There are two kinds of people when it comes to accountability.
•Those who point their index fingers outward •Those who point their index fingers inward
We
all know too well that most people are quick to blame others and slow
to take responsibility. They make excuses or tell a long-winded story
about what went wrong and why. Obviously these people feel their success
or failure is "outside of their control."
The more powerful
belief is that things are within our control. It then follows that we
are, in fact, responsible for what happens around us and to us.
I've
developed a disciplined system that helps people accept accountability.
This system breaks down all the components into essential elements. We
can develop a less emotional view and a more scientific one.
But before I share that with you, let me take you back a few years in my own life.
In
my first career, I was a professional pilot. In the flying business,
Captain is the only job to have. But before you can be a Captain, you
must first prove yourself as a safe, competent and proficient co-pilot.
(By
the way--Here's a little "behind the scenes" secret info for you. The
reason everybody wants to be the Captain? He's the guy, or girl, who
does half the work for 3 times the money.)
Now, why do you suppose the Captain is so well paid for so little work?
It's all because (and this is according to the FAA), no matter what
happens on his flight or who does it…HE is held responsible.
As a
young man, I was trying to build up my flying time and experience. But,
most of the Captains would order me to just sit there, work the radios
and "DON"T touch anything else!"
You see the problem here. How in
the world was I ever going to learn? How was I going to gain the
experience I needed to make captain?
I was really getting frustrated.
Then
one day, I had the shocking experience of meeting and flying for Jeff
Brinkerhoff, a strong-willed Captain of a Lear 25 Business Jet.
Jeff shouted out…"Hop in the left seat and start 'er up. I'll show you how to really fly this thing!"
Talk about transformational experiences…
From that moment, I knew the kind of leader I wanted to be!
So let me ask you…
Are you in the type of sales organization that helps people "Get in the left seat and start 'er up?"
In
other words, do you have the organizational commitment to create
Self-Sustained Professionals through providing proven structures for
learning and application?
Showing posts with label Sales. Show all posts
Showing posts with label Sales. Show all posts
Greater Conversion -- Three Things Everyone Should Do to Get More Sales
Many more people want to buy your product or service, but they don't end up doing it! That's because many companies are stuck in the print marketing mindset, and don't realize that there are a couple simple things that they can do online to increase their conversion rates. In this article, I'll outline three easy to implement changes that will take those extra sales right to the bank!
1) Product / Service Image Size
Chances are you've got images that represent or depict your product or service -- that's a common sense way to add familiarity to what you have or do! An eye tracking study has shown that small images are oftentimes overlooked and that medium sized images (210x230 pixels) provide near a 150% increase in the amount of time spent looking at the image. The same study has shown that people tend to focus their attention on photographs that contain a human face. Medium sized pictures with faces in them retain interest longer!
2) Linking Images
The same study showed that people click on pictures, even when there is no indication that the picture is a link. For those images of products, link the image to the product page where they can buy your product! For those images depicting services, link the image to the related service information page or a contact page! Always link your images to the next step of your conversion process!
3) Call to Action
Visitors that are interested in your product or service may not know what to do to get it. Or they may be interested enough to purchase or subscribe, but only if it's easy -- otherwise they're not interested. This often overlooked scenario is easily overcome by a call to action link on every page. The call to action could be as simple as "Find out more about XYZ Widget Model 3 here!" It could be a Buy Now button underneath an image. The most important part of content written for sales is to make that call to action. You'll quickly see that doing so will have you smiling all the way to the bank! Always have your visitors do something!
After you've implemented these three simple changes into your website, sit back and watch your stats increase. You'll find that getting more conversions is a very pleasing scenario! As one last word of advice, other eye tracking studies (and possibly the same one I've referenced throughout this article) have confirmed that many people let their eyes wander below a picture when there's text below it. Use that to your advantage by placing "Buy Now" buttons underneath your images. Good luck!
Source: http://www.poynterextra.org/eyetrack2004/photos.htm
1) Product / Service Image Size
Chances are you've got images that represent or depict your product or service -- that's a common sense way to add familiarity to what you have or do! An eye tracking study has shown that small images are oftentimes overlooked and that medium sized images (210x230 pixels) provide near a 150% increase in the amount of time spent looking at the image. The same study has shown that people tend to focus their attention on photographs that contain a human face. Medium sized pictures with faces in them retain interest longer!
2) Linking Images
The same study showed that people click on pictures, even when there is no indication that the picture is a link. For those images of products, link the image to the product page where they can buy your product! For those images depicting services, link the image to the related service information page or a contact page! Always link your images to the next step of your conversion process!
3) Call to Action
Visitors that are interested in your product or service may not know what to do to get it. Or they may be interested enough to purchase or subscribe, but only if it's easy -- otherwise they're not interested. This often overlooked scenario is easily overcome by a call to action link on every page. The call to action could be as simple as "Find out more about XYZ Widget Model 3 here!" It could be a Buy Now button underneath an image. The most important part of content written for sales is to make that call to action. You'll quickly see that doing so will have you smiling all the way to the bank! Always have your visitors do something!
