Jonathan Farrington’s Blog

“It is not the strongest of the species that survive, not the most intelligent, but the ones most responsive to change” - Charles Darwin

Whatever got you where you are today will not be sufficient to keep you there. A rapidly changing environment is the regular background against which organisations must develop.

Change is continuous and will become more rapid as we move forward over time. Senior management must be capable of reacting to those changes and be prepared to take advantage of them and yet stay within the overall framework and agreed strategy.

The role of strategy is fundamental if the people within an organisation are to be enabled to make the level of contribution of which they are capable. Strategy, based on a good grasp of the core competencies of a business, is an essential precursor to achieving optimal shareholder value.

Dependence on salespeople is key to delivering the latent capability of a business. Our salespeople are the greatest source of competitive advantage we have and that is precisely why we should continue to invest in them and fully develop them. This is particularly true now that in most market sectors competitive advantage is continually being eroded – i.e. International barriers are coming down, selling time is becoming limited, competitors are getting smarter, fewer and fewer names are appearing on companies’ databases, and product uniqueness is rare. Conversely, undeveloped personnel can bring down a company through inadequate performance, leaving the competition to harvest the marketplace.

If your organisation wants to permanently increase it’s sales results then it needs to approach sales differently to create “the difference that makes the difference” in order to positively impact bottom line performance.

In Summary:
Organisations and salespeople who have 100% commitment to doing whatever it takes to elevate their sales to a whole new level are the ones most likely to succeed. Trying to operate a sales organisation without total commitment is like trying to drive a car without fuel. But every organisation has the potential to harness the power of their salespeople just as surely as oxygen pumps life into the human body.

Today’s News: Is scant, due to the fact that I am with clients, but there will be lots on Monday.

Tomorrow: However, JF Uncut will be here tomorrow - ever heard of George Thorogood? “One Man’s Dream And Another Man’s Dream”

There has been increasing evidence - unsurprisingly - that sales professionals and sales captains are working longer and longer hours, thereby putting health and family relationships at risk. This is not a topic that we can simply sweep under the carpet, it is not going to go away, and I am witnessing it more and more frequently.

Pressure to complete and meet the ever-increasing demands of customers (as well as the need to achieve higher sales quotas) and finishing the year strongly, is forcing people to spend more of their time working -not to mention a stagnant market, that will only become more so in 2009.

Whilst stress does have its benefits, too much can cause errors of judgement, mistakes, accidents and damage to health. Some people are more vulnerable to stress from overwork than others.

American researchers have identified two types of managers – Type ‘A’ who, though thriving on stress, are vulnerable to its effects, and Type ‘B’ who rarely let events disturb them.

Not only are there Type ‘A’ managers but also Type ‘A’ organisations – is yours one?

Types A & B:

Type A: 
• Try to do more and faster 
• Concerned with speed, performance and productivity 
• Tend to be aggressive, impatient, intolerant, hard driving and always hurried 
• Preoccupied with time
• Start early
• Strong competitive tendency
• Always want to succeed
• More likely to have heart attacks

Type B: 
• Easy going
• Take difficulties in their stride 
• Spend time on what they’re doing
• Rarely harassed
• Less prone to heart attacks 
• Take time to ponder alternative
• Usually feel there’s plenty of time
• Not as preoccupied with time

Stress What Is It?

Popular definitions include: ‘the result of a person being pushed beyond the limit of their natural ability’ When used in physics, stress is defined as ‘the external pressure applied to an object’, the resultant change is called ‘strain’

Applied to people, we mix up the two terms, using ‘stress’ to refer to both the pressures we’re under and the effect it has on us

What Causes Stress?

• Where you work - Red tape, changes, demands from customers, uncertain future

• Your Job - Volume of work (too much/little), deadlines, pressures, being responsible for staff

• Your career to date - Still not found your niche, no clear goals, reached your plateau

• Your Relationships - Colleagues, friends, partner, boss, staff, children and families

• Conflicts - Unable to find a balance between work and home; worried about money

• Self-imposed - Giving yourself a hard time, low self-image, poor self-management

What Are The Signs?

