In a word, “Yes” – In five words, “Yes of course it is!”

Some interesting facts about referral based selling that you may not know:
• 85% of all sales people do not generate enough quality referrals.
• Salespeople who actively seek and exploit referrals, earn 4 to 5 times more than sales people who don’t.
• Referral business closes and converts more than 70% of the time.

Why is referral based selling so powerful?
A referred customer is already pre-sold on the credibility of the sales person, 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 maximizes the goodwill, inherent in the relationship between the referred customer and the referring person. By association, sales people are consequently perceived in a different light compared to those that have made contact ‘out of the blue.’ – Sounds obvious?

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 obtaining referrals?
If asking for referrals has not been included and communicated in the sales process then this will deter sales people’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, sales people 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 sales people, asking for referrals doesn’t come naturally, 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 sales people make the common mistake of asking for referrals too early on in the relationship, this can result in more refusals that further erode sales people’s confidence.

Therefore, to optimize 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 maximize the impact of referrals and feel confident with this skill.

What 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 organization to organization, 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 organization 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 example, 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.

You might say:
“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”

3. 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.

4. Finally, thank customers for referrals and keep them apprised of your progress. This creates a positive association towards the giving of more referrals in the future.

Referral selling is the most powerful, most economic, and the most efficient form of selling that exists – fact!

Want to learn more about referral selling? Then I suggest that you familiarize yourself with the “doyenne” of referral selling, and the world’s top expert on the subject – my very good chum, Joanne Black. You will find Joanne HERE

News: Somebody suggested that the “holding” page put in place prior to the launch of my new consultancy looked like a funeral invitation, so we immediately sorted that out, as you can see HERE

As I have said often enough here on this blog, I enjoy negotiating very much: I have worked hard to learn and perfect my skills over many years, and practiced in a variety of circumstances – so allow me share just four secrets with you today …

A skilled negotiator will create high levels of rapport and be sensitive and empathetic to the people they are negotiating with, yet can still be hard on the issues. The ability to separate the people from the issues, and recognize that negotiations are often fraught with emotional intensity, can help sharpen the focus on the interests of the other party to better balance perceptions.

If the negotiation doesn’t appear to be going anywhere and your prospect is behaving like a bully, you might feel angry and frustrated. You may already have considered simply agreeing to their demands. In difficult negotiations, there are four vital behaviours that can increase your resourcefulness and consequently your opportunities for getting to “Win-Win.”

1. Manage your emotional state
Build rapport by matching the other person’s style, pace and approach until you have achieved a ‘connection’ Personalize the negotiation by using “I” rather than your organization’s name. This demonstrates your belief in your proposal and highlights your credibility.

In the face of feelings like anger, disappointment, frustration, confusion, and resentment, we often react without thinking. In such a situation mentally detach yourself and think about it before you respond. It helps to reframe attacks and tactical manoeuvres as feedback that the other person’s interests have not been fully acknowledged. Stay focused on your goal of reaching an agreement.

2. Look for quick mutual wins to build the belief “we can agree”
The more abstract your communication the more likely you are to reach agreement. Therefore, seek to gain agreement at an abstract level first and then get into the detail.

For example, if two people wanted what appears to be very different things, such as a) nuclear disarmament and b) more resources spent on defense, if you looked at finding out both sides highest intention, you may discover that ‘peace’ was the desired outcome for both people. Therefore, at this abstract level they have found agreement so the negotiation can continue by gradually getting more detailed.

Questions that chunk up your prospect into the bigger picture include:
- For what purpose?
- What’s your intention behind (negotiating point)?

Seek to address the easy/quickest areas of agreement first to reinforce the process of agreement is simple and straightforward. If you discover an area where agreement may not be reached quickly then agree to leave it until later. If some points become contentious it can help discussions if you both move your body, because the mind and body are connected, physical movement helps to create mental movement. That’s why a walk can work wonders during tough negotiations. Provide regular summaries of what you have both accomplished to install the belief that the negotiation is making progress.

Some sales people write out all the points to be negotiated on separate sheets of paper, then as each point is agreed they move the paper to a different place, so that the buyer can physically see the progress being made which serves to motivate the entire process.

