 Track Selling Times - December, 2001
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Track Selling Times
The Voice of the Sales Profession
Issue No.145
December 1, 2001
Published by Max Sacks International,
Home of 100% Guaranteed World Class Sales Training
Developers of the Track Selling System™.
"We Take the Mystery Out of Selling!"™
Author/Editor: Roy Chitwood, President, MSI
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Feature:
"
Account selling versus account management"
by Roy E. Chitwood, CSP, CSE
-Why do most salespeople spend a majority of their time trying to win new
accounts rather than managing the ones they have? Learn the pitfall of this
practice along with a three-pronged approach for strengthening you customer
relationships.
Sections:
Newsletter Archives
"Account selling versus account management"
by Roy E. Chitwood, CSP, CSE |
Account selling is completely different than account management, and it's
often more important. Consider, for a moment, just how much of your annual
sales are due to first-time customers versus repeat customers. My guess is
that at least 70 percent of your business is from repeat customers. But
where do most salespeople spend 70 percent, or more, of their time? Trying
to win new accounts. These numbers, and this logic, just doesn't compute.
Research shows that when you add up all the costs associated with winning a
new account (advertising marketing, selling, administrative, miscellaneous,
etc.) it's six to seven times more costly than retaining an existing one.
But too many companies task their salespeople with finding new clients, and
then set them up to forget them, once they've been secured.
An effective method to help avoid this pitfall is implementing a
comprehensive, well thought out, customer relationship management (CRM)
application. (In the "World Class Sales Management" section of this
newsletter, I interview a CRM expert for small to medium size businesses.)
But the CRM application alone isn't the most effective way to service your
clients. Instead, there are several critical processes that must be tied to
the CRM application to make it as effective as possible. Why do I make this
claim?
Several conversations I've had with clients and colleagues have led me to
realize that many businesses view the CRM application as the holy grail for
client interaction. More than any other tool or process, these businesses
believe their success for winning accounts, and then managing these
accounts, lies within the capabilities of the CRM application. I disagree.
I believe that in addition to an effective CRM application, the company must
also have an effective prospecting process, and most importantly, an
effective selling process. The mistake so many companies are making is
thinking that all that's necessary is to have a sales process is managing
the data within the CRM application. However, the application does nothing
in terms of making selling a process. It only manages the data entered. And
more importantly, it only manages the data in the way customized by the
program installer or database administrator.
For example, I was working with a client who, during my qualification step,
had told me she already had a process for selling. Intrigued, I said,
"Really," and then asked about the process she was using. After a brief
questioning period, I learned her company didn't have a sales process at
all. The company really only had a process for developing prospects that
utilized a popular CRM application as the motor and managed the prospecting
activity of the company's salespeople.
On another occasion, a colleague told me how a salesperson at his company
called on a client only to find the customer absolutely furious. Apparently
the installation of the equipment the client purchased had been a prolonged
disaster. The many conversations between the client and the installation
team and the customer service team had been documented in the customer's
database record. However, each department maintained secured records for
their client notations. No one outside of the department could access the
information.
Additionally, this salesperson had failed in his responsibility to be of
service to the customer. Even if he couldn't access the information inputted
by his coworkers, his failure to regularly check in with the client was
obvious. And the reason he didn't bother to check in? He was too busy
prospecting for new clients.
Michael Hammer, the re-engineering guru says, "Modern selling is a team
sport and a complex one at that. Winning at it takes discipline and
structure. Making it up as you go along is a recipe for disaster." I couldn't agree more.
As we teach, when selling becomes a process, it ceases to be a
problem ... and until it (selling) becomes a process, it will always be a
problem. Unfortunately, most companies don't have a process for selling, yet
mistakenly believe that a CRM application alone is the solution. It simply
isn't.
As I mentioned earlier, however, when you combine a good CRM application
with an effective prospecting process and a proven sales process, the
results will be outstanding. The prospecting process will be contained
within, and generated by, the CRM application.
For example, prospecting activities such as thank you letters, welcome
letters to new clients, targeted mailings to only clients meeting specific
criteria (500 employees or more, at least $20 million in sales, etc.) can
automatically be generated by the CRM application.
When you combine these
capabilities with a step-by-step sales process like the Track Selling
System(tm), and customize the CRM application to model the steps of the Track
Selling System, your company is now operating at maximum capability.
You could also set up the CRM application to model the entire sales cycle by
breaking it, the sales cycle, into the seven steps of the Track Selling
System, and connecting every department to the same database with equal
access. This way any employee who looks at a client's contact record can
know precisely where the company is in the sales cycle and what activities
are taking place. And more importantly, every employee from every department
can have an updated snap-shot of the client's status and satisfaction level
at any given time.
If your company is using only a standardized prospecting process, a
customized CRM application or a standardized selling process separately, I
strongly suggest it merge the three. While each will prove valuable on their
own, once they're all intertwined, your company will achieve outstanding
sales success.
