Sometimes The Biggest Sales Problems Have the Simplest Solutions

Posted by Dave Kurlan on Tue, May 30, 2023 @ 13:05 PM

simple-solutions

Some of my long-term problems had such simple solutions. If only I had thought of the obvious solutions first.  For example:

For decades, I could not drive for much longer than two to two and a half hours before my eyes would get so heavy that I risked falling asleep at the wheel.  Day or night, year after year, all of our trips were based on how far I might have to drive.  And then I discovered the solution.  Sunglasses.  Yup, with prescription sunglasses, my driving fatigue became a thing of the past and I can drive for hours and hours without getting sleepy.

For months, I had a bright red rash that would continue to reappear under my arms.  While a prescription ointment would help it disappear after about a week, it would continue to reappear.  And then I discovered the solution.  Anti-perspirant.  Yup, all I had to do was to switch from a deodorant to an anti-perspirant and voila, no more rash, ever.

For the last six months I had an acute eczema breakout in, on and behind my ears.  It was really bad, and included burning and itching and flaking.   I used 2 different prescriptions, Neosporin, Eczema creams, honey, balms, coconut oil and anything I could find.  Nothing worked.  Then I tried Aquaphor Advanced Healing Ointment and in three days it was cleared.

Are you getting the picture.  Nothing worked and then sunglasses, anti-perspirant and Aquaphor.  Simple, easy, fast, and powerful.

There are simple, easy, fast and powerful solutions for sales problems too.  See my examples below.

Not enough new meetings?  There four possible reasons and fairly obvious solutions:

  1. Salespeople aren't prospecting as required because they have call reluctance.  Hire hunters.  Hoping for change isn't a viable strategy.
  2. Salespeople aren't prospecting as required because sales managers are not holding them accountable.  Hold your Sales Managers accountable for holding their salespeople accountable to agreed upon KPIs.  Make it a condition of continued employment.
  3. Salespeople are prospecting but their messaging is awful. Have an expert change or tweak the messaging for prospecting calls.
  4. Salespeople are prospecting, have good call messaging, but they sound awful or are not being well received.  They won't improve unless you have them trained on cold-call delivery.

Opportunities getting stuck in the pipeline?  There are five possible reasons and some obvious solutions:

  1. Salespeople are not reaching decision makers.  Opportunities are 341% more likely to get stuck if your salespeople aren't talking with decision makers.  Get them trained on how to reach decision makers.
  2. Lack of urgency.  Salespeople are not uncovering compelling reasons to buy, preventing them from reaching decision makers, getting money approved, and moving the opportunity forward.  Get your salespeople trained on how to take a consultative approach and get your sales managers trained on how to coach up your salespeople.
  3. Not being the value.  If prospects don't perceive they are receiving value from a salesperson, they have no reason to move forward with the salesperson.  This isn't talking about value, explaining the value proposition or adding value to your solutions, this is the salesperson being the value.  Get your salespeople trained on how to be the value.  
  4. Salespeople are not following an optimized, staged, milestone-centric, customer-focused sales process.  Have this process created and get the sales team trained on how to execute it.
  5. Not thoroughly qualifying their opportunities, causing inappropriate quotes, proposals and presentations.  Get your salespeople trained on how to thoroughly qualify and hold your sales managers accountable for holding salespeople accountable to justify every proposal or quote. 

Salespeople are under-performing and not hitting quota. There are an unlimited number of possible reasons, from poor selection, to ineffective or non-existent on boarding, to low Sales DNA, to skill gaps, to lack of motivation, lack of direction, lack of support, lack of training, lack of or ineffective coaching, and on and on and on.  Here are a couple of obvious solutions:

  1. Have the sales team evaluated and get the data so that you know for sure if your under-performers can be trained and/or coached up or if what you see is what you will continue to get.  If they are part of your past but not part of your future, replace them today.  If they are part of your future, get them sales training.  You'll also need to learn whether their performance or lack thereof, is self-inflicted or enabled by ineffective sales management.  Learn more here.
  2. Give them an ultimatum but consider the length of the sales cycle.  So many companies give salespeople 30 - 60 days to turn things around but if you have an 8 month sales cycle then you either need to give them 8-12 months, or tie the improvement to KPIs that are within reach of 30-60 days.