• Physical
Headaches, indigestion, throbbing heart, allergies, infections, twitching, nausea, tiredness, weight loss/gain, vague aches and pains

• Mental
Indecision, making mistakes, forgetfulness, poor communication, easily distracted, worrying more, making hasty decisions

• Emotional
Irritability, anger, alienation, nervousness, apprehension, loss of confidence, tension, cynicism, job/life dissatisfaction

• Behavioural
Unsociable, restless, unable to unwind, appetite loss/gain, diminished/increased interest in sex, increase in drinking/smoking, taking work home, too busy to relax, poor personal management

In Summary: Stress Techniques for Handling Stress

Remember, you have some choices – do nothing, fight it or learn to manage it by:

• Identifying what causes you stress and how it shows itself (this will give you a clue about what you need to tackle)
• Concentrating on what must be done and cutting out all those non-essential meetings phone calls and visitors
• Learning to delegate and trust others; none of us is indispensable
• Pacing yourself; have 10 minute breaks throughout the day
• Being tidy and organised; untidiness creates its own problems
• Learning to relax and switch-off, don’t take work home  
• Learn to say ‘no’ – don’t take on everything that comes your way
• Get a balance between work and home; your life is important too!
• Eat properly, avoiding too much fat and sugar
• Improve you listening skills; many busy and energetic people are bad listeners
• Take breaks – make sure you use all your holiday entitlement
• Get yourself on an anti-stress programme if necessary
• Develop breathing and relaxation techniques eg: yoga
• Keep fit – try swimming and/or walking
• Learn to manage your time more effectively

And Finally - Prime Time, When Are You At Your Best?

We all have a ‘prime time’ during the day when we are at our best and fully alert, the secret is to recognise this and complete those activities that require energy, application and thought, when you’re at your sharpest.

When energy is low, we are sluggish and tend to make mistakes, so watch what you eat – a heavy meal and wine make a lot of people sleepy; a healthy meal can provide energy hours.

Work in periods of time; a maximum of an hour before you give yourself a break – this way you’ll concentrate better.

If you want help in identifying your time robbers, this originally titled article will help: “How Identify Your Time Robbers”

Today’s News: I did suggest that the latest Top Sales Experts e-book, would be the last - we plan to go into hardback in 2009.

However, I have relented, and we are producing a Special for Christmas - “How To Sell & Survive In An Economic Downturn - And Have A Great Christmas”

In fact, we are going to install a unique area on the TSE site very shortly, to provide advice and support for front-line sales leaders and sales professionals, including an “Ask The Expert” facility, providing direct access to fifty of the world’s leading sales gurus - more soon.

I cannot tell you how much I am enjoying writing JF Uncut on Saturdays and Sundays - if you missed this week’s posts, simply scroll down.

Finally, to make you smile: “McCain versus Obama - The Dance Off“ - well it made me smile

Tomorrow: On The JF Guest Author Spot I am delighted to welcome back a very good friend and one of the foremost leadership gurus on the planet - best selling author and good all round egg, Kevin Eikenberry - you will not want to miss his pearls of wisdom. 

Even companies that enjoy the luxury of clearly superior products, realise that those products will not sell themselves. As a minimum, companies need a sales force comprised of skilled professionals who understand the application of the product range, have an in-depth knowledge of their customer base, market sector and of course the competition. But even all these elements together are not sufficient to ensure optimum performance levels and profitable sales.

So What Is A Sales Process?

Put quite simply, it is a set of procedures, which determine how a company wishes its sales team to operate – “The way we do things around here”

The most successful organisations have implemented a process and an all-encompassing framework for defining performance standards. This involves assessing, appraising, developing, reviewing, providing continual feedback on performance, as well as implementing efficient and relevant process tools

Lack Of Direction

Far too frequently, competent salespeople are expected to channel their own activities into the areas that will produce the quickest wins. Unfortunately, left to their own devices, they don’t develop and pursue a formal strategy for moving a sale tangibly forward during each prospect interaction, neither do they have a clearly defined set of goals against which to measure the progress they are making Typically, their judgment is based on gut reaction and is purely subjective i.e., “Oh yes, I’ll get that order, he likes me”, because salespeople have to be optimistic by nature. They end up “dancing around” with prospects, in the hope that eventually they will get to their chosen point on the dance-floor i.e. -the sale. In this scenario, the customer has complete control.

A Discouraged Sales Force Diminishes Sales Efficiency

When their efforts don’t pay off immediately, even experienced salespeople tend to become discouraged. They spend more and more time struggling to meet their sales quotas and working less and less efficiently.

Feeling increasingly powerless to influence prospects, they may also begin to press for a sale in ineffective ways – for instance, by arranging formal product presentations to prospects that they have not even qualified or who haven’t yet agreed that they need the solution. They allow prospects to milk them for information without getting a commensurate commitment first – and even worse, they fail to defend margin and make unprofitable sales in order to achieve quotas. The details of what goes wrong differs for each individual salesperson but the net result is always the same, a discouraged sales force, diminished sales efficiency (i.e. wasted investment of sales time and resources that fail to produce high quality sales) and, consequently, increased cost of sales which inevitably drastically reduces net profit.

What’s the bottom line? Sales never result efficiently and with maximum revenue unless the sales process is continually and closely managed. But before the sales process can be managed, it must be manageable.

