While listening to news radio the other day, a Sales Guru serving as a guest of a talk show was asked to offer his advice given the current economic environment. He stated he has some VERY valuable advice for business owners to assist them through the crises - the show then went to a commercial break - as they often do when some good information is to follow.
During the commercial break you could feel the anticipation build. Listeners were gearing up to receive the magic bullet - the solution they needed to manage through the economic peril. After the commercial break and a pregnant pause, the Sales Guru proceeded to share his infinite wisdom...
"You business owners need to lighten up on the sales reps because it's hard out
here. We're in some very challenging times and you need to tone it down a bit."
Afterwards, I could sense the deflation and disappointment from the radio audience. The Guru had just confessed that he too had become a victim of the PAIN CHAIN. But was he onto something???
In challenging times sales leaders in organizations tend to fire up the Pain Chain - when sales results are not realized the pressure gets cranked up in hopes of improving results. The Pain Chain can cause frustration, stress, anxiety, etc…sound familiar? Most importantly, the Pain Chain, if not addressed properly can cause failure. As a Sales Consultant and founder of The McKinnis Consulting Group, I see this far too often and it really is a symptom of a bigger problem – the lack of a sound sales process.
My team and I grew a multi-billion dollar sales organization 50% in just 18 months - we could not have done it through Pain Chain pressure. The key was having an efficient and effective sales process. The cornerstone of a highly effective sales process is simply – Managing Relevant Sales Activity...Not Results. Many companies fall into the trap of trying to manage results when it is actually the underlying relevant sales activity that should be managed. This concept is so important that I dedicated an entire chapter to the concept in my new book Sales is Simple From Luck to Leverage (available on Amazon.com). Here’s an excerpt…
As a salesperson, how many times have you heard the “pick it up” phrase from a
Sales Manager or a C – level (CEO, CFO, etc) Executive? What does it mean
exactly? Do more calls need to be made? Do more hours need to be
worked?
It is the “pick it up” phrases that get thrown around and
scramble afterwards that will suck the energy and life from a sales force if
they are not clear on what to do. It’s like being given a map of London when you
are trying driving from Chicago to New York – it’s frustrating.
Managing your sales activities is not only the key to achieving
high performance sales success it also the key to achieving sustainable success.
What good is making high levels of cold calls if you are not
achieving the desired results?
To effectively manage sales results
the focus has to be on the relevant sales activities. In the simplest terms,
relevant sales activity can be described in 3 categories:
Inconsistent sales results are a function of inconsistent or unmanaged sales activity. Some examples of relevant sales activity are Attempts, Contacts, Appointments and Conversions. The most important of these activities are the Contacts. Contacts are defined as opportunities to initiate the sales process i.e. phone conversations with decision makers, presentations, etc. Experience has proven, increased Contacts lead to increased Results - it's that simple.
An effective sales process should deliver desired results, if not, the process should be evaluated and modified.
Discovering how to ramp up contacts consistently can lead your sales efforts to sustainable high performance levels and a recession proof sales process. Marketing and Advertising are essential for driving contacts. However, if you are strapped with cutbacks and shrinking budgets there are 3 simple things to incorporate into your sales process for your Sales Reps:
1) Reduce the Pain - Create a “Contacts” Goal - determine the goal based upon the desired sales results a.
2) Manage Contact Levels Weekly – It’s a simple fact, what gets measured get done -accountability is everything!
3) Reward Behavior, Celebrate the Sense of Accomplishment – If the contact goals are accomplished, acknowledge them with your team. Some ideas are lunches, dinners, unannounced prizes, etc. Use what’s best to motivate your team. If you’re and entrepreneur – celebrate your own accomplishment the best way you know how.
During these times, be encouraged to maintain your Contacts at high levels. Sales teams we currently work with are operating at very high activity levels, under normal conditions their efforts would place them at 200% of goal. However they are still achieving desired results. Are you?
Reducing the Pain, evaluating your sales process and holding your sales staff accountable are the keys to managing through this economic climate. Please understand, your prospects and clients are still doing business, the question is, are they doing business with you.
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