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ExcellenceS A L E S A N D S E R V I C E

T H E M A G A Z I N E O F T E A M L E A D E R S H I P

DECEMBER 2008

“Sales and Service Excellence is a phenomenalresource for sales professionals who want to grow andachieve more in their careers.”—TTOOMM HHOOPPKKIINNSS, AMERICA’S #1 SALES TRAINER

Linda BishopConsultant

MeetingsThe High Tech Future

MeetingsThe High Tech Future

IncentivesIncentives

Rev UpRevenue

Rev UpRevenue

Five Steps toSales Recovery

Five Steps toSales Recovery

M A N A G E M E N T / C O M M U N I C AT I O N

agers learned some hard lessons—thatthere are times when you need to seesomeone face to face, there are timeswhen an audio conference will do, andthere are times when an email is per-fectly fine. With diminished meetingoutcomes due to the lack of guidelines,video conferencing and Web conferenc-ing went back to playing a minor roleas companies reverted to traveling for

their meeting needs.Fortunately, people didn’t completely

abandon video and Web conferencing.Companies use video and Web confer-encing today more than ever beforebecause they discovered the technology.Now it’s time for organizations to step itup a notch and use the new meetingtechnology—not only to save costs, butalso to build relationships.

by Daniel Burrus

RISING GAS PRICES, AIRLINEcutbacks, canceled and

delayed flights, and sky-rocketing travel costs are just a few ofthe challenges facing business today.As a result, more companies are look-ing for ways to eliminate or at leastgreatly reduce travel expenses, andthey’re re-examining how they’ll con-duct meetings in the future.

Trying to eliminate meeting expens-es is not a new concept for business.After 9/11, the airlines temporarilyshut down. When the airportsreopened, many people were afraid tofly. In response, companies rushed totry virtual meetings—namely videoconferencing and Web conferencing—in an attempt to save time and money.But the tools available had limitations.On a personal PC, video conferencingwas slow due to low bandwidth speedsthat made the video fuzzy. High-qualitysystems were confined to a few videoconferencing rooms. Web conferencing,using audio, text messaging, andPowerPoint, was useful but limited.

Also, people tended to overreactand do all meetings virtually. Since noone had “meeting guidelines,”man-

ExcellenceVolume 8 Number 12 The Magazine of Team Leadership December 2008

The Future of MeetingsU s e t e c h n o l o g y t o b o o s t s a l e s a n d p r o f i t s .

S a l e s a n d S e r v i c e

The Future of RelationshipsMany companies are going into cri-

sis mode. Since air travel and gas costsare high, they’re using video and Webconferencing, as well as the new high-end videoconferencing called telepres-ence offered by Cisco and HP, to savetravel money. However, if their onlymotivation is to save money on travel,rather than enhance communicationand collaboration, then they’re simplycreating another fad. Video conferenc-ing has evolved tremendously, andcompanies need to use today’s technol-ogy to pave the path to future profits—all of which hinge on relationships.

To add fuel to the fire is the fact thatrising travel costs have been headingdown recently due to the global reces-sion, but this is temporary. Increasingglobal energy consumption will comeback strong. Therefore, smart compa-nies are changing how they thinkabout meetings and the new videoconferencing technology, and they’rerealizing that it offers something morepowerful than they’ve had in the past.They are thinking in terms of “visualcommunications” rather than simplyvideo and Web conferencing.

Visual communications heightenthe bond you have with someonewhen you can’t see them face to face. It

TOM HOPKINS & PAT LEIBYProduct Demos . . . . . . . . . . . . . . . . . . . . . . . . . .3BOB LIVINGSTONService Strategy . . . . . . . . . . . . . . . . . . . .4DANA & ELLEN BOROWKACrack the Personality Code . . . . . . . . . . . .4MARK HUNTERMaximize Your Price . . . . . . . . . . . . . . . .5LINDA BISHOPResurrect the Dead . . . . . . . . . . . . . . . . . .6JOANNE S. BLACKIt’s Not About Closing . . . . . . . . . . . . . . .6KEN ROGNERLoyal Customers . . . . . . . . . . . . . . . . . . . .7

MARK SNEIDERConsistent Closing . . . . . . . . . . . . . . . . . .8SHANNON KAVANAUGHProduct Launch . . . . . . . . . . . . . . . . . . . . .8LIZ COBBSales Compensation Plans . . . . . . . . . . . .9JAY FORTEPassionate Performance . . . . . . . . . . . . .10LANDY CHASESales Parasites . . . . . . . . . . . . . . . . . . . . .10DALE L. KLAMFOTHEffective Presentation . . . . . . . . . . . . . . .11GREGG GREGORYWhy All Star Teams Fail . . . . . . . . . . . .12

JIM DILLAHUNTYInvest in Service . . . . . . . . . . . . . . . . . . .12RON KAUFMANService Matters Most . . . . . . . . . . . . . . .13JULIE THOMASMake the Sale . . . . . . . . . . . . . . . . . . . . .14JOHN TSCHOHLService Recovery . . . . . . . . . . . . . . . . . . .14SELESTE LUNSFORD & CRAIG PERRINRev up Revenue . . . . . . . . . . . . . . . . . . .15JOHN HASKELLFive Fatal Mistakes . . . . . . . . . . . . . . . . .16KRISTI FAULKNERWhat Women Want . . . . . . . . . . . . . . . .16

C O N T E N T S

adds dimension to the communication.There’s a reason why you shake someone’shand when you meet them: The more sens-es you involve, the higher the connection.Those companies that can enhance theircommunication, both internally and exter-nally, are the ones who can cause changefaster and stay competitive longer.

Making Visual Communications WorkBefore you mandate that video confer-

encing be the only way of conducing meet-ings, consider the following three principlesof visual communications.

• The need to meet, establish relation-ships, and share information, knowledge,and wisdom won’t go away. No amount ofhigh-tech gadgetry will change that fact.That’s why face-to-face meetings are still thedominant form of meeting and extremely rel-evant, because there is no better way to buildtrust. In our increasingly global marketplace,trust is the glue that createsstrong, successful, and endur-ing business relationships.Those who believe video con-ferencing will end face-to-facemeetings are using “either/or”thinking, which often occurswhen dazzling new technolo-gies first appear. They view thenew thing as destined to totallysupplant the old thing, exceptthat rarely happens.

• Companies that makevisual communications workwill have the new and old coexisting byallowing each to do what it does best. Videoconferencing is a superb tool for saving traveltime and expense, focusing on a structuredagenda, obtaining points of view in real-time,building consensus, and making announce-ments. It’s not good for smoothing out con-tentious give-and-take or handling emotionalor sensitive issues. Fortunately, both virtualmeetings and face-to-face meetings are nowavailable. It’s not either/or anymore.

• In the past, video conferencing requireda big fancy room with expensive equip-ment—that’s not the only option for videoanymore. Many new computers come witha built-in video camera. You can do videoconferencing on a personal laptop fromyour desk, home, or anywhere. The soft-ware is free and comes with your system.And with some computers, you can havemultiple people on at the same time andvideo conference with them all at once.

Goal Determines the Technology RoleThe future of business includes an inter-

dependent world that generates increasingquantities of data, information, knowledge,and wisdom that companies need to com-municate. The key is to develop guidelinesfor determining what type of meeting to

Volume 8 Issue 12

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Copyright © 2008 Executive ExcellencePublishing. No part of this publication may bereproduced or transmitted in any form withoutwritten permission from the publisher.Quotations must be credited.

2 D E C E M B E R 2 0 0 8 W W W . L E A D E R E X C E L . C O M

have. You must look at the meeting’s goal. Before you plan a meeting, ask yourself,

“What is this meeting’s goal? Is it to inform,motivate, inspire, persuade, influence, sell,gain trust, negotiate, gain respect, establishnew relationships, strengthen existing rela-tionships, share information, share knowl-edge and experiences, gain credibility, changehow people think, solve a problem, determinea strategy, or create dialogue?” Thinkingabout the goal for the meeting in this waymakes it easier to decide what type of meet-ing will be best and what technology is best.

Once you know the meeting goal, usethese guidelines.

• If the goal is primarily to inform bysharing data and information, then a meet-ing may not be necessary. It might be far bet-ter to use email, groupware, a wiki, a blog,or an Intranet or Extranet and let people col-lect and absorb the information at their ownrate and in their own time.

• If sharing the informationat the same time with every-one would be best, consideraudio conferencing or web-conferencing as an alternativeto a face-to-face meeting.

• If the information deliverywill primarily be one-way,then an e-conference wouldserve the purpose. If, however,informing involves hands-ondemonstrations or high inter-activity, then a face-to-facemeeting is definitely in order.

• If the goal is to influence, build relation-ships, share knowledge and experiences, gaincredibility, solve a problem, or determine astrategy, a face-to-face meeting is best, but it’snot the only option. High-end videoconfer-encing telepresence systems and satellite-broadcast services that use full-motion videocould help you meet your goals. If all partici-pants have access to broadband connections,web-conferencing offers another attractiveoption. Audio-conferencing could also be aviable option, depending on the number ofpeople and degree of interactivity required.

• If the goal is to gain trust or respect, orto inspire, motivate, persuade, establish rela-tionships, negotiate, or change how peoplethink, then a face-to-face meeting is a must. Ifthis is not possible, then use telepresencevideo conferencing rooms. They typicallyhave three huge curved screens and a fourthscreen above for shared work, custom light-ing and acoustics, and life-size images.

Successful meetings will depend on yourability to leverage old and new tools to buildtrusting relationships that foster communica-tion, collaboration, and community. SSE

Daniel Burrus is CEO of Burrus Research and author of sixbooks, including Technotrends. Visit www.burrus.com.

ACTION: Use technology to improve your meetings.

scheduled to go up? Will the currentmodel be discontinued next year, andwill the new model have many newfeatures? Are there limited quantitiesavailable? Will they earn more and savemore, because of your product so itjust makes sense to start today? Whenyour clients realize that you have theirbest interests at heart—that you’re ontheir side—wanting them to make adecision not because you need to makea sale but because it’s good for them,your sales ratios quickly improve.

Asking for feedback serves two pur-poses: 1) it enables you to monitor yourprogress in helping people make awise decision, and 2) it helps you see ifyour potential client is ready for thenext step—to close the sale.

Two ExamplesTo help you see how the process

works, here are two examples. Studythem and customize the system towork for your product and customers.

Example 1. Here’s an example forthe automobile industry:

FACT: “This hybrid engine has themost power of any made in the U.S.”

This fact is simple and you canhave documentation to prove it.

