We are keen on data here at Sales 2.0. In our telesales operation we recently reviewed conversion data for some of our projects. From that analysis I can reveal to you today that:

The product you sell influences your prospecting outcomes -- a lot!

OK so that's intuitively extra-obvious. But the way management acts in most companies you would think everything, including a “me-too” product in a very competitive market, could be overcome by the sales force. I've heard countless conversations in senior management meetings and with sales people themselves that imply the sales people are at fault in selling such-and-such a product. I don't think so.

Here's some real world data (and yes, some of it makes us look good and some of it less so, but this is perception as I hope you will see below) Ratio 1: we looked at the number of dials our inside sales people are making to the number of conversations they are having and, Ratio 2: the number of conversations they are having to the number of appointments we could set for outside reps.

Here's what we found "Ratio 1", number of dials to conversations, is remarkably consistent, it ranges from 5-15 but the broad average is 10. So when prospecting to people you don't know ("cold calling" but I have an issue with that phrase) it takes us an average of 10 dials of the phone to speak to a decision-maker/executive (does not include speaking to assistants or others).

This data in itself can spawn a whole discussion, "cold calling does not work" or "cold calling does work" - sort of depends which "party" you belong to. But my belief is this number is going to come out approximately the same for everyone who uses basically this same approach since it’s a function of the buyer not the seller (it’s about how busy and screened we all are today).

Let’s look at "Ratio 2", number of conversations to appointments (aka moving the sales process forward). Unlike "Ratio 1" this number varies widely. For some projects we’ve seen this number as low as three (3) at the other extreme we’ve seen this number as high as forty (40) – big difference. And big (big) difference in the happiness of us and our clients (or if you work in an internal inside sales team, or a team doing your own prospecting, your CEO).

OK, so what was the difference in the projects. Did we do a good job on the projects where "Ratio 2" was good and a lousy job where "Ratio 2" was not so attractive? Did we just have "rock stars" on some projects and "losers" on others? No. We had similar people on each team and we constantly try to improve our processes and results.

Taking a more scientific approach (without the usual emotion attached to sales results) I believe the data shows the main variable in all this was the product. In the cases where we were achieving some great results the products are truly interesting to it's market and at the other extreme the products are in a crowded market and their value propositions are not clearly over-and-above their competition.

Of course, there are ways to improve sales results of even me-too products in crowded markets (we talk about them all the time on this website) through smart sales and marketing strategies but ultimately all firms should realize buyers are smart and sales people are not slackers.

Not every product is created equal. Some products are more equal than others.

Posted by Sales 2.0 at 10:35 AM | Permalink | Comments (1) | TrackBacks (0)

When preparing for that first call, always be clear on how your prospect competes. Why? Because it helps you correctly position your solution – and rise above the noise of your own competitors.

How does your prospect go to market?
Does your prospect compete with product innovation? Customer service? Or operational effectiveness? Rarely do companies compete with all three.

My motives for shopping at service-superstar Nordstrom are satisfied much differently than when I shop at super-efficient Wal-Mart. Apple and Sony pull customers from Dell with product innovation. They do not aspire to offer the lowest price. Nor are they stellar service providers.

If you don't know which of these levers constitutes your prospect’s business advantage, ask. Or read its annual report. It's in there. Effective salespeople demonstrate knowledge of their prospect’s competitive levers to enhance their credibility and get on the same page as their prospect.

Pick up a rifle vs a shotgun
You can shoot your solution and wait for something to stick (in marketing, we call it shotgun) or reverse your approach (which marketers call rifle) by targeting your capabilities and services to the one or two things your prospect does well.

For example...
Consider two insurance firms. One says, "For a good deal, buy our products online." Another says, "If you need us, we're there." Much different leading messages and much different organizations.

The price leader has superior transaction processing and has made big investments in improving the productivity of its online user interface. In fact, it may have outsourced the face of its online store to an expensive expert like TandemSeven, who helps companies build hugely intuitive web-based interfaces that scream with productivity and make online shopping a breeze.

The other firm (that competes on customer service) invests in its brokers. Its sales force automation system significantly outperforms that of our online provider, and it offers far more personal touch and tailored insurance services (at a higher price). Its agents also have superior tools for producing highly customized insurance proposals in record time. One organization invests in customer touch points, the other in broker touch points - to boost the horsepower of their different competitive strategies.

