NZ Sales Manager - Issue 95

NZSALES JUNE | ISSUE 95

The Future of Selling The end of sales as we know it

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

From the Editor I

received through the mail this week a Consumer NZ ‘sales people not welcome here’ campaign. The campaign is only against dodgy door – to – door sellers, and the fact that we even need to have this campaign in NZ shows hard sell tactics are still being used and are not wanted.

While these few companies and unscrupulous people tarnish the sales industry, we aim through this magazine to advocate professionalism in sales. The articles in this issue all highlight

practical ways in which the industry is changing or needs to change, and tips to stand out from your competitors by the way you sell. As Jeff Haden concludes in his excellent article 9 habits of remarkably persuasive people, ‘always use your persuasion skills for good, not evil.’

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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 GROUP EDITOR Richard Liew

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contents

JUNE

THIS MONTH'S MUST READ...............................................................................................................6 THE FUTURE OF SELLING

9 HABITS OF REMARKABLY PERSUASIVE PEOPLE.................................................................12 WHY YOU NEED REFERRAL ETIQUETTE.........................................................................16

TWO MINUTE TOP-UP.......................................................................................................................18

FIRST STEP ERRORS SALES MANAGERS MUST AVOID

QUICK FIX..........................................................................................................................................20 It’s not what you sell, it’s how you sell

BOOK REVIEW...................................................................................................................................22 Looptail by Bruce Poon Tip

CALENDAR....................................................................................................................... 23 THE CLOSE.........................................................................................................................................24

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MUSTREAD

The Future of Selling

The end of sales as we know it Words by Stuart Edmunds

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I

t should come as no startling claim that the success of sales contributes much to the success of an organisation. If a company has top-line revenue from sales, they get the privilege of worrying about the myriad of other costs associated with running a business. Without those sales or at least the prospect thereof, they don’t have much else to worry about.

This is precisely why sales professionals can be amongst the highest paid employees within the company, sometimes making more than twice the operational roles of those behind the scenes helping them to get the job done.

That being said, sales people also carry the most risk.

Often a substantial portion of their income is tied to their performance (directly and indirectly) as well as their ability to keep customers when projects go off track.

Gone are the days of high margins on commodities and consumables. We have entered the era of the ‘New World of Sales’, a space where margin and profit are determined by the value you create and the experience you deliver.

These aren't necessarily new ideas; rather they were elements often neglected in the bygone era of sales where the buyer had less access to information and intelligence and the marketplace perhaps wasn’t quite so competitive. Despite prophecies of doom, there are many bright spots of opportunities for sales professionals. Consider the following:

1

THE WEB WILL NOT DIMINISH THE ROLE OF THE SALESPERSON.

We might surmise because a customer has almost limitless ability to research salespeople, companies and their offerings online, this should diminish the importance of salespeople. The truth is companies continue to seek sales-hires more than ever.

What is changing, however, is that customers expect so much more of the salespeople working with them. Customers now look for salespeople to have an expert's view of the customer's business and industry, act as a consultant to a crucial part of the customer's business, and be effective at protecting the customer's interests within the vendor organisation.

2

SALES ROLES ARE BECOMING MORE DISTINCTLY SPECIALISED. The best sales professionals are hard-driving mavericks who can drum up business, develop opportunities, and "always be closing!”. Not anymore! There is no longer a universal ‘one size fits all’ salesperson. While some sales jobs may demand the stereotypical ‘go-getter’ behaviour, other roles favour employees with less showy strengths, like strong analytical skills, the ability to empathise with customer problems, or a deep understanding of complex technological, industry or business issues. www.nzsalesmanager.co.nz |

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3

MORE HARD SCIENCE, LESS SOFT ART

Viewing sales as an intangible art form that can be observed only through financial results is becoming less acceptable. The proliferation of sales-oriented technologies and research now make it possible to use science and technology to dramatically increase sales performance.

High-value selling, and consequently buying, is however always a profoundly humanto-human experience.

This is never more important than in complex situations that simply can’t be automated or pushed online.

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Starting at the hiring phase, using assessment tests, a map of a salesperson's skills, competencies, motivators, work habits and the potential for developing new skills can be documented. Such metrics makes selling (and forecasting sales) more predictable and, therefore, more manageable.

There is also an explosion of integrated CRM, social media, omnichannel lead nurturing, sales acceleration, pipeline management, predictive data analytics, machine learning and a plethora of other tools specific to sales. Selling is going through a revolution in the business world akin to the marketing transformation in the 1960’s and that of computers during the 1980’s.

