NZ Sales Manager - Issue 106

MAY | ISSUE 106

Three Key Account Principles Your Teams Need to Implement Today Page 6

NZ’S E-MAG FOR SALES LEADERS | WWW.NZSALESMANAGER.CO.NZ

From the Editor I

n this issue, Jermaine Edwards introduces three key account principles your team needs to introduce today.

In my experience as a key account manager, I found there are three overriding outcomes that need to be achieved to be successful. Firstly, defend the business you have from competitive threat. If it is a key account for you, it will sure be of close interest to your competitors.

Secondly, maintain the business you have. This means delivering on all requirements of your supply contract and making sure that your client understands and is able to measure the value you are providing.

If you do this well, then the first outcome becomes a lot easier.

Thirdly, grow the account. This means helping your client to grow within the scope of your current supply arrangement. As they grow, so will the value of your business with them. It also means finding new opportunities to work with the client, some of

which will be problems that they may not be aware of, but you have a solution to.

Defend, maintain and grow is easy as 1, 2, 3 to say, but not so easy to execute. To get started take a look at Jermaine’s three key account principles. Plus you can go in the draw to win a copy of Jermaine’s new book, ‘Key Account Hack’, together with a complementary digital guide and supporting resources.

Check it out now on page 6-7.

CONTACT/SUBSCRIBE&SHARE W E

RICHARD LIEW Managing Director

www.nzsalesmanager.co.nz

021 123 456

www.espiremedia.com richardl@espiremedia.com

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pauln@nzsalesmanager.co.nz

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

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ISSN 2230-4762 EDITOR Paul Newsom ART DIRECTOR Jodi Olsson GROUP EDITOR Richard Liew CONTENT ENQUIRIES Phone Paul on 021 784 070 or email pauln@nzsalesmanager.co.nz

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contents

MAY

THIS MONTH'S MUST READ...............................................................................................................6 THREE KEY ACCOUNT PRINCIPLES YOUR TEAMS NEED TO IMPLEMENT TODAY

FROM THE COALFACE ......................................................................................................................8 IS YOUR POLITENESS LOSING YOU CUSTOMERS?..........................................................10 THE BUSINESS OF KINDNESS.........................................................................................14

BOOK REVIEW....................................................................................................................................18

Workplace Poker by Dan Rust

QUICK FIX..........................................................................................................................................19 It’s not what you sell, it’s how you sell

TWO MINUTE TOP-UP.......................................................................................................................20 DISRUPTION - MAY AS WELL BE YOU DOING IT

EVENTS CALENDAR...........................................................................................................................22 DID YOU KNOW?................................................................................................................................23 THE CLOSE........................................................................................................................................24

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MUSTREAD

Three Key Account Principles Your Teams Need to Implement Today Words by Jermaine Edwards

I

t's very easy in Key Account or Large Account Management to focus heavily on strategy. We can be overtaken by academic research and bombarded by SWOT analysis and strategic planning that we miss an important consideration. Key Account Management is all about three areas of engagement with your customers: Relational, Strategic, and Tactical.

To have explosive sales and relationship results from your key clients you need to be congruent in all three areas. They're all just as important as the other. However, the relational and tactical engagement is what actually drives the sale forward. The strategic engagement helps you to know where you're going. No one has really tackled the implications of this in practice. Before I get to this let me explain what I mean by Relational, Strategic, and Tactical engagement.

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Relational Engagement

Your ability to connect with your clients and deepen trust and influence.

Many miss this in account management. We’re told we need to build relationships, which is critical to customer success. But what does that actually look like? How will you know things are working? What will you use to build those connections, amplify trust and deepen those relationships important to you? This is what relational engagement is about. The considerations of what your relationship needs to look like and how you get there with your client. Without a focus on this, you limit your ability to grow your influence and opportunity.

Strategic Engagement

Your ability to align yours and your customer’s goals to one or multiple mutually beneficial outcomes.

