DECEMBER 8TH 2010 / Issue 46
Dangers of Picking The
The
Fear of
Public Speaking
Low Hanging
Fruit
Silence
is Golden
Selling
Silly Season in the
NZ’s e-mag for sales leaders
CONTENTS DECEMBER 8 TH / Issue 46
6
6
THIS WEEK'S MUST READ selling in the silly season 7 tips for surviving the silly season.
8
the fear of public speaking Three causes and what to do about it
12
TWO MINUTE TOP-UP the dangers of picking low
8
hanging fruit Lessons learned from the orchards of business
15
SALES TRAINING DIRECTORY
16
RESOURCE CORNER Key Account Management: Tools and Techniques for Achieving Profitable Key
12
Supplier. 4th Edition
17
Quick Fix It’s not what you sell, it’s how you sell.
18
THE CLOSE
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From the Editor
A
s the curtains begin to draw on what has again been a tough year for many industries, there is no doubt that the top sales people up and down the country have shone, and those that should never have been sales people have moved on to other careers. Sales lacks recognition as a profession, yet it is vital to the success of any business. An exciting new event will remedy this lack of recognition next year. We can look forward to the NZ Sales Awards and Summit in April 2011. Look out for information about the awards and event early in the New Year.
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 forwardthinking sales managers, business owners and sales professionals. EDITOR / Paul Newsom ART DIRECTOR / Jodi Olsson GROUP EDITOR / Trudi Caffell
We have reported this year on the development of the new NZQA recognised qualifications in sales. The ITO responsible for these, The Retail Institute, have recently received feedback from NZQA on the Level 3 and Level 4 unit standards that will be used to form the qualifications. The feedback has been very good, and The Retail Institute are on track to have the unit standards registered on the National Qualifications Framework in 2011.
CONTENT ENQUIRIES / Phone Paul on 04 586 4733 or email pauln@nzsalesmanager.co.nz ADVERTISING ENQUIRIES / Phone Alastair on 09 522 7257 or email alastairn@espiremedia.com ADDRESS / NZ Sales Manager, C/- Espire Media, PO Box 137162,
The introduction of the qualifications will be a significant development for the sales profession, and I encourage you to keep up to date with developments next year. Thanks for all your comments, encouragement and feedback during the year. Please continue to let us know what you want to see in the magazine.
Parnell, Auckland 1151, New Zealand WEBSITE / www.nzsalesmanager.co.nz
We’ll be back on 2nd February, so from us all at NZSM, we wish you a safe and Merry Christmas and a Happy New Year.
Happy Selling!
Paul
NZ Sales Manager is a GREEN MAG, created and distributed without the use of paper so it's environmentally friendly. Please think before you print. Thank you!
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T H I S W E E K ’ S M US T R E A D Paul Newsom is the editor of NZ Sales Manager and helps sales professionals and sales managers to compete and win in complex sales. You can visit Paul’s website at www.salespartners.co.nz
Selling in theSilly
Season
7 tips for surviving the summer slowdown By Paul Newsom
T
he Silly Season is upon us. It is the time of year when customers stop making decisions and hold off placing orders: either because it is the busiest time of year (for example, the lead up to Christmas for retailers and summer for the tourism industry) and it is all hands to the pump, or the holiday mode takes over and tired buyers and business owners say ‘it is not worth starting anything new until next year when everyone is back and refreshed’, or they say ‘the budget is spent for the year, so we will wait until next year.’ Generalised statements yes, but the problem we have in New Zealand is that the symptoms of the silly season are seen for far too long – from October through to February. While Kiwis may like to go for most of the year without taking a break then take all of January off, this has to be a contributor to the productivity issues of New Zealand. Contrast this with Northern Hemisphere countries. Industrial breaks for Christmas and New Year, and the summer holidays, are generally a couple of weeks. There is certainly no lag of several months. The ‘silly season’ will be presenting some sales people with a challenge. Having 9 months of activity during the year can make it tough to hit the target. Monthly sales targets can drive the wrong behaviours particularly at this time of year. Indeed, NZSM/ /DECEMBER DECEMBER 8TH 2010/ /6 6 NZSM 8TH 2010
desperate sales people using questionable tactics while trying to hit unrealistic targets is another symptom of the silly season. So how can we feed the pipeline and keep sales progressing during the silly season? Here are 7 things you can do over the next couple of months: Check your own mindset and belief If you are thinking that no-one will buy from you over the next two months, then that is what will probably happen. Your activity will reflect this thought, and guess what – noone will buy from you. Know your customers and your markets Some customers and markets will be actively buying now, and some won’t. You must know which is which. When is the end of the financial year and when do budget rounds start and finish for your prospects? Those that have budgets that end in December may have money to spend before the end of the year.