The proliferation of online commerce illustrates the growing desire and comfort businesses and consumers show towards purchasing online or remotely rather than from a salesperson. Further integration of complex configuration and pricing tools and artificial intelligence only serves to increase the type and complexity of products and services that can be purchased online. This feeds into claims around the proportion of sales scenarios that will move away from a face to face salesperson interaction to a fully online or automatically executed transaction. This might also include more complicated deals being transacted by the increasingly skilled and better resourced inside sales teams, further reducing the cost and need for in-person meetings.

High-value selling, and consequently buying, is however always a profoundly human-to-human experience. This is never more important than in complex situations that simply can’t be automated or pushed online.

THESE SITUATIONS INCLUDE: a. Where the customer struggles to diagnose their problem: A company might be experiencing production delays resulting from multiple considerations, none of which seems obvious from the inside. The customer will turn to an outside specialist (salesperson) to help guide diagnosis of the problem. b. Where the customer has narrowed down the problem but wants help defining the solution: A company might identify manufacturing delays and highlight which part of the process those delays are taking place in but lack the expertise to change the process or technology to reduce or eliminate those delays.

The customer can engage a salesperson to define and propose a solution. c. Where the customer struggles to calculate the return on investment (ROI): A company's management may intuitively understand that purchasing a system to make the production area run more efficiently will be a wise investment. However, they struggle to articulate the ROI of an in-house system versus outsourcing or quantifying existing workflow improvements. The customer can turn to a salesperson to help create a business case for purchasing their solution.

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With every great change comes great opportunity. Now that the buyer is armed with almost as much information as the seller, salespeople can turn their attention back to further educating the buyer, being the true harbinger of insight into as yet unseen challenges unique to their company and industry.

Companies take note; it is in these scenarios where the salespeople are required that they will most likely be profitable. Simply put, products and services that can be purchased online will always be subject to price wars, which favour large companies with economies of scale. However, economy of scale apply less when the sales situations involve personal relationships, trust, and mutual problem solving.

This is not to say that these 'supersales' people won't use technology. On the contrary, like many salespeople today, they'll embrace any technology that helps them help their customers more and multiply the force of their efforts.

Just as importantly, companies need to know that the salespeople who will be handling those situations will be worlds apart from the glad hand stereotypes of the past. The salesperson of tomorrow needs to be highly knowledgeable and highly educated because only then can they provide a level of service that can't be automated.

Is that a bad thing? It is for a lot of transactional salespeople.

However, as with every great change comes great opportunity.

Given that buyers today engage with more online content every day, and estimates abound that buyers don’t engage a salesperson until almost two-thirds of the research and buying process has transpired, the selling process and sales person needs to be profoundly more specialised and differentiated in delivering high-value opportunities and insights than ever before.

Also the buyer as we knew him or her is being transformed, absorbed into a world where Google answers their questions and trusted social networks fill some of the remaining voids.

Now that the buyer is armed with almost as much information as the seller, salespeople can turn their attention back to further educating the buyer, being the true harbinger of insight into as yet unseen challenges unique to their company and industry, and nurturing the relationships through great customer experience.

So, sales aren’t going away anytime soon; it is just changing.

Leaving businesses to ask themselves, ‘how will our organisation embrace the shift?’. •

 www.instituteofsales.co.nz

Stuart Edmunds is the founder of the New Zealand Institute of Sales, dedicated to elevating the sales profession in New Zealand by supporting professional development, peer networking and industry awards among members who support, work-in and lead sales organisations.

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9 Habits of Remarkably Persuasive People

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how me a successful person and I'll show you someone You don't have to incredibly good at persuading other people. Oh, I know: be born with an 'Persuasion' implies manipulating, pressuring, cajoling… all incredible power of persuasion. Here's the used-car salesman stereotypes. how you can develop But if you think of persuasion as effectively describing the benefits that vital skill. and logic of an idea to gain agreement, then everyone needs to Words by Jeff Haden

be able to persuade – to convince others – that a proposal makes sense. Also to show stakeholders how a project or business will generate a return and to help employees understand the benefits of a new process, and so on.

That's why the ability to persuade is critical in any business or career – and why successful people are extremely good at persuading others.

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Here are some of the habits of remarkably persuasive people:

1They take bold stands.

You would assume data and reasoning always win the day, right?

Nope. Research shows humans prefer cockiness to expertise.

We naturally assume confidence equates with skill. Even the most sceptical will at least be partly persuaded by a confident speaker.

In fact, we prefer advice from a confident source even to the point that we will forgive a poor track record.

So be bold. Stop saying, "I think" or "I believe". Stop adding qualifiers to your speech. If you think something will work, say it will work. If you believe something will work, say it will work.