3. Use active listening skills and ask questions to give you a greater understanding of the other person’s viewpoint
Giving good attention to people makes them more intelligent. Poor attention makes them stumble over their words and appear stupid. You are best positioned to change someone’s mind after you have listened to that person. People tend to close down and stick to their position until they feel heard. The goal of active listening is for you to hear and understand other people – their words, thoughts, and feelings, and to let them know you’ve heard and understood them.

Acknowledge their motivations, feelings, and point of view, even when you don’t agree with what they are saying. Your goal is to understand the message, not judge the validity of what they say.

4. Build trust by negotiating fairly
Demonstrations of power erode trust. If you are on the receiving end of this type of behaviour, describe your observations, and the consequences of continuing the current process. For example: “You know you’ve named what seems to me a low price, and so now I’ll name a higher price, and then we’ll each insist on our position until one of us gives in. I don’t find my best negotiations work like this.”

Then propose a different way to proceed, for example: “It would help me to understand the criteria of a fair offer if we could take a look at some of the relevant standards in this industry.” Before beginning the negotiation it can help to agree the ground rules and stick to them. Act with integrity and hold a healthy respect for the intentions of the individual you are negotiating with.

There is always a reason why a point of negotiation is important to the buyer and if we can appreciate more about their underlying reasons, this knowledge can be used and acted upon.

Strong negotiation skills are absolutely fundamental to becoming a top 5% sales player, so my advice is, do work hard to hone your skills.

News: A good friend of mine looked at the list of Associates lined up for my new consultancy today and remarked that it reminded them of a Pro-Bowl team – I think that is a huge compliment, and you’ll find out for yourselves on June 12th!

Most people are familiar with the old saying, “Easy come. Easy go” In the sales world we often observe that sales people who experience success quickly falsely assume that the sales profession is going to be easy.

After a month or two however, those fortunate few often reach a different conclusion. Without much sweat equity invested, they head off and look for the next rainbow. If only we could teach a new saying, “Easy come. Forget That” We may not be familiar with that saying, but we can look at a 19th Century opera composer who expressed it and set the example we may well want to copy.

After experiencing a degree of success with his very first opera, a young and unknown composer, Giuseppe Verdi, hit the big leagues by receiving a contract to compose two more operas for the most famous opera house in Italy – La Scala or to give it it’s proper and original name, Teatro alla Scala.

Talk about a winning sales presentation! One could certainly say that his success came quite easily.

Anything But Easy:
Verdi’s next opera was to be an “Opera buffa” a form of comedic opera, but the life events that preceded the opening night of that opera were anything but comical.

In August 1838, Verdi’s 16-month old daughter died suddenly. Just fourteen months later, his 18-month old son died of bronchial pneumonia. Only eight months after the death of his son, Verdi’s wife died after an illness of just five days. Within twenty-two months, Verdi’s entire family was wiped out. Imagine trying to write a comedy while the family members around you are dying one after another!

Verdi’s first success might have come easy to him, but the bad reviews he received from his second opera hardly sent him away crying. Instead he dug in his heels and decided never to pine for the approval of his critics. From that disaster he developed an intense emotional independence: Now there’s something all sales professionals can use – emotional independence.

One of the Great Secrets of Successful Entrepreneurs:
In the sales business, it’s easy to see our prospects as the critics that hold our fortune in their hands. If our prospects tell us “No” we think the die is cast.

Time to let Verdi teach you one of the great secrets of successful entrepreneurs! Buck up, spit in the eyes of your critics (figuratively speaking, of course!) and decide once and for all that the only opinion that matters is your own.

Verdi cared little about what the critics said and he learned to face failure and success with equanimity.

One of his famous letters in its entirety simply said, “La Traviatta last night? a fiasco. Was it my fault or the singers? Only time will tell.”

Time told all right. Verdi is considered by many to be the greatest of all the Italian opera composers.

Puccini moves me, but Verdi inspires me and he is certainly my personal favorite.

I believe that we should all learn to face up to a poor result (note that I never refer to failure) and success with equanimity. That is with poise, with imperturbability, with (dare I say it?) confidence.

Let poor results be your instructor. Be willing to learn what you need to learn from each of them and then take three more giant steps forward.

It’s not the approval of the critics that we need to succeed; it’s the approval of one infinitely more precious. It’s the approval of someone who’s been with us for every moment of every day of our entire life.

