I hope all of you reading this will make a commitment to your self to do whatever it takes to make 2012 your best year ever! The only way that will happen is if you are as equally committed to being more pro-active, and more assertive in your day-to-day marketing. Here are some proven tips that should help to guide you toward those objectives.

1.  Turn off the news. It’s mostly all negative today and will bring you down if you focus on it. Think about what INC. magazine had to say at their recent GROWCO conference in Orlando, “The only bad thing about this recession, is that it may not last long enough” This was said to a group of hundreds of entrepreneurs who are focused on increasing their businesses during these tough times. Think about it.

2. Get into your market. It’s not gonna happen if you wait for the market to come to you. Find out what networking or business social events are being held, and make sure you attend. Work the room by playing host and asking people who they were hoping to meet at the event. Help them, and they’ll help you. Be clear before you attend as to what your objectives are and who you are looking for.

3. First contact your personal “inner circle” and ask for their help. Make up a list of all of your close contacts and call them all. Studies show that most people in business know about 250 other people in business. How many of those would be willing to help you or give you a referral? What about family, friends, old classmates, vendors, suppliers, etc. Who knows? But you never will know if you don’t pick up the phone and tell people that you are “committed to making 2012 your best year ever”. Would they like to help?

4. Prospect to a target market is the easiest way to make cold calls. First, identify the profile of your “ideal prospect”. What industry? What position? What location? Then send them a simple pre-approach letter designed to introduce yourself as someone who specializes in helping people like them eliminate certain “issues” which you refer to in your letter. End with “please expect my call to discuss this in a few days”, and then don’t forget to follow up.

5. Wave mail. One way to keep your name in front of someone you are targeting, or as a way to help you to book an appointment, is through wave-mail. Simply put, it’s sending a variety of different looking things on a regular basis. For example, a newsletter with a handwritten note on it, an article you clipped with a sticky note attached, a brochure, a letter, a post card, a video tape, a fax, etc. Try to vary the format as much as possible.

6. Executive Briefings. One of my favorite pro-active prospecting tools. If I told you, you could qualify 100 people in an hour, you’d probably say “you’re crazy.” But that’s exactly what will happen when you present an executive briefing to a targeted market. Think about a list of people who would benefit from something you know a lot about. Something you are an expert at. Then, develop a list of professional associations where those people belong and call the program chairperson to find out about doing an executive briefing for them in the near future

7. Teaming up on the Internet. Link up with your customers or other firms serving similar markets to magnify your presence on the web. Many industry associations and service organizations have web sites and would probably welcome the opportunity to add yours to theirs through a simple link.

8. Centers of influence can be very helpful to you as you grow your business in 2011. They are typically people who have experienced your work and are very satisfied with it, either directly or indirectly, and are willing to tell others about their experiences. Instead of showing someone a stack of letters that all say you’re great, get them on the phone with a satisfied client, or sphere of influence, and let your prospect speak directly to them about validating your ability and your commitment. Keep a short list of these “live endorsers” in your cell and when someone expresses a need for an outside opinion about your work, dial one up and hand it to your prospect.

9. A process for getting referrals. While it’s true that the best way to get good referrals is to give good referrals, you will need a process for getting referrals from everyone you meet. Clients and prospects alike. Just keep in mind that a referral doesn’t have to be an endorsement. Someone could refer you based on what they think they know about you and your ability to help someone they know. Call all of your clients and tell them that you “are in the service business, and so, don’t have much time to be looking for new business. Would it be a problem for them to help you by referring you to someone that they know, that you should be speaking with”? Don’t forget to follow up with a thank you, and offer to help them with a referral.

10. Former / lapsed clients sure do look like golden opportunities to me. Just because time has lapsed since your last contact, or something happened to cause them to stop doing business with you, doesn’t mean that they are not prospects for you today. Call and find out what happened to your relationship, and inquire about what you can do to revive it. As you may know, CS+M specializes in helping people find new business. If you need help with any of these concepts, please feel free to call, or e-mail me.

Plan now to make 2012 your best sales year ever!

But here’s a trick used by direct response people that can help you. When leaving literature, attach cover letter explaining what is attached and offer to come by and explain  the product and service in greater detail. You can also flag the most important pages and highlight sections.

Prospects are most likely to read a short letter addressed to them than they are to wade through mountains of sales literature. And once they’ve read your letter, you’ve got their attention. Chances are, if they can use your product, when you call to follow up, you’ll get a warm reception.

