Do you have a burning sales question? Shoot Coach Mike an email: [email protected]
The most recent questions are listed on top...
"Lot's of little customers or just a few big customers?" - Tina B. - Mission Viejo, CA
Ideally some of each, just be careful that your big customers don't account for a large percentage of your total business. I'd rather have a lot of base hits than rely on a few home runs. Using this baseball analogy seems to put it in perspective for me. When players purposely try to hit a home run, they tend to either strike out or fly out (hit a catchable fly ball) more often. Concentrating on putting the ball in play with a single tends to have a higher percentage. After a couple of singles are hit in an inning, players will start to score. Home runs are great when they happen and very exciting to watch - but coaches will tell you that base hits (singles) win ball games.
In addition to being harder to find, sometimes these larger customers may be "too big" and may create additional risks for you as well. Risks can be involved with the execution of the job, the scope of work, or potential loss of the business.
A client recently told me that she would rather have less chaos in her life and more profit. Sound good to you? I like to see my clients make their sales plans through a solid base of small and mid-sized customers. Then, the "home run" big customers are the icing on the cake.
"What are your thoughts on using text messaging to communicate with clients?" - Dan M. - Ontario, CA
If this is what they prefer, and you have built rapport with them - I say go for it. Until you reach that point, I'd stay away from it. Some people just text their family and friends and this could be considered a boundary issue. Also, if they don't know you (or you're not in their phone contact list) they won't know who is texting them - and that could be awkward.
I do suggest you stick with "text book" English for your text messages and keep if professional. Text lingo is not universal, and many text abbreviations mean different things to different people.
"E-mail or V-mail"? - Robin M. - La Jolla, CA
Over time - it could be both. Some people respond well using the phone (or listening to voice mail) while others prefer to see it in writing. This can be based on personality styles and preferences to "hearing" versus "seeing", or it can strictly be based what is a more effective use of time for the person you are trying to reach.
People used to be categorized by industry as to what methods of communication they probably prefer (i.e. engineers may prefer e-mail). While this may still be true for some, we can't assume it's true for everyone in a particular field.
I would use both methods in maintaining contact with your customers and prospects, and keep your message crisp - yet personable. Alternate between these communication types to see how people respond and what they individually prefer. When documenting the contact in your CRM (Customer Relationship Management system) consider tracking the type of contact (i.e. VM = voice mail, LM = left message with a person, EM = e-mail, USM or USPS = old fashioned US Mail) so you can mix it up. Once you reach the person and begin building rapport with them, feel free to ask them what communication method(s) they prefer. Additionally, I believe in leaving a VM rather then hanging up and repeatedly calling.
If you have a relationship established, you may also find other ways people like to communicate (i.e. TM = text message, FB = Facebook, etc). Again, for these methods I strongly suggest that you have a solid relationship in place, and the person has suggested that you use these alternate communication methods. Even though these communication methods may be more informal, I would use main-stream language and stay away from abbreviations (you could use the wrong one - or it may have a double-meaning). This whole double-meaning thing has been a recurring Blog and Twitter topic...
"What's the difference between an 'open networker' and a 'closed networker' when using the social media tools?" - David A. - Flagstaff, AZ
An "open networker" accepts connections from anyone that requests to be connected. The requesting party could initiate contact through a common group that you both belong to, or may have specifically identified you as a potential contact.
A "closed networker" limits their connections to people they know. Both methods are very successful - it's a personal preference.
"I've heard you use the term 'golden hours of selling' can you clarify what these are?" - Linda D. - Scottsdale, AZ
I define the "golden hours of selling" as the best time to be in front of your customers or prospects. In a typical business, this may be Tuesday, Wednesday and Thursday from 9:30am - 3:30pm. This assumes in many businesses that staff or team meetings occur on Monday, that most people have checked-out for the week on Friday, and the beginning and end of each day is for administrative work. If you believe your customer fits this profile, you may want to concentrate your direct sales efforts on the middle 3 days (and clear your schedule of all other activities if possible).
