CEO Sales Guide

How many people in your sales department would enthusiastically endorse your Customer Relationship Management (CRM) system?  When I talk with CEOs and Vice Presidents of Sales I rarely hear “enthusiasm” in their voice or see it in their face when discussing their CRM system.  Instead, I see a resigned look of frustration.  Or worse, a false sense of security (“You should see the charts and reports I can produce!”).  It gets worse when you talk with sales managers and sales people, the people who actually need to enter the data and keep all the information up to date.

CRMs are part of the landscape and are key to driving accurate sales forecasts.  And when properly implemented, rolled out, modified based on field input, and managed on a continual basis, CRMs can be powerfully useful.  We have clients who have come close to this type of installation.  Two of our clients that utilize Salesforce.com immediately come to mind.  We also have a client with a Membrain installation and another client with a GetBase.com installation that come close.  We use GetBase.com for our sales team, in part because we love the simplicity of the design and its similarity to our preferred project management tool, Asana.

However, these are the exceptions!  We more commonly see examples of failed CRM installations.  Let’s be specific.  To us signs of a failed CRM installation include:

• Inconsistent and incomplete data

• Unclear process (no definition of milestones in the sales process)

• Old, out-of-date data

• Overly optimistic data

• Opportunities consistently languish in the pipeline (no movement or very slow movement)

• Opportunities that should be eliminated are kept in the pipeline/forecast

• Limited clarity around next steps and customer commitments

• A false sense of security among the leadership team (followed by “surprise” shortfalls)

And while there are many other signs to list, this should give you a general sense of what to watch for at your company when reviewing sales reports from your CRM.

During your next leadership meeting make the decision that 2015 will be the year that you can actually trust your sales forecast.  Review the checklist above as a starting point, then go further to discuss specific issues and challenges you see in your company’s use of sales forecasts and your CRM.  You should also have your sales managers facilitate a discussion at their next sales meeting to identify the most common reasons for sales that were projected to close falling apart and not occurring.  The output from that discussion will provide a great framework for on-going coaching topics as you move forward.  

It’s the time of year when we take stock of where we are, and make plans for where we want to go. What went well in your business in 2013? What didn’t go so well (or “needs improvement” as some people like to say)?

As you create a sales plan for 2014, and map out where you would like your business to go, consider some specific things you can do to improve sales productivity. Here are five (5) objectives we suggest you consider.  Whether you select one of these or come up with a sales improvement plan of your own, pick at least one area to focus on in 2014 and stick with it for the next four quarters.

1.  Face the brutal truth

In Good to Great and the many subsequent books resulting from his research on what makes companies great, Jim Collins notes that the first step to being a great company is to face the brutal truth. 

In our opinion, the single most impactful investment a CEO or business owner can make in their sales organization is to conduct a comprehensive Sales Effectiveness and Improvement Analysis from Objective Management Group.If you are serious 

2. Focus on your sales pipeline

Your sales pipeline is the single most accurate forecast of incoming revenue in your company.  Your management team should review it regularly and make adjustments accordingly.  Your operations manager must use your sales pipeline as a guide to adjusting capacity requirements.  Your Chief Financial Officer should use your sales pipeline as a guide for making strategic investments and managing cash flow more effectively. 

In fact, everyone on your management team should look at your sales pipeline and gain confidence.  Most companies don’t use their sales pipeline this way because it is usually a joke your sales manager tries to defend and justify at management meetings.  What would happen if you had a reliable sales pipeline your leaders could count on?

3. Commit to coaching

Your sales managers should spend about 50% of their time directly coaching your sales people.  It is the only way your sales people will make consistent improvements so that every week, every month, and every quarter you will be able to look at the behaviors and activities across your sales organization and say “Yes, we’re clearly getting better.  We’re having better conversations.  We’re getting into better opportunities.  We are winning business more consistently because our proposals are better qualified.  We are selling better work at higher margins.  We are improving customer satisfaction.  We have better communications from our sales team to the rest of the organization.”  To be able to say these things you need to commit to a consistent and rigorous coaching routine.

4. Hire stronger sales talent

Upgrading your sales talent can be a growth strategy.  How many people on your sales team would you enthusiastically rehire?  Who are the mediocre performers on your team that you tolerate because you don’t want to make a change?  What is your plan for these B and C-players?  Can you develop them?  Coach them?  Put them in a position better suited for their skills?  What would happen if you committed to an A-Player-only hiring strategy?  Perhaps this is the year to make that happen.

5. Narrow your market focus

Sometimes we just take the work our sales people can sell instead of being focused and disciplined around selling to accounts that best fit our model. 