There isn't a single scenario going on with your sales team that we haven't seen, addressed, and solved in the past 37 years.  It doesn't matter how small or large your team is, what industry you are in, which markets you sell to, what your price points are, how long you've been in business, how well-known you are, or what your challenges are.  Some companies make the mistake of accepting and being resigned to these challenges, preventing them from getting solutions.  These are the steps you must take to solve your problems:

  1. Acknowledge the problems 
  2. Choose to take action
  3. Get outside expertise
  4. Pull the trigger

Image created by AI from 123RF

Topics: Dave Kurlan, Consultative Selling, sales process, sales training, sales management, Sales Coaching, sales prospecting, sales selection, selling value, sales team evaluation

Did You Know That You Have Woodpeckers on Your Sales Team?

Posted by Dave Kurlan on Mon, May 08, 2023 @ 13:05 PM

pileatedwoodpecker

The landscaper called me over to look at a tree on our property.  He showed me the enormous hole and I asked, "What did that?"

"Woodpecker," he said.

On one side of the tree we had this perfectly cut, huge hole, and the other side of the tree had many small holes.  I learned that the Woodpecker that made the small holes were looking for food while the Woodpecker that made the huge hole was making a home.  Hunters and Farmers. 

                                                  IMG_0313 woodpecker-holes

Just like the two types of Woodpeckers, salespeople tend to fall into the same two categories of being either Hunters or Farmers.  In a perfect world, Hunters make lots of outgoing calls in order to find an opportunity which could pay them to eat.  Farmers work a single account and try to make them bigger.

Other than predators, there isn't much to stop a woodpecker from doing their thing, but there are plenty of things that could interfere with a salesperson's Hunting or Farming efforts.  Let's discuss them.

Let's begin with the Hunters. While many tech companies have adopted the use of BDRs to conduct inbound and outbound prospecting, most companies in most industries did not go there.  So let's assume that we are talking about a traditional sales organization with traditional salespeople who have responsibility for both finding and selling opportunities. If the salesperson already works at your company, you know if they are hunting because those who hunt consistently regularly add new opportunities to the pipeline. But what about the salespeople who don't hunt consistently.  Do you know why? The seven reasons most often to blame are:

  • Sales Managers.  What?  Yes, sales managers who fail to hold their salespeople accountable for the agreed upon prospecting activities are enabling those non-hunting salespeople.
  • Fear of Rejection - they fear that a prospect will say, "No," or "Not Interested," and that will destroy them
  • Need to be Liked - they believe that if they interrupt a prospect and the prospect becomes upset, the prospect won't like them.
  • Call Reluctance - they refuse to make cold calls.
  • Perfectionist - they won't make the calls until they are sure the calls will be perfect but, of course, there is no such thing as a perfect call.
  • Time Management - they have time for everything except making prospecting calls
  • Nobody Answers the Phone - a nice excuse since it can take anywhere from 8-15 attempts to reach a decision maker and most salespeople give up after 4 attempts.

If the salesperson does not work for you - yet - but they are candidates for a sales role that requires Hunting, you need a crystal ball.  In this case, you aren't as concerned with why they might not hunt, you must know, in advance, if they WILL hunt.

In both scenarios, one of the assessments from Objective Management Group (OMG) can help.  For your existing salespeople, a sales team evaluation will help you understand if you can get your non-hunting salespeople to become hunters.  For potential salespeople, OMG's Sales Candidate Assessment will tell you whether or not they WILL prospect consistently and you can take that prediction to the bank as no assessment is as accurate and predictive as OMG's Sales Candidate Assessments.

According to OMG's data from the evaluations and assessments of more than 2.3 million salespeople, 68% of salespeople are strong in the Hunter Competency.  But don't rejoice just yet.  If we look more closely, we see that 95% of the top 10% of all salespeople are strong Hunters so what does that mean for the rest?  If we look at the bottom 50% - half of your current and potential future salespeople - only 34% are strong Hunters and that drops to just 6% of the bottom 10%.  Ugh.

Thankfully, OMG measures more than the Hunting competency as that is only one of the twenty-one Sales Core Competencies featured in OMG's various evaluation tools.