After you've implemented these three simple changes into your website, sit back and watch your stats increase. You'll find that getting more conversions is a very pleasing scenario! As one last word of advice, other eye tracking studies (and possibly the same one I've referenced throughout this article) have confirmed that many people let their eyes wander below a picture when there's text below it. Use that to your advantage by placing "Buy Now" buttons underneath your images. Good luck!
Source: http://www.poynterextra.org/eyetrack2004/photos.htm
Does Your Sales Training Program Address Your Sales Performance Issues? Part 1
Sales training programs encompass a variety of necessary components; things like company policies, sales paperwork, CRM/sales force automation orientation, sales processes, company services, sales skill training and product features and benefits.
But when I ask Sales executives and Sales trainers how their current sales training program is aligned with their sales performance issues I get the look of "No speak English'.
Let's first categorize 'Sales performance issues'. There are (4) distinct sales performance silos that will effect the overall outcome of any sales team, year in and year out. They are:
• % of Sales reps to Quota
• Average New-hire Ramp-to-Quota in months
• Sales Employee Turnover rate
• Time spent versus Result achieved
This is a good place to start in determining what sales skill training to implement to achieve a measurable return on investment. But here's what will set you apart when you walk the request up to the front office. Start out with the NUMBERS.
That's right. Take a diagnostic view of your current sales performance silos, one by one.
Let's look at a real sales performance issue example of 'Average New-hire Ramp-to-Quota'. I recently conducted a 'Sales Performance Improvement Blueprint' web-cast for this sales organization.
The company was hiring 155 sales reps per year. The ultimate objective of any new-hire sales training program is to ramp the new sales rep to Quota. Simply, give them everything they need to effectively reach their monthly sales goal.
So how was this company doing? They were obtaining this ultimate sales training program objective in 7 months. So how does one determine if that training outcome is a 'Sales Performance Issue'? Let's take a look.
Step 1: 'Run the Numbers' for any realistic ROI opportunity
• Each new-hire rep had an ultimate quota of $3500
• Sales Cycle was 17 days
• Average customer term agreement of 36 months
• Average 'Sub-Quota' revenue per month during ramp of $1300 (This number reflects the average monthly revenue a new-hire achieves before they achieve quota attainment)
Step 2: 'Run the Numbers' hypothetically for a 'Specific' improvement
In this case, I showed the sales management team what return on investment they would get by helping just 1 sales rep achieve full sales quota in 6 months versus 7 months. Based on their numbers my diagnostic X2 Evaluator™ system showed them a ROI of $79,200 just by trimming off 30 days. If they did that for all 155 of their annual new-hires, they could realize $12,276,000.
And that got their attention. So, is it now a worthy sales performance issue to attach pin-point sales training to? Not quite yet.
Step 3: 'Run the Numbers' for a 'Reality Check'
The most successful businesses - and certainly, sales departments - have identified their Key Performance Indicators (KPI); individual gateways that directly effect the outcome of a particular process. Then they measure the competency ratios in line with them.
A good KPI example in the sales process might be how many times you advance the first sales appointment to the next phase, whether that's a demonstration, a site visit, a survey or a proposal. Another KPI is how many times you gain a new customer once the first gateway is passed. And when you do gain a new customer, what's the average revenue you achieve? And how long does it take to gain a new customer on average; i.e. sales cycle?
How about how long it takes you to gain 1 new sales appointment, defined by sales prospect 'conversation'? And as a by-product of all this, how many new appointments are needed each week?
We ran these numbers in the X2 Evaluator™ system to see 'if and where' there were some leaks in the 'KPI ship'. And here's what we discovered; not a leak, but a big 'ole fire hose.
Two 'KPI issues' were apparent. First, why does the ramp-to-quota for a new-hire take 7 months when the average sales cycle is 17 days? Second, they were only setting 3 new appointments per week when they needed to set 6, based on their other KPIs. So their sales appointment 'activity barometer' was only running at 50%. And that will dictate a longer ramp-to-quota.
Dig a bit deeper in the X2 Evaluator™ system and out popped a 6% conversation-to-appointment ratio; they had to conduct 15 prospect conversations to get 1 new appointment.
OK, back to the 'Reality Check'. Is it realistic to focus on reducing the new-hire ramp-to-quota from 7 months to 6 months for a sales training ROI of $12,276,000 or $79,200 per rep?
You bet it is. These folks needed to address the front-end of their sales process; setting targeted sales appointments. To do that, they needed (1) establish an activity standard to reach quota by month six and (2) develop a sales prospecting methodology and supporting X2 Evaluator™ system to spend less time in achieving it.
Then they needed to plug their sales prospecting 'system' into their current sales training program and work to a weekly sales appointment activity goal to assure a monthly revenue result by month 6.
Step 4: Set the Goal and 'Train to It'
A sales training ROI goal of $12,276,000 or $79,200 per rep is for sure a worthy one. And the diagnostic system showed us they would meet this goal just by setting 3 additional sales appointment per week per rep; 6 appointments versus 3.
