Boiler's Blog

The Sales Funnel (or Sales Pipeline) Part 1

2012-02-29T07:00:00.000+11:00

I am now officially tired of organisations that feel their CRM is a pipeline. Lets be clear—it is not!

The sales process is often compared to a funnel where new leads coming into the system (prospects) are placed into the top of the funnel (the widest part) and then worked through the system. The salesperson may then use a number of techniques such as informing, persuading, providing information, demonstrating until, at the narrow end, an order is placed and a sale is closed when payment from the customer is received. A sales funnel report presents a "snapshot" of your sales function at any given point in time.

The funnel framework works fairly well because for all new leads that are generated by marketing, there is a closing rate that represents the sales that ultimately result. The number of resulting sales is usually significantly less than the number of total leads generated hence it is useful to think that as leads work their way further down the funnel, there will be less and less of them until they come out the narrow end as sales.

One important thing to note is that organizations define each phase in the process (or, part of the funnel) differently based on their authentic sales process. The pre-defined ‘Sales Steps’ in an off the shelf CRM system rarely cover your unique sales process therefore sales people will not naturally follow it.

Each step working through the funnel should have clearly defined criteria so that there is specific knowledge about all the leads at that point (questions and rules need to be developed for each step). In other words, leads become more and more qualified as they work their way through the funnel, and at each step you will know exactly what that specific level of qualification is.

Another important thing to keep in mind is that the funnel is a great way to track and forecast sales (a great tool for sales leaders) as well as gauge marketing activity.

By running a sales funnel report, the sales manager can see how many leads are at each step, if there are any "bottlenecks", or if there are an insufficient number of leads at any stage. It allows the sales manager to check the sales effectiveness of the team. Armed with that knowledge, the sales manager may instruct his or her sales force as to where they should focus more attention to keep sales at the desired level. That’s great sales coaching! They can then also work closely with the marketing manager to ensure they are generating enough leads to hit sales goals, whether the leads are of high enough quality, or what needs to change to hit sales goals. That, of course, brings about sales and marketing alignment not warfare.

Get your sales process right, build an authentic sales funnel/pipeline and then coach it. Simple.

Stay tuned for the definition of CRM in my next post, just to completely clear things up.

Boiler

It's agony buying from you!

2012-02-22T07:00:00.000+11:00

Following a recent atrocious experience I appeal to all customer driven organisations to improve their operations.

As a devoted Essendon Football Club member, the new AFL TV rights deal means we must have FOXTEL to view all games live. So begins the installation agony...

Over two months we have, at last count, spoken to 16 people, had four separate visits from tradespeople who were unable to proceed without further authorization and spent collectively over three hours talking to automated voice machines and call centre staff.

Last night, at the end of our tether, I spent 67 minutes on the phone trying to find someone in FOXTEL to care about and consider the challenges we were having with a sympathetic ear.

Over an hour later one person finally said sorry. He worked through my concerns and then, wait for it, he asked me to ring back again in the morning because everyone in the orders department had gone home! I said "If I have to ring back in the morning it will be to cancel the order!" He agreed to try and get a message to them (maybe tie it to a stone and throw it).

Clearly, their business has become so bureaucratic and process driven they have lost focus on the kind of business they are in, the customer business.

This got me thinking. What if they tried buying from themselves? How do you keep the human element to sales and service in this cost down economy?

What was sadly lacking here was:

Someone to truely listen
Someone with an intent to solve and help make customer satisfied
A process that allows common sense and doing the right thing as a norm
The ability of a manager to take control and change the outcome to a happy one.

Proctor and Gamble have just spent millions getting the full story about their customers on a number of products with stunning sales results. Once they let customers drive the innovation and sales model they could deliver a product and service that matches.

Here is a test for today. Go undercover for a day, try and buy from your own organisation and see how it goes? Document the experience and process map it. Then feed it back to all in your business so you get better.

Secondly, look at how you can ‘humanise’ your business again. In this new world of economic uncertainty and volatility an understanding, active listening and commonsense approach to serving your customer could just become a modern day competitive advantage.

Boiler

Lets drop the price and sell a bit more!

2012-02-15T07:00:00.000+11:00

Consider the following scenario.

You are just leaving for an important meeting with a major potential client when the phone rings and a very excited territory manager asks you for a quick decision. She is on her way to a very important meeting and has just been informed that she must make a final proposal in 30 minutes.

The conversation goes like this:

"There is no way that I can get any more sales of "Wonder Widget" if you insist on selling it for $10.00 per unit. Now do you want to sell more or not?" Of course you do. "Well I am convinced that I can get the state contract if we offer it at $9.00. This will increase my state sales by 50%. How about it?"

You trust her judgement and are pretty sure that she will really get that 50% increase in sales. Of course it will almost certainly mean that the new state contract price will flow on to the existing customers. The increase in volume would really help your national sales, not to mention relations with those in high places.

Your gross margin is 20% and your business group profit is running at $98,000 per year. It would be a major achievement to get this up by $100,000 pa. A slight problem is that you are under strict instructions not to let your total profit fall below $98,000. You suspect that they really mean it this time!

Question: Is this a good deal?

How many more units (%) would you have to sell at the reduced price to ensure total profit does not fall?

Here is an example.

Today: You sell 100 units at $10.00 each = Revenue of $1,000

Your gross margin is 20%
Therefore Total Profit is ($1000 x 20%) - $200
Profit per unit is ($200 profit divided by 100 units sold) - $2.00
Cost per unit is ($10.00 minus profit of $2.00) - $8.00

Now you drop the price by 10% to $9.

Costs are not going to change and from the above example each unit still costs $8.00
This means that you now make $1.00 per unit profit when you sell at $9.00
Your previous profit level was $200
You now have to sell 200 units to make the same $200 profit
Since you were selling 100 previously this means an increase of 100%

Tomorrow: You must sell 100% more units after reducing the price by 10% in order to make exactly the same profit as you had before you reduced price. Sell only 90% more units and you will reduce your profit.

Now use the table below to find out how much more you have to sell, to make exactly the same level of profit as previously.

Example: Your gross margin is 25% and you decide to cut your selling price by 10%.

Locate 10% in the left hand column and follow across to the figure in the column headed 25%.

You need to sell 66.7% more units to produce the same level of profit as before the price reduction.