In some industries or locations, these hours or days may be quite different. For instance, contractors in AZ during the summer months are already on the job by 7:00am so you may want to catch them before 6:30am or after 2:00pm. Restaurant managers would rather see you in mid-morning or mid-afternoon (not during meal times). Hotels and hospitals being 24-hour businesses may have other optimal times to reach decision makers.
For best results, I suggest tailoring your sales day to your typical customer or prospect. Be flexible with your schedule, and take care of non-selling activities during off-peak times.
"What tips do you have for using promotional products?" - Bev T. - Phoenix, AZ
Promotional products are a great way to get (or keep) your name out in front of your customers or prospects. Pens, magnets, calendars and sports team schedules are some of the most popular items that are used - but are they sending the right message? Below are some points to keep in mind to make sure these sales tools will benefit your business:
1. Make sure they are some how linked to your business.
Example: A Handyman may want to distribute screw drivers.
2. Make it unique if possible.
Example: Not just another coffee mug or a round stick pen that gets lost in the "the collection".
3. The quality of the product may be linked to your perceived quality.
Example: A pen that doesn't work or the finish flakes off could send the wrong message.
4. If you're doing something time sensitive (calendars or schedules), be the first.
Example: 2012 calendars in late October or sports schedules at least 2 months before the season begins.
5. Include your contact information.
Example: Pick a product large enough with a print area that you can include your phone number or website.
6. Promote your business, not another business (or your competitor).
Example: I was at a restaurant recently where the server gave me a pen to use - that came from another restaurant.
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"Should we be concentrating on our existing customers, or looking for new ones?" - John R. - Pasadena, CA |
"What are your favorite 'sales-related' movies that could provide us with additional insight?" - Amy M. - Mesa, AZ
This question came up after a recent sales skills workshop where I showed a short film clip. Below, in alphabetical order, is list of 10 of my favorite movies that involve sales issues, client management and/or attitude adjustment (attitude is very important in the sales world).
- Apollo 13
- Boiler Room
- Door-to-Door
- Glengary Glen Ross
- Groundhog Day
- In Good Company
- Jerry Maguire
- Pursuit of Happyness
- Rocky
- Wall Street
"I'm being asked to discount my price 'now more than ever' - your thoughts?" - Robin V. Aurora, CO
This issue comes up quite frequently. In many industries, asking for a better (or discounted) price is very common. If this is not the practice in your industry, please keep the following in mind:
1. If you do it once, you'll probably be asked to do it again.
2. How could this impact the relationship with your other customers? Assume they all know each other.
3. If the request has merit, consider asking something from the customer in return. For instance, longer contract, higher volumes, or more favorable payment options.
4. Many times, things on the "back end" can be substituted for price discounts. Some of these things have very little cost associated with them, but have great value to the customer. For instance, helping your customer to set up or program their product, escalated customer service options, delivery options, or different billing options.
5. Consider referring to your price as an "investment" which means that the customer can expect to get a "return" on their investment.
6. Make sure the customer understands the total value proposition of your offer, meaning there may be justification for your price point. (This specific point will be another topic for a future newsletter and we'll continue this based on Robin's question.)
"Customers are asking about pricing on the first sales call (or when we're setting up the appointment), how should we deal with this?" - Ellen R. - Phoenix, AZ
I suggest answering the question when it is asked. Many other coaches and consultants recommend that you respond to your customers or prospects with phrases like "that depends" or "we'll get to that". Personally, I think that if you don't answer the question when it is asked, they may think you are hiding something and may not pay attention to the rest of your conversation.
If you have different levels of pricing for your solutions, you can at least give a range. For instance... "The investment range for our packages is $2,000 - $5,000 and is dependent on your requirements. I'd like to ask you some additional questions to better understand your specific needs." With an answer like this you can still tailor your offer to the customer's specifics; however, you've at least answered the question. If there is a price objection, you'll get it right away and can either choose to defuse it, or understand that there may not be a fit between you and this prospect (which will save you a lot of time in the qualification process). If after your needs analysis you find the project is closer to the $5,000 number (and they push-back since it was at the top of range), you can share with the customer your justification for the proposal (based on their identified needs) or offer other scaled back solutions that may have some trade-offs. If after the needs analysis you find the project is closer to $2,000 number, you'll probably be perceived as a hero.
