The foundational elements of effective Selling

In order for an organisation to perform well and generate strong Sales, it needs a well-documented and understood Sales Process.

The unique nature of most businesses means that the Sales Process should be customised to their organisation.

Some 'constants' however remain in all Sales Processes including

·      identifying prospective clients,

·      understanding customer needs,

·      recognising opportunities,

·      demonstrating capability,

·      submitting customised proposals and

·      negotiating deals.

Documenting and supporting all stages of the Sales Process is critical to efficient and effective Sales. 

I have just been reading an article in the Harvard Business Review (July-August 2012) and was intrigued with the headline: ‘The End of Solution Selling’.

The article announces that “the old playbook no longer works” and that “star salespeople now seek to upend the customer’s current approach to doing business”.  Bold statement and interesting observation I thought.

For many years we have championed the cause of sales professionals solving the problems of their customers to win business, and ensure repeat business - solution selling. 

But in recent times it has become apparent that being the font of all knowledge to our clients and solving all their problems is not enough. For a start, customers make an approach or enquiry armed with more knowledge of our product or service than ever before. They have researched and compared all before walking through our door.

As the article outlines, “customers completed, on average, nearly 60% of a typical purchasing decision – researching solutions, ranking options, setting requirements, benchmarking pricing, and so on – before even having a conversation with a supplier”. With this in mind, the celebrated ”solution sales rep” can be more of an annoyance than an asset!

“Insight selling” is now the mantra of the best salespeople. It is a new strategy that demands a radically different approach across several areas of the purchasing process.

Sales professionals need to be adaptive. Solution selling skills need to be complemented with strategies to challenge, insights to engage clients and the touch to coach how they should buy. Successful reps “may still be selling insights. And in this new world, that makes the difference between a pitch that goes nowhere and one that secures the customer’s business.”

The full articles is linked on our website, so take the time to have a read and see how Insight Selling might better suit the ‘new age’ customer in your market?

Boiler

A sales funnel is for sales. CRM is for managing the data about customer relations.

A commonly cited definition of CRM is that of CRM (UK) Ltd (2002), as follows:
Customer Relationship Management is the establishment, development, maintenance and optimisation of long-term mutually valuable relationships between consumers and organisations.

Let's unpack this definition.

The key to the definition is long-term mutually valuable relationship. This is based upon a definition of marketing that considers marketing as a mutually satisfying system of exchanges (for example Baker 2002).

So CRM is the building and maintenance of long-term customer relationships. The relationship delivers value to customer, and profits to companies. The relationship is supported (but not driven) by cutting edge IT. 

The business strategy is based upon the recruitment, retention and extension of products, services, solutions or experiences to customers. This is the core of CRM.

CRM is not an indicator of sales effectiveness or sales process unless the system you use directly and accurately reflects the organisations ACTUAL sales process. CRM is not sales pipeline! 

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

Once that is done investigate and implement an accurate CRM strategy with a company who has a track record in developing and implementing CRM as their core business.

Boiler

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 

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

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

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.