NZ Sales Manager e-Magazine Issue 69

MARCH 2013 Issue 69

PROFESSIONALISING SALES Putting the U in your USP Measure what gets results Focus your prospecting NZ’s e-mag for sales leaders 1 / www.nzsalesmanager.co.nz

CONTENTS 6

THIS WEEK'S MUST READ

Professionalising Sales The UK National Sales Agenda

11

Putting the U in your USP How to develop your unique selling point

14

Measure what gets results Actions not dollars

16

Resource corner To Sell is Human The surprising truth about persuading, convincing and influencing others.

18

Quick Fix Focus your prospecting It’s not what you sell, it’s how you sell

www.nzsalesmanager.co.nz / 2

20

CALENDAR

21

THE CLOSE

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ABOUT / Short and sharp, New Zealand

FROM THE EDITOR

Sales Manager is a free e-magazine delivering thought provoking and enlightening articles, and industry news and information to forwardthinking sales managers, business owners and sales professionals.

EDITOR / Paul Newsom

You may be wondering why we are

first suite of sales qualifications were

leading with an article about the

formally introduced.

state of selling in the UK. I have long held the belief that the purpose of this magazine is to help the sales and sales managers out there, but also to help raise the importance of selling in business and support the evolution of selling into a profession.

Although the article addresses the issues facing the UK, the issues described here are global and very relevant to New Zealand.

With respect to national standards in sales, and sales qualifications, we are at least seven years behind the UK. Hopefully in New Zealand, 2013 will be the year that we can say the

ART DIRECTOR / Jodi Olsson GRAPHIC DESIGNER / Sevim Dogru GROUP EDITOR / Trudi Caffell

A stand out comment for me from the article is from Beth Rogers, who says refers to the performance of Finland, where the “government encourages

sales

education

because new companies in their small local market have to go global very quickly.”

CONTENT ENQUIRIES / Phone Paul on 04 586 4733 or email pauln@nzsalesmanager.co.nz ADVERTISING ENQUIRIES / Phone Richard on 09 522 7257 or email richardl@espiremedia.com ADDRESS / NZ Sales Manager, C/- Espire Media, PO Box 99758, Newmarket,

Replace Finland with New Zealand –

Auckland 1151, NZ

we have the same challenge. What

WEBSITE / nzsalesmanager.co.nz

we need now is the government visibly encouraging sales education in the way the UK are setting out to do.

ISSN 2230-4762

Happy Selling Paul

NZ Sales Manager would like to acknowledge the support of our major partners

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MUST READ

Professionalising Sales The UK National Sales Agenda

A

new year is always a good time to take

in the past few years that selling and commercial

stock, but 2013 is a particularly good time

skills and methods are receiving more attention.

to review the position of sales in the British

(and world) economies and to consider what’s on the agenda. That’s because there remains a pressing

How we move forward, building on this momentum, could be critical to competitiveness and the target

need to optimise business skills in the continuing

we all want — recognition of the professionalism

challenging climate, and there are encouraging signs

of salespeople.

www.nzsalesmanager.co.nz / 6

MUST READ

At first glance, the signs are

the utilities and mobile phone

salesperson performance rating

not that great. Figures from

companies, and it seems that

books, consultancies and training

various sources show that there

no sooner than one approach

firms. But as Turner points out,

are 25% fewer high performing

is curtailed, another appears,

what is required is the kind of

solution salespeople in the UK

whack-a-mole like, such as the

research base that colleagues

than globally, that about 30% of

current spate of automated

in marketing have developed,

salespeople are in roles they are

calls about payment protection

and this should be underpinned

not suited for, and that students

insurance and the dreaded ones

by a partnership between

rank sales as lowest for status, job

about checking your PC for

government, academia, industry

security and satisfaction.

viruses, although most of those

and institutes such as the ISMM.

Ben Turner, sales director at

come from abroad.