Aligning your solution with the things that fuel your prospect’s business advantage makes you a better advisor and a better consultant.

Remove your own bias
One of my sales clients was hugely disappointed when he proposed an investment to improve customer intimacy at a prospect he had been trying to see for two years. It was shot down and he was hugely confused. After all, it's what he thought they needed to do to be more competitive. But it's not the competitive driver the CEO of his target prospect had selected. And in fact, he lost credibility by failing to acknowledge how his prospect not only competes -- but competes to win. Had he proposed a solution that encourages customer self-service, he would have gotten the ear of his CEO.

Focus on your prospect’s most prized assets
Another way to approach the alignment exercise: identify your prospect’s most prized assets. Is it their large customer base? Their large set of patents? Their supplier relationships? If you help improve (or protect) your prospect’s asset value -- you'll help preserve the things it needs to sustain business advantage.

Notice where Wal-Mart's IT priorities lie. Wal-Mart may be cheap, but not when it comes to making investments in its supplier network - which gives its vendors access to one of the best supplier transaction systems in the industry. Suppliers do business with Wal-Mart at a fraction of the cost of other retailers. The result? For Wal-Mart, a loyal supplier network, with low turnover, that is easier and cheaper to manage - and which grants the retail giant most favored pricing.

So, before you venture our on your next sales call, do some homework and validate your prospect’s competitive strengths and prized assets. It will help you position your solution in ways that bring music to your prospect’s ears.

Posted by Sales 2.0 at 04:49 PM | Permalink | Comments (0) | TrackBacks (0)

A couple of weeks ago I received an email from a young sales guy who wrote:

if you get the chance, could you possibly write about tactics that you have used to get into a companies face? (What do you do as the sales guy with the Jigsaw Info?

I know we all have our secret tactics, but I guess me being in my mid 20's and working with some older sales men, they do seem to go about sales the old fashioned way (knocking on doors etc). They would most likely ridicule me for using a site like Jigsaw/Linkedin.

My approach has been email/phone/mail, and of course Jigsaw helps me with this. If what I'm asking goes against salesman code 101, just ignore my request!

As much as I like ranting about sales topics that are somewhat tangential to Jigsaw, please allow me a week to try and tackle these questions. Jigsaw does pay the bills, after all. (Well, sort of pays my bills- I do live in Silicon Valley.)

First of all I like how the emailer above says “get into a companies face.” Even though his English is questionable (like most sales people I know), he is correct in targeting a company first. If you asked me how to get into a CEO’s face I would refer you to a dentist. Even though you can get a CEO’s email and direct dial telephone number from Jigsaw, don’t be “that guy” that war dials at the highest level possible without preparation. Pick a more reasonable entry point, or several (Jigsaw usually has many), that are at the director, manager or even individual contributor level and find someone in the organization that will answer some strategic questions for you as to what the ultimate decision maker is trying to accomplish. Because you’re not necessarily trying to sell them, they are more likely to open up and help you match your widget with their needs, which is the whole ballgame. Then you use what you learned to arrange a carefully scripted call with the CEO, who will listen to you because you are spot on target with your 15 minutes.

As far as the “old fashioned salespeople” that would “mock you for using Jigsaw/Linked In,” these people are your job security. A recession is coming and grandpa will get the pink slip donkey punch first. The key elements of the sales revolution taking place are all the new communication techniques and information sources that are available to a salesperson (and the customer). You need to be an expert in all of them. Use whatever combination, order and cadence of telephone, email, text, online contact or in–person introduction that works the best for you- try them all. We have salespeople “knocking on our door” at Jigsaw- they sell office supplies and our Admin sends ‘em packing. The days of the silverback (like the gorilla) sales guy doing deals on the golf course and the strip joint are over.

People tell me all the time that “even if I can’t get to the exact person I’m looking for on Jigsaw, I get by the gatekeepers and into the right floor or building.” This is really the whole point of the service- to get you to the starting line. How you run the race from there is up to you.

Posted by Sales 2.0 at 04:40 PM | Permalink | Comments (0) | TrackBacks (0)