In December, The members only Inner Circle breakfast will be held on Dec. 9 at the Citrus Club in Orlando, FL.  Our next open to the public workshop,”How To Be A master Prospector” will be held on Jan. 27 at our learning center in Orlando, FL.

The most common problem customer by far, is the customer who grinds you on price.

People who sell services have more problem customers than people who sell physical products.

People who sell physical products have more pressure from competitive products.

People who sell mostly to Fortune 500 Corporations encounter about twice the number of problem customers.

People who call mostly on Fortune 500 Corporations encounter almost three times as many incompetent customers.

Having more problem customers can be good for business~

Problem customers account for about a third of all job related stress among people who call on them.

The three customers who are the most stressful to deal with are (1st) the customer who complains about everything, (2nd) the customer who lies to you, and (3rd) the customer who is incompetent.

More experienced salespeople report a greater percent of job-related stress from problem customers than do beginners.

Customer insecurity motivates most problem customer behavior.

When you sell for a small company more customer behavior is motivated by customer insecurity.

Most salespeople believe that their company President or CEO supports their selling efforts.

Companies where the sales staff feel that their company’s advertising is behind them sell a lot more.

This edition of Sales Trax sets a new record for our continuous providing free advice to our friends in sales, management and service; 500 weeks of Sales Trax!

In November, The members only Inner Circle breakfast will be held on Nov.11 at the Citrus Club in Orlando, FL, and our annual “Planning For Success . . . building your 2011 Sales Plan” workshop, open to the public, will be held on Nov.18 at our learning center in Orlando, FL.

Negotiating 101

Here’s a list of five practical negotiating tips and techniques you can use to get better selling results in your territory.

1.Never give “your price” when someone asks, “How much does it cost?” Always say, “It depends.” When they ask what does it depend on – tell them. Tell them it depends on the quantity, the length of the contract, and what else they can include in the order.

2.Never lower your price without asking for a little reciprocity in return. Never means never. Always get something – if you want it to be a win-win situation. You can ask for referrals, a testimonial quote, an organization chart, a corporate directory etc.

3.Remember the “Law of Scarcity.” When things are scarce they become more valuable and in greater demand. It creates leverage for you.

4. Do sales proposals and avoid doing quotes. In your proposal always offer three options – best, better, good. You’ll be absolutely amazed how many people want the “BEST” when they’re shopping – especially if they have big egos.

5. Do you have a “Maybe File?” This file contains all your pending sales proposals. The “Maybe’s” are like boat anchors and weigh you down. They can become huge distractions for you. Periodically clean up your “Maybe File.” Simply tell the proprietors of the “Maybe File” that you’ll have to adjust the pricing upward in 15 days.

You will have more fun, increase your sales, and earn more money when you negotiate. Do not give anything away – learn to trade it away.

P.S. - when you’re doing the buying try this technique, when you are trying to get a better price.

1.Say, “You gotta do better!”
2.Wait for the response.
3. Then say, “You’re getting real close.”
4. Wait for the response.
5. Then say, “You’re almost there.”

It never fails to work.

————————————————————

CEO quotes and lessons:

>Spend time with people at all levels of the organization – they all have something to add.

>Use an electronic “suggestion box” to collect and examine pople’s ideas.

> Make decisions based on people’s suggestions. Reward ones that you implement and, equally, let people know when you are not going ahead with their ideas.

“Every week, there is a different set of issues, a different challenge, something to think about.” . . .  Margaret Whitman, CEO (1998 -m2008)

Next Workshop:

Nov. 18, 2011

Planning for Success . . . Develop your 2011 Sales Plan

Planning is the key to success for anyone in a sales
role. This timely workshop will help you to establish
realistic and attainable sales, service and management
goals for 2011 and to develop a behavioral plan that will insure your attainmement of those goals. We will start by taking an objective look at your business and the opportunities you have for growth in 2011. This includes your competition, trends, potential roadblocks and ways to separate yourself from the
competition. This will help you to determine the
direction you should be taking as we focus on developing a plan to identify and track the financial and behavioral resources required to achieve the plan.

Planning a s ales meeting? Looking for a dynamic speaker who will do more than just entertain your troops? Not just a “franchise guy” repeating someone else’s words, but a man who has led several Fortune 100 companies to financial success.  Call Dave Rothfeld at 407-660-6688

REPRINT PERMISSION: Reprint permission granted in part or whole when the following credit appears: “Reprinted with permission from “Creative Sales + Management, Inc.”

