Btb Guest Author

Dave Brock

Dave will be speaking our next Sales Leadership Ireland meet up “From the Buyers Perspective” on the 28th of Sept.

The other day, I was speaking with my friend, Niall Devitt.  He had invited me to speak at a conference focused on the issue:  It All Starts With The Customer.  It seems so simple and obvious, but too many companies have an inside-out approach to working with customers.

We tend to focus on our organizations, our products, our processes, our needs, and our policies.  Our efforts are focus on how we attract and motivate customers to buy our products and services.  Our strategies are generally driven by this inside out approach.  We launch products based on an inside out approach—and we fail to meet our launch objectives.  We build our channels and routes to market based on an inside out approach, then find that we aren’t reaching the market or touching the customers the way we should.  We focus on our marketing and our selling processes, rather than focusing on the customer’s buying process.

Wouldn’t things be simpler and produce better results if everything we did started with a customer?

What if we went to our key accounts and asked them, “How would you like us to be selling to you?”  We did this with a client many years ago—based on customer input, with our client, we redesigned the approach to covering key accounts, reduced the headcount covering those accounts by 60%, improved sales, improved customer satisfaction, and developed profoundly deeper relationships with these key accounts.

What if we look at our key customer segments, asking them, “How do you buy these types of products and services?  Who do you buy them from?”  Based on the input, build your channels so that you are aligned with how these customers buy.   We not only have the partners they want to buy from, but we have the programs and processes that are most attractive to them.  Instead, we build the channel from the inside out, hopefully built on some sort of targeting, but somehow driven by internal priorities and not by customer priorities.

What if we started designing our selling processes by thinking like buyers?  We might then design our process around supporting and facilitating their buying processes?  With a large office products manufacturer, we went to their customers and started looking at how they bought copiers and faxes.  We learned about how they identified their requirements, how they researched and got information, how they started selecting vendors to consider, and so forth.  We focused the client’s selling process to align with the key activities their customers went through in buying these products — both improving the efficiency of the sales teams, and aligning them more effectively with the customer—they were doing the right things, at the right time, with the right people.

What if we started focusing developing our sales strategies around what biggest problems problems we can help customers solve or how we help them improve our business, rather than focusing on pitching the features, functions, feeds and speeds of our great products?  A large software client went to their customers to understand how they designed airplanes.  They focused on the two biggest problems these customers faced then started talking to those customers about how they could solve those problems.  they focused their sales efforts only on customers with those problems—because they had done their homework, it happened to be most of the industry.  Their competition continued to sell features and functions, letting the customer figure out how those features solved their problems.  Within three years, this client had share leadership in that market.

What if we started designing our products and solutions, by collaborating with our customers—from the very inception of the product idea?  What if we put customers on our design review teams?  Would we have better success with our product launches, would we have fewer misfires?  With a large software supplier of data analysis solutions, we engaged a few key financial services customers in defining a new relationship management solution.  They were involved in the definition, at major milestones, and in all the testing.  The resultant product became indispensible to these customers.  Time to revenue at launch was reduced by 30%–because of the customer driven innovation.

What if we change the way we talk about customers?  Too often, I’m involved in discussions, where we talk about the customer in the abstract.  There seems to be a great distance between the “real customer,” the people who buy, and the way we talk within our organizations.  We tend to talk about issues, strategies, problems and solutions with customers being spoken of in the abstract.  We lose sight of specific companies and people.  Too often, this gives way to an attitude, “everything would be great if it wasn’t for those damn customers!”  We complain about them complaining rather than reveling in it because it shows they care.  We become unresponsive and indifferent.  We find ourselves having to invest more resources and more money in getting customers to listen to us.

I’m not naive, these issues are all part of what organizations do everyday.  Everyone knows about customer segmentation and developing programs targeting these segments.  Everyone knows about customer input as part of the product design and development process.  As sales professionals are trained in consultative selling.  But some how the context and prioritization doesn’t seem the same.  Too often and perhaps unconsciously, the customer moves out of the forefront of our minds, and we begin to focus on our internal goals, deadlines, processes.  We do things the way we have always done them?  The inertia of the past inward-out focus overcomes the focus on the customer — then we kind of forget about them.

I’m also not an idealist, believing the customer is always right or that we need to support every customer and every need.  We need to run our businesses to be profitable and achieve our goals.  However, we need to root our decisions in the customer and how we most effectively and efficiently reach and support our customer, and this process starts with them.

