Categories
Management market research Positioning Product management Sales Setting Expectations

Increase sales by making deployment easier

Everyone wants to sell more, yet few ask what impacts it the most: deployment. I had a long overdue conversation to catch up with Richard Tripp this week. His “POV method” is the best process I’ve seen for refining & re-prioritizing product focus. It’s based partly on finding out the number one outcome that the majority of your actual paying customers care about. Tripp calls this group of customers a company’s “center of success”. To my knowledge, use of his process has been limited to software companies – mostly SAAS companies. It struck me during a long drive yesterday that it could be used to improve the sales of any team. Teams with a deployed service or shipped product might gain the most.

Involve the whole team

The not-easily-impressed folks might think “Wooo, talking to customers – that’s a super new idea” and they’d be missing the point. Having been involved in many such efforts over the years – my experience is that the POV method is different & better.

It’s different in part because it isn’t about a group of VPs sitting around pontificating about things they’re disconnected from. Why disconnected? Because most VPs no longer spend time customers in the trenches. Even if you’re a owner/VP now, you weren’t always one, so you know what I mean. It’s better for the entire team to discuss progress together rather than in a series of silo’d departmental conversations. When everyone hears from everyone who has data / experiences to contribute, a much richer, more complete picture is the result.

One of the outcomes is the reduction of the pain and suffering required to adopt a product / service and substantially shrink / simplify the timeline from payment to “we’re getting the benefit we paid for”. I remember years ago watching the discovery process unfold during the early stages of a POV conversation about a group’s (non-SAAS) product.

During the discussion, a normally quiet member of the service / deployment team who spent all of their time with customers during the deployment process blurted out something like “Do you have any idea how frustrating our installs are and how long it takes our customers to go live with our software? At least three months!!

The product team’s reaction was shock and surprise, as you’d expect. Because management was part of the discussion, the project got immediate momentum. A substantial and cooperative joint effort between the product and the service departments to substantially pare down install / deployment challenges was the outcome – a small but high impact improvement.

Assembling a grill

Software deployment challenges are common, but deployment problems aren’t limited to software. The longer that the time-to-benefit period grows for any product or service, the easier it is for buyer’s remorse to take hold. If it takes 90 days to get your product or service producing, customers can lose sight of why they wanted the benefit.

It reminds me of buying a new grill, getting it home and putting it together.

If you’ve assembled a grill in the last 20 years, you know that the grill business needs some work. People buy a new grill because the old one finally rusted out, they need more capacity, or they’re having an event & need a bigger one. Most people don’t do this weeks in advance. They might buy the grill a day or two before the big event.

The likely result is one of those “It’s 10 pm on Christmas eve and I have toys to assemble” experiences. Instead of fitting together plastic parts, there’s sharp-edged sheet metal & screws that look alike but aren’t. Meanwhile, two people must hold the pieces in position so the third person can turn a few screws. Eventually, this pile of parts becomes something that will eventually cook a meal. Does it have to be this much trouble?

Imagine if the team(s) responsible for packaging, instructions, & parts watched consumers muddle through this process on a third floor apartment patio. Enlightenment is guaranteed. When a developer watches an end user use their software, it’s often painful because what seemed obvious almost never is.

Whether you make software, grills, or campers – your development, packaging, and deployment staff will learn important lessons simply by watching a few customers unpack, assemble, & deploy your product or service.

Photo by Matthieu Joannon on Unsplash

Categories
Employees Hiring Sales

Been ghosted or simply ignored?

Being ghosted describes a conversation where one of the participants simply stops communicating without saying “Bye”, etc. They simply go silent, or disappear. Amazingly, the place it’s easiest to find is during job hunting (or hunting for someone to fill a position).

Back in the age of the dinosaur (or at least the fax machine), it was common courtesy to tell a Human Resources person or recruiter that you were no longer interested in their position. Even if this happened by email, you did it. If they treated you well during the process, you might even tell them why you’re heading another direction.

Likewise, it was also common courtesy for a recruiter or Human Resources person to tell all their candidates that their position had either been filled or they’d closed the position for some other reason.

