How Your Sales Team Can Double its Win Rate in a Recession

Posted by Dave Kurlan on Mon, Sep 26, 2022 @ 14:09 PM

double

Isn't it awesome when you learn about new tricks your computer, phone or software can do that you weren't previously aware of? I've been using a number of new widgets on the home screen of my iPhone 13 and I love how quickly I can get or enter information!

Isn't it fascinating when you thought you knew what a product was all about but you were wrong?  A client was having great success using OMG (Objective Management Group) to assess their sales candidates and they assumed the sales candidate assessment was the only thing OMG offered.  When they learned that our core offering is evaluating their existing sales team they became excited about what that would mean for addressing their two biggest selling challenges.  

One of their issues was their 20% win rate was much lower than they thought it should be and they believed their salespeople needed some refresher training on closing.  They also had a large number of opportunities stalled in the pipeline and they believed that training on more effective techniques to conduct follow up calls would help.

In this article, I thought it might help if I share a bit of what they learned about their sales team.

It turns out that they didn't have either a follow up or a closing problem.  The three biggest issues were that their salespeople were:

  1. Not reaching the individuals who actually made the decisions to buy their services.  They knew they had to reach that person and  reaching that high in the organization was a milestone in their sales process but only 7% of the sales team was having any success doing that.  We also learned that the salespeople who did get to the decision maker were 400% more likely to close the business than the others on the team.



  2. Somewhat ineffective at Discovery and as such, were not uncovering compelling reasons for their prospects to buy.  Without compelling reasons, there was a lack of urgency and without urgency, there was nothing compelling their initial contacts to get the decision makers involved or the money approved.  The salespeople were simply not getting their prospects beyond "nice to have."
  3. Not selling value. They were focused on selling value, but because they were not uncovering compelling reasons to buy, they were unable to communicate their value in terms that would resonate with their prospects.  As a result, by the time the opportunity was proposal-ready, 50% had reverted to price-based opportunities.

These three issues were not the only issues facing this company but to give you a sense for how crucial these three issues are, read the next sentence three times.  If they were to do nothing else, but they relentlessly trained, coached and role-played these three issues, they would double their win rate next near. DOUBLE THEIR WIN RATE!

Some companies learn that their issues lie within their pipelines because the opportunities are not well qualified or scored.  Other companies learn that their problem is the company's ineffective sales process.  Some companies discover that the problems have more to do with not having the right salespeople in the right sales roles, a selection problem.  At other companies, we learn the problem is ineffective sales management, due to ineffective coaching and/or accountability.  Motivation is the problem at some companies while the thing that looks and sounds like complacency is often a problem with lack of Commitment.

Some companies have sales teams that aren't very effective developing relationships while others have trouble leveraging the relationships to generate revenue.  I've seen some sales teams that weren't very effective at building trust and credibility while other companies had hired salespeople whose Sales DNA wasn't strong enough to differentiate their higher priced products or services in the C Suite.

The problems I mentioned above are a small sampling of the many issues OMG identifies and it might surprise you to learn that many sales teams have all of these problems and more.

You can't fix the sales problems you can't measure.

When you scientifically measure exactly what the sales problems are, who has the problems, to what extent those problems exist and what the complimentary problems might be, you can begin to determine exactly what kind of development, training, coaching, and even organizational changes are required.

Or, you can do what this company was about to do before they evaluated their sales team and hire a sales training company to train on the latest and greatest closing and follow up techniques. After reading the story, you will understand that what they thought they needed for sales training would have never helped - not even a little!

If you are interested in learning more about having your sales team evaluated, you can email me and I'll get your request to the right person. If you don't want to hear from anyone (an example of a non-supportive selling belief that lowers Sales DNA), you can head to this site where you can get started on your own for free.  Full disclosure, at some point you will still have to speak to someone and pony up to receive the deliverables.

