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July 31, 2007

Moving Toward a Culture of Sales

By Richard Fouts

"We need a culture that values selling," is a phrase bantered about when organizations are perceived to be getting in the salesperson’s way. But how do you change an existing culture (whatever it may be) to a sales culture? Most organizations believe that if the CEO and VP of Sales communicate the importance of selling with enough conviction it will convince the rest of the organization to rally around anything sales related. In short, they hope the culture will adapt.

While some of this may work, today's organization simply doesn't have the time. And it's never a good idea to bet your future on hope. While something like a “culture of sales” may lie in the abstract, it is ultimately linked to discrete sales processes.

Demystifying Culture
In their book, Execution, authors Larry Bossidy and Ram Charan, define culture as the sum of an organization's shared values, beliefs and norms of behavior. It is the goal of GE, for example, to be either first or second in each business they operate. That translates into behaviors that make up GE's culture, or "way of operating."

When Do Cultures Need to Change?
CEOs set out to change cultures when their renewed vision for competitiveness is inhibited by the values and beliefs of their people. Hence, GE's CEO Jeffrey Immelt believes that, in today's global economy, the key to being number one or two is more about innovation, versus the existing culture, which believes it's all about grinding costs down and increasing share through acquisition. Immelt's new initiatives reward behavior differently. Sure, costs and margins are hugely relevant, but an executive's ability to innovate has taken on a much different level of appreciation in Immelt's new GE.

The Intersection of Culture and Process
Getting people to behave, in a style that supports an executive vision takes more than posters, town meetings and pep talks (which is what most companies try). With every desired cultural attribute, such as "we're sales oriented" lies a series of processes and behaviors that need to be deliberately put into place.

Having worked at both Digital and HP I speak from my own experience. Digital had a strong cultural value of "making your numbers" and missing them wasn't tolerated. Near the end, when executives were presiding over dwindling numbers, the culture didn't change. And neither did the numbers (except that they went down). The pressure on numbers encouraged sales people to sell - including products that customers often didn't need. At HP, satisfied customers was an overriding cultural value. If you blew out your numbers, but had unhappy customers (or co-workers that disliked working with you), you received a bad performance review. If you delivered happy, loyal customers, but missed your numbers, you didn't necessarily get a bad report card. You got advice and guidance on how to get more happy customers.

So before you roll out an internal communications campaign to rally the troops around a new set of desired values, identify the behavior (and processes) that connect your idea of cultural nirvana to a working engine with the cogs and wheels it needs to properly deliver. Redefine reward structures. Map processes around your new vision of what it means to be competitive. Then get the communications campaign rolling. Without process, you have nothing to communicate other than a nice dream.

For some addtional insight on the relationship between culture and execution, I highly recommend the aforementioned book, appropriately titled, Execution, by Bossidy and Charan.

July 10, 2007

Birth of a Conference

By David Thompson, CEO, Genius.com
Geoffrey Moore on Sales 2.0
I’ll never forget my lunch with Geoffrey Moore at Bucks in Woodside when the Sales 2.0 Conference idea was born. We were brainstorming about the profound changes going on in the Sales profession and Geoff pounded the table exclaiming “Sales IS Social Networking!”, making a point about how so many of the traditional offline behaviors of Sales people are now embodied in and improved by the latest Web 2.0 technologies such as social networks and web conferencing.

During this conversation, we drew a new “Sales 2.0 funnel” (see illustration) showing how many of the Web 2.0 technologies are driving a faster, higher volume, incredibly efficient (measurable!) customer acquisition process, from Google AdWords providing anonymous inquiries to a customer’s web site, to on-demand CRM systems making it easier to track pipeline progress, to real-time web site monitoring helping qualify customers faster and offer personalized service, to online communities of customers and sales people trading leads, and web conferencing making it easier for Sales people to “connect and close” with customers on the Web.

Sales 2.0 Funnel
After drawing this funnel, we realized we were onto something really big, but, as I lamented to Geoff, wasn’t well understood by many so players in the market such as press, bloggers (so FEW bloggers talking about SALES!), and most importantly to me, businesses. Too many businesses and journalists just assume that there’s only 2 kinds of Sales people: the Enterprise guy carrying a big bag full of Million Dollar Contracts (“lots of risk in the quarter!”), or a Call Center in India taking $10 orders. The “Sales 2.0 Reality” is there are far more shades of gray between these two extremes, with many many more people and resources being devoted to courting customers online and in many cases handling the entire customer life cycle over the web, using Web 2.0 technologies. I called it the “MySpace Generation meets the Workplace” and Geoff was all over that.