When a job candidate decides they don’t want or need your open position, many simply stop communicating with you. The same behavior has become common for recruiters and HR people when they lose interest in a candidate, fill a position, or decide not to hire. The ghosted party hears “radio silence“.

Rude, inconsiderate, selfish, stupid, etc.

I find this simply remarkable, not to mention rude, inconsiderate, selfish, stupid, lacking in vision … you get the idea.

You’ll hear excuses from both groups including these:

We don’t have time to connect with each candidate to tell them the position is filled.

I don’t have time to contact each recruiter / company to tell them I’ve taken another position or have lost interest in their opening.

Horse biscuits. Weak, lazy, excuses.

When ghosting is a good idea

Here’s where it might be a good idea for a recruiter / HR person to ghost someone:

If you never want to have a conversation with that candidate ever again, nor a business they might someday own, nor with anyone they know.

Why? Because many of them are going to tell all of their family, peers, and friends that they were ghosted – and who did it. You can presume that the reputation of your recruiting firm or your company are going to be stained by this behavior. In the meantime, unplug the resume scanner and start working with candidates like a real person – if you want to hire real people rather than the presentation version of someone.

Here’s where it might be a good idea to ghost a recruiter or HR person:

Never.

Even if they did things during the selection process that were illegal or stupid (ie: “Are you and your spouse planning to start a family?”), wave good bye. If you feel particularly gracious, tell them why. Remember, the person you’re dealing with might be forced to perform in that way. While it doesn’t mean it’s right, they may need that job for now. You never know where your paths might cross again in the future.

In the best of situations, if you explain why you don’t feel the position is a fit, at least they’ll know. Depending on what you tell them, you may find that they have another opening that makes more sense.

Why do they ghost you?

Sometimes, we get ghosted even if we didn’t seem to do anything wrong – or so we thought.

Does someone call & leave a message? Call them back. If you email them because you don’t like to talk on the phone – you’re asking to be ghosted.

Did they email to ask a question about your product? Email them a reply that fits their question. If you call them, “handwave” their question, then dive into your standard pitch, expect to be ghosted.

Solution: Return the communication using the medium they used unless they specifically ask for something different.

People do sometimes email or text and ask you to call. Maybe they remembered they want to talk to you and don’t want to forget to ask for a call, but can’t talk right then. They could be sitting at a long stop light and suddenly realize they need what you sell (so they quickly send a text before the light changes, asking you to call sometime).

When you first connect with a contact, ask them what their preferred method of communication is. If it’s by phone or text, ask them the best time of day. You want to ask for a phone appointment during that time, not when you feel like it, or when your tickler went off.

Photo by Stefano Pollio on Unsplash

Categories
Direct Marketing Email marketing Marketing Sales

Make life easier on sales with time travel marketing

Ever have someone visit your store curious about buying a non-impulse item, get all their questions answered, only to have them turn around and leave without buying? Maybe they’re going out into the parking lot to check the Amazon price. Or maybe they simply drive off. Some might even order from Amazon while standing in your store. Most won’t. Even more mysteriously, the same person will return a few days (or hours) later and buy on the spot without asking a single question. Your sales team wonders what changed. If the buyer made the purchase from a different salesperson than the one who answered their questions, everyone else wonders what magic phrase the salesperson used to close the sale. In reality, they simply took the order and did no selling at all, at least for that person. Why does this happen?

I’m ready now.

Almost all of us have done this. We’re making a sizable and/or important purchase. We’ve done some research, made a few calls, searched a few websites and have more or less made a short list of what might work, what won’t, and why. But… we’re just not ready to pull the trigger. We have a few more questions (salespeople might call them objections) before we make a final decision. We go to the store, but not prepared to buy. We’re prepared to get answers. Two totally different intents.

On the other hand, the store’s sales team is prepared to sell. Sure, they’re prepared to answer questions, but really, they want to close a deal. We enter the store and even if the salesperson answers our questions perfectly, we leave. We say things like “Thanks, but I need to discuss this with my wife / husband / SO / dog / cat / boss, etc.” In some cases that might be true, but really, most need to convince themselves now that they have complete information.

