I've spoken in the past about the Sales Pipeline and how to use it to increase sales but now it’s time to review it again to see just what the next couple of months will look like.
A sales pipeline is simply a forecast that you or your salespeople prepare monthly which lists the customers that are likely to buy in a given time frame, the value of the sale and when it is likely to close. It is an essential tool for business owners and sales managers to identify where you are and where you need to be in order to meet budget.
Even if the forecast is well below where you need it to be, at least you are aware of it and can take steps to improve it and stay on track. Don't wait until the 2nd or 3rd week of the month when you realise that sales are slow to come in and you need more because it's usually too late.
Typically, I usually ask for a forecast at the beginning of the month and then again on the 15th of the month to see how we are tracking.
The important thing to remember is to use a 'weighting'. You may $500,000 in your pipeline but it's very unlikely that you will be successful in winning 100% of them so the forecast will be inaccurate. A weighting is simply a % that you apply terms of the likelihood of winning the sale. Here is an example of how to calculate:
Using this example, the salesperson needs to add more sales into their pipeline to ensure they reach their sales target of $100,000.
As a guide to the Probability you could use
Initial Communication - 10%
First Meeting/Presentation - 20%
Proposal Given - 60%
Negotiation/Verbal Commitment - 80%
Closed - 100%
Most CRM/Database packages (I use ACT or Salesforce.com) include Sales Pipeline management but it can be as simply as listing them on an Excel spreadsheet. Here are a couple of examples from Excel to get you started
Solutions Sales:
http://office.microsoft.com/en-s/templates/TC011457101033.aspx
Product Sales:
http://office.microsoft.com/en-us/templates/TC011457181033.aspx
This sales article was written by Karen Andrews,
Director of Shine Sales Solutions, a Sydney based Sales Coach and Sales
expert that works with businesses to increase their sales through
strategy development, sales coaching and mentoring.
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Smooth Sailing or Storms Ahead ? How to use the Sales Pipeline to predict your future
Overcoming the fear of Sales
For many people, just the thought of sales evokes terror and fear. Many business owners and salespeople that I have met and worked with have experienced some type of fear relating to sales or the sales process and typically, it’s a "fear of rejection".
When I started my sales career, I faced the similar fears but mine was around cold calling and the fear of rejection over the phone.
I would only cold call as an absolute last resort or when my Manager forced me to do it. Funnily enough, once I got through 2 or 3 calls I was on a roll and I would be successful in making appointments. The hardest thing for me was to just pick up the phone and start dialing the number. It didn’t take me long to realize that calls lead to appointments, appointments lead to quotes and quotes lead to sales. Over time, I got better and better and I knew how many calls I had to make to get appointments that would ultimately lead to sales. So my biggest fear became my biggest strength.
There are far too many people who are not achieving their sales targets, revenue growth or personal goals simply because they are allowing their fear to take over. When you learn to overcome this fear, back yourself and give it a go, you will be more successful. This success will inspire you to keep trying it again and again and again.
It’s also interesting to note that rarely, does the negative feeling or fear come true. For example, many people are afraid that if they ‘upsell’ or suggest accessories or add-on products (which is such a simple and effective way to increase sales) they may lose the sale. If it does, it would be extremely rare. The customer has already decided to purchase, so isn’t it simply good customer service to ensure they have everything they need?
Another fear that regularly pops up is asking questions. Just about everyone in sales knows that great questioning helps to overcome objections and progress the sale. However, many people don’t ask good, probing questions because they are afraid the prospect or customer might give them a negative answer or will feel like they are prying or being too pushy (when all you’re really doing is building a complete picture and understanding of their situation). It’s much better to know about these things during the sales process so you can do something about it, rather than finding out right at the end when it might be too late.
So what can you do to overcome your fear in sales? There is no magic answer or quick fix that will work for everyone but there is one thing that will absolutely make a difference.
Push your fears or concerns aside and just try
When you try, be realistic in your expectations as it may take you several attempts before you begin to get better.
