Thursday, June 10, 2010
Wednesday, June 9, 2010
Simple Steps to Capture More Sales
There is a saying in business that nothing happens until somebody makes a sale. This is true whether you are selling a product or a service.
Indeed, making sales is the reason businesses exist, but exactly how to identify, acquire, and keep customers can be a constant challenge. Sales processes and lead generation continuously rank at the top of the list of owners' education needs. How you generate leads, capture sales, and treat the customers after delivery are the drivers for a successful business model.
The most basic models for successful selling require that a business pulls together what they do best with what the prospects want most. But knowing which is which requires care and planning.
Here are some simple steps to help you capture more sales:
Know Your Unique Selling Proposition
Why should a customer do business or purchase a product from you rather than your competition? In some instances, this can be a many layered question. For instance, if you are a Ford dealer, why would someone buy from you as opposed to the Chevrolet dealer and instead of buying from the other Ford dealer down the street? You need to know your market and your product inside and out. Talk to prospects, people who bought from you and those that bought elsewhere. Why are some customers attracted to the competition? What do your customers like about you? Take that information and describe what you can do for the customer better than anyone else.
Guide Your Customer through the Purchase Funnel
Prospective customers have to learn who you are. This is awareness. Here the focus is on the emotional benefits of your product or service. Stress emotional concepts like security, integrity, charity, or prestige. The next stage is consideration. Prospects begin weighing the pros and cons of dealing with your business. They are considering making a purchase. Here you want to make real, rational, quantifiable benefits apparent to them. These could be cost savings, the latest technology, life time warranties, or any other measurable aspect of the product or service.
Set Up Listening Posts
You don't have to invest a lot of money in focus groups to get feedback. Consider a low-cost listening post on the internet. Ask customers to take a web based survey or visit a chat room where they can discuss their needs. Use these to establish an honest, open dialogue with, and between your customers. If they have gripes, fix them. Each time you have a contact with an existing or potential customer try to establish a venue for communication with your company. Use the feedback to train your sales persons, make promotional offers, and develop new products.
Have a Clear Direction
A shotgun approach to selling can be expensive and misguided. Just like an Air Force drone can pinpoint a target, a focused sales effort can pinpoint prospects and turn them into customers. Take the rifle approach and aim carefully. Knowing which customers are receptive to your unique selling proposition will help you target the sales efforts. If you are selling high service at a premium price, it's important to get your sales message to those customers that can afford and will appreciate your superior service. Who is your target? How do they behave? Where do they shop? What do they read? Effective selling is not about making a lot of impressions; rather it is about getting those impressions to the right people.
Get Your Share of the Wallet
Market penetration should be a goal of every business plan. But just as important is wallet share- how much of what your customers buy are they buying from you? It is much easier and more profitable to sell to an existing customer. By maximizing your sales to each customer, you can reduce the cost of sales and increase profit. Develop new ways to provide complimentary value and benefit to existing customers. As you provide them with increasing value, the likelihood of losing them to competition becomes more remote. So boil down the selling sauce to its fundamentals; know what sets you apart, develop a collaborative selling approach with your customers, and listen to what they need and expect.
http://www.mjdbusinessadvice.com
Article Source: http://EzineArticles.com/?
Indeed, making sales is the reason businesses exist, but exactly how to identify, acquire, and keep customers can be a constant challenge. Sales processes and lead generation continuously rank at the top of the list of owners' education needs. How you generate leads, capture sales, and treat the customers after delivery are the drivers for a successful business model.
The most basic models for successful selling require that a business pulls together what they do best with what the prospects want most. But knowing which is which requires care and planning.
Here are some simple steps to help you capture more sales:
Know Your Unique Selling Proposition
Why should a customer do business or purchase a product from you rather than your competition? In some instances, this can be a many layered question. For instance, if you are a Ford dealer, why would someone buy from you as opposed to the Chevrolet dealer and instead of buying from the other Ford dealer down the street? You need to know your market and your product inside and out. Talk to prospects, people who bought from you and those that bought elsewhere. Why are some customers attracted to the competition? What do your customers like about you? Take that information and describe what you can do for the customer better than anyone else.
