Back to Basics: Customer Acquisition

by ColinLewis on / 2 Comments

Category: Sales & Marketing

SPECIAL GUEST BLOG By Colin Lewis, Marketing and Business Development Mentor, Mentors.ie

Many companies appear to assume their sales process is like buying an ice-cream. The steps in buying an ice-cream are real simple. It’s hot. There’s a shop. Open fridge. Agonise overchoice of Choc-Ice or Magnum.  Moan about cost of said ice-cream at till. Consume.

There is another one – more my style, in fact: see Mr. Whippy Van. Or better still, here the cheesy music, and think about running after the van like I did when I was a kid. Ask for a ’99′. Hope they are adhering to HAACP rules. Eat ’99′, providing it does not melt over your hand, or worse still, fall on the ground, leaving you with an empty cone.

Unfortunately, not all decision-making processes are like that. In fact, most are not.

However, looking at most companies sales processes, it would appear that this two or three step process is what is expected of customers. And, in turn, blame their sales guys on their inability to close deals more or less immediately.

So, here is my six-step back-to-basics for building new customers:

  • Think: A sale should not be seen as a results of single ‘event’ or an ‘act’, but a process
  • Never assume: Do not believe that a prospect will respond to a single sales step, such as an email, or a phone call
  • Structure: A structured sales and marketing sequence is required to be put in place, and understood.
  • Sequence: Build a sequence is based on step, building on the one before it.
  • Discipline: Bring people down a road, where each step is a baby step to build rapport – have the discipline to think about NOT getting the deal on the spot.
  • Imagine: Visualise a sales funnel to show the step changes to get the company or individual to act, be it buy the course or become a member

26 Reasons Why People Buy

by ColinLewis on / No Comment

Category: Sales & Marketing

SPECIAL GUEST BLOG By Colin Lewis, Marketing and Business Development Mentor, Mentors.ie

One of the original direct marketing gurus was the late Ed Mayer. He came up with the “26 Reasons why people buy”. An oldie but a goodie – but still applicable today to all forms of marketing.

1. To make money

2. To save money

3. To save time

4. The avoid effort

5. To get more comfort

6. To achieve greater cleanliness

7. To attain fuller health

8. To escape physical pain

9. To gain praise

10. To be popular

11. To attract the opposite sex

12. To conserve possessions

13. To increase enjoyment

14. To gratify curiosity

15. To protect family

16. To be in style

17. To have or hold beautiful possessions

18. To satisfy appetite

19. To emulate others

20. To avoid trouble

21. To avoid criticism

22. To be individual

23. To protect reputation

24. To take advantage of opportunities

25. To have safety in buying something else.

26. To make work easier.

 
 

5 Keys to Optimising Your Sales Team

by Fiona Flynn on / No Comment

Category: Sales & Marketing, Uncategorized

SPECIAL GUEST BLOG By Fiona Flynn, Sales and Marketing Mentor, Mentors.ie

Fiona Flynn, Mentors.ie and Chair of Irish Sales Champion Awards, says that most sales teams have remarkably similar issues.  There is a tendency to focus on existing customers, as habitually as a rabbit run, performing the same ritual tasks, buried in administration and  not clustering meetings.

The ultimate challenge for sales managers is how to get the team focused on new business opportunities.

The answer is to conduct an indepth analysis in conjunction with sales people, to examine where and how exactly they are spending their time.  The results can be eye-opening for the entire team, at the very least and can save thousands of euro in wasted resources.

The reality is that this is a process welcomed by executives and their sales staff.  Sales people complain that they would prefer to devote their time to sales rather than administration.  The organisation has to be specifically structured to help them to achieve greater efficiencies, otherwise the burden of administration and processing continues to fall their way.

It is important when managing a sales team to find a balance between micro-management and allowing the good people to achieve their sales targets.  Continually focus on and measure prospecting, sales meetings, and the level of administration that your sales people are engaged in.

When you know that your sales team could achieve more, how do you achieve that productivity boost? Here are  five keys to optimising your sales team:

Identify training requirements.

Make sure that your sales people are trained to the highest standards and that they are familiar with the best ways to sell.  Selling is an art and a science.  Your team need to be familiar with the intricacies of prospecting, generating warm leads and acquiring strong business referrals, for example

Consider centralising lead generation.