Summer season business will be in high consumption right now. Focus on service and delivery and maximize the opportunities of the season. Businesses that are out of season will be preparing for the next season. They may not be placing orders over the next two months, but they will be planning and making decisions. Your activity should be focused on building trusting relationships by delivering value, rather than trying to force a sale over the next month. Fish in the ponds where the fish are most likely to be feeding. Only by doing your homework will you know where these ponds are, and what kind of bait to use. Start on small things Find small things that will get projects started. There may be some preparation work or auditing that is best done while the customers business is relatively quiet. Maybe a small scale pilot or trial on one machine, or with one department will be best done at this time of year.
Look for opportunities where you can complement and enhance the existing solution, rather than replace it. This may be with one part of your solution. Starting small will reduce the risk of change for the customer at this time of year, allow you to prove your capability and establish trust, and will open the door for bigger opportunities in the future.
will enable you to uncover these additional opportunities that may not at first be apparent.
Help your customers with their planning Understand your customers goals and objectives for next year, and help them with the planning. Rather than focusing on when they are going to place an order, focus the conversation on when they want to see results and the impact/benefits of your product or solution in their business. If it takes two months from placement of order to implement the solution, then waiting until Feb next year to begin will mean an April installation and 1/3 of the year will have gone before the solution is in place and providing value. An order placed now with some flexible and mutually agreeable commercial terms may be advantageous to you and the customer.
Be Different Be different with Christmas greetings and functions for your customers. Don’t just go through the motions and look like every other company and sales person out there. You are making contact with your clients, so as well as saying ‘thank you’ for recent business, use it as an opportunity to progress sales and generate new leads. What can you do to make a difference and provide some value? Corporate Christmas cards just do not cut it! If you send cards, enclose something in the card which gives the customer reason to contact you in the New Year.
Maximise the sales opportunity If there are fewer opportunities around at this time of year, you need to make the most of them. Maximising the sales opportunity should apply at any time of the year, however if you know your customers and your customers customers, you will be aware of what opportunities may exist to maximise the sale. Asking high quality questions
For a simple seasonal example, don’t just sell the bbq, what are the opportunities for the cooking tools, cleaners, gas cylinder, outdoor furniture…
Work on yourself If you have quiet time, use it for your own planning, preparation and personal development. Most people spend more time planning their holiday than they do planning their life and goals. Invest some time on what you want to achieve in 2011, how you will do this, and who you need to ‘be’ to achieve this, and your success in 2011 may mean the holiday next summer will really need some planning! 7 / DECEMBER 8TH 2010 / NZSM
Olivia Mitchell is an internationally-renowned presentation trainer and blogger. To find out more visit www.speakingaboutpresenting.com Olivia provides presentation training in New Zealand through Effective Speaking.
