NZSALES FEBRUARY 3rd 2010 / Issue 34
We Interview
David Larsen Sales Manager & Young Executive of The Year
Selling Business Value to Senior Executives
Harnessing the Power of Your Fears
Exceed your Customer’s Expectations Are you one of this week’s winners? SEE INSIDE!
NZ’s e-mag for sales leaders
February 3 rd / Issue 34
5 ARE YOU ONE OF THIS WEEK'S WINNERS? SEE INSIDE!
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THIS WEEK'S MUST READ DOING THINGS DIFFERENTLY We interview the 2009 Young Executive of the Year, David Larsen, Sales and Marketing Manager of Rayglass Boats.
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Selling business value to senior executives How an account planning process can help you.
11 RESOURCE CORNER The Knack – How Street Smart Entrepreneurs Learn To Handle Whatever Comes Up By Norm Brodsky & Bo Burlingham
12 NZSM CALENDAR 13 TWO MINUTE TOP-UP HARNESSING THE POWER OF YOUR FEARS Overcoming fear and trepidation.
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15 SALES TRAINING DIRECTORY 16 Quick Fix It’s not what you sell, it’s how you sell. 17 THE CLOSE
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W
elcome back! It’s great to start the year with a success story for the sales profession. The 2009 NZIM/Eagle Technology Young Executive of the Year is Sales and Marketing Manager, David Larsen of Rayglass Boats. Certainly in the past 10 years, David is the only Sales Manager to win this prestigious award. We caught David before he took off for his holidays, and asked him a few questions. I find it particularly interesting that Rayglass have bucked an industry trend and passed ownership of the customers from the individual sales people to the sales team. This is a great example of ‘Selling is a Team Sport’ in action, which enables the provision of outstanding customer service, and results in a successful sales team. The strong culture and their ability to understand their customers are clear elements of the foundation for their success. As we launch into 2010, many will be looking back on
2009 as a year of discounting. Whether discounting by choice or being forced to, in order to stay in the market when everyone else is dropping their pants, severely eroded margins are the result. Competitors ‘buying the business’ has been a regular story I have heard. It’s easy to get there, but very hard to claw it back. Buyer expectations have changed. To get back on track will require taking the focus off the product and price, and onto what else the customer values. In this issue, Tony Hillyard helps our thinking on this and explains how an account planning process can help you to sell value to senior executives. We wish you well and every success in 2010.
Paul
P.S.
Remember to look and see if you're a prize draw winner. Names are on page 3 & 5 – is it you?
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TH I S W E E K ’ S M U ST R E A D
Doing Things Differently We interview the 2009 Young Executive of the Year, David Larsen, Sales and Marketing Manager of Rayglass Boats.
I
n December David Larsen, sales and marketing manager of Rayglass Boats, was announced as the 2009 NZIM/ Eagle Technology Young Executive of the Year.
We spoke with David and were intrigued to find out more when he said ‘we do a few things differently around here'... NZSM: Well done on winning the award David. Great for the Marine Industry, and for the sales and marketing profession too. So tell me, what do you do differently? DL: Competition is evident between the sales people within most sales forces, however at Rayglass we work as a team. We have a communal customer base giving us the ability to follow up each other’s customers and leads. It works effectively and provides optimum customer service. We
trust each other and have a good open relationship. We are naturally competitive as sales people but there is no need to worry about strongly competing with each other.
When you look at the bottomline of athe generated NZSM: This is how trulyrevenue customer focused organisation work, person where everyone is working byshould a sales hitting one for the customer. Have you always worked this way, or hundred percent of their targets, as opposed to someone At Rayglass we work as a team. We just forty percent, then havehitting a communal customer base giving the need to make the most us the ability to follow up each other’s customers It works from and the leads. imperfect arteffectively of staff and provides optimum customer service. selection becomes clear.
NZSM / FEB 3RD 2010 / 5
is this customer-centric approach something that has been implemented more recently? DL: We adopted this approach about three years ago. It is now a point of difference that gives us a competitive advantage. The best way it works is by having a growth strategy that everyone in the team has input into to ensure everyone is working collectively towards the same goal. A high level of trust and team support is imperative. NZSM: So how do you incentivise the sales team – there is obviously no ‘top sales person’ to aim for? DL: We set targets, budgets, and bonuses like any sales team, but we compare ourselves to our competition within the Asia Pacific Group rather than against each other. NZSM: In the December issue of NZ Management Magazine, you are quoted as saying that ‘the ability to sell boats rests on an intimate knowledge of the product’. I agree product knowledge is essential to be successful in sales, but what else is in the top three qualities or skills that are needed to succeed in sales? DL: 1. Goal orientated: We set weekly, monthly and quarterly goals. We also review them constantly and change them if needed. All my team set goals regularly and I truly believe that this is the secret to success.