And that’s when Geoff told me we had to “do something” about this knowledge gap, and pull together some kind of forum to help educate the market about all the potential of “Sales 2.0” to transform Sales in businesses of all sizes. He suggested we pull together a group of like-minded companies around the Sales 2.0 theme, and I said as long as he’s the keynote speaker, we’d do it. And thus was born the Sales 2.0 conference…It’s so exciting to see a bunch of forward-thinking companies like Oracle, Cisco/WebEx, Inside View, Landslide, and Genius getting together to make what started out as an overheated brainstorm at Bucks turn into a huge event. Look forward to seeing y’all there!

Sales 2.0 Crosses the Chasm

By Nigel Edelshain, Sales 2.0

The world is catching on!

The first ever Sales 2.0 Conference has just been announced. It looks like it's going to be one big coming out party for the Sales 2.0 concept.

At the conference in October, a whole host of respected technology firms and top sales and marketing executives are coming together to anoint "Sales 2.0" as an official concept.

Geoffrey Moore, the best-selling author of Crossing the Chasm, is keynoting with Michael Bosworth of Solution Selling. It's Geoffrey himself who is a believer in Sales 2.0

Huge thanks to Genius.com and their CEO, David Thompson, for being the force behind the Sales 2.0 conference and for "seeing the light" that Sales 2.0 is real.

Hallelujah!

July 02, 2007

Survey Reveals Chronic Lack of ROI Measurement

By Tamara Gielen

A survey of UK email marketers has found that almost half of companies are failing to track their return on investment from email.

The Email Marketing Industry Census 2007, published by E-consultancy in association with Adestra, surveyed more than 500 in-house and agency respondents across different industry sectors.

The overriding and most worrying finding is that 47% of in-house marketers are not measuring how much revenue their email campaigns are making despite a high level of investment in this channel.

The Census also found that, on average, companies are spending a fifth of their online marketing budget on Email Marketing (second only to website spend).

But despite this high level of investment, 81% of email marketers say they are not using email marketing as effectively as they can, compared to only 13% who are.

Linus Gregoriadis, Head of Research at E-consultancy, said: “Email is such a widely used weapon in the online marketer’s armoury that it is surprising that so many companies are struggling to use it as effectively as they would like. Tracking return on investment is crucial but too many organisations are not doing this.”

He added: “The Census shows that a major part of the problem is lack of skills and training. Some 42% of respondents said that this was an issue.”

With its major sales and communications potential, and relatively low cost, email marketing is undeniably a fast growing industry: 78% of companies are set to increase their email marketing spend (according to DMA, November 2006); and the email services market is growing at 20% per annum (according to E-consultancy’s Email Marketing Platforms Buyer’s Guide).

However, the growth cannot continue in the longer term without the systems in place for tracking the results back to spend.

Given that £178 million was spent in the UK on email marketing platforms and services in 2006 (according to E-consultancy), the findings of the census suggest that up to £84 million of this investment may be untracked marketing budget which may or may not be working.

Paul Crabtree, Marketing Director at Adestra, said: “It is critical for future growth, and makes basic business sense, to be able to measure ROI. In fact, it can severely stunt growth if you can’t measure ROI as it will make proving the business case for extra investment almost impossible. The point is that email marketing is probably the most direct channel to be able to measure ROI – and it is a relatively simple process to enable it.”

Of companies that were able to measure ROI, the figures are promising: more than half of company email marketers (55%) say that their ROI from email is three times or more. Almost a third of company respondents (32%) say that their ROI is five times or more.

Other findings from the Census include:

Lack of skills & training is perceived to be the biggest barrier to effective email marketing. Some 42% of respondents viewed this as a problem. The next biggest barriers to effective email marketing were lack of budget / finances (39%) and lack of strategy (36%).

More than half of Company Email Marketers (57%) said their organisations were using less than 50% of their email systems’ functionality. Less than a third said they were using more than 50% of their email systems’ functionality.

Organisations are being held back by their inability to integrate email with other sales & marketing activities. Three quarters of respondents said there is 'some integration but room for improvement'. One in ten respondents said there was no integration at all and only 12% said 'they are on top of this'.

The report is available for download here.

Asking for Feedback Must be Hard

By Jim Berkowitz, CRM Mastery

In his This Must Be Hard post, Seth Godin wonders why it's so hard for people to follow up after a product or service sale to make sure that everything with the customer is going great:

The reason it must be hard is that so few people do it.

“How was your dinner last night?”

Follow up. Not follow up to sell something, just to know. Just to ask. Just to set things right if they were wrong.

