buying process | No Smoke and Mirrors

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

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

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

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

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

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

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

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

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

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

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

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

1. Say No

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

3. Specialize

4. Change the cost dialog

5. Accept risk

6. Stop selling ads as a solution to everything

7. Look for new revenue streams

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

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

“Our Competition Sucks Selling”, one of the signs of a Market Loser versus a Market Leader

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One of the things that used to drive me nuts as a VP of Sales and Marketing was if one of my regional managers or a independent representatives used “Why our competition sucks” selling. You know the guy, he talks about the competition more than his own product. He shares “horror stories he heard from other customers” about your competitoin that may or may not be true.

This out-dated style never impressed me, and today with a sales enablement 2.0 environment, it actually creates an interruption. Interruptions turn customers and possible customers into shoppers. The internet has given buyers the ability to see behind the black curtain of sales product information and they can conduct research without talking to a salesman. When your rep challenges a competitor, particularly when that competitor is a current vendor of that buyer, he is actually challenging the buyer. Do you want your sales rep saying “Hey, what are you an idiot or what for buying ______?” no, I didn’t think so.

The recently published Razor Fish report indicates what influences buyers; “Trust plays a key role in influencing a consumer’s interest in purchasing a product” Peer networks and influencers play a major role in the buying process today. So when your rep is selling against a particular vendor, he is not only challenging the buyer’s decision making, he is also “calling out” that buyer’s peer and influencer network who he went to before he made the purchase.

If you have rep(s) using the “why our competition sucks” method it must end. To turn these reps around use the following guidelines;

· Product knowledge– make sure your salesperson understands your product and more importantly the problems it solves for buyers as well as the process buyers use to buy your type of product

· Listening, as I wrote in warning….. Buyers share why they don’t buy, reps who do not listen was the #1 reason buyers do not buy, NOT PRICE

· Conversation distribution – they say there’s a reason the Lord gave us two ears and one mouth. If you are talking you are not listening. Monitor buyer meetings with particular focus on the amount of time your rep talks in relation to the buyer. A good rep will have no more than 30% of the conversation time

· Echo – when you learn customer pain, echo back what you heard. This does two things; first it tells the buyer you are not like the 90% of other reps calling on him as you are listening. Secondly, it will help clarify your understanding if the buyer corrects your echo of what you heard.

Besides, market leaders are focused on serving their market. They do not focus on what the competition is doing as much as solving customer problems. After all, if you focus on beating your competitor, you are limiting your success based on how good your competitor is. Companies who obsessively focus on competitors assume their competitors are smarter than they are. What if your competitor is also launching products that no one is buying? Following competitors often results in a “follow the leader death spiral” that becomes very difficult to pull out of.

Understand your buyers, their needs, and how they buy and you will quickly outpace your competition.

Let your competition spend time studying and criticizing you instead of listening to your buyers and understanding their needs.

Let your competitor salespeople keep using : “Our Competition Sucks Selling”, while your team listens and solves customer problems…..while breaking sales and profit records for your team.

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

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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 4^th 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?

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

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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.

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

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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?

Don’t let “FUD” cause you to “soft launch” your next product

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Over the years I have experienced two types of product launches; a “Hard Launch” and what some people have referred to as a “Soft Launch”.

Hard Launch

A hard launch is when you set a specific date based on your market opportunity window, the ability of your team, resources, and market conditions. In a hard launch you have done your homework, you have market based data, and you have beta tested your product or service and received qualitative and quantitative feedback from the market. In a hard launch you have cross functional groups within your organization aligned and communicating regularly. If something unplanned occurs your team learns about it within days and has time to adapt verse finding out hours before the targeted launch that it will be late.

I believe in hard launches for four main reasons;

1. Sales can pre-sell based on your known buyer process and cycle

2. Execution, when hard launch dates are made, and communicated to internal and external customers…teams deliver

3. Buyers like vendor partners who do what they say they will do

4. Team members who hard launch products believe in their solution

Back when I sold big box retailers like Wal-Mart and others, if we missed a launch date you would lose more than the revenue your product would have generated. To miss a key launch date violates your trust with that buyer and you had little if any likelihood of placing other new products in the future.

Hard launch dates create a “make it happen ” environment within high performance teams. In addition hard launch plans also quickly identify weaknesses holding teams back from becoming market leaders.

In most cases in my past I led sales and marketing teams and our goals were established based on a hard launch date. In the last 25 years I have never had my sales goals reduced because a product failed to launch on time. If your known buyer’s buying cycle is six months, you need to pre-sell to insure you meet the revenue projections that product management provided senior management to get funding for the product.

