Sales Sounding Board - Inc.com Patrick Stakenas is Co-Founder, President and CEO of ForceLogix. Patrick has over 25 years of industry executive and entrepreneurial experience and has served as Senior Vice President of Sales and Operations at CCC Information Services, FileNet, and OpenText. http://www.inc.com/sales-sounding-board Wed, 23 Dec 2009 16:40:37 -0500 en-us Sales Sounding Board - Inc.com http://www.inc.com/sales-sounding-board 100 100 Are You Ready for 2010? http://www.inc.com/sales/2009/12/are_you_ready_for_2010.html The budget process is pretty much done, you have worked with marketing to develop the go-to-market plan, sales roles have been identified and the right talent is on board or planned. You feel good about 2010; you have the right coverage to reach your prospects and customers, the economy seems to be turning if not at least leveling off, you have more training in the budget, your CRM utilization is not bad'

So, now what? What are you going to do different this year? How are you going to be sure you know what your reps should be doing every hour, every day, and every month? How are you going to manage your expectations of them? How are you going to track the underlying business plan assumptions that add up to revenue?

First of all, don't wait for anyone to tell you what to do. Daily productivity is a team effort involving both reps and sales leadership. My philosophy on this is that you should set your company's expectations as a whole; make sure there is belief in the sales teams. That includes both the technology and finance departments, not just the more obvious corporate functions such as marketing and customer service.

How much output each rep will realize can be facilitated by sales optimization. Technology can provide systems to make workflow more efficient and minimize time needed to perform administrative tasks. Finance can provide access to the right data, but you also need to work on what to do with that data.

Productivity is largely influenced by the front line sales manager who must have the reporting capability to track relevant statistics. Productivity metrics include many of the obvious stats but also lesser-known activities such as tracking the types of sales calls that are being made and being able to identify the calls that aren't bringing in business. Visibility into these metrics and action plans to drive the numbers allows your sales leadership more leverage to take action before it's too late.

Productivity is about executing every day and having actionable visibility into the details. These are the business drivers that will get you to where you want to be in 2010.


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Wed, 23 Dec 2009 16:40:37 -0500 Patrick Stakenashttp://www.inc.com/sales/2009/12/are_you_ready_for_2010.html
Following the Sales Playbook http://www.inc.com/sales/2009/10/following_the_sales_playbook.html While many companies adopt specific sales processes, they are often using criteria that are either too complicated or sometimes too simplistic, and often promote the wrong selling behavior.

Managers are hired and promoted for showing expertise in leading their teams and driving revenue for the company. However, managers often like to adopt their own spin on the sales process and often your company may end up with too many variations to the playbook. Imagine if on the sidelines of a football game you had each coach carrying out their own version of the game plan. It would be chaos. The same can occur in a company's sales environment if your team is not on the same page.

In today's economic environment, it is paramount to set the right criteria to drive behaviors that will impact the company's bottom line and long term goals. This criteria has to be succinct and measurable, and workflow must be instilled to assure each manger is sticking to the process you deployed.

Working smarter also requires driving this repeatable process on all levels of sales. Providing sales management and sales reps with the visibility and insights they need to see how they are performing, and allowing them to measure where they stand across "metrics that matter," forces managers to follow the plan.

A recent survey done by CSO Insights with 1,000 respondents found that "just over half noted that spreadsheets are still a primary vehicle for managing." The report states, "using spreadsheets can often be error prone (at a rate of three to five percent) and limit the integration with key technologies like sales analytics, CRM software, and Sales 2.0 systems. But, by combining rich sales and post-sales data, managers can set plans that better motivate reps and identify areas where rep coaching is needed."

In adopting a system-wide approach with built-in workflow and consistent utilization of sales coaching tools, your chances to succeed in sales will increase substantially.

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Thu, 22 Oct 2009 18:05:11 -0400 Patrick Stakenashttp://www.inc.com/sales/2009/10/following_the_sales_playbook.html
Sales: Gaining Market Share http://www.inc.com/sales/2009/09/sales_gaining_market_share.html In the ever changing landscape of business sales the competition is tougher than ever. Companies who want market share typically look outside their own walls to an acquisition or a joint venture where they can take or merge business into their own. The thing is, customers are more sophisticated than that, and demand more. Just buying the business through acquisition does not guarantee that your customers will stay with you.

To meet customer needs businesses need to have an organized and systematic approach to winning the deals and keeping the customer happy. Having a systematic approach that includes a structured sales methodology, quality products and services, attention-grabbing advertising, and reliable customer service helps businesses successfully grab new customers, generate more revenue, and increase market share.

As a senior sales manager or C-level executive, the one area that can be impacted immediately is process. Having a structured accountability process in place is not a luxury, but a must have. Design a plan with marketing to target potential new customers and hold your salespeople to pitching according to the plan. Use the information you already have in your customer relationship management (CRM) system to develop your campaign and focus your sales process.

The Sales Manager has many competing priorities in their day to day work. However, one of the most important is the need to manage the sales functions and be sure that salespeople are focused on what is expected. The goal of having a system in place is to improve the quality of the targeting, goal setting, and action planning efforts of your salespeople. This enhancement will lead to an increase in the profitability and market share for each individual territory.

Though the exact methodology and structure of the sales process may vary depending on the type of company, it should always serve the purpose of growing your market share. An effective sales process and accountability system is the heart of the sales organization. A nonexistent or unstructured sales process will most likely slow down growth. It is possible to do more than just sustain; you can grow and gain market share with the right approach and systems in place.

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Tue, 22 Sep 2009 17:07:57 -0400 Patrick Stakenashttp://www.inc.com/sales/2009/09/sales_gaining_market_share.html
How to Stay Relevant in Sales http://www.inc.com/sales/2009/08/how_to_stay_relevant_in_sales.html Sales management as we know it has changed. The current economic situation has sales people and sales management doing extraordinary things in these challenging times that are often unnatural. It is time to take control of your selling environment before someone else is asked to.

Companies are looking for profitability over growth which often means they require fewer sales people to get the same or better result. They are re-evaluating their priorities and forcing sales management to be accountable and do more with less. They are looking to put a structure in place that has the highest likelihood to prosper in this difficult sales climate.

So, what can your company do to ensure it will stay relevant?

Embrace Structure in the Sales Function
Show your employees that you are in tune with the changing times and are willing to put structure around sales. A sales structure is not all that different from the ones you probably have in place for your factories, warehouses, and other functions of your business. Make sure your employees are clear on their roles within the structure. Here are some suggestions for instituting a successful sales structure:

Put in a Sales Accountability SystemHold sales management to clear expectations on not only the numbers, but also on building a quality team.Use a systematic approach to track both lagging and leading indicators as well as role-based skills or competencies within your sales team.

Reduce Wasted Effort
With the proper system in place, your sales managers will not be hunting for data or spending countless hours analyzing team performance. Analysts' statistics show that having an accountability system in place reduces sales management administration overhead by over 30 percent. Sales managers should also focus on where they can add value by using those on the team who are most coachable. If you have built a strong team, your sales managers should not have to be on every call.

