Requirements Summary”


In today’s market buyers have the power to find solutions to their problems. Sales people and their sales processes must adapt based on what we know about buyers today. Market leading sales organizations are adding the power of the “sales requirements summary” into their solutions presentations to win more sales, and increase sales velocity.

When we ask salespeople why a buyer chose an alternative product we often hear it was price, followed by a unique feature or benefit, and then relationship. However when we ask buyers why they did not buy, “price” was not on the list of reasons. So if price is not on the list, why is it buyers do not buy? The consistent and overwhelming answer was;

“I do not believe the salesperson clearly understands my problem, and therefore I do not trust the solutions he is presenting will adequately and completely solve my problem.”

To overcome this buyer concern and ultimately improve sales close percentages and increase sales velocity I coach salespeople to add a “requirements summary” in their proposal. So what is a requirements summary? If your industry demands long presentations there are a number of templates for requirement summaries. However I believe in the KISS principle so I have found a good requirements summary includes the following;

  • restate the problem to be solved as you understand it
  • restate buyer and all project influencers
  • provide details from your meeting notes about the specifics of the problem, corresponding products and or services your solution must work with
  • how to measure the success of your proposed solution
  • restate timing the buyer expressed for the solution to his problem to be delivered
  • state your delivery commitment with a call to action…if you need the product delivered by ______ we will require an order by ________.
  • speak to all buyer and influencer pain points discovered in the sales qualification process
  • state how your solution uniquely solves the requirement and pain
  • specific part number(s)
  • total cost summary
  • timeframe for quote, ideally 30 days

The requirements summary helps overcome the reason why buyers do not buy; Trust. In addition to showing you clearly understand the buyer’s requirements and pain, the summary also provides the opportunity for the buyer to share if requirements have changed.

Most salespeople are so focused on selling they are not truly listening. Knowing you must produce a requirements summary in your sales proposal insures your salespeople are asking questions to intimately understand the nature of the problem to be solved and how the buyer and his or her team will measure the results.

Does your sales team provide a requirements summary in each proposal?

Do you see any negatives in providing a requirements summary in your sales process?

A requirements summary is a simple and effective way to build trust with your buyer by illustrating you understand his problem and how you plan to fix it. Most competitors will be leading with price because they feel that is what wins orders. Be one of the top 10% of sales professionals by taking copious notes concerning the problem to be solved, all those who have input in the solution, and everyone’s pain points and you will win more sales faster regardless of how “cautiously optimistic” your buyers may be.

New Year’s Resolution ; Stop the “Sales Insanity”

It’s that time of year we make New Year’s resolutions. We set goals in our personal lives and for our businesses. Bloggers are discussing resolutions for your business like increasing profitability, firing bad customers, listening to customers, as well as unselfishly making your team better.

Another article I found particularly useful advice for business leaders is Harvey Mackay’s  about setting realistic benchmarks. In this article he highlights fundamentals we need to consider before setting goals like;

Know what you really want

 

Know your motivation

 

Zero in; focus on one or two where you can make the most improvements

 

Take risks…great quote: “ you will never stub your toe if you walk backward”

 

Involve those around you

 

In the spirit of “Zeroing In” I recommend stopping the “sales insanity”, and define a sales process that works for your market of today. Let’s face it; the way buyers are buying today has changed from this time a year ago. We see buyers;

Taking longer to make buying decisions

 

Involving more people in the buying decision

 

Buying Needs not Wants

 

Stronger focus on ROI

 

The Role the internet is playing in the information gathering

 

The role the internet plays in the beginning of the trust building process

What most businesses choose to do is increase their sales goals and tell their sales teams to “just make it happen”….this is insane!

Stop the insanity and develop a sales process based on how your buyers are buying today and you will realize the revenue increases and increased shareholder value.

Or, go ahead and make Einstein turnover in his grave by; doing more of what you are already doing that didn’t work in 2010, and expect different results in 2011.

 

Does your team have a defined repeatable sales process? (are you sure?)

 

Do you know why buyers buy from you? …Why they don’t?