#1 Trips

#2 Face-to-face recognition

#3 Entertainment/dinner/sports tickets #4 Merchandise

#5 Awards/plaques

#6 Mention in company newsletter

1.    Forget wait and see. Procrastination is the worst trait any salesperson can have in a recession. Salespeople who increase prospecting during hard times may take customers from those who decide to cut back until the economy improves.

2.    Control the sales process. Control is one of the key elements for success in slow times. Control is not manipulation but it’s acting in the best interests of prospects and customers. Discover what your customers want and need. Ask questions to try and find out where they “hurt.” Then plan to do everything you can to solve their problems.

3.    Identify products or services your customers could buy but don’t. Increasing sales to existing accounts may help you weather the storm. Try to make a customer’s life easier by looking behind the numbers to understand the customer’s business strategy and financial situation. What are the biggest profit makers and drains? How can you help the customer expand business?

4.    Keep adding value. The most important contribution you can give to prospects and customers is your knowledge and expertise. What information do you have that could benefit prospects or customers? Define value in their terms. The possibilities are limitless: faster service, better delivery, unique features, etc.

5.    Move beyond your circle of activity. Breakthroughs just might happen if you leave your comfort zone to go after new business. Create a top 10 list of prospects you’d like to close and go after them aggressively. As you close each account, try to replace it with another prospect.

6.    Have a high tolerance for pain. No matter what crosses your path, you must handle it. If you lose key customers, work harder to get them back. If you’re turned down for an appointment, learn more about the prospect and come back with a different approach. If prospects stall, it’s because you haven’t captured their interest. Go back to the beginning. Learn enough about them to be able to show how your product or service will help them during these tough economic times.

7.    Push the limits. Sales leaders are never completely satisfied with their performance. They push themselves on a daily basis to outperform the previous day. Motivation is what keeps them moving, regardless of the economy. They recognize that success now comes from sacrifice and maybe a little pain. They make more calls each week. They spend more time on customer follow-up to ensure results. They set their sights a little higher. Taking these steps propels them forward and provides the energy and enthusiasm to fuel each day, regardless of the economy.

Every year, enthusiastic and confident men and women start businesses with creative products and services that they sincerely believe address real industry needs.These entrepreneurs are absolutely certain that nothing will stop them from succeeding.  Unfortunately, 33% of businesses fail within 2 years; 56% fail within 4 years, and 97% fail by10 years.  These are devastating numbers, but you can avoid being a statistic if you choose to be a leader who delivers results.

It’s critical for salespeople to come up with the specific reasons why they lose a customer. They may be in jeopardy of losing other customers for the same reasons. Salespeople who take the time to listen to their customers and gather, manage and analyze their feedback may not only survive but may thrive in attracting, retaining and competing for customers. Research shows that gathering customer feedback can increase customer retention by 15 to 20%.

Salespeople have been warned for years about the economic impact of losing customers. With the advent of the Internet, here are new hidden costs that should be considered:

• Negative word-of-mouth, especially with the advent of bloging and social networking where people can now broadcast their points of view to thousands or millions of people.
• Substantial costs involving in trying to recruit and acquire new customers to replace lost customers.
• The amount of time it takes for a customer to become profitable to a company.
• Lost opportunities for customer referrals/recommendations.
• The toll that losing customers take on a company’s employees caused by layoffs and office or plant closings due to lost revenues.

Building relationships with customers that last requires feedback in three areas. Share them with your salespeople.

1. Why your current customers continue to do business with you?
2. What specific factors are causing customers to leave?
3. Which of your products or services do customers care about most?

These questions are best asked in person or on the phone. A good opening statement might be “We are working on our marketing plans for the second half of the year, I’d like to ask you a few direct questions. The first one is why do you do business with our company” Take careful notes and look for the common answers between customers.
Here are tips that may increase your customer retention rate:

1. Find out what customers think, want and need, and the factors causing them to stay or leave. Survey your existing customers to find out. Are customers unhappy? Are there any changes and/or additions that your company should be making to its products or services?
2. Continually collect and promote customer feedback. Try not to wait until there’s a problem to contact or follow-up with customers. Research shows that gathering customer feedback can increase customer retention by 15 to 20%.
3. Address customer concerns immediately. Up to 70% of customers will buy again if their complaint is resolved. That figure jumps to 95% if the customer feels the complaint is resolved quickly. Customers whose complaints are resolved satisfactorily tell an average of five people about their good treatment.
4. Let customers know whenever your company initiates change as a result of their suggestions or feedback. If you’re not able to use a customer’s suggestion, let him or her know that you heard the suggestion and appreciate their feedback. Measure the results. Study the impact of the changes you make based on customer feedback. Some of the areas you may want to consider include customer retention rate, revenue per customer, customer referrals and customers saved due to feedback.

