How Much Is Customer Retention Worth To You? by Jerry Hocutt

You can quickly tell which sales managers have gotten to their position because they were true professionals, and which got to their position because of politics, by asking one question. When they answer the question it also tells you what they think about their customers. The question? “What do you think about paying salespeople for add-on business to existing accounts?”

The political sales manager is against it because the controller, CFO, and other executives who have never sold are against it. To them, commissions are an expense and not an investment. At one Fortune 500 company I worked at, the new and sixteenth sales manager in four years, came in and took away 90% of the salespeople’s accounts and gave them to in-house service representatives.

Eighteen months after this happened, the company lost several thousand customers that it never got back. One of the managers told us later that the reason the sales manager did this was because when customers added on new products to their accounts, the company didn’t want to pay the salespeople a commission because “they didn’t really work as hard to get the add-on sale” and by letting the service people take care of add-ons there were no commissions to pay. Companies give lip service to the “churn rate” (customer turnover), but often undercut the people who could keep the customers to begin with.

Sales managers should be advocates for their salespeople

The professional sales manager will fight management to make sure salespeople are paid their full commissions. These sales managers really had to sell, meet quotas, and make customers happy. They understand the value of customer retention. Not only are your customers happy with all the work you do, but they give you referrals within their organizations and to friends in business. They buy more without a longer selling process. They rarely negotiate for a better price or terms like a new customer will. If they leave their company, they will often take you with them to their new company.

These sales managers know that it takes a professional salesperson to understand the nuances of selling: a word spoken or not spoken, a glance of the eyes, a clearing of the throat, hesitation in answering a question, or a subtle handshake. Because of the on-going relationship the salesperson has with her customers, she can read these nuances in the right context and save many accounts. Professional salespeople pick up these clues on every contact, on every add-on, with the customer.

What a free agent salesperson can do to your business

Is customer retention important? Why do you think companies have always tried to get their salespeople to sign non-compete contracts. Customer retention is not maintained because the customer has your service or product. It’s because of the relationship the salesperson has with the customer. They don’t want their salespeople taking their customers with them when they leave.

How important to the bottom line is customer retention? The Harvard Business Revue found that the average organization loses 50% of its customers every 5 years; and the cost of replacing them can be 6-7 times more expensive than winning them in the first place. Studies have proven a 5% increase in customer retention can result in profit increases of at least 20% and as much as 80%. Is the commission paid for the add-on business worth it? You decide.

Customer retention is built by communication. It’s built by educating the customer about how you can help them reach their goals. It’s built by relationships. There is no shortcut to keeping the customers you have. It’s hard work that a good salesperson makes look easy. Good salespeople know the value of customer contact – because they know that every contact sells.

About The Author:

© 2009 Jerry Hocutt. Read more articles by Jerry at his blog http://footinthedoor.squarespace.com/journal and listen to a free preview of his CD/MP3 audio program Cold Calling for Cowards® at http://www.footinthedoor.com/freepreview.html.

Kentucky Fried Chicken by Jim Meisenheimer

Kentucky fried chicken began in 1952. Colonel Sanders
awarded Pete Harman the first KFC franchise. They sealed
the deal with a handshake.

In 1960 there were 190 KFC stores and 400 franchised units.

Fast forward to 1979 and KFC had 6000 restaurants
worldwide.

In 2006 more than 1 billion chicken dinners were served
in more than 80 countries around the world.

I've had KFC fried chicken. I happen to be a diabetic
and the grease covered chicken plays havoc with my blood
sugars - which of course I have to monitor.

Enough about that.

Please do me a favor. Stand up and walk over to the
closest wall. Stand right next to it with your nose on
the wall.

Now imagine the wall is your business. It's the world
you live and work in. When you're standing this close
to the wall (Your business) it's easy to lose your
perspective.

Okay where am I going with this?

You don't have to read the daily newspaper or watch the
network evening news to know the business landscape is
very challenging today.

It's challenging for salespeople. It's challenging for
companies. It's extremely challenging for senior
executives of these companies.

This is no time to put your head down and whine about
the economy.

These are the best of times - if you imagine them to be.

In fact, 20 years from now, these will become the "good
old days."

There are opportunities everywhere - but you have to be
looking and receptive to them.

Take the Pyrex measuring cup for example. You have one,
your parents have one, and if your grandparents are alive
they'll have one. And there's a good chance you have more
than one.

I just looked in my kitchen cabinet and we have six
Pyrex measuring cups.

During the 1980s, both ends of the handles were attached
to the cup.

Sales were dismal because everybody and their aunt Bertha
had more measuring cups than they needed.

So what were they going to do?

As Henry Ford once said, "don't complain, don't explain,
deal with it."

