MAR 4403 Midterm
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Sales model changing
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becoming more complex because new information about products/services available on the internet
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Portfolio of relationships
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1. Customer 2. Internal Team 3. External Business partners. Must interact/persuade/ sell to all these groups in order to satisfy the customer. being able to successfully influence internal and external partners is the most predictive of performance.
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Inside Sales
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can be efficient, virtually phone, email, webcam.
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Which is more expensive sales force or advertising?
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sales force
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By how much is it more expensive?
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5-10x. Expensive to have humans do things.
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outside sales
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face to face
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Baby boomers leaving the workforce leads to millennials
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to get a job easier, promoted faster, lots of openings. good time to graduate.
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To manage a team you must be able to manage
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yourself
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most likely outcome of anything is
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failure
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Expect failure so you
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plan for it and anticipate it
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Fail Event
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learn, reorganize, reviewing . After the failed event
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Before the failed event
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plan, expect, anticipate, but don't be surprised when you fail, expect it and have a plan when you do fail.
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Hierarchy of closes/objections
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1. buy all the stuff 2. buy some of the stuff. 3. show demo for further consideration 4. referral
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Sales funnel
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have to reach out to more people than will will convert to buyer
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what % makes leads become buyers
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5%
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A sufficient reward
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something that makes you willing to tough it out through the unpleasant stuff
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Common Denominator success Summary
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successful people form the habits of things failures wont do.
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Valuable results
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do things, because of the end. Personably valuable, income, personal goals, do something that's good for community. If you don't have valuable results: don't be surprised when people want to jump ship.
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Effort/work does NOT equal
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Happy. Effort -> Valuable work -> Happy (almost happens by accident)
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10 calls
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3 close: objective success. 7 lost: subjective failure
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Meaningfulness vs Happiness
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Meaningfulness is better than happiness
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Good leaders
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make decisions that require TRADEOFFS
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Newly hired sales reps 1-12 months
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bad performance
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Newly hired sales reps 12-24 months
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better. ignore feedback that you're underachieving because you know you're going to get it in the long run.
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Urgency
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something that requires quick action not necessarily important.
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Importance
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having significant value may or may not be urgent
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newly hired sales people should
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prospect/cold call, take care of yourself an body
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The Urgency Addiction
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Quiz saying if you were addicted to urgency or not
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Stay in Quad
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2
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Quad 1
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urgent and important: crises, pressing problems, deadline driven projects, meetings
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quad 2
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not urgent and important: prevention, preparation, value clarification, planning, relationship building, empowerment
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Quad 3
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urgent, not important: interruptions, some phone calls, some mail, reports, meetings, pressing matters, popular activites
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quad 4
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not urgent and not important: trivia busywork, junk mail, some phone calls, time wasters, escape activites
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1. Key Role
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impending outcome. Go foster development
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2. Important activity
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subscription coffee to the people. talk to offices to keep coffee, profits go faster.
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3. Activity Goals
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two face to face meetings personally. follow up with all three interns on a weekly basis. The process is meaningful.
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How to better development?
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hit your goals. meetings and follow up.
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Puzzles
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1. sort 2. corners 3. outside 4. inside: steps to decrease ambiguity: not the most important thing now but goal.
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Ego drive
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a need to make the sale and throw everything you have into the sale
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Empathy
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ability to feel and understand what someone is feeling
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must have both
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empathy and ego drive. ensures a win-win.
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Most common sales heuristic
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prior sales experience (5 years)
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hiring stars can be bad for company
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the stars luster fades, the groups performance slips, the companies valuation suffers
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find people who can be stars but aren't stars yet
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undervalued
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what you want
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ego drive, empathy, formal sales education
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what you dont want
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not coachable etc
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no ass-hole rule
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Robert Sutton
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if they want the long run
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hires sales education college grads
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if you don't care about long run
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hire experienced reps
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In B2B sales (SAAS) whats an average close ratio for SDR generated leads?