 

Have you changed your sales process in the last six months? (if not it’s broken, and you are losing sales you should be winning)

 

Is your team’s lack of market knowledge showing in your sales?

 

What new buying criteria is your team experiencing in the market today?

 

Make understanding how your buyers buy and equipping your sales team with a sales process and complementary tools in 2011 a New Year’s resolution you keep in 2011.

And remember… “it’s not about how you want to sell, but helping your buyers buy , the way they want to buy”  ( nosmoke-ism)

Why Can’t Salespeople Sell New Products?

The CEO said…” Why can’t my salespeople sell new products” ? I hear this frustration from business leaders often. The assumption is the salespeople are not capable, but the reality is they can sell new products if they are provided a strong value proposition and sales tools that guide potential buyers through their buying journey. If your new product or service clearly provides four yes’s then it will not feel like pushing mud uphill during launch. However far too often new products are thrown over the wall from engineering and product management and sales are told …”just make it happen”.

The reality is you do not want your salespeople spending time figuring out how to sell the new product.

Salespeople follow the path of least resistance to revenue.

If your new product lacks a clear value proposition, sales tools designed for specific buyer personas, and a history of poorly launched products your launch may be doomed.

Equip your sales team to gain new product sales velocity by clearly understanding the problem you are solving for your buyers and the buying process and criteria they use to solve their problems.

How successful is your team with new product sales launch?

 

Does your new product offer a quick path to revenue or does it feel like pushing mud up hill for your sales team?

 

Can you afford to have your salespeople figuring out how to sell a new product while your core product sales suffer?

 

Are new product sales an Art or Science in your organization?

Miracle on 34th Street and The Golden Rule Of Sales


Miracle on 34th Street and Lessons in Serving (not Selling) your Customers

It’s the holiday season and my family and I are watching our favorite movies on television; Home Alone, A Christmas Carol, A Wonderful Life, Christmas Vacation, and the classic…Miracle on 34th street. A clip ( the one above) caught my attention as a sales lesson we can all learn from this movie that was released in 1947.

The Golden Rule, applied to managing people, helping buyer’s solve their problems, will never let you down.

Does your sales team set out to passionately solve your customer’s problems or just hit their numbers …selling what’s in their bag?

If it’s the later, you may want to watch A Miracle on 34th Street at your next sales meeting. It’s often not about doing one big thing, but an overall culture of doing many little things , very well.

Golden Rule of Selling :Serve your customers….Don’t Sell Them.

Merry Christmas!

Do You Have a Repeatable Sales Process? …Are You sure?

Do You Have a Repeatable Sales Process? …Are You sure?

Market leaders understand the importance of having a defined, repeatable sales process. They clearly define the steps of the sales funnel and closely monitor the transitions from one step to the next. They are constantly assessing the process to make sure it is in alignment with how buyers want to buy. If you find a sticking point, a common point in the sales process that stales get stuck or goes dark, then you have defined the need for new sales tools to keep the conversation moving to a close. Have you prepared your sales team to hit that goal you just gave them?

So let me ask again; Do You Have a Repeatable Sales Process? …Are You sure?

If you were to meet with your most recent salesperson to join your team  are they able to clearly articulate the sales process? Will the process they share be the same process your top gun salesperson uses to consistently exceed their goals?

When is the last time you changed your sales process?

Do you believe your buyers buying process and criteria have changed in the last 6-8 months?

What are some of the big changes you have seen to how your buyers buy?

What new tools has your team developed to meet changes in how your buyers buy?

Taking the time to clearly understand how your buyers buy and the criteria they use today to make buying decisions empowers you with valuable information to close more sales.

Sensing shifts in how your buyers buy before your competition results in your product or service being the perfect solution for your buyer’s problem.

Why Do Buyers Buy From Your Team? …Why Don’t Buyers Buy From You?

One of the quickest ways to get your sales back on track to building sales velocity is to understand why your current customers buy from you and why some buyers do not. It sounds like a simple question, but it is critical to gain this understanding to position your sales team for repeatable profitable growth.

Do you know why your buyers are buying from you today?

Do you know why some buyers you have quoted do not buy from you?