This is all the things you and your managers can spend a lot of time on. Making specific account plans, cost/ benefit analysis, SWOT analysis etc. It's also where you'll set expectations with your client on how you’ll work best together. This includes your business growth goals. It may also include plans on who you'll make what I call 'power connections'. Connections with key influencers or stakeholders that move your strategy forward.

Strategic engagement ultimately helps give you a clarity on where to go, where the potential opportunities are for present and future success with your customer.

Tactical Engagement

Your ability to deliver on the right things to win consistently.

This is the area that Key Account Managers probably spend the least amount of time thinking through. What are the daily and weekly tactical implications of every strategy or plan set with your client and internally with your business? This can include how you decide to build relationships, how you align the rest of your internal departments to support customer success or how you execute growth goal promises with your board and account management team. You may still have wins without tactical engagement but you'll have very few business transforming client successes. That's what I want for you and believe every KAM can have with their existing customers.

If you haven't considered all three areas of engagement today. Now is the time! •

 www.jermaineedwards.com

Jermaine Edwards is the CEO and Founder of the Key Account Hack System, and helps Key Account Managers and B2B professionals retain and grow their high value customers.

We have two copies of Jermaine Edwards new book, plus a digital guide and audio to give away.

Key Account Hack: 8 steps to creating massive and predictable growth from your key clients in 90 days.

To enter, email your contact details to pauln@nzsalesmanager.co.nz, with ‘Key Account Hack draw’ in the subject line. Entries close Friday 17th June 2016.

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From the Coalface

Straight talking advice from experienced New Zealand sales professionals

What are three things you always look for when hiring new salespeople?

Bill James THREE PIECE SALES www.3piecesales.com

1 Willingness and attitude.

Not a database – they would have sold to them if they could. We can add most things to the mix but the core is always going to be the readiness to try and the desire to succeed.

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Experience in products or services and customers that have a synergy with what they are going to be asked to promote now. It does not have to be the same but there should be skills that can be transferred. A fish out of water soon drowns.

3

Will they fit the existing team dynamic? It is too easy to shatter a winning formula so I would be mindful of the existing culture.

Steve Evans www.peoplecentral.co.nz

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Miles Valentine www.salessyndicate.co.nz

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The most important step in hiring is to ensure the salesperson can be a thorough and empathetic listener. By using role plays, it also shows me that they understand that every sale starts with qualification. The thing I am specifically not looking for is a sales person that thinks they have to tell to sell.

They need to be a self-starter and self-manager in terms of activities. All sales start with prospects so a salesperson needs to understand their own targets for the different stages of the Sales Cycle and the vital requirement to achieve these on a regular/weekly basis.

I also look for understanding the need for or justification to follow a sales model. They need to realise that to be a successful salesperson they need a scalable, repeatable, efficient process to making a sale which needs to be constantly updated and improved based on what is successful and what isn’t working.

Has the sales job changed since you last recruited into it? Do the competencies and KPI’s for the role still reflect the reality of the job, the marketplace, prospects and clients expectations? Until you know what it is you are looking for in a new recruit, it’s difficult to start the recruitment process.

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Involve your trusted clients and advisors in redesigning the job before you advertise it. What you and your business see as essential and desirable in candidates may not be the same as what your key clients value in establishing and maintaining effective and prosperous relationships.

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Keep in mind at all times that most salespeople make good candidates. Their sales jobs to date require them to constantly meet new people in challenging situations, so presenting a professional polished image in interviews give sales candidates less of a challenge than the general population. To make sure candidates with little substance behind the polished veneer don’t end up blagging their way onto your payroll, make sure you are either trained in effective interviewing or seek out the support of seasoned interviewers to support you, whilst not forgetting to also use ability and personality assessments to support your selection decision making. • www.nzsalesmanager.co.nz

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Is Your Politeness Losing You Customers?

Words by Stuart Sinclair

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oo many New Zealand businesses are losing a golden opportunity to attract more customers all because of a Kiwi cultural quirk.

