On Building A Sales Organization – 4 August 26, 2013Posted by David Dirks in Sales Compensation, Sales Management, Sales Metrics, Sales Strategy/Tactics, Sales Tactics.
Tags: David Dirks, dirks on strategy, sales, sales coaching, sales compensation, sales organizations, sales support, Sales Tactics, sales training
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Once you figure out the kinds of sales team you need and how to compensation them to higher performance, you’ll need to ensure you arm them with the resources they’ll need to succeed.
First is sales collateral – those print and digital pieces that can help the sales process along. That said, I’ve never seen or heard of any sales collateral that sells all by itself. Create sales collateral that support the sales process. The principle of “less is more” applies here. And makes sure that your sales collateral looks professional and not like it was put together on the cheap.
Then there’s sales training. This isn’t the place for determining what kinds of sales training your burgeoning team of one to more sales people. What I can tell you is that the right balance of sales training and coaching on a regular & consistent basis is worth the investment. Most small businesses provide little to none sales training except perhaps for some training at the beginning of their employment.
Sales training is like physical exercise. It should be challenging and slow build sales “muscle” – those skills that become part of their sales behaviors after a period of training and reinforcement.
Sales coaching is another support mechanism that’s necessary for a bare-bones but effective sales organization. The challenge is that most small business owners don’t often have the sales background that would enable them to provide sales coaching. What to do? If you don’t have a sales management background here are three key points to cover in each of your individual sales coaching sessions:
- How close are they to meeting their current sales goals? If not close, why and what can be done to improve performance? If they are on track, what are they doing right?
- What are prospects & customers saying about our products and services? This is a good time to take the “pulse” on what the street is doing or saying about the kinds of products and/or services your provide.
- Set goals for the next session. Success is incremental and so is the progress needed to get there.
Sales professional need regular & consistent support in the field. Make sure you are able to provide it before you commit to building a sales force.
On Building A Sales Organization – 2 July 24, 2013Posted by David Dirks in Building A Sales Organization, Sales Management, Sales Strategy/Tactics.
Tags: sales, sales growth, sales management, sales organization, sales strategy
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So you want to build your sales organization…make it strong…faster…better…at finding and creating new business for you? No problem – as long as you recognize, acknowledge and are able to execute with the ability meet several criteria. I’ll deal with the first in this post: targeting, hiring and training the right sales people.
Here’s how I laid it out in the first post on this subject:
Willing to either hire experienced sales talent or willing to invest in the sales training required to help entry-level sales personnel become productive in a reasonably short time period. Doesn’t much matter how great your sales opportunity is if you aren’t willing to either hire successful, experienced talent or hire the best & brightest entry-level talent – and then be willing to support them with the best-in-class sales and product training you can afford.
- Develop a list of job responsibilities – the tasks they would need to implement day-in-day out to accomplish their sales mission. Then you need to articulate exactly what they are accountable for in the sales job. Making sure you have thought through exactly what you need this person to do and what they are being held accountable isn’t as obvious as it sounds.
Example of a job responsibility:
Research and target potential prospects that fit our customer profile within the sales territory assigned.
Example of a job accountability:
Meets monthly, quarterly and annual sales targets for specific product categories as assigned.
Job responsibilities lead to the fulfillment of job accountabilities – those measurable end results that count. They add real value to the business…in sales and revenues.
Now let’s talk about the minimum amount of sales experience you need. You may only need a college graduate – fresh from the ceremony – for the kind of business and industry you’re in. Or you may need someone with specific kinds of industry experience.
For example, a John Deere dealer will most definitely need a sales staff that understands agriculture, farming and the machinery that makes it all work. A company that sells specialty software to banks and other financial institutions will want someone with banking industry experience that relates well to their product line.
Be clear about the minimum amount of bonafide sales and industry experience you need for their success and yours.
- Well before you think of placing an ad (based on your well thought-out job description), think through what kind of initial and follow-on training will be necessary to give your new sales hire the best chance of a strong start.