To help accelerate this change, let’s surround ourselves with customers.  Imagine what might happen if every conversation started with “I was talking to Jill at XYZ Company and she ….”  or “We met with these customers at the conference and they are talking about this….” or “I was watching how the people at ABC are using are products and they suggested….”  Imagine how our decisions might change if we actually had pictures of our customers—not just their logo’s, but pictures of people scattered around our facilities–simple reminders to everyone about who pays the bills.

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Dave Brock works with organizations to help them achieve the highest levels of performance excellence. He helps them identify and execute new business, sales, marketing and customer service strategies. His goal is to have a profound difference on the lives and results produced by his clients. Dave is the founder and CEO of Partners in EXCELLENCE, a leading business consulting company. He has held executive roles in IBM, Tektronix, and other large technology companies. He is an investor, advisor, and director of several high technology start-up companies.

In case you haven’t been tuning in recently, the whole question of sales ineffectiveness was brilliantly raised by Dave Stein. It’s not just a great question for sales professionals; it’s frankly the ONLY question.

Dave rightly asks “The root causes of sales ineffectiveness are clear. There is plenty of sound advice about how to fix the problem. There is a proven path.  The answers are there for everyone to see. There are companies you can read about and observe that have achieved sales excellence.

So, recession aside, why is sales as a profession and function, losing ground?”

In three follow up posts, Sales Force Ineffectiveness, Conjecture of the Future of the Profession, parts one, two and three; Dave Brock does an excellent job in teasing out the issues.

In Part One, he talks about why “for too long, we have treated sales as a “black art”, that now “Customers can be more informed and less knowledgeable” and how “Consultative selling is difficult—it is disciplined, process based, and requires commitment and follow through on a sustained basis”.

In two, he observes that this is not just a sales problem” “Some of it is “business culture”—in general, some of it is “regional culture”—that is North American, European, Asian, and so forth. Some of it is “industry culture.”

Finally in part three, He resolves that these same difficulties also provide for “people who are or who are committed to becoming the highest levels of performance” - “opportunity for real progress and growth for sales professionals”.

He asks “how can we improve” “what can we do”. Dave believes that “each of us can take ownership in driving change”

“Whether you are a leader or individual contributor, becoming disciplined and process focused, committing to follow through on these, exploiting the tools produce results. Leverage these processes and tools, not because your management tells you to, but because they help you become more effective”

Collectively, these four posts are a MUST read, if you don’t have the time, MAKE the time – the reasons WHY are in the TEXT.

Now it’s not often, I take anything remotely resembled an issue with what Dave Brock says.

“To be honest—at least from an organizational point of view, I am tempted to point the finger at management—not just sales management, but corporate management”

Perhaps, it’s inexperience, or my youthful exuberance, but I am inclined to not just point my finger at senior management, but my entire hand, in fact right down to the tips of my toes. My entire being points in that general vicinity. Here why:

For too long, salespeople have been getting in the neck from management.

Yes, we may have a bad reputation and yes some of it may be deserved, buy ultimately the system is set up so that we always end up taking the heat. If the results don’t happen, who invariably gets the blame?

For years and years, salespeople get cast aside, replaced and cast aside again by companies. Rarely if ever, is it asked did this person get the right training? Did this person get the right support? And why did we hire this person again? Oh and by the way “who hired this person?

Dave says “I don’t believe change only comes from the top. I believe change comes from committed, passionate people at all levels of the organization” If a collective ownership of the result existed within organisations, I think Dave would be very right.

If some of the people entrusted with the sales leadership function in many organisations didn’t do their best to dodge and pass the buck, I think he would be right.

If salespeople weren’t forced to knock out huge numbers of calls and put in vast amounts of meaningless activities by ill-advised and badly trained sales mangers, I think he would be right.

If the wider business community and business leaders respected sales and salespeople, I think he would be right.

The point is this; the problem is in the way that the system is set up particularly with regards to responsibility. It makes it extremely difficult for salespeople to change the “science of selling” from within.

In my opinion, the buck stops and it STOPS squarely at the feet of some of our so called sales leaders.

In case, you missed my point - take a little inspiration from this recent article about HP

Btb Guest Author

Maureen Blandford

Perhaps you’ve heard about Merrill Lynch’s John Thain’s $1.22M office renovation, including $87K for an area rug? Preceded, of course, by AIG’s spending part of their bailout on spa treatments for execs. Nice. And then there was the Big Three auto execs flying corporate jets to Washington to plead for their share of the bailout. Next up: Citigroup. Led by an exec team that the NY Post calls “Citiboobs.”

