 Track Selling Times - February, 2000
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Track Selling Times
The Voice of the Sales Profession
Issue No. 123
February 1, 2000
Published by Max Sacks International,
Home of 100% Guaranteed World Class Sales Training
Developers of the Track Selling System™.
Author/Editor: Roy Chitwood, President, MSI
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Feature:
Old sales management techniques don't work. What does it really take to effectively lead a sales force today?
Sections:
Does integrity have to be sacrificed for the sake of globalization. A USC professor discusses this issue and offers advice on how to deal with some of the problems facing expanding companies.
World Class Sales Management:
"
Taking Charge of Your Distribution Network"
by Mike Phillips
How do you handle an independent distribution network that isn't productive? This article discusses how one sales manager solved this problem, raising sales by 20 percent per year.
Focus on the Professional:
"John Tschohl"
Is poor customer service inhibiting your sales success? John Tschohl looks at what might be killing your chances before you even see the customer face to face.
Book Review -
The Millionaire Next Door
by Thomas J. Stanley and William D. Danke
Ask Roy: Ask Roy Chitwood
Survey - Reader Survey
Newsletter Archives
"Excellence in Sales Management"
by Roy E. Chitwood, CSP, CSE |
In the past, sales management used to be about police work. The manager operated like a watchdog, making sure people came to work, made their call quota, completed the paperwork and stayed productive. Not anymore.
Today, people are either personally or physically harder to control. Even if they are physically close, they often exhibit a resistance to the monitoring of their activities. Much of the time, however, they are in remote locations and communicate by fax or e-mail. They might even be telecommuters who rarely set foot in any corporate office. So how does the sales manager cope with these changing circumstances and still achieve excellence?
1. Your number one responsibility is the development of your people.
This is especially true in sales. Anyone who is a first line sales manager has to assume direct responsibility for the development of all the salespeople under his or her supervision. As well as getting them to sell more, your job entails making each one a better sales professional.
2. Ask yourself, "Are my people working for me, or am I working for them?"
Anyone who answers the former is missing the point of sales management. You are there to help salespeople perform better for the greater good of the company.
3. Focus on team rather than individual accomplishment.
Many times, the characteristics that make a good salesperson don't contribute to first-class sales management. Salespeople typically have great ego needs, for instance, while the manager must take satisfaction from the production of the entire team.
4. Your real task is to nurture and to teach.
Today, a sales manager is more of a coach than a true manager. You must play a significant role in the career guidance and development of the people you supervise. By seeking to instill in each one a purpose to improve their sales ability, you move them beyond money motivation toward becoming a real sales professional.
5. Commit to life long learning.
A few years back, most people stopped learning after school, coasting along on yesterday's know-how. Now, however, continuous education is a requisite of success. The sales manager must lead the way by attending seminars and courses on a regular basis, while, at the same time, discovering the types of training his/her sales personnel need the most to expand.
6. Go into the field, and work with your people.
While modern communication makes it easy to manage from afar, you make a terrible blunder if you fail to stay in the trenches with your sales force. The more high-tech the world becomes, the more people need the personal touch. They also need your expertise to guide them through the rough spots. Often you can't see what's wrong by talking to them. Go observe how they perform, and the solutions are soon evident.
7. Give back to your profession.
Truly outstanding sales managers do far more than look after the team. Many serve in professional associations or work as mentors for those just beginning. By adding to the overall image and success of your profession, you can do a lot to improve the status of the salesperson in the society as a whole.
Integrity Pays:
"Integrity and Globalization",
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Bill Crookston is president of WHC Associates of Santa Monica, CA, a CEO coaching consultancy specializing in sales, marketing and management. He is also professor of entrepreneurship at USC and frequently lectures to both MBAs and undergraduates on the importance of integrity.
"In today's world, people are beginning to see that price is not everything. Longevity, installation, resale, maintenance and source of supply all contribute to overall value. However, price cannot be ignored, and in this global marketplace, it frequently leads to tough decisions.
"One of my clients has had manufacturing facilities along the Mexican border for about 15 years. Initially he moved there from the US to cut costs. He finds the Mexican people an excellent workforce and has profited well from their labors. As a result, he feels a certain loyalty and boasts of the excellence of their production quality."
"Unfortunately, the low cost of labor in Asia is forcing him to consider giving up and moving his plants to China. He sees a similar pattern to that of the 70s, when manufacturing started to drift south of the border. Only now the production cycle is moving to Asia. He's faced with the dilemma of looking after his workforce versus maintaining a competitive edge."
"He's looked at this problem long and hard, but there is no easy solution. He might broker his production into Asia or convert his Mexican manufacturing to earlier cycles in the production line that stand a better chance of competing. So far he's moving cautiously and is currently engaged in an experiment. One of his managers is empowered to buy goods anywhere. This manager is buying Chinese products and seeing how much more profitable it is, while comparing this to both quality and demand."
"My viewpoint is that there is no right answer. But the important thing is to try to do the least harm. While larger companies can pretend that they are simply trading in human capital, there are careers and maybe even lives at stake. My advice to the client is to take three months to study the issue. I encourage him to ask many questions, talk to people in China and Mexico, do what-if analyzes on the computer and make sure he studies these issues thoroughly from all sides. The important thing is to try to make the decision that does the least harm. If we all did that, it would be a much better world."
