I have a friend who is a Director of Sales for a medium-sized company. A few months ago, he had a major issue with one of his salespeople in another Midwestern state. The salesperson cursed out a customer on the phone (the customer was “pestering” him by calling his cell phone more than 1 time in the same day). He was let go by my friend. Now it turns out that this salesperson is pushing his resume out to prospective employers. One of them called to verify his employment and had some interesting facts. Salesperson claimed to be a Sales Manager (he wasn’t) Salesperson claimed to win the President’s Award… Read More
Continue ReadingManagement Mental Short Cuts
I’m back in my psych book this morning looking for a specific answer to how managers get stuck on “bad” instances from otherwise strong performing salespeople. I’ve seen this effect with some sales managers who have a generally sour impression of a salesperson who seems to be doing well in the role. When I pursue the topic with the manager, I typically hear of anecdotal stories with what seems to be innocuous outcomes. However, the sales manager is still upset by situation. Here is what I discovered in the test book – availability heuristic. Availability heuristic is basically this – making judgments based on how easily instances come to mind. … Read More
Continue ReadingA Secondary Effect Of The Recession
Most people agree that there will be a demand for workers as soon as we start the recovery process (no, I do not subscribe to the idea that the recession ended in June of 2009). Companies are running in a most efficient manner right now due to the fact that they had to cut staff to the bone. Growth/expansion will require an expansion of most company’s workforces. The supply of workers will be limited due to the Baby Boomer retirements and the great decrease in workers in Gen X. Along with this shortage comes another important limitation in the workforce. From the Herman Trend’s weekly email (emphasis mine): “Unfortunately, with… Read More
Continue ReadingROE Over ROI
Here is a somewhat ethereal concept I have been encountering in this present economy. It starts with this – return on investment (ROI). ROI has been the backbone of sales since time immortal. This is the basis of sales in that customers pay the money to receive the solution. As long as the customer views the return on their investment as greater than the investment, they will make the purchase (generally speaking). The top-performing salespeople possess this motivation pattern (called Utilitarian). They view prospects in terms of ROI – how much return ($) will I receive if I invest time to close them. This principle has changed in the present… Read More
Continue Reading10 Commandments Of Successful Sales Selection
1. Always select talent and skills over experience. 2. Do not put the entire burden of the company on this hire. 3. Do not clone yourself. 4. Do not expect to hire perfection. 5. Do not start the process unless you can hire the right candidate today. 6. Do not run the process out of sequence. 7. Do not miss opportunities to see the candidate in action. 8. Do not change the compensation plan during the process. 9. Trust the instruments more than your gut. 10. Do not assume you are the candidates’ only option.
Continue ReadingSinking Stock Syndrome
I made that up, Sinking Stock Syndrome, from some interactions I have had recently with a couple of small business owners. Both owners suffered from this syndrome which had disastrously negative effects on their company, both in revenue and morale. Here is how I define my newly-minted syndrome – an irrational hope that a grossly underperforming salesperson will miraculously turn things around and become a sales superstar. It rarely happens. The problem stems from the business owner who has invested in this failing salesperson. Notice I used “business owners” – I do believe this syndrome is more prevalent among this group as they are closely tied to the business (i.e.… Read More
Continue ReadingGetting Back To The Basics
I’ve been assessing many existing salespeople over the past couple weeks and have seen many different levels of abilities. The ones that stick in my mind are the salespeople who are presently struggling with their revenue production. Sales is one of, if not the most stressful positions within any company. The overt issue with a lack of sales performance is that everyone in the company can see it. The numbers are very visible. One underperforming salesperson I talked to recently has hit a true low point. He’s not certain where to start. I thought about that discussion for quite some time afterwards. The lack of performance becomes a spiraling nose… Read More
Continue ReadingThe Slow Fade Of Strong Salespeople
It has been a hectic week of crashed computers, new blogs set up, new video integrations, business deals, etc. Suffice to say, I have been worn out by the myriad of tasks. In the middle of this busy week, I talked to a strong salesperson I know who has been quite successful in an industry that normally would suffer during this economy. Unfortunately, he is starting to fade in his current position. What I mean is that the company is grinding him down to where he is looking for another opportunity. The main reason is disgustingly simple – he can successfully close deals in this economy, but his company struggles… Read More
Continue ReadingDouble Dippin’
I’ve come across two different instances of a nefarious sales trick that is reviving itself in the telecommuting era. Two different customers recently shared accounts of salespeople who were on their payroll and the payroll of another company. This stickler is that they were allegedly full-time employees for both companies. In one instance, the salesperson was on the West coast while headquarters was back in the East. This guy set up a small office in an office building and had a slider sign on the door. He would simply slide it to reveal the company he was representing that day for that appointment. He also had a company car from… Read More
Continue ReadingBite-Sized Selling
I have come across many articles recently that promote selling tips in this recession. One common thread runs through all of them – chase smaller deals. Here is an example from Inc.com – 5 Tips for Selling a Service Now: “The big change for us in 2009 is that we are more flexible on minimum amount of an engagement that we’ll pursue,” says Gay Gaddis, the founder and CEO of T3, an Austin-based advertising and marketing agency that specializes in digital media. In years past, her firm only went after client engagements that were worth between $1.5 million and $2 million. Now, “some larger clients are breaking RFPs into smaller… Read More
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