Follow the Bouncing Balls!

Happy Saturday!

  

I promise to get back to inspirational Daily Sales Crumbs (Monday!), but for now, I have to stay on you about tracking and measuring results.

  

Why is this so important?

  

Simple, it provides you with deeper insight into what is working and what isn't?  Then you have two things to do:

  

1. If something is working you want to EXPAND it  - do more of it...Yes, that means more sales!
2. If it isn't working, you have to EVOLVE It - fix it or cut it loose...and put that money into things that are working!

Why don't more sales people review, track and manage their sales effectiveness?

  

Again...simple...

  

IT TAKES EFFORT TO FOLLOW THE BOUNCING BALLS!

  

Ok, I am about to take a shot at you (not a sucker punch!)...it is almost tax time...where are all your receipts, 1099's, and supporting documents for mileage?

  

Yea...go get "The Box"!

  

Why isn't it in Quicken or some other form of financial management tool?

  

Again, because it takes effort!

  

If you work for a corporation they are watching everything like a hawk...yes that includes you! 

  

They have a full marketing department that makes subtle changes to creative (advertising) to uptick the response rate from 1.15% to 1.3%.  They change demographic data to reflect a specific buyer profile.  They spend money in targeted outlets with a mix of television, direct mail and print....

  

The follow the bouncing balls!

  

Your company has a full finance department that reviews the acquisition costs.  They set the budgets based on sales projections and that cost of getting new clients.  They account for the marketing, sales and general administration costs and watch monthly, weekly and daily dashboards to see if things are on track...

  

They follow the bouncing balls!

  

Your company also has a full sales department with Sr. VP's, VP's, Directors and managers.   They monitor and manage your close rate, referral and repeat business rate.  They want to know the disposition on your last 10 sales, make you role play to get stronger with the new product.  They take all the data that the marketing and finance department give them and have only one thing to do...

  

FOLLOW YOU!

  

They make the effort because they know the "science" of selling is precise and that the only variable factor...is you!

  

Ok...what if you don't work for a large corporation? 

  

You don't have people breathing down your neck to make sure you are doing all the right things.   

  

You are free do it "Your Way"...

  

That makes you the marketing, finance and sales department...chief cook and bottle washer. 

  

What should you do with all of this power and freedom?...

  

FOLLOW THE BOUNCING BALLS! 

  

Until tomorrow, I wish you Money, Power, Success!

Closing In On The Answer!

Did you take a look at your last few direct mail or lead generation results?

  

C'mon...the truth won't hurt...I promise it will help! 

  

If you did, it is time to take a look at how you are performing.  Easy stuff first - Close rates!

  

Closing rates are like I.Q's, your age or your weight...it seems to change each time you say it. 

  

 

For example, I was on the phone with an agent just today and they told me they close 60%. 

 

"Outstanding!  What can you do to increase that batting average?" I asked.

 

"Tell me how to stop these dreaded "no shows"...they are killing me!" he responded.

  

"No shows?"

  

"Yea...you know, when you drive all the way out to the house and nobody's home!" they answered with a voice of frustration.

  

"Are you paying for those no show leads?" I inquired.

  

"Most times...yes, but I close 60% of the people I see.  That's good...right?"

  

  

Here we have a classic case of overstating results and understating the dilemma.  This agent was getting 10 leads from 1,000 mail pieces...right on average of 1%.  We can live with that.

  

But he was only getting in to see 5 people - a 50% no show rate!  We have to dig deeper into why. 

   

Is it his appointment calling approach?

  

Is he trying to sell the product over the phone rather than sell the appointment?

  

Is the free offer drawing the wrong type of prospect and skewing his results?

  

Is it something else?

  

While there are many reasons for his no-show rate to be high, the real problem is that he didn't include them in his close rates, he had no idea of the cost of each lead, or his cost to close.

  

Do you see that monitoring results can help you become more effective... productive... profitable?

  

He is right about one thing...closing 60% or 3 sales each week makes him very effective once he actually gets in front of a prospective client...

  

He just has to find a way to get in front of more opportunities based on the money is spending... yes, his money.

