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Blog

Filtering by Tag: sales

Developing a Winning Sales Organization

Monty Fowler

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I know what you're thinking. You're sitting there smugly saying to yourself, "Another stupid infographic from a company that knows nothing about my business. My company is different...we know how to sell...if only we could just fix our marketing, everything would be fine."

While having a misaligned marketing organization can impact sales negatively, the simple truth is that it's the job of the sales team to sell.

And now you're thinking, "My sales team isn't that bad. We had a pretty good year and I'm sure things will pick up now that we have that new [sales manager] [CRM system] [sales methodology] [sales guru] — fill in the blank with whatever magic bullet you're pinning your hope to. Effective selling is not achieved via any one special ingredient. No sales training event will transform your mediocre sales team into a revenue rocket. Building and maintaining a high performance sales organization takes planning, meticulous attention to detail, and a commitment to doing lots of little things consistently over a long period of time.

These 10 Key Imperatives for Sales Growth are the bare minimum of what winning sales organizations do to create and maintain above-average sales performance. If your sales organization hasn't mastered all 10, we should talk. Vicendia Partners can help you determine what you're doing right, what you're doing wrong, and most importantly...what you're not doing at all. We'll help you quickly identify the processes & people that are crippling your sales performance and help you fix it for good.

Now you're thinking, "I don't want to talk to a consultant. I hate consultants." Good. We do too. We are sales and marketing practitioners—not consultants. So call us at (630) 217-5948. We would love to talk to you.

Poor sales performance – Is it the rep, or their territory?

Monty Fowler

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Despite sales leadership’s very best efforts, poor performers find their way into the sales force. Once identified, most leaders are quick to manage them out. However, sales results do not always differentiate high performers from low performers. Occasionally poor territory design can inadvertently cause a good seller to look like a poor performer. Sellers who struggle to attain quota are classified as poor performers, but in reality, their poor territory could be limiting their success. How do bad territories happen, what is the impact, and how can you address it and avoid it?

How do bad territories happen? Fear of disruption and favoritism, in a nutshell, explains the majority of instances of chronic bad territory design. Favoritism occurs when a sales organization’s top performers are assigned territories with the highest amount of opportunity, while new sellers are assigned territories with significantly lower opportunity. It’s not uncommon for leaders to become overly enamored by their top performers. And what’s not to like? They killed it for you and helped you make the number. Oh and by the way, they are usually great socially—they become your friends. Keep in mind, they are naturally going to sell internally to ensure they keep the best territories, accounts and lower quotas. Interestingly, once a rep is viewed by leadership as a top performer, it’s hard to move off that thinking. Even if the rep happens to have a bad year, there is a tendency to rationalize the poor results away to reasons beyond the rep’s control. This mentality leads to a fear of disruption or change and a culture of accommodation.

What is the impact? The impact, frankly, is reduced sales capacity, as much as 15-25% according to our research and client experiences. When tenured sellers are given the richest territories, they cannot effectively cover all the opportunities they are assigned. Meanwhile new sellers fail at high rates because they are set up to do so with “green field” territories that have little to no existing customer base. This workload imbalance creates another effect called an “in-line job transformation.” Tenured sellers who started as hunters are transformed into farmers over time. Eventually these tenured sellers are so busy managing existing accounts that they have insufficient sales time to close new opportunities. As a result the burden of growth is placed on average to below average sellers. And worse, if these tenured sellers remain in farming territories, while it might be comfortable, they usually become frustrated and leave because they enjoy hunting, or growing a business, not farming. Unbalanced territories lead to stunted growth and increased sales costs and, left unchecked, can result in higher turnover. Unwanted rep turnover is highly disruptive. It saps morale and creates confusion among customers, often leading to unnecessary customer churn.

How can you address it / avoid it? In order to eliminate the negative aspects of unbalanced territories, high performing sales organizations embrace a periodic review, usually once a year, of their territories. The annual review process should include the following key activities:

  • Develop a workload model and estimate optimal territory workload
  • Calculate account and/or territory level potential
  • Develop a territory balance index score, which at a minimum includes workload and opportunity
  • Identify territories that are 20-30% above or below the average index score
  • Rebalance outlier territories

Rebalancing territories effectively increases selling capacity and provides all sellers with equal opportunities to succeed. With balanced territories, when the organization measures performance it can truly identify the high performers. Maybe some of those “low performers” will really shine when given the right ingredients for success. And perhaps some of those “top performers” who happen to excel in the highest opportunity territories are not as good as advertised.

Give us a call at (630) 217-5948 and we can discuss your underperforming sales team members and help you determine the root cause and address it quickly.

Five Deadly Sins That Stall Growth

Monty Fowler

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Be honest. 

