9 Behaviors of Great Salespeople

People aren’t born to be great salespeople – it is a learned trait nurtured over many years. Chances are your organization has great, good and bad salespeople. Because sales managers are often dealing with the bad apples, they aren’t investing enough time in coaching the good salespeople to be even better. If you are the sales leader in your company, you must either hire the best salespeople from the beginning or carve out more time for developing employees before they leave.

Beyond their bottom-line performance, what does a great salesperson look like?

1. They are a consultative salesperson. Gone are the days of talking about all the great features of your product and pushing until the prospect (regrettably) agrees to buy.
2. They do everything asked of them and more in their first year with a company. Year one is an important period for learning and that requires extra effort from the new salesperson. They are also comfortable with the fact that their sales activities are under increased scrutiny as they get out of the gate.
3. Real salespeople know their product and services. They always have a crisp elevator pitch and value proposition prepared along with 10 questions. Their messaging sounds natural but is practiced and often memorized so they are always prepared; even this weekend when they bump into a prospect at the grocery store.
4. They are authentic – and memorable. They don’t change their personality in front of prospects and clients which ultimately creates real connections. They also say “please”, “thank you” and “I’m sorry”.
5. Great salespeople really listen. They are curious and ask a lot of open-ended questions. If the prospect or client is talking, the salesperson is probably winning.
6. They sell solutions. Most prospects don’t really care about your product or service. They have a challenge in front of them and it can potentially be solved with your product or service.
7. Winners are consistent. They take days off and have a balanced life, but they always hit their activity numbers, follow up, dot the i’s and cross their t’s.
8. Closers drive towards YES or NO. A great salesperson must be aggressive and is conscious of time management. This means they understand how to target and qualify prospects. They aren’t here to please prospects, but to close deals (or move on).
9. They continually learn. It doesn’t matter where they start, the best are always improving regardless of age or experience. They actually read the sales books given to them and challenge the entire company to better understand the prospects and customers.

Of course, being the best translates to hitting their sales and gross margin numbers. Your bad salespeople are regularly stuck between 1-2 times gross margin. Your good salespeople are hovering between 2-3X. The great ones are at 4X and beyond. Investing more time in your better salespeople is easy math. Is it time to cut the cord on your lowest performer? The answer is YES if it’s affecting the time you can spend with the rest of the team.

It’s time to grow faster~ Drew

drew@blueoctopusllc.com

blueoctopusllc.com

4 Tips to Become More Memorable

In sales, we must be memorable. How do we do that in 2019?

The other day as I was digging out some old boxes and organizing my storage, I ran across an unopened box of 1987 Topps baseball cards. I decided that I was going to open a few packs…

As I opened the first one, a wave of nostalgia kicked in, carrying with it a rush of childhood memories surrounding collecting baseball cards. The feel of the waxy paper that held the cards, the gum stain on the last card in the pack, the players that I cherished from that season and the old piece of gum itself. I even had to try the gum – but wouldn’t recommend it to anyone else!

The human mind cements an incredible amount of memories attached to a smell. If you grew up playing tennis, open a fresh can of balls and it will likely induce some nostalgia from the old days on the courts. The smell of chlorine may cause you to recall positive memories at the swimming pool. Freshly baked chocolate-chip cookies might take you back to your childhood when mom pulled them out of the oven.

These memories are powerful and even emotional. The positive emotion is what cements it as memorable. But you might sell something that your prospects can’t even touch (much less smell) … how do you become memorable enough so that they will think of YOU when it’s time to buy?

1. It starts with being UNIQUE. If your product or service doesn’t have an attribute that separates it from anything else in the world or is easily replicated, the only differentiator is price. And if lowering the price is your method of landing the next client, you’ve already lost. What is your unique differentiator? Are you clearly articulating to the prospect its advantages and benefits? This is an absolute must.

On the same note, make sure YOU are memorable alongside your company’s product or service. Are you differentiating yourself and highlighting your strengths?

 2. You LISTEN well and ask purposeful questions. Your next prospect doesn’t really care about your offering. They are concerned about their problem or challenge ahead. On an appointment, I strive to understand the prospect’s three biggest priorities at the moment. If I don’t have a solution to those priorities, it’s probably not the right time to be closing.

3. You are CONSISTENT. The last time you were in front of the prospect, it was the wrong time – but the very next month, your solution may be relevant. Are you keeping in touch until the moment is right? This is one of the simple keys to developing my last point – trust.