Developing A Consultative Sales Process

From the Sales Director’s perspective, developing a consultative sales process means developing a comprehensive, formal, realistic and step-by-step outline of what salespeople are expected to do. This is just as appropriate for internal and totally reactive sales teams as it is for external pro-active ones. This outline includes the activity and calls they must make, the relationships they should establish with prospects, the documentation they should use in sales calls, the issues they must discuss and resolve with prospects and the tangible goals they must achieve in sequence along the path to each sale, in order to achieve maximum effectiveness.

It’s only when such an outline is in place that sales management can be in a position to:
 Monitor the sales force’s activity, progress and results,
 Assess issues as they arise and take appropriate action,
 Redirect individual sales representatives’ efforts efficiently.

Although many organisations appreciate the importance of being customer-focused and talk in vague terms about their “consultative sales process”, surprisingly few sales leaders invest the time and energy required to develop a formal sales process – a process that is at once detailed and resilient enough to guide their salespeople and permit effective management of their efforts.

Overcoming Implementation Intertia

Even when a consultative sales process has been developed, understood by sales managers, written down and circulated, it’s often not enough. No matter how brilliant, a sales process will only be effective to the extent it is followed and used by frontline sales staff. And this is where most organisations fall down: overcoming inertia – among managers and salespeople alike – and implementing the process. The hurdles that must be cleared in order to get people throughout the organisation to actually implement it are enough to cause Sales Directors to tear their hair out. But a select few, of the very best, have found some innovative strategies that have enabled them to achieve the Holy Grail: Sustained sales growth achieved efficiently, reliably and by design.

Today’s News: What a great reception we received to our first two JF Uncut posts at the w/e: If you missed them, just scroll down.

The next Top Sales Experts ebook, has been delayed and will now launch next Tuesday - October 21st - I am certain the wait will be worth it!

Over on Top 10 Sales Articles this week, we again have a very strong ten nominees - so be sure to check them out here

Tomorrow: On the JF Guest Author Spot, is the very wise and very smart Kendra Lee, who last week sent me this message:

“Now for a story of how small the world is thanks to the internet and those of us who network. This week, I was working with a new client in a planning session for his sales managers. We had a facilitation session to get their buy-in and agreement on their next steps. During the session the EVP of Sales pulled out a definition of consultative selling “from a fellow named Jonathan Farrington” and quoted it to me!!!! It was so cool to say, “I know Jonathan well. We work together.”

Now, that is cool!

The JF Guest Author Spot

Paul McCord

Are you a salesperson, professional or business owner who is trying to market to anyone and everyone in your market that might even remotely have a use or need for your product or service? If you are, why?

Why would you try to do something that most salespeople and professionals can’t possibly do well? Marketing on a general scale is expensive—just ask Coke, Microsoft, Old Navy, Sears, State Farm, UBS, or any other major company. They spend hundreds of millions of dollars every year trying to do what you’re trying to do on a shoestring.

But, you say, you’re only working in a very limited area? Fine, do you have the budget of a major, local auto dealership, or major, local furniture store, or any other major, local business that is trying to do what you’re trying to do?

But, again, you say that you’re not marketing to the general consumer but to a specific industry. OK. Do you have the budget your major competitors have to do direct mail, sponsor association events, advertise in industry specific publications, and all the other things your big competitors do?

No, you say, but you don’t need the sales volume they do in order to support all of those things or the massive staff they have. Good, now we’re getting somewhere.

You don’t need the sales volume they need, you don’t have the budget they have, and you don’t have the staff they have. So, why are you trying to capture the same general market they’re trying to capture? You don’t need it and you can’t afford it.

Rather than spreading your time, effort and marketing budget so thin, why not focus on one or two very specific segments of the market where you can become a real player? Instead of trying to spread your marketing budget over say, 40,000 people, why not focus on a small, but highly focused segment of maybe 5,000 people? Instead of trying to get to 11,000 companies, why not focus on 2,000 companies that fit within your ideal prospect template? Better yet, why not focus on 800 companies that are perfect fits to your ideal prospect? 5,000, 2,000, or 800 is still a large number.

By defining your ideal prospect in as detailed terms as you possibly can and then focusing only on that group, you increase your likelihood of selling each prospect, you are more capable of making inroads with each since you can focus your message to that group specifically, and you maximize your marketing dollars. You also can become the expert to really understand and resolve their issues and problems.

Finding and exploiting one or two niches is a far more effective marketing format for most salespeople, professionals and small businesses. Unless you have the time and money to compete with the big boys, you’re better served to do what they can’t—concentrate on and become the expert in a highly focused segment of the market.

