Unwinding Good Behavior with Incentives

Kaleidico Business DevelopmentThere is nothing more dangerous to sales production than rolling out a new compensation plan or incentive program. Often we make these tweaks to reward or encourage good behaviors we see in our sales organization, but I warn…caution is warranted.

I just encountered just such a scenario the other day. Here is an example of how rewards are about to unwind good sales behaviors:

As a brief background, Kaleidico’s Sales Manager (lead management software from my company) is uniquely designed as a pull-based CRM software. This is a very rare feature for lead management, but is incredibly powerful way to discipline sales management. You see, you have to work leads to get leads and it creates a healthy competition for sales leads.

In this particular scenario the client is experiencing an incredible sub-minute initial contact average. Talk about incredible customer service!

The logical conclusion is that their entire sales force is hungry for leads. What’s even better? They are also yielding above average conversion rates and very short sales cycles.

Why the concern?

They want to make a change. A gut-level logical change. They want to adjust lead distribution to reward their current top performers. The new system would round robin (push) leads into each of these selected performers until they hit an allowance cap. Then the lower performers would be eligible for their first fresh leads of the day.

I have been in the Internet lead business for over a decade and have seen about every lead allocation process you can imagine–this one is no exception. So, here are the most probable outcomes and fallacies to this lead distribution scheme:

  • Top performers don’t need to be hungry anymore, leads just became free
  • Conversion and contact rates are likely to decline for top performers
  • Managers now must monitor queues for aging leads or unavailable agents
  • Opens the flood gates for multiple “special” allocation groups
  • False assumption that leads received in the morning are best (actually research shows weekend leads are the highest converting)
  • Good news: Lower performers forced concentration on older leads typically increases their performance

There are certainly exceptions. Lead management is something that should be continually reviewed and optimized for market and organizational changes. However, caution to the wise beware of unwinding good behaviors your current system has enforced.

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Organizing Sales Teams for Higher Output

Today, we have an ever-increasing number of knowledge workers. As work becomes less about muscle and more about innovation, intellect, and sales leadership styles often need to change becoming progressively more flexible.

Knowledge workers generally have loyalty to their manager and sales team, but not to the company. Managing employees through fear usually results in them voting with their feet, and leaving for a more rewarding work environment.

Now, with baby boomers increasingly retiring from the sales workforce there is a rapidly growing shortage of qualified workers. So how do you recruit more members for your sales team? And, how do you turn each into high-producing sales leaders.

Finding the Love

Managers often find by showing some “love”, it helps to recruit and retain high product sales team members. Do you have that employee who complains loudly? Which type of employees is more productive for your sales organization?  There are many reasons why people love their jobs:

  • Some people love sales for the money
  • Others love sales for the recognition
  • Some love the security it provides for their family and themselves
  • Some love their work because it allows them to contribute in making a difference.

Once you know what motivates an individual worker, you can provide that environment which motivates them to become a high producing sales leader. And, when people love their work, they’ll tell others. This means more people will want to work for your sales organization. The trick is to create a work environment where this form of enthusiasm is at least allowed and at best, encouraged.

Reputation Attracts Sales Talent

In today’s interconnected mobile world, it is important to build a reputation that attracts more qualified sales leaders to your sales team? Support your workers showing appreciation so they feel like whole people doing a job, not being the job. Appreciation fosters awareness, fear falls away, job enjoyment, satisfaction and sales results increase.

Identifying Motivation Profiles

It is important to develop a sales force that is self motivated focused on certain key skill sets to get them to their next level of growth and performance?  While leading sales organizations often manage thousands of salespeople, we generally find four types of individual motivating factors or characteristics including;

The high achieving sales executives are the best at bringing in the numbers, but chances are that you may spend a fair share of your time cleaning up their messes. It may often seem like they’re either sky-high or down in the dumps. When the high achiever is down, they are out of their selling zone, and productivity comes to a standstill. But when they are up on their game, look out world.

The professional producer may also be considered very consistent, a total team player, even tempered, patient, and consistently delivers results. Professionals are also part of the elite members on the sales team, but they seem to be missing some opportunities that would catapult them to super stardom. Instead, they generally stick to self-proven conservative approaches.

The caretaker maybe stuck in stagnate sales game. These are the sales executives that are simply stuck in their lackluster comfort zones—giving you a solid month about every third month, or giving you that seventy percent effort range. They have the potential, but they’re consistently mediocre. You just can’t get them to perform the difficult tasks that it takes to produce at top levels with any regularity. Worse yet, they’re passive aggressive. You say to yourself, “If I could only wake them up, they’d be right up there with the best.”

The searcher is the most difficult and not a sales career fit.  These misfits are consumed with fear, and if truth be told, they honestly hate sales. A searcher has no real intention of making the necessary changes to be successful. You’re better off helping them find more fulfilling careers elsewhere.

