Is B2B Sales All About The Money?

$                                                                                                                                Definitely yes. But not how you might be thinking. The entire business- to- business sales conversation should be about innovative ways to help your client make more money or how you can assist them in   saving money or improving profitability. If you do this well, your money will take care of itself! Joe Morone- http://www.worldleaderssales.com

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Teaching Your Clients How To Buy…

no process                                                                                                             The best way to improve your win probability while reducing time, is to teach your clients how to buy your services! Lets use this example:

Salesperson to client-

When we work with____ Organizations like yours, our objective is to increase (sales/profit) by ___%.

In order to determine if this is possible within your organization, we would like to ask the following questions to the following people-

x Questions- Business P&L Owner
x Questions- End Users
x Questions- Procurement/Legal

If we mutually determine that we have a fit, we will move forward with a proposal to begin increasing (sales/profit).

The entire evaluation process can be completed within 5 business days. Lets set up the assessment process with____, _____. _____.

This simple process enables us to build the right business case, gain access to the right decision makers and time-box the entire process in order to motivate the client to participate.

Give it a try, Joe Morone- jmorone@worldleaderssales.com

How Do You Know If Your Message Is Effective?

Important-Message

Your company just developed a new product, and Marketing and Sales did a masterful job of promoting all the product’s positive attributes. However, instead of sharing your vision on the product’s amazing features, your customer says “So What!”.

What do you do? But the more important question to ask is: “How did that happen?”

What are some of the reasons why this occurs and what strategies would you use to train your Sales and Marketing teams to make your new product introductions successful?

Responses

Siddhartha Bhattacharjee

Expert Sales strategist, Business Advisor to Distributors of overseas Principal’s and Mentor to Manager/leaders

The problem is highlighting the product attribute. In present times most products and services connect with consumers if the value message is at an elevated level and not at basic product benefit levels – ( this works better faster thing).

Joe Morone Worldleaders Inc.

Improving Sales Performance for Emerging Technology Firms | Sales Training |Sales Recruiting http://www.worldleaderssales.com

The positioning message within the first 5 seconds should outline the specific business outcome of your product or services.

Example- Sales Training Services- Positioning message- Improve sales results by 132% implementing SMART Selling. wwwworldleaderssales.com

Thoughts /Responses

Sales Compensation – Hunters vs. Farmers

 MONEY

Among your sales force, how you structure compensation plans for hunters and farmers has never been straightforward and simple. You have to incentivize across the staff, eliminate complacency, reward initiative, and make sure the structure makes equitable sense.

Hunters and farmers have different views of the landscape. Hunters are accustomed to dealing with risk, are invigorated by the need to close deals, and are genuinely willing to accept a lower base pay for the promise of higher commission rates and of bonuses for meeting sales quotas.

Farmers are – wait for it – more sedentary. They’ll typically settle for lower compensation packages in exchange for stable income. They tend to be less aggressive in acquiring new business, but they are important for a company’s ability to retain its customers.

The question is, are these jobs of equal importance and, in turn, should they be compensated equally? The answers are yes and absolutely not.

We live in a the land of opportunity, and everyone should be afforded an equal opportunity for success. But opportunity is not the same thing as guarantee – you give people the tools and you let them put things together as best they can.

It’s the same with sales force compensation plans.

Successful companies align incentive with goals. Higher risk means higher compensation so when it comes to hunter compensation we typically see a lower base pay/higher commission. Starting out, this split is usually around 50/50%.

For farmers, a split that’s 70/30% is reasonable. Retaining customers is key, but you want to retain the incentive for adding new business.

Let’s be honest, hunters on average are compensated more than farmers – and that’s how it should be. They incur the most risk, they bring in the lion’s share of new business, they greatly increase the company’s revenue, and they do the most to undermine the confidence of competitors. Fortunately.

 

Sales- What Worked Before Does Not Work in 2014 and Beyond

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Yesterday vs. Today

Not very long ago a salesperson could win their fair share of sales by working hard, developing good relationships, and knowing how to effectively present their products or services.

Today, sales performance is much more complicated. Hard work, relationships and good presentation skills are still essential but are no longer all it takes to win consistently.