The opportunity in question is referrals, a powerful tool for companies seeking more business. Research shows up to 70% of people looking for a new provider of goods or services will ask friends or colleagues to recommend someone.

Such recommendations carry a lot of weight; so much so, some of the sales work is already done. One US study of small businesses, for example, showed referrals were the second-best source of revenue, cited by 44% of respondents (number one was repeat business from existing customers).

However, New Zealand businesses have fallen well behind overseas companies who actively seek referrals as a key source of leads. Whenever a customer thanks you or pays a compliment, is an appropriate time to ask if they know anyone else who would benefit from what you do.

But this sales approach is something Kiwis don't do well compared with salespeople in the United States, for example, who, even if they don't get a contract, will often still ask, because it's drummed into them.

Kiwis typically find that uncomfortable. I think it's a cultural thing; they think it's a bit pushy and feel like it's almost an imposition on the customer when, in fact, it might be the total opposite.

The concept of reciprocity can come into play. If I've helped you out, most people like the chance to repay the favour. So we could actually be making things better, not worse, for our customer by asking for a referral.

Customers who might have a good word to say about how a business treated them should be valued as an influential source of referrals. Such people will often respond positively to a followup inquiry if approached in the right way. www.nzsalesmanager.co.nz

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Referrals imply trustworthiness and credibility because they are from clients or people who have direct experience with your work.

A great way to receive more referrals is to provide more yourself. If you refer people to colleagues, customers, and suppliers where you've had good experiences, there's a good chance they'll do the same to you when the opportunity arises.

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Some questions could be: Is there anyone else you think might be interested in what we offer? Would you mind if I mentioned your name when I'm talking to others about our services? Would you be happy to pass on my name to friends or colleagues with a need for what we do?

Referrals imply trustworthiness and credibility because they are from clients or people who have direct experience with your work.

A great way to receive more referrals is to provide more yourself.

If you refer people to colleagues, customers, and suppliers where you've had good experiences, there's a good chance they'll do the same to you when the opportunity arises.

Business networking gatherings are a great opportunity to do this but, again, Kiwi reserve or shyness often kicks in. A lot of people find it very uncomfortable if they don't know anyone and they don't like to come into a group and say 'Hi, I'm so and so and I'm from ...'

But if you can break past that and engage in a conversation where you show genuine interest in their business, you often hear about challenges they're facing and you might be able to suggest someone who could help. It's almost like being a business matchmaker. Then they'll often ask about you and your business and will be more inclined to refer you to someone who needs your services.

If the contact results in the name of a prospective customer, then the referral takes it from a cold call to a warm call. It's still not a hot prospect for a sale but it's a warm lead and it's taken far less money, time, and energy to reach that stage than most cold calls.

The selling power of referrals and the desire to reciprocate is why businesses put up customer testimonials on their websites or in advertisements.

The selling power of referrals and the desire to reciprocate is why businesses put up customer testimonials on their websites or in advertisements. For example, David Forman have just received an email from the national sales manager of Masport, who had a salesperson undertake a recent training programme.

The manager wrote: "I have noticed a change in his behaviour already. When we did our pre-course task, he picked a soft target and 'sold' the customer three items off a specials list to a value of approximately $1,100. On the Tuesday after the workshop, he took me to three of his toughest customers and sold five items to the value of $20,000 straight off the price list, with no hesitation and a lot of confidence.�

People make business far more complicated than it needs to be.

Selling is actually about helping people, and referrals are a great way to do that. •

 www.davidforman.co.nz

Stuart Sinclair is co-owner of David Forman and helps companies to excel, and individuals and organisations to achieve their goals through effective sales training, leadership and personal effectiveness training.

www.nzsalesmanager.co.nz

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The Business of Kindness Words by Sharon Drew Morgen

I

n the media recently I’ve been hearing the word ‘kindness’ discussed by business folks.