And that's what Pyrex did when they invented the stackable
measuring cup.

And what do you think happened to sales - sales took off
because they changed the handle and had something new to
talk about.

KFC has been around for 57 years selling fried chicken.

Someone got the brilliant idea that KFC should sell
grilled chicken.

And here's what a KFC recently said.

"Clearly, we're bringing in a lot of new customers,
We're exciting a lot of people about the brand who
haven't been excited about the brand before. And that's
really helping the business grow."

Before you write off your business possibilities consider
what Pyrex and KFC did.

Nothing more than a product tweek.

What can you week to jumpstart your sales?

Step back from the wall. Get people from the outside
to step inside your business.

In my opinion there's no one better positioned in a
company to come up with revolutionary new product ideas.

It's you - the road warrior called sales representative.

It's time to get excited about your business again.

It's not too hard to believe that in 2029 - these will
be considered "the good old days."

About
The Author:

Jim is a
Sales Strategist and is the creator of No-Brainer Selling Skills.
He shows salespeople and entrepreneurs how to increase sales,
earn more money, have more fun, and how to do it all in less
time. His focus is on practical ideas that get immediate results.
He offers Advanced Sales Management Workshops, Sales Coaching,
Consulting, In-house Sales Training Programs, and a wide variety
of Learning Tools i.e. books, special reports, sales manuals,
and CDs.Jim Meisenheimer
is a member of The National Speakers Association, where he earned
the C.S.P. designation, Certified Speaking Professional. He
has authored five books including, "The 12 Best Questions
To Ask Customers," and the recently published “57
Ways To Take Control Of Your Time And Your Life”.

Websites: http://www.startsellingmore.com/

http://www.meisenheimer.com/

Profile of a Serial Deal Killer - Four Crimes You Must Avoid in Today's Economy! by Tim Wackel

Times are tough for sales professionals everywhere. Customers are slashing budgets, shuffling business priorities, reorganizing internal responsibilities and avoiding almost every unnecessary risk. Today's business climate has many prospects running scared and spending time with a salesperson is not exactly at the top of anyone's list.

So what can you do to increase your chances of sales success in this turbulent economy?

Hint: The answer is right there in your mirror. That's right. . . it's YOU!

It's easy to blame the weak financial markets, the relentless competition or even the boss's unwillingness to negotiate as primary reasons for your lack of success. Hiding behind these excuses is simple and painless. But unfortunately it also creates the perfect environment to start losing your edge. Given enough time, you'll find yourself turning into a serial deal killer.

Here's a quick countdown of the four worst "selling" crimes being committed today and some practical advice on how you can avoid them.

Crime #4 – Assuming "no" when you really don't "know"

Stop assuming they won't take your call, agree to an appointment or do business with you. Too many reps simply give up because they don't hear back from prospects right away. They throw proposal after proposal out the door and then lose interest in following up because they get distracted chasing the next opportunity.

Please understand that I'm not giving you license to become a pest, but I am encouraging you to become more persistent. Quit making decisions for your prospects and move forward the remainder of this year with a relentless "go for no" attitude. Sure you'll face a little more rejection, but that helps clean out your funnel and forces you to focus on the right opportunities. I know it hurts to lose, but you can't lose what you don't have. And you just might be surprised how many times you'll hear a "yes" if you're willing to stay engaged.

Crime #3 – Talking too much

Many sales people get hired because the have the infamous "gift of gab." There is a pretty good chance that you've worked with someone who loved nothing better than the sound of their voice. These reps are great at telling stories, but they struggle to connect and create deeper dialogue with prospects and customers.

Many customers are being asked to do more with less today. Spending time with an overly friendly (see all chatty) sales rep isn't a priority, it's a liability.

Being able to clearly and succinctly articulate a compelling story is vital to your success. Your goal is to be brief, be bright and then be gone.

Before you make your next call, ask yourself; why, given all of the competitive alternatives available, should this prospect want to do business with me right now?

Crime #2 – Failing to ask for commitment

One of the major reasons reps don't get the business is because they hesitate to ask for it. Don't focus on the outcome, focus on the process. If you've done the right things in the right way, it becomes your professional responsibility to be assertive.

When should you close? Early and often! Asking for little commitments along the way makes asking for the final commitment much easier. Plus you'll quickly learn how realistic the opportunity is. Customers who are unwilling to make small commitments along the way are going to be even less enthusiastic about making a bigger commitment later on.

Crime #1 – Purposely (or mistakenly) using less than adequate skills

If you're going to sell more every year, you need to get better every year. Sales people who think they're done learning are usually just done. And that's OK if your closing question is "Do you want fries with that?"

