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Why Monitor If You’re Not Going To Fix It? 5 Steps to Fixing Your CRM and Salespeople Issues

Posted by Tony Cole on Thu, May 30, 2019

In this article, we offer solutions for your CRM system and provide 5 concrete steps in helping your salespeople improve their numbers and ratios so that a sales manager can more accurately identify choke points in the sales process.

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My wife Linda and I were recently in Columbia, Maryland visiting family. While having a mid-afternoon lunch at Clyde’s, I happened to see a “LifeLock” commercial on the bar TV. All I caught was the following caption:

“Why Monitor If You're Not Going to Fix It”?

Forbes contribution editor, Will Burns, writes about the absurdity the Lifelock ads point out. He even does us the favor of including the Dentist, Robbery and Pest Control ads in his article.

Many companies, probably including yours, have monitored pipeline opportunities. The idea is to have information about the opportunities being created by the sales team. Companies want to know: 

  • What stage in the sales process is the opportunity
  • What the next steps are to move the opportunity through the pipeline
  • The likelihood of winning the business based on a probability % either calculated or assumed based on the sales stages
  • The future sales revenue of all the opportunities in the pipeline.

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There are normally at least three problems with the use of CRMs and pipeline management:

  1. Validity - The true accuracy (validity) of the predictive nature of the CRM is dependent upon making sure that a milestone centric sales process has been mapped and made to be part of the CRM being used.
  2. Credibility – Even if you have the right sales process mapped and documented, there is still the element of GIGO – Garbage In, Garbage Out. If your sales team is entering opportunities into the pipeline to keep management off of their back and assuming that the opportunities have met the criteria for each step in the sales process, then you still have a predictive problem with your pipeline.
  3. Lack of helpful business intelligence – It’s one thing to enter data and get raw numbers from what has happened and what we think will happen. It’s another thing to build your CRM so that you have reporting that tells you how sales people are performing against the sales success formula developed for each individual. Without comparative data, then a company or manager is monitoring activity without identifying, if in fact, there are any problems.

What a company should be looking for, so that it’s in a position to ‘fix it’, are critical numbers and ratios so that a sales manager can clearly and more accurately identify choke points in the sales process for each individual.  Additionally, the data can and should, tell the manager and the organization if training and coaching is required, or if the current training and coaching is having the intended impact: Improving the effectiveness and results of the sales team. 

Let’s assume the following sales effort and effectiveness performance model: 

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  •  The sales person that is failing to hit sales targets is supposed to:
    • Create 10 new leads a month
    • Convert 50% of those into opportunities
    • Convert 50% of those into presentations
    • And get 50% of those presentations to turn into sold business
    • Additionally the average size sales is supposed to be $10,000.00 
  • Lets assume the following actual sales effort and effectiveness:
    • 9 new leads are being created but we don’t know why 9 instead of 10?
    • 50% of leads are being converted to opportunities
    • 50% of those opportunities are leading to presentations (but keep in mind over time there will only be 90% of the planned for opportunities because of failure to hit the lead goal)
    • 45% of the presentations turn into sold business instead of 50%
    • And, the average size sale is $9,000.00 instead of $10,000.00

If this is monitored and not addressed/fixed, then this sales person will be short of their goal in access of 25%. This will be a gradual event because, unless the CRM is built to provide this information, no one will notice. No one will notice because the numbers are either: not being monitored or not being addressed because they are ‘close enough’ (9 instead of 10. Management sees this as being 1 off of target rather than 10% off target). Or, coaching to fix the problem falls into the category of ‘do more’ instead of "let’s coach you on how to do better."

Does any of this look or sound familiar? It may not, especially if you have enough of the right people (about 33% of your sales group) doing enough of the right things. With 33% of the team carrying the load, you will still end up with about 90% of your goal.  Then, all you will need is a few of the remaining 67% of the team to contribute something to the production number. You will be close enough.