The other type of salesperson we were discussing earlier in the article is the Farmer.  While more salespeople tend to be attracted to the Farmer role than the Hunter role, attraction does not equal well-suited.  There are several reasons why salespeople in Farmer roles fail to significantly grow their large accounts:

  • Unable to reach decision makers so those in power are unfamiliar with the salesperson.
  • Unable to penetrate the account both vertically and horizontally resulting in lost opportunities
  • Unable to provide value because of a focus on pricing
  • Order-taking vs account growth mentality
  • Risk averse so they focus on not losing the account rather than growing the account
  • Lack of strong relationships across the account so when a key individual leaves the account is vulnerable
  • Faulty sense of loyalty where they advocate for their customer instead of for their company

The next time you are in your yard you might hear a woodpecker but you probably won't see it.  Is the Woodpecker hunting or farming, and does that even matter?  There's not much you can do about it anyway.  However, at your company, there is a lot you can do.  Get your sales team evaluated so you can identify why your sales team isn't more effective and what you can do to train and coach them up.  Utilize OMG's Sales Candidate Assessments to improve your sales selection.  Your salespeople don't have to be Woodpeckers!

Check out all 21 Sales Core Competencies, comparison data by industry, and even how your salespeople compare here.

Take OMG's Sales Candidate Assessments for a free trial here.

Check out OMG's Sales Team Evaluation Samples here.

Topics: Dave Kurlan, sales training, Sales Coaching, sales core competencies, hunting, account management, hunters and farmers

This is What Would Happen if Bob Got Promoted to Sales Manager

Posted by Dave Kurlan on Tue, Feb 07, 2023 @ 07:02 AM

worst

For those of you who are familiar with my series of articles about Bob - the worst salesperson ever - you can catch up by enjoying, laughing, and making fun of him here.  12 of the articles that show up on that page are about Bob!

Today, I reviewed the worst OMG evaluation of a sales manager that I have ever seen.  It was literally the worst because he was in the 1 percentile, meaning that 99% of all sales managers are stronger than he is.  

As I reviewed it, I said to myself, "If Bob were promoted to sales manager (I don't even want to put that thought out there), this is what it would look like."

There are so many reasons as to why he is so bad and I'll share the most important reasons below.

Bob's  Sales Management Competency Scores

The first thing I noticed was his score of 19 on the Sales Coaching competency.  He lacks the skills and perhaps thankfully, he doesn't actually do any coaching but when his salespeople ask for help the only help they get is technical or pricing help.

Did you see the score of 15 for Pipeline Management?  Those 15 points are because he does pipeline reviews --- by himself!  Can you believe it? A sales manager that doesn't review the pipeline with his salespeople!

Even if he wanted to coach and hold his salespeople accountable, he wouldn't be able to because they don't even like him.  OMG's Sales Team evaluation showed that his salespeople don't trust his intentions, they don't respect him, and worst of all, he is focused on himself, instead of his team.  He takes credit for wins and points his finger at them for losses.  Trust, respect, relationships and team focus are prerequisites for coaching to have any chance of working - and that's assuming that there will actually be coaching .

His score for holding salespeople accountable was even worse, coming in at zero. All of his salespeople made excuses for their lack of performance and he does not challenge them on their excuses because he too is an excuse maker as evidenced by his Responsibility score of zero.

Then there is his Sales Management DNA.  For the simplest of sales management roles, a sales manager should have a minimum Sales Management DNA of at least 68 and much higher for more demanding roles, with minimums ranging from 72-82.  His Sales Management DNA is only 52 and it was skewed up because of his one strong DNA score of 83 for the Comfortable Discussing Money competency. 

Without that one strong score bringing up Sales Management DNA his DNA score would have been in the 40's!  I've never seen one that low before!

The two bright spots are that he scored 68 on the Sales Process competency, and 77 on Selling Value.

His Sales VP really likes him and she doesn't want to lose him. She is hoping and praying that he can be trained and coached up to be a more effective Sales Manager.  Unfortunately, his score for Commitment to Sales Management success is only 30.  With a Commitment score this low, there is very little chance that he will do the work, overcome his weaknesses or change.

Only 18% of all Sales Managers should be in a sales management role and only 7% are any good at coaching salespeople and this individual should not even be in sales.

Image copyright 123RF

Topics: Dave Kurlan, sales process, Sales Coaching, accountability, evaluation of sales management, excuse making, selling value

The Latest Perspective on My Most Popular Article on Selling

Posted by Dave Kurlan on Tue, Dec 20, 2022 @ 07:12 AM

3-nutcrackers.jpg

The lessons from my annual Nutcracker post have not changed at all in 12 years but my perspective changes. This year three new thoughts come to mind.

For example, each year the music in the Nutcracker suite becomes more and more familiar to me, but just think how familiar it is to the musicians in the orchestra who perform it day after day, and twice daily on weekends.  Like the dancers, they put us much effort, enthusiasm and emotion into the performance as they did the first time they performed.  Do salespeople have the same excitement about their products and services as they did their first year with their company or does it become mundane?