Actually, I lied. The X2 Evaluator system showed an even brighter picture if the sales appointment activity standard of 6 new appointments per week was met. If they could support their new-hires with a sales prospecting system that could help them achieve 6 new sales appointments per week, they would actually cut their new-hire Ramp-to-Quota by 4 months; from the current 7 months down to 3 months.
And that sales training ROI would be $316,800 per rep or a whopping $49,104,000.
One of the reasons why sales training fails is a failure to define a useful objective. In this case, our diagnostic method has defined a single useful objective for them to train to. And this same diagnostic method can be utilized if you have a 'Sales Performance Issue' of an unacceptable percentage of Sales reps reaching Quota each month.
In Part 2, we will take a look at (2) other sales performance issues, 'Sales Employee Turnover rate' and 'Time spent versus Result achieved' with this same sales management team and see what our diagnostic method to sales performance improvement and ROI turns up.
But when I ask Sales executives and Sales trainers how their current sales training program is aligned with their sales performance issues I get the look of "No speak English'.
Let's first categorize 'Sales performance issues'. There are (4) distinct sales performance silos that will effect the overall outcome of any sales team, year in and year out. They are:
• % of Sales reps to Quota
• Average New-hire Ramp-to-Quota in months
• Sales Employee Turnover rate
• Time spent versus Result achieved
This is a good place to start in determining what sales skill training to implement to achieve a measurable return on investment. But here's what will set you apart when you walk the request up to the front office. Start out with the NUMBERS.
That's right. Take a diagnostic view of your current sales performance silos, one by one.
Let's look at a real sales performance issue example of 'Average New-hire Ramp-to-Quota'. I recently conducted a 'Sales Performance Improvement Blueprint' web-cast for this sales organization.
The company was hiring 155 sales reps per year. The ultimate objective of any new-hire sales training program is to ramp the new sales rep to Quota. Simply, give them everything they need to effectively reach their monthly sales goal.
So how was this company doing? They were obtaining this ultimate sales training program objective in 7 months. So how does one determine if that training outcome is a 'Sales Performance Issue'? Let's take a look.
Step 1: 'Run the Numbers' for any realistic ROI opportunity
• Each new-hire rep had an ultimate quota of $3500
• Sales Cycle was 17 days
• Average customer term agreement of 36 months
• Average 'Sub-Quota' revenue per month during ramp of $1300 (This number reflects the average monthly revenue a new-hire achieves before they achieve quota attainment)
Step 2: 'Run the Numbers' hypothetically for a 'Specific' improvement
In this case, I showed the sales management team what return on investment they would get by helping just 1 sales rep achieve full sales quota in 6 months versus 7 months. Based on their numbers my diagnostic X2 Evaluator™ system showed them a ROI of $79,200 just by trimming off 30 days. If they did that for all 155 of their annual new-hires, they could realize $12,276,000.
And that got their attention. So, is it now a worthy sales performance issue to attach pin-point sales training to? Not quite yet.
Step 3: 'Run the Numbers' for a 'Reality Check'
The most successful businesses - and certainly, sales departments - have identified their Key Performance Indicators (KPI); individual gateways that directly effect the outcome of a particular process. Then they measure the competency ratios in line with them.
A good KPI example in the sales process might be how many times you advance the first sales appointment to the next phase, whether that's a demonstration, a site visit, a survey or a proposal. Another KPI is how many times you gain a new customer once the first gateway is passed. And when you do gain a new customer, what's the average revenue you achieve? And how long does it take to gain a new customer on average; i.e. sales cycle?
How about how long it takes you to gain 1 new sales appointment, defined by sales prospect 'conversation'? And as a by-product of all this, how many new appointments are needed each week?
We ran these numbers in the X2 Evaluator™ system to see 'if and where' there were some leaks in the 'KPI ship'. And here's what we discovered; not a leak, but a big 'ole fire hose.
Two 'KPI issues' were apparent. First, why does the ramp-to-quota for a new-hire take 7 months when the average sales cycle is 17 days? Second, they were only setting 3 new appointments per week when they needed to set 6, based on their other KPIs. So their sales appointment 'activity barometer' was only running at 50%. And that will dictate a longer ramp-to-quota.
Dig a bit deeper in the X2 Evaluator™ system and out popped a 6% conversation-to-appointment ratio; they had to conduct 15 prospect conversations to get 1 new appointment.
OK, back to the 'Reality Check'. Is it realistic to focus on reducing the new-hire ramp-to-quota from 7 months to 6 months for a sales training ROI of $12,276,000 or $79,200 per rep?
You bet it is. These folks needed to address the front-end of their sales process; setting targeted sales appointments. To do that, they needed (1) establish an activity standard to reach quota by month six and (2) develop a sales prospecting methodology and supporting X2 Evaluator™ system to spend less time in achieving it.
Then they needed to plug their sales prospecting 'system' into their current sales training program and work to a weekly sales appointment activity goal to assure a monthly revenue result by month 6.