Remember to include improving your customer retention rate whenever you forecast sales. If your annual retention rate is 85% and you are projecting a 10% increase, you really have to focus on a 25% increase to get the 10% projection. It’s amazing how many sales managers ignore reality when projecting sales.

• How do they think?
• How do they act?
• What motivates them?
• How do they interact with other people?

All four apply when considering how to recruit and select sales­people.

What should sales managers keep in mind when recruiting and selecting salespeople?

The most critical ingredient for the survival and growth of any organization is talented person­nel. One problem many man­agers have is they hire quickly and fire slowly, when actually managers should be slow to hire and quick to fire.

First, know what you’re looking for. Take time to develop a pro­file – a benchmark that defines the best candidate for the posi­tion. If you’re selling a big ticket item like a software sys­tem or a $1.2 million CAT scanner, you need a different salesperson than someone sell­ing shoes or office copiers. For big ticket sales, we look for discerning people who can adjust to the styles of different decision makers. Their job is to find out what the customer needs. Going for the throat aggressively is outdated. The fact is trying to change behavior is a waste of time.

Once today’s consultative salesperson establishes the customer’s needs, closing the business is just the next step in the process. A certain amount of assertiveness is required in sales, but it varies depending on the selling environment. In addition to discernment and assertiveness, we look for an achiever trait – someone who’s motivated to succeed in a com­petitive environment. Salespeople need to relate quick­ly to the prospect, empathize, and persuade.

How can you find out if some­one is persuasive?  One of the best ways is to let them show you how persuasive they are in the interview. Has the applicant persuaded you he or she is the best person for the job? Remember you’re hiring, renting, or leasing behavior. From what you learn in the interview, how will the appli­cant behave?

Can’t behavior be changed, if an applicant has other strengths? Sure, there are plenty of ways to change behavior. Psycho­therapy for about 27 years might work, or maybe a frontal loboto­my, if they’re legal where you work. You might try religious conversion, drugs, or send them to California. No, the fact is trying to change behavior is a waste of time. Sales managers ought to get out of behavior modification and into behavior selection.
 
Don’t you put any weight on what the applicant knows or is capable of learning?
You need to ask yourself these questions about a prospective salesperson:

• Can I work with this person?
• Can he or she do the job?
• What does the person know about our business?

But the knowledge can be learned. One of our clients markets sophisticated medical instruments. They told me the sales­people have to have college degrees. We looked at their 15 best sales reps. About six or seven of them had no college degree. You should be focused on who can deliver the behav­iors you need.

Another company I know raised eyebrows when they hired a guy out of a clothing store to sell mainframe computers. He knew nothing about computers, but he knew how to relate to people. He picked up the computer knowledge very quickly. First thing you know, he sold a $7.6 million order to the office of a prominent state officeholder, despite the fact that the comput­er company had supported that politician’s opponent in the last election. That’s overcoming the odds, without knowing much at all about computers.
Interviewing is something of an art. Why are so few good man­agers also good interviewers?
Most managers admit they don’t interview well, and here’s why. First, they’re not sure what they’re looking for, so they don’t ask the right questions. Get through theory to behavior. Instead of asking, “Are you assertive?” ask, “Can you give me a recent example of when you were assertive?” If the can­didate can be very specific with the example, then very likely that behavior is practiced.

Second, they’re not well pre­pared. Instead, they think of questions as they go along. Finally, they’re strong boosters of their own company, so when there’s a chance to sell the com­pany, they’re off to the races. The interviewer ends up doing all the talking. Managers have to be much more disciplined in interviewing.

How do you define what you’re looking for? It takes time. You have to estab­lish what traits are required for success in your marketplace. Then build “behavior profiles” for each position. The best way to develop a behaviors profile is to identify your top employees in any given position. Then ask: What makes him or her so good? Water runs downhill. In any organization, so does talent.
 