Guide Your Customer through the Purchase Funnel
Prospective customers have to learn who you are. This is awareness. Here the focus is on the emotional benefits of your product or service. Stress emotional concepts like security, integrity, charity, or prestige. The next stage is consideration. Prospects begin weighing the pros and cons of dealing with your business. They are considering making a purchase. Here you want to make real, rational, quantifiable benefits apparent to them. These could be cost savings, the latest technology, life time warranties, or any other measurable aspect of the product or service.
Set Up Listening Posts
You don't have to invest a lot of money in focus groups to get feedback. Consider a low-cost listening post on the internet. Ask customers to take a web based survey or visit a chat room where they can discuss their needs. Use these to establish an honest, open dialogue with, and between your customers. If they have gripes, fix them. Each time you have a contact with an existing or potential customer try to establish a venue for communication with your company. Use the feedback to train your sales persons, make promotional offers, and develop new products.
Have a Clear Direction
A shotgun approach to selling can be expensive and misguided. Just like an Air Force drone can pinpoint a target, a focused sales effort can pinpoint prospects and turn them into customers. Take the rifle approach and aim carefully. Knowing which customers are receptive to your unique selling proposition will help you target the sales efforts. If you are selling high service at a premium price, it's important to get your sales message to those customers that can afford and will appreciate your superior service. Who is your target? How do they behave? Where do they shop? What do they read? Effective selling is not about making a lot of impressions; rather it is about getting those impressions to the right people.
Get Your Share of the Wallet
Market penetration should be a goal of every business plan. But just as important is wallet share- how much of what your customers buy are they buying from you? It is much easier and more profitable to sell to an existing customer. By maximizing your sales to each customer, you can reduce the cost of sales and increase profit. Develop new ways to provide complimentary value and benefit to existing customers. As you provide them with increasing value, the likelihood of losing them to competition becomes more remote. So boil down the selling sauce to its fundamentals; know what sets you apart, develop a collaborative selling approach with your customers, and listen to what they need and expect.
http://www.mjdbusinessadvice.com
Article Source: http://EzineArticles.com/?
6 PROVEN STRATEGIES FOR SALES MANAGERS
Do you know what it takes to become an exceptional sales manager? Here are six common sense management strategies you can use to become more effective in your daily work.
1. Alignment. One of the keys to your long-term success is alignment. Let me explain. It's important, actually extremely important that you are aligned with your manager and your company.
Now I know what you're thinking. You're thinking that's a no-brainer and you believe you are in perfect alignment with your boss. You can prove it by periodically asking him this question, "What are your expectations of me and my sales team during the next 90 days?"
If you have never asked this question, you might be surprised at the response you get.
Just remember asking this question insures proper alignment.
2. Priorities. This is closely related to the first point, however it is different. Never assume you know someone's priorities until you ask them.
For example. Create a list of priorities you believe your salespeople should have for the next 90 days. Then, ask each sales person what his priorities are for the next 90 days. If they match - that's great. If they don't, you now have a unique coaching opportunity.
You might also want to ask your manager periodically, "What are your priorities for the next quarter?" Once again, if you have never asked this specific question, you might be surprised at the response you get.
3. Focus on goals. During my sales management training programs I always observe a great deal of interest in the subject of motivating salespeople.
I'm here to tell you, that one of the best kept secrets about motivation is goals. You see, the world we live in today is almost indescribable.
Multitasking has been ratcheted up to levels that are mind boggling. It's difficult to stay focused because of constant e-mails, texting, voice mails, social media, and playing old ordinary interruptions and distractions.
One of the best ways to motivate your sales team is to keep them focused on clearly defined goals. And you can achieve this with relentless reinforcement and repetition.
4. The 80/20 Rule. Never under estimate the power of the 80/20 Rule. It has never let me down
Let me give you a practical example of how this works. Imagine your company is getting ready to launch a new product, and you're asked to provide a six month sales forecast for your sales team.
Here's how some (naïve) sales managers would do it. You have 10 salespeople and you believe each sales person can sell 2 new products a month. That means you expect your team to sell 20 new products a month or a total of 120 products during the first six months.
To be sure this is based on good intentions, however it's seldom based on reality. The reality is 20% of your sales team will sell 80% of the new products. This means 2 salespeople will sell 2 new products a month which adds up to a total of 24 sales during the first six months.