Are your sales and marketing teams helping you to meet your business growth targets as well as they could?

If you're like many directors and business owners, you probably don't think so.

In today's blog I want to share 5 B2B sales and marketing "sins" that stall revenue growth. These problems are frequent in all B2B markets, and are vital to resolve if you want to keep on growing.

Misalignment

One of the biggest problems B2B organizations frequently face with their sales and marketing is a lack of alignment. Sales and marketing traditionally don't get along very well—sales place the blame on marketing for not providing enough leads, or providing poor quality leads, and marketing places the blame on sales for not closing the leads they generate. 

Poorly aligned sales and marketing departments are rarely successful. If your company is serious about growth, you need to get them on the same page and close the loop. You need an agreement between the two teams as to who is responsible for what, and to appropriately pass data between the teams. 

Your marketing department needs to know which of the leads they supply to sales are closed, and for what value, so they can determine which marketing efforts are successful. Likewise, your sales team needs to know where their leads have come from, and details of any interaction the lead has had with the company before their first sales call, so that they can have more productive discussions with prospects. 

An unclear sales process

A good sales process is well documented, and repeatable. Your sales team should know exactly how to approach each prospect depending on where in the sales pipeline they are, and have a series of actions they take at each stage to qualify or disqualify them. If you don't have a documented sales process, invest resources in developing one.

Untrained sales teams

A big issue amongst sales teams is often a lack of training. Sales teams are rarely given time to learn, as any time spent away from selling is often deemed an unnecessary cost. In reality, this couldn't be further from the truth. Poorly trained sales people are costing your company sales. Your sales team can always be improved, and trained. Make time for regular sales training, commit to it, and I promise it will pay dividends.

Outdated software

What software do your sales and marketing teams use? Modern marketing automation software is vital for effective B2B marketing in the digital age, and a CRM system like Salesforce can vastly improve the productivity and performance of your sales team. Integrating a new sales or marketing system can appear to be a lengthy or expensive process if you have a large team or lots of data, but it'll pay dividends in the future.

The right sales and marketing software maximize the time your teams spend performing the core aspects of their role, and reduces time spent doing administration, development, and other tasks that aren't directly growing the business. Be honest—are your teams underperforming due to not having the right tools? Your competitors are using this software, and if you're not, it's allowing them to close more sales at a lower cost.

Poorly defined success metrics

Poorly defined success metrics are open to abuse, and are often detached from key business goals. Make sure that the metrics you are using to measure the success of your sales and marketing efforts are directly aligned with your business goals. 

It might be worth taking a look through my blog on the Sales Velocity Equation, which goes into more detail on the metrics your sales and marketing teams should be measuring.

The good news is that if your company is struggling with one or more of these growth-killing sins, Vicendia Partners can help. Give us a call today at (630) 217-5948.

What are the biggest sales and marketing problems your company experiences? Have I missed any key ones you'd suggest? Share them in the comments below.

Software Revenue Acceleration

Monty Fowler

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Some years ago, a client of ours was, not surprisingly, debating how to accelerate software revenue. Their product and target market segment both set up nicely for a classic reseller channel - yet their efforts over several years had met with very limited success.

Our client's conclusion was equally unsurprising: the resellers simply lacked the necessary product knowledge, and their ability to grasp the finer points of the software was lacking. Sounds familiar?

It is a relatively common complaint at many software companies: the customers / resellers / partners / salespeople (circle the appropriate group(s), please) just aren't smart enough/skilled enough for our software to sell effectively. And very often it is noted that the group of people in question just don't have "domain expertise in our software."

That observation is almost always correct when seen from the development department of the software vendor: the supporters know less than the developers, the salespeople less than the supporters, the channel partners less again, and finally we find the hapless customer who is near zero in domain expertise in the vendor's product.

But if we flip around the point of departure, what the customer does have is domain expertise in the problem or process the vendor's software is intended to help solve. And the vendor's channel partner will have a relatively good grasp of the customer's process, but still less than the customer's own personnel. Backtracking all the way back to the software vendor's development department, it is there we find the least amount of domain expertise in the customer's situation.

So it's almost a law of nature that these most/least combinations fall along a relatively orderly spectrum. As one domain expertise falls, the other one rises. They work nicely together to make sure that the most important items at each locale get addressed properly.

It is the task of a software vendor to make sure that each link in the chain from its own development all the way to the end user gets just the right dose of software domain expertise. Then, assuming that the software product indeed solves the target market segment's problem, software revenue acceleration will follow.

Let Vicendia Partners help you map your software domain expertise against your customer's challenges and processes so you can accelerate your software revenue. Call us today at (630) 217-5948.