Who are your best accounts?  The idea of “best” could mean most profitable, easiest to work with, most strategic potential, deepest relationship, or many other factors.  What would happen to your business if your entire account base was comprised of customers who really fit what you do?  Who are the customers that take up disproportionate resources?  Can you adjust your pricing to encourage them to leave (freeing up valuable resources for customers who are a better fit)?  Looking at your sales pipeline, are your sales people targeting the right types of accounts and are they having conversations at the right level?  Or are they just taking whatever they can get?  What would your company look like 12 months from now if you narrowed your market focus and aligned your sales organization around the accounts that best fit your operation?

Make it a priority to clearly define what your ideal account looks like, and include it in your entire sales process.

Where does your sales team “need improvement” this year? Let us know which one you picked and we’ll check in with you in 90 days to make sure you are sticking with it!

...About Their Sales Forecasts and Pipeline Reports

Many CEOs we work with either don't pay close attention to the sales pipeline reports they get from their sales managers (because it's rarely accurate) or ignore pipeline reports and sales forecasts completely (because they've lost faith in the accuracy of the reports, the sales manager who put them together, or both).

We work with middle market and large corporate clients in a wide variety of industries - selling different products and services, to different target markets, with different sales cycles, at different price points, with varying levels of complexity and competition, and several other important differences. And yet, nearly every CEO we work with has similar issues and challenges when it comes to the accuracy and rigor applied to the data tracked in the sales forecasts and pipeline reports they get from their sales managers.

With just a little bit of attention, these same CEOs could have a significant impact on increasing revenue, improving profit margins, accelerating sales cycles, improving accountability, and increasing forecasting accuracy.

How? By putting some focus on these common sales pipeline challenges companies face. 

With that in mind, here are six (6) questions your sales managers hope you won't ask about their pipeline:

1. How long has each opportunity we are tracking been in our sales pipeline?
2. What would the total value of our pipeline be if we eliminated each opportunity that is older than X months?
3. Under ideal circumstances, how much time should it take for an opportunity to move through each stage of our sales cycle?
4. Have we defined the committments we need from the prospective customer at each stage of the sales process so we can confidently move an opportunity to the next step?
5. When an opportunity gets stuck at a particular point in the sales process, what coaching feedback are you providing the sales person who is responsible for that opportunity?
6. How many opportunities should each salesperson on the team either move forward in the sales process or eliminate from the sales pipeline every week.

Here's a radical idea - let's have your sales team qualify opportunities before you prepare a quote!  Too many sales organizations seem to use a "quote and hope" strategy that rarely drives consistent revenue growth.

Continuing our series on Building a Profitable Sales Process, this post will cover step 8 - qualifying the opportunity.

If you asked your sales people and sales managers what's the most important area to explore in the qualification process you'll probably hear "budget".  And that's good, profitable business begins by working with customers who can afford your product or service.  But there is much more to the qualification process than just finding out if they can afford to pay you.

Here are eight (8) questions to have your sales managers ask when coaching your sales people to review opportunities at the "qualification" stage of your sales process:

1. Have we uncovered all of the issues and do we fully understand the impact our product or service will have on the prospect's situation?
    
2. Does the prospect agree with all the issues we have identified and do they have urgency to make a change?
    
3. Have we discussed the investment required to implement our solution or purchase our product and does the prospect understand the value this investment will create?
    
4. Do we understand the prospect's timeline for when they need our product or solution and do we have the capacity to take on this work within the timeline the prospect requires?
    
5. Do we understand the prospect's decision process, know all of the stakeholders involved, and have a strategy to leverage our advocates and covert (or at least neautralize) our detractors?
    
6. Have we asked enough questions about the competitive context in which the prospect is making this decision?  Do we know the advantages our solution provides and how these advantages fit into and align with their buying criteria?
    
7. Do we have all of the technical information we need to produce an accurate quote?  Has the prospect provided contact information for any technical people on their side (engineers, quality control, etc.) we may need to contact with clarifying questions as we prepare our quote?
    
8. Have we clearly defined what happens when the prospect receives our quote?  Has the prospect agreed to make a decision?  Have we set up a meeting to review the quote and go over any questions?

Continuing our series on 10 Steps to Building a Profitable Sales Process, this post will address steps three and four.

If you are following this series and applying the ideas to your sales organization, by now your sales leaders should have lead the sales team through the process of identifying your most profitable prospects to target and everyone on your sales team should have a focused list of top prospects.  If that's where you are right now congratulations!

You're off to a great start.  If not don't worry, you can easily catch up.

Now it's time to get to work by actually contacting these prospective customers. There are a lot of cold calling articles, books and scripts available to you, so our focus for this article will be high-level principles rather than specific tactics.
  

1. Schedule Prospecting Time
   Everyone on your sales team should specific times scheduled on their calendar for business development activities.  Zig Ziglar wrote about this years ago urging sales professionals to schedule a time by which they will make their first call of the day.  The earlier the better.
    