Soft Launch

If a member of one of my teams said we “need” to soft launch a product it would make my skin crawl. A soft launch means you did not thoroughly conduct market research, you are not sure you totally understand the problem you are solving and your solution may not completely solve the need. When someone says soft launch I hear them saying this product is an incremental improvement to a current solutions and is not a breakthrough product. I also hear them saying we will throw this product over the wall, into our market and see if it sticks.Team members describe a soft launch as if it were some safe and effective way to launch new products. Their approach is like someone wanting to join the polar bear club and just putting their big toe in the frozen lake to check it out, and saying; I will ease myself in. It simply does not work. I hear some discuss how a soft launch is more cost effective. Again, I have experienced the opposite in actual real as well as the opportunity costs.

So I asked some senior leaders recently why they would or would not use a soft launch and what I heard in summary in favor of a soft launch was “FUD”…

Fear

Uncertainty

Doubt

Fear

· Fear the market may not accept nor embrace your new product

· Fear if you did a hard launch and you announced a future date your competitor would beat your team to market with your idea

· Personal fear, if this draws a great deal of attention, and it does not work I may be out of a job ( particularly in these economic times)

Uncertainty

· Not sure if their solution completely solves the unresolved problem you discovered

· Uncertainty in your teams ability to execute

· Uncertainty to the validation of the market justification data and process used to justify the ROI

Doubt (the what if’s)

· What if raw material costs go up?

· What if the market projection numbers and how we assigned goals was wrong?

· What if this new product in some way caused a negative feeling in our buyers that hurts our base business?

· What if the product turns out to be an incremental improvement and not a breakthrough product?

· What if by the time we go to market we missed the window of opportunity?

Market leaders do not wait for the perfect conditions and they lack “FUD”. Market leading organizations spend considerably more time in upfront research, doing their research in their markets and clearly understanding the unresolved market problems. The crystal clarity they gain insures the requirements for the new product or service are thorough, complete, and nail it the first time. Market leading teams have a launch strategy and plan that includes multiple steps and representatives from other cross functional areas within the team.

The next time someone recommends a “soft launch” what I want you to hear is “FUD” .Before you or your team spend any more time or money on this project you must identify what did not occur that should have. I have lived through soft launches and they never achieve targeted goals and thus ROI’s are missed. Soft launches , that put your toe in the water not only create doubt within your sales team, but customers have a 6^th sense about products that are launched and just do not “feel right” so they wait. As buyers wait, your sales and marketing teams miss their key indicators and morale suffers. Soft launches are a sign you lack confidence in your product, product management, and marketing’s ability. With a soft launch sales does not pre-sell so even if your team totally nailed the solution, you now have the buying cycle before you generate the revenues and more importantly profits that meet ROI targets.

If you can’t have a hard launch plan, don’t launch it at all!

How about you, what experience have you had with “soft launches”?

How does your company launch products?

If you miss launch dates do you reduce the sales and profit key indicators?

Have you ever soft launched a product and exceeded your ROI targets? If so tell me about it.

Is there a case in which a soft launch is the best way to launch a new product or solution?

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

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

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

Take this quick quiz…

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

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

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

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

5. Do you know your sales process?

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

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

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

How do you define “marketing”?

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

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

Should you hire an Independent Sales Representative?…the right firm is a key partner, not a necessary evil

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I recently answered a question on linked in with regards to working with independent sales representative firms (ISR) that is all too common. The Vice President who posted the question mentioned his frustration with independent sales representative firms. He went on to say “how do you hire good representatives as he has to change representatives often, and none seem to be opening new accounts and growing our companies’ market share?” I really do not have enough information at this point to answer his question.

I have hired independent representatives for over 15 years of my career. Good independent representatives are worth their weight in gold. The company that chooses to hire an independent sales force needs to understand the role of these professionals. The main role of independent reps is to use their current relationships, established through supplying complimentary product lines they represent, to get your product placed. They have built trust with buyers in their market, and their relationships with their accounts will ALWAYS be more important than your rep contract…and their relationship with you. Factories come and go, but the accounts in their market limited. Just as you may feel risk when you hire an independent representative firm, the firm actually has a greater risk. Each product line they represent is both an opportunity to become more important to their buyers and increase their income, as well as a risk. Should they agree to represent your products and your company fails to do what they say they would do, and or your product fails to meet your brand promise, the local sales representative not only loses potential commissions, but they run the risk of a break in trust. (Their most important asset they have with buyers)

If you are thinking of hiring independent sales representatives, I would ask you to answer the following questions…

So tell me…

· What market are you in?

· What problem does your product solve for that market?

· The representatives you choose, how did you choose them?

· Did you profile complimentary products that touched the same buyers, and then hired those representatives that had those lines?