8 Traits of Great Salespeople

Monty Fowler

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I recently performed an audit for a mid-sized company in which I examined their sales staff against a standardized assessment test as well as their performance data. The results may confirm some of the things you already know, but there were some surprises. Here is a brief recap of the analysis.

When you look at the qualities of the great sales representatives for non-transactional sales--those sales that are larger and more complex in nature--they tend to share the following traits:

  1. They assume parity with their customers—There is an imaginary hierarchy that average and poor-performing salespeople place between themselves and their prospects. It includes head-trash like, "The customer is always right," and "You're the customer so you're the boss." The data says that the top sales representatives see themselves as problem-solvers worthy of equal respect with their customers. Respect always, deference rarely.
  2. They are comfortable talking about money—This quality often starts back in the home in which they were raised and the beliefs that were held there about money. If there was a belief that money was a rare and precious thing to be horded or feared, then it shows up with a fundamental discomfort in discussing large numbers. Individuals that look at money as a measure of value, not as a number outside of personal grasp, typically do better in sales.
  3. They challenge the decision-maker—The best sales representatives have a strong confidence in their understanding of the customer's market and their own solution—enough so that they are comfortable challenging inaccurate statements made by the customer. 
  4. They are comfortable with silence—Confidence is demonstrated as much in silence as in what you say. Top sales people can allow for measurable periods of silence in conversations with prospects. This creates an opportunity for the prospect to give consideration to what has been said rather than having to process the next piece of data given to them by the sales rep.
  5. They show up prepared—This seems so common sense and yet when I administer these types of assessments the statistical fact is that most salespeople—greater than 70 percent—are not well prepared for sales calls and meetings. They lack research, pre-call planning, a complete agenda agreed upon by the contact, and a tailored presentation to the prospect. The best have all of these things.
  6. They don't rush—A study was done about physical demonstrations of confidence and power some time ago. The external view of two people moving was observed by a cross-section of people and questions were asked about which one had greater confidence, was paid more, and had a position of greater authority. They both wore similar attire, and were of the same body shape and age. The only distinguishing characteristic was the speed in which they performed their actions. The one who looked rushed always scored lower. An appearance of confidence in part comes from an appearance of control.
  7. They ask great questions—This has been written about by me and many others. The data confirms that the higher-performing sales representatives ask more questions—often more than twice as many—and their questions are more focused on implications than on data. Put another way, they ask questions about what something means rather than just what it is.
  8. They are impeccable in following up—Just like preparedness, this quality seems so simple but is often overlooked by poor performers. The best cover the details.

One more note: Great sales people score over the 50 percent mark on every one of these traits. That means that they are not super-high in one area and failures in the other areas. They are above the halfway mark on everything. That's their foundation. Then they knock the ball out of the park in their areas of personal strength.

Sales Velocity...It Matters!

Monty Fowler

If there is one tool that has contributed the most to my selling career it is the Sales Velocity Equation from the TAS Group, and my friend and former colleague, Donal Daly. He describes his Sales Velocity Equation as, "The formula for sales success." I wholeheartedly agree.

Put simply, the Sales Velocity Equation focuses on the four levers of your business that influence the amount of revenue generated in a specific period of time (month, quarter, year):

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  • Number of deals (#)
  • Average deal value ($)
  • Win rate (%)
  • Sales cycle length (L)

As you can see, making small changes to one or more of the levers of your business can have dramatic results in revenue. In the past, sales leaders believed that simply increasing the number of leads or deals in the pipeline was the best way to juice revenue. But I've found that focusing on increasing the other size of your average deal, increasing the close rate, and shortening the sales cycle are better and sometimes easier to influence, and have a much greater impact on revenue generation.

Don't believe me? Well, watch this neat little slideshow from my friends at The TAS Group and maybe you'll be convinced enough to give it a try. And if you're ready to put it into practice, give us a call at (630) 217-5948 and we can help.

10 Steps to Creating a "Sales Culture"

Monty Fowler

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Excellence is never an accident. Transforming a marginally performing sales team into a well-oiled sales machine doesn't happen by luck either.

Yet many companies try to grow sales by simply putting more pressure on the sales team, reminding them of their increasing quotas and adding up how much they're behind. Oftentimes well-intentioned leadership teams think increasing pay will be the magic anecdote, only to find that paying salespeople more money doesn't make them any better at generating sales. Many times, it creates more complacency to do just enough to not get fired.

Companies invest a lot of time and money into better products or more marketing, which doesn't hurt, but only further masks your true underlying sales problem. And it's astounding how many companies know they need to increase sales, yet they spend 70 to 90 percent of their training time teaching their sales force more product knowledge and almost no time teaching them how to actually sell.

You might have amazing customer service. You could be the leading provider of cutting edge technology. You may have an amazing Web presence. It's possible that you have the world's most compelling value proposition. But if your revenue-generating sales team isn't reaching its potential it's because you don't know how to build a true sales culture.

