You’ve heard the saying before that there is no “I” in team. And that’s true. A team is a collection of people working toward the same goal with the single objective of successfully reaching a satisfied conclusion. However, when you’re a sales rep there’s a slightly different spin on this little pearl of wisdom. Sometimes it’s a natural tendency to think more about “Me” than the team.
As a sales rep, you deal with a variety of people in a team-selling environment. In the early phases of selling when the opportunity is still new, you may deal with your inside sales or telemarketing people to help qualify the account. On the technical side you may engage the pre-sales systems engineer who works with the client’s technical or IT people. As you negotiate the deal the contracts people can get involved. When you get the order you could deal with your order entry staff. And, when the sale is made the customer support team may be deployed. There may even be additional people and departments you work with depending on your company and selling process.
Nevertheless, when it comes right down to it, who gets the ‘ax’ when the revenue numbers aren’t achieved? Who gets fired when the territory doesn’t hit quota? Who gets kicked to the curb when the big deal goes to a competitor? The SALES REP!!
We understand the concept of team selling and always want to be a “team player”. That’s a good thing since you need your team to help close business. Without the team, you cannot succeed. Don’t ever forget it. However, this advice can hurt you if you lose focus on who has the most at stake. Sure, this sounds selfish and greedy. But guess what, you’re the one whose commission plan has 50% at risk. If you don’t make your quota, half your income is at stake. The order entry people still get paid. The contracts administrator still takes home the same amount she did last month. Seems everyone still gets paid the same whether YOU get the deal or not – except you!
But wait! Don’t you also get paid the “Big Bucks” when you hit your quota? Don’t you get the huge bonus and over-rides when you “blow out” your numbers? What about then? Well, that my friend is what sales is all about. You are in a high-risk position. If you sell, you’re a hero and make lots of money (theoretically speaking, that is). And if you fail, you make less. Sometimes lots less. But what about the team?
If YOU have everything on the line, then who cares about the team? They get paid the same and you take all the risk. So why become a team player? You can’t spell team without “M” and “E”. So what about “ME” you say. Why should I care about the team? When I hear this from sales reps, I feel like crying. Some even believe that their team is there to serve their purposes and if things go wrong or they lose the deal, the team can take the fall. Teamwork doesn’t mean, “Let’s spread the blame as widely as possible.” It’s not about blame. It’s about success.
So, why should you care about your team? Well, if you don’t know by now, it might be too late. You cannot do your job without your team. Period! End of story! Sure, they get paid the same, win or lose. But they help make you a success. As that desperate man named Jerry said to the beautiful lady in that famous motion picture, “You complete me.” That’s exactly what your team does – they COMPLETE you. Team players in a sales environment sometimes have to weave a delicate thread when trying to balance their priorities. How do you take care of the team’s interests and priorities while not neglecting your own?
This reminds me of when I was on the high school wrestling team. Unlike football, which was truly a team sport, wrestling is a bit duplicitous. First, you are on a team and the entire team can have a winning or losing match, and season. However, each wrestler has to go out there and defeat their opponent one-on-one. You are on the mat all by yourself (well, with your opponent, of course). Your team isn’t out there with you trying to pin the other guy. If you win, that’s great for you. But you can win and your team can still lose if there aren’t enough individual wrestlers on your team who win.
In high school wrestling, each individual wrestler gets points for winning. If you win by scoring more individual points than your opponent, then your team gets, say, three points. If you pin your opponent, your team gets, say, five points. So you can pin your opponent in 10 seconds flat and look like a hero. But if the rest of your team doesn’t have enough individual points, the team loses. Sure, you can move on to wrestle in the District or Regional Championships, as an individual. But you could still be playing for a losing team. The best scenario I remember was having a personal success record and reaching the championship tournaments, while wrestling for a team with a winning season. Pride times two!
In sales, there is a big difference however. When the sales rep is out there on the mat with his or her opponent, the rest of the team is really out there too. The technical expert pitches in when needed. The contracts person does their part. Management helps where they can. And finally, if all goes well, the team overcomes diversity, the customer makes the best purchase decision for them, and everyone wins.