The
Fear of Public
Speaking
Three causes and what to do about it By Olivia Mitchell
T
he potential client you’ve been chasing for months wants you to make a pitch presentation to clinch the sale. The thought makes your mouth go dry and your stomach go queasy. You’re suffering from that most common of fears – the fear of public speaking. In this article, I’ll explore three distinct causes of fear of public speaking and specific strategies you can use to reduce your fear. These three different causes of speaking anxiety relate to three different areas of the brain – the Old Brain (it’s called this in neuro’pop’ books but is more correctly called the Hindbrain), Mid Brain and the New Brain (again more correctly called the Forebrain). My descriptions are a simplification of the science – in particular, the parts of the brain all interact with each other, so it’s not strictly correct to say that just one part of the brain causes nervousness. But I think it’s a useful model which may help you understand your fear of public speaking and work out the best way to reduce it.
NZSM/ /DECEMBER DECEMBER 8TH 2010/ /8 8 NZSM 8TH 2010
1. Old Brain nervousness Your old brain is the part of your brain that is constantly scanning the environment looking for threats. Survival is what matters to the old brain. Many people suffer from ‘Old Brain’ nervousness. In prehistoric times, being part of a group was essential to our survival, so one of the threats to our survival was being kicked out of the group. What might get you kicked out? Maybe standing out in some way, saying something offensive or stupid, or not performing up to expectations. Fast forward to now. You’re standing in front of a group ready to open your mouth and your old brain goes (metaphorically): Oh-oh. This is a threatening situation. If you say something stupid, YOU MIGHT DIE! It’s no longer true that you might die, but your Old Brain doesn’t know that. Your Old Brain activates your survival system: fight, flight or freeze. When it comes to public speaking the most common reactions are flight or freeze: Flight - You avoid public speaking if at all possible. If you do have to speak, you speak as fast as possible so that you get through it as quickly as possible. Freeze – You feel stiff and artificial as you speak, your mind goes blank.
Here’s what you can do about this type of nervousness: i.
Accept nervousness This type of nervousness may happen every time you speak. Accept that nervousness may be your ever-present companion. If you fight your nervousness by saying to yourself ‘I shouldn’t be nervous’ you’ll make it worse.
ii. Get used to it You may suffer from nervousness less as you gain more experience presenting. That’s because your old brain has gradually realized that this public speaking thing is possibly not that life-threatening. So desensitize yourself – take every opportunity to speak in front of a group. 2. Mid Brain Nervousness Our emotions are regulated by the Mid Brain. In conjunction with other parts of your brain, your Mid Brain will make you nervous when you’re reminded of a previous nerve-wracking experience. So if you had an experience at school where you were humiliated in front of your classmates, or suffered an embarrassing mindblank in an important presentation, those strong emotional memories may come back to haunt you.
"If you can readily identify a previous experience which is causing you to be nervous now, the most important thing to do is rationally evaluate how bad it was."
If you can readily identify a previous experience which is causing you to be nervous now, the most important thing to do is rationally evaluate how bad it was. If you continue to tell yourself that it was a terrible, awful experience it will continue to create nervousness for you into the future. So rationally evaluate how awful it was. What were the consequences of it? Here’s an exercise you can do now to put these experiences in perspective. 1. Think of that nerve-wracking presentation experience. 2. How awful was it on a scale of 0 to 100%? 3. Imagine, your little finger has just been cut off in an accident! 4. How awful is that on a scale of 0 to 100%? 5. And now how awful is that nerve-wracking experience compared to losing your little finger.
