Typically, when a salesperson doesn't win an account it's due to a few different factors; the prospect didn't have a compelling reason to make a change, the salesperson didn't do enough to uncover their capacity to invest, or the incumbent wasn't properly eliminated from the running.

In this article, we discuss the 3 Rules every successful salesperson must follow in order to eliminate stalls and objections during the sales process.

There is an age-old debate about which came first, the chicken or the egg. While that debate may never be solved, there is one “which comes first” situation that shouldn’t be up for debate and that is “see the solution first or know the budget first?” 

In my work with helping client’s develop their sales talent, I know there are two topics that get avoided on a regular basis, and both are to the detriment of the sales person. Those two “taboo topics” are discussing the incumbent and uncovering the budget. I will address the incumbent discussion in a later blog.

When I refer to the budget, I am referring to it in three categories commonly known as ‘TMR’—Time, Money, and Resources. What are they willing to commit, in the context of time, money and/or resources to make their problem go away? It is my experience that the stronger sales professionals don’t shy away from that discussion. They are successful because they follow these rules.

Rule 1#

Have the conversation. The 800 lbs. budget gorilla is in the room so talk about it. Don’t make it part of your opening conversation, but don’t ignore it either. If the need is big enough, and your solutions fixes it, most of the time, they will find the money.

Rule #2

Provide context. Regardless of the investment your prospect needs to make to fix their problem, it needs to be framed in the context of their pain and your ability to eliminate it. If the pain is minimal, then your solution won’t seem that great. We’ve had prospects tell us their problem is a “two-comma problem” meaning their cost of turnover was over $1 million dollars. That’s context.  Know their cost before you proceed

Rule #3

Don’t show your solution until you know the budget. It’s really that simple. If you have ever provided a solution to a prospect only to hear them say “that’s more than we intended to spend”, then you have an issue discussing the budget. Does it make sense to know their appetite for change, including budget, before you provide your solution? Here is where the strong sales professional is different. If the prospect doesn’t want to discuss budget, they know it can be for one of two reasons. They haven’t uncovered enough pain or the prospect simply wants to use you as a pencil sharpener for the competition. You don’t get paid to be a pencil sharpener so don’t become one.

In closing don’t be afraid of the conversation. In the history of sales, no one died from discussing budget. I doubt you will be the first.

In this article, we discuss and identify the three main reasons why salespeople get duped into believing a specific opportunity will close and why some deals are not worth chasing.

They are:

1. Weak pipeline
2. Failure to ask tough questions
3. Afraid to pull the plug

“Reality is merely an illusion.  Albeit a persistent one.” - Albert Einstein

Throughout my sales coaching career, I have yet to meet a salesperson who does not understand that sales will require hard work.  Yes, they might all have a different willingness to put in that hard work, but they understand that selling is not for the faint of heart.  They know that there will be some rough days.  They also understand that when they accomplish what they need to each week, they will generally be tired come Friday afternoon.  They don’t mind working hard.

But what they do mind (and this is universal), is chasing hard after a deal that, as it turns out, they had no chance to win.  They were punching above their weight class.  And as a result, they wasted their time.  In my opinion, there is nothing more expensive to you as a sales professional than spending time pursuing an opportunity that you have no chance to win.  Simply put, you can’t get the time back.

So why does it happen so frequently?  If you knew you were lost, when would you want to know that?  I am guessing before you wasted more gas going in the wrong direction.  Right?

I believe we can identify three main reasons why salespeople get fooled:

1. Weak pipeline – We know that weak pipelines "make cowards of us all."  If you have not eaten in a while, any food looks good to you.  It won’t matter if it is the right food…or if it is good food.  It is food so you will eat it.  Which is precisely why you should not go grocery shopping while you are hungry.
2. Failure to ask the tough questions – The best day to lose an opportunity is the first day. The second best day to lose one is today.  Are you asking the tough questions of your prospect that will allow them the opportunity to self-select out of the decision?  Or are you asking the easy questions to get you to the next step in the process?  What are you pretending not to know?
3. Afraid to pull the plug – Sometimes opportunities start well, but then the salesperson is met with radio silence from the prospect. And rather than “politely” confront the prospect with what the radio silence means, the salesperson keeps chasing.  Radio silence can mean the problem has gone away, the problem has been swallowed up by other priorities, or the prospect has solved the problem with someone else.

So, is it time for you to “get real” with a prospect in your pipeline?  The time you save is yours.

 

In a business world filled with an abundance of technologically advanced CRM tools, there are 5 tools that salespeople must use and sales managers must implement throughout their day-to-day activities and agendas, in order to be successful.

They include:

1. Effective Personal Goal Setting
2. The Ideal Week
3. Sales Process
4. Huddles
5. The Success Formula and the 10% Difference

Do you have all the sales tools you need to succeed? If yes, then forget about this article and go to The Truth About Prospecting.  If you feel you don’t have the tools, or the tools you have are not getting you to your desired sales results, then read on.

I was first introduced to sales tools when I was recruited into the Life Insurance business by David Zimmerman. That tool was the One Card System developed by Al Granum of Northwestern Mutual Insurance. Al’s process of tracking and holding insurance agents to a formula for success is legendary in the Life Insurance industry and is the basis for most CRM strategies used today. Simply stated, Mr. Granum’s research identified that an agent needed 10 leads (suspects) to generate 3 prospects (who will participate in a full fact-finding meeting) to get 1 client.