Here are a couple of other suggestions that you might like to try:
- Identify (and write down) the negative thoughts that come to mind when you have to do what you fear most.
- Identify your underlying beliefs you have of yourself and the situation? For example, do you think you are bothering people and they will get annoyed when you call?
- Write a positive belief that will empower you and to overcome it. For example: ‘What I have to sell is extremely valuable and can really make a difference to the business (staff/situation/life). This is a much better way of looking at it than believing you are annoying.
- Ask a mentor, co-worker or friend to help you or role play with. Tell them what message you want to get across or how you want to sound and see what feedback or advice they can give.
- Never assume that the outcome will be negative and it’s not worth asking or trying. If you don’t ask, you don’t get. For example, if a prospect is showing interest and giving buying signals simply ask the question “Would you to like me to arrange delivery for next week?” or “Would you be free on Wednesday to start”
- Be realistic in your approach and understand that sales is a numbers game. Not everyone that you speak with or meet will have an immediate need for your product or service.
- If you do encounter some negative comments, don’t’ take it personally, because it isn’t personal. It’s business.
- Get inspired. It can be difficult to motivate yourself to do something that you are always putting off, so instead look for inspiration from those who have been through the same thing and overcome it. Ask them for advice and tips on how they overcame their fear and what success they got out of it. When you are inspired, you will be motivated to try.
This sales article was written by Karen Andrews, Director of Shine Sales Solutions, a Sydney based Sales Coach and Sales expert that works with businesses to increase their sales through strategy development, sales coaching and mentoring.
If you liked this article, subscribe to our monthly Sales Success ezine. You will learn...
* Easy ways to increase your sales and grow your business
* Simple strategies to sell yourself, even if your not in sales
* How to generate sales easier and quicker!
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Handling Sales Objections
Objections are simply reasons or concerns that a prospective client has as to why they won't make a decision when you want them to. You will hear statements such as:
• Sounds good, let me think about it
• It sounds great but not just yet
• We do this already
• We don’t get any complaints
• Our reps do that
• I’m really busy at the moment and just haven’t had a chance to look at it
• I need to speak to my partner before I can make a decision
• I’ll have a look at it and get back to you in a couple of weeks.
There are many reasons for objections and they are not always negative. Objections are a great indicator and qualifier as to whether you will get the sale - depending on how you handle them at the time. The best way to avoid objections is to ensure you ask the right questions in the first appointment that uncovers your prospect’s real need. This ensures that you are making the right recommendation and can talk about the related value and benefits this solution will address.
The more work you do up front understanding their needs and what they would like to achieve, the less you will have to deal with objections.
Firstly, hear them out don’t interrupt or try and answer their concerns before they have a chance to finish. When they have finished, acknowledge the concenrn by saying "I complete understand how you feel. Some of my best clients felt that way also" or “I completely understand how you feel, this is a big decision and it makes sense for you to think about this."
Secondly, you need to be sure that the objection they give you is 'really' the reason and if you provide a solution to that problem, they agree to buy from you (this way it's a win/win).
For example: “The Price is Too High”
“I understand you might feel that way. If you don't mind me asking, if price wasn't an issue or we can agree on a price that suits your budget, do you feel this is the right solution/product/service for you? or “if we can agree on price, is this something you could order today?”
Additionally, if they seem reluctant to move ahead, keep asking questions to find out why. You might say something like:
• “Is there something else we should talk about?”
• “Is there anything else I can do to help?
• “What needs to happen before you’ll be ready to make a decision?”
• “Can you tell me what your hesitation is?”
• “When do you think you will have a chance to look at it?”
• “If I don’t’ hear back from you by Friday, would you mind if I give you a call?
• “A couple of my clients thought the same thing, would you be interested in speaking to some of our clients to see what difference we are making to their business?
If the customer is willing to move forwards but at a slower pace, you can propose a lesser commitment than the one you originally asked for. Try to get the best commitment that customer is willing and able to make that day.