Setting anyone…experienced or not…on their own without much attention to the amount of initial product, service and sales training they’ll need to become productive, is not effective. The first 30 to 60 days of any sales persons life in your business is critical. So it’s worth the time and effort it takes to prepare and initial your sales hire with the right amount of product and sales training that will boost their initial productivity.
Target the right hire. Train them well. Watch them grow.
On Building A Sales Organization – 1 July 20, 2013Posted by David Dirks in Building A Sales Organization, Sales Management, Sales Strategy/Tactics.
Tags: business strategy, increasing revenues, sales, sales growth, sales management, sales strategy
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Note: This is the first in an ongoing series on building an effective sales organization/team for a small business.
There comes a time that some successful small businesses find themselves in. It’s the time to consider the need to build more revenue by engineering a sales organization. What does a vibrant, dynamic and proactive sales force give you? How about the ability to scale your revenues by adding more boots on the ground? Now I’m NOT talking about going from 1 or 2 sales people to 20 overnight. The first step is recognizing that the only way you can scale revenues in a northerly direction is by building a sales organization starting from ground zero.
But let me save you the money, time and resources it takes to build a sales organization and culture in your small business. It’s simple from my experience. If you are willing to do ALL of the following, you have the right stuff to really create a viable and revenue contributing sales organization whether with 1 or 20 people:
- Willing to either hire experienced sales talent or willing to invest in the sales training required to help entry-level sales personnel become productive in a reasonably short time period. Doesn’t much matter how great your sales opportunity is if you aren’t willing to either hire successful, experienced talent or hire the best & brightest entry-level talent – and then be willing to support them with the best-in-class sales and product training you can afford.
- Willing to create a sales compensation plan that truly rewards people for their efforts but doesn’t leave them wondering how they are going to eat while they ramp up & beyond. Whether you hire experienced or entry-level sale people, be prepared to compensate them within the range of what is at least the standard for you industry. Going cheap on the compensation plan equals consistently high turnover. At best, you’ll be a good place for someone to get some training and experience before they go off and find a real sales organization to make a living off of.
- Willing to support your sales team with the resources they will need to get the job done. That includes providing them with professionally created sales collateral (brochures, catalogs, product info sheets, etc.) – and not material created by your niece or nephew who calls themselves a “graphic designer”. Sure, they’ll work on the cheap for you but more often than not, their work is substandard. Hire professionals with a bonafide track record.
So, if you’re truly committed to hiring quality, providing compensation that motivates and allows someone to earn a better than average living, and support them with the sales tools they’ll need to be successful – you can entertain building a real sales organization.
Betterment…Is A Strategy July 12, 2013Posted by David Dirks in business strategy, marketing, Marketing Buzz, Sales Strategy/Tactics, Sales Tactics.
Tags: business strategy, David Dirks, differentiation, market differentiation, market strategy, marketing, marketing strategy, sales strategy, small business strategy, strategy
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Why do people buy your products or services? Are they forced to buy them out of necessity? Do you have a monopoly? Probably not. But understanding why people buy – and it’s often not on price – is one key to business longevity.
If you sell products or services that can easily be obtained elsewhere, why should they buy from you? Think about yourself as a consumer for moment. When you make a purchase – are you making it to contribute to a life of mediocrity? No. We buy things because of one basic reason: betterment. I buy milk as a staple but the place I buy my milk is the place that offers me the best tasting milk at a fair price. I don’t buy my milk anywhere else because I feel the milk I buy there is better for me and my family.
Betterment. It’s a word…a noun to be exact. Websters defines it as “becoming better” and “an improvement that adds value to property…” Consider yourself “property” as a consumer.
As a business owner, your job is to convince the rest of the world (or at least your wedge of it) that your product or service offers someone a way to better themselves…their lives…their families. In a world where everything seems like a commodity, your edge is communicating how your company delivers on improving something in the life of your customer and, most importantly, your prospective customers. The success of your business model depends on it.
That said, if betterment was easy to define, everyone would be doing it but few are – just look around you. Most business owners are stuck on price or try to differentiate based on product or service features or benefits.