Over the years, I have seen many variations of this but ultimately the objective is the same. Help a salesperson understand exactly what they need to do to hit their objectives. But this tool by itself is not nearly as effective as when combined with other tools.

Despite all the fuss with sales force automation, lead generation and pipeline management, we know the following to be true: 

• 33% of the production team is responsible for over 90% of sales results
• 67% of the team is responsible for less than 10% of the sales results
• None of the 67% were hired NOT to succeed

So, what is the problem? Why the variance of performance when all these tools purchased and implemented were supposed to fix sales? Here are the 5 commonly overlooked tools that salespeople must use and sales managers must implement.

#1: Effective Personal Goal Setting- Too often companies establish goals for their sales people and then 3 months later the argument ensues about ‘whose goal it was’.  Goal setting must be a personal activity. This is what drives internal motivation and it is internal motivation that keeps your people focused on shareholder value. Spending a day with your people with a thought-out plan to help them focus on personal goals and a corresponding work plan is the bases for the other 4 tools. 

#2: The Ideal Week- We conduct a full-day session on helping companies drive internal motivation and eliminating the excuse of - “I don’t have time”. The reason salespeople don’t have time to do the required and necessary lead generation activity is because they don’t control their business. They sacrifice pleasing outcomes for pleasing behaviors. In other words, instead of sticking to their schedule and making calls at 10:00, they take the inbound customer service call.

#3: Sales Process- Our data shows that over 85% of elite sales people (only 7% of all sales people) use a milestone-centric sales process. The first step in the journey is to get a name, the last step in the journey is to get a decision. Everything else in the middle must be identified as a step and measured.

#4: Huddles- Think of huddles as a communication system that allows the user and manager to collect real time information so that real time feedback can be given, or realized, and real time coaching and instruction can take place.

#5: The Success Formula and The 10% Difference- This is simple math based on the theory of Mr. Granum but a little more granular. 

Part of being a highly successful and effective salesperson is having the ability to walk away from an opportunity. After numerous attempts to contact a prospect and close a deal, there will be a time when you as a professional must determine when and how to call it quits.

As the quote says, “Those who cannot learn from history are doomed to repeat it.”

There is always something to be learned when it comes to a sale we have lost. One of the most distinguishing traits of successful salespeople is that they always learn from the mistakes they make in selling. And, generally speaking, they will not make the same mistake twice.

One of the mistakes that I observe salespeople making is they fail to ask what I have termed, “The Animal House” questions. Do you remember the 1978 movie, Animal House? Of course, you do- it’s a cinematic classic. Think of the scene near the end of the movie when the Delta fraternity members are being kicked out of school when Bluto says, “Great… 7 years of college down the drain. Over?!? Did you say it’s over?!?!  Nothing is over until we decide it is. Was it over when the Germans bombed Pearl Harbor?”

Now, while Bluto was just a little off in his recall of history, he DOES give us an excellent reminder that there are times when we need to simply ask our prospect, “Hey, is it over? Are we done here?”

Perhaps they’ve promised you some information and you still don’t have it. Perhaps they’ve promised to set up a meeting but it still hasn’t been set. Or maybe they’ve promised to make a decision and now we’re two weeks past that deadline and they’ve gone radio silent. Do yourself a favor- sell like Bluto. Muster up the courage to ask the Animal House questions, “Is it over? Are we done here?”

Find out, and if you are done, maintain control of your sales process and move on. Don’t let the rejection get in your way of pressing forward, learning from your mistakes and hunting for real qualified prospects.

Facing stalls and objections throughout the sales process is a common occurrence for many salespeople. What we find is that, often, it is due to ineffective qualifying and not asking for the prospects commitment to take action prior to presenting a solution.

In this blog, we will cover the 10 common symptoms that suggest you may accept put-offs from prospects and how that is affecting the strength and quality of your sales pipeline.

While we are hoping to hear yes after our presentation, sometimes we hear a no. But how many times are you hearing “think it over”?

Think about the last 10 sales opportunities you had in your pipeline where you didn’t get a yes.  How many of them are still in the pipeline because you are “hoping” for a yes while they “think it over” and get back to you?  Now ask yourself what percentage of the time when you allow “TIO” do you get the business? My guess is that if you are like the rest of us, the number is pretty small. So let’s stop kidding ourselves about the strength of our pipeline and quit accepting “think it over” as an answer.

Since we agree that “TIO” is not the most effective strategy for closing more business, let’s look at some of the symptoms.  You may not identify with all of these but it only takes one to derail your sales effectiveness.

1. Do you keep going on appointments with prospects that don’t fit your ideal profile?
2. Are you answering more questions than you are asking?
3. Are you completing a pre-call plan for every sales call with questions you will ask and curve balls you expect?
4. Do you rely on cold calls instead of introductions and referrals?
5. Do you think “running faster” is a strategy?
6. Are you too trusting of prospects and what they say?
7. Are doing most of the talking on your sales calls?
8. Are you talking too much about products and not enough about problems?
9. Do you go on any appointment because you don’t have enough in your pipeline?
10. Are you asking for the prospect’s commitment to a “Yes” or “No” answer before you come back, present your solution and answer all of their questions?

Eliminating “TIO” is easier that you think.  First let’s agree that it’s OUR fault.  If you have a sales process that allows for “think it over” you are going to get “think it over.”  If you don’t have an effective sales process, well then get one and follow it every time!

Stop fooling around with prospects that want to “think it over” and go sell something!