This is where there is some

the ISMM, notes that buyers in

B2B selling as well is by no means

encouraging progress, as the UK

particular have a poor perception

immune to poor and sometimes

now does at least have a set of

of salespeople’s credibility, and

unethical practices, such as

National Occupational Standards

about half would not be proud

massive fines in the US for drugs

for sales, developed in 2006 by

to sit on the other side of the

companies misrepresenting

the National Sales Board.

table and be a salesperson. “But

their offerings in the healthcare

research by consultancy DDI,

In turn, in England and Northern

supply chain.

Ireland, Ofqual is the agency that

What the ISMM has now started

then regulates awarding bodies

is a campaign to put selling

for qualifications, which includes

on an equal footing with other

the ISMM — and on Ofqual’s

professions to address these

website there are no fewer than

Generally, salespeople are mostly

shortcomings, building on some

67 ISMM sales qualifications

ranked as only fair to good at

already solid foundations. There

from levels 1 to 6 that conform

what they do — very few are

is plenty of material that gives

to the Qualifications and Credit

graded as excellent — and it’s

strong leads on what ‘good’ looks

Framework (QCF), and which

a middle-ranking performance

like in selling, such as the annual

are based on the National

that does not appear to be

surveys from CSO Insights and

Occupational Standards and

improving, at least as judged by a

Miller Heiman, which give many

in its global sales perceptions report, shows that this is not just a problem in the UK, but a global one,” he says.

majority of buyers.

and detailed metrics on what top

available to training organisations approved by the ISMM to deliver.

What hasn’t helped in the UK is

performing sales organisations

If that sounds complicated, it

the string of mis-selling scandals

tend to do better, and any

is — and there just isn’t enough

and high pressure tactics of

number of sales methods and

promotion by government of the

New Zealand’s leading sales and marketing training company.

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MUST READ

this approach to sales learning, which the ISMM is promoting.

“It’s not about a particular sales methodology but about salespeople understanding that there is a range of approaches that can be applied to their profession,” says Turner, who adds that the current trend to focus on value applies as much to what the salesperson brings to the table as professionals as to their solutions. It’s a view reinforced by work by McKinsey, which we reported in 2010, that buyers most value the ‘sales experience’ they encounter, and respond best to fewer, meaningful and highly knowledgeable interactions.

More recently, we ran an in-depth article by Nick importance to ‘UK plc’ of the benefits that properly

Lee, professor of marketing and organisational

accredited and researched training frameworks

research at Aston Business School, and Ian Luxford

can bring to the workforce. That said, as Turner

of Grassroots, on research on the qualities that

points out, the situation for sales is far better than

people associate with salespeople.

a few years ago — with the interest now in sales

Given that there are hundreds of thousands

academies, in particular, there are now several

of sales and sales-related personnel in the UK,

thousand sales and sales-related personnel taking

there is huge scope to enlarge the reach of sales

these qualifications, rather than hundreds, in major

professionalisation, building on the standards

companies such as AXA, BT, SIG and Virgin, and

and qualifications, although these are by no

there is also strong interest from overseas for

means the last word in what works, and there is a

www.nzsalesmanager.co.nz / 8

MUST READ

major opportunity for the UK

in school and higher education

schools that have adopted ISMM

to become a leader in more

— the 14–19 diplomas started

level 1 and 2 sales qualifications

research. What is needed? Says

by the last government now

as part of their business

Turner: “We asked Nick Lee, who

have lukewarm support, while

studies teaching.

has strong sales interests, what

the interests of industry are split

Beth Rogers, head of marketing

it would take to position the

between the Department for

and sales at Portsmouth Business

UK in selling, as marketing did

Education and the Department

School, who was on the National

successfully several decades ago.

for Business, Innovation and

Sales Board, comments: “I fear

About £40 million was his answer.

