Posted in Art of conversation, Discipline, Qualifying, Re-setting expectations, Sales, Toolkit on May 1st, 2012
Ever had a “groundhog day” sales meeting? You walk away thinking; “Damn, we already had this meeting…we haven’t moved forward. Same old stuff.” We have all made this mistake. Part of it is just plain preparation and being clear on the agenda. But that’s not all. There are two tactics that high-performing sales professionals use consistently; the purpose, benefit, check and pivots. The purpose, benefit, check is the way EVERY sales meeting should open:
“The purpose of our meeting today is to discuss your sales toolkit and how it supports your sales process.
I think this will provide you with a strong sense of how the toolkit could be enhanced to strengthen the sales team (benefit).
How does that sound (check)?
The “PBC” gives you three critical things: aligns your prospect’s expectations with your own, demonstrates that you are prepared and organized, and shows respect for your prospect’s time.
It also points your body down the hill. (What does that mean?) In giant slalom skiing, the racers fly through the gates at high speed. But if you watch them closely, you will notice that their bodies are pointed at the finish line, even as they are subtly shifting their weight to pivot around the next gate. Just like high-performing sales people, skiers know they have to hit all of the gates. They know they can’t miss even one. And they know they have to do this as fast as they possibly can.
Pivots are the same. As mentioned in previous posts, pivots are the transitions you make in a sales meeting to ensure that you are tackling your own objectives. If it is a qualifying conversation (is there any other type?), you are pivoting from budget to timeline, from timeline to decision-makers, and so on. In my experience, sales professionals can make 3 to 4 clean pivots in a sales meeting, and when they do, they walk out having significantly moved the situation forward.
Every sales meeting should be going somewhere. You determine where you want it to go and then you set the course (PBC), pivoting through the gates to get there. As fast as you can.
Have you used “purpose, benefit, check” in a sales meeting? How did it go? Was the meeting more effective because you initiated this process? Let us know via Twitter! (You can also follow Sales Engine CEO, Craig Wortmann, directly!)
Posted in Discipline, Kick in the ass, Lead generation, Sales on April 19th, 2012
I had the pleasure of working with the Kauffman Foundation and their Global Scholars program recently. My favorite part of the entire day was a live cold call one of the scholars made in front of the entire group:
Cold Calling: Marin’s Story
Marin Story Blog Post from Craig Wortmann on Vimeo.
Posted in Entrepreneurship, Hiring, Sales on April 18th, 2012
One of the ways to assess how your firm is doing in transitioning from an entrepreneurial, founder-led sales model to a professional sales model is to see how ready you are to answer some tough questions. Imagine you’ve found the perfect sales person for your young, growing firm. She seems resilient, which is great because your company gets lots of “no’s.” She’s bright, which is great because you are still figuring out where your value lies. She has a great track record, which will bring you credibility. And she knows how to sell.
So you sit down with her and she starts asking questions:
1. Who will I sell to, and why is that the target and not a different industry, group, segment?
2. Where are the failure points in the sales process? Do you fail in lead gen, qualifying, proposing, closing, etc?
3. What are the most common objections you get and what are the answers? Are these written down?
4. What will my quota be, and how did you come up with that?
5. Is the messaging for the company clear and is it reflected in the website and any materials you will give me?
6. Is the internal team ready for the proper hand-offs from sales, and how will they be structured to support what I’m selling?
7. Will you walk me through the sales toolkit (objections, proposals, decks, materials, qualifiers, messaging, pricing)?
8. How will you measure my success?
And this is just the beginning. A successful professional sales person knows what it takes to get the job done. The question here is; are YOU ready? Your ability to answer these questions from someone who has felt the pain of not having these answers will determine whether you are ready to hire a sales person or team. So be ready.
Posted in Entrepreneurship, Sales on April 13th, 2012
There’s “selling” and then there’s “entrepreneurial selling.” Failing to understand the difference almost cost me my first business (and $3M of Opium – Other Peoples Money).
Selling is straight-forward. Why? Because you are at the tip of the pyramid. There’s a huge, well-functioning organization underneath you that supports all of your efforts. There’s HR, training, finance, marketing, operations, tech support. Here’s how it looks:
In most professional selling roles, you are given a territory and a bag and sent on your way. Your responsibility is to put a smile on your face and go prospect, qualify, explore needs, propose, and close. It’s a classic example of a sales process in a corporate, professional sales environment.
