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

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How Albertson’s Cut my Trust with a Loyalty Program

I have a bit of a dilemma in my home; my young daughter works at Safeway ( her first job) but Albertson’s is more convenient a turn on my way home. I appreciate Safeway employing my young daughter and I am impressed with how they treat young people. My daughter is learning valuable life skills. So I try to split my grocery shopping between Safeway and Albertsons.

In May Albertson’s started a loyalty rewards program. (Makes sense as the Safeway is across the street) They launched a program that rewards your loyalty for shopping at Albertsons with stickers that can be traded for a Knife set. I do not need a Knife set, but my son is moving into his first apartment at the U of A so I thought …why not? Since May I have been only shopping at Albertsons exclusively and I have been accumulating my little stickers to achieve my loyalty reward; a set of Thomas knives. I did an internet search and it turns out this set of Knives has a retail value of $899…wow, Albertsons must really value me!

I have collected the stickers (through the teasing of my family members) and I filled the entire card and I am on my way to filling another. So I went to Albertsons to claim my prize and be able to proudly present this to my son. I was not sure how the redemption worked so I asked one of their workers at the front of the store and the first shoe dropped; “Sir, you do not get the “entire” set, you get one of the offers. If you read the fine print here, you get to pick from one of three offering..a butcher knife, this set, or this set, and if you claim this set it is only 40 stickers so we will give you 10 back” Ok, I should have known better I guess. I wondered how they could offer an $899 set of knives if I purchased $500 worth of Groceries. However I did noodle it a bit, rationalize it….retail of $899 probably means a cost of $399, If I would ask Nick who has sourced products for me from China over the years to source these knives I could probably get them landed in the US for $199…so this loyalty program makes sense. Besides it is not the entire set for $899, but just some of the set.

I went to the display to choose my prize and felt my son did not need a butcher knife, so I chose an offering of 3 knives he and his roommates could use. (Not happy, but rolling with it) I proudly presented my three knives to the cashier, and she asked “what are you trying to do?” I explained I want this offering here in the middle of your brochure. She explained “ you need to read the fine print, you only get one of the knives in that group of three for 40 stickers, which one would you like?” Now I’m getting pissed…so I picked a knife and mentally prepared for the ridicule I would receive when I went home. She could tell I was troubled so she said “Don’t feel bad honey, almost everyone does the same thing. When people started trying to redeem their knives like you, they too did not understand the programs. We told the bosses but they don’t listen to us, we are just cashiers.”

Now I’m really pissed! So other customers also were unhappy and Albertsons did nothing to help clarify the programs? If they did explain how it worked, and how you would need to spend $3600 for the complete knife set would it work? Doubtful!

I am a big fan of loyalty programs and I feel there are very smart particularly in this economy. If done correctly they can build new customer trials and deepen the trust with your existing customers. If executed poorly, or worse requiring fine print, can cut your trust with your loyal customers.

 

If you chose to have a loyalty program please keep in mind;

 

· The prize must be of value to your customer

· The prize should have relevance to your buyer

· Ideally the prize should help your customers solve a problem, an unmet need

· Communicate the program clearly

· Your customers should not learn about the “fine print” at the time of redemption

· The prize should be obtainable for your average customer

· The redemption process should be clearly stated

 

Here I come Safeway! I hate that you make me carry a little card to get the best price, or shout my home telephone number, but hey, you are treating my daughter well.

(and for the other husbands like me, I did get that “ you are so dumb” look when I got home)

Do you need a “Plan B”? Or are you betting the Farm on a Stretch Goal?

I have to love whoever drives this scooter parked outside of McDonalds Sunday morning. I had a cup of coffee and as I walked to my car, I see this scooter.

Here’s a person who drives a vehicle that what, gets 500 miles to the galloon and they still have a “plan B”? As I walked by I noticed the 2 1/2 gallon gas can strapped to the back.

As I drove away I thought how in these uncertain economic times it is prudent for leaders to have a plan B in case their business runs out of gas. Nothing sucks the energy out of a team like fear. I find when I am fearful I am not creative and I am in a defensive mode and no longer leading. When I wrote Is your leadership in a holding pattern while your team runs out of gas? I discussed how our teams are more fearful than ever before. The Bible is also very clear about fear. Throughout the Bible we are instructed to “fear not”. As a matter of fact the only thing the Bible talks about more than fear is “money”.

