What is your 1% Sales Activity to Drive Future Business Success?
Do you know where to focus your sales activities to get to the next level?
Most companies were successful in the beginning because of one or two main clients that represented 80% of their sales. Their second stage growth then came from employers from those first two clients that moved to other companies and pulled that company with as a supplier. But what happens when that organic growth stops and your company has to go find new customers to achieve that third stage of success? Would you be able to develop a plan, create new habits, and commit to the right sales activities that drive your sales funnel growth and sales funnel movement?
For every sales effort, there is an identifiable key sales activity that drives the growth and movement of the sales funnel. It is that one activity that if you repeat it over and over, success will follow. Example of 1% sales activities would include:
- Presenting to ideal prospects and key strategic partners about value you can add to their business
- Having lunch with key centers of influence to understand how they integrate with clients
- Speaking at a business networking event full of people representing businesses that are in your wheelhouse
- Meeting with a new ideal prospect to learn about their business and understand where you might be able to help them add value to their clients
- Making introductions for others to help grow their business
- Writing blogs to share your experience with the world
I refer to these activities as the “1%” since when they are completed, the other 99% of activity follows automatically. My personal 1% is having 3 meetings per week; One meeting with a business owner to learn about their business, one meeting with a center of influence or a service partner in the market to learn about what their challenges are, and one meeting where I am introducing two people that I know should be working together. If I have those three meetings per week, I know that my sales funnel will stay full through referrals, and that I will be scheduling meetings with potential clients to learn where I can help their business.
When was the last time you reverse engineered where your sales success comes from? Do you know what your 1% activity is? Do you know who you need to perform that 1% activity with? What do you need to clear from your schedule to make sure that 1% happens every week? Please feel free to contact me if you need help identifying what your 1% is and creating the right habits to make sure it happens.
The 5 Types of Sales Reps – Which One is Right for Your Business?
Innovation is difficult and innovations alone will not drive sales so who is on your team that can help you grow your business? Do you have the right types of sales representatives for your efforts? Can your sales efforts increase market share utilizing current resources?
What made your organization successful in the past may not be enough to maintain the current sales levels or even survive in the future. Many companies are doing the same thing the same way with the same people and with the same customers. Companies must evaluate their sales efforts and sales teams if they want to grow in this “new economy”.
In the book “The Challenger Sale” by Mathew Dixon and Brent Adamson published in 2011, the authors studied the skills, behaviors, knowledge, and attitudes that matter for high performance and developed five profiles of sales representatives including the identity of the most successful one. It is a brilliant book that you should read if you are serious about taking your sales effort to the next level and stay ahead of the competition.
So what are the five different profiles and what is the most successful one?
The Hard Worker: This sales representative is always willing to go the extra mile, does not give up easily, is self-motivated, and interested in feedback and development. 21% of sales representatives fall into this category.
The Relationship Builder: This sales representative builds strong advocates in customer organizations, is generous in giving time to help others, and gets along with everyone. 21% of sales representatives fall into this category.
The Lone Wolf: This sales representative follows their own instincts, is self-assured, and difficult to control. 18% of sales representatives fall into this category.
The Reactive Problem Solver: This sales representative reliably responds to internal and external stakeholders, ensures that all problems will be solved, and is very detail oriented. 14% of sales representatives fall in to this category.
The Challenger: This sales representative always has a different view of the world, understands the customer’s business, loves to debate, and pushes the customers. 27% of sales representatives fall into this category.
There is no doubt that the “Challenger” is the most successful of sales representatives studied. The good news is that the characteristics and style of the “Challenger” representative can be taught and replicated in any organization.
Challengers do not lead with information, they lead with insights about how they can save money, increase revenues, or increase efficiency in their prospect’s or client’s business. The Challenger teaches their prospects and clients things that they do not know and can use to improve their business.
Please feel free to contact us if you need help building challenger representatives in your organization for your selling efforts.
6 Questions to Help Move the Chains
In how many sales meetings this week is the owner looking at the sales funnel and scratching their head about the lack of movement of opportunities from one stage to the next? There seem to be plenty of opportunities and potential clients out there so what is the problem?
I guarantee it is a lack of proper qualification of the opportunity to begin with. The sales funnel needs to be cleaned up and by asking some basic sales leadership questions, you can help coach your team to identify the true opportunities to potentially “move the chains” and take them to the next level.
- Who is the potential client?
- What do they actually need and want?
- How do they make decisions?
- Who are the stakeholders?
- What other options does the potential client have?
