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December 27, 2006

60/40 Rule Applies To Sales Recognition

By Jim Berkowitz, CRM Mastery

Here are several excerpts from a press release that references a recent study on sales recognition best practices:

Motivating sales people requires a mix of 60% tangible, 40% intangible incentives, according to data from research and consulting firm Best Practices, LLC.

Intangible rewards - that are clearly important to motivation - include special recognition by management at team meetings, praise in private and mails from direct managers. By contrast, tangible rewards are such items that can be touched or consumed such as gift certificates, trophies and plaques, and cash and dinner for two. A summary of the report "Best Practices in Sales Recognition Programs," can be found here.

The most frequently used tangible rewards are gift certificates, plaques and cash awards, followed by dinner for two. When asked if there was a ceiling on cash payouts, more than half (54%) of surveyed companies said there was.

This research (available as a fee download) profiles 84 companies across industries on the prevalence of intangible and tangible rewards as well as:

  • Tax implication of programs
  • Communication of programs, including website support
  • Presence of formal measurement of program
  • Lessons learned

    "In this research, respondents strongly stated that a link exists between the motivation of staff, a system of rewards using tangible and intangible recognition and increased performance," said Jon Easter, director of Best Practices, LLC's Business Excellence Board.

  • December 20, 2006

    Turning Sales Into Science

    By Jim Berkowitz, CRM Mastery

    There's so much more customer management technology available then just the "big" CRM software suites. Here's an article by Alex Salkever, Turning Sales Into Science, that covers some of the most interesting new technologies:

    Remember the bad old days of sales-oriented technology? Customer relationship management systems that cost a fortune to install and crashed easily. Downloadable lists of sales leads filled with old or bogus data. E-mail marketing tools that targeted the wrong consumers. And on and on.

    Fortunately, software firms that target small companies with sales tools have been getting smarter and smarter. Following pioneers such as Salesforce.com and NetSuite, a new generation of companies is offering easy-to-use, cheap (indeed, often free) technology that can supercharge the performance of your sales force--with minimal training and virtually none of the heavy-duty installation associated with the CRM systems of the past.

    With lead-generation and networking services, e-mail marketing products, relationship managing tools, and other bells and whistles, it's now possible to turn a sales operation into a gleaming high-tech machine. Here's a quick tutorial on some of the new tools and a nine-step guide to launching your sales force into the future.

    1. Build a bigger Rolodex

    The Products - Jigsaw, Ziggs, ZoomInfo, Spoke

    How They Work - It's said that a salesperson is only as good as his or her Rolodex. Fortunately, it's now easy to have a much, much bigger Rolodex. There are a number of websites that invite businesspeople to upload and share their contacts with one another.

    2. Network more efficiently

    The Products - LinkedIn, Ryze, BranchIt, CompanyClick

    How They Work - Unless you're selling something like video games or skateboarding gear, you're probably not going to have much luck marketing on MySpace. Fortunately, a number of social networking services geared toward small business have emerged. They promise to change the way we network forever. Palo Alto, California-based LinkedIn, for example, is often described as MySpace for businesspeople. You won't find videos, MP3s, or other flashy media on the site's bare-bones profile pages. What you will find are resumés, people's professional affiliations, special interests--and lots of them.

    3. Find better sales leads

    The Product - Spoke

    How It Works - In years past, marketers approached lists of sales leads with extreme wariness. They'd take a deep breath and pray that the data was decent. Spoke removes at least some of the faith from the equation. The company takes existing list data and checks it against online information, even going so far as to send e-mails to individuals on lists asking them to validate their information. It then maps relationships between list leads and salespeople in a manner similar to what LinkedIn does, and allows users to search by such criteria as industry, location, and revenue. Checked against multiple sources of data, these new lists eliminate a lot of bad information.

    4. Make the buyers come to you

    The Products - Leads.com, Ingenio, eStara

    How They Work - a number of start-ups targeting local advertisers are providing new vehicles for local online advertising. Leads.com, for example, converts a customer's online queries into e-mails that are sent directly to an advertiser's in box. Then there are pay-to-call services such as eStara and Ingenio, which convert online ads into phone calls by posting a toll-free number in a Web ad. Clients are charged a certain amount per call, and, unlike with typical phone calls, businesses can track the origins of each lead--and, as a result, the efficacy of the ad campaign.

    5. Focus on your best prospects

    The Products - Eloqua, ExactTarget, VerticalResponse

    How They Work - All sales leads are not created equal. The challenge is identifying the promising ones and giving them top priority. In the past, this involved syncing sales data with often pricey demographic information, a service that was well beyond the reach of most small businesses. But in a Sales 2.0 world, that's no longer the case. Software from companies like Eloqua and ExactTarget lets marketers sift through data contained in, say, an online sweepstakes entry, to more easily identify likely buyers. The software ranks your leads, based on a complex analysis of e-mail addresses, the tenor of a response, and other factors. That makes it easier to focus subsequent campaigns on better targets.

