On Jan17, 2021 Vistage released results from their “CEO Confidence Index Survey.”
CEO survey question: Did your sales team meet or exceed quota?
Answer: ONLY 33% met or exceeded quota!
Why so low?
In today’s COVID-19 Environment, since March 2020, Salespeople are happy to speak with anyone! It goes something like this: “Mr./Ms. Prospect, Thanks would it be okay if I sent you a quote?”
Note: No understanding the prospects business, no qualifying, no in-depth discussion of the prospect’s issues, concerns or compelling reasons to buy!
The RESULT: Chasing, chasing, NO SALE!
What can you do? Get rid of your worst sales performer…AND Invest in Sales Training…NOT a One Time Event which does not last!
You need to invest in Business Development Sales Training your people for TODAY’s Environment. Why?
The pandemic has been with us for almost a year! It’s time to really look at Salespeople, and Sales Management with Science, Data, and Objectivity in 2021.
Experience tells us that many CEO’s, Presidents and Owners have gotten more involved in their sales departments in the past 6-9 months than ever before. Why?
They are trying to figure out: “What can we do to help drive revenue in these very challenging times!”
They’ve looked at their market, spoken with their peers, suppliers and “Executive Group” members. This input has been great for getting anecdotal information, support, and a few ideas. However, until you put Sales Science in the mix, you may be doomed to “staying the same.”
Let’s look at the Science of Sales using data from Objective Management Group’s (OMG) data warehouse, which comes from evaluating over 2 million Salespeople & Sales Managers in over 30,000 companies, over the past 25+ years and share the data to look at your sales team.
We have had the good fortune of working with some excellent companies and teams in 2020 before and during the COVID-19 pandemic.
We’d like to share some Sales leadership & Sales Management Practices, Observations, and Insights that the strong leaders employed and still employ to drive their business in 2020 and into 2021.
We know that generally the Sales Manager is often the weakest link in a Sales Organization. We also know that the best Sales Managers spend at least 50% of their time coaching their sales people (even the top-producers and veterans). In actuality, Sales Managers should be coaching almost all the time not just during a formalized “coaching session” or “as needed” – especially in our disrupted COVID era.
Coachingis not looking at the activities in your CRM and saying , “You only had X number of calls last week, you need to do more this week.” That is just looking at numbers and not helping your sales people (or your company) be successful. That is reactionary, at a time when it is more critical than ever to be Managing Forward.
Pareto’s principle came about when he realized that in 1906, 80% of Italy’s land was owned by just 20% of Italy’s population. Today, Pareto’s principle applies to many different areas of business, but when it comes to sales activity; it can be best defined this way:
20% of your activity is responsible for 80% of your results.
Focus on your most productive time slot. Everybody has a timeslot in their day when they do their best work.
In today’s Covid environment, it can be difficult to not only see people face to face, but also to contact those who are working remotely.
The result for most salespeople? They believe they must “bend over backwards” and do whatever the prospect wants! They have a “belief” that this opportunity may never happen again.
So, what are the “tendencies and TRAPS they give in to?
NOT having a quality discussion first to learn, ask questions and engage the prospect.
Instead…they go right in to a “pitch.” (They propose ‘solutions” when there is no compelling reason for the prospect to change, buy, or order their product. They have NOT qualified the prospect or opportunity.)
The “pitch” ends with something like: “So, what do you think? Can I get you a quote?”
They take the “easy approach” & give a price/quote, thinking that if it’s a “good price” they will (maybe) get an order…in these TOUGH TIMES! Little do they know—this quoting and not following a sales process or having an in-depth conversation about the prospects “ability to pay or invest” MAKES REAL SELLING MORE DIFFICULT!
THE MAJOR ISSUE: They do not want to have an in-depth conversation about: the prospects funding; ability to pay; justifying an ROI; or selling any type of Differentiated Value. They just send out a price…and HOPE it “sells.” In essence, they offer price or a discount, AS A STARTING POINT!
THIS IS NOT SELLING! THIS IS “CLERKING!”
You get the picture!
FACT: Almost half of all salespeople are afraid to have this discussion and sabotage their opportunities
Nearly half (46% to be exact) of all salespeople are uncomfortable discussing money. This can either be the amount of money or just flat out being uncomfortable talking about money. There are many reasons for this, including poor sales skills, poor training, not knowing how to sell value; or “beliefs” …that the product(s) are not worth it.
