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By Justin Wearne, Principal Consultant, JWPM Consulting

Introducing Oscar - the inside cat

 

We have a middle aged cat named Oscar.  Oscar is an inside cat.

It wasn’t always so, when Oscar was young and hungry he was the terror of the neighborhood.

Great bird catcher; so we put a bell around his neck.

Did that stop Oscar?

Not a chance. We caught Oscar stalking a bird one day with one paw on the bell sneaking up on three legs; true story.

You see Oscar was a hunter and he was hungry.

But, for Oscar, as for many cats; life got good.

After a few years he had sussed all the comfortable sleeping spots in the house. And his food bowl was filled every day, twice a day.

Cats are pragmatic creatures. They don’t expend unnecessary energy.  Eventually he gave up on the outside world in favour of the comfort of soft furnishings, warmth, food, and enough inside entertainment to keep him amused.

His daily routine was simplicity in motion; a bit of a sleep, a lazy look out the window at the birds, give the dog a bit of stick, another sleep and when feeling a bit hungry – check the food bowl.

He became an inside cat; fat and complacent.

Industrial B2B organisations across the globe are home to many Oscars.

They live in the sales department.

Curled-up and comfortable in big office chairs that swivel and roll around on carpet. Coffee machines are not far away, lunch wagons arrive a couple of times daily. They wear full cut business shirts stuffed into business slacks over muffin tops. They attend drinks on Friday night. They drive a nice car. Life is beautiful.

 

But, things have changed. We now have a global economic crisis; the phone has stopped ringing and suddenly life is a little scary.

But, like Oscar looking at the empty food bowl, the world is full of sales reps attending to silent telephones waiting for them to ring.

It’s time for them to become outside cats.

And that’s the really good thing about economic downturns.  It’s an opportunity to strip out the deadwood and get back to basics. Like how to get out there and amongst the customers.

So here are Justin Wearne’s top 12 tips for getting the sales force out chasing business again (or how to turn inside cats into outside cats)…

 

TIP 1

Sales force inertia

 

Have you seen that expression on a cat’s face when you open the door to the outside world and suggest that it is time to go out? You’ll get the same reaction from your sales team.

And you will get excuses, great excuses.

Plausible, well argued, even forcefully argued reasons why the idea that by simply getting out and seeing customers we are going to win some sales…

“Ha hah hah, hello, haven’t you heard? We are in the middle of the worst economic downturn in 1,000 years” they’ll chide.

And here is your answer “When the titanic sank not everyone drowned.”

You have to say to your cynical sales team…

“One thing we know, the way we are doing it currently isn’t working. So, for sure we won’t be doing it like this going forward. There will be change.”

A sales representative at rest tends to stay at rest unless acted upon by an outside force.

 

TIP 2

What is a sales rep?

 

Different organisations have different ideas about what a sales rep is and what role they play. Organisations that get this wrong end up with sales people that aren’t good at selling.

Selling is a process with a number of distinct steps, strategies, components and contributing factors.

A typical industrial organisation that has been successful for some time is usually riding on the back of a hey-day somewhere in the past where the founding entrepreneur got the sales rolling.

He’s now gone or is sitting in his mansion in semi retirement checking the bank account every couple of days. What’s left is a residual sales organisation inhabited by Oscars.

Downturns are when these types of residual sales organisations falter. That’s when a long hard look at the sales team results in the observation that “those guys look more like clerical staff than sales people.”

The idea they need to get out and sell, results in questions like “who is going to write-up the sales orders?”, “who will do the estimating and quoting?”, and “who should be responsible for researching the market for new opportunities?”

These are examples of fundamental questions which are part of the bigger question “what is our sales model?” a subset of “what is our business model?”

But, I digress. Let me answer the first question…

A sales rep is someone employed by your competitor who charms your best customer and steals them from you.

 

TIP 3

Build and maintain relationships

 

Industrial selling is about building relationships.

What we need more than anything is to sit opposite people who buy and find out what they want.

When the first rule of selling is “sell yourself first, sell your company second, and sell your product last” – it follows the best way to do that is face-to-face.

Keep your best customers close and your competitor’s best customers closer.

 

TIP 4

Take away excuses for being inside

 

Lots of things keep reps inside apart from warmth.

Sales meetings, production meetings, budget planning meetings, report writing, head office visits, updating the website, supplier visits, product training, OH&S training, unpacking and setting-up the new PC, IT training, stock takes, CRM training, training on how to correctly fill in form B16, “please explain” requests – where does it end?