BENEFIT: “This engine will save youmoney without diminishing the poweryou enjoy with your current vehicle.”

To discover the right benefit, putyourself in your customer’s mind andask “what’s in it for me?” In this case,power is what’s in it for him.

URGENCY: “This engine won’t bean option on next year’s truck, andeven with the smaller engine there willbe a higher sticker price on the newmodel. So, next year you’ll pay morefor the same model, but with lesspower.” Without using high pressure,the salesperson has merely pointed out

the advantage to making a purchasenow. Buying now is clearly in the cus-tomer’s best interest according to thecustomer’s own definition of need.

FEEDBACK: “Since next year’smodel will look and ride exactly thesame, which one would fit your needsand pocketbook the best?”

The answer is rather obvious, isn’tit? With these four steps, the potentialclient should realize that, too, and beprepared to move to the next step inthe system, which would be to discussthe money aspects of the sale.

Example 2. Let’s see how this workswith a DVD system.

FACT: “This particular unit is astate-of-the-art DVD system.”

BENEFIT: “It is the highest qualityDVD available and will give you betterpicture and sound reproduction thananything else on the market.”

URGENCY: “I have just two of theseunits in stock right now. One wasreturned because it was a gift and therecipient already had one. The packagehas been opened, but the unit hasn’tbeen used. However, because it’s beenopened, I can give it to you at a loweramount with the same guarantee.”

FEEDBACK: “Although the unit isnew and never been used, the cartonwas opened. Technically, we can’t sell itas new. Is having that carton openedsomething you can live with, if itwould save you money?”

Creating urgency requires asking forfeedback. If you don’t get feedback,you may never discover the concernsuntil it is too late to address them.

When you get positive feedbackduring your presentation, your closebecomes easier. Your customer is not anopponent to be overcome, but a part-ner to be helped. Even negative feed-back is valuable if it lets you knowwhere your customer stands.

Study and practice the techniques;research your client’s real needs, wants,and concerns; and provide a unique so-lution to your client’s unique situation.

When you use the system properly,the “math” will astound you. FACT +BENEFITS + URGENCY + FEEDBACK= SOLD TODAY, SOLD NOW.

Never give a product demo againwithout presenting the features in thismanner: State the facts, show the bene-fits, create urgency and ask for feed-back. By doing this, you’ll serve morepeople, improve your closing ratio, anddo it in less time. SSE

Tom Hopkins and Pat Leiby are coauthors of Sell ItToday, Sell It Now—The Art of the One-Call Close. Visitwww.tomhopkins.com or call 800-528-0446.

ACTION: Improve your product demos.

Product DemosM a k e t h e m m o r e e f f e c t i v e .

S A L E S / D E M O S

S A L E S A N D S E R V I C E E X C E L L E N C E D E C E M B E R 2 0 0 8 3

by Tom Hopkinsand Pat Leiby

WISE SALESPEOPLE CONSTANTLY LOOKfor better ways to make a point,

win people’s trust, or present theirproducts. We teach an effective proce-dure for product presentations anddemos. Read through the process withyour product or service in mind andmake adjustments in your presenta-tion to incorporate these strategies.

Making this change will increaseyour closing ratio.

Start by breaking down your prod-uct demo into features and benefits.Features are things such as colors, sizes,styles, locations and options. Benefitsinvolve emotions. They are what thefeatures will do for the client—enhancetheir lifestyle, increase productivity,save money, streamline a process.

Present each feature in four steps:First, you state the FACT. Second, showthe BENEFIT. Third, create URGENCY.Fourth, ask for FEEDBACK. Facts andbenefits create the sale. Urgency andfeedback make it happen now.

Urgency for each feature is some-thing that you create. It doesn’t involvebeing pushy or forcing your customerinto a quick decision. Creating urgencyrequires effort and creativity to assurethat your prospect feels a genuine needto make a purchase today because itjust makes sense—not because of anypractice of fear or intimidation.

In our seminars, we create urgencyby offering special investments onproducts that are only valid the day ofthe seminar. It’s the today-and-today-only method. Retail outlets use sales oroffers where they indicate quantitiesare limited to create urgency—or theymake offers for a limited time only.Investment counselors show charts andgraphs of growth potential that isbased on today’s market figures. If theclient wants to earn those returns, theyshould start their program today.

Think about how you can createurgency with your product or service.What are the advantages to your clientsin investing today rather than waiting30 days, 90 days or a year? Are prices

satisfying needs by reliably deliveringpackages to customers the next day.

By how he did what he did, Smithchanged an industry and defined theservice benchmarks; their competitorshad no choice but to follow. FedExconsidered that customers have twosets of needs: hard needs, satisfied bywhat they do, and soft needs, satisfiedby how they do what they plan to do.FedEx knew that, first people needtheir mail, packages, and products toreach their destinations swiftly. In theFedEx model of overnight delivery,satisfying that need is paramount. Itis a need satisfied by what they do.That is the satisfying of a hard need.

FedEx knew that people also needto feel confident, certain, and assuredthat packages would be deliveredwithin the agreed-upon time frame.This need for worry-free delivery (an

emotional need) is satisfied by howthey do what they do (a soft need.)

Relationships with those you serveare based on these two sets of needs:hard needs, satisfied by what you do,(FedEx will deliver your package by 10a.m. tomorrow) and soft needs, thoseintangible, emotion-based needs, satis-fied by how you do what you do(FedEx makes you feel certain thatyour package will arrive the next day).

Customers are often less concernedabout what a product or service deliv-ers and more drawn by how the expe-rience makes them feel. Embracing aservice strategy gives them a reason tostand by you. Differentiate yourself byhow you do what you do. SSE

Bob Livingston, former head of sales at The LiptonCompany, is CEO of REL Communications andauthor of How You Do . . . What You Do (McGrawHill). Visit www.mhprofessional.com.

ACTION: Differentiate yourself with service.

by Bob Livingston

SERVICE IS NOW THE DETER-mining factor in secur-

ing and maintainingrelationships. In troubling times, rela-tionships are tested, and only thosewho serve customers well survive.

Competitive differentiation prevailsin turbulent times. Retailers and sup-pliers who treat their customers andclients badly are feeling the pressure.

Two factors—connection and con-venience—are at the center of any ser-vice strategy. So, pay attention to howyou serve your customers and clients.

Many great companies—FourSeasons, Marriott, Charles Schwab,General Electric, Container Store,Wachovia, Southwest Airlines andApple—are defined by service quality.They use service as a bridge to loyaltyand competitive differentiation. Theyplace their customers first, train theirassociates, monitor their service cul-ture for consistency in performance,and recognize those who serve well.

Three companies are benchmarks inService Excellence: The Ritz-Carltonconsistently ranks at or near the top inguest satisfaction. eBay is one of themost trusted companies for customerprivacy. Saturns are among the top-ranked value-priced cars. These com-panies see service as a differentiator,set their direction accordingly, anddevelop a Service Excellence culture.This determination positions them well.

In these troubled times, those whoembrace a change by how they conducttheir business will achieve a competi-tive advantage. It’s always preferableto be the first to the game, make therules, and bring your own ball.

FedEx Kinko’s is an example of thefirst-adopter theory. In 1971, Fred Smithformed FedEx out of his frustrationwith the service he received whenmailing packages. He determined thatthe time to deliver, lack of reliability,and methods used for shipping wereunacceptable. He realized that assureddelivery of packages was required. Hewas a visionary and a problem-solver.

FedEx became the first company inthe delivery industry to create a busi-ness plan based on understanding cus-tomers’ needs, envisioning futureneeds, and developing an approach to

by Dana and EllenBorowka

TO HIRE THE BEST SALES AND CUSTOMERservice people and keep them on

your team, you need to know whatmakes them tick. We believe the salesand customer service personality codecan be cracked. Personalitytests are a far more reliablepredictor of performance thaninterviews and resumes.

Here are nine ways to usepersonality testing to attractand retain the right sales andservice people.

1. Get the real picture.Using a personality test, you learnabout the person’s ability to work wellwith others, tolerate stress, and solveproblems. You can then make aninformed decision about whether theperson is a good fit for the job andteam. And if you decide to hire the per-son, you’ll know how best to managehim from day one.

2. Help them be all that they can be.Every sales and service person hasstrengths and weaknesses. Use anobjective measure to pinpoint the goodand bad, and then place them in theright position and coach them.

3. Take me to your leaders. Person-ality testing gives the manager andsales or service team a common lan-guage about how they like to interact

and helps you train future managerson how to get the best out of the team.

4. Know how to manage difficultpeople. Use personality assessments todiagnose potential sources of work-place conflict. The best way to dealwith a problem is to prevent it.

5. Get everybody to play nice. Peo-ple often get frustrated with co-work-ers and wonder why everyone doesn’tact like them. Using personality pro-files, managers can coach employeeshow to interact better with their peers.

6. Treat co-workers the way theywant to be treated. Using personality

assessments as the basis forteam-building exercises canget everyone to have a healthyrespect for other ways of seeingthe world.

7. Make managers betterleaders. When managersknow the personality traits oftheir people, they can better

motivate teams, communicate change,and delegate authority.

8. Pick better teams. Before youassemble a sales or service team, assessthe strengths and weaknesses of teammembers. This can be the differencebetween a productive team that getsthe job done and one that pulls apart.

9. Set people up for success. Youmight hire the right employees but putthem in the wrong job. Understandingpreferred work styles improves reten-tion and productivity.

Personality assessments help you tohire great people and keep them! SSE

Dana and Ellen Borowka are coauthors of Crackingthe Personality Code. Email reception@lighthousecon-sulting.com or call 310-453-6556, ext 403.

ACTION: Use personality assessments.

4 D E C E M B E R 2 0 0 8 W W W . L E A D E R E X C E L . C O M

S E R V I C E / C U L T U R E

P E O P L E / R E T E N T I O N

Service StrategyM o n i t o r y o u r c u l t u r e .

Crack the Personality CodeAttract and keep sales and service people.

rolled into a price increase discussionwith a customer who is centered onraw costs. Whenever you present aprice increase, always begin by askingthem questions about the benefitsthey receive from what you providethem. This allows the customer to bet-ter understand the importance of youand your company to them. Encour-age them to explain how you impacttheir business. Get the customer toshare with you something specific and unique about how you help them.Then, ask them follow-up questionsbased on what they tell you. Theirresponses will reiterate the fact thatyou and your company arean important asset to them.Once you achieve this dia-logue, you can then shareyour price increase. Becausethey realize how crucialyou are to their success,they’ll be less likely to raise objections. You’llachieve the value/benefitequation and the higherprice you deserve.

