NZ Sales Manager Issue 8

AUG 20th 2008 / Issue 8

Kevin

BIGGAR

We spoke to the Antarctic adventurer,

trans-Atlantic rower and motivational speaker

Managing

Relationships

Demystifying Customer Relationship Management

Effective Listening

AUGust 20 th / Issue 8 5 INTERVIEW

KEVIN BIGGAR Adventurer and world record breaker Kevin Biggar talks to NZ Sales Manager about the amazing things he has achieved, setting goals, risk, sponsorship and pain.

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8 THIS WEEKS MUST READ MANAGING RELATIONSHIPS Jim Lindsay offers tips on how to manage positive interactions with your clients.

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12 TWO MINUTE TOP-UP

EFFECTIVE LISTENING How to differentiate yourself from the competition before you even open your mouth 14

NZSM CALENDAR

15 BOOK REVIEW

GOOD TO GREAT Why some companies make the leap and others don’t

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16 SALES TRAINING DIRECTORY 17

THE CLOSE

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ABOUT /

In this issue of NZ Sales Manager we speak with someone who has done what many of us wish we could do. Pack it all in, wipe the slate clean, and do something completely outrageous, unexpected, and unlike the life we have already created for ourselves.

Kevin Biggar ditched a promising corporate life to set a world record for rowing across the Atlantic ocean after seeing a bit of ocean rowing on TV one day.

This one seemingly mad decision led to many further achievements for Kevin, and Kevin can now describe himself as any number of exciting things, such as adventurer, world record setter, motivational speaker and author. The important thing to note is that had it not been for Kevin’s willingness to put the life he had already achieved on the line (both literally and figuratively), he would not be able to describe himself as any of these things today.

Short, sharp and to the point, New Zealand Sales Manager is a free fortnightly e-magazine delivering thought provoking and enlightening articles, and industry news and information to forward-thinking sales managers, business owners and sales professionals.

EDITOR / Richard Liew DESIGNER / Jodi Olsson ADVERTISING ENQUIRIES / +64-9-361 1375 or email richardl@nzsalesmanager.co.nz CONTENT ENQUIRIES / +64-9-361 1375 or email

While we may choose different adventures, Kevin’s story is the kind of story many of us would write for ourselves if we knew we were able to come back for a second chance at life, or if we weren’t so afraid of risking the lifestyle we already have so much invested in. Kevin’s story raises a question worth asking yourself on a regular basis. Is the life you’re living one that you have chosen for yourself, or have you simply let it choose you?

richardl@nzsalesmanager.co.nz ADDRESS / NZ Sales Manager Magazine,127a Ponsonby Road, Ponsonby, Auckland, NZ. +64-9-361 1375 WEBSITE / www.nzsalesmanager.co.nz

Don’t let the belief that you have already invested too much of your life into achieving what you’ve got, rob you of your potential for more.

NZSM / AUGust 20th 2008 /

KEVIN BIGGAR

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Adventurer and world record breaker Kevin Biggar has dedicated the last few years of his life doing things that could have seriously shortened it, including setting the world record for rowing across the Atlantic ocean and becoming one of the first New Zealanders to walk unsupported to the South Pole. He talks to NZ Sales Manager about goals, risk, sponsorship and pain.

NZSM: Kevin in the last few years you’ve set a world record time for rowing across the Atlantic Ocean and with fellow Kiwi Jamie Fitzgerald became the first New Zealanders to walk unaided to the South Pole…WHY?!!!

KB: It’s a little bit hard to say. After working as a management consultant for a few years I reached a funny point in my life, kind of a watershed moment when I suddenly had a vision of what the rest of my life was going to be like. I think when you are growing up and it seems like a year is a long-time, anything could happen in the year. But then I reached an age where I could see that what I would be doing in the year would be exactly will what I am doing now unless I changed something. It was like being visited by the “Ghost of Christmas Future.”

