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By Keith Rosen
Keith Rosen won the Stevie Award for Sales Education Leader of the Year in the 2008 Stevie Awards for Sales & Customer Service
Stop. Just stop for the next several minutes that it’s going to take you to read this. Okay, now take a breath. Get off the treadmill for a moment and ask yourself some questions. Yes, these questions are that important. So important, in fact, that they could change your entire perspective of what you’re doing, how you’re doing it, and how much you really need to be doing in order to generate the worthwhile results you’re looking for.
Because the truth is, you just may be running so fast in an attempt to catch up on your sales numbers that you don’t recognize the blinders you’ve developed—blinders that are obstructing your view of the fuller picture when it comes to driving the right sales activity. Here are the questions you need to ask yourself (and your sales team):
With all the effort I’m putting forth in my attempt to generate as much business as possible:
- Am I aware of the activities and benchmarked proven practices (both the activities and the dialogue/message I need to communicate) that I need to engage in daily to secure my success?
- Am I measuring the numbers and the results of my efforts and allowing these statistical data points to be the driving force behind my sales activities?
- When attempting to convert a contact into a qualified prospect, do I know how much cold-calling and prospecting activity is actually enough (emails, voice mails, live calls/connections, letters, and so on), and when to call it quits and move on?
- Do I know how many calls/contacts I need to make each day, each week, and how often I need to follow up with a qualified prospect in order to earn their business or move them to the next stage of my sales process? (And have I even defined those specific steps in my sales process to begin with?)
- Do I hold myself accountable when it comes to engaging in the right activities in the most efficient way possible through the effective use of a daily routine?
- When calling on or meeting with prospects, do I have a clear set of outlined objectives that I need to accomplish on every call and during each meeting, especially when delivering a presentation?
- Have I identified the lifetime value of each client or account in order to classify customers according to their sales potential? (What’s the economic impact of the time you invest?)
- Do I have a detailed strategy for each of my clients to ensure that I’m maximizing every conceivable up-selling and cross-selling opportunity?
- Am I fully leveraging the power and potential of my CRM solution for prospect, client, and territory management? (Do you have a call report system?)
- Do I have the right questions to provide me with the critical intel I need in order to qualify each person as a viable prospect, so that I can most effectively determine where my limited and precious time is best invested?
To clarify further, when it comes to the type of questions you need to be asking each prospect, this isn’t limited to Selling 101-Uncovering a Need. I’m also referring to understanding how they buy, how they make decisions, the internal workings of the company, the people and egos involved, the process they are going to go through when they hang up the phone or end the meeting—and then attempt to solve the problem or find a new solution on their own using the resources they already have. Not to mention the concerns or roadblocks that you could encounter down the road that would stall the potential for a sale, the timely and relevant issues that are going on internally, the overall mood of the company and its leaders, and so on. (Hint: low closing percentages often signify a misalignment in whom you should be presenting to and following up with in the first place.)
If you don’t have the answers to these crucial questions, you’re robbing yourself of the opportunity to enjoy the peace of mind that comes from utilizing a formulaic approach to selling. After all, if you define it, you can refine it. If you’ve ever wondered why salespeople fall into a sales slump, here’s the main cause: they weren’t honoring their sales process by the numbers. Those who continue to “wing it” as their overall selling strategy are destined to experience ups and downs in their performance and in their stress level, and the waning confidence that follows when this amount of uncertainly is present.
I’ve decided—and many of my clients and readers are on board with this as well, so I hope you’ll join us—that it’s no longer as tough out there as it was. That’s right. Strip away what you hear in the media and look instead at what you can control, the one telltale sign that something in your selling formula needs to be modified or redefined.
If there are people in your organization, industry, or profession who are currently performing like rock stars, that should provide one vital insight: It can be done because it is being done by someone else!
Of course, it’s going to remain tough out there if you don’t have your defined best practices, data points, and numeric formula to help support your selling efforts. It’s one thing to work on refining your selling and sales management skills, but in order to have a comprehensive solution to better performance, you need to have your finger on the pulse of the numbers that drive your activities in the first place. You can use the questions I’ve posed to help uncover the gaps in your data pool. These in turn will help refine your overall approach to how you prospect and sell, and the measurable effort that’s required for you to do so successfully.
Here’s some general statistical information about the selling profession that will help you begin the process of fine-tuning your own data-driven solution to increasing sales.
First, a few surprising stats:
48% of salespeople never follow up with a prospect.
25% of salespeople make a second contact and stop.
12% of salespeople make only three contacts and stop.
Only 10% of salespeople make more than three contacts.
Now, get this:
2% of sales are made on the first contact.
3% of sales are made on the second contact.
5% of sales are made on the third contact.
10% of sales are made on the fourth contact.
And 80% of sales are made on the fifth to twelfth contact.
These numbers may change depending upon your selling cycle, geographic location, target audience, the dollar amount of your deliverable, or the service or product you’re selling. But the essence of this message remains intact: do you have your own set of data available to use as the cornerstone for your prospecting and selling strategy? If not, it’s the same as getting into your car and saying before embarking on a trip: “Okay, I need to get to a specific destination, but I’m not sure which direction to travel or how long it’s going to take me to get there.”
It’s no longer about simply doing more, but about doing more of what’s right. In our new marketplace, going out in the field and just doing more of what you did yesterday would be the same as trying to sell VCR’s, pagers, and CD’s today. (Only the other day one of my children asked me, “Dad, what’s a CD?”). Your product will have changed over the years, but while your selling and management strategy needs to evolve as well, the evolution must be guided by numeric benchmarks in order to see the full panorama around your current situation. Doing this will eliminate the costly oversights I’ve detailed above, and ensure your future success.
We all need to be reminded of the universal law “We resist what we need to learn the most.” While salespeople and sales managers are more inclined to have a “let’s just get out there and make it happen” attitude, we need to shorten the reins before engaging in blind sales activities. Start by doing what is often perceived as the mundane task of benchmarking the right practices, and then measuring their effectiveness by the numbers. Empirical data will provide the blueprint you need to succeed as well as the certainty and confidence necessary for a healthy sales attitude.
Note: If you’re looking for a great tool to help develop your prospecting formula and the measurable efforts needed to achieve your sales goals, check out my Prospecting Calculator here and enjoy the confidence and certainty you’ll experience when you prospect by the numbers.
This entry was first posted on Keith Rosen’s blog on Wednesday, May 13th, 2009
About Keith Rosen:
Keith Rosen is the Executive Sales Coach that top salespeople and managers call first to attract more prospects, close more sales, and develop a team of top performing sales champions. For over twenty years, Rosen has successfully coached more salespeople and managers than any other coach on the planet to achieve positive, measurable change. An award winning columnist, speaker, and best selling author, Rosen has written several books on leadership, time management, selling, cold calling, and closing the sale. His book Coaching Salespeople into Sales Champions was named the 2008 Sales Leadership Book of the Year and one of the World's Best Business Books of 2009.
As a globally recognized authority on sales and leadership, Inc. and Fast Company named Rosen one of the five most influential executive coaches. He has been featured in Entrepreneur, Inc., Fortune, the New York Times, Selling Power, CBSNews.com, the Wall Street Journal and Sales and Marketing Management, and is a frequent guest on Channel 12 News. For sales training videos, podcasts, more information on executive coaching and sales training, or to contact Rosen, visit www.ProfitBuilders.com or www.CoachingSalespeople.com, call 516-771-1444, or email info@profitbuilders.com. Subscribe to his newsletter, The Winners Path. |