Despite removing all those “Nope, this isn’t the right purchase” objections, they simply haven’t had enough time to sell themselves on the purchase. One of the things we sometimes forget when selling to people is the conversation already going on in their minds. They head to your store (or your website) to get answers, not to buy. At that time, they were not convinced to make the purchase, or at least not that particular purchase. Your staff or sales team answered all their questions and were trying to make the close, yet the person left without buying. You’re left wondering what you did wrong, what your salesperson missed, and maybe wondered if they used the “wrong close”. The salesperson probably did nothing wrong.

Time travel catches us as we think

Have you ever decided to buy a new home, looked for, and purchased one all in the same day? Probably not. You had to think about it, consider your options, weigh alternatives, gather information, and…. think about it even more. It’s no different with that car, rototiller, snowcat, four-wheeler, year of lawn service, or backhoe. This is the customer’s system for selling. It rarely matches up with store’s ideal system for selling (if they have one). Thing is, if you don’t have a system for selling, then you end up dealing with the customer’s system for buying.

People sell themselves to make sure they’re making the right decision. At that point, they’re *ready to buy* and move on. That’s why they often return & buy from the first salesperson who approaches them.

That’s where “time travel” marketing becomes important to the sales process. Marketing that considers the decision making process “goes back in time” from the upcoming visit to the store where you’d be answering questions but not making a sale. Ideally, it arrives in time to become a part of the buyer’s thought process. It answers questions before they get to your store, giving them time to consider their decision. Your materials (and your selling system) must consider the customer’s mindset and the conversation they’re having with themselves about that purchase. Knowing how your prospects make a purchase decision helps you create marketing materials that help people make a decision *before* they get to your store. It’s the same reason why pizza coupons tend to arrive on Thursday or Friday.

PS: Be sure to remind your customers that you can deliver *now*. Amazon can’t provide instant gratification like you can (at least not yet). Once we’ve made a decision, most of us want it now.

Photo by Louis Hansel on Unsplash

Categories
Employee Training Recurring Revenue Sales

Where subscribers hide: Pt 1

Watching my wife shop / interact with salespeople is always a refresher course. Gaps in customer service & sales training / tactics always reveal themselves. This is the missing piece of “Secret Shopper” type services – no audio / video. The report is fine, but you don’t get to see and hear what happened – that’s where the gold lies. We’re going to go over an experience we had while shopping in a local retail business that has a subscription model. Yes, a local retail business (a wine store) with subscribers. All too rare, but I see more of them than I used to. Bear in mind that there have been wine subscriptions by mail / via internet for decades. 

My wife is an intermittent repeat shopper at this store. They have a good selection. The sales people know their wines – and at least one of them is a standout in that department. She’s the one who really knows their point of sale / CRM (customer relationship manager) system. Isn’t it interesting that the product expert also happens to be the CRM expert – and she isn’t the owner. She’s “just an employee”, right? 

Working with the expert

A couple of weeks ago, the Mrs. sent me to pick up a white wine to go with some smoked fish sent to us by a friend in Michigan. She didn’t remember the brand name, but she did say that it was the white she thought she’d bought most often. So, being the CRM nerd that I am, I asked the salesperson “My wife wants a white wine but I don’t know the name. Can you tell me which one she’s bought most often?

In some stores, I might get a shrug or a “We don’t collect that info.” In this store, I got exactly what I came for.

Turns out that I was fortunate to be working with the standout salesperson there. She knew their CRM like a pro. She quickly found my wife’s purchase history, identified the most frequently purchased item, grabbed a bottle, and I was out the door in less than five minutes. That’s my kind of shopping.

Not working with the expert

Yesterday, we went back to this store. The expert had moved out of state, apparently for a new opportunity. My wife asked basically the same question I had asked two weeks earlier. Our salesperson, who was in the store when I was there two weeks ago, didn’t know how to find purchase history.

A promo sheet at the checkout counter mentions their monthly subscription program. Two bottles, four bottles, etc. My wife was in the four a month program a year or so ago. She quit because bottles were piling up. Four a month is too many for her.

The selection in the four month program fits her tastes better than the two month program, so backing off to two per month didn’t work. The promo sheet prompted her to ask if she could get the four bottle program every other month. 

The response: “No.”

There are plenty of possible answers to that – and most of them are questions. “No” ends the sales conversation. 