Image copyright 123RF 

Topics: Dave Kurlan, sales process, sales training, Sales Coaching, recession, OMG evaluation, creating urgency, sales team evaluation, discovery

Crappy Salespeople and Lack of Urgency Alignment  - The Bob Chronicles Part 4

Posted by Dave Kurlan on Tue, Apr 27, 2021 @ 12:04 PM

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We shouldn't discuss that time you were in a meeting when, without warning, you had about 10 seconds to get yourself to the nearest restroom or you would need to drive home for a wardrobe change.  Fortunately, you were able to gracefully excuse yourself and run down the hall as fast as you possibly could.  THAT is urgency!

This is the fourth installment in the Bob Chronicles.  Bob is the weak salesperson who represents the bottom 50% of all salespeople. You can read previous installments about Bob below:

The $225,000 Mistake That Most Salespeople Make

Data - The Top Salespeople are 631% More Effective at This Than Weak Salespeople 

Good Bob, Bad Bob, The Stockdale Paradox and Sales Success

You're probably wondering, what did Bob screw up this time?  He screwed up urgency.  You might be asking how a salesperson could possibly screw up urgency but Bob and the rest of the weak salespeople screw up just about everything else so why not urgency too?

As usual, Bob was unaware that Mary, his prospect, was also talking with three other companies.  Mary asked for a proposal and Bob obliged, coming in well over the agreed upon budget and upsetting her in the process.  Mary reminded Bob that the proposal was nearly 25% higher than the budget they had all agreed to.  She asked Bob to stay within the budget and send a revised proposal.  Did Bob follow up appropriately?  No!

A couple of months had passed when Mary notified Bob that they were going with another company.  Bob was crazed and in a panic.  He reached out to Mary and requested a call.  She said she was sorry but had already made her decision.  Bob requested a call again and was told that she had signed a contract with another company.  In the middle of an acute panic attack, Bob decided to send a revised proposal and discounted the original offer by 35%.  Once again, Mary said, "This is too late - we already signed with another company."  Bob said, "But I offered you a 35% discount - that's even better than what you budgeted for!"  Mary disconnected the phone.

This is all about urgency.

Mary had a lot more urgency than Bob was aware of because Bob didn't ask the most important questions, like, "How big is the problem?" and "What is it costing?" and "How soon do you need it solved?" and "What happens if you don't have it solved by then?" and "Who else have you asked about this?"

Bob had a ton of urgency, but not until he realized he had lost the business.  If he had exhibited half the urgency earlier in the process, while uncovering Mary's urgency, their urgency would have been aligned.  Urgency alignment is crucial.  

If the salesperson has urgency but the prospect does not, the perception is that of a pushy salesperson.  If the prospect has urgency but the salesperson does not, the perception is that of an unresponsive salesperson.  When both the salesperson and the prospect have urgency, they will easily work collaboratively to solve a problem.  

Early in the process, Bob was perceived as being unresponsive.  Late in the process, Bob was perceived as being tone deaf and pushy.  However, when salespeople strike that perfect balance, magic happens.  Salespeople who are effective creating urgency AND having urgency are 35% more effective than salespeople who fail to get their prospects to "must have" and lack urgency themselves.

Finally, why did this happen?

Early in the process, Bob didn't listen, didn't ask enough questions and didn't push back on the budget.  By failing to push back, Mary believed that Bob would deliver a needs and cost appropriate solution. Then, when Mary pushed back, Bob was unresponsive.  These two events suggest that Bob wasn't controlling his Emotions and Needed to be Liked.  Those two weaknesses combine to make it difficult to listen, and too uncomfortable for him to push back and ask questions.  As you can see from the table below, the bottom 50% of all salespeople tend to be especially weak in both of these Sales DNA competencies.

When things spiraled out of control, Bob's emotions caused him to panic.  His non-supportive beliefs about pricing kicked in Bob always looks for the lowest price when he buys things for himself. Despite being too late to influence the decision, Bob believed that if he came back with an attractive offer, it would change the outcome.  As you can see in the table below, 26% of weak salespeople need to shop for the lowest price and they mistakenly believe that their prospects behave similarly.

