Ali Ghaemi

Sales & Motivation

 Articles, Management, Uncategorized  Add Comments »
Jun 292010
 

Have you noticed how sales teams often have loud meetings and boisterous events to pump themselves up? Yet, this activity is seldom seen elsewhere. Whether the position has metrics (lawyers, doctors, truck drivers, teachers, etc.) or not (secretaries, assistants, handymen, etc.) other professions rarely engage in similar action to boost morale or pump up the group. Why?

For one, the energetic activity has short-term effect and could be self-defeating once repeated too often. Banging a gong can rouse people and certainly draw attention, but if repeated can lose it efficacy. In other words, this type of motivation is alas short-lived.

 

Why would managers follow such techniques: Perhaps the answer is a short term boost is warranted. Fair enough. Often though it is a lack of known alternatives or desperation that drives management to doing things that do not have the necessary impact. Management does not know about an alternative.

 

While the earlier mentioned behaviour has merit, one wonders what sort of an action could have a longer-term effect? The answer is training/education and the feeling that one is part of something bigger and in a team environment. Both are factors in competency and self-motivating. One of the requests and needs that employee clamour for, other than base pay and a work/life balance, is education. Not only is education motivating, but also the act of knowledge helps with consistent and longer-term enthusiasm that lasts beyond the adrenaline of a loud sales meeting. Simply put, people like doing what they are good at. On the flip side, how is it that managers often ask their salespeople to do what they do not know how to?

These are the goods for lasting motivation.

Being good at something provides for the self-sustaining adrenaline that drives the individual. Helping someone get there, coaching them for better results and allowing them professional education are longer term solutions for motivation.

Managers and organization should pay close attention because education credits and training are one of the pillars of sales employee satisfaction and simultaneously positively affect the salesperson’s performance. Performance clearly has to be measured, which suggests education and training need to be monitored and staff held accountable for practicing it.

Salespeople need skills. The motivation is a by-product of being good at their jobs.

HOW TO GET YOUR COMPETITION FIRED (WITHOUT SAYING ANYTHING BAD ABOUT THEM): USING THE WEDGE TO INCREASE YOUR SALES BY RANDY SCHWANTZ

 Book Reviews  2 Comments »
Jun 262010
 

YOU, YOUR PROSPECT & YOUR COMPETITION – UNSELLING THE COMPETITION

How To Get Your Competition Fired advances the idea of The Wedge, a sales methodology that not only takes the prospect into consideration, but also places an emphasis on the need to deal with existing incumbent or in-progress competitive pressures. Randy Schwantz honed his sales skills in the insurance industry; however, one cannot see why the ideas and scripts in his book would not apply to other industries. Speaking of scripts, Schwantz is adamant early on that he will offer concrete and tangible examples, which he fulfils. The book was provided to me by an ethusiastic CEO, which encouraged me to read it.

The Wedge, therefore, focuses on dislodging the competition or dethroning the current provider. The difference, however, is the book’s emphasis that the process should happen at the customer’s own volition. As the seller drives the process and executes the script, the customer is driven to ask for the seller’s goods or services. It is a risky proposition – claiming that a regimented and scripted approach applies universally – but there is much to conceptually like here.

The book’s core premise is that consultative selling is limited in scope with its emphasis of a two-way dynamic in sales, namely that of the buyer and the seller. The situation, this book emphasizes, is more akin to a triangle. Competition exists and ignoring it, or not giving it equal consideration, is not clever. Good point.

The first step for a seller is to know his competitive advantage. With competition possibilities on price or product being unlikely or limited the emphasis falls upon service, of which the author insists on the proactive kind, which the customer currently does not see from its provider. As such, the demonstration of the differentiator begins now even before a sale has been agreed to. It is time to showcase what the possibilities are, what is not currently being delivered and what the opportunity cost of staying with the current provider is. In the comparison game, the contrast is amplified when the prospect sees the gap between service currently offered and what could be. This is partly why a direct criticism of the competition is ill-advised. The emphasis, again, is on allowing the customer to connect the dots independently. The big question is how to get the prospect to feel negatively towards the current provider? The answer flows from the pro-active service possibility and vision that the seller helps create. The customers need to know that they are under-served. Once this vision is initiated, the pain is leveraged as The Wedge. The possibility of getting the pain to go away forms the reason why the customer will begin to believe it is time for a change. This is facilitated through giving the customer control and predictability. How? First, by conducting extensive pre-sales research. Asking question is next, but one must beware of customers fudging on the truth or not being able to articulate their pain. Much of the emphasis here goes towards knowing the competition and the type of experience it is providing the coveted customer. This is where the suggested script comes into play.