Consider the Alternative
We in sales all have a responsibility to shape our future, drive revenue and profitability. Sales management specifically has the extra task of managing morale and coaching, while holding salespeople accountable.

Status quo never works; the hammer only works for so long and the alternative to putting in structure is to do nothing. Without a structured process, you will not be able to explain who is strong and who is weak, and what you are doing about it to better the team.

The trends of the selling marketplace have shifted towards a more structured and accountable environment. If your company genuinely lives and breathes these values it will be in a position to thrive today and in the future.


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Thu, 27 Aug 2009 14:30:00 -0400 Patrick Stakenashttp://www.inc.com/sales/2009/08/how_to_stay_relevant_in_sales.html
Driving More Revenue: It's Never in the Budget http://www.inc.com/sales/2009/07/driving_more_revenue_its_never.html You need more sales -- more revenue to be exact -- but there is "no budget" to spend on marketing. Sound familiar?

Maybe, just maybe, more marketing spending is not what you need.

Whenever I sit in a meeting about prospects, we discuss the biggest challenges that salespeople face. Number one is always sales or attaining revenue. The funny thing about that however, is there is often an assumption that with more lead generation, more marketing dollars or more advertising, the sales team will be able to sell more.

Don't get me wrong, your prospects still have a need for what you sell and it's important for them to know you exist, but even with the best prospects or greatest lead list, if your sales people are not at the top of their game, you will lose way more then you will win.

Think seriously about shifting your focus to what you can control. OK, there is no money in the budget to do more marketing, so take what you have and make sales managers and sales people better.

Focus your energy and the money you do have on your sales managers:

Put a program in place to assure they are spending time with the sales people who have the greatest opportunity to improve.Start tracking your sales team's leading indicators, such as who they are calling on, how often, and what products they are presenting.Assign your managers the task of tracking subjective data. For instance, rate the reps' ability to present your products, their knowledge of the message, and their ability to sell.Spend what money you have on taking away administrative tasks from the sales managers and provide them with a system or tool to track, manage, monitor leads, and coach.

Ask yourself the hard question: How do we make quota this year? And realize that the answer to this question requires you to understand every person on your team and their ability to deliver.


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Fri, 17 Jul 2009 16:01:26 -0400 Patrick Stakenashttp://www.inc.com/sales/2009/07/driving_more_revenue_its_never.html
The Benefits of Sales Coaching http://www.inc.com/sales/2009/06/the_benefits_of_sales_coaching.html Forward-looking organizations like Lenovo, Corning, Innovex, Motorola are known for being leaders in adopting effective sales processes and technology. Many of these companies are now leveraging new processes and capabilities to empower their sales management teams and to get more out of their sales people through tracking key performance indicators and coaching. Even though you may be a small company in comparison, the key to improving sales in your organization is where you focus. The focus should be on your salespeople and their performance rather than the resulting numbers. One way to assist your salespeople is to identify key members of the sales team who have the greatest propensity for coaching and create a buddy system whereby your salespeople are supporting one another and encouraging each other to meet their goals.

In a recent study by the Sales Executive Council (SEC), companies were surveyed to determine the relative impact of effective coaching on A, B and C performers. The study clearly indicated coaching offers greater value when targeted specifically at the B players, or "core performers"—those who show ability but have unrealized potential. In fact, the study indicated that you can expect to see a 17% or greater improvement in productivity and revenue from your B and C players when consistently coached.

Do this simple exercise, regardless of the size of your company, and you will be able to determine where to focus your coaching efforts.

What percent of reps made their assigned quota?How many reps came at least within 20% of their targets?What is your turnover percentage and how many reps are new?

If you are like most companies, you are likely to have 10-20% of your sales team that are in the "A" category and 10-20% that are new hires. The core 60% or so from this simple exercise is where your sales leaders need to focus their time and efforts and where you should be spending your money.

Focusing on this core makes sense from several perspectives:

They are most coachable and your money invested will be well spent.They represent the largest fixed investment in your sales budget.Given the law of numbers, a simple 3-5% performance improvement in the core will yield a significant overall impact.

The practical goal is not so much to expect 100% "A" players, but minimize the under performers' impact on your business and coach this core team to better results.

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Tue, 30 Jun 2009 15:41:51 -0400 Patrick Stakenashttp://www.inc.com/sales/2009/06/the_benefits_of_sales_coaching.html
Can Sales Technology Help Your Bottom Line? http://www.inc.com/sales/2009/04/can_sales_technology_help_your_1.html More companies today are leveraging technology in the area of coaching, sales management, and sales operations to drive not only selling efficiencies, but also the overall effectiveness of their sales team. Traditionally, investments in sales technology have been looked at as a necessary evil, and are often shunned by IT departments who think they can build it themselves. The reality is that it took sales guys like Tom Siebel, of Siebel Corporation, and Mark Benioff, of Salesforce.com to build true CRM systems, while IT guys were building and throwing away miles of code.

Forward-looking organizations like Lenovo, Corning, Innovex, Motorola and many others are leveraging the capability and domain expertise of technology built by sales managers to empower their sales force. Many of these solutions utilize SaaS technology to build flexibility in sales management, measurement, and coaching. However, as organizations tighten their belts, resources including financial and human capital become difficult to obtain and managers must work harder than ever to ensure that their employees are focused on achieving critical objectives.

The good news is that technology can be a key enabler in achieving these goals. If employees, especially sales people, are coached, and have clear objectives that are tied back to the organization's strategy and operational plan, it's more likely that the strategy will be achieved. In a recent study done by the Aberdeen Group, it was confirmed that this economic downturn has placed even greater pressure on the sales function. Sales leaders must increase sales effectiveness while external forces reduce the number of real opportunities and threaten top-line revenue growth.

Business leaders need actionable data to align sales behavior with business objectives and rapidly adapt to changes in the market. Aligning and automating sales execution with organizational goals requires a holistic approach that includes compensation management, process optimization, and data analysis. Research reveals that traditional manual coaching and sales management processes reduce productivity for multiple functions, not only sales; finance, operations, and IT are all impacted as demand for sales information increases, in turn affecting both top and bottom line growth.

Companies must keep abreast of the latest technology strictly from the standpoint of whether or not it can help you increase your business volume. Regardless of the industry, sales people must be held accountable to know the products, know the marketing message, understand the sales process, and have the skill set to use the arsenal provided by the company or institution. Face it: If you don't make sales, you're not in business.

One way to use technology to your advantage in coaching and SPM is to have it accessible while the coaching session is taking place. To have the ability to coach on the spot and track what you have taught is invaluable. Being able to follow up immediately with the sales person on the objectives set and create an ongoing dialogue, will lead to more effective and more productive sales people.

In the highly competitive sales industry, a key source of competitive strength is the execution skills possessed by your on-the-ground or telephone sales force. This has become more critical than ever as the economy has slowed down and workforces are shrinking. Without a system to track the ability, skill, and overall effectiveness of your sales team you will suffer consequences in today's competitive environment.

Do you have examples of how your company has utilized sales technology to optimize your bottom line?