Integrity Pays:
"Personal Influence:
The Key to Achievement and Contribution"
by Charley Wright
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Charley Wright is the President and Owner of Rancho Cucamonga, Calif.-based
The Wright Benefits & Insurance Services, a company that packages, sells and
services employee benefit plans to small companies throughout California.
Charley is also a professional speaker and has authored articles on the
subject of "Personal Influence". For more information, please call (909)
483-1123 or visit www.wrightbenefits.com.
While we are very aware that as managers, executives, sales people, and
owners, we need technical and product competence, is it possible that we can
be competent in all of these areas and still not achieve our purposes
because our personality doesn't click with a key person?
I have been selling for 18 years prior to taking the Track Selling
System(tm)
workshop. Looking back on many lost opportunities, it's frightening to think
how successful I could have been if I had acquired this knowledge earlier.
But we all probably have more than one story to tell about a key sale or
decision that was based on "personality" rather than competence or technical
skill. How do we work to benefit from this phenomenon, rather than get
frustrated by it?
The real key to being influential with other people is our ability to
communicate, inspire and motivate them to action, and while competence is
certainly an important element in doing so, it becomes most effective when
accompanied by other interpersonal skills.
Sounds good, and certainly not a unique finding, but how do we get there?
How can one increase their personal influence of others? Following are six
strategies:
1. Send Thank You Notes - People love to be thanked, and will typically be
very
appreciative of such a recognition of their efforts. Few employees have been
heard saying that the boss passes out too many thank you notes.
2. Find Ways to Praise and Recognize - Reward people for doing something
right. Celebrate small gains. Who, on your team, deserves recognition at the
next staff meeting or gathering?
3. Give Small Rewards - Having trouble collecting surveys and other
bothersome
data? Reward with a candy bar those who comply as requested. The time and
effort saved can be surprising.
Always Say "We" or "Our" - Instead of "I" or "My".
5. Use Stories and Anecdotes as Examples - We are all inspired by stories,
and
remember them much more than principles and opinions that we hear. Those
from our personal experience are the most effective. They don't have to be
earthshaking. People typically enjoy receiving their leader's insights
illustrated with his/her own experiences.
6. Create a "Vision Statement" - For the group/project/relationship. Let
others
know what you see as the goals to be achieved, solicit their input and get
their "buy-in". Leaders inspire a shared vision, and a "Vision Statement"
defines for everyone the standards that are sought.
Remember, as W. Clement Stone used to say, "Tiny hinges swing large doors."
These six actions will create a stronger bond with important people in our
lives. They will also allow us to be a greater influence with others,
increasing our contribution to their lives, extending our legacy and
expanding both of our opportunities.
World Class Sales Management:
What is CRM and how can an effective
CRM application benefit your business?
by Don Astras
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Don Astras is President and Founder of Grand Rapids, Mich.-based Tempest,
Inc., and has more than 25 years of experience in business, marketing and
sales management. Tempest, an "Emerald" (top 20 percent) reseller of the
Goldmine CRM program, helps clients improve their revenues and profits
through refinements in their sales and marketing planning, processes and
communications and proper implementation of CRM systems. For more
information, please call Don at (800) 291-9210 or visit www.tempestmktg.com.
There seems to be a lot of confusion about what exactly CRM is, and what it
can accomplish. For our target clients which are typically small to medium
size businesses ranging from just a few users to more than 50, I say that
CRM is really the way to build a client relationship from each respective
department: outside sales, inside sales, customer service, marketing,
accounting, etc.; basically everyone who's talking with the customer.
In my opinion, if you're a company using a CRM system, or considering doing
so, the top three results you can expect are:
First, to build customer
loyalty. An effective CRM application is a very good way to 'listen' to what
the best customers are asking for.
Second, since all the client's
information and interactions are documented in one system, the CRM program
enhances teamwork and communication from all departments. It definitely
creates synergy within the company.
And third, you can improve your current
processes (sales, accounting, customer service, etc.) because they can now
be in the same system. The CRM program will give you the metrics to show you
how you're doing. Metrics like, "How many calls until a sale?" "Where are
you losing deals?"
A CRM program can be especially effective when it's tied into a proven
process like the Track Selling System(tm). In fact, we are now beginning to
set-up our CRM installations so that they're on 'track'. Our motivation is
to better understand the sales process so as to help our customers document
the process. Also, doing so gives us an opportunity to add value to our
offerings.
I believe the three most critical success factors for implementing and
managing an effective CRM process are: First, the desired benefits for the
company must be clearly spelled out. Second, there has to be something in it
for the users - an aspect of their job must be made easier, etc. And third,
there must be a process to help people change. We use the model spelled out
in the best-selling book, "Who Moved My Cheese?" Employees must be brought
around to embrace the change, not have it forced upon them.
Focus on the Professional -
"Santiago Martinez"
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Santiago Martinez is an International Marketing Manager focusing on Latin
American markets for Pleasanton, Calif.-based ACCPAC International, Inc.