Kindness – not a word historically associated with corporations, those bastions of male verve – is now being equated with the bottom line. How times have changed. In the 90’s when I gave keynotes titled ‘Sales as a Spiritual Practice’ I would get asked: “Yes, but how would we make money?”

Imagine embracing the desire to be helpful and considerate, compassionate and generous as part of accepted business practice.

We all know what happens when it’s ignored. We know how workplace issues grind people down, and how infrequently those below the top tier get asked their opinions. We know we lose more good employees to treatment issues than to pay issues. We know that 70% of buying decisions are made by women.

And yet we continue assuming the bottom line is about minimising costs and maximising profit and putting rules before people.

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Without kindness, everything suffers, and in this day and age, clients, customers and staff have vehicles for their complaints.

HOW KINDNESS CAN AFFECT OUR BOTTOM LINE The costs of degrading and ignoring employees and making customers conform to our money-saving practices, the cost of treating customers merely as numbers that get crunched, cost us high turnover, a paucity of fresh ideas and new leaders, a loss of customers and reputation, and the need to hire more supervisory managers and do more 'reputation management' to handle the fallout.

I intimately know a company with a reputation for treating employees so punitively that only naïve out-of-towners apply for the many available jobs. I’m involved with a situation wherein Wheaton Movers broke a sculpture in my move and have proceeded to treat me so badly that I’m composing an article for broad distribution suggesting people moving choose a different vendor. Without kindness, everything suffers, and in this day and age, clients, customers and staff have vehicles for their complaints.

Research has shown kindness actually increases our bottom line: • When employees are asked their opinions, treated respectfully, given jobs that enable them to exhibit excellence regardless of their pay scale, they are more creative, responsible, and loyal. They adopt leadership roles, put in longer hours, and have fewer sick days.

• When we treat our clients kindly we keep them longer, hear about problems (rather than lose them to competitors), are offered new ideas to monetise, and have brand ambassadors to offer free marketing to connections who may become clients. www.nzsalesmanager.co.nz |

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Here are a few of my personal experiences of monetising kindness:

Kindness with customers:

I believe the process of listening is one of the skills that will enable us to be kind.

Not only do we need to set up client Listening Conferences and staff Listening Hours, we must hear what’s being said between the lines using a ‘kindness ear’

a. In Portland recently, I couldn’t locate my correct bus stop. I called the Transit helpline and a person answered! And he stayed on the line until I got to my destination!

I also had an issue with the local gas company causing very minor damage to my countertop.

They called, apologised, and immediately sent me a cheque Kindness with employees: for $500 for recompense (It a. In the 80’s I ran a tech support company in London with might cost $100 to fix).

48 tech folks. Annually, I gave them $2000 to take a week Takeaway: the random off to renew themselves by attending any course they wanted acts of kindness I found (photography, cooking). I also required them to take off one day a throughout Portland have month to do volunteer work. And at least four times a year I went led me to move there. to their job sites (and they were not my direct reports), took them b. After not receiving my NYTimes to lunch, and picked their brains on ways we could do better for them and for our clients. Their ideas were terrific. As a side note, for four Sundays, I made two angry calls. The first woman said I often ran into competitors at conferences who said they tried to hire my folks away yet couldn’t pry them from my grip. “What are I would need to speak with a supervisor on Monday; the second you doing to those folks?”. I was just respecting them.

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woman not only called my local delivery folks, she called back to tell me when the paper would be delivered, called again to make sure I got it, and then left me her cell number in case the problem occurred again.

Takeaway: I won’t cancel my subscription.

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Takeaway: there was no turnover in four years; the tech folks called us whenever they heard rumors of new business and I was in place by the time the vendor delivered the product. b. I hired a full time ‘make nice’ guy whose job it was to visit staff and clients on site to make sure the relationships and programming worked efficiently, nipping problems in the bud.

With no fires to fight, I had nothing to do but grow my company.

Takeaway: revenue doubled annually; I had a 42% net profit.