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Fri, 24 Apr 2009 16:24:48 -0400 Patrick Stakenashttp://www.inc.com/sales/2009/04/can_sales_technology_help_your_1.html
Smoke and Mirrors Sales Figures http://www.inc.com/sales/2009/04/smoke_and_mirrors_sales_figure.html More often than not, when it comes to companies meeting their sales figures, there is a disconnect between what the CEO expects and what the vice president of sales can realistically deliver. The true challenge for the head of sales lies in how to substantiate to the CEO why the numbers were missed, or, if they were made, how they were arrived at.

A recent article published on MarketingProfs.com titled "Lies, Damn Lies and Dashboards," stated that CRM and business intelligence dashboards are often manipulated by managers and marketing execs to present a positive outcome that doesn't necessarily promote the truth.

The key to establishing a trusting relationship between sales and the boardroom is to put in place a process for determining how a representative or team is doing against expectations. This often involves using technology that can track, measure, and report on both the leading and trailing indicators of the company's sales goals. It also provides you with a system for tracking the progress of your salespeople.

Done properly, senior sales leaders can deliver the truth that CEOs can and want to handle. If things are going well, the vice president should be able to explain what is driving the success of sales and why, and also how those sales will be sustained. If it is a rebuilding model, the same applies. The vice president must be able to show where the bad news is; he or she should have an explanation for what is happening with the sales trajectory, and what the plan needs to be to correct the situation.
CEOs make the connection between fluff and what matters. And with sales, it can't all be smoke and mirrors.

Patrick Stakenas is president and CEO ForceLogix, a Chicago-based company that builds on-demand sales performance management solutions.

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Mon, 06 Apr 2009 18:10:19 -0400 Patrick Stakenashttp://www.inc.com/sales/2009/04/smoke_and_mirrors_sales_figure.html
Increase Sales by Focusing Less on Quota http://www.inc.com/sales/2009/01/increase_sales_by_focusing_les.html Sales managers seemingly never take their eye off where they stand against quota. But what if I was to tell you that maybe it's time to forget about quota and focus on long-term results? You may think I'm out of my mind. How can a sales organization be led without focusing on quota?

If quota isn't met, the salesperson will clearly lose his or her job. If enough salespeople don't meet quota, then the sales manager loses his or her job. If enough sales managers miss their numbers, then the vice president of sales gets it. Right? Yes, right, but focusing only on the numbers and beating people up over them, instead of teaching, coaching, leading, or managing will only bring short-term results (if any at all).

The first step toward exponential revenue growth isn't about running after quota each month or quarter. The success of the sales organization will come from process. Build competency and skill within the team and execute with that skill until a powerful hold grabs onto the sales organization. Second nature will then drive sales effectiveness month after month after month.

Typically when a new methodology is introduced into the sales organization, it's often treated as an event or project and not immediately linked to the process by which the sales team sells. In fact, training is often viewed as a distraction or taking an eye off of the number. Yet companies spend millions of dollars on sales methodologies and training, while follow-up on these new processes is poor. Sales leadership at the top is typically not engaged. While they may claim to be supporting the approach, often they aren't doing anything to ensure there's a return on the effort and cost.

Many sales leaders think because they have brought in CRM, put salespeople through training, and have a consultant in place to figure out which sales methodology is best, that sales will just increase. It's this same so-called leader or change agent that CEOs have had to remove time and time again because they never actually delivered the number and spent too much money trying to do so.

The fact is that these elements are necessary, but on their own they are not going to make much of a difference. They will not stick unless these elements are controllable and measurable and salespeople are held accountable for learning and following the process.

Sales management is a close relationship between the sales representative and the sales manager. It should not be an exercise where each conversation only involves quota. Effective sales management requires sharing in the responsibility to understand the issues, problems, and gaps in your sales process. Start with a desired process, then coach, lead and motivate reps to follow that process. If you focus only on the number, you will not attain the number.

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Thu, 22 Jan 2009 12:45:26 -0500 Patrick Stakenashttp://www.inc.com/sales/2009/01/increase_sales_by_focusing_les.html
Turning Value into Customer Requirements http://www.inc.com/sales/2008/11/turning_value_into_customer_re_1.html Although armed with a carefully crafted list of 10 "unique" benefits to customers, a supplier of sophisticated network security systems learned they had lost a million dollar contract to a competitor with almost exactly the same list of benefits, but a 10 percent lower price.

Another company offering comprehensive Enterprise Resource Planning solutions emphasized their superior ability to promote operating efficiency. After losing a large sale, they were surprised to learn the customer wasn't especially interested in efficiency. Instead, customer executives had bought into a competitor's offer of flexible, modularized SAP solutions--a perfect fit for the firm's strategy of growth by acquisition. By then, it was too late for the original vendor to explain that they could match and even exceed the competitor's flexibility.

These companies were both trying to "sell value" to their customers--an objective shared by nearly every business-to-business supplier. In an audience of sales professionals, we see nods when this subject comes up--"That's exactly what I do," they say. "I sell value."

Despite the overuse and misunderstanding of the "V" word in recent years, selling organizations have received the message: the one and only thing customers really want to know is, "What is the value to me if I buy from you?"

If everyone got the message and the value strategy is in play, why aren't customers responding? At the same time, why are sales cycle times lengthening, the number of "no decisions" increasing, and it's tougher than ever to engage C-level executives?

In some ways, the answer is deceptively simple. Too many salespeople are presenting their "value propositions" in a vacuum and lacking genuine insight into the customer's point of view about real value. Without a consistent method for looking at the offering from the customer's vantage point, we can be blinded by internal perceptions of what we bring to the market and unable to identify and leverage what really provides value to our customers. In reality, we aren't converting value from "interesting" to "required."

Unfortunately, value propositions and common "value messages" are merely a statement of value capability. They are value messages based on one-size-fits-all assumptions, or that emphasize a distinction that doesn't make a difference. After a two-year study of management practices in Europe and the United States, it's not a surprise that James C. Anderson and his colleagues at Harvard discovered it is "exceptionally difficult to find examples of value propositions that resonate with customers."

In our Diagnostic Selling program, we like to compare the interactions between a salesperson and a customer as similar to those between a doctor and their patient. With that in mind, if we take the prescription drug Lipitor, its "value proposition" is that it will reduce cholesterol. The critical point doctors understand, which we sometimes overlook as salespeople, is that you can only reduce cholesterol if the patient has high cholesterol. If the patient doesn't have high cholesterol, Lipitor is of no value.

Exceptional sales professionals recognize that in order to maximize value, there first must be an absence of value, and the consequences of the absence of that value needs to be significant enough to create the "Incentive to Change," to take action. The first step in a doctor's diagnosis is to check for the presence of symptoms of a disease. If they exist, this would indicate the patient's health is at risk and the doctor's intervention in the form of a prescription drug or surgery would be of value. It certainly would be an incentive to change.