The owner questions

The owner overheard the conversation from the backroom. He steps out asks why the four per month every other month works better than the two per month. The point of curiosity is obvious – it’s the same number of bottles. She explained that high tannin wines make her feel bad, so she likes the four-per-month subscription’s selections. 

The owner says “We can handle that. Let us know when you pick up your monthly selection. We’ll be happy to swap out wines that’ll bother you.” He continues, saying that they can do an every other month plan, but will need to look into the details to make sure she isn’t charged every month.

This flexibility matters because it gets them a subscriber. She liked the previous plan she was on, but it wasn’t clear there were substitution options. Result: She cancelled. There was no follow up to ask why. Knowing why helps you keep more subscribers longer and learn about gaps in your plans.

Obvious reminder: Subscribers are sales you make every month, often with little sales / marketing effort. You have to fulfill well, regardless of tannin, to keep them. More next week. 

Categories
Employees Sales

Sell. Don’t simply take orders

For many businesses, the best month or two of the year ended late last week. For others, it starts next week. Your “big month or so” might be some other time. The real question is, will you sell, or will you only take orders?

This year, many businesses and their teams chose to take orders. You probably experienced this personally at least once this year. Anyone can take orders. Maybe they’ll need a form, a point of sale system or a yellow pad combined with some guidance from the customer, but ANYONE can take orders.

Does “anyone” work for you? Or does your sales team have industry expertise? My guess is that the latter is true.

Taking orders

The last time I was in what should have been a consultative sale, rather than speaking to someone with industry expertise, I was given to an administrative assistant who appeared to have little domain knowledge. The admin was following a computer form to sell me what I appeared to need. I’m OK with that when there’s no choice or when the sale is doesn’t involve financial risk, safety, or similarly serious matters.

Even when those things are involved, it’s OK to start the process with an admin and a computer screen when there’s follow up by someone with industry expertise. Unfortunately, there was no follow up by anyone in their office to be sure that I got not only what I wanted – but also what I needed.

Customers buy stuff.

Sell

When financial risk or safety is involved, someone has to be there to consider what carnage might be introduced into your clients’ lives. Don’t make your clients do your job. I would be far less concerned about the admin-driven sales process if follow up occurred. In this case, the downside risk is awful, annoying, inconvenient and time-consuming. They know this.

Despite this, I wasn’t asked about a four dollar a month option that would manage much of that risk. This is why follow up occurs. While it will almost certainly increase your upside, it will also show your clientele that you’re taking care of them.

You can show the team what taking orders feels like, then show them what selling feels like. Ever talked with a bad (or perhaps poorly trained) life insurance salesperson? Ever talked with a good one? The difference is amazing.

If there’s any sort of consultative selling process in your line of work, the difference probably feels amazing to your customers. It doesn’t matter what business you’re in.

For example, go to WallyWorld to consider buying a power tool. Got questions? What will happen? Now go to Ace or the Depot on a Saturday mid-morning. I suspect you’ll find the experience differs.

Customers often buy solely based on price. Clients tend to buy based on the expertise of those caring for them. Sure, they might run to WallyWorld for a commodity, but when domain knowledge is essential – they’ll come to the expert.

Clients are taken care of.

Review their work

If you do have an admin or inexperienced salesperson take care of the initial sale, review what they sold to your client.

Not simply now and then. Review EVERY sale.

If you have to contact the client to fix or complete the sale, be sure to include the person who made the initial sale. Call or email. Ask questions. Make sure they got what they wanted. Ask questions to make sure they got what they needed. Do you need to suggest any changes based on your experience, or what you know about me? Do you have questions that aren’t part of the form the admin uses? Perhaps that form is issues by your national provider and you need to apply some local knowledge to properly configure a purchase.

If the admin or inexperienced person did everything right – tell the client and tell whoever made the sale. Both need confidence in your team members with less experience.

If it didn’t go well, it identifies an opportunity to review your process and improve the sales materials your team uses, even if that means yours are over and above what the national dealer provides for you (or perhaps forces on you).

This coming year, decide to sell. Anyone can take orders. Remember: Customers buy stuff. Clients are taken care of. There’s a big difference.

