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Monthly Archives: September 2016

How to Be Disruptive

Business magazines, books, and articles use the word ‘disruptive’ quite a bit to describe an ultimate goal – the domination of an industry or the building of a virtually competition-proof customer base.  It’s an admirable goal and we all want that, don’t we?

The problem is that being ‘disruptive’ in this sense requires the Big Idea.  You have to invent the next iPhone, the next Uber, the next Facebook, etc. It’s a great goal and a great ambition – but I often wonder how much time and energy gets squandered attempting to be “Disruptive” (capital-D), when you could have a lot of success being “disruptive” (lower case-d) by changing the way you sell what you already have.   Yes, you can be disruptive in selling, and let’s talk about how.

In selling, disruption happens when customer paradigms are changed.  What this means is that, for disruption to happen, customers must not only evaluate YOU, but your COMPETITORS, through a different framework than before.

To change paradigms, change the conversation.  In every industry, there is an ‘industry standard sales call.’  It goes something like this, from the salesperson’s perspective:

“So, how are you using my competitor’s products?”

“What do you like about them?”

“What do you dislike about them?”

(By the way, there’s nothing wrong with these three questions – I teach them too – but most salespeople are done at this point; if you learn my program, you’re just getting started.)

“In a perfect world, what would you like to change?”

“The price question.”  I refer to it this way because it’s phrased as everything from “What are you paying now?” to “What’s your budget?”

By now, the customer’s mind is set that there’s really no difference between the person in front of him and the person that sold him whatever he’s buying; hence, there’s only one variable.

If you have the same conversation your competitor has, the only way to differentiate yourself is price.  When salespeople say to me, “But Troy, in my industry, everything boils down to price!” they’re probably right – but they’re also not changing the conversation.  They’re asking the same old questions that their competitors ask, getting the same old answers, and leaving themselves only one place to differentiate.  Price.

So, how do you disrupt?

Ask questions that your competitors don’t ask.  Be inquisitive to the point of OCD.  Know everything you can know about your customer – or THEIR customers.  Use lots of questions that begin with “why.”  Make your prospect dig deep in his or her head for answers that your competitors don’t hear.

Research things that your competitors don’t research – and your customers might not, either.  If you’re going into a business that deals with the public, you should know their Yelp ratings (as well as other review sites) to the decimal point.  You should be able to quote from some notable reviews, or have them printed out and with you.  Are you selling recruiting services?  Be prepared to discuss your customer’s comments on GlassDoor, and how that affects their hiring picture.  Be Brave.  Some salespeople are scared spineless to confront a customer with a low Yelp rating or a bad review.  Don’t be that salesperson.  It’s reality and we sell in the real world.  Maybe there’s a ‘hook’ there that can get you in the door.

Tell Stories.  Stories, as I’ve said before, are one of the most powerful means of communicating customer success – and precious few salespeople know how to do it.  Learn, and get good at it, then use that skill constantly.

Tell them “No.”  Few things are more disruptive than a salesperson who tells a customer “no,” particularly if the customer is asking about price.  “Can I get a lower price?” is usually followed by weasel words like, “Well, I’ll have to check with my boss….” Or “If I could, would you?” This nonsense plugs you into the exact same size hole as your competitors.  Tell them “no,” and mean it.  You have different and better value than your customers; be proud of your price.

Try things.  This sales mindset virtually mandates that you try new techniques and discard the ones that don’t work.  Don’t worry – unless you do something truly offensive, no failure is permanent.  Try new presentations, new benefits, new questions, etc.  Your customers will let you know what works.

I’ve said before that FEAR is the obstacle of all good things in selling.  I mean it.  The reason this approach isn’t tried more often is that it’s safe to go with what’s ‘proven.’  Taking this approach means stepping out of your comfort zone as well as your customer’s, trying new techniques and skills, and making note of what works and what doesn’t.  In essence, you’re letting your customer be your sales coach – and with this comes risk of failure.

The reward, however, is being much, much more than the average salesperson.  The reward is being one of those people that dominates their industry, that is attractive to customers, and that builds bullet-proof customer relationships.  Do you want to be that person?

Seven Core Competencies of Today’s Sales Manager

Seven Core Competencies of Today’s Sales Manager

Many years ago when I was a salesman, one of my greatest ambitions was to become a Sales Manager.  I figured that I’d love the job.  You’ve heard the expression, “Be careful what you wish for?”  This was not one of those times.  I loved being a Sales Manager.  I loved leading a group of salespeople, developing them, watching them grow, and watching the results come up.  In fact, I still love it – it’s just that I get to love it now with many companies at once, rather than one at a time.

It’s been over twelve years since I’ve led a sales force, and the most amazing aspect of those twelve years is how much the job of Sales Manager has changed.  Some of those changes are due to technology, some are due to changes in people, some are just due to changing times.  What is disturbing to me is how many Sales Managers aren’t changing with the needs of the job.  Today’s Sales Manager has different requirements than even twelve years ago.  Let’s talk about the core competencies that will make a Sales Manager successful in today’s world. These are presented in no particular order.

