December 2005 Sales Success Newsletter

Please accept our heartfelt “Merry Christmas” and best wishes from KOSA Consulting Group.  We hope that the holiday season will be terrific one for you and your family. I'm looking forward to an outstanding 2006 and wish you and yours all the best of health, happiness and success in the coming year!
 
In this month’s issue . . .
 
This month I provide some tips on planning for 2006 to look at how to improve over your performance in 2005. I’ve also included two additional articles that you will find helpful to improving your results in the New Year. InfoGuru Robert Middleton of Action Plan Marketing shares his thoughts on a fresh approach to selling, which many of us need to do as we look at increasing sales to meet our higher quotas. Lastly, from D.E.I. Management Group President Stephan Schiffman we look at seven questions we should all be able to answer about each of our prospects before we try to close the sale.
 
We welcome your questions, comments, and success stories - just e-mail us at info@kosa-consulting.com.
 
Here’s to your sales success!

Kent Howell

Here Comes 2006!
By Kent Howell

1.      What was the average size of the deals you closed in 2005 and how many of them did you close?

2.      How many prospects (serious sales opportunities) did you have to generate in order to close that many?

3.      What was your average sales cycle (length)?

4.      How many first appointments (FAs) did you go on?

5.      How many phone conversations did you have to have in order to generate those first appointments? (This is your CONVERSATION TO FA RATIO.)

6.      How many times did you have to dial to get the person on the phone you wanted to set an appointment with? (This is your DIALS TO CONVERSATION RATIO.)

7.      Finally, where did the leads come from that became closed business?

Step Two - What are your options to improve upon the results?

The good news is that you’re now on your way to figuring out what your options are to meet your new goals for 2006. All you need is that new sales goal. Once you know that, you can now start to examine your options in a quantifiable process. For the purposes of this exercise, let’s assume we want to increase our sales by 20%.

There are really only five separate ways to increase your sales by whatever that goal is (other than finding better leads). Your objective is to figure out how to work smarter in 2006, not necessarily harder.  After all, as much as I hope you love what you do for a living, there is more to life than working.

Here are your choices:

1.      Increase the number of dials by 20%

2.      Increase the DIAL TO CONVERSATION RATIO by 20%.

3.      Increase the CONVERSATION TO FA RATIO by 20%.

4.      Increase the CLOSING RATIO by 20%.  (This is the RATIO of FAs to CONVERSATIONS)

5.      Increase the average size of your sale by 20%.

Step Three - Determine the 'what' you're going to attempt to improve.

1.      Play some ‘what if’ games with the RATIOS. If you increase the ratio of dials to conversations by 5% for instance, what does that do to the number of dials you need to make? What seems to make sense?

2.      Take a look at your sales cycle length. How could you shorten it (without sacrificing the necessary steps to close the business)?

3.      Now take a look at where you’re getting your leads. Are they of a quality you need? Could you reduce the number of dials you need to make if you had a better qualified universe of suspects?

4.      Normally there won’t be just one area you choose to improve. But be careful; don’t bite off more than you can chew. And if you’re looking for the place to start, the earlier in the process you improve your ratios, the more leverage you’ll apply across all your efforts.

(If you would like a calculator to help see you how changing one element in the RATIOS affects the other elements just e-mail us at info@kosa-consulting.com.)

Step Four - Determine the 'how' you're going to improve what you've selected to work on.

Now that you know “what” to focus on, you’ve got to ask yourself “how” you’re going to improve it.   Here are some suggestions.

1.      Increase the DIAL TO CONVERSATION RATIO by 20%.

2.      Increase the CONVERSATION TO FA RATIO by 20%.

3.      Increase the CLOSING RATIO by 20%.

4.      Increase the average size of your sale by 20%.

5.      Find better qualified leads.

Step Five - Take action.

All of the analysis and planning you can do is worthless if you don’t put it to work.   Don’t just go through the motions – do it!  It’s really that simple.  Think of it this way, if you really want to improve the only way to do it is to implement a plan for change.   If you go into next year and expect better results without changing anything or learning something new then, like Einstein said, you just might be insane.

The methodologies and skills we teach have been around since 1979. Our techniques, although adjusted for changing times and technology, are proven. I would obviously love to be the one you choose to help you be more successful in 2006. However, there are other methodologies that also work. I encourage you to pick one, work harder in the beginning to implement it, and then enjoy the benefits of working smarter for the remainder of your career!

Take a Fresh Look at Selling
By Robert Middleton

Have I told you that when asked what the stereotypical salesperson sells, the most common answer is "used cars"? We look at selling as the same thing as selling used cars! A wonderful image don't you think when we're out there trying to get new clients? That's what Tony is talking abut. We click into this inauthentic salesperson persona and try to start persuading people. Needless to say, it's a big turnoff. We come off as manipulative and sleazy.

Using persuasion in this context means using techniques before focusing on relationship. It means having your whole attention on getting the sale, not on how you can serve. It means listening only so you can get your prepared pitch in, not really hearing concerns.

Good, professional salespeople are very persuasive but they don't use these outmoded persuasion techniques. So how does one succeed in "being persuasive" instead of "using persuasion?" Good question. Here are a few ideas.