2. Passion: All the employees at Rayglass have a passion for the brand and industry. Also their high energy and good industry knowledge is essential. We work under a lot of pressure so we need to be very motivated and have a good energy level for the busy periods. 3. Negotiation: I think having good negotiation skills is essential. Know the win/win... Understand your customer, know their needs and wants and have the ability to be persuasive. Know the objections you could face and how to overcome them. NZSM: Can you give a couple of examples of the type of goals you set? DL: Our goals are focused around building relationships with existing customers and expanding our export market. We believe if you get the relationship part right the sales come naturally. NZSM: And any tips for raising energy and motivation when everyone is feeling a bit flat? Or do you just go out for a blast in a boat? DL: Yeah - employ people that are self motivated! NZSM: The award recognizes your attitude and that you have a passion to succeed. What exactly do you look for in a sales person with the right attitude?
All my team set goals regularly and I truly believe that this is the secret to success. DL: The above three qualities, plus motivation, confidence, perseverance and the firm determination to continue on no matter what or how many setbacks occur. Team work, self reliance and never giving in are critical. NZSM: You are also described as a natural leader. How do you lead your sales team? DL: I use a modern dynamic leadership style where big decisions are discussed collectively. I am a big advocate for developing individual strengths to maximise morale and effectiveness. I am flexible in taking different approaches to suit the various needs of differing situations that will give optimum success. NZSM: You are responsible for both sales and marketing at Rayglass, which is the same for many SME’s in NZ. This is in contrast to large companies where sales and marketing are separate departments, often with a disconnect between
them. So when it is all down to you, what comes first, the sales or the marketing? What drives what? DL: Obviously it’s hard to sell a product without establishing a brand therefore marketing is the primary component to set the foundation to sell from. If you then do a good job in sales your customers will play a big role in your marketing. Therefore they both drive each other. NZSM: What is your competitive advantage, and how do you leverage this? DL: One of Rayglass Boats’ biggest competitive advantages is our technical ability, the ability to create a premium innovative product in a short period of time. Leadership and marketing provide the opportunity to promote Rayglass and ensure that premium boats are produced. Rayglass Boats has a strong company culture, which drives staff satisfaction and retention. This leads to increased NZSM / FEB 3RD 2010 / 6
I am a big advocate for developing individual strengths to maximise morale and effectiveness. skill development, innovation, quality and the ability to create customer satisfaction through a premium customised product. NZSM: We are hopefully coming out of a global recession – in what way has the economic climate over the past 18-24 months affected your long-term thinking and planning for the business? DL: It has given us the opportunity to look closely at our processes and our local market - Rayglass is continually developing new and innovative products. Our focus is to continually provide the optimum customer experience and after-sales service, while keeping up with the expansion of our export market. NZSM: Great that you have seen this time as an opportunity. About 50 percent of your business is export, so how do Rayglass succeed in international markets? DL: A big part of our success is being affiliated with
Global Government Agencies, America’s Cup and Louis Vuitton Regattas. After sales service, implementing the best build processes and using the highest quality components available to ensure we get the repeat business is at the forefront when dealing with the local and international markets. NZSM: What is your one piece of advice to succeed in sales in 2010? DL: Have a plan, stick to it and customise it if need be, build relationships through your customer base, nurture your new business, have fun in what you’re doing and keep an eye on the underdog. NZSM: And for anybody thinking of moving into sales and marketing management, what advice would you give them? DL: Be passionate about what you’re doing. Act with integrity and dignity. Give your team all the credit and don’t be a glory hunter.
NZSM / FEB 3RD 2010 / 7
Tony Hillyard specialises in giving sales teams around the world smart solutions to help them win more business in difficult or very competitive markets. Visit Tony’s website at www.TheSalesAcademy.co.nz for more information.
Selling Business Value to Senior Executives How An Account Planning Process Can Help You By Tony Hillyard
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he first part of a two part article explores how salespeople can use an Account Development Plan to help identify the key business problems that they should be exploring with senior executives in their larger customers, before they go to market for a solution.
Selling Value to Senior Executives Sales managers are constantly urging their salespeople to sell ‘value’ to senior customer executives in their larger accounts, and to do it early enough to influence any Request For Proposals issued by the customer. However, many salespeople repeatedly fail in this task simply because they haven’t been able to build effective, business-based relationships with their customer’s senior executives.