World Class Sales Management:
"Taking Charge of Your Distribution Network"
by Mike Phillips, VP of sales and marketing
Crownline Boats Inc, West Frankfort, IL
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I've been in sales for almost thirty years, much of it in the boating business. My company offers 23 models wholesale to about 150 retailers throughout the country who then sell direct to the public.
When the company started up in the early 90s, the marine industry was in a period of stagnation. Despite that we expanded well, until about 1995 when we leveled off for a couple of years. It became obvious that we had to do something to inject vitality into our distribution network. Since we didn't manage our retail outlets directly, we turned to training. We initiated our Crownline University program and arranged a two-year program with Max Sacks International.
We contracted for Track Selling System seminars throughout the country at our expense.
We then followed up with a video that showed selling the wrong and the right way. For this, we flew our retailers into our headquarters, gave them a plant tour and increased their product knowledge significantly. We also urged them to take the video back and set up their own training programs to instruct all their staff. Our customers were thankful for the training, and the effort we showed on their behalf. Over the course of last year, sales skyrocketed 20 percent and are on track for similar gains this year.
I firmly believe this type of program is the best way to make an independent dealership network much stronger. It teaches dealers how to work with the public professionally and arranges the quality of training that most dealers never seem to get around to doing on their own. From the feedback we received, it was instrumental in a change in attitude and philosophy throughout our distribution channels.
Focus on the Professional -
"John Tschohl"
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John Tschohl is president of Service Quality Institute of Minneapolis, MN, specializing in helping companies create a service culture. Wherever he goes, he stresses the importance of customer service.
What is the relationship between customer service and sales?
"The most important part of selling is customer service. If you don't master superior customer service skills, you are gong to have to learn lots of selling skills just to hang on for dear life. From my experience, salespeople are some of the greatest customer service offenders."
Can you give an example?
"An important basic is that you have to respond to inquiries immediately, whether by phone or email. Yet most companies and most salespeople seem to think it is OK to take three to five days. For instance, I sent a letter to the presidents of three travel agencies, stating that I was looking for a new agency. The only response came one month later. For me, that says it all about the level of service I could expect from them. If they can't return a call or letter promptly, how will they handle a real problem?"
Why is responding fast so important?
"When you receive an inquiry, you have a small window of opportunity in which to react, usually only a few hours. While this is second nature to the very best salespeople, most are terrible at it. They are missing the point that the most important element of sales is taking care of the customer."
What happens if you don't respond fast?
"When I recently gave a lead to my stockbroker, it took him a month to call the guy. By that time, he'd sent hundreds of thousands to another broker. This factor will become even more evident with the growth of the Internet. There, if you don't respond within a couple of hours, you are probably too late. Salespeople who don't understand speed will not survive."
How do you apply this personally?
"My company received an inquiry from New York while I was there visiting another client. Although I had little time, I met them that day and concluded a $45,000 sale two days later. If I'd waited until I returned to Minnesota, I'd have lost it for sure."
How does service tie in with the Track Selling System?
""World Class Selling: The Complete Selling Process" is the best book ever written on selling skills. It gives workable techniques that show you how to sell professionally, and it promotes a tremendous service orientation in the sales process. It is mandatory reading at my company, and I send it to distributors and consultants all over the world.
| Book Review - The Millionaire Next Door
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by Thomas J. Stanley and William D. Danke (Pocket Books)
Many high-income Americans live under an illusion of wealth, when in actual fact their net worth is worse than nothing. This book thoroughly debunks the myth the wealthy became that way through inheritance or good luck in Las Vegas. Instead, it defines wealth in terms of net worth, automatically disqualifying high earners who are mortgaged up to the hilt, have the finest cars on monthly payments and who basically owe it all to the bank.
What really makes "The Millionaire Next Door" stand out, however, is that it is based on extensive survey rather than opinion. The authors systematically investigated people of all walks of life and ethnic backgrounds to discover the common denominators of all people of high net worth. Interestingly, the truly rich may not be the people who look wealthy but are those who purchase correctly, invest it wisely and live within their means.
From the perspective of the sales professional, this is excellent reading if you want your hard work to pay off in the years ahead.
| Ask Roy
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Sharon Atherton from Bayside, NY, asks,
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I'm a sales manager running 10 reps who operate in the local area. I can see that several of them need my help. I'd like to go out on calls with them to see where they are going wrong and assist them in improving their sales abilities. The problem is that my boss insists I be on call for meetings and conferences. What should I do?
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Roy's Answer:
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There is no way a sales manager can function effectively from behind a desk. As much as half your job is being out there in the trenches with your sales force, apprenticing them, helping them with difficult customers or just showing that you care. Go over this with your boss, and attempt to resolve it. I'd suggest you be available for meetings in the early part of the day, and then you are free to manage your people and go out on calls.
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| Reader Survey
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1. What do you think of Track Selling Times?
2. What else would you like to see included?
3. If you have sales questions for Roy, or know of a salesperson, sales manager or integrity story that should be featured in Track Selling Times, mail it
to:
The Editor, Track Selling Times
c/o Max Sacks International
2442 NW Market Street #409
Seattle
WA 98107
Tel: (206) 706-4119 Fax: (206) 706-5359
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