Armed with this information the book recommends pivoting this information into a picture of a pro-active service including allowing the prospect to draw (imagine) a picture of your superior service. The Wedge aims to allow the customer to have a picture in mind, feel the pain of missing the superb service and thus expecting it and soon asking for it. As a psychological concept pain avoidance is a bigger motivator than seeking pleasure and therefore without felt pain there is little chance of a win.

The research before the direct interaction includes: 1- our strengths versus the competitors, 2- our weakness versus the competition’s strength and 3- our strengths versus the competition’s weaknesses. It is with number three that ensures one a win.

The Wedge Sales Calls has the following steps including example scripts, which follow the research and making the customer feel comfortable with you:

1- Picture Perfect (where the customer is to draw a mental picture). “I’m curious. When you receive (name of service) so that you don’t have to worry about (the pain), are you comfortable with the process?”
2- Take Away (where the rosy picture you drew of your service is yanked away – in line with the above-mentioned supremacy of pain avoidance). “Well, perhaps it’s not that important because (give any reason).” You repeatedly tell the customer that you are momentarily setting each issue aside as it is not very important.
3- Vision Box (allow the customer to tell you). “In regard to (area of concern), what would you like to see happen?”
4- Replay (emphasis). “Here’s what I’m hearing you say you want (repeating what the prospect said in Vision Box). Have I got that right?”
5- White Flag (the customer is now saying it). “So what would you like me to do?” In this section delivering a proposal is not enough and should be refused as a stand-alone next step. For the proposal to be accepted the customer must be willing to fire the competition. Hence, see the next step.
6- Rehearsal. “That’s the easy part (referring to the delivery of a proposal). May we talk about the hard part? How will you tell your other rep that it’s over?” That is, would the customer actual deliver the bad news to the competition should the proposal be acceptable. The book suggests being upfront about the difficulty of delivering a bad news to the competitors. The rehearsal is important because the competition will attempt to play defensive and match your offer. “Are you comfortable with everything? So it’s done. Great. I’ll go to work,” Only now will you, in fact, draw up a proposal.

The book does deliver on the tangible aspect of its technique and believes in a regimented approach. However, this strength can easily also be a weakness for obvious reasons. Moreover, while discussing the book’s negatives, the reader will notice a fair amount of postponement and stretching of material and pages before the book delves into the meat of the matter. Nonetheless, the build-up is not irrelevant. Each chapter offers a succinct summary as well and the book includes an index.

This book was handed to me by a company president and my curiosity factor was high. How to Get Your Competition Fired (Without Saying Anything Bad About Them): Using The Wedge to Increase Your Sales is different, interesting and possibly more concrete in its content than the average sales book.

Ideal Qualities For Salespersons… And What Hiring Managers Need To Know

 Articles, Management, Selling, Uncategorized  2 Comments »
Jun 162010
 

A recent study by Spearhead Training in the United Kingdom offers some valuable insight into sales success. The information in the study should wrap some hard numbers around hiring practices and the mould of the successful salesperson. The conclusions were reached with the help of a study of 380 salespeople in the consumer goods industry.

Here is the gist of the article: hard work and effort trumps talent in sales. This has implications for salespeople, managers and hiring managers. Very interestingly, this study aims to answer the oft-asked question on how to hire for and increase the chances of success in sales. What is better predictor of success in sales? Is it talent? Is it experience or is there an optimal combination of these adjectives?

This study looked at five factors, namely competitiveness, self-motivation, conflicts in one’s career and objectives, conflict in roles i.e. negative experiences on the job such as negative prospects, and the amount of work put into the job.

The study has several eye-opening conclusions. Self-motivated and competitive salespersons have the least number of problems. People who are naturally competitive have the least problem with motivation. There is a direct correlation between effort and success. This is followed secondly by competitiveness.

The conclusion is that hiring managers should sniff for competitiveness above all else. The number one type to look for in a salesperson, according to this study, is a fighter. A fighter is someone who strives hard and is as competitive as possible.

The second conclusion is to place processes in place. The study insists that people who want to and indeed do put in the effort to do the right things will succeed. One example given is setting a minimum number of mandated customer visits every month (for field salespeople) for instance.

http://www.spearhead-training.co.uk

Career Development

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May 292010
 

How many times have you read a survey indicating that career development is very important to employees? More importantly, how many times have you, as an employee, felt that having a career path is as important to your workplace well being as work hours, job description or benefits?