   I'd say go one step further and have your sales team schedule a block of time to make contact with prospective customers. They should treat this time as a "can't miss appointment" and their should be consequences for missing it.
      
     
2. Low and Slow
   One of the problems we see when sales people make cold calls - especially if they are out of practice and are just getting started again - is they tend to talk too high and too fast.  Think "low and slow" when making initial contact with a prospective client.
    
   A lower tone conveys confidence and authority. So does slowing down a bit and being comfortable with the inevitable pauses that occur when making first contact. Have your sales leaders listen to some calls and remind their sales people to slow down and lower their tone of voice.
      
     
3. Point of View
   When making initial contact, your sales people should look at the world from the prospective customer's point of view. What is important to them? What are some common frustrations they might have? Have your sales people position your product or service from their point of view rather than your company's point of view. For more on this highly effective approach read about "positioning statements" in Dave Kurlan's Baseline Selling.
     
     
4. Sell with Stories
   Instead of describing the features and benefits of your product (which will generate a quick hang up), have your sales people sell with stories. Give examples of issues and challenges people like your prospect are experiencing and ask if that's something that is challenge to them.
    
   A strong story or example followed by an engaging question is much more effective than just describing your product or service. Remember, the goal of the initial contact is to engage them in a conversation that (hopefully) leads to a next step.
     
     
5. Ask Questions Three Deep
   Once your sales people have engaged the prospect in a conversation it's important to keep the conversation going by asking questions and going at least three questions deep (more if possible).  Questions and phrases such as "when did you first notice this...." or "how long has this been an issue..." or "tell me a little more about how that impacts your operations..." can go a long way toward keeping the conversation going. 
     
     
6. Ask for the Appointment
   After a few minutes of phone discover, if there's a problem your sales people might be able to solve, ask for the appoinment. That's the goal of making initial contact, so don't let them beat around the bush.  Get right to the point and ask if it makes sense to get together or schedule a follow up call to explore the issue in more detail.
    
   If your sales people are having the right conversation this should be an easy, logical next step.  If they're forcing the conversation this will be difficult to convert and they will continue to struggle.
    
     
7. Ask for a Name
   If your sales people cannot find an issue worth exploring in an appointment or follow up phone call, have them form the habit of asking for another name to call.  It's as simple as "it doesn't sound like you need us right now, is there someone else in your network who might?"
    
     
8. End with a clear next step
   Even if there is not an opportunity to get together right now, everyone on your sales team should set expectations by asking permission to re-engage in the future.  I like to use the sports calendar as a reference point because it's more memorable.  So instead of saying "I'll call you next fall" I might say "I'll call you when the Cowboys are 2-0" (if I'm prospecting in Dallas).  Or "I'll call you right after the Masters..."  Or "I'll reach out to you again around the All Star break...."
    
   Make sure your sales people keep good notes in your CRM so they can keep track of these follow up calls. 
   
    What's holding your sales team back from making initial contact with prospective customers?  Find out by investing in a detailed analysis of the people, systems, and strategies that impact sales at your company. Download a free sample of the new Sales Effectiveness & Improvement Analysis.

How effective are your sales managers at running a good sales meeting? How engaged are your top performing sales people? How much is this costing you in terms of lost productivity, lower morale, and higher turnover on your sales team?

Here’s a quick test you can do by sitting in their next sales meeting. Put aside the fact that your being there may change everyone’s behavior.

Just ask one of your sales managers if it would be alright to sit in for a few meetings just as an observer.

Here’s what I want you to observe:  count the ratio between statements your sales manager makes and questions your sales manager asks.

You  might be surprised by the results!
Too often the sales meetings we observe tend to focus on unimportant administrative tasks and boring progress status reviews. Too often we hear statements, proclamations, and updates instead of questions, discussions and collaboration. That's why most your top producing sales people dread going to sales meetings and will find just about any excuse to be somewhere else.

What would happen if all of the administrative updates happened offline before the weekly sales meeting? What would happen if every week your sales managers spent no more than 15-20 minutes on updates and then focused the balance of the hour on a particular sales challenge or market opportunity? Would your sales people make incremental progress if every week they spent 40-45 minutes collaborating with their teammates in engaging discussions facilitated by your sales managers?  


Here are six (6) potential topics to consider:

1. Prospecting Focus - ask your sales managers to go beyond a quick review of the top 20 prospects each sales person is targeting. Instead they should facilitate a conversation about why they picked those prospects, how they're approaching them, what they say when they get them on the phone, which questions and examples create the most urgency to schedule a meeting, what activity levels are driving success across the team, and so on. Everyone on the team should walk out with clear next steps and expectations to meet and report on at the next sales meeting.
    