4. You establish TRUST. They might like the fact that you were present but didn’t push. Or maybe you helped them in a different way with a referral or pointed them in the direction of a solution that you personally don’t sell. Maybe their communication style is short and sweet, so you mimic them by also quickly getting to the point. Trust is many things, but it comes down to them having absolute confidence in YOU.

On a recent appointment, I brought the prospect a cup of Starbucks coffee. I chuckled to myself as they peeled off the lid and took a deep breath, taking in the aroma that led them back to some unknown memory. Unless you are selling scratch and sniff stickers, you aren’t going to sway the prospect with a childhood memory. Being memorable comes through the hard work of listening, consistency, trust and clearly communicating what makes you unique. 

It’s time to grow faster~ DREW

drew@blueoctopusllc.com

blueoctopusllc.com

The Effect that Good and Bad Apples have on your Sales Team

A “great” salesperson isn’t just a performer – he/she is a team player who is able to help co-workers due to their experience from past challenges and successes. A “bad” salesperson isn’t only a poor individual performer, they are a bad employee even as they attempt to sell for the organization.

I often talk about the importance of hiring strong salespeople, but today I’m sharing a true story about the positive impact of a great salesperson – and another example of the ramifications of keeping a bad salesperson.

The Good Apple

A few years ago, I was consulting with a company and running their monthly sales meeting. Other than their monthly meeting and separate one-on-ones with their leadership, I had little contact with the salespeople outside of those two hours a month. My job was to run a great meeting and motivate the salespeople while keeping them on track.

What the meeting was lacking was a veteran salesperson. I asked ownership why their top three performers weren’t required to attend the meeting and convinced them that we needed to have the best of the three present at the next three sales meetings.

We quickly determined that Julie was their best all-around salesperson. She knew which suspects made great prospects… she knew how to balance the workload and pressure of hitting her goals… and Julie knew how to close.

Because I wasn’t a full-time salesperson in the company, Julie was better equipped to share real examples with the greener group of 8 salespeople. I asked Julie to attend three meetings and basically, made her a one-person panel.

1. At the first meeting, I asked her 10 questions about lead generation and the activities she focused on in order to always have enough prospects in her sales pipeline.
2. In the second meeting, I focused my 10 questions on targeting and qualifying. Which suspects and prospects deserved her time?
3. In the third meeting, it was all about the close. How did she hit her record numbers over the past year? Exactly what was her sales process all the way to close? She knew the questions that I was going to ask ahead of time and never failed to show up prepared with great examples and stories.

WWJD?

By the end of that third meeting, I saw the sales team’s eyes light up. For the next few months it was WWJD – What Would Julie Do? We talked about how she built up her base of clients over the last four years. We discussed her obstacles and how she overcame them. The effect she had on that group as a significant sales performer was immeasurable. By the end of that year, the company had surpassed their 16% projections – mainly because of the newer group of salespeople getting out of the gate faster than expected. I give most of the credit to Julie.

The Bad Apple

This past year, I had a 6-month project working with a software company. Before I started the engagement, we gave a sales assessment to the entire team of 11 salespeople. 4 of them were clearly wired for sales. 6 of them seemed coachable and had the potential to become top performers. One was an obvious misfit for the sales role.

Thomas was the sore thumb. He had been there for two years and hit his goals just once out of all eight quarters. I joined him on a sales call and caught him out-right lying to a prospect. As I dug in, I realized that there were two tough customers the company worked with – both clients had been landed by Thomas. In my second month, a project manager shared with me that there had recently been an issue with a client that had been promised a delivery date that wasn’t humanly possible. Guess who was behind that promise? Thomas.

Thomas showed up to half of the internal meetings late. He blew me off as someone that couldn’t help him with his sales process. He had a likeable personality and supposedly a huge rolodex when he was hired, but he wasn’t a good salesperson.

The year prior, half of the salespeople hadn’t hit their numbers. It didn’t seem to be a problem with their software, operations or delivery. The problem seemed to rest squarely on the sales team’s lack of activities. And Thomas had the least phone calls, least appointments and fewest proposals the prior quarter.

Harvard Review recently did a study (https://bit.ly/2FrduBJ) and found that “employees are 37% more likely to commit misconduct if they encounter a co-worker with a history of misconduct. This result implies that misconduct has a social multiplier of 1.59 — meaning that, on average, each case of misconduct results in an additional 0.59 cases of misconduct through peer effects.”

