Friday, April 1, 2011

9 Reasons Salespeople Fail

By: Andrea Schuch
We see several emails come into our office regarding sales, sales training, computer classes, etc. This article caught our eye from Colleen Stanley at SalesLeadership. First of all, I love her company name - Sales Leadership. I took a Leadership class in college and loved it, learned that there are many different kinds of leaders but I never thought of a sales leader. To me, that doesn't just mean being the highest in sales, but really inspiring others around you to sell and inspiring your clients to BUY! Showing the people around you that you are on top of your game can let them trust you and learn from you, making you a GREAT leader. Here, Colleen talks to us about nine reasons salespeople fail, a few of them surprised me (check out #4) but after hearing her points, I was completely on board. Read on for Colleen's thoughts as well as the thoughts of our staff as we share our experiences and knowledge for you to use and abuse.

Sales Success Principles:

1. Ask for Help
Average producers are not good at asking for help. This may stem from lack of confidence in not wanting to be transparent about a weakness in their selling process. Lack of asking for help may also come from not being committed to doing what it takes to succeed. If you ask for advice, people expect you to execute on the advice. Top producers, on the other hand, are confident and have no problem admitting they are not perfect. They are also committed to do what it takes to become excellent in their profession. Top producers seek out advisors and mentors. I have also noticed they are the best students during a sales training course. They bring case studies for review or call for extra coaching. Top producers understand that no one gets great by themselves.

Stephanie, in the Memo Room, says: We, as designers, need clients to ask us for help for us to have work. In return we need to ask our clients and our team of specialized professionals for help. No one can be an expert in everything, so we can utilize our team and ask them for help during a project. Our team can include: workrooms, showrooms, plumbers, electricians, etc. We can ask those specified professionals questions and for help as that is what they are there for and together as a team we can create wonderful spaces and homes for our clients the first time!
Here at CDT, we have many interns throughout the quarters and we help mentor them into designers. The interns on a daily basis will ask us questions, and that is what we are here for. We will discuss our showroom - how it works and teach them the ‘behind the scenes’ to our industry. In return the interns can teach us a few new things from their current classes. We can always learn from each other and, here at CDT, are always ready to help interns as well as designers, so never be afraid to ask for help.

2. Sales Activity
When I first entered the sales training profession, I had a sales coach. The first question asked during our weekly coaching sessions was, “Tell me about your sales activity plan.” At first, I found this question puzzling. I was in the sale guru business. Wasn’t he supposed to ask me about my ability to find “pain” on a call or uncover corporate decision making process? This wise coach understood that the sales training business is no different than any other business. If my sales activity plan didn’t lead me to prospects, it didn’t matter how good my selling or training skills were….no one would ever know! Top revenue producers understand that a consistent sales activity plan is the key to finding new clients and driving revenue.

Vicki, one of our fearless leaders, says: While I am not a “sales training guru”, I know for sure that without a plan, you have very little chance of consistent success. There are some designers who just get lucky, but if you want to have a consistent income over the long haul, you need a plan. First, you need to know how much money you need to make. Hopefully this will grow into the money you WANT to make. Then you need to know two important things:
-How many appointments do you close on? (This is known as your closing ratio)
-What is you dollar amount per sale, and at what profit margin?
You must know these numbers in order to track your progress. There are only 3 ways to increase your sales:
1. Schedule more appointments and see more QUALIFIED clients.
2. Close more appointments, or get the check in fewer appointments
3. Increase the number or price point of the products you sell.
You cannot achieve an increase of any sort unless you know what your starting point is, so you must figure out your closing ratio and profit margin. Once you have established this baseline, you can then identify which area is your weakness—lack of appointments, weak closing skills, (including taking too many appointments to close the sale,) or selling too much product with a low profit margin.
Very often, simply identifying a weakness results in big improvement. Awareness is powerful. Make a list of measurable goals, and break that down into small steps that will get you there. Develop a system for tracking your results. I promise that you will see changes, and that those changes will motivate you to even greater achievements.
So, plan your work, and work your plan!

3. Eliminate Excuses
Poor producers spend most of their time discussing excuses that prevent them from making their sales goal; i.e. increased competition, problems with operations issues at the company, or the current market. Top producers invest most of their time discussing how to achieve results, how to beat increased competition, ways to improve/work around operations issues, and how to sell regardless of economic issues. Top producers live by the mantra, “We are judged only by results, not by excuses.”

