What B2B Companies Must Learn from 10 Reasons Why Amazon is Destroying Retailers

Posted by Dave Kurlan on Mon, Apr 17, 2017 @ 06:04 AM

amazon.jpg
Image Copyright AdrianHancu

Amazon generated almost $44 Billion in net revenue last year and it had to come from somewhere. That's not $44 Billion that people wouldn't have spent if not for Amazon.  It's money that people would have spent, at some retailer, probably within an hour of their home or office, but chose to buy from Amazon instead.  

You may think it's because Amazon saves them money but that isn't necessarily true.  And you may think it's simply more convenient to order from your laptop or mobile device but that might not be the case either.  I'm going to share my 10 reasons why this is happening and you might be very surprised with my conclusion at the end of the article where I provide an important warning for B2B Sellers.

How often have you needed or wanted something today?  Paying for overnight shipping was not acceptable, free prime two-day shipping was not soon enough, and ground shipping meant waiting forever.  You want it now.

So you traveled to the retailer and what happened?  If your experience was anything like mine, it was one of the following:

  1. The store was open but it didn't seem like anyone was working that day
  2. You found someone but they knew less than your pet
  3. You were attacked by an overly aggressive salesperson
  4. You found what you wanted but the checkout line wasn't moving
  5. The salesperson tried to talk you into something different from what you wanted
  6. They didn't have what you wanted in stock (or in your size or preferred color).
  7. You made it to the cashier but it took 10-minutes to find an SKU that would scan in their computer
  8. Their tiny bags were too small for what you purchased
  9. Their skimpy bags didn't support the weight of what you purchased
  10. You had to wait for them to bring a big box from "the back" and you could have driven to an Amazon warehouse and back in the time it took them.

Did you notice that I didn't say you found what you wanted but it was 10% more than on Amazon?

Amazon is destroying them.  It's in stock.  You can get it tomorrow.  You don't have to deal with morons. There's never a line.  They ship it right to your door and without a single salesperson they take care of you in a way that retailers seemingly can't.  

Because they are losing revenue and profit, retailers are compensating and making things worse.  They seem to specialize in slow, dumb and incompetent people; out of stock merchandies, outdated systems and frustrating customer service.  Why would anyone choose to have this experience when they can point, click, pay and get what they want?

If a retail chain is getting destroyed by Amazon, it should do the complete opposite of what most retailers are doing.  They are already losing money, so doing more of the same won't change their fate. They should hire more staff, provide better training, and focus on the customer experience - doing whatever it takes to dramatically improve the customer experience and hope that people are so delighted with their visit, how they were helped, their ability to get in an out on their timeline, and getting what they wanted, that the positive word of mouth could turn things around.

And that brings us to sales.  Selling has changed dramatically.  But the changes aren't limited to B2B sales.  B2C selling has changed just as much - perhaps even more.  So why are retailers still doing things the same as they were 40 years ago?  Their employees are low paid in comparison to their B2B cousins, under trained on product, not trained or trained using antiquated methods for greeting customers and helping them buy, and most of the employees don't seem to care all that much.  I believe the retailers are getting exactly what they are paying for and until they raise their expectations, compensation and training methods, they will continue to get destroyed by Amazon.

Of course there are exceptions.  Apple and Niketown immediately come to mind.  Neiman Marcus has a history of excellence.  But then who?  The list is pretty short.

There is a lot to be learned from this.  B2B companies don't need to look into a crystal ball because the B2C lessons are what lies in store for them if they don't realize that everything about selling has changed. If their salespeople are still selling transactionally, relying on demos and quotes, and trying to compete on price, they will be obsolete in two years.  Buyers will have no use for them.  They will be redundant.  

Your salespeople must follow a milestone-centric, customer focused sales process, take a consultative approach, sell value and abandon their old methods.  You are running out of time.

We show sales leaders how to make these changes at my annual Sales Leadership Intensive.  Join us May 17-18!

Topics: Dave Kurlan, Consultative Selling, sales strategy, amazon.com, B2C, B2B

How Much Sales Development Can Leadership Do In-House?

