On Monday, I suggested that far too many front-line sales professionals are adopting a “Quixotic” approach to opportunity assessment, as the need to hit targets and put runs on the board, intensifies.

But you know, with selling time becoming limited; International barriers coming down; competition intensifying; product uniqueness becoming rarer and rarer, rigorous qualification has never been more critical.

Personally, I believe that the first exploratory meeting is the key element in the entire sales process.

Typically the meeting will have been arranged after qualification via the telephone and a decision made by both parties that it would be mutually beneficial to meet.

It is the exploratory meeting that will allow the professional salesperson to set the ground rules and get a ‘feel’ for the client and their needs. As this is normally the first meeting it is also where the potential client will get his first impression of you, therefore the way you look, act and conduct the meeting will have a direct bearing on whether or not you are able to proceed to the next stage. Finally, the objective of the meeting is to gain commitment to the next stage and NOT to try and get the order.

What is the essential information that must be gathered? Read on here

Today’s News: My friend and fellow sales blogger, Dave Stein, posted an interview with Jill Myrick of Meeting To Win - a company who we now have close ties with. You can listen in here, and also grab an excellent FREE download

Hot news off the press – early in March, I will be launching a brand new daily blog, which will be of particular interest to sales managers, Sales Directors, sales leaders, VP Sales - in fact anyone who has responsibility for leading sales professionals: I promised that Sales Leadership Zone  would make a comeback – and it is. More soon.

Tomorrow: I have a book(s) proposal to write, so I am going to be fully occupied. As ever, wherever you are, have a great weekend and be sure to make it back on Monday – JF

Don Quijote by Honoré Daumier (1868)

Emerging salespeople typically believe that all business is good business, and to an extent, I can understand this viewpoint. If you are trying to make a name for yourself, being put under pressure by your sales manager to get “runs on the board” and earn the respect of the more experienced and successful members of the team, it is difficult to walk away from any opportunity if you believe you have the remotest chance of winning it.

However, it is essential that more seasoned professionals fully understand both the value and importance of rigorous objective qualification, not just at the front end but right the way through the sales cycle -especially now. 

Qualification is a process not a single event and even internal and reactive salespeople should be fully skilled in asking a small number of basic questions regarding precise requirements, time scales, budget, competition etc, before they are prepared to reveal their price and delivery.

As the value of the product, service or solution increases, the depth of the qualification should increase proportionally.

External salespeople have the opportunity to meet with prospective customers and it is far easier to extract information face to face than it is via the telephone, however, it is vital that some initial answers are elicited prior the that first exploratory meeting, in order to ensure that the meeting will be worthwhile for both parties.

With sales costs spiralling upwards and sales time becoming limited, prudence is required on the part of the salesperson.

During that first meeting, a considerable amount of detail can and should be uncovered e.g. background and history of the company, the key individuals, the composition of the DMU (Decision Making Unit) if there is one, timescales, budget, competition, current suppliers, buying criteria etc.

Only by rigorous questioning will the salesperson be able to answer the following questions when they get back to the office: Is there a requirement/need that my company can satisfy? Is it winnable? Do I want it?

The very best sales professionals will not pursue the opportunity, after proper objective analysis, if the answer to any of those questions is “No”. They will rather invest their precious selling time seeking out and closing opportunities that will provide a profitable return on that investment.

At the very highest selling levels i.e. strategic “big-ticket” selling and marketing, clearly, the sales cycle is much more protracted, complex and typically moves through four stages i.e.

- Rigorous oportunity assessment
- Develop a strategy
- Present the solution and re-assess the opportunity
- Gain formal commitment, sign the order and develop

In Summary:
Having a tilt at every windmill that presents itself, is neither practical nor profitable – it wasn’t for Don Quixote and it will not be for you. Qualification, is a core competency that every professional salesperson should take on board as quickly as possible.

Working to the maxim that “All business is good business” is unrealistic and totally erroneous. It takes just as long to work an unprofitable opportunity through the pipeline only to lose it at the death, as it does a profitable one – the ability to determine which is which, can have a huge impact on your ultimate success in a front-line sales role.
 

Today’s News: It’s Monday, so you know that I am going to remind you that there is a brand new set of nominated articles over at Top 10 Sales Articles - just click on the banner below to enjoy them all.

Tomorrow: Fellow    Steve Martinez, is on The JF Guest Author Spot – not to be missed - “The Sales Hunter and the Deer Hunter“

Most companies are looking for ways to manage their most important business relationships more effectively and more efficiently. It is not easy to do and it is not always enjoyable to do, but when a key account works well, it is extremely satisfying.

Key Account Management is a broad subject and this eBook is designed to help make the management of key accounts:

★ Easier
★ More Enjoyable
★ More Effective

Starting Point:
There are many definitions of key account management, but our favourite – and one we have used throughout our work – is from The Financial Times:

“The art of developing long-term relationships with selected customers”

It is simple, clear and it shows us what is important.

Simply click on the banner to download my FREE ebook.

Today’s News: Craig Klein over at SalesNexus has released Part 3 of his excellent series – “Double Your Sales”

“Your paying expense bills for lunches, meetings, flights and hotel rooms. Its the cost of doing business right?