Strong Sales Leadership Helps People “Out” Too

Effective leadership management must often perform the unenviable task of helping those that don’t belong to find other career paths. If you want sales to improve, particularly in highly competitive sales industries, then leaders must create a career growth-oriented atmosphere that thrives on constant improvement, regardless of market conditions. By the way, that means leadership management must also be striving to break through to their personal achievement levels as well. Effective sales is about sustaining momentum thru innovation creating even more revenue opportunities on a consistent basis.

Building a Sales Process

Whether you are just starting out, or you are looking for ways to increase your sales, a sales process is a vital path to your success. There are many different ways that you can go about building a sales system that will work for your company, but there are some basic guidelines that will make the process much easier and more effective for you.

Before you start, you will need to have some idea of sales management, or you will need to hire someone that can handle this for you. Many company owners simply do not have the time to manage every facet of their business and as a result, sales can suffer. It is better to spend the extra money on a manager which in turn will be repaid through increased sales.

The Basics

First, you’ll need to figure out your target audience and what they are looking for. If you have a product that you feel confident will be a big hit with your audience, a period of testing is necessary to see if this is going to bear out. While you can always hope for the best, it is far better to be prepared and to target your audience correctly.

Next, you will need to come up with a general plan of the different types of marketing avenues that you are going to pursue. Will you be relying on radio, print or online marketing to promote your product? Most find that a mix is the best way to go, but if your promotion funds are limited, online marketing will be the most cost effective method.

Your sales process will depend heavily on the path you decide to take and will need to be customized for each one. While there are similarities in all forms of marketing, there are also inherent differences that will need to be understood if you want to have a sales system that is effective.

Online Marketing Sales Process

In order to take advantage of all that online marketing has to offer, you will need to create a sales process that will allow you to use as many as possible without losing your focus. For example, social networking is incredibly powerful, but pay per click marketing can also be effective.

Never put all of your online eggs into one basket and take the time to test out different varieties of online marketing before settling on the one that is going to work the best for your unique product or service. This will help you build a strong sales system that you can rely on.

Using the Right Tools

Sales management for online marketing campaigns can be made easier by utilizing specific tools, such as analytic programs to gauge overall effectiveness. Since many of these are free or low cost, like Google Analytics, there is no excuse to avoid using them. Often, they can mean the difference between success and failure.

By utilizing all of these techniques, your sales management will be made easier and more effective and your ROI will improve.

Three Fast Ways to Build a Solid Sales Team

A company is only as strong as its sales team, and if you have not taken the time to build a strong foundation, your business will definitely suffer. Building a team may take time, but if you go about it the right way, it is an investment that will keep paying off.

There are three main things to keep in mind when you are ready to build your team, and these points will help you fast track your success.

1.    Focus on Sales RecruitingJack Welch, the former CEO of General Electric stated many times that hiring should be the main focus of your business. You simply cannot let your sales staff become stagnant.

By continually working on sales recruiting, you will be able to build a solid and talented team. Don’t be afraid to replace team members that may not be hitting their quotas. In this economy, businesses can’t afford to be tied down by dead weight.

2.    Hire a Sales Management Director – As the owner of a business, you have enough on your plate without having to manage a sales team. You may want to consider hiring someone to handle sales management for you. The extra expense will be offset by increased productivity, and later sales.

Again, this is a position that will need to be monitored for productivity. If your current manager isn’t cutting it, don’t hesitate to replace them.

3.    Use Project Management Software
– To some business owners, the thought of utilizing project management software seems incomprehensible, but even the smallest sales teams can benefit from a cohesive strategy laid out in a logical form.

Set goals for your sales staff, deadlines for specific projects and allow your sales management director to actively manage the team’s projects. You don’t have to be a million dollar company to act like one, and the result is typically success.
By focusing your energy on sales recruiting, and letting your manager handle the actual team, you’ll be freeing up your time to spend on more important matters. Hiring should take precedence in your organization unless you are at financial point where this is no longer feasible.

Three Mistakes to Avoid

Your team may not always function the way you would like, and there are a few mistakes that business owners can make that reduces productivity. Let’s look at some of these common mistakes and how to counteract them.

  • Failure to motivate. If your team is not motivated, they will not produce. It’s merely human nature, but you can harness it for the greater good of your company. The success of your company may not be enough of a motivator for most salespeople. Try finding monetary or tangible motivators to keep your staff happy and productive.
  • Letting problems continue. If you have a sales staff member that just can’t seem to get it together, the first move should be discussing the problem and setting a specific date for resolution. If that date is passed and they simply cannot meet their goals, then you will need to let them go.
  • Failure to innovate. Any business can benefit from innovation, no matter how small it may seem. Encourage your team to come up with new ideas and new concepts.

Putting it All Together

Now that you have the key ingredients to making a team that will function for your company, don’t delay putting it together. Start recruiting new team members and see where they can take your company.

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Motivate Your Sales Team Because Can’t Never Did Anything!

LAKE BUENA VISTA, FL - OCTOBER 30: (EDITORIAL ...
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I can remember it like yesterday–”Coach, I can’t do another 800 split.” As I am puking on the infield. “Billy (that is what they call young William’s in the south) can’t never did anything–finish up and give me another one.” Guess what I beat my personal best in the 2 mile at the next meet and qualified for State.