Entrepreneurial selling is fundamentally different. Your responsibility goes well beyond just penetrating a territory. As an entrepreneur, your role is “stretched at both ends,” backward to targeting and forward to relationship management and analysis.
Now you find yourself figuring out who to sell to, why they are the most fruitful target and how to find them (Hello, Marketing? It’s me Sales. Anybody there?). You usually get only one chance to get this right.
Then, after you have busted your butt bringing in a few clients, you need to make certain that these clients are well taken care of, since they will serve as your reference foundation. Not to mention that you will also need to analyze whether these clients are profitable. So instead of having this huge support system underneath you, an entrepreneur balances on a very shaky foundation. It looks like this:
The entire process rests upon the tip of the pyramid; the foundation for a strong sales process is entirely dependent on the salesperson and whether or not he/she has the appropriate mix of knowledge, skills, and discipline to be a high performer. In entrepreneurial selling, you assume the roles of marketing, finance, tech support, training, HR, and operations positions that don’t yet exist within your company.
In recent posts, I’ve explored how and when an entrepreneur decides to hire a sales team and who they should be hiring at such an early stage in the game. Without a fundamental understanding of what type of sales process the company currently adheres to, it is extremely difficult to implement strong growth strategies.
-CW
Posted in Entrepreneurship, Leadership, Observations & Intersections, Sales on April 10th, 2012
This month, Sales Engine is focusing on a company’s necessary transition from founder-led or entrepreneurial selling to professional selling. So far, we have explored the initial decision to grow the company and how (and when) to make those initial hires. Growth strategy is sticky (at best) and a lot of entrepreneurs and founders have questions at each step in this long process. Oftentimes, these questions are gradually answered through trial & error or by a trusted mentor (if you’re fortunate enough to have one).
For those of you still looking for answers, we have compiled some resources to help you think about where your company is at the moment, where you would like it to be in the future, and how you can work toward accomplishing this goal. This information applies to any individual within business development, from entrepreneurs to managers to salespeople.
- Inc Magazine re-published an interview they did with Michael Dell back in the ’90s. Looking back on Dell’s growth since then, this article provides insights into managing an operation as it grows from a small one to a very large, complex one.
- Again, Inc Magazine hits the nail on the head. They discussed why employees that ask ‘why?’ themselves are incredibly valuable to a growing company.
- Ok, so maybe you’ve hired your first 1-5 employees. Now how do you motivate them and empower them so that your company grows over time? This Forbes article has a poignant answer: “Rather than treating employees as cost items that need to be managed wherever possible, why not view them as assets capable of delivering ever increasing value to the marketplace?” (Don’t be surprised if you end up capturing some highlights of the article to look back on–it’s full of great information.)
- How would you answer this question?: “What is the one thing all successful people do well?”. We are not surprised by the answer.
- You want your employees to be outstanding salespeople. Do you think it would help if you allowed them think of sales in a nonconventional way?
Have you read any books, articles, or blog posts on growth strategy lately? What have you learned and how are you using it in our own operations?
Posted in Art of conversation, Qualifying, Sales, Toolkit on April 20th, 2011
Ever had a “groundhog day” sales meeting? You walk away thinking; “Damn, we already had this meeting…we haven’t moved forward. Same old stuff.” We have all made this mistake. Part of it is just plain preparation and being clear on the agenda. But that’s not all. There are two tactics that high-performing sales professionals use consistently; the purpose, benefit, check and pivots.
The purpose, benefit, check is the way EVERY sales meeting should open. “The purpose of our meeting today is to discuss your sales toolkit and how it supports your sales process. I think this will provide you with a strong sense of how the toolkit could be enhanced to strengthen the sales team (benefit). How does that sound (check)? The PBC gives you three critical things; aligns your prospect’s expectations with your own, demonstrates that you are prepared and organized, and shows respect for your prospect’s time.
It also points your body down the hill. Wha? In giant slalom skiing, the racers fly through the gates at high speed. But if you watch them closely, you will notice that their bodies are pointed at the finish line, even as they are subtly shifting their weight to pivot around the next gate. Just like high-performing sales people, skiers know they have to hit all of the gates. They know they can’t miss even one. And they know they have to do this as fast as they possibly can.