2. Overcoming Objections - have your sales managers facilitate a brainstorming session to identify the most common objections (price is always number one) the sales team encounters. Rarely will the list go beyond 12-15 total objections.  Work through the top two to three (2-3) objections as a group and then assign the rest and have each sales person outline strategies to overcome/address/handle/neutralize the objection assigned to them and present it at the next sales meeting.
    
3. Voice of the Customer Exercise - have your sales manager work with each team member to select a current client and conduct a brief interview to understand
   
   a) what the customer likes best about working with your company (descriptive and results focused),
   b) what they would change if they could change one thing about your company (opportunities for improvement), and
   c) where they would focus their time and efforts or who they would call if they were the sales person (prospecting and referral opportunity).
   
   Each sales person should share their findings with the team and your sales manager should facilitate a discussion around what this feedback means and how to use it on upcoming sales calls.
    
4. Question Funnel Exercise - what are the six to eight (6-8) most common problems or challenges your customers and prospective customers face? Ask your sales manager to facilitate a discussion and brainstorming session to document ALL of the questions a sales person could ask to uncover these common problems and challenges.  What questions and discussions will expose these issues?  What are the different question sets that will help a prospective customer "discover" the impact these challenges are having on their business.
    
5. Market Trends - what changes are happening in the markets you serve that could impact your prospective client's ability or urgency to buy your product or service? Is the competitive landscape changing? Is there a new technology or business model that could disrupt your business? Are there regulatory pressures? Are there capital challenges or financing requirements that could delay a project start up? What are your sales people hearing in the market that everyone should know about? Can your sales manager facilitate a discussion that helps everyone on the team drive that discussion on sales calls rather than react to it cold?
    
6. Win/Loss Analysis - have your sales manager select a recent deal (either a win or a loss) and go deep into what happened. What went really well that should be repeated whenever possible? What didn't go so well that should be avoided in future opportunities? How repeatable and avoidable are these factors? What are the specific activities, behaviors, and deal components that a sales person can control and drive in future deals? Are your sales managers strong enough to go beyond the celebratory "high five" for wins or the surface-level "post mortem" for losses? What lessons should every sales person on the team learn from each big win or loss?

If your sales meetings have become a boring exchange of updates and progress reports, why not have your sales managers jump start them with any of these topics, or whatever issue is most pressing at your company? If they run out of ideas, simply have them ask everyone on their sales team to write down their top three _______ (sales challenges, sales successes, obstacles, growth opportunities, process improvement ideas, referral strategies, closing questions, and on and on) and then faciliate a discussion about that.

Need help getting started?
Contact me and ask about how we can help increase the focus for a series of sales meetings.

FREE Sales Accountability Plan!
The difference between top producing sales people and everyone else is their ability to hold themselves accountable on a consistent basis. Our simple, four-step Sales Accountability Plan will help you do just that.
 

There are only a few seats remaining for our upcoming free seminar, "The Ultimate Sales Call, Five Lessons that Drive Results" on Wednesday, June 20, 2012 at the Milwaukee Athletic Club.  After the seminar there will be a free Networking Event on the rooftop where you kick off your summer in style with your peers.  

1. It’s Not About You – when talking with a client or prospective client, the more you can make it about them – their problems and challenges, their operational issues, their missed opportunities, their cash flow struggles, their people issues, their production challenges – the better your conversation will be. 
2. Narrow Your Focus – to build up your pipeline get very clear about who your target accounts should be.  What type of companies do you like working with?  What challenges do you love to help solve?  What style or personality type do you enjoy working with?  Think carefully about who your ideal clients would be and then build your list.  We will review some simple tools that can help you build highly focused, targeted lists.
3. Mind the Gap – when talking with a prospective client, your goal should be to ask lots of questions to help the prospect understand the gap between where they are now (without your help) and where they could be if they were to work with someone like you.  The more time you can spend drawing this comparison and increasing the prospective client’s awareness of this gap, the better your results will be.  To find out how this worked for Martin Luther King and Steve Jobs – please see this post from my CEO Sales Guide.
4. Questions are the Answer – one of the bad sales habits we see right away in our role play exercises is the tendency for sales people to make statements that could easily be turned into a question.  When you make a statement to a prospect, they can disagree and argue with you.  If you turn your statement into a question and have them say it, it’s true to them and it is much more difficult for them to argue or disagree.
5. Purpose and Next Step – begin every sales meeting with a clear purpose (e.g. “here’s what we’d like to do today…”) and end every meeting with a clear next step that the prospect agrees to do (e.g. “We’ll talk next Tuesday to schedule a meeting with your management team….”).  How often do you sit down with the "perfect prospect," have a "great conversation," only to find yourself in chase mode as you try to move forward and suddenly they disappear?  Starting every conversation with a clear purpose and ending every conversation with a clear next step removes this ambiguity and keeps your sales process on track.