I think most guys have an experience one day where they are watching the All Blacks and realise that they are older

than everybody on the team. Not that I wanted to be All Black, but it did represent opportunities that were slipping away. The other angle was that, at that point in my life I really needed something, some project that was really going to absorb all of my attention, really straighten all the kinks out of my life and give me something to pour all the energy into. If nothing else putting your life on the line really helps focus your attention! It was then that the idea of rowing the Atlantic came up and it seemed like a pretty good fit.

I didn’t initially plan to win the race, but then I got a great team around me and they really pushed me forward. The South Pole is slightly different, I have read all the books about Scott, Shackleton, Amundsen and so on, and was just captivated by the thought of walking across such an immense icy wasteland, to reach the geographic bottom of the earth. It was a bit of a romantic vision, in reality it NZSM / AUGust 20th 2008 /

turned out to be pretty tough.

NZSM: Before you attempted the Atlantic row you had a physics degree, a Master of Philosophy from Cambridge, and a promising corporate career with Boston Consulting Group – good achievements for any young person why would you risk your life when the future already looked so good?

KB: If you’re asking me “why did I give that life style up” I certainly spent a lot of time asking myself that question. And never really came up with any answer other than I wasn’t happy doing what I was doing.

My gut feeling was the world is vast, diverse, wild and amazing. There are a million experiences out there waiting for me, and only a limited time to get them.

I certainly never viewed it as risking my life, someone has described me as the most risk averse person that they know. I like to do things that appear risky, but with the risks carefully managed, and living by my judgment and preparations.

For example every rowboat that has been lost at sea attempting to cross an ocean, has been found intact later. So as long as you stay tied onto the boat you will be okay.

That’s what I mean by managing risk.

NZSM: You can’t row across the Atlantic in 40 days or haul a sledge to the South Pole in 52 days without expecting some pain both physically and mentally – how is it you can knowingly put yourself through all that pain when most people do whatever they can to avoid any pain at all?

KB: I don’t like pain at all either! It was a big revelation to me when I spoke to a person who had walked to the South Pole and asked him “isn’t it cold?” He said, “You know it’s going to be cold, you take warm clothes.”

What I took from that was that if something is going to be risky, or painful-and you can anticipate it-then very often you can do something about it. For example the ocean rowers that I spoke to before our race had all complained about what had happened to their backside, so I spent a lot of time making sure that we had the most comfortable seat possible. Why wouldn’t you? I really worked hard to make certain that the only pain that we had from the race was from effort - and that is a different sort of pain.

NZSM: For most people, rowing across the Atlantic would be a massive goal in itself – was setting a

world record time a conscious part of that goal?

KB: The weather conditions are really too variable to give any guarantees of breaking a world record, but you can plan to come first. Partway through the campaign I went to seeing Jon Ackland,of Performance Lab, an exercise physiologist and performance coach, and he explicitly asked me if I was planning to win the race. I said that I thought I would do my best and see what happens.

And he chewed my head off for half an hour telling me, and eventually convincing me, that if I wanted to win the race I really need to start planning to do so if I was to even have a chance.

And he is exactly right, if you plan to win then everything about your preparations change.

NZSM: Preparing for and doing the things you’ve done can’t have been cheap. How did you raise the money?

KB: We tried to put together a package that was irresistible to sponsors. It wasn’t easy. It is difficult to argue that a company is going to get a big advertising boost by putting their name on the side of the boat when the boat is going to be in the middle of the Atlantic for months.

But we tried to focus on those companies that seemed to have brand values that could be enhanced by the campaign. And we did a lot of calling. There was a lot of persistence and organisation. It helped that we really believed in our product, I couldn’t understand why companies wouldn’t support us, and so I had to hear no at least three times.

