Professional Selling Skills Training: Prospecting and Cold-Call Selling

Every company needs to have some type of sales development program. It is essential for small businesses, but the idea of having one is often something they can't imagine. Therefore, the end result is that the business remains small because it can't attract enough new customers to grow.

I've seen a number of studies which all say that the number one reason small businesses fail is lack of money. In my opinion, it's a lack of customers. This past week, I had a chance to talk to a networking group comprised of small business owners. My conversation with them confirmed this opinion even more.

Every small business must be committed to spending a percentage of their time and revenue looking for new customers, all while continuing to serve their existing ones. The easiest way for a small business owner to do this is to dedicate the first 45 minutes of every day to doing nothing but prospecting. I believe that if you don't prospect first thing in the morning, you're far less likely to do it any other time of the day. By not designating this to the first part of the work day, you will find yourself challenged for time and making compromises. When this happens, the most likely thing to get cut is prospecting / cold-calling because it's probably the least enjoyable task.

If you are interested in some tips to ensure success in your prospecting, I recently posted a new article on my website and I encourage you to read it. Visit www.TheSalesHunter.com, click "articles", and you'll see it listed towards the bottom.

Sales Training Tip #184: The 3 Letters of Cold Calling

The 3 letters of cold calling are "C I C". They stand for Client, Industry, Competitors. Make sure you know who the client is, the industry they compete in, and who their competitors are before you call on them.

Video Sales Training Tips

Sales Training Tips from The Sales Hunter are now available on YouTube. If you're looking for a quick way to gain new sales presentation tips and fresh ideas to help sell more, check them out. More importantly, encourage others to view them! Also, we'd appreciate your comments on YouTube. You can access them by following the link:
http://youtube.com/results?search_query=The+sales+hunter+mark+hunter

Professional Selling Skills Training: What is Consultative Selling?

Consultative selling is all about developing a solution for the customer that is beyond what they normally would have been thinking about doing. It is not just listening to the customer to find out what they need, nor is it recanting to the customer what they say they need. Consultative selling is all about asking questions and getting the customer to open up in a manner that allows you to put the pieces together and find a solution that not only benefits the customer, but brings value to them.
The best way to determine if you're practicing consultative selling is to ask yourself this simple question: Is the solution I'm providing my customers beyond the scope of what they would have determined as the best one if I was not working with them?

Sales Training Tip #183: Listen With Your Eyes

Listening begins by giving the customer eye contact. Looking them in the eye communicates that you are attentive to what they are saying.

Sales Training Tip #182: Listen For A Change

Listen for changes in your customer's voice. A change in their vocal pitch or tone will often come just prior to them either throwing out an objection or agreeing to an offer.

Sales Training Tip #181: Sell the Benefits

Price is only a factor when you haven't done a good enough of a job selling the benefits. And, if you haven't sold the benefits, you haven't done a good enough of a job listening. There is a direct correlation between the price you get and the listening you do.

Professional Selling Skills Training: Sales Compensation and Sales Commissions

How do you think a salesperson should be compensated? How important is commission for a salaried employee? Our staff of 4 sells small-ticket food items and we used to have trouble with them competing against our outside sales reps. Our Sales Manager moved them to straight hourly, but I am looking for an incentive.

This is a great question recently submitted by a reader of "Selling Tips From The Sales Hunter." Here's my perspective:

Salespeople who are not compensated based on their level of productivity are not salespeople...they're "order-takers". I'm a firm believer that every person in an organization should have a portion of their pay based on their performance and / or the performance of the entire team or company.

If what the salesperson is compensated is determined by their individual performance, then their commissions / bonus should be approximately 75% of their individual performance plus the remaining based on the overall performance of the team or company. No matter how much a person may believe their sales are their own, it still is important to keep a sense of "team" across the entire company.

If a person is part of a sales team or if what they do is dependent on the activities of a number of other people, then they should be paid approximately 25% based on their performance and 75% based on what the team does.