If you can’t get a customer to make a decision or commit to a next step, try to get a date by which a decision or commitment will be made.
Reminder:
The notes you made on the first appointment will be critical to the objection and closing process and I strongly recommend you have those on hand for each meeting with the prospect. These notes give you the ability to remind the client of the benefits they were looking for by implementing your product or service as well as other information such as problems and challenges that they were hoping to reduce or remove altogether.
This sales article was written by Karen Andrews,
Director of Shine Sales Solutions, a Sydney based Sales Coach and Sales
expert that works with businesses to increase their sales through
strategy development, sales coaching and mentoring.
If you liked this article, subscribe to our monthly Sales Success ezine. You will learn...
* Easy ways to increase your sales and grow your business
* Simple strategies to sell yourself, even if your not in sales
* How to generate sales easier and quicker!
Enter your details at the top of the page or click here
Business Networking Tips
Networking has been good to me over the years. Apart from referrals, it has been the single most successful way of generating new business and building my professional network. It must be the salesperson in me, but there is nothing more rewarding than meeting and connecting with new people who end up as friends, associates or clients.
I just love the randomness of networking and the fact that you never know what fantastic people you will meet.
However, networking can be a very time consuming and very costly exercise if your not maximizing the opportunity you have in front of you. I often tell the staff of clients that networking is not about putting a beer or wine in your hand and talking to people. It’s about talking with a purpose and seeing what common interests or common ground you have.
As my good friend Maurice Gilet from BNI says ‘it’s called net-working for a reason – it’s not ’not-working’!
Here are some tips and information that you might find useful - so get out there networking !
Tip 1
When choosing an event think about what type of companies are likely to attend (large or small) and the position of the person that will attend. It is well known that Senior Managers of most medium to large companies won't engage in business networking (because they think they don’t have to) unless it is for a specific industry event or because the guest speaker and topic are of interest to them. Typically, they send their junior staff or sales staff but, don’t be put off by this because you can still get a lot of the information you need you just need to get them talking and ask some questions. For example:
- What do you do?
- How’s business?
- Is it a large company? How many people do you employ?
- Do you have more than one office?
- What kind of clients do you deal with?
- How do you find new clients (i.e. marketing, advertising or direct sales)
- If I was to contact your company, who would be the best person to speak to regarding……
If you want to get the most out of any networking group, you will need to attend more than once so that people get used to seeing you and talking to you. When you have been about three times you should notice that people will start to recall your name and business name. Using the service of a new contact or sharing business referrals is based on trust and credibility and trust takes time to establish and build.
Tip 3
Have a goal for each event, i.e. two new contacts, one meeting, or two potential candidates. This way you can judge whether the event was worthwhile and whether it’s worth doing again.
Tip 4
If the thought of networking and walking into a room full of strangers is intimidating for you, ask a friend or colleague to join you. This way the event will be more enjoyable and you will always have a ‘safe haven’ for those times when you are on your own or looking for people to talk to. Just make sure that you don't just talk to each other!
Tip 5
Arrive early so you can look at the name tags on the registration desk and see what type of people will be attending. There may be someone attending from a prospective client; by standing near the desk you can save time searching for them by watching who picks up the nametag.
Tip 6
Stand near the registration desk when people are arriving; people may think you are part of the event and will feel more comfortable talking to you.
Tip 7
Most importantly, always remember to follow up the contacts you have met within 24 hours. A simple email to those who just briefly chatted with or a phone call suggesting a meeting to those who expressed an interest. If you don’t follow up the people that you have met, you are wasting the time and effort you put into going in the first place.
Don't forget that I also run a Networking Skills Workshop (in your office or mine) so if you or your team would like some personal attention, click here or call me on 0294376500
This sales article was written by Karen Andrews, Director of Shine Sales Solutions, a Sydney based Sales Coach and Sales expert that works with businesses to increase their sales through strategy development, sales coaching and mentoring.