Why don’t more salespeople, professionals and business owners focus on niche markets? Fear. Fear of possibly losing a sale. Fear that the niche may not be big enough to find enough clients to stay in business. Fear that they won’t be able to penetrate the niche. Fear that they’re leaving money on the table.

These fears are unfounded for the most part. Becoming a niche player does take time. It takes effort. It takes discipline. However, there is a lot of money to be made being a big fish in a very small pond—and no money to be made being a dead fish in a very large lake.

Today’s News: Most salespeople are looking to finish the year strongly and over at Salesopedia, Clayton Shold is in conversation with Jim Messenheimer about this very topic.

Clayton says: “I refer to Jim Meisenheimer as a sales expert; he refers to himself as a lifetime student of the selling profession. Which ever way you look at him he is a “player” in the sales game having trained tens of thousands of sales producers and thousands of sales managers. He knows what is required to finish the year strong. This podcast examines if you have what it takes to nail the fourth quarter. Jim walks you through six critical questions which strategically look at your business. He professes if you invest at least one day working through these questions you will not only have a banner last quarter but set the pace for next year.”  Simply click on the banner to listen in.

Tomorrow: What do doctors and salespeople have in common?

A recent global survey of more than two thousand organisations that I recently read, identified that one of the biggest issues facing Sales Leaders today is that salespeople’s self-limiting beliefs constrain their performance, which obviously in turn, limits their sales results.

I do subscribe to the theory that whatever you believe you can do, you will; and whatever you believe you can’t do, you won’t.

Like everyone, salespeople hold stubbornly to private beliefs about themselves, customers, the market, competitors and the economy – beliefs that can have an enormous impact, either positive or negative, on their sales performance. If salespeople don’t see themselves as providers of value, they’ll be blinkered to the customer’s genuine business needs.

This manifests itself in a number of undesirable behaviours that range from being too pushy, to being far too accommodating. This can also lead salespeople trying to sell customers something the customer may not need or want, and that certainly will not build long-term customer relationships.

Typically, salespeople who believe that if they had more competitive prices they would win more deals, tend to attract more price objections. This in turn leaves them feeling fearful or reluctant to discuss price and their downward spiral becomes a self-fulfilling prophecy.

A salesperson’s state of mind is instantly transferred to their prospect or customer because they unconsciously transmit their attitude in a variety of subtle and even overt ways. Whilst the prospect or customer may not be consciously aware of the salesperson’s underlying attitude, they will just have a feeling that something isn’t right and will put a distance between themselves and the sales person.

This problem is further compounded and validated by research from Objective Management Group Inc who found that the typical sales person possesses a minimum of ten limiting beliefs that are having a detrimental impact on their performance. Once these beliefs are eliminated the average sales person will increase their sales by approximately 25%.

Many Sales Leaders understand the vital importance of the right mindset and those who are able to tackle and resolve the issue of their team’s negative beliefs will see a dramatic upswing in their team’s sales results.

You may also enjoy:”Are Self-Limiting Beliefs Constraining Your Sales Team?”

Today’s News:

Here’s a special message from a very special lady:

Strategic Marketing Ideas in a Shrinking Economy: Referral Expo 2008 (now through October 10th!)

The Referral Expo is a virtual event, conducted over the phone. It’s free to attend, but registration is limited:

* Breathe new life into your business
* Generate more referrals
* Find better quality referrals

Get new, innovative ideas! Bolster yourself against the economy. The Referral Expo 2008: Register now.

In times like these, building relationships and creating referrals are the keys to success. By attending this virtual expo, you’ll get loads of innovative ideas and strategies for generating referrals - all from the comfort of your home or office.

The Referral Expo 2008:

Tap into 15 world-class marketing experts as they share their best referral strategies. I’m honored to be included in the team presenting at this year’s Referral Expo.

What: Referral Expo 2008
When: Now through October 10th

Each 1-hour presentation will be conducted over the phone on successive weekday evenings.
Monday - Friday at 5:00pm Pacific / 6:00pm Mountain / 7:00pm Central / 8:00pm Eastern

Cost: FREE - Register now!

See you there

Joanne Black

Tomorrow: I am doing my bit for the next Top Sales Experts ebook, which should launch in about two weeks. I am also going to be thinking about the JF Consultancy 2009 strategy - yes, it is that time of the year already - this is me with my thinking cap on

Our graphics designer, Bill Jeckells, has a great sense of humour!

OK, that’s a wrap for this week, so as ever, have a great w/e and be sure to make it back on Monday - JF

Some Background Information:

Did you know that:

• 40% of salespeople are failing in their sales careers?

• 45% of all salespeople earn the average income for their industry?