Chances are the buying process and criteria your buyers are using to make purchasing decisions have changed over the last six to eight months.

Once you identify why buyers today are buying or not buying from your team you can build the sales tools necessary to keep sales conversations moving to a close.

Are Your Salespeople Afraid of the Dark?…Look For the Signs

If you have been in sales, led salespeople you know what it’s like when a sale “goes dark”. You had a “great meeting” , you listened, and you felt you heard the buyer’s pain, you followed up with a proposal that shares how your product or service solves their pain….and then nothing. A day turns into a week, a week a month and your buyer goes dark not answering your voice mails, emails, faxes, and so on.

To make maters more stressful the salesperson shared how they felt they finally closed “XYZ “and all of senior management is now waiting for the order.( and asking for what seems like hourly updates as to when it will come in)

What are your buyers doing when they go dark…does your team know? If not what you will experience as signs your salespeople are afraid of the dark include;

  • end of sales period price discounts

 

  • change in agreed payment terms

 

  • change in standard shipment terms

 

  • free products and or services added to “close the sale”

The most common cause of salespeople becoming afraid of the dark is a shift in the way your buyers are buying. Your current sales process lacks a clear understanding of the buying process and you require new sales tools to keep the conversation moving to a close.

Reminder, it’s not about how you want to sell, but helping your buyers buy …the way they want to buy!

 

 

How about your organization……

 

Is your sales team afraid of the dark?

Do you have one or two salespeople who seem more afraid than others?

Do you hear about a number of good meetings that never result in an order?

Market leading organizations are constantly in their markets and adjusting to shifts in the way their buyers are buying.

Don’t Kick Your Salesperson’s ASS, …Help Them Find Their Number….

 

One of the easiest things a sales manager, (business leader) can do is resort to a; “boot on the throat”…” a throat to choke” ….and “Ass Kicking “mode. After all it takes very little effort, knowledge or skill to be a critic and a bully.

True leaders help train and motivate their teams.

 If your desire is to hit and surpass your sales objectives….Help your salespeople “find their number”.

I see it all the time, a new product launches or a new sales goal is distributed to a sales team and the key performance measurement: Sales to plan is not met. The easy route is to start “Ass Kicking”. You know …the weekly and by weekly conference call thrashings in front of their  peers. The sales update calls at 5pm on Fridays that last until 7pm. The “contemplation of your navel” market reports on why they can’t hit their sales numbers and their future action plan to change the results.

Yes this may drive some momentary, fear driven results, but this is not how you create sales velocity. In 99% of the cases I have been asked to help figure out why sales objectives were being missed it was not lazy salespeople who needed their butt’s kicked. A frequent cause was poor (or a total lack of) sales training. In these cases struggling salespeople are told to “stop making excuses and just make it happen, figure it out”. However the reality is the reason your team is missing numbers can be traced back to your understanding (yes you) of your market and buyers problems, buying criteria, and buying process.

Sales velocity is sales increases with direction and momentum and it is never driven by fear.

If your salespeople are struggling with sales, particularly new product sales and or new business sales my advice is to stop… the beatings as the morale is not improving and “help your salespeople find their number”. Their number is how many rejections they have to experience to have a win.

For example at one time in my career I ran business development for an ad firm. After tracking my calls I found my number was 18. If I made 18 calls I would get 2 appointments and from those two appoints I would close 1 new account. Instead of dreading the call process it became a game. Each rejection meant I was one step closer to a yes. Over time I also tried to improve that number.

A couple of funny things happen when you track how many rejections your team receives;

First, they make more calls. More calls mean more opportunities to win, more opportunities to start conversations.

Secondly, if your sales team has been properly trained on how to listen to buyers, determine their unresolved problems, and they understand the problems your product solves….you will have a number of net new potential clients dropping into your marketing funnel. Some of these accounts may not buy for 12-14 months, but if you compliment your calls with a lead nurturing campaign you have a high probability of closing them when their problems, (their pains) become unbearable.

