Sales Challenges? Sales Solutions!

Sales Challenge #1:
Keeping the Focus on Selling

EDWARD CAMPBELL is a branch manager with Reamco.

We sell sunrooms, and I have five salespeople on my team. I started out as a sales rep, and I have been a manager now for 15 years.

Probably one of the biggest challenges is keeping salespeople focused on selling. In our business, the idea is to make the sale on the first appointment. We are not selling a commodity, we are selling a lifestyle.

We do training and we have several meetings a week where we concentrate on product knowledge and selling and how to present and create value. There are lots of companies out there who will do it for less money, like in any market. But we have been around forever, and we sell quality, value, and service.

So we have to be able to come across with that and show them the quality, value, and service. We do the traditional things. I do ride-alongs and work with my salespeople and help them. I have been there and done it all myself.

I am looking for something in the 25 percent range for a closing rate on the appointments, although, as in other businesses, it depends on how you measure it.

We try to sell on the first call, but sometimes we must do repeat calls. We do not believe in burning bridges. We are not going to press them until they throw us out. We want a long-term relationship with our customers, so if they say yes that is great, or we can set up a follow-up appointment, and that is fine too.

Sales Solution #1

LINDA RICHARDSON is president of Richardson.

This fellow is doing a lot of things right. First, he is doing a lot of coaching. There are two things managers must do if they want to build a team. First, they have to coach their team, and second, they have to get coaching themselves. It is a fallacy that line managers and those above them do not need coaching. The higher up in the organization you go, the more you need it, because you are supposed to be a role model.

Now, this manager is already doing many of the things he should be doing, training his reps and working with them in meetings on product knowledge and going on ride-alongs with them.

He wants to do more but is not sure what more is. I think he needs to do even more coaching. First, he needs to observe the team and check out a couple of things. How good are they at the skills they need to sell this lifestyle product?

Here’s one list: How good are they at building rapport and setting up a meeting with a purpose? What is the quality of the dialogue? If the meeting lasts a half hour or 45 minutes, how much of that time is devoted to listening in order to identify needs? If it is not a big piece – at least half – then they won’t know enough to set up their position.

If that is an issue, then work on their ability to ask questions. Show them how to ask lifestyle questions. How does the family live? How do they use their homes? What are their goals?

Once you have found something like this, work on it one thing at a time. Ask the rep, “What do you suggest you do to build rapport?” Do precall planning on one skill at a time, then move on to the next thing.

How good are they at telling a story and integrating the family’s needs into the story? If your price is higher, can they justify the higher value? Can they show longterm value? Then coach, coach, coach. Show them how to differentiate the product, how to use its track record and its history of quality.

How well do they tell success stories? Do they have good examples of how different kinds of families, some with small homes, some with large ones, had success with the product?

Then if they want to close in one call, how good are they at handling objections? Do they attempt to put too much pressure on the prospect or do they give up? Or do they acknowledge the objection and probe to find out what lies behind the objection so they can position themselves for the sale? And when they cannot make the sale in one call, how well do they nail down the action steps so they will be able to make it on the next call? Let the reps self-assess how they should do it, then give them action steps.

Sales Challenge #2:
Retaining Sales Reps

DON PENROD is senior sales manager for Nextel Communications.

We sell communications, voice, wireless, and data to business. Our reps are seasoned salespeople who show leadership and tenacity, and are fantastic as they continue to sell and learn about our products and services. Plus, they really help me train the new team members, even though that is not part of their job description.

That helps because I can’t be everywhere, all the time. I save time on the day-to-day stuff and don’t have to worry about how the numbers are generated, and that allows me to get closer to customers.

I started out as a rep, and one of these veterans is just eight months behind me, one has been here five years, and the other has a little less time. Then I have two new reps, one came in August and one in October, so both have just been here a few months and they are very green.

We have formal training, and every Monday we have a team meeting. The veterans may take the new reps with them on calls to see how they make a presentation. We all work out of the office together, so it is easy on a day-to-day basis to show them, here is how I do this. And in the meetings, we have a very open format, so we can ask them, “What was your best sale, and what did you find the most difficult?” We can throw these things out there so the new people can learn.

Sales Solution #2

JAN KESSINGER is president of Henderson Kessinger Consulting.

Money is way down the list in retaining the sharp reps who are actively recruited by competing firms. Sharp reps stay for such long-term reasons as what the company will do for their professional growth. Our surveys around the country have repeatedly found that reps rank compensation below growth and promotion opportunities, being listened to by top management, and the commitment of the company to its customers.

Money aside, I recommend companies do three things to retain top reps: First, have reps develop strategic plans for their territories, aimed at helping the company achieve its goals. Too often goals are pushed down the pipeline, and one size fits all. A rep whose territory has potential for a 20 percent gain is not motivated by a goal of a 10 percent gain just because that is the company goal. And simply pushing company goals equally on all territories takes ownership of territory performance out of reps’ hands.

In contrast, reps who are allowed to develop their own plans are committed to their plan’s success and are more loyal to the company. Even with limited opportunities for management promotion, reps receive a feeling of growth when allowed to manage their territories.

Second, measure performance against the rep’s plan, not just sales numbers. Commissions can still be paid on sales results, but performance should be measured by the things that drive sales. Performance against plan includes new-account calls, new-account development, proposals and presentations, and other activities outlined in the plan. Reps are more loyal to companies that outline what they will be evaluated on. Yet most companies do not do that.

Third, invest in development. A client once asked me, “Why do sales training when they will leave?” I responded, “What if you don’t train them and they stay?” Top reps want to work for a company where there are expectations, skills, and standards for the sales team. To perform to the standard, reps must be trained for higher performance, and expectations must be raised. Often, companies set performance standards based on current performance, not the performance that will deliver results the company wants.

When reps cannot perform to this higher standard, they need to be trained. You can raise performance standards by training reps quarterly on sales skills, territory management, and other business skills. Then enforce performance to those standards. You’ll find that the top reps appreciate being valued and expected to contribute more. Laggard reps will rebel against higher standards and, rather than perform to a higher level, will seek other employment. Thus top reps become more loyal, and low-performing reps will move to other companies that accept lower levels of performance.