Situation: The CEO of a new company is struggling to generate sales momentum. Part of the issue is adequately productizing their current offer. A second issue is building a good sales team and sales momentum within the team. How do you productize an offer?
Advice from the CEOs:
The issue may be that the company is regarding its product and the sales process too narrowly. Look at the sales process in new and different way.
Role play the current sales-to-close process. Have salespeople document what they do. Look for a product concept that appears from this exercise.
Try different models to determine what works best at the company’s current stage of growth.
Position the company’s ability to deliver outcomes. Make it risk free if nothing is produced. “Here’s our package – it costs nothing if we don’t produce results as promised.”
Consider specializing in services that enhance other companies’ sales – a need that is always present.
Look at the car dealership model – lower level salespeople qualify prospects and bring the qualified prospects to more experienced colleagues for the close.
How is the company currently positioned – as a generalist or a specialist? Potential clients more often look for a specialist to help them solve specific needs.
Conduct local surveys to help define prospects’ and clients’ top needs.
Start developing and advertising specialty areas. Add to the list of specialties as the company expands.
To build the sales team look at younger salespeople currently with competitors. If these individuals have been recruited right out of school, they will often look for other opportunities after a year or two.
Target good salespeople who are currently employed. Tell them that the company is interested in getting to know their business and look for salespeople who are good at selling themselves as well as their offering.
Situation: The CEO of a service company is focused on growth, which is driven by new contracts. This, in turn is driven by new sales contacts per week. Sales staff are paid on commission. The CEO wants to assure that quarterly objectives are met to grow the company. How do you maintain focus on quarterly objectives?
Advice from the CEOs:
Track and publish progress against weekly, monthly, quarterly metric objectives and key drivers.
Post charts around the office to maintain staff focus on objectives.
Put up whiteboards that show individual metrics as well as daily “top 3” focus items.
Identify key market sectors where focus will pay off for the company.
It’s OK to take a generalist approach as the company develops a new market sector. This helps to learn the dynamics of that sector.
As sector market penetration grows, develop functional or sector specialties.
Identify and focus on the gaps to company success.
Monitor and generate incentives to increase sales activity. The more fun that is involved in this, the faster the company will close the gaps.
Focus marketing on developing more prospects. Brainstorm creative marketing approaches that will generate prospects. Create a competition to develop the best new ideas with incentives or prizes to celebrate the most successful ideas.
If additional resources are required, currently beyond the company’s budget, investigate adding commission-driven contract resources with strong incentives for identifying new prospects and landing new clients.
Situation: A company is rapidly ramping sales of standard products. However, the rep network that sells the company’s products has had more difficulty selling higher dollar / higher margin custom products. How do you sell both standard and custom products?
Advice from the CEOs:
Make the custom products look more like spec products with adaptability. Create a grid that allows the customer to easily spec the specific product that they need and quickly determine the price of the product. This price can be overestimated at first blush, or scaled depending on the number of units wanted. Consider using a laptop or PDA spreadsheet.
Consider the combination specialist / generalist approach that companies have used successfully for highly technical sales. Put a significantly higher commission on the higher price / margin custom product, and have your own “specialist” reps do joint calls with the distributor reps who have relationships with the customer. With the incentive of higher commissions, a percentage of the distributor reps will take the initiative to learn from your inside reps how to sell the custom product to boost their sales and commission income.
For your distributor reps, separate and optimize lead generation and deal closing from a compensation standpoint to encourage both.
Reps with consultative sales experience, for example selling intangibles such as insurance, may be the best candidates to sell your custom offering.
Offer quarterly training of your reps and distributors to encourage them to sell the custom products.
Consider telemarketing. Support your telemarketers with a well-prepared script to assist them in qualifying prospects and setting appointments for your own reps.