    6. Warm up your cold calls

    The Product - Before the Call

    How It Works - So you've got your target list. Now it's time to start selling. Think a minute before you pick up the receiver. Do you know anything about the people you'll be calling? Do you know anything other than their phone numbers and job titles? The imperfect remedy for this vacuum of information has been a Google search. No longer. Services such as Before the Call automatically scour the Internet, data from providers like Hoover's and Factiva, and their own proprietary database for news articles. Before the Call can be integrated with CRM systems from Salesforce.com and Oracle OnDemand, making it easy to keep databases up-to-date and full of new and timely information.

    7. Get more out of your salespeople

    The Products - Landslide, ShareMethods

    How They Work - Managers have long sought to manage their salespeople. And salespeople, being an independent lot, have tended to dismiss such efforts as meddling. Indeed, that's been a huge problem with CRM systems, which require salespeople to spend too much time entering data into cumbersome and crash-prone systems. But new so-called guided selling is now adaptable enough to automate and provide a flexible script for the sales process while making the lives of salespeople easier. These guided selling programs incorporate elements of traditional CRM and contact management but also add some new tricks to make the sales process run more smoothly--giving sales staffers what they need, when they need it, to close a deal.

    8. Hold your (potential) customer's hand

    The Products - ExactTarget, Silverpop, Epsilon Interactive, Constant Contact

    How They Work - E-mail marketing often has meant building as big a list as possible and hitting the Send button. However, smart marketers have realized that campaigns work better if you can customize an e-mail pitch to fit a particular customer's needs, rather than cramming a single sales pitch down everyone's throat. These systems also boast sophisticated tracking and analytic capabilities, which help marketers develop a better sense of which triggers will cause potential customers to hit the Buy button.

    9. Turn new clients into repeat customers

    The Products - Vontoo, VoiceShot

    How They Work - If you've already won a client's trust, it ought to be relatively easy to sell him or her more stuff. Alas, in practice, the repeat sell can be tricky. How do you reapproach a client who already has written one big check? When is the best time to do so? While timely e-mails might work, a simple phone call is often more effective. Not that you can call all your customers, but now, for the first time, smaller businesses can afford to send automated phone messages to targeted clients. With these products (which cost about 10 cents a call), a salesperson or business owner calls a toll-free number and records a brief message with a sales pitch. The message is uploaded to the Internet and broadcast using a voice over Internet protocol system to anywhere from a dozen to thousands of customers.


    For much more on these technologies, check out the complete source article. Also be sure to check out the CRM Mastery Technology Solution Directory where you'll find these solutions and hundreds more.

    December 15, 2006

    What's so uncool about Farmers?

    Harvesting_2 The companies I talk to are always looking for sales "hunters".  It's almost a sure thing that if a sales candidate says they are a "farmer" then they are out.  But why are farmers so uncool?

    Hosting Brain Carroll's webinar reminded me of the importance of lead nurturing.  It's clear from Brian's research that companies that stay-in-touch with target buyers greatly increase their revenue (one piece of data: leads that are not ready to buy today are 77% of all leads coming in to your company.)  But lead nurturing is another way of saying farming.  So companies that utilize only hunting techniques will do far worse than companies that farm.

    If we want our sales outcomes in the future dramatically improve, perhaps we need to think of our human history in agriculture.  Once upon a time there was only hunting - no farming.  Many companies still run their lead generation efforts like early man, foraging in the forest for wild berries and boar.

    Here's a very brief history of agriculture I found on a Rice University website. The beginning seems to have many parallels to how sales and marketing works in many companies:

    Before agriculture, people lived by hunting wild animals and gathering edible plants. When the herds were plentiful and the plants flourishing, life was good. But, when the herds migrated elsewhere, people had to follow them and often discover a whole new set of plants to supplement their diet.

    This "feast or famine" lifestyle had its definite drawbacks including starvation.

    Eventually, people decided that life would be a lot easier if they always had the animals with them and if edible plants or their produce were always available.

    So are farmers so uncool?

    December 11, 2006

    10 Tips To Help New Reps Increase Sales with CRM

    Here is a summary of an article by Elizabeth Millard, 10 Tips To Help New Reps Increase Sales with CRM:

    Automating the sales process is one of the most important functions of a CRM system. In fact, much of today's CRM software has its origins back in the mid-'80s and early '90s, not as "customer relationship management" software, but instead as "sales automation" software.

    Although much has changed over the past 2 decades, the goal of sales automation software remains the same: make it easy to help sales reps help themselves, and their customers, to increase sales. CRM software is designed to accomplish this goal in two ways: by automating redundant parts of the sales process, which saves time, and by putting all the necessary information right at the fingertips of the sales team.

    Part of the challenge for a sales manager is getting new reps up to speed so they can get the maximum benefit out of their company's CRM system. There are still many salespeople who have never used CRM software. And, even if someone has used CRM before, the implementation is usually quite different from one company to the next.

    Of course, after new reps have been trained on the basics of using a CRM system, it's time to help them hit the ground running with proven methods to increase sales. We asked some of the industry's leading CRM gurus for advice and came up with these ten tips to help you leverage the power of CRM to boost sales and keep on selling.

    1. Get a complete view of customers and prospects
    2. Give service personnel more CRM power
    3. Build in more automation
    4. Go back to the training room
    5. Bring together marketing and sales
    6. Create incentives for customer data input
    7. Consider a different interface
    8. Create customer success stories
    9. Use a digital notepad that ties into the system
    10. Keep an eye out for emerging technology