Most people revise the awfulness of their nerve-wracking experience from somewhere near 100% to somewhere near 0%. They would prefer to relive that nerve-wracking presentation experience rather than lose their little finger. The loss of the finger helps them to put it in perspective. (If you’re happy to lose your little finger, imagine losing your hand, or the finger or hand of a loved one – at some point you’ll gain some perspective). The rational reality is that most of the things that happen to us in presentations are not that bad. They’re nothing compared to the other things that can happen to us in life – like relationship break-ups, loss of a loved one, and serious health issues. The most serious consequences of a presentation going badly are losing a large sale, an election or other contest, or your job (though I’ve never heard of someone losing their job because of one bad presentation). These consequences are disappointing – but not catastrophic. 9 / DECEMBER 8TH 2010 / NZSM
3. New Brain nervousness The New Brain is the conscious thinking part of your brain. Most of us have patterns of thinking that contribute to our nervousness. You can reduce your nervousness by exploring your patterns of thinking. One of the most common patterns of thinking that contribute to the fear of public speaking are demands. Here’s an example of how they operate. A few weeks ago I was running a training course. I knew that the CEO would be one of the participants. I felt myself get a little nervous as we were setting up. When he walked into the room I got hot and my heart started racing. Why would I react in this way? I have a demand around CEOs. It goes something like this: CEOs are really important and I must have their approval. My demanding thought made me nervous. What was the result? I messed up the instructions for a simple
exercise that we do at the beginning of every course and that I’ve done perfectly hundreds of times before! Here are some common demands people have about presenting and public speaking: • • • • •
I must be interesting and engaging I mustn’t leave anything out I mustn’t waffle I mustn’t show I’m nervous I’ve got to be able to answer every question
These demands make you nervous because you can’t guarantee that the demand will be met. To reduce their power, rationally analyze the truth and usefulness of these demands. For example, with my CEO demand I can see that it’s not essential that a CEO approve of me. I don’t demand that everybody approves of me – and it’s irrational to demand that a CEO must approve of me. I can also see that it’s not useful to have this demand as it made me mess up! Fear of public speaking can be debilitating, and can have you avoid opportunities in your life. I hope this article has been useful to you in thinking through how you can best reduce your nervousness.
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TWO MINUTE TOP UP
J ill Konrath, author of Selling to Big Companies and Snap Selling, helps sellers crack into corporate accounts, shorten sales cycles and win big contracts. Visit Jills’ website at www.SellingtoBigCompanies.com
Dangers of The
of
Picking
Fruit
Low Hanging
Lessons learned from the orchards of business By Jill Konrath
I
remember the first time it happened. It was on a Thursday, about 4 pm, and I was worn-out after a day of cold calling. I hadn't uncovered even one viable prospect. Enough was enough! Time to go back to the office and do some paperwork. When the phone rang, I answered it tiredly. But by the time I hung up I was a new person. I had just talked to one hot prospect. Her company was BUYING! Not just looking - BUYING! They needed several new systems to handle their growth. And they wanted to make a decision quickly. "Can we come in for a demonstration," she asked. NZSM/ /DECEMBER DECEMBER 8TH 2010/ /1212 NZSM 8TH 2010
How could I refuse! They came in the following Monday and we spent about two hours together. We discussed their needs and I showed them several possible options. Things seemed to go really well. In parting, they asked me to call back early the next week. Tuesday morning I left a message. Wednesday and Friday too. My calls were never returned. It wasn't till a week later that I finally got my prospect on the phone. She thanked me for my hard work, fast service and excellent demonstration. Then, very apologetically, she told me they'd selected another vendor. I asked "Why," but her answer was evasive and focused on minor details. Of course, price was thrown in too - as it always is when you lose. I'm embarrassed to tell you that this happened to me more than once. And sometimes I invested an inordinate amount of time and effort in those so-called "hot prospects." I coordinated elaborate meetings and prepared detailed proposals. I even rearranged meetings with prospective customers who weren't quite ready to move ahead. Can you guess what happened? That's right. I almost always lost the business.