Many salespeople wait until the organisation has started to go to the market to find solutions for their problems... they have by then missed any opportunity to influence key executive thinking regarding potential options for the solution that could include key differentiators for their products or services. NZSM / FEB 3RD 2010 / 8
Why Don’t Salespeople Sell Value to Senior Executives? Because to do this requires the salesperson to acquire an in-depth understanding of a customer’s business, the key business issues facing the customer and a real understanding of how their own products and services can be deployed to help the customer executives achieve both their business goals and their personal, work-related ambitions. Many salespeople wait until the organisation has started to go to the market to find solutions for their problems. Salespeople justify this by pointing out that it saves their time because by then the organisation has a well-justified need and probably has a budget for the solution. However, whilst this is true, they have by then missed any opportunity to influence key executive thinking regarding potential options for the solution that could include key differentiators for their products or services. They have also lost the opportunity to establish themselves as a trusted advisor to those key executives.
executives in a business-based discussion early enough, salespeople get locked out of the early, critical phases of business problem resolution when senior executives are most active. They are then limited to sales discussions in the middle phase of the decision cycle, when a solution has already been specified and their competitors are already active in the account.
Senior E xecutive I nvolvement in the B usiness D ecision Process 80%
60% 40% 20%
U nderstand Set Set Strategy I ssues O bjectives
E arly
Plan E xplore Set Vendor E xplore I mplementation M easure O ptions R esults C riteria Alternatives
M iddle
L ate
Phases in the B usiness D ecision Process Source: Siebel
By failing to engage senior customer
Many account planning processes fail to provide sufficient motivation for the salesperson to keep the plan current. Usually the account plan is completed at the insistence of sales management and it provides little ongoing value for the salesperson for the effort required to maintain the plan.
In this middle phase, senior executives are less active and usually delegate the tasks of solution and vendor selection. It can be seen from the graph below why attempting to engage a senior executive in this middle phase of the decision cycle is unlikely to meet with consistent success. The Need for a Structured Account Planning Process A structured and well-thought-out account plan would go a long way to addressing this common sales management problem. Sadly, most account plans fail to arm the salesperson
with the appropriate knowledge to enable them to sell business value to senior executives because they are often simply an historical summary of what has happened in the account, plus a profile of the customer with basic facts and information about the target organisation. I often find very little critical analysis, if any, is applied to the information contained in the account plan. When completed, they languish on a bookshelf to be dusted off once a year when the sales manager requests an account review. NZSM / FEB 3RD 2010 / 9
This is because the processes used for account planning rarely direct the salesperson to critically analyse the information they have garnered and to then make the connections to their products and services. Nor do they require the salesperson to develop short and medium-term planned activities to ground the plan in reality and keep the plan alive. Whilst some plans may show long term objectives and strategies, they are usually too far in the future so the salesperson and their sales manager ignore them under the day-to-day pressures of life in a busy sales team.
How do I learn what the customer really values and needs? This is the most important question of all. Until they know the answer to this, salespeople cannot begin to respond creatively to those needs with their products and services. Finally, many account planning processes fail to provide sufficient motivation for the salesperson to keep the plan current. Usually the account plan is completed at the insistence of sales management and it provides little ongoing value for the salesperson for the effort required to maintain the plan. To truly motivate a salesperson to rigorously complete an account plan and to actively work the plan in a professional and methodical fashion, the account planning
process needs to answer a number of important questions for a salesperson. As a minimum, the process should provide real help in getting answers to the following critical questions: A) How do I learn what the customer really values and needs? This is the most important question of all. Until they know the answer to this, salespeople cannot begin to respond creatively to those needs with their products and services. B) How do I keep the customer happy? How will I protect the current revenue stream? Where will I find new revenue streams? These summarise the salesperson’s day-to-day selling tasks. The account planning process must provide real direction in these basic areas of the sales relationship with the customer. C) W here are we now? Where do we want to be? What needs to be done to get there? How will we know when we get there? These are the questions that sales management most frequently needs to ask about large accounts. They help management decide where and when to deploy the company’s resources. Salespeople must be able to answer them to gain management support and commitment to their plans for the customer.
In the next article we will look at how to construct an Account Development Plan that stays dust-free and can provide salespeople and sales management with the answers to these questions and help salespeople identify business issues for their customers where their products and services have the potential to add real value.
