Sales Practices: Question and Answer #6

Posted by Commence on December 29, 2011 under Sales Training | Be the First to Comment

This is a Sales Question and Answer article about sales best practices from guest poster Dave Kahle, author and leading sales educator. Follow Dave’s latest Tweets at @davekahle.

By Dave Kahle

Q. What do I do when my goals don’t match the company’s goals for me?

A.  I can look at this is in two ways – expressing two different situations.  In the first, there is a legitimate difference in the expectations for a sales person, but a basic agreement on the issues on which to be focused, as well as the values of the organization.  In the second, there is a deeper and more significant difference of opinion.

A little reality check

Let’s consider each separately.  In the first scenario, the sales person and the company differ on the degree of what is possible.  The sales person expects a 10% increase, while the company thinks 15% is reasonable.  Both agree that sales growth is reasonable, but the amount of growth is the issue.  What do you, the sales person, do in this case?

Persuade and negotiate.  Try to convince your boss that your perspective is more accurate than his/hers.  Don’t just assert that, be convincing.  Back up your beliefs with substance.  Describe specific situations and accounts, and explain why you think about them the way you do.  Prove your point.

At some point in this process, there is going to be a resolution.  There will be a quota or a goal.  Whether it is your idea of what it should be, or your manager’s version, or some compromise, it doesn’t matter.  At that point, when the issue is resolved and the number is set, your job is to give all of your best efforts to doing what your company wants you to do.

You are, after all, an employee of the company.  Your job is to do what your company wants you to do.  That’s what they pay you for.

Sometimes sales people can get a little too convinced of their own importance.  I succumbed to that temptation more than once when I was selling full time.  We think that we really are in business for ourselves, that we own our customers, and that we know what is best for the company and the customer.  So, therefore, we become agitated and upset when the company asks for a 15% increase and we think 5% is reasonable.  We are tempted to go off mumbling under our breath about the screwy management, and we decide we are going to do what we want to do instead.

A little reality check is in order under these circumstances.  If you worked in the warehouse, would you be able to decide what you wanted to do today?  If you were a customer service rep, would you get to determine how best to spend your day, and which parts of your job you’d really do?  If you were in the purchasing department, if you didn’t like the company’s direction, would you have the freedom to ignore it?

So what makes you think you are so special?  Answer — nothing.  Let’s put the freedom that we enjoy and the money that we make in perspective.  We are, when all is said and done, employees of the company.  And, I believe, we have a moral obligation to give our best efforts to that company for as long as we accept a paycheck.

Sometimes the price is high

Which brings us to the second situation.  You have some major difference of opinion in not only the degree of what is expected, but a deep-seated difference of opinion in the basic issues themselves.  I’m not talking about issues like you think you need to focus on your current customers and your company wants you to sell new customers.  Those are relatively superficial issues that fit into the previous discussion.

Instead, I’m talking about differences in fundamental values and ethics.  Here’s an example from my own experience.  I once worked for a company that introduced a new product, and developed a quota for each of us to sell that product.  The problem was, the product never worked.  It didn’t do what the company said it was going to do.  We, the sales people, knew it, and the company knew it.  Yet, they still wanted us to sell it.  We were given quotas and strongly directed to go out and get orders at all costs.  They directed us to, in effect, lie to our customers.

I left the company shortly thereafter.

The issue wasn’t “Do I sell 100 or 130 of these?”  That’s an issue of degree.  Instead, the issue was, “Do I lie to my customers?”  That’s an ethical issue.

If it’s an ethical issue, then I think you have only one choice.  Find another job.  Life is too short to spend it violating your ethics and compromising your integrity.

That sounds simple, and it rarely is that black and white.  It almost never happens that your manager sends you an email that says, “From this day forward you will lie to your customers.”  Instead, it is more likely that a pattern emerges over a period of time.  One incident is generally not representative of a character flaw.  But, when you see a pattern of cutting ethical corners, of disdain for integrity, of fuzzy moral boundaries, then you can conclude that those are expressions of a corporate character flaw.

In my situation, the “lie to your customers” direction was not the first indication of a lack of moral compatibility between me and the company.  It was, however, the final one for me – the most recent and blatant of a string of incidents that made me feel uncomfortable with myself for being a part of it.