Apple has long been a master at parlaying great technology and wrapping it around betterment. Apple marketing and sales messaging is almost centrally focused on how Apple products enhance or better a life. And they are able to deliver on that promise to (if you are a pc head, you don’t get this but we’re ok with that).
If you follow a blog, perhaps this one – you have the expectation that spending time here will better your life or business in some way, shape or form. Otherwise, you wouldn’t spend you time on any blog that didn’t offer and deliver on that. The most popular blogs are followed because people get something out of them (entertainment value, economic value, etc.) that they can’t find easily elsewhere.
The first step on the path of a message of betterment is to translate what your product or service does to get a customer there. The destination is betterment. For example, a landscaper cuts the grass and makes the property look great each week. Where’s the betterment? How about the time it frees you from having to do it and spend more time on things you want to do instead – like spending more time with family. By making your property look like an estate, you feel that your property and the quality of your life are enhanced (as opposed to looking at tall grass and weeds).
In other words, a betterment message is thinking of your product beyond the standard features and benefits it offers. How does it translate – tangibly or intangibly – into a path to making some aspects of a customers life better?
The second step is making sure all of your marketing and sales messaging is zeroed in on the elements of betterment…clearly…concisely…and consistently. You have to be able to draw a picture in the mind of the customer so they don’t need an algorithm to figure out why your product is the one they should buy. They should “get” betterment.
Never easy to do but clearly worth the investment of time and effort to get there. Betterment – it’s a strategy.
The Rise of Lower-Priced Premium Quality May 21, 2013Posted by David Dirks in business strategy, Sales Strategy/Tactics, Strategy.
Tags: business strategy, market strategy, pricing strategy, product development, service development
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There is a very distinct trend in product and service development today that I feel has major implications for businesses of all sizes and industries. It’s the idea that cheaper or lower-priced products are being design and built with far better quality than just a few years or even a decade ago.
Take the Ford Fiesta for instance. This is an economy car (lower priced, low expectations) that’s been around for a while but like the Chevy Cavalier or the Ford Escort, suffered from the traditional “low-priced, low-quality” syndrome. The 2012 Ford Fiesta is now a highly rated car (edmunds.com) with a still-low sticker price. To get the Fiesta to this point, Ford had to make a commitment with itself to find ways of incorporating select design & engineering elements from their higher-priced, higher quality brands and drilling them into the designs of their economy car line. And they still had to provide this economy car at an economy price (starting at $13,000).
For another example, both Hyundai and Kia had to learn the same hard lesson across all of their product lines when they came to the U.S. market just a few decades ago. Back then, both were the laughing stock of the car industry when they tried to produce less expensive cars in all categories but fell short with major quality problems. What they learned is that while some American consumers want to spend as little as possible…they still want to be able to show value for whatever money they spend. Now both offer less-priced cars at higher than average quality. A market strategy win for both.
Remember the Yugo? The idea was great – a super cheap car for the masses. Sure, you could buy perhaps three or four Yugos for under $12k all in but there was one problem. The Yugo broke down almost immediately upon trying to leave the dealership. That was the end of Yugo.
Let’s take wines as another example. There was a time when there was very cheap wine (Boones Farm Strawberry wine ring a bell?) or very premium wines (at $20 or more a bottle). There was little in the way of a great Merlot or a Sirah at $8 a bottle. However, for more than a few years now, consumers have been treated to a very competitive industry that has figured out how to provide high quality wines in the $8 to $14 dollar range.
So what’s this mean for you and your business? Here some thoughts:
– Do you offer lower-priced, higher quality products or services to you customers? The key is figuring out 1) which features & associated benefits from your high quality offerings can be 2) engineered into your lower-priced offerings.
– Check your competitors. Who is offering a slightly upgraded product or service at a competitively lower price? If I’m your competitor and I know I have to have a line of basic, lesser priced products or services for those customers who want them, my best strategy for outflanking you is to offer a slightly improved version. One that has the kind of feature(s) and benefit(s) often only found in the premium lines.
Consumers today are far less tolerant of cheaply priced, lower quality products than ever. Rest assured that there is still quite some amount of junk being sold as a product or service – but therein lies your competitive opportunity. Seize it.