NZSM / AUGust 20th 2008 /

There is certainly a magic that comes about from setting a goal, It wasn’t just persistence, it is amazing the resources that suddenly appear to help you by teaming achieve them once you focused on what you are trying to do up with media companies, we the Antarctica trip was about 10 days really did come longer, and we couldn’t take all the NZSM: Many people say the reason up with a very good package for our food that we needed so we were they don’t set goals is because supporters. In fact it was so good effectively eating ourselves - I lost they can’t see how they’re going to that it was a no-brainer, as soon as nearly 50 pounds over the 52 days achieve them – did you know how the company signed up they were we were down there, and we were you were going to achieve the goals definitely better off. eating 6 1/2 thousand calories a day! you had set for yourself? (And what’s

your suggestion for people in this We also tried to learn from our NZSM: The things you’ve attempted position?) successes as well. If a certain type are probably 100 times more difficult of company, or a certain type of than the challenges most of us face KB: I wouldn’t worry too much at all approach worked then we would in day to day life – how do you keep about setting goals that you don’t change our pitch to do more of going when you feel like giving up? know how you are going to achieve. that. For example, privately owned There is certainly a magic that companies tended to be more KB: When you are out in a rowboat comes about from setting a goal, it is supportive than publicly listed ones in the middle of an ocean, with a pair amazing the resources that suddenly and so we focused more on them. of oars in your hands, it is actually appear to help you achieve them not that difficult to row. It isn’t like once you focused on what you are NZSM: Which was the harder you’ve got sky TV or anything. What trying to do. There is nothing wrong achievement – rowing across the am trying to say is that the difficulty with making a subgoal to figure out Atlantic ocean or hauling a sledge that you mention, a lot of that comes how you going to do it, but you do 1200km’s to the South Pole? (And down to having other options and need to make that goal in the first why?) the angst that comes with that. When place. you don’t have any options life is a

KB: The South Pole was much lot simpler.

I didn’t know much about being in harder. The Atlantic doesn’t mind you I find it hard to get up at 6am and go the ocean, or snow craft skills, but I passing by but the Antarctic wants to the gym, because I have so many knew that there were people who I you dead. other choices. It’s not that hard (not could ask who would help me. So exactly easy either!) to get up and my advice would definitely be to set There is no relaxing in Antarctica, do your rowing shift when you don’t a goal that really excites you, make you are either moving or you are have any choice. sure that you get excited about it freezing. There is always a sense

every day, for example by making it of urgency, because you are always The other thing that I take away from your screensaver, and then making running out of time and food. Also my experiences is that it is amazing sure that you do something towards how much you can accomplish if you that goal every day. just do a little bit every day. I never thought my book was ever going to NZSM: I’m sure many people have be finished, but I just wrote a couple accused you of being crazy over the of hours every day and forgot about years – do you ever making progress. A few months later think they might be it is complete. I heard a quote the right? other day “We overestimate what we can do in a week and underestimate KB: How should I what we can do any year” and I think know? I’m just a that is very true. penguin!

Kevin’s new book about rowing the Atlantic “The Oarsome Adventures of A Fat Boy Rower” is available in bookstores now or from his website www.kevinbiggar.co.nz.

NZSM / AUGust 20th 2008 /

Managing

Relationships Demystifying Customer Relationship Management

By Jim Lindsay

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usinesses cannot survive and thrive without clients and customers.

Customer Relationship Management, CRM, may be a jargon term, but managing positive interactions with your clients is one of the most important and profitable things you can do.

Relationships and business CRM stands for Customer Relationship Management. It is a business term to describe the how organisations manage their relationships with customers or clients.

The goal of CRM is to create a positive relationship that encourages people to keep using the goods and services of the business. The key word is relationship.

Clients will continue to use a particular business or service for a number of reasons. Cost, convenience, quality are all important factors, but often people make an emotional choice based on how they feel about a business.

If they feel as if they have a positive relationship then they will be loyal to that business.

Why have CRM? Most businesses have competitors who offer similar core services. There are very few businesses that have truly unique selling points.