The same holds true for the salesperson. What are the physical symptoms of the "absence of the value" your product/service/solution is capable of providing? If your customer shows those symptoms, their business and/or personal job performance is at risk and your solution will be of value. The next step is to jointly determine the consequences. We need to determine how and by what dollar amount is this individual and this business and their respective performance measurements impacted by the absence of your solution. This will determine the true value of your solution in a tangible manner that the customer can agree with.

The value proposition makes your solution capable, the existence of the symptoms makes your solution's value relevant, and the level of the consequences will create the urgency that will make your solution required.

Jeff Thull is the President and CEO of Prime Resource Group, and a leading-edge strategist and valued advisor for executive teams of major companies worldwide.

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Fri, 07 Nov 2008 15:44:03 -0500 Jeff Thullhttp://www.inc.com/sales/2008/11/turning_value_into_customer_re_1.html
Prepare Your Sales Hires Faster http://www.inc.com/sales/2008/10/prepare_your_sales_hires_faste_1.html Optimizing sales performance should be your most important concern. The 2007 CSO Insights report cites that to achieve sales performance optimization, one must truly understand the "levers" of sales performance and effectiveness. And the first "lever" should be getting your salespeople ramped up and on board as fast as possible -- this way they can start earning you the "green."

But did you know there are levers inside the hiring and on-boarding process that must be defined as well? Here are three must-dos to turn your lost-in-the-sauce newbies into familiarized staffers:

1. Time is Fleeting
There is an opportunity in the first three to six months of a salesperson's career at the new company to set the tone. And during this timeframe, you need to get your new hires to fully comprehend your desire for their success and that you plan on using process, methodology, coaching and technology to help them.

2. Well-Equipped Equals Well-Sold
By understanding the important indicators and providing managers with the proper content and tools, organizations can help their supervisors reduce the time needed for new hires to become fully productive -- and likewise reduce support costs. Organizations should have packets available for managers to give out on company policy and procedure, as well as provide training on all company systems within the new hire's first week. Develop a mentor-mentee arrangement in which a more experience top seller can take new hires under their wing to show them the ropes on sales calls.

3. Belly Up to the Benchmark
Take the time before a salesperson is on board to integrate traditionally independent activities from multiple departments, and agree on the collaboration process. Create a plan that has specific objectives and milestones that pinpoint productivity from day one. Measure and track productivity, but measure in terms of activity rather than financial results. This allows for better tracking, measurement, monitoring and coaching.

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Tue, 07 Oct 2008 14:47:02 -0400 Patrick Stakenashttp://www.inc.com/sales/2008/10/prepare_your_sales_hires_faste_1.html
Sales Management Coaching Will Net You Big Results http://www.inc.com/sales/2008/09/sales_management_coaching_will.html With the baseball season in full swing, it was no surprise to me that an article came across my desk on baseball coaching, and managing the strengths and weaknesses of players. I found it apropos that I was working on an article that stressed the importance of sales managers to coach their sales people to get better results.

In baseball, the manager has many statistics; batting average against the team, on base percentage against opposing pitchers, runs batted in, etc. All of which they (the manager) use to coach and make decisions during practice and the course of the game. They understand the strengths and weaknesses of every player and coach and manage to improve their game.

Behavioral research suggests that this most basic principle, coaching, works across industries and that the most effective salespeople are those who understand their actions and understand their strengths and weaknesses and are working to get better.

Increasing awareness of the significant impact of sales coaching is really a new way of thinking for most companies. The coaching of sales individuals and leveraging the experiences of existing talent to improve the performance of the entire sales organization has now shifted from a something we should do when we get time to a necessity.

With the right approach to coaching, management can examine the required skills that need to be sharpened and deliver the results rather than just focusing on the state of the pipeline or the end of the month's results.

To get real benefit from coaching, technology must be used. No different than automating the customer side of the business with tools to manage contacts and activity. Tools are necessary to manage the coaching process and it will save companies weeks and months of time as each coaching session and the score associated with the session can roll up to monthly, quarterly and annual reviews. When done, the chance of sales improving is dramatically increased.

Overall, any company can benefit from having a consistent process for understanding qualitative and quantitative metrics. Once understood and technology is put in place, coaching becomes a daily occurrence rather than an annual event. Improvement on leading indicators can now be tracked and coached on and a resulting increase in revenue is naturally evident.

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Wed, 17 Sep 2008 10:59:43 -0400 Patrick Stakenashttp://www.inc.com/sales/2008/09/sales_management_coaching_will.html
Nobody Buys a Value Proposition http://www.inc.com/sales/2008/09/nobody_buys_a_value_propositio_1.html Value is at the heart of what every customer wants to buy. If you can't position yourself and your company as a source of value, executives will not want to talk to you. If you can't clarify what that value is to a specific executive, those executives will not take any action and most certainly won't buy. The issue of value is inescapable. Every conversation with an executive, or anyone within the customer's organization for that matter who has any power or influence, must include a conversation about value. The irony is that the more we try to differentiate ourselves by portraying our value through a value proposition, which we present to our prospects, the more we all sound the same.

So the question most of us ask ourselves is how do we fix that? How do we set ourselves apart? First, we take the focus off ourselves and the value we are capable of providing. By the way, that's all a value proposition is -- a description of the value we are capable of providing. A capability is simply not relevant unless and until the executive we wish to engage has a requirement for that value. Take for example the drug Lipitor. Lipitor has the capability to reduce cholesterol levels. It delivers value if you have high cholesterol levels. If you have low cholesterol levels, Lipitor has no value to you.

The problem is that the way most salespeople present their value can often be described as a "value assault." Most salespeople present their value proposition as, "This is the value we provide, this is what it has enabled customers like you to do and you will be able to do the same if..." It is definitely seen as "selling" and therefore, whatever value you suggest it is, the customer is likely to reduce its value because they will assume it is likely exaggerated to make the sale. The second problem is that it leaves it up to the customer to translate that value into elements relevant to their business and their job responsibilities.

Creating value with customers is like helping them work a connect-the-dots puzzle about their business. As we've seen, because of the complexity of problems and solutions today, the value of our solution is rarely obvious to the customer. Instead, they more likely see random elements of solutions, better known as value propositions, and random problems in their business or their job. They have great difficulty connecting those elements together. Additionally, the more complex your solution is, the less likely the customer will take the time to do that translation on their own, and the more likely you'll be sent away.

What is the alternative? How do we help customers "get it?"

The alternative is not to present your value proposition, but rather create and position a "Value Assumption." To explain, the Value Assumption is developed by the sales person, it is specific to a particular customer or prospective customer and it is used as a premise to perform a deeper diagnosis. It becomes a hypothesis regarding the value that may be relevant to this specific prospect and this specific individual. We create value assumptions by focusing on the specific executive we wish to engage and by asking ourselves these questions: "What would this executive be experiencing in the absence of our value? What are the physical signs they would be seeing in their business if they didn't have what our value could provide? What would their direct reports be seeing and what would they see in their measurement and management reporting systems?" We need to make the connections with them and then we can work with their team to make the translation into their business.

