Sales

An “old school” technique to drive explosive sales and profit growth is the “four legged sales call” It doesn’t matter if you have a direct sales team , regional managers and or independent representative firms, the four legged sales call is the quickest path to incremental revenues and fixing your sales problems.

Let’s face it, in most markets out there it’s tough. The buying process has changed, we have more irrational competitors, and a much larger number of people influencing the purchase.

Sales today is like walking on Jell-O, its difficult to gain traction and easy to fall down.

I have a number of business leaders expressing a need for a quick fix, a quick way to fix their sales problem. They often phrase the need as “my sales rep team just can’t execute our plan.” When I hear this I often pause as based on my experience most salespeople “try” to execute “the plan”, however the root of the plan (marketing strategy) is often flawed and therefore they fail to execute and meet their sales goals. What market losers do is race to engage with what I call Mullet Marketing; doing the marketing work after the launch instead of understanding the market and it’s problems before the launch.

What are some signs your sales process is disconnected from the market?

• 70% or more of your sales team are missing sales key performance indicators
• Profit per sales below key indicator goal
• Lead to sale ratio below prior, below goal
• New product sales fail to meet plan
• Customer satisfaction scores decrease
• Customer service, technical assistance increases

The quickest way I have found, even with all the new CRM tools , win/ loss survey companies, online surveys, and so on is the “four legged sales call.”

In the four legged sales call the salesperson in charge of the account and is accountable for the sales from that account is joined by the VP of sales or the company President. While your salesperson is selling, your focus is to listen and observe.

What you are listening (looking) for?

• salesperson’s understanding of the buyer’s problem
• salesperson’s ability to communicate the problem your product or service solves
• Does your salesperson have the right tools to help the buyer make a buying decision?
• What are the buyers’s buying criteria today?
• What is the buying process?
• Does your sales process mirror the buying process?
• What sales tools does your salesperson have and which ones do they use? Are they current, or something they created themselves?
• Does the buyer have other problems they verbalize but your salesperson fails to hear?
• Where does the buyer turn today when faced with an unresolved problem? …the internet, a trade journal, calls a local representative…
• What other products does your buyer buy from competitors that they could be buying from you?
• What % of the time is your salesperson listening versus talking? ( my favorite indicator)

I promise you, after a few four legged sales calls you will have a much better understanding of your market, buyers, and how buyers are buying. Make sure you visit accounts you are currently selling as well as those you lost and or are trying to sell. When you return to corporate gather your notes, look for common data points and adjust.

If you have not changed your sales process in the last six months it is broken!

When is the last time you went on a four was legged sales call?

When you ask your salespeople why they are not hitting sales objectives, do they say “price”? ( if so they are wrong)

What is your buyer’s buying process today? How has it changed over the last 6-12 months?

Are their other “old school” methods to fix sales problems? If so, what are they?

I enjoy sales, I really do. I see sales as the ultimate example of serving others. You connect with people in your market that may have problems your product or service can solve, and you help them solve their problems. For me it’s the ultimate rush helping clients solve problems they have struggled with and felt they must learn to live with. However there is another sale entrepreneurs have to make that is not nearly as fun and can be emotionally and physically taxing if you do not know what you are doing…raising investment capital.

Typically the companies I serve have the capital and or are self funding and I am asked to create a repeatable sales process, based on how their buyers want to buy. Then I train their team how and when to use the sales tools we create for each step of the new sales process. In one instance however, a company I was asked to turn around lacked adequate access to capital to truly scale the business. So I approached raising investment capital as I would any market with various buyer personas , but in this case what I was selling was the viability of the business and future potential. I found there are basically five ways to fund your growth and each has its own characteristics, requirements, needs and challenges. Over a three month period while out making sales calls with customers, I met with as many “potential buyers” for funding as I could to understand  shape and I even named my buyers, my ways to raise funds.( I had way to much car time, so stick with me)

Self Fund through sales revenue – “Willy Lowman”

State and Government Grants – “Annette to detail”

Friends and Family- “Have-I” , as in have -I got a deal for you…

Angel Investors- “Michael”, like the archangel

Venture Capital –”Barbra”, from the show shark tank

The first I called “Willy Lowman” from Death of a Salesman. You are out chasing revenue, cold calling, following up on every potential lead, and networking like crazy. You bootstrap your way, working 12-14 hours a day meeting with clients who could provide that next big order. At night you stuff envelopes with letters and brochures, and scour the internet using social media tools searching for the right contact to speak with at your future targeted accounts.