Mine is not the only family to make The Nutcracker or any other holiday event a tradition.  Year after year we return.  Are salespeople both familiar enough, special enough, and entertaining enough for their customers to renew each year?

They know that people like us return each year so to keep it interesting for us, they have updated the set a few times over the past 12 years, changed the dancers who play each character and embrace new, young dancers each year to play the parts of children.  Do companies keep their products, features and policies fresh enough with enough updates to their websites, user interfaces, and the way they do business to keep their customers interested?

And now, my famous Nutcracker article:

It's a family tradition that each December we attend the Boston Ballet's performance of the Nutcracker.  It's truly a magical show and even though the primary dancers change from year to year, the execution of the show's script and musical score is flawless.

Several years ago, during one of the performances, it dawned on me that the orchestra's role in the show correlated very nicely to an effective sales presentation.  There were 3 fantastic lessons that I presented then and as I have done each year since, will present again here.

If you attend a Nutcracker performance or simply listen to some of the orchestral suite during the holiday season, one of the selections you'll hear is the "Dance of the Sugar Plum Fairy".  Perhaps you can't match the music to the title, but I'm sure if you listen to the first 30 seconds of this version, you'll recognize the melody regardless of your religion or ethnicity.

Even though you've surely heard it before, can you identify the four primary musical instruments at the beginning of the selection?

In this version, you're hearing the glass harmonica, while most orchestral versions and performances feature the celesta, oboe, bassoon and flutes.  Can you hear them?

Just as the "Dance of the Sugar Plum Fairy" sounds familiar to you, your salespeople find familiarity in the sounds, questions, comments and discussions on their sales calls.  As much as you may not be able to distinguish the specific instruments creating those sounds in "Dance...", your salespeople may not be able to differentiate the credible comments and questions from the noise on their sales calls.

During a first sales call, suppose your salespeople hear one prospect say, "This has been a very interesting and productive conversation and we might have some interest in this."  And imagine another prospect at the same meeting says, "We'll get back to you next month and let you know what kind of progress we've made."  And still a third might say, "In the meantime, please send us a proposal with references and timeline."

Lesson #1 (based on Objective Management Group's data) - Of every 100 salespeople:

  • 70 rush back to the office to begin work on the proposal and tell their bosses that their large opportunity is very promising because all 3 prospects in the meeting were very interested;
  • 19 leave the call and make 2 entries in their journals - "propose" and "follow-up" - and they'll do both eventually;
  • 11 are still at the meeting, asking more questions.

Lesson #2:

  • Prospects' voices are like musical instruments.  Each instrument in "Dance..." has a specific role in the performance.  If the wrong instrument or notes are played or they're played at the wrong time, the entire selection is ruined.  Prospects' comments in the scenario above have different meanings depending on their business titles and their roles in the buying process.
  • If "please send us a proposal", "we're interested" or "very productive" are spoken from an Executive - the CEO, President or VP of something - it has a far different meaning than if the comment were to come from a buyer in Procurement.
  • When any of those 3 comments are spoken by a user - an engineer for example - rather than a buyer or an Executive, the comments may be far more genuine, but carry much less authority.

Lesson #3:

  • Sometimes it's more fun to listen to a song, symphony or simple melody and to figure out how and why the composer or arranger selected the particular instruments to play the particular parts of the selection.
  • Your salespeople must apply that wonder and analysis to their sales calls.  The prospect may be the composer (started the initiative), arranger (selected the vendors to talk with), director (charged with the initiative and conducting the process) or musician (following directions of the conductor).  It's the salesperson's job to figure out who they're dealing with, what role they play, what influence they'll have and how to get the various players aligned on the compelling reasons to buy and your ideal solution.

Homework Assignment - Return to Lesson #1 and answer 2 questions:

  1. Which of the 3 sales outcomes do your salespeople typically find themselves doing?
  2. Which additional questions do those 11 salespeople stay to ask?

Topics: Dave Kurlan, Consultative Selling, sales training, Sales Coaching, sales lessons, sales tips, Nutcracker

The Top 10 Sales and Sales Leadership Articles of 2022

Posted by Dave Kurlan on Mon, Dec 12, 2022 @ 07:12 AM

Top 10 of 2022

Each week we can read multiple lists of the top new movies and TV shows to stream at home.  Lists of the Top SUV's, Sedans, and Coupes are also prevalent right now.  And of course, as we move ever closer to the holidays, there are lists aplenty on the Top Gadgets, Luxury Items, Gifts for Her, Gifts for Him and Gifts for Kids to peruse.  But it's also the time of year when I publish my list of the Top 10 Sales and Sales Leadership Articles of the year.