Step 4: Set the Goal and 'Train to It'
A sales training ROI goal of $12,276,000 or $79,200 per rep is for sure a worthy one. And the diagnostic system showed us they would meet this goal just by setting 3 additional sales appointment per week per rep; 6 appointments versus 3.
Actually, I lied. The X2 Evaluator system showed an even brighter picture if the sales appointment activity standard of 6 new appointments per week was met. If they could support their new-hires with a sales prospecting system that could help them achieve 6 new sales appointments per week, they would actually cut their new-hire Ramp-to-Quota by 4 months; from the current 7 months down to 3 months.
And that sales training ROI would be $316,800 per rep or a whopping $49,104,000.
One of the reasons why sales training fails is a failure to define a useful objective. In this case, our diagnostic method has defined a single useful objective for them to train to. And this same diagnostic method can be utilized if you have a 'Sales Performance Issue' of an unacceptable percentage of Sales reps reaching Quota each month.
In Part 2, we will take a look at (2) other sales performance issues, 'Sales Employee Turnover rate' and 'Time spent versus Result achieved' with this same sales management team and see what our diagnostic method to sales performance improvement and ROI turns up.
Garage Sales - Good For Everyone
Ah, the garage sale! That little slice of suburbia that ties communities together, brings friends and neighbours to your doorstep, and helps your turn the cast off flotsam of bygone years into money in your pocket. These familiar scenes of summertime are a great way for people to buy the stuff they need at a fraction of the retail cost.
Similarly, garage sales are a great way to get rid of stuff that you no longer use or need. A garage sale is a favourite of collectors, bargain hunters, and the random passer-by with an idea of seeing what there is to buy at low, low prices. Having a garage sale can be fun or stressful, useful or counter-productive, profitable or costly.
There are many reasons for having a garage sale. Perhaps you want to sell all those unused "treasures" taking up space in your house. Perhaps it is to clean out the house prior to an imminent move. Perhaps you simply want to make a few extra dollars. Some people simply do it for an opportunity to meet the neighbours and do a little haggling. A garage sale is very useful at all these times and for all these reasons.
With a garage sale, you need to give the people what they want (reasonably decent stuff at cheap prices) to get what you want (floor space in your house). While the phrase "one man's junk is another man's treasure" is true, there is another fact that is equally true, and even more important.
Junk is Junk … and nobody will buy it…. usually.
You can always try to sell broken or non-working so they can be used as parts for repairing other things people may have at home. Just be honest about it and price it as a broken item. You'll be surprised just what kinds of things people will buy.
People who go to a garage sale have many things they may be looking for. Some are just on the lookout for good stuff at great prices. A few will just be passing by and spot something they have always wanted but could not afford until they saw it at your sale. Some are dedicated garage-salers armed with maps of advertised garage sales, hunting for specific items or items they never knew they needed. Some will attend simply to meet the folks from down the block. Some will even attend your garage sale just to have items for their own garage sales. Whatever their reasons, you need to attract buyers who will see your items, like your prices, and walk away with the things they do actually want and need.
But setting up a garage sale properly and pricing your goods so that they sell fast and furious at a price you like…well those are topics for other articles.
Similarly, garage sales are a great way to get rid of stuff that you no longer use or need. A garage sale is a favourite of collectors, bargain hunters, and the random passer-by with an idea of seeing what there is to buy at low, low prices. Having a garage sale can be fun or stressful, useful or counter-productive, profitable or costly.
There are many reasons for having a garage sale. Perhaps you want to sell all those unused "treasures" taking up space in your house. Perhaps it is to clean out the house prior to an imminent move. Perhaps you simply want to make a few extra dollars. Some people simply do it for an opportunity to meet the neighbours and do a little haggling. A garage sale is very useful at all these times and for all these reasons.
With a garage sale, you need to give the people what they want (reasonably decent stuff at cheap prices) to get what you want (floor space in your house). While the phrase "one man's junk is another man's treasure" is true, there is another fact that is equally true, and even more important.
Junk is Junk … and nobody will buy it…. usually.
You can always try to sell broken or non-working so they can be used as parts for repairing other things people may have at home. Just be honest about it and price it as a broken item. You'll be surprised just what kinds of things people will buy.
People who go to a garage sale have many things they may be looking for. Some are just on the lookout for good stuff at great prices. A few will just be passing by and spot something they have always wanted but could not afford until they saw it at your sale. Some are dedicated garage-salers armed with maps of advertised garage sales, hunting for specific items or items they never knew they needed. Some will attend simply to meet the folks from down the block. Some will even attend your garage sale just to have items for their own garage sales. Whatever their reasons, you need to attract buyers who will see your items, like your prices, and walk away with the things they do actually want and need.
But setting up a garage sale properly and pricing your goods so that they sell fast and furious at a price you like…well those are topics for other articles.