Action

Work through the process described above.
Ensure that every member of your sales team who may have an opinion about what price you should sell your product or service at, is familiar with this table.
More importantly, that they all know how to do the calculation themselves
Work with you coach to develop a presentation to your sales team on the pitfalls of discounting.
Prepare specific examples using your own products
Involve your team in calculating the impact of price reductions.

Boiler

Why have strategic business meetings?

2012-02-08T07:00:00.000+11:00

Strategic Business Meetings are a very useful method of understanding what your customers actually value when it comes to their business. Keep in mind without customers you are dead, period. Not knowing why customers do what they do or what they value is like having a tooth ache and not going to the dentist because you are scared.

Traditionally in Australia customers very rarely tell us they are unhappy or dissatisfied with our service or offering, they just go somewhere else. Therefore we should spend as much time as possible understanding them and their reasons for doing what they do.

In the late eighties, IBM took a group of their best sales people off the road for a 2 week period to conduct a test with stunning results. They instructed these sales people to go to their top 15 customers and spend time understanding them and their blockages to growth and success. Of course this was very new ground for these people as they were used to hunting and selling product, however the results of this exercise were staggering. After this exercise IBM found that the group of customers interviewed and understood spent nearly 21% more with IBM in the next financial year. Pretty amazing result considering all the sales people did was to stop selling for a moment, take a breath and take a little bit of time to understand their customers better.

Following is a road map for conducting Strategic Business Meetings with your best customers, good luck.

Objective: To increase the interaction between key customers and management both in the quality and frequency of calls.

Rationale: We believe by making key customers feel special and understood we will achieve and secure more work from them in the future.

Outcome: To gain valuable understanding of a customers environment, so as to continue to present unique selling propositions and ideas to them.

The Process:

Define Key Customers
Develop an Engagement List
Contact Key Customers by phone
Conduct a Strategic Business Meeting
Follow up with a thank you letter or email

1. Define Key Customers – Strategic Business Meetings should involve your Key Customers or “Gold Stars”. Using your database you can identify your 20 – 30 most valuable customers. If you wish to more accurately identify the most valuable client list you can use the “Luxury of Choice” process.

2. Prepare a List or Report – From that produce an excel spreadsheet that you can use as a planning document.

3. Contact Key Customers – Keep in mind this is all about the customer, we must remember this is not a sales call; it is not another opportunity to front product. You are going to use this time with your customer as an opportunity to gain understanding of their business problems and “blockages to success” that will enable you to assist in tailoring solutions in the future.

You are calling to make time with them, respect the fact they have little of it! A suggested approach may be:

You: “Good Morning Michael, the purpose of my call is to see whether you would have the time to meet with me at some stage to discuss what is on the horizon for your business, which will assist us in the planning of our business? As one of our best customers I was hoping by spending some time with you, approximately thirty minutes, we could learn how to help you and your business better. Please keep in mind that this is not a sales call.”

You: “Do you have a time that suits you?" (have diary ready)

Customer: “How does 9.30am on Wednesday sound?”

You: “That’s fine Michael, I think this should be a pretty informal process so would you like to go out for a coffee/sandwich/quick bite or is the office O.K.?”

Customer: “Good idea …………………………..”

You: “How does Acme café sound?”

Customer: “Done!”

Keep in mind you have 15 seconds to convince this valuable customer that they should see you and spend their valuable time with you.

You must have a - Purpose for the call,

- Process how long will this take?

- Payoff what will we both get from spending time together?

Plan out your approach, document or write it down if you must, practice it and then put it into practice. It will feel a little awkward at first, however as you get some appointments it will become easier. Also the role play above is a guide, it is not a script. Change it and develop it to suite your own style and delivery method but don’t forget the rules, purpose, process and payoff.

4. The Strategic Business Meeting – With the key objectives and outcomes defined meet with the customer as scheduled. Be on time! Firstly you must thank them for their continued support and custom. Again restate the “purpose, process and payoff” and check for agreement. “Is that O.K.? “Are you right for time?” Then by asking clever, “open questions” you should look to allow the customer to open up about their business. A good question to start with might be: “So John, I know a little about your business, however I would love to know more, especially about what the next 12 months has install for you?” or “Could you describe to me the 3 biggest challenges you face in your business in the next 12 months?”

Keys for this meeting:

Planning
Open questions
Empathy
Active Listening
It should feel like you are genuinely interested in them and their business. It should not be an interrogation with the secret police!
Take notes (remember to ask for permission to do so at the beginning of the meeting)
Note down actions agreed on and then carry them out.
Look for clues!
Look for opportunities to close the GAP for them.

5. Follow Up – After the meeting is completed make sure the information gained is inputted into the appropriate database or document. You should also send a thank you message. Using email, a card, with comps slips or a letter with a simple short message can be a powerful indication that you care and appreciate the time they gave you. Make sure all agreed actions are followed up promptly or within the agreed time frame.

Boiler

Key Account Management

2012-02-01T07:00:00.000+11:00

The Sales Science of gaining, developing and keeping Key Strategic Customers with multiple projects.

With sales changing so rabidly for all sellers of products and services post GFC, Key Account Management is the one area that has seen major shifts in the buyer behaviour model and the skills needed to respond through sales effectively.

Unfortunately for most sales organisations this is one of the most organically developed, poorly skilled and resourced areas of a sales teams. Most organisations key customers have grown via an organic simple sales approach into large high value business using the same simple sales approach.

This is a problem, a big problem in 2012.

If these customers supply a large part of the organisations revenue and we still treat them as ‘simple’ customers who we simply call on more often, wine and dine sometimes, and keep via price/margin shrinkage, we will inevitably loose them. Ask these questions of your sales team:

‘Is sales getting easier or harder?’

‘Are we being treated in sales as a commodity more today than before?’

‘Are customers demanding more support, technical expertise, knowledge and time of our sales people?’

The answers, nearly without fail are yes, yes and yes.

But hang on a minute. They want commoditisation and yet more ‘consultative’ support? Surely this is an impossible position for a business to fund with the massive cost of running a sales team?

Of course it is, however that is the reality due to many reasons and the real reason it is essential for sales groups to build their Key Account Management Expertise.

At Banjar Group we take a unique approach to developing the skills of Sales Teams when it comes to Key Account Management.