Criteria: Popularity (views) is nice but quality of content is nicer.  Likes are cool but engagement is cooler. Entertainment value counts and my opinion matters because I'm judging the articles.  In the end, I'm applying popularity, quality of the content, likes, entertainment, comments, engagement and my opinion to create this list of the top 10 articles.

Enjoy!

10. The Bob Chronicles Part 7 - Salespeople Who Can't Close Closable Business 

9. Why You Can't Lose Customers or Salespeople Right Now

8. How to Use This Jeep Versus Infiniti Analogy to Hire the Right Salespeople

7. How You Can Double Your Revenue in a Recession (most comments)

6. Hiring Salespeople the Right Way Yields 62% Less Turnover and 80% Higher Quotas

5. The 10 Unwritten Rules of Prospects and Tips for How to Break Them

4. How to Identify the Real Reason When a Salesperson is Under Performing (best content)

3.  The Top 10% of All Salespeople are 4,000 Percent Better at This Than the Bottom 10%

2. How to prepare your sales team to thrive in a recession

1. The Irony of Free Passes for Under Performing Salespeople   (most engagement)

Top Article - Dave Kurlan's Top Videos and Rants (most views, comments and engagement)

Image Copyright 123RF

Topics: Dave Kurlan, Consultative Selling, sales training, human resources, Sales Coaching, closing, effective sales leadership, sales enablement, top sales articles, tips for hiring salespeople, sales management effectiveness, Top 10 Sales Tips

New Data: Will Salespeople Hit Quota When Sales Managers Coach and Sell?

Posted by Dave Kurlan on Mon, Nov 07, 2022 @ 06:11 AM

Astros win 2022 World Series: Houston clinches second title as Yordan  Alvarez's Game 6 homer ousts Phillies - CBSSports.com

I was reviewing stats from the 2022 World Series between the World-Champion Houston Astros and the National League Champion Philadelphia Phillies. The Phillies might have had a two-man wrecking crew in Kyle Schwarber and Bryce Harper but it wasn't nearly enough. Over the entire 6-game series, the Astros' batting average was 43% higher (good), their pitchers' ERA (earned runs allowed per 9 Innings Pitched) was 26% lower (good), WHIP (walks and hits per inning pitched) was 19% lower (good), they scored 22% more runs (good) and that led to their winning twice as many games and on Saturday, a world-series victory.  There was a clear correlation between 4 baseball KPI's and the outcome of the World Series.  

Pivoting to sales, and staying with correlations and KPI's, could there be one between how sales managers spend their time and why so few salespeople hit quota?

Objective Management Group (OMG) has data on approximately 250,000 sales managers from tens of thousands of sales team evaluations.  Sales managers are expected to spend 50% of their time coaching salespeople but the data proves that it is nowhere close to that!  The average percentage of time actually spent coaching salespeople is less than 18% or, during a 40-hour week, just 7.2 hours.  Most of what sales managers consider coaching does not really qualify as coaching and you can read about that here.  How are salespeople supposed to improve and hit quota when sales managers continue to treat coaching with the same disdain they have for taking out the trash and visiting the dentist?

Instead of spending their time on coaching, sales managers are spending too much of their time on personal sales.  Sales managers with fewer than 5 salespeople may be required to carry a quota but generally speaking, sales managers are expected to spend no more than 5% of their time selling. OMG's data shows that the percentage of time that sales managers sell is closer to 13%.

Why do they sell instead of having more coaching conversations?  There are several reasons:

  • Compensation - Sales Managers are typically paid more on their personal sales than team sales so there's need and greed.
  • Quota - When Sales Managers worry about hitting quota and lack confidence that their salespeople will hit quota, the one thing they believe they can control is their own ability to sell their way to quota. 
  • Coaching - The reality is that Sales Managers don't enjoy coaching because most of them are not very good at it.  Most of them were promoted to Sales Managers because they were such good salespeople so they gravitate towards what they know and what they are good at.

The time spent coaching and selling adds up to only 31% so it's important to know that most sales managers waste their time on strategy, organizational issues, crises, keeping salespeople motivated, and holding salespeople accountable.  It's clear that when sales managers spend 13% of their time selling and only 18% coaching, most salespeople fail to hit quota most of the time.