Characteristics– You often find yourself bunking on friends couches and driving great distances simply because the meetings need to occur but you lack the capital to afford air flights and hotel rooms. You have a passionate connection to your product and you have the ability to sell convincing presentations that drive early orders. You may hire independent sales representatives to sell your product on straight commission, but quickly find they too require time, your most precious asset at this point.

Requirements – You have to be skilled at taking inventory of what you have to work with and leveraging it to the best of your ability while always being cognizant of the businesses cash requirements, cash flow. You personally will do without.  You need tenacity, good old fashioned (excuse the expression)… “piss and vinegar”. You will have many doors slammed in your face and you will need the ability to press on in the face of adversity. You know the “right” way to get orders, but you lack the capital today, so you do what you need to do. I have 50 other ugly truths in my eBook you can download off my blog. You have to possess the ability to create learning’s through each transaction and adapt quickly.

Need – samples, sell sheets and a clear understanding of the problem you solve, and who potentially has that problem. With some of the software out there today and help from friends in your network you can create some professional presentations and sell sheets. You must have a web site.

Caution – it’s not unusual to start a business this way trying to sell your way to success, however know that it is not for the faint of heart, and if you do it for too long you too run the risk of going nuts like our buddy Willy. If whatever you are launching cannot gain traction and begin to result in predictable sales revenues within 12-18 months, cut bait! Chances are you are pushing mud uphill and you have not answered one of the four questions with a yes.

So how about you…have you launched a business on shear tenacity? How did it turn out?

As you look back, how long were you in the bootstrap mode? (Or are you still in it?)

What did you find the hardest part of this phase?

What advice would you give someone who has desperately tried to scale their business, their dream for 18 months with no success?

The key to funding I have learned over time is to truly understand where your company is on the business growth continuum. Is your business pre-cash, do you have a few customers, some revenue… but needing capital to scale, ….?

Once you clearly understand where your business is, you can connect to the right kind of funding. As you move from self funding / friends and family to Government Grants to Angel investors to Venture Capital, you must clearly understand where you are at and what your buyer (investor) requires.

What I have experienced is friends and families are investing more in you and your abilities than the business. They are looking at your past success and your personal abilities. They have a personal relationship with you.

Government Grants/ other Grants are focused on answering a specific issue. You must be skilled at writing grant applications and clearly answering how your product falls into their grant offering.

Angels fund from small $20k investments up to $2 million from larger angel funds. Angel funds are groups of angel investors who pool their monies and invest in companies. Sometimes members of the fund may also wish to make “side car” investments in addition to the fund investment. Angels focus on;

• proprietary product and or technology
• leaders ability to lead organization, monetize opportunity
• the market and your product solution’s potential
• your team and its ability to execute
• your exit plan, who would be potential buyers, or do you plan to go public

Venture Capital traditionally invests in opportunities over $2 million. They are industry specific and the cost of their funds in terms of equity in your business is often much greater. They are focused on return on their investment. They have specific business valuation models and your engagement with them will feel more like a business transaction than a relationship. VC’s will receive 1,000’s of pitches each year and only work with a select few companies that match their criteria. I recommend you watch the show Shark Tank and pay attention to the discussions, the interaction as it will prepare you for possible discussions you may be having should you pursue VC funding.

If you are an entrepreneur and feel the next step to truly scale your company is funding, make sure you understand where your company is at, and what type of funding source best matches your needs. If you are like me, you will find it the most challenging sales process you have ever experienced!

The process of sales does not need to be as difficult as we make it. Market leading organizations understand it all starts with understanding your market, its buyers, and the process and criteria they use to make buying decisions. Once you have a clear understanding of your buyers you position your product or service in your market with a value proposition that resonates with your buyers and you are on a path to a sale. Unfortunately far too many sales teams today are being asked to “just make it happen” in their markets and they are unprepared to achieve the increased goals they receive every year. They lack a current value proposition and distinction from competitors and therefore they are being asked to sell naked.