Science + Experience + Skills + Strategic + Planning = KAM

Science – With Sales so often devoid of any ‘science’ we must bring a level of science to improve the effectiveness of KAM within organisations. The science may involve:

Consumer behaviour modelling
Use of DISC, MBTI and or TMS profiling behavioural tools
KAM Competency Modelling
Innovation
Key person analysis

Experience – The collective global wisdom of Banjar Group combined with its 180+ years of selling experience mean one thing, we know what it takes to win big business. We have:

Run customer ‘war room’ scenarios
Planned and been successful in winning major accounts of up to $50 million in value
Lead, coached and participated in large scale key account management at both B2B and B2C levels
An understanding of the culture and skills required to win big and keep big
The knowledge to communicate this wisdom and create effective learning beyond just ‘ego’

Skills – What are the skills needed to create great sales behaviours, techniques and outcomes at the KAM level? They are over and above the simple sales training matrix. They may include:

Coverage modelling
Team selling
‘War’ room principles
Strategic Business Meetings - SBM
Question techniques for high level selling
Negotiation skills
Call structure for KAM phases
Follow up matrix
Account planning
Problem solving at KAM level
‘Octopus’ selling in layers
A pure consulting model – the art of sales consulting

Strategic – What are the strategic foundations of why we must develop this business? The essential reason for selling. Does it affect the critical success factors of our business? This may include:

Sales Strategy – Vision, philosophy, story, principles, product, resource
Coverage
Product portfolio analysis – what fits?
Forecasting
Justifying resource
Short term v long term
Value proposition
Revenue, cost, risk
Business cases for profitability

Planning – If we have all the above checked and taught, then implementation is required. For this the best KAM planning skills will lead to the most effective sales results. High-powered planning is key to KAM success, fact! The areas covered here are:

Planning as a culture for sales
Tools – 1 page plan and beyond
Project planning
Follow up
Activity at sales levels
3 Tier plans
Short term v long term
Decision process
Forecasting Goal, Budget and Target
Phases of activity
Change force fields

Boiler.

Passion and Selling

2012-01-04T07:00:00.000+11:00

The effects of passion on sales success has long been debated in the Sales Science Lab at Banjar Group.

In our Sales Competency Model passion currently sits under other attributes such as energy, resilience and stamina. These are all hallmarks of great sales people. Does passion sit here or is it a greater force all on its own?

From what I've observed, it is clear that the best sales professionals are not only very passionate about their career in selling – they love it! They are passionate about the environments they sell into and the ‘stuff’ they sell.

There is also plenty of evidence that when you combine passion and practice there are positive outcomes.

Passion + Practice = Opportunities for Success.

It is not just luck!

Take Jason Winderlich, not a sales person, but an AFL footballer. As a 16 year-old the Essendon mid-fielder played 52 games of footy in one year. He played Under 16’s, Under 18’s and Open Age every Saturday! Clearly, he is passionate about his footy. He practiced heaps and then the doors of the elite league opened for him. In 2002 he was picked in the National Draft!

The most successful people I have met, or observed, have followed this same path:

Passion + Practice = Opportunity.

Are you passionate about selling or whatever it is you do?

If not, shift. Get out and find your passion!

Boiler

What is your Sales Story?

2011-12-28T07:00:00.000+11:00

What does your business do?

What problem do you solve for your customers?

Why does your business exist?

Your Sales Story is a precise description of what your organisation does. It describes the business the company is in. It is a definition of why your company exists currently. Each member of your sales organisation should be

able to verbally express your sales story.

lt should include:

– Some history

– Your Unique Sales Proposition

– Your Strategic Competitive Advantage

– An explicit reason why a customer should buy from you

Every sales person needs a great sales story.

Imagine that a sales person was meeting a potential customer for the first time. Typically they have a minute or two to introduce their business – the sales story for your business.

It is our experience that companies don’t often get this right. We can visit sales teams and ask them for the story, and get different answers from each team member. When you see teams that have it right – a consistent story – it

has a lot of power.

The scary thing here is that many sales employees have no story.

We strongly believe that every business should have, and everyone should know, a very powerful sales story.

Boiler.

Sales Training and Banks. Why not?

2011-12-21T07:00:00.001+11:00

While in Brisbane this week, I met with an old friend that leads up a division of a major bank.

“How’s business?” I asked.

“Tough,” he replied. “We're being asked to sell, sell, sell Mike,” he quipped.

So I asked how that was going.

“Not well,” he replied. “Nobody knows how to do it and we’ve had no training!”

He has since approached corporate HQ in Sydney and been told ‘No budget’ for training in sales.

To use an AFL football analogy, it’s like asking the Brisbane Lions to run out, Round 1 in the 2012 season with absolutely no preparation, coaching or development. Chances of winning – Zero!

Why is it these large corporate goliaths from the relative safety of corporate HQ and their mechanical spreadsheets, still refuse to acknowledge that ‘skills’, like selling, are not innate in humans? Especially bankers!

Boiler

My 7 Best Books of 2011

2011-12-19T07:00:00.000+11:00

Here is my reading list for this year. These fine books inspired me, saddened me and changed my thinking. What will you do with them in 2012?

Enjoy.

Thriving by Michael Grose - An insight into the world of the developing child.

Tribes by Seth Godin - Read this with my daughter in Hong Kong, wonderful book.

Coaching Sales People into Sales Champions by Keith Rosen - One of the few good sales coaching books around.

Broken Windows Broken Business by Michael Levine - My number one for the year.

Checklist Manifesto by Atul Gawande - This book will make you think before entering hospital again.

Only 2 Seats Left by John Anderson - The wonderful story by John Anderson founder of Contiki.

And my biggest tip for the year?

Sales Cats by me!

Have a great Christmas and wonderful New Year.

Sell well in 2012.

Boiler

When the Red, Red, Robin of Customer Service Stops Bop, Bop, Bopping Along!

2011-12-15T07:00:00.001+11:00

I've just spent a day in Brisbane coaching a Sales Cat in the field. This company sells into retail so I spent a lot of time in Northern Brisbane shopping centres. About 20 days out from Christmas, I had mixed expectations of the day. Kids, mums with babies in Santa’s arms did come to mind!

But something far more sinister became blatantly clear as the day rolled on. If retail selling and customer service continues down this path a much larger online Armageddon will result.

Shop after shop, stocked to the ceiling, poorly laid out and lacking any good or helpful displays. Grumpy, dismissive staff, too busy to serve let alone notice you've entered their store.

“Sale”, “Discount”, and “Reduced” signs of panic and desperation are everywhere, accompanied by the wails of “the internet and economic environment is to blame”… Bullshit!