THE HOW OF KINDNESS: USING LISTENING SKILLS ENHANCE RELATIONSHIPS I believe the process of listening is one of the skills that will enable us to be kind. Not only do we need to set up client Listening Conferences and staff Listening Hours, we must hear what’s being said between the lines using a ‘kindness ear’. My new book ‘What? Did you really say what I think I heard?’ explains whatever we listen for determines what we hear. So rather than merely listen for problems or ways we can merely follow rules (and put rules before people) we must listen for the patterns in the problems: • Lots of staff turnover - What are we ignoring that can be resolved?

• Bottom line decreasing due to competition - What are clients telling us that we haven’t been listening for?

• Customers writing negative articles about us - What do we need to do differently to find a balance between our rules and the human element?

Through the years, with clients and staff, coachees and colleagues, I have found the biggest obstacle to authentic communication is how imperfectly we hear others, or how closely what we hear conforms to what we want to hear. Far too often we enter conversations with a bias and miss what’s being conveyed that falls outside the range of expectation. Imagine if we approach our conversations with the bias of kindness. For example: An employee is perpetually late with work assignments: is there something going on in the department, with other employees, with her workload, that is causing the problem?

Customer service folks must recognize patterns in complaints and become leaders in resolving problems rather than maintaining the status quo. I recently heard a rep say: “I’ve had lots of complaints about this. But there are no plans to fix it.”

How can we monetise kindness with staff and clients? It’s possible to make money AND be kind.

Let’s begin the conversation.•

www.didihearyou.com  www.sharondrewmorgen.com

Sharon Drew Morgen is a trainer, consultant, speaker, and inventor, and interested in integrity in all business communication. More recently, Morgen is the author of ‘What? Did you really say what I think I heard?’ in which she has coded how we can hear others without bias or misunderstanding, and why there is a gap between what’s said and what’s heard. www.nzsalesmanager.co.nz

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RESOURCECORNER

Workplace Poker Are you playing the game, or just getting played?

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career advisor explains why many talented, hard-working people often miss out on their full career potential, revealing the tells, blind spots, secrets, and unspoken rules you need to know in order to play the game to win. While many careers have been impacted by economic downturns, failed projects, downsizing, and restructuring, or just bad bosses or bad timing, we all know of colleagues who continue to rise to every tough situation.

Most assume that they have an advantage that protects them like degrees from the right schools, great mentors, influential friends, and family, or just better luck. But these hyper-successful professionals have faced setbacks, too. Instead of allowing challenges to derail their rise, they've learned how to manage them better.

In Workplace Poker, Dan Rust gives you the strategies you need to accelerate your career and prevent setbacks from stalling your progress or spiraling it downward. The trick, he reveals, is to "play the game under the game," to think more deeply and act more strategically. If you are talented, ambitious, and hardworking, but feel your career just isn't accelerating as rapidly as it should,

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or as fast as you would like it to, this book is for you. If you have been frustrated to see others (less talented, who don't work as hard as you do) achieve rapid professional progress while your career stalls out, this book is for you. If you've been annoyed by those who are successful primarily because of where they went to school, or family connections, or financial resources, this book is for you.

Rust gives you the insight and skills you need to transform yourself and adapt and survive any hurdle, to turn every adversity into advantage and every struggle into strength. •

Available from Fishpond

www.nzsalesmanager.co.nz

By Dan Rust

QUICKFIX

Shorten Those Emails Words by Kendra Lee

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eep your emails to less than 99 words, even shorter if possible. Sound crazy? Think about how much time you give emails in your inbox. Do a quick word count on your emails before you hit send. The shorter your email, the more likely your contact (prospect OR customer) will be to actually read it before making a delete decision.•

 www.klagroup.com www.nzsalesmanager.co.nz

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TWOMINUTETOPUP

Disruption May As Well Be You Doing It Words by Linda Coles

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t’s another new financial year and you’ve probably already thought about what you would like to achieve over the next twelve months, and maybe even beyond. It may be a percentage increase in sales, or a percentage drop in costs, or even an increase in headcount.