If you liked this article, subscribe to our monthly Sales Success ezine. You will learn...
* Easy ways to increase your sales and grow your business
* Simple strategies to sell yourself, even if your not in sales
* How to generate sales easier and quicker!
Enter your details at the top of the page or click here
Common Characteristics of High Achievers in Sales
Following on from my article "Solving the Salesperson Puzzle", I thought I would look at some of the characteristics and attributes that high achieving salespeople tend to have over their mediocre and poorer performing salespeople.
Many people believe great sales-people are born, not made but I disagree. Sales is a process that can be taught to anyone and it is simply how the process is applied that separates good from great. Success in sales comes from skill development, attitude, confidence and behaviour.
Personally, I recommend you spend more time interviewing on attitude, behaviour and whether someone has an achievement mentality rather than focusing on skills.
The following list has been compiled based on my own sales experience, observations in dealing with hundreds of sales people and my what I have always known to be true.
- Believe you can
- Have a great attitude and great environment
- Surround yourself with successful, like minded people
- Continue to learn and grow, learn something new every day
- Plan for the day
- Become known as an expert who has valuable knowledge and is willing to help
- Have the answers your customers and prospects need, before they ask
- Recognise and act on opportunities
- Take responsibility for your actions
- Stop talking, start doing. Take Action !
- Make mistakes
- Be willing to take risks
- Stay focused on your dreams and goals
- Ensure you have balance in your life
- Be persistent, don’t give up
- Have a positive attitude, every day
- Avoid negativity and negative people
Do you agree with what I have listed, disagree or have I missed some things? I would love to get your feedback.
This sales article was written by Karen Andrews, Director of Shine Sales Solutions, a Sydney based Sales Coach and Sales expert that works with businesses to increase their sales through strategy development, sales coaching and mentoring.
If you liked this article, subscribe to our monthly Sales Success ezine. You will learn...
* Easy ways to increase your sales and grow your business
* Simple strategies to sell yourself, even if your not in sales
* How to generate sales easier and quicker!
Enter your details at the top of the page or click here
Why isn’t my salesperson selling - solving the salesperson puzzle
Hiring salespeople is a time consuming and costly exercise, so it’s important to get it right and keep it right. Unfortunately, not all salespeople are equal and managing poor performers is a common (and stressful) problem for many businesses, no matter what their size.
There are many reasons why sales people stop selling and why some just don't work out and it’s usually not the ones that they are telling you. Personally, I think the main reason salespeople fail to perform are due to lack of direction and little to no accountability. Salespeople, no matter how professional or how experienced need direction and need and expect accountability.
Salespeople can be your best asset or your worst asset depending on how you manage them. If you have a salesperson that is not performing, here are some reasons that might shed some light on the situation:
All care, no responsibility.
This is where you as the Manager or Business Owner don’t take responsibility for the success of your sales person and you simply dump everything into your salesperson's lap, hoping they will miraculously turn things around. You provide no leadership or support to the salesperson – just set and forget which is an extremely risky thing to do. I see this a lot in smaller businesses where the owner has little to no interest in sales or salespeople. If you employ salespeople, you need to be ask questions, be interested and be involved.
The Business Saviour.
Many business owners secretly hope that a salesperson will be the answer to their prayers; the saviour who will quickly start generating sales and increasing profits. While a good salesperson can make an enormous difference, it won’t happen overnight. You still need to invest considerable time and resources to market your company and to manage and develop your salespeople.
Not communicating expectations.
Salespeople need direction and they need to know exactly what is expected of them. Unfortunately, many Owners and Managers fail to communicate expectations clearly to their salespeople. When that happens, it's common for salespeople to think they're doing fine, whilst the Manager/Owner sees them as under performing and starts to get very frustrated. Communicate expectations (also known as KPI’s, key performance indicators) in writing from day one. Setting KPI’s on sales activities, customer meetings & networking events in addition to sales revenue, will ensure that sales remain consistent month to month.
Lack of Accountability.