When I work with a company who is asking their team to sell naked I often give their CEO one of my favorite children’s books; The Emperor’s New Clothes. If you are not familiar with the story; there once was an emperor who spent a great deal on money on clothes.( consultant advice) One day two swindlers came to town and said they would make the emperor clothe the most beautiful he has ever seen, but if anyone could not see the clothes they were unfit for their positions and or just stupid. So the deception begins and the emperor does not want to admit he can’t see the clothes so he pretends to put on this invisible garment. His minister (senior management team) does not want to admit they do not see it in fear of being judged unfit so they pretend to see it and they compliment the emperor. So the emperor proceeds to walk around town naked and no one tells him until he comes across a little boy who is our hereticin this story and shares the emperor is naked.

Organizations that send their salespeople out lacking a value proposition that connects with buyers today are asking their salespeople to sell naked.

Like our emperor sales teams have been told what their senior leadership team believes (hopes) to be their value propositions; any maybe some of them once were true. However if you send your sales team out lacking a current value proposition that instantly resonates with buyers in your market because it shows you understand them, their needs, their pain…then you are sending your salespeople out to sell naked. Yes, you probably say what you believe to be your value position in sell sheets, and on your web site, or what a high paid consultant crafted for you, but the buyers instantly know you’re naked.

Note; just because you and your team say something over and over again is does not make it true for your market.

Like the child in the story buyers are not worried about your politically incorrect market secrets that no one on your team is talking about. Some (most) buyers will let your naked sales team discuss and play feature and benefit bingo, and when they leave agree to never meet with your team again. Not because your salesperson was not a good person, or did not listen, but because the buyer does not see how your product or service can help him. The buyer does not care about all the opinions your senior management team has shared about how brilliant your strategy is. Your buyers are not worried about being judged internally as unfit, non loyal, not a team player; they simply make judgments based on what your salespeople say and present on whether or not your company can help them with a current unmet need.

I can hear some CEO’s saying; “cute story and probably true for some small companies, but not mine, I have been in this industry for over 20 years”…well I hate to be the one to tell you, but you , your senior management team and your salespeople could be naked too! You are naked sitting at the head of the boardroom table and your team is afraid to tell you that your product or service lacks a value proposition today. They all know it but how do you tell someone their “baby is ugly”?

If your sales and profit results are not at plan I promise you, you look naked to your board, your owners, investors, your team, and other business leaders in your community.

Let me give you a quick example;

If a sales rep came to me and presented a Blackberry cell phone as the most innovative, best in class, state of the art, most robust, best service, highest quality….and positioned his product as the “only” cell phone that allowed me to have email on the go ,  he or she would basically be naked to me. Although the salesperson may have the best enthusiasm, product knowledge, presentation skills and desire to win, they clearly are not aware they are naked. What they are saying was once true and it drove sales, however the competition has not only caught up and offers the same thing, they leaped over and past Blackberry and offer solutions Blackberry does not. The CEO and his senior team at Blackberry can try; dictating, motivating, training, pontificating all they want, but the current market truth is their value proposition no longer connects with buyers today. “I hear some of you saying;” Oh well that I agree with for Blackberry, but that is not happening at my company”…are you sure?

So how about you and your salespeople…

Are you and your salespeople naked when they walk into a room?

Do you have a value proposition that resonates with your market and its buyers today?

Are you sending your sales team in wearing the robes you told them are amazing only to be seen as naked by your buyers?

Do you find the only way your salespeople win new business is price?

Have you lost one or more large accounts and were not given the opportunity to “sharpen your pencil”?

Have you been in a meeting with your senior management team and one of them makes a comment …” our buyers are just not smart enough to see…”

Has someone on your team justified losing a large account because they were a pain to deal with?

Have you seen your gross profit margin erode by more than 5% in the last 5 years?

Are your salespeople pitching Blackberry’s when your buyers need Apple I phone solutions?

If any of the above questions make you squirm a bit inside then you are sending your salespeople out naked. The good news is the first part of making any change is recognizing the need to change. I have helped many companies reconnect with the needs of their buyers today and quickly get them back onto the path of increasing sales and profits. You must do the “market work” and develop a value proposition for each market you serve that instantly connects with what your buyers are looking for today. Or you can keep telling your salespeople to drive profitable growth, sell on value not on price, and keep having those quarterly meetings with your board and owners you dread lately. How? How do you create value propositions that resonate with your buyers today? Well that’s my next post.