This approach of focusing on the value assumption versus presenting a value proposition will begin to differentiate you and your approach from the approach taken by the majority of sales people. By positioning your value as a capability and suggesting it could be explored to be proved or disproved, you are positioning yourself and your company as a credible resource and a professional that would be good to work with. You'll begin to interact on a mutually beneficial exploration of the issues the customer is experiencing and the value you could bring. The likely outcome is a long-term and mutually profitable relationship.

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Tue, 02 Sep 2008 17:52:44 -0400 Jeff Thullhttp://www.inc.com/sales/2008/09/nobody_buys_a_value_propositio_1.html
Breaking Away with Exceptional Credibility http://www.inc.com/sales/2008/08/breaking_away_with_exceptional_1.html The more credibility we earn, the more exceptional our sales success will be, but it is becoming increasingly difficult to earn exceptional credibility. In my second book, The Prime Solution, I described how the requirements of our customers have steadily grown over the past decades. As customer requirements have expanded, so have the demands on sales professionals. Our ability to understand and meet those demands determines the degree of credibility that our customers will assign to us.

We all know how important credibility is. When I ask seminar audiences "What is credibility?" the answers will include, our product knowledge, our brand, our history of success, our financial strength, our customer testimonials, our dedication to service, our reputation, etc. All of these are important answers and valid contributors to our credibility. The next questions I'll ask are "How do we typically convey that credibility to our potential customers? How do we get this message across to the customer?" Inevitably, the answers are, "we show them'" or "we tell them'" or "we give them a presentation." Then I ask a question that is quite sobering, "How different is your 'credibility story' from the credibility story of your next two best competitors?" The response is usually, "Not very different at all."

In essence, the credibility story is most often focused on the company selling, but that is a flawed strategy. Please don't misunderstand what I'm trying to say. This is important information, these are important attributes, but I would like to suggest that they comprise what we have termed "expected credibility." They aren't unique or impressive. They are expected. The customer might question it if they didn't exist, but they are not impressed by the fact that they do exist. In fact, after a customer has heard three "expected credibility" stories, they are more than ever convinced that all three companies will likely be able to do the job and the customer will start to settle in on "price" as the main decision factor.

Expected credibility is what you know about your business and your products and services. It is a minimal level of credibility, that is, the minimum level at which customers expect salespeople to operate, and the majority of salespeople are meeting the standard of expected credibility. However, expected credibility is only the table stakes in the world of sales. With expected credibility, we have earned the right to engage the customer, but our chances of winning the sale are determined by the luck of the draw. If we are unfortunate enough to be competing against a more credible player, our chances of winning the sale start dropping precipitously.

If you want to win your share -- or, let's be ambitious, "more" than your share -- of the complex sales you undertake, you need to step out of the crowd and execute at the exceptional level. You need to be able to operate well above the standard for expected credibility. Sales professionals who win an extraordinary number of sales are almost invariably operating at a higher level of customer credibility. They are themselves an added value in their customers' eyes and have earned exceptional credibility.

In short, exceptional credibility is what you know and have come to understand about your customer's business, their job responsibilities and their performance measures. You know you have established exceptional credibility when an individual sitting across the table from you says to themselves, or better yet, to you: "I believe you understand what we are facing here and what we need to accomplish. I believe you will be able to help us get there."

There are two main steps to achieving exceptional credibility. The first is that you create the mindset, the proper stance, that your sales approach is focused on the customer's business, not yours. You must see your sales process as a business decision-making process driven by the value the customer will obtain from their investment.

The second key ingredient is managing the proper diagnosis of the business problem to be solved. The diagnostic questioning process is critical. Think about all the questions a customer should be asking themselves that would help them to clearly understand their problem and what it's costing them if they don't change. These are the questions, when answered that will enable them to make a quality decision. When your customers hear these questions, they will recognize how helpful and important the answers to the questions will be. They will recognize that they did not think of these questions, and will start seeing you as a valuable advisor.

Exceptional salespeople create their own luck through a combination of opportunity and preparation. It will payoff! Customers will likely recognize that your competitors are not providing this type of guidance and obviously are not as experienced as you are. They will see you as exceptionally credible and you will be rewarded with exceptional success.

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Fri, 01 Aug 2008 14:19:35 -0400 Jeff Thullhttp://www.inc.com/sales/2008/08/breaking_away_with_exceptional_1.html
How Can Your Purchasing Department Better Balance Cost and Value? http://www.inc.com/sales/2008/07/how_can_your_purchasing_depart.html In the current economic climate, rising costs are affecting virtually every industry. As companies struggle to hold the line on their overall costs of goods sold, purchasing departments are under greater pressure than ever to focus on price in selecting vendors and contracting for products and services. While there may be some consideration of quality, availability, and overall value, price weighs ever more heavily in the decision process.

As a result, companies are in danger of falling into the "penny wise and pound foolish" trap -- saving dollars up front, but incurring more cost down the line. Inexpensive products can offer significantly less value, regardless of immediate cost benefits. When any product is selected primarily on price, there are high risks of passing inferior performance and quality issues on to the buyer's customers, resulting in erosion of confidence in a company's brand. These and other problems can ultimately cost far more than the dollars originally saved at the time of purchase.

There are two major concerns with certain purchasing department practices. First, purchasing departments may be given strong incentives to focus on dollars in terms of cost, a mandate that often means no one is thinking in terms of dollars of value. The other problem, related to the first, is that purchasing may operate according to obsolete and counter-productive rules. Examples of the latter include the frequent requirement that a specified number of bids must be considered, or that vendors should be pitted against each other with the sole purpose of driving down the price. These tactics tend to work, from the perspective of reducing prices in vendors' proposals. The effect of this "level playing field," however, is that solutions offering the highest value are systematically eliminated from consideration.

So how can a company ensure that the purchasing department is not undermining profitability through an overzealous focus on price over value? The following guidelines can help make sure purchasing is helping the other business units by buying goods and solutions that meet requirements for value as well as cost savings.

Align procurement incentives with other functional interests.
To begin with, purchasing departments should not make unilateral decisions about complex solutions. Instead, purchasing should orchestrate a quality decision process that ensures a complete value impact is reviewed with the departments who will be living with the outcome of the purchasing decision. Buy complex solutions differently from raw materials.
In the case of purchasing common commodities such as sand or concrete, it is usually safe to select the least expensive option from among competing bids. But when quality and capability vary significantly, that same process loses effectiveness and begins to impinge on the opportunity to obtain value. This is especially true when vendor support is a critical component of successful implementation. Avoid the "five bids" charade.
Requiring a certain number of bids may lower the price but it will likely lower value at the same time. Many companies insist on multiple bids even when they already know which vendor they want to use. By forcing their preferred vendor to compete with others, they can indeed often drive the price downward. This "victory" may backfire, however, in the form of reduced capabilities, poorer service, lower quality, and other issues that come back to haunt the departments forced to deal with the consequences. This bidding process can also delay projects, squandering time and money. Don't try to "fix" vendor relationships that aren't broken.
Companies should hang on tight to relationships with vendors who understand their business, are well equipped to do the job, and have an established track record of success. Bidding out a project to a competitor who might be a few dollars cheaper, or asking an incumbent vendor to lower the price, may result in the loss of an important business partner. Or it may have the consequence of diluting the very value that has been crucial to past successes. Certainly, many vendors could do a better job of helping customers understand the value their solutions provide. A purchasing agent can hardly be blamed for buying on price if that's how the sales representative is selling. The key to purchasing success, however, is for companies and vendors to work together to discover where processes and products are falling short and design solutions that optimize business performance. This approach makes purchasing a strategic resource while partnering with vendors and suppliers for true competitive advantage.]]>
Tue, 01 Jul 2008 06:00:01 -0400 Jeff Thullhttp://www.inc.com/sales/2008/07/how_can_your_purchasing_depart.html
Don't be a Victim of Commoditization http://www.inc.com/sales/2008/05/dont_be_a_victim_of_commoditiz.html Understanding the three reasons for commoditization will help you provide value to your customers.