There is an abundance of sales books, tele-seminars, podcasts, webinars, and sales training programs available today. What are you waiting for?

So where should you focus? Start by honestly answering a few of these questions.

How much preparation are you putting into each call?

Are the questions you ask thought provoking or mind numbing?

How valuable are your ideas (i.e. would prospects pay for them?)

What are the top three obstacles that prevent deals from closing?

How do you clearly and concisely address these obstacles?

What are you doing every week to help build better relationships?

Make a commitment right now to sharpen some of your selling skills. I'm confident it will help you win more opportunities and create more success!

It takes courage to admit you could be a better sales rep and confidence to believe you can change; it takes nothing to create excuses.

Speaking of Sales is about finding, winning and keeping customers for life. If that's part of your job, then you won't want to miss the next issue.

Best Wishes For Your Continued Success!

Tim Wackel

tim@timwackel.com

214.369.7722

Tim Wackel is hired by sales executives who want their teams to
blow the number away. Tim’s “no excuses” programs
are insightful, engaging and focused on providing real world strategies
that salespeople can (and will!) implement right away. Sales teams
from BMC Software, Cisco, Fossil, Hewlett Packard, Allstate, Thomson
Reuters, Raytheon, Pricewaterhouse-Coopers, Catalina Marketing,
Philips Medical Systems, Red Hat and TXU Energy count on Tim to
help them create more success in business and in life.

Sales Compensation: Why 100% Commission Plans Don't Work by Alan Rigg

Many companies make the mistake of using 100% commission sales compensation plans.

Why do they do it? They feel a 100% commission plan will minimize their financial risk, as no sales made means no commissions paid. Besides, any salesperson that is any good should have enough faith in their own ability to work on 100% commission, right?

Wrong! Any salesperson that IS any good knows it takes time to build an opportunity pipeline, regardless of how much experience they have or how robust their personal network is. Plus, they must invest considerable time and effort to learn about their new employer and its products and services. They still need to pay their bills while this learning and pipeline building takes place. Not surprisingly, these talented salespeople usually choose to work for employers that are willing to invest in them.

If you run an ad for a 100% commission sales job, what kinds of candidates are you likely to see?

Usually they will fall into the following three categories:

1. Manufacturers' Representatives: These salespeople work as independent contractors, not employees. Usually they sell a portfolio of products and services on behalf of multiple clients.
   

   Make no mistake - these are mercenary salespeople. The amount of time and effort they will invest in selling your company's products or services will correlate directly with the amount of return they feel they can earn on their investment. If other client companies offer more lucrative compensation plans, a monthly retainer, or do a better job of providing leads, don't expect to see much activity for your company's offerings.

   
   


2. Newbies:These candidates are exploring sales as a career for the first time. Because of their lack of experience, they may have difficulty finding jobs that aren't 100% commission; or, they just may not know any better.
   

   Newbies may or may not have the talents required for success in your specific sales job (80% of them won't), and they probably don't have the first clue about how to build a sales opportunity pipeline. Still, they may be willing to come on board and grind away for a few weeks. However, if they don't luck into some early sales, chances are they will drift away and look for an employer that is willing to teach them how to sell and pay them something while they are learning.

   
   


3. The "Other 80 Percent": It is rare for a salesperson with both talent and experience to consider a 100% commission sales job. If an "experienced" salesperson is willing to take your 100% commission sales job, they usually belong to the 80 percent of salespeople that produce 20 percent of sales!
   

   Perhaps this salesperson is making a last-ditch effort before giving up on sales. Perhaps they need to be able to say they are employed while they search for another job. At any rate, the odds are very poor that one of these salespeople will ever deliver more than mediocre performance.

   
   

Lack of Salesperson Accountability

Another challenge unique to 100% commission sales compensation plans is you lose the ability to hold salespeople accountable for performing administrative activities. These activities include attending training sessions and sales meetings, working from the office on specific days, and updating records in your company's contact management system. If a 100% commission salesperson doesn't do what you ask, so what? What have they got to lose?

One 100% Commission Concept That CAN Be Successful

There is just one 100% commission concept that I have seen produce good results with some consistency. It is where:

• The company supplies most or all of the salesperson's leads
  
  
  
  


• The leads are of reasonably good quality
  
  
  
  


• The sales cycle is relatively short (ranging from a one-call close to no more than several weeks in length)

This combination of circumstances can enable salespeople to begin earning commissions quickly. Plus, they don't have to prospect, which is an attractive proposition to many salespeople. This increases the chances that quality salespeople will be willing to accept the position and be able to earn enough money to motivate them to stay in the position.