The fancy restaurant knows my phone number. Why not have the owner call me the next day just to ask?

The doctor knows my number. Why not call a week later to see how that broken arm is mending?

The accountant knows my number. Why not check in to see if the taxes went out the door okay?

If you really want to generate those referrals, don't ask for a referral, ask if everything was great. Offer to help. Do it in a gentle way, with no strings, no additional add-ons, no sales pitch. If you really and truly care, why not ask? Not a form, not a survey. Just one caring person, asking. Not that hard, actually.

Lora Adrianse chimes in on her Your Customers Matter…Don't They weblog with her Why Businesses Should Ask For Feedback post:

Fewer than 2% of business people make the effort to initiate meaningful conversations with their customers to get feedback on how they’re doing.  The scary part is, by not asking, you don’t know what you’re missing.

What are the benefits of asking?

  • It shows that you care
  • You know (vs. guess) how your customers feel about your service
  • You get the opportunity to recover from things that may have gone wrong
  • You know what you’re doing well
  • You can pinpoint processes that may be broken
  • You get factual information to use
  • You’ll get a good idea about what your customers tell other people
  • You get the chance to strengthen your connection

One of the most common questions we get asked when we are planning a customer survey project for a client is what kind of response rate can we expect? It's a reasonable question given that many companies have a history of getting meager response rates. Do you want to know how to significantly increase customer participation in your future feedback intitives?  Show your customers that you care all the time…not just when you want something from them.

Sales Operations Celebrated

By Jim Berkowitz, CRM Mastery

If you are like most sales executives, it's easy for you to name your best salespeople. Great salespeople drive great sales results, but a great sales department is more than just having a few big hitters. Great sales organizations are built on well-tuned and aligned sales management systems. Whether you have a small or large sales force, you need superior sales operations support to be successful.

Sales operations are a set of functional activities that support the sales organization. In small companies, these functions are often shared among individuals. Larger sales forces need a dedicated department to provide professional and continuous sales operations support. For mega sales entities, sales operations becomes a major resource, often with its own vice president directing the efforts of sales operations specialists. Sales operations functions fall into six groupings:

Measurement and reporting: Keeping score is a fundamental sales operations task. Sales managers needs sales reports, budgets and sales projections. More advanced programs can create sales dashboards to provide continuous tracking of results, which need to be shown to every level of field management. Web-based reporting simplifies this task.

Talent assets: Hiring and keeping the best people requires well-defined systems to recruit, train and develop top sales talent. More complex sales forces need career path management and succession planning.

Accountability management: Assigning sales ownership and rewarding results ensures accountability of efforts. Accountability management includes systems for quota allocation and management, sales crediting, territory/account assignment and changes, and sales compensation.

Communication: Creating successful customer messages requires engaged partnership with product management. Business development efforts such as sales campaigns and trade shows help create leads for sellers.

Provisioning: Using technology to its fullest potential provides the sales force with at a finger's touch access to sales force automation, customer relationship management, mobile communications, customer service solutions, expense management and issue reporting.

Strategy planning and deployment: Ensuring sales force alignment between customer needs and product divisions' ambitions requires serious investments. Multi-dimensional buyer segment analysis creates opportunities to re-examine sales channels, organization structure, job design, headcount allocation and annual forecasting.

To congratulate a great sales department, acknowledge and reward the great sellers, but celebrate the behind-the-scene sales operations solutions that make it all possible.

Do you Ask Permission? Your Credibility Depends on it...

By Michael Port, Book Yourself Solid

It's been over 7 years since Seth Godin's Permission Marketing made its debut.  The book - and the concept - are such household names in the small business and marketing community, it's hard to believe that someone could NOT know or heard of Seth Godin and Permission Marketing.

Judging from the content of my inbox today, it's time for Permission Marketing refresher course.  It seems that many business owners these days are not asking permission.  That is, they have stopped asking, never asked, forgot to ask or consciously chose not to ask permission.  Permission to send newsletters, email promotions and other invitations to buy their product or service.

By mid-afternoon today, I counted no less than 7 email newsletters in my inbox that I didn't ask for. Didn't subscribe to.  Didn't give my permission for the authors to send.  And, that's just the newsletters...a found a few other promotional emails I didn't ask for either.

I wasn't so frustrated (although it's annoying to have 10 more emails in my overfull inbox) by the additional 5-10 emails today...rather, I was perplexed, confused and even a bit sad for these service professionals.

Perhaps they have forgotten what it means to ask permission to follow up and to keep in touch with prospects and colleagues.  Maybe they forgot about Seth's work.  Perhaps they never read the book in the first place.  Perhaps they don't know...I certainly hope that's the case.