Posted by Dave Kurlan on Tue, Jul 16, 2013 @ 23:07 PM

mowingYou can mow your own lawn, plant your own shrubs, paint your own house, repair your own car, and clean your own house.  You can do your own accounting, write your own agreements, and generate your own payroll too.  But you probably don't do most of these things.  Professionals do a much better job and save you a tremendous amount of time.

From time to time, clients want to handle some of the services we provide in-house.  "Why can't we do the sales process ourselves?"  They can, but a few questions come to mind.  If they didn't have an effective, efficient, optimized, formal, structured sales process for the last 20 years, where would this expertise suddenly come from to create this process tomorrow?  What if they get it wrong?

"Daily huddles sound simple enough.  Why can't we do that on our own?"  They can, but there is also the matter of getting the salespeople to participate, embrace the huddles and find them useful and important.  Much of that is dependent upon getting the metrics and the huddle format right.

"We have people who can provide sales training and we expect them to do it."  Most companies with in-house trainers often don't realize that while their trainers' expertise is training, the subleties and nuances of selling, and the sales weaknesses that must be overcome, require skills and experience that in-house trainers usually lack.

Beyond these obvious challenges exists a 600 pound gorilla.  The reason that any of these examples would be implemented at a company is usually to improve the sales culture, generate additional revenue and improve sales effectiveness.  Salespeople usually resist efforts to change things up.  When you combine resistant salespeople with homegrown solutions and don't get it correct the first time (right out of the gate and I mean nail it), you'll have an even bigger problem on your hands.  You won't get a second chance to tweak and get it right.  You get one chance to state your case, introduce the changes and get salespeople to embrace them.  If you don't know what you're doing, can't back it up with science, or fail to make a case and impress your salespeople, you're dead in the water, in a worse place than where you started, and there's nothing you can do about it.

Don't risk it.  Leave sales force evaluations, sales process, recruiting process, selection criteria, sales and sales management training, CRM selection, sales management coaching, and sales culture change to the experts.  You'll be glad you did.

Topics: Dave Kurlan, sales process, sales force evaluation, sales training, sales management, sales leadership, sales strategy

Sales Leadership Challenges to Having a World Class Sales Force

Posted by Dave Kurlan on Tue, Jun 18, 2013 @ 06:06 AM

World-Class Sales Organization.

We hear those words a lot.  Some companies aspire to it.  Others claim to be there already.  You are more likely to hear claims like those from a large enterprise, but you have better odds of actually finding it in a small-to-midsize company.

World-Class Sales Organization.

Some would say it's a description of a company's people.  Others would suggest it has more to do with results.  Many would say it's about the size of the sales force.  And a few would point to sales leadership and discipline.

World-Class Sales Organization.

The top team of sales strategists at my sales leadership consulting and training firm, Kurlan & Associates, set out to define what a world-class sales organization is and we developed this model.

World Class Sales Force

There is an important distinction to be made here.  At a large company, there could be one or more individuals responsible for each category in the model.  In a small business, one person (and sometimes fewer than that) may be responsible for all categories.  And in many companies, some of those categories are placed under the direction of people who aren't qualified  to lead them.  In other companies, there are huge gaps where some (or all) of one or more categories are missing.

Let's discuss the challenges of this model in a smaller company where there may be a half dozen salespeople reporting to one sales manager.  How is one person supposed to handle:

  • Sales Leadership 
  • Sales Architecture
  • Sales Infrastructure
  • Sales Talent Management
  • Sales Enablement
  • Sales Human Capital
Some of the help, which we provide in small and mid-market companies, occurs when some (or all) of these pieces are missing altogether, or when they have been undefined or improperly executed.
 
We are nearly halfway through 2013, so this is a good time to determine where the gaps exist in your sales organization and then deal with them.  It's not as important that you get it right, as it is that you have the above in place.  You can get them right over time.

