Surprising New Data on Salespeople Busts the Myths about Relationship Selling and Social Selling

Posted by Dave Kurlan on Thu, Jun 16, 2016 @ 13:06 PM

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Image Copyright 123RF Stock Photo

 

If you are a regular reader, you might recall this great article on Selling to a CEO.  In that article, I also mentioned some of the expanded Sales Competencies that Objective Management Group (OMG) now measures.  Before April, Relationship Building and Mastery of Social Selling were findings in our evaluations, but now, they are full blown competencies with complete sets of attributes.

I had a theory about salespeople, but didn't have the data to prove it out.  I believed that social selling was a godsend to those in sales who were not great at relationship building - that by utilizing applications like LinkedIn and Twitter, they could reach out to new people, but with the benefit of hiding behind the glass screen. Do you think I was right?  Or wrong?

 Actually, I couldn't have been more wrong!

We took nearly 5,000 rows of data from the past 2 weeks and looked at those two competencies and compared the results.  In the 1st graph, you'll see that the overwhelming majority of salespeople are poor at both, or to put it in my vocabulary, they suck at both!  Just 5% were good at both, 11% excelled at social selling and 16% excelled at relationship building.  

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So I wondered if the data might be skewed based on demographics.  For instance, would the data show that salespeople with more than 10 years in sales are less effective at social selling and better at relationship building?  We filtered the data and removed everyone who had fewer than 10 years of sales experience, leaving us with around 1,850 veteran salespeople.  The graph looked nearly identical to the first graph but the veteran group at 33% was much better at relationship building, 11% - the same as the entire population - had mastered social selling and 8% achieved high scores in both.

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So I wondered what would happen if we looked at the people who were new to sales. This time, we filtered the data and removed everyone who had more than 5 years of sales experience, leaving us with around 2,000 newer salespeople.  This graph also looked quite similar, but there were a few small differences.  Just 2% of the newer salespeople were good at both competencies.  33% were good at relationship building, and surprisingly only 9% had mastered social selling - an even smaller percentage than the veteran group!

 

rel-soc-graph2.jpg

 My theory?  Out the window.  Not even close!  Instead we made two even better discoveries from this exercise:  

  1. The majority of salespeople, who aren't very good at relationship building, will be equally poor at social selling.
  2. Although you and I are selling socially, most salespeople - 89% are not effective at social selling! 

Are you surprised by any of these discoveries?  What are your thoughts?

Topics: Dave Kurlan, sales, selling, twitter, Relationship Selling, linkedin, social selling, sales assessments

How Dramatically Has Selling Changed?

Posted by Dave Kurlan on Thu, Feb 19, 2015 @ 06:02 AM

dramatic-change

Image Copyright: 123RF Stock Photo

Yesterday, I was listening to a radio promotion when they said, "Take a selfie with a standie and then, using your smartphone or tablet, upload it to Facebook, or tweet your image using hashtag [something I can't remember]."

Now, pretend it's 1995, and reread the quotation.  Twenty years ago, would you have recognized any of the words other than "take", "and", "then", "using", "your", "or" and "to?"  In 1995, selfie, standie, smartphone, tablet, tweet, hashtag, upload, and Facebook would have had you believing that you were listening to a foreign language.  That's just one example of how dramatically some things have changed in the past 20 years.

Let's take selling.  How dramatically has that changed in 20 years?

There are some obvious changes that most people in sales will recognize, like:

  • Salespeople are no longer sources of product knowledge or pricing, both of which are readily available online.
  • Salespeople enter the sales cycle only to find their prospects much further along in their buying cycle.
  • Salespeople utilize Twitter, LinkedIn, Google, email marketing, blogging, and the web for knowledge and to connect with prospects, before they speak for the first time.
  • Personal online networks, like Facebook, Google+, and LInkedIn are exponentially larger than the physical networks of twenty years ago.
  • Salespeople with transactional products and services, like tickets, travel, commodities and most retail items have found themselves being replaced by online sales.
  • Many salespeople who once worked in a territory or vertical, now find themselves doing the exact same thing by phone.
  • Video conferences and phone calls are replacing face-to-face visits.
  • Inbound, Lead-Gen, and Appointment Setting Teams are recent additions to Inside Sales.
  • Value Propositions and Added Value have given way to salespeople who must now be the value.
  • A vast array of productivity tools, especially those that sync between devices, make selling not only more efficient, but more fun.
  • National and global competitors are making it more difficult to win the business.
  • Demos can be easily conducted online.
  • There are vast amounts of free, online resources that individuals can use to improve themselves.