• A typical salesperson devotes only 10-20% of their time to actual selling because a large proportion of their available time is devoted to cold calling?

• 85% of all salespeople do not generate enough quality referrals?

• Salespeople who actively seek and exploit referrals earn 4 to 5 times more than salespeople who don’t?

•  Referral business closes and converts more than 70 percent of the time?

Why is referral based selling so powerful?

A referred customer is already pre-sold on the credibility of the salesperson, their company and the relevance of the products/services sold. These types of opportunities are much warmer than a cold-call based opportunity because it maximises the goodwill, inherent in the relationship between the referred customer and the referring person.

By association, salespeople are consequently perceived in a different light compared to those that have made contact ‘out of the blue’. The costs of selling to a referred customer are reduced because they are easier to see, and are likely to be reasonably well qualified so that the probability for converting the business is much higher. Generally speaking referred prospects will accelerate through the sales pipeline at a much faster rate than other types of opportunities, and they will also be more receptive towards providing future referrals.

What are the biggest barriers to getting referrals?

If asking for referrals has not been included and communicated in the sales process, this will deter salespeople’s focus as they will see asking for referrals as a ‘nice to do’ rather than a ‘must do’. This in turn usually means that there is no rigorous method for measuring and monitoring how many referrals are generated and what the conversion ratios are for closing referred customer business.

Energy goes where attention flows, so without specific attention to this salespeople are unlikely to invest their energy in this direction. (Even if they are firm believers in the positive impact that referrals can create!). For many salespeople asking for referrals is uncomfortable because they feel unsure about how to do this effectively, and they aren’t confident they will get their desired response.

If people don’t know how to do something and they believe that what they are doing will damage their existing relationships, then it’s better to avoid it all together. Additionally, if salespeople make the common mistake of asking for referrals too early on in the relationship this can result in more refusals that further erode salespeople’s confidence.

Therefore, to optimise the use of referral-based selling the following components are vital:

1. Asking for referrals and acting on them needs to be incorporated in the overall sales process.

2. Metrics around referrals should be sought and evaluated on a regular basis, because this contributes towards furthering the rationale for generating them.

3. Development and training needs to be delivered to the sales team so they can maximise the impact of referrals and feel confident with this skill.

When is the best time to ask for referrals?

People will freely give referrals when they have benefited from your product/service and have an established relationship with you. This rarely occurs during the initial meeting because whilst they may like you, they haven’t yet validated what you can do for them. That’s why asking for referrals should be when the relationship you have established is strong enough to ensure their trust and belief in you.

Assessing the strength of your existing customer relationships can be very subjective unless there is a meaningful set of relationship criteria in place.  Although these will vary from organisation to organisation, they may include factors like:

- Communication frequency with key influencers
- Satisfaction with product/service
- Speed of response to queries/problems
- Length of relationship

The customers with the highest scores (based on the relationship criteria) are those that should be approached for referrals.

What is the best way of generating referrals?

1. Prepare a description in the form of a criteria list that specifies the type of person or organisation that you are looking to approach. This should be based on the profile of your Ideal Customer.

2. Evaluate all your customers using a relationship criteria and identify a list of those with the highest scores. For every customer your aim is to generate a minimum of 5 referrals. Therefore, if you have 25 customers on your list your target number of referrals will be 125.

3. Contact each customer on your list and take the pressure of them by explaining that you don’t want to sell to them, you would like their help.

For example: “Do you know anyone who is (specify your criteria) that would be interested in learning about how our products/services can benefit them?” Preface your question with a softener such as: “I wonder if you can help me” or “I would really appreciate some advice.”

4. When customers give you referrals, ask their permission to use their name when making contact. Alternatively, where your relationship is ‘rock solid’ ask customers to make the initial introduction by letter or email. Often customers will give a glowing testimonial and create a relevant context when introducing people.

5. Thank customers for referrals and keep them appraised of your progress. This creates a positive association towards the giving of more referrals in the future.

So, there we go, my most recent thoughts on the importance of referral selling!

Today’s News: A couple of great blog posts for you: “Martini Glass Prospecting” from Colleen Francis and “What’s The Half-Life Of Sales Training?” from Dave Stein.

Tomorrow: My guest is the amazing Billy Cox, who urges us to “Expect Victory”

The JF Guest Author Spot

Joan Paul  

This morning when I opened my calendar, everything looked different. Surely someone’s been playing with my computer. I could swear I had appointments booked and paying clients taking every available spot for the next two months. I must be having a bad dream. Pinch myself. Nope. It’s true – I’ve hit the dreaded dry spell!

Entrepreneurs talk about it all the time as part of the game, but being in it is an entirely different thing. If you are like most business owners, you haven’t yet managed to balance the feast and famine phenomenon. The question is, “What do you do when the famine hits?”

