Seems simple, but here it is: Let me offer up some definitions of each box: Connects: Cold contact from a list or similar resource Suspects: Contacted and have general need or use for your product/service Prospects: Qualified for need, budget & buying time Quotes: Formal proposal to do business Close: Completed order in response to quote Again, this is a simple concept, but it is of great consequence when hiring salespeople. We call it the Connects-to-Close ratio and it defines many of the parameters you need to use in your hiring efforts. There are many layers to the ratio that impact the sales skills, selling style and aptitudes to measure… Read More
Continue ReadingThe On-Demand Economy
More and more workers are moving away from traditional jobs and towards the “gig” economy of on-demand roles that have a finite time frame. Some of the startling trend from the Yahoo article (emphasis mine): The report said the number of independent workers in America is expected to grow from 30.2 million to roughly 37.9 million in 2020, in part due to businesses seeking flexibility and also because young adults are more comfortable in the lifestyle. Adding occasional independents, the projected number of US adults working independently will grow to an estimated 54 million or nearly 45 percent of the private, non-farm workforce, the group said. I’m not sure what… Read More
Continue ReadingThe Money Trap
-Discounting is a hot topic in sales especially in this prolonged, down economy. However, discounting is never the best choice regardless of the situation. Here is a good Eye on Sales article speaking to that point. Here is a good suggestion: The first question I ask anyone who thinks they need to lower their price to close a sale is if they know at least 3 needs the customer has and if they have been able to measure the real value of those needs with the customer. Exactly. The author is speaking to qualifying which is the core of all successful selling. This is why it is of the utmost… Read More
Continue ReadingAdjusting A Sales Process For This Recession
The thought of retiring is going to be a novel idea in the near future, at least according to a new abcnews.com poll. In a recent survey of Americans (my bold): Half the population in this new ABC News poll thinks both job security and retirement prospects in the years ahead will remain worse than their pre-recession levels. Four in 10 also see worsened prospects for the availability of jobs and advancement, and, consequently, their own spending power. No surprise there. The second aspect regarding worsened prospects for the availability of jobs is phrased in a negative manner. However, it is only 40%. This effect occurs in these difficult economic… Read More
Continue ReadingQuoting Is Not Qualifying
I run into this topic often and it is one worth defining. Many companies value quotes as strong sales activity. Now don’t get me wrong, quotes are a step in the sales process and typically one that occurs before a close. However, companies that have under-defined sales processes often choose to substitute quotes for qualifying. Here is what I mean – just because a suspect asks for a quote does not mean that they are a prospect. This applies to customers too. First, let’s define suspects and prospects. A suspect is a company that shows some interest in your product or service but you are not sure of the level… Read More
Continue ReadingShortening The Sales Cycle
Salesopedia.com offers a good article this week on a timely topic – How to Shorten Your Sales Cycle. The author cuts to the quick on an issue we encounter frequently: To begin with, many sales people just don’t know how long their sales cycle is, we ask and we hear things like “depends” (sometime it fits), “it changes” (it always seems longer during Daylight Savings Time), and the all time favorite, “well you know it’s different in our business”. Well it’s not really. Underlying this is the fact that many reps and organizations do not know what their sale looks like, they have not deconstructing their sale, identified the basic… Read More
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