Two important questions to ask yourself are: What makes my business different?

Why should people come to my business?

The one thing that can make a real difference is the experience your customers have.

A relationship plan focuses on creating a positive experience.

Businesses who make a concerted effort to create good relationships with their clients can reap real benefits.

A good CRM is generally regarded as a gold standard requirement for any successful business. A good CRM system has a direct link to profitability.

The value of existing clients versus new clients It is five to seven times harder and, more importantly, expensive to attract a new customer than it is to retain an existing client. To attract new clients you need to advertise your services. You need to “sell” your expertise to them and that involves using expensive media and marketing methods. You have to change people’s behaviour and that takes real work.

Existing clients already know you, know where you are and how to use your services. There is a low barrier for them to cross to in terms of anxiety, of not knowing what, or where to go. They have already invested in your business and will naturally want to stay with you. If you create a positive experience every time they interact with your business then they will want to form a lasting relationship.

To attract new clients you need to advertise your services. You need to “sell” your expertise to them and that involves using expensive media and marketing methods. You have to change people’s behaviour and that takes real work The advantages of having happy existing clients are: • • • • •

They feel comfortable using your services They will recommend your services to colleagues, friends and family for free Administrative costs are reduced – core data inputing done only once They will be highly likely to reuse your services They will provide strong indications of future trade and enable you to plan for the future.

Creating CRM “The customer is always right” used to sum up the perceived wisdom of looking after your customers or clients.

the interest and needs of their clients at the forefront of their minds and practices. You can only get away with not looking after your customers well if they can’t go anywhere else and if they can’t stop coming.

In the real world everyone has to work on improving services and retaining clients.

The first steps to revitalising or creating CRM The very first thing is to imagine what it would be like for a client or patient to approach and interact with your business.

It is useful to go through a checklist to discover what you are actually doing.

• • • • • • • •

What are your existing systems?

Do you have a script that everyone follows?

Do you remind clients of appointments?

Do you know the percentage of clients who are motivated by this reminder?

How easy is it to leave a message after hours?

How do you follow up on messages?

How busy are your phones?

How long are people on hold?

The second step is to ask existing clients what they think and feel about the service they are receiving. Existing clients provide you with an interested and motivated research pool. You can ask your clients about how you can improve your services. Are there some simple fixes?

Engaging with your clients in this way also shows that you care about what they think and what their experiences are. You are already engaging in a positive relationship with them.

CRM and costs There is not one-size fits all. A technological solution can be as complicated as having an interactive and automated voice management system for multiple calls.

A non-technological can be as straightforward as writing a communications plan.

Luckily things have moved on, and everyone knows that sometimes customers are not always right, but customers are extremely important.

Depending on the size of your business dedicated software can be designed or bought off the shelf. Many

Successful companies and organisations always have

businesses do not fully utilise their existing data bases.

Before engaging on an expensive CRM upgrade, look at NZSM / AUGust 20th 2008 /

how you are managing your existing technology.

Where to next?

• • •

The most important thing is to start with what you have got and answering these three key questions.

hat information does your database already have?

W What can your software do for you?

Are you and your staff fully trained in the existing package?

CRM and common mistakes The most common mistake businesses make with CRM is to rely solely on technology.

There is a tendency for businesses to invest in complicated software and hardware solutions. A lot of capital can be spent on very sophisticated tools to track client interactions and manage communication channels but miss the essential business of understanding what your clients actually need and want.

There are some very clever software packages that can track, remind and interact with a business’s database.

They can link telephone, email and texts into a cohesive whole, but fail to actually promote a positive relationship.

Often the system is too complicated for staff to work and initially slows staff down so they revert back to old or jerry-rigged systems.

1. What are you doing well now?

2. What can you easily do to improve?

3. What would your customers or clients like – have you asked them?

Creating good relationships, and ensuring they are well managed, is one of the most satisfying and profitable things you can do for your business.