As the leader you must listen to your team and look for diamonds as far as what is working and share it with your entire team. In addition you must look for common reasons sales do not occur and work with marketing to create sales tools for these common roadblocks in the flow of the sales process.

So do me (and your sales numbers) a favor …

Track number of rejections for each team member for 60 days. Gain an intimate knowledge of common reasons buyers are rejecting your salespeople.

 

Have your salespeople report on their number of rejections each week and you will see more net new sales and your marketing funnel will increase exponentially to help your future sales numbers.

Or go ahead and Kick Some Ass….it sure worked when you were a salesperson right? …Oh it didn’t? It actually made you feel like a number, and you lacked a loyalty to that manager and or company? Or you left that team, that idiot boss and now you lead the competitor’s sales team?  Interesting…did the ass kicking make you seem desperate to your accounts at the time and the deals you did close were below your targeted profit margin? Hmmm…so what makes you think “Ass kicking” makes your team feel any different?

Does your team track number of rejections?

 

Does each of your salespeople know their number?

 

Does your organization use those individual rejection numbers to identify team member who need training?

 

If you are in sales, do you know your number?

 

Do you find when the pressure is on salespeople chase new business differently? Are they making things up on their own? Making promises your product or service can never achieve?

You always have a choice.

You can “let the beatings continue until the sales and morale improves”….’let the Sh@t flow down hill…”or you can chose to lead your team. You can help them, motivate them to make more calls, and clearly understand your market, buyers, and have a record setting year.

Want to Jump Start Sales and Morale? Write a “Passion Statement” For Your Business….

 

Business leaders for years have been taught to write a mission statement, a values statement , distinctive competence, and their Unique Sales Proposition. Leadership teams are sequestered off to three-day retreats to write these statements only to often return and go right back to practicing what prompted the retreat in the first place…Why? The reason is far too often is the “work” they did at the retreat was all “head work” and lacked “heart work”.

The quickest way to jumpstart sales as well as the morale of your team is to create a “Passion Statement”.

 

So what is a passion statement? A passion statement is something I help my clients to create that explains;

  • what problem your product or service solves?

 

  • who do we solve it for? Who are our buyer personas?

 

  • what emotion does our solving the problem create in our clients?

 

  • what emotion does solving our clients problems create for us?

 

If you study companies who have become market leaders they very seldom set out to build huge profitable companies. In the majority of the cases they saw a problem that someone had and set out passionately to solve that problem. Their focus was not as much a business as it was a quest.

For years we have heard; “fake it until you make it” , unfortunately however you can not fake a passion to serve your clients and your market.Your customers will quickly detect inauthentic commitments to serve.

An authentic passion ( quest)  to serve your markets unresolved problems takes your business to another level in the minds and hearts of your market.

 

Let me give you two examples of companies I have helped. One is a typical stale example without passion often find after interviewing their team and their customers, the other a passion statement we all can rally behind.

Example A

 “our business’s purpose is to create wealth for our owners and shareholders. We plan to accomplish this by charging the maximum price the market will bear for our product and service and we plan to hold our employees and partners accountable to this objective…” ( don’t worry once the CEO understood this was his teams’ perception ( and his customer’s) of why they were in business we helped them to change this )

 

Client Name not shared for obvious reasons

 

Example B

 

“Our passion is to helping consumers with physical disabilities from the waist down experience the rush and  freedom that results from riding a motorcycle.We are committed to helping our clients connect to their passion or riding”

 

Mobility Conquest

 

 

Which company would you like to buy from?

Which company would you like to work for?

Which company is “selling” you and which company is “helping you buy”?

 

If you had to state your company’s passion statement today…is it more about what you want? Or is it about serving an unmet need of your customers? ( by the way, I do not mean the statement written on posters, shared in quarterly meeting …I mean the mission your team ( and your customers) perceive it to be)

 

Who would you rather compete against… company A or B? Why?

Ok …I hear you CFO’s and bottom line driven CEO’s out their saying …”Ya… but…” so let me assure you that if you study the most profitable market leading companies they have a passion statement.

Still not a believer? In my next post I will share the signs that you need a Passion Statement.