Why not do what I do and end each day by giving yourself the critique you long for. It goes something like this: “I did the best job I knew how to do today. Well done!”

News: Thanks to all of you who requested details of our new “Sales Team Audit” We go live with it when we launch the new JFA site on June 12th, but I’ll try and send you all a pre-release prospectus.

It is a harsh fact but the reality is that not enough companies have learned how to employ sales training as a strategic tool: Those that have are leaders in their industries, offering their shareholders maximum return on investment, are able to quickly adapt to changing market conditions, are respected by their customers, and provide consistent sales performance. The sales people that work for those companies are motivated and stay in their jobs longer.

Quite often sales managers and executives don’t have the time and experience to do this correctly. Companies with internal training departments do provide guidance, but sales training is quite different from designing and delivering training to other constituencies within an organization, such as customer care, technical support, or human resources.

The first step for any company deciding to make a change in their sales approach is always an assessment of the situation.
• What processes and methods are currently being employed by the company?
• What has their sales performance been?
• What percentage of sales people are delivering against plan?
• What are the sales team’s strengths and limitations?
• What are the biggest obstacles to success?
• How dynamic or stable is the company’s environment?
• What are the practices and expectations of the buyers?

These are only a few considerations.

Designing or adopting a sales methodology is critical. Without that methodology in place, training is a tactical attempt to fix a larger problem. The selling methodology must be developed based upon the company’s unique situation—their market, their customers, how those customers buy, the complexity and price levels of the products and services the company offers, competitive pressures, reporting requirements, the participation of partners, the skill level of their current sales people, etc.

The primary objective of creating an individually tailored organizational development program has to be: “To achieve consistently superior results through the performance of every key individual” - after all, our people are our most important and indeed expensive resource; it therefore makes sense for us to want to see a full and proper return on that investment.

Specifically, we should seek to achieve optimum performance levels via a process and an all-encompassing framework for defining performance standards. This involves assessing, appraising, developing, implementing, reviewing and providing continual feedback on performance.

Emphasis is placed on creating an environment in which the ‘can do – will do’ mentality thrives and becomes the norm – success and achievement are expected and as a consequence are much more likely to happen.

This total approach enables forward thinking organizations who are committed to looking ‘outside the square’ and who are not afraid to mentally cross bridges that that their competitors have not even identified, to enter the land of “me – first” rather than the land of “me – too.”

It also offers the opportunity to develop excellence in the performance of the company’s teams and build the capabilities necessary to consistently over–achieve short, medium and long term objectives.

In my view, we should never lose sight of the following premise.

Premise 1: Whatever got you where you are to-day will not be sufficient to keep you there.

Premise 2: You can only succeed in business to-day if you understand what you are doing, how you are doing it and why you are doing it.

Premise 3: It is difficult to control external events if you do not have control internally.

Premise 4: Being competitive is an ongoing process not a single event.

A crucial first step in adopting the “total approach” is a full independent sales team audit, and you may be interested to learn that this is one of the first online services my new consultancy will be offering when we launch on June 12th: This exercise is designed to save companies huge amounts of money they might otherwise spend on ineffective, irrelevant or inappropriate sales team development initiatives.

More details soon … or if you would like to receive pre-launch details, please email me at jf@jonathanfarrington.com

News: If you missed the guest post yesterday and you live/work in Europe, please scroll down, as I have twenty complimentary passes for the upcoming Sales 2.0 Conference in London on June 7th – but be quick”

It was only a matter of time before the highly successful Sales 2.0 Conferences made it across the “Pond” and June 7th is the date,London is the venue.

Why London, and why this year? Larissa Gschwandtner provides the answers …

“During the last 2 years we have seen an increasing interest and demand from business executives in Europe to understand and leverage technology within their sales organizations to improve overall sales effectiveness. From our 2012 survey done in conjunction with Frost & Sullivan of global sales leaders, we discovered their top 5 challenges are:

1. Implementing lead generation strategies
2. Aligning the sales process with customers’ decision-making behavior
3. Enhancing sales reps’ productivity (focusing on the highest-value activities)
4. Integrating win/loss analysis into sales strategies
5. Responding to pricing pressures from competitors, the market, and customers

The June 7th event will aim to provide strategies to overcome those and other key challenges. We saw the highest demand for the event in the UK so we chose London as the location for the first event.”