©2009 Alan Rigg

About the Author

Sales performance expert Alan Rigg is the author of How to Beat the 80/20 Rule in Sales Team Performance, and the companion book, How to Beat the 80/20 Rule in Selling. His 80/20 Selling System™ helps business owners, executives and managers end the frustration of 80/20 sales team performance, where 20% of salespeople produce 80% of sales. For more FREE sales compensation information, visit http://www.8020sales.com/sales_compensation.html.

How to Build Relevant Rapport by Mike Brooks

We all know the importance of building rapport over the phone.  Let’s face it, people tend to do business with people they like, know or trust.  What you may not know, though, is that talking about the latest sports scores or schmoozing about vacation spots is not an effective way to build rapport and often just lengthens the call, dilutes your message, and gets you no closer to the deal than you were before you wasted all that time.

If you want to truly connect to your prospect and build the kind of rapport that will actually influence and lead to a closed deal, then you need to learn how build what I call, “Relevant Rapport.”  Relevant rapport means taking the time to talk about the issues your prospect is going through or what they’re trying to solve, and then expanding on these relevant issues and letting them know you understand exactly what they’re trying to accomplish and explaining how you are uniquely qualified to help them.

Remember, your prospects have a need they are looking to you to help them fulfill, and the more they feel you understand their needs and can help them, the more likely it is they will do business with you.  So, how do you build relevant rapport?  You start by asking questions related to their specific work related situation.  For example, instead of asking:

“So where did you go on vacation?”  Ask:

“Now that you’re back from vacation, I’ll bet you’ve got lots to catch up

on.  How can I help you?”   Or,

“You’re probably buried now that you’re back on vacation.  I’d be happy to refill your normal order from last month and take that bit of business off your plate.  Would that help you?”

Instead of asking:

“Are you excited about the upcoming football season?”  Ask:

“As we head into the fall, what are your top three priorities for increasing revenue?”

Then layer by asking:

“You know _________, I’m working with another client who is facing the same challenge this quarter.  What I proposed for him is to (then explain your solution).  Do you think that might help you as well?”

The point of relevant rapport is that your prospect will like you more and trust you more if you show an interest in their problems related to business, rather than their problems outside of business.  Just remember that your prospect is under just as much pressure to do their job as you are to do yours.  Who would you be more interested in talking to – a prospect who wants to talk about the latest diet, or a prospect who wants to place an order?  Thought so.

I challenge you this week to go out and begin connecting with your prospects on issues related to what they are doing for 8 to 9 hours a day – trying to get their jobs done.  When you can show them how to do that better, faster or easier, then you will have truly made the connection with them that counts the most.  That’s what building relevant rapport is all about.

About The Author:

If you would like other real life techniques and scripts that will help you connect with your prospects and close more deals, then download Mike’s

Ebook: “The Complete Book of Phone Scripts,” which is packed with word for word scripts and techniques that you can begin using today to make more appointments and close more sales.  You can get it by clicking here:

http://www.mrinsidesales.com/scripts.htm

Mike Brooks, Mr. Inside Sales, works with business owners and inside sales reps nationwide teaching them the skills, strategies and techniques of top 20% performance.  If you’re looking to catapult your sales, or create a sales team that actually makes their monthly revenues, then learn how by

visiting: http://www.MrInsideSales.com

Cheap Psychological Tricks - It’s All in the Mind by Jerry Hocutt

Perry Buffington, Ph.D., wrote a neat little book I recommend (same title as this article) that I found on the bargain table at Barnes and Noble. He has 62 simple mind tricks that you can use in your business and personal life.

Cheap Trick No. 13: “Statistics from information theorists show that what you know is important 12.5 percent of the time, but who you know is important 87.5 percent of the time.” He points out that very few people are unapproachable. You just have to find that right person in the chain (could be an executive assistant or gatekeeper) and work your way up.

Joe Girard is famous for his Law of 250: every person you know, knows 250 others you don’t. I’d like to update his finding. Let’s call it the Law of Twitter: every person you know could have 1000 followers.

Cheap Trick No. 24: Your in-built circadian rhythm clock controls your peaks and valleys. The best time to hold meetings, and make and return phone calls, is 8:00 a.m. – noon. In fact, introverts peak between 8:00 – 10 a.m., while extroverts are most productive between 10:00 a.m. – noon.

The best “analytical time” is 2:00 – 5:00 p.m. This is when you want to attend to details and avoid personal interaction (including phone calls). If you call someone on the phone in the afternoon, you’re more likely to get a “no” to your request.

Why do most people get their pink slips on Friday afternoons? Because it’s the end of the week and late in the afternoon when people are confrontational, feeling their “oats”, and have less empathy. They’re primed for a fight and it will be easier to be ruthless.