Jody, in the office, says: Is there really any good excuse in the interior design business? Death may be the most acceptable or perhaps a serious health issue. The bottom line is…no client cares why you didn’t do what you said you would. They only want to hear what you did or are doing for them. Being proactive can certainly save a lot of time and aggravation. A designer has to educate the client on the nature of this business, unfortunately that includes backorders and ship date changes. Never put off telling a client bad news. If you stay in touch and update them on a regular basis on any ship dates, backorders or the like, you will alleviate any major problems down the road because you will appear to be doing your job and giving good customer service. Starting today, no more excuses should be your new business model. You’ll start to notice a lot more satisfied customers.

4. Lose Your Mediocre Friends
Remember your mom saying, “Tell me who your friends are and I will tell you what you are like.” (Okay, so maybe it was just my mother.) This quote is absolutely true in sales. Tell me who you “hang” with and I will tell you what you are like. Mediocre performers like to “hang” with other mediocre performers. The bar for success is low and membership criteria is easy….expect and accept less. The weekly agenda for meetings is always predictable and preset: Bring one new excuse for discussion.

Adriana, at the front desk, says: I worked for a call center at a large travel agency. Due to a strict schedule, about 7 coworkers and I had to take lunch at the same time every day. There were two of them that would always complain about the rules, our supervisors, the clients, and the work in general. After a while most of us noticed that we would returned  to work with a pessimistic feeling about our jobs and felt helpless and stuck since we all needed our jobs. We decided to let the two coworkers know that from then on we were not going to talk about any work related subject during break, and if they wanted to do so they should sit elsewhere. 

5. Get Rid of Arrogance
A top producer that has achieved the “top of the hill” status can quickly move to the bottom of the hill because of arrogance. Arrogant individuals stop learning because, after all, they are the best in the business. What can they possibly learn after 20 years in the profession? The real issue is that young, hungry, competitors haven’t caught the disease of arrogance. The competition continues to learn, change and grow. The result is a new king or queen of the hill looking down at a stunned, retired past king or queen.

Lee, in the memo room, says: The world of design is constantly evolving, from trends and styles to new techniques and materials.  A designer who continues to push only ruffled swags and jabots or declines investigating and learning about the new green technology or neglects having a strong presence on the internet will realize fewer and fewer sales as time goes by.  There is no substitute for the value of years of experience, but one must be aware of the habits of younger generations.  A designer must stay on top of all of the changes in the design world in order to entice the buying power of the upcoming consumers.

6. Get Focused
A poor producer can work very hard. Lack of sales isn’t from lack of effort; it’s that the effort is focused on the wrong prospect, activity and partnerships. Top producers have clearly identified their ideal client and have built a strategy around meeting, influencing, and creating value for that specific client. They are very clear on who they will sell and what they will sell. Top producers walk away from prospects that don’t fit their ideal profile; leaving them more time to walk towards best fit clients. They leave the price shopping prospects to their competitors who get to invest all their time in writing proposals that go nowhere.

Sharon, on the sales floor, says: Too many choices are not a good thing. I have found that really narrowing down the choices that I show my clients makes the job a whole lot more productive. The more choices you give, the more confused most people get because they are not as educated towards design. They are paying you to tell them what’s right, what’s wrong and what goes. When I was new in the business, I wasn’t really charging an hourly fee and I made myself miserable bringing all sorts of things for people to look at and did nothing but waste my time! It’s really up to us to make the good choices for our clients, present them and move on. Now when I go out initially, I actually have my clients do homework for me to give me a starting point of what they want so I am not looking at everything. I will even drop off magazines if they do not have any for them to look at so they can have a direction to start in. I also make them focus into one area or room instead of allowing them to ask about the whole house in one appointment.