PLUS…one possible psychological deep-seated issue from their childhood: many people were raised that it’s “not good or polite to talk about money”.
Why is this so critical?
If this discussion is skipped or not handled correctly – deals will stall, be lost to competitors, or you will see margins erode (it’s easier for your salesperson to ask you to drop your price than to hold the price firm with the prospect). Additionally, your company will participate in the creation of quotes/proposals that it not should be wasting time, money, or human capital on (just because the prospect says “I want a quote” doesn’t mean “give them a quote”).
Here are some of the signs that your salesperson is uncomfortable talking about money:
1.The prospect says “it’s budgeted” but nothing more. (The salesperson believes, they can & will buy.)
What didn’t the salesperson ask about, discuss, or question? Is the budget approved and are the funds set aside? (The salesperson does not know…so, let’s just quote & see what happens.)
Your company’s quote/ proposal was “too high” of a price. The prospect was surprised by the price.
The Real Issue: Many (bad) salespeople do not discuss money so the first time the prospect sees any sort of price, is when they read the proposal!
The Result: The prospect vanishes
New competitors added “late in the game” & they acquire the business!
If your salespeople can only ask “Do you have a budget—or target price?” That is not having a conversation about money, funding or investing in a solution…although they will fool themselves (and sometimes their boss too) into believing that they DID have that conversation.
As the Owner, CEO or Sales Leader…it is critical to address and fix this huge “PROFIT DRAIN” especially in this current “remote selling” economy.
Recently, we’ve learned some alarming statistics about salespeople that we needed to share with you, the company Sales Leaders that are happening during this REMOTE selling environment:
34% of salespeople do not prospect consistently
90% of salespeople do not live in their CRM
Only 35% of salespeople maintain a full pipeline
Only 30% of salespeople have and follow a sales process
Only 27% of salespeople “listen” and only 25% ask enough questions
Only 30% of salespeople thoroughly qualify
Only 30% have learned their video platform inside and out (how is this allowed during the current video-meeting preferred environment?!?)
Only 49% prefer video to phones
Only 40% use virtual backgrounds for selling
Only 40% are strong at selling value (the rest focus on price)
Recognize any of these issues?
These are problems which contribute to Missed sales, Exceptionally LONG Sales Cycles (or “no decisions”) and a Lack of Accountability!
If you have an “average” sales team – based on the data above (provided by Objective Management Group) – your team is under-performing and probably struggling in this REMOTE environment!
How can you help address and start to improve these paltry percentages in fairly short order?
This answer is Sales Coaching– not managing…Coaching.
Professional Sports are back! While some sports are facing larger hiccups and hurdles than others, they’ve all spent tremendous time preparing for this moment – not just on the field, court, or ice – but in the front offices, as well.
What parallels exist between the preparation of sports organizations and your business?
Danny Wirtz, Vice-Chairman of Breakthru Beverage Group (former CEO of Wirtz Beverage) and Interim-President of the Chicago Blackhawks was interviewed this week by NBCSports Chicago, and he shared intel about how the team, and his family’s companies plan and analyze their own organizations for today and the future.
Has your organization had these types of meetings yet? Have you implemented the changes necessary?
As the leader you are looking again to “crunch the numbers,” to determine “where you’ll end up” versus that original January budget number. For many companies, it is the same number! To many others, it is time to “reboot” your sales team in this quarter and hopefully upgrade and hire new talent.
In his book, Good to Great, Jim Collins states: “you must face the brutal facts to enable yourself to plan on how to move forward.”
Many CEO’s, Presidents and GM’s do not want to conduct any type of Objective Sales Department Audit or Sales Skills Gap because they are faced with brutal sales facts.
Many organizations are completely frustrated because the “crisis” has clearly pointed out and magnified the weaknesses of some of their salespeople. Their sales peoples’ “skill gaps” compared to “Critical Skills” REQUIRED to Accelerate Sales Growth in this more competitive market are woeful.
The Unknown Advantage you’re giving your competitors:
Many companies are scratching and clawing for every dollar right now, and ignoring the massive advantage they’re giving the competition…a weak sales team that does not have the ability to sell consultatively or sell value. Prior to the pandemic, companies could “get away” with having a mediocre sales team and survive. Today, a mediocre sales team could put a company out of business.
Companies have the choice: go on offense (add strong sales talent that will bring new business) or go on defense (protect what we have and do everything we have to keep it). What will your organization do?