By focusing your customer’s atten-tion on the value/benefits your prod-ucts or services offer, you help themsee that they need to continue in busi-ness with you because of how youcontribute to their success.

The Price Increase Switching GameWe all deal with price increases,

and face belligerent customers whowon’t accept the price increase andthreaten to switch to a competitor. Ifind that when customers are pre-sented with a price increase, they willonly change to a competitor about 10percent of the time. The reason is sim-ple: the cost of switching to a newsupplier is too great. When a customerthreatens to make the move, rarelyhave they thought through whatthey’re really saying. Their goal is toget the weak-kneed salesperson tocave in and give them a discount, andmany of them are successful in secur-ing on-the-spot price reductions justbecause of the forcefulness of theirveiled warning of switching.

When you are presented with thethreat of a customer moving to anoth-er supplier because of a price

increase, focus on the cost of the con-version. The switch is never as easy asthey think it will be. Look at whatthey’ll have to go through to set upand start receiving from a new vendor.Now, take this and multiply it by four.The reality is that the customer is notjust setting up a new vendor, but alsophasing out an old one in addition todealing with the wide-range of conver-sion issues that inevitably arise.

To better sense the risk involved inmaking the change, think about thehassle you go through when you try toalter a flight on the same airline oryour cell phone plan even if you staywith the same carrier. Consider what isnecessary to adjust your auto insur-ance or to reschedule medical tests.Think of the added work you’d have ifyou were not just changing plans, butalso changing companies. You’d thinktwice about making a switch.

Now think about the work requiredfor a business to change toanother supplier. It’s easyfor a customer to saythey’re going to drop youand go with someone else,but at that point, it’s onlytalk. Threatening you does-n’t cost them anything—carrying it out actually will.The decision to switch isnot just about the absolutecost. It takes time to make a

switch, thus carrying an added ele-ment of risk.

The next time your customersthreaten to leave you, research what itwould cost them. Next, figure out howlong it would take for them to get apayback, let alone ROI. In most cases,it will be hard for them to realize anyreturn just from switching because of aprice variance. Even if your customerscould achieve a ROI, could they guar-antee the other company’s pricingwouldn’t change? Could the other sup-plier guarantee the same level of ser-vice you provide? Could the othercompany provide the same sales lead-ership that you bring to them?

Usually, the threat of customers tochange suppliers because of priceincrease dies quickly when they stopto consider the cost of making theswitch. Once they see that there is moretime, effort, and money at stake, thechange is less appealing. So, do yourhomework, and show them the switchis not worth it. SSE

Mark Hunter, “The Sales Hunter”, is a sales consul-tant. Visit www.TheSalesHunter.com.

ACTION: Apply the value/benefit equation.

by Mark Hunter

PRICE INCREASES OCCURfaster now, driven in

part by the rising costs oflabor and materials.

However, the main reason for priceincreases could stem from the value ofthe products or services you’re selling—not the cost associated with them.Sadly, many companies are leavingbillions of dollars of profit on the tablebecause they base their pricing oncost, not the value/benefit equation.

Why should anyone pay more forsomething than the amount incurredto produce it? For many companies,this seems like a logical question. Theydetermine the cost of their goods andservices from a cost-plus model whichsays that the price you charge shouldnot be out of line with what it costsyou to produce it. However, if this wastrue for all items, we’d all be paying alot less for tickets to concerts andsporting events, as well as computersoftware and DVDs. When you seethat the real profit is made by pricingtheir items according to the value/benefit of what the customer is goingto receive from your product or ser-vice, your bottom line will reflect it.

The Value/Benefit EquationI find that the best companies more

confidently price their products basedon the value/benefit equation. Thevalue/benefit equation is built onunderstanding the benefits that cus-tomers will realize from using yourproduct or service. To discover these, asalesperson needs to ask them ques-tions during the sales process to ascer-tain how their product or service willbe used. Do not equate value to low-price. The best value is many times thehighest price (or at least what appearsto be the highest price initially). Take,for example, the price to fly from NewYork to Los Angeles. You might take abus across the country for less money,but the value/benefit equation wouldbe low because of the time it wouldtake. Flying would cost more initially,but provide you with far more timeonce you reached your destination.

As a salesperson, never be steam-

Maximize Your PriceU s e t h e v a l u e / b e n e f i t e q u a t i o n .

S A L E S A N D S E R V I C E E X C E L L E N C E D E C E M B E R 2 0 0 8 5

M A R K E T I N G / P R I C I N G

follow-up call. Include your businesscard and mail the letter. A letter is bet-ter than email or a phone call for ini-tial contact. Customers get many callsand e-mails but few letters. Everyoneknows it takes effort to write and maila letter. People respect effort, and theyappreciate it. Thus, letters stand out.

Step 4: Follow-up. Learn when theletter will land on the ex-customer’sdesk. Call within 48 hours of thearrival time. If your target picks upthe phone, great! Talk to them. Treatthem as you would a new prospect,and try to get an appointment. If youget voicemail, leave a message.Briefly repeat what you said in theletter. Keep calling. After you havecalled several times, tell them if theywould like you to stop calling all theyhave to do is pick up the phone andlet you know they’re not interested.

Step 5: Go on appointments. If theyagree to see you, do what you normal-ly do during a sales call with a newprospect. Tell them about your compa-ny. Explain how you can help them.

At the end of the call, smile and say,“We’ve worked with you in the past,and would love to work with youagain. How can we make that happen?”

This plan gets results. It’s worth theeffort to resurrect dead customers.Many of them will come back to lifewith a little nudging from you. Often,reviving them is quicker and easierthan expected. Some dead customersaren’t even dead—they are just hiber-nating, and one phone call is all ittakes to awaken them! SSE

Linda Bishop is an author, speaker and President ofThought Transformation. Call 770-846-3510 or emaillindabishop@thoughttransformation.com.

ACTION: Recover your dead accounts.

by Linda Bishop

FOR MANY YEARS, ONE OFMike’s best customers

was a large bank. He lovedthem and thought they loved him, too.

Then, sales began to slip. The bankdidn’t call as often. He noticed, butdidn’t react. He didn’t ask what wasgoing on, or why the situation hadchanged. No one complained aboutquality or price, so Mike assumed thesituation would turn around.

One day Mike realized that this cus-tomer was dead. Worse, he had killedthem with neglect and indifference.

This story has a happy ending.Mike worked hard and resurrected hisdead client. He continued to do busi-ness with them for the next decade.

Everyone has dead customers andresurrecting them can be the shortestroute to new sales. Dead customersrepresent qualified leads. You alreadyknow they buy what you sell. Often,they will buy it from you a secondtime if you go out and re-sell them.

Learn from Mike’s mistake. Followthis easy five-step plan for bringingdead customers back to life.

Step 1: List dead accounts. List yourdead accounts and make notes onwhat you know. Why did the accountdie? Was there a problem with quality,pricing, or personnel? Was neglect thecause? For now, don’t worry about theodds of resurrection. Just make the list,read it once, and put it aside for 24hours. Let your brilliant subconsciousmind work on the problem.

Step 2: Find out if the contact iscurrent. After a few days, get out thelist and make calls. Talk to reception-ists. Tell them you’re updating files—the truth—and you want to ensureinformation is current. Get the nameof the buyers and their title. Confirmphone numbers and email addresses.Be friendly, upbeat, and positive.Often you discover the old buyer isgone. The slate has been wiped clean,and you’re selling to someone new.

Step 3: Send the buyer a letter.Whether you know the buyer or not,write a letter consisting of three para-graphs: explain why you’re contactingthe buyer; explain how you can help;thank the reader for their considera-tion and tell them when to expect a

by Joanne S. Black

IOFTEN HEAR THE COMPLAINT,“My salespeople can’t

close. We need a trainingprogram on closing the sale.”

Save your money. It’s never aboutclosing. That’s the symptom. The prob-lem is the neglect the salespersonshows to all activities neededduring earlier parts of thesales process. Poor closing islike back pain. You canstretch and put heat on anaching back, but unless youtreat the cause of the pain(the problem)—a pulled mus-cle or degenerating disc—you’ll still have back pain.

The closing process begins withintroductions. How did you meet yourprospect? Were you introduced by atrusted source? Were you pre-sold?Did you meet the prospect at a tradeshow, through cold calling, or througha web or direct-mail inquiry? Theclose rate will vary dramatically basedon how the client was sourced.

Start with lead sources. If salespeo-ple are introduced through a referral,the close rate is at least 50 percent, andmay be 70 percent or higher. Leadsfrom other, less-direct sources have a 1to 3 percent close rate. Traditionally,sales managers don’t examine thesource of leads as an important link toclosing new business. I invite you to

examine how you source leads as thefirst step to increase your close rate.

Ask questions. You can enhanceyour close rate by understanding whatyour client really needs. What clientsthink they need and what they reallyneed are often different. Clients rarelyunderstand the true cause of theirproblem. Rather, they reach for the vis-ible answer—the symptom. Treatingthe symptom won’t solve the problem.

Asking thoughtful, provocative, andprobing questions boosts your closerate and the amount of the sale. Thescale of the project increases, and the

client gets a solution that willactually solve his problemand create demonstrablebusiness results. Your clientlooks good, and you’repoised for more business.

Give the prospect a task.Never leave a meeting or enda phone call with a list ofthings for you to do but noth-

ing for your prospect to do. Everyoneneeds an assignment. Without one,your client isn’t invested in the solu-tion. You may ask him to provide youwith materials to review, to conductresearch, survey his internal team, orconnect you with internal resources.Make sure your prospect has a task.

Always leave your meeting withanother meeting scheduled. If yourprospect is noncommittal, you havelikely been too quick to jump to a pro-posed solution. You haven’t closed. Goback. It’s never about closing. SSE

Joanne Black is an expert on referral selling and founderof No More Cold Calling. Email joanne@nomorecold-calling.com or visit www.nomorecoldcalling.com.

ACTION: Boost your closing ratio.

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It’s Not About ClosingTreat problems, not symptoms.

Resurrect the DeadFive steps to sales recovery.

tions. Think it through, don’t ask ques-tions that you can learn on your own(from the customer’s website, fromindustry sources, or from your networkof reps)—you will just look stupid. Askquestions about the impact of currentconditions, about their competitivepressures, about their specific chal-lenges. Sometimes your companywon’t have a solution, but a futuredevelopment or new product may. Themore you know, the stronger your rela-tionship can be and the more importantyou become to the customer.