One way to ensure the team succeeds is to have a well-defined sales process. This entails laying out all the steps necessary to bring a sales lead from suspect to prospect to customer. The process should define who does what within each step, for how long they do it, how they hand off to the next responsible team player, if and when they get engaged again, and many more details that the entire team should understand and follow. The need for, and development of, sales processes is the subject of another article. In fact, books are written on this subject, not to mention the livelihood of many consultants dependent on them, including yours truly. But it is important to mention here as it relates to a team selling approach. No sense having a team if all the players are moving in different directions and cross-purposes.
So the next time you’re out there selling your head off, don’t forget you have a support team behind you whose sole purpose is to make the team, and you, succeed regardless of who gets paid what, and regardless of how you actually spell T.E.A.M.
Good luck and good selling!
Russ Lombardo is President of PEAK Sales Consulting, LLC and an experienced CRM and Sales consultant, trainer, writer, speaker and radio show host. Russ works with businesses to help improve their customer acquisition and retention for increased revenue and success. Russ is author of the books, “CyberSelling”, “CRM For The Common Man” and “Smart Marketing”. He can be reached at 702-655-5652 and emailed at russ@peaksalesconsulting.com.
Tag: sales
Most sales people know that they need to develop a relationship with their clients. If they don’t know this in today’s society and business climate, then they are probably living in a coal mine in Tibet. However, what they may have difficulty with is knowing what to do to develop that relationship and how to do it. Sales training and a sales process are the keys to knowing the “how”.
The “what” to do is addressed by a CRM (Customer Relationship Management) strategy combined with CRM technology. This strategy and technology combination helps sales reps with knowing what they need to do next in order to move the relationship forward. For instance, given the right contacts at an account, they may need to establish a meeting with the decision maker, schedule a demonstration, and develop a proposal. However, these are just the mechanics of a sales process – the “what” to do for each step of the way.
While the mechanics are critical to the sales process, what they don’t address is the “how”. How do sales reps reach the decision makers to set up a meeting? How do they develop the best solutions-based proposal? How do they demonstrate the product in a fashion that reveals the best solutions to the prospect’s problems? The way to build a relationship with a client is to learn the “how” of selling, which is obtained through sales training. Sales training comes in many shapes and forms, but the best ones are those that follow a process. Each step of the process moves the relationship one step closer to a win-win solution and encapsulates the selling skills necessary within each step.
A basic flaw in many sales rep’s style is to try to solve the client’s problems by educating them with a product pitch. Customers, especially decision makers, are not interested in the technical details. What they need to understand is how your solution will fix their problems and remove their pains. What often happens is that sales reps tend to make these product pitches to lower-level employees who are not the decision makers. Obviously, this wastes everyone’s time. What needs to be done instead is to focus more on asking the right questions, listening carefully to what the client is saying (and implying), developing the right solution using your products or services, and presenting those solutions as they directly relate to the client’s problems, all done with the right decision maker.
Each of these steps, and more, are learned processes and skills. The saying, “Good sales people are born, not made” is false. Selling is a science, not an art. With proper sales training and a solid sales process, nearly anyone can become a successful sales professional. So what does a good process look like and what are the skills needed for each step?
Let’s look at one in particular, the PEAK Sales Process. PEAK is an acronym, which stands for: Prospect, Engage, Acquire, and Keep. This pyramid diagram below depicts the steps in the PEAK Sales Process where each step builds upon the prior.
Step one, Prospect, is where the initial contact is made which involves cold calling in order to find a candidate client. At this point, this is really just a raw lead rather than a qualified prospect. Here, the training would involve how to make cold calls, your attitude, the first impression you make, and the approach you make during the first phone call or meeting. Once you’ve prospected and found a candidate, you need to Engage them in the process of the sale. This training involves learning how to qualify what is now considered to be a suspect by asking the right questions and listening carefully to their responses. Listening skills are paramount at this stage since the next steps in the process are based on what information is discovered in this engagement stage.
The goal of the engagement stage is to understand the client’s problems and requirements in order to match the right solution to their needs. As a result of good questioning and listening, the sales rep will not only understand this critical information, but they will also ensure that the suspect is fully qualified. To be qualified, the client must have a budget, have the authority to make the decision or at least introduce you to the decision maker(s), have requirements for which you have good solutions, and be able to make a decision and purchase within a reasonable timeframe.