Stand behind your opinions – even if they are just opinions – and let your enthusiasm show. People will naturally be more persuaded.

2They adjust their rate of speech.

There's a reason behind the 'fast talking salesman' stereotype: In certain situations, talking fast works. Other times, not so much.

Here's what one study indicates: • If your audience is likely to disagree, speak faster.

• If your audience is likely to agree, speak slower.

Why? • When your audience is inclined to disagree with you, speaking faster gives them less time to form counter-arguments and you have a better chance of persuading them.

• When your audience is inclined to agree with you, speaking slowly gives them time to evaluate your arguments and factor in a few of their own thoughts. The combination of your reasoning plus their initial bias means they are more likely to, at least in part, persuade themselves.

In short: If you're preaching to the choir, speak slowly; if not, speak quickly. And if your audience is neutral or apathetic, speak quickly so you'll be less likely to lose their attention.

If you're preaching to the choir, speak slowly; if not, speak quickly. And if your audience is neutral or apathetic, speak quickly so you'll be less likely to lose their attention. www.nzsalesmanager.co.nz

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3

They start with small 'wins'

Research shows – yep, more research – that gaining agreement has an enduring effect, even if only over the short term. So instead of jumping right to the end of your argument, start with statements or premises you know your audience will agree with.

Build a foundation for further agreement. Remember, a body in motion tends to remain in motion, and that also applies to a head nodding in agreement.

4

They occasionally swear

Of course swearing for no reason is just swearing. But say your team needs to pull together… right freaking now. Tossing in an occasional – and heartfelt – curse word can help instil a sense of urgency because it shows you care. And, of course, it never hurts when a leader lets a little frustration or anger show too.

In short, be yourself because authenticity is always more persuasive. And if you feel strongly enough to slip in a mild curse word, feel free. Research shows you're likely to be a little more persuasive.

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5

They know how their audience prefers to process information

A fellow supervisor used to frustrate the crap out of me (see, that swearing thing works). I was young and enthusiastic and would burst into his office with an awesome idea, lay out all my facts and figures, wait breathlessly for him to agree with me… and he would disagree.

Every. Freaking. Time.

After a number of failed attempts, I finally realised he wasn't the problem. My approach was the problem. He needed time to think.

He needed time to process. By demanding an immediate answer, I put him on the defensive. In the absence of time to reflect, he would fall back on the safe choice: sticking to the status quo.

So I tried a different approach. "Don," I said. "I have an idea that I think makes sense, but I feel sure there are things I'm missing. If I run it by you, could you think about it for a day or two and then tell me what you think?"

He loved that approach. One, it showed I valued his wisdom and experience. Two, it showed I didn't just want him to agree – I genuinely wanted his opinion. And most important, it gave him time to process my idea the way he felt most comfortable.

Always know your audience. Don't push for instant agreement if someone's personality style makes that unlikely. But don't ask for thought and reflection if your audience loves to make quick decisions and move on.

6

They share positives and negatives.

According to University of Illinois professor Daniel O'Keefe, sharing an opposing viewpoint or two is more persuasive than sticking solely to your argument.

Why? Very few ideas or proposals are perfect. Your audience members know that; they know there are other perspectives and potential outcomes. So meet them head on. Talk about the things they're already considering.

Discuss potential negatives and show how you will mitigate or overcome those problems.

The people in your audience are more likely to be persuaded when they know you understand they could have misgivings. So talk about the other side of the argument – and then do your best to show why you're still right.

If you're trying to produce change, focus on the positives of that change. Take your audience to a better place instead of telling your audience what to avoid.

7 They draw positive conclusions

Which of the following statements is more persuasive?

• "Stop making so many mistakes," or • "Be much more accurate."

Or these two?

• "Stop feeling so lethargic," or • "Feel a lot more energetic."

While it's tempting to use scare tactics, positive outcome statements tend to be more persuasive. The researchers hypothesised that most people respond negatively to feeling bullied or guilted into changing behaviour.

So if you're trying to produce change, focus on the positives of that change. Take your audience to a better place instead of telling your audience what to avoid. www.nzsalesmanager.co.nz

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8 They choose the right medium

Say you're a man hoping to convince a man you don't know well, or even at all. What should you do?

If you have a choice, don't speak in person. Write an email first.

Remarkably persuasive people understand how to frame and deliver their messages, but most important, they embrace the fact that the message is what matters.

As a general rule, men tend to feel competitive in person and turn what should be a conversation into a contest we think we need to win (be honest; you know you do it sometimes).

The opposite is true if you're a woman hoping to persuade other women. According to the researchers, women are "more focused on relationships," so in-person communication tends to be more effective.

