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How Understanding Your A B C’s is the first Step To Driving sales growth …

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How Understanding Your A B C’s is the first Step To Driving sales growth …

As leaders of sales teams what do we all have in common? We all want to have our team hit their sales numbers and we want to insure our teams are working the sales process to insure they are creating sales velocity. However when we travel with sales people making sales calls it often becomes apparent they need help prioritizing their time to insure the sales plan is met and or exceeded. One of the best ways to increase sales today while filling the sales pipeline is helping your salespeople understand their A B C’s.

I remember working with a salesperson and we were out making four legged sales calls. My goal was to mirror this guys for a few days to determine how he spends his time, what he feels his job is and how that compares to the companies expectation and overall assess why we can’t seem to open net new customers in his region. Here is what I observed;

we called on accounts who were already customers and they were all very happy
the accounts we visited with included one large customer and a number of small customers
we did not call on any new accounts ( although we drove by a number of them as we worked his bread route)
the salesman was excellent in what I refer to as the “no smoke and mirrors approach”
I asked how many accounts he had in his area of responsibility and at first he was not sure , but later said “ I think I have around 1500 customers”

On the one hand, if our time together was any indication of how all his customers feel, he probably has a number of very happy customers who value his approach and experience. I asked him how he can serve so many accounts. And he quickly replied “it’s really hard but they love me because I treat everyone the same…big or small I give them all the same amount of attention and I think that’s why they are loyal to me.” However it quickly became apparent why this region was basically flat in sales and not opening net new customers: this rep did not know his A B C’s.

Let’s take a little deeper dive into this situation.

In reality he had 986 customers, and was not touching all of them every year

Average number of work days in a year: 251

Holidays, vacation days, sick days: Approximately 30

So this salesman has approximately 221 days to see 986 customers

To just see his current customers once per year he would need to see 4-5 per day, every day without any extracurricular activities (ECA’s) getting in the way (and that’s a whole other blog post waiting to happen)

In addition part of his responsibility is to reach out to 2-3 net new customers per week, but we discovered that was just not happening.

My next step was to work with the VP of sales and shared my findings and wanted his feedback. He said he never looked at his sales regions like this before and wanted to know what I would do. Very quickly I said we will establish A B C’s for this region.

A Account

This is a list of top producing revenue accounts you currently have in a region who you suspect will be buying more products and services from you. Most people sort it by sales history descending, and often add accounts that you are currently selling, but could be buying quite a bit more with some attention. I always add new target accounts in the market you are not selling but have similar characteristics to accounts you serve today and probably have similar problems like those you solve for your current accounts every day.

B Accounts

These accounts are in the middle of the road, revenue wise, accounts that you have sold, continue to sell, but you do not see a huge sales growth potential in. You obviously value their business and you want to insure they are happy and continue to be loyal to your company. If one of these accounts grows and they often do, you want to be there when they become an A account. If this list is not too large I may add other new account targets, often based on proximity to current customers, but would not be considered to be one of your core markets.

C Accounts

These are the smaller accounts revenue wise but often take the greatest amount of your salespeople’s time. When something goes wrong with this customer type all hell brakes lose and they expect your salesperson to drop everything and help them. They may have once been large accounts who now only buy small amounts due to downsizing or some other shift in their business. These may be small mom and pop customers who again you want to serve and make happy fans, but their overall future sales opportunity is limited.

I usually have everyone agreeing to this point and then everyone’s mood changes with the next question….

What is the best way, from the customer’s needs perspective, to serve them?

This is where the sales guys immediately get nervous and argumentative. In reality they are not arguing with what I am about to say, but more with what they perceive the personal impact will be in their compensation. Sometimes I have sales VP agree up to this point but fail to execute any changes because it feels like a lot of work sorting through accounts. If you have been in your market for more than 10 years it could be a large undertaking. So I share a quick way I have used that is not too scientific but results in the desired new customers and sales growth we are looking for.

A B C Account segmentation according to Mark:

Print the salesperson’s account list , sorted by customer in sales descending
Draw a line about 1/3 of the way down through the list of accounts
Everyone below the line is now a C account
In the 1/3 of accounts above the line, draw a line ½ way through this number of accounts
everyone above this new line is now an A account and everyone below the new line, but above the 1/3 line is a B account
Gut check step – sales VP and salesperson review B and C accounts and make sure none should be A’s based on opportunity, if so add them to A list

Let’s get back to the salesperson I was working with…so out of 986 customers (who he really was only touching about 400 per year anyway) now 740 are considered C accounts and 123 are now A accounts and 123 are B accounts.