© The Sales Academy Ltd. All Rights Reserved. July 2009 NZSM / FEB 3RD 2010 / 10
R E SO U R C E CO R N E R
The Knack – How Street Smart Entrepreneurs Learn To Handle Whatever Comes Up Author: Norm Brodsky & Bo Burlingham Publisher: Random House $24.97 from Fishpond
T
oo many start-ups don't make the grade – what makes a successful business take off? Starting a new business is exciting, but there are many traps for the unwary. Some would-be entrepreneurs stick so firmly to their step-by-step guides that they don't see what's really going on. Others become so obsessed with potential problems they lose sight of the bigger picture. What they really need, according to serial entrepreneur Norm Brodsky, is a mindset that will help them to stay focussed on the real goals and grab opportunities whenever they arise. He calls it 'the
knack'. It's helped him to build eight phenomenally successful companies, and in this book he uses stories of real companies facing real challenges to show you how to develop it too. Editors note: I enjoyed reading this over the holidays – it contains some interesting insight into selecting sales people. The authors say that they consider themselves to be ‘top gun’ sales people, but they do not hire the ‘top guns’ – they might bring in the short term dollars but they don’t stay around and cause too much damage while they are with you.
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WED 3 FEB
NZSM CALENDAR SAT 6 FEB
MON 8 FEB
Mental Toughness Uni Auckland Short Courses
Foundations for Sales Success Zealmark Auckland Prospecting David Forman Auckland
TUE 9 FEB Mental Toughness Uni Auckland Short Courses Sales Basics Geewiz Christchurch
SUN 7 FEB
FRI 12 FEB
SAT 13 FEB
MON 15 FEB Negotiation David Forman Auckland
Professional Selling Skills Achieve Global Auckland
Sales Development David Forman Wellington
SUN 14 FEB THU 18 FEB Sales Development David Forman Wellington Top Achievers Sales Training, Auckland
FRI 19 FEB Business to Business Sales Skills Zealmark Auckland
Foundations for Sales Success, Zealmark Auckland
WED 24 FEB Sales Development David Forman Auckland Negotiating Skills Scotwork Auckland Better Business by Phone Sales Star Dunedin
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Sales Development David Forman Christchurch
Presentation Skills Top Achievers Sales Training, Auckland
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SUN 21 FEB THU 25 FEB Sales Development David Forman Auckland Negotiating Skills Scotwork Auckland Overcoming Objections and Closing Top Achievers Sales Training, Christchurch
WED 3 MAR Sales Development David Forman Christchurch
FRI 26 FEB Prospecting David Forman Tauranga
THU 4 FEB Business to Business Sales Skills Zealmark Auckland
WED 10 FEB Pitching and Qualifying Dinanmite Auckland Sales Mindset & Goals Sales Star Auckland Advanced Serious Selling Geewiz Wellington Professional Selling Skills Achieve Global Auckland
TUE 16 FEB Negotiation David Forman Auckland Sales Development David Forman Wellington Better Business by Phone Sales Star Invercargill Consultative Selling Sales Star/EMA Auckland
MON 22 FEB Sales Management Fundamentals Sales Star Auckland Key Account Management David Forman Auckland Sales Development David Forman Auckland
SAT 27 FEB
FRI 5 FEB Aim True Dinanmite Sales Training Hamilton
THU 11 FEB Professional Selling Skills Achieve Global Auckland Sales Dynamics Sales Star/EMA Auckland
WED 17 FEB Negotiation David Forman Auckland Sales Development David Forman Wellington Advanced Serious Selling Geewiz Auckland
TUES 23 FEB Key Account Management David Forman Auckland Sales Development David Forman Auckland Top Achievers Sales Training, Hamilton Negotiating Skills Scotwork Auckland
MON 1 MAR Sales Development David Forman Christchurch
SUN 28 FEB
WED 4 MAR
FRI 5 MAR
SAT 6 MAR
Sales Development David Forman Christchurch Cold Calling Top Achievers Sales Training Auckland
SUN 7 MAR
TWO M I N U T E TO P U P J ohn Shackleton is an international speaker, coach, author and performance expert. Visit his website at www.johnshack.com for more information.