At Vicendia Partners we've delivered sales consulting and training in scores of companies. Here are 10 key elements we’ve learned that will get your company on its way to creating a high-performance sales culture:

1. Follow your salespeople. Before we even take on a project, the first thing we do is spend time doing nothing but listening and watching. We spend significant time because when it comes to why they aren't producing, salespeople can never tell you the real deal; they can only show you.

2. Monitor daily activity. A doctor wouldn't look at you and just tell you what was wrong; he'd send you in for an MRI, to get blood work done or hook you up to a machine to get readings. You have to do the same thing for your sales team. We use a proprietary assessment tool to track the six to eight daily revenue producing activities of every salesperson. Whatever system you use is fine, but the data is essential for monitoring because numbers never lie.

3. Create talk tracks. Most salespeople are far less technically proficient at selling than they think. They are scared to call on new business because they aren't good at it and they don't know what to say. While they will complain about being forced to say word-for-word scripts, you must have them available and they must work. If you don't, stop everything you are doing, call Vicendia Partners at 630.217.5948 and let us design one for each of your major products and vertical markets. A sales team without talk tracks is like a business without a business plan—scattered and inconsistent.

4. Drive activity more than results. Sales is and always will be a numbers game. Whoever sees the most qualified amount of prospects in the shortest time has the best chance of winning. Salespeople have little control over who buys and who doesn't, so spend more time pushing them to increase activity and results will increase as a byproduct.

5. Cut the bad apples. Our experience suggests that the average sales manager knows in 30 to 60 days whether or not a person is going to make it, yet it typically takes six to nine months to let that person go. Bad attitudes, low work ethic, and people who undermine leadership are a virus to your sales team. The longer you let them stay around, the more it is costing your organization and the more they are infecting those around them.

6. Learn to celebrate. Start recognizing top leaders in a big public way. One of the fastest ways we get results for clients is helping them create an incentive plan for driving activity. While big bonuses and contest prizes usually have to stay tied to production, you can come up with fun affordable incentives that create an immediate spike in activity. Top producing salespeople are a different breed and it's amazing how far they'll go to get a $50 gas card or get their name called in a team meeting.

7. Create a creed. Selling is emotional. Selling takes energy. And many salespeople need to be sold on the greater good of what they're doing. They need to understand that they are contributing to a bigger picture. You can even have them come up with their own creed by just capturing their responses in a group setting to the questions "What do we believe in and why are we here?" Salespeople need vision and it’s the job of leadership to help that vision come alive.

8. Elevate esteem. Salespeople are amazing. They are often (and should be) among the highest income earners in your organization. They battle fear and rejection every single day. If you want them to produce you need to promote how honorable and noble it is to be a sales professional throughout your organization. In your talk and demeanor, elevate the importance of the sales function to the other departments in your company. Anyone who has a problem with that should be invited to make sales calls for a few weeks.

9. Master a sales training process. It's your company’s job to give your salespeople the tools and training they need to succeed in their position. Sales cultures have well-defined systems to help their salespeople grow, learn and achieve. This is especially important for new hires but you also need to have some way to deliver on-going advanced sales training ideas for your entire sales team. If you don’t think this is important, then determine how much it costs you on average to hire someone and multiply that by the number of salespeople who didn’t make it last year; you’ll quickly see it’s worth the investment. Seriously...do the math. Then call us.

10. Create more frequent accountability. Most good salespeople need and welcome regular accountability and partnership. Spending regular one-on-one time with your people not only gives you a chance to mentor and train with them; it shows that what they do is important and that you care about their success. Part of the reason why sales coaching has become so popular in recent years is because companies are stretched thin by tight budgets and managers are not able to spend enough individual time with their people so they seek outside reinforcement.

Creating a sales culture takes discipline, commitment, and focus but that should be no surprise—because excellence is never an accident.

WIll You Make Your Numbers in 2014?

Monty Fowler

According to the CSO Insights 2014 Key Trends Analysis, further penetration into existing accounts and improved customer loyalty both landed squarely in the top ten objectives for sales organizations this year. The same study reported that 94 percent of firms raised revenue targets for 2014, despite the fact that sales rep quota attainment was down five percent from 2012 to 2013.

Clearly, sales organizations will be feeling the pressure to hit their revenue numbers this year, perhaps more than ever before. If you are like most B2B companies, you expect much of that revenue to come from your existing customer base. But that’s easier said than done. Despite most sales teams’ best efforts, sustainable organic growth is a challenging proposition.

Take a peek at this organic growth infographic to gain fresh insights on driving revenue to make your numbers. If any of these facts give you pause, we should talk. Give us a call at (630) 217-5948.