How do we work our A B C’s?

A Accounts

These accounts will be seen frequently to add the most value without being counterproductive to the sales process. In this market we identified over 60 new target accounts in this companies’ market, sweet spot that are like those they sell, but do not sell today. So on our example this rep now has 193 key accounts that can drive his sales objectives.

B Accounts

We will establish a call pattern that best serves this customer base and it is often 1-2 face to face meetings per year and quarterly calls and monthly emails. This rep has 123 B accounts.

C Accounts

All C accounts will be served by inside sales customer service and not field sales. They will use email, phone calls and direct mail to keep in touch with these smaller accounts and actually provide a better overall buying experience than what they were receiving.

When I applied this model to one of my sales teams that was struggling with net new customers and selling new products at current customers we realized the following;

we achieved new product sales objectives
exceeded our sales plan numbers
We achieved new customer acquisition targets
Our C accounts grew, 115% to prior sales within 90 days of implementation and in the following year grew over 146%
My field sales people made more commissions and were less stressed
Billing errors decreased
Overall customer satisfaction in all categories increased
Our account attrition decreased

Helping your sales team understand their markets A B C’s is one of the quickest ways to insure your sales plan is met and exceeded.

How do you segment and align your accounts for your sales people?

How do you transition accounts from inside sales to field sales?

How often do you transition accounts from B to C status?

Have you segmented your sales rep’s market and if so what results did you realize?

Helping your reps understand their A B C’s improves focus. This also will provide the time and incentive to pursue those accounts your owner always seems to drive by and then you get an email or phone call; “Why aren’t we selling these guys?”

Does Your Sales Compensation Plan Create “ Commission Junkies”?

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by Mark Allen Roberts

For as long as I have been in sales and sales leadership I have heard true sales velocity is about carefully balancing the carrot and the stick to manage your salespeople. If your sales compensation program relies on unrealistic goals and heavily weighted sales compensation plan based on a carrot too far away or too big…you are creating “Commission Junkies”.

Commission Junkies are slapping their cell phones and typing follow up “where’s my order” emails as fast as their fingers can move hoping to find their next fix.

Let me ask you….Who would you prefer to help you buy something? Would you prefer someone who takes the time to truly understand your problem to be solved and understands the costs associated with that problem? Or someone who is obviously all about “making his sales number” and “making his commission”? Do you want a professional sales person asking questions to understand your needs, or someone so focused on closing the sale they seem desperate? You might say;

“Mark that’s a dumb question…I want a sales consultant who helps me solve my problem, who understands my problem to be solved as if it were their own”.

(Quick look at your sales compensation program, and ask is that what you are rewarding?) …Really?

There is an old Native American saying: “the wolf we feed is the one that grows.”

What behaviors does your current sales compensation program feed?

OK….then why do so many sales compensation programs create what I call “Commission Junkies” who are desperately chasing that next fix of commission because their total compensation is heavily weighted on objectives that do not match your (published) culture?

Poor sales compensation models create bad behaviors in the field that can result in Brand Damage for your overall product offering.

So how do you know if your sales plan is poorly designed?

sales rep goals do not align with corporate overall strategy
your reps feel the goals are unobtainable
your reps feel the activities to hit their goals are out of their control
too many goals
a commission plan that requires a CPA to understand it
“commission claw backs”
commissions are not weighted based on corporate objectives
sales goals built from the board room and sent down to sales team to “make it happen”
it is the same plan you have used for the past 2 years
the variable portion of total sales compensation is weighted too high
goals that change frequently
you have a targeted compensation plan with a commission cap

As I shared in my last post, leading salespeople is not as complicated as we often make it. The very essence of most salespeople is to take the path of least resistance that drives their desired income. Put another way, we have a high Utilitarian characteristic that makes us wired to want the maximum return on our efforts in the shortest amount of time. .Salespeople are competitive and welcome stretch goals that are obtainable.

Sales Goals created with Market Opportunity Profiles drive results and the sales behaviors you want in your market.

The wrong sales compensation plan creates “Commission Junkies” only out to make their next fix… their next commission. They become so about the next commission and who can create the next order the fastest they often fail to execute the sales plan. As I shared in a previous post, nothing drives CEO’s more nuts than finding out the sales plan is not being executed six months into the year.