Sure these factors are having an effect but they are not to blame. Not recognising the one clear sustainable competitive advantage of the bricks and mortar retail store – customer service – is crippling them more so.

In one day I observed many young, untrained staff doing ‘their job’. That’s right, their jobs! Stacking shelves, collecting orders, panicking and being busy. Rarely did I see anyone openly ‘engage’ customers to persuade, develop and encourage emotional or at least inspirational purchasing.

Modern retailing requires them to do more than just their jobs. They have to ask questions, care, and be present in the moment. Be cheerful, energetic and most of all proud and enthusiastic about the brand’s store. Just give a !@#% would be a start!

While sitting at The Coffee Club I decided to prove a theory to my trainee. Across from us was a store named Robins Kitchen.

“Let’s see what happens if I walk into that store shall we,” I said, and to his enjoyment, did!

I walked in, walked around and passed the counter twice!

Past four staff with no response!

I did another loop with still nothing!

I walked out and towards my now gasping with shock observer.

Robins Kitchen with its impressive store layout, cool products and Red Robin brand was not bopping along. It is heading for a very cold winter.

The point of my test.

If all you do is stack ‘stuff’ on shelves in one of Westfield’s halls and offer no service without any element of customer orientation or care the internet will win every time, without fail!

If all customers need to do is buy then the shoppers in us will stay home and purchase online. Shoppers want help, care, smiles, product knowledge, and guidance, to be engaged by well-trained and happy people. I hope Robins Kitchen reads this and adapts first!

Boiler!!

Does sales and customer service training increase performance?

2011-11-17T07:00:00.000+11:00

There is building evidence world wide that traditional sales and customer service training is either failing completely or rendering sales teams less effective than before the training was conducted.

From extensive observation and experience, it is our belief that traditional “off the shelf” training delivered in the classroom, while valuable, has little long-term effect on behaviour change or sustainable productivity improvement. While there are many reasons why it may fail, we believe there are four main arguments as to why.

Low level of ownership in the organisation to a common goal and vision or philosophical approach to strategic selling.
Poorly prepared content not directly related to the sales or customer environment
Poor design and delivery models
Low levels of ownership in the ongoing refining loop so real learning is hardly ever retained.

A group of high performing people chasing a confused or miss-communicated vision is fraught with danger. Training executed with no real attachment to the critical success factors of the business will not drive profit and growth.

There is a common belief in Australia that “one-size-fits-all” when it comes to sales training content. There is ample evidence however, that this is not the case. Every organization has complex variations in their sales methodology and processes which relate directly to success or otherwise.

There is no doubt that the design and delivery of sales and customer service training has significant effects on sustainable results being achieved. Most lecture style training does not allow for the retention of complex models nor does it allow for practice in real situations with real customers. It is proven that there is a learning retention of around 70% when training is delivered in an experiential style combined with in-field coaching. Where as there is a less than 15% retention with one, two or three day lecture style training.

Unfortunately many training programs are not developed with individual organizations in mind and offer little resemblance to the sales persons customer environment, resulting in poor sales behaviour and therefore reduced performance.

For real behavioural change, trainees must frame, learn and experience in training rooms, try new models in the field and then have a solid mechanism to refine the experience after the event.

War Room Sales

2011-10-26T07:00:00.000+11:00

Sometimes sales teams need to consider a specific sales strategy and focus for key customers, especially if they make up a considerable percentage of your organisations business. Just lately I have been working with a customer where we have a war room for selling. Here are the tips, tricks and traps for war room selling.

In my mind, war rooms look like Winston Churchill's WWII Cabinet War Rooms, model ships laid out, tanks and soldiers to bring focus and plan implementation. Always in a bunker with a large map and table in the middle. For sales the concept holds true.

In a challenging sales environment, assemble your key sales people, set aside a space and start to build a visual, focused and structured sales offensive.

The space – A room with plenty of bare walls, whiteboards and flip charts. A research computer with internet access, basic tables and chairs and lots of paper and pens. Less is more. More of what matters counts.

The sales vision – Write it down and stick it up on the wall. Include key strategies for sales success and the purpose and prime objectives of the space. Start with the end in mind.

The process – Once you have the vision, map your 80/20. Who or what are the 20% that give you 80% return? Who are the key clients that you need to develop - switching cost, relationships of sales intimacy and extension into wallet share. Mind map each customer on their current state, covering every detail you know about them, then everything you need to know.

Innovate – When all the mind maps are done, begin to consider your plan of attack. Don't go straight into action! Consider first the opportunity in each client. Agree that there is, or is not, an opportunity to grow. Then map ideas. Go wild! Seth Godin 'Purple Cow' style and then action.

Action and implementation – Now use the old one page plan method to action up each client attack plan. See the video on our YouTube channel or contact us for instructions.

People – This is a great opportunity to select a strong team to mange the process. Choose your best soldiers then run a specific 8-week cycle where you meet regularly, set targets then review and refine. Celebrate your steps to success. It can be fun, a great learning environment and who knows, may just increase sales.

Remember, the key for selling to big zebras is winning the wars not the battles!

Boiler

Selling in a downward economy

2011-10-19T07:00:00.000+11:00

"Train my sales people – fast!". As the world goes once again into a giddy spin, I'm hearing this time and time again. Let's take a look at the mechanics and dynamics of sales effectiveness, and why sales performance may not be improving?

Mechanics
Sales training has been around for a long time, see John Patterson's NCR Primer from 1887, and every year we see old ideas tossed aside to make way for the new.

It is reported that in 2008, US corporations spent around $6 billion on sales performance improvement, yet sales productivity (pre-recession) was down.

On Amazon there are 40,000+ "how to sell" books and 12,000+ on "sales techniques". Social media and blogs are teeming with daily offerings, free webinars, articles, ebooks, videos, everyone is searching for help to improve sales capabilities.

There are numerous surveys, reports, magazines and firms, including ourselves, circling around sales and marketing ineffectiveness. Add to this Sales 2.0, apps, Facebook, Squidoo, LinkedIn and copious other associations and groups.

People are looking for help. So what Boiler, you may ask?

To us, and many others in the field of sales training, the core issues of sales ineffectiveness are clear. There's plenty of sound advice and answers for anyone that cares to look. There's a proven process, that when properly applied, works.

Regardless whether organisations are large or small, some act and find success while others do nothing and never change.