Please don't hide behind your pricing. Focus on the value that you deliver, and how you can help "solve problems and fulfill needs".
"How technically trained should we be with our product to successfully sell and handle customer issues?" - Betsy H. - Phoenix, AZ
This is a common question and issue with sales people when there is a technical complexity with their product or service.
You need to have a basic understanding of what makes your product or service tick, the customer application you can solve, the value you provide, and how you differentiate yourself from your competition. With that being said, you don't have to be a technical expert if you have a support staff in your company that can back you up. Many sales professionals feel they need to understand more than really have to before they can effectively sell.
Think if yourself as a combination company ambassador and customer advocate. Focus on understanding how your product or service will assist the customer with their needs - rather than how the gizmo actually works. Bring your technical resources to the table when questions exceed your knowledge level. Your customers will appreciate how serious you take their business and their technical questions. The absolute worst thing a sales person can do is try to wing it. Especially in a technical field where the customer may try to test you - and you could end up with a credibility issue.
When I worked for AT&T, I was very comfortable knowing some pretty cool stuff happened in our network. My focus was on the customer issue, and why AT&T was their best alternative. I had some basic knowledge, but when I would draw the application on a white-board, I would represent the AT&T network by drawing a cloud (where all of the AT&T magic took place). My life was truly complete with this limited level of knowledge. If I needed technical support, I wouldn't hesitate to bring it in.
"What are bundled offers?" - Allison T. - Henderson, NV
Bundling is combining offers of different products or services to create additional value for your client, and more loyalty towards your company. Additionally, this may involve Cross-Selling and Up-Selling.
It could be as simple as getting a meal combination at a fast food restaurant (like a hamburger, fries, and a drink), or buying a power tool that is offered with extra battery packs and accessories. We may even see different companies making joint offers together – like a television set manufacturer combining their product with a satellite service provider. Usually, the value of the total package is greater than if the individual products or services were purchased separately. I say “usually” because at times, there may be components of the bundled offer that may not have as much value to the customer. The goal of bundling should be to maximize the value which should create more loyalty from your client.
Sometimes, the value of the accessories can be worth more revenue to the company. For instance, the razor company will make more on the blades, than they will on the razor itself.
From a loyalty aspect, bundling can also reduce your customer turn-over. Insurance companies strive to bundle and cross-sell their customers (i.e. home, auto, and life). The benefits to the customer include additional discounts and a single point of contact. The upside to the company (and potential downside for the customer) is that it’s harder to switch companies. However, this is not a guarantee of retaining a client – poor performance can create a “hostage client” which will be our next topic.
"What is 'Scope Creep' and how can we avoid it?" - Ryan K. - Phoenix, AZ
Scope Creep is when the job or "Scope of Work" changes and the customer expects additional services to be performed within the contracted price.
To avoid Scope Creep, develop a Scope of Work (or sometimes referred to as a Statement of Work) outlining the job. Make sure to clearly specify the services you will provide, any resources that may be required from the customer to complete the project, the outcome/time-frame the customer can expect, and the specific charges for your services. Also, make sure you have a process for notifying your main contact (Decision Maker) of any change requests made from other customer contacts, and an approval process to complete these changes at your specified rate.
"What are your thoughts about drinking alcohol at evening business mixer events?" - Robin K. - Tempe, AZ
This is a real personal call, or may be answered in your company handbook or policy statement. If there is no policy or you work for yourself, I suggest either enjoying a non-alcoholic beverage, or "nursing" a maximum of one (1) alcoholic beverage during the event. Some points to keep in mind...
1. You are always "on duty" and representing your company as well as yourself. Know your limits and stay sharp.
2. Mingle - don't hang out with the same people (a carry-over from my last newsletter on networking tips).
3. Consider continuing detailed discussions about your product or service recommendation during business hours (set a follow-up appointment).