- What is a clear next step that we need to do now to move this forward?
Many sales people can’t say “no” to potential opportunities and clients even though they are not ideal prospects. This causes their sales funnel becomes full of opportunities that get stuck at the proposal phase because they have no clue what to actually offer to them.
If you are looking at the sales funnel and can’t understand why the actually sales are not happening, try drilling down deeper into each opportunity with these questions to coach your team to move their chains.
If you need help integrating some of the best practices to help coach your sales team, please contact us to schedule a SWOT analysis of your sales structure, sales process, and sales skills
How to Get a Faster ROI from Your New Sales Person
You just started a new sales person after your last sales person walked out the door only after 6 months. You ordered new business cards, set up an email address, put together some sales figures, printed a customer list, and gave them a stack of brochures. They should be set to go, right? This is the most common scenario for any company that has a high turnover in their sales teams. In fact, it was the way I was on-boarded as several companies earlier in my career.
Most companies do not have the proper systems and processes in place for on-boarding new sales people and without them, the sales person is set up for failure from the beginning. What does it take to set the new sales person up for success? I call it the 4-P’s and it is everything that should be given to a new sales person to hit the streets faster and produce an ROI for your company.
Position: How thorough is the job description? Have all of the expectations been communicated? Are their support people in place? Have goals been set? Does the sales person understand what their role is in the achievement of those goals? Without a clear understanding of the sales position, the opportunity for misunderstanding of role and expectations can lead to frustration and lack of results.
Products: Has the new sales person been trained on your product or service and fully understand the value it can deliver to your customers? Do they know the pricing? Do they know your entire portfolio? Do you have technical expertise that can support the sales person? Are your marketing materials current? The failure to properly train and even cross train your new sales person will destroy your credibility with customers.
People: Who are the people that you want to deliver your product and service to? Do you know what an ideal customer looks like? Do your marketing materials speak to your target market? Do you know your competition? Do you know your differentiators? Do you know how your customers buy? The failure to understand your market will not develop a clear marketing and selling plan to follow.
Processes: What metrics do you have in place to measure success? Is your CRM in place and the use of it mandated? Can you document your customer buying process and what roles are responsible for the various stages and touch points? Do you have support people for order entry, shipping, billing, and servicing so your sales person can stay in front of customers and new opportunities? The failure to have proper support in place for customers will make your sales person get involved with non-selling activities and you will only get 20% of the selling effort you need.
To get a faster ROI out of your sales person, you need to take away any potential for misunderstanding, not knowing expectations, ruining you credibility, and not being able to measure success. For help developing your 4-P’s, please contact us at SalesTechnik
Do you measure activities or do you measure what can make a difference?
How many times have you wanted your sales teams to just make more calls thinking that is the best way to increasing sales? Organizations that fail to deliver real-time intelligence to their sales team fail to maximize their efforts and hence get hung up on “making more calls” as the solution.
While most sales managers and owners love reports that measure their sales team’s activities in order to forecast sales, they may be missing opportunities by not focusing on reports that provide necessary information that would allow them to create a better strategy to begin with. Their current strategies and tactics are based upon dated information that could be months old and hence are often useless to make a difference quickly.
So if what gets measured gets managed, what information should you be measuring and delivering real-time to your sales team to be more agile in the field to increase sales?
- Sales of customers by demographic segments
- Profitability of customers by demographic segments
- Sources of new leads by demographic segments
- Dollars in each stage of the funnel
- Conversion rates for each stage of the funnel
- Average value of each opportunity in each stage of the funnel
- Achievement % to budgeted sales and profitability
- Market share % and industry trends
- Distribution by product line and products by demographic segments
- Customer attrition rates
- Customer satisfaction rates
- Production forecasts
- Delivery and project completion progress
Now more than ever, sales managers need to provide their teams with more timely insight and detailed sales analytics that can deliver a competitive advantage to their sales team, allow better forecasting by the sales manager, and increase sales for the company much faster than they would be able to if they were only tracking activities.
Don’t “B” The “ANT” When You Find an Opportunity!
There are many CRM systems that measure the “Probability to Close” metric of a sale for our organizations. There are also many discussions on social media about how we can effectively measure the likelihood that a particular piece of business that we are chasing will become reality for the organization. This potentially creates a problem for our organizations when that particular piece of business might not actually become a reality at all. How can our organization effectively plan resources based on a “Whim” that is entered without a factual basis by us?
As sales people, our organization trusts that we are bringing qualified opportunities that will close within a given amount of time so they can plan on delivering the goods and services that we are selling to make the customer happy and deliver a profit for everyone involved.