And then there are the changes which are not as obvious, like:

So my question is, are these changes good or bad?  Have you made any or all of these changes?  If you have ignored any of the changes, was it due to ignorance, discomfort, or arrogance?

What is the next change that will rock your world?

Topics: Dave Kurlan, Consultative Selling, close more sales, twitter, linkedin, selling value, long sales cycle, sales win rates, google plus

Selling Value - Everything You Always Wanted to Know

Posted by Dave Kurlan on Wed, Dec 03, 2014 @ 23:12 PM

value

Copyright: kchung / 123RF Stock Photo

Some news stories just don't go away.  Today those stories include Ferguson, Bill Cosby, ISIS and The NFL's Domestic Abuse Problem.  There is also Obamacare, Immigration and Ebola.  They remain in the news more because the media continues to milk these stories then readers demand to know more.

When we look at the sales stories of the recent past, the topics that sales experts continue writing about are Social Selling, Inbound Marketing, LinkedIn, Twitter, CRM and Lead Nurturing.  They remain in the news more because the writers are attempting to sell their own services that happen to support those topics more than readers demanding to read more about it.  There's nothing wrong with these topics of course, but sales experts should be addressing topics more closely aligned with helping sellers sell, instead of so much space being devoted to what takes place at the top and above the top of the sales funnel.

So if not those topics, then what should we all be writing about - all the time - that would be a real difference maker for salespeople?

I believe that it's the importance of and ability to sell value.  Why, you ask? 

Selling value is the one thing that all salespeople, operating without benefit of the lowest price, absolutely, positively, must be able to do well in order to consistently earn the business.  

Despite the need to effectively sell value, it happens to be one of things that salespeople do very poorly. The importance of selling value isn't going away, but sales experts are not spending enough time talking about it, writing about it, explaining it, or providing training on it.  The most critical aspect of this topic is understanding the many factors that support a salesperson's ability to sell value.  Selling value isn't a specific thing that one says or does, as much as it's an outcome of several other things.  According to Objective Management Group's (OMG) statistics (close to one million salespeople assessed), of the 6 most important factors required to sell value, most salespeople have, on average, only 2 of them as strengths or skills.

This is such an important topic that last week I hosted a broadcast on Selling Value in Modern Times.  If you would like to watch it, run time is 46 minutes.

According to a Google search on my blog, I've written about or mentioned selling value, in some way, shape or form, 766 times in the past 10 years.  Here are 10 of my favorite articles on selling value and when you extract the major points from each, it provides a very nice collection of guidelines for selling value:

Is the Sales Force Getting Dressed Up or are Real Changes Taking Place?

Closing and Negotiating Challenges - Symptoms of Another Selling Problem

Sales 102 - The Pitch Deck, the Price Reduction and the Data

This Simple Strategy Will Sell Your ROI and Value Proposition Every Time

Why This is Still a Great Selling Sales Book After 10 Years

Price Quotes and the Inability of Salespeople to Sell Value

The One Thing Most Salespeople Are Unable to Do

Why There is No Value When You Provide Value Via Special Pricing

Top 10 Outcomes When Salespeople Screw Up Selling "Value Added"

Top 5 Sales Issues Leaders Should Not Focus On

This is the One Thing Missing from the New Way of Selling

Do You/Should You Have a Complex Sale?

Top 10 Reasons Why Salespeople Let Price Drive the Sale

How to Add Value to Your Sales Offering

New Metrics for the Sales Force - Unusual Thoughts for Unusual Times

Boston Ballet and Money Tolerance - What it Means to Your Sales Force

As I mentioned above, selling value does not stand on its own.  You should now understand that from the value selling broadcast and the articles above,  there are several other factors that contribute to selling value.  Unless salespeople are able to effectively integrate all of the necessary factors (Sales DNA, sales process, strategy and tactics), then the end result will always be salespeople that are only able to talk about value, instead of actually becoming the value.

I'll be hosting a webinar on December 10 at 11 AM Eastern Time.  We'll be discussing the 5 Hidden Factors that Determine the Fate of Every Sales Force.  Selling Value is certainly one of those factors!  It will run for about 45 minutes.  If you would like to attend you can register here.

Topics: Dave Kurlan, Inbound Marketing, crm, twitter, Pipeline, linkedin, social selling, selling value, Lead Nurturing, top of the funnel, Bill Cosby, Value Proposition

Increase in Social Selling Yields No Improvement in KPI's

Posted by Dave Kurlan on Tue, Nov 05, 2013 @ 12:11 PM

Yeah, just in case you didn't get that, I'll lay it out for you.