7. Manage Your Time
Top producers are good at calendaring. They set aside very specific times each week for business development (prospecting calls, client retention calls, calls updating referral partners, etc.). Top producers have discipline and don’t allow outside distractions to deter them from their most important appointment – the appointment with themselves and working their plan.
Camille, the other half of our dynamic leaders, says: A monthly calendar is extremely important to developing a consistent flow of revenue in an interior design business. The first thing that is necessary is to identify the type of appointment you are scheduling so that you can plan the apropriate amount of time.
Client Appointments
-1st Appointment - Preview or information gathering appointment/setting the groundrules of how we will work together
-2nd Appointment - Presentation of fabrics/floorplans/window treatment sketches, etc.
This can be a closing appointment if it is a small job such as occasional furniture/hardline window product, etc.
-3rd Appointment - Closing appointment
I feel it is important to have a mix of all of the above each week and to try to have at least one closing appointmet per week - this will ensure that you will have a steady flow of income.
Booking time to actually put together what you will need to present to the client also needs to be addressed. There is definitely a good amount of time spent on the "legwork" it takes to put together a great plan for the client.
Don't forget to book the time to make the phone calls to schedule the appointments.
Marketing Appointments
-Calls to previous clients to advise them of sale periods or special promotions.
-Calls to set up appointments with people that can lead you to potential clients such as builders/realtors/program chairman for clubs/organizations.
Planning time for phone calls and actual "face to face" appointments is very important.
Looking at the month ahead and slotting your time, based upon your knowledge of how long it takes to accomplish a specific task, will help fill the calendar with all you need to develop a successful business.

8. Invest in Yourself
Top producers don’t wait for someone else to make them good (I.e. I will only attend a sales training course if the company is picking up the tab). I am reminded of a client, “Jill,” who came to me seven years ago. She was an administrative assistant desiring to enter the sales profession. Her current employer would not offer her a sales position because they just didn’t think an administrative assistant could sell. Jill believed she had the ability to be very good in sales and invested her own time and money in sales training. She eventually applied for a sales position at another firm and became the number one salesperson at the new firm. (By the way, Jill also practiced all of the success principles listed above.) Jill did not wait to get good based on someone else’s beliefs or dollars.

Faith, our disontinuing memo room goddess, found a blog post that she thinks sums it up perfectly by Rosetta Thurman: I've been learning that my reputation is more important than my resume since I launched my blog a year ago. It really helps to have people know who you are as soon as they see the name on the resume. I thought everyone was exaggerating when they said that getting the job you want is all about who you know. Now I think it's all about who knows you. And not even who knows you, but just that they've heard of you is enough. I've worked hard to shape my colleagues' perception of my expertise and experience using the web and it's gotten me much further than any resume could have. I also wonder as more folks start having online portfolios, the ones who don't will be pressured to prove their credibility in other ways. How else do you know if someone's REALLY got the goods they brag about on their resume?

9. Get Going
Are you getting ready to get ready? Listen up: Perfection is highly overrated. While you are waiting to get all the research done on a prospect, perfecting your technique, or redoing your PowerPoint one last time, the salesperson that is showing up is getting the deal. Strive for perfection, but don’t wait on perfection.

Andrea, in the office and on all your social media says: This blog is a perfect example of #9. Sometimes, I have written, rewritten and then trashed only to write again certain blog posts. If I didn't have a deadline every week, you would never read this because all my posts would be in "edit" mode. Sometimes, I just have to hit "Publish!" I often think of when I went wedding dress shopping and I was down to two dresses. They were totally different styles, one very clean lined, simple and classic - the other lacy, unique and quirky. I just could not decide! The sales lady finally told me - no one else is going to know what the other one looks like, they will just think the one you're in is amazing. Finally, I played eenie meenie miny moe and pointed (I ended up with the lacy, quirky one). So, often when writing blog posts, I say to myself, "noone else knows what it is missing or what so-and-so said in the showroom today that just HAS to go in, just finish it so people can start reading it!" So as I end here - get off the computer and start selling, your competition is!

“Colleen Stanley is president of SalesLeadership Inc., a business development consulting firm specializing in sales and sales management training.  The company provides programs in prospecting, referral strategies, consultative sales training, sales management training, and hiring/selection.  She is also the author of “Growing Great Sales Teams: Lessons from the Cornfield.”   Reach Colleen at 303.708.1128 or visit www.salesleadershipdevelopment.com.”

3 comments:

wrensnest said...

This is a really great article, Andrea. You are giving us many angles to promote our businesses with lots of knowledgeable advice!

Deborah Flate said...

OK, Andrea..this is such a great post! The first post I wrote almost 2-1/2 years ago on my blog was titled "The Dirty "S" Word" talking about designers honing their selling skills and needing to have them for their business to be successful.

This gives me the inspiration to talk about it even more because of how important I think it is!

Another feather in the already stuffed hat for Andrea and the Chicago Design Team! You guys rock!

Ana Santos said...

Great article Andrea, thank you for right on advice!