Also, sometimes the price is high.  The position I left was the most fun, most challenging, best paying job I ever had.  It was 15 years before I made the kind of money again that I made in that job.  Believe me, leaving that job for ethical reasons was a difficult decision.

Money is just money.  It comes and it goes.  People, and sales people particularly, who will do anything for money, who evidence no compulsion and no moral boundaries, are sad characters.  They have succumbed to the most superficial of temptations and displayed themselves to all those around them as people with little integrity.  They are unfortunate examples to their families, friends, and all who know them.

You only have to read the newspapers over the last year or so to see multiple examples of the damage that greed, un-tempered by morality, can do.  The real damage, though, is not the highly visible corporate crooks that we read about every day.  The real tragedy is all the less visible managers and sales people who we don’t read about – those business people who share the same “money at all costs” attitude – whose legacy is not as public, but none-the-less still damaging.

I would hope that you would not be one of those.  That you would have the strength of character to disassociate yourself from a situation that comprised your integrity.

So, when it becomes an issue of morality, I think it’s time to leave.

Good luck.  Sell well.

P.S. I expect that my comments may generate some responses.  Feel free to email a comment to me.

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You may want to dig deeper into the issues uncovered in this article.  I’d recommend the book, “Take Your Performance Up-a-Notch.”

If you are a member of The Sales Resource Center ™  consider reviewing these lessons:  Pod-21: “Goal-Setting,” or  Pod-34: “Ethics for the Professional Sales Person.”

Image “tired and dirty” owned by Rennett Stowe (cc)
Image “Sour Lemon” owned by Alan Maddox (cc)

About the Author:

Dave Kahle is one of the world’s leadng sales educators. He’s written nine books, presented in 47 states and seven countries, and has helped enrich tens of thousands of sales people and transform hundreds of sales organizations.  Sign up for his free weekly Ezine, and visit his blog.  For a limited time, receive $547 of free bonuses with the purchase of his latest book, How to Sell Anything to Anyone Anytime.

Copyright MMXI by Dave Kahle

All Rights Reserved.

CRM Product Review – Commence Making Impact in CRM Software Market

Posted by Commence on December 23, 2011 under CEO Corner | Be the First to Comment

The CRM software industry has been dominated by the marketing presence of companies like Microsoft and Salesforce.com, but a new lesser known player has emerged and is in fact challenging these industry giants in the mid-market and small enterprise sector with a comprehensive cloud based CRM solution that offers some unique CRM functionality is easy to use and affordable.

Commence CRM is a robust offering for managing accounts and contacts, leads, sales, marketing, customer service and projects.  It even offers a built in e-mail client that seamlessly integrates Microsoft Outlook, Gmail and other e-mail clients so that you can actually read and compose your e-mail right within the CRM system itself.  In addition to the e-mail feature Commence also incorporates several unique features that are simply not available in competitive offerings costing twice as much.

One of these features is an account rating and scoring system that enables you to rate and color code your customers based on their value to your business.  This provides a quick and efficient way of identifying your most valuable customers, ensuring that you pay special attention to them.  This same capability known as an Automated Business Process can be found in the product’s lead module. This feature allows sales management to create a series of questions or identifiers to ensure that every sales representative is qualifying new sales opportunities the same way.  The feature enables the sales team to become laser focused on the most qualified opportunities and has proven to reduce sales cycles and improve close ratios.

Other CRM features that differentiate Commence CRM from competitive offerings include an automated organization chart built into the contact management and sales applications, an integrated project management system and the ability to create hierarchical or parent child relationships for accounts with multiple divisions or subsidiary organizations.   In addition, the product’s user interface is highly regarded for its easy navigation and use.   Because Commence is a cloud based CRM solution it can be accessed via a PC, Mac or any mobile device with Internet access.

Commence is a top rated CRM solution that offers unique functionality, ease of use and a low cost of ownership.  If you are a mid-market company or small enterprise Commence CRM should be on your radar screen.    For more information visit the company’s web site at www.commence.com.