Your job is to create value! What isof value to each of your customers isalso different for each of them. If shar-ing the latest technology in your indus-try is important, be the techie! Ifhelping with merchandising of her

retail store is important, be the expert. Ifhelping create an ad campaign isimportant, pull your resources togetherand be the ad-person. If you haveexpertise within your company that canhelp your customer, know where it isand make it available to your customer.

Align your value offerings with thecustomer’s goals and dreams: This iswhere the rubber meets the road! Youtake what you learned by asking intelli-gent questions and then spend timematching your company’s offerings toyour customer’s needs. This is a mar-riage, and you are the matchmaker. Youknow the customer’s goals and dreamsand every one of your company’s prod-uct and service offerings. Your job is tobring it all together.

Let’s demo: Show that you have thecorrect answer through demonstrationand presentation of your product orservice. A successful “demo of solu-tion” is different for each of us, andthis is the part that most of us do well.Our Marketing Department and

Product Managers have given us all ofthe features and benefits we are sup-posed to present for each of the prod-ucts or services we sell. Hopefully, wehave also learned to first ask the rightquestions so that we are presenting thevalue that applies to this specific cus-tomer and not losing the customer in abunch of inane facts that she doesn’tcare about. The most powerful demon-stration of value is the testimonial of acurrent customer whose problems youhave solved. The recipient of your pre-sentation has to know the customerwhose testimonial you are using or youhave to give background. Showing aprevious success is the most powerfulway to show your product or servicecan get the job done!

Timing the close is everything;Know when to close and ask for theorder. So many sales are lost becausethe salesperson doesn’t know when tostop talking and ask for the order. Hereare some clues: Any question that thecustomer asks about availability, modelchoices, etc. is a clear signal, say yes oranswer the question while you arepulling out your order pad. A positivestatement about the testimonial thatyou presented is a “buy signal”, pullout your order pad! If the buyer asksyou to repeat your demo, pull out yourorder pad and then do it! Any and allbuy-signals are your signal to stop talk-ing and pull out the order pad!

Your feedback and follow-up areyour future! Doing call reports, keepingrecords, and following up faithfullyhelp build loyalty. Customer manage-ment systems and tools make the jobeasy. Now you can quickly access all ofthe information you recorded on previ-ous visits. Now your calendar remindsyou of the important dates in your cus-tomer’s life. Nothing builds loyaltyfaster than building friendship, andnothing helps more than a programthat reminds you of these dates. Re-member birthdays and anniversaries,business history dates, and hobbiesthat your customer enjoys. With yourbusy lives and hectic schedule, tryingto build relationships with more newcustomers and facing daily pressures,you need to invest in the tools thatmake you more effective.

Loyalty revolves around trust andrelationships! You build loyaltythrough a process and a set of steps.There are no short-cuts: customer loyal-ty = success in selling. SSE

Ken Rogner is senior sales management consultantand sales educator. Call 708-205-6721 or email 3rre-sources@comcast.net.

ACTION: Tweak your LOYALTY process.

by Ken Rogner

TOUGH TIMES SEPARATE THEplanners from plodders

and these are tough times inthe sales game! In these economictimes, the sales people who are creat-ing and holding onto loyal customersare the ones who first put the extraeffort into knowing and internalizingtheir customer’s goals and dreams.You can’t build loyalty in customersunless you know and understandwhat your customers really value andtoday—loyalty equals success.

We know that just satisfying a cus-tomer’s needs doesn’t cut it anymore!We know that getting to the next levelof customer loyalty is the key but dowe know what makes it happen?

Let’s turn loyalty into an acronymand use it to find the process for build-ing loyalty in your customer base:

Learn about the market: Do a mar-ket analysis using SWOT (strengths-weaknesses/opportunities-threats) orwhatever method you prefer but digout the details for your industry. Knowwhich geographic territories are strongor weak, which competitors are under-funded or vulnerable, where your com-pany’s strengths and weaknesses lie.Then study trends. Know the economicand social trends that affect your mar-ket, know the demographic and regula-tory trends and how they affect yourcustomers. Know about new producttrends and developments. Does weath-er and climate impact your industry?How about fuel prices? The devil is inthese details and you need to know allthe details to make intelligent plans.Brainstorm with the folks in your office,with your teammates, with your boss orwith the other sales people in yourcompany. Doing this research will payoff big-time at the end.

Open our eyes to the customer’sbusiness: Unless we put the extra effortinto knowing what our customer’sgoals and dreams are, we can’t findavenues of help. If we want loyalty, wehave to give of ourselves and focus ourenergies on helping our customer growand prosper. Our dreams only happenif our customers achieve their dreamstoo! What is the best way to learn whather goals and dreams are? Ask ques-

Loyal CustomersS e l l i n g w e l l i n t o u g h t i m e s .

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perspective. When you find an articleabout something related to theprospect’s world, send it off to himwith a link to the article and tell him“I thought you might find this inter-esting and helpful.” Attend a tradeshow and send him the “top fiveinsights” you glean—and suggest thatsome ideas might be helpful. Makehim aware of competitive activity andoffer some perspective on ways tomeet this new threat.

4. Don’t give up. Not giving up isthe key to winning more business.Many salespeople get discouragedwhen their prospects don’t call themback in a few days after the initialmeeting. The prospects’ world getsbusy, and you are not their number-one priority. You need to nudge yourway up the priority scale by beingthere when they make a decision.

5. Keep yourself fresh. When you’retalking with prospects following meet-ings or exchanging emails about somevalue-add you’ve pushed their way,use that time to talk about the newthings at your company to keep theprospect excited, energized, and moti-vated to want to work with you.

Closing business isn’t a short-termadventure. Opportunities are neverready-made. It takes hard work, cre-ative thinking, and value-added persis-tence to make prospects take and keepnotice of your compelling value.

Put energy in upfront to open doorsand get meetings, and put energy intothe back-end to win the prize! SSE

Mark Sneider is Managing Director of RSW, U.S. anoutsourced lead generation/business developmentfirm. Visit www.rswus.com.

ACTION: Close sales more consistently.

by Mark Sneider

THE KEY TO GETTING GREATsales meetings is consis-

tency—of methodologyused to construct the reach-out, con-sistency of messaging pushed out toprospects across different media, andconsistency of being there early andoften, since you never know when aprospect will have a fresh need.

Finding qualified leads and con-vincing prospects of your value takestime, patience, and persistence.

I find that there is usually a lot ofenthusiasm, energy, and excitementleading up to and coming out of asales meeting. But then salespeople getdistracted with managing accounts,putting out fires, dealing with person-nel issues. They don’t stay with theprospects well enough to close them.

Unless an RFP is in hand or a pro-posal is a designated next step, closingthe sale takes as much effort as open-ing the door. You have to stay on theradar and show the prospect that youare there to add value to their world.

Take Five StepsFollowing your initial meeting with

your prospect, you can improve yourchances of winning new business bytaking five key steps:

1. Re-connect ASAP. Soon after themeeting, follow-up to see how themeeting went and if there are anyunanswered questions that can beaddressed. We often call into theprospect following the meeting to seeif the meeting met the prospect’s expec-tations, and if there was anything leftunanswered that we can address.

2. Be there. Find reasons to stay infront of your prospect because if youdon’t, someone else will. You neverknow when the prospect will be readyto make the move to start the project,move on some other project, or beready to make a change. While pro-spects might be fine today, tomorrowthey might wake up and have theirboss breathing down their neck, or findtheir budgets cut and need better effi-ciencies, or simply tire of the status quo.

3. Add value. Simply being thereisn’t enough. You need good reason toconnect—and I’m talking aboutinsights, ideas, new thinking, fresh

by Shannon Kavanaugh

YOU’VE DONE YOUR HOME-work and created com-

pelling, accurate, andrelevant product positioning for yournew product. You’ve examined thecompetition and evaluated yourplace in the market. You know whatmakes you different or bet-ter than the alternative.You’ve analyzed your profitand margin goals, and creat-ed pricing that avoids chan-nel conflict. You understandyour potential buyer andtheir behavior. Good work!

You are now ready forlaunch—to the right target,with the right message, and the rightprice. You only get one launch! Followthese five steps to ensure success:

1. Remember the five Ps: • Product: Determine your product

brand strategy (name, positioning,messaging). Focus on differentiatingfeatures! Treat your service like a prod-uct. Make it tangible. Give it a name!• Packaging: Consider what your

packaging must do (continue to “sellfrom the shelf” or validate the valueof the purchase after the transaction). • Place: Look to new channels and

distribution options when you havesomething new to talk about. But, donot forget to launch to your existingcustomer base first!

• Price: Set an introductory price toentice early adopters to try your newproduct. Ensure that your customersunderstand the deal they’re getting.• Promotion: Determine the best launch

vehicles to use (advertising, direct mail,email, events, PR, telemarketing, otheronline options); and most compellingoffer for your prospects at each stage inthe buying cycle (newsletter, whitepaper, webinar, discount, add-on, trial,demo). Marketing campaigns needvariety, frequency, and consistency.

2. Build a promotional schedule.This gives visibility into the up-front

work required, shows theactivity you can expect dur-ing each week of promotion,and validates that your plansare realistic, given resources.

3. Itemize your budget.Include all fees for each pro-gram planned. This detailwill help you manage closelyto your budget, and evaluate

trade-offs should your target budgetnumber require further negotiation.

4. Evaluate your ROI. Documentthe reach, frequency, and projectedresponse rate for each vehicle you’veidentified to arrive at a potential ROI.Because response rates vary and relyon various factors, provide both con-servative and aggressive projections.

5. Secure management and teambuy-off. Before executing your plan,present your strategy to your team andget buy-off. A team that believes in thestrategy will execute it as planned. SSE

Shannon Kavanaugh is CEO of Go-To-MarketStrategies. Visit www.gotomarketstrategies.com.

ACTION: Succeed in your next product launch.

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Product LaunchTake five steps to succeed.

Consistent ClosingYes, you can boost your sales.

divided into four stages with the typi-cal job roles needed to succeed in thatstage: Stage 1—Early Adopters:“Hunters;” Stage 2—High Growth:“Specialists;” Stage 3—Penetration:“Account managers;” and Stage 4—Saturation: “Farmers.”

Once you determine the lifecyclestage, review your customer-facingroles and include any that have clearand measurable influence over cus-tomer behavior, and that you are will-ing to offer at least 15 percent of on-target earnings (OTE) or target totalcompensation (TTC), as an incentive.Consider roles from lead generationthrough customer servicewherever you have quantifi-able metrics for success. Tomaximize their motivation,measures or goals should beclear and under control ofthe person responsible.