Market leaders develop goals that do not require “all the stars to be in alignment” to achieve them. Market leaders have plan B’s in the event the environment changes to insure they achieve their objectives. You can establish stretch goals, and that is healthy for your business and your team members. When we are forced to stretch we grow. Where market losers blow it is when they “bet the farm” on a stretch goal.

How about your business…

Are you asking your team to strive for a stretch goal that requires all the stars to be in alignment (when chances are your own sales and marketing are not on the same page)?

Do you have a Plan B?

Have you shared your Plan B?

What is your team’s greatest fear? And how do you plan to lead them through it?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

How about your company…

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

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

Do you know how your buyers buy?

Gym Socks and the importance of listening to customer concerns

 

My wife and I went for a walk the other evening after work. Although the sun was setting here in Arizona the temperature was still just over 100 degrees. When you walk in the dessert the heat radiates up from the ground. By the time our walk was over I could not wait to get my tennis shoes off. I took off my shoes and then my socks and my wife said “why do you do that?” Not to be too insensitive a husband my response was “do what?” She said that as someone who does the laundry it really irritates her when socks are turned inside out. She explained (as she has done before) how as a child her grandmother would not wash socks turned inside out. I quickly moved into my “overcome objections mode”; I do not care if my socks are washed inside out… they will still get clean…I do not care what I look like at the gym so I will probably wear them inside out…this is not a big deal… However this was not listening nor taking my wife’s feedback seriously.

This discussion reminded me how customers often share little things that annoy them and we quickly move to justifying what we do, or “defending the fortress “instead of listening and making necessary changes. It is my desire to serve my family.to listen to their needs. So although my wife has mentioned her concerns a number of times over the past 24 years, I quickly mentally rationalized the feedback and did not listen and I did not change my behavior. I failed to be intentional about something that obviously concerned someone I cared about. It would take little effort to accommodate her requested change in my behavior. However it would require a change of habit.

Businesses must also be constantly sensing, listening, and observing the needs of the customers you serve. Listening to customer feedback and responding to their needs solidifies your relationship. Your competitors will keep selling. They will keep rationalizing customer concerns and not make changes. Why not be the partner that listens and makes the necessary changes to eliminate frustrations in dealing with you?

 

How about you, what small complaints have your client partners expressed?

 

Is your first reaction to listen or dismiss?

 

Are you turning any customer gym socks inside out?

 

(I need to turn the sock on the left right side out before I put it in the close hamper!)

What if you could have a daily tracking poll for your customer satisfaction like the Rasmussen Presidential Approval Index?…You Can!

So the Rasmussen Presidential Approval Index came out today showing only 30% of the nation’s voters strongly approve of the way that President Obama is performing in his role. 38% said they strongly disagree providing a net index rating of -8. 43% say he is doing a poor job. It turns out men more strongly disapprove than women. You can read the full report here at the Daily Presidential Tracking Poll.

The purpose of this post is not to bash our President. As a Christian businessman I pray for him as we are instructed to do in the Bible. I pray the Lord gives him wisdom and discernment. The reason I wanted to discuss this report is a “what if”.

What if, as the leader in your business, you too could have a report that frequently showed your “voters” (customers who vote every time they buy from you or your competitors) approval rating? How valuable would that be, particularly in this economy?

The good news is you can…it is called Win/Loss analysis and if your team is not doing it now, get started! In Win /Loss analysis you contact customers you win and ask why they bought, how they came to buy and so on. You also call those accounts you lost. You know, the ones your sales team said you lost “because your price was too high”? Well as I shared in my post WARNING: Buyer’s say what salespeople do wrong? PRICE is not on the list! The top reason buyers do not buy is your salespeople are not listening to their needs; they don’t follow up timely and as a result do not understand the problem the buyer is trying to solve.

Aside from having personally done win/loss over tie years and realized the benefits, it is also a Biblical principle.

In Proverbs we learn ” the tongue of the wise uses knowledge rightly, but the mouth of fools pour forth foolishness” So there you go, will so start win/loss today and be “wise” or will you keep making strategic decisionsthat add no value ( and may hurt your business) and be a ….( I don’t need to remind you, you just read the passage)

Once you start conducting win /loss you will have a wealth of information to keep your voter approval ratings high among your internal and external customers.

Are “No-See-um’s” costing you revenue?