You mean hiring someone bet­ter than you are?
Yes, and that’s hard. You need people smarter, better, or at least as good as your best peo­ple, including yourself.

What’s the best way to find ideal job candidates?
The very best way to find can­didates is through referrals. As a guideline, 70 percent of your people should come from refer­rals, though most companies are at about 40 percent.

What are the most common mistakes sales managers make in recruiting and selecting salespeople?

First, they’re often not clear about what they’re looking for. They tend to be over-impressed with candidates who look right, dress well, and present them­selves effectively. Second, they look at resumes and make choices, when resumes are no more than balance sheets that don’t list the liabilities. Third, they’re not trained in interview­ing’ and they often end up doing most of the talking.

I know that at first glance this all looks complex and time consuming. Before you dismiss the process, consider what it costs you to hire the wrong person.

Why then, amidst all the fanfare, do some sales managers find their “pay for performance” plans to be ineffective in gener­ating desired sales and profits? Why do their salespeople appear to be somewhat non-aggressive and demoralized? In many cases, the answer lies in the four-letter word: GOAL.

THE UGLY. Perhaps one of the greatest reasons “pay for performance” plans fail is that management assigns stretch goals, which is often code for unrealistic goals that sales man­agers know the sales organization will have difficulty achieving. Although some degree of stretch

may be desirable in certain envi­ronments, often such goals result in a “lose-lose” situation for both the company and the sales organization.

Why then does management set goals in such a manner? In most cases, management convinces itself that if the goals are set 20% to 30% higher than the firm’s true expectations, the company will still reach its goals even though the individual salespeople may miss their personal goals.

Unfortunately, under such scenar­ios, the sales organizations not only miss by 20% to 30 %, but often by as much as 40%. The reaction of most sales organiza­tions is quite typical. The sales­people begin to question their own skills and management’s judgment. Morale plummets and resumes begin to circulate. The hidden and not-so-hidden cost consequences to the firm are usually enormous under such circumstances.

THE BAD. In setting goals, many sales man­agers frequently follow the dic­tate we so often preach, set the individual sales goals equal to the internal goals of the firm. Such an approach will help ensure that the organization either rejoices together or cries together. Although their intent may be commendable, often their processes break down when selecting the information upon which they will base their deci­sions. The most common mis­take made by sales managers is to base the goal setting process solely on sales history. A com­petitive sales environment does not allow long-lasting success for those companies continually looking to the past for answers.

Why do managers continually set goals based solely on sales history? One explanation may be rooted in the idea that many sales managers do not know what other data to use in mak­ing their decisions. Perhaps an even better explanation is that some sales managers are uncer­tain how to identify, size and account for potential, economic conditions, channel shifts and other factors typically included in solid goal setting processes.

An example of a bad situation that often arises when sales managers fail to consider poten­tial in setting goals is penaliz­ing good salespeople who have deeply penetrated their markets. Better performing salespeople will have a limited number of prospective customers, while poor performers will continue to have significant opportunity. As one salesperson has stated, the best solution under such a sce­nario is to “quit and then get re­hired to sell in a territory which has been under penetrated.”

THE GOOD. Good goal setting processes will link the individual sales­people’s goals to the firm’s goals. Tougher environments may require that the goals be set slightly lower than the inter­nal goals to ensure a significant, portion of the sales organiza­tion “remains in the game” and a positive morale is maintained. It is also essential that goals be set based upon a combination of considerations: sales history, potential,. economic conditions, channel shifts and any other market conditions impacting the selling effort.

Good goal setting processes will attempt to encompass all of the above considerations where appropriate. Although such a process will undoubtedly require a significant degree of thought and analysis, many sales man­agers find that the subsequent returns more than offset their efforts. Often the resulting goals will be viewed as highly equitable by the salespeople. More importantly, they will be supported by solid rationale. Good performers will not be penalized and thus will be encouraged to aggressively pur­sue sales growth. Areas requir­ing additional or reduced staffing and resources will also be more evident.

If done incorrectly, goal setting will often create significant productivity problems in the sales organization, resulting in a “lose-lose” situation for the firm and the salespeople. Good goal setting processes will link the individual salesperson’s and the firm’s goals. They will be based on a number of considera­tions, not solely on sales history. Most importantly, they will be realistic and obtainable.