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20% a product company that has differential products to offer
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Common indicator
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closing ratio
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build a
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benchmark
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delegate
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the duty
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give them
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traction
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subjective failure
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indicated by lead indicators (immediate) behavior # sales calls
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objective success
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indicated by lag indicators (long term) after the fact
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Desired outcomes
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sales performance increases (obtained ethically) turnover decreases (lead indicators of turnovers.) satisfaction and commitment.
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must do these things for desired outcomes
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sales performance factors, manager factors, peer factors, contextual factors (if can't control at least monitor these factors)
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Sales performance factors
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characteristics, behaviors, attitudes, beliefs
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Manager factors
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characteristics, behaviors, attitudes, beliefs, manger performance, manager turnover.
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peer factor
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characteristics, behaviors, attitudes, beliefs, performance, turnover > climate/culture : characteristics of the group rather than individuals
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Contextual factor
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training, resources, environment (type of customers, economic conditions)
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IF over promising
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something wrong with factors ex: economy, peers, there own characteristics, etc & figure out how to stop the issues.
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as failure ____ unethical behavior ___
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increases, increases
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although they say they would never do that, if sales managers tries to intervene/encourage them it can make their unethical behavior
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increase. doesnt help > aggravates the situation
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most people will
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fire lairs
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solutions
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cool down periods, conventional training
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Today's highly successful managers or administrators are distinguished not so much by any single set of knowledge or skill but by
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his/her ability to adapt and master the changing demands of his job and careers - by his/her ability to learn
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learned helplessness
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doing the right things, yet it didn't work
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The Experiential learning model
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David Kolb. Concrete experience (consequences, bad habits) -> observations and reflections (feedback) -> formation of abstract concepts and generalizations -> testing implications of concepts in new situations (practice/experimentation)
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all learning starts with
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experience
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abstract conceptualization
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theory -> simplified explanation, road-map, mental model
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Ericsson model
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not necessarily a cycle: abstract concept/ road-map -> deliberate practice -> feedback/reflection/coaching. * try to do correctly, find out how to improve. (bounce around all three before you're ready. if we let you experience too soon you wont like the results)
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road map
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approach, needs ID, present, close. objections overall, never works exactly the way you want but at least you have a starting point.
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"The time to repair the road is when the sun is shining"
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John F. Kennedy
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Your behavior cycle
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Unconscious competent -> conscious competent ->unconscious incompetent -> conscious incompetent.
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Elaboration likelihood model
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explains how people change their attitudes when they hear persuasive messages.
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Central (deliberate)
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influenced by the message: cognitive, deliberate, motivated b/c personally relevant, then use deep cognitive processing to think about topic, IF facts are compelling more likely to convince and keep them convinced. evaluate argument strength, results in enduring attitude change.
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Peripheral (heuristic)
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superficial characteristics. emotional, heuristic. little motivation > only pay attention to superficial characteristics > shallow processing and only temporarily persuaded. looking for shortcuts, passive, results in fleeting persuasion.
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persuasive attempts should consider
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motivation and ability, IF motivated and able, central route will lead to the best results. IF able but not motivated, peripheral route may work better
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SPIN
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we understand customer, make problem bigger, customer better understands their own needs/issues.
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Cialdini: Harnessing the science of persuasion
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liking, social proof, consistency, authority, scarcity. automatic vs. deliberate decisions.
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Automatic decisions
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Cialdini's influence mechanisms. cold calling, networking, establishing relationships.
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Deliberate decisions: customer needs are or can be known
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SPIN, customer Centered Selling, strategic sales
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Deliberate decisions: customer needs are NOT or cannot be known
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challenging, provoking.
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1st week of training
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have to begin with socialization and end with HH (more socialization) 1. product/industry/complete knowledge. 2. sales process/method knowledge. 3. socialization a. differentiate b. purpose/values/mission >define. c. demonstrate where new employees fit in. 4. motivation
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want sales process and method knowledge to be done more
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tend to only go for 2-5 hours
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Training implementation concerns
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sales management involvement, peer/team involvement, focus and repeat, formal mentor, initial buy in, charge/cost, pre-training (book/web), artifacts, follow up >focus and repeat, competition > game-ification (Create game out of this)
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Creating a sense of urgency...