I convinced management to cut ties with Thomas. Without his negative presence, I’m confident that most of this team will hit their 3^rd and 4^th quarter numbers if they commit to the activities. For those underperforming, their chances probably doubled the day he walked out the door.

The bad apple exists in most companies. If he/she sits in the sales team, they are costing you real money. Good apples pay dividends – not just in terms of their individual production, but the amazing effect that they can have on the rest of the team.

It’s time to grow faster~ Drew

drew@blueoctopusllc.com

blueoctopusllc.com

4 Questions to Take out of your Backpack

Your kids have probably loaded up on pencils, notebooks and a few new clothes in preparation for another year. Summer vacations in Minnesota are aplenty and it always seems to be the slowest time of the year (quickly followed by the busiest). As fall arrives, this is an important time to refocus and examine past and present business and personal goals. As we shift to a more hectic time of year, set aside an hour to do a little self-reflection.

The August stock market has soured as the United States, Europe and China’s economies have decelerated in 2019. The Federal Reserve cut rates, job growth has slowed, China and the U.S. haggle over trade agreements and Brexit drags on – there is a lot of uncertainty and undoubtedly, lack of confidence in the year ahead.

Economic highs and lows are a part of running any business. Don’t miss the opportunity to gain market share if the downturn occurs. As your competition restricts, they will under-perform and provide you a chance to gain new customers. Are you ready to seize the day?  

September is upon us! This month can be critical for you setting the right tone as the end of the year nears. Below are a few questions for you to consider as you approach the last four months of the year.

1. How did the last 8 months go? Have you taken time to objectively reflect on the successes of the first half of the year both personally and professionally? If not, take a moment to note how the big deals were closed, how goals were accomplished and why you missed the mark on others.

2. Are you ready for the last 4 months? Your sales projections for September through December were probably made almost a year ago and may likely seem a little out of touch right now. It’s time to fine tune them. If the general business climate is slower, do you have sales methods to overcome it? What is your big hairy audacious goal for this year? Which goal needs to be put aside for the moment – so you have the time to ensure that you surpass your gross margin goals?

3. What else do you need? Do you have the support and resources around you to hit your numbers? Who can help? Have you reached out to them? People make the world go round and often we fail to simply ask for support and guidance.

4. Are you happy? We probably don’t ask ourselves this question often enough. Do you have the right position and work environment – or is that something you need to work on before 2020 is upon us? Do you have the best team around you? Whether you are the manager or not, you have an influence on your team and culture.

This 2/3’s turn of 2019 must be a time for questions and reflection as you charge forward. If you are behind, it’s still possible to catch up. If you are asleep at the wheel, a good year can turn south quickly. And if you are on track, examine what you accomplished and how it can be repeated or even improved upon.

Good luck accomplishing your remaining 2019 goals!

It’s time to grow faster~ Drew

drew@blueoctopusllc.com

blueoctopusllc.com

The Game of Tones

Woot woot! John Snow and Winter are no longer coming – and the final episodes of G.o.T. are finally behind us. I never watched the show for the sake of time, but it’s 67 episodes are on my list of things to do when I retire!

Today’s topic is about your voice. If you are in sales or leadership, it’s vital that you understand the importance of your tone and pitch in communication – certainly in the workplace, but it comes in handy outside of work as well.

When I had the opportunity to be on the radio this past spring, I did a self-examination and put my voice under the microscope – specifically for the radio program, but also as an ongoing examination of “What do I really sound like?” and I went through the list below on the 8 areas in which you can improve upon your communication.

1. Volume. Identify if you are a quiet, medium or loud talker. You don’t hear yourself the way others hear you (hence, record it!) so you are probably going to have to ask others for feedback if you are unaware. Adjust your volume to the appropriate level for any given situation.

2. Tone. In speaking, as opposed to music, higher or stronger intonation is created by using more volume. More volume – or loudness, in the musical sense – does not raise the tone to a higher pitch. Sometimes the most effective method is lowering your voice. The psychology says that people key into those words because of the change and take your calmer sounds more seriously.

3. Pitch. Your pitch can refer to intonation, but it can also refer to the overall level of brightness in tone that a speaker consistently maintains. According to the BBC World Report on NPR, British speakers generally speak with a higher pitch than American speakers. Of course, everyone is different, but there is some general truth to this.