In this Wednesday’s New York Times, Maureen Dowd asks:

“How could Citigroup be so dumb as to go ahead with plans to get a new $50 million corporate jet, the exclusive Dassault Falcon 7X seating 12, after losing $28.5 billion in the past 15 months and receiving $345 billion in government investments and guarantees?”

“Citiboobs,” indeed.

While I am appalled by story after story detailing greed, stupidity, and obtuseness in corporate leadership, and applaud the world’s righteous indignation over the executive termites who have caused irreparable damage to our many fine organizations, there’s a part of my business psyche that is pleased such horrid behavior is seeing the light of day.

For years (actually two decades), I have often felt horror at how the B2B version of Fat Cats (Marketers and the executives who support them) burn through $s on truly ridiculous marketing tactics, while the Working Poor (Sales orgs) struggle to do more with less.

An $8K shower curtain or an $87K area rug look like wise investments next to spending in Marketing I’ve witnessed over the years. At the same time that sales organizations have seen their training & coaching budgets shrink to next to nothing, marketers think nothing of dropping $100K on new logo development or color consultation. They produce brochures that are rarely read by target audiences. A few years ago, I witnessed a tech client approve a $200K photo shoot (in NYC, of course) for photos that easily could’ve been obtained for a fraction of the cost from one of many fine stock photo agencies.

Why are our field sales folks so often building their own sales tools (wasting valuable sales time), when their corp HQ folks are spending millions on marketing materials? Because much of the corp-produced stuff doesn’t meet real selling needs. Have you ever seen the garage of a pharmaceutical rep? Packed with marketing materials they don’t use.

Very briefly, corporate marketers have been trained solely in consumer marketing, not B2B. They’ve rarely actually carried a bag and consequently don’t understand that today’s great sellers are more about asking great questions rather than selling stuff.  Our marketing materials, if you’ve noticed, are packed with selling stuff. That’s not the kind of sales support we need today.

The dark side to this story is that many B2B Marketers have much in common with our ego-centric execs. They love to be wined and dined by Madison Avenue types and spend hours talking about things like shades of color and the emotions one shade or another evokes. And, this drives me crazy, marketers disdain sellers and sales organizations. Consequently, when a sales org tries to help a marketing org better meet their needs…well, they might as be talking to the hand.

Now, more than ever, responsible leadership will be open to a little righteous indignation over the imbalance in marketing and true sales support spend. If Starbucks is halting decaf brewing after noon in the hopes of saving $400M by the end of the year, I’m thinking leadership will be open to considering many cost-saving options.

Sellers and Sales Leadership: if you happen to have an internal marketing organization who supports your needs – Bravo! You can count yourselves lucky.

If, however, you’re not getting the support you need from your marketing organization, speak up. Consultative/Relationship/Collaborative selling is precisely what we need our sales orgs to be executing. But, it’s not easy. Features/Functions/Benefits selling is part of our DNA, having evolved over thousands of years.

To be effective in transitioning our sales folks over to great selling and ridding ourselves of bad habits takes time.  A sustainable sales support plan must include on-going mentoring, coaching, & training. For both sellers and sales leadership.

The good news here is that the investment needed for GREAT, sustainable sales support is a fraction of the budget that’s being wasted in B2B marketing today. For instance, marketing organizations executing a marketing plan that truly supports B2B selling could do a great job with about 60% of their current budget. I’d recommend redirecting some of the remaining 40% to on-going sales training needs (yippee!). And either saving the rest, or redirecting to HR efforts to hire and retain great sales people.

I’m giddy thinking about this: Sales folks supported by great training and marketing materials that help them move the ball down the field. Now – isn’t that worth some righteous indignation?

Maureen Blandford is CEO of the MindTime Group. Maureen helps her clients break through ineffective marketing strategies to develop tactics that work. Blandford combines her 20 years of practical expertise with her ground breaking theories to alert B2B decision makers to reallocate marketing dollars to a consultative selling motion. AT&T, NCR, The Iams Company, McAfee, Health Plus Technologies, PSC, are just a few of the many clients she’s worked with. Regarding her first book, Branding Doesn’t Work in B2B, Blandford says, “I’m doggedly determined to help B2Bs with a direct sales force understand that in B2B it’s people, and how they perform in the sales and delivery processes that have the greatest impact on current and future customers. Not Branding.