  

But once he starts to review the performance of direct mail, the appointment conversion rate and his selling rate he will be...

  

Closing in on the answer!!!

  

Until tomorrow, I wish you Money, Power, Success!

It's Only Money!

Do you have kids?

If not, for a few moments pretend you do!

 

They are going to Wal-Mart to buy school supplies and you give them $100 (cash) to buy a list of items you think will cost about $60.

 

They come home later, you ask for the change and they give you $6.32 back...

 

"WHAT HAPPENED!", you asked angrily.

 

"Well, a few of the items weren't available so I had to buy higher priced ones," they begin with a straight face. 

 

"Plus, I saw some adorable charms to go on my bracelet and just had to have them."

 

Fuming...you compose yourself and say ever so calmly,

 

"How Dare You Waste My Money Like That...You  Wouldn't Have Done

That If It Was Your Money!!!"

 

"Oh dad, it's only money...", kiss on cheek and with that she skips off to her room.

 

"Yes...but it is My Money!"

 

Are you watching the money you spend on your business the same way?

 

I hope so.

 

If you are one of the rare sales people that actually does direct mail or pays for any form of marketing, you should be watching your money with the same level of attention as the scenario I just gave.

 

If you use the "science" of direct mail (The Law of Large Numbers) and don't monitor the results, you could be overpaying!!!

 

For example,

 

If you drop 1,000 pieces of mail each week and pay $400 for it and only look at the sales you get each week you are only getting part of the story.

 

How is the direct mail performing?

 

 

	Scenario #1	Scenario #2	Scenario #3
# of Mail Pieces	1000	1000	1000
Cost	$400	$400	$400
Response Rate	1%	.6%	1.5%
# of Opportunities	10	6	16
Cost per qualified lead	400/10 =   $40 per lead	$400/6 =     $66.67 per lead	$400/15 =   $26.67 per lead

 

Are you tracking response rates and cost per qualified lead?

 

What would you do if you got the results from scenario #1?

 

I would say I played to the "science" of marketing odds and keep doing it!

 

What about scenario #2?

 

I would "Evolve" my marketing approach...my list, income ranges, zip codes, the piece I am using...SOMETHING!  I have to average the industry standard or I am paying too much!

 

Scenario #3?

 

Jump for joy!!!

 

How will you know what to do (managing) if you are not watching like a hawk (monitoring)?

 

Realize that while it's only money...

 

IT'S YOUR MONEY!

 

Until tomorrow, I wish you Money, Power, Success!

Give First...Get Later!

Can you tell from the last few days I am in a nostalgic mood?

I know it is from the flood of testimonies I have gotten where something I said helped someone "make it through".

That is the reason I do this!

I just spoke to someone who is brand new to sales and trying to make a go of it.

He asked, " How do you make it when there is so much on the line and the money is not guaranteed. I'm scared but don't want to give up. Have you ever felt like that?"

Have I?

I recall one of my positions selling residential alarm systems. It was commission only, we were broke and had our first child on the way (sounds like Matt from Sales Crumbs from the Master's Table, huh? Or you?)

They paid me $200 a month (you heard me!) in gas allowance and it had become "do or die". Entering the 5^th week, I had not sold one system. I was still "upbeat" but privately I cried in the car - I would have to sit for hours so not to waste gas.

I was determined to succeed and held on to honesty and integrity in my presentations - though it appeared the successful people at the company did not.

Through persistence, at the end of that 5^th week, I sold my first system! The next week, I sold 4 and the next week...8! I began earning $800-$1,000 a week.

Wow!

How?

Give first...Get later.

Give. We had weekly meetings where the sales people and telemarketers would review the week together and applaud the "winners". After one meeting, I was talking to one of the ladies who was an independent contractor setting appointments from home. She was struggling and in 45 minutes she told me "blow by blow" how bad it was.

I listened...really listened.

I emphasized...really emphasized - because I could...and I did.

In a flash of revelation, I asked her about taxes. She had not filed in 3 years and claimed "exempt" on W-9's so as not to have any money withheld - she needed every dime. I filed the three years for her and she got $6,000 in Earned Income Credit for her children.