One of our favorite family vacations is to go to Hilton Head Island and stay in Sea Pines. My family and I rent bicycles and we go to the beach every day. My routine includes waking up at sunrise and fishing in the surf each morning before my family is awake. Our first year at the beach left me with welts that looked like mosquito bites but I did not remember seeking any mosquitoes on the beach. I thought that perhaps I received jelly fish stings, or I was having an allergic reaction to the suntan lotion.

I went to the gift shop looking for some calamine lotion and the clerk said “I see you found our “no-see-ums.”I found what? She said “no-see-ums” (like it was some biological term) and she went on to describe small sand fleas that are so small that you often do not see them however their bite later becomes an irritation. If left untreated these bites can become infected and some people have allergic reactions to the bite.

Does your business have any “no-see-ums” that bite your customers? It can be things you feel are little like not accepting American Express credit cards because their fees are higher than Discover card. It could be little irritants like not being able to make a reservation online or packaging that requires your customers to repackage your product before distribution. It could be requiring customers to complete incoming inspection of quality or you will not honor returns as they may have been freight damaged. It could be a number of small quality problems and your technical service line is always busy because you have not staffed it properly. “No-see-ums” are inside out processes that only serve you and actually cause your clients pain.

In one of the companies I served we supplied plastic video cassette packaging for video rental stores. We sold our products through a network of video distributors. To help make our product price competitive we offered free freight for orders of $2500 or more. We analyzed our costs to process and stage orders of $500, $1000, $2000, and over $2500.At one point we decided to gain a larger percentage of our distributor’s business we would increase our free freight requirement to $5000. (That way our clients would buy more from us to get free freight)One of our first distributors was a company called Island Electronics on Long Island in New York. After increasing our minimum freight I noticed their sales had decreased substantially so I booked a flight to determine why sales had dropped so quickly. When we arrived we noticed a warehouse bursting at the seams with products. Since my last visit, Island Electronics had picked up a number of new lines all competing for the already limited space in their warehouse. As I walked past my competitors master cartons as we walked to the owners office it hit me…raising our minimum freight requirement was an inside out strategy that did not meet the need of my buyer. My competitor who produced product in Edison New Jersey visited this account every other week and offered free freight on orders of $1000. My competitor understood the bigger challenges Island Electronics faced (SPACE). Our new freight program was a “no-see-um” and it also bit us. No-see-ums always bite more than once. First they bite your customer. If your buyer’s irritation becomes painful enough, the bite will negatively affect your revenues.

 

Market leaders are constantly in their markets observing, listening and sensing their buyers’ needs. They identify each “no-see-um” and create processes and procedures to prevent future negative experiences.

 

Market losers are focused on their internal needs with little regard for customer challenges and limitations.

 

Do you have any “no-see-ums” when clients deal with you?

 

How often do you visit your buyers? Your users, and observe their use of your product?

 

Have your salespeople identified “no-see-ums” only to be quickly dismissed?

Is your leadership in a holding pattern while your team runs out of gas?

At one point in my career I traveled a great deal spending four nights per week away from home. I lived in North Canton, Ohio so a number of my flights were small commuter airplanes to major hub cities. You learn to accept the slow baggage claim, fueling delays, and needing to run through the hub airport to make your connection. However one aggravation I never seemed to get used to was the plane going into a holding pattern as we approached the Akron Canton airport. If you fly a great deal as I did you know how long it should take to fly from Cincinnati or Charlotte, it was predictable. You know that a flight from Cincinnati should take just under an hour and when you notice you have been in the air for 80 minutes you become anxious. You look out the window and you can often see the runway lights, and then the moon, and the moon again, and again. Why? When will we land? I have flown this flight plan for years and now I do not know what to expect and I am getting frustrated. Eventually the pilot announces “we are cleared for landing, please put your tray tables up and your seats in an upright position…” and we land.

I had a phone conversation with a midlevel executive this week who was very frustrated and his emotion reminded me of the feelings I experienced when planes I was on went into holding patterns. He said that deals that the executives have historically signed are no longer being signed. His competitors are making a run at his key accounts, and management seems to be in a “holding pattern” not knowing what to do, so we are doing nothing.