A number of companies now use business analysts or high quality call centres to work with sales teams on lead generation and even to make appointments for sales staff.  Lead generation absorbs a considerable amount of sales time, as does the necessary research into qualifying the lead, and this research must be thorough.   Centralising lead generation allows sales people to focus on what they were hired for – customer interaction.

Increase Core Selling Time.

Most sales people complain that the administrative burden placed on them significantly decreased their time for sales.  This burden can take up as much as 50% of their time, on average.

  1. Provide administrative support so that sales people are free to sell
  2. Allocate dedicated resources for CRM system updates and lead generation
  3. Eliminate duplication of CRM systems and other reporting structures
  4. Route customer complaints through a dedicated resource

Empower the sales team.

Relationship building and team connectivity is core to strong sales.  Use intelligent performance management, feedback and sales support to ensure that sales people remain motivated.  Connectivity through technology has also proven useful in reducing staff turnover.  This may include remote email, internet and access to SalesForce.

Support the sales team with great back-up service.

Sales people very often complain that they put effort into recruiting a customer, and that the delivery side of the business puts equal effort into losing them again.  Make sure that your back-up service teams, customer sign-up processes and delivery capability is as professional as the people who are selling for you. Marketing also has an important part to play.  When the marketing and sales teams work closely together on initiatives to attract customers, we discovered that the impact and success of the campaigns are multiplied.

Fiona says that selling like fishing requires prioritisation. “You can’t just go out to a lake and keep casting.  Selling requires a well-informed focus on rich territory, minimum distraction and it also requires backup in terms of training, lead generation and reward for good performance.”

4 Practices For Achieving Excellence in Sales

by Fiona Flynn on / 107 Comments

Category: Sales & Marketing

SPECIAL GUEST BLOG By Fiona Flynn, Sales and Marketing Mentor, Mentors.ie

The inaugural Sales Champion Awards were held in June 2011 and I had the honour of chairing the judging panel.  All of the judges were enormously impressed by those nominated for the sales awards – the energy, the passion, the determination to succeed in a highly challenging marketplace.
It had been tough choosing winners from the field of excellent people that we met.  There was tremendous excitement on the night.  The one common trait that everyone shared in the room that evening was optimism.  Belief in the future, belief that success was achievable and belief in themselves, as sales professionals.  This was a room filled to capacity with winners.
Here are four common practices that can help you to achieve excellence in sales – and they can be applied to any business:
1. Prepare and Plan
Never approach a prospective customer before you do proper preparation and planning for the encounter.  Know the profile of your ideal customer.  Ask yourself whether the customer that you want to do business with actually matches your ideal customer profile.   Do they have a need or problem that your product or service can satisfy well.
A key to success is to focus on seeking out high quality leads.  If you are certain that what you offer is a good fit for the prospect, then your conversion rates will be higher.
No detail is too small to consider.  Even giving careful consideration to the time of day that you make the call could influence your success rates.
Mystery shop – work out how people buy from your competitors.  Become a customer of your competitor and become a customer of your own business.  Identify the strengths and weaknesses of both and aim to be the best.
Talk to your customers.  Continuously get feedback from your customers.  Why do they buy from you?  What do they prefer about you over your competitors and vice versa.
2. Build Trust and Rapport
People buy from people.  Personality, integrity, and understanding are key ingredients to successful relationships.  Every interaction with the customer, by your business, influences the customer’s impression of you, your product or service and your company image.
Build rapport and trust.   Remember that the sales conversation is not a one way presentation about the features of your product or service offering.  It is a two way discussion taking into account the customer’s needs and problems and how you intend to satisfy those needs. The sales conversation begins and ends with listening to and satisfying the customer’s needs.
3. Solve a problem / Satisfy a need
People are complex.  They have real problems and identifiable needs.  As a sales professional, your job is to understand what is going on in their world.  What issues are they dealing with – that you can help them with?  Are they concerned about budgets, design, functionality, timing of delivery, or emotional impact?   How can you help?
Understanding the challenges that customers face is important.   Communicating that you understand and can help them is critical.
Next comes the delivery piece – make sure that you back up your understanding with excellent customer service.  Sales is not just about getting the deal over the line, good sales people ensure that the delivery is also excellent.  Focus on doing the little things right – ‘thanks for the order’.
Ensure paperwork/order is completed correctly so that the order is processed efficiently.  Focus on providing customers with a feel good factor – I know xx won’t let me down….  This approach is proven to achieve repeat orders and referrals.
4. Reward and Celebrate success
Are major wins and good results celebrated in your business?   Recognition and praise of your sales team goes a long way.   The feel good factor of getting recognition for a job well done helps motivate other members of the team to aspire to do well.
It is also important to remember that happy sales people achieve greater success because they exude confidence and radiate positivity.