Categories
Getting new customers Lead generation Sales

Do your sales efforts have a smell or an aroma?

Sales is tough work. One of the things that makes it challenging is starting a conversation with someone you don’t know. This can be particularly difficult when they know you are primarily interested in selling them something. As Gitomer says, “People don’t like to be sold, but they love to buy.” Nowhere is that more evident than at a trade show, where people will avoid eye contact with anyone wearing a “sales hat”.

Even so, trade shows offer ideal opportunities to talk to (usually) vetted prospects, assuming you’re at the right show. These face to face opportunities provide an often-unparalleled chance to learn about your prospect. Body language & facial expressions help you determine if the questions you ask and the responses you provide are resonating with your prospect’s needs and wants. These physical cues are not evident during a phone call or email exchange.

Avoid the hat

In order to benefit from these valuable face to face conversations, you have to start them. Getting these conversations started requires you to engage with someone. This requires that the attendee accepts the engagement rather than ignoring you, looking away, staring at their feet or simply saying “Nope”. Trade show exhibitors try all sorts of tactics to provoke an interaction, including attractive women, giveaways (tchotchkes), and refreshments.

Giveaways are most common. Some lame, some extravagant, some in context with their business. There’s an opportunity here for much thought than you typically see. Common rubber footballs, pens, pads of paper, and so on – much of it never makes it home, much less back to the hotel or office. These giveaways are rarely thought through well enough that they are designed to make a connection to the product or service being sold. We’ll come back to that.

I don’t see too many so-called “booth babes” these days, but they do exist, particularly in the automotive industry. In 30+ years of trade show time, I have seen one coherent use of them – when costumed in a way that connected their presence perfectly into context with the product being sold. Interestingly, this involved costuming intended to appear as if it came from the movie “Edward Scissorhands”.

Refreshments are the other area (besides giveaways) where you see a broad latitude of items. Whether it’s numerous forms of candy, airline-esque bags of peanuts/pretzels, to more imaginative setups like serving locally-brewed root beer in boot-shaped shot glasses from a cowboy-themed booth at a trade show in Texas.

And then there are the booths that recognize Maslow’s hierarchy of needs – specifically giving away things that are all but irresistible. These are things, per Maslow, that tie back to the lower tiers of the hierarchy, delivering a feeling of safety / comfort and home. These are the booths with freshly cooked bacon (not kidding) or fresh from the oven chocolate chip cookies. The latter is what I’ve seen perform the best.

The aroma of warm chocolate chip cookies is incredibly disarming to most people. Even the folks who don’t want a cookie seem obligated to explain why – which starts the conversation. Stop long enough to have someone hand you a warm cookie and most will pause to take a bite or two, and feel enough obligation to answer a qualifying question or two. Before long, the conversation is started.

Remember the point of your “gimmick”

Lots of money gets spent on these things. Much of it is spent without much thought or planning, at least from my perspective. Never forget the primary reason why you’re exhibiting at a trade show and spending that money: To start the process of making a sale, or at least, to gather leads. A gimmick to get people to stop at your booth is solely to make it easier to start a conversation. Your booth and pre-show marketing ties into all of this and should contribute to the process of creating / provoking these conversations.

Years ago, I had a fishbowl in the booth. The fishbowl contained a number of our competitor’s hardware dongles. Providing the dongle to us was a requirement for new clients to get a cross-product discount by abandoning the competitor’s product for ours. A bowl full of dongles sent a powerful message and it prompts people to stop. It’s a curiosity. It creates a conversation.

What are you doing to create these conversations?

Categories
Entrepreneurs Getting new customers Sales Small Business

Nothing happens till you sell something

For two weeks now, I’ve been encouraging about to become newly unemployed CFalls folks to rise up, figure out the value they can deliver and start their own business. Now it’s time to sell something.

This might be the part you’ve been dreading. Sorry, but you need to get over it. Selling the right product to the right person so they can do what they need to do (or get what they want) is honorable work. That sour stomach you get about selling is because you’ve experienced so many bad salespeople inflicting the hard sell on someone who had no interest in their product. That’s not what you’re about to do.