And here are the full details …

Accelerate Sales Growth through Strategic Leadership

The Sales & Marketing 2.0 Conference, London, is produced by Selling Power magazine – the leading global publication for sales management executives.

Topics will focus on sharing ways business executives can:

• Strategically align sales and marketing departments.
• Enhance sales force effectiveness by leveraging key technology solutions.
• Adapt to shifts in buying cycles and customer behaviors.
• Incorporate social communication tools into your current sales methodology.
• Track, measure, and analyze sales performance to increase sales force effectiveness.
• Review the Agenda >

Attendees will include senior-level executives in sales, marketing, or sales operations. (CSOs, VPs of Sales, VPs of Marketing, VPs of Sales Operations, Directors of Sales/Marketing/Sales Operations/Demand Generation, or other executive-level leaders in sales and marketing).

Use this code, s2cuk12topsales, to book your place and you will receive a £50 discount.

See registration packages >

If you are a Sales or Marketing leader, I have 20 FREE passes to give away - please email me on jf@jfcorporation.com

I have absolutely no doubt that it will be an unqualified success, and I am disappointed that I will not be able to attend personally – I will be in Poland and the Ukraine for you know what!
JF

In an inbound marketing world, is there still need to call people? This is the current question on many sellers minds and one that deserves some ongoing discussion.

Of all the ways we have seen people actually talking to prospects, it most often is in a combination of the following:

1) Simple web research

2) LinkedIn or other warm connection

3 )Have data and knowledge of your prospect’s world

4) Use of  the telephone

Let’s dive into each of these and see what the trends are.

Simple, quick, web-based research is extremely important when you are calling prospects. The worst calls you can receive (or emails, for that matter) are when you feel like a name on a list, or a number in someone’s dialing log. I don’t want to be someone’s 24th “talk-to” – I want to be contacted by people who can add value to the work that I do, or who can add value to my life or community.  Most likely you feel the same way, and more importantly, so do your prospective customers.

This means that you need to do research, but don’t get stuck in research mode – a “one minute” rule can work well. When you see someone on a list, go quickly to their website to do a one-minute overview.  Note what it is that their company does and what their title is. A look at someone’s website gives you an idea of company size, professionalism, strategy, and often mission, vision, and values. You can immediately see if they are public or private, if they use video, social media, and how current and relevant they are.

One minute goes quickly – but in our strategy, just jot a note on paper or on Evernote, going down a list of companies you are looking up. If you have a CRM system, do research first, going through 20-30 companies and jotting down your “one minute impression” of their digital footprint. Now you have something to talk about when you connect.

Next, do a LinkedIn search and see if you are connected to this prospect or someone at their company. To be good at this, first get well-connected on LinkedIn and have a paid account to really benefit from all of LinkedIn’s research tools. If you are skeptical, upgrade your LinkedIn account for a trial period, such as 3 months, and see how it helps you connect to those you don’t know.  Be proactive when you upgrade – it will do you no use if you don’t experiment and use it. Last week a client wanted to connect to someone at a large, privately held corporation. I typed in the company name and found that I had 42 connections to people who work there or who had recently left. The breadth of connections I could make to get to our desired contact surprised even me. By using a strong or weak link, you can connect easier to someone you do not know. This makes your call a warm call and not a cold call. It totally transforms your approach and people are much more likely to talk with you. (also note what NOT to do on LinkedIn here from a previous post.)

Have data and understanding about their industry to leverage in your call on why it would be good to speak further. Remember that conversations are not about you telling a prospect all the features and benefits of your products. Those days are SO over, folks. You are simply working to show enough value initially through insightful observations that pertain to their world to get permission for a longer conversation. That’s the “sale”. Stop trying to purge all of your pitch in a 60 second voice mail. Instead leave an 18 second one that causes interest.

Next, pick up the phone and make some calls to people. We do this every day, and regularly reach people we are trying to connect with. It is not always easy, but through various strategies we are successful. If nothing else, you can leave a brief, simple, branded voice mail that let’s someone know you are looking to connect with them.