Cheap Trick No. 30: Most people buy gifts based on the person’s personality. Don’t. Such gifts are often re-gifted and passed on. Instead, consider someone’s activities and hobbies and choose a gift accordingly. Do they like to run, hike, or bike? Are they computer gamers? Is photo their hobby? Hang gliding their passion? They will appreciate any gift in their gifted areas of fun.

Cheap Trick No. 41: Avoid watching the news since 70 percent of all your sensory intake is visual. Don’t avoid the news, just don’t see it. Instead, listen to it. “Hearing about a tragedy does not have the same impact as seeing it depicted graphically on television. Radio news tends to be shorter, more terse, and less likely to suffer from the emotional sensationalism inherent in television programs.” Reading the news is even better since the written word doesn’t have the emotional impact of visual demonstration.

Cheap Trick No. 51: Strip away people’s masks and get personal. Masks take the form of titles (Doctor, Ph.D., CEO, Ms., Mr.). Even the telephone is a mask people hide behind. (Why it’s easier for someone to say “no” on the phone, rather than reject you face-to-face.)

Buffington says that people who wear masks are less compassionate and more likely to harm others. (The Lone Ranger excluded.) People wearing masks can deliver more hurt to you with less hurt to them, because you’re an object to them and they can remain separate from you. If you’re talking with your physician, call him or her by their first name and not “doctor”. You’ll bring them to a personal level while getting honest information delivered empathetically. (Again, there are exceptions: see “House”.)

Note the irony: the author Buffington uses his mask (Ph.D.) on the book’s cover, title page, and preface.

Cheap Trick No. 54: An important interviewing trick is to respond to the prospect’s questions or statements with a simple “Oh?” This will get people to give more details and elaborate on their thoughts. “Oh” is simply a way of saying “Continue”.

And when you ask “What do you think about that?” or “What’s your take on the situation?” you turn the other person into an expert and they’ll like you even more.

Simple mind games. With a twist.

About The Author:

© 2009 Jerry Hocutt. Read more articles by Jerry at his blog http://footinthedoor.squarespace.com/journal and listen to a free preview of his CD/MP3 audio program Cold Calling for Cowards® at http://www.footinthedoor.com/freepreview.html.

Dead Horse Sales Management By Brian Jeffrey, CSP

(Note About Author: If you enjoy the below article, then please join Brian Jeffrey for our upcoming teleseminar Teaching Old Dogs New Tricks and Salvaging Problem Salespeople. Can't make the seminar? Order the cd.)

If you’ve been around for any length of time you’ve undoubtedly heard the term, “flogging a dead horse.” The concept, of course, is that flogging a dead horse won’t get it to run any faster (or run at all for that matter). And while the term is generally applied to discussing a topic to excess and to no avail, it can also apply to sales management.

As sales managers, part of our job is to get the best out of our people. Now, while I’m not a big fan of flogging my people, either physically or verbally, to get them to run faster, sometimes the technique has some merit. Before we look at flogging as a motivational technique though, let’s take a brief look at the various types of horses that are out there.

Racehorses

Really good salespeople can be compared to thoroughbred racehorses in that they are, or can be, competitive, eager to perform, highly strung, temperamental, good at what they are trained to do, etc.

It’s interesting to note that the horses don’t just get put on the racetrack and let loose. They still have to be ridden to achieve the goal of winning the race.

Guess who the jockey is when it comes to salespeople? You got it!

Also Rans

It’s only the top three horses in any race that get any publicity and who pay off in the end.

In the sales race, it’s usually only the first past the post who gets the sale and is declared the winner. All the rest are also rans. As long as the also rans win the occasional race, they’re spared the trip to the glue factory.

As a sales manager, your job is to make sure that your also rans win enough races to pay their way, and then some, or it’s off to the glue factory, figuratively speaking.

Nags

Every now and then a horse finds its way onto the racetrack that simply never should have been there in the first place. This is an extremely rare occurrence in horse racing but an all-too-common occurrence in the sales race.

If you can’t revive them, give them a decent burial and replace them with some racehorses.

Training for Performance

Racehorses constantly train in order to stay in top form. Too bad more salespeople didn’t do the same!

I was in the sales training business for over 20 years and the usual scenario that led to my doing sales training for a company was that sales weren’t what they should be so the company would engage my services to give sales a boost. This rarely happened for two reasons. And when sales didn’t immediately happen I, as the trainer, usually got blamed.

The first reason why sales didn’t immediately take off as the client hoped was that any sale is usually the result of something the salesperson has been working on for some period of time, often several months. So the drop in sales that a company is experiencing today is the result of something that happened, or more likely didn’t happen, several months before.