Sales is a Science When You Have Strong Marketing….an Art When Your Marketing Sucks!

 

 

 

 

Is sales and “art” or a “science”? It depends….is your marketing strong, or does it suck?

In my last post: Is Sales an Art or a Science I shared how I opened a recent presentation to business owners and their senior leadership teams with a question;

Is Sales an Art or a Science?

 

The responses were pretty predictable;

Felt sales was a science: 30%

Felt sales was an Art: 60%

Felt sales was both an art and a science: 10%

This was interesting, however I heard the soft comment I was waiting for: “It Depends…on your industry, team’s training, product, price, availability of sales tools, your web site….” (Perfect! Now we are going to have a discussion!)

Then they asked me…what did I think? Art or science? I said “yes” as sales is often both. I find where sales falls in the spectrum with art on one end and science on the other depends on the organizations competency in marketing.

Marketing? Yes, because the fundamental job of marketing is to have an intimate understanding of your market, its buyer’s problems, and how they set out to solve those problems. Competent marketing teams clearly understand the buying process, cycle and criteria. They create tools to help buyers buy.

Market Leaders

If you have a strong competency in marketing, you know your market, and its problems that need to be solved. You know the buyers; you have clearly stated buyer persona’s and you understand the buying process. Your message is clear and does not require a translator (salesperson) to help buyers understand the problems your products or services solve.

Market leaders have such a clear understanding of the buying process their sales is more of a science. The art in the sale for market leaders is the salesperson’s ability to ask open-ended questions and apply proven sales tools for the right step of the buying process that keeps the conversation moving to a sale.

In market leading organizations, sales are 80% science and 20% art.

Unfortunately less than 10% of organizations would be considered Market leaders. Those that are, dominate their markets.

 

 

Market losers

 

If your team lacks a competency in marketing you will experience it for yourself on sales calls. Your team plays; “ feature and benefit BINGO” in hopes they rattle off all your features and benefits and at some point your buyer yells “BINGO” as they put the pieces together with the problem they have, and they understand how they “think” you solve this problem.

Market losers really do not know the problems their products solve for their buyers, the buying process, or buying criteria. In most cases their products were built from the inside out and marketing was tasked with “creating the need” for their products…losers!

Market losers launch products and believe they can “manage by objectives” and meet their goals by managing key performance indicators created without any knowledge of their market.

Market losers  have high turnover as they replace those who fail to hit goal, and skilled team members leave to join market driven teams.

Market losers have websites that talk about their company, years in business, and they prepare the feature and benefit BINGO card for their buyers and salespeople.

For market losers 80% of sales is an “art”.

The CEO and CFO of market losing companies go crazy because there is a lack of predictability, and they can not “manage” their way to market leadership. In this model your salespeople need to disregard what marketing does provide, and listen to their buyers, understand buyer problems, and create their own sales tools that discuss how their product or service solves those problems.

The danger in this model is sales may be promising things your product does not do, and the message varies by salesperson and thus is not repeatable.

From my experience, I would say about 50% of the companies out there are Market losers.

They build products because they can and not because they should. They are sales driven or bottom line driven. They have high turnover and ironically the salespeople they are letting go today won awards for sales performance two years ago….so what changed?

From my experience 40% of companies are somewhere in between but striving to improve.

They often launch a product that becomes very successful and then have a series of launches that fail. As they grow, the leaders who knew the market are now “managing the business” and lose touch with the market and its problems. They forget it was their understanding of market problems that caused their success and often fall into the trap that they think it was their personal brilliance and or hut spa.

As I closed the discussion I asked everyone in the room to do two things in the next seven days….

  1. Go out and meet with your customers and ask questions about their business and the problems they are facing, and how they try to solve those problems

.

  1. Look in your top salesperson’s trunk of their car and or lap top and see the tools they are using

The good news is everyone can become a market leading organization and realize higher than market average profits, lower turnover and increased shareholder equity. When you clearly understand your market and buyers, and create sales tools to help buyers move through their buying process, you create a win-win-win.

So what kind of organization do you work for? Market leader? Market Loser? Or someplace in between? Why?

 

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