The higher the pitch, the louder one’s voice will sound. To the extent that pitch is like intonation, there is the potential for misunderstandings when we consider pragmatic language. There is also the potential for simply not being understood at all by using intonation and stress patterns in both words and phrases that are foreign and unfamiliar to native speakers.

4. Speed. The number of words communicated over one minute has everything to do with the setting and audience.

• In a speech, you slow down…
• On the radio, you exaggerate your annunciation of words at a steady pace (but don’t pause for more than 1 second!)…
• Over the phone, you also focus on pronunciation but should pause occasionally throughout the conversation…
• In person, pronunciation isn’t as important as your pace and pauses…
• One on one with your best friend, you probably talk twice as fast as normal…
• And of course, around your grandparents, your speed slows down…

See a theme here? You are probably talking too fast and your listener is missing a lot of your message.

5. Confidence. You must be aware of the fine line between confident and cocky. If you are boasting, it should start with a self-deprecating comment. Whatever you do, don’t use a booming voice when you are across the table from someone or you’re likelier to sound cocky versus confident. Confidence is important in creating conviction behind your statements. You want the audience to believe you so convey confidence in your words. Too many hesitations, “um’s” and “ah’s” as well as licking your lips may cause the listener to doubt you.

6. Listening. An underrated component in understanding your own voice is being a better listener. Are you aware of the volume, tone and pitch of others? Do you consciously listen for it over the phone? If you can hear it in others, you can start to hear yourself better (at least when you record it and play it back to yourself). If you show a genuine interest in their words, you are more likely to receive the same level of interest from the other side.

7. Authenticity. I’m a HUGE believer in authenticity, as many of you know. This isn’t about faking it, it’s about training yourself to communicate better. It’s not about changing your personality, it’s about raising the volume of your mousy voice or slowing down your motor mouth. We all have a natural style with some bad habits – similar to learning how to use “bigger” words or spell correctly, we all need to work on the sounds that come out of our mouths.

8. Non-verbals. Your audible words along with non-verbals all play into communication style. Make sure your physical positioning is in sync with your voice, so you’re easily understood. Here are a few suggestions:

• Are you pursing, biting or licking your lips?
• Are you maintaining a balanced level of eye contact with your audience?
• Is your body in line with the listener(s)?
• Are your hand movements in sync with your message?
• Are you crossing your arms and looking disagreeable?
• Is your body language relaxed and approachable?

Here is a link that will give you more non-verbal suggestions: https://bit.ly/2x2rESK

Practice makes perfect.

The key to really getting others to listen to you is your own curiosity. Analyze yourself and others’ communication styles. When talking with others, use their first name and ask questions. NOW they are interested in what you have to say.

Practicing these habits rewires your brain and soon the changes won’t have to be conscious (21 days creates a new habit!). As you record yourself on video, you are going to see other habits to be aware of as well. I’ve managed and coached salespeople for years and I’m adamant that they should record their presentations quarterly in order to watch and hear themselves and hone their craft.

Since it’s impossible to make a living without communicating with other humans, make the most of it. We all want to be understood. Never stop working on helping others understand you clearly by refining your communication skills.

It’s time to grow faster~ Drew

drew@blueoctopusllc.com

blueoctopusllc.com

Changes to Your Business Bookshelf

No longer a classic.

Good to Great… it’s time to put it away along with Collin’s Build to Last and Tom Peter’s In Search of Greatness. They made a lot of money off us over the years, but their philosophies were false, and they are outdated today. At the bottom of this blog, I have a list of 11 books that I would recommend.

Between those three aforementioned books, Tom & Tom named 50 successful businesses that were destined for long-term success. 19 of those companies beat the market… 13 succeeded to meet projections. That leaves 18 that failed including Maytag, Ford, HP, IBM, Delta, Kodak, Citicorp, Motorola, Sony, Pitney Bowes, Fannie Mae and Circuit City.

What did the Toms have wrong? Only two major things:

1. They had NO IDEA what technology was going to do to these titanic companies. I can forgive them here.
2. These companies are all running their companies on short-cited decisions that focus on profits NOW. Their stock value TODAY.

I won’t delve into the technology boom and unpredictability of the internet that brought Wi-Fi and an astronomical shift to cell phones and smaller devices. Only a few of the technology greats predicted it would happen as quickly as it did.