A few questions for you….

How are your sales to plan Year to date?

Are you at your targeted sales and profit goals?

Is your sales team meeting and achieving their new product sales?

Are you opening the targeted new accounts you forecasted (needed to) open this year?

With has high as 50%- 70% of sales people not meeting plan this year, if you answered “no” to any of the above you are not alone. Last year alone the average sales team had 50-60% of salespeople not meeting plan and their goals this year went up on average 33%. Knowing you are not alone does not solve the problem or make you, your boss, owner, and or investors happy. Far too often a leading reason sale execution fails is due to your sales compensation program creating commission junkies and not consultative sales partners.

Do you want to quickly assess if you have sales consultants creating great experiences with your brand or Commission Junkies causing Brand Damage?

Ask your buyers if they believe your salesperson understands the problem to be solved and is in the process of presenting a total solution.

If you find some of your team are Commission Junkies there is still time to rehabilitate them by creating Market Opportunity Profiles. You can find a good article about creating sales compensation plans here if this is an area you plan to work on.

The Toughest Sale an Entrepreneur Can Make….Investment Capital to Grow

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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!

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

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

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

Know what you really want

Know your motivation

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

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

Involve those around you

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

Taking longer to make buying decisions

Involving more people in the buying decision

Buying Needs not Wants

Stronger focus on ROI

The Role the internet is playing in the information gathering

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

When is the last time you changed your sales process?

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

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

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

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

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

"Leader, You Don’t Have to Go It Alone!"

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When I asked CEO’s and business leaders where they turn when they face a problem in their business I heard two common answers and one that disturbed me. The common answers were;

I call someone in my network

I talk to my spouse

However the answer that also bubbled to the top frequently was;

“nowhere,… that is what I am paid to do, solve problems so I figure it out”

The third response disturbed me… when did business leaders decide they need to go it alone? When was it decided we need to have all the answers? I tell my clients in fact I do not have all the answers,… but I do , based on my experience know what questions to ask.

So let me get this straight….

if you want to improve your golf game you have no problem hiring a pro for a few lessons

If you want to get fit you join a gym and hire a personal trainer

If you sprain your back you see a doctor ,enter a rehab program with a physical therapist to get you back in shape and out of pain

But if your business has a problem…you feel you must go it alone based on your gut?

Market leaders have the emotional intelligence to know what they know as well as what they do not know. They seek help from experts that complement their gifts and realize faster and much more profitable growth.

So where do you turn when your business needs help? Why?

“Leader, You Don’t Have to Go It Alone!”

Are Your Salespeople Playing “Feature and Benefit BINGO?”

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Are your salespeople costing you revenue you should be winning by playing “feature and benefit BINGO?” The only way you truly know is if you or your VP of sales is traveling and working in the market with your sales team.

Feature and benefit BINGO is a game untrained salespeople play far too often. They “show up and then they throw up” and they spew all the features and benefits they can think of waiting for your buyer to jump up and yell”…BINGO….I get it….I figured out what problems you can solve for me…”

Market leading salespeople ask questions and take the time to listen and understand the problems, the pain their buyers are experiencing and they position their product and or services as solutions to those problems.

As a quick litmus test, ask yourself who talked more in the meeting? Your buyer… or your salesperson? If it was your salesperson I promise you they are showing up and throwing up and it’s costing you sales revenues you could have won.

Are you playing feature and benefit BINGO in other areas?

Your website?

Brochures?

Your sales training?

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

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

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

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

end of sales period price discounts

change in agreed payment terms

change in standard shipment terms

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

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

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

How about your organization……

Is your sales team afraid of the dark?

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

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

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

Get Your Sales Team in Shape For Profitable Sales Growth

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Are your salespeople prepared to win in the market they face today? Are you sure? Market leaders are taking the time to clearly understand their markets, their problems, buyers, and buying process to make purchases. Market losers plan to work harder, doing more of what they have been doing that did not produce results. Losers believe it’s just an “execution problem” a “motivation problem” so they plan to “manage” their sales team’s activities even closer. Market leaders are getting their teams in shape for the market of today.

