NZ Sales Manager Issue 29

NZSALES SEPTEMBER 16th 2009 / Issue 29

Stop For Red Flags!

The three critical areas you must explore to qualify leads

R&R–

Reward & Recognition or Random & Reckless?

The Ant Philosophy Life’s lessons from a little critter

NZ’s e-mag for sales leaders

SEPTEMBER 16 th / Issue 29

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THIS WEEK’S MUST READ STOP FOR RED FLAGS! The three critical areas you must explore to qualify leads.

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R & R – Reward & Recognition or Random & Reckless?

What makes a great event?

11 NZSM CALENDAR 12 the ant philosophy

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Lessons we can learn from ants.

14 SALES TRAINING DIRECTORY 15 RESOURCE CORNER

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A WHOLE NEW MIND Daniel Pink offers a fresh look at what it takes to excel in this new world.

15 Quick Fix It’s not what you sell, it’s how you sell

16 THE CLOSE ARE YOU ONE OF THIS WEEK'S WINNERS? SEE INSIDE! ABOUT /

EDITOR / Paul Newsom

richardl@nzsalesmanager.co.nz

Short and sharp, New Zealand Sales

ART DIRECTOR / Jodi Olsson

ADDRESS / NZ Sales Manager, C/- Espire

Manager is a free e-magazine delivering

GROUP EDITOR / Trudi Caffell

Media, PO Box 137162, Parnell,

thought provoking and enlightening

CONTENT ENQUIRIES /

15

Auckland 1151, New Zealand

Phone Paul on 04 586 4733 or email

WEBSITE / www.nzsalesmanager.co.nz

articles, and industry news and information to forward-thinking sales managers, business owners and sales professionals.

pauln@nzsalesmanager.co.nz ADVERTISING ENQUIRIES / Phone Richard on 09 523 4112 or email

NZSM / SEPT 16th 2009 / 2

You may have watched the TV

finance companies and banks who have gone bust

programme a couple of weeks

around the world carry some important messages of

ago called Freefall, tracking the

what it now takes to succeed in sales in the long term.

story of boom to bust in the UK

The world needed the current recession to correct itself;

through the current recession. The story followed a

indeed many of the indicators the economists use are

broker selling discount mortgages to people at the

showing that business confidence is improving. We

value of up to six times their salary – which they

have a long way to go to rebuild trust and credibility in

could never afford once the bubble burst. The sales

some sectors, and hopefully sales people around the

person was highly successful in the terms of his

world will be better at selling as a result.

income when the going was good, but the writing is clearly on the wall when he gets challenged by a

In this issue, Tony Hillyard waves a red flag at us about

colleague on his values and ethics when making such

the importance of qualifying our leads. I find Tony’s

a sale to an old school friend.

knowledge to be second to none on this topic. I’ve learned the hard way and have made the mistake of

I found the programme to be an accurate confirmation

pursuing worthless leads way past their use-by date on

of a primary cause of the current recession – self-

many occasions. So whatever the complexity of your

serving corporate companies and salespeople in the

sales, I recommend you follow Tony’s advice and at

financial sector who have worked only in their own

least apply the test of the three essential questions to

interests and not in the interests of their clients.

your opportunities and stop wasting time.

Now I know some very good people in the financial

Happy Selling!

sector so I don’t tar everyone with the same brush, but the frank admissions of some of the leaders of the

Paul

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NZSM / SEPT 16th 2009 / 3

THIS WEEK’S MUST READ Tony Hillyard specialises in giving sales teams around the world smart solutions to help them win more business in difficult or very competitive markets. Visit Tony’s website at www.TheSalesAcademy.co.nz for more information..

Stop for Red Flags!

The three critical areas you must explore to qualify leads

By Tony Hillyard

I

n this turbulent, recessionary climate it is very tempting to chase down every deal on the prospect list, even the ones that you know in your heart you have very little chance of winning. This can actually make matters worse by diverting sales effort away from the better deals and reduce your chances of winning both the marginal possibilities and the more likely leads. With this in mind, sales opportunity qualification becomes one of the most valuable skills for a professional salesperson to develop.

Too many salespeople chase large, time consuming deals that they have very little chance of winning. We do this because in a tough sales environment it naturally makes us feel better to go after every deal we come across - even

when we know we shouldn’t. This just ends up eating into productive selling time.

Salespeople can also often lose deals without knowing why.

In many cases it could be that they simply failed to ask one straightforward question that would have flushed out an objection or a problem that could have been handled quite easily.

Using a sales opportunity qualification process will enable you to get a good perspective on where you stand with any sales opportunity, but it is particularly important for your larger deals. You must address and resolve these three most important issues before committing a lot of resource to a sales campaign: NZSM / sept 16th 2009 / 4

1. Is it real for us?

• Although there might be a genuine sales opportunity available - it might not be available to you or your company for a variety of reasons.