Anybody can create an exaggerated sales forecast, you would be wiser to base your forecast on the proven 80/20 Rule.
5. Set the example. You may not realize this yet, but your sales team's behavior is a reflection of your behavior. For example, always being on time or always being late.
Being organized versus being disorganized. You either dress for success or you don't.
There's another example. Your in a taxi with one of your sales representatives. At the end of your ride the taxi driver asks you, "Would you like 2 receipts?" You obviously know what the professional response to that question is.
Your sales reps are taking their cues from you and your behavior. In everything you do, be sure to set the right example for your sales team.
6. Four most powerful words. One of the best things you can do to improve your sales teams effectiveness is to teach them the four most powerful words in sales.
The four most powerful words in sales are, "What are my objectives." Teach your salespeople why it's so important to have written sales call objectives for every sales call. Your sales prospects and customers will appreciate and respect your salespeople more when they stay focused on their sales call objectives.
These six proven strategies will definitely help you to become a more effective leader and sales manager.
Unfortunately, there are no shortcuts to success - just lots of hard work!
http://effective-sales-management.com/New-sales-manager-webinar.htm
Article Source: http://EzineArticles.com/
1. Alignment. One of the keys to your long-term success is alignment. Let me explain. It's important, actually extremely important that you are aligned with your manager and your company.
Now I know what you're thinking. You're thinking that's a no-brainer and you believe you are in perfect alignment with your boss. You can prove it by periodically asking him this question, "What are your expectations of me and my sales team during the next 90 days?"
If you have never asked this question, you might be surprised at the response you get.
Just remember asking this question insures proper alignment.
2. Priorities. This is closely related to the first point, however it is different. Never assume you know someone's priorities until you ask them.
For example. Create a list of priorities you believe your salespeople should have for the next 90 days. Then, ask each sales person what his priorities are for the next 90 days. If they match - that's great. If they don't, you now have a unique coaching opportunity.
You might also want to ask your manager periodically, "What are your priorities for the next quarter?" Once again, if you have never asked this specific question, you might be surprised at the response you get.
3. Focus on goals. During my sales management training programs I always observe a great deal of interest in the subject of motivating salespeople.
I'm here to tell you, that one of the best kept secrets about motivation is goals. You see, the world we live in today is almost indescribable.
Multitasking has been ratcheted up to levels that are mind boggling. It's difficult to stay focused because of constant e-mails, texting, voice mails, social media, and playing old ordinary interruptions and distractions.
One of the best ways to motivate your sales team is to keep them focused on clearly defined goals. And you can achieve this with relentless reinforcement and repetition.
4. The 80/20 Rule. Never under estimate the power of the 80/20 Rule. It has never let me down
Let me give you a practical example of how this works. Imagine your company is getting ready to launch a new product, and you're asked to provide a six month sales forecast for your sales team.
Here's how some (naïve) sales managers would do it. You have 10 salespeople and you believe each sales person can sell 2 new products a month. That means you expect your team to sell 20 new products a month or a total of 120 products during the first six months.
To be sure this is based on good intentions, however it's seldom based on reality. The reality is 20% of your sales team will sell 80% of the new products. This means 2 salespeople will sell 2 new products a month which adds up to a total of 24 sales during the first six months.
Anybody can create an exaggerated sales forecast, you would be wiser to base your forecast on the proven 80/20 Rule.
5. Set the example. You may not realize this yet, but your sales team's behavior is a reflection of your behavior. For example, always being on time or always being late.
Being organized versus being disorganized. You either dress for success or you don't.
There's another example. Your in a taxi with one of your sales representatives. At the end of your ride the taxi driver asks you, "Would you like 2 receipts?" You obviously know what the professional response to that question is.
Your sales reps are taking their cues from you and your behavior. In everything you do, be sure to set the right example for your sales team.
6. Four most powerful words. One of the best things you can do to improve your sales teams effectiveness is to teach them the four most powerful words in sales.
The four most powerful words in sales are, "What are my objectives." Teach your salespeople why it's so important to have written sales call objectives for every sales call. Your sales prospects and customers will appreciate and respect your salespeople more when they stay focused on their sales call objectives.
These six proven strategies will definitely help you to become a more effective leader and sales manager.