Whatever it is you are going to focus on, think about this: 020 | www.nzsalesmanager.co.nz

What would happen if your industry faced the same disruption that some industries have faced in recent years? How would you respond to stay in the game?

• The world’s most valuable retailer – Alibaba –­ holds no inventory.

• Airbnb is the world’s largest accommodation provider, yet owns no rooms.

• The world’s largest taxi company doesn’t own a single taxi – that’s Uber.

• Our most popular media owner doesn’t create a single bit of content. You guessed it: Facebook.

It’s great you’ve planned for the coming months, but think further beyond that. Plan for something truly remarkable, something truly revolutionary, that you can dominate your space with. Could it be you that is the disrupter? If someone is going to do it why can’t it be you?

Let me give you an example. Say you are a training-based company with trainers visiting your clients’ premises to train their teams on a given subject. Planning ahead, you’ve probably realised that with more and more training providers using video, your physical training programs will probably go digital too.

It’s cheaper for your client, is convenient to use and, with updated content being added continually, it’s always up to date.

Sell that as a monthly subscription-based model and suddenly you are starting to revolutionise and disrupt a training industry.

But you are leading the way.

Add into that all the other things you can now do with the content you have created, such as sharing some of it on digital platforms. There are also associated spinoff videos you can add to your library such as expert interviews, quick tips, and FAQs. All the while you are adding value to your client, and you’re using the new process to keep in touch regularly, so it’s a win all round.

It’s just another way of looking at what you do and making it more remarkable. If taxi companies around the world had created their version of Uber before Uber created theirs, their industry might not be in quite the same place as it is today.

If someone is going to disrupt, it may as well be you.•

Plan for something truly remarkable, something truly revolutionary, that you can dominate your space with. Could it be you that is the disrupter? If someone is going to do it why can’t it be you?

 www.bluebanana.co.nz

Linda Coles is a conference speaker, author and trainer on building relationships, who helps teams grow business connections and network online effectively. www.nzsalesmanager.co.nz

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EVENTSCALENDAR

DATE

NAME

PLACE

COMPANY

10 June

Effective Prospecting

Wellington

PD Training

20 June

Sales Training

Christchurch

PD Training

20 June

Overcoming Objections

Auckland

PD Training

20 June

Sales Performer

Auckland

David Forman

22 June

Advanced Serious Selling

Auckland

Geewiz

22 June

Sales Managers Boot Camp

Auckland

The Marketing Company

24 June

Sales Management

Christchurch

Geewiz

27 June

Building and Leading Teams

Wellington

IMNZ

28 June

Zero Dollar Personal Marketing

Auckland

Three Piece Sales

28-30 June

Advanced Negotiation Skills

Auckland

Scotwork

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www.nzsalesmanager.co.nz

DIDYOUKNOW

Common Keyboard Shortcuts You Should Know and Love

T

he following shortcuts will save you a lot of time and stress while sitting at the keyboard. This is a go to table to help you memorise these important shortcuts.

Open CONTROL + O Undo CONTROL + Z Save CONTROL + S Print CONTROL + P Close the active window

ALT + F4

Bold CONTROL + B Italic CONTROL + I Underline

CONTROL + U

Align right

CONTROL + R

Align center

CONTROL + E

Align left

CONTROL + L

Copy CONTROL + C Cut CONTROL + X Paste CONTROL + V Open the clipboard

CONTROL + C + C

Select whole document

CONTROL + A

Spell checker

F7 •

 www.successis.co.nz Debbie Mayo-Smith’s blog www.nzsalesmanager.co.nz

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THECLOSE

“Listen more than you talk.

Nobody learned anything by hearing themselves speak.”

- Sir Richard Branson

Subscribe at www.nzsalesmanager.co.nz

IT’S FREE!

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