2. Do we want to win it?

• What is the risk involved?

• Will it take more work and effort than it’s worth?

• Can we adequately resource the sale?

3. Can we win it?

• Do we have the right solution?

• Do we have a good relationship with the customer?

• How strong is the competition?

This qualification process will help you answer these questions and tell you when you have what I call ‘Red Flag’ issues to resolve.

Sales opportunity qualification is a critical and unequivocal

process. You must answer: 'Yes', 'Don't Know’ or 'No' with complete honesty for all the questions in each section.

If you have Red Flag issues then sales activity is required.

Wherever you have answered 'No' or 'Don't Know' to a question, you have uncovered a Red Flag issue that could potentially stop you from winning the sale. You need to stop and think about what sales activities and sales calls you must undertake to get a 'Yes' response to those questions and get yourself into a winning position.

If there are too many Red Flag issues, you may decide that you just won’t have enough time to resolve all of them before the sale is due to close. In those circumstances you might need to consider negotiating for more time. Or you may feel that it is just not worth chasing because it will involve more effort than the sale is worth to you. If so, you will have saved yourself a lot of wasted time that you can invest in finding a better sales opportunity.

If there are too many Red Flag issues...you may feel that it is just not worth chasing because it will involve more effort than the sale is worth to you. If so, you will have saved yourself a lot of wasted time that you can invest in finding a better sales opportunity.

Here are the 27 critical qualification questions you must answer:

1. Is it real for us?

The Decision to Change • Do they have a compelling reason to change?

• Is there Senior Executive support for the need to change?

• Have they discounted a ‘do nothing’ option?

The Money • Have they explained the cost justification for this project?

• Do they have an approved budget for this project?

• Are our costs within their budget?

The Timeframe • Have we agreed a decision process timeline with them?

• Does the decision process timeline suit us?

• Have they allocated enough time to evaluate our proposal in detail?

• Can we meet their delivery and implementation timescales?

The Commercial Reality • Have they accepted our commercial terms and conditions?

• Are we compliant with all of their mandatory requirements?

• Do we have our company's approval to submit a proposal or a quotation?

2. Do we want to win it?

The Risk versus the Gain • Is the value of the sale enough for the effort involved?

• Will implementation be straightforward?

• Can we adequately resource the sales campaign?

3. Can we win it?

The Solution • Are any of our unique features and benefits in their decision criteria?

• Do the Key Influencers favour our solution?

• Have we aligned our solution to their Key Business Drivers and Critical Success Factors?

• Are we proposing a low or reasonable risk solution?

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The Relationship

The Competition

• Do we have a good relationship track record with them?

• Do we have good access to the decision-makers?

• Do we have a well-placed Coach?

• Are we allowed to 'sell' to all the Key Influencers on this project?

• Do we know which of the competitors are favoured by the customer?

• Do we know the strengths and weaknesses of the main competitors?

• Do we know the sales strategies of the main competitors?

There are Three Parts to the Sales Opportunity Qualification Process: 1. Gaining an accurate perspective on a sales opportunity by answering all of the qualification questions with complete honesty.

2. Developing all of the sales activities and sales calls that are still necessary to get you into a winning position for the opportunity.

3. Early identification and elimination of the deals you can’t win and the ones you don’t want to win!

Use this qualifying large sales opportunities process to dramatically improve your chances of winning the significant sales opportunities on your prospect list that you choose to go after – and stop chasing the ones you are unlikely to win or don’t want to win. © The Sales Academy Ltd. All Rights Reserved. July 2009

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MID STRENGTH FULL FLAVOUR FULL LIFE

R & R – Reward & Recognition or Random & Reckless?

What makes a great event?

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tudies and experience show that reward and recognition is vital to keep your sales people motivated and engaged. For many sales teams, incentive schemes form a significant part of this. Some incentive schemes I have participated in worked well for my peers and me; others caused more dissent that incentive.

I’ve also attended my fair share of annual conferences and reward events. The big events involving overseas travel NZSM: What are the key elements of a successful seasonal incentive programme or reward event?

DW: The structure of the programme must be well communicated, and progress constantly measured with results for achievement transparent to all. The targets set for rewards should be realistic and achievable and the rewards should be worth striving to achieve.

If the reward is travel, it should deliver an appealing destination and the itinerary should involve elements of surprise and luxury the participants would not normally be able to experience if they were to book their own holiday arrangements: e.g.; fighter pilot flights, hot air balloon or camel safari, gala dinner in a Viennese Palace ballroom or lunch on a private tropical island.

should be the celebration highlight of the year. I recall some that were fantastic; others left me feeling strangely unmotivated and, at times, bewildered.