4. Plan on leaving before the event is over - don't be one of the last people there (this goes back to my Fortune 500 days).
5. Consider using the "buddy system" to keep an eye out for your associates or business partners as well as utilize a designated driver.
6. Remember, you're at a "business" event - have fun, yet stay safe & stay professional!
"How long will it take before I start seeing referrals or leads from a networking group?" - Sergio M. Chandler, AZ
It could take up to several months. A few points to keep in mind...
1. Offer to give before you expect to receive.
2. Be engaged, people want to see you actively involved and see if you'll attend regularly before they start referring you.
3. Mingle and meet the people. Don't hang out with the same people all of the time (or people that you work with on a regular basis).
4. Clearly articulate how you benefit others with your product or service.
5. Don't try to "sell" at a networking event. Work on building relationships and rapport. When appropriate, set up a meeting for coffee to further qualify your prospect (don't monopolize their time at the event).
6. Be honest to yourself and others. Not everyone is a prospect for your products or services. If there is not a match, reduce the stress by being up-front with the other person (or handle it professionally if people are up-front with you). Remember, you still can refer people to each other, and create a powerful networking machine.
7. Don't over-extend yourself with networking meetings or groups. Frequency with a couple of groups is better than trying to attend several groups a limited number of times.
"How soon after a trade show should you follow up with new leads?" - Dawn V. - Phoenix, AZ
Generally speaking, I would make the initial follow up contact within a week of the trade show. This time-frame allows people to catch up from the time they were out of their office, but not long enough to forget that they met you.
Some people prefer to send a personalized email first (including a "memory jogger" from your meeting/conversation at the trade show), and then follow up the following week by phone.
When you first meet them at the trade show, you can also ask them at that time, when a good time is to follow up (you may even be able to set a phone appointment).
"What CRMs do you prefer?" - Robin M. - Glendale, AZ
Customer Relationship Management systems (CRMs) come in all sizes, and my recommendations are based on the size of your sales team (and your use).
For individual users, I recommend either ACT! or utilizing the task functionality of Microsoft Outlook. The key for the single user is primarily follow-up.
For 2-3 users (who share information) there are some free web-based tools like FreeCRM.com or Zoho.com.
For larger sales teams, I prefer options like SalesForce.com which has some great forecasting and reporting capabilities.
The message here is to pick a tool that you will be committed to using, and make it the foundation of your sales day. Properly used, a CRM will make a sales person more effective. It also sure beats relying on "sticky notes".
"Your thoughts on Sales Rep commission leveraging versus base salary?" - Martin C. - Mesa, AZ
It could be both, or either - okay let me explain...
Overall, I believe this important decision should based on the sales person(s) responsibilities, and one plan may not fit all scenarios.
If the rep is charged with acquiring new business, I suggest a higher leveraging of commission (with lower base pay). These "hunters" are motivated to bring in the new customer and generally want to be paid and move on to the next opportunity (after the account has been successfully handed off to another rep to maintain the relationship). Hunters tend to be the "best" or "worst" paid sales people on the team.
If your rep is responsible for maintaining existing customer relationships, I suggest a higher base salary (and lower commission). It is critical to keep your customers happy - and is more profitable for the company than "churning" the customer base. The higher base salary compensates these "farmers" for the account management activities that are sometimes harder to measure. Additionally, there should be a revenue component for cross-selling, up-selling and contract extensions.
"Lot's of little customers or just a few big customers?" - Tina B. - Mission Viejo, CA
Ideally some of each, just be careful that your big customers don't account for a large percentage of your total business. I'd rather have a lot of base hits than rely on a few home runs. Using this baseball analogy seems to put it in perspective for me. When players purposely try to hit a home run, they tend to either strike out or fly out (hit a catchable fly ball) more often. Concentrating on putting the ball in play with a single tends to have a higher percentage. After a couple of singles are hit in an inning, players will start to score. Home runs are great when they happen and very exciting to watch - but coaches will tell you that base hits (singles) win ball games.