· What is your commission structure in relation to the industry, other lines the representative carries?

· When you hired the independent representatives, where did you get their names?

· What % of the independent firms overall income do you represent in relation to the time required to sell your product?

· How well do you know the buying process for your products?

· Do you have sales tools you have developed to help the sales process match the stages of the buying process?

· Do you have written buyer personas?

· How does your competitor(s) sell? Direct, or with independent representatives?

· Did you hire them with base revenue in each market, or will they only “eat what they kill”?

· Do you have any “house” accounts in their market?… you know, the big guys you don’t pay independent representatives commissions for?

If independent sales representatives wanted to be “managed” they wouldn’t be “independent.” As a manufacturer, a “factory” your role is to provide products that solve unresolved market problems. Your job is to understand the market potential for your product and build obtainable goals from the market up. Unfortunately the majority of factories establish goals by extrapolation. (In other markets we have sold z units, and you have y number of those accounts, so your goal should be z times y…right? Wrong!

I am looking forward to hearing from those companies contemplating the hiring of independent sales representatives.

Please answer a few questions for me;

How did you establish the goals for their territory? Was the independent firm involved in the building of the territory goals?

Do you have written buyer personas?

Have you mapped the buying process?

Do you know the sales process for selling your products?

Have you identified sales tools for the steps each persona takes in the buying process?

If you answered “no” to any (all) of the above then your problem is not finding the right independent sales firm, it is what you lack, and it is how you have set your sales representatives up to fail. Independent sales representative have instant access to goal achieving accounts if equipped and set up to win. What independent sales representative are not…they are not magicians, nor are they your product management, development or marketing.

In my next post I will share how to find and hire independent representatives that add tremendous value quickly. I will discuss how hiring the right independent firm is the most cost effective investment you will make. I will discuss how even the biggest bean counting CFO will be thrilled with the ROI produced by independent sales representative firms.

WARNING: Buyer’s say what salespeople do wrong?..PRICE is not on the list!

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Business development has been hard enough over the years. Salespeople work hard to grow their existing business while opening new business. When we look at strategies for growing a business we have a number of options;

· Sell more of what you have to your current accounts

· Sell your current accounts new products

· Sell your current products to new accounts

· Sell your current products to new accounts in new markets

· Sell new products in new markets

· Acquire another business, sell their products to your accounts and sell your products to their accounts

I am sure there are more, but above are some that I have used, and I understand the difficulty and costs associated with each. The best way to accomplish any of the above strategies, (and I recommend you only pick 3) is to know your buyers buying process and match your sales process to that buying process. Not many organizations accomplish this, but if you do, you will create tools for each stage of the buying process to help the conversation continue. If you study buyers, what would you say are “the top 5 Sins of salespeople?” As a reminder, the word “sin” means to “miss a mark, or target, goal”. So where are most salespeople missing the mark?

#1 not listening

#2 does not follow up timely

#3 does not understand the problem I am trying to solve

#4 they talk too much

#5 never built a foundation in trust

If you study your market, and conduct win-loss analysis you will find as I have that in most cases 50% of lost sales are neither about the product nor price. 50% of lost sales are due to the process the salesperson is taking to close the sale. Maybe they are doing the all too frequent; “ring the bell selling?” You know what this is…the salesman starts rattling off all the features and benefits he learned in the 15 power point slides of sales training he had and he waits for you, the buyer to ring the bell when one connects. Other words we waits for one of the things he said to hopefully connect to a problem you have, and hopefully you have been able to translate that particular feature into how it will solve your problem.

Based on the above “top 5 sins”, how can salespeople close more sales and drive explosive growth in the markets they serve?

#1. Listen and observe

#2. Ask open ended questions, seek first to understand

#3. After you understand the buyer’s problems, explain how what you are selling solves those problems (since your sales tools probably don’t)

#4. Story-Speak, don’t speak in features and benefits (ringing your bell) but instead share stories of how what you are proposing as a solution to the buyers problem solved it for others who had similar problems

#5. “Serve” your customers, don’t “sell” them

I have personally taught this system to sales teams in various industries and it drives explosive growth in sales and profits. Profits? Yes! When you sell by ringing your bell of features until one connects, (and you may or may not know why) you quickly jump to the negotiation of price. You have not built trust. Sales people who know the buyers problem, understand their pain intimately focus on solving that problem. A buyer who has a salesperson who is speaking to their problems becomes so focused on solving their problem they connect to the solution more than price.

So how is your sales team performing today?

When was the last time you observed your sales people in the targeted group you are trying to grow?

How are you trying to grow your business?

In your target group(s) what are their top problems?