But if you're a guy trying to convince another guy you know well, definitely communicate in person. The closer your relationship, the more effective face-to-face communication tends to be.

of all‌they make 9 Most sure they're right Remarkably persuasive people understand how to frame and deliver their messages, but most important, they embrace the fact that the message is what matters.

Be clear, be concise, be to the point, and win the day because your data, reasoning and conclusions are beyond reproach.

And always use your persuasion skills for good, not evil. They should be the icing on an undeniably logical cake.•

 Jeff Haden is a ghostwriter, speaker and LinkedIn Influencer. He has ghostwritten over fifty non-fiction books, including seven Amazon category #1s. Find Jeff Haden on Linkedin 016 |

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Why You Need Referral Etiquette

H

On the flip side, I have heard many stories of referrals going wrong. Having your client tell you about the lousy work that someone you referred did for them is embarrassing and enough to make you not bother in the future. Seth Godin wrote another take on it here.

I received a referral recently from an acquaintance because his client wanted something he didn’t have in-depth knowledge on, but he knew I did. That was great news for me as the receiver of the referral – an easy piece of business for me, and I was grateful.

So what should happen now?

What is referral etiquette and does it even matter? Well, I think it definitely matters – certainly to the person giving the referral and risking an awful lot.

Words by Linda Coles

ave you ever wondered what happened to a referral you gave to someone? Was it useful to them or not? It’s probably something we have all done, taken the lead and thought no more about it. But wouldn’t you feel a little annoyed at not knowing the outcome of a lead given? You took the time and forethought to hand them a lead in the first place, and they can’t be bothered to update you. Maybe that’s the last time you’ll refer anyone – period.

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MAKE CONTACT

Firstly, make timely contact with the referral. While this may be stating the obvious, it doesn’t happen all the time. When someone gives you a lead, that lead is about as hot as it gets.

The referral is ready to receive your call and find out more because they want what you are offering if you can nail the details right.

SEAL THE DEAL

Referrals are generally regarded as easy business because by the very nature of them; they come with a glowing reference about you at a time when they want what you’re offering.

When you have sealed the deal, drop a note back to your referrer to say thanks, and to let them know the outcome so far.

Again, you are building up trust as you go with your referrer, who is now breathing a bit easier.

DO THE BEST JOB

If you want more referrals and, more importantly, to keep your relationship with your referrer, go out of your way to do the best job you can. It’s their brand on the line here as well as your own.

Until they know you looked after their client, they are unlikely to send you any more leads.

4 CIRCLE BACK REWARD WITH THANKS Let your referrer know that you have contacted the lead and organised the next steps. This not only lets your referrer know you have made contact, but what is happening next. Why is it important? Because the referral is more than likely a client of theirs, and if you screw it up it reflects badly back on them.

They are trusting you in more ways than you can imagine.

People don’t give referrals just to get rewards like bottles of wine, but it’s a nice thing to do to say thanks. The deal you did with their client was undoubtedly worth a whole lot more to you and it’s just good manners to acknowledge their effort.

So much of our business life is about building relationships with others and gaining their trust. It takes a long time to do but only a moment to break. Being known for always doing the best job you can and being the person with impeccable manners will ensure you get even more referrals.

Do you follow a process when you get a referral to ensure it works for everyone involved? •

 www.bluebanana.co.nz

Linda Coles is a conference speaker and author on building relationships and helps teams to use relationships, online and off, as a way to grow their business connection base and network online effectively. www.nzsalesmanager.co.nz |

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TWOMINUTETOPUP

First Step Errors Sales Managers Must Avoid Words by Andrew Reimer

I

f you’re newly promoted to sales management, a fundamental error can be made right at the beginning. A new sales manager can get so lost in sales team management, that they stop being a student themselves. But sales managers need to be students, not just at the beginning but always.

This implies continual improvement, but it also implies change. What sales management techniques will you use to lead change?

You need to find out what’s going on out there because it’s changing How do you manage mistakes?

How do you learn from all the time. You need to build your sales management capability mistakes? Are mistakes a and you need to build your team’s sales capability.

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Some people say you need to embrace change, and whether that word works for you or not, the question to ask is, are you continually building the capability of yourself and your organisation? bad thing? When you are a new sales manager, any mistake appears like a bad thing, but mistakes are one of your greatest opportunities for learning. You can’t be embarrassed about what you don’t know.

“It’s an incredible strength to actually know what you don’t know.”

In fact, this is where the freedom that all sales managers crave comes from. There’s freedom in saying I don’t know that, I’ve never done that, that’s new to me, or I’ve only done that once before. Because then you can put something in place to figure it out! But if you bluff or just try to keep up an image, you won’t learn and you won’t grow.