“Fixing” it has to be part of the investment when investing in sales enablement tools, systems and technology. Fixing the problem requires the following 5 steps:

  1. Building a milestone centric sales process that is part of the CRM
  2. Creating sales success formulas for each sales person based on their historical actual performance and agreed to sales goals
  3. Timely monitoring and updating of sales effort and sales execution data so that you can ‘catch them early’ in real-time when their performance is a negative variance from the plan
  4. Using the data to develop intentional coaching strategies to help your salespeople deal with the specific challenges they are having in either effort or execution. No more ‘run faster’ coaching
  5. Use metrics to determine your success: 
    • % of sales people hitting effort target increases to 100%
    • % of people hitting conversion ratios improves
    • Production from each of the sales team segments (1/5s) improves year over year
    • The 80/20 rule starts to shift to a 70/30 > 60/40 rule
    • Validity and credibility in your pipeline prediction improves
    • Adaption of your CRM is at 100%

Call To Action: 

Request a 30-minute live Emergency Pipeline Analysis Session to evaluate current opportunities in your pipeline. What you will get/learn.

  • Complete instruction on how to more effectively evaluate the validity and credibility of your pipeline opportunities
  • How to more effectively identify choke points in the sales process
  • A method of intentional coaching to improve the probability of closing current opportunities.

Email:  tony@anthonycoletraining.com if interested.  Thank you for your time!

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Topics: solutions, solving sales issues, underperforming sales team, monitoring sales issues

What Makes a Sales 'Hall of Famer'?

Posted by Tony Cole on Thu, Nov 15, 2018

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Assuming for a second that when you think about hiring for a position in your organization, you are thinking about hiring the best, especially in the early rounds of looking for talent. No one reasonably goes about writing a job description like this:

“ABLE Sales Company is looking for the most unbelievably average salespeople we can find. We already have enough top producers and those that are failing. What we really need are some people to bump up the middle of our bell curve. If interested, show up and you’ll get a job.”

No, you are not looking for average- you are looking for people who can get your organization to the next level. You’re looking for the best of the best.

Which leads me to today’s story: I was listening to ESPN radio and tuned into The Golic and Wingo Show. They were sharing stories about the Baseball Hall of Fame inductees that a reporter had heard from each during his time as a sports reporter.

I would like to share 3 of those stories with you today and how they are great analogies for recruiting the best of the best.

Vladimir Guerrero: Vladimir is a Dominican born in 1975. He arrived to his first professional baseball try-out on a bicycle. He was wearing baseball shoes that didn’t match and one was so big he had to stuff it with socks so that it wouldn’t slip off. He was on the field for 5 minutes hitting, throwing and catching when the scouts told him he was finished. They signed him to a contract and now he’s in the Baseball Hall of Fame. So, how does this relate to recruiting talent?

  • When you got it, you got it
  • Don’t judge a book by its cover

Trevor Hoffman: Trevor was born in Bellflower, California in 1967. When he tried out to play professional baseball, he did so as a shortstop. However, after a few minutes of taking the infield, somebody told him he was terrible as a fielding shortstop and he was a weak hitter. They said if he was going to make it in the pros he might want to try pitching. He did and now he’s a Hall of Famer. What’s the hiring lesson here?

  • When interviewing people don’t be afraid to push a button that might upset them. It’s going to happen in their sales career anyway so you might as well find out how they are going to react. Will they absorb the challenge or get emotional?
  • Every candidate you interview and eventually hire is going to come with some warts. What you want to know is – are they coachable?

Chipper Jones: Chipper was born in 1972 in Deland, Florida and played his entire career with the Atlanta Braves. Chipper was the #1 MLB draft pick in 1990. As the story goes, the Braves were ready to make him an offer but his dad was encouraging Chipper to hold off because he could probably get more money from another team. Chipper told his dad that he wanted to be the #1 draft pick and that the money didn’t matter. He knew that he was going to be successful and that he would earn his ‘big’ money based on his performance rather than what another club thought he was worth today. Again, why is this important when hiring salespeople?

  • You have to be patient. Just because it’s hard to find the right person, doesn’t mean you should hire one that is close. Close enough isn’t good enough (you already have some of those on your team and you don’t need more).
  • Hire people that are willing to bet on themselves. Often recruiting managers, HR, and recruiters shy away from those that don’t exactly fit the pedigree. When interviewing and working the compensation into the hiring contract, be bold enough to challenge the candidate to put some money at risk. If they are as good as they think they are they will make up for it in spades in the long run.

There is nothing easy about hiring. If you listen to the stories of these recent inductees you will find that there was nothing easy about getting into the Hall of Fame.

Need more help hiring the best of the best? Download our free Recruiting Success Formula document and Interview Questions guide to improve your recruiting process today!

 

Click Here for Additional Hiring Tools!