In addition to being harder to find, sometimes these larger customers may be "too big" and may create additional risks for you as well. Risks can be involved with the execution of the job, the scope of work, or potential loss of the business.
A client recently told me that she would rather have less chaos in her life and more profit. Sound good to you? I like to see my clients make their sales plans through a solid base of small and mid-sized customers. Then, the home run big customers are the icing on the cake.
"What was the turning point in your career?" - Erin T. - Seattle, WA
This one really hurt - but had an impact that still drives me today. Back in late 1984, I was working in "Corporate America" and was distracted by some personal issues. Due to my loss of focus, my sales numbers suffered and I was put on a Performance Improvement Plan (PIP). The consequences of not meeting the requirements of the PIP stated "further disciplinary action, up to & including termination". This was like a cold glass of water being thrown in my face. It also meant that I had lost control of the situation.
We all have issues outside of work, but at the same time we owe it to our employers to be 100% engaged when we are at work. This can be a difficult challenge, and if things are really tough - you may want to consider a short "vacation" or even a leave of absence. However, if we are still working (while we're working through it), we need to some how reach down deep and "check the baggage" at the door before we come to work.
My manager and I had a great relationship, and I know it was hard for her to put me on a PIP. She owed it to the company, herself and to me to take this action (and I do believe I would say this even if it didn't turn out positive - after the initial shock wore off). My manager insisted that she knew I could succeed and she reminded me of my performance in the previous years. It was all about focus and commitment. I had to re-look at my performance goals (both long-term and short-term) and I had to execute on the activities needed to attain my goals. At the same time, I had to be dedicated to my job while I was at work - and get back into control. The "issue" was still in the back of my mind, but if I let it take over, I would lose the control. It was up to me...
My career at that company continued for another 14 years. Overall, my career was very successful. However there were bumps in the road from time-to-time (similar to life in general). Just like driving a car, we need to focus on the goals and rewards that lie ahead on the horizon - as opposed to the "pot holes" directly in front of us. Try to avoid those pot holes and steer around them, but even if you hit one - don't lose your focus on the horizon. Wow - that was deep...
"What qualifies a Prospect to be a Prospect?" - Jana G. - San Diego, CA
To qualify as a Prospect, the three items below are mandatory:
1. A need for your product/service must be established.
2. The contact is the decision maker (or a major part of the process).
3. They can pay for your product/service.
If there is a budget issue (like a fiscal budget), they may qualify as a long-term prospect for the next time period.
If you don't have the three above items, you're dealing with a Suspect instead of a Prospect. Only qualified Prospects should be a part of your opportunity funnel or pipeline.
"What tips do you have for overcoming the 'economy' issue/objection?" - Stephanie H. - Bethesda, MD
This important topic comes up quite frequently. The economy impacts different businesses at different times, and as strange as it sounds - not all businesses are currently experiencing challenging times.
Business owners find that experiencing an economic downturn creates both business challenges as well as emotional challenges. If you can make a positive business impact to your customer, your chances of closing the sale can be greatly enhanced. Challenging economic times often result in customers making emotional-based decisions to "cut costs" everywhere they can. If your product/service is perceived as a non-essential "cost" - you are vulnerable to losing the business.
However, you can articulate the total value of your product/service (beyond the price). By demonstrating that your product/service will be a positive contributor to the customer's profitability, your chances of closing the sale will be dramatically improved. This creates a positive Return On Investment (ROI) that converts the decision making process into a "business" decision rather than an "emotional" decision.
Focus on how you can partner with your customer to create a positive impact on their business's bottom-line.
"After you get a business card, what do you do with it?" - Donna R. - Queen Creek, AZ
Years ago, I used to keep them in a card file or a rolodex (if you're in your 20's, you can google "rolodex" and see what they look like and save yourself a trip to the Smithsonian). When the rolodex got full, I used to rubber band them in stacks. When the stacks got too large, I'd store them in shoe boxes. Unfortunately, this doesn't help you when looking for a card, or the person that gave you their card for that matter.