A Good CRM System Can Help Determine Who’s Buying and Who’s Not

Posted by Commence on December 15, 2011 under CEO Corner | 2 Comments to Read

Don't waste valuable time chasing tire kickers

Management of the Sales Cycle

CRM software is often looked upon as an extension of contact management and sales automation software. While this is certainly true, several CRM solution providers have taken CRM to a whole new level, using it to implement a structured approach to lead management and management of the sales cycle.  One of these companies, Commence Corporation has developed a unique Automated Business Process that  automates the lead qualification process and helps sales organizations better determine who’s buying and who’s not.

Automated Business Process

The structured process offers the ability to create a series of buying criteria built right into the CRM software such as;

• Prospect displays a high level of interest
• Needs have been established and documented
• Budget has been approved
• Buying or evaluation criteria have been established
• There is a specific time frame for a decision
• The internal selection process has been shared with you

Sales representatives answer the questions and the system rates and color codes each new opportunity based on the results, with red being a hot opportunity, yellow a warm one and blue cold.   The questions are completely customizable and you can even establish percentages if you feel one question is more important than another.

CRM Lead Management

This structured lead qualification process built into the Commence CRM software has proven to reduce sales cycles and improve close ratios.  This is because with Commence CRM, sales representatives become laser focused on the most qualified opportunities versus spending valuable time chasing tire kickers.

For more information about the automated lead qualification process click here.

[Image "Efficient VERSUS Effective" by Laura Dantonio on Flickr under Creative Commons license]

Sales Best Practice #33 – Focuses on spending the greatest amount of time with the highest potential customers

Posted by Commence on December 12, 2011 under Sales Training | Be the First to Comment

This article focuses on Best Practices for sales people from guest poster Dave Kahle, author and leading sales educator. Follow Dave’s latest Tweets at @davekahle.

By Dave Kahle

It is so easy to do that which is comfortable and easy as opposed to that which is smart.  It’s a common temptation to which every sales person succumbs at least some of the time.

This applies most dramatically to the fundamental decisions that every sales person makes over and over again every day:

• Where should I go?
• Who should I see?
• What should I do?

Those sales people who consistently make those decisions most effectively rise to the top of the sales profession, and those who don’t, don’t.

Here’s an example.  It’s Monday morning, and you must make those decisions.  You could attempt to see a high potential prospect, or you can go see a small customer.  You know the customer will probably see you – he likes you.  And you’ll spend an hour or so in friendly conversation.  You also know that the likelihood of increasing the business with this customer is next to nothing. But, since it’s comfortable and easy, you choose to see the customer.  You rationalize it by claiming to be “building relationships.”

Or, you are all set to visit that high potential, but challenging prospect, when you receive a call from a “C” account who has a question.  You are not too distant from them, so you change plans and drive to see the “C” account.  Why?  Because you know that he’ll see you, and you’ll be able to answer a question, and that makes you feel important, and gives you a sense that you are actually accomplishing something.

In both cases, you chose to do that which was comfortable and easy, as opposed to that which was smart.  You succumbed to the temptation.

This is such a common thing among B2B sales people that those who “focus on spending the greatest amount of time with the highest potential” stand out on the basis of this one best practice alone.

That doesn’t mean that you totally neglect smaller customers.  But it does mean that you define, with some rigor, the highest potential customers in your territory and you then, with discipline and willfulness, spend more time with them.  My recommendation?  Fifty percent of your time with the top twenty percent of your territory, and fifty percent of your time with other eighty percent.  Note that the definition of the top twenty percent is based on potential, not necessarily the amount of the current business.  So, in other words, an “A” account is a high potential account, even though they may spend nothing with you now.

This is such a crucial practice that it is a part of almost every seminar and training session that I do.  Those who consistently implement it routinely report dramatic increases in sales.  Most commonly, they report tripling their business in two years.

While that sounds almost too good to be true, it isn’t.  It is predictable and almost routine for those who consistently practice it.  That’s why it’s a best practice.

If you’d like to pursue this practice, we have some resources to help you.  Consider Chapter Six of my book, Ten Secrets of Time Management for Sales People, or the video training program,  “Prioritizing your customers to dramatically increase your sales.”

If you are a member of The Sales Resource Center™, consider Pod-55: The most powerful time management strategy for sales people.

About the Author:

Dave Kahle is one of the world’s leading sales educators. He’s written nine books, presented in 47 states and seven countries, and has helped enrich tens of thousands of sales people and transform hundreds of sales organizations.  Sign up for his free weekly Ezine, and visit his blog.  For a limited time, receive $547 of free bonuses with the purchase of his latest book, How to Sell Anything to Anyone Anytime.