Harnessing the Power of Your Fears Overcoming Fear and Trepidation By John Shackleton
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hen was the last time you felt real fear? Many sales people would say that it was just before they gave their last presentation, but it can happen to us at all sorts of times. Fear strikes different people in different ways, some only get worried just before doing a bungy jump and others fear making a simple phone call. No matter how safe we know the activity is, no matter how much others tell us that everything is fine, no matter how many books we read about overcoming our nerves, the fear remains real and affects the way we behave. Fear or trepidation is based on limiting self-belief and, contrary to popular thinking, this is extremely common – although many people wouldn’t admit it. Consider this: if you have complete and total belief that you are capable of a task, that you’ll be able to complete all the necessary steps however stressful the conditions become, and that you can handle whatever is thrown at you during the task, why would you be fearful? Many fears aren’t based in truth, they aren’t rational or logical but nevertheless they exist and they can easily stop us in our tracks and prevent us from taking action. Outside of events like sky diving, which involve physical danger, lots of people avoid fearful situations because they
don’t want to fail or perhaps, more accurately, they don’t want to be seen to fail. Failure itself isn’t what bothers many people – it’s the idea that others will see them fail that causes the fear. Public speaking is one of the most common fears in modern society but how much real physical danger are people facing on stage? I suppose the rotten vegetables could hurt you, but in truth most people are scared of what the audience might think of them. The athlete who is nervous about his performance faces the same challenge – if he was certain that no matter what he did, he couldn’t lose the race then he’d have no nerves. But this situation never exists so athletes train themselves to use the fear rather than let the fear use them. If we let the fear use us we will run away but if we can harness the fear and use the power that it provides then we can do an amazing job. The ability to use the fear is what we call confidence and fortunately it’s a skill that everyone can develop. It isn’t genetic, something that only a chosen few are born with, it’s a skill anyone can learn as long as they are prepared to face their demons and attempt the thing they fear over and over again, accepting that failure is a necessary part of the learning process. Action cures fear – nothing else. NZSM / FEB 3RD 2010 / 13
now and waiting for a better time. It’s interesting but most top athletes will tell you that the fear never goes away, they just get better and better at using it to help them perform. As many people have said: the butterflies in the stomach will always be there, however, with practice, we can get them to fly in formation. So what thoughts should we fill our head with when we face that fear and we want to overcome it? Obviously we need to have high levels of self-belief and convince ourselves that we are capable of achieving the task so positive self talk is very important. I suggest saying something like the following (as long as you believe that it’s true):
You can feel the fear and the failure contained in these sentences and, at best, the person is being tentative. As Anthony Robbins says, “when you are tentative you have no power; if you want to succeed you need to exude certainty”. Your self-talk must be strong and powerful even when you don’t physically feel that you have complete control. It’s worth taking the time to plan what you are going to say to yourself next time that fear rears its ugly head and attempts to take over.
• I can do this. I’m well prepared, I have everything that is required and I know I have the capability to achieve what I want. • If Fred Smith can do this then there is no reason why I can’t. I’m just as good as he is and probably better prepared. • I’m powerful, strong and in complete control, this success is mine for the taking. All I need to do is relax, concentrate on the outcome I’m looking for and stay focused. Unfortunately many people have a negative selftalk conversation like: • Well I’ll give it a go and hope for the best. • I’ve never done this before and I’m not very talented at this type of thing. • Perhaps I’d be better off putting this off right
NZSM / FEB 3RD 2010 / 14
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MID STRENGTH FULL FLAVOUR FULL LIFE
QUICK FIX
QUICK FIX
It's not what you sell, it's how you sell
Exceed your Customers’ Expectations When a client asks for something and you've said you will send it through, always ask yourself, “What else could I give them that they would appreciate?". For example, if they need a catalogue on a particular product, I might send them a copy of the installation sheet, or a case study profile as well. Remember that we know more about our product than our clients, so they don't necessarily know the right questions to ask – helpfulness always wins out in the end.
If you have a favourite ‘quick fix’ that you would like to share with our readers (without giving your winning secrets away!) then email the editor at pauln@nzsalesmanager.co.nz You will be in to win a high powered laser pointer pen, courtesy of the great guys at Brand Storming Promotions.
Thanks to John Braggins, HPM Legrand Ltd for contributing this Quick Fix.
WIN A LASER POINTER PEN FOR YOUR QUICK FIX!
“
If you have a favorite ‘quick fix’ that you would like to share with our readers (without giving your winning secrets away!) IMG_2752.jpg then email the editor at pauln@nzsalesmanager.co.nz You will be in to win a high-powered laser pointer pen, courtesy of the great guys at Brand Storming Promotions.
“
Everyone lives by selling something
IMG_2764.jpg
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Robert Louis Stevenson Have you subscribed to NZ Sales Manager? It’s free! Simply visit www.nzsalesmanager.co.nz to get a copy of NZ Sales Manager delivered straight to your inbox every third Wednesday! IMG_2790.jpg NZSM / FEB 3RD 2010 / 17