The phone is just one tool in your toolbox. Use an inbound strategy (we use Hubspot) – just don’t think that the phone is obsolete. It isn’t.  You still need to talk directly with people  to see if what you offer is a good fit to solve their business issues.  We are making warm calls, and in some cases cold calls. Why do we get through?

The reason you can still reach some prospects by phone is because you can clearly convey a valuable reason for them to speak with you.

Example: A marketing executive  prospect works for an electric utility. A client has a patented technology that helps electric utilities increase revenues in a revenue-flat period when some utilities ratings are actually being downgraded.  There is great benefit for any visionary leader in a utility to see what this technology is about because at the very least, some ideas around growing revenues may happen. At most, the two could partner for great benefit. When presented this way, we nearly always get a return call or an e-mail telling us when to call or an alternative way to connect.

Many salespeople have call reluctance and so they don’t use the phone much anymore. This is a big mistake, as there are a glut of e-mail messages  – but by using voice mail and e-mail together you improve your results

Other Ways to Connect:

Think multi-faceted strategy when working to connect with prospective customers.  In some tech marketplaces sales reps are texting prospects – almost always once rapport is established. Prospects are getting calls on their cell phones. No matter what strategy you use, show value immediately, respect your prospect’s time, and make it easy to follow-up.  Always set a next action.

How are you connecting with your prospects? Are you connecting? Post your tips and ideas as comments. We’ll create a follow-up post and give attribution to those who offer sound ideas.

Of all the ways we have seen people actually talking to prospects, it most often is in a combination of the following:
1.Simple web research
2.LinkedIn or other warm connection
3.Have data and knowledge of your prospect’s world
4.Use of  the telephone

Let’s dive into each of these and see what the trends are.

Simple, quick, web-based research is extremely important when you are calling prospects. The worst calls you can receive (or emails, for that matter) are when you feel like a name on a list, or a number in someone’s dialing log. I don’t want to be someone’s 24th “talk-to” – I want to be contacted by people who can add value to the work that I do, or who can add value to my life or community.  Most likely you feel the same way, and more importantly, so do your prospective customers.

This means that you need to do research, but don’t get stuck in research mode – a “one minute” rule can work well. When you see someone on a list, go quickly to their website to do a one-minute overview.  Note what it is that their company does and what their title is. A look at someone’s website gives you an idea of company size, professionalism, strategy, and often mission, vision, and values. You can immediately see if they are public or private, if they use video, social media, and how current and relevant they are.

One minute goes quickly – but in our strategy, just jot a note on paper or on Evernote, going down a list of companies you are looking up. If you have a CRM system, do research first, going through 20-30 companies and jotting down your “one minute impression” of their digital footprint. Now you have something to talk about when you connect.

Next, do a LinkedIn search and see if you are connected to this prospect or someone at their company. To be good at this, first get well-connected on LinkedIn and have a paid account to really benefit from all of LinkedIn’s research tools. If you are skeptical, upgrade your LinkedIn account for a trial period, such as 3 months, and see how it helps you connect to those you don’t know.  Be proactive when you upgrade – it will do you no use if you don’t experiment and use it. Last week a client wanted to connect to someone at a large, privately held corporation. I typed in the company name and found that I had 42 connections to people who work there or who had recently left. The breadth of connections I could make to get to our desired contact surprised even me. By using a strong or weak link, you can connect easier to someone you do not know. This makes your call a warm call and not a cold call. It totally transforms your approach and people are much more likely to talk with you. (also note what NOT to do on LinkedIn here from a previous post.)

Have data and understanding about their industry to leverage in your call on why it would be good to speak further. Remember that conversations are not about you telling a prospect all the features and benefits of your products. Those days are SO over, folks. You are simply working to show enough value initially through insightful observations that pertain to their world to get permission for a longer conversation. That’s the “sale”. Stop trying to purge all of your pitch in a 60 second voice mail. Instead leave an 18 second one that causes interest.

Next, pick up the phone and make some calls to people. We do this every day, and regularly reach people we are trying to connect with. It is not always easy, but through various strategies we are successful. If nothing else, you can leave a brief, simple, branded voice mail that let’s someone know you are looking to connect with them.

The phone is just one tool in your toolbox. Use an inbound strategy (we use Hubspot) – just don’t think that the phone is obsolete. It isn’t.  You still need to talk directly with people  to see if what you offer is a good fit to solve their business issues.  We are making warm calls, and in some cases cold calls. Why do we get through?