It is illogical then that so little time and effort is given to such an important aspect of the employee-employer relationship. There could be a myriad of reasons why, but having this type of conversation officially and regularly is also beneficial to the employer. Retention of good employees is key. Improving employee performance is important. Understanding what employees can bring and add to the table is smart.

At the very least, having the time to review the matter is motivating and informational to both parties.

Employees:

1- Make your career happen. Do not let it happen to you because if you do… you might get exactly that. Ask for formal reviews and planning of your careers.

2- Come with statistics, proof and examples you can cite. Be specific with your goals, but flexible. If you do not have enough collateral to bring to a meeting ask yourself why and how you could change the situation.

3- Remember that your goals must coincide with your company/employer’s before anything moves forward. Draw this information out. Be persistent, but respectful. Be honest with yourself if you find your employer to be evasive.

4- This is a process; not a one-shot event. Develop the situation and be consistent. A bi-annual or quarterly discussion is appropriate.

Employers:

1- Create a schedule to assess and plan your employees’ career. This is respectful, responsible and engages the workers with the company and organization. Do not limit the conversation to these occasions however. Why deny yourself the opportunity to be informed and up-to-date?

2- There is always something else to do. There is not a thing that is as important as your human assets. The chair and the walls would mean nothing without smart and dedicated employees.

3- Open your mind to your team and whether there are opportunities for cross-alignment internally or if one employee can assist with the development of another.

Both employee and employer need to discuss short and long-term expectations and set a measurement and feedback mechanism.

Uncommissioned Salespersons

 Articles, Management, Uncategorized  2 Comments »
May 262010
 

Drive: The Surprising Truth About What Motivates Us is a new book by author Daniel H Pink. In his 2009 book he advances the notion that paying commissions to salespeople is possibly a wrong method to motivate. He argues that companies would positively influence salespeople by removing the carrot and the stick. He goes on to assert that paying a straight salary improves the customers’ experience, promotes teamwork and collaboration and reduces the complexity with which management has to grapple. His case studies should make for good reading.

This idea might sound anathema to many in sales and sales management. However, it is also clearly the case that many in sales fail despite having the carrot of a commission and the stick of not being able to put food on the table over their heads. Pink, reportedly, has case studies as proof and demonstrates that sales have increased where the commission structure has been removed.

I look forward to reading the book to see whether he has a compelling case or not.

Bad Reputation

 Articles, Selling, Uncategorized  Add Comments »
May 102010
 

Another day and another couple of people giving the sales profession a bad name.

According to New Mexico’s KOB TV a couple of men have found a new way to give the sales profession a bad name. What is the novel way? Threatening and cursing potential customers.

The two young men have put the neighbourhood on edge by knocking on doors and abusing the residents who do not wish to buy magazine subscriptions. But that is not where things stopped. One resident claims that upon refusing the offer at his door he was threatened by one of the door-to-door men that he will tell his dad to come over to the door of the owner who refuses to buy. The young man also managed to add that his dad is a retired Marine Corps member. The salesperson left when the resident responded with musings of his shotgun.

Another neighbour states that the same two claimed to be working with University Of New Mexico’s the Children’s Cancer Center. They insisted that their proceeds go to charity. They had no proof and no ID to back up the claim.

It is important to distinguish the professionals with integrity from the detritus.

Go to www.kob.com for more.

*Things That Need To Go Away: salespeople threatening potential customers.

Listening Skills

 Articles, Management, Negotiating, Prospecting, Selling, Selling More, Uncategorized  Add Comments »
Apr 172010
 

Steps To Effective Listening:

1- Listen – yes, oddly enough one has to listen without prejudice or interrupting.
2- Listen For The Main Idea – what is the main and specific idea being put forth?
3- Listen For The Reason – what is the rationale and reason behind the ideas discussed or proposed? Is the premise correct and based in fact?
4- Organize – give the message conveyed an organization and order. It helps results gel and and for the listener to retain the information.
5- Ask Questions – once the speaker has ended ask questions. Be sure that your own biases have not tainted what you heard.

Taking notes is a good idea. It shows that the listener is interested. It also is a better method of keeping record than memory alone.

*Things That Need To Go Away: listening meetings where the decision has already been made and conclusion already reached.