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forming a powerful guiding coalition, creating a vision, communication said vision, planning for and creating short term wins, improvement and producing more change, institutionalizing new approaches.
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Change
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just because people don't like change doesn't mean it's a bad thing, people need to be shown that change is okay and there are several steps to which makes people okay with change and make change possible.
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Abstract to concrete
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sender sends, receiver hears, receiver replies, sender hears reply.
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break down of decision process in stages: 0 satisfaction. invisible stage
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5% claim to be in this stage: nothing is wrong, nothing you can do to influence them.
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break down of decision process in stages: 1. Acknowledgement
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have a problem, room to add value, BUT small. 80% of people are in this stage (this is why we need sales people) key intermediate question: is the problem big enough to warrant fixing? (blue ocean: not a lot of competition, should focus here 85%)
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break down of decision process in stages: 2. Solution Definition
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one problem can have many different solutions. F>A>B. Key intermediate question: what does a viable solution look like? (red ocean: shared 15%)
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break down of decision process in stages: 3 Solution seeking
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comparing alternatives. Key intermediate question: whom do I trust to buy from? (red ocean: shared 15%)
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SPIN selling
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proposes there are four types of questions: Situation(deal with the facts, not too many of these), problem(asks about the buyers pain and focus on the pain clarifying the problems. give implied needs), implication (discuss effects of the problems, most important questions, develop seriousness, increase motivation to buy) need pay off(get the buyer to tell you about the explicit needs and the benefits of your solution offers). good for big B2B sales.
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Challenger sales
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ability to do three things: teach, tailor and take control. focused on pushing the customer out of their comfort zone, the relationship builder is focused on being accepted into it. customer convenience. control, diplomacy, empathy. not nice.
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Customer Centered selling
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creating a positive consumer experience at the point of sale and post sale. a customer centric approach can add value to a company by enabling it to differentiate itself from competitors who do not offer the same experience. engage. background probe, developing probes, impact probes
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New Strategic Selling
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rejects manipulative tactics and emphasizing "process". presents the idea of selling as a joint venture and introduces the decades most influential concept. win-win. mutually beneficial transaction where both buyer and seller achieve gains.
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Fanatical Prospecting
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gives sales reps explanation why and how behind the most important activity in sales and business development: prospecting. #1 reason for failure: is an empty pipeline, and the root cause of an empty pipeline is the failure to consistently prospect.
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The Sandler Rules
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49 rules adapted to help you sell. 1. you have to learn to fail, to win. 2. don't spill your candy in the lobby. 3. no mutual mystification. 4. a decision not to make a decision is a decision. 5. never answer an unasked question. etc
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Reboot sales training
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in training they spend too much time on product and industry knowledge not enough time on selling process and methods. if product knowledge isn't the thing your company wants sales people focusing on, why spend so much training on it?
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Recommendations: simple and low costs ways to better emphasize selling methods and concepts for new hires sales training programs. 1: Stop talking about the product
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Gut the product detail completely out of the face 2 face training. Pre-training book or online on their own time.
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Recommendations: 2: use acontextual role-plays to reinforce selling concepts
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role play focuses on different product than what the new sales reps will eventually sell. therefore forces the trainee to focus on the process of selling rather than selling the product itself.
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Recommendations: 3: Encourage adaptability by varying role plays
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in addition to being acontextual, successive role play exercises vary greatly in terms of scenario, context, and even product. enable them to apply sales methods and concepts in an adaptive way that facilitates performance improvements.
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Individuals with extensive acontextual sales training are
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substantially less likely to leave the company
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acontextual and adaptive role play training helps sales organizations in terms of
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enhanced sales reps performance growth and improved sales organizations.