The reason you can still reach some prospects by phone is because you can clearly convey a valuable reason for them to speak with you.

Example: A marketing executive  prospect works for an electric utility. A client has a patented technology that helps electric utilities increase revenues in a revenue-flat period when some utilities ratings are actually being downgraded.  There is great benefit for any visionary leader in a utility to see what this technology is about because at the very least, some ideas around growing revenues may happen. At most, the two could partner for great benefit. When presented this way, we nearly always get a return call or an e-mail telling us when to call or an alternative way to connect.

Many salespeople have call reluctance and so they don’t use the phone much anymore. This is a big mistake, as there are a glut of e-mail messages  – but by using voice mail and e-mail together you improve your results

Other Ways to Connect:

Think multi-faceted strategy when working to connect with prospective customers.  In some tech marketplaces sales reps are texting prospects – almost always once rapport is established. Prospects are getting calls on their cell phones. No matter what strategy you use, show value immediately, respect your prospect’s time, and make it easy to follow-up.  Always set a next action.

How are you connecting with your prospects? Are you connecting? Post your tips and ideas as comments. We’ll create a follow-up post and give attribution to those who offer sound ideas.

Lori Richardson is an engaging B2B sales trainer, blogger, sales consultant, and speaker who helps inside sales people with tactical, simple ways to grow revenues. Her motto: Keep your focus, keep it simple, track your metrics, and make a 1% improvement every day. You can find out more about Lori here – http://www.scoremoresales.com

“A foolish consistency is the hobgoblin of little minds” – Ralph Waldo Emerson

For “foolish consistency” you could very easily read “dull routine.”

Routine – doing things by habit, subconsciously, without thinking – is most certainly the enemy of success.

For example, after six years of posting to this blog, I have only ever once considered that it was a routine; a duty; a chore. Not bad after almost 1500 posts?

You see the human mind is a computer – you program your computer by the input you feed into it; learning, knowledge, experience and so on.
If you program your mind with images of failure, you will fail. Conversely, if you build a bank of success images, your computer will direct you to success.

How do you build and input images of success into your computer? By creativity…by thinking.

The fruit of thinking is knowledge; and knowledge is the medium from which skills are built.

In skills learning, there are four steps:

Step One:
The Unconscious Incompetent. They don’t know that they don’t know. The salesperson that is making mistakes, but is completely oblivious of them. This doesn’t just apply to salespeople of course, but sales leaders and even so called sales “gurus” who have become totally wrapped up in their own self-importance!

Step Two:
The Conscious Incompetent. They know that they don’t know. This is the beginning of wisdom. The salesperson that is aware they are not cashing in on their full potential and wants to learn how to improve.

Step Three:
The Conscious Competent. They have learned and are aware of what they have learned – and they use it. They know why. The salesperson who knows how to make a successful approach call and can program and execute their proposal and business case to achieve their objectives.

Step Four:
The Unconscious Competent. They have learned so well that they use their knowledge with a semi-automatic skill. Their skills have reached a level where they are no longer self-centered. They are free to devote their efforts to the needs of others. The professional salesperson who does the right things to get results, but functions without conscious attention to what they are doing or why.

Note that I say semi-automatic. Even the Unconscious Competent should have the ability and the sharpness to call forth self-awareness.

Purposeful self-awareness, plus a knowing application of skill, generates maximum personal horsepower.

The handmaiden of creativity is imagination and imagination is the well that brings forth the new ideas that are essential to our growing success.

News: The end of another frenetic week at “JF Control Center” We have been busier than the busiest people who have ever been busy, and it’s a chance to renew the saw; recharge the batteries etc. etc.

Have a great w/e wherever you are – there will be a couple of guest posts here for you, should you feel inclined to pop back - JF

Many years ago, I realized that my organization - like most others - occasionally suffered what is commonly known as “The Peak and Trough Syndrome” or more usually, “Feast and Famine.” However, me being me, rather than blithely just sit back and accept it as a fact of commercial life, I determined to challenge it and front it head-on – this is what I came up with:

The Sales Cabinet concept is a sophisticated process for analyzing, planning, directing, and monitoring the activity of a sales team. It is an essential tool for setting sales policies and the management, at whatever level, of a sales team, if not every sales call produces an order and there is a time lag between the first contact with a potential customer and that company placing an order. SC is also a valuable tool for marketing and business development personnel.