Speaking of time, we're on the cusp of summer which begins on June 21 and it can't come quickly enough for me!  Nancy Bleak, author of Conversations That Sell, has published her 3rd Annual List of sales books you can bring to the beach.  We are proud and thankful that Nancy has chosen to include my best-seller, Baseline Selling - How to Become a Sales Superstar by Using What You Already Know about the Game of Baseball on her list.  We also encourage you to include Frank Belzer's terrific book, Sales Shift, on your summer reading list.
 
If you found this article helpful, you might find these articles on the subject of sales leadership helpful too:
 
 
 
 
 

Help is Here for Salespeople Who Find Themselves as the Underdogs

How Coyotes are at the Heart of Sales Motivation

What Percentage of Sales Managers Have the Necessary Coaching Skills?

Quadruple Dittos Motivate Your Sales Team to Achieve

Latest Debate Had Some Great Sales Leadership Examples

The Secret to Coaching Salespeople and Why It's So Scary 

The Conversation Sales Leaders Must Have with Salespeople

Connecting the Dots on Sales Management

Verne Harnish's Rant and 3 Sales Leadership Issues

The Most Important Sales Issues Heading into 2015

Keys to Improved Sales Performance - Part 4 of 4

The Real Problem with the Sales Profession and Sales Leadership

Why Sales Leaders and Salespeople Get Frustrated

Top 10 Sales Leadership Tips From 2013 - So Far

Top 5 Sales Leadership Articles of 2013 - So Far

How Much Sales Development Can Leadership Do In-House?

Sales Leadership Challenges to Having a World Class Sales Force

Sales Leadership Observations about Pipeline and Terminations

Sabermetrics for Sales Leadership - Projecting Sales Revenue

Disagreement Over Sales Leadership Best Practices?

The Sales Leadership Landscape - A Different Perspective

Are Sales Leaders More Receptive to Training Than Salespeople?

Sales Leaders Got These Issues All Wrong

Sales Strategy and Tactics - Thoughts from the Super Bowl

What Sales Leaders Don't Know About Ego and Empathy

Sales Leadership - a Balancing Act to Achieve Compliance and Quotas

Sales Leadership - It's Not About the Title

Sales Leadership - 6th of the 10 Kurlan Sales Management Functions

Sales and Sales Leadership Lessons from Lou Piniella and the Umpire

 

Topics: Dave Kurlan, sales leadership, Sales Force, sales enablement, sales architecture, world class sales organization, sales talent, top sales books, sales infrastructure, sales strategy

3 Types of Salespeople - Which are Best at Growing Sales?

Posted by Dave Kurlan on Mon, Jul 30, 2012 @ 14:07 PM

sailsYesterday, we were in a small seaside village and in a nautical gift shop, I read this sailing quote:

"The pessimist complains about the wind.  The optimist expects it to change.  The realist adjusts the sails."

Translated for selling:

"The pessimist complains about the prospect.  The optimist expects him to buy.  The realist adjusts the sales strategy."

Let's look at these three points a little more closely, shall we?

The pessimist: Sure, the pessimist will complain about the prospect, but more specifically, that the prospect wasn't open, was hostile, talking with competitors, wouldn't share a budget, wanted only a proposal, wouldn't commit to anything, blocked him from reaching a decision-maker, etc.  If this is normal buyer behavior, then this calls for a salesperson!  All salespeople must be able to navigate around and push through these common issues or we really can't call them salespeople.

The optimist:  The optimist has happy ears.  The bigger the opportunity, the better the opportunity.  The better they got along, the better the chance of a sale.  The longer they talked, the shorter the sales cycle.  Optimists are just as much of a liability as pessimists because they don't inspect or question what they hear.  They assume that everything will be okay.  While a positive attitude is good, it can be terribly frustrating!

The realist:  This is exactly who you need on your sales force.  Salespeople must be optimistic about their outcomes, but pessimistic about the things that could go wrong to derail the opportunity and prepared to overcome them.  The realist is flexible enough to be both pessimistic and optimistic at the appropriate times.

So, sailing, selling - the approach is the same except that while wind helps to expand your sails, having salespeople who are full of air doesn't help to expand your sales.

Most salespeople are good at talking and presenting - they are full of air - but 74% of them are ineffective when it comes to listening and asking good questions.  How about your sales force?  