In March of 2009 I decided I needed to get in shape. Years of traveling two to three nights per week, poor food choices and lack of exercise and I found me in the worst shape I have ever been in. It was not something that happened over night, but over a long period of lack of focus. So the first thing I did was get moving. I started working out like a maniac. I took spin classes at 4:00 am and then I would lift weights and end my workouts on the elliptical machines. This went on for months, and although I did have more energy, I was not losing weight.

More Activity alone was not producing my desired results.

So I attacked this like a business problem; I started doing research. I found that I fell into the same trap many people assume when trying to get healthy; activity drives healthy results. Therefore we assume more activity should produce even more desired results right? Wrong! The more I read I learned that 65% of your health is determined by the food you consume (inputs) and 35% is activity (execution).

I was focused on activity with little attention to what I was consuming, what was going into my body. I found with the right focus on inputs, you don’t need to have 2-2 ½ hour workouts. A strong workout of 40-60 minutes produced greater results. Within twelve months I lost 80 pounds, became healthier, and I now have more energy and more time.

I find many businesses try to fix unhealthy sales results by demanding more activity without focus on key inputs.(strategy)

Managers quickly direct their sales teams to more activity although the current activity is not driving the desired results. (Einstein’s definition of insanity)

Just as there is a proven formula for creating a healthy body, I have found a similar model to create healthy sales teams that drives profitable sales growth.

65% of your profitable sales performance is driven by strategy (inputs)

35% of your profitable sales performance is the result of sales team execution (execution)

(Ironic most of us have this backwards…)

To insure your salespeople are equipped to be effective and efficient in the market of today you must have a clear understanding of your market, market problems of today, and map how your buyers buy today. These inputs will strengthen the core of your sales team performance with a power that the majority of your competitors do not have.

So how do you get started?

Get out in the market

Ask open-ended questions

Meet with customers and those who you did not sell

Identify the problems they face today

Equip sales with a value proposition that resonate with buyer needs of today

Map the buying process buyer’s use

Create a sales process that mirrors how your buyers are buying today

Develop sales tools for areas in the buying process where the sale grows dark and stalls

Constantly review the buying process and adjust your sales process, add tools as needed

Activity

Once you clearly understand how your buyers are buying, how they are making buying decisions today, equip your sales team with a new sales process and tools. Manage their activity using the sales process that mirrors how buyers want to buy.

“Your focus must be on how your buyers want to buy and not on how you want to sell.”

How do we execute new sales process?

Share the buying processes you discovered with salespeople

Train your sales team with the sales process you developed to serve how your buyers are buying

Teach your salespeople how to, and when to, use the new sales tools you created

Create sales tools that share the problems you solve in the markets voice

Create key performance indicators that measure key steps in the sales process

Constantly assess your new defined sales process for areas the sale seems to go dark

Lead your sales team by managing sales opportunities through the defined sales process steps

Identify salespeople who may need additional, individualized training, or may not be embracing new process

The core strength of your sales team’s performance is based on clearly understanding your market…stay close to buyers

Applying a sales process that supports how your buyers want to buy will produce healthily results in sales revenues and profits.

“If you have not changed your sales process in the last 6 months it’s broken.”

“If you have not produced new sales tools in the last three months, you are losing sales you could be winning.”

How about your team?

Do you clearly understand the problems your buyers are facing today?

How are your buyers buying today?

How do your buyers shop today?

Who is involved in the buying decision, and what additional information do they require?

What problem does your product or service solve for your market?

Market leading sales teams understand their buyers, buying criteria, and how they want to buy. They design sales processes that mirror how buyers want to buy and they equip their sales teams with sales tools to help buyers buy.

Two Reasons the CEO Should Not Run Sales

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The role of CEO is hard enough, particularly in this shifting and changing economy. Balancing all the spinning plates you face each day is difficult without trying to lead and manage a sales team.

The quickest way to insure a sales decline is have your sales team report to the CEO.

I have seen sales decline when CEO’s take on the role of driving the sales team for two common reasons;

CEO’s fail to provide the sales team a Value Proposition that resonates with buyers

CEO’s communication preference and style

One of the best parts of my job helping a variety of businesses that have what they call a “sales problems”. I have served a number of CEO’s over the years and as a group (for the most part) they understand their most important role is the keeper of their brand promise and positioning .

To be effective as CEO you need to balance all those spinning plates while also focusing on those initiatives that result in the greatest impact on the business today and in the future. (not a job for the faint of heart) CEO’s are natural at problem solving and driving the execution of key performance indicators. They are process driven and have the tenacity of a pit bull once they lock into a vision.