Proper Preventive Maintenance Starts With Knowing Your Restaurant Equipment
Several weeks ago, I was forced to replace a very expensive piece of equipment at my bistro. A convection oven that I inherited with the building suddenly stopped working. I called a repair service and the machinery medics were quickly dispatched. Unfortunately, the news was grim... I would need to purchase a replacement unit. The technicians that came out were unable to repair it. In fact, they had no idea why the unit had failed, only that they wouldn't be able to fix it. I contacted my restaurant equipment supplier, who, it turns out, had sold the now defunct unit to the previous owner. When I told him about the old unit and that I would need a replacement, I expected him to be ecstatic, knowing full well that my wallet was about to take a major hit. Instead, he surprised me by asking me a series of questions about the old unit.
With his help over the phone, we were able to get the unit up and running in about twenty minutes. That's pretty amazing, I think. The problem was caused by a lack preventive maintenance measures to the oven. We were under the impression that we were taking proper care of it, though in truth, I never bothered to check and see if there was more that we needed to be doing in the way of preventive maintenance.
A few days later, I got a letter from my equipment supplier, with specs on every piece of equipment in my restaurant, along with the necessary preventive maintenance measures that I should take with each one. The majority of these I already knew about, but there were a few I was unaware of. Since I received the letter, my staff has been performing all the recommended preventative maintenance measures and we really notice a difference on the pieces of equipment we were neglecting to take proper care of.
Preventive maintenance is important in the restaurant business, especially with the cost of replacing an expensive unit. The only way to take proper care of your equipment, however, is to know it well enough to know what preventive maintenance measures needs to be performed. I am grateful to my equipment supplier for helping me to realize that.
With his help over the phone, we were able to get the unit up and running in about twenty minutes. That's pretty amazing, I think. The problem was caused by a lack preventive maintenance measures to the oven. We were under the impression that we were taking proper care of it, though in truth, I never bothered to check and see if there was more that we needed to be doing in the way of preventive maintenance.
A few days later, I got a letter from my equipment supplier, with specs on every piece of equipment in my restaurant, along with the necessary preventive maintenance measures that I should take with each one. The majority of these I already knew about, but there were a few I was unaware of. Since I received the letter, my staff has been performing all the recommended preventative maintenance measures and we really notice a difference on the pieces of equipment we were neglecting to take proper care of.
Preventive maintenance is important in the restaurant business, especially with the cost of replacing an expensive unit. The only way to take proper care of your equipment, however, is to know it well enough to know what preventive maintenance measures needs to be performed. I am grateful to my equipment supplier for helping me to realize that.
Get Your Low Rate Merchant Account
One of the most important keys to achieving long-term success with a low rate merchant account is to find an underwriter that charges reasonable fees. Some shysters will try and take advantage of a naïve new business owner who doesn't know how to evaluate merchant account terms. A novice might be so excited at the prospect of getting a merchant account that he or she will accept any terms, failing to keep in mind that like a personal credit card account, a merchant account is based on terms that can vary. It is always best to shop around for affordable rates that provide quality terms and service. Carefully check all the listed fees, and ask the company representative about any others that are not listed, such as whether an annual membership fee will be required next year, or if there are service fees that will be implemented when the account is activated. If you don't get clear answers, steer away from that company and look for another with clear-cut information.
A low-rate merchant account may charge monthly fees as low as a few cents for each credit card transaction or a low overall percentage rate for the account services. Find out what the actual fees will be and if these can change over the course of the coming year. Mention that your company operates on a tight budget and that you wish to remain a responsible business manager by seeing that all bills are promptly paid. Therefore, you cannot afford to be surprised by unexpected or new charges later. Most ethical banks or lenders will respect your honesty and provide up front information to help you make a decision about whether to apply for a merchant account with them. They might even point you to another lender with better terms that will fit with your company's size, income, and goals.
When you decide to apply for a low rate merchant account, be sure that you can afford the monthly payments and that the services you receive in return will help your clients pay their bills on time. Otherwise, you are wasting your time and your profits on the questionable benefits of a low rate merchant account.
Powerful Routines; Identifying Sales Scenarios and Developing Best Practices for Improvement
Each one is unique as to how, when and why they occur. But what's not unique is how often they occur in similar situations, similar prospect titles of contact and similar companies by industry.
For example...
Why do sales cycles get so drawn out, causing closing ratios to plummet? It's because salespeople fail to identify all significant decision-makers in line with their selling proposition.
Now, wouldn't you say that's a significant scenario?
Simply because they have not identified the significant decision-makers, the right people will not be around the table to fairly evaluate the proposition to give a "yes" or a "no."
So, let's attach a name to this scenario for a common language approach. Let's call it "All the Kings Men."
Next, I suggest that you develop some Powerful Routines (which are basically results-oriented tactics) to combat this undesired scenario.
Think of Powerful Routines as your magic bag.
You reach in and pull out the appropriate tool to improve your success ratios. These tools work in any scenario, whether within a selling process or an essential competency
Would you prefer to cold-call 100% of the time? Or would you rather call on referral contacts?
A no-brainer, right?
So, if you like referral leads, do you have a system of Powerful Routines to maximize your percentage of referrals?