Admitting that you don’t know will help you take control of yourself.

This is so important, because as soon as you’ve got control of yourself, based on a genuine and authentic assessment of what you know and don’t know, then you can really take responsibility for the outcomes you want, both personally and professionally, and also with your sales team.

It’s okay not to know because only then are you on the path to figuring it out. This is not only a key sales management skill; it’s a key life skill. If you have that skill of figuring it out, or knowing how to collaborate with others who know how to figure it out, you’re on the right track. That way you can seek new ideas and move forward.

“Be willing to adjust and reapply, and adjust and reapply, and then success will come.”

Top sales managers are almost always looking for that next change, even anticipating it. This is sales leadership.

Some people say you need to embrace change, and whether that word works for you or not, the question to ask is, are you continually building the capability of yourself and your organisation? • Are you investing in yourself first? Are you a learner? Do you model learning? Are you flexible? Are you open to new ideas? Do you collaborate when you don’t know? •

 www.high-performance.com.au

Andrew Reimer brings world’s best practices to issues surrounding cultural and change management, client/stakeholder involvement and operational talent development. www.nzsalesmanager.co.nz

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QUICKFIX

Phone Etiquette Matters Words by Debbie Mayo-Smith

M

ost of us are stressed at work and we rush to get everything done, which can make us abrupt and impatient.

This comes through loud and clear on the phone and it does not give customers the kind of experience they want.

Make sure your staff understand that how they sound on the phone can affect whether the caller becomes a customer or whether an existing customer comes back for more.

To create a great phone experience, staff need to sound relaxed, happy and friendly when they answer the phone.

They should: • Greet the caller (‘good morning’) • State the business name (‘welcome to . . .’)

• Say their own name (‘I’m . . .’)

• Offer to do something (‘how can I help you?’). ●



022 | www.nzsalesmanager.co.nz 022 | www.nzsalesmanager.co.nz

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RESOURCECORNER

Looptail

How One Company Changed the World by Reinventing Business

L

ooptail is Bruce Poon Tip's extraordinary first-person account of his entrepreneurial instincts to start and develop G Adventures, the highly-successful international travel adventure company. Along the way, he reveals his unusual management secrets that not only keep his employees fully engaged and energised but also keep his customers extremely happy.

His unique approach has worked in marvellous ways. Poon Tip has created an entirely new and refreshing approach to management. For example, there is no CEO at G Adventures – instead, every employee is a CEO, empowered to make instantaneous decisions to help clients on the spot. But while there's no CEO, there is a company Mayor, who take the pulse of corporate morale.

There's no HR department – but there is a Talent Agency and company Culture Club. It hasn't always been easy to try to balance his desire for a socially responsible company along with the desire to generate profits. But thanks to Poon Tip's vision, G - Johann Wolfgang Goethe Adventures has flourished and von has done its best to maintain its German Writer & Philosopher, 1749-1832 Looptail approach.

 024 |

In short, it's been an extraordinary ride, and in many ways G Adventures is at the vanguard of what modern-day companies are beginning to look like.. ●

Available from Mightyape.co.nz

www.nzsalesmanager.co.nz

By Bruce Poon Tip

EVENTSCALENDAR

DATE

NAME

PLACE

COMPANY

16 June

Sales Basics

Auckland

Geewiz

16 June

Cold calling and prospecting

Auckland

Top Achievers

23 June

Overcoming Objections

Auckland

Top Achievers

24 June

Strategic Sales Leader

Auckland

David Forman

24 June

Sales Management

Christchurch

Geewiz

26 June

Customer Satisfaction is DEAD!

Auckland

2 July

Cold Calling and Prospecting

Auckland

New Zealand Institute of Sales Top Achievers

7-8 July

Sales Managers Bookcamp

Christchurch

The Marketing Company

8 July

Negotiation Skills

Auckland

NZIM

9-10 July

Sales Managers Bootcamp

Auckland

The Marketing Company

10 July

Sales Accelerator

Palmerston North

The Marketing Company

16 July

Sales Acceleration Technologies

Auckland

20 July

Sales Performer

Auckland

New Zealand Institute of Sales David Forman

20 July

Sales Acceleration Technologies

Wellington

21 July

Sales Basics

Auckland

New Zealand Institute of Sales Geewiz

23 July

Winning Negotiator

Auckland

David Forman

28 July

Sales Management

Hamilton

Geewiz

30 July

Sales Seminar

Christchurch

Top Achievers

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“I am convinced that life is 10% what happens to me and 90% how I react to it. And so it is with you… we are in charge of our attitudes.”

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