Unfortunately, there are no shortcuts to success - just lots of hard work!
http://effective-sales-management.com/New-sales-manager-webinar.htm
Article Source: http://EzineArticles.com/
Tuesday, June 1, 2010
15 MISTAKES SALES MANAGERS MAKE WHEN HIRING NEW SALES REPS
Let's face it. Hiring a new sales rep is less than a perfect art or science. And many sales people simply don't work out or perform as expected. This is largely due to the fact that many sales managers make a variety of mistakes when hiring sales reps. Here are 15 of the most common mistakes sales managers make when hiring new sales reps.
1. They conduct low quality interviews. Most sales managers have never learned how to conduct a high-quality interview. This isn't their fault; it's just that most companies do not teach managers how to conduct great interviews.
2. They fail to ask tough, probing questions. Most hiring managers ask questions about work history, experience, and general performance. However, they neglect to ask questions about gaps in a candidate's resume and they are uncomfortable asking probing questions about previous performance and that challenge a potential candidate.
3. They get mislead by candidates who interview well. Many sales people have a tremendous ability to "smooze" and make a great first impression. This often leads to the sales manager to feel good about a particular candidate. However, just because you like someone does not mean they will perform well once they are hired.
4. They rely on instinct or gut feel. Many a sales manager has hired a rep that made a great impression (see the previous point). This is often caused because the candidate had a similar personality style to the hiring manager and was able to connect with that individual. However, once hired, the rep does not perform to standard.
5. They do not check references. Checking references is not an enjoyable task especially when you have a multitude of other tasks demanding your attention. Connecting with previous employers is a challenge and many managers don't want to appear skeptical so they neglect this step in the recruiting process. Or, they delegate the reference check to an assistant who is not fully versed in the questions they need to ask to gain a better understanding of the candidate's previous work performance.
6. They do not consider the type of sales person they need for their specific sales environment. Different sales environments require different skills sets. For example, if a business requires a sales rep to make dozens of cold calls but they hire a someone who is not proficient at this, that rep's results will be less than satisfactory.
7. They do not make use of hiring tools such as assessments. Assessments can help sales managers identify several things. The first is the type of sales environment the rep will be required to work in. Second, the aptitude the rep has for selling. And third, the potential shortcoming and possible problems a candidate may experience in the particular position.
8. They don't ask candidates exactly how they will achieve results. Once again, this requires that you ask probing questions to determine exactly how the potential employee will generate the sales that you require.
9. They talk too much during the interview. Conducting an interview means giving the applicant sufficient air time. Too many managers talk about the company and their goals instead of asking questions and allowing the rep to talk. The general rule of thumb is to make sure that the candidate talks at least 70 percent of the time.
10. They don't properly prepare for the interview. Because sales managers are extremely busy they often ask their assistant to schedule interviews and only look at the resume once the candidate is in their office. Proper preparation means reviewing the candidate's resume beforehand, identifying possible gaps and determining key questions that must be asked.
11. They hire to "fill a gap". It is not uncommon for sales managers to race through the recruiting process in an effort to quickly hire someone because they need a rep in place. After all, hiring reps is seldom a task that managers enjoy. In these situations, managers focus on the positive aspects of the applicant and neglect to see their possible shortcomings. This often leads to "hiring remorse" once they discover that the rep is not entirely suitable.
12. They allow interruptions during the interview. Sales managers have dozens of tasks and projects on their plate at any given time and often allow other staff including their assistant to interrupt them during an interview. Effective interviews must be conducted without distractions and interruptions.
13. They only interview people who have industry experience. Unless your industry is highly technical, you should consider people who do not have experience in your industry. Many people are fully capable of performing well in a new industry providing they are suitable fit to your particular sales environment. Industry experience brings baggage and preconceived idea. Candidates who do not have industry experience often bring a new perspective to the sales role.
14. They do not get second opinions. Interviewing a sales rep requires more than one perspective. Effective sales managers get other people in the company involved in the interviewing process and they compile all of the feedback before making a hiring decision.
15. They fail to seek clarification. I have witnessed dozens of interviews and noticed that many sales managers take a candidate's comments at face value instead of clarifying vague comments. If in doubt, check it out.
Article Source: http://EzineArticles.com/?expert=Kelley_Robertson
1. They conduct low quality interviews. Most sales managers have never learned how to conduct a high-quality interview. This isn't their fault; it's just that most companies do not teach managers how to conduct great interviews.