Once qualified, the next stage is where you Acquire them as a new client. This involves moving them from being a suspect to a prospect. In the acquisition stage, the sales rep presents and proposes their solution, negotiates with the client, handles objections, and closes the sale. If the prior stages were handled correctly, then this stage becomes much easier since the client’s needs are fully understood, they basically told the sales rep what they need, the sales rep’s trust and credibility should already be established, and the close becomes a natural progression of the process, as opposed to the typical “dreaded event” that most sales reps fear and loath. Hence, the goal of the acquisition stage is to get the prospect to become a customer.
The final stage is where we Keep the customer. This is where they become a full-fledged customer and when the relationship is most important. Unfortunately, many companies do not have a customer retention strategy and lose the long-term relationship, and hence any forthcoming business potential. An on-going relationship after the sale is critical to your future business and viability. There are several steps and skills necessary to ensure this relationship continues and to make sure your customer becomes, and remains, loyal to your business.
Having a clearly defined sales process with specific skill sets for each stage will ensure that your sales reps will replicate their successes and become more consistent and effective. Regrettably, many sales reps are not trained or experienced with these skills, nor do they perform them in the right order because there is no process. They ask the prospect questions when they should be closing or they try to close when they should be qualifying or they do a myriad of other actions at the wrong stage of the sales cycle. Performing the right actions at the right stages of the process is the key to successful selling.
With proper sales training and a first-rate sales process, your sales team will not only learn the appropriate skills but also when and where to apply them to become more successful. Thus, they will learn “How” to sell better. Combine this with “What” to do by developing a CRM strategy and using CRM technology, and you’ll have an unbeatable, world-class sales team.
Russ Lombardo is President of PEAK Sales Consulting, LLC and an experienced CRM and Sales consultant, trainer, writer, speaker and radio show host. Russ works with businesses to help improve their customer acquisition and retention for increased revenue and success. Russ is author of the books, “CyberSelling”, “CRM For The Common Man” and “Smart Marketing”. He can be reached at 702-655-5652 and emailed at russ@peaksalesconsulting.com.
Categories
Fighting the Saw-Tooth Effect
Is this a familiar scenario? You’re this close to landing the biggest deal you ever encountered. The solution you are pitching is nearly one hundred thousand dollars and will keep you busy the better part of the long Winter months ahead and possibly into the Spring. You planned about 4 months worth of consulting and are eager to begin. Now, at the final meeting with your client, you are about to get the sweet answer you’ve been working hard to get for months. There’s not much else that compares to the excitement of getting a signature on a huge deal you’ve been working on for what seems like forever. But here you are, actually watching the client sign your order.
You’re set. You go out and celebrate that night with your spouse and talk about how much you deserved this and what it meant to your income and, of course, your business. The long hours. The pressure. The sacrifices. But now that’s all over and you got what you deserved. A huge contract that will yield a lot of consulting dollars for your relatively small operation.
The next day you order the products or materials from your vendor. It arrives in a couple days and having already set up the first meeting with your client, you set out with everything you need to begin work. The first few weeks would include discussions and interviews for the discovery analysis. Then the planning phase. And finally the customizations, implementation, training, and roll out. The plan is perfect and you are the right man, or woman, for the job.
Reality Hits
Did you ever wake up out of a dream and have no idea where you are or how you got there? Well, that’s how you feel months later when you realize that your project is coming to a close. It is a great success. Your client loves you. The users are getting on board with the project and are very enthusiastic. The program works like a charm. Everything is coming together. Except for one thing — Your Business! You suddenly realize as you finalize this long-term project that your business is totally stagnating, and you have no idea how you got to that point.
As if you were a prisoner being paroled after a 20 year sentence and seeing how society has totally changed in your absence, you emerge to find that you have absolutely no opportunities lined up to pursue. Worse than that, your vendors thought you went out of business. You lost all your status as a premier reseller or buyer, which means you lost all the privileges from your vendor’s reseller program; such as leads, special promotions, co-op dollars, attention from their local field representatives, and most important, a higher discount rate that is based on volume sales. You also shot yourself in the foot by not generating any leads yourself through marketing activities you could have been doing over the past several months. So your pipeline is dry, no one in the area knows of your business any more, and you are back to ground zero.
Has this ever happened to you? If it hasn’t it could. In this example, months ago you thought you were such a huge success, pulling in a large deal involving huge revenue for your business. How were you to know that at the same time you were destroying the very business you were trying to build?
What To Do?