So, GFC, interest rates, retail slumps aside, why is sales as a profession and function, going backwards?

Dynamics, I think.

It's the attitude of sales people, sales leaders and directors to the function of selling. The loss of passion, attitude and drive to be outstanding sales professionals. Business people who sell.

Rarely mentioned, dynamics are deemed soft and very hard to measure, so often considered not important. Yet in every role, in every business, the whole person comes to work and must be engaged fully – both mechanics and dynamics.

Are your sales team committed to the art and profession of selling? Do they have the energy to be Sales Cats or just mechanical reps, "order takers?" Do you lead, coach and or manage the whole person?

Challenge this idea and let us know the results.

Boiler

Farewell Steve Jobs

2011-10-11T11:00:00.000+11:00

Banjar Group would like to acknowledge the passing of Steve Jobs and recognise the innovative brilliance of the Apple co-founder.

In our work we often reference the address that Steve Jobs made to the Stanford Graduates on June 12, 2005. In this talk he pointed out the importance of “connecting the dots.”

“You can’t connect the dots looking forward; you can only connect them looking backwards. So you have to trust that the dots will somehow connect in your future. You have to trust in something - your gut, destiny, life, and karma, whatever. This approach has never let me down, and it has made all the difference in my life.”

If it wasn’t for Steve dropping out of College he may have never taken a calligraphy class that showed him how to make type beautiful. This opportunity resulted in the creative simplicity of Mac’s, not to mention the beautiful typography, multiple typefaces and proportionally spaced fonts!

Steve often commented that being fired from Apple was the best thing that ever could have happened to him. It freed him to enter one of the most creative periods in his life. The result of this creativity was Pixar.

“Sometimes life hits you in the head with a brick. Don’t lose faith. I’m convinced that the only thing that kept me going was that I loved what I did. You’ve got to find what you love. And that is as true for your work as it is for your lovers. Your work is going to fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work. And the only way to do great work is to love what you do. If you haven’t found it yet, keep looking. Don’t settle. As with all matters of the heart, you’ll know when you find it. And, like any great relationship, it just gets better and better as the years roll on. So keep looking until you find it. Don’t settle.”

In closing, Steve made mention of a publication, The Whole Earth Catalog. A bible for his generation it was full of ideas, tools and notions. In the days before personal computers it was lovingly hand-made.

“On the back cover of their final issue was a photograph of an early morning country road, the kind you might find yourself hitchhiking on if you were so adventurous. Beneath it was the words: “Stay Hungry. Stay Foolish.” It was their farewell message as they signed off. Stay Hungry. Stay Foolish. And I have always wished that for myself. And now, as you graduate to begin anew, I wish that for you.”

Our wish for all is to find what you love and do your best at it. Never stop looking for what is right and what makes you happy or makes a difference.

Vale Steve Jobs.

You can read the full Commencement address here.

Is the internet really to blame for loosing a 60 year old competitive advantage?

2011-09-28T13:40:00.000+10:00

Last week I had the pleasure of doing a Sales Cats keynote at the Albury Northside Chamber of Commerce. A wonderful group of business owners joined me and we spent a morning tossing around ideas of how to sell in tough times. There was however a sad start to the day.

The night before on local Prime News, I noticed the story of Matthews Cycles in Albury closing after sixty years of trading due to the 'internet'. I was sad because this was not due to the internet.

This business had tradition, clients, reputation for incredible service and most importantly it had a sixty year old brand. Unfortunately this 'brand' was painted on the outside of the business sixty years ago but had not been repainted/repurposed for the modern consumer. As this bulletin was read I jumped online and typed Matthews Cycles into my search engine. And guess what?! Nothing! No website. Plenty of secondary links that lead me to browse and buy elsewhere.

While there is no doubt that service, and exceptional service at that, is critical to sales success today, the melding of web, social and online technology to your brand is critical. This wonderful icon of cycling in Albury should never have been lost. It should have been leveraged with innovation, tribe thinking, sixty years of selling data and branding that uses the internet as a new source of business not as a barrier.

Look at this current study to understand the importance of blending a modern brand and the internet to build success.

Should Matthews Cycles have had a Facebook page?

This demonstrates that businesses can of course blame the internet for their downfall but at some stage they will have to take responsibility for shifting to new and innovative ways of selling to customers.

The buggy whip maker made that shift when he discovered that driving gloves may be required for that dirty, smoking, noisy machine called the automobile as it rolled into to town.

Boiler

Why is customer service so hard in Australia?

2011-09-14T07:00:00.000+10:00

I've just spent four wonderful days celebrating a friends birthday which has given me an interesting perspective on what's possible in customer service given the right attitude. What started out as fun, gave an interesting perspective.

Being Mr Normie's 50th birthday, three couples decided to go to Hong Kong and spend a long weekend celebrating. We flew via Singapore, on Singapore Airlines, and experienced the marvels of large international airports. Despite serving millions of people, everyone wore a smile, all flights were on time, everything ran like clockwork and it was spotlessly clean. To add some fun, and to create lasting memories for Mr Normie, I asked every service person we encountered on our trip the same question:

"It's Mr Normie's birthday. Could you please help us celebrate by making a birthday wish?"

Upon arrival at the outstanding Langham Hotel in Kowloon, we were greeted personally and given free Moët and cucumber sandwiches with a "Happy birthday Mr Normie smile" for three days!

Normie's cake at Azuro Restaurant.

We dined at the beautiful Azuro Restaurant where, with one simple request, the entire wait staff joined the celebration. They served a specially prepared dessert complete with dry ice to add to the theatre. All this with a "No problems for Mr Normie attitude."

Even at a bar where the band was interrupted mid song, we got a "Put your hands up, put your hands up for Mr Normie”. Two hundred people screaming "Happy birthday Mr Normie!"

Then on our way home with Singapore Airlines, following a whisper in the ear of a Singapore Girl, Mr Normie was sincerely presented with a handmade birthday card signed by all the cabin staff, a small cake, dry ice again and a glass of champagne. All in economy class!

The best though was yet to come. My mate Norm rang the Langham Kowloon last night to thank the CEO of the hotel for their incredible service and staff. He left a message of thanks with reception.

One hour ago the CEO rang Australia to wish Mr Normie a happy birthday.

Did he have to? No of course not, but he did because he cares.

The Singapore Girls did because they wanted to.

The restaurant staff did because they love their jobs and are grateful for one.