Skills. On business studies

that other countries are

“That may seem a large sum but not when set against possibly a million customer-facing staff generating more than a trillion

courses, such as A levels, selling is rarely mentioned as part of the curriculum, despite the government’s own surveys,

going to overtake the UK on sales skills. It will not come as a surprise to anyone that sales education is currently booming

pounds worth of business year

by yet another body, the UK

in the US, because business

— but presently the government

Commission for Employment

sponsors of higher education

ranks selling lower than

and Skills, showing that sales

want sales-ready graduates.

hairdressing in its priorities.”

and customer service are among

What there appears to be — and which is a common government failing — is a lack of ‘joined-up’ thinking, such that initiatives started a few years ago tail off, and different departments have a fragmented piece of the action, such as it is. A good example is the position of business studies

the skills most lacking in the workforce and are also among the jobs with high vacancy rates.

There are more young people taking up sales apprenticeships now, but relatively few compared with other subjects such as business administration.

A few bright spots are in some

“What may be more of a wake-up call for the UK is the performance of Finland, where the government encourages sales education because new companies in their small local market have to go global very quickly. In a developed economy you don’t get to grow fast internationally by being cheaper at anything,

9 / www.nzsalesmanager.co.nz

MUST READ

you get it by knowing how to

government quite rightly pays

jobs and careers — “There just

grow your revenue by being

attention to legislating against

aren’t many jobs for forensic

smarter and better at creating

bad selling, but policymakers

scientist for kids who’ve been

value for customers with very

should consider how important

watching CSI Miami — but about

different needs.”

it is to encourage good selling in

10% of jobs in the UK are in

its place.”

sales.” He agrees that selling

report for sales commissioned by

Rogers was one of a group of

has been largely written out of

the government in 2008 revealed

sales activists invited to a House

business studies courses, and it is

huge gaps in the sales skills

of Commons roundtable recently

a particular problem for his remit

needed by employers, and post-

by Toby Perkins, shadow minister

— small businesses — which tend

for small businesses, and the

to lack the resources to train

ISMM, to discuss sales skills

their own people and must rely

and qualifications as part of the

on the market. More joined-up

campaign. Perkins is a rare MP

work between education and

Adds Rogers: “The labour market

recession, in 2012, the latest report for sales shows the same

— he has a sales background —

“It’s not about a particular sales methodology but about salespeople understanding that there is a range of approaches that can be applied to their profession.”

and is firmly behind the push for raising the bar for the profession.

business, helped by government, is certainly needed, says Perkins, noting that apprenticeships

“I went into telephone sales

are not being pushed enough,

straight from school, was in IT

and ideas such as more

sales for seven years and in sales

businesspeople on school

and sales management roles in

governing bodies are among

the recruitment industry,” says Perkins, who adds that he was

those he is investigating.

initially placed with an employer

Overall, Perkins sees the

by a specialist sales training firm,

application of standards as

as companies such as Pareto Law

charting an ethical framework

do today. He has also run his own

for a very large range of

company, Club Rugby, a rugby

professionals, from junior level

kit distributor.

out of school, as he was, up to

Perkins sees a big gap in what

those earning a lot at the top of

he terms ‘enterprise skills’ at

their careers in sales and sales

all levels, and would like to see

management. “There should be

much more emphasis on such

a supportive role for government

skills in education and work

and after the initial roundtable I

experience. He points out that

will be learning more about good

publicity is needed to ensure they

students often have completely

practice and what the landscape

are leveraged by UK plc. The

unrealistic expectations about

looks like around the country.”

problem persists.

We have worldclass occupational standards for sales, but more

This article provided by ISMM, and first appeared in the January issue of ‘Winning Edge’.