Baseball has a manager AND coaches so the roles are well defined.  The manager manages the game while the coaches coach up the players on their baseball skills and the coaching occurs before games, during games, and after games.  In sales, managers take their manager titles too literally. As a solution, I recommend that companies hire sales coaches who understand from the outset that their only role is to coach before calls/meetings, during calls/meetings, and after calls/meetings.

The problem will be one of expertise.  A change in roles or not, the data shows that 82% of all sales managers are not well-suited for sales management and fewer than 10% are not good at coaching salespeople.  While newly hired sales coaches will be more likely to do the coaching, the actual coaching will still suck.

It may be time to train an entire new generation of sales coaches!

Topics: Dave Kurlan, Sales Coaching, sales managers, omg, objective management group, sales management role, how sales managers spend their time

The Bob Chronicles - The Difference Between Selling Skills and Effectiveness

Posted by Dave Kurlan on Wed, Oct 12, 2022 @ 07:10 AM

chiropractor

Back in the 90's, after years of Chiropractic, I learned to crack my own back and neck.  You never know when you will need to relieve stiffness and/or pain.  Actually you do know.  If you drove more than two hours today or slept in a hotel bed last night I'm certain you'll need to crack your back and neck...

In the spring of 2020, I sprained my ankle and it never improved.  I'd step out of the car and the pain was so bad I would limp for the first twenty steps until it loosened up.  Imagine my surprise when two years later I heard a familiar crack - not in my ankle - but in my foot and then my knee.  When I stiffened my leg below the knee and purposely created the necessary torque, I heard four separate cracks and then bam! I was pain free!  Now, each time I stand up, I crack my knee and foot and I can walk without pain.  The most important thing was that my symptom screamed ankle but the root cause was my leg and foot.

it's the same with sales teams.  I receive calls and emails that begin with things like "My salespeople are complacent" or "My salespeople need some training on closing" or "My salespeople aren't bringing in enough new business" or "My salespeople need help with negotiating" or "Our team has a lot of stalled opportunities."  Just like my ankle, the real problem is RARELY any of these things.  It's usually something else or, in many cases, a number of something else's.

Today a client asked me to explain the difference between skills and effectiveness. You won't find the answer by doing a Google search as that search turns up exactly nothing on the subject.  This article will discuss the similarity between symptoms/causes and skills/effectiveness. Do you remember Bob, the subject of many articles and my favorite weak salesperson to write about?

Bob strikes again!

I've written 10 articles about Bob and everyone says that the Bob series is their favorite.

I was reviewing Bob's OMG (Objective Management Group) Sales Assessment and realized it is a great example of a salesperson who has skills, but is not effective.  For example, he scored 90 in the Hunting Competency but was not effective at scheduling new meetings because he was sabotaged by his huge need to be liked as evidenced by his score of only 50 on the Doesn't Need Approval Competency.

His need to be liked made him worry that prospects would be angry with him if he got through and interrupted their day. His need to be liked also prevented him from asking good, tough, timely, questions for fear that prospects would dislike him.  Bob has relatively good scores for both the Selling Value and Qualifying Competencies but he has another weakness that limits his effectiveness.

Supportive Buy-Cycle is a Competency in which Bob scored only 29 - an incredibly low score. 

His process for making major purchases does not support ideal sales outcomes and absolutely crushes his ability to sell value and thoroughly qualify.  One of the articles I wrote about Bob dealt with his Non-Supportive Buy-Cycle in great detail.

Let's look at Bob through the lens of his symptoms because up until now we have been discussing the root causes for his lack of effectiveness.  The best way to do this is to ask management.  When they discuss Bob, what do they talk about?

Bob hunts but doesn't land many appointments.  The opportunities that do enter the pipeline end up being about price. Opportunities stall and he can't get them moving again. He drives his sales manager crazy.  He has the skills (knows what to do) but lacks effectiveness (isn't able to execute).  Fortunately, OMG is able to differentiate between those who can sell (know what to do) and those who will sell (will execute) so clients using OMG to assess candidates don't have to deal with these problems. When clients use OMG to evaluate their current sales teams, these are but a few of the challenges they discover.

Last week I wrote an article about OMG not being about any one single score.  Like today's discussion of Bob, that article provided a great example where the sum of the parts, instead of a single score, will always predict exactly what will happen on the phone, over video, or in the field.