The Langham staff did because the standards they set themselves are high, and it works. We will go back.

Sadly, our taxi driver coming home to Essendon from Tullamarine airport would not wish Mr Normie happy birthday because I did not ask. He was too pissed off about the small $37 fare for me to even mention it!

It's not hard people. Happy birthday Mr Normie.

Boiler

The kids got talent

2011-09-06T13:05:00.004+10:00

Check out this brilliant video created by Ogilvy as part of a campaign to find the World's Greatest Salesperson.

Maybe it's time, ladies and gents, to start paying closer attention to the creative wisdom of the younger generation. A loud applause please for having a detailed plan – backed up with 'the stats', keeping the issue simple and to-the-point, being pro-active and using enormous creativity to land the deal.

Do you see the possibilities in that?

Boiler

A magic wand to create sales?

2011-08-30T13:39:00.002+10:00

Why not?

I was working with a customer a couple of days ago and at the end of our coaching session he mentioned he had an appointment with a new open prospect which they hoped to sign. "Great" I said. "What's the plan?"

The owner commented he'd get them in, have a chat, discuss rates etc. etc.

I said "Why?" "Why what?" he replied. "Why discuss rates?" He said, “Because that's how everyone does it in our industry.”

"Silly me" I said! "Try this and see how you go."

I asked my client to bring in the new customer, thank them for taking the time to come in, and then go to the flip chart. Draw a magic wand in the middle and explain to the customer that that this is a magic wand where anything is possible! Then ask a beautiful question of the soon to be customer. "If you had a magic wand and could build the perfect relationship between a customer and a business like us what would it look like?"

Then I told him to sit down and be quiet. Let the customer map his own proposal. All you need to do is ask for clarity as he goes. Then, when finished, stand up and circle all the things that you do now as a given. Then anything that is a little left field ask him to explain further.

Wham bam thankyou Mam, you have a proposal already done and designed by the customer for the customer! Remember the human brain works in pictures first, words etc. second, so allow your customers to design the perfect proposal, then sign it off.

This client of mine rang me Monday to celebrate "Boiler you are a genius!" he yelled. "Why" I asked?

"We did what you said and the prospect has now signed and for above market rates – all signed on a flip chart!" He could not believe it was possible to sell that way.

Guess what – it is.

Boiler

Get some real action into your sales pipeline.

2011-08-23T16:06:00.002+10:00

As you know, sales leads can grow cold quickly. Every lead and opportunity is like a ticking bomb. If your recon says that somebody is shifting, looking to buy, you have to move within a few hours, not days. If you get a web lead that looks promising, you want to call that lead within minutes, not hours. Research shows that the odds of calling to qualify an online lead decreases by more than 6 times in the first hour.

As you convert sales-ready leads in your sales pipeline into opportunities, ask yourself:

Is there a great fit for your product or solution?

Is your prospect actively looking for a solution?

What is the prospect's timetable for finding the best solution?

What are the competing solutions?

What does the company have to lose if it did nothing about the problem?

What is the company's process for making a decision?

What are the company's preferred steps involved in a purchase?

Is there a budget?

What is the full potential of this opportunity?

Do I have access to all the decision makers, and how many of them can I convince?

How long will it take until the sale is converted?

What are the potential obstacles that stand in the way of the sale?

What are the realistic chances of closing this sale? (25 percent, 50 percent, 75 percent)

These questions will help you prioritize the opportunities in your sales funnel, and they will help you develop a realistic sales forecast every month.

Action 1: create a list of your most important and most urgent opportunities, and refresh this list daily by checking it against the questions.

Action 2: check again and if the prospect does not fit find more prospects to open.

Good luck.

Boiler

Sales Recruitment - How do we get the best sales people?

2011-08-16T10:58:00.002+10:00

Over the last couple of weeks I have been listening to the Banjar tribe and getting feedback on the apparent lack of good sales people and the terrible job recruitment agencies are doing in finding them.

That got me thinking:

Where are the next generation of sales recruits who will become our sales stars?

How do we find them?

Can you test for them at a early stage?

Do recruitment agencies really know how to find the best sales person?

Clearly, in this post GFC world where the order taker is filling the glass cabinet next to the dodo, we need a different approach to recruitment for sales jobs. In our minds, here at Banjar Group, sales recruitment is one of the top three competencies of a good sales manager. You must get this right.

So what to do? Our top tips:

Make sure you are crystal clear about the type of sales person you want and need. Do a cyborg behavior map* to eliminate any guesswork.

Define the characteristics well so that no one in the company is in doubt. Always be looking for the sales cat. They can surface in the most unlikely places.

Design brilliant questions for interviews that reflect sales outcomes for your business. Some examples may be; "Can you describe a time when you had to create a list of new prospects for a certain product," or "Can you describe your current sales process please."

Audition. Yes you heard me. The theatre, Australia's Got Talent, movie producers, all audition to find the best from a short list of hopefuls. Develop a scenario based on your sales environment and give the candidates a room, pens, laptop etc. and ask them to prepare a basic sales strategy and plan of attack to sell X product. Give them 20 minutes to prepare and then have them present back to you. Then go through Q & A. You will very quickly see their sales skills.

Stop accepting recruitment agency data base lists of bad and worn-out order takers. Look far and wide because true sales cats live and work in all sorts of places. They maybe serving at the club, behind the local bar or on the counter at Myer.

Be sure of what you want and go start looking.

Boiler

* Cyborg behavior map – if you have not done this with us please contact me and I will advise how it works mike@banjargroup.com.au

What sales problem did you solve today?

2011-08-09T22:56:00.004+10:00

I found this in Selling Power and thought, "Yes that really makes sense."

An extract from the wonderful work of Dr Norman Vincent Peale - author of The Power of Positive Thinking.

Problems Are Opportunities in Disguise

Dr. Peale suggested that salespeople can be more successful in dealing with problems: "A problem is a concentrated opportunity. The only people that I ever have known to have no problems are in the cemetery. The more problems you have, the more alive you are. Every problem contains the seeds of its own solution. I often say, when the Lord wants to give you the greatest value in this world, He doesn't wrap it into a sophisticated package and hand it to you on a silver platter. He is too subtle, too adroit, for that. He takes this big value and buries it at the heart of a big, tough problem. How He must watch you with delight when you've got what it takes to break that problem apart and find at its heart what the Bible calls 'the pearl of great price.' Everybody I've ever known who succeeded in a big way in life has done so by breaking problems apart and finding the value that was there."