As I stated last week, the process is not easy. One of the things often used in the tech business that can make it easier is a process called “Lean Startup”. Lean Startup uses a process that is perfect for people starting out on their own – the use of the word “Lean” is intentional: This is not a process that requires that you order stationery and business cards, have a sign installed over your newly rented office and start pouring money into furniture, advertising, and so on.

Stay Hungry

The good news is that it takes advantage of things many hungry, underfunded entrepreneurs would do anyway: Spend as little as possible on stuff you don’t need, focus on a solution customers actually want, refine it quickly with multiple interviews / discussions with your prospective customers and swallow your pride long enough to ask for the sale.

If a “Startup Weekend” happens to pop up somewhere in the area in the meantime – take part in it. These events are often focused on technology-based ideas, but this is NOT a requirement and you don’t have to be a tech person to participate. The things you will learn by starting a business in 54 hours over a weekend will benefit you greatly, as will the relationships you build. The folks that often take part in these events are usually highly connected, entrepreneurial and happy to provide feedback on your idea and make introductions for you.

Nose to nose, toes to toes

Now is not the time to decide you need to take a college course, read the 27 books all entrepreneurs must read before starting a business, produce a detailed pro-forma for your banker, take a Udacity course on Lean Startup, etc. While the free Udacity course is good (for example) and the reading and pro-forma might serve you at some point – now is not the time for that.

Now is the time to get nose-to-nose, toes-to-toes with the people who you think are best suited to take advantage of what you want to do, discuss it with them and ask for the sale. Until you do that, get some feedback, ask for the sale, repeat (often) and start to get some feedback and reaction to your proposed offering,

It’s ok to tell them your business is new – they’ll probably figure that out anyway. They should quickly be able to figure out that you know your stuff based on how you position your offering and how you discuss how you intend to make it worth their investment.

Listen. Really listen.

One of the most valuable things you can hear during these conversations is “No, that’s not what I need.” You can either turn off and move on to the next person, or keep listening and keep asking questions. You know the process, product, solution you’re selling. It’s ok to ask them about the problems they’re having, what keeps them up at night, what makes them worry every day, and so on. If you ask the right questions and truly listen to what they’re telling you, you will find them making comments about things they invest time and money in to solve a problem. It might be a patch, but that’s ok.

They will spend time and money to get through something, solve something and/or perform a workaround simply to get some work done. Their workaround or process to get them by might seem crude or even ridiculous to you – that’s an indication that the problem is important enough for them to spend money on.

How can you make that better? Cheaper? Faster? More efficient? Safer? More dependable?

Sell that.

Categories
Leadership Management Sales Strategic Notepad

Fear and Limiting Thoughts

Limiting thoughts had my software company stuck on a sales plateau.

Everything else was going well. Clients loved our software and our support. We could count the number of refunds per year on one hand and still have fingers left over. I was fortunate to have a few minutes with a mentor to discuss the issue. I summarized the situation and asked for his suggestions. He zeroed in on my comment about being able to count the number of refunds on one hand and asked me what seemed like a rather disconnected question.

“What are you afraid of?”

The question surprised me, because I didn’t think I was afraid of much at the time. In the last few years, I’d bought the assets of a now-dead software company, left an exceptionally comfortable job, turned the product and client base around, moved the family and the business to Montana, hired people to grow the company, and the business continued to achieve what I expected of it… except for that rate of sales growth thing. There wasn’t much that I thought I couldn’t do, so I was a little surprised by the question.

He said “Look, you act like that number of refunds is a badge of honor, and it tells me is that you’re afraid to hear ‘No’, or ‘Sorry, this isn’t a good fit for my needs, I want my money back’ from a prospect. You need to go home and sell harder. Stop focusing on refunds.

He wasn’t suggesting that we become that high pressure sales company that no one wants to deal with. Instead, he was suggesting that we take steps to attract and sell to a broader range of people – without limiting ourselves only to those at the top of the ideal prospect list. In other words, we were (perhaps implicitly) trying to sell only to the best possible prospects because we knew they’d buy and never ask for a refund. In retrospect, it seems dumb, but businesses sometimes do dumb stuff that seems like the right thing to do at the time. Put another way, we were taking away prospect’s opportunity to succeed with our product at a time when they were barely beginning to realize what they really needed.