Topics: solving sales issues, sales growth and inspiration, things to do for sales success, sales stories, building sales team

"I Could Sell More if Only I Could _____"

Posted by Mark Trinkle on Thu, Nov 08, 2018

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I've got a fill in the blank for you.

Are you ready?

"I could sell more if only I could _____."

What comes after could? We had the chance to ask that question around the country with a variety of companies both large and small and it's interesting to hear what salespeople say when you ask them to fill in this particular blank.

Sometimes, you'll hear...dare I say excuses. Sometimes, you'll hear...dare I say, valid reasons for why they're not selling as much as they would like or their manager would like. When we hear that answer, we immediately think about the core steps in the sales process.  

You have to go see people. You have to call them first. Then you must go see them, you must have meetings, you must qualify them and deliver presentations, and of course, you have to win your fair share. 

As you think about calls, meetings, dials, qualifying prospects, and closing deals, ask yourself these major questions.

If you're not where you want to be in 2018, ask yourself,

  1. Why are you there?
  2. How long have you been there?
  3. Are you fully committed to getting back on track?
  4. What's going to be required to get back on track?
  5. Do you have to get there?
  6. What happens if you don't?
  7. What is the problem costing you?
  8. Do you have to fix it?

If you know anything about our organization, you know that is how we encourage the unveiling of the sales process. 

Asking your prospects questions like:

  • What is going on?
  • What do you have to fix?
  • How long has it been a problem?
  • What have you done to try and fix it?
  • Do you have to fix it?
  • What happens if you don't fix it?
  • What's this problem costing you? 

All of that fits into one of two categories: Excuses or reasons

Just remember as you answer the question, "I could sell more if only I could ____."  If your answer is an excuse...

"Excuses are the nails used to build houses of failure."

Now go out there and get it done!

Topics: sales productivity, solving sales issues, how to hit goals in sales, self management

4 Steps to Create Client Advocates

Posted by Walt Gerano on Tue, Jan 17, 2017

A guest post by Walt Gerano, Sales Development Expert, Anthony Cole Training Group

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Today's question is this: “What are you doing to keep your clients coming back... and telling their friends?”

Can you think of a place where you go, wait in a long line, spend a lot of money and yet can’t wait to tell others how great it was and go back again?  Well, that could describe a number of places, but the frame of reference I want to use today is the Disney experience.

No one would argue with the success that Disney has in exceeding expectations and creating advocates. When you go there your first time, it is more beautiful than you ever imagined.  You have such a magical time that you forget about how much things cost or how long the lines are for almost everything.  In his book, Inside the Magic Kingdom, author Tom Connellan shows us (in story form) the seven keys to Disney’s success and how they work to create a dazzling experience for all of their guests.  As you read the book, you can only imagine what would go into building and sustaining that kind of relationship with your customers.

In order to achieve “dazzling”, you must have a process that is consistent and predictable.  People need to know what they can depend on when they trust you with their business.  In other words, it’s not a once-in-a-while thing; it is just the way you do things.

Keep in mind that it does not have to be the same thing for all of your clients.  The way you support your top 20% needs to be different from how you support your bottom 20%. But, at the heart of it all, everyone gets the basics.

So, how DO you create advocates?

  1. You have to find out what they want.How do you do this?  Ask!  Give them a list of things to choose from with the option to add things that might not be on the list.
  2. Next, prioritize critical areas. The key here is to find out what they won’t tell you.  How many times have you left a restaurant after you told your server everything was fine when they asked… then you  get back to your car and vow to never go back?  Some of your clients may do the same thing.
  3. Identify performance levelsand find out where they are setting the bar; don’t assume you know.
  4. Negotiate expectations. Now is the time to deal with anything you are not willing to agree to. Sometimes we say “yes” because we think it’s a deal breaker; just ask and then decide.  If it is outside your process, then you are better served to move on because, unfortunately, it will always be a struggle and they will never become an advocate anyway.

The only way to exceed your customer’s expectations is to know what they actually are, not what you think they are.  Start by having that conversation first and soon you will have them coming back for more and telling their friends.

Additional Resources:

Solving Problems for Prospects

Topics: exceeding customer expectations, creating advocates, solving sales issues

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    About our Blog

    Founder and CLO Tony Cole has been working with financial firms for more than 25 years to help them close their sales opportunity gap.  He is a master at using science based data and finely honed coaching strategies to help build effective sales teams.  Don’t miss his weekly sales management blog insights.

     

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