CRM Cloud Computing a Smart Choice for Small to Mid-Size Businesses

Posted by Commence on December 8, 2011 under CEO Corner | 2 Comments to Read

Hiring an on-site computer technician can be costly

The current economic uncertainty has forced many small to mid-size businesses to seek ways to reduce their operational cost. Many have downsized their operations and have had to reduce their staff.  One of the areas hardest hit is the IT department. Companies that once had technology people on staff no longer do and the local computer guy that could help out in a pinch is no longer in business.  These companies now find themselves working with dated computer hardware and software and nowhere to turn if problems occur.

Cloud computing seems to be just what the doctor ordered if you can come to grips with the fact that someone else will be managing and maintaining your data outside your facility.  CRM software programs that run in the cloud are web based, which means they operate over the Internet.  There are no specific hardware requirements and no software to install.  This alleviates the need to hire costly technicians or outside consultants.  The cloud has many other benefits as well. Typically, software updates are included in the monthly or annual service fee which ensures that you are always working with the latest supportable version of the vendor’s software.  The data center and hardware used by top tier hosting providers is also best in class and traditionally offers back-up and data recovery services that are far superior to anything the customer may have had on-site.  In addition, the systems are managed 24/7 by well-trained engineers.

One of the companies that is helping companies transition to the world of cloud computing and cloud based software is Commence Corporation, a provider of Customer Relationship Management (CRM) software .  Commence, best known for their client server based desktop software, now offers CRM for the cloud and is helping both existing and new customers take advantage of the new cloud computing environment. To learn more about Commence CRM for the cloud, visit http://www.commence.com/crm/platform/

Image by Manchester Library, on Flickr available under a Creative Commons license

The Incredible Power of an Elevator Speech

Posted by Commence on December 7, 2011 under Sales Training | Be the First to Comment

We’ve teamed up with the best sales people to bring you these insights into customer relationship management each month. Below is the latest Sales Management article from guest poster Dave Kahle, author and leading sales educator. Follow Dave’s latest Tweets at @davekahle.

By Dave Kahle

“Why should someone spend time with you?”  That was the question I asked the six sales people who were the subjects of an intense week-long training session.

The response?  Blank stares. Some uncomfortable fidgeting.  Nothing anywhere close to a coherent, persuasive response.

That experience made me realize the need for what I call a “value-added proposition,” and what many people refer to as an “elevator speech.”  It is a well-thought-out, meticulously prepared, and memorized set of ideas that ultimately answer the question above.  It should exist in several different versions:

1.  There should be a one-page (250 words or so) description of

*  who you are

*  what you do

*  why your customers and prospects should care.

2.  That should be reduced to a 30 word version that should be memorized by everyone who has contact with the customer.

3.  Finally, that should be further reduced to a four-to-eight word version that can accompany every communication, from web site advertising to face-to-face interactions.

Why this is important

“Five minutes or it’s free.”  That was the banner hanging over the fast food restaurant near my house.  I noticed it as I drove past one day.  Interesting.  In a mini-environment of intense competition (there must be a dozen fast-food options within a mile of this road) they chose to focus on one aspect of their offering – speed – and turn it into a “value-added proposition.”  In a world of other options for the customer, they chose to take their strength, turn it into a benefit for the customer, and boil that down to say to the customer, “Buy it from us.  We’ll guarantee quick service. “

It had its desired impact.  I noticed the banner, and decided to stop in for breakfast.  The waitress took my order, noted the time on the order pad, and handed me a stop watch!  I took up the challenge, clicked it on, and waited to see if they would perform.  The order arrived within five minutes.  I noticed the waitress look at her watch and note the delivery time on the order pad.

Let’s consider what we can learn from this experience.  First, the value-added proposition consolidates some of the strengths of the organization, and turns them into benefits for the customer base.  Then, it translates those benefits into a “proposition” which challenges the customer to become involved.  It reaches out into the world and says “Consider me.  Here’s why.”  It serves, then, as a proactive way to interest and attract potential customers.