2. Define key elements ofthe compensation plan foreach job role. These are thesummary-level items im-portant for staff role align-ment and benchmarking pay such asthe on-target earning (OTE) or targettotal compensation (TTC), mix, andupside for each job role. TTC is thebase salary plus incentive compensa-tion at 100 percent of goal. Mix is theratio of salary and incentive relative toyour TTC. For example, a 60:40 mixmeans that your base salary is 60 per-cent of TTC and your incentive is 40percent of TTC. In establishing theTTC and mix for a job role, considerthese factors: market pay, budget,equity across plans, scope of job, typeof sale, and required experience. Upsideis the extra earning potential for thosewho exceed quota. Nothing is moremotivating than getting to the next tierof commission rates.

Use a relevant mix and upside foreach job role. Consider that the greaterthe influence persuading the customer,the higher the variable incentive com-ponent should be. Generally speaking,the “hunters” on your team who arepursuing new markets with new prod-ucts should be highly leveraged with50 to 70 percent of their TTC consist-ing of incentive pay, and upside poten-tial for incentive being twice as much

as it would be at 100 percent. Thosewho sell existing products to existingcustomers should have less leverageand upside potential.

Next, clearly define performancemeasures and goals. Your plans shouldhave two or three tangible measures,such as bookings, orders, or new cus-tomers. Design the plans to encourageteamwork. Define specific creditingterms, measures, and payout timing.

3. Model your costs—know yourcost exposure. Nothing is worse thansigning a huge commission check as aresult of a poorly designed plan. Sureyou are happy to reward a star whohas earned it, but it is painful to spendit because of a loophole. To exposethese costs, you need to model incen-tive costs at varying levels of attain-ment. Accurate cost modeling enablesyou to check for full allocation of quo-tas and see your incentive cost of salesin advance. In a complex selling

model, you need to look atthe overall costs for all jobroles, including overlay orsupport roles. Modelingcosts enables you to com-pare different trends inyour sales cycle.

4. Produce your plandocuments. Since these doc-uments drive strategy, theymust be clear and motivat-ing. The value of a great

plan can get lost in a poor document.Terms and conditions should be well-defined and aim for consistency ofpolicies and definitions across roles.Your plans are contracts and should becirculated among key stakeholders andyour legal department and be clearand simple so that sales reps knowtheir goals and priorities.

5. Implement the pay system. Onceyou communicate the plans, followthrough with payment and reporting.There should be no confusion on theamount to be paid and the time that asales rep receives the payment. Late orinaccurate payments are demotivating.

Give the reward soon after theachievement to reinforce the connec-tion between the behavior and theincentive. Also provide frequent feed-back so that your team can modifybehavior to achieve the goals.

Use these tips to create a strong salesincentive plan that drives your strategyand motivates your team. SSE

Liz Cobb is CEO and founder of Makana Solutions, acompany focused on sales compensation solutions.Visit www.makanasolutions.com.

ACTION: Drive strategy with sales compensation.

by Liz Cobb

THE FOUNDATION OF A SUC-cessful strategy is an

effective sales incentiveplan—one that is clear, motivating,and aligned with goals. This is yourmost powerful lever for communicat-ing your strategy. Compensation isvital to attracting and retaining thebest people and achieving your objec-tives. Yet I often see plans that arecomplex and unclear, leaving salesteams confused and unsure of what isexpected of them. Incentive compen-sation plans will undoubtedly drivesales team behavior but make sure yourplans drive it in the way you intend.

Managers who create sales incen-tive plans often are not well versed inthe best practices for good plandesign. They also get bogged downusing spreadsheets and word process-ing tools and lose sight of the big pic-ture, making it even more difficult forthe executive leaders to gain visibilityinto how this complex web of incen-tives will support business strategyand promote teamwork.

Take Five StepsHere are five steps to help you

maximize your incentive investment,motivate your sales team, and reachyour strategic goals.

1. Identify the job roles you need tosupport your go-to-market strategy.Review your job roles at least once ayear. As your company grows andchanges, carve out roles for a subset oftasks. A regular review of each role toexamine where employees spend theirtime and what motivates them willhelp you identify when you shouldcreate a new job role. Two other keyfactors to consider include where yourcompany stands in its customer-adop-tion life cycle; and the customer-facingroles that are needed for success. Forexample, if your company is early inthe life cycle, then market share mightbe the most important consideration.In that case, fostering “hunter”-typesales behavior, which will win newbusiness, is a higher priority thanencouraging “farming,” which willcultivate existing customers.

The customer-adoption life cycle is

Sales Compensation PlansD r i v e s u c c e s s w i t h m o r e e f f e c t i v e i n c e n t i v e s .

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good at. The more an employee usesthese talents in his role, the more pas-sionate he becomes about perfor-mance. If an employee is not suited toor dislikes his role, his performancewill suffer. Realign employees to rolesthat are a better fit for their talents.

3. Give employees a problem orproject to handle. Show that you trustpeople by giving them a problem orproject to manage, solve, or complete.This encourages ownership, engage-ment and passionate performance, solong as the project or problem is inthe employee’s talent area. Besidesgetting the problem or project offyour desk, it activates employees tostep up and contribute. In their talentareas, employees are capable of moreperformance than they currently offer.

4. Talk about the future. How will-ing are you to perform in a great way

if you do not know where your job orcareer is going? Would you commit toa company or manager if you nevertalk about your future? Activelyinvolve employees in discussionsabout their futures. Career conversa-tions keep employees connected.

5. Commit to having fun. Peoplewant to have fun at work. They wantto be part of high-energy and dynamicenvironments that celebrate, build rap-port, and connect. Host lunches, themedays, fun programs, community eventsand other things to keep employeesinterested, excited, and performing.

To be passionate performers, peopleneed connections—mind and heart. SSE

Jay Forte is a speaker, consultant, founder ofHumanetrics, and author of Fire Up Your Employeesand Smoke Your Competition. Call: 401-338-3505 orvisit: www.humanetricsllc.com.

ACTION: Make meaningful connections.

by Jay Forte

THE MORE CLOSELY PEOPLEare connected to their

roles (they like what theydo) and to their managers (strong rela-tionships) the better they perform.These connections are the powerbehind passionate performance.

Today, service is king; service eventsare passionate or connective events.

The more passionate a customer isabout a brand, product or company,the more he buys. The more passion-ate a person is about his work and hismanager, the better he performs.Feeling connected is the key to ignit-ing passion; by looking at connectionsyou see how to make the right changesto drive performance and results.

Today, managers must inspire andengage to create powerful connectionswith their employees. Performance isbased on these connections.

Many management methods needto change to ignite passionate perfor-mance and connections. No workplacelikes massive change, even if thechange is for the better.

Implementing incremental changescan yield exponential results. Considerthese five incremental changes:

1. Spend time with each employee.This builds personal connections.People quit people before they quitcompanies. When personal connectionsdon’t exist between managers andemployees, people are less loyal andcommitted and perform less. Take anemployee to lunch. Spend five minutesbefore the day starts or after the dayends just catching up. Ask questionsthat indicate your employees’ values,interests and talents. The more youknow about them, the stronger you canmake your connection to their roles.

2. Match the employees’ talents totheir role. The closer the employee’snatural thinking (talents) matches thethinking required in his role, the morecapable he feels and the greater hiscontribution, effort, and performance.To assess employee talents, access aquestionnaire like Strengthsfinder 2.0by Tom Rath, and have each employeecomplete the questions. This helpsintroduce the language of “talents”and helps all employees learn andarticulate what they are intrinsically

by Landy Chase

SALES PROFESSIONALS PASSthrough three stages—

Larvae, Termite, andParasite—and in each stage theyassume a different persona.

Sales Larvae are neophytes. Larvaeare soft, sightless, and leglessindividuals who, due to lackof knowledge and experi-ence, fumble around blindlywithin the cocoon of theirsales territory. They haven’tyet mutated into full-fledgedsalespeople.

Sales Termites have thetools and skills to work theirway through tough sales barriers. Ter-mites drive the growth of the business,and they are relatively easy for thecompetent sales executive to manage.

Sales Parasites stop calling on newaccounts and start living off of currentcustomers. Incapable of foraging forfood, they draw blood and nourishmentin the form of a paycheck from the hostemployer. If they have tenure, peerrespect, experience or knowledge, youtend to cut them some slack and letthem feed off of the company.However, tolerating this situation andhaving a different set of rules forParasites sends a poor message: “Wehave two sets of standards—one forour Parasites, and one for everyoneelse; we don’t hold people accountable

for results; becoming a Parasite is areward for seniority; if you stayaround, you can be a Parasite.”

You must hold your salespeopleaccountable for new business results.

Four SuggestionsHere are four suggestions:

Introduce a two-tiered commissionplan that pays a higher premium onnew business and a reduced commis-sion on work from existing customers.This puts the focus on finding newbusiness. Parasites may protest or

threaten to leave the company,but stick to your guns.

Tie rewards and recognitionto developing new accounts.Lavish praise and reward onthose who focus on new busi-ness. Also, tie the compensa-tion plan to the profitability ofthe business your reps sell.

Introduce accountabilitygoals for new account growth. Givefinancial incentives for meeting new-business goals. Introduce negative consequences for failure to meet mini-mum objectives. Parasites won’trelease their grip on their host unlesspain is applied to the source of thefood supply.

Don’t allow your Parasites to holdyou hostage. Rarely does a companysuffer a big decrease in business by thedeparture of Parasites. If they simplymaintain their customer base, yourbusiness will deteriorate. SSE

Landy Chase speaks on advanced selling and salesmanagement topics. Visit www.landychase.com orcall (800) 370-8026.

ACTION: Get rid of your sales parasites.

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Passionate PerformanceIncremental changes, exponential results.

Sales ParasitesG e t r i d o f t h e m .

incorporate their answers into yourcontent. If you plan to cite metrics, becertain the audience respects thesource. Do not use jargon, Dilbert-speak, or buzzwords. They are allinstant turnoffs. Avoid unnecessarydetails; you can go into them if askedduring the Q&A or later.

Plan the ending. If you are convey-ing information, state your key pointssuccinctly. If you are presenting apoint of view, summarize the reasonswhy it is sound—from that audi-ence’s perspective. If you want theaudience to take action, touch on allthe reasons why they will get a payofffrom it and tell them what to do next.

4. Choose your visuals.Visuals are appropriate insome situations, such aswhen you are presentingcomplex material. Theymay not be needed if yourmessage is intended toinspire and motivate. Inthose cases, the audience’sfull attention should be onyou. Whatever your choiceof visuals, don’t let themupstage you.