The total commission should be at least 25% of their total compensation if you expect any kind of behavior impact from the commission. I encourage bonus / commission structures to be in excess of 25% of the total compensation only if management can control sales swings and the base pay will cover basic needs.

Now, a final comment: I am not a big proponent of short-term incentive games unless they are done very, very rarely. Too often, I see sales teams achieve a significant goal based on the ability to earn an incentive trip or some other prize. It's important to ensure you don't have so many incentive programs that people wind up only responding if there is one. When this occurs, all you will have done is increase the cost of doing business without guaranteeing an incremental increase in business.

Professional Selling Skills Training: Selling Tips Being Put to Use

Each week, I send out a sales tip to help people develop their selling skills and, in turn, I regularly receive emails back from people with their comments on how they're using them. Below is the response I received from a reader in the DFW area. He's done a great job of not just reading the tips, but putting them to use. Special thanks to Bob Lazenby of the Legacy Realty Group for these. Here's just some of what Bob sent me:

"QUESTION or THOUGHT IN A PROSPECT'S MIND: What Makes You Different? In two sentences, can you explicitly define what makes you different from your competition? Great salespeople can!

RESPONSE (TWO SENTENCES): We show clients how to reduce facilities costs by as much as 20% - 30% or more! Would you like to know how we do that?

IF PROSPECT SAYS YES… “Give me a couple of times THIS WEEK or NEXT that we can MEET and I’LL SHOW YOU

AT the MEETING: Theme is… Proactive vs Reactive

OPENING STATEMENT:
Those that have TIME on their side get the BEST DEALS
· PROACTIVE approach;
· In almost all cases they meet or exceed their financial EXPECTATIONS.
Unfortunately, the vast majority of companies address their facility needs on a REACTIVE basis;
· They seldom meet their financial EXPECTATIONS
· Often ends up as a financial disaster. "

Bob has sent me even more examples and I want to thank him for doing so.

A giant plug for Bob and the Legacy Realty Group in the DFW area: If you're looking for commercial property, give Bob a call....www.LegacyRealtyGroup.com.

Thanks, Bob, and all the best to you and your entire team!!

Sales Training Tip #180: Your Response to an RFP

Never respond to an RFP (Request For Proposal) with a proposal. Rather, show your confidence in your ability to service them by providing a document titled a "plan" or "working agreement". This does not mean you are giving away your "secret sauce recipe." Keep the content the same as you would for an RFP, but merely change the name.

Sales Training Tip #179: What's Changed?

What's changed about the customer you're currently calling on? If you are unable to determine any of their differences since you last met, then you really haven't taken the time to understand your customer.

Sales Training Tip #178: Stall Tactic

Next time you stall out in a presentation, try asking, "How can I help you achieve your goals?" Not only will it help you refocus your thoughts, but it will also communicate your desire to see the customer succeed.

Sales Training Tip #177: What Makes You Different?

In two sentences, can you explicitly define what makes you different from your competition? Great salespeople can.

Professional Selling Skills Training: Selling to Big Companies

Closing a big sale has never been easy, and when you're trying to close one with a large company, it can be even more difficult. This past week, I shared the stage with a fellow sales professional and I highly recommend her best-selling book to you. Jill Konrath and myself had the opportunity to be part of the Ball State University Sales Symposium. Jill has authored the best-seller, Selling to Big Companies (Kaplan Press). Jump over to Amazon.com and pick up a copy! She does a great job of dispelling a number of myths held by many salespeople about dealing with large companies. Her entire book is based off of her many years of experience being part of a big company and selling to them.

Jill's book is a great compliment to many of the same approaches I've been talking about for years regarding how to increase your closing ratio and, at the same time, increase the size of your average sale. Thanks to Jill for writing such a great book on a key subject!