So what sales problem did you solve today?

Do your sales techniques and questioning style have a problem solving inclination?

Think about the great sales calls you have had. Was there a problem solving inclination? Success does leave clues.

Be positive and solve one problem for one customer tomorrow. They may just love it, and you.

Boiler

What is it that all good sales people have?

2011-08-02T22:11:00.003+10:00

In our sales lab we know that high performance sales comes from training and developing good sales people through four specific stages.

Build a sales process
Conduct activity around that process
Develop 'swagger' from the wins and losses of your activity
Create sales effectiveness and efficiency through refinement.

That's how to be a good salesperson, develop a high performing sales team, start a restaurant or grow a business.

In our minds, we see the 'swagger' as being the key enabler of a good sales person. Although the word swagger can often convey arrogance or an overly assertive manner when it comes to sales people, we keep coming back to it. For the record, swagger means: 'to walk with a swaying motion; hence, to walk and act in a pompous, consequential manner'.

Call it whatever you like, but there's no doubt certain qualities make a good sales person stand out from the crowd. The characteristics of a good sales person, are hard to describe and unquestionably rare.

Good sales people, with exceptional talent, usually have a sense of calm urgency, a coolness matched with persuasion, confidence with empathy and directness with rapport. All behaviours that would seem at odds in the dictionary but perfectly describe what we call 'swagger' or 'sales essence'.

If you have a better word to describe these sales cats, please let us know.

Boiler

What customers?

2011-07-12T09:00:00.001+10:00

I read with interest in the latest BRW Magazine the ever growing pain in retail due to the 'sudden' rise of the internet. Sudden?

I also watch with interest as retailers continue to stick to old ways of doing business, become highly irritable, like it's our fault, and resort to being extremely annoyed with the world.

It is clear that if you 'wait' for the economy to pick up, the implications of a carbon tax or the internet to change, then you will disappear as quick as change happens. You must get on the front foot now!

Look at this great example http://fiveminutetheatre.com/. Traditional theatre is attractive to a narrow band of audience who can afford it or love it. Dress up at home, go out, glass of champagne and black tie etc. In Scotland, to attract a broader audience, an amazing concept has been developed where five minute theatre is conducted in the cities over a 24 hour period to contact a wider audience. Lots of critics " It will never work" and lots of people blocking. Guess what – a roaring success and highly acclaimed by the critics, well done.

What did it take? Creativity, energy and resilience just like the Sales Cat.

Tips, traps and trips.

If you are going to survive in modern retailing you need to engage and build value based relationships now. Who are your tribe and what do they get from the retail experience with you? Do you have data on your customers? Do you know where they live what they like? Get to know them and what they need in life to be better. Like all relationships spend time getting to know them. Start a blog with them.

Smile and greet! Yes I know a basic but how often do you get an angry, don't bother me I'm busy response? Every week for the past 12 months I go with friends to a conveniently located coffee shop. They still don't know our names, we don't know theirs even though we sit in the same place every week and order the the same thing. Will they notice when we go for a better relationship or better coffee? Who would they call if we did?

Please get to know your customers and their specific stories fast before the internet gets to know them better than you and takes their business away.

Talent + Practice + Opportunity = Success

2011-07-05T13:14:00.001+10:00

Last week I went to the grudge match between old rivals Essendon Grammar School, coached by the great Ken Fletcher, and Assumption College, the Kilmore based private school coached by the legend Ray Carroll (41 years coaching juniors).

At the lunch I heard two wonderful stories:

Firstly, the injured Essendon Football Club midfielder Jason Wunderlich described his amazing journey from Thorpedale to the EFC. In his early years he loved footy, just loved it. He would play under 16's, under 18's and seniors all in one day! In one year he played an amazing 57 games of senior footy. So his talent is footy. His practice was many thousands of hours of practice, training and playing this unique game. His opportunity came playing AFL, of which very few juniors make it to the top. His success, yet to come but who knows?

The second example of this equation working was then hearing Aaron Sayers tell his story ( www.essendon.baseball.com.au/?Page=75173). He has been drafted as a 17 year old to the big league in the USA. Here is the equation again. Dad takes him to baseball game and he falls in love, connects to his talent. Practices seven days a week while his mates are getting boozed. Opportunity came through being seen by a talent scout who then signed him up. Success will come having now met this bright young man, wow what a star.

Interestingly when I approached these two young guys and discussed the theory they agreed, however Jason posed a great question. "What about Damien Prevrill?" The 144 game tagger for EFC had no talent he quipped! However, he went on to comment, in the absence of that, the guy did double the amount of practice, much more than any other player according to Jason. Clearly what he lacked in talent he made up in practice but he did have a starting passion.

So what does this all mean for sales people and sales leaders?

If you have the talent or deep passion for the game of sales and you are prepared to work hard at getting better at your skills then opportunity and success should follow. Recognise your skills and your gaps and never stop learning. Only the best get to the top by relentless practice and learning however, what clearly kicks off their journey is the discovery of their raw talent or passion.

Do you know any other Talent + Practice + Opportunity = Success stories?

Let us know.

Pipeline

2011-06-21T15:47:00.003+10:00

What is a pipeline?

Something to pump stuff through? To put under roads? To send oil off shore?

In those settings, who knows, and who cares. But when talking about a sales pipeline there's a lot I can share. I've noticed with some recent engagements over the past couple of weeks, there seems to be a little confusion on what exactly a sales pipeline is. Well here is Boiler's definition:

A Sales Funnel Report presents a 'snapshot' of your sales function at any given point in time. For conceptual purposes, the sales process is often compared to a funnel, where new leads coming into the system (i.e. prospects) are placed into the top of the funnel - the widest part. Then, they are worked through the funnel by informing, persuading, overcoming objections, providing information, demonstrating, providing free samples, etc., etc. until, at the narrow part of the funnel, an order is placed, and a sales is closed, when payment from the customer is received.

The funnel framework works fairly well because for all new leads that are generated by our marketing efforts, there is a closing rate that represents the sales that ultimately result. The number of resulting sales is usually significantly less than the number of total leads generated. Therefore, it is useful to think that as leads work their way further down the funnel, there will be less and less of them coming out the of narrow end as sales.