Topics: sales competencies, sales culture, Dave Kurlan, sales management, sales personality, increase sales, sales strategy

Top 10 Sales Disasters, 10 Steps to Recovery and Hurricane Irene

Posted by Dave Kurlan on Wed, Sep 07, 2011 @ 10:09 AM

storm damageThe typical swimming pool, lawn and garden do not require a lot of maintenence time in order to keep them looking good.  For the most part, you develop a routine, determine a frequency, allot a certain amount of time each week, and you're golden.  Sales calls/meetings should be similar in that most of your calls/meetings should follow a similar routine (your sales process), last approximately the same amount of time (ask for enough time to complete your sales process), happen with the same frequency (either a certain number of calls/meetings per day or week; or a certain number of calls/meetings per sales cycle) and you're golden.

But what happens when disaster strikes?  Recently, Hurricane Irene left a large path of destruction along much of the eastern United States.  What routinely took an hour to maintain could now take up to a week or more to get the same result.  You can't rush, you need to be extremely careful, you might have to get help and the work may be much more labor intensive and difficult.

What about a sales disaster?  First, what are the sales disasters?

  1. Your contact departs from a major account
  2. You're told that your competitor will likely get the business
  3. Your customer is dissatisfied
  4. Your customer is angry with you or your company
  5. A customer cancels their business with your company
  6. A customer gives you an ultimatum and the offer is not acceptable
  7. You can't meet their deadline or spec
  8. Your product fails or your service doesn't work
  9. They misunderstood something you said and won't talk with you
  10. The prospect disappears or goes into hiding
Of course there are more scenarios but you get the idea.
Disaster recovery in sales is just like disaster recovery after a Hurricane:
  1. Assess the damage
  2. Strategize your clean up operation and get help
  3. GO SLOWLY - TAKE YOUR TIME
  4. Apologize for something
  5. Rebuild the relationship
  6. Reestablish trust
  7. Start your sales process from the beginning - not where you left off!
  8. GO SLOWLY - TAKE YOUR TIME
  9. Allow them to say no at any point in time to keep the resistance low
  10. Keep them comfortable

Sales Disasters and Storm Damage are very much alike and you handle the recovery in very much the same way - slowly and carefully.

Topics: Dave Kurlan, sales process, lost the sale, lost an account, hurricane irene, sales strategy

Startups and the Dilemma of the First Sales Hire

Posted by Dave Kurlan on Thu, Mar 10, 2011 @ 23:03 PM

When a company is ready to hire someone for its first sales role, they often face a big dilemma:

  • Should it be a salesperson?
  • Should it be a selling sales manager?
  • Should it be a selling Sales VP?

A salesperson could hit the phones and/or the pavement and generate some business fairly quickly, but won't be able to provide the strategic thinking that a VP would.  As a result, there won't be much focus on systems, processes or the best approach to the marketplace.

A sales manager, who could begin as a salesperson, should also be able to generate some revenue and transition back into sales management but this presents problems too.  At some point, the sales manager must stop selling to begin building a sales force and by then, the company cannot afford to lose the revenue being generated.  The sales manager, being more tactical than a strategic Sales VP, will also be challenged when it comes to systems, processes, market approach and strategy.

As we have already discussed, a VP provides the strategy and infrastructure the company will require, but typically comes from a corporate environment and won't have much desire to perform actual sales activity and sell.  Often, the revenue generating must wait until the VP hires salespeople and the early hires are almost always the wrong hires.  Why?  The type of salesperson who succeeded at the VP's prior companies may not succeed at this new company where they are likely to encounter significantly more resistance and may not be able to overcome it.

So who should a company choose as its first sales hire?

In my opinion, it doesn't cost that much more to hire a Sales VP AND a couple of salespeople.  In that way, the company gets its much needed infrastructure and strategy AND there are some salespeople attempting to generate revenue.  The company will likely replace all 3 sooner than expected, but they'll be off and running more effectively and efficiently than most companies ever do.