When I wrote Attention leaders: Don’t look now but your lack of market knowledge is showing… I discussed how employees are more fearful now than ever before. They want to follow leaders they believe will lead their team out of this current situation and come out on the other side positioned to be a market leader. However I am hearing executive doubt in their leadership teams who have their business in a holding pattern. Employees, like me on my flight into the Akron airport are frustrated. They want to make decisions that add value however their leadership teams are stuck in a state of indecision. These mid level leaders just want to know the plan. (Or that there is a plan)

The Strategic Sourceror blog they discuss: Indecision is not an acceptable decision. The author points out “In every business decision situation, whether organizational, tactical, or strategic, there are two acceptable answers; Yes and No. Indecision is the cornerstone of faulty, short-sighted, C.Y.A. management philosophy. It’s the prized virtue of the mediocre and a tattered safety blanket for the incompetent.” Yet some large and small businesses are choosing to be in holding patterns today and their teams are growing more frustrated each day.

Why do you find leaders chose to be in a holding pattern? The above blog sites two main reasons;

 

There’s Not Enough Information

 

Happy Enough with the Status Quo

 

Next I went to the Bible, I was curious what advice it had regarding a lack of leadership and what could occur if a holding pattern lasts for too long…

“In the days with no King of Israel; everyone did what was right in their own eyes”

Judges 17:6

“When everyone does what is right in his own eyes, before long moral conditions sink”

Judges 19:25

If leaders choose not to lead, their teams will do what they feel is right. If left unchecked, employees doing what they feel is right will erode the core values of what’s left of your culture.

 

Indecision is a tool of the incompetent leader. Determine what you know. Do you know what you don’t know? Admit what you don’t know and put a plan in place to gain the knowledge you require. Your team is counting on you to take them out of this holding pattern and have a flight plan that leads to a future landing as a market leader.

Does your senior leadership team have your team in a holding pattern, a let’s wait and see, plan?

 

Have you experienced your company’s indecision hurting your relationship with loyal customers?

 

Do you find senior leaders or mid level managers with more indecision today? Why?

 

Is a holding pattern ever a safe strategy?

Is a bad decision worst than indecision?

The leadership “Quiver” for driving change

The days of “one size fits all leadership” are over. Leaders today must understand their team dynamics as well as the specific personality traits, values, and attitudes of their team members. Today’s leaders must also know themselves, their style, strengths as well as weaknesses. (For example I need to work on patience) Each team member has their unique gifts, as well as their way of processing change. Leadership today requires skill to drive lasting change that adds the most value. If you have not had a DISC profile completed for yourself I highly recommend you invest in this inexpensive tool. I like to plot my profile with all team members to help me understand our common or contrary traits. You can read examples of assessments I took years ago, here.

In today’s economic climate leaders are identifying roadblocks to serving customers and driving change. Some of your team will loyally follow your direction, some will be slow to adopt changes, and some will fight change. Leaders often misinterpreted these individuals as not following “the leader” when in reality they are not executing “leadership directives”. (There is a big difference)

So what are we to do when a member fails to execute strategic and tactical changes we have asked them to make? The first place I turn is the Bible. In Psalms 51:1-6 David models how we are to deal with sin; “if we deal with sin (missing the mark) genuinely, openly and immediately God will lessen the severity of discipline Discipline is designed to drive change, to help us obey. If God sees we genuinely want to change, obey, the need for stern discipline is not required. We should model the same with our team members.

We all have a number of correction arrows in our leadership quiver;

1. Seek first to understand, seek the true why the team member failed to implement the change

2. Share why you changed direction, give them the time to digest what you have probably had weeks to digest: change management is a process

3. Make them a part of the change, ask for their input

4. Share the value these change initiatives have made for other team members

5. Have a performance improvement discussion (a Discipline discussion)

The trouble I see is leaders (new leaders in particular) use the fifth arrow first when they should save discipline as the last arrow released. When you use the discipline arrow it takes the least amount of skill. This is the only arrow that also pains me upon release as it means I failed to find the “why” behind someone is not getting on board with changes. In addition, this arrow is often dipped in the poison of threat: “if you do not change your behavior, future disciplinary action up to and including termination may occur”. This arrow always finds its mark. The trouble is once landed the poison of the threat invades the body of your team member and permanently taints the relationship.

Market leading organizations build a foundation of trust not threats.

When dealing with employees that fail to follow your direction, remember you have a number of arrows to try before you use correction through discipline.

What are your thoughts?

Is there a time to fire the 5th arrow first?

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

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

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

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

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

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

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

WE HAVE ALREADY LOST THEM!

