Wednesday, July 28, 2010

Successful Salespeople Utilize Their “Bucket of Opportunity”

There are lots of buckets; rice bucket, honey bucket, bucket list, ice bucket, backhoe bucket, bucket of crud from the cartoon Beetle Bailey and one that every salesperson should draw from daily, their bucket of opportunity.  A salesperson’s bucket of opportunity is one of the most important buckets in the world.  It contains your future sales, commissions, prosperity and success.  And yet, so few salespeople ever draw from it or even know what it is, where to find it and alas, how to use it.  Every salesperson has their own bucket of opportunity, but they don’t know how to fill it or how to drink from it.  The bucket remains a mystery and a waste for most salespeople.

In the next few moments I will explain the use of a salesperson’s bucket of opportunity by explaining how to fill it and then how to draw three extremely valuable properties from it.

First of all, your bucket of opportunity is filled with every sale you have ever made.  Whether you know it or not, every sale goes into your bucket.  Every act of customer service, quality, attention to detail, kindness, patience, on time delivery, customer satisfaction and every other sales detail appreciated by your customers goes into the bucket.  Once these actions and details go into the bucket, they will stay there until you draw them out.  However, they come out of the bucket in three distinct forms.  They all have equal value and when combined they contain an almost magical synergy.  Here are the three properties found in your bucket:
1. Additional sales opportunities with your customers:  The very best source of new sales is with an existing, happy satisfied customer.  Make sure that you treat your customers well, so they will be both happy and satisfied when you pull them from your bucket.  You have a relationship with these current and past customers.  Therefore, you have a built in advantage in selling additional products and services to them.  They know, like and trust you.  Just like the famous commercials for the Larry H. Miller Automotive Group says, “You know this guy”, which implies a trusted relationship in addition to a quality product and customer centered service.  Take advantage of that relationship between you and your customers in your bucket of opportunity.  Again, the bucket contains your very best next sales opportunity, bar none!
2. Letters of recommendation:  If you have ever read a great letter of recommendation or endorsement of a product or service, it came from someone’s bucket of opportunity.  There are more letters in that bucket than a typical salesperson could ever use.  Trust me on this one, letters sell!  However, most letters of recommendation remain untouched in a salesperson’s bucket.  They don’t realize they are there so they never pull them out and use them.  Don’t flatter yourselves, you are not the best salespeople out there.  It is not even a contest.  The very best salespeople in the whole world are happy satisfied customers who tell others prospective customers to buy your products and services.  Don’t waste the power of a letter of recommendation by leaving it in your bucket.
3. Referrals are the third property found in your bucket of opportunity.  If existing and past customers represent the very best source of new sales, referrals from these customers are the next best source of new sales.  Most people respond favorably to the idea of referrals.  Restaurant referrals, movie referrals, vacation referrals, etc. are part of the human experience.  People trust people that they have a relationship with.  If your customer was happy and satisfied with you, your product and service, it stands to reason that they would be willing to give you a referral to someone they know.  With the referral comes the relationship.  People by people first, thus the value in transferring relationships through referrals.  Referral sales close at a much higher rate than other forms of prospecting.  In many cases, referrals can close at a rate greater than 50%.  Referral sales also close much more quickly.  A referral opportunity will typically close in half the time it takes to close any other prospecting opportunity.  The prospect trusts you and believes you based on the recommendation of someone that they know and respect.
If you will take advantage of the properties found in your bucket of opportunity, you will come away with a new sale, a letter of recommendation, or a referral.  If you are lucky, you might come away with two or maybe all three properties.  The only way you can walk away empty-handed is to ignore the value of your bucket of opportunity.  Begin today by making a list of your current and past, happy satisfied customers and begin calling on them.  Continually fill your bucket through making your customers happy and then draw new opportunities each day from your bucket.