It can be as simple as developing a post-sale 3-minute interview, where you set the stage with your new customer. You can say, in plain words, how important referral business is to you personally. Then, you and the customer can agree as to what objectives you must meet to be awarded these critically important referrals.
Most sales organizations have some sort of referral program. However, few provide training of Powerful Routines to get the most out of them.
Do you track referral ratios and routinely discuss them?
Why do some of the sweetest referral programs have ratios at or below 20%? 20% is absurdly low. But, add Powerful Routines referral scenarios and track the results. The difference is astounding.
In the Business of Core Competencies, students receive a Competency Assessment Tool. This software screen shows their personal performance status.
At a glance, they can see where they are struggling. What an opportunity! You can train to their weak points before bad results appear. It's as simple as identifying the troublesome scenarios, then attaching the Powerful Routines to fix them.
We've developed a complete system with a series of Powerful Routines. These Powerful Routines deal with specific scenarios that occur when telephoning prospects. And because of a training focus on those components, the system provides proactive communication flow toward confident appointment setting.
You need to build your own library of Powerful Routines. The Competency Assessment tool is a huge asset toward that end. But, however you build your library, it is critical that you build it.
These Powerful Routines can help you turn around undesired scenarios. Identify, train to and measure them so you can routinely achieve your desired results!
What to Do When You Hit the Invisible Sales Revenue Ceiling
Have you ever hit a level of revenue that you just couldn't seem to break through?
If you have, then you know how frustrating it can feel.
You may even spike above this ceiling periodically. But, like water seeking its own level, your revenue results seek a sub-par level.
I once walked into a situation much like this. I assumed the position of Vice President in a relatively young company. I was immediately tasked with making the changes needed to solve the revenue problem.
The company, after nearly 2 years of business-to-business selling of their service, had met only 40% of their revenue expectations.
Finance told me they were "behind" projections and needed to catch up. And the executive team wanted to know how long it would take. And the CEO said we didn't have much time.
In this case, corporate had created a unique and valuable position in the marketplace. They had a sustainable competitive advantage. The service application worked, the product was needed and their offering was dramatically different from its competitors. Their Strategic Positioning was in place and healthy.
So why the invisible ceiling?
Sales leadership had failed to understand their meaningful business metrics. This was the primary reason, as it is in most cases. They had not isolated the essential competencies and components. Therefore, their people couldn't self-compete to reach and maintain revenue goals.
They failed to develop practices and processes that allow an individual to identify, train to and measure their own competencies and performance metrics.
In other words, they attempted to shortcut the "Blocking and Tackling" process to routinely meet revenue goals.
When you hit a revenue "ceiling," you have to go into diagnostic mode.
Ask the critical questions:
Which one of your Key Performance Indicators is causing you to fall short?
There may be several, but only one is the main culprit. As an example, the company I mentioned was fundamentally fine in turning first appointments into proposals. And they were maintaining an "average" closing ratio. Their sales cycle was within acceptable benchmarks.
Both competencies had room for improvement, but they were not the "smoking gun" at the scene of the crime. So what was the one culprit in this case?
What if I told you they were only generating 2 new appointments per week per sales rep?
Their average revenue per sale at this level of activity, when related to other competency and performance numbers, produces a 40% return.
Anyone can understand that something has to change operationally to grow the revenue. And what one item jumps off the page? In this case, as in many others, activity is the path of least resistance. They just needed to be taught how to generate routine opportunities in the least amount of time.
Everyone settles to his or her own level of "result".
That may be OK, but only if your comfort zone is consistently at or above the company's expectations. And when it's not, "Houston, we have a problem."
These kinds of problems cause a shortfall of revenue and unnecessary employee turnover, both of which carry "hard-dollar" consequences. I attribute it to having a "comfort zone" that is not all that comfortable.
So, there you are. You're having a hard time figuring out where it hurts. So you take an aspirin and hope it goes away.
Seek to understand how to break through this undefined ceiling. View your job as a business, your business, and evaluate it. Use the kind of diagnostic lens entrepreneurial business people use to scrutinize their enterprises.
Now, you can develop your own systems and processes, if you want. But maybe you'd rather not try to re-invent the wheel.
In which case, invest in mine.
Either way, the first step in busting through an invisible revenue ceiling is to identify and measure your essential core competencies. Then, develop powerful training systems to improve those competencies.
And you'll outperform your "comfort zone," your peers and your competitors.
If you have, then you know how frustrating it can feel.
You may even spike above this ceiling periodically. But, like water seeking its own level, your revenue results seek a sub-par level.
I once walked into a situation much like this. I assumed the position of Vice President in a relatively young company. I was immediately tasked with making the changes needed to solve the revenue problem.
The company, after nearly 2 years of business-to-business selling of their service, had met only 40% of their revenue expectations.
Finance told me they were "behind" projections and needed to catch up. And the executive team wanted to know how long it would take. And the CEO said we didn't have much time.