12 Ways to Reduce Costs in Business

by SeanDonnelly on / No Comment

Category: Finance, Sales & Marketing, Strategic Change

SPECIAL GUEST BLOG By Sean Donnelly, Financial Management Mentor, Mentors.ie

The manner in which costs are reduced can either greatly help or seriously damage a business. Cutting the wrong costs or failing to reduce the appropriate

costs could endanger prospects for getting through the down-turn and the recovery prospects for a business. Irrespective of the organisation size the principles remain the same. The challenges for management are:

1. Not just about reducing costs in absolute terms but reducing unit operating costs.

2. Increasing efficiencies and competiveness.

3. Retaining the right staff and bringing the organisation with you.

4. Do it responsibly and with respect.

In summary there are at least 12 ways to reduce costs:

  1. The simple approach: Cutting all discretionary spending on advertising, recruitment, training, delaying payments etc. This approach is simple, direct & effective at stemming cash outflow quickly.
  2. "Bureaucratic" cost reduction: Centralised, imposed, rule-based cost control with strict budgetary controls.
  3. "Equitable" cost reduction: Setting cost reduction targets e.g. 10% for every department. This approach frequently brings out the "departmental/functional" mentality.
  4. "Stretch targets" – This is similar to the “equitable” approach but "stretch" targets means that the target varies by each functional area so that those areas where there is believed to be greater cost reduction opportunity can be asked to stretch towards a more demanding cost reduction target than other areas.
  5. "Sweat the assets" approach: e.g.. cutting debtor days, reducing stocks, selling assets, delaying supplier payments.
  6. Relocate: moving to a cheaper location.
  7. "Changing the way we do things": Reviewing and re-engineering business processes, reviewing the way we service customers, reviewing overhead and IT effectiveness.
  8. "Changing the mix of what we do": Trimming bad products/services, trimming poor customers, reviewing & changing routes to market & distribution channels, reviewing cost drivers. Activity analysis, data collection, challenging the way we do things are key steps of this process.
  9. Simplify/rationalise the company structure: Review the organisational effectiveness including delegation, accountability, job specifications and performance targets.
  10. Strategic purchasing – working with suppliers, buying smarter etc.
  11. Outsourcing.
  12. The strategic option – This incorporates all the proactive elements of the above including restructuring the company in line with a strategic plan to fulfil customers requirements.

Any approach focused taking only the first few steps alone will be unlikely to yield sufficient advantage over competitors taking a more strategic view. In summary, the most effective way to gain long-term advantage from a cost-reduction process is through squeezing all costs, eliminate all waste, changing strategic shape, playing to and building on strengths, maximising efficiencies from all necessary processes whilst eliminating unnecessary processes. A properly implemented cost-reduction programme offers a business a chance to re-position itself for a better future, re-focus on customer's real needs and to re-define how value is added.

The first step in increasing efficiencies is a thorough analysis of the role of all activities in the achievement of the strategic plan and of how value is created for the company & customer. Research suggests that c. 40% of operational expenses result from wasteful activities that add no value to the customer and therefore should be eliminated. There are 7 types of process waste that can be identified in virtually every organization: 1) Transportation. 2) Inventory. 3) Excess movement. 4) Waiting. 5) Over-production. 6) Over-processing and 7) Defects. Those activities that are not relevant can be eliminated or modified, thereby reducing costs, redirecting associated resources to more relevant tasks, and maintaining a high quality of service at the lowest unit and total operating cost.