Pivots are the same. As mentioned in previous posts, pivots are the transitions you make in a sales meeting to ensure that you are tackling YOUR objectives. If it’s a qualifying conversation (is there any other type?), you are pivoting from budget to timeline, from timeline to decision-makers, and on. In my experience, sales pro’s can make three to four good, clean pivots in a sales meeting, and when they do, they walk out having significantly moved the situation forward.
Every sales meeting should be going somewhere. You determine where, and then you set the course (PBC) and pivot through the gates to get there. As fast as you can. Break a leg.
Posted in Chicago Booth, Sales, Teaching, Toolkit on April 9th, 2011
Thank you Inc. Magazine for the recognition of our Selling (not Marketing, not Business Planning…..SELLING) course at Chicago Booth. See the link right here on the right side of the salesengine.com home page. Leigh Buchanan, a fantastic journalist, captured the spirit of the course and I especially appreciated her highlighting the experiences of an actual student of mine, Phil Leslie. It doesn’t matter one good goddamn what we teach…it matters what these students DO when they walk out of the class. Phil is the perfect example of a guy who walks out of the course, picks up the phone, conquers his fear, calls a prospective partner or customer, sets up a meeting, closes a deal, and builds his company. That, my friends, is the meaning of life.
These Booth students amaze me. They come here whip smart and full of knowledge, and I hope they leave unafraid and full of skill and discipline.
Posted in Qualifying, Sales on February 4th, 2011
When should you qualify your prospects? Right now. The earlier you qualify potential prospects the better. I know, I know, this is hard. Yes it is. But this is why you are getting paid. Here are my favorite qualification questions:
Does this initiative have an established budget?
Is that budget taking away from other projects you are responsible for?
How has this initiative been funded?
What visibility does this have with leadership?
How will this decision be made?
What risks do you see for this project?
What could happen to derail this effort?
What issues are driving your decision?
How does the contracting process work?
My advice to you is to put these on a checklist and make sure you ASK THEM ALL, even if some of them sound redundant. You never know…sometimes prospects just aren’t ready to answer the tough questions. But if you don’t revisit the same questions, you will get burned. And, if your prospect qualifies himself out, move on. You will thank yourself.
Posted in Closing, Re-setting expectations, Sales, Toolkit on February 1st, 2011
Most sales processes end at the “close.” But that’s like running a race without first tying your shoes. The final step of the sales process – after the close – is “re-setting expectations.” This is the critical step where the hand-offs are made and the client is crystal clear on what she’s getting and what she’s not getting.
If sales people view the close as the final step, this causes them to take their focus off of a smooth transition. But if they view the close as the penultimate step leading to a well-structured expectations conversation, their “prospects” will be more successful through the journey from “client” to “success story” and finally to “reference.”
Re-setting expectations is the responsibility of sales. At this early point in the relationship, the sales person holds the history of the relationship to date in his head. He knows the uniquenesses, the nuances. And he is the person best-positioned to make a clean hand-off to the rest of the team.
This step of the sales process is usually left out, causing the new client to have to re-trace her steps and educate a new group of people (best case) or get quickly down the wrong path leading to failure (worst case).
Posted in Marketing vs Sales, Sales on December 28th, 2010
A ‘renaissance’ person, or ‘polymath,’ is described as “a person who excels in multiple fields.” (http://en.wikipedia.org/wiki/Renaissance_man). According to the wiki, these terms describe someone who continues to develop skills, capabilities, and knowledge far beyond one specific domain. In an age of increasing specialization, this whole notion of someone excelling across multiple domains is refreshing.
One of the trends I’m tracking right now involves the convergence of marketing and sales. These two formerly distinct disciplines are being drawn together by a force that over the past 50 years has been drawing the whole world together. That ‘force’ is technology. Many people like me who live and work amongst the marketing and sales disciplines have been commenting on how these two critical functions are transforming from ‘art’ into ‘science.’ Technology allows us more visibility than ever before into buying behaviors, social groupings, information-sharing, lead tracking, and sales ‘touches.’ As it does that, it breaks off pieces of art and organizes them into science.
It’s that phenomenon that is pushing all of us to become renaissance resources. We have to be comfortable across art and science, marketing and sales, in front of customers and behind computer screens.