Most CEO’s should never lead sales for two main reasons;

CEO’s fail to provide the sales team a value proposition that resonates with buyers

Salespeople require a market driven value proposition for the products and services they sell. This should explain the problems you solve for your buyers and not just what you do. It should help your sales team understand who they should target. To insure your value proposition resonates and continues to connect with buyers you must listen and observe the market on a continual basis. Focused CEO’s are flying at 45,000 feet above your market and often become frustrated when sales teams share new roadblocks to achieving their goals. What CEO’s want is sales velocity.

You can tell when your CEO is frustrated when he or she says;

“ just make it happen”,

… or my favorite ” I don’t pay you to tell me problems, I pay you to sell through objections and hit your numbers…” .

CEO’s have so many things already on their plates the last thing they need is to add more “to-do’s” to add to their never-ending list. Often buried deep in sales feedback you will find the need for new sales tools for ajusting the sales process based on a buying process that shifted.

A strong VP of Sales can work with salespeople and the CEO. The VP of sales understands the mission and objectives while also constantly assessing the market, buyer needs, buyer criteria, and equips the sales team with value propositions and sales tools.

CEO’s communication preference and personality style

CEO’s are focused on communicating in short bullet point bursts and salespeople speak in stories. ( can you see the train wreck about to happen?) Market leading salespeople incorporate what I teach that I call “story speak”. As opposed to speaking in feature and benefits, I teach salespeople to listen to the buyer problems and share how our product or service solves that problem in the form of a story. So we teach salespeople to speak in stories to communicate effectively, but we get frustrated when they can’t report results to us in bullet points?

I attended a sales conference once and the CEO brought me in to fix what he called a repeatable sales process problem. He asked his team to individually meet with me to share the common roadblocks they face in achieving their numbers each month. ( so far so good)

But then he said something that still makes me cringe…

And remember Mark is busy like me so…

Be brief…

Be brilliant….

Then Be Gone…

(When he got to this part three of the salespeople in the room also said “be gone”…they obviously have heard this before)

CEO’s often rise up through the accounting, technology, and finance channels and they are very process driven. They do not mange people, they develop and manage processes,systems, and or people to follow processes. If you follow DISC assessments, most CEO’s are high D, moderate to low S and low I and moderate to high C. Most salespeople have (very) high I, high D and low S and C. (Often very low C) So again, just based on how CEO’s and salespeople are naturally wired that light at the end of the tunnel is a train.

An experienced VP of sales is constantly listening for common market roadblocks shared among their sales team. They grew up through the sales ranks.Experienced sales leaders understand you need to lead each salesperson individually. A seasoned sales leader will observe and listen to changing buyer problems and processes to identify sales tools the team needs to help their teams continue conversations to a close. VP’s of sales earned long ago how to use their sales team’s natural styles and they provide back-end support for their shortfalls.

strategy

How Understanding Your A B C’s is the first Step To Driving sales growth …

Does Your Sales Compensation Plan Create “ Commission Junkies”?

The Toughest Sale an Entrepreneur Can Make….Investment Capital to Grow

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

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

"Leader, You Don’t Have to Go It Alone!"

Are Your Salespeople Playing “Feature and Benefit BINGO?”

Market leading salespeople ask questions and take the time to listen and understand the problems, the pain their buyers are experiencing and they position their product and or services as solutions to those problems.

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

end of sales period price discounts

change in agreed payment terms

change in standard shipment terms

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

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

How about your organization……

Is your sales team afraid of the dark?

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

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

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

Get Your Sales Team in Shape For Profitable Sales Growth

I find many businesses try to fix unhealthy sales results by demanding more activity without focus on key inputs.(strategy)

Strategy

“Your focus must be on how your buyers want to buy and not on how you want to sell.”

Two Reasons the CEO Should Not Run Sales

The quickest way to insure a sales decline is have your sales team report to the CEO.

CEO’s fail to provide the sales team a Value Proposition that resonates with buyers

CEO’s communication preference and style

CEO’s fail to provide the sales team a value proposition that resonates with buyers

CEO’s communication preference and personality style

Be brief…

Be brilliant….

So how about your experience…..

Should sales report to the CEO? Why or why not?

Is there a benefit for CEO’s to have sales teams report to them?

What impact, if any, have you seen on the morale of the salespeople who report directly to the CEO?