What criteria do we use to measure probability for our organizations? I would offer the following criteria to ensure the proper amount of resources are dedicated to the proper opportunities that we deliver. We need to answer the following criteria that define the actual sale and assign a value to it to ensure success for all of the stakeholders. The criteria is known as “BANT”
Budget = 20%: Do the prospects have the budget to purchase what we are offering to them as a value?
Authority = 20%: Are we speaking with the decision maker(s) that can purchase the product or service that can add value to them?
Need = 20%: Do they need what we are offering as a product or service and can it add value to them?
Timing = 20%: Can they purchase the product or service that we offer within a given timeframe that will produce value for both stakeholders?
The remaining 20% is all “Us”. Are we and our company a credible source of the product or service that will bring them the identified value in the time frame that they expect instead of the competition that they have also met with? I guarantee you that we are not the only choice they have!
Most of us do not ask the right questions to discover the “Budget” before we present a solution and then are surprised by a response from the prospect that they can not afford our product or service. How do those sales meetings and reviews work out for us after the time and resources you have spent chasing the business?
By using the above criteria to measure our opportunities, we can ensure that the organization will align behind us to deliver the necessary resources for the qualified opportunities that we are delivering. Don’t miss the “B”!
4 Critical Questions to Answer for a Fast Marketing ROI
Your marketing funds are decreasing, your usual marketing efforts are producing fewer sales, your marketing message has not changed in years, and your client base is shrinking. You need a marketing makeover that will produce results quickly.
A quick exercise with your executive team can produce fast results by answering four questions about your business.
- Who are your ideal clients?
- What do they want?
- How do they buy?
- How do they want to be communicated with?
Answer these four critical questions and you will be able spend your marketing funds more efficiently and realize a higher return on your marketing investment because you are reaching your targeted audience with a specific value proposition that will call them to action.
Every Company has Low Hanging Fruit
The question “How do we grow sales quickly?” is asked in every business on a weekly basis. The easy answer for us is that you would not have to ask that question if your sales function was doing three simple activities on a regular basis.
Asking for additional business from existing clients
When was the last time you met with your top clients to review the current business you were doing with them, showed them what else you could do for them better than others, and asked what they were planning that you might be able to help them with?
Asking for referrals from existing clients
Your clients have stayed with you for a reason. When was the last time you asked them who they knew in the industry that you could help as well and who else they do business with where you might be a fit?
Asking for new business from other “ideal” future clients
Can you identify your best clients and why you have been able to be a partner with them? Take your success and replicate it by producing a marketing piece about why people do business with you and send it to other “ideal” prospects with a call to action about engaging you.
These simple activities are often overlooked because businesses get caught up in their business and do not focus on them. Make these activities part of your regular sales meetings and their will be no need to have conversations about how you can grow sales quickly.
What if you don’t have to hire another salesperson to increase your opportunities in the market?
Salespeople are expensive to organizations and are expected to have a return on investment anywhere from 3 to 10 times their value depending on sales margins. However, most salespeople only sell 60% of the time because they are involved with too many non-selling activities. This in not necessarily their fault and the problem can be corrected by integrating the non-selling activities into the internal job positions they already have.
Activities without providing proper resources:
- Supporting customers
- Providing quotes and RFP requests
- Collecting payments
- Developing marketing materials
- Coordinating internal resources
Activities with the proper resources in place:
- Networking with strategic partners
- Collaborating with current clients on additional opportunities and referrals
- Meeting with more qualified prospects
- Closing more ideal clients
- Making more money for the company and themselves
Don’t let your revenue generating positions do non revenue generating activities. Any organization can increase their opportunities in the market if they have the right people in the right positions doing the right activities.
Why You Need Proven Outsourced Expertise
The word “Consulting” has become just as eyeball rolling to business leaders as the word “sales” and the joke is that if you are not part of the solution, there is money in perpetuating the problem. Not having the right expertise to work within your organization to make the necessary changes properly has the same effect as not being able to complete a project before you start another one. It is the same problem that new employees experience after 18 month of employment…..They get caught up in the minutia of everyday business and eventually become part of the problem.
Companies have downsized their management and senior knowledge holders, lost their internal expertise, and the employees that have survived are so multitasked that nothing is able to be improved because no single individual is able to focus long enough on the task at hand.
A good “consultant” is able to work with their client to help identify a problem, develop and plan to fix the problem, use internal resources efficiently to integrate the necessary changes, and then leaves the client with a sustainable solution.