Wednesday, July 21, 2010

10 Things Every Business Owner Should Know About Salespeople

Every once in a while I’ll sit back and ponder my experiences in the world of business from a sales perspective. During these moments of reflection my mind is flooded with memories of the good times and the bad. Sometimes I catch myself smiling as I ponder experiences that were so incredible I find it hard to believe they were real. The pictures of other memories are painfully real, but they are similarly my own. What would have been different then, knowing what I know now, is a constant theme of these occasional moments as my mind drifts through scenes of the past. Another recurring theme focuses on the skills and knowledge of past business leaders I had the privilege of associating with. Here are ten key points that I have learned about salespeople during the course of my truly incredible business career.
1. It’s all about the money. Salespeople should be your highest paid employees. Don’t implement any policies or procedures that will limit a salesperson’s income. Several years ago I literally ran into a close friend of mine at an intersection near my parents home while on vacation. As Tom jumped from his car and I from mine, we embraced, not having seen each other since graduate school. I asked Tom what brought him to town and he replied that he was on an unofficial extended vacation. The president of Bell Helicopter, the company Tom worked for had implemented a new policy limiting the commissions earned by its salespeople. One of the salespeople had earned more commission income the prior year than the president, so he put a cap on the number of helicopter a salesperson could sell before commissions would no longer be paid. Tom had reached his limit by July so there was no incentive to continue working to sell any more helicopters. Thus, the unofficial extended vacation. I worked with a company a few years ago that paid its salespeople a declining commission on their sales. They were paid a 20% commission on the first $500,000 in sales, a 15% commission on the next $200,000 in sales and everything beyond that was paid a 10% commission. No salesperson ever sold more than $500,000 dollars. Why would they work harder to sell more and be paid less? So they didn’t.
2. Salespeople don’t know what they are capable of achieving. Find ways to open the minds of your salespeople to truly comprehend what is humanly possible. I’m often reminded of my clients who have been working hard and making a decent income long before I came on the scene. These are good, hard working salespeople who know that the harder they work the more successful they will become and the more income they will earn. Matt was a classic example of this scenario. He was considered the best salesperson in the company, earning around $100,000 in commissions the prior year. He wasn’t too sure it was possible to sell much more or to increase his commission income. Twelve months later, to his amazement, Matt took home more than three times what he had earned the prior year. We see it every day. Salespeople believing they are doing all that can be done, then discovering what is humanly possible and achieving more than they ever imagined.
3. If you don’t train them, who will. They don’t come all trained and ready to go! There are only a handful of colleges or universities that offer a degree or any significant training in sales. Most sales skills are learned through on the job experience and mentoring. There is no guarantee that this experience is teaching correct principles and skills. In fact, from analyzing the performance of typical salespeople, this form of learning only perpetuates poor skills and bad habits. Take responsibility for training your salespeople to become the professionals you expect them to be. You wouldn’t go to a doctor or use the services of an attorney who didn’t have a formal and accredited education and degree, would you? The best investment you will ever make in your company will be the training of your salespeople. Seriously, if you don’t train them, who will?
4. Like any other employee, if you want results, hold them accountable. Salespeople should monitor their performance each day and be held accountable to report their performance on a weekly basis. The following statement should become an absolute and unwavering principle adopted by every business executive: “Where performance is measured, performance improves. Where performance is measured and reported, the rate of improvement accelerates".
5. Just like anything else in life, you get what you pay for. There is a direct correlation between what a salesperson is capable of earning and the performance of that salesperson. Provide your salespeople the opportunity to earn a great income, without limitations and you will receive unlimited performance. As business owners you make major investments in equipment, technology and services. Why not make a major investment in the people responsible for selling your products and services.
6. High Salaries vs. incentive income. Salaries motivate employees to come to work. Incentive compensation motivates employees to work at their highest level of performance. In other words, if you want to experience the greatest return on your employee investment, pay them a commission. Pay for what you receive, not for what you want. Salespeople want to be paid for performance. That is the only way they feel they can be compensated fairly.
7. Goals are the foundation of performance. All salespeople should establish and work towards the achievement of goals. Goals are a measurement of activity and success. Goals allow people to stretch beyond their normal reach. Setting and achieving measurable, challenging and achievable goals is the single most important activity salespeople can pursue.
8. Praise is a far better motivator than criticism. Several years ago I worked for one of the largest international companies in the world. The president of our division, in a report to the board of directors, mentioned that his management style was based on healthy doses of intimidation and embarrassment. He was brutal to his employees and never took the time to focus on the positives of their performance. I came into the office one day with a client at about 11:00 am. The president of the company noticed me coming into the building and contacted my boss with the instruction to fire me on the spot along with the person I was with. I had been meeting with the client since 7:00 am reviewing the details of a major sales agreement and had then return to the office with the client to finalize our agreement. I had just concluded a fifty million dollar agreement and the president of the company, who ruled by intimidation and embarrassment, could only think of firing me because he thought I was late for work.
9. There are so few truly good salespeople in the world, structure their activities so they can spend all of their time doing what they do best. Don’t burden salespeople with task and responsibilities that keep them from the sales arena. Allow them the time and freedom to do what they do best. Keep them in front of customers and prospects looking for new opportunities to sell your products and services.
10. Nothing else happens until a sale is made. You can have the best “mouse trap” in the world, but until someone buys it, you are no better off than the company that has the worst “mouse trap” in the world. Always be grateful for the performance of your salespeople. Treat them with dignity and respect. This will motivate them to do even better. Without sales, there is no need for any other function in the company. Teach them, train them; hold them accountable for their performance and you will find the success you are seeking.