Back-end Selling to Extend the Customer Relationship

by Micheal O Callarain on / 2 Comments

Category: Sales & Marketing

I was watching a popular television how the other evening where they were engaging in the selling of novelties to an overseas client. A statement was made in that show that the real profit for the sales was made on the “back-end” sales of additional products once the customer was on the line. Intrigued by what the profitability was behind that idea I went in search of some information on back-end selling and how it really reduces your advertising costs as a percentage of sales.  Back-end selling has been done by large chain stores as “loss-leaders” since the inception of grocery stores. As a practical example can imagine the cost of advertising if they had to blanket the market with adds for every single product they sell? 

Back end selling effectively reduces the cost of the sale by exposing the client to additional products above the one that is being initially sold or advertised during the initial sale. This can successfully be done through affiliate marketing after the sale and outsourced through your CRM system. Traditional methods of this include newsletters showing the back end merchandise to the initial customer following the initial purchase of a related item, or a thank you email showing a custom email signature offering another related item that just happens to be attached. 

A more robust feature of back end selling is present however in what we do every day on Amazon, where they say “Customers that bought “X” also bought “Y””. Perhaps a more effective version than even that method is to drive in accessory products into the initial sale that may lead to other primary products. A practical example of this technique is the purchase of an MP3 player and the selection of a specialty headphone. This headphone can then be used to drive the compatibility with another form of MP3 player as well as a specialized case for both the headphones and MP3 Player. Back-end selling can easily be leveraged more robustly as the more thought is put into the standardization and relationship of product. 

Remember however that the continued relationship for back end selling requires the initial purchase to be “at home” good… and that the initial product will be judged by the buyers as the benchmark for the affiliated products that may support the initial purchase. Outlets like Brookstone rely heavily on back end selling to introduce potential customer to alternative unrelated products following an initial purchase, and they are so successful because of the consistent standard of their entry product. 

The Lexus Effect

by ColinLewis on / No Comment

Category: Sales & Marketing

SPECIAL GUEST BLOG By Colin Lewis, Marketing and Business Development Mentor, Mentors.ie

Until recently, consumers had a limited repetoire of companies that they could choose to deal with.

This was often dictated by where they lived, how their tastes had developed, and what form of advertising was used. Of course, this is not the case anymore.  The woman shopping in the local mall is also looking at Amazon and eBay. It’s so obvious that it’s barely worth even mentioning that they can check out it all online.

The typical consumer doing their research will know more about how you stack up against your competitors than you do. It may be because your service or product does not stack up in terms of the price you’re charging – in the customer’s mind. As Seth Godin says, ‘Low price is a great way to sell a commodity. That’s not marketing, though, that’s efficiency’.

There is also the second more subtle issue. This is the expectation that your potential consumer is not bringing his experience from other industries to yours. You put out a product and service that is good enough in your view. In isolation, that may be the case. But, the same consumer is spending time on Facebook, watching TV, reading the Sunday supplements and driving around in a Lexus. Or a Mini or a Fiat 500. He or she is not operating in isolation – yet thats how we often think in many case.

If you are interested in buying a car, some of the Korean brands offer seven+ or longer warranties. Lexus came from nowhere to grab market share from the big guns in Germany, Mercedes and BMW. The guys at Lexus ruined it for everone else though, as they set new expectations from a business that had very low expectations post-purchase.

Use this new playing field to your advantage. Sure, keep tabs on what your competitors are doing you, and you will be more competitive.

However, look outside the industry: think how consumers import their expectations and experiences from elsewhere? Your business is not different. Having worked in five different industries now, I can pretty much guarantee that most businesses are the same. Yes, the economics can be different, but there is a lot more in common between marmalades and Andrea Bocelli, the opera singer (but thats for another blog!)

Think about the Lexus effect in your business. Can you replicate? Can you offer guarantees no-one else can? If not, why not?

Marketing to Austerity

by Micheal O Callarain on / No Comment

Category: Sales & Marketing

There's no doubt that Ireland and Europe are facing some tough times and hard decisions in the near future.  Ireland itself faces considerable debt problems and unemployment rates at levels not seen for decades.  Can you successfully market in a bad economy?  Absolutely, but you need to take the dynamics of a downturn into account.  

