Closing and Negotiating Challenges - Symptoms of Another Selling Problem

Posted by Dave Kurlan on Tue, Apr 25, 2017 @ 14:04 PM

report.jpg Image Copyright Shironosov

I recently learned that one of OMG's clients in Europe purchased two goldfish. In keeping with their tradition, the client named the two fish, Recommended and Not Recommended.  Surprisingly, recruiting salespeople was not one of the topics addressed in this year's 2017 Selling Challenges Study.  Meghan Steiner, from Richardson, was nice enough to send me an advanced copy of the results.  There were a number of interesting findings and to learn what was covered and see my insights from the report, continue reading.

Consider the findings below that I pulled from the much larger report.  Respondents said the following issues are challenges for their companies:

  • 24% said gaining higher prices 
  • 20% said closing win/win deals
  • 17% said maintaining profitability
  • 24% said competing against a low cost provider
  • 16% said creating a compelling case for change
  • 19% said customers who continue to reopen the negotiation
  • 15% said positioning a competing value proposition

The 7 findings I listed above came from two different chapters of the report.  Higher prices, win/win deals and profitability came from the chapter on Negotiation.  Positioning, reopening negotiations, competing against low cost providers and the case for change came from the chapter on closing.  

"When I combined the 7 challenges, together they suggest that the
problem these companies really have is an inablity to sell value!"

The findings from the report came from a survey where most of the 300+ respondents were from companies larger than $500 million, with sales quotas generally running more than $1 million each.

How do the findings compare with OMG's scientific data from the evaluation of 1,100,000 salespeople from 12,000 companies?  Let's compare!

The average score for the Selling Value competency is 56 which means that the salespeople in the 370,000 rows of data in this query have, on average, 56% of the attributes in the Selling Value competency.  You can see that the top 10% are significantly more effective and the bottom 10% are significantly worse!

value2.jpgAnother way of looking at this competency is to determine the percentage of salespeople who have selling value as a weakness.  

"68% of the salespeople we looked at had Selling Value as a weakness.  

Our data shows that selling value is a much greater issue than the survey suggests.  The likely reason for this is that respondents from large companies may not understand why they are having the issues listed by the bullets above.  They only recongize the symptoms.

The Selling Value Competency is 1 of the 7 Tactical Selling Competencies that OMG measures, and 1 of the 21 Sales Core Competencies measured in all.  You can see the attributes for this competency in the screen shot from a sales force evaluation below.

value-1.jpg

When companies continue to believe that their problems lie in negotiating and closing, they seek training on negotiating and closing!  When the real problem is selling value, you need to provide training on consultative selling, change your pricing strategy and provide training on selling value.

Here are four other things you should do:

1. See how your salespeople compare to others in your industry and to salespeople in general in any or all of the 21 Sales Core Competencies with OMG's complimentary stat finder tool.

2. Select only strong (16%) and elite (7%) salespeople with OMG's accurate and predictive sales candidate assessment.

3. Become more effective coaching your salespeople in all 21 Sales Core Competencies by attending my annual Sales Leadership Intensive where coaching for impact is the focus during the two day training.  There were only 6 seats left for the May 17-18 event outside of Boston.

4. Download the 2017 Sales Challenges Study from Richardson.

Topics: Dave Kurlan, Consultative Selling, close more sales, negotiating, objective management group, selling value, Richardson, OMG Assessment

Breaking News - More Salespeople Suck Than Ever Before (and Why)

Posted by Dave Kurlan on Mon, Feb 29, 2016 @ 06:02 AM

Saturday evening, I was driving my car and listening to the radio when a song played that I hadn't heard since the 70's.  It occurred to me that long before the advent of rap music, Charlie Daniels must have been the accidental originator of rap with his song, The Devil Went Down to Georgia.  If you are too young to have heard it, don't remember it, or just want to hear this white country boy do his thing, watch this awesome YouTube clip.

Thinking of rap got me to thinking of salespeople - who always get a bad rap - and that got me to thinking about Bad Company, and their song, Taking Care of Business.  The only problem with my thinking is that Bad Company didn't record that song; Bachman Turner Overdrive (BTO) did as you can see in this YouTube clip recorded at a prison!  If you're like me, you must be wondering where this post is heading...

Salespeople always seem to get a bad rap and obviously that's bad for business. But it's always been that way and nobody has made a very big deal about it, so what has changed? This article details all of the things that have dramatically changed modern selling in just the past several years.  And this article explains why millions of salespeople will lose their jobs and become obsolete.
 
Objective Management Group (OMG) has evaluated and assessed more than one million salespeople and while selling has changed and evolved, the data shows that one thing hasn't changed at all.  The following graph shows sales capabilities as measured by OMG's Sales Quotient and how that has changed in the past 15 years.
74SuckNow77.jpg
For years, I've been writing that there is an elite 6%, another 20% that are fairly strong, and then the remaining 74% suck.  Well, those numbers have moved.  As you can see in the graph above, the percentage of elite salespeople has climbed by a whopping 1% to 7%, or an increase of 10,000 salespeople.  Unfortunately, the decrease in strong salespeople, from 20% down to 16%, means that the percentage of sucky salespeople now stands at an unbelievable 77%.
 