But #2 has stuck in my craw throughout my lifetime. Why are we making stupid decisions in major companies and pretending its wisdom? Everything I’ve seen in publicly traded companies is based on squeezing the most out of the orange this quarter. Even the model companies like Apple, Facebook and Google are under this same pressure.

The leading companies on this list are following the same path. Sure, go ahead and invest in them because half of them will succeed and pad your retirement – but we must make some changes in America. Or at the very least, in your business.

Don’t run your business like a publicly traded company. Stop looking at Wal-Mart, Philip Morris, Merck, Disney and Johnson & Johnson like they have something to teach you. They are hiring and firing without emotion, they are destroying our environment (or at least China’s), they are gluing our eyes to screens like never before and they are propagating an epidemic of “medicines” and mental health into our U.S. culture.

Instead, build your business making long-term decisions surrounding profit – and an authentic culture.

A few books to read in 2019:

• DO NOT put away Carnegie’s How to Win Friends…
• …or the Art of War by Sun Tzu
• The Snowball -Warren Buffet
• Crush It! -Gary Vaynerchuk
• The 4-Hour Workweek (becoming an oldie but goodie) -Tim Ferriss
• Drive -David Pink
• Predictable Revenue -Aaron Ross and MaryLou Tyler
• Smartcuts -Shane Snow
• Learned Optimism -Martin Seligman
• Mojo -Marshall Goldsmith
• Rework -Jason Fried and David Henemeier

Next week, I will write about one more book that should come off your shelf as well as recommend a list of business books focused on sales management and business development.

I’d like to hear about what’s on your bookshelf. Please comment or drop me an email!

It’s time to grow faster~ Drew

drew@blueoctopusllc.com

blueoctopusllc.com

YOU are the Sale

In 2019, we are selling ourselves. It doesn’t matter what your position might be – frankly, it becomes more and more important the higher you are in a company. And as an entry level salesperson, you carry YOU forward – whether that’s at the same company all your life or more likely, whatever career is generated from your first few years in the workplace.

How do you sell yourself today?

1 – You have a kick-butt LinkedIn profile. Because that’s what professional people do. You also have other social media sites – at least Facebook – where you are community-facing on a regular basis. In the old days, networking happened in your neighborhood or at your place of worship or the grocery store where you knew everyone. Today, it’s on the world wide web.

2 – You operate every day with every person under the golden rule. People around you start saying (because you usually succeed at living the golden rule), “I wonder what that guy does…”. They won’t listen or remember – unless they ask with genuine curiosity. That curiosity only comes when they like you as a human being.

I grew up learning from people and many sales books that the buyer didn’t need to like you. It’s actually true – but then you can only be one thing – an expert with a perfect product or service. In case you aren’t the expert yet and/or your product service is only very good in a competitive field, genuine, trusting relationships go a long way in the ten years that I’ve been running my own business.

3 – You are authentic. Part of being likeable is being vulnerable. You have a couple warts and you talk about them openly.

For example, I don’t like golf. That makes me a bit odd in the business community, but I haven’t played a hole since my third child was born. Somehow, I’m accepted.

I’m also a spazz. My children and fiance definitely understand this. They also know they can say “shoosh you dumb bear”… and I’ll immediately realize that I might be talking an octave too high about something that probably isn’t that big of a deal.

4 – You strive to be the best in the world at something. It doesn’t have to be work-related because whatever it is, it makes you human and helps people remember you. I’m not the best in the world (yet) but my passions and talents are in writing. I’m a recruiter, consultant and salesman, so I decided to put off the fiction novel and pour my efforts into these blogs and business books until I’m 50 (then I write the novel).

If you have these four principles above well in hand, there are many directions you can go from there. It’s all about taking your passions and making you memorable – beyond the privacy of your friends and family...

You’re good at golfing… then represent your company at EVERY charity tournament this year.

You’re a juggler… then learn how to juggle EVERYTHING and tell everyone about it (think concise, short stories 🙂 ).

You love to travel… is your office covered with pictures from your vacations away? What’s the front-page screensaver on your phone? Buy a padfolio with photos on the cover. Start a blog for photos or writings.

You’re a pastry chef… then why isn’t EVERYONE at your office getting a birthday cupcake from you every year? Or maybe deliver some cakes to your clients? They will think you are nutty… but they won’t forget you.

You’ve got a heckuva story to tell… you don’t have to be a writer to be an author. What would be cooler than starting your own book? I can help you with that one if you reach out.