ACCPAC, a subsidiary of Computer Associates, is a provider of end-to-end
e-business solutions to mid-market enterprises designed to increase
profitability. For more information, please visit www.accpac.com.
What were your expectations prior to attending the Track Selling System(tm)
workshop?
Prior to the training, I had taken at least two other sales courses. Some of
the stuff seemed applicable, but regarding a lot of it, I found myself
thinking, "That sounds fine, but I won't apply it myself." When I went into
this one workshop (the Track Selling System(tm)), I was expecting a "jump up
and down, rah-rah session" with chants of, "Close the deal," and the like.
My opinion took a 180-degree turn soon after the workshop began. What I
really liked about the Track Selling System(tm) was that it was the first
program I had found that had psychological analysis to back it up. For
example, it provides the "how" and "why" people buy. The fact that the
program is based on science made a huge impression on me and greatly raised
my comfort level.
What were the most important ideas and/or action steps you learned?
I think the most important thing is the necessity of "Selling the Company"
before "Filling the Need". Most people would agree that the "Agreement on
Need" step is very important, too. But I've found one of the biggest
pitfalls my colleagues and I have had in the past was to immediately try to
fill a customer's need as soon as we learned what it was. The fact that
there's an in-between step - Sell the Company - that forces us to slow down
and prove our company is worthy of their business, really hits the mark.
How applicable is the Track Selling System(tm) to your industry?
I think it's equally applicable to all industries, and equally effective. I
really like that the program is presented in broad terms. In many other
training programs that I've attended, the trainer comes from a particular
industry hence he/she tends to focus almost exclusively on examples and
experiences from that industry. Looking over the client sheet, the Track
Selling System has been applied to almost every industry imaginable, and
with much success.
Book Review -
The Etiquette Advantage in Business:
Personal Skills for Professional Success
by Peggy Post, Peter Post
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Anyone who believes that general business etiquette skills are simply
learned, innate or for rookies only severely undervalues the affect they
have on personal and professional success. In The Etiquette Advantage in
Business: Personal Skills for Professional Success, authors Peggy Post and
Peter Post, who come from the Post family (the foremost authority on
etiquette throughout the 20th century), reveal how you should interact
professionally with co-workers, colleagues and clients, and covers many
necessities not taught in business school.
The book's content is as applicable to the senior level executive to the
recent college graduate, and covers everything from business entertaining to
business dress codes, conducting interviews to conducting a job search. Want
to know what exactly "business casual" dress is or "how do interact in a
European country?" How about conducting performance reviews, appropriate
demeanor at company parties, attending a trade show? The authors answer all
of these questions, and more.
Not only is The Etiquette Advantage in Business: Personal Skills for
Professional Success an excellent read, much like a dictionary, it makes for
an excellent desk reference to be used again and again. Before meetings or
phone calls, you can thumb through it to the exact topic and use it as a
refresher course. You'll be glad you did.
| Ask Roy
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An anonymous reader asks:
"My company charges one customer 50 percent more
than another for the exact same product/service. We're talking about big
accounts where the average sale is six figures. Is this practice morally, or
ethically, acceptable?"
Roy's Answer:
"
This is a terrific question and I immediately forwarded it to a colleague to
learn his opinion. My colleague's immediate reaction says it all. His
reaction was, "Heck, this person knows it's wrong or he/she wouldn't be
asking the question."
My colleague's reaction aside, we can all empathize with this reader's
predicament. Sometimes your company doesn't adhere to the same level of
integrity that you personally do. And with the current state of the economy,
it can be very risky to rock the boat and potentially lose an account due to
overcharging. But as a professional salesperson, you must always do what's
right for the customer, not what's right for you or your company. Selling is
not extortion nor is it an auction process. Selling is providing service to
the customer.
I think the best thing this reader can do is to bring his/her concerns to
his/her company's heads and try to convince them that the company must
always do what's right for its customers. There's absolutely nothing wrong
with charging a premium price, but you'd darn well better offer premium
service.
In the short-term in this instance, rather than telling the customer that
they've been overcharged, are there extras like product or service upgrades,
product training, free service calls, etc., that can be given to this client
to justify the higher investment? Doing so will justify the price the client
is being charged and will undoubtedly strengthen their loyalty.
Now, for the long-term practice of charging customers varying prices. I
strongly urge that this company, and all companies engaging in similar
practices, implement standardized pricing guidelines rather than pricing
based upon what you can get a particular company to pay. Remember that you
don't enjoy a unique marketing position for very long. As soon as a customer
learns of this deception, it will take its business and run faster than a
cat on fire. And after it's run, the people running the company will tell
anyone and everyone they know of the practices your company employed. Ethics
aside, if this is true, is the short-term gain resulting from overcharging
really worth the long-term risk?
"
| 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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To learn more about our Track Selling System and how we can help you, please call (800) 488-4629.
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