Driving Foot Traffic: Woolworth’s Style December 14, 2012Posted by David Dirks in Driving Store Traffic, Retailer Store Strategies, Sales Strategy/Tactics, Solving Business Problems, Strategy.
Tags: business strategy, David Dirks, David E Dirks, dirks on strategy, driving store traffic, market differentiation, sales strategy, store traffic
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It took the latest issue of Businessweek to remind of that oftentimes what is new is old. Case in point: the Woolworth’s food counter. Remember (for those of you who are old enough to) the days when you local Woolworth’s store had a lunch counter where great, cheap hamburgers, fries and a great milkshake where just across from those square product bins that checkered the store? Woolworth’s was a pioneer in creating a way to drive foot traffic with something that had nothing directly connected to the products they sold. By having a soda fountain style lunch counter, there sales per square foot where for a long time better than average.
The lunch counter couldn’t save Woolworth’s from going out of business after decades of success but the idea of driving traffic by providing food lives on. Nordstrom operates about 200 restaurants of one kind or another, including coffee bars. Barnes & Noble developed its coffee bar concept to drive traffic and create a reason for people to hang around the store longer. You’ll also notice that the coffee bar is a place where people meet to socialize. They know what Woolworth’s long understood: The longer they stay, the more chance they will buy.
So am I suggesting that brick & mortar store owner rig up the BBQ and serve up some burgers? Not exactly. What I am suggesting is that in the battle of driving foot traffic it might be that food or drink (coffee bar?) might just do the trick. As I always say, there is no magic bullet for creating foot traffic – only hard work and great execution wins the day.
What can you do to create ways for people to want to come to your store and stay a bit longer? Think about it.
Seth Godin Gets It September 27, 2012Posted by David Dirks in business strategy, Sales Strategy/Tactics, Strategy.
Tags: business growth, business strategy, David Dirks, marketing, revenue, revenue growth, sales, sales strategy, Seth Godin
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As I write this post, I’m sitting in a classroom here at the Googleplex in NYC. Just heard Seth Godin (sethgodin.com) and as he was speaking, I wrote down several things (in paraphrase) that stuck with me. This is all in the context of how we become more successful in our business to help other businesses succeed:
What story are you telling?
Are you trusted?
The more you specialize, the more likely you are to solve problems.
What is your brand promise?
Are you selling scarcity or abundance?
Get it? Think about it.
Potential Sale Undone January 26, 2011Posted by David Dirks in Sales Strategy/Tactics, Sales Tactics.
Tags: business strategy, David Dirks, dirks on strategy, sales growth, sales strategies, Sales Tactics
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It never ceases to amaze me how awful you’ll often find the sales service you can find from different businesses. Just recently I was contacting a very well known radio station that serves the NY metropolitan area. All I wanted to do is get some basic demographic composition of the stations listener. I called the number of the salesperson who I had in my files and left a detailed message of what I wanted and how. I made it as easy as possible for him to follow-up with me either by email or phone.
Do you know what? It took him more than a week to even acknowledge my call…and he wasn’t on vacation or out of the office for some other reason. He explained to me that he was very busy dealing with other sales prospects. He never apologized for taking more than a week to get back to me. He just thought I would buy the excuse.
I nevertheless let him banter on and it was then I realized that he didn’t bother to listen to what I wanted in my first message. So, I had to take the time to go over the specific items I needed. He rambled some more about needing some time to get to this request.
“I have some car dealers that I’ve lined up as prospects to finish. Can I get back to you with this information the following week?” he said. By now, I know this sales person simply stinks at the sales profession.
That told me that he didn’t really care about my business and only wanted to show me just how busy and successful he was. How could he get back to me when he had all those pressing car dealers to sell radio time to? Unbelievable right?
Here’s what that sales interaction told me:
1. His firm had not provided or did a very shoddy job of training him or he simply ignored what he learned.
2. It also told me that his manager had no clue just how awful he was. Perhaps he was already on written warning for being such a poor and clueless performer. That was possible buy not likely.