Similarly, any boost in sales that is a result of the sales training is unlikely to be experienced for several months.

You may think that several months is excessive. Not necessarily so. When I analyzed the sales cycle at my sales training company, it ran anywhere from 60 days to over two years. But the average length of time from, “Hello” to “Thanks for the order” was seven to nine months.

Do you know what your average sales cycle is? It might be interesting to find out.

The second reason why sales didn’t always take off was because I was basically brought in to train pigs to fly. I was being asked to train people to sell who should have never been in sales in the first place. By the way, trying to train pigs to fly usually annoys the pigs and frustrates the trainer.

How About You?

Don’t be too smug. How sure are you that you have a bunch of winners?

One of my previous clients with over 50 salespeople wanted to engage my sales training services. Before I accepted the project, I asked to have an opportunity to assess their team, using our sales assessment, to get a better idea of just who (or what) I was going to train.

You’re probably familiar with what a statistical bell curve looks like. It’s a distribution curve of results that looks a lot like a bell with a bunch of results in the center and tapering off as you get to both the high and low ends of the curve.

Well, the results from the assessments showed a small peak at the high end (top performers – the racehorses), a dip in the center (good performers - the also rans), with the bulk of the people clustered around the low end (poor performers – the nags and dead horses).

The company had been trying to get results from a lot of people who probably should have been doing something else for a living. Basically, they were exercising dead horse sales management techniques, trying to flog a dead horse, or a bunch of dead horses in this case, to get sales results.

As a sales trainer, I knew that the best I would be able to do is move some of the nags up into the also-ran category and perhaps breathe some life into a few of the dead horses. But there would still be some dead bodies left behind when I was done.

I briefed the company’s management on my findings. Their decision and the results are best left for another article.

Bottom Line

The point is: Do you have the right people on your team to get your sales to where they ought to be or are you flogging a bunch of dead horses? It’s a frightening thought, but it might be better to find out now rather than later.

If you do have a bunch of potential winners but the sales still aren’t where they should be, then maybe you have a sales management challenge and you should be flogging yourself.

Either way, happy flogging!

-0-

About the Author

Brian Jeffrey is President of Salesforce Assessments Ltd. His company works with sales managers who want to make the right hiring decisions and build a strong sales team using his sales assessment test. For more articles like this and your free copy of "The 8 Biggest Hiring Mistakes Sales Managers Make" go to => www.SalesforceAssessments.com

How to Cut Their Costs and Raise Your Sales by Art Sobczak

Greetings!



An entire special section in the Wall Street Journal focused on businesses cutting costs.



A USA Today article discussed how
more people are opting for credit cards that
just don't give airline or other travel points,
both those that can cut mortgage payments,
or reduce their monthly interest expenses.



And as you likely have experienced, buyers
everywhere have been instructed to squeeze
their suppliers for the best deal.



Yes, a hot issue today is cutting costs.



And, any biz school student can tell you that
to increase profits, you can increase revenues,
or, you guessed it, cut costs.



Is that something you can affect?



How do you help companies or individuals
control or cut costs? (Which, in turn, increases
profits.)



How are you doing it?



Of course, before you go crazy with the
idea, it's important to understand whether
your market is interested in cutting costs.
If so, capitalize on it.



Here are some specific ways to do so.





During Conversations With People Other

Than Your Decision Maker

As I always preach, get information from
anyone and everyone before speaking with
your decision maker. So, ask questions
of admin assistants, others in your buyer's
department, or anyone for that matter:



"What are the initiatives in your division/
group/department? Cutting costs? Increasing
productivity?"





"Has there been an emphasis on cutting

spending lately?"





Then, if you learn, or know, that cost
cutting and expense control is important,
you can work that into your call strategy.
Here are ways to do so.





In Your Opening Statements

Based on what you know about your prospects
and customers, you could use words and phrases
like these. Think of how you could customize
these to to fit in what you sell and what you
could do for them.



For example, you could say,



"Ms. Prospect we help companies to ..."



...cuts the costs of...



...reduce expenses on...



...trim the fat from...



...lower the payments on...



...lessen the...



...control the costs of...



...reduce interest rates on ...



...eliminate the waste of...



...minimize the number of ...



...prevent increases in ...



...pay less for...



...get discounts on...



...increase the amount of ____ they get,
for the same price they're paying now.



...reduce spending on...



...delay increases in...



...consolidate the bills for...



...take advantage of credits for...



...reduce their debt...



Of course, there are many other ways to
communicate how you can help control costs.
Saving time is another major area. Think of
ways you can include that as well.





Questioning

In your questioning, it's important to help
understand where they're bleeding.



Then, open the wound wider.



"What's that costing you?"