To find our more visit www.ismm.co.uk

www.nzsalesmanager.co.nz / 10

Putting the U in your USP How to develop your unique selling point

T

By Heather Grace Smith

he phrase Unique Selling Proposition (USP)

BUT IS HIS CONCEPT STILL RELEVANT TODAY?

was coined in the 1940’s by Rosser Reeves of

We can all get put off by jargon, but whatever

Ted Bates and Company. Reeves was a smart

man for the times, he also came up with the slogan

you call it, a USP is still the single most important

“melt in your mouth and not in your hands” amongst

marketing element in your repertoire. Don’t let the

other hugely successful advertising campaigns.

old school language put you off. It’s very much 11 / www.nzsalesmanager.co.nz

the right school of thought, as

‘great customer service’ is not a

can turn their mistakes on their

relevant now as then, and it will

point of difference – everyone

head and reframe it as a positive

be long into the future.

claims that. So you need to

proposition for your customers.

Reeves broke his concept

find out what is unique about

of USP down into three

your business and that means

separate components:

researching your competition to

•

•

The proposition must be

step – understand your customers’ and the problems they’re having or trying to solve.

unique (not shared by the

Difference isn’t enough though.

If you can solve their problem,

competition).

To have a true USP, that point

you’ll make a connection.

The proposition must be strong enough to have mass appeal.

•

discover what you do differently.

That brings me to the second

The proposition must clearly specifically explain the benefit to the purchaser.

of difference has to offer real benefits to your customer. What’s changed between the 1940’s and now is that many companies have more than one product or service – so you need to be thinking about the USPs for each

IS IT REALLY THAT EASY?

of them. Aiming for a one-size

Well, it’s not easy for most people

fits all approach from the get-go

to define their USP; it takes a bit

tends to water down your USP.

of work. But a good USP makes

It’s better to start with the detail.

it really easy for a customer to

SO HOW DO YOU COME UP

recognise and resonate with your

WITH A GOOD USP?

business’ offering so it’s well worth the effort you put in.

Thirdly, you need to believe in yourself, give your customer evidence and assurance; guarantee your promises.

Guarantees help you achieve mass appeal – look at Bunnings for example.

Finally, you have to understand your target markets and get the details right for them. If you’re selling an anti-aging as well as an anti-acne skin care regime, you can’t expect your different

There are four key steps that will

audiences to buy from one

help. Firstly, understand what

single message. Put time into

WHAT MAKES A GOOD USP

your competition does badly;

developing the USP for every part

IN 2013?

never bag the competition,

of your market. From there you’ll

A good place to start is your

but do get to know where you

find the overarching truth for your

point of difference. For example,

perform better. That way, you

proposition as a whole.

www.nzsalesmanager.co.nz / 12

It can seem daunting to come up with a USP but talk

team being able to explain it readily and easily. If

to the people who know; your team, your clients,

you need help to achieve that, get the help you

and importantly get external advice. Turn features

need because when you get it right, it’s meaningful

into benefits and check your assumptions –

to the right people and it works. By the way, don’t

IS THAT BENEFIT REALLY RELEVANT TO YOUR

forget to update your USP from time to time as your

TARGET AUDIENCE? DO THEY REALLY CARE?

business evolves, it important you stay relevant to

A single competitive advantage does not always

your target market.

mean a strong USP but combining them can. So if

At The Marketing Company we say ‘make more

you look at your top four competitors, chances are

money in your business’ because our courses are

you’ll find a number of elements that you do better

designed to give you the best value in the least

than each one of them. That’s where you’ll find your

time, we help you with access to funding for our

USP, by combining the special things you do so that

training while we deliver measurably increased

no other competitor can match it all.

expertise, we offer a guarantee on your spend with

Once you have the detail, your USP needs to be

us and we allow you to select the courses you most

succinct and visible at every point of contact; from

require. Other companies offer some of that, but we

websites and packaging, to every member of your

offer it all – that’s what gives us our USP.

Find your USP DISCOVER

What do you do better than your competition? Where do they fall down? Don’t make the story about them, turn it on its head and make the story about what you do well.

COMMUNICATE

Understand your customers. What problems are they trying to solve?