So despite the glut of free content in the form of blog articles, podcasts and videos, how do we explain that sales capabilities on the whole are worse than ever before?  Going back to Charlie Daniels and BTO, the devil may be in Georgia, but he is definitely right here in the details where it is obvious that we aren't doing a great job of taking care of business.
 
When a change in the way that people buy is taking place at a faster rate than a change in the way that people sell, we see results like these.  Richardson just published their 2016 Selling Challenges Report.  I typically don't care for surveys - especially those with a small sample size like this one, and those whose respondents are primarily from large companies. But in this case, the findings are correct; especially the top 3 issues that salespeople are struggling with:
  1. Creating value and insight during the client conversation
  2. Uncovering complete information regarding the decision making process
  3. Exploring client issues and challenges

The 3 topics are identical to those I write about most frequently because they correlate to the issues we uncover when we evaluate sales forces.  Why are salespeople struggling so much with these issues?

  • Their sales managers aren't capable of helping them.
  • The majority of companies fail to bring in expert help from the outside.
  • A lot of the training doesn't focus on the cause - only the symptoms.
  • Salespeople tend to not practice and when they do practice, they practice doing it the wrong way.
  • Those 3 issues are the core of Value Selling and a Consultative approach - the 2 most difficult competencies out of the 21 Sales Core Competencies.
  • A lot of the training either isn't very good, isn't reinforced, or isn't enforced.  Sales leaders and CEO's are not holding salespeople accountable for change.
  • The starting point for any effective training is a customized, formal, structured, milestone-centric sales process and that is missing from many well-known training programs.  Last week I received a call from an Israeli company that wanted Kurlan & Associates to teach their 200 salespeople to sell based on the video tools they created.  Their products were cutting edge 21st century products, but the selling approach they created on their own was vintage 1970's.  I told them that they would have to either allow us to completely change their sales process and approach, or they would have to find another company to help them.
  • Sales DNA plays a huge part in the difficulties that salespeople have when attempting to sell value or use a consultative approach.  Sales DNA is the combination of strengths that support skills and when the strengths are actually weaknesses, salespeople are uncomfortable and/or unable to execute the process, strategies, tactics and achieve milestones.
Today, if salespeople do not learn to master the consultative approach, a prerequisite for Value Selling, they won't be able to differentiate themselves in the field.  Without differentiation strongly grounded in value, buyers will ultimately make their decisions based on price.

Topics: Dave Kurlan, Consultative Selling, objective management group, selling value, Richardson, OMG Assessment, charlie daniels, bachman turner overdrive

How Many of Your Salespeople are Receiving Welfare?

Posted by Dave Kurlan on Mon, Jan 09, 2012 @ 09:01 AM

Money MotivatedI hear this very often, "Dave, your assessment said that Joe was not money-motivated but I disagree.  It seems like Joe is in here every month asking for more money."

Me: "Tell me about that."

Client: "Well, he says he isn't earning as much as he's worth, so he hits us up for more salary or demands an increase in commissions."

Me: "So, what you are saying is that he is demanding that you pay him more money."

Client: "That's right."

Me: "In my experience, a money-motivated salesperson simply sells more to earn more.  That's the motivated part of money-motivated.  It seems that rather than doing that, Joe is asking you to give him more money.  He feels entitled, but isn't doing anything about earning it.  It's like he's on welfare and you're the government."

Client: "Ouch. Thanks."

Money motivation tends to be very confusing to people but there is a huge distinction between being motivated to perform versus feeling entitled to more money.  What do you have on your sales force?

There will be a couple of opportunities to hear me and other top sales experts this month (January 2012).

On Monday, January 23 at 2PM ET, I will be on a panel along with Tom Ziglar (Zig's "kid") and Lisa Cramer.  Host Michael Nick will be discussing the Future of Selling and it should be a very insightful 45-minute teleconference.  You can learn more and register here.

On Wednesday, January 25 at Noon ET, I will be on a panel with 3 other sales experts when host Dave Stein, CEO of ESResearch, discusses Sales Leadership Strategies in a Virtual, Mobile and Social World.  Stein will host additional panel discussions on a variety of topics during January and February.  To register for my session, click here.  For information and/or to register for the other sessions, click here.

Topics: sales assessment, Dave Kurlan, Dave Stein, money motivated salespeople, ES Research, 3G Selling, TAS Group, Richardson, Ziglar

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About Dave

Best-Selling Author, Keynote Speaker and Sales Thought Leader.  Dave Kurlan's Understanding the Sales Force Blog has earned a medal for the Top Sales & Marketing Blog award for six consecutive years.  Dave's Blog earned a Bronze Medal in 2016 and this article earned a Bronze Medal for Top Sales Blog post in 2016. Read more about Dave.

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