I recommend that you enter the data from the card into your contact manager (like Outlook) or your CRM database (Customer Relationship Manager - like ACT, GoldMine, Zoho.com, SalesForce.com, etc - these systems are a whole separate issue to be discussed at a later date).
When I meet someone, I make a few notes about the contact on the back of the card. 1 - the date, 2 - where we met, 3 - any follow contact commitments made or pertinent information to remember (i.e. F/U 9-22-08 for coffee to discuss a speaking engagement in Dec). *Please note that "F/U" in my world means "Follow-Up".
I then enter the information from the front and back of the card into my database - and at this point usually discard the card. You can save these cards to use for referrals, or you can copy & paste the contact information from your database and forward in e-mail for referrals (please remember the question from Sept 1 that referrals are a good thing - in either direction). For me it's all about staying portable or mobile. *Another important note to always back-up your database.
"What tips do you have to get past the gate keeper?" - Albert M. - Los Ranchos, NM
These key individuals can provide you with outstanding assistance or prove to be a barrier - a lot of the outcome depends on how we approach them.
They know you're trying to get past them - it's your job. It's their job to screen you, and only let you through if justified. Based on my interviews with over 70 attendants, receptionists and assistants - here's some tips to consider:
1. Treat these people with respect. They're just doing their job like you are.
2. Don't play games with them - state who you are, your company name and/or what it's regarding (not, "It's Bob - he knows what it's about...").
3. Get to the point quickly - avoid chit-chat.
4. Try thinking of them as "gate openers" as opposed to "gate keepers" (positive attitudes everyone).
5. Smile on the phone - we can "hear" a smile.
6. Assume they are the person you are trying to reach - many times they will be - or they can help you get in. (Ever hear of a decision-maker pulling a shift on the phones as a back-up?)
7. Ask them for assistance, or if they can direct you to the right person.
8. Ask to speak to the person's assistant rather than the contact themselves (some of these people are empowered to assist you or schedule appointments for you).
Some bonus tips...
1. If you reach an automated attendant and want to speak to a live attendant - press "0". Many systems have this function programmed even if it's not listed as an option.
2. Try calling before or after business hours.
3. Ask for the sales or accounts receivable departments - these calls tend not to be screened, and may be very helpful to your sales efforts or directing you to the right person (if it's not them).
4. Don't ask for the president of the company when you really don't need to speak to that level (even though we were taught to do this in the '80's).
"Many people use the terms Sales and Marketing interchangeably. How do you define the differences?" - Kendra T. - Scottsdale, AZ
I believe both functions are critical to the success of any business. Simply put, my thought is that Marketing is strategic while Sales is tactical. Put another way, Marketing makes the phone ring, and Sales starts when you pick up the phone. This example works for inbound calls. However, for outbound sales, the marketing efforts will help identify the prospect by targeting demographics and positioning the brand. To further qualify the prospect, the sales efforts will need to specifically address business issues through one-on-one engagement with the prospect. Consultative sales approaches focus on fulfilling needs and solving problems.
Many people attempt to develop a sales plan without having an over-arching marketing plan. Additionally, I've seen many companies rely solely on a marketing plan without addressing a specific sales plan. You need both to consistently make a positive impact to your bottom-line, and I can help connect you to the some of the best resources available.
Think of this equation: Marketing Strategy + Sales Execution = Consistent Revenue.
"How would you clarify the difference between a lead and a referral?" - Marissa W. - Las Vegas, NV
Many networking groups encourage the sharing of leads when they usually mean referrals.
A lead is a tip, and can be as simple as name and a phone number. The person may not even know any more information beyond that. For instance, "I saw a new building going up and here is the name and number of the general contractor". This is still valuable information since the contractor may be a prospect for you (or the contractor may be able to connect you with the tenant of the building).
Taking it a step further, a referral is warm contact from a person that has a relationship with the potential prospect. They will permit you to use their name when you attempt to contact that person (or the prospect may contact you and mention the referrer's name (even better). Optimally, this person could make the introduction call before your call, or even set up a meeting over coffee for the 3 of you. Referrals are "a good thing".