One important thing to note is that organizations define each phase in the sales process (or part of the funnel) differently based on their authentic sales process. It is also interesting to note that the pre-defined ‘sales steps’ in an off-the-shelf whiz-bang CRM system don't allow for this kind of customization. Working through the funnel each step should have clearly defined criteria so there is specific knowledge about all leads at every particular stage (questions and rules need to be developed for each step). In other words, leads become more and more qualified as they work their way through the funnel, and you should be able to articulate exactly what's required at each specific level of qualification.

Another important thing to keep in mind is that the funnel is a great way to track and forecast sales (hear that leaders, a real forecast, wouldn't that be nice?), as well as, gauge marketing activities. We at Banjar believe there is one step that should be in all funnels and that is the stage of OPEN prospect. When does someone move from being just a prospect to being an open prospect? Open to a sales process with us that is real. When are they open to this really?

By running a Sales Funnel Report, the sales manager can see how many leads are at each step, if there are any 'bottlenecks', or if there are an insufficient number of leads at any stage. It allows the sales manager to check the sales effectiveness of the team. Armed with that knowledge, the sales manager may instruct his or her sales force where to focus more attention to keep sales at the desired level (that’s called coaching). He or she can then also work closely with the marketing manager to ensure they are generating enough leads to hit sales goals, whether the leads are of high enough quality, or what further needs to be done to hit sales goals.

If you do not have an active sales pipeline that reflects your actual sales process ask yourself why? Too accountable for sales? You don't know how to do it? My favourite, "We are still putting in a CRM system".

Would you drive your car with no dashboard? So don't drive your sales the same way, blind!

Are you a LINO

2011-06-10T09:20:00.002+10:00

Two weeks ago I attended and spoke at the Australian Mindshop Conference in Sydney. Our keynote was the Western Bulldogs President David Smorgon of the famous Smorgon family business.

What a story he told of growing up, endurance, life skills, hard work, innovation and eventually selling his family business in its prime.

In the middle of this keynote he commented on the person that created the most anger in him and his businesses over the years, the LINO'S.

It stands for 'Leaders In Name Only'. LINO.

He went on to describe their characteristics:

They are there by default
Resist change
Lack awareness
Love developing process
Manage by fear
De-motivate teams
Rarely take responsibility for anything
Always take on more duties than needed
Rarely innovate
Love titles (like Sales Director)
Avoid conflicts

Are you a LINO leader or do you have one in your business? If so can they change? Are they holding a strategic position like Sales Manager, and their sales team just not making target? Ever wondered why? Look closely for these people as they are good at hiding.

David went on to comment that these people had a knack of avoiding scrutiny but when fully understood and revealed, had caused incredible issues for the business. Leaders by title have a duty of care to manage, lead, inspire, create, innovate and guide, but most of all, they must create an environment where all in it have the opportunity to grow and thrive. That builds great brands, organisations and communities.

Do a check on your LINO suspects and take action before its too late.

Boiler

A Sales Manager's Game Plan

2011-06-01T14:38:00.002+10:00

When I observe the sales landscape it amazes me how difficult it is to uncover sales managers that really know what they are doing!

Overwhelmingly the successful managers all have one thing in common: a GAME PLAN!

As Essendon devotees celebrate the coming of James Hird and his new coaching panel, I got thinking they would have a game plan. A well thought out, considered, actionable game plan!

So, what should a sales managers GAME PLAN look like for sales teams?

1. Based on a Philosophy – What’s your philosophy as a sales leader, a coach and mentor of the team? As the sales leader it's no longer about you, it's about the achievements of the sales team. You create effectiveness and success by coaching and leading them with a common goal and vision.

2. Simple Games We Play - The great Alan Jeans, AFL legend from Hawthorn, had the simplest game plan. There were three states of play:

We have the ball,
They have the ball,
The ball is in dispute.

With this in mind, what are your key pillars, actions or foundations for sales success? Maybe it is just ‘retain and grow’ or simply ‘seek and gain’.

3. Activities and KPI,s to deliver the results - What does this team have to do to deliver this plan? Statistically, what amount of kicks, handballs and tackles does the team need to achieve targets and sales success.

These rare individuals have a firm grasp on what it is to be a sales manager – they have a clear understanding of…

What sales management is?
What their role is?
What sales effectiveness look like?

It is obvious the success of a sales manager is reliant on the success of the sales team. Overall, the key here for Sales Managers is: have a clear GAME PLAN and KEEP IT SIMPLE.

Are all sales people dead or just the order taker reps?

2011-05-10T15:14:00.001+10:00

There is great discussion going on around the globe about the death of the sales person.

As Obi Wan Kenobi once said "It is as if suddenly millions of people cried out in terror, before being silenced.”

Of course it is all nonsense. The lazy ‘order taker’ has never been in sales so they were always dead!

In my mind the role of great sales professionals, aka the Sales Cats, has never been so important or valuable. In this digital world, the ability to sell has never been so crucial. Strong face-to-face customer interactions are the key to long term selling relationships.In order to survive Sales Cats must sell, communicate and build value in everything they do.

If you are not doing this you most certainly will end up in the alley with all the other old cats (or order takers!).

Are you creating value for your customers? Go on, be honest and check?

Where have all the ideas gone?

2011-05-10T11:20:00.002+10:00

I spent some time last week at the NSAA National Speakers Conference (doing my learning and development) and amongst the great speakers was the global CEO of Saatchi and Saatchi, Kevin Roberts. Amongst many professional accolades working within organizations such as Gillette, Procter & Gamble and Pepsi Cola, he is also an author, father, honorary professor and board member of trusts, public and sporting groups. An all round exemplary human being.

In his book, and during his wonderful speech, he made comment many times that we live in such unpredictable, volatile, complex and uncertain times. For that reason, being priceless to our customers is the key to success in the future.

The currency of the future will be the "unreasonable power of CREATIVITY."

A Tip. Start every meeting with an ideas session. Who knows? The next sticky note could be there waiting.

Stand in a Mac store and watch innovation, branding and experiential selling at its best. They have created an emotional connection – a thirst – for their amazing gear. How thirsty are customers for your goods?

We must create inspiration for our people through tenacious innovation, creative ideas and encouraging leadership.

Martin Luther King did not stand in Washington and say " I have a......mission statement". He said "I have a dream". Without Facebook or the internet, over 200,000 people heard him that day. And his voice still resonates throughout the world. Now that's inspiring!

How will you inspire your people, your customers and your kids?