The benefits include: • Increased profit • Reduced marketing expenses • More reliable turnover predications • Happier work environment • Fewer complaints.

Jim runs Lindsay Consulting – Leading Your Communications. He provides advice on CRM issues to government departments and commercial businesses. You can visit his website at www.lindsayconsulting.co.nz.

Staff training in any new system should be fully budgeted for in terms of time and money. The real danger of technology is relying solely on it, rather than having good basic communication practices in place.

NZSM / AUGust 20th 2008 / 10

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Effective Listening [ Y

How to differentiate Yourself from the competition before you even open your mouth

By Julia Sherwood

our client buys solutions from you. But they can probably buy those from many sources; they also buy good feelings and you can differentiate yourself by understanding this.

One way to increase the good feelings clients get from dealing with you is by being a really good listener, so here’s some do’s and don’ts of good listening:

The Don’ts: - DON’T ‘jump in’: The fastest way to stop a person from talking, especially about a challenging or confidential topic, is to jump in with your own comments.

- DON’T confuse understanding with agreement: Understanding what someone is saying doesn’t mean that you agree with them.

Whether you agree is not the issue in the listening process, so when you disagree you clamp down their discussion.

- DON’T confuse listening with discussing: Listening is a one-way process; it involves hearing and understanding a message that another person is conveying. To listen effectively your customer needs your full attention, rather than seeing that you are trying to think of a response that suits you.

- DON’T indulge the need to correct errors: When people are expressing strong feelings, they

often exaggerate or overstate the fact - sometimes in anger and with accusations. As we listen, we need to concentrate on hearing the message, rather than on correcting the facts. Some people believe that all they need to do is get the other person to understand the facts. But when strong emotions are involved, the facts are often not the issue. Being too eager to correct errors and clarify facts may interfere with understanding.

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The Do’s: comprehend, you need to listen and observe.

- DO show genuine concern: When we are discussing trivial or general topics - like the weather or sports - it’s not so important to show a great deal of concern. But as topics get more involved, and confidences are revealed, a genuine caring attitude becomes more important. Few people will share their thoughts or emotions unless they feel that the listener cares about their concerns.

- DO comment occasionally: Give brief summary statements once in a while as you listen. This assures the person that you’re hearing and comprehending their message and allows them to correct misperceptions.

- DO read non-verbal messages: Most of the messages we convey to others are communicated by facial expression, body language, voice inflections, and other non-verbal means. To

- DO listen for feelings: Often the context, not the words, conveys the real way a client is feeling. People often express powerful emotions indirectly or imprecisely. The context of the discussion often conveys feelings and emotion beyond the meaning of the words. For example, your client may say “The results were not what I was expecting” which could reveal any number of emotions behind the words which you need to explore.

- DO set aside your own emotional reaction: Sometimes, what a person says to you will have an emotional impact on you. To listen successfully, you must set aside your own reactions and concentrate on comprehending their message. Listening is basic to all relationships. The better listening skills we have, the better equipped we are to develop relationships with clients where communication is effective.

The most motivating thing one person can do for another is to listen.

Julia Sherwood is the Director of The Sales Training Company.

You can visit her website at www.salestrainingcompany.co.nz

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WED 20 AUG

NZSM CALENDAR SAT 23 AUG

MON 25 AUG Customer Service David Forman Christchurch Key Account Management David Forman Christchurch

SUN 24 AUG FRI 29 AUG

SAT 30 AUG

Hit The Ground Running Seminar Top Achievers Sales Training Auckland Advanced Selling Skills University of Auckland Auckland Mental Toughnrss for Sales Professionals University of Auckland Auckland Sales Development David Forman Auckland

TUE 26 AUG Customer Service David Forman Christchurch Key Account Management David Forman Christchurch Sales Basics Geewiz Wellington

MON 1 SEPT

THU 21 AUG Funamentals of Selling Workshop Top Achievers Sales Training Auckland Sales Development David Forman Auckland Sales Skills for Representatives Pro-Formance Driven Auckland