The lead up to Christmas is one of the main times during the year where staff are thanked and recognised, and we should be thinking about planning it now. With this in mind, I asked David Williams, Managing Director of Hot Events, to shed some light on what makes a great incentive or reward event.

NZSM: What are the top three things I need to get right to make sure my conference/product launch/elite members’ party is a success?

DW: The venue selection – size, location, quality, style – can make or break a conference or event.

The audiovisual – lighting and sound – are intangible items, but without them you cannot see or hear.

Diligently cover off every element of the event from car parking to catering. You can never be too pedantic and if you’re not experienced, employ the support of someone who is.

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NZSM: Events can be polarizing – the activity appeals to some team members and not others, leaving some on a high, and others wishing they were some place else. How do you plan an event that will cater to all tastes?

DW: You need to be aware of the expectations of the participants in team events, and to also recognise there are different personalities to be managed. Although it is important to steer clear of the boring and done-to-death activities, taking on an adrenaline-based activity requires professional facilitation where all levels of fitness, health, gender etc, are incorporated into the event and all levels of contribution are recognised in the results.

Never assume the Big Guy isn’t genuinely afraid of heights or water!

Optional activities can also be the solution to accommodating different tastes when organising leisure time or sightseeing… spa treatments or scuba diving lessons, there’s a choice!

NZSM: Motivation-type events are great on the day, but are often quickly forgotten. What’s the secret to getting long-term results from this kind of event?

DW: Motivation is personal so make it relevant and keep up the focus after the initial event. Motivational speakers can bring you to tears with their inspirational life lessons; however is there a component of their message that can genuinely be incorporated into delegates’ personal lives?

This can be carried through with a focus at work and set the scene for further team challenge programmes.

Examples of this include giving personal pedometers to everyone in the office and setting up teams distance challenges; introducing company tri-athlete teams for public event participation; working with a charity for company personnel to give their time. A focus on healthy minds, bodies and spirits works well with motivational messages and is easily assimilated into other company activity programmes.

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NZSM: Many businesses have had a tough year, and the sales teams have been fighting for every dollar. They probably deserve a pat on the back more this year than in recent times when things have been easier. If the budget has been cut this year, how can we reward our team for half the cost, but not dilute the outcome?

NZSM: I once heard about a conference held to discuss how to raise personal standards in an organisation that was cancelled on day two because most participants were too hung over to attend. Sales people need to celebrate, but what are your tips for keeping the reigns on things when a corporate culture of excess prevails?

DW: It’s time to be especially creative with budgets when rewarding the team, while not appearing stingy. This concept is proving one of the biggest challenges for managers today, as even if a company is still delivering good profits, they probably don’t want to be seen as recklessly extravagant in tough times. Don’t use these ‘tough times’ as an excuse not to reward, as today it is even more important than ever to acknowledge the extra efforts being made by your company personnel. DON’T CANCEL CHRISTMAS MR SCROOGE!

DW: Celebration and inebriation is not necessarily the same thing. For those truly considering their future career, responsible behaviour while on conference is highly recommended. Time and time again we see people miss their meetings, flights and in some cases end up with injuries as a result of going just a bit too far. This is difficult to reign in if this type of corporate culture prevails – but it’s not a good look in the eyes of future employers, a client or potential customer.

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NZSM / SEPT 16th 2009 / 10

WED 16 SEPT

NZSM CALENDAR SAT 19 SEPT

MON 21 SEPT Sales Development David Foreman Auckland

SUN 20 SEPT

FRI 25 SEPT Prospecting David Foreman Auckland Sales Skills 1 EMA Auckland

       SAT 26 SEPT    

Negotiation David Foreman Wellington

TUE 22 SEPT Sales Development David Foreman Auckland

THU 17 SEPT

FRI 18 SEPT

Territory Management, Richard Gee Auckland

WED 23 SEPT Sales Development David Foreman Auckland

THU 24 SEPT Sales Development David Foreman Auckland Telephone Sales Zealmark Auckland Advanced Serious Selling Richard Gee Auckland

MON 28 SEPT

TUE 29 SEPT

WED 30 SEPT

MON 5 OCT

TUES 6 OCT

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THU 1 OCT

FRI 2 OCT

SAT 3 OCT

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Telephone Selling David Foreman Auckland

Telephone Selling David Foreman Auckland

Sales Management David Foreman Auckland

Sales Management David Foreman Auckland

SUN 4 OCT WED 7 OCT Sales Management David Foreman Auckland Sales Skills 2 EMA Auckland

TUE 13 OCT Negotiation David Foreman Auckland RSN Event Ten Dynamite Steps For Goal Achievement Auckland

THU 8 OCT

FRI 9 OCT

Sales Management David Foreman Auckland Essential Sales Skills Zealmark Auckland Sales Seminar Top Achievers Sales Training Auckland