Take a crack at OMG and see what happens!  Whether evaluating your current sales team for development purposes or to assess sales candidates for open sales positions, OMG has the science-backed accuracy you can trust.  You can reach us here.

Image copyright 123RF 

Topics: sales assessment, Dave Kurlan, Sales Coaching, prospecting, omg, qualifying, selling value

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

Selling and the Need for Speed

Posted by Dave Kurlan on Wed, Jun 08, 2022 @ 08:06 AM

speed-limit

We had Chinese for dinner and my fortune said, "Speed is not as important as accuracy."

When you think of speed what are the first things that come to mind?

Fighter Jets? The 10 fastest in the world reach speeds of up to Mach 6.70 (5,140 MPH)

Racing Cars? The 6 fastest in the world reach speeds of up to 304 MPH.

Motorcycles? The 10 fastest in the world reach speeds of up to 273 MPH.

Power Boats?  The 10 fastest in the world reach speeds of up to 317 MPH.

Light travels at 186,270 miles per second!

And salespeople.  What?  That's right, salespeople speed.  Let me explain.

Salespeople tend to be in a rush to close - before an opportunity is even closable.  

Salespeople tend to be in a rush to present - before an opportunity is even qualified.  Most salespeople are in such a hurry that they completely skip things like qualifying and discovery.  And when salespeople do perform discovery they accept the very first indicator they hear and rush to explain how their product or service addresses that indicator,

Example. You tell the doctor about a stomach ache and the doc says, "No problem - I can help" and calls in a prescription for an antacid.  And while that example actually happens, a good, thorough doctor would ask questions like, "Where does it hurt?"  "Does it hurt to the touch?"  "Is it always sore or does it come and go?"  "Is it more frequent after a meal or when you're moving around?" "How long have you been experiencing this discomfort?"  "Can you show me the exact area of the pain?" "Have you been overly stressed or anxious?"  "Have you made any changes to your diet?" 

[I'd make a good doctor!] 

Then the doctor would say, "I want to make sure we aren't missing anything.  I would like to get you scheduled for X-Rays, and an MRI so that we can rule out a few things."

He's still in discovery.  A good doctor has no need for speed.

Back to salespeople who do have a need for speed.  Objective Management Group (OMG) measures 21 Sales Core Competencies and how a company, team or individual salesperson scores on those competencies tells a story about how they sell, what they encounter, and how effectively they can turn those encounters into business.  Several competencies overlap with Discovery, the two most obvious being Consultative Seller and Value Seller.  However, those two competencies are much easier to complete when we include the competencies Reaches Decision Makers and Relationship Builder.  The numbers in the 3 images below show the percentage of 2.2 million salespeople who are strong in these four competencies.  All salespeople are on the left, the top 10% are in the middle and the bottom 50% are on the right.

Do you see the problem?  Even some of the top 10% struggle with the Consultative approach but they excel at Reaching Decision Makers and Selling Value.  Why do even the best salespeople struggle?  Because among the 10 or so attributes found in the Consultative Seller competency, the 2 most crucial are listens and asks great questions.  Most salespeople struggle mightily with listening and when one doesn't listen effectively, the next question isn't that obvious.

To execute the 4 competencies above, a certain amount of Sales DNA is required.  When strong, Sales DNA supports the execution of sales process and methodology.  When weak, Sales DNA sabotages those efforts.

Only 22% of all salespeople have strong Sales DNA.  Here are the average Sales DNA Scores for salespeople.

  • All salespeople have an average score of 65.
  • The top 10% have an average score of 81. 
  • The bottom 50% have an average score of 56.

More challenging selling roles require higher Sales DNA scores while less challenging selling roles require lower Sales DNA scores.  Here are three examples:

  • A salesperson who sells industrial batteries (for golf carts, truck fleets, wheelchairs) in a territory can get by with Sales DNA of 64.
  • A salesperson who sells payroll software to HR departments in a territory can succeed with Sales DNA of 72.
  • A salesperson who sells 7 to 8 figure capital equipment to the C Suite of the Fortune 500 against formidable competition in an 18 month sales cycle requires Sales DNA of over 82.

The salesperson the first example and those in similar roles to that salesperson have a need for speed.  It's a transactional sale.  They can move the sale and the relationship from transactional to consultative by S-L-O-W-I-N-G down.

The salesperson who is successful in the second example has slowed down.  Their biggest challenge is competition.  It's not a question of if the company will buy and use payroll software, the only question is whose software they will use and who they will purchase it from.  Slowing down even more will help to differentiate.