WED 27 AUG Serious Selling Geewiz Wellington FMCG Key Account Management Excellence Pro-Formance Driven Auckland

TUE 2 SEPT

FRI 22 AUG Hit The Ground Running Seminar Top Achievers Sales Training Auckland Sales Planning David Forman Auckland Sales Skills for Representatives Pro-Formance Driven Auckland

THU 28 AUG Sales Skills Level 1 EMA Northern Manukau Hit The Ground Running Seminar Top Achievers Sales Training Auckland FMCG Key Account Management Excellence Pro-Formance Driven Auckland

WED 3 SEPT

Key Account Management Pro-Formance Driven Auckland

Key Account Management Pro-Formance Driven Auckland

SAT 6 SEPT

MON 8 SEPT

TUE 9 SEPT

Sales Development David Forman Auckland

Sales Development David Forman Auckland

SUN 31 AUG THU 4 SEPT Effective Proposal Writing David Forman Auckland

FRI 5 SEPT Effective Proposal Writing David Forman Auckland

Sales Development David Forman Dunedin Sales Attack (Healthcare only) Pro-Formance Driven Auckland

SUN 7 SEPT WED 10 SEPT Sales Development David Forman Auckland Sales Development David Forman Dunedin

TUE 16 SEPT Customer Service Skills NZIM Northern Taupo Key Account Management David Forman Wellington Sales Development David Forman Wellington Selling In The New Economy Rev Sales Network Auckland Sales Basics Geewiz Christchurch

THU 11 SEPT Consultative Sales Skills NZIM Northern Auckland Sales Development David Forman Auckland Sales Development David Forman Dunedin

WED 17 SEPT Basic Sales Skills NZIM Northern Auckland Sales Development David Forman Wellington Serious Selling Geewiz Christchurch

FRI 12 SEPT

SAT 13 SEPT

Consultative Sales Skills NZIM Northern Auckland Sales Development David Forman Dunedin

SUN 14 SEPT THU 18 SEPT

FRI 19 SEPT

MON 15 SEPT Customer Service Skills NZIM Northern Taupo Key Account Management David Forman Wellington Sales Development David Forman Wellington Creating a WOW in Your Customer Service Pro-Formance Driven Auckland

SAT 20 SEPT

Sales Development David Forman Wellington Motivation & Attitude Geewiz Christchurch

SUN 21 SEPT NZSM / AUGust 20th 2008 / 14

BOOK REVIEW

Good To

Great

By Jim Collins

W

hat about the companies that are not born with great DNA? How can good companies, mediocre companies, even bad companies

achieve enduring greatness?

The Study For years, this question preyed on the mind of Jim Collins. Are there companies that defy gravity and convert long-term mediocrity or worse into longterm superiority? And if so, what are the universal distinguishing characteristics that cause a company to go from good to great?

The Standards Using tough benchmarks, Collins and his research team identified a set of elite companies that made the leap to great results and sustained those results for at least fifteen years.

Over five years, the team analyzed the histories of all twenty-eight companies in the study. After sifting through mountains of data and thousands of pages of interviews, Collins and his crew discovered the key determinants of greatness -- why some companies make the leap and others don’t.

management strategy and practice.

The findings include:

The Findings

“Some of the key concepts discerned in the study,” comments Jim Collins, “fly in the face of our modern business culture and will, quite frankly, upset some people.”

The findings of the Good to Great study will surprise many readers and shed light on virtually every area of

Perhaps, but who can afford to ignore these findings? $33.12 from www.fishpond.co.nz

NZSM / AUGust 20th 2008 / 15

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 NZSM / AUGust 20th 2008 / 16

“

“Hel

If you don’t have a competitive advantage, don’t compete.

Jack Welch, CEO 1981 to 2001, General Electric -

NZSM / AUGust 20th 2008 / 17