"What other costs are you incurring?"



"How is that affecting overall profits?"



The language of cost is universal. It touches
a nerve. If you can affect it, and it's something
that is important to them, that's a recipe for
your sales success.





Go and Have Your Best Week Ever!



Art



Quote of the Week

"Don't bunt. Aim out of the ballpark." David Ogilvy 

About the author:

Art Sobczak, President of
Business By Phone Inc., specializes in one area only: working
with business-to-business salespeople--both inside and outside--designing
and delivering content-rich programs that participants begin
showing results from the very next time they get on the phone.
Audiences love his "down-to-earth,"entertaining style,
and low-pressure, easy-to-use, customer oriented ideas and techniques.
He works with thousands of sales reps each year helping them
get more businesses by phone. Art provides real world, how-to
ideas and techniques that help salespeople use the phone more
effectively to prospect, sell, and service, without morale-killing
"rejection." Using the phone in sales is only difficult for people who use
outdated, salesy, manipulative tactics, or for those who aren't
quite sure what to do, or aren't confident in their abilities.
Art's audiences always comment how he simplifies the telesales
process, making it easily adaptable for anyone with the right
attitude.

Contact Info

Art Sobczak

Business By Phone Inc.

13254 Stevens St.

Omaha, NE, 68137

402-895-9399

ArtS@BusinessByPhone.com

www.businessbyphone.com

Asking Sales Questions Is Easier Said Than Done by Sam Manfer

Like you, I've been selling all my life and what I've learned is, asking good questions and listening effectively are the most powerful selling skills.  Unfortunately, the dynamics between sales people and prospects/customers, coupled with tension and old habits makes asking questions and listening very difficult to execute consistently. Yes, many of you will say, you ask questions and listen. However, I contend that most of you ask only cursory questions, listen superficially, and can’t wait to give their pitch. 

Questioning has levels -- simple, intermediate and advanced. "How are you?"  "Can I help you?" are basic questions. "What's your budget?"  "When will you need this?" are more intermediate. "Can we agree that you will order this next Tuesday?" "You seem hesitant. What are your concerns? " are more advanced.  To reap the benefits of questioning one must be able to easily transition from the simple to the more advanced. 

Effective listening involves understanding, which requires probing to truly comprehend what a person means by the words they speak. For example, when a person says, "I'm looking for someone who can give me good service." The words good service could mean all sorts of things. The effective listener will probe the prospect to explain what good service actually looks like to him or her. Probing encourages the prospect to fully reveal the vision of what s/he wants. This requires skill, preparation and patience. Finally, effective listening means the ability to recite back to the customer exactly what they just described. This solidifies understanding and builds credibility. 

So here are some tips on how to pull off these difficult tasks. 

1.      Prepare, Prepare, Prepare



Before a sales call decide what you wants to learn, i.e. budget, purchase date, decision-making process, etc. You must also build questions to get the prospect to open up and explain exactly what they want and why they want it. Once these questions are prepared, role-play asking them with an associate or practice alone in front of a mirror and out loud. You may think this is unnecessary, but ask any public speaker how they prepare. They all practice out loud in order exercise the muscles that form the words, and to hear how it sounds. Doing it in your head just doesn’t work.  That’s why athletes and teams warm-up and practice before a competition. 

2.      Determine What Words Are Importance to You



What words do customers and prospects use when describing their needs to you. Which words should they be using to describe the kinds of pain or opportunity that your products/services can impact? These are the words you want to be sensitive to hearing. When a prospect uses them, you want to be sure to probe them for meaning.  You also want to probe words that are ambiguous, such as dependable, low price, etc.  Don’t assume to know what people mean or you’ll do both you and the prospect a disservice.  However, before you can become comfortable probing, which sounds simple, you need to list all the words that have meaning in your products’/services’ world. Again, this may sound unnecessary, but until you go through the drill, these words will slide by you – as they do right now.

3.      Just Do It



Now you know what you want to learn. You have your questions prepared that will get the prospect to open up and speak freely about the purchase. You know what words to listen for. Now just go out and ask, listen, and probe. Sounds basic, but this is where you integrate your style and personality.  You’ll have to determine how you'll set up these questions, how you’ll transition into your probes and how you’ll feed it back to confirm understanding and meanings. The first few times will seem uncomfortable, but it'll quickly become second nature as you start seeing the outstanding results you get. So just go out and do it and you'll adjust accordingly to make it work smoothly. 

4.      Assess



How well did your meeting go? In other words, what went well, that you will do again in the future? What didn't work and needs to be adjusted? Sales calls should never be judged on outcome alone. They should be judged against your plan. For example, your plan is to ask questions to get specific information and to understand the customer's vision. Did your questions work? Were you able to probe meaningful and ambiguous words? Did the customer respond as you had hoped to the questions you asked? Were other words used that you weren't prepared to hear? These are the kinds of questions you should ask yourself and adjust your game plan for the next call. 