The salespeople in the third example have learned that if they are to have any success in this role, they must crawl through their sales process.  Slow is the name of the game.  I don't mean slow as in extend the sales cycle. I mean slow as in thorough.

[Update: One reader suggested that the crucial piece is having a variable speed where you move as fast or as slow as your customer.  I agree that you need variable speeds but many times the client wants to move fast and you need the ability to slow down the client or it will become a transactional sale.  So variable is OK but only when it provides an advantage to you.

They say speed kills and other than driving, nowhere is this more true than in sales.

Evaluate your Sales Team.

See scores for your industry in all 21 Sales Core Competencies.

Talk with an expert.

 

Topics: sales assessment, Dave Kurlan, Consultative Selling, sales process, sales training, Sales Coaching, selling value

5 Steps to Grow Sales by 33% in 12 Months

Posted by Dave Kurlan on Wed, May 11, 2022 @ 08:05 AM

I'm a baseball guy and a die hard Boston Red Sox fan but I can't bear to watch them right now.  They are playing the worst baseball since I was 10 years old so that's going back 55 years!  It's not hard to understand why they are so bad because the data tells the story.  Their stats show that as of May 9, 2022 their bullpen has 9 blown saves.  Bullpens rarely blow 9 saves over a full season never mind over five weeks but if you look deeper, they wouldn't be in so many close games if their offense was producing.  Only three guys (JD Martinez, Xander Boegarts and Rafael Devers), are hitting!   Coaches will review game video and hitters will take extra batting practice to work on their mechanics and timing.

Sales teams go through periods like this too but sales leaders rarely seek out the data that would immediately point to the real problem.  They tend to hope things will improve and go from there. However, there are several levels of data to be reviewed so let's take a look.

As the article title suggests, there are five steps you must take to grow sales by 33% in 12 months.  You can't pick and choose as all five are required.

1. IDENTIFY BOTTLENECKS - A quality CRM application, like Membrain, will show your win rates, age in stage, conversion ratios, pipeline velocity, pipeline volume and pipeline quantity and more.  Dig into that data to determine year over year changes and identify where your bottlenecks have been and where they are today.  Be mindful that this is lagging data and are merely symptoms of the real problems!  (My personal favorite is the Baseline Selling edition of Membrain)

2. IDENTIFY THE REAL REASONS - An OMG Sales Team evaluation will explain why you have those bottlenecks and why your team gets the results it gets.  Note which of the 21 Sales Core Competencies are to blame - by team and individual - and more importantly, how much revenue is being left on the table and who is capable of upping their game.  For example, are deals getting stuck because salespeople aren't capable of reaching decision makers?  We know that salespeople who can begin with the decision maker are 341% more likely to close the business!  A training curriculum can be designed from these conclusions. Learn MoreRequest Samples (Request Sample Sales Force Eval)

3. PROFESSIONAL OUTSIDE SALES TRAINING - Provide your sales team with appropriate training to close the competency gaps, improve skills, and achieve better execution.  This should not be a one or two-day event.  Change requires on-going, long-term training to change beliefs, approaches, strategies, tactics and develop skills!

4. DAILY COACHING - Sales managers must provide daily, one-on-one coaching to their salespeople to help them with their individual gaps and improve their Sales DNA.  Only 7% of all sales managers come equipped with effective coaching skills so they will need to be trained and coached in order for them to provide effective coaching.

5. ACCOUNTABILITY - Sales Leaders must hold sales managers accountable for coaching as sales managers hold their salespeople accountable for change.

Once you have the data and take action, there is absolutely no good reason why you can't bump sales by at least 25%!  That's right, AT LEAST 25%.  If everyone improves by just 10% you will grow sales by 33%!

  • 10% more opportunities
  • 10% higher average sale
  • 10% greater win rate

That comes out to 33%!  Don't believe me?

Start with monthly goals of 20 opportunities, a 20% closing rate, and a $20,000 average sale. That translates to 4 sales for $80,000 or $960,000 annually.  10% more equates to:

  • 22 opportunities
  • 22% closing rate
  • $22,000 average sale

That's 4.84 sales at $22,000 which totals $106,480 per month or $1,277,760. A 33% increase in revenue!

What are you waiting for?

Topics: Dave Kurlan, sales training, Sales Coaching, crm, omg, how to increase revenue, sales increase, membrain, sales team evaluation

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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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