Find a solution and check it works for them. Then you can make a connection.

PROMISE

Believe in your promises and assure your clients. Give them a standard that you won’t fail to meet. Be accountable and be up front.

TAILOR

Understand your proposition’s appeal for each target market and tailor your approach, messages and solutions for their real needs.

Your overarching USP will come from your groundwork with the detail.

For more information or guidance, contact Heather Grace Smith at The Marketing Company. To find out more visit www.themarketingcompany.co.nz

13 / www.nzsalesmanager.co.nz

2 Minute top-up

Measure what gets results Actions not dollars

By Richard Gee

M

any sales managers and business owners

week, you should be measuring activity. For

get it wrong when they measure sales

example measure the face to face calls per day

force results.

over a week, then measure the effectiveness of the

They measure money earned, instead of actions that

calls by how many became sales or quotes. This

need to be taken to achieve the revenue budgets.

demonstrates that the sales person is using the

Rather than only measuring sales in dollars per

employable skills they have.

www.nzsalesmanager.co.nz / 14

A good measureable target is four face to face calls per day for five days. Twenty calls in the week will generate quotes and follows ups into business. Similarly customer service teams might make 10 calls per hour to targeted customers and achieve measurable results of appointments made for the sales representatives. Measure the Support Maybe numbers of actions, and you will get your this sales team by the dollars to happen. measure will

sharing the numbers

show they need training to get better results, but it really

at sales meetings and get them to share their success and wins

goes to the heart of the performance. Poor sales

from their measured activity, and encourage each

are always the result of poor face to face activity. If

other to practise their sales skills more often.

you don’t get in front of the customer and identify problems to solve, then you don’t get sales.

Evidence or excuses of emails and phone calls being done are things that should not be measured, they are tools of the job, just like the presentation tools of the laptop or i-pad.

A good measureable target is four face to face calls per day for five days. Twenty calls in the week will generate quotes and follows ups into business.

Similarly customer service teams might make 10 calls per hour to targeted customers and achieve measurable results of appointments made for the sales representatives. Measure the numbers of actions, and you will get the dollars to happen.

It is a New Zealand statistic that sales reps only spend 2.5 hours per day in front of customers selling to them. Ask yourself what they are spending the rest of the time doing. Is it driving or admin, or is it time wasting stuff. You employed the sales rep to sell, not spend 75 per cent of their time doing other stuff that does not earn revenue.

Measuring the correct actions makes it easier to manage the performance and there will be no dispute of actions. It is black and white - calls done, quotes done, follow up done, sales made.

Focus your sales team on what really matters and what will be measured, not on uncontrollable stuff.

It really does work.

Richard Gee is the author of NZ Sales Management – a practical approach, Practical Marketing in NZ, and other books, plus is an International Speaker and sales trainer. To find out more visit www.geewiz.co.nz

15 / www.nzsalesmanager.co.nz

Resource CorneR

To Sell is Human

The surprising truth about persuading, convincing and influencing others

Authors: Daniel Pink Publisher: Canongate Books Ltd. Price: $20.99 from www.fishpond.co.nz

W

e’re all in Sales now. Each day millions

their partners on mowing the lawn or putting the cat

of people earn their keep by convincing

out. We sell our bosses on giving us more money

someone else to make a purchase.

and more time off. And in astonishing numbers we

They sell planes to airlines, oil shares to sheiks,

go online to sell ourselves on Facebook, Twitter and

cars to drivers. They sell consulting agreements,

in Match.com profiles. In this new book from the

magazine subscriptions, time-shares, double glazing,

bestselling author of Drive, Dan Pink explores the

broadband, fitted kitchens, car insurance, life

ways in which we can all improve our sales skills,

insurance, pet insurance! Some work in fancy offices

in every area of our lives and identifies the three

with glorious views, others in dreary cubicles, but

personal qualities and four essential skills necessary

most look exactly like you. In fact, each and every

to move people. Relying on science rather than

one of us spends time trying to persuade others to

platitudes and analysis instead of exhortation, Dan

part with resources - money, time, attention - though

builds on his own sales experience and on the profiles

most of the time we don’t realise we’re doing it.

of some of the world’s best salespeople - and makes

Parents sell their kids on going to bed. Spouses sell

us look again at our own sales skills.

www.nzsalesmanager.co.nz / 16

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QUICK FIX

it’s not what you sell, it’s how you sell.