Company executives and their teams are struggling with differentiating their complex business solutions in this highly competitive and complex market. Simultaneously, customers are putting a squeeze on margins by driving buying decisions down to the lowest common denominator -- price.

How is this happening? Why is this trend increasing at an alarming rate? How can you hold your price and get paid for the value you create?

Let's start by taking a hard look at the three driving forces of commoditization'advances in technology, difficulty connecting value to the customers' business drivers, and pressure on buyers to make decisions when the problem to be solved, and solutions offered, are not clearly understood.

Companies are constantly seeking differentiation by upping the ante in technological advances; but this can be problematic if that differentiation exceeds the needs and understanding of your customers. If your customers can't comprehend or measure your value, they will respond by ignoring what could be very valuable to them and focusing on what they do understand'price, and there goes the downward spiral to commoditization.

As technology advances, so does the difficulty for buyers to make quality business decisions. Can your customer truly understand and differentiate the unique value of your solution and how it impacts their business? Even more critically, do they understand the cost of their problem in the absence of your solution?

So, if you truly have a unique and valuable solution, how can you get paid for the value you create?

First, get your mindset straight. Understand that we are clearly in a new era of selling. Today's market requires that organizations transform their approach from "purveyors of products" to "diagnostic business advisors" -- a role you will want to emulate.

Second, help customers connect your value to their business drivers. Customers are also expecting suppliers to add value at much deeper levels than what was traditionally delivered to their organizations. Historically, we presented our products and customers connected the value to their business. Today, successful sales professionals are actively guiding those connections.

Look at how the absence of your value is affecting each individual involved in, or influencing, the decision to buy. With each individual, identify and quantify the impact on their business, or job responsibility, in financial terms. As you bring this level of clarity to your customer, you will have established the foundation of a valuable relationship.

Third, develop skills to communicate at a business acumen and strategic level. The customer's desire is to build tighter bonds with fewer vendors. They also want to work with professionals that they consider "contributors" to their success. Both are an advantage to skilled professionals and as a contributor, you will gain access to key individuals and be able to build your business case.

The majority of decisions -- quality decisions -- are the result of a consensus-building process. It is your responsibility to connect your company's unique value to each individual in the context of his or her job responsibilities and their personal agendas. By the time you have had the right conversations with the right people, you will have differentiated yourself and your solution's value, and it is unlikely that it can be challenged by a competitor.

We tend not to see the world through our customers' eyes, but when we do, we find that they face many problems. Their business environments are more competitive and technological advances are radically altering their industries and markets. There is no margin for error, but the pressure to succeed is stronger than before.

The reality is'our customers need help. They need help understanding the problems they face; they need help designing the optimal solutions to those problems; and they need help buying, implementing, and measuring the value of those solutions. It is your responsibility to advise your customers, give them a process to make quality decisions, and help them succeed. Put a stop to commoditization, be a contributor to your customers' success, and get paid for the value you create.

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Thu, 01 May 2008 13:51:52 -0400 Jeff Thullhttp://www.inc.com/sales/2008/05/dont_be_a_victim_of_commoditiz.html
Standing Out in Today's Complex Market http://www.inc.com/sales/2008/04/standing_out_in_todays_complex.html What obstacles do salespeople around the world face? The answer may surprise you.

I've just completed a four week, eight country tour that included the US, Europe, Southeast Asia and the Middle East. Set aside the critical cultural nuances for a moment and you will find that sales professionals around the world are asking similar questions regarding how to become more successful in this complex and global market.

1. What are the most important skills a sales professional needs in order to succeed in today's competitive environment?

There are critical components that form a foundation for learning and performance for all professionals. They are systems, skills and disciplines. A system is a set process or organized procedure that leads to a predictable result. The skill is in the individual's knowledge and ability to execute the system. Discipline is having the emotional or mental stamina, perhaps even the courage, required to achieve the highest standards of the profession. In short, these three areas represent knowing what to do, how to do it, and having the emotional strength to actually carry it out at a quality level.

That being said, adequately researching and preparing your position before you engage with a new customer or a new opportunity is an important stage for top performers. Organizing a business case for customers gives sales professionals the ability to diagnose the customer's real situation in a manner that brings awareness, clarity and cost ownership of the problem they are experiencing, or the opportunity they are missing. The key skill required to accomplish this is in the ability to help the customer quantify the financial impact of the situation. "How much is it costing them not to have what you are about to propose?" With a cost of the problem established, the customer will have a clear incentive to take action and change their situation. This is a collaboration process with the customer to "co-design" or "co-create" the solution. It helps them gain pride of authorship and gives them the confidence to invest.

Ultimately, the key to success is through the interpersonal communication and relationship skills to manage this process. It enables professionals to interact in a way that builds mutual respect, trust and success.

2. How can I stand out as unique when the buyer treats us all the same?

Differentiation falls under the discipline component, the mental and emotional stamina I mentioned earlier'the stance we take with respect to our customers. Success comes as a result of helping our customers achieve their success. Top professionals approach their customers thinking, "How can I help them succeed?" rather than "What can I sell them?" They think like a business person rather than the traditional salesperson and manage a process "with" the customer rather than selling "to" the customer. Customers are unaccustomed to being treated in this manner and will take notice when someone has their best interest in mind instead of their personal agenda.

3. How can a salesperson convince a stalled customer to make a decision and move forward?

Part of not thinking like a salesperson and thinking like a business person includes stopping yourself from thinking that you have to present, persuade and convince. Customers today have complex decisions to make and many do not have the level of information needed to make sound decisions about something they have little experience with. Presenting solutions to problems the customer doesn't understand, or even knows exist, is fruitless. The true business advisor or diagnostician is looking to guide the customer through a mutual diagnosis of issues to be investigated or problems to be solved. As a result, the customer uncovers the evidence through the guidance of the sales professional and if their problem is significant enough, is ready to fix it and move forward.

Success as a professional is a direct result of providing success for your customers through a very well organized and defined communication process. It is important that you develop the skills and disciplines that ensure you can carry out your responsibilities in a professional and quality fashion.

It is an exciting time for sales professionals. High performers are in great demand and in short supply. I encourage you to test out these perspectives in your client interactions and experience the difference it makes in achieving great success.