It’s time to grow faster~ Drew

drew@blueoctopusllc.com

8 Characteristics of Inauthentic Leadership

Authentic leaders stay true to who they are and are comfortable voicing their own truths. They aren’t pressured into decisions or judgments by outside influences. Because of this, people who are authentic succeed over their competition.

Do You Have Any of These Flaws?

1. The unauthentic don’t expose their own faults. Instead, they hide their flaws and try to make themselves look ‘perfect’ which drives people away. A few years ago, I wrote a piece about “the fat fireman”. Essentially, I told the story about a disarming neighbor that cracked jokes and always had a smile on his face. I compared him to an intelligent attorney who always wore an expensive suit and perfect bow tie … but the lawyer was plain and not interesting. People were drawn to and disarmed by the fat fireman. I’m friends with the fat fireman and all his flaws and would definitely buy from him.

2. Therefore, they don’t learn from their mistakes. Because they are always hiding their faults, the unauthentic aren’t going to learn from them. A strong leader fosters an environment where faults and mistakes are not only accepted but encouraged. Everyone in their world is required to speak the truth and give feedback even if it hurts. Great leaders and their teams will learn much more from their mistakes versus their successes.

3. They are butt-kissers and people-pleasers.  Don’t kiss butts – it doesn’t work long term. Instead, tell the truth and be direct. Help, give and make genuine relationships with the right people and stop worrying about taking care of everyone. If your organization doesn’t promote this type of culture, you are probably working for the wrong organization.

4. They make short-term decisions that benefit themselves. Hopefully the reasoning behind this is obvious but it’s amazing how commonly this occurs. Great leaders stick to their guns and often make unpopular long-term decisions for the greater good.

Corporate America fails at this over and over again. They care about the stock price today, tomorrow and at the end of the quarter. This causes them to lie, hide and often make horrible decisions for the long haul. Artificial bubbles are created by poor, short-term decisions – and I have no doubt that America is building another bubble right now.

5. They are tight-lipped. Don’t get me wrong, an authentic individual doesn’t need to be totally transparent. And a great leader usually isn’t the most talkative person in the room.

I have a deal with my three children that they can ask me anything and I’m comfortable answering 3/4’s of their questions. But there are 3 other categories: (a) I’ll tell you when you are 18 (b) I’ll tell you when you are 21 and (c) That’s dad’s business and I’m not going to share that information with you. Strong leaders need to express their thoughts, feelings and views unapologetically. In business, stay away from religion and politics… the rest should be fair game!

6. They are more concerned with impressing versus helping others. I had lunch with someone last month and I almost walked out on him after he referred to himself in the 3rd person for the 5th time (“John is really good at sailing…”). I decided instead to call John out on it. Let’s just say it was a funny moment (for me) but I don’t think we’ll be having lunch again.

Authentic leaders don’t care about their self-importance. They are much more concerned with helping those around them become successful. The authentic individual gives and shares because it’s obviously the nice thing to do – but understands that it also will benefit them. Warren Buffet isn’t significant because of his money and boasting. Buffet will be remembered for a long time to come because of his humility and value system.

7. They surround themselves with anyone and everyone. Inversely, authentic leaders carefully select their trusted inner circle (because they tend to attract so many people). They conscientiously choose others that are direct, reliable and honest. In turn, authentic people are loyal to these relationships to the end of time.

8. Their value system constantly changes. That doesn’t mean those with strong value systems don’t adjust their principles here and there. If you watch the hit NBC Show “Good Place“, it provides laugh after laugh while consistently focusing on good ethics. In today’s ever-changing-world, the show recognizes that the definition of a “good decision” changes… but the core value system does not. Authentic leaders understand that their strong value system is at the heart of all they do.

If I haven’t convinced you yet that authentic people win long term, I’ll close with the fact that unethical behavior will cost you real money in business. You won’t land certain deals and customers because of poor decisions. A recent study by Goodpurpose demonstrated that where quality and price were equal, the leading purchase driver for 53 percent of consumers was social purpose.

So be real and be you. Live without regrets and be authentic!

It’s time to grow faster~ Drew

drew@blueoctopusllc.com

blueoctopusllc.com

Building a Kick-Butt Sales Team

I’ve seen small companies build excellent sales teams from scratch, lousy teams become very good and good sales teams become great. What are the main ingredients in a great sales team?