There is so much more that goes into selling than following your sales process and having sales strategies and techniques.  There are 21 Sales Core Competencies and salespeople must be strong in all of them, not just some of them.  You can see all 21 Sales Core Competencies here and while you're there, view, filter and sort the data on nearly a third of the 2,091,766 salespeople that have been evaluated and assessed by Objective Management Group (OMG). If you want an easy-to-use, accurate and predictive sales candidate assessment to select and hire your new salespeople, check out OMG's award-winning sales candidate assessments here.

Rocky LaGrone added THE BEST COMMENT ever to this post on LinkedIn.

Image Copyright: Scott Betts

Topics: Dave Kurlan, sales process, sales training, Sales Coaching, sales assessements, sales effectiveness, creating urgency, lost deals

New Data Shows That Elite Salespeople are 700% Less Likely to Do This

Posted by Dave Kurlan on Mon, Aug 20, 2018 @ 15:08 PM

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How effective are salespeople when it comes to creating urgency?  I'm not talking about salespeople who create urgency by telling their prospects that if they don't order today the price will go up or it won't be available.  I'm talking about salespeople who create urgency by asking questions to uncover problems, the consequences and cost of which, create urgency.

You probably know that most aren't great at it.  After all, with so few salespeople having mastered the consultative approach, it's unlikely that one can achieve urgency using a transactional approach.

The latest data below from Objective Management Group (OMG) shows sales effectiveness relative to sales percentile and ability to create urgency. The following 1-minute video explains the difference between a transactional sale and a consultative approach, along with the differing outcomes.

 

The table below is derived from 1831502 salespeople assessed or evaluated by Objective Management Group, Inc. (OMG).  These findings make up some of the attributes of the Consultative Seller competency.  You can see and interact with data from all 21 sales Core Competencies here.  
urgency-stats

The 1st column in the table above shows the distribution by Sales Percentile, the next 3 columns show the percentage of salespeople in each group and how wide and deep they penetrate to find reasons to buy.  The last 3 columns show the state of buying readiness they achieve and the last column on the right shows the percentage of salespeople who are able to create urgency.

While only half of Elite salespeople are strong at creating urgency, elite salespeople create urgency 326% more often than their weaker counterparts, fail to uncover anything more than interest 700% less often and fail to get beyond "nice to have" 329% less often.

Unfortunately, weak salespeople make up 50% of the sales population and in the US alone, that's 8 million weak salespeople!

Make sure you don't hire any of that group by using OMG's accurate and predictive, sales-specific Sales Candidate Assessments.

Join the discussion on this article on LinkedIn.

Image Copyright iStock Photos

Topics: Dave Kurlan, Consultative Selling, sales assessements, creating urgency, sales data

Why Uncovering Pain Doesn't Close the Sale with a CEO and the 3 Conditions You Do Need

Posted by Dave Kurlan on Mon, Apr 04, 2016 @ 15:04 PM

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Other than birthdays, anniversaries, holidays and sporting events, how many occasions are there when you have repeated an event, in one form or another, for at least 22 years. Not many, right?  This past weekend, I hosted 130 sales experts from around the world as part of Objective Management Group's 22nd Annual OMG Conference.  I'm proud that we kept these sales experts engaged to the point where there were just as many people in the room for the end of the final presentation as there were for the beginning of the first presentation. I want to share 5 out of more than 100 important insights that they took away which apply equally to you too.

Playing Your Part

There were some great take-aways from our keynote speaker, Brandon Steiner, CEO of Steiner Sports.  He offered dozens of insights and suggestions and shared some great stories, but the two that really stuck with me were:

  1. "Are you a participant or a spectator?"  In my opinion, there are just so many salespeople that would fall into the spectator category - reacting, responding and facilitating - instead of the participant category where they are proactively building their pipeline, gaining traction, achieving velocity and closing business.
  2. "The underdog has nothing to lose - it's like playing with house money!"  It's just like this quote from Band of Brothers which I included in this article, "You're Afraid to Sell Because You Have Hope."   Actual video clip...