Research shows that since 2009 there is a steadily increasing number of sales representatives who are failing to meet their sales objectives. Despite the fact that there are more sales improvement experts, sales processes and, CRM applications than ever before, sales performance continues to decline.

What Changed

The major changes in the marketplace that have caused more than 74% of the organizations’ sales forces to struggle can be attributed to four key dynamics:

  • Greater Scrutiny and Purchasing Controls- Since the economic recession, corporations are requiring more return- on- investment analysis than ever before. This requires salespeople to demonstrate much more business acumen in order to fully develop a defendable business case that can withstand multiple levels of scrutiny.
  • More Decision Makers from More Business Units- Buying decisions today require higher levels of sign off and involve more decision makers. The challenge is in gaining consensus with multiple decision makers who often have competing perspectives, requirements and agendas. Being successful requires the salesperson to lead and facilitate a comprehensive needs assessment and ultimately align a solution that meets the needs and preferences of all stakeholders. Gaining access and developing credibility and buy-in with all of the right decisions makers is one of the most significant barriers in corporate sales today.
  • Difficulty Creating Differentiation between the Top 3-5 Competitors- Perceived or real commoditization of products and services is a considerable challenge. With the abundance of easily accessible information on the Internet, competing providers are now able to gain more competitive intelligence on each other’s offerings. This results in a significant increase in the size of the competitive pool, more parity among the top competitors and greater customer emphasis on price. The challenge is no longer about who has the best product or service, but who can best align their overall offering to best fit the customer’s needs, environments, culture, budget and timing.
  • Global Competition- The Internet has created a global marketplace for buyers. At any time, from any place, via desktop or mobile application, your customers can simply go online, reach across geographic borders, and access all of your competitors’ information and initiate an intense competition. A customer’s power of choice has never been greater. Every salesperson now has to demonstrate world class sales skills and deliver a world class message. This is the reality of the “new normal” environment. Sales people must be able to develop a better business case that justifies why the customer should buy from you instead of the competitors that appear on the first page of their Google search

Changing the Way You Sell.

The good news is that some sales teams have began winning more sales than ever before! The top 26% of the sales force is now winning the majority of sales pursuits because they know how to change their approach to align with the changes in the economy and general business environment.

This is because the corporate demand is higher than ever before for products/ services that are carefully aligned to improve competitiveness, meet stricter compliance requirements and reduce operational costs.

Successful selling teams take a comprehensive approach toward developing their strategy, systems and salespeople. Every member of their sales team knows how to educate their customers how to improve their business results by utilizing their services and products.

The focus of their relationship is on teaching their customer something they didn’t know about their own business, industry or their competition.

Instead of asking, “Who needs to be involved?” they are able to provide guidance on who should be involved from both sides for assessing and implementing a vital solution.

They are selected because they can teach the customer a new way of thinking.

The entire selling process is viewed by the customer as a professional service.

Closing the sale is never about product comparisons and price cutting; it’s about realizing relative and unique value, best fit and fair market pricing.

How you sell has become just as important as what you sell.

Joe Morone- jmorone@worldleaderssales.com

 

 

What Do The Top 6% Salespeople Do Differently?

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Good salespeople have unshakable desire, commitment, responsibility and outlook. Great salespeople have highly developed technical skills for prospecting, diagnostics and closing. Excellent salespeople have what the good and greats have in abundance, plus they know how to gain access to and relate with all levels of decision makers.

This has been discussed many times before.

From my view, the Top 6% Salespeople perform 3 functions better than their colleagues-

  1. Early in the sales cycle they are able to teach their customers how to become more competitive within their marketplace. They focus on, their customers’ customer.
  2. During the evaluation stage, the Top 6% are able to co-facilitate or lead the comparison process with the customer. They are viewed as an industry expert, so the customer trusts them to be part of the evaluation, even helping to look at competitors offerings or internal solutions. They become an insider.
  3. When their business case is made, they have the certainty to close the sale timely and effectively. They know that they are helping their customer improve a business outcome, so they are not at all hesitant about getting the deal completed.

The bottom line is that the Top 6% work with, not on their customers. They are business experts and provide business guidance in order to help their customer achieve a better business outcome.

What are the traits of a less successful salesperson? They are overly concerned with rejection, price variance or being liked by the customer.

More to come

Joe Morone http://www.worldleaderssales.com