First of all, BREATH!!! Preferably without hyperventilating. Don’t panic. Don’t throw in the towel. Don’t check the employment ads. Do remind yourself why you started your business. Do remind yourself of all the successes you’ve enjoyed and will once again enjoy. Do remind yourself if you are just starting up, that it takes time to build an active business. Do park your negative self-talk and replace it with positive affirmations, like “Today I am one step closer to experiencing the wild success that I’ve dreamed about!”

When things are looking a bit slow, do the following:

-Go to your database and call all the people you’ve been meaning to stay in touch with. Arrange to meet and exchange ideas or just have a coffee and find out how you can help them with their objectives.

-Apply a referral selling process. In No More Cold Calling™, The Breakthrough System That Will Leave Your Competition in the Dust, Joanne Black puts forward a practical approach to building your business through referrals. This simple system can propel your business through the roof without wasting business development time.

-Attend to the business planning that you may have been procrastinating about. Revisit your business and marketing plans. It will likely re-energize you.

-Find a coach. Whether hired or a business buddy, it’s very helpful to have a thinking partner, someone to share with and encourage you to keep your eye on preparing for the next delectable feast.

-Learn something new. Take the opportunity to read the last business book you bought and put on your nightstand or attend a training program that’s been on your to do list.

Most of all, remember dry spells are temporary and keeping perspective is critical to your success. The objective is clearly to have fewer dry spells and more feasts. However, dry spells are inevitable for most entrepreneurs. If you find you are stuck in dry spell, do get some guidance from someone who can provide insight for you and be prepared to explore difficult possibilities. As Jim Collins says in “Good to Great,” Confront the brutal facts, yet never lose faith.”

 Joan Paul is a Certified Executive Coach and Sales Strategist. Her company, J. Paul Training Inc., provides customized training, strategy development and is the distributor of No More Cold Calling, TM, The Breakthrough System That Will Leave Your Competition in the Dust, and The Sales Activator®, an international sales management system. Joan can be reached at (403) 607-1979 or through her website http://www.jpaultraining.com

Today’s News: Over at Salesopedia, Clayton Shold is in conversation with “Mr Inside Sales” the very genial, Mike Brooks - “Throw Away Your Funnel” - “Suppose someone told you to throw away your sales funnel. Would you think they are contrarian or just crazy? Mike Brooks suggests the top 20% of sales producers don’t use a funnel, they use a sales cylinder. He explains how to dramatically improve your closing ratio by using a cylinder and disqualifying prospects early. Mike has a special message for the sales leaders in the audience who have grown up with, and continue to promote sales funnels.”  As usual, just click on the banner below.

In “Wall Street And Broken Social Trust” Charles Green articulates very well what most of us are thinking right now - you might enjoy the read.

My own view is that there is only one thing uglier than a fat cat, and that’s a dead fat cat. Once upon a time in the UK, if someone introduced themselves as an estate agent, you would count your fingers after shaking hands - the banking industry has now been passed that baton and is viewed with considerable disdain by anyone with an I.Q. of more than 30.

Tomorrow: In response to the question: “What is THE most important leadership trait?” I provide the answer - for me, it is a “no-brainer” 

The JF Guest Author Spot

Tim Wackel

The experts have started to whisper recession and you can almost hear the collapse of sales funnels everywhere. Account managers are complaining about how difficult it is to close business in this slowing economy. This doesn’t come as a big surprise.

Less than half of today’s business-to-business sales professionals have ever weathered a true economic downturn. These folks learned how to sell in the nifty ‘90s which was one of the longest business expansions in U.S. history. Hey, it’s not that hard to hit quota with double digit market returns and huge growth in the number of new jobs. But what should you do when the economy starts to tap the brakes?

Rule one—don’t blame the economy. Companies still have to buy goods and services no matter what the economy is doing. They may buy different, they may buy less, but they still have to buy. If you can’t convince prospects that what you’re offering is a solid investment with meaningful return, then maybe the problem lies closer to home.

Let’s look at this a different way. The major objection most reps face during slow times is, “I have no money.” How is that possible? If your customer has no money then they’re out of business. What they are really saying to you is, “Your ideas stink.”

What can you do to close more business in a slowing economy? Start by answering these three questions that will put you back on the path to success. I can’t guarantee that they will work for you, but I can guarantee that they work.

How much energy are you wasting on insignificant activities?
You’ve probably been told that business will improve if you just make more appointments, increase the number of demos, give more presentations and ramp up your number of cold calls. Don’t get me wrong, there is nothing incorrect with increasing these selling activities; especially if you sell low-value products to one time customers.