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Mon, 14 Apr 2008 13:46:40 -0400 Jeff Thullhttp://www.inc.com/sales/2008/04/standing_out_in_todays_complex.html
Becoming an Exceptional Resource for Your Clients http://www.inc.com/sales/2008/03/becoming_an_exceptional_resour.html When customers see you as contributing to their business's success, you're rewarded with greater loyalty.

Exceptional sales professionals recognize that the traditional strategies of differentiation through product and price are not nearly as effective as building a solid base of customers who look upon the seller, their solution provider, as contributors to their business.

Customers deal with many salespeople and are demanding a higher level of expertise from the individuals they choose to work more closely with. They are giving greater loyalty to those professionals who most adequately support their business objectives, those that become a source of business advantage. We refer to that unique group of professionals as P.R.I.M.E. Resources.

What does it mean to become a P.R.I.M.E. resource?

P.R.I.M.E. is an acronym we use to describe achieving a level of relationship where your customers see you as a key resource and a contributor to their customers' businesses.

P is for Primary. According to Webster's dictionary, primary means, "First in time, rank or importance." It suggests:

1. You become pre-eminent in your customer's mind. You are the first person who comes to the customer's mind when a problem or question in your area of expertise arises.

2. You outrank all your competitors -- you become the competition everyone else tries to displace.

3. You are vital to the success of your customers' operations.

R is for Resource, a source of help or supply. You become an extension of your customer's organization. You enhance their capabilities to understand, anticipate and solve problems, and build their business. You and your team bring the ability to critically diagnose the situation, as well as gather the knowledge and ideas to help them create solutions that they wouldn't have thought of on their own.

I is for Involved. It means you will carry out a long-term, mutually beneficial relationship based on trust and respect. When you are involved, you have your customers' best interests at heart. That means:

1. You sincerely care about their concerns.

2. You know that what is best for your customer is ultimately best for you and your company.

3. Quality business is not a hit-and-run proposition. You look for every opportunity to strengthen the relationship, keeping it at a level of satisfaction that neither you nor your customer will be looking for ways to get out of it.

M is for Managing. It means, "To succeed in accomplishing; to have charge of or responsibility for."

Accomplishing implies the successful completion of a plan.

A P.R.I.M.E. resource helps people understand their situation, their risks and their opportunities, then collaborates with them to determine how to achieve the required results. They do it in such a professional, credible and non-threatening way that the customers require them to execute the solution.

E is for Expectations. Customers will look upon you as a P.R.I.M.E. resource when you consistently manage their expectations based on the issue that has been diagnosed. It is critical to expand the customer's understanding of the problem, the consequences and costs associated with it, and the financial impact. Co-create the expectations of the solution, what it will be like when the problem is resolved and finally help determine the decision criteria that will enable the customer to select the best solution.

How to Become a P.R.I.M.E. Resource

This involves building strong relationships with your customers. Here are a few pointers on how to do it:

1. Build a reputation for excellence based on trust and dedication.

2. Be a scholar. Keep up with market conditions, new products or services, technical standards, industry trends, advertisements and personnel changes.

3. Use a conscientious, professional approach to your customer's critical issues.

4. Polish your professional sales and problem-solving skills continually.

5. Know your customer's world -- their associations, their industry, their marketplace, their customers.

6. Be the customer's advocate. Work to smooth all problems your internal systems may create for your customers.

7. Know what the competition is doing. Report back to your company any information you gain.

8. Remember that you are just as important as the product or service your company offers.

As you become a P.R.I.M.E. resource, you will find that you are a critical contributor to your customer's growth and financial health. Being a P.R.I.M.E. resource is a reciprocal relationship. Both you and your customer will prosper.

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Mon, 24 Mar 2008 13:42:47 -0400 Jeff Thullhttp://www.inc.com/sales/2008/03/becoming_an_exceptional_resour.html
Three Keys to a Successful New Year http://www.inc.com/sales/2008/01/three_keys_to_a_successful_new.html The beginning of the new year is a great time to re-evaluate what worked well last year, and what didn't, and what you'll need to do to face the challenges ahead of you.

In the past year we have seen businesses undergo dramatic changes in their attempts to meet customer requirements and serve their markets more professionally and successfully. Competitive pressure is relentless, especially when it's becoming more obscure as to whom the competitor actually is and how the customer is evaluating their choices.

The beginning of a new year is a great time to pause and re-evaluate what has worked well and what has not, what's evolving and what we need to do differently to meet the challenges in front of us. As you examine your own business strategy, I want to share with you the top three challenges that I have observed organizations struggling with, and give you some ideas on how to reposition yourself and win more business in 2008.

1. Customers don't fully understand their problem and what to do about it.
The complexity of today's business -- advancements in technology, evolving global markets, unanticipated competition, creation of robust and more complex solutions, etc., make it nearly impossible for the customer to be expert in all areas of business and be able to recognize the best opportunities for improvement.

Customers need business advisors to help them sort it all out and it's important that they see you and your team in that role.

Like an experienced doctor who continually diagnoses for problems and recognizes symptoms, you see the issues your solutions address far more frequently than your customers do. You know the business drivers that your solutions impact and the symptoms that verify that your customer's performance is at risk. You know what to look for and how to help. To determine if those symptoms exist, develop a diagnostic approach to clarify the situation with your customer. Don't let the customer self diagnose when they don't clearly understand the problem to be solved. Leverage your experience and become an advisor who helps your customer optimize their performance.

2. Customers are bombarded with options that are difficult to comprehend.
As problems to be solved become more complex, so do the solutions, and there are an increasing number of competitors offering them. To differentiate solutions, sellers tend to pile on features and compare themselves to their strongest competitor.

I'll share an example from our business. We will soon purchase a new phone system. It's interesting to hear that two of the three competitors described their solution as equal in features and quality to the "#1" supplier, and yet they offered 10-15% less in cost. From their position they're emphasizing the value of their product and not its impact on our business and the resulting impact on the value we deliver to our customers. That's a serious gap in their approach to solving our problem.

On the other hand, top sales professionals walk into an opportunity with higher levels of experience than their customers and focus on bringing clarity to the problem to be solved and the cost impact on their business in absence of the products and services available. They consider an entire industry, come into contact with a full range of operational practices, and become experts in their customer's business. It is this advanced perspective of the issues facing the customer, combined with their customer's expertise that enables the sales professional to help their customers make informed, high-quality decisions. They help their customers connect business objectives to the capabilities of their valuable solutions and do not cloud the issue with irrelevant features.

3. Customers fear the risks associated with change.
A fundamental element of behavior is that people will change if the pain of staying the same is greater than the pain of change. As a result, customers tend to avoid change and the risks associated with it. They know that making changes to the organization's operations, systems or processes will be difficult, lengthy, and resource consuming. Why would they personally take on that pressure?

If you can help your customers recognize the symptoms of their situation and clarify the risks they are facing, you can then help them understand that a decision to change is a better option. Your role as business advisor is to help them calculate what it's costing them not to have your solution and bring clarity to that decision. You will also want to position yourself and your organization as a vital resource that will guide and support their change process, thereby assuring they will be successful in making the changes required to implement your solution.