Sure, if that’s what you want them to do be doing – but let them get out there and they might actually bump into a new customer.

Many sales people have become used to being inside and have built a lifestyle around the expectation they will remain inside.

Sales trips are difficult…

“I can’t on Thursdays; I pick up the baby from child care.”

“My wife doesn’t like me doing country trips.”

And “I coach the under 12’s soccer team and we are coming up to the grand final.”

Meanwhile sales are in decline and factory people are being laid off.

You’ve got to be kidding! We’ve become soft.

The only selling time that counts is face-to-face selling time.

The rest of a reps work is either arranging face-to-face selling time or taking action on what they found out while being face-to-face.

Face-to-face wins the race.

 

TIP 5

You can’t be in two places at the same time

 

Schrödinger had a cat that could be in two states at the same time. But, that’s a different story.

A common mistake in industrial organisations is having sales people involved in the delivery of the products or services that they sell.

I am not just talking about literally delivering (i.e. driving the van) I am talking about arranging the manufacture, project management, construction, or installation of the product or service.

There are two things wrong with this.

Delivery gets in the way of selling. Really good sales people rarely make good technical people. Yes, there are exceptions. But even if you don’t accept this, the real issue is that delivery gets in the way of selling.

Orchestrating delivery is a tangible real world activity. It has deadlines, there are problems to solve, and there are defined outcomes.

Conversely, looking for new customers and opportunities is intangible; it doesn’t have to be done today, it could be done tomorrow.

But, here is the problem.  If you have a person who can choose to fill their day with solving real world tangible problems or spending it in the less defined and more intangible world of selling – where do you think they will spend most if not all of their time?

This is a very real problem for large industrials with branch offices all over the country where at smaller sites the branch manager wears multiple hats.

There is too much opportunity to cover their tracks. Being keen to close a sale (as we all are) will lead to things being forgotten and left out. If the person who discovers this is also the same person who made the mistake guess what happens? They cover the mistake up. And guess who ends up paying?

Every time I have recommended to my clients that they separate selling from delivery they have become more effective at finding new business and more disciplined about delivery. Profits have inevitably increased.  Ask me about my system for separating selling from delivery.

Old industrial jungle saying “never confuse selling with delivery”.

 

TIP 6

Tough love

 

Sales are the life blood.  A decline in sales means workforce surgery. Doesn’t it make sense to renegotiate the sales force’s remuneration?  Reduce the base and increase the incentive component.

It sounds unfair, but what is even more unfair is the idea that people elsewhere in the organisation have to be retrenched because some protected species sales person won’t put his money where his/her mouth is.

But be fair. Give them a big share of the upside if they deliver. I like uncapped incentive schemes, but even the opportunity to earn +100% of their base can help make life as an outside cat a lot more interesting.

Here is the really good thing about doing this; you will find out who can sell and who can’t.

I’ve heard the comment many times “I am already paying my reps a good salary; why do I need to also pay them when they make a sale; isn’t that what I am paying them to do in the first place?” to me that’s a bit like saying “Why do we have to whip the horse as well as feed him?” because we want him to win.

Give a salesman a wage and he’ll work until knock off time. Pay a decent performance bonus and knock-off time will have no meaning.

 

 TIP 7

Up the incentive

 

It’s not all about the big stick.

A simple, sales incentive paid monthly, that rewards results will work wonders.

And if you are having trouble coming-up with a scheme that satisfies everyone – I’ll do it for you; I have studied many over the years and I’ve seen one for every situation. Even some that have worked.

What sane human being would work harder and smarter to earn the same?

When the world invented sales reps a new word was added to the dictionary – pragmatism.

 

TIP 8

Plan sales calls

 

It’s just amazing how some sales reps can go on a sales trip to the country, interstate, or just out around the city – and not even plan the sales calls.

I’ve heard of an industrial rep selling to the mining industry, who once flew from Melbourne to Mount Newman via Perth; hired a Land Cruiser and drove five hours to a mine site – only to be told that “Bob is on leave. He’s climbing Mount Everest.”

Isn’t it obvious that sales calls should be planned? Objectives set, appointments made, and then results measured?

Sales reps are expensive, ranging from $50k to $120k base + costs.

If they make 100 face-to-face calls a year that could cost up to $1,000 per visit.

Does, that sound impossible? – do the arithmetic.

Does anybody else spend $1,000 in your organisation without doing some planning or being held accountable?

A rep without a plan is a rebel without a cause.