Topics: Dave Kurlan, sales management, sales architecture, sales strategy, business start-up

The App Store Provides Insights into Your Company's Sales Challenges

Posted by Dave Kurlan on Tue, Nov 30, 2010 @ 05:11 AM

App StoreLet's look at your company, brands, products and services.  Is there any possibility that someone could go wrong buying from you? 

To answer this question, let's first look at Apples's App Store. Normally I simply find the app I need and download it on the spot but over the holidays I had enough time to actually browse the App store.  When I got to the Book category I browsed by popularity and noticed that THE MOST POPULAR books for the iPad were not the latest romance novels, thrillers or biographies, and they weren't the New York Times bestsellers either.  Ready?

  1. Christmas Tale
  2. Shakespeare
  3. The Bible Reader
  4. Marvel Comics
  5. DC Comics
  6. Twas The Night Before Christmas
  7. Toy Story Read-Along
  8. The Velveteen Rabbit
  9. The Holy Bible - King James Edition
  10. Dr. Seuss's ABC  3.99
  11. Archie Comics
  12. MeeGenius! Children's Books
  13. Alice for the iPad-Lite
  14. NIV Bible
  15. Three Little Pigs
  16. Jingle All the Way
  17. Lesbian Short Stories, Part 1
  18. Children's Bible
  19. The Cat in the Hat 3.99
  20. Comics+

Kids, comics, Bibles, and Freebies pretty much sum it up.  Here's another way of looking at it.  Except for #17, they are all either safe, easy, traditional, low cost or tried and true choices.  You just can't go wrong making those choices.

If we eliminate FREE from the list, the only significant change is that the comics disappear to be replaced by more kids books, bibles and JFK: 50 Days.

If we eliminate the two Christmas books in the top 10, they would simply be replaced with two  non-holiday kids books.  If we eliminate the kids books altogether they would be replaced by more Bibles and Bible readers, and A Tale of Two Cities. And to reach the last of my top 10 paid non holiday, non kids books, Message Bible, we would reach the 166th most popular download.

Back to my opening question. Is there any possibility that someone could go wrong buying from you?  Is buying from your company the safest choice?  Is it the easiest choice?  Is it the traditional choice?  Is it free or very low priced? Is it the tried and true choice?

If it's not any one of those, then your salespeople better be performing in a big way (and I don't mean doing demos, presentations, quotes and proposals either).  Because the only way to achieve and sustain success when you have competition that is a safer, easier, more traditional, lower priced or tried and true choice is for your salespeople to sell their asses off (and I'm not talking about hard work either).

Your salespeople must be smarter, more effective, more strategic and more tactical than ever before.  They must also be more efficient, more capable and more resilient than ever before.  And don't even think about sending them out there without an optimized, formal, structured sales process.

How many of your salespeople qualify?

Don't forget to vote for my Blog for Top Sales Blog of the Year here.

Topics: Dave Kurlan, sales process, sales performance, Sales Tactics, Apple, App Store, sales strategy

3 Sales Approaches of Elite Salespeople

Posted by Dave Kurlan on Thu, Apr 08, 2010 @ 10:04 AM

On yesterday's episode of Meet the Sales Experts, my three guests, sales development experts Chris Mott, Frank Belzer and Rick Roberge, discussed the topics behind their upcoming presentations at the MIT Sloan School of Business Sales Club Conference on May 7.

When addressing a listener's question about skeptical prospects, it was interesting to listen, not only to their answers, but to HOW they answered.

Frank was strategic.

Rick was tactical.

Chris asked questions to further clarify.

Great salespeople must be able to easily use all three approaches on their sales calls.  Salespeople that struggle tend to have just one approach and it won't work all the time.  A salesperson who defaults to tactics may lack the ability to strategically set the context for those tactics.  A salesperson who defaults to strategy may not be able to dive down deep and wide enough to ask concrete questions and provide specific examples.  And a salesperson who doesn't first ask a bunch of quality questions to identify the real issue will waste their time talking about the wrong solutions.

How effective are your salespeople with these three approaches?

Click here to listen to yesterday's show.