Experience tells me that chasing everything that looks like an opportunity keeps you busy but makes you very ineffective. You’ll be working hard, but you won’t be working smart. Eventually you’ll burn out your prospects and yourself – toast for two!

Start today by re-qualifying every prospect and work on cleaning out your funnel. Focus on your best selling opportunities and put your energy there. You’ll create more success by investing the right resources into ten solid opportunities than you will by chasing twenty five half baked leads.

Are you making every conversation count?
Clients and prospects should be impressed with your preparation for every sales call. When you demonstrate that you’ve done your homework it becomes easier to have an open and honest dialogue with you. When the economy slows down, people get nervous. They don’t want to waste time meeting with sales reps unless they see some potential value.

The “smile-n-dial” mentality of simply pounding on more doors with the same pitch may produce extra appointments. But it also creates the fear that you’re going to sell them something that they don’t need.

Open your next client conversation with this simple phrase, “In preparing for this meeting I took some time to…” Then simply highlight the two or three critical things that you did to prepare and watch what happens to the atmosphere of the call. You will blow away the last rep that opened their meeting by announcing that they were just “checking in” to see if anything new was going on.

The goal is to stop “educating” your customers. They don’t care unless they are engaged. Talking about your company, your products and your reputation will not engage customers. Talk about them, ask about them, provide ideas for them and communicate in terms of them.

Who are you talking about—you or them?

Do you have any questions?
Knowledge is a key ingredient to sales success, especially in a slowing economy. The more you demonstrate knowledge, the more prospects will take time to listen. And the best way to establish expertise is not by pitching features; it’s by asking questions. Questions that can differentiate the value you bring to every call.

Many reps fall into the common trap of asking questions that are self serving. “What does your purchasing process look like?,” is a mind numbing, self serving question that doesn’t create new insights. Your customer hears these types of questions every day and they bring zero value to the dialogue.

Instead ask questions that get customers to stop and think. Ask questions they haven’t been asked before. Ask questions that get the customer to pause and say, “That’s a really good question.”

Creating high impact questions takes extra time. But it’s worth every minute. Start investing sixty percent of your time doing research, forty percent of your time making calls. I know this contradicts traditional wisdom, but this isn’t a traditional selling environment.

Don’t pick up the phone or walk into the lobby until you’re absolutely ready to engage in a meaningful dialogue. You’re not going to get a second chance in a slowing economy, so make sure every one counts!

Tim Wackel is founder and president of a training and consulting firm based in University Park, Texas and is an active member of the American Society for Training and Development. He holds a professional membership in the National Speakers Association.
More about Tim Wackel…

Today’s News: Here is a very interesting post from my friend Christian Maurer that you might enjoy: “Surprising Numbers”

Another good friend, Leslie Buterin is presenting a webinar direct from the SheBang Conference tomorrow - just click on the banner below:

Finally, over on my Sales Gravy blog, I am discussing time robbers and monkeys, plus giving you an opportunity to identify your own time robbers, simply follow this link

Tomorrow: I discuss an incredibly efficient way of extracting more from your most important accounts.

As the recession begins to bite hard, now is the time to make the very most of our most important customers.

A vitally important sales activity is that of managing existing customer accounts to consolidate and grow the relationship. Yet unfortunately, when compared over time, the customers’ interest levels increase while salespeople’s interest levels tend to decrease. This creates a “relationship gap” and is due entirely to complacency.

Another major issue is that too often the salesperson fails to expand his “contact base” as this next survey proves which results in vulnerability and exposure to competitive activity

Periodically, the Financial Times conducts a survey of British industry to establish how companies go about their purchasing. The survey is very comprehensive, broken down into many kinds of products and services.

From a Sales Director’s perspective, these are very worrying statistics.

Customer size (Number of employees): Less than 200

Average number of buying influencers: 3.43

Number of influencers visited by salespeople: 1.72
Customer size (Number of employees): 200 – 400

Average number of buying influencers: 4.85

Number of influencers visited by salespeople: 1.75
Customer size (Number of employees): 401 – 1000

Average number of buying influencers: 5.81

Number of influencers visited by salespeople: 1.90
Customer size (Number of employees): 1001 +

Average number of buying influencers: 6.50

Number of influencers visited by salespeople: 1.65

In essence, without a sustained approach to ongoing servicing and support activities, customers that took months to win are ultimately lost because there was a lack of interest from their supplier.

To-days clients/customers are looking for vendors who can be business-partners, who are willing and able to share risks and who are able to properly manage the entire sales process.

Fact: It costs seven times as much to locate and sell to a new customer
as it does to an existing one.

Are you making the most of your customer base? Answer the questions below honestly and find out.