The Dimensions of Sales Cabinet:
Sales Cabinet is an imaginary four drawer filing cabinet and each drawer represents not only a stage in the buying cycle, but also the critical tasks a sales team should be performing if they are operating in a “balanced” mode. The aim is to elevate as many of the inhabitants of the bottom drawer up to the top drawer as possible, whilst continually finding replacements for them.

The Buying Drawers:
We have two buying drawers - the top two. In the very top one, we keep our long term stable partners. We might well have preferred supplier agreements with them or a clearly defined and established purchasing history.

In the second drawer, we place the less well established clients; the occasional buyers or the one off buyers. A great deal of purposeful, strategic, objective-based selling can and should be done within these two drawers.

In the precarious second drawer of the cabinet, every piece of business has to be fought for and often secured through sacrificing margin. Whereas in the secure environment of the top drawer, the inhabitants respect the added value we bring to the relationship and seek stability and value for money, rather than lowest price. However, developing and promoting Drawer Two occupants has obvious benefits to the growth and profitability prospects of the Company.

The Working Drawer:
In Drawer Three, we keep our prospects, potential customers who we have visited and qualified, but have yet to win the first order. Though this is a crucial part of the development of an ideal customer base, sales work in the Working Drawer is, in general terms, the least cost effective unless rigorous qualification processes are followed.

Its importance and its costs make it, therefore, yet another important focus for the Sales Manager. What can we do to heighten our success with a major sales opportunity?

When are we best to back off?

How can we capture big opportunities more quickly? Etc.

The Marketing Drawer:
Drawer Four, is where we keep our suspects - those potential opportunities identified but not yet visited or qualified.

As with most things in life, the more work that is put into the preparation phase of the sales process, the less effort will be wasted in the long-term.

The selection of the right opportunities from the market place can ensure better sales, better profits and can reduce the cost of the sales work. Selection criteria have to be established and graduated by experienced sales personnel. Once in operation and proven, their continued use can be maintained by other members of the organization who will develop, to a much higher level, the specific skills needed. Banks of qualified prospects can be built up if appropriate – ready for a concerted attack on a targeted part of the market place.

Summary:
When I first designed Sales Cabinet, I realized just how important it is that balance be maintained between the four drawers (where market conditions permit).

Excessive top drawer activity will constrain the growth of the business into those areas that are identified as the opportunities of the future. It is also a symptom that the organization has got itself into a rut or a ‘comfort zone’; that the communication of policy is poor; that management is not controlling the work, or that people lack the confidence to tackle new areas (or a combination of all of them).

Too much emphasis on the bottom two drawers is inefficient and will dramatically reduce the potential for growth, will increase the cost of sales unnecessarily and could well lower the reputation of the Company.

Sales Cabinet has since been successfully implemented by thousands of companies around the world – it works!

News: I wanted to point out the three important buttons in the top left-hand corner: If you would like to link with me on LinkedIn; or if you wish to follow me on twitter; or to save yourself the need to keep popping back, you can use the RSS feed. Most of all, if you enjoy my posts, do please share by using the buttons below – thanks! – JF

Only now is the notion of ‘emotional intelligence’ becoming widely understood. For the leaders of the future, it is likely to be as important as a high IQ.

In his ground-breaking 1996 book, “Emotional Intelligence,” the American psychologist Daniel Goleman explored the issue of personal and professional effectiveness. He argued that in a business world too often obsessed by cold analysis, the emotional climate is more important to the success of a leader than previously recognized.

At senior levels, ‘emotional intelligence’ rather than ‘rational intelligence’ marks out the true leader: “The qualities of leadership and the quality of the heart are largely the same.” This may explain why someone like Branson, who twice failed his elementary mathematics exam, can make a better leader than someone with a degree from Harvard Business School. Branson’s ‘emotional intelligence’ – his ‘people radar’ – is more keenly developed.

According to Goleman, studies of outstanding performers in organizations show that about two thirds of the abilities that set star performers apart in the leadership stakes are based on emotional intelligence. Only a third of the skills that matter relate to raw intelligence (as measured by IQ) and technical expertise.