Focus your prospecting

Y

ou know if your sales

thinking that you target your

and consider the reasons why,

role demands that

prospecting at SME’s, that is

when and how they became your

you prospect for new

most of NZ’s business. You will

customers, and have remained

business, and if so, then the quality

be wasting your time on most

your customers.

of your prospecting will determine

of them.

your sales success. But how do you act on this and ensure your time is well spent?

What does quality prospecting look like? Can you write down the characteristics of a good prospect? If you are sitting there

www.nzsalesmanager.co.nz / 18

Take time find the specific things that are common to your quality prospects. If you are not sure, look at your existing customers

Now go and focus your prospecting.

19 / www.nzsalesmanager.co.nz

CALENDAR DATE

NAME

PLACE

COMPANY LINK

Tuesday 2th April

Cold Calling and Prospecting

Auckland

Top Achievers Sales Training

www.topachieverssalestraining.co.nz

Wednesday 3th April

Winning through Powerful Presentations

Auckland

Shipley NZ

http://www.shipleywins.co.nz/publictraining-schedule.html

Monday 8th April

Winning Executive Summaries

Auckland

Shipley NZ

http://www.shipleywins.co.nz/publictraining-schedule.html

Monday 8th April -

The Sales Process

Wellington

Bright*Star Training

http://www.brightstar.co.nz/training/ sales-process

Wednesday 10th April

Customer Focused Writing

Christchurch

Shipley NZ

http://www.shipleywins.co.nz/publictraining-schedule.html

Wednesday 10th April -

Advanced Selling

Wellington

Bright*Star Training

http://www.brightstar.co.nz/training/ advanced-selling

Advanced Sales Development

Auckland

David Forman

www.davidforman.co.nz

Thursday 11th April Thursday 11th April

Social Media and Sales

Auckland

Top Achievers Sales Training

www.topachieverssalestraining.co.nz

Thursday 11th April

Professional Relationship Selling

Tauranga

The Marketing Company

http://events.themarketingcompany. co.nz/courses/3-professionalrelationship-selling

Monday 15th April -

Sales Negotiation for Results

Wellington

Tuesday 16th April

Bright*Star Training

http://www.brightstar.co.nz/training/ sales-negotiation-results

Tuesday 16th April

Sales Basics

Auckland

Geewiz

http://www.geewiz.co.nz

Tuesday 16th April

Prospecting & Gold

Auckland

The Marketing Company

http://events.themarketingcompany. co.nz/courses/21-prospecting-goldcalling

Tuesday 9th April

Thursday 11th April Wednesday 10th April -

Calling Wednesday 17th April

Sales Management

Auckland

Geewiz

http://www.geewiz.co.nz

Tuesday 16th April -

Scotwork Advancing

Auckland

Thursday 18th April

Negotiating Skills

Scotwork Negotiating Skills NZ

http://www.brightstar.co.nz/training/ sales-process

Thursday 18th April

Key Account

New Plymouth

The Marketing

Management

http://events.themarketingcompany. co.nz/courses/23-key-accountmanagement

Sales Training Course

Christchurch

Top Achievers Sales Training

Thursday 25th April

www.nzsalesmanager.co.nz / 20

Company

www.topachieverssalestraining.co.nz

THE CLOSE

“Your most unhappy customers are your greatest source of learning.”

- Bill Gates

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21 21 // www.nzsalesmanager.co.nz www.nzsalesmanager.co.nz