In this case, corporate had created a unique and valuable position in the marketplace. They had a sustainable competitive advantage. The service application worked, the product was needed and their offering was dramatically different from its competitors. Their Strategic Positioning was in place and healthy.
So why the invisible ceiling?
Sales leadership had failed to understand their meaningful business metrics. This was the primary reason, as it is in most cases. They had not isolated the essential competencies and components. Therefore, their people couldn't self-compete to reach and maintain revenue goals.
They failed to develop practices and processes that allow an individual to identify, train to and measure their own competencies and performance metrics.
In other words, they attempted to shortcut the "Blocking and Tackling" process to routinely meet revenue goals.
When you hit a revenue "ceiling," you have to go into diagnostic mode.
Ask the critical questions:
Which one of your Key Performance Indicators is causing you to fall short?
There may be several, but only one is the main culprit. As an example, the company I mentioned was fundamentally fine in turning first appointments into proposals. And they were maintaining an "average" closing ratio. Their sales cycle was within acceptable benchmarks.
Both competencies had room for improvement, but they were not the "smoking gun" at the scene of the crime. So what was the one culprit in this case?
What if I told you they were only generating 2 new appointments per week per sales rep?
Their average revenue per sale at this level of activity, when related to other competency and performance numbers, produces a 40% return.
Anyone can understand that something has to change operationally to grow the revenue. And what one item jumps off the page? In this case, as in many others, activity is the path of least resistance. They just needed to be taught how to generate routine opportunities in the least amount of time.
Everyone settles to his or her own level of "result".
That may be OK, but only if your comfort zone is consistently at or above the company's expectations. And when it's not, "Houston, we have a problem."
These kinds of problems cause a shortfall of revenue and unnecessary employee turnover, both of which carry "hard-dollar" consequences. I attribute it to having a "comfort zone" that is not all that comfortable.
So, there you are. You're having a hard time figuring out where it hurts. So you take an aspirin and hope it goes away.
Seek to understand how to break through this undefined ceiling. View your job as a business, your business, and evaluate it. Use the kind of diagnostic lens entrepreneurial business people use to scrutinize their enterprises.
Now, you can develop your own systems and processes, if you want. But maybe you'd rather not try to re-invent the wheel.
In which case, invest in mine.
Either way, the first step in busting through an invisible revenue ceiling is to identify and measure your essential core competencies. Then, develop powerful training systems to improve those competencies.
And you'll outperform your "comfort zone," your peers and your competitors.
Cracking the Pareto Code
Ever heard of the "80/20 Rule"? That's the well-known principle that says that in every sales organization 20% of the salespeople win 80% of the sales (and money!) while the remaining 80% are all splitting up 20% of the revenue. So, which category do you want to be a part of - the Top 20%, or what I refer to as the Sales HEROES, right?
Where did this rule come from? In fact, the 80/20 rule is not a rule, it's a "law." It comes from the work of Vilfredo Pareto, an eighteenth-century Italian economist. His studies on economics and productivity led to the conclusion that in just about any endeavor, 80 percent of the productivity will come from only 20 percent of the efforts. Eighty percent of the profits are produced by 20 percent of the employees. In a police force, 80 percent of the arrests are made by 20 percent of the officers. It can be applied another way: 20 percent of a business's customers create 80 percent of the problems. And so on.
Want to be a Sales HERO? You can use Pareto's Law to your advantage! Create an action plan that embraces the law rather than fights it. Meetings, crisis management, phone calls, office chat, paperwork, getting your ducks all lined up in a row are NOT part of the 20 percent of your activity that is directly attributable to creating new business. There is only one task proven to directly lead to achieving your sales objectives: cold calling or prospecting. I have seen every possible attempt to find a way around Pareto's Law but none has succeeded. Once you accept the reality that you cannot change the rules of the numbers game, you will be able to make the decision simply to play by the rules or quit.
How many prospecting calls do you have to make? Let's apply Pareto's Law to find out. Let's say you decide to "complete" 100 prospecting calls in a given period of time. According to Pareto's Law, you will have had to walk through about five doors or made five phone attempts to actually reach one decision maker (20 percent of the total). Therefore, you will make 500 attempts to attain your goal of completing 100 prospecting calls. Of the 100 decision makers you actually spoke with, 20 (20 percent) are going to have a genuine interest and will stay in the game - your pipeline - for further follow up, while 80 (80 percent), no matter how good at selling you are or how much you know they need what you have to offer, are simply not going to be interested - they are out of the game for the time being. Now, through appointments, proposals, and follow-up calls, you will find that 80 percent (or 16) of the 20 prospects that were still IN the game are not going to buy (at least not right now), for whatever reason. There is absolutely nothing you can do about it. It's not you, it's the law. Don't worry, they may get back in the game later! That leaves four decision makers who buy your product now! Congratulations, you just made your first four sales! At first this may seem like small reward for all your efforts, but you will learn that it is a good, solid formula that will always help you get from ZERO to Sales HERO in 90 days!