Do not darken the room. This willkeep the audience from seeing youshow your passion for your message.What is more you cannot see the audi-ence in the dark and will not be ableto adjust your delivery as needed.

Don’t overuse PowerPoint. Keepthe graphics simple. Do not overloadthe slides. For each slide, use a maxi-mum of four lines of four words each.Do not use the visuals as cue cards.Speak to the audience, not the visuals.

A simple flipchart often worksbest. Stand to the right, turn eachpage with your left hand, and turnyour attention back to the audience.Give the audience time to see what’son the page, then continue talking,pointing to each item with an openleft hand as you discuss it.

5. Rehearse with realism. Do notcount on the power of your positionto get the audience’s cooperation. Youmust persuade the audience to acceptyour viewpoint; and, to move them toaction, you must inspire them.

If you want to inspire a group, youmust come across as credible, confi-dent and likable, someone who shares

the audience’s values and feels theirpain. Put passion into your message.Show that you care deeply. Createsome energy! The audience will shareyour enthusiasm.

You can’t express passion if youspeak from a script. Practice to thepoint you can speak spontaneously.This takes serious rehearsing. Use yourvisuals, rehearse with co-workers whoplay the role of audience and give youfeedback on how well you come across.

Rehearse your body movement aswell as content. Get out from behind thelectern since it’s a barrier between youand the audience. Let your whole bodyenliven your presentation; the larger theroom, the greater the body movement isneeded. Gesture decisively but natural-ly to make a point. When you are notgesturing, drop your hands at your sidecomfortably. Do not use the “fig leaf” or“parade rest” posture; rather, relax youropen palms at your side. Take a breath

after each thought to pre-vent yourself from speakingtoo quickly. Vary your voicelevel, use dramatic pauses,and use your eyes effective-ly. Do not look down at thefloor or at the back wall orscan the room. Instead, lookat one audience member asyou say a phrase, breathe,and then look at another.This helps you connect with

the audience and reduces any anxiety.Breathing naturally also helps reducenervousness.

Looking at individual faces will helpyou gauge how the audience is reacting.Are they looking interested? Expand onthat point. Do they seem puzzled?Simplify what you’re saying or use afamiliar analogy. Are they looking bored?Shake things up by asking a question.

Rehearsal pays huge dividends. Themore often you present, the shorter therehearsal time that is needed.

6. Prepare for the Q&A. With a smallgroup, invite questions as you present,particularly if it is a planning meeting.With a larger audience, answer ques-tions at the end. Rehearse the Q&A aswell. Identify questions likely to beasked. Practice delivering succinct,compelling answers that tie back toyour main points. Use the last questionas a way to wrap up what you’ve said,express your passion for your idea,and ask people to take action. SSE

Dale L. Klamfoth is VP of Communispond, providingcoaching and training in sales, presentations andcommunications skills. Visit www.communispond.com.

ACTION: Make a favorable impression.

by Dale L. Klamfoth

LEE IACOCCA SAID: “YOUcan have brilliant ideas;

but if you can’t get themacross, your ideas won’t get you any-where.” I offer some tips to help youget your ideas across. They will serveyou well in any situation, whetheryou meet with your team, make aproposal to management, or speak atan industry conference.

1. Identify your goal. What are youseeking to do? Present information tothe audience? Persuade them to yourpoint of view? Motivate them to takeaction? Have a clear goal in mind. Toget a firm fix on what that is, completethis sentence: “When the meeting isover I want the audience to . . . .”

2. Analyze the audience. Learneverything you can about who will bethere. Determine their role and func-tion. Try to identify their understand-ing of your topic. Knowing this willprevent you from talking down tothem or over their heads. Learn theirinterest in your topic. Don’t assumeyou have an attentive audience. If theaudience is required to attend, you’llhave to be very engaging. Learn howthey will be affected by the plan orrecommendation you present, particu-larly whether they will like it or not.This information will help youdescribe the payoffs your plan pro-vides the audience members or helpyou defuse their disappointment.

3. Structure the message. Captureeveryone’s attention right at the begin-ning. You can do this by telling a per-sonal anecdote. Everyone loves a story.You can ask a question, either real orrhetorical. You can present a dramaticstatistic. You can make a contrarianstatement. All these approaches offerexcellent potential. Humor can be risky.Unless you’re very good at it, bestleave it to the professional comedians.

Keep it short. Audiences todayhave shorter attention spans than inthe past. Generally, a presentationshould not be longer than 20 minutesplus time for the Q&A. So, limit thenumber of points you want to getacross. List those points and build onthem. As you build, anticipate thequestions you will likely be asked and

Effective PresentationS i x k e y s t o m a k i n g a n i m p r e s s i o n .

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increased pay should depend on theteam’s survey result. Everyone is heldaccountable, resulting in a win-win.

4. Poor team language. Ineffectiveinternal communication in a team set-ting will result in disaster. The firstsign of an internal breakdown is “me”centered language. Often this occurs inthe subconscious mind and is nevernoticed. In the workplace the languagetypically sounds like, “I think it shouldhave been done this way” or maybe, “Ijust don’t get it.” One of the biggestoffenders is the phrase “It’s not myjob.” These statements revolve aroundone person rather than the team.

As a team begins to trust andrespect each other, the process movesmore smoothly. A successful leaderfocuses on the communication of “we”

and not individual success or failure.Once the mind begins to process thedifference in internal language, theexternal language follows suit.

When a team performs at peak levels,everyone knows they are an integralpart of something successful. Successallows the team—as well as customers,vendors, and the whole organization—to experience more focus, cooperation,productivity, and impact.

If we understand another person’sbehaviors, and adapt ours to a moreteam-centered approach, we can becomebetter producers. That is the little secretof playing nice in the sandbox. SSE

Gregg Gregory is a consultant, speaker, and founder ofGregg Gregory, LLC. Call 866-764-TEAM or visitwww.GreggSpeaks.com.

ACTION: Build a successful All-Star team.

by Gregg Gregory

IN THEORY, ANY ALL-STARteam—whether in sports

or in business—should beultra successful. But like the 2006 U.S.basketball team or Enron, why domany fail?

1. The organization has not built aculture of trust and respect. All-Starteams are built from stellar performers,usually with enormous egos, whichmay translate into a lack of trust. Theymay not easily trust others, or be trust-ed themselves. Without trust andrespect, the team lacks a solid founda-tion. Building trust is easy, but not nec-essarily simple. The most effectiveways to build trust are: say what youmean and mean what you say; alwaysspeak and act with integrity; be consis-tent between word and deed; and stayout of the gossip and rumor mills.

Once trust and respect are devel-oped, teams are able to focus on theoverall mission without worryingabout a back-stabbing teammate. Iftrust is breached it becomes more diffi-cult to rebuild the next time.

2. Failing to create the chemistrynecessary to succeed. Whether insports or business, an All-Star teammust have the right players in theright positions. If not, a team may pur-sue a common goal, but when theplayers are not complementing eachother’s skills and mindsets, disasterwill strike the core of the team.

How is the chemistry of your team?The more you know about team mem-bers professionally and personallyallows the team to gel much morequickly and effectively. The best play-ers aren’t always the right ones. Teamchemistry allows for trust and respectwhile all members continue to focuson accomplishing their individual andteam productivity goals.

3. Lack of mutual accountability.Employees should hold themselvesaccountable. Some of the best teams arethose whose leaders are only a resourcein the event of a problem. Some organi-zations have accomplished this resultby having customers and other depart-ments complete a satisfaction surveythat involves not just one person, butthe entire team. Everything frombonuses, performance evaluations, and

by Jim Dillahunty

THE CONCEPT OF CUSTOMERservice is shifting, as

more leaders recognize thatcustomer service (CS) represents aninvestment account that can yieldlarge dividends during market tur-moil. Wise leaders deposit into theirCS programs the value of their train-ing, procedures, systems, and thepride of their employees.With consistent and diligentcontributions, the value ofthe CS account will grow andproduce measurable resultsin sales, repeat sales, cus-tomer loyalty, brand value,market share, and market cap.

Traditionally, CS is viewedas an expense, approved in good timesand cut in bad. Yet in the times ofstress, CS programs yield dividends inthe form of repeat sales, brand equity,and fierce customer loyalty.

Organizations with fiercely loyal cus-tomers invest time and resources indeveloping systemic programs of CS. Ingaining and retaining customers, CS stillhas a vital role to play. You can deter-mine the economic value of a customer.

The ability to recognize the value ofCS is partly based on your belief aboutthe nature of the business. In your nextmeeting, ask yourself and your team:“What is the purpose of our business?”If their answers are laced with phraseslike “to make money”, “to sell prod-uct”, and “to be number one”, your

managers are missing an importantpoint. Yes, you need revenues, profits,and sales to prosper, but these should-n’t come at the expense of service.

You must have a higher calling thanjust making money. Great organiza-tions define their purpose in terms like“to bring a rewarding and delightfulexperience to our customers and share-holders”. If your customers receive arewarding experience when they useyour product or service, you’ll havesales, profits, revenues, loyal cus-tomers, and delighted stakeholders.When consumers trim their expenses,your firm’s products or services will bethe last to be cut, and your market

share will increase.CS principles should per-

meate your organization:product or service design,manufacturing, quality con-trol, packaging, distribution,advertising, PR, point-of-sale,and post-sales support. Anyflaws in your CS will dimin-

ish the satisfaction and delight of cus-tomers. A customer experience of lessthan delight diminishes brand loyalty.

The service experienced by yourcustomers is affected by your after-sales support system and by product orservice design. Review how you inter-face with your customers and suppli-ers. Ask them about their experienceswhen they use your products, web site,or order-entry procedures to critiquethe ease of use. The value of the well-designed interfaces for customers, sup-pliers and stakeholders shapes theirperception of your brand value. SSE

Jim Dillahunty is a speaker and consultant in cus-tomer service. Visit www.NewParadigms.com.

ACTION: Invest in customer service.

Why All-Star Teams FailStrategies to get everyone to play nice.

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Invest in ServiceIt pays many big dividends.

tomers, do everything you can to setthings right. Fix the problem and showsincere concern for any discomfort,frustration, or inconvenience. Then do alittle more by giving your customersomething positive to remember—atoken of goodwill, a gift of apprecia-tion, a discount on future orders, anupgrade to a higher class of product.

6. Appreciate your complaining cus-tomers. Customers with complaints canhelp you improve your business. Theypoint out where your system is faultyor your procedures are weak and prob-lematic. They show where your prod-ucts or services are below expectations.They point out areas where your com-petitors are getting ahead or whereyour staff is falling behind. These arethe same insights and conclusions com-panies pay consultants to provide. Buta complainer gives them to you free!