How many of the clients you’re spending all that time and money on are buying anything? Not enough right?

Your artillery is firing at any target they can find. There is no other way is there? Yes there is!”

You can download it here

What an amazing launch yesterday – we had some gremlins during the first two hours, but the team sorted them, thank goodness.

If you have not signed up for this amazing no-brainer offer yet, you should do so right away – just click on the banner below.

Tomorrow: I am delighted to welcome Nancy Bleeke onto 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?

Keith Rosen MCC

If you eat healthfully and take care of yourself, then you will never need to go on a diet. A sound and practical philosophy, regardless of how challenging it may be at times to consistently do so.

This same philosophy holds true when it comes to selling. If you honor a well-balanced sales process, which includes everything from first contact to how you qualify a prospect, as well as how effectively you deliver your presentation, then you will not have to close.

Look what was being taught in the old school of selling. The old school taught salespeople to close, close, close. Salespeople were told to spend most of their time closing the deal. Trainers taught salespeople fancy closes to handle and overcome objections. Over the years, a new school of thought has evolved: the school of possibility. Imagine what would be possible if all the objections you typically hear at the “closing table” were prevented and defused throughout the course of your presentation.

There exists a choice a salesperson has to make. The first choice is spending minimal time on your presentation and spending the rest of your time attempting to close the prospect. The second choice is investing most of your time up front on a masterful presentation infused with well-crafted questions that defuse the most common objections you hear. This results in the prospect essentially closing himself, with minimal effort. Which school do you choose to be a student of?

Do you run into the same objection over and over again? If you see a pattern, wouldn’t it make sense to plan for or master a way to defuse these objections by preventing them from surfacing before they actually arise? Wouldn’t it make your job easier to put these objections or concerns to rest throughout your presentation? The end of your presentation should simply be the natural evolution of the selling process: earning the business of a new prospect.

If you can overcome an objection during the course of your presentation when it is still in its fetal stage, as opposed to waiting until the end of your presentation when it becomes a full-grown obstacle, you will find yourself spending less time closing and more time posting new sales.

Consider this: if you were building a brick wall, what would be easier; removing a broken brick that has just been laid or waiting until the wall is fully constructed? If you wait until the end, you have to tear down the entire wall just to get to the broken brick, and then spend the rest of your time reconstructing it.

The same holds true with your selling process. Remove the defective bricks or objections first in order to avoid having to do so later, when it just may be too late to do anything about it.

Keith Rosen is the preferred, authentic coach that top executives and sales professionals in many of the world’s leading companies call first. As a prominent, engaging speaker, Master Coach and well-known author of many books and articles, Keith is one of the foremost authorities on assisting people in achieving positive, measurable change in their attitude, in their behavior and in their results. Keith’s articles can be found in Selling Power Magazine and has appeared in feature stories in The New York Times, The Washington Times, Inc. Magazine, Sales and Marketing Management’s Ultimate Motivation Guide with Stephen Covey and The Wall Street Journal. For his work as a pioneer in the coaching profession, Inc. magazine and Fast Company named Keith one of the five most respected and influential executive coaches in the country.

To speak with Keith about personalized, one to one or team coaching or training or to receive his free ezine,
call 1-888- 262-2450, e-mail info(at)ProfitBuilders.com or visit www.ProfitBuilders.com.

Today’s News: I am incredibly lucky to have a small, trusted group of advisors, of which Keith is a very important member. Another, my “Crazy Sister” Jill Konrath, is adamant that my writing style is “high-brow” - that probably has something to do with her catching me off-guard one time and me confessing my membership of MENSA: You can imagine the conversation – “My name is Jonathan… and I have been inducted into a society for ….” Something almost “Confessional”

The reality is that I have deliberately avoided subjects that might be termed “controversial”

I am talking about - my political views; corporate corruption; the hypocrisy within the Catholic Church; why we are experiencing the worst financial meltdown in decades……..

But not anymore.

From this Saturday, you can catch JF Uncut (I know, the mind boggles)

Every Saturday and Sunday, I’ll be giving you my take on the things that are really important to me – no holds barred - and totally unassociated with my usual Monday-Friday persona.

If you think you can hack it (expletives may be used) then join me.

First up, I am going to respond to this load of ********

My experience is that Jerry is a really nice guy, so it’s nothing personal – truth is, we are in this mess because of two emotions that have driven the finance sector for almost two decades - greed and fear. I’ll elaborate on Saturday. 

Tomorrow: Even skilled and seasoned negotiators struggle sometimes when it comes to trading concessions, prefering to take the swiftest route to closure and thus leaving so much money on the table - tomorrow my advice on how to gather up those last few cents.

Steve Kraner

Despite tons of money spent on CRM software, and hours of time dedicated to business pipeline reviews, the forecast is still not accurate. Why?

Hope-based forecasting

The fundamental flaw in all forecasting is that we are asking sales people to report on their own performance. It’s a bit like the US Congress asking pro baseball players if they use steroids. If we ask salespeople to report that they are failing, we are kidding ourselves.