In the News

Paul McCord reviews (or should that be rightly pans a new book)

“The “what would Jesus do” close.  You use this close when your customer “is a Sunday go to meeting” type (throughout the book this level of respect for customers is demonstrated).  You acknowledge that you know he is a fine Christian and state that you understand that he wants to be like Jesus, just as every good Christian does.  You then tell the customer that you’ll give him your product or service free if he can show you anywhere in the Bible where Jesus said, “let me first ask my friend,” or “let me first ask my accountant,” or “I have to think about it.”  You point out that Jesus never had to hesitate to make a decision on his own.  According to the authors, after delivering this close, “The customer is stunned.  The master closer has made such a strong and truthful point, the customer doesn’t know what to say.”

HILARIOUS!!…….Can you believe this sales advice, this is not a joke - read Paul’s review here

Btb Guest Author

Christian Maurer

Yes, but not in the form we know and practice selling today. This is one of my takeaways from the round table discussion between Nigel Edelshain, Jonathan Farrington, Jill Konrath, Linda Richardson and Dave Stein over at the Top Sales Experts. Especially “order takers” and ‘glib talkers” will have a bleak future according to Jonathan Farrington. Intelligent strategic orchestrators and business advisors looking to develop long term allies however will have a bright future according to him. Jill Konrath seconded that she hopes that sales is really changing that much.

So we should expect a lot of organizational transformation within sales forces. However, and this is my second take away, the salespeople are not the primary target for this transformation. The sales profession -if we want to use this term despite the fact that from a scientific standpoint ’sales’ is not yet a profession- faces not only a leadership crisis but a disaster as Dave Stein put it.

The transformation has to start at the very top with company leaders. They should get rid of the myths that super salespersons make good sales managers and that the necessary competences come with the title. Sales Management is an occupation in itself requiring different specific skills than those of a sales superstar.

Relying just on tribal wisdom, where newly appointed sales managers draw on what they have observed their own managers doing, will not bring the desired result as it is very likely that these managers were not properly prepared for the job either. In addition their understanding of selling and of their job role might be outdated and not fit in today’s unforgiving economic context.

In my own opinion there will be no room left for purely action and result oriented managers trying to manage outcomes. It makes little difference if they rely on data from their own home grown spreadsheets or on sophisticated analytical CRM tools in their attempt to manage these outcomes. Outcomes are lagging indicators even if they come in the disguised form of forecasts. Management actions based on these metrics will always be too little too late. The future belongs to sales managers being able to interpret leading indicators helping them to derive coaching needs of their sales people.

The panelist were all in agreement that being able to coach people is a very essential skill for successful sales managers going forward.. There is however a huge skill gap with current sales managers. Linda Richardson’s re-edited book on this subject will help fill this gap. As a questions from a listener indicated, a significant number of sales managers has though not only a skill gap but an outright attitude problem towards coaching. Let’s hope for them that they can be convinced by appropriate business cases to avoid being phased out.

The dilemma for preparing sales managers for their job is though deeper. While a lot has been written with the salesperson in mind, there is a lack of a body of knowledge from which sale managers can be taught how to do their job. This is the reason why already three years ago, I started my blog with the sales executives and managers in mind.

Christian Maurer, The Sales Executive Resource, is an independent sales effectiveness consultant, trainer and coach. He has a proven track record of helping to increase the productivity of large, global B2B sales organizations. For the last ten years Christian has consulted and coached hundreds of sales executives and managers on how to plan and execute their sales strategies by focusing on process management rather than trying to manage results. Visit Christian ’s website: http://ultimatesalesexecresource

In the news

Dave Stein asks “How Do You Fix Sales Ineffectiveness?” This is a BIG BIG question and has already resulting in much debate. As Dave points out “There is a proven path.  The answers are there for everyone to see.  There are companies you can read about and observe that have achieved sales excellence. So, recession aside, why is sales as a profession and function, losing ground?” - I strongly suggest you check it out.

Clayton Shold is in conversation with fellow Top Sales Expert, Jonathan London over at Salesopedia, about the “Upside To Recession Selling”

Top 10 Sales Articles has just announced the “Top Sales Article Of The Month” for April. This a truly great sales resource with articles on every conceivable sales topic.

Over at TSE

The new Top Sales Experts (Public Group) over at LinkedIn is developing into a very lively community, with lots of really interesting discussions - to join us, simply click below.