Think of it as the sales equivalent of “the teacher will appear when the student is ready“, yet the teacher is hiding.

Limiting thoughts = Focusing on the wrong thing

In part, we were focused on refunds because there was an investment in time to get these prospects rolled out and working (only to have them decide the software wasn’t for them). In part, it was an ego thing. Our retention rate year over year was in the 90+% range. Refunds were almost unheard of and we were too proud of that.

We started selling harder, looking for those people who were starting to realize they might need what we made, rather than limiting ourselves to the people who needed it or else simply so we could point to a lack of refunds.

That’s the real reason for this discussion: Identifying limiting thoughts that hurt your business.

We saw the refunds-per-year as something to minimize, not realizing what it was doing to our sales. You might have a similar limitation about sales bonuses, for example. Imagine that you pay a one percent bonus for every dollar over $75k in sales/month, and the average monthly sales your salespeople produce is $80k. Yet there’s this one “troublemaker” who always hits $130k, with regular jumps to $140k or $150k. Your bonus structure is capped at $120k and you refuse to pay bonuses for the amounts over $120k in an effort to keep costs down, or because the cap has “always been that way”. You think you’re saving money, but the reality is that you’re doing what I was: Losing sales due to an artificial limitation.

The salesperson who never sees a bonus on sales over $120k is going to stop working when they hit $120k, or take their sales skills where they are appreciated/paid for. How many dollar bills would you put into a machine that returns $100 each time you insert a dollar? I suspect your answer would be “As many as I can”, unless “saving money” is your limiting thought. Bonuses on sales work like that machine.

Is your business limited by fear-based artificial barriers you’ve created?

Categories
customer retention Sales Small Business

The sales prevention department

Have you ever encountered a “sales prevention department”? Let’s discuss how the sales prevention department’s role works and how you can look for ways to get rid of yours if you have one.

The tale of the register tape

Over the last couple of weeks, I’ve watched the adventures of a GoToMeeting administrator. In one case, they were working with a sales person at a competitor to GoTo Meeting. I’ve been a GTM user for a long time, and in the last few months the quality and stability of the service has suffered a bit. I suspect it’s nothing terribly serious but it is a business distraction and it can impact sales if the timing of a stability problem is unfortunate. More on that in a moment.

GTM has a sales prevention department. Here’s how theirs works:

A GTM administrator manages an account with 12 seats of GoToMeeting. The admin’s company wants to add more seats. Can you login and simply add x seats to your license? No. Enter the sales prevention department. You have to call someone, wait for a call back and then deal with the potential of a sales pitch about things you may not want – all to add a few seats. This is a task that would have been completed in two minutes or less on a modern software as a service (SAAS) platform. Instead, it takes as long as a couple of days to complete this simple transaction.

For some services, a consult is necessary before a change of this nature. This isn’t one of them.

In this case, the sales prevention department is introducing unnecessary delays for the client, who only wants to give you more of their money and get more of their people working with your tools. Don’t make this difficult for your clients.

Who else has a sales prevention department?

In the time it took to deal with the process GTM places in front of their users, the GTM admin could have signed up for a competitor’s service and had a day left over…. unless it was with the competitor whose sales team I was dealing with on the GTM admin’s behalf.

The GTM competitor happens to be owned by a fairly large IP phone service that is currently receiving about $2500 a month in service fees from this company. This fact is ignored by the GTM competitor, which puts them at risk of losing not only the GTM-like business, but the IP phone service as well.

This competitor has a free, limited scope service that matches the free limited scope service GTM offers. Premium services (like recording a meeting) are critical to this evaluation, so I asked to have one account turned on for two weeks.

The answer? No, but we could come to your office and do a demo of the premium features.

At this point, the conversation is over. The GTM competitor has made it clear that they really don’t want the business. What they don’t seem to understand is that their handling of this $400 a month sales prospect threatens the $2500 monthly business they already have.

This is the sales prevention department at work.

Do you have one?