Just as importantly, it helps refine who you are as an organization.  You will become who you tell people that you are.  For example, I suspect that the restaurant did not have a quantity of stop watches in their inventory prior to deciding to toss “Five minutes or it’s free” into the world.  I suspect that the order forms were modified to accommodate the claim, that the wait staff was trained in the processes to implement it, that some items came off the menu and others were added, and that there were some cooks who don’t work there any more because of their inability to be who the restaurant said they were.

Once you say that you provide “outstanding customer service,” or “the highest quality products” for example, you have to back that up.  You must become who you say you are, and actually do what you claim you do.

The value-added proposition, then, brings with it tremendous power to focus your image to your customer base and, at the same time, organize your internal operations to deliver what you say you will.

From the point of view of the sales force, the value-added proposition gives them a focal point — a place to hang their claim for uniqueness. But it also gives them a wedge into the doors of the prospect, and an appropriate topic of conversation with every contact.

That’s why the 30-word version should be memorized and practiced until it can be delivered accurately, fluently and persuasively.

How to do it

The creation of a value-added proposition can be much more significant than it may look at first glance.  Once you understand the power of this set of words to attract customers, equip sales people, and shape operations, you will realize that this can be a “bet the business on this” strategic initiative.

Get it wrong, and your organization’s very survival may be in jeopardy.  Get it right, and it can provide fuel for your growth for the foreseeable future.

So, it ought to be treated as a major strategic initiative in your organization, and given the allotment of resources that accompany such efforts.

Gather your best people for a brainstorming session.  Capture the output, and bring it to a more analytical group to refine.  Put it in the hands of your best communicators to create the three versions mentioned above.

Then, test it before you commit to it.  Put it in the hands of some sales people and gather their comments. Float it by some of your customers whose honest opinion you expect. Run it through the search engine optimization folks.

Refine it until you are ready to live with it.

Then, publish the short version in every conceivable place.  On business cards, letterhead, voice mail messages, web sites, email signatures, etc.

Bring the sales people in, require they memorize the 30-word version, and train them in persuasively presenting it.  Lots of role-play and practice here.   Do the same with anyone who has regular customer contact.

Finally, publish the one-page version.  Make it into a hard copy leave-behind for the sales force.  Publish it on your web site.  Hand it to every vendor.

Distribute it to everyone who has an interest.

Then, watch as it begins to flow into every aspect of your business, stimulating and shaping your growth.

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If you are interested in digging deeper into this subject, you may want to purchase, “How to Sell Anything to Anyone Anytime.”

If you are a subscriber to The Sales Resource Center ™ , consider Cluster CL-72: How to market your small business on-line, Cluster CL-46; Four part elevator speech, and Pod-47: How to make a more effective first call.

About the Author:

Dave Kahle is one of the world’s leading sales educators. He’s written nine books, presented in 47 states and seven countries, and has helped enrich tens of thousands of sales people and transform hundreds of sales organizations.  Sign up for his free weekly Ezine, and visit his blog.  For a limited time, receive $547 of free bonuses with the purchase of his latest book, How to Sell Anything to Anyone Anytime.

Copyright MMXI by Dave Kahle

All Rights Reserved.

CRM Hosting is Not All The Same

Posted by Commence on December 6, 2011 under CEO Corner | Be the First to Comment

If you are looking to implement CRM software it is important to take note of the following: all CRM software hosting services are not the same.  Companies that are engaged in the selection of a CRM solution tend to spend the majority of their time evaluating a product’s features and functions.  While this is perfectly fine, it is important to appreciate that the majority of today’s CRM software offerings are hosted, which means a third party is storing and managing your data.  If you are like most growing businesses your data is critical to your business and the proper protection of it is paramount to your survival.  If you believe this to be true, then you need to also pay close attention to who is hosting your data and what procedures they have in place to back it up or make it available to you if necessary.

The term hosting can be confusing to the consumer.  Some companies refer to their CRM offering as hosted CRM, on-line CRM, web based CRM or cloud based CRM and there is a significant difference between simply hosting data and storing it in the cloud.  Regardless of the difference, what is most important here is to understand that the proper storage, management and protection of your data doesn’t come cheap.  Tier 1 companies tend to offer high quality services in this area and as a result cost more than the lower priced ones that do not.  So if you think one CRM vendor is a bargain over the others, you may want to ask about their hosting service. You may find this to be a significant reason for the difference in cost.