Level 1 Fix

Most organizations and sales managers ask for a forecast and apply a lot of pressure in the process. For example, a Sales VP told me the other day that his people could not properly project their business. I asked what he had tried to improve forecast accuracy. He said, “Last December I asked them all to commit to what they were going to close in the following 90 days.” I asked if that approach worked and he said, “No. They didn’t make the number they had committed to and they were THEIR numbers!” I asked him what they said when he debriefed their opportunities and walked them through a structured analysis of each deal in progress. He said, “I don’t do that.”

Please stop and think about that for a moment.

If you hired a golf coach who said, “Steve, the problem with your game is that the ball doesn’t go in the hole early enough and often enough.” What would you think of that golf coach?

You can’t coach based on OUTCOMES. If you want to change an outcome you have to address the underlying behaviors. When we beat them up with their own numbers, we aren’t adding any value and we are probably damaging their self-esteem. This results in subjective and inaccurate forecasts.

Level 2 Fix

So then we try a ‘uniform milestone’ grading scheme in an attempt to remove the subjectivity by establishing clear guidelines for what it means to be “at 80%.” This is better, but still more subjective than objective. These approaches fail because they try to solve the problem with tons of paperwork or lots of annoying buttons in a CRM system. The problem is that the reps gather all the information and then PUT IT IN A FILE OR IN A CRM SYSTEM. They look at it as busy work and they do just what it takes to keep their boss off their backs..

Further, if you’ve ever been through an account or opportunity review as a rep you face a manager who keeps asking questions until he find one you didn’t ask. It’s reduced to a game of “gotcha.” Again, very little learning is accomplished and the rep’s self esteem is bruised.

State of the Art

The state of the art is to use an Ultimate Contract. It is an agreement between the salesperson and the customer that outlines all of the key qualification conversations and the due diligence process that will lead to the ultimate ‘yes’ or ‘no.’ The purpose of this document is to make sure you don’t develop a proposal unless you are certain you have captured the full set of requirements and that they are seriously consider buying from you.

“The greatest enemy of communication is the illusion of it.”  – Pierre Martineau.

The Ultimate Contract requires the rep to ask the tough questions. (Please note, the real problem is that reps don’t ask the tough questions! We need to help them learn how to do this.) The verbal agreement is then reduced to writing and SHARED WITH THE CUSTOMER to ensure clarity. Since you send it to the customer, it serves as a behavior trap that you set for yourself, to make sure you ask all of the tough questions.

Since the customer had to see it and agree to it, it adds the next level of accuracy to the forecast. Subjectivity is removed by verifying the conversations with the customer. The account review becomes an integral part of the sales cycle.

How to do it

The manner in which you get to those agreements – tactically – conversationally – is the difference between being pushy and mutual agreement.

We use the term ‘contract’ to emphasize that sales people on the average need to recognize that it is a two-sided agreement and that both parties should have an equal degree of commitment. Contrast that with a proposal – in which the buyer’s only commitment is to allow the proposal to enter their in-box. When you call to follow up, they say, “I haven’t had a chance to read it yet.”

It’s in both parties best interest that you reach an engaged agreement or pull the plug on a process that is going nowhere.

As with any sales tactic, if well-executed, it works well. If not, it comes across as pushy.

Don’t toss out the CRM system

By-the-way, you can still use the CRM system. Just have the salespeople attach the Ultimate Contract to opportunity. Ask them to do less paperwork, then insist they do the minimum essential. The Ultimate Contract will give you a clear window into the real status of every opportunity and into the skills set of the rep who produced it.

I humbly suggest that a verified, mutual agreement is central to the original question about accurate forecasting.

An engineer by background, Steve Kraner is now the CEO of Sandler Sales Institute, a company that helps high tech executives embrace and develop their sales strategies.

Steve confesses that he disdained the sales side of business early in his career. A mistake, he says, that’s often repeated by ‘techie’ founders and CEOs. Steve admits that he had to learn to love sales – and says that so do high tech leaders if they want to win. According to Steve, many technology leaders don’t like selling, so they hire salespeople instead of embracing and leading the sales process. The result, he says, “is a technology company with as many sales systems as salespeople: a company that cannot forecast, team sell or scale.” In sum, a company that’s going to lose.

skraner@hightechguru.com
www.hightechguru.com
703-966-0192

You can read more about Steve here

Today’s News: The Queen of Cold calling, aka Wendy Weiss, has made another royal proclamation:

What would happen to your business if you were able to double the number of qualified, prospects you are able to reach?
 
How would it affect your bottom line if you met with and/or had comprehensive telephone conversations with twice the number of qualified, decision-makers?
 
How would it feel to have qualified, decision-makers eager, willing and delighted to meet with you?
 
Join Wendy Weiss, The Queen of Cold Calling, as she discusses cold calling and how she helps entrepreneurs, business owners and sales professionals – just like you – prospect fearlessly and schedule more new business appointments in less time.
 
The Cold Calling Free Preview Call is on September 18, 2008 and details can be found by clicking the banner below.

Social Media Today is enjoying a birthday today, so to Robin and the gang – best wishes!

Tomorrow: Question: Why do potentially good salespeople fail? Answer: Bad management.