Sales Training Tip #176: Great Probing Questions

When you are seeking additional information from a customer, consider asking, "What goals are you trying to achieve?" Once they answer, immediately follow it with, “How are you going to achieve them?” Not only does it help you find out the information you need, but it also communicates your desire to help them be successful.

Professional Selling Skills Training: 15 Tips to Voicemail Survival

1. If your goal is to get the phone call returned, don’t leave information that would allow the person to make up their mind. Add a call-to-action to your message by providing a key date or something of interest that will encourage the person to return the call. You have to create a reason for them to call you back.

2. Repeat your phone number twice. If the person can’t quickly write your number down, you’ve given them a perfect reason to not call back.

3. Avoid asking ask the person to call you back at a certain time. This provides them with an excuse not to call you.

4. Never state in the message that you will plan to call them back. Again, this only gives the person an excuse to ignore your message.

5. Messages left on a Friday afternoon are the least likely to be returned. For most people, Monday mornings are very busy and, as a result, only high–priority activities will get their immediate attention.

6. Do not leave voicemail messages at odd hours of the night. Most voicemail systems offer a time stamp and the person hearing the message will immediately suspect you really did not want to talk to them.

7. The best hours to leave voicemail messages are from 6:45 AM to 8:00 AM and from 4:30 PM to 6:30 PM. Aggressive people are usually working during these time periods, and the person receiving your message could potentially view you as one.

8. Wisely use time zone changes to make as many calls as possible during the optimal voicemail periods listed in the previous tip.

9. Voicemail messages are an excellent way to introduce yourself to a person. Be personable, yet professional, and link your message to something of interest to the person you are calling (such as another person or event). The recipient may view your message as a waste of time if you have no purpose other than getting your name in front of them.

10. When leaving a message with multiple points, be sure to immediately disclose how many you will be making. This will prevent the recipient from accidentally fast-forwarding or deleting it before it is completely heard.

11. If you can’t say it briefly, don’t say it at all. Voicemail is not “story time”. Leaving a long message is an invitation to have the entire message skipped. The optimal voicemail message is between 8 and 14 seconds.

12. When leaving your phone number, do not leave your website address as well. This will give the person an opportunity to make a decision about you without calling you back.

13. Leave a “PS” at the end of your message. A “PS” is a very quick, additional piece of information that will connect with the person.

14. Mention the person’s first name at least twice in the message, but don’t use their last name. Doing so comes across as very impersonal.

15. Refer to a mutual acquaintance in your message as a way of connecting with the recipient. (Caution: Make sure they think positively of that person!).

Professional Selling Skills Training: "Learn / Teach / Sell” Yourself to More Sales

Every sales call you make needs to include the “Learn, Teach, Sell” concept. Today’s customer has many options available to them. Rarely are we in a position to sell to a customer something that is so unique and compelling that they have no other choice but to buy from us. To help create a competitive edge in the marketplace, we must find ways to distinguish our selling process from our rival’s.

One of the most effective ways to do this is to use each call to “learn” something about the customer and to “teach” them something about the business. When we take the time to both “learn” from and “teach” the customer something, then we have earned the right to “sell” them. This is a consultative selling approach.

“Learning” something about the customer is absolutely essential if we are going to be in a position to help identify their true needs. Therefore, the questions you ask must allow you to gain information that can be used either in the current call or at a later time with the customer. An example might be finding out from a customer what their financial limits are.

“Teaching” is the way we can help the customer become more qualified in their position and, in turn, make better decisions. Teaching them something should not be centered on the products or services we offer, but on the industry and business practices. The key is to provide them with practical information. By doing so, you will demonstrate that you are interested in helping them be more successful, rather than just selling them something.”

Selling” is the final step. Naturally, we want to sell our products on every call. However, reality reminds us that many times there are objections and other issues that must be overcome before the customer will buy from us. Still, it is essential for us to do on every sales call, whether it is simply selling our integrity, our listening skills, or our personal style.

In the end, we have been successful if we have earned the right, privilege, honor, and respect to call on the customer again. This is best achieved when we’ve taken the time to learn from them and teach them information of benefit.