 

TIP 9

Teaching old cats some tricks they’ve probably forgotten

 

People who have been servicing enquiry for five years might need to be reminded about techniques for getting out there.

And I don’t care how experienced they are or how many sales training programs they have done in the past – they all help.

So what should you train them on?

Train them to earn more i.e earn more commission.

Train them on how to build relationships, how to spot opportunities, and how to solve customer problems using the products and services that your company sells.

Train them on being in the right place at the right time; train them on how to look at sales opportunities strategically.

Reacquaint them with how your product or service is better than the competition. Train them to identify who the competitor’s best customer is and how to get face-to-face with them.

This is a really good time to train.

You can’t teach old dogs new tricks – but Oscar is a cat.

 

TIP 10

Get a new cat

 

If your current moggie doesn’t look like he is going to make it as an outside cat – think about getting a new one. The unemployed ones are going cheap.

There is plenty of talent out there who have had a reality check. They are ready to re-engage.

And despite what I said about this being a good time to get rid of dead-wood, there are many companies who have shed some very good sales people. Get down to the unemployment office - "I want that hungry one with the big teeth."

During recent recruitment projects I have been surprised at the long list of well qualified, well experienced, sales and marketing people that apply.

If it’s a buyer’s market then why pay top dollar for bottom talent?

 

TIP 11

Give them the best tools

 

When times are tough and getting business from customers is hard work don’t try to save money by sending your sales people to face the lions with blunt instruments.

Why spend $50 to $100k a year on a rep and then have them walk into a customer’s office with a lined pad and a business card? Do the Christian thing and buy some decent sales tools.

I know, and I say it too “a good sales person doesn’t need to hide behind fancy sales tools.” And “A fancy brochure is no substitute for a good sales pitch.” But, they help and sometimes all it takes is an edge.

One sales tool that you really need to get right is your web site.  Even older business blokes are looking you up on the web.

Do you know what a business card is? It’s a little map showing people how to get to your website. And when they get there they’ll do a couple of things.  The first is they will make a value judgment – "are these people serious about what they do?" It’s terrible, but people judge books by their covers.

Secondly, they might look for a piece of information. What could they possibly be looking for? They are looking for evidence; evidence that you can solve their problem.

All aspects of on-line marketing are becoming critical to industrial selling. And it’s no longer just a case of getting your brochures converted to the internet (though that is a good start).  Websites are now dynamic information sources.

Companies are investing in new age marketing tools to get their websites read; search engine optimization (SEO), affiliate marketing, pay-per-click advertising, reciprocal linking, social networking, BLOG’s, news sites and traditional push strategies. At JWPM we’ve made an enormous investment in developing expertise in these marketing techniques.

When it comes to industrial marketing it’s a tangled web that we’ve weaved. 

 

TIP 12

Build a sales machine

 

Efficiency is about throughput, and to make an efficient sales machine you don’t want stop-start activity. You want flow.

One of my biggest success stories was helping a client set-up what I have termed an HCF sales model - Hook ‘em, Clean ‘em and Fry ‘em.

We helped our client to establish a team of territory manager’s whose role was to introduce the company and sell the advantages of dealing with the customer service team. "You want a quote on a new bit of kit or a spare part?" – ring the customer service team.

Picture highly incentivised sales people running around the country with a big fishing rod, landing big fish clients and throwing them on the deck for the customer service team to “clean them and fry them.”

While the customer service team were getting stuck into that one, the sales person was off looking to hook the next one.

No, he didn’t take the orders himself, he didn’t give them his mobile phone number and say “when you want to order something – ring me on my mobile.” No, because he knows that the customer service team will do a far better job than he can at servicing that client’s ordering needs, and to keep the machine humming he needs to get to the next sales opportunity.

The customer service team was a highly trained group who were able to speak the customer’s technical language and provide valuable technical advice.

Do you see how this works? It's like any team; there are people who are better at full foward than full back. We accept this in our sporting teams - but not many of us implement it in our sales department.  People who are really good at getting out there and building relationships are rare. Don't bog them down with paper work.

This isn’t the only sales model; however the point is it might be time to look at building a new sales model in response to the changing market.

Creating a sales machine isn’t about hooking one when it's quiet; it’s about drag netting the territory.

So there it is in plain speak.  Don’t waste another moment. It’s time to set the cat amongst the pigeons. Get down to the sale department and tell the sales team to get out there and meet some customers...“It’s my way and it’s the highway”.

Written by Justin Wearne, Principal Consultant, JWPM Consulting.