While it may not seem to be that big a deal, sending unsolicited newsletters, promotions and articles is a big deal.  And potentially a big blow to your credibility.  Without permission, you are more of a rude interruption...an unwelcome presence in the inbox and in the mind of the recipient.

Trust me.  It won't do much for you if you are trying to build trust and credibility with everyone who received that newsletter...a newsletter they didn't request.

And, just because you know someone from a networking group, an association, or a business mixer doesn't mean they have given you the green light to send them newsletters, tips and strategies.  A few of the newsletters I received today are from two business owners I know - and actually like.  But, knowing and liking them doesn't equate to me giving them permission to send promotional emails.

If they would have asked, I would likely have said yes.  But, now that I have received several unwanted emails, I am not so sure now I would give them permission.

Sound too harsh? Let me explain.

In order for a potential client to buy from you, take advantage of your services or even send you a referral, something else has to happen first.  They have to know you, like you and grow to trust you. And feel like they have a personal connection to you.

If you send an unsolicited newsletter or promotional email, that opportunity to build trust is lost. They may still like you, but that level of trust is compromised.  After all, if they can't trust you to ask permission, what else can't they trust about you?

When it comes to building relationships with prospects and clients, it is better to first ask permission (as opposed to the conventional wisdom that says it's often easier to ask for forgiveness than for permission).

So, ask yourself: do you ask permission? If so, kudos to you!  If not, just decide from today on that you will trust the process.  And, that there are clients you are meant to serve who will gladly say yes when you ask for permission.

It's time to read Seth's book again.  Or, at least to remember to ask permission.

Michael Port: Biography

Called a “marketing guru” by the Wall Street Journal, Michael Port, has lectured, trained, inspired, and provided
coaching and consulting services to over 20,000 business owners in the last two years alone. As a speaker, he has
headlined events with leaders like Brian Tracy and Tony Robbins.

Michael is the author of the national bestselling Book Yourself Solid, The Fastest, Easiest and Most Reliable System
For Getting More Clients Than You Can Handle Even If You Hate Marketing And Selling and the soon to be released
Beyond Booked Solid: Now, Build a Bigger, Better Business By Leveraging the Power of People and Processes to Make More Money While Working Less. He’s also a contributing author to Success Secrets of the Online Marketing Superstars and Guerrilla Marketing for Job Hunters.

Before starting his consulting business, Michael spent years honing his management skills by working in senior management for some of the premiere health and fitness companies in the country including The Sports Club Company and Clay, the most luxurious health club in New York, where he served as the Senior Vice President of Operations.

Michael received a Bachelor of Arts in Psychology from Tulane University and a Masters degree from New York University.
To learn more visit www.MichaelPort.com

Closing Skills. Necessary? Or Just Annoying to the Prospect?

By Bill Caskey

I was reading Jill Konrath's blog on closing skills. Thought I'd add my 5c to it. There's actually nothing I don't agree with in it.

Here's my spin: In professional sales, you are a catalyst for change. Your role is to create an atmosphere with the prospect where truth can occur. If you're reading this, it's likely you're in a relationship sale (vs. a one time sale). The absolute worst thing you can do is 'get needy' near the end of the sales process by focusing on closing the deal.

If your prospect--for one nanosecond--feels that neediness (or desperation) then their sixth sense kicks in and they begin to wonder, 'what is this person's intent?'

That isn't a good sign. In most sales training, there is a fair amount of learning around closing skills. We are opposed to that. If you're doing everything in the sales process well, upfront, then the close should be a natural part of the decision cycle. Not something that requires a move of some kind.

Here are three closing tips:
1. Get better at finding the problem. Sales is focused on problem  solving. When you are poorly trained at finding the problem, then closing skills won't help you.

2. Have a sales process. The close should be nothing more than the next likely thing to happen as you're guiding your prospect through the process. No magic moves needed. Most sales people have no process.

3. Ask the prospect when they want to begin solving this problem. You should be asking the prospect what he wants to do next in order to get his problem solved. Your wishes should not enter the picture. (Now, remember, I suggested in #1 and #2 that you should get better at finding the pain the prospect has--then the close is when the prospect asks you, "how quickly can you fix this for me?" Isn't that better?

In Same Game New Rules, I talk about the process of selling and how vital it is if you're going to acheive any sustainable sales success. I also say that the prospect needs to be selling you--and therefore, closing you.  That comes along with having a Problem Orientation to your sales philosophy.

Do it the right way and closing skills cease to be an issue. If your sales training program stresses 'closing skills' as an important part of the process, then they're stressing the wrong thing.