7. Take personal responsibility. Inmany organizations, people are quickto blame others for problems or diffi-culties at work: managers blame staff,staff blame managers, Engineeringblames Sales, Sales blames Marketingand everyone blames Finance. Thisdoes not help. In fact, all the finger-pointing make things much worse. Themost reliable way to bring about con-structive change in your organization isto take personal responsibility and helpmake good things happen. When yousee something that needs to be done,do it. If you see something that needsto be done in another department, rec-ommend it. Be the person who makessuggestions, proposes new ideas andvolunteers to help on problem solvingteams, projects, and solutions.

8. See the world from each cus-tomer’s point of view. We often get socaught up in our own world that welose sight of what our customers actual-ly experience. Make time to stand on theother side of the counter or listen on theother end of the phone. Be a ‘mysteryshopper’ at your own place of business.Or become a customer of your bestcompetition. What you notice when youlook from the ‘other side’ is what yourcustomers experience every day.

Service is the currency that keepsour economy moving: “I serve you inone business, you serve me in another.”When either of us improves, the econo-my gets a little better.

Use these eight principles to build asuperior service culture. SSE

Ron Kaufman is a motivator, trainer, consultant, andauthor of UP Your Service! and the inspirational bookseries Lift Me Up! Visit www.UpYourService.com.

ACTION: Create a service culture.

ing difference by providing personal-ized, responsive and extra-mile servicethat stands out in a way your cus-tomers will appreciate and remember.

3. Set and achieve high service stan-dards. You can go beyond basic andexpected levels of service to provideyour customers with desired and evensurprising service interactions. Deter-mine the standard for service in yourindustry, and then find a way to gobeyond it. Give more choice than ‘theusual’, be more flexible than ‘normal’,be faster than ‘the average’, andextend a better warranty than all theothers. Your customers will noticeyour higher standards. But eventually

those standards will be copied by yourcompetitors, too. So don’t slow down.Keep stepping UP!

4. Learn to manage your customers’expectations. You need to bring cus-tomer expectations into line with whatyou know you can deliver. Build a rep-utation for making and keeping clearpromises. Once you establish trust andgood reputation, you only need to askcustomers for their patience when youcan’t meet their first requests. Usuallythey’ll extend you leeway. Another wayto manage customers’ expectations isto under-promise, then over-deliver.For example: you know your customerwants something done fast. You knowit will take an hour to complete. Don’ttell your customer it will take an hour.Instead, let them know you will rushon their behalf, but promise a 90-minute timeframe. Then, when youfinish in just one hour, your customerwill be delighted to find that you fin-ished the job ‘so quickly’. That’s‘under promise, then over deliver’.

5. Bounce back with effective ser-vice recovery. Sometimes things do gowrong. When it happens to your cus-

by Ron Kaufman

AS THE WIND OF ECONOMICcycles blow hard, some

managers try to containcosts by cutting corners on customerservice. This is the wrong thing to do.

Service matters now more than everfor four reasons: 1. When people buyduring an economic downturn, they areconscious of the hard-earned moneythat they spend. Customers want moreattention, more appreciation, and morerecognition when making their pur-chases with you, not less. 2. Customerswant to get maximum value for themoney they spend. They want assis-tance, education, training, installation,modifications, and support. The basicproduct may remain the same, but theywant more service. 3. Customers wantfirmer guarantees that their purchasewas the right thing to do. In toughtimes, every expenditure is scrutinized.Provide the assurance your customersseek with generous service guarantees,regular follow-up and speedy follow-through on all queries and complaints.4. In tough times, people talk morewith each other about saving moneyand getting good value. Positive word-of-mouth is a powerful force at anytime. In difficult times, even more earswill be listening. Be sure the words spo-ken about your business are good ones!

Eight Secrets of Superior ServiceGiving good service in tough times

makes good business sense. But howdo you actually achieve it? Here areeight proven principles you can use.

1. Know how your customers’ expec-tations are rising and changing overtime. What was good enough last yearmay not be good enough now. Use cus-tomer surveys, interviews and focusgroups to understand what your cus-tomers really want, what they valueand what they believe they are getting(or not getting) from your business.

2. Use quality service to differentiateyour business from your competition.Your products may be reliable and up-to-date, but your competitors’ goodsare, too. Your delivery systems may befast and user-friendly, but so are yourcompetitors’! You can make a more last-

Service Matters MostE s p e c i a l l y i n c h a l l e n g i n g t i m e s .

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prepare and outsell their competition.Sales executives can’t just show upfor a sales call and hope that theystumble across an opportunity. Theyneed to be purposeful, customer-focused, and ready to execute. Spendtime understanding your clients, theirindustries and markets, and buildingcreative solutions with them.

Focus on activities. Increase youractivity by 35 percent! Don’t reduceactivity and cling to your pipeline.You’ll need to make more sales calls,engage prospects (potential buyers),and qualify them to meet your goals.Leverage existing relationships andreferrals at every opportunity.

Focus on qualification. Make themost of your customer-centric salesprocesses to leverage best practicesand repeatable strategies. Just becausesomeone can buy, doesn’t mean they

will. Your prospect qualification pro-cess is reverse-engineered from howyour prospects make decisions: ShouldI buy this? Can I buy this? Is it worthit? Am I convinced?

Answer these questions with yourprospects before you invest time andresources in a sales cycle. If prospectsare not qualified—let them go and findpeople who can be qualified.

Remember, your competitors arefacing the same difficulties that youare. Stay calm, stay focused, and lookfor their vulnerabilities. You should beplaying both defense and offense withyour customers to defend your posi-tion. By focusing on the customer, youwon’t be outsold—and you can winthe customer’s business and loyalty. SSE

Julie Thomas is President and CEO of ValueSellingAssociates. Visit www.valueselling.com.

ACTION: Focus on these keys for more sales.

by Julie Thomas

IONCE SPOKE WITH A SALESexecutive who was frus-

trated and concerned abouteverything going on in the economy.“Credit crisis, stock market crash, bank-ing fiascos, housing meltdown,” shesaid. “Who will buy from me now?”

You can make the sale, even in anuncertain economy. Companies arestill in business, and work is still get-ting done. So, what can you do todayto position yourself for success?

Here are a few keys to making andexceeding quota in a down economy.

Focus on the positive. Right now, itis easy to be overwhelmed by negativemessages and bad news. To succeedduring this time, attitude is important.Tune out all information that is nothelpful to you. Turn off the 24-hournews cycle and updates from the pun-dits. As a sales manager or sales rep,much is going that is outside of yourcontrol. Focus on those things you cancontrol. Successful people find oppor-tunity and positive news even in diffi-cult times. Keep a positive attitude.

Focus on your customer with empa-thy. Know how to solve customerproblems. The problems facing yourcustomers and prospects won’t goaway; in fact, now, they may even bemagnified. However, things may bechanging for your customers that willimpact your sales cycles. In difficulttimes, people become more risk-averse.This risk aversion may manifest inmany ways, including taking longer tomake decisions and involving morepeople in those decisions. You need tofocus on risk mitigation for your clients.

Focus on real value. Now, real valuemust be understood by your customersand prospects. Soft-dollar ROI may notbe enough to justify the decision to pur-chase. In difficult times, clients expectthe time-to-value to be short. In goodtimes it may be okay to realize ROI in 18to 24 months. Now, the ROI expectationmay be six months in order for the pro-ject to get funded. Clients are focused onreal monetary gains as a result of theirinvestments. Are you positioned to savethem money or grow revenue?

Focus on preparation. The top 20percent of sales executives won’t beaffected by this economy. They’ll out-

by John Tschohl

IF YOU WANT TO INCREASEsales, grow a loyal cus-

tomer base that is the envyof your competitors, and provide ser-vice that is worth thousands of dol-lars in advertising and marketing,you must solve your customer’s prob-lems—and do so quickly.

Every company, no matterhow excellent its products oremployees, makes mistakes.How they respond is whatseparates customer-servicedriven organizations from therest of the pack. Service recov-ery is the key.

Service recovery is solving a cus-tomer’s problem and making that cus-tomer feel as if he’s just done businesswith the greatest company on earth.Sadly, most companies handcuff theiremployees with inflexible policies andprocedures that discourage them fromsolving a customer’s problem.

Empowerment is the backbone ofservice recovery. Employees must beallowed to solve a customer’s problemon the spot. Customers who experiencea problem and have that problemsolved are more loyal.

Nothing is as powerful—or inexpen-sive—as word-of-mouth advertising.Happy customers will tell everyonethey know about how well you treatedthem. You must care for them, nurture

them, and earn their undying loyalty. To provide service recovery that

will grow business, take four steps: 1. Take responsibility. Admit that

the company made a mistake, tell thecustomer you’re sorry for the problem,and then take steps to solve it.

2. Act quickly. Service recoveryshould happen in 60 seconds or less.Great service recovery is not movedup the ladder or passed to a supervi-sor to be handled later. The cost of adelay is dramatic; most customerswon’t wait—they will leave you. Thelonger it takes for a complaint to be

resolved, the angrier they’llget and take business—andmoney—elsewhere.

3. Be empowered. Withoutempowered employees, you’llnever have service recovery.And, if you don’t have servicerecovery, you won’t haveloyal customers. The magic of

service recovery occurs on the front-line. Identify and eliminate policiesand procedures that tie your employ-ees’ hands and reward those whomake empowered decisions that satis-fy—and retain—your customers.

4. Compensate. Service recoverydoesn’t end when you solve a cus-tomer’s problem. You must give themsomething of value that lets themknow you value their business.

By taking these steps, you preventcustomer defections, create word-of-mouth advertising, and dramaticallyincrease your sales and profits. SSE

John Tschohl is president of the Service QualityInstitute. Email quality@servicequality.com or visitwww.customer-service.com.

ACTION: Keep the customers you now have.

Service RecoveryKeep the customers you have.

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Make the SaleFocus on what you control .

Sears battled for market share. Expect-ing a recession, Wards turned cautious.Sears expanded. When the marketboomed and Wards decided to spend, itwas too late. Locked out of lucrativelocations, the company never recovered.• Bain & Co. studied 700 firms in the

recession of 1991-92: 20 percent enteredbehind their competitors yet emergedin front, while 20 percent went in aleader and came out alaggard—twice the shiftyou’d expect in a stableeconomy. According toBain, bold players likeWal-Mart expanded theirofferings. Timid playerslike Kmart struggle tothis day. • McKinsey & Co. stud-

ied 1,300 firms in thedownturn of 2001-03: 40percent fell from the top,while 15 percent rose tothe top. Citing “strategicflexibility,” McKinsey noted that thewinners foresaw and readied them-selves for new opportunities.

