How to stimulate LBM sales in 2010 The New Normal

fr vnv BE AN UNDERSTATEMENT to Isay that LBM dealers and distributors are operating on limited budgets and resources.

In trying to keep operations steady, employees may not have time to think about sales systems, tools, measurement or new potential sales channels. And, because they are going full tilt, there may not be an ongoing analysis of what's working as far as the processes and/or activities that are truly bringing in sales.

A great analogy in our industry is that you wouldn't design a home without a blueprint. And you wouldn't build that home without a foundation. Think of your business like a remodeler or architect would: your customers have to re-evaluate new codes, investigate new tools and materials, and change design preferences according to the times. You can be the architect of a whole new sales dynamic.

Now more than ever, it is important to measure every aspect of the sales cycle, such as leads, phone calls, and appointments. These activities can be combined with new tactics, such as having inside sales make outbound calls,email campaigns, and webinars-all leading to a more productive and efficient sales force. The goal should be to have outside salespeople in front of qualified prospects as much as possible.

You can execute a comprehensive sales system to make this happen. If you think about what sets LBM channels apart from retail, there is more emphasis on relationship selling, field support and training (both offered from manufacturers), and sales pull- through.This makes regular channel communications and feedback inherently important to the sales process. In addition, to sell the endless array ofLBM ,.i, products in today's climate, '.-.: training is crucial. Take advantage of manufacturer training not only for product knowledge, but to build relationships.

Red Flags that Signal Sales Gaps

If you and your team are working the same way you were three Years ago, that's a red flag that the sales process should be re-evaluated. And, if you feel like a hamster on a wheel, working full steam ahead without commensurate results, that's very telling as well. Take time to step back and ask your team for agreement on who you are as a company, who your ideal customer is, and how you can reach them better and more consistently.

This strategic facilitation is really a self examination that may not cost anything. But a few tweaks and tactics from within may have long-lasting, powerful results. If you can't say there are four or five things you're doing differently to respond to changing times, then you are flagged!

Here are some key questions to ask about your business: What is missing inyour sales arsenal? Where are the gaps? Are leads and sales activities disappearing into a sales and measurement system or being lost in the mayhem of daily activity? Are you using all of the resources and tools at your disposal within your organization? Is your sales force infrontof qualified prospects as much as you would like? Why not? And, most importantly, are you telling your ideal customers what makes you special? These are marching orders your entire organization needs to know to stay focused and on the same page.

As an example, an innovative home plans design firm we recently worked with used a day and a half of strategic facilitation to get their sales force in complete unity. They were able to dig into their true "unique selling proposition" as well as generate a creative strategy and tactics to go after their ideal customer.

As the light bulb moments began to fire up, areas of improvement and five or six no-cost tactics were created. They agreed upon who they are, which focused on their passion for design, and assigned some much-needed tasks on the spot. These simple tactics may include modifying the company's website, developing webinars or targeted mailings, creating vendor programs, orgetting manufacturers to partner with you.

Measurement SUstem = Leverage

Sales measurement tells you what is working and what is not. Don't rely exclusively on assumptions and the experience of your sales people to shape your sales efforts. Capture, measure, and analyze thefacts to make sure you truly know the strengths and weaknesses of your sales program. How often are you contacting each prospect and client? Does the amount of contact with a client increase sales?

The good news is there are a number of customer relationship management systems on the market that can be purchased beginning at just a few hundred dollars. One example is salesforce.com, but you can find one that works for you. Most CRM systems come with reporting and measurement tools risht out of the box.

The combination of measuring every aspect of the sales process with adding new tactics and strategies will lead to a more productive and efficient sales force. It is difficult to argue with the goal of having your outside salespeople infrontof qualified prospects as much as possible.

One way to help make this happen is with the strategic use of your inside sales force. Utilizing an inside sales force in conjunction with your outside sales force has multiple positives for your company and your clients. First of all, you are able to leverage time and activities for maximum productivity. An inside salesperson can set phone appointments for your outside salesperson, who is typically a higherpaid employee who should spend time on the higher value activities that they were hired to do.

Secondly, you are able to provide more touch points with your clients and prospective clients. Quite simply, multiple people have the ability to be in contact more frequently than just one outside salesperson.

And finally, your customers will identify more with your company than just with the individual outside salesperson. When a customer is familiar with multiple people in your organization, it will be harder for an outside salesperson to take that contact with them if they ever join another firm. After working so hard to bring in customers, you will ensure their retention even with personnel changes.

How to Look Within

Don't be intimidated by the process-consider it a wake up callfor the entire staff. You could be sitting on a gold mine that could manifest along with the changing times. Try to maximize resources by switching staff around. For example, assign valueadded, sales process activities to someone in customer service. You could have them make l0 prospecting calls a day to support your outside sales efforts. Optimize your "people" resources. Be sure your top sellers are not wasting time prospecting or doing administrative tasks. Outsource things that are not economical for your staff to do, like technology, web development, or marketing. The tactics may be low-cost, but yield high returns.

New Channels, New Audiences

You may feel that there are additional markets for your products, if only you had the time and the resources to identify them. Jim Diffenderfer, president, Accent Truss/ Timber, a Greenville, S.C., provider of heavy timber accents and components, envisioned his products expanding to the outdoor products market, to be utilized by deck building franchises. By branching out into an entirely new channel, his business is expanding to national distribution and increasinp sales.

With our help and contacts, Accent Truss was able to get in front of outdoor products installers to take the business from regional to national. The owner simply didn't have the time or contacts to get there. This is a case where outsourcing sales assistance made perfect sense. Now Accent is getting custom jobs all over the country. According to Diffenderfer, "We're on track to exceed last year's sales."

Channel Partner Relationships

In a down economy, there can be many disconnects between distributors and manufacturers. By using a method of strategic facilitation, these mishaps can be nipped in the bud by bringing together management and sales staffs to hammer out an agreed upon strategy between the manufacturer and distributor.

For manufacturers that offer co-op funds, it's a smart way to spend some of those funds, rather than trying to fit in an extra golf outing. Or, make it a golf outing and strategic brainstorming meeting! This eliminates the elephant in the room and gets you and the manufacturer on the same page.

Some manufacturers already do this with regular advisory board meetings made up of distributors. This is a sound suggestion for any supplier you've had troublesome communications with. When expectations on both sides are fully understood, you end up with the same marching orders to execute a go-forward strategy.

ls lt worth the Time?

Yes, examining your current methods and measuring sales are more than worth the time. It will actually save you time inthe long-run. since you can focus more on what isworking and who is making it work. Remember these tenets:

Live in the new normal-doing more of what you've done in the past does not improve sales

. Determine who you are-mission and goals

Realize that improvement means change

Measure sales in a systematic way

. Never make assumptions of what works

Your business, especially in a tough economy, should always be evolving to keep you ahead of the curve. No one wants to have to play catch up when things turn around. Remember, your selling environment has dramatically changed, which means you may have to toss old ideas and tactics out the window. And, your new set of sales tactics do not have to be costly, but simply results-oriented.

As long as you and your staff are open to change, the sky's the limit for your sales potential.

- Sean Ryan is president ofGlobal Link Solutions. GLS's goal is to help all levels of the LBM channel sell more building products, by providing sales strategy and sales execution services. He can be reached at (866) 813-8264 or sryan@ p loballinksolutions.com.