Professional Selling Skills Training: Selling a Higher Price in a B-B Environment

Even the most sales savvy among us have had to fight back the nerves that materialize whenever we are faced with telling a customer about a price increase. Talking about it never makes for an easy conversation. When discussing a price increase in a business-to-business environment, it is important to remember that our customers have probably had to have the same discussion with their own customers. A company exists only as long as it earns a profit and it can only do that if it delivers a quality product or service at the right price. This means that the key to any conversation about raising the price is to emphasize that such an increase will ensure product quality.

As you begin to prepare your strategy for communicating a price increase, ask yourself the following questions:
1. Does the customer take your product/service and add a standard percentage increase in price when selling to their customers? If this is the case, you can point out that your customer will make more money by taking a standard percentage of a higher amount.
2. What percentage of the customer’s business is your product/service? If the percentage is small, tell them that the amount of increase is only a small percentage of their total business. If the percentage is great, then you can emphasize that the price increase is necessary to maintain the level of product quality necessary for them to serve their customers.
3. Has the customer faced any other price increases from other vendors? If so, try to identify what some percentages of the other increases have been. If yours falls into the low end, then you can point out how your increase is comparatively smaller than that of many others. If your increase is at the high end, you can either explain how yours is the only one you expect to take or that you wouldn’t be surprised to see others coming back to take another round of price increases.
4. How does the customer view you and the products/services you sell? If you have a quality reputation and record, then you can emphasize that the increase has been carefully thought through and it is only being taken to ensure continued quality. If you have a spotty record with the customer, then you should stress how the price increase will allow you to begin addressing some of the issues in question by allowing you to improve the overall quality of service they have been receiving. Naturally, it is important to make sure all comments are backed with a commitment to follow-through.
5. Will the customer raise an issue with the price increase? Be prepared to show documentation of how your costs have escalated and how other companies are experiencing the same increases. (An example is the increasing cost of oil, which has forced any company that uses petroleum in the manufacturing or transportation of goods to most likely increase prices.) When having this discussion, be sure to show empathy for the customer, but remain firm in what you’re saying. If the customer senses any hesitation on your part, they will likely try to exploit it in the form of a price concession from you. Also, be prepared to share steps that your company has taken in an attempt to avoid a price increase. This can include ways you’ve already cut costs or how the price increase is the only way to maintain the quality and service the customer expects. A final point to emphasize is the time lag between this price increase and the previous increase. Having information available concerning the rate of inflation during that specific time period may also help diffuse the issue.
6. Why does the customer buy from you anyway? Knowing this will allow you to reinforce these points when talking about the price increase. You should also have ready at least two key needs of the customer that your product or service satisfies. Be sure all of your strategic information about the customer is up-to-date before a price increase is announced.
7. How much business is at risk from the customer? We can sometimes get carried away thinking that if we raise prices, we’ll lose the customer, even though this is rarely the case. Think through what steps the customer would have to take to move to another vendor. Many times the work involved in moving is not worth the effort, and thus the business is less at risk than thought.