1. Set the stage for any sales meeting, whether on the phone or in-person with a statement of purpose: "What I wanted to talk with you about today was how we can reduce your attrition rate." With this statement of purpose the conversation becomes focused. There is no hidden agenda and you learn quickly whether or not you are on the same page.
2. Make sure the majority of the time is spent in asking questions and really listening. The more you know about your prospective client's situation, the better you know if you can help them or not. Don't just accept answers at face value. "Question into" the answers you get to learn more. "You think you're losing people because there is poor communication in your company - tell me why you think that makes people want to leave." Too many people just jump from question to question, never really getting to the heart of the problem or understanding the issues involved.
3. Ask questions not just about problems and the current situation, but questions about the future and about aspirations. "Well it makes sense that you want to keep your people and you want to save money in hiring costs, can you tell me what you might be able to accomplish if you had a more stable workforce?" A question like this might uncover the hidden motivator that will move a prospective client to action. When they tell you their dreams you start to realize that your service can truly help them achieve those dreams. When you start to get excited about their goals, your excitement is contagious. It makes them want to work with you.
4. Asking for the business can actually be the easiest part of the selling process if you've really connected with the problems and the desires of your prospective client. At some point in the sales conversation it's your turn to "invite" them to take the next step. "As I explained, our program is guaranteed to reduce attrition by a minimum of 50%. (assurance) When that happens I think you'll really get the opportunity to become the leader in your industry. (acknowledge stated goals) The way we start is with a complete review of your hiring process and interviews of managers in all departments. (matter-of-fact process) I could start as early as next week. (availability) Does that work with your schedule?" (confirmation of their availability)

The only reason we need to "use persuasion" is when the value of what we have to offer doesn't really address the needs of the prospective client. Fancy and manipulative closes, leading questions, and other less-than-savory selling techniques have no place in your repertoire. If you truly believe in what you have to offer and do your best to find out what's needed you'll "be persuasive" without a lot of "persuasion" or effort.

"This article is by Robert Middleton of Action Plan Marketing. Robert's web site is a comprehensive resource on marketing for Independent Professionals. For free marketing resources and valuable marketing tools visit http://www.actionplan.com"

Seven Questions You Should Be Able to Answer about Your Prospect Before You Try to Close the Deal.
By Stephan Schiffman

Why do salespeople fall into the trap of attempting to close the sale with silly “closing tricks” – like saying “I’ll lose my job if you don’t buy from me?” The short answer is that they’re afraid. Specifically, they’re afraid the prospect will turn them down if they ask for the business straightforwardly. So to overcome this fear, they practice delivering some manipulative, supposedly foolproof “technique” that somehow will magically make the person say “Yes.”

The truth is, their fear about asking for the business is usually well justified. Most salespeople who try to close the deal don’t yet know enough about the other person to ask for the business.

Here are seven questions you should be sure to ask your prospect before you attempt to close any sale. If you don’t know the answers … you’re not yet ready to make a formal recommendation. You should get face-to-face with your prospect, pull out your pen and your legal pad, and find out the answers.

And by the way – asking these questions also serves an important purpose during the course of your discussion with the prospect. By posing a question that addresses one of the following issues and then taking notes on the response you receive, you regain control of the conversation and put yourself in a better position to make a recommendation about the next step in the relationship.

1.      How did this person get this job?

Was your contact one of the founders of the company? Was he or she recruited by a pricey executive search firm? Did he or she answer a classified ad a month and a half ago? Your aim here is to determine your contact’s level of influence.

2.      What’s the person’s role in the organization?

Is your contact a leader or a follower? What part did he or she play in the past when it came to deciding whether and how to use companies like yours? What major projects is he or she working on right now? If the person you’re talking to does not have any projects that are relevant to your selling area, you are not talking to the right person. Your aim here is to find out what this person can or cannot do within the organization.

3.      Are you dealing with someone who is either a) a decision maker or b) a person who can get the decision made for you?

If your contact has no knowledge, access, or influence relating to your product or service, you need to find a way to get this person to help you connect with someone else in the organization. Your aim here is to identify who, in the organization, is likely to be able to help you get this deal done – and to determine with some certainty whether your contact falls into that category.

4.      What’s the organization’s current plan for dealing with the area where you hope to make a contribution?

To find out, ask, “What were you planning to do this quarter in order to …?" Your aim here is to identify any competitors who may already be involved, and to get a sense of how the target organization has defined the problem up to this point.

5.      Why aren’t they using you already?

Your aim here is twofold: to learn what the company already knows or thinks about your organization, and to find out what plans are already in place. (To this extent, there is a certain amount of overlap between this question and #4.) I suggest that, early on in the relationship, you ask some variation on this question: “I checked my records and I noticed you're not using us right now. I'm just curious -- why not?" While you’re at it, you could also find out if the company ever considered working with you or getting in touch with you in the past. You may have been on the short-list for a project and not even known about it.

6.      Does this deal truly make sense to the other person?

The goal here is to find out whether you’re on your own or whether you’ve got an ally. Sometimes salespeople ask, "How am I supposed to know whether or not what I'm proposing makes sense to the other person?" The answer is actually very simple. When the prospect begins to act as though closing the sale is as important to him or her as it is to you ... you’ll know it makes sense! I like to find out whether what I’m discussing with a prospect really makes sense by asking a question like this as I’m on the way out the door after a second meeting: “Listen – just between you and me, how do you think this is going to turn out?”

7.      What does your contact think is going to happen next?

The main idea here is to get very clear on what the mutually agreed-upon next step in the relationship is. If your contact has no idea you’re about to close the deal, there’s a problem. Here’s a good selling rule: Never make a presentation you don’t think will close! Try saying something like this: “You know, based on what we’ve gone over today, I have to say that this really makes sense to me. I’m thinking that the next time we get together, on Tuesday at 2:00, we’ll go over all the changes and I’ll show you our full proposal, and at that point, I think it’s going to make sense for us to reserve the training dates. What do you think?”