3. This sales person likely lost & cost his company tens of thousands of hard-to-earn revenue dollars every day, week, and month they employed him. It’s likely that his sales approach with me was the same ‘winning’ formula he applied across his selling opportunities.
By the way, he never sent me the data (which he only had to forward to me) the week he promised it. It was the week after that when I received his email with the data I requested. Three full weeks of valuable time (mine) lost because this person couldn’t sell his way out of a paper bag.
When I work with a client, we focus a serious amount of time on setting up a sales process and developing a sales culture that is responsive and attentive to prospect needs. Sales training built around best practices within the firm and industry is job #1. It’s an ongoing process that includes a regular dose of sales coaching that helps to shape and mold their sales performance.
Long-term sale success also includes building a process around performance management that helps us understand what’s really going when we turn them loose on their sales prospects.
I see too many companies short-change the sales selection, training, coaching, and performance management process. In this case, radio sales are not easy sales by any stretch of imagination. Radio ad sales are traditionally thought of as a place were a new sales person can ‘cut their teeth’ in the sales profession.
All the more reason to invest a little more time and resources in making sure they understand how you want your future (and current) customers to be treated.
Another Lost Opportunity for a Sale May 3, 2010Posted by David Dirks in business strategy, Keeping Your Customers, Sales Strategy/Tactics, Sales Tactics, Solving Business Problems.
Tags: customer service, sales strategy, service sales
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There are times when you realize that it’s the little things that count more often than not. That’s no less true when it comes to businesses who miss an opportunity to capture or in this case, recapture a sale. Let me explain. A few weeks ago, I made an appointment to take my car into the dealer for service that it really needed. For whatever reason, I was not able to make the appointment. Worse yet, I forgot to make a call to let them know that I wasn’t going to be there.
Here’s the service opportunity lost: no one from the dealer bothered to call me back to find out if I needed to reschedule. It’s happened before with the same dealership. The service manager there would find comfort in taking a page from the sales & service book of my dentist, who handles this transaction entirely differently.
If I make an appointment for dental work, the office calls me a few days before to remind me of my appointment. If I should miss it, you can count on the dental office calling me the next day to find out when I want to reschedule. Then I do and I go for the dental work. In effect, the dentist has recaptured a sales opportunity that would be otherwise lost if they didn’t bother to call me back.
The service manager at the car dealer is missing out on a lot of business over the course of a year just simply by NOT calling customers back if they miss an appointment. Recapturing that service sales should be just as disciplined a process as we see from the dental office.
If you’re in a service business that books customers by appointment, make sure your have a mechanism in place to recapture those of us who forget to make the first appointment. Don’t count on customers to call you back and reschedule.
Landing Big Sales with Tom Searcy: Podcast November 5, 2009Posted by David Dirks in Dirks On Strategy: Episodes, Sales Metrics, Sales Strategy/Tactics, Sales Tactics.
Tags: better sales results, big sales, David Dirks, dirks on strategy, large sales, sales management, sales strategies, Sales Tactics, Tom Searcy
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Listen to this podcast of a previous show on the Dirks On Strategy Radio show.
Tom Searcy, author or “RFPs Suck!” and co-author of “Whale Hunting,” is a national speaker, trusted authority on large account sales and founder of Hunt Big Sales, a fast growth sales consultancy and thought leadership organization. Searcy’s primary expertise is working directly with companies and sales teams throughout their big sales “hunts,” helping them to compete and win disproportionately large sales in highly competitive markets. His philosophy and process have resulted in over $3 billion in new sales for his company and its clients.
Before entering the national stage, Searcy headed four corporations, each of which he was able to take from annual revenues of less than $15 million to over $100 million–all before the age of 40. Since then, Searcy has helped more than 100 companies grow exponentially with his proven process for fast growth and company-wide transformation.
In his newest book RFPs Suck!, Searcy shares his rich understanding of the RFP process with companies across the board to help them conquer the RFP system once and for all to win corporate and government contracts.
Searcy’s first book with co-author Barbara Weaver Smith, “Whale Hunting: How to Land Big Deals and Transform Your Company,” was published by Wiley in 2008.
Contact him at: http://www.huntbigsales.com