1. How many regular clients do you have?

2. Has that number increased in the last twelve months?

3. How many of them have bought in the last three months?

4. Of those ‘regular clients’, how many have you contacted in the last month?

5. Of those, in how many have you progressed upwards from the user/recommender?

6. With how many of them do you enjoy exclusivity i.e. preferred supplier status?

7. How many of your clients have bought more the ‘second’ time around than when they originally bought from you?

8. With how many of your regular clients have you conducted an account review within the last six months?

Study your answers - are you still confident you are making the most of your most important accounts?

You may also enjoy: “How to Conduct A Formal Account Review”

Today’s News: I promised to share with you the second interview I recently did with Eyes On Sales, which focuses on achieving what I call “Top 5% Status” - you can listen in by simply clicking on the banner below.

I can now update you on the tremendous strides we have made towards the re-launch of TSE 2.0, which will be taking place in about four weeks time – it might be four and a half, you know what a perfectionist I am!

We will be adding ten new sections to be housed in a brand new “TSE Resource Area,” which will be available to subscribers.
 
1) TSE Article Vault

2) “How To” Guides

3) Podcasts

4) Webinars

5) TSE Radio

6) Ask The Experts

7) TSE Newsletter

8) TSE Blog

9) The Expert Interviews

10)  TSE Round Table

In Addition:

Of course, we will continue to release the quarterly e-books – next one is due for release early October, BUT, here is the exciting bit, Jeb Blount of Sales Gravy Press has agreed to publish us in hardback twice a year and rather than just compile a collection of our articles, we are going to make the books topic related – for example: “The Top Sales Experts on Business Development”

We will also have a Jobs Section, re-routing visitors to Sales Gravy and Salesopedia and naturally, we will continue to add new facilities as demand requires.

Ambitious? Of course, but we do not plan to put this all in place in one go. Rather, we will stagger the section launches and it should all be there by the end of November.

This really is shaping up to be the most innovative and ultimately, we believe, the most successful venture of its type.

Tomorrow: Paris is enjoying some warm Autumn sunshine right now, such a contrast to the drab grey summer we had to endure, so I will be out and about. Wherever you are, have a great w/e, and do make it back next week. - JF

The responsibility for ensuring that every member of a sales team is successful and performing at optimum levels lies entirely with management and when a salesperson gains promotion to management the first thing they have to do is to quickly acquaint themselves with a new set of working relationships - and a new set of rules.

The salesperson’s primary working relationships are with customers: However the sales manager’s is with the sales force i.e. his subordinates. For example:

Essential Attributes Include:

Successful Salesperson:
- Personal drive (Ego).
- Needs to win battles (Individual sales).
- Able to work alone.
- Persuades customers to see his/her point.
- Needs selling skills, personal skills and knowledge.
- Able to work away from the office.
- Works well with people and numbers.
- Good at implementing sales tactics.

Successful Sales Manager:
- Submission of personal needs to the goals of the Company (Corporate drive).
- Needs to win the war (Meet corporate goals).
- Able to work with others.
- Persuades the sales team to see the Company’s point.
- Needs management skills and marketing knowledge.
- Needs to work at the office.
- Works well with people, numbers, paperwork and the corporate hierarchy.
- Good at developing sales and marketing strategies.

The most common danger in having sales managers who are basically super salespeople is that relations with subordinates including the critical tasks of development and supervision may deteriorate.

When I am asked to diagnose why an individual or even an entire team are not performing at optimum levels, I usually ask just four very straightforward questions:

• Are they visiting/talking to enough clients/prospects? In other words are they pro-active and are their activity levels high? I call this CCT as a percentage of TWT (Customer Contact Time as a percentage of Total Working Time)

• Are they talking to the right people within those client/prospect organisations? Are they able to penetrate the formal DMU (Decision Making Unit) and reach the MAN? (The person or people with the Money, Authority and Need)

• Are they saying/doing the right things? This really means - how strong are their selling skills?

• And finally, how is their attitude – that small thing that makes such a big difference.

From these four questions, I usually discover the answer but actually, it can sometimes be a little more complex and I refer to the“Eight Reasons Why Salespeople Fail”

If you really want to discover how healthy your sales organisation is right now, you can complete this FREE Health Check now and receive an immediate score - I will provide you with further information on what your score means on Friday, or if you want to discuss it personally, e-m me at jf@jonathanfarrington.com.

Today’s News: I am travelling home to Paris and as there was a fire in the Tunnel last week, I am having to break my journey with an overnight hotel stay: If I said the internet connection was “flakey” I would be being very generous, so you’ll get a double helping of news tomorrow - I promise.

Tomorrow:Also tomorrow, Lee Salz on The JF Guest Author Spot, so be absolutely certain to join me!