WED 14 OCT Negotiation David Foreman Auckland Next issue of NZSM out

SAT 10 OCT

MON 12 OCT Negotiation David Foreman Auckland

SUN 11 OCT WED 15 OCT Key Account Management Zealmark Auckland Leadership with Results Richard Gee Auckland Sales Seminar Top Achievers Sales Training Hamilton

FRI 16 OCT

SAT 17 OCT

Prospecting David Foreman Christchurch

SUN 18 OCT

TWO MINUTE TOP UP This article was submitted by Jim Rohn, America's Foremost Business Philosopher. To subscribe to the Free Jim Rohn Weekly E-zine go to www.jimrohn.com

The Ant Philosophy

By Jim Rohn

O

ver the years I've been teaching kids about a simple but powerful concept – the ant philosophy.

I think everybody should study ants. They have an amazing four-part philosophy, and here is the first part: ants never quit. That's a good philosophy. If they're headed somewhere and you try to stop them; they'll look for another way. They'll climb over, they'll climb under, they'll climb around. They keep looking for another way. What a neat philosophy, to never quit looking for a way to get where you're supposed to go.

of here." And the first warm day, the ants are out. If it turns cold again, they'll dive back down, but then they come out the first warm day. They can't wait to get out.

And here's the last part of the ant philosophy. How much will an ant gather during the summer to prepare for the winter? All that he possibly can. What an incredible philosophy, the 'all-that-you-possibly-can' philosophy.

Wow, what a great philosophy to have – the ant philosophy.

Never give up, look ahead, stay positive and do all you can.

Second, ants think winter all summer. That's an important perspective. You can't be so naive as to think summer will last forever. So ants are gathering in their winter food in the middle of summer.

An ancient story says, "Don't build your house on the sand in the summer." Why do we need that advice?

Because it is important to think ahead. In the summer, you've got to think storm. You've got to think rocks as you enjoy the sand and sun.

The third part of the ant philosophy is that ants think summer all winter. That is so important. During the winter, ants remind themselves, "This won't last long; we'll soon be out

Copyright © Jim Rohn International. All rights reserved

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    

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   

 

  

  



 

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  

  

  

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

  

  

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

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 

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   

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  

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  

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NZSM / SEPT 16th 2009 / 14

RESOURCE CORNER

A Whole New Mind

By Daniel Pink Published by Allen & Unwin

I

n the tradition of Emotional Intelligence and Now, Discover Your Strengths, Daniel Pink offers a fresh look at what it takes to excel in this new world. The era of left-brain dominance, and the Information Age that it engendered, is giving way to a new world in which right brain qualities – inventiveness, empathy and meaning – predominate. At least that's the argument at the centre of this provocative and original book, which uses the two sides of our brains as a metaphor for understanding the contours of our times. A Whole New Mind reveals the six essential aptitudes on which professional success and personal fulfillment now depend, and includes a series of hands-on exercises culled from experts around the world to help readers sharpen the necessary abilities.

Editors note: This is one of my favorite business books of the past couple of years. Thought provoking and enlightening, it is well worth a read – it might just lead you to make some changes to your five year plan!

QUICK FIX

$51.99 from

It's not what you sell, it's how you sell

Y

ou have just crafted a great sales letter, (or more usual, changed the name and date on your standard letter), and are writing the last line. It goes like this…….

‘If I can be of any further assistance then please do not hesitate to contact me.’

on the terms…..> I will call you next <name the day> to do <whatever it is>.’

Your closing line now has value and meaning. It might take some thought, but it will drive your follow up activity too!

This has to be the most overused, unimaginative, boring closing line to a sales letter. Everyone uses it and they all sound like scripted sales people. It is lazy and meaningless.

The Quick Fix Your letter must progress the sale. Rather than inviting the customer to call you, tell the customer what you expect to happen next.

Try this…’With your approval, the next step will be to <schedule a meeting, measure up, choose the colour, agree

WIN A LASER POINTER PEN FOR YOUR QUICK FIX! If you have a favorite ‘quick fix’ that you would like to share with our readers (without giving your winning secrets away!)

IMG_2752.jpg then email the editor at pauln@nzsalesmanager.co.nz You will be in to win a high-powered laser pointer pen, courtesy of the great guys at Brand Storming Promotions.

NZSM / sept 16th 2009 / 15

“ Perseverance is the hard work you do after you get tired of doing the hard work you already did.

“

Newt Gingrich -

58th Speaker of the United States House of Representatives

Have you subscribed to New Zealand Sales Manager? It’s free!

Simply visit www.nzsalesmanager.co.nz to get a copy of New Zealand Sales Manager delivered straight to your inbox every third Wednesday!

NZSM / sept 16th 2009 / 16