If this, or something less dramatic yet similar, has ever happened to you, then you could be experiencing the Saw-Tooth Effect. What’s the Saw-Tooth Effect? It’s all very simple to understand. But not many businesses realize it until it is too late. Here’s how it works. Draw a horizontal line. Above the line are marketing and sales related activities. Below the line are technical and implementation related activities. In the beginning of your sales cycle you spend all your time above the line marketing your business, generating leads, and closing a sale. Then you “disappear” for a finite amount of time below the line implementing the solution you just sold. When that job is completed, you go back to the above-the-line activities and start all over again. This up-and-down process repeats itself until something breaks – usually your business.
While below the line, you do nothing above the line. And, when above the line, you do nothing below the line. Pretty simple and quite binary – you do one or the other. But the problem is, when you’re below the line, no one is above the line generating business and finding your next opportunity for when you rise above the line again, or re-emerge from your project implementation.
Recommendation
This scenario is a classic example of what happens to smaller businesses who haven’t staffed up properly. To resolve this self-defeating situation you, as the business owner, may need to do a lot of soul searching to decide what it is you are really good at versus what you really like to do. You may realize that you really enjoy selling solutions and would benefit most by concentrating all your energies on the sales and marketing activities (above the line) that your company will need to do to succeed.
Let’s say that is the case and you decide to focus on sales and marketing. You’ll then need to hire staff to do all the technical work. Now, you shouldn’t go overboard and hire more people than you could initially put to work. Let’s say you remember how important it was to do the up-front planning and discovery analysis, not to mention the on-going project management. So you first hire a project manager who is experienced with doing the planning phase. Next, you hire a technician who would concentrate on implementations. Your project manager, or even you, would do the training initially until you have enough business to sustain a full-time trainer. But first things first.
Your plan will be to spend your time marketing, selling, and running your business, all above-the-line activities, while your technical people spend all their time below the line. While they are doing the implementations, you’ll be generating new business for them to implement. You will build and feed your “Pipeline”.
You have to go out and catch the lion. Then you bring it back and throw it into the tent where someone else skins the lion while you go back out and catch the next one. The question is – Do you want to “catch” the lion or “skin” the lion?” This will, and should, have a dramatic effect on your business; specifically its growth and success. In time, as your business continues to grow you can start hiring sales people, which will allow you to focus more on running your business, or even taking some well-deserved time off.
Summary
You have undoubtedly looked at a saw and noticed how the teeth go up and down and up and down and so forth. But, have you ever noticed a similarity in how your business might be following the same pattern? Sales go up for a while, then down, then up again and down again, repeatedly. If you haven’t noticed, you might want to take a closer look.
One telltale sign that you suffer from the Saw Tooth Effect is your purchasing patterns. Do you purchase a lot of products or material every other quarter, for instance? Or, is there some sort of pattern that has you purchasing something now, then nothing for a while, then something again, then nothing for a while, and so on? These are signs that you might be going through a specific mode of operation of buying product, implementing it, then buying more, and implementing it, over and over again, instead of having a consistent and perpetual flow of selling and implementing on a continual, parallel, and steady basis. You cannot do both selling and implementing. You never see a NASCAR driver get out and change his own tires, do you? If he did, he’d lose the race every time. You need a team of specialists who focus on their own aspect of the business.
The Saw Tooth Effect is not a healthy business model for your company since it doesn’t allow you to sustain a consistent revenue flow. The scenario discussed earlier was perhaps an exaggeration of what is happening in your business, although I have seen this happen to various sizes of business. Even if it reflects only partial reality, it is something to be concerned about. It’s all a matter of balancing resources. Some resources should be dedicated to marketing and selling, while others should focus on installing and implementing. Using the same resources to do both can cause the Saw Tooth Effect and result in inconsistent revenue and growth for your business, which can lead to a variety of negative effects including poor customer retention and harmful relationships with your vendors, not to mention your accountant.
As you plan your business’ future, be sure to take into account the Saw Tooth Effect and how you can avoid it. It will truly liberate you from the prison of inconsistent business growth.
Good luck and good selling!
Russ Lombardo is President of PEAK Sales Consulting, LLC and an experienced CRM and Sales consultant, trainer, writer, speaker and radio show host. Russ works with businesses to help improve their customer acquisition and retention for increased revenue and success. Russ is author of the books, “CyberSelling”, “CRM For The Common Man” and “Smart Marketing”. He can be reached at 702-655-5652 and emailed at russ@peaksalesconsulting.com.