You didn't know I was so smart...did you?

GET. She began to "preferentially" set up my appointments knowing that I would treat the clients well and close the sale. The other telemarketers began to favor me as well.

For the next 6 months, I was the top sales rep with ease!

The company eventually went out of business, but I had more confidence in my abilities and developed skills that serve me even to this day.

Most importantly, I realize that God "winks" at me through a series of random events where He is waiting on me to GIVE FIRST...

Get Later.

Until tomorrow, I wish you Money, Power, Success

How Ya Doin...Really?

How are you doing?

  

"Fine" or "ok" is the typical response.  Even from a long faced child or angry spouse!

  

If you are in sales and I ask that question, you might tell me that you got a sale yesterday from a referral from a sale last week.

  

Congratulations! Great job!

  

Ok...How ya doin...really? (best New York accent!)

  

Most sales people can't tell you how they are really doing.  What do I mean? 

  

Beyond the final tally of sales for the week can you answer the following questions?

  

How many opportunities did you have?

  

What was your closing rate?

  

If you are buying leads from a lead source what is your cost of acquisition and cost to close?

  

Is your book of business centrally located in a spreadsheet or CRM tool?

  

Have your reconciled your 2013 book of business for tax season?

  

Do you even know your book of business?

  

Ok...enough...

  

Some of you can answer ALL of these questions (great!) and some of you can't answer ANY (yikes!)!

  

That is ok...for now.

  

Truth is, it will be hard to manage what you don't monitor. 

  

I know sales people all across the world (ok, US, Canada and the Caribbean and one person in Australia/Singapore!) that are engaged in daily activity and can't tell you the effectiveness of that effort.

  

Money is being spent on leads, advertising and marketing and the results are "unknown".

  

Your hard earned money and effort should be measured so you can reap greater rewards from profitable and effective areas and shut down things that aren't working.

  

How do you get started?

  

Review your results at the end of each day and week.

  

Most sales people don't do daily/weekly planning or any real review. They simply judge their week/month by the final tally - sales.

  

You have to monitor and measure the various components of your activity, so you can begin to modify approaches as necessary.

  

The best way to increase sales is to "Evolve" that which challenges (isn't working well), and "Expand" that which works....do more of it.

  

You won't know which areas arent working or what is working if you don't "Inspect what you Expect" (you had to know that cliché was coming!).

 

It doesn't have to be sophisticated to start with...tic marks and tally's are ok...for now!

 

One last time...

How ya doin?

Until tomorrow, I wish you Money, Power, Success!

I Remember My First Time...Do You?

No...not that first time! (This is a family blog!)

Can you remember your first sale?

Maybe you are still waiting for it!

It is an exciting event and most professionals can recall with great fondness how they "broke the seal" on their sales career.

If you are still in hot pursuit or you are a seasoned veteran, I want to take a few minutes to guide/remind you of what it takes to be a professional.

Take great care when preparing and presenting your solutions, products and services. Think of how much energy and resource has gone into getting you to this "moment of truth" - you want to make the most compelling case possible.

Until you are consciously competent, have someone review your proposal or presentation before you present to a client. Remember yesterday's reminder to seek coaching or mentoring?

When you are presenting your solution, engage the client's voice in the proceedings. If they have acquired knowledge about your product that they want to express or even concerns...let them.

You shouldn't lose control; you are simply "sharing the stage". The most experienced sales professionals understand that many clients will "sell themselves the product" through inclusion into the sales presentation!

Do a thorough job of explaining the product. The key benefits uncovered during the Relating process that will be the focus since they address the core needs.

That is the steak.

Revealing the additional features that might not have been vital can be the "sizzle".

No one wants to have a prospectus or manual read to them, verbatim, but in explaining more than is required you insure that the product you sell is the product they expect and the product they get.

For the seasoned professional, it is important to stay rooted in how you became successful through the struggle to your current success..

The best way to stay humble?

Always remember your first time...and

Be willing to share with it the "newbie" who is anxiously awaiting their turn...their first time!

Do you remember your first time?  I do!

Until tomorrow, I wish you Money, Power, Success!