When you are reliant on your salespeople to generate sales, why would you risk your business by not knowing how much and when the sales will come in? Holding a weekly team meeting to discuss the sales pipeline and sales activity is a simple way to introduce accountability. If your salespeople aren’t making sales at least your aware of it and can do something about it. Don’t wait until it’s too late. At the beginning of each month, have a performance review with each individual salesperson and discuss their performance for the previous month against expectations. If you have poorly performing salespeople, ask them to achieve specific revenue targets or tasks within a specified time frame. It will help you know whether to keep them or get rid of them.
Remember, if no-one cares what the salesperson is doing or whether they are making sales, why would they?
Hiring the wrong type of salesperson
There are two types of salespeople: those who can win new business (Business Development Manager or Hunter) and those who grow existing accounts (Account Manager or Farmer).
Most businesses want to employ salespeople who can generate new business, because they're already good at developing relationships with current clients. They want the type of salesperson who can make cold calls, build new relationships, and close a deal with a new client. This is much harder to do, requires different skills and has higher salary expectations.Be clear on what you want your salespeople to do so you can match the skills, experience and salary accordingly. If your salesperson isn’t selling, ask them what they have done in the last month to add to the sales pipeline and generate sales. This is where the majority of mistakes are made with salespeople – hiring an account manager find and close new business sales. They rarely have the desire or the skills to do so.
How much is enough?
Coming up with a fair and equitable commission scheme that works for everyone can be challenging. Giving away too much, too easily can make salespeople lazy and lose their hunger (not to mention frustrate the business owner or manager). Others can be too stingy or hard to achieve which does nothing to attract or keep the best performers. Remember, salespeople that win new business should be paid more than those who manage existing accounts. A commission scheme with an emphasis on commission rather than just a base salary will help to retain, reward and motivate ‘hunters’ whereas the security of a higher base salary will retain, reward and motivate ‘farmers’
Poor marketing and tools to support the salesperson.
Study after study shows that having a single approach to sales (such as cold-calling) won’t work on its own. Salespeople need solid marketing collateral, messages and campaigns that get prospects interested to meet with them. A well-ranked & effective website, email marketing and social media are great tools to generate leads that are completely free. They also need training and a solid understanding of the services and benefits you offer. The more time you spend training them and supporting them with marketing efforts, the quicker you will see them succeed.
If you liked this article, subscribe to our monthly Sales Success ezine. You will learn...
* Easy ways to increase your sales and grow your business
* Simple strategies to sell yourself, even if your not in sales
* How to generate sales easier and quicker!
Enter your details at the top of the page or click here
Success comes when you embrace and enjoy change
There is something about hearing the definition of madness that reminds me of sales and makes me smile.
The definition I'm referring to is "doing the same thing, over and over, for ever and ever, expecting a different result". A mental picture pops into my head and I see Salespeople and Business Owners communicating to clients the same way they always have and saying the same things but hoping to get a better response!
Just as the change of season brings changes to the temperature and to the landscape, the GFC (global financial crisis) is also bringing about some change.
- Attitudes are changing
- Businesses are changing
- Customers are changing
- Markets are changing and
- People are changing
It's called the NEW ECONOMY and you are currently living in it, working in it and now you or your business is going to have to sell to it.
- The new economy has new needs and new wants and brings with it new opportunities and new challenges.
- The new economy will respond and react to new messages and new approaches.
- The new economy will stop responding and reacting to old messages and old techniques.
- The new economy will need to be marketed-to and sold-to differently.
This sales article was written by Karen Andrews, Director of Shine Sales Solutions, a Sydney based Sales Coach and Sales expert that works with businesses to increase their sales through strategy development, sales coaching and mentoring.
If you liked this article, subscribe to our monthly Sales Success ezine. You will learn...
* Easy ways to increase your sales and grow your business
* Simple strategies to sell yourself, even if your not in sales
* How to generate sales easier and quicker!
Enter your details at the top of the page or click here
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