Wednesday, July 14, 2010

The Three Pillars of Sales Success

You control your own destiny and don’t let anyone tell you differently.  Don’t believe for one minute that you don’t have the power to achieve and become those things that you want.  To think or act otherwise is just an excuse to justify your situational mediocre performance.  To quote Cherie Carter-Scott, “Ordinary people believe only in the possible.  Extraordinary people visualize not what is possible or probable, but rather what is impossible.  And by visualizing the impossible, they begin to see it as possible”.  As salespeople we tend to see opportunity and success in terms of past performance influenced by our peers and their uninspired performance.  We often think in these terms: “If no one has excelled, then it must not be reasonable to expect that anyone truly can”.  Let me describe three pillars of success, that when put in proper perspective and applied, will change your sales career.

Belief:  Belief is the foundation of all we do.  Human nature suggests that we believe what we can see clearly.  Missouri proudly displays the motto on their license plates, “The Show Me State”.  Unfortunately, our beliefs are deeply rooted in our culture and past experiences.  When you don’t believe you won’t take action and action is a fundamental measurement of success.  You need to take time to discover what you believe is possible and then challenge yourself to do it.  You can control your world by reprogramming the way you think.  By changing your operating system you can discover the truth about your beliefs and then alter those beliefs to achieve what you want.  Napoleon Hill through his great insight into human perspective said, “Any definite chief aim that is deliberately fixed in the mind and held there with determination to realize it, finally saturates the entire subconscious mind until it automatically influences the physical action of the body toward the attainment of the purpose”.  Belief is the key pillar for all sales success.

Attitude:  You can change your direction and condition in life by changing your attitudes about your situation.  As you rewrite your attitudes you are programming yourself for greater success in life.  You will discover that your attitude has a far greater influence on your success than your aptitude.  Average people have achieved phenomenal feats due to their positive mental attitude.  “A person’s life is truly what his thoughts make of it.”  Dr. Norman Vincent Peale, referring to this statement said, “This is one of the greatest laws in the universe.  Fervently do I wish I had discovered it as a very young man”.  There is a wonderful quote about attitude that I would like to share with you.
“The longer I live, the more I realize the impact of attitude on life.  Attitude, to me, is more important than facts. It is more important than the past, than education, than money, than circumstances, than failures, than successes, than what other people think or say or do. It is more important than appearance, giftedness, or skill. It will make or break a company...a church...a home. The remarkable thing is we have a choice every day regarding the attitude we will embrace for that day.  We cannot change our past...we cannot change the fact that people will act in a certain way. We cannot change the inevitable. The only thing we can do is play on the one string we have, and that is our attitude...I am convinced that life is 10% what happens to me and 90% how I react to it. And so it is with you...we are in charge of our ATTITUDES.”    –Author Unknown

