In this blog, we discuss the concepts behind real, tangible sales growth and ask the question, "Is Your Sales Growth Stuck in the Chimney with Kris Kringle?" 

Sales growth is dependent upon Closing More Business, More Quickly, at Higher Margins and we are here to show you how you can accomplish this within your organization!

This morning, my wife (and ACTG's President CEO Linda) and I were watching Morning Joe while talking business.  We were discussing our brand promise of:

"When you lie awake at night worrying about sales growth, we lie awake at night.” 

We compiled a list of questions that often haunt managers throughout the day and into the night when they should be preparing for a good night’s sleep:

• Do I have the right people?
• Are we doing the right things?
• How effective are we?
• What do I have to do to make sure we hit our numbers while we stay consistent with our vision and mission?

As we’re talking, we see a news banner at the bottom of the screen about a man who was arrested for breaking and entering a home.  He was apprehended after the police entered the home and saw his feet dangling from the chimney.  As usual, I automatically started thinking about how that related to sales, sales management, performance management, coaching, pipeline, pre-call strategies, etc.

And, since it's that time of the year, it also made me think of this great scene in The Santa Clause: 

My first question, however, is this: 

1. “Do you have sales opportunities that are important/critical for hitting your goals and growing sales that are stuck?”

My second, but maybe the most important question, is:

    2. “Is this particular opportunity a repeat offender?” 

QUESTIONS FOR EVALUATING OPPORTUNITIES

Now, there are 2 things to consider when attempting to answer that second question.

1. Is that opportunity familiar to you and the salesperson who has entered the opportunity into your pipeline management system? (This isn’t the same as your CRM). If we’ve worked on this opportunity before and they – the opportunity – “got away on a technicality”, then this would be defined as a “repeat offender”:
   1. Not the decision maker
   2. Wasn’t able to undo the current relationship
   3. Decided to not make a change
   4. Couldn’t arrive at the price point
   5. Really didn’t have a solution that fit the features and benefits they were looking for
   6. The timing wasn’t right
2. Are other opportunities stuck in the pipeline/chimney for the very same reasons as this one?  The salesperson failed to execute the qualifying steps in your sales process:
   1. No compelling reason to make a change identified
   2. Competition unknown
   3. Incumbent still part of the equation
   4. Budget for investing time, money resources is a mystery
   5. Decision making process has not been uncovered
   6. Timing or urgency of making a decision not clearly understood
   7. Agreement on next steps unclear
   8. Did not ask the question – Is this a “want to fix” or “have to fix” problem?

CMBMQHM AND WHAT YOU NEED FOR SALES GROWTH

Sales growth is dependent upon this – CMBMQHM.  My staff hates it when I make up acronyms like this.  When I put these in our learning decks, the people in my office want to know what the acronyms mean. 

Close More Business, More Quickly, at Higher Margins

So, what does it take to accomplish CMBMQHM?

• You must have a milestone-centric sales system – something that can be quantified, measured and evaluated for progress towards the objective of “getting a decision”. (This is not the same as “getting the sale”.)
• You have to have a process for building a success formula for each salesperson based on that sales system.
• You have to have complete buy-in to the use of your pipeline management process. Here are the guidelines to get that buy-in. It needs to…
  • Be easy to use
  • Be effective
  • Be beneficial to the user
  • Provide you with business intelligence
  • Automatically generate and send reports to you so you don’t have to go find the information
• You have to have a system of pre-call strategy sessions for EVERY opportunity that meets or exceeds the benchmark of your top 33%.
• You have to have a post-call debriefing session for every opportunity you discuss in the pre-call session.
• You have to conduct a CSI – “Crime Scene Investigation” – for every deal you don’t get.
• Finally, you have to conduct 1-on-1 coaching sessions that are intentional.
  • They are based on the findings from your pre- and post-call meetings
  • They are based on what your data is telling you about the choke point(s) a particular salesperson is having or the most common choke point(s) for the group
  • The coaching needs to accomplish 1, if not 2, things:
    1. Change behavior
    2. Improve skill

Additional Resources:

Download the Success Formula Worksheet

Sign up for our Effective Selling System Online Demo 

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 our work helping client’s develop their sales talent, there are two topics that get avoided on a regular basis.  Plus, both are to the detriment of the salesperson.  Those two taboo topics are discussing the incumbent and discussing the budget.  We will address the incumbent discussion in a later blog.  For now, let's talk about the "dreaded" budget discussion.

When we refer to the “budget”, we are referring to it in three categories commonly known as
TMR—Time, Money, and Resources. It is our experience that the stronger sales professionals don’t shy away from that discussion.   They aren’t afraid to ask, “How much have you set aside to make this problem go away”?

They are successful because they follow these rules:

Rule #1— Have the conversation.  The 800 lb budget gorilla is in the room, so talk about it.  If you have taken the OMG sales assessment, look at the section on “Ability to Discuss Money” to see if that is a weakness or strength.  If it’s a weakness, put a plan together to help overcome this obstacle.

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.  You haven’t uncovered enough pain or they simply want 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.