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

· Share what market problem the new product solves

· Explain how big is this problem

· Share market data

· Explain what buying criteria buyers use when making buying decisions

· Share the process buyers go through when purchasing

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

· Provide the sales team the buyer persona(s)

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

 

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

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

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

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

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

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

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

Market leaders understand the importance of listening to objections.

Stop sales training and start sales enablement today.

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

Tell me about your organization.

How does your organization conduct sales training?

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

Is teaching salespeople how to overcome objectives smart?

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

Attention leaders: Don’t look now but your lack of market knowledge is showing…

 

 

I had coffee with the president of a local business this week. A friend from church recommended he buy me a cup of coffee and chat. I seem to be meeting with a number of business leaders and owners these days that are struggling. Their businesses are in different industries yet they have common problems;

“My business is down, struggling, this economy is killing us. I have our team doing what we did in 93’, but this time it just isn’t working…”

As a leader in your business your entire team is watching you,looking to your leadership.What is new today is your team’s level of fear. Their 401k’s are down. They have many friends and others in their network now unemployed. Your team deals directly with your customers, and they hear their concerns about the economy. They feel the decrease in activity staging orders on the shipping dock. They prepare the financial statements for your leadership team meetings. They are trying to get extended terms from vendors. They are receiving the calls from vendors with past due balances. They are tracking your team’s key indicators more closely than ever before and they are wondering…

 

Will I lose my job?

Should I wait for the shoe to drop, or should I find something else? Should I work on my “plan B”? “Plan C”?

Do our leaders know what they are doing? Will their leadership take us out of this storm?

 

The good news is your team desperately wants to be led. They want to follow a leader who will quiet those inner fears. They want and need a leader to step up and set a course that pulls the company and them out of the current poor performance.

The common problem, regardless of industry that I hear is a lack of current market information to make good decisions. Media Post just released an article by David Koretz titled Cheating Your Way To The Bottom and he discussed how leaders must use facts to make good decisions .Leaders describe how they used to lead sales “back when they ran the North West region…” I am sure the strategies and supporting tactics they described worked back then,….but here’s the common problem:

The market and your buyers have changed. They have changed how they buy and how they shop for solutions to their problems. Yet the plan you are managing with corresponding activities is based on the buyer needs of the past.

Below is a summary of my recent meeting over coffee. By no means am I poking fun at  this struggling leader nor minimizing the troubles he and his company are having. When I decided to start blogging as I stated in my about page it is my desire to discuss real issues.

So I started our meeting by asking;

“When you ran the North West region and realized so much growth, how did you come up with such good ideas?”

“Well I just knew what to do…it was easy, my customers told me what we needed to do and I went back to corporate and fought for them.”

And now you are corporate?

Yes,… I guess I am, hadn’t thought of it that way

Is anyone fighting for their customers right now and you are shutting them down?

Well yah…

What are they asking for?

You know sales guys…our prices are too high, our quality sucks, and if we would only change the product by adding one more feature….

When was the last time you were in the market, “belly to belly” so to speak with a customer? A user of what you sell?

It’s been a while, but I get weekly reports, and I talk to my sales guys, I feel I am up to date with what’s going on.

Really? What are they telling you about your customers and the problems they are experiencing?

The usual; business is down, no money to invest in their business, just trying to keep their heads above water…you know

Anything new they are struggling with they did not struggle with last year?

Not really, just that business is bad, and they want a lower price and extended terms, I think we have a pretty good handle on what’s going on

When you ran the North West, did you think your boss knew the market and your customers as you?

Well…no (he became noticeably uncomfortable)

I asked a more questions and we agreed he did not have current nor first hand data to answer my questions. Given the importance of turning this business around, we agreed we needed market data.

These conversations seem to have the same next steps…”get out from behind your desk and get into your market and understand it today. After two weeks of meeting with customers and users you will know what to do in today’s environment. You will have first hand, timely market data, and you will be able to make strategic, market driven decisions and provide the leadership your team desires.”

We agreed to meet again when he returns.

What happened next I did not expect, he smiled and said; “you know this would be fun, I have not been having much fun lately.”

How about you?

Are you leading a team?

When was the last time you were “belly to belly “with a customer? A user?

You have the ability to lead your team out of this current economic condition and emerge as a market leader once you have good market data.

(Have you ordered you plane tickets yet?)

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