2. They fail to ask tough, probing questions. Most hiring managers ask questions about work history, experience, and general performance. However, they neglect to ask questions about gaps in a candidate's resume and they are uncomfortable asking probing questions about previous performance and that challenge a potential candidate.
3. They get mislead by candidates who interview well. Many sales people have a tremendous ability to "smooze" and make a great first impression. This often leads to the sales manager to feel good about a particular candidate. However, just because you like someone does not mean they will perform well once they are hired.
4. They rely on instinct or gut feel. Many a sales manager has hired a rep that made a great impression (see the previous point). This is often caused because the candidate had a similar personality style to the hiring manager and was able to connect with that individual. However, once hired, the rep does not perform to standard.
5. They do not check references. Checking references is not an enjoyable task especially when you have a multitude of other tasks demanding your attention. Connecting with previous employers is a challenge and many managers don't want to appear skeptical so they neglect this step in the recruiting process. Or, they delegate the reference check to an assistant who is not fully versed in the questions they need to ask to gain a better understanding of the candidate's previous work performance.
6. They do not consider the type of sales person they need for their specific sales environment. Different sales environments require different skills sets. For example, if a business requires a sales rep to make dozens of cold calls but they hire a someone who is not proficient at this, that rep's results will be less than satisfactory.
7. They do not make use of hiring tools such as assessments. Assessments can help sales managers identify several things. The first is the type of sales environment the rep will be required to work in. Second, the aptitude the rep has for selling. And third, the potential shortcoming and possible problems a candidate may experience in the particular position.
8. They don't ask candidates exactly how they will achieve results. Once again, this requires that you ask probing questions to determine exactly how the potential employee will generate the sales that you require.
9. They talk too much during the interview. Conducting an interview means giving the applicant sufficient air time. Too many managers talk about the company and their goals instead of asking questions and allowing the rep to talk. The general rule of thumb is to make sure that the candidate talks at least 70 percent of the time.
10. They don't properly prepare for the interview. Because sales managers are extremely busy they often ask their assistant to schedule interviews and only look at the resume once the candidate is in their office. Proper preparation means reviewing the candidate's resume beforehand, identifying possible gaps and determining key questions that must be asked.
11. They hire to "fill a gap". It is not uncommon for sales managers to race through the recruiting process in an effort to quickly hire someone because they need a rep in place. After all, hiring reps is seldom a task that managers enjoy. In these situations, managers focus on the positive aspects of the applicant and neglect to see their possible shortcomings. This often leads to "hiring remorse" once they discover that the rep is not entirely suitable.
12. They allow interruptions during the interview. Sales managers have dozens of tasks and projects on their plate at any given time and often allow other staff including their assistant to interrupt them during an interview. Effective interviews must be conducted without distractions and interruptions.
13. They only interview people who have industry experience. Unless your industry is highly technical, you should consider people who do not have experience in your industry. Many people are fully capable of performing well in a new industry providing they are suitable fit to your particular sales environment. Industry experience brings baggage and preconceived idea. Candidates who do not have industry experience often bring a new perspective to the sales role.
14. They do not get second opinions. Interviewing a sales rep requires more than one perspective. Effective sales managers get other people in the company involved in the interviewing process and they compile all of the feedback before making a hiring decision.
15. They fail to seek clarification. I have witnessed dozens of interviews and noticed that many sales managers take a candidate's comments at face value instead of clarifying vague comments. If in doubt, check it out.
Article Source: http://EzineArticles.com/?expert=Kelley_Robertson
Business Planning Documents - How to Develop an Effective Sales Plan
It is possible that you have never considered writing a sales plan before; you are not alone. Most organizational leaders are not even aware that they need to create such a document. So that leaves the question hovering in the air: what is a sales plan? The answer is quite simple and extremely relevant to the modern company. A sales plan is an important piece of your marketing plan; it is the actionable portion. While marketing becomes increasingly important, getting the attention of your prospective consumer is only step one of many in the buying processes. Another very important component is actually getting customers to make a purchase or place an order for the product or service that has been so cleverly marketed. And that is what the sales plan outlines: sales goals and how to achieve them.