Recessions mean people have less money, but even in a particularly bad recession, consumers still have more than 90% of the money they had before.  What you must account for is that recessions are caused by caution – people being unwilling to part with the money they have.  So when marketing to those cautious consumers, bear these in mind:

1. Invest in market research.  Marketing begins with gathering intelligence about your consumer, and in tough times customers will segment differently and act differently than they used to.  You need that information now more than ever, and you just might be able to get it at a better price.  

2. Customers will move to inferior goods.  No, not lower quality goods, but what economists call inferior goods – products that gain market share when money is short.  During tough times consumers move away from features and ostentation and look for durability, value, and goods that serve multiple features rather than specialized applications.  Those parts of your product line should be highlighted in times like these – customers are looking for them!

3. Price is about more than the sticker price.  The customer who's tighter with his money wants a lower price, but price is perceived in ways other than just the per-unit price.  In tough times customers are also concerned about volumes, inventories, and commitments.  Pay-as-you-go cell phone plans are soaring in popularity over contracts not because the units are cheaper – in fact, contracts are often cheaper per minute or per text message – but because consumers don't want long term commitments in times of uncertainty.  How can you reposition your product or service pricing to take advantage of this?

4. Speak to your customer's concern.  There's no point in pretending the economy is great. Instead, let your potential customers know, in appropriate terms, that you understand their doubts and concerns.  If they feel you are a supplier are on their side, they'll trust your product and service.

Business have gotten through recessions before, and yours can get through this one too, if you research the changing market, find out what goods and at what prices the consumers are will to buy, and let the consumer know you're selling things they still need and can afford. 

Personal Selling

by Micheal O Callarain on / No Comment

Category: Sales & Marketing

It seems that so many SME business owners are eager to talk about the value of their company’s core product offerings, and yet they shy away from calling themselves “sales people”. It’s a shame, really, because personal selling done well should be a pleasant exercise in relationship building for both the buyer and the seller. In business, it’s especially important if you’re negotiating a large sale; whether a significant capital investment or a long-term service contract. It’s a multi-step dance between the two parties, designed for mutual satisfaction.

Prospecting is simply identifying well-qualified purchasers who need your product. Note that the emphasis should be on need – you have to be certain that your product or service is an excellent match to your client. You want to gather the correct contact information for your prospect (including whether they’re the key decision maker or need to refer to others) and to make sure that their company is in a financial position to buy your product.

The pre-approach is defining how your product is best suited for the potential customer, and gathering as much information as possible about the company you’re selling to. You don’t want to start your selling process completely in the dark. Wow your prospect by knowing exactly how your product or service will fit into their company.

The approach is the first contact with the prospect. The purpose is to build a positive relationship, and to ensure that your pre-approach information is spot-on. Sales professionals often refer to this as ‘getting a foot in the door’, but more importantly, it’s about asking open-ended questions to allow your prospects to clearly define their needs.

The Presentation. If you’ve determined that the prospects are viable and they’ve awarded you time and attention to make a presentation, this is the opportunity for your sales professional to tell a story. The story is simply “We understand your problem” and in keeping with that position, a skilled sales person will let the potential client do most of the talking.

Overcoming objections is the stage of the sales process in which a true sales professional will earn his commission.  Rather than avoiding objections, a good sales person will seek them out and squash them ruthlessly. The message at this point should be clearly defined as “Our product/service will solve your problem.”

Closing the sale. In the typical sales strategy, this step is defined as a key stakeholders’ signature on a contract, and/or a firm financial down payment for the product or service. Many a sales process will fall through at this point and businesses are left with an ongoing prospect that never quite commits to the deal. In the case of the car salesman, this is often the step jumped straight to from the “Hi, my name is John” introduction, lending to their nasty reputation. Closing a sale is a delicate balance of pressure and personality assessment, and the experienced sales person will go back to overcoming objections many times if needs be to successfully finish this step.

Follow-up is the final step of the sales process and the one most frequently dropped by forward-focused sales people. The sales person has represented the company to this point and build the relationship; its disheartening to a new client to be dropped like a stone the moment the papers are signed. More importantly, follow-up introduces the possibility of up-sell and cross-sell in the future; a critical step for ongoing revenue generation and customer satisfaction.

If your company employs a personal selling strategy, whether through a sales professional or the owner, it’s worth reviewing these simple steps to ensure that you’re hitting all the right points.

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