A sales leader. This may be obvious, but it starts here. I’ve seen many organizations create sales teams without a full-time manager. If you don’t have someone to oversee, push and encourage your salespeople, it’s going to falter. The sales leader is an excellent communicator, task-master and great coach. Hire someone that has already proven that they can build a team by demonstrating their past results and successes.

A great hiring process. I’m a recruiter but I don’t think I’m biased in saying that you must have a strong hiring process. One or two interviews isn’t enough. A sales assessment and team interviewing process are key ingredients to identifying the right people for your team (when I say “right” people that means salespeople that fit your culture and can hit the ground running).

Base salaries and commission structures that can pay them more than their base. Provide them with a reasonable base salary – I’d rather have salespeople worrying about bringing more deals than worrying about their bills. Then give them a realistic shot at exceeding that in commissions (i.e. A salesperson at a $60K base can make $60K in commissions if they are reaching their annual gross margin goals).

A sales process that salespeople can follow. Do you know how to teach your next star? There should be a path to success that they can follow… and a manager that makes sure they succeed by taking the right steps in year one.

KPI’s that hold people accountable. I’d rather fret about a salesperson’s monthly activity and results than micromanage their daily schedule. The metrics should be easy to understand and basically be measured 3 ways: (1) Activities (2) Pipeline and (3) Gross Margin on closed deals. Not only do these measurements exist, but there is accountability from all to reach these goals.

An honest culture. Within the company and within the sales team, everyone is open, direct and honest. People are comfortable discussing their successes and failures. The team is constructively calling one another out on their achievements and mistakes. No one is afraid to speak the truth to one another and –most importantly- to their manager.

A company that is willing to fire people. I’ve worked inside small and mid-size companies that almost never let people go. Give new hires an opportunity but be willing to let them go at 6 months if they aren’t hitting their numbers. All of your salespeople must fit the team culture regardless of their tenure in your company. If you put up with lousy attitudes and under-performers long term, it will affect the psyche of the entire team.

Awesome training. I’ve written an entire post about this recently: Year 1 Training. Especially in year one, a new hire needs more training and assistance than most companies are giving him/her. Are successful salespeople also receiving ongoing training? Is your training better than your competition?

If you’ve implemented my 8 suggestions above, you probably didn’t need to read this article. Because you already have a kick-butt sales team!

It’s time to grow faster! Drew

drew@blueoctopusllc.com

 

 

 

 

Salespeople Can Produce 4X

I’ve seen many examples of salespeople and even teams that have achieved an ROI of 4X (gross margin / cost). In some industries, it is easier, but I’m a strong believer that most salespeople can reach that production level by year 2. I’m assuming that your B2B product(s) or service(s) cost more than $1,000 – and that your GM is more than 20%. If you fit that criteria, it’s time to focus on ROI and 4X.

Calculating Return on Investment (ROI) for Salespeople: 
Total Margin (Not Sales!) / Salary + Commission + Benefits

Example: 
Julie sells $1 Million in 2018.
Her Gross Margin is 34% = $340K

Julie’s salary is $60K and her commission is $34K.
The company’s benefits cost approximately 20%.
$94K * 1.2 = $112,800 is the expense of this employee

$340K / $112,800 = 3.01 is her ROI

When you simplify it, salespeople only do three positive and/or negative things for your company:

1. Make you money or cost you money.

1. Boost or hurt the company and team morale.

1. Externally, they positively or negatively affect your company’s reputation.

They’re Just a Number? 

I hate to turn salespeople into numbers and that isn’t where I start; especially in the interview and training process. Your sales force is much more than salesperson #12 that sits in the 34th cubicle on the 5th floor producing 3X.

If you’ve read any of my previous material in my newsletter, blogs or book, Sales Neutrinos, you realize that I put a lot of emphasis on the qualitative side of appropriately selecting, managing and motivating employees. Every salesperson is a unique human being and typically you should be helping them versus berating them over their ROI. If you hired well, assume they are another important future 4X producer on your team – and do everything in your power to get them there (or fall short at 3X).

Managing salespeople is actually a lot easier than we make it. They are working for you to help sell more goods or services. Long term, it’s about measuring their production. If they aren’t delivering a strong return, then they aren’t making a lot in commissions… and they probably aren’t happy either.

Hire, train and manage them well. In terms of numbers, first and foremost, concentrate on ROI; the rest of the metrics are secondary.

It’s time to grow faster~ 
Drew

drew@blueoctopusllc.com