5.      Use a Coach



No one can coach themselves -- not Tiger Woods, nor Kobe Bryant, nor Derek Jeter, etc. They all have coaches that help them prepare, improve their skills and see things they can not see for themselves. Salespeople are no different. They need coaches -- someone to help them prepare and get better. Managers are usually assigned to this task, but many managers focus on closing business rather than improving their performers. Like relatives, you can't choose your manager, but you can choose someone to help you. Most salespeople feel that if they're employed they’re good enough. This is like telling a professional football player not to exercise during the off-season. A professional who wants to stay on top of his or her game needs to be constantly improving. As mentioned above, you can't do this without the help of a coach.



Use these tips to improve your questioning, listening and probing skills, and you'll soon be outselling your associates and your competitors. 

 And now I invite you to learn more. 

Bonus Tip:  Free Book -- “TAKE ME TO YOUR LEADER$”– The Complete Guide to C-Level Selling hardback version.  Network, get past gatekeepers, interact with executives, secure commitments and sell more than you ever thought possible.  Click this C-Level Selling Book Link  to learn more about this fantastic offer. 

Sam Manfer delivers key
note speeches and in-depth selling
work shops for those anxious to increase sales. His hands-on
coaching turns individuals and sales organizations into selling
whirlwinds. Sam’s selling awards and $ Million sales recognitions
support his methods. His book, TAKE
ME TO YOUR LEADER$ along with his Matching
Chemistry’s CD and sales seminars replace selling myths
and clichés that frustrate decision makers with a proven
approach that captures their attention. Follow Sam’s C-Level
Selling Blog for more insights. Sign-up for his free Selling
E-Zine.

Struggling to Find a Sales Job? by Jill Konrath

(Note From Author: Do you have friends who are struggling to find a job?If so, please let them know about Get Back to Work Faster - a book, website and free webinar series with a FRESH approach that shows how to create new opportunities, become a "must hire" candidate and land a job with no competition.

Get your FREE copy of Get Back to Work Faster today at www.getbacktoworkfaster.com/guide )

In today's economy, it's not easy to land a new position if you've been laid off. If you're like most job seekers, you're scouring the job boards and searching for any available posting that you might be qualified for.

You're frantically sending out cover letters and resumes. And, you're networking like crazy, but not getting very far since no one's willing to give you an informational interview any more.

But every once in a while you get lucky and get called for an interview. You prep like crazy to make a good impression, feel good about how it goes and then wait and hope – and wait and hope.

When you get called back for another interview you're elated, but then you crash when you find out they hired someone else. And this process just keeps repeating itself.

You know what? The traditional way of job hunting is broken. Seriously broken. It doesn't work when corporate decision makers are overwhelmed with a gazillion talented people applying for a job.

Resumes, like brochures, are tossed into wastebaskets after only a brief glance. Job seekers are ruled out for because they don't have the "perfect" features or they look like they might cost too much. And no one ever returns a phone call to someone who's unemployed!

As a seller, you've faced all these problems before. And, you've had to change your sales approach in order to be successful in the selling profession.

Now, you need to do the same thing with your job search. New strategies are needed if you want to get back to work faster! And the best thing is, they utilize all your best sales skills.

What's working today? To be successful in your job search follow these guidelines:

•     Clarify your sales value proposition.

•     Target companies you'd like to work for based on criteria you established.

•     Craft proactive campaigns to connect and meet with decision makers.

•     Share ideas on how you can help them achieve their key business objectives.

•     Continue to keep in touch; sharing even more ideas.

This approach capitalizes on your personal sales strengths. When you use it, you'll begin having business-focused conversations with potential employers. You'll be seen as an intelligent and enterprising person, not a desperate job seeker.

Best of all, you can create new opportunities where none existed before and get job offers extended to you without any competition.

For More Info

Jill Konrath, author of Selling to Big Companies, has just finished a book called Get Back to Work Faster, which will be out in paperback this fall.

Right now, she's giving it away for FREE as a PDF. Get your copy today! And, please share this info with anyone else who is looking for a job! 

About The Author:

Jill Konrath, author of Selling to Big Companies, helps sellers crack into corporate accounts, shorten sales cycles and win big contracts. She is a frequent speaker at annual sales meetings and association events.



For more articles like this, visit http://www.SellingtoBigCompanies.com . Get a free Sales Call Planning Guide ($19.95 value) when you sign up for the Selling to Big Companies e-newsletter.