Some strategic planners choose to make the sales plan part of the overall business plan; sometimes tucked away in the operations section of the business plan. However, in order for the document to be effective, it needs to be very well thought out and easily attained by the person responsible for sales-- most likely, the Sales Manager.
Like all well thought out strategic planning documents, the sales plan needs to have a summary that is written last but serves as an overall statement of the purpose and vision for the document and organization's goals regarding sales. It should sight the company's philosophy about sales and discuss the culture of the sales department.
The next section needs to include quantifiable objectives, outline any and all success factors as well as discuss sales avenues. This brief and typically bulleted overview serves as the overall sales plan & strategy.
Since customer relationship management [C.R.M.] is becoming a vital part of organizations, it is important to have a section outlining feasible customer retention & loyalty programs to track such interaction. This section does not outline the C.R.M. package itself but rather the programs that drive repeat and referral traffic.
The sales force organization section of the sales plan is as equally as important as discussing the customers, as this section discusses sales personnel. This portion answers such questions as: 1) How will the sales department be managed? 2) What territories will each sales person cover? 3) How will sales people be compensated and rewarded?
Prospect management & lead systems is the opportunity for companies to think about exactly what C.R.M. packages will be utilized and the best way to track leads and manage conversion rates. In this section, strategic planners can clearly outline the processes that new and prospect customers will go through and what sort of technology [if needed] will manage the transition.
Use the next section to create a detailed list of annual sales activity; called a sales activities timetable. A chart format or spreadsheet layout is easiest to maintain and update. The information should clearly identify the ROI as well as the overall expense of each activity.
When each sales effort, as recorded in the sales activity timetable, is complete it will become important to develop a sales effectiveness summary that monitors the success of each sales campaign. This can be a simple review by management or team members.
Create a tracking system for the sales plan as a final portion of the sales plan. This allows managers to meaningfully forecast business levels and allows for accountability among sales representatives.
The sales plan should be between approximately five to ten pages. The detailed plan will add action items to your marketing plan and give Sales Managers clear direction on how to lead the sales team. Such a document should be given as much time and attention as the marketing plan itself.
Article Source: http://EzineArticles.com
Some strategic planners choose to make the sales plan part of the overall business plan; sometimes tucked away in the operations section of the business plan. However, in order for the document to be effective, it needs to be very well thought out and easily attained by the person responsible for sales-- most likely, the Sales Manager.
Like all well thought out strategic planning documents, the sales plan needs to have a summary that is written last but serves as an overall statement of the purpose and vision for the document and organization's goals regarding sales. It should sight the company's philosophy about sales and discuss the culture of the sales department.
The next section needs to include quantifiable objectives, outline any and all success factors as well as discuss sales avenues. This brief and typically bulleted overview serves as the overall sales plan & strategy.
Since customer relationship management [C.R.M.] is becoming a vital part of organizations, it is important to have a section outlining feasible customer retention & loyalty programs to track such interaction. This section does not outline the C.R.M. package itself but rather the programs that drive repeat and referral traffic.
The sales force organization section of the sales plan is as equally as important as discussing the customers, as this section discusses sales personnel. This portion answers such questions as: 1) How will the sales department be managed? 2) What territories will each sales person cover? 3) How will sales people be compensated and rewarded?
Prospect management & lead systems is the opportunity for companies to think about exactly what C.R.M. packages will be utilized and the best way to track leads and manage conversion rates. In this section, strategic planners can clearly outline the processes that new and prospect customers will go through and what sort of technology [if needed] will manage the transition.
Use the next section to create a detailed list of annual sales activity; called a sales activities timetable. A chart format or spreadsheet layout is easiest to maintain and update. The information should clearly identify the ROI as well as the overall expense of each activity.
When each sales effort, as recorded in the sales activity timetable, is complete it will become important to develop a sales effectiveness summary that monitors the success of each sales campaign. This can be a simple review by management or team members.
Create a tracking system for the sales plan as a final portion of the sales plan. This allows managers to meaningfully forecast business levels and allows for accountability among sales representatives.
The sales plan should be between approximately five to ten pages. The detailed plan will add action items to your marketing plan and give Sales Managers clear direction on how to lead the sales team. Such a document should be given as much time and attention as the marketing plan itself.
Article Source: http://EzineArticles.com
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