In a recent mining of Objective Management Group's data from June of 2013, there was a huge increase in the number of salespeople using social sites like LinkedIn, Twitter, Facebook, Spoke, Plaxo and Reachable for selling.  The graph looked like this:

Social Selling Stats

I was impressed with this development...but...there is a huge problem with this.  For all the attention that these sites get, for all the salespeople who now spend their evenings perfecting their profile, adding people to their networks and asking for introductions, what hasn't changed for the better are these key metrics:

  • Calls-to-contact ratio is now over 10:1 - worse than ever before.
  • Contact-to-meeting ratio is worse, not better.
  • Sales cycle length is longer, not shorter.
  • Closing percentages are lower, not higher.

Weren't the social sites supposed to help with those metrics?

Not really.  These sites help salespeople connect - in the slightest of ways.  Do you even know half of the people in your network?  

Your network is like your neighborhood.  You know that they are there, you recognize them as they go by, in their cars, on their bikes or while walking their dogs.  But, you are only friendly with a small percentage of them.  How likely is it that salespeople could improve their effectiveness because of their neighborhood?  Well, the same is true of their networks.  And the online networks don't work any better than the real networks that they belong to in their home towns.  You know the ones I'm talking about.  The chamber, the business networking groups, the peer groups, the resource groups, etc.  In theory, they're all great, but in reality, how often do they produce measurable business from people who aren't your friends?

Networks provide the framework to connect, but nothing happens automatically.  Salespeople must still be effective enough, when reaching out, to convert that connection to a call, meeting, opportunity and sale.  And sadly, we just aren't seeing any improvement in the selling capabilities of the global sales population.  It's almost exactly the same as it was 10 years ago!

It's time that we stop expecting sales to increase as a result of CRM, social selling tools and email.  They are great tools, but none of them replace actual selling, and even worse, all of them serve as distractions, false safety nets and busy work that must be completed before salespeople are caught up and can get on the phone.

Topics: Dave Kurlan, Sales 2.0, twitter, sales metrics, linkedin, KPI, social selling

Sales 2.0 - The Answer to our Prayers or a Costly Distraction?

Posted by Dave Kurlan on Tue, May 04, 2010 @ 21:05 PM

Every day I read, hear and get asked about the various modern methods for salespeople to meet, engage and get in front of prospects.  Every day, the emphasis moves a little further toward the Sales 2.0 approach to getting found - LinkedIn, Blogs, Facebook, Twitter, E-blasts, and Youtube.  As a result, the emphasis moves further away from traditional prospecting. It was just two years ago that everyone was writing - trumpeting - that Cold Calling was dead, that Selling was dead.

Let's take a look at this phenomenon from another perspective.  Sales 2.0 is simply a high-tech, 21st Century version of the low-tech, 20th Century method for approaching, engaging and getting in front of prospects.  You know what I'm referring to:

  • Networking events
  • Leads groups
  • Inner circles
  • Social circles
  • Religious groups
  • Country Clubs
  • Friends
Salespeople did it all with handshakes and telephones and it did for salespeople in the 20th Century what Sales 2.0 does for salespeople in the 21st Century - only slower and less superficially.  The bigger difference is that 20th Century Salespeople understood that those groups were supplements - albeit important ones - to the primary activity of prospecting.  For some reason, 21st Century salespeople think that prospecting is the supplement to Sales 2.0.  Well I have news for you...

Hear Ye, Hear Ye.

You can't control the number of quality opportunities that come your way from Sales 2.0 activities.  I'm not suggesting that salespeople abandon Sales 2.0.  Far from it.  I've posted 630+ articles on this Blog and they generate more leads than you could imagine.  However, they aren't all to our target market, they are often to the wrong person in the organization, very often of questionable quality, and in some cases, it would be difficult to even call them leads.  Despite that,  it is still a more effective method for generating leads than many alternatives.  The very important point is that we don't know what the quantity and quality of the leads will be on any given week so leads can only supplement traditional methods of attracting new business. They cannot replace them.

So Blog away my friends.  Connect to everyone you can.  Upload your videos.  Just do it at night because during the day - you have to prospect the old fashioned way.

Topics: Dave Kurlan, sales management, Sales Force, twitter, YouTube, Blogging, linkedin, lead generation

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Best-Selling Author, Keynote Speaker and Sales Thought Leader.  Dave Kurlan's Understanding the Sales Force Blog earned a medal for the Top Sales & Marketing Blog award for six consecutive years. This article earned a Bronze Medal for Top Sales Blog post in 2016, this one earned a Silver medal for 2017, and this article earned Silver for 2018. Read more about Dave.

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