Ensure your customer's success, and you will also ensure your successful future. It's no longer about selling solutions; it's clearly about helping customers create more value in their businesses as a result of their relationships with you.

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Sun, 13 Jan 2008 13:39:53 -0500 Jeff Thullhttp://www.inc.com/sales/2008/01/three_keys_to_a_successful_new.html
Set Yourself Apart http://www.inc.com/sales/2007/11/set_yourself_apart.html You gain more credibility with the questions you ask than with the stories you tell.

I had the pleasure of joining my partner today on a conference call with a prospective customer. This is about the fourth such call she has had with this customer. It is a substantial opportunity for us, and of course in an opportunity of this size, the customer is speaking with a group of potential suppliers. The initial group was large -- 12 great companies looking for an edge -- but it always narrows down to the preferred choice. In this case it was Prime Resource Group.

Today I heard this customer say those critical words, "Quite frankly, you guys are asking a lot of questions that I haven't heard from the others. You've helped me think this through and, in fact, you have really caused me to change my thinking on my entire approach."

Let me share with you one of my "Key Thoughts": You will gain more credibility through the questions you ask than the stories you tell! It's one of those simple nuggets of information that, when applied, can make a great impact on your business.

As unique as you and I might think our solution is, it may look very much the same to a pre-sale customer when they first look in on us. (Notice how I have been using the word customer. We refer to all people we are in discussions with as customers -- if we are talking to them, we expect to be delivering value pre- and post-sale.) We all want to stand out and we all want to help our customer understand we can deliver the highest value, and of course be the best choice. The problem is, most potential customers simply don't recognize that value or even believe it if it's presented to them. How most salespeople set out to accomplish that differentiation is by "presenting" and "telling" their stories. The problem is, all the stories sound the same. They not only don't set us apart, they actually reinforce to the customer that we are all the same.

In our customer example, we had reached Level 4 on the communication value scale, but let's look at the levels and watch the progression toward a very quality engagement.

The first level on the scale actually creates "Negative Value." This occurs when you are speaking with a customer; the conversation is pleasant, perhaps you're talking about business, sports, family, etc. The time flies fast, the conversation ends, and the next appointment is made. Meanwhile, the customer realizes he has just lost 40 minutes in a very busy day. What are the chances that this customer will be looking forward to the next "visit?"

Level 2 is referred to as "Confirming Value." In this conversation the customer is investigating something, or has some ideas about what they would like to do regarding their situation or action plans they should be making. During the conversation we are able to confirm or reinforce their ideas. We provide an "outside opinion" that assures them that they are on the right path. This certainly provides value.

Level 3 takes us to the "Additive Value" level of communications. This customer is searching for answers. They know what they are looking for and might even know where to find it. When you enter into the conversation and provide them with the information they require, you have helped them get it with less time and effort. This represents a valuable conversation and one that will place you high on this customer's list of valued resources.

I believe the ultimate level of value a conversation can bring is the fourth level, "Innovative Value." Level 4 is about asking questions that cause the customer to think about his situation in a different way. This causes the customer to connect or associate elements of his business in a way he hasn't before. This is the level of true collaboration. You help your customer see the problem or challenge in a new light. You bring welcomed clarity to complex scenarios and instill confidence in your customer that you really understand his situation and objectives, and that you and your solution will be the best path to his success.

The great thing about Level 4 is that the customer will tell you when you've reached it. You will hear your customer say things like: "That's a very good question," or "I haven't thought about that before," or "I would never have connected those elements." When you are at Level 4, you are bringing your customer solutions he knows he would not have thought of himself and you become the preferred partner. It becomes very apparent that your competitors are not communicating at this level and you have clearly set yourself apart.

Starting today, make achieving "Level 4" a goal of every conversation. You'll be rewarded with your customer's respect and their business.

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Sat, 17 Nov 2007 11:31:29 -0500 Jeff Thullhttp://www.inc.com/sales/2007/11/set_yourself_apart.html
What To Do When Your Customers Yelp -- Part One http://www.inc.com/sales/2007/10/what_to_do_when_your_customers.html What are your customers saying about you online? If you're not paying attention, your reputation could be suffering.

Has your company been yelped? Yelp.com and other sites like it capture consumer reviews about firms of all kinds -- from painters and pet sitters to restaurants and railways.

Yelp affects business. A month before I moved across town, I hired a moving company -- a name you'd recognize. I'd used it in the past with neutral results, but not bad enough to look elsewhere. About two weeks before the move, I searched online for its number so I could call to confirm my reservation. I found the number, and guess what else popped up in the first few Google search results? Negative yelp, from bad to worse.

I rang the company, mostly for reassurance that it had addressed the problems that led to the issues I read about online. Not only did I NOT get reassurance, but the phone operator was so rude that I cancelled my reservation right then. I wound up using a regional firm with abundant customer kudos and a mostly positive yelp.

The first movers lost prospective revenue based on its online reputation, which was reinforced by the way it handled customer concerns and ran its business. The entire experience got me thinking -- how do companies respond to customer yelp? What is inherently different about companies with overwhelmingly negative versus positive yelp? Are companies with positive yelp better-run companies?

A short experiment shed light on the matter; I'll share the results and insights over the next several months. One thing I quickly concluded -- companies fall into one of three categories based on how they react to customer yelp:

* The Blind are unaware of their online reputation or don't care.
* Plumbers stay tuned to what customers say online and make one-off defense attempts when comments are really bad, but most of the time they do nothing.
* Gold Diggers treat yelp as the proverbial canary in the market coal mine; they drive business with the goal of positive yelp.

I know you care about what your customers say. I know you want to have a positive reputation that helps to grow your business. So let's talk about how you can strengthen your reputation.

1. Make it someone's ritual. Negative word of mouth deteriorates your online presence and erodes your brand. What you can't see could stall growth. Someone in your company should regularly review online destinations and assess what your reputation looks like out there -- who's saying what, where and why?
2. Make counter-yelping a CEO priority. I met the president of a local floral company that suffered a public setback two years ago. She now spends two to four hours every week responding to online customer feedback and working specific issues internally.
3. Don't point fingers. It's easy to get defensive and assign blame when something goes wrong and gets out. Seek first to understand the situation. Talk to positive yelpers as well and bring the commentary into the company with an eye on solutions.
4. Start situational, end abstract. When uncovering the "whys" of negative customer experiences, find out what went smoothly and what broke down within your company. After several of its customers were under-serviced, one janitorial company said this: "We will no longer submit rush bids in competitive situations if it means we compromise our process for carefully evaluating an opportunity and understanding how the customer defines success."
5. Update team values. Make sure employees know that a positive customer experience has the power to drive revenues and their compensation. Train employees to manage through and escalate tough customer issues before they turn into online fodder.

Read part two to find out what the leaders of companies with overwhelming positive yelp know that others don't.

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Thu, 11 Oct 2007 13:18:35 -0400 Promise Phelonhttp://www.inc.com/sales/2007/10/what_to_do_when_your_customers.html