ACTIVITY: Daily activity is the outward expression of your beliefs and attitudes.  If you don’t believe you won’t take action.  Activity is the vehicle of achievement and that vehicle is powered by belief.  The average person spends only half of the available time pursuing their beliefs.  They neglect to plan and schedule meaningful activities that will lead to their success.  This lack of planning diminishes both attitude and belief and thus creates a welcome host to the debilitating cancer we call complacency.  You should plan and schedule activities each day that will lead you steadily closer to the achievement of those things you believe you can accomplish.  You must monitor your progress daily to avoid the illusion of progress shrouded in the mirage of inactivity.  If you can’t measure your activity, there is a very strong likelihood that there isn’t any.  Put together a plan of action to achieve your beliefs and work on it daily.  By taking action, you will discover what so few people have ever experienced – “The power that lies within”.

Wednesday, July 7, 2010

Become A Doctor of Sales

A sales person is a problem solver.  Diagnosing the prospect leads to solving problems and problem solving leads to sales.  Doctors diagnose, treat and cure.  They want to find the root cause of a condition instead of just treating the symptoms.  No principle could be truer in the world of selling, but so seldom practiced.  Salespeople must learn to diagnose, prescribe and cure the pain of their customers and prospects.  Doctors are trustworthy and believable.  Their main focus is to relieve pain and suffering and then, to promote wellness.  Selling is not an event, but rather a process built on trust.  Just as in medicine, your customers and prospects deserve a thorough diagnosis accompanied with the best prescription for a cure.

As salespeople, you wear the title of doctor of sales.  You need to put your focus on the patient.  Your responsibility is to properly diagnose their need and then prescribe the proper cure.  Contrary to the actions of most salespeople, your focus is not to make a sale, but rather, to solve their problem with your products and services.  If you are unable to provide the proper care and treatment, you must do the same thing a doctor would do.  You must refer your prospect or customer to a specialist who can better care for their particular situation.  You may lose the opportunity to make a sale, but you will forever have their trust and respect.  When the prospect has a future need, they will contact you because of your integrity.

You must earn the trust and respect of your prospects.  If you take a selfish position and try to force fit your product to meet their need, you will lose their respect.  When you put the focus on them and not yourself, they will reward you with the sale.  If you put the focus on the sale they will lose respect for you and look else where for a solution to their need.  You need to reprogram your sales approach to the customer or prospect, not your pocketbook.  Just as animals can sense fear, customers can sense motive.  Once again, let me make it clear.  Selling is all about solving the customer’s needs with the right solution, not about making a sale.  The sale will come naturally as a result of taking care of the customer.  The hidden advantage of this approach is trust and loyalty.  The best way to find success in selling is to build a loyal customer base.  A loyal customer base is established through focusing on the customer’s needs and presenting the very best solution, even if it means a referral to a more appropriate solution.  When you suddenly realize that you are willing to sacrifice making a sale of your own product in order to provide the best solution for your customer, then you will be on the path to becoming a truly successful salesperson.

Here are five points to follow on the path to becoming a doctor of sales:
  1. Change your focus.  Become more interested in helping your customer and prospect solve their needs than in making a sale.  The sale will naturally follow, once you have cured their pain.
  2. Never prescribe before you have diagnosed.  Understanding their pain (needs) is the first and most important thing you can do if your desire is to truly help your customers and prospects.
  3. When you understand their pain, prescribe the correct solution.  Never prescribe your product or service if it is not the best solution.  Making a sale will never justify prescribing an incorrect solution.
  4. Refer your customer or prospect to a specialist if their specific need is beyond the ability of your products and services.  In the world of medicine, a referral to a specialist has become a common practice in caring for the needs of the patient.
  5. Truly care about the individuals and companies you work with.  When they know how much you care, they will naturally reward you with their business.