  1. Training and Development. This is still the prime skill set of Sales Management.  The ability to contnue to train and develop salespeople – both initially and on an ongoing basis – is the core of Sales Management.  If you’re a Sales Manager, your job on any given day is to ask yourself, “How can I help my salespeople – or even one salesperson – to be better and more skilled at the end of this day than they are at the start?”  And then, by the end of the day, have an answer to the question.
  2. Understanding of Process. Yesterday’s Sales Manager did things on gut feel; today’s must understand the value and execution of processes and road maps.  Whether we’re talking about hiring processes, sales processes, or coaching processes, the top sales managers understand that good processes (continually refined) are key to increasing productivity in every phase of their sales force’s development.
  3. Talent Acquisition. Note that I said “Talent Acquisition” instead of “Hiring.”  There’s a difference.  Today’s sales manager is always working to upgrade his or her sales force through finding and acquiring new talent and skill sets.  This means being open to the approaches of other salespeople at networking events, trade shows, and even when being cold called.  Although sales managers will excecute hiring processes when needed, they’ll always have their ears and eyes open.
  4. Understands the Science of Hiring. This goes along with talent acquisition, as I mentioned above.  This is a relatively new development.  Fifteen years ago, our primary hiring was on our gut and instincts – and we were wrong more than half the time.  In today’s world, we have scientifically valid psychometric assessments that can bring our hiring accuracy to 80% and above – IF the manager understands how to use them.  Too many managers don’t; many are unwilling to even try.  If that’s you, you’re behind the times.
  5. Is CRM Savvy. By “CRM Savvy,” I don’t mean that the Sales Manager can program CRM, but that the Sales Manager knows how to0 use CRM as a tool for getting the most out of his or her sales force.  That Sales Manager also knows how to manage the sales input into CRM and makes sure that the CRM system is working well.
  6. Is Social Media Savvy. Like it or not, social media is part and parcel of selling and managing salespeople.  It’s a conduit for learning about the competition, about the industry, and disseminating your message to your customers.  One of the best sales managers I know spends the first 20 minutes of each day on social media, on the topics that I mentioned above.  Some days he learns things that turn into sales, and some he doesn’t – but the ones where he does pay for the ones that don’t.
  7. Is Constantly Learning. Here is the scary part for some.  What I’m talking about here are the core competencies of a sales manager TODAY, and as far into the future as I can see.  And you know what?  There could be some Earth-shattering development tomorrow that could change everything….and as a sales manager, you absolutely must be able to change with the times.  I meet many sales managers where my only question is WHEN their learning stopped.  1980?  1990?  2000?  2010?  Whenever it is, if your learning has stopped, you’d better start again.    Your company and your team depend on it.

You might think that I wrote this column for the Sales Managers out there, or for the business owners who employ them.  And, partially, I did.  But I also wrote this for those of you who maybe were where I was in 1997 – working toward that first Sales Management job.  I got it in 1998, but nobody told me what the core competencies were.  I had to figure them out.  Hopefully this shortens your path.

 

 

How to Find the Decision Maker

One of the questions I always get, in nearly any sales seminar or training program (whether the subject matter is related or not), is, “Troy, how do I find the decision maker?”  This is one of those questions that has bedeviled sales reps as long as there have been sales reps, and it shouldn’t.  Actually finding the decision maker in any organization is one of the easiest things you’ll ever do (as I will explain below).

The problem isn’t finding the decision maker.  It’s having the courage to approach the decision maker.  What these salespeople are asking really isn’t “How do I find the decision maker,” it’s “How do I find someone who can help me that I’m not afraid to go after?”  That’s the bigger issue, isn’t it?  The obstacle of all good things in life and in business is fear.  With that said, let’s find that old decision maker, shall we?

First, let’s define our terms.  A Decision Maker is someone who can green light a purchase, or make a change in purchasing decisions, without having to ask anyone else.  I’m always talking to salespeople who claim to have “found the decision maker – he just has to ask his boss.”  Then the boss is the decisino maker, and you’ve been dealing with an influencer.

Now, with that said, let’s understand how purchasing power is allocated in a company.  The power to unilaterally green light a purchase, without having to ask someone else, begins in the corner office and emanates out only as far as the person in the corner office wants it to.

This is a tough concept for many salespeople to get and to implement because of that old ‘fear’ factor again.  Are you dealing with the President or CEO?  Then you’re dealing with the Decision Maker.  Beyond that, you can’t be 100% sure.

Typically, people whose title starts with a “C” are decision makers.  That means, “CEO,” (Chief Executive Officer), “CIO” (Chief Information Officer), “CFO” (Chief Financial Officer), etc.  The exception is when companies give these titles out like candy.  I’ve seen a receptionist titled “Chief First Impression Officer.”  I’m guessing that receptionist, no matter how competent, probably doesn’t have much purchasing authority.  There’s another exception to this, which I’ll deal with in a moment.