Try this - Invest 80% of your productive time prospecting for new business for three straight months. If you do, you'll find that from there forward you will never need to invest more than 20% of your time prospecting to keep your momentum going. As you mature in your sales career you will learn many skills, techniques and ideas that will help you learn to work smarter rather than harder, and to leverage relationships and referrals to build your sales empire. Just remember – whenever you start fresh with a new opportunity, or if you find yourself in a slump and need to get out of it fast – start a 90 day action plan that embraces Pareto's Law – I guarantee you will be on your way to the Top 20% of all salespeople in the world!
Where did this rule come from? In fact, the 80/20 rule is not a rule, it's a "law." It comes from the work of Vilfredo Pareto, an eighteenth-century Italian economist. His studies on economics and productivity led to the conclusion that in just about any endeavor, 80 percent of the productivity will come from only 20 percent of the efforts. Eighty percent of the profits are produced by 20 percent of the employees. In a police force, 80 percent of the arrests are made by 20 percent of the officers. It can be applied another way: 20 percent of a business's customers create 80 percent of the problems. And so on.
Want to be a Sales HERO? You can use Pareto's Law to your advantage! Create an action plan that embraces the law rather than fights it. Meetings, crisis management, phone calls, office chat, paperwork, getting your ducks all lined up in a row are NOT part of the 20 percent of your activity that is directly attributable to creating new business. There is only one task proven to directly lead to achieving your sales objectives: cold calling or prospecting. I have seen every possible attempt to find a way around Pareto's Law but none has succeeded. Once you accept the reality that you cannot change the rules of the numbers game, you will be able to make the decision simply to play by the rules or quit.
How many prospecting calls do you have to make? Let's apply Pareto's Law to find out. Let's say you decide to "complete" 100 prospecting calls in a given period of time. According to Pareto's Law, you will have had to walk through about five doors or made five phone attempts to actually reach one decision maker (20 percent of the total). Therefore, you will make 500 attempts to attain your goal of completing 100 prospecting calls. Of the 100 decision makers you actually spoke with, 20 (20 percent) are going to have a genuine interest and will stay in the game - your pipeline - for further follow up, while 80 (80 percent), no matter how good at selling you are or how much you know they need what you have to offer, are simply not going to be interested - they are out of the game for the time being. Now, through appointments, proposals, and follow-up calls, you will find that 80 percent (or 16) of the 20 prospects that were still IN the game are not going to buy (at least not right now), for whatever reason. There is absolutely nothing you can do about it. It's not you, it's the law. Don't worry, they may get back in the game later! That leaves four decision makers who buy your product now! Congratulations, you just made your first four sales! At first this may seem like small reward for all your efforts, but you will learn that it is a good, solid formula that will always help you get from ZERO to Sales HERO in 90 days!
Try this - Invest 80% of your productive time prospecting for new business for three straight months. If you do, you'll find that from there forward you will never need to invest more than 20% of your time prospecting to keep your momentum going. As you mature in your sales career you will learn many skills, techniques and ideas that will help you learn to work smarter rather than harder, and to leverage relationships and referrals to build your sales empire. Just remember – whenever you start fresh with a new opportunity, or if you find yourself in a slump and need to get out of it fast – start a 90 day action plan that embraces Pareto's Law – I guarantee you will be on your way to the Top 20% of all salespeople in the world!
A Perfect Marketing Strategy for Loan Officers
If you are a loan officer or mortgage broker looking to score some more customers the easy way, here are a few good ideas for a marketing strategy.
During the entire process of getting a loan ready for closing, you and your customer are met with more than one reason to celebrate other than at the closing table.
For example, before you can proceed with a loan, your customer must have an appraisal done on their home.
Once that appraisal comes in, both to the liking of you and your customer, send your customer an inexpensive congratulatory gift such as a tin of pretzels, cookies, or candy.
But make sure you send it to their place of employment.
Why do something so cheesy you may ask?
Because when you send someone a gift at work, all of their fellow employees want to know why they got it and who it was from.
So when they ask, your customer will tell them all about you and the products and services you are providing them with.
Also, if you have sent some of your business cards along with the gift, you better believe they will be handing them out.
Don't forget to use the same technique once the loan is approved and than again once the loan is closed.
This is a perfect way to get your customers selling you and your products to co-workers, friends and family.
During the entire process of getting a loan ready for closing, you and your customer are met with more than one reason to celebrate other than at the closing table.
For example, before you can proceed with a loan, your customer must have an appraisal done on their home.
Once that appraisal comes in, both to the liking of you and your customer, send your customer an inexpensive congratulatory gift such as a tin of pretzels, cookies, or candy.
But make sure you send it to their place of employment.
Why do something so cheesy you may ask?
Because when you send someone a gift at work, all of their fellow employees want to know why they got it and who it was from.
So when they ask, your customer will tell them all about you and the products and services you are providing them with.
Also, if you have sent some of your business cards along with the gift, you better believe they will be handing them out.
Don't forget to use the same technique once the loan is approved and than again once the loan is closed.
This is a perfect way to get your customers selling you and your products to co-workers, friends and family.
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