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Marketing Techniques

 Articles, Marketing, Selling, Uncategorized  Add Comments »
Apr 042010
 

I recently read a story about how when customers were offered several dozen tastes of jam sales decreased compared to when potential buyers were offered a mere four choices. This has been an intuitive finding of many marketing and sales professionals. Put yourself in the shoes of a customer given too many choices. Too many options often lead to paralysis. One goes back to the drawing board. One figures that there is a need for more research. Perhaps more investigation is needed? Should I consult friends? Read up more on the Internet?
In other words, choice is bad. Capitalism loses. Do not confuse your customers by offering too many choices.

While I am here, another counter-intuitive nugget is how companies want their salespersons to sell their top-of-the-line and most expensive offering. In that case, that option needs to not be the most expensive option. What? Precisely that. This is a sales technique that Starbucks perfected years ago. When faced with $6, $4 and $2 options most customers opted for the $4 option. Knowing that most customers would shy away from choosing the most expensive option and would also avoid the cheap option, most Starbucks customers picked the quasi-coffee product the company really wanted them to buy in the first: the $4 option. It was just that Starbucks had added a ‘luxury’ $6 alternative of which it didn’t expect to sell too many.
If your goal is to sell your ‘gold’ or top-of-the-line option then be sure that your offering includes a ‘platinum’ or topper-of-the-line choice for your customers to not choose.

PricewaterhouseCoopers Annual CEO Survey

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Apr 042010
 

The PricewaterhouseCoopers 13th Annual Global CEO Survey is out. After surveying 1,198 “global business leaders,” the consultancy has summarized some of its findings on topics related to how CEOs plan on steering their companies forward.

http://www.pwc.com/gx/en/ceo-survey/index.jhtml

A global trend is emerging. CEOs are more confident in achieving their 2010 revenue objectives. CEOs in emerging economies in South America and East Asia are even more confident.

http://www.pwc.com/gx/en/ceo-survey/ceo-survey-key-findings.jhtml?WT.ac=flash_02-2010_ceo-survey-hp_key-findings

In general, more conservative thinking dominates the results. Internal cash flow optimization is seen as more important than bond or equity issue or borrowing. Better penetration of existing markets has the CEOs more preoccupied than new geographies or new products.

http://www.pwc.com/gx/en/ceo-survey/data-smarter-growth.jhtml

25% of CEOs believe there will be more headcount cuts. 39%, however, will be hiring in the next 12 months. The most hiring is in the professional services area.

http://www.pwc.com/gx/en/ceo-survey/prospects-for-recovery-employment.jhtml

However, with the planned reductions which have already happened 48% plan on hiring suggesting that the reductions were overdone. The charts break down the hiring areas by geography, sector and talent.

http://www.pwc.com/gx/en/ceo-survey/data-talent-agenda.jhtml

The Purchasing Department

 Articles, Negotiating, Selling  Add Comments »
Mar 152010
 

A good salesperson knows that unless the product being sold has to do with ‘purchasing’ or ‘supply chain’ or ‘procurement’ then he or she is not ultimately selling to the Purchasing Department. The purchasing agent or manager is shopping or buying for another group within the organization.

This can be empowering for the seller. For one, the purchasing department has rules and regulations it needs you to follow. Ask what those are, follow them and you have a level playing field of sorts (more on the “of sorts” in a moment). Secondly, if the purchasing department is speaking with you then the decision to buy has likely already been made. The purchasing agent is simply relaying the information and seeking to fulfill a request. Whether the action was prompted through your activities or in the background is a different matter. At this juncture, one can stop selling (not in the need creation sense) and concentrate on following the rules set forth. One of these might be the procurement of the lowest price possible; however, this requirement is usually offset by minimum quality standards imposed upon the product and the vendor. Countering a lower price request with information on the quality, reliability and service of your company is sensible at this juncture.

With all due respect to the Purchasing Department, which has an important role to play in ensuring various rules and regulations are followed and that the organization takes delivery of the correct service or product it requires, selling to this department is often not fruitful. The needs are determined by the various lines of business and relayed to the company’s buyers. Spending time to create needs and describing a product or service’s pay-off does not belong to this part of the organization. Neither does excessive price negotiations because, at the end of the day, this branch of the buying firm has to be, and is, concerned with taking timely delivery of the correct product without subsequent deficiencies or defects. The price negotiation, if any, is simply the methodical processing of a buyer’s duties.

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