Topics: Dave Kurlan, Sales Tactics, sales strategy, sales technique

Sales Strategy - 9th of the Top 10 Kurlan Sales Management Functions

Posted by Dave Kurlan on Wed, Dec 02, 2009 @ 05:12 AM

This is the 9th in the series of articles on my Top 10 Sales Management Functions.

#9 - STRATEGY

Strategy comes in several forms and is required in different dosages depending on the position.  For example, a line level sales manager may be more concerned with call strategy while a Worldwide VP Sales may be more concerned with market strategy.  At the VP level, strategy is far more important than tactics while at the sales manager level, tactics are more important than strategy.

Let's look at the various strategies that we should be discussing:

  • Market Strategy
  • Growth Strategy
  • Pricing Strategy
  • Competitive Strategy
  • Recruiting Strategy
  • Account Strategies
  • Call Strategies
  • Compensation Strategy
  • Development Strategy
  • Major Account Strategy
  • Lead Generation Strategy
  • Training Strategy
  • Territory Strategy

In your company there may be more and there are probably less but you get the picture.  Strategies are different than plans because strategies are the essence of what will make the plans work.  They incorporate:

  • goals
  • decisions, rules, and/or guidelines
  • method of accomplishment
  • benefits of this approach
  • likely obstacles and how formidable they may be
  • how we will overcome the likely obstacles
  • measurable milestones and anticipated dates
  • contingencies
  • steps 
  • communication of the strategy
  • buy-in from those responsible for executing the strategy
  • accountability of those responsible for executing the strategy
  • periodic reviews

In our discussion of coaching, we identified pre-call strategizing as one of the most important coaching components along with post-call debriefing.  So strategizing and coaching can overlap  in much the same way the accountability and strategizing will overlap.  So it should be obvious that recruiting and strategizing will overlap too.

Let's discuss Development Strategy. Some people are simply more strategic than others. For example, if you aren't naturally as strategic as you should be, you can either develop this discipline, or better align your role with your strengths.  We all know that many great salespeople become ineffective sales managers when they aren't able to excel at coaching and accountability, and when they want to be hero closers rather than developers who generate revenue through others. This is a classic example of someone who should return to sales. Titles should define what we do, not who we are.

(c) Copyright 2009 Dave Kurlan 

Topics: Dave Kurlan, Sales Force, sales management functions, sales strategy

Sales Force Lessons from Gates, Crowley and Obama

Posted by Dave Kurlan on Tue, Jul 28, 2009 @ 06:07 AM

The outraged Harvard Professor who was arrested and Cambridge's arresting officer of record will both meet over a beer with President Obama at the White House this week.  The President is reaching out to mend fences between local adversaries and as unusual as that sounds, I'm surprised it doesn't happen more often.

This sort of thing happens - parents bringing to quarreling kids together. Sports managers uniting players that don't get along.  Letterman and Oprah.  But it happens in business too.  The boss meeting with the manager and employee that are having trouble.

This should happen a lot more often on the sales force.  How often do customers become upset over the behavior of a salesperson, customer service rep, technician or even accounting?  When controversy jeopardizes a good account, it's time for the president or CEO to reach out and mend fences between adversaries!  Some top ranking executives feel as though they are above such gestures but now we have precedent.  After all, when the President of the United States of America can bring cop and professor together, you can bring customers and company representatives together too.  It should be a best practice and it shouldn't be limited to behavioral disasters either.

How about good opportunities with profitable accounts that can be leveraged?  When a salesperson or team loses traction, hasn't positioned itself correctly, or takes a misstep along the way, isn't it appropriate for a top executive to step in?

So what should an Entrepreneur do? While there are upsides to Entrepreneurs being their own best salespeople, there are downsides too.  The two biggest are:

  • Despite being the president, they are viewed as a salesperson
  • When things go wrong, there isn't anyone higher up to step in and reset the opportunity 
I know a CEO of one large company who makes calls to existing customers and not only makes his presence known, he always asks for more business.  Why not take advantage and leverage your position?

(c) Copyright 2009 Dave Kurlan

 

Topics: sales competencies, sales, selling, Sales Force, CEO, sales personality, sales strategy

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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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