“Our emotions are hardwired into our being,” Goleman explained. “The very architecture of the brain gives feelings priority over thought.” There is a sign in Harvard’s rat lab that says: “Rats under carefully controlled conditions will do any damned thing they please.” The same is true of human beings. Leaders ignore emotions at their perils.

Most important of all, the role of leaders in developing the next generation has too often been neglected. If we are to grow as a society, this must be the priority for the future. As Sir Adrian Cadbury, the former Head of Cadbury Schweppes, has observed: “Good leaders grow people, bad leaders stunt them; good leaders serve their followers, bad leaders enslave them”

News: Lest you should forget, my new consultancy launches on June 12th, and me and the elves are currently burning the midnight oil in readiness: The twelve Associates are on board, and we have finally agreed on the site design….. exciting times!!

Last December, I was asked by a number of people to make some predictions for 2012: I could very easily have talked about my favorite topic right now, i.e. the rapid transition towards inside sales, or the demise of “commodity salespeople” or … the list is quite long. Instead, I took a more global view, to try and understand what was likely to happen with the economy – always a very tricky thing to forecast, which is why traders in “futures” are paid so much money. But actually, the economy directly affects all of us who operate within the sales space.

The predictions below were for openview Labs, and this is what I said …

“I think sales in most sectors next year are going to flatline, despite the optimism of many of my learned and esteemed chums. Here’s why …

Most observers from across the pond in North America are probably viewing the financial debacle − which the Eurozone is fast becoming − as a “not in my backyard, so not my problem” situation. The reality is that no other economic relationship in the world is as integrated as the transatlantic economy. The E.U. and U.S. economies account together for about half of the entire world GDP and nearly a third of world trade flows. The transatlantic relationship also defines the shape of the global economy as a whole, as either the E.U. or the U.S. is also the largest trade and investment partner for almost all other countries in the global economy.

My personal view is that the total disintegration of the European community is inevitable; eventually, taxpayers in the northern European countries will grow tired of standing by and watching their governments continue to prop up the economies of southern European countries, who they perceive to be lazy and incompetent. They will adopt a far more “selfish” and independent stance, which will put money back into their own economies, increasing investment in their own infrastructures.

This will lead to a “two-tier” Europe, which in turn will cast countries like Greece, Spain, Portugal and Italy adrift, leading to potential bankruptcy – and considerable exposure for both American and European banks, who have been lending them money – albeit at extortionate interest rates!

I therefore believe that 2012 should be a time of consolidation and preparation for what’s to come in 2013.”(You can read all the predictions over at openview http://labs.openviewpartners.com/sales-experts-share-their-predictions-for-2012/)

This weekend, Europe took a giant step towards calamity: Francoise Hollande became the new French president-elect, after a massive 90% plus turnout. The reality is that at least half of his votes were gained from an electorate disenchanted with Sarkozy, not because they have faith in Hollande. And he wasted no time in outlining his primary objectives “M. Hollande has vowed to rework a deal on government debt in Eurozone member-countries to focus on promoting growth.” (BBC)

M. Hollande has called for a renegotiation of a hard-won European treaty on budget discipline championed by German Chancellor Angela Merkel and M. Sarkozy.

Merkel congratulated the president-elect by phone and invited him to Berlin to hold talks soon, but she warned the fiscal compact was “not up for grabs”. So we can expect a head-on clash – because she was, co-incidentally, one of Sarkozy’s most prominent cheer-leaders – but she now stands alone, bereft of her pro-austerity partner.

To make matters worse, Greek Centre-right head Antonis Samaras has said he cannot form a coalition government, dealing a blow to backers of the country’s international bailout. His New Democracy emerged as the biggest party after Sunday’s vote, but he said a coalition was “impossible”.

Far-left group Syriza, which is opposed to austerity measures, will now try to form an anti-bailout coalition. End result? Nobody gets their money back. That is the money you and I – indirectly – have paid them via our taxes.

This means that voters in Greece, France and Italy have all largely swung in favor of anti-austerity candidates this week. Expect Spain and Portugal to follow.

They are refusing to take the medicine prescribed, and we can anticipate fatalities. The knock-on effect will be considerable, even in California!!