People whose title start with a “V” probably have some decision making power.  That is to say, “Vice President of….”  One exception to this would be the banking industry, where half the people in the building are Vice Presidents.  VPs seldom have full purchasing power, even over their own departments and budgets; ‘major’ purchases will still need to be kicked upstairs.

People whose title ends in “Manager” seldom have much purchasing authority, except in very small businesses, or when their title is “General Manager” or “Plant Manager.” Middle managers hardly ever can purchase anything significant.

The final note is this:  Only Presidents, CEOS, and sometimes General or Plant Managers have purchasing authority over more than one department.  This is important if you’re trying to sell cross-departmental solutions.

If you read my articles on “Fred,” (and if you didn’t, go read them now), you know that Fred – your IDEAL customer – always has purchasing authority.  You also know that successful salespeople spend 2/3 of their time or more on Fred.  Here’s a little self test:

How much of your time is spent talking to departmental managers?

How much is spent on departmental VP’s?

How much on departmental C’s?

How much in the corner office?

If you really want to succeed, it should look like this:

Department managers:  10% or less

VP’s and departmental C’s (the roles tend to be similar): 25% or less

The Corner Office:  66% or more

If you’re not getting the results, you need to change your call patterns.  Call on the people who can buy.

NEXT STEPS:

Attend my “21st Century Selling” Boot Camp in Overland Park to learn how to SELL the Decision Maker!

or, if you can’t make it….

Buy My Audio Sales Training Package!

 

Three Steps To Improving Your Customer Service

Sometimes, it’s the simplest things that can change a customer’s experience for the better or for the worse.  I had an example of this a couple of days ago.  A couple of months ago, I bought a used Harley-Davidson Road King.  I love this bike.  I purchased it from an independent (non-Harley) dealer, and bought an extended warranty (again, non-Harley).  On a road trip over the weekend, I had a minor problem with the shifter.  Minor in that I was able to make a few roadside repairs and keep the road trip going – but the ultimate fix would be a warranty job.

Since I hadn’t used this warranty yet, I didn’t know where it was accepted and where it wasn’t.  You’re thinking that I probably should have ascertained this before buying, and you’re right – but I get as excited about buying as anyone else.  So, I decided that the easiest thing would be to go to the company’s website and use their dealer locator.

They didn’t have one.  No way to plug in my ZIP code on their website and find the closest place to get a warranty job done.  OK, no problem.  I’ll call them.  Here’s where it got frustrating.  I first spent nearly five minutes navigating menus (press 2 for, etc), and finally ending up with a receptionist who would direct me to member services…..which put me right back to the receptionist.

Now I’m getting irritated.

After another call, I ended up with a customer service person.  Good deal, I thought.  I’d just explain the situation to her, she could look on her computer, and tell me where to take my bike.

Wrong.

She got flustered, and said that there was really no way for her to find the information but she would talk to people in the company and call me back.

An hour and a half went by.  Now I’m thinking what you’re thinking – I bought a worthless warranty.  There are no Harley dealers in Kansas City that will take my warranty, and now I’m going to have to get a refund on the warranty, perhaps with my lawyer as help.

Finally she called me back, but without any information.  She was having trouble finding out what I wanted to know.  So, I made a suggestion.  How about I tell her the names of the dealerships in Kansas City, and she could tell me if they took the warranty?  She wrote down the names and promised a call back.

Another hour went by.  Now I’m mad.  You would be too.

When the call back came, it was from the Operations Manager, who told me that, as it happened, the closest dealer to my house did in fact accept their warranty.  I thanked her for the information, but asked her why in the world it was such a hassle to find out?  She had no good answer for me.

As I hung up, I reflected on all the times that companies make customer service harder, not easier, by making obvious information difficult to get at.  Take a good hard look in the mirror.  Do you do that?

Here are THREE STEPS to improving your customer service, and creating an experience that will leave your customers with a smile.

  1. Make a list of the most likely information that customers will need when they call your company. (FAQ’s)

  2. Make a list of the most likely people to get that customer call.

  3. Equip the people in #2 with the answers to #1.

  4. You’re done.

As a customer, the most frustrating aspect to dealing with any company is an inability to get answers.  So, why make it difficult?  This is an easy project, and yet I’ll bet that 2/3 of those reading this (at least) have never done it.  And, when your customers struggle to get information, they begin asking themselves “What else?”  As in, “If this is this much of a problem, what else will be problematic?”

Oh, and the story has a happy ending.  I took the bike to the dealer, it’s fixed, the warranty worked, and I’m happy.  But I’m not delighted about the experience and the time wasted, and if I were asked advice on buying the warranty, I’d give less than an unqualified recommendation.