The lesson here? At every point inthe economic cycle, successful salesorganizations prepare for the opportu-nities that inevitably come.

Which Way Is North?So much for history. What can you

do now to get sales productivity backon track? Here are four suggestions:

1. Equip people with selling andnegotiating skills. Skillful salespeoplewin. Properly supported, they:• Exude confidence and inspire confi-

dence in clients.• Fathom deeper client needs.• Drive purchase behavior by posi-

tioning what they sell as revenue-gen-erating strategic necessities.• Negotiate mutually-beneficial terms.

As a result, these salespeople closefar more business. What’s more, yourinvestment in selling skills reducescosts through shorter sales cycles, gen-erates immediate revenue, and posi-tions you for long-term success.

2. Get to know existing accounts. Intough times, savvy salespeopleexpand contacts in their accounts—togrow immediate sales and to hold theaccounts when contacts move on.These salespeople do what it takes to

understand the roles that contacts playin purchase decisions, and the businessrealities that shape buying decisions.

Instead of cutting back on sales callsto reduce costs, encourage more clientdialogue and expand your contacts.

3. Plan for the best. Account plan-ning can rev up sales—if it helps sales-people identify buyers and assess theirbuying potential. Planning helps sales-people to:• Foresee and overcome objections.• Build long-term presence in accounts.• Zero in on the right prospects—those

with potential to buy.• Engage prospects by tailoring an

approach to their key business issues.• Ask right questions at

right times to shape pro-ductive dialogue.

4. Create the condi-tions that motivate sell-ing. Any impact frommotivational speechesand awards is usuallyshort-lived. In a listlesseconomy, salespeopleneed leaders who contin-uously foster the self-motivation required tohandle more rejectionand longer sales cycles.

To create an environment that supportsproductive self-motivation:• Regularly assess performance and

recommend specific behavior changes.• Provide the stimulation, focus, and

information salespeople need to succeed.• Devise creative incentive programs.• Make yourself available for advice.• Go out of your way to reinforce key

methods and model desired behaviors.This kind of leadership keeps people

active and positive, yielding real pay-offs as self-motivated salespeopleengage clients and prospects.

Even in a down market, you can revup revenue. What’s the summary wis-dom of successful sales organizations?• Secure short-term business by stay-

ing close to customers.• Respond quickly to changing cus-

tomer needs and concerns.• Take strategic steps to position your-

self for long-term success.• Avoid the temptation to wait and see.

Successful sales organizations weath-er tough times with thoughtful initia-tives, skilled salespeople, and healthyclient relationships. SSE

Seleste Lunsford is a Consultant for AchieveGlobal andco-author of Secrets of Top-Performing Salespeople andStrategies that Win Sales. Craig Perrin is Director ofSolution Development for AchieveGlobal and coauthorof Leading Teams. Visit www.achieveglobal.com.

ACTION: Rev up your sales revenue.

by SelesteLunsford andCraig Perrin

WHAT CAN YOU DO TO INCREASE SALESproductivity in times like this?

Housing is so bad that your mort-gage is upside down. Credit is so tightthat you can’t borrow a garden hoe.The dollar is so weak that a pint inLondon sets you back a day’s pay.

For reasons of their own, customersand prospects are sitting on their cash.What’s the impact on you of this excru-ciating state of suspended compensation?• Sales cycles get longer.• Client conversations move smoothly

from price, to price, to price.• Even friendly clients won’t give you

an Altoid.• Tirekickers invade in numbers.

You say you’ve done everythingobvious and nothing works? Maybe it’stime to narrow your focus.

Up the LadderIn a booming economy, average sales-

people can thrive at one rung above anorder-taker. With few orders to take, youneed to cultivate sales in a logical way.

First, create a clear line of sight.Help salespeople see how your salesstrategy should guide their efforts—who to sell to, what value propositionto sell, and what sales process to fol-low. Until you communicate with suchclarity, each salesperson will likely takea different tack, which rarely brings thepredictable revenue you need.

Earning customer loyalty and facetime takes discipline and the rightmindset: customer first, not productfirst. Cash-strapped prospects won’tmake time for a product-obsessed sell-er. They will value their relationshipwith a trusted business advisor.

Especially in today’s market, a clearstrategy and customer-relationshipprocess support wise investments,adaptability, and predictable results.

Damn the Torpedoes!Since all markets undergo cyclical

change, there are many tales aboutforging ahead when money is tight.• Before World War II, department-

store giants Montgomery Ward andS A L E S A N D S E R V I C E E X C E L L E N C E D E C E M B E R 2 0 0 8 15

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Building a forecast involves an analy-sis of the customer’s business, theirrelationship with your company, andtheir marketing plan for the next year.

The forecaster should be the sales-person who is closest to that customer.Each salesperson must forecast for hisor her major customers. The forecastmust be in by a specific date, and thesalesperson must be prepared to dis-cuss the rationale behind the forecast.

The difference between the salesteam’s forecast and the management’sgoal for the year is the “planning gap.”Filling that gap is what marketing andmanagement address. The team’s job isto eliminate excuses by salespeople.

5. No sales system. Effective selling isthe result of a complete system. Effectivesalespeople are “self-managed profes-sionals” who know that phone calls

must be organized beforehand, recordsmust be kept, and selling is a discipline.

Effective selling is based on using thecompany’s marketing program to createa working marketing and sales plan foreach key customer. Each salespersonhas a game plan for every 30-day peri-od. He or she works the plan every day.Every phone call and visit is designedto achieve the plan. The mantra is: “Iknow my customer, our products, and ourmarketing plan. My job is to bring thesethree elements together into a plan for eachof my best customers. I sell products thatwill not come back to customers who will.”

Eliminating mistakes enables you tosolidify a position and move forward. SSE

John Haskell, aka Dr. Revenue, is president of TheProfessional Marketing Group and author of Profit Rx.Visit www.drrevenue.com.

ACTION: Avoid making these five mistakes.

by John Haskell

MANY COMPANIES FACE Ashrinking market, and

competition is cutting pricesin spite of higher costs. Salespeople arelosing business. What options do youhave to improve the business?

Ask yourself two questions: First,what are you currently doing? Second,what have you not done in the past?

Five mistakes tend to stand out. Youcan eliminate these mistakes, if youhave the discipline and desire.

1. No marketing plan. The marketingplan enables you to know how you canachieve the goals. You can write a plan,using a five-part format: 1) Goals: Yourgoals need to be hard-edged; avoid softsales targets, undefined goals, weakmarket data, ineffective advertising,and vague promotion schedules. 2)Problems: Identify the major problemsthat stand in the way of reaching goals.3) Opportunities: Spell out opportunitiesthat offset the problems. 4) Strategy:Define a longer-term strategy—this isthe “What?” statement. What do wewant to be five years down the road? 5)Tactics: Define your tactics specifically.This section, accompanied by a market-ing calendar and budget, provides theroad map for execution, which leads tosales success. This template makes iteasy; simply fill in the blanks. Sortopportunities in order of priority.

2. A weak understanding of the mar-keting environment (you lack a compet-itive matrix). Every company has aposition in the market based on specificattributes (taste, price, size, location).Narrowing them down, analyzing thevital differences, and planning how torespond to the competitive environ-ment is the prescription for success.

3. No understanding of your cus-tomer’s real buying motivation. If youcan’t afford extensive marketingresearch, use simple questionnaires orlow-cost focus groups to get the vitaldata that enables you to build market-ing, merchandising, advertising, andsales promotion tactics that work. Dothe research, listen carefully, and actdecisively for the long term.

4. No sales forecasts. Planning forthe business begins with a sales fore-cast. If management does not look for-ward, they will get constant surprises.

by Kristi Faulkner

MAKING A MEANINGFULconnection to your con-

sumer is imperative to sellingyour product. Knowing what motivatesyour buyer is Step 1. You must knowwho he is. Or she, more likely.

Women are the biggest missed oppor-tunity in marketing. Women influence 85 percent of all purchases. Womenaccount for $7 trillion of purchases; men account for less than $2trillion. No matter what prod-uct or service you offer, yourconsumer is a woman.

Even though women areholders of the purse strings,they often feel ignored or mis-understood. They are not exas-perated or angry by tired mar-keting messages—they’re indifferent.

Marketing to women is a matter ofinsights, not stereotypes. Having a betterway to speak to women begins withhaving women speaking to women intheir language. Women know if an adwas created by a man or by a woman.They know when you’re talking to them,and when you’re talking past them.

What does this mean for your brand?You need to pay more attention to womenand find ways to capture their attention,pique their interest, close the sale, andwin customers for life by connecting wo-men to companies, to brands, and to one an-other. Women are more loyal consumers.

Add respect and a healthy dose of

reality into marketing communicationsaimed at women. Want women to likeyou? We offer these five tips:

Skip the sexual stereotypes. Talk to uslike the wives, mothers, sisters, daugh-ters, and girlfriends, that we are. Rarelydo we think of ourselves as stilettowearing, man-pleasing, floor scrubbingStepford wives, so neither should you.

Make your value proposition empa-thetic. In your messaging, tell us: “Weknow your dollar needs to be spentwiser than ever; you can feel confidentthat the money you spend on ourproduct will be worth it.”

Respect that we’re multidimension-al—show images we relate to, situationsthat might happen in our day, ex-

changes we might have, prob-lems we might face. Then showus how your product can makeus more efficient and produc-tive in managing our busy fam-ilies and lives.

Be subliminal. We arethinkers and feelers; we appre-ciate subtle nuances in mes-

saging, and we pick up on changes invoice tone. No need for strong words,loud music, over-the-top images. We’llget your message if the tone is right.

Be sure that you want us buyingyour product. We want to feel wanted,but we can tell when you’re insincere.

With women deciding where mostdollars are spent, advertising and mar-keting must make sense to them. Byspeaking to women with respect, youhave a better chance of women connect-ing to your brand and buying it. SSE

Kristi Faulkner is creative director of Womenkind. Visitwww.womenkind.net or email Kristi@womenkind.net.

ACTION: Make connections with women.

16 D E C E M B E R 2 0 0 8 W W W . L E A D E R E X C E L . C O M

M A R K E T I N G / M I S TA K E S

M A R K E T I N G / C O N N E C T I O N

Five Fatal MistakesT h e y o f t e n s p e l l d i s a s t e r.

What Women WantMake meaningful connections.

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