Selling to the CEO

One participant asked why it was so difficult to get a CEO to pull the trigger despite having uncovered some pain points. I explained that pain points alone may help to eventually create some urgency, but they represent only one of the three conditions necessary to create enough urgency to cause action.

You may be able to use the pain you uncovered to create the second condition - quantifying the opportunity.  Properly quantifying an opportunity requires using math in a way that helps you build your case, and you can see it demonstrated here.  Quantifying may help you develop a compelling reason for the CEO to move forward, but as I mentioned, it's a CEO, and a CEO may need three conditions to be in place.  The third condition is a connection to their end game - their overall long-term strategy. When CEO's can't see how your solution helps to achieve their long-term strategy and goals, they may not buy despite the pain you uncovered!  

As I explained to the group, it's a lot like a Nor'easter.  For a blockbuster snowstorm like a Nor'easter to materialize, there are three conditions that must exist.  The first is that there must be cold air from Canada in place.  No cold air?  No snow.  The second condition is that the storm must pick up a significant area of moisture from the Gulf of Mexico or the waters off of the southern coast of the US.  Without the moisture, there can be no big storm regardless of how much cold air there might be.  But there is a third condition that must occur, and that is a favorable track of the storm.  If the storm tracks too far inland, the storm will be in the form of rain.  If it tracks too far to the south and/or east of New England,  only Cape Cod and the islands will see snow.  The storm must track just to the south and/or east of Cape Cod and then most of New England gets a major snow storm.  When salespeople uncover only pain, that's the equivalent of the moisture - but we don't have the cold air in place and the track of the storm sends it out to sea.

21 Sales Core Competencies

We shared the latest enhancements and new features of our Sales Force Evaluation and the attendees were very excited about the expansion of 5 of the Sales Core Competencies for which we already had findings.  Effective today, we have expanded the competency sets for:

  1. Milestone-Centric Sales Process
  2. Relationship Building
  3. CRM Savvy
  4. Social Selling
  5. Pipeline Management (sales management)

We previously included findings/scores for these competencies, but now we show approximately 8 attributes for each of these 5 competencies - a lot more details and explanation. They round out the 21 Sales Core Competencies that we measure and report on.  The 21 Sales Core Competencies can be seen here.   

Motivation

Last year, we announced that we had expanded our measurement of sales motivation.  We had already begun looking at both intrinsic and extrinsic motivation when we began measuring 7 additional ways that salespeople are motivated.  This year, we announced that in addition to intrinsic and extrinsic motivation, we will begin measuring altruistic motivation.  This is important because sales managers are finding it more difficult to help salespeople who are not motivated by money. When sales managers understand how salespeople are motivated, they can use other strategies and tactics to help maintain motivational consistency.

Zero's are Like Carbs

One of the big take-aways for the group was my comment that zero's are like carbs - they're bad for you.  All of the zeros that appear, when the value of a huge sales opportunity is entered into the CRM application, cause salespeople to become inappropriately excited.  They facilitate instead of pushing back.  They respond instead of being proactive.  They get happy ears instead of continuing to question things.  Just cross out the zeros and treat it like any other opportunity!

There were literally dozens of other insights and take-aways that I don't have time to share today, but if you like these, let me know and I'll share some more in my next post.  I'll know you liked it if you click the LinkedIn share button at the top of the article.

Topics: Dave Kurlan, sales force evaluation, objective management group, creating urgency, selling to the CEO, uncovering pain

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Best-Selling Author, Keynote Speaker and Sales Thought Leader,  Dave Kurlan's Understanding the Sales Force Blog earned awards for the Top Sales & Marketing Blog for eleven consecutive years and of the more than 2,000 articles Dave has published, many of the articles have also earned awards.

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