It is time to remember this lesson and put those words back in our head. No more grumbling on the sales floor. No more bitching about customers that are afraid to make a decision. Your job is to make customers understand you are the hope, you are the solution, you are the positive step in a bad market.

It is time to kill the “can’t” attitude in your organization.

Make sure your sales process and lead management system are full of reminders of  what a lack of action, effort, and belief yields–nothing! Don’t let defeatism infiltrate your sales organization, that is your number one job as a sales manager. You are the coach, whether you are leading yourself, a team, an organization. You are the only one that can make it happen.

Motivation Fuels Sales

Sales people like roller coasters. We soar on wins and dive on the multitude of objections and rejections that we get each day. This is why creating a sales culture built on team motivation evens out these individual peaks and valleys–sharing successes are critical. If you are a sales team of one get a mentor.

There are lots of ways to build this power of motivation. Here are a few guaranteed winners:

  • Run a leader board to create competitive push in sales
  • Use sales contests and games to get energy on the sales floor
  • Have sales managers showcase best practices with live calls

Leave a comment with your favorites. Be specific.

Avoid letting mediocrity creep in–routines, status quo erodes sales targets. Positive energy needs a certain imbalance and agility in the organization. Use these motivational techniques to shake things up on a regular basis.

Confidence is Customer Contagious

Sales motivation almost instantly translates into confidence–confidence is contagious. Get this element in your sales DNA right now. It will pump your sales team and reassure your customers.

A motivated and confident person will evangelize products and services with reckless abandon–giving your customers little hesitation in saying, “yes!”

Down markets and shaky economies bring customers with hesitation, apprehension, and fear. They bring these hidden objections into every sales call. Confident sales people will quickly overcome steady these client fears–making them strong points in the sale.

Confidence is contagious–transfer it to your team and your clients.

Pump Up Your Sales Numbers

Driving out “can’t,” ridding the organization of negativity, and inspiring motivation will increase your sales.

Motivation and confidence make your sales more persuasive and tenacious. It helps sales reps to overcome objections and calms customer apprehension.

Remember, “can’t never did anything.” So, make sure that your sales processes and lead management systems build a sense of urgency and confidence into your sales organization.

What are you doing to motivate your sales teams?

lead management

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Do You Recognize the 7 Early Warning Signs of Not Having a Sales Plan

Are you in a sales funk? Would you recognize it if you were? Learn to recognize the 7 early warning signs of having no sales plan–no plan to play out of your sales slump. Here are some sure indicators you are in a slump and need a plan.

7 Warning Signs of a Sales Slump

All professionals eventually end up in a slump. The classic baseball hitting slump is a perfect analogy.

We become world-class at a skill and then gradually our confidence slowly allows mechanics and fundamentals to shift out, ever so slightly creating new habits. These subtle misalignments begin to untrain our bodies and minds. Then poor performance begins to shake our confidence and the terror of doubt takes over. Now, we have created a slump.

The key to avoiding or driving ourselves out of a slump is to recognize the warning signs. Here are a few you may already notice:

  • Mindlessly organizing and sorting (leads, contacts, desk, business cards)
  • Dialing endless phone numbers with no objective
  • More time spent prospecting than engaged in good conversation
  • No benchmarks to measure progress to your quota
  • Surprised when you hear what the customer says your competitor offered
  • The same “big opportunities” are on your pipeline report week after week
  • You begin whining about your product and the price

Did you see yourself? Probably. Let’s start fixing it now!

7 Ways to Beat Your Sale Funk

Beating a slump is best accomplished by stripping everything back down to the basic fundamentals and then rebuilding on that base. Here are 7 steps to counter these warnings, before they become habits to unwind:

  • Establish a rhythm or routine that is productive. Map out the next week down to the hour and execute that plan flawlessly. Build in time for the unexpected so unavoidable fires and noise in your day don’t derail you.
  • List and post specific customer target goals. Who are you looking for and why? Build that list on the weekend. Execute it next week.
  • Once you have the list, probably built from past or current sales pipeline, don’t do anymore prospecting for a week. Concentrate instead on having good discussion (not necessarily even a pitch or presentation) with as many people as possible.
  • Set specific daily benchmarks you want to achieve for the week. Number of dials, emails, contacts, appointments, presentations, closings–don’t leave until you hit the mark.
  • Build a playbook (on the weekend) of current and past market (education), most likely customer scenarios (pain points), competitors (strengths, weaknesses, pricing)–post it
  • Close the big opportunities or push them into lead nurturing. Stop focusing your mind on lottery pulls instead of achieving results
  • Stop whining! If the product or the price is unsellable then you are just an expense to the company and should be cut while they fix the product. I think it is bad form to argue for your firing.

Get back to the basics, strengthen your fundamentals, and drive out of your sales slump into even higher plateaus of performance.

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