You might be wondering if you have a sales prevention department. The best way to learn that is to secret shop the sales line of your business. If you don’t have one, monitor the sales and support emails for a bit. Search them for terms like “upgrade”, “expand”, “merger” and “buyout”. The last two are possible signals that two companies have joined together and they are shopping how to supply your services to “both” companies.

You can also look at your orders for the last few months and randomly choose a few new clients, a few clients who changed the scope/size of their use of your products and services. Call them and ask to speak to whoever made the purchase. Ask them if it was easy to buy from your company. Was any part of this process difficult or frustrating? Do they have any suggestions to make the process easier?

Every time the sales prevention department takes root in your business, it hurts revenue and can cost you clients. People walk away because they don’t want to deal with a company that’s hard to work with. If it’s difficult right off the bat, that’s usually a sign of what’s to come.

Categories
Getting new customers Lead generation Marketing Sales Small Business Word of mouth marketing

Selling, marketing & Wyoming’s Cutt-Slam

Last week, I met a couple of old college buds in Southwest Wyoming’s Bridger-Teton range (near LaBarge) to take on Wyoming’s Cutt-Slam cutthroat fishing challenge.

This would not be easy. Four cutty subspecies in four different drainages – some of them in the tiniest of water (water shoes rather than waders), with two guys who are much more experienced than I am in the fine art of selling to fish.

This effort would be much like marketing and sales in a tough market with a prospect who knows exactly what they want and will accept nothing less. The parallels are fairly obvious: your message (fly), your presentation (cast) and your careful selection of the right prospect (in this trip, only four subspecies mattered).

Early on, unheard and unseen

For the better part of two days, I caught nothing. You would have thought I was making carpet cleaning offers to people with hardwood floors, or trying to sell family minivans to folks who live 20 miles off the highway on a rough dirt road.

At some point late on the afternoon of day two, one of the guys mentioned to me that the local hoppers were a good bit bigger than the flies I was using. Sending the wrong message (fly) to the wrong fish is no different than sending the wrong message to the wrong prospect (or sending any message to the disinterested).

So I changed my message.

Before long, the change in fly size improved my luck, at least until the last day. Ultimately, the Grey’s River contingent of Snake River Cutthroats never responded to my cold calls on that last day, perhaps due to an early morning downpour.

How’s your message working?

Obviously, the point of this story is to provoke you to take a look at the messages you’re sending and who you’re sending them to. For retailers, the most important sales and marketing period of your business year is ramping up. For those who serve tourists, what you do in the “off season” is as important. No matter what you sell, knowing that the message you send (even if you use “inbound” marketing) is being seen / heard by the right people and is context with their needs is critical.

Wrong message, wrong destination equals wasted money, time and effort. Even a little bit wrong is enough for someone (or a fish) to think “Oh, that’s not for me, I’m moving on.”

You’ve heard this before, but have you thought deeply about it? Think about the messages you get each day. How many of them truly grasp your interest? It doesn’t matter how clever or funny they are if they’re not about something you care about or are interested in. How many of these messages are about something you’re really interested in? How many of those convey a message that motivates you to actually take action?

That’s the critical eye you need to use when looking at each message you’re sending, whether sending a postcard or using the latest, greatest sophisticated inbound marketing tool.

When that fish fails to strike, you know why (sort of). It’s the wrong size, the wrong color, the wrong depth, the wrong time of year, etc. There are so many different ways to serve up the wrong fly – and it’s no different for what you use to communicate with prospects and clients.

Big (Fish) Data

Wyoming Game and Fish’s Cutt-Slam is, among other things, a combination of clever marketing and inexpensive data collection.

For the price of some record keeping, photography, a website, some color certificates (for participants who complete the Slam) and some cutthroat subspecies info, the Cutt-Slam provokes fly fishing enthusiasts to purchase licenses, eat and stay in Wyoming, fish the state’s southwestern waters and report details about the fish they caught, including date, location and a photo.

What this provides to WY Game and Fish is a litany of data and evidence about the progress of their efforts to repopulate the state’s four cutthroat subspecies – without sending people out on the road.

It’s a smart way to get people to visit, fish and help you with your project’s data collection – all at the same time.

Likewise, it provides a lesson on creativity and thinking about how to do more than what you have to get done – and how to involve enthusiastic experts in a way that benefits them as well.