The following Sales Presentation tips are the best practices to employ when executing a price increase:
1. Give the customer lead-time. Provide the customer with enough notice to allow them to make adjustments in their information systems and to exercise at least one more order at the existing price.
2. Avoid showing favorites. Pricing integrity is always essential, but especially so during a price change. Do not treat particular customers more favorably than others in pricing during an increase. Different pricing levels are fine as long as they can be logically defended so that a customer who is not receiving the price break can understand and accept the price change.
3. Do not allow your customer to find out about a price increase from your invoice. Any changes in pricing must come from the account executive or a person of high position within the company. Information regarding a price change should only appear on an invoice after every person involved has been personally notified. (Sufficient time should occur in the price increase timeline to allow at least one invoice to contain a note of the pending increase in price.)
4. Make sure each customer service representative and anyone else who comes in contact with the customer is fully aware of when the price increase is going to be communicated. One of the most significant possibilities for confusion is when the customer hears conflicting information from different departments. Everyone in customer service needs to be fully aware of the price increase, the reasoning behind it, and the logistics for implementation. They should also be provided with a FAQ guide to ensure that when customers do ask them about elements of the pricing increase, they are able to share accurate information.
5. Believe in the price increase. In order to be paid what you are worth, you must charge what you are worth. Although this is not something that can be explicitly communicated to the customer, this general sense is what sets apart the best practice companies and high-performing sales professionals.
6. Instill an open-phone/open-door policy. Any time a price increase takes place, it is important for all senior executives to be willing to answer a phone call from a customer or to make phone calls to key customers. For successful consultative selling, nothing sends a stronger signal to a sales organization than seeing their senior executives on the front-line when dealing with a price increase.
7. Before and after the price increase, monitor the sales patterns of your individual customers. It is important to quickly catch any changes that occur as a result of the price increase.

During the 1970’s and 1980’s, price increases were common and expected. In the past 10 years, however, we’ve all grown used to lower inflation and the overwhelming impact of Wal-Mart’s philosophy on pricing. Today, price increases are again growing more common and acceptable as long as they are well thought through and not seen as a way to merely increase profits. Because they are an inevitable part of business today, we can’t let ourselves avoid dealing with price increases. Instead, we should seek to use them strategically to increase our selling potential.

Professional Selling Skills Training: The First 30 Minutes of the Day

The first 30 minutes of the workday will set the tone for the entire day. For most people, the first half hour of the day consists of settling into the office routine by grabbing a cup of coffee, checking the internet, and, of course, chatting with others. Now, I will never be one to say we have to avoid coffee and/or socializing, but I will be the first to say it is advantageous to put these activities aside until later.

One of the ways that top-performing salespeople separate themselves from others is by effectively using the first 30 minutes of the day. It is highly beneficial to your productivity to know exactly what you are going to accomplish during this period. Therefore, you must determine the day before what you intend to do when you first arrive in the morning. For anyone in sales, this means one thing: start the day by making a minimum of three sales calls before you do anything else.

To begin using this strategy, your objective today (and everyday in the future) should be to identify three people you want to call first thing tomorrow morning. There is no better way to start the day than by calling customers. If you are the type of person who arrives in the office early, your phone calls will wind up going straight to voicemail. Great! In fact, using voicemail is an effective way to demonstrate to others that you are a hard working individual and you take your relationships seriously. For those of you who have a large number of clients, this is also a perfect way to personally reach out to them, while not having to wind up in a long, drawn-out telephone conversation.

In addition to beginning the workday more productively, you will also find yourself warmed up to make additional phone calls throughout the day. This will help you overcome a very common problem among anyone in sales: the initial reluctance to make the first call of the day. Many studies have shown that people waste on average 15 minutes each day just getting ready to make that first call. It is ironic to think that you will have made three phone calls in the time it takes the average salesperson to even start making theirs.

An additional benefit of this plan will come when you begin applying this same principle to the first 15 minutes after returning from lunch. Use that time to make three prospecting calls. Again, you will find yourself becoming productive faster and you will be less likely to find yourself at the end of the day looking back to realize that you did not make the phone calls you needed to.

By establishing these habits, you will increase the number of phone calls you make every day from utilizing time that, in the past, was unproductive. Make it part of your routine at the end of each day to identify both the three people you intend to contact the next morning and the three you’ll contact after lunch. Do not fall into the trap of thinking you’ll come up with the names the next day because the chances of you actually contacting those people will fall dramatically.

Sales Training Tip #175: Ask the Right Type of Questions

You may be good at asking questions, but are you efficient in asking the right type? Open-ended questions should make up 85% of the questions you ask on a sales call. Closed questions should never exceed 15%. These percentages are important in helping you gain the necessary information from your customers and prospects.