It's not only individuals who are seduced by low-hanging fruit. Sometimes whole companies are sucked into these 'get-rich-quick' schemes. Several years ago one of my clients introduced a new product targeted at a highly profitable niche owned by their competitor. They were late to this market and, in essence, their product was a higher-priced copycat with enhanced capabilities. In the months preceding the launch, sales reps continually fed marketing stories about all the money being left on the table because the new product wasn't ready. They told marketing about all the prospects who called wanting to know when their new system would be available. Everyone was drooling. So many buyers, so little time. Their entire launch plan focused on the low-hanging fruit. Sales reps, armed with proposal templates and PowerPoint presentations highlighting competitive
Lest you think I'm not too smart, it didn't take me too long to figure out something was wrong. My proposals, presentations and demos were fundamentally sound, so it had to be something else. But what ‌ When I talked to the more seasoned sellers, I was cautioned on wasting my time with 'low-hanging fruit" - in other words, companies who are ripe to buy. They told me that many of these prospects already have made their decision, but are checking the market for two reasons: 1. To prove to higher-ups they did a thorough investigation, or 2. To leverage competitive offers to reduce their preferred vendor's pricing. Yikes! That explained a lot of things. Naively, I had assumed that I had a fair shot at every deal. Learning how to ferret out those opportunities where it was worthwhile to pursue low-hanging fruit was hard. I had to be much more straightforward than I was used to being and ask questions that made me uncomfortable. But by doing this, I saved myself lots of hard work. And, I had more time to spend on prospects where I could win.
strengths, were chartered to go after companies on their "Hot Prospects List." Hard as I tried, I couldn't convince them of the folly of this decision. The seduction was complete. So what happened? In the six months immediately after the launch, very few systems were sold. Their only orders came from existing customers where reps had strong, long-term relationships with key decision makers. Within two years the company quietly exited this market niche because it was too costly to penetrate. The lure of low-hanging fruit never completely goes away. The chance to make easy money is just too seductive. Â I still have to caution myself when I encounter these opportunities. The worst thing about them is the wasted time that could have spent with prospects where my chances of winning were much higher. 13 / DECEMBER 8TH 2010 / NZSM
Your best prospects will be those companies where you already have an established relationship OR where you get in early, before customers are making a decision. In the latter case, by uncovering and developing account needs, you'll build the strong relationship you need to win the order when they're ready to make a change
Lessons Learned 1. In most cases, you can't get into a sales process late and expect to win. If your competitor already has a strong relationship with the customer, they're in the driver's seat. They've likely already established decision criteria that only their company can meet. 2. Be willing to ask tough questions. If your new prospect is ready to buy, make sure you ask them: • • •
Who else are you looking at? Has your company done business with these companies before? Why would you consider switching?
If your prospects express strong dissatisfaction with a competitor, you might have a real opportunity. But if they're just looking around, be wary of investing too much of your time and company's resources trying to get the business. 3. Your best prospects will be those companies where you already have an established relationship OR where you get in early, before customers are making a decision. In the latter case, by uncovering and developing account needs, you'll build the strong relationship you need to win the order when they're ready to make a change. NZSM / DECEMBER 8TH 2010 / 14
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RESOURCE CORNER
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ey Account Management" is a highly practical book with a unique yet simple planning methodology for identifying, obtaining, retaining and developing key customers - the lifeblood of any organization. Fully re-written to reflect the most recent trends and challenges, this new edition will reinforce its standing as the premier book on the subject. Very few books take the long-term, team-selling strategic view of KAM that this book takes, and it is the only book which focuses on implementation rather than theory. Based on real and current experience of companies facing the challenge, it provides tools for use in the real world that will help you to plan your own strategy as you proceed. The case studies span the full breadth of the KAM experience: FMCG, retail, B2B, petrochemical, speciality chemical, service industry, pharmaceutical, IT and financial services. With a CDROM containing ready-to-use application tools, "Key Account Management" has found a global resonance with business practitioners, whilst also establishing itself on many academic reading lists. ď §
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QUICK FIX
Quick Fix It's not what you sell, it's how you sell Silence is golden. Sales people can have a tendency to over communicate. They fill the conversation gaps with excess drivel. Saying too much can dilute the main point you are trying to communicate and confuse the listener. Mark Twain is quoted as saying, ‘The right word may be effective but no word was ever as effective as a rightly timed pause’. You don’t have to keep talking while the listener is thinking. Shut up for a moment, and let the silence convey the message.
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!) 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.
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