Good Sales People Are Problem Solvers

By Dave Kahle

“Good sales people are problem solvers.” Or, so the illusion goes. That belief ranks high on my all time list of the beliefs that most limit a sales person’s performance. This one is especially insidious because it is so commonly held, without reservation, by such a large percentage of sales managers and sales people. And it sounds so reasonable.

The world is full of sales managers who gravely proclaim that good sales people are good problem solvers. Sales people who use that belief to give direction to their jobs are to be found in every sales force.

The problem with this self-limiting belief, as in many such ideas, is that there is a grain of truth in it. Yes, good sales people are good problem solvers. However, they are so much more than just problem solvers. And, when a sales person or manager focuses on just that small piece of a sales person’s job, it eclipses all the other more pertinent ideas and limits the sales person’s effectiveness.

It’s just human nature to live up to the visions we carry about ourselves. We allow our beliefs to dictate our actions. And when our beliefs are out of touch with reality, our actions are not nearly as effective as they could be. We see what we look for and we don’t see nearly as much of what we don’t look for.

Sales people, then, who see themselves as “good problem solvers” naturally look around for problems to solve. In so doing, they miss huge opportunities to assist their customers in ways other than problem solving. In fact, many of the best sales people don’t look for problems to solve, they create discontent in their customers by showing them better ways to do things.

Here’s a real-life example of a “problem-solving” sales person.

I was asked by one of my clients to work with his sales force. The sales people were having trouble closing the sale. Here’s what happened in one sales call I made with one of their sales people.

We were selling HVAC equipment, and the sales person had an appointment with the prospect. We met the prospect, and he explained that the building had been added onto several years before, but that nothing had been done to expand the capacity of the air conditioning unit. The company now wanted to do something about that.

The sales person asked to see the area in question. He measured the square footage of the room, taking detailed notes on a form attached to his clipboard. Then he asked to see the existing equipment. We went up into the attic where it was located, and the sales person studied the existing unit, estimating the distance from the equipment to the addition.

He ended his information-collecting by saying to the prospect, “I’ll fax you a proposal in a couple days. Will that be OK?” The prospect said yes.
At this point, the sales person, who saw himself as a problem solver, had done an adequate job of understanding the technical specifications of the problem, but hadn’t even begun to probe into some of the other aspects of the sale. So, I intervened and asked the following questions.

“If you like our proposal, what’s the possibility that you’ll buy it within the next few weeks?”

Here’s what he said: “Oh, none at all. I’m just collecting information for budgeting purposes. We won’t actually buy anything until after the new fiscal year in January.”

My sales person didn’t know that because he never asked. Instead, he focused on the problem to solve.

Next I asked about the “situation.” I said, “When we met, you said that the addition had been completed a few years ago, but that nothing had been done to upgrade the air conditioning. Tell me, what’s changed about your situation? Why is this an issue now?”

He said, “Well, we added space to this building several years ago. It’s always been stuffy in the new addition, but we got along OK. At least until last week, when we had a heat wave. The air conditioning had to work so hard that it froze up. So we unplugged it to let the ice thaw. As the ice thawed, it dripped through the acoustical ceiling directly onto the president’s desk. So, that’s why we’ve decided to do something about it now!”

Then I said, “What are you looking for in a proposal?”

He said, “Just a ballpark figure we can use for budgeting purposes.”

I turned to my sales person and asked, “What’s a rough estimate of what it’ll take?”

He responded, “About $3500.”

Then I said, “What can we do to make you look good in this process?”

He said, “I just want to get this off my desk. It’s an extra project I don’t need right now.”

I said, “If we get you a ballpark figure, and a set of literature you can show to the boss today, will that help?”

“That would be great,” he said.

Finally, I asked, “How will a decision be made?”

“Around here, the president makes all of those kinds of decisions. So, I’ll collect the information and give it to him, and he’ll decide what to do from there.”

“Could we see him?” I asked.

The prospect replied, “Would you?”

“We’d be happy to,” I said. At that point, he set an appointment for us to talk to the president.

Let’s analyze this experience.

Notice that the sales person, who thought of himself as a “problem solver,” focused on the details of the technical problem. After all, what else would you expect him to do?

Unfortunately, in so doing, he missed what the customer wanted entirely. He would have vainly spent hours preparing and faxing the quote, and then wondering why he didn’t close the sale. He was well equipped to respond to the technical specifications of the problem, but didn’t have the faintest understanding of what the customer really wanted, and therefore, little chance of closing the sale.

To overcome the limitations and boundaries of this belief, you’ll need to think of yourself differently –you are not just a problem solver, you are a ‘customer-understander.’

When we begin to focus on the customer in a larger and deeper sense than just the immediate problem, we open up the possibility of uncovering larger and more significant opportunities within our customers.

For example, when we take the time to understand the customer at deeper levels, we’ll discover the customer’s business goals and his deeply-held values. We may discover that he wants to grow his business by 20% next year, for example.

Armed with that information, we can couch our proposals in terms that relate to his deeper, business goals. Or, we can create a unique proposal that speaks specifically to that issue.

It’s in that area – bigger proposals for deeper needs – where the serious professional sales people distinguish themselves from the pack.

The best way to change our beliefs, is to experience something which conflicts with them, and causes us to re-think those beliefs. In this issue, the best way to see yourself as larger and more capable than just a problem-solver is to focus on understanding your customers better by asking a set of well-constructed, prepared questions, and listening constructively to the answers.

As you begin to gain success in understanding the customer better, you’ll change your view of yourself, and open up a world of greater opportunities. Great sales people are not just problem solvers. They are customer understanders.

And when we get that belief, we rid ourselves of the bonds wrapped around our performance, and unleash our capabilities for greater return.

About the Author:

Dave Kahle is one of the world’s leading sales authorities. He’s written twelve books, presented in 47 states and eleven countries, and has helped enrich tens of thousands of sales people and transform hundreds of sales organizations. Sign up for his free weekly Ezine. His book, How to Sell Anything to Anyone Anytime, has been recognized by three international entities as “one of the five best English language business books.” Check out his latest book, The Good Book on Business.

source http://www.commence.com/blog/2018/06/25/good-sales-people-are-problem-solvers/

Small Businesses Struggling to Adopt CRM Software

Small businesses want to take advantage of the same technology and software solutions that larger firms are using to become more efficient with how they market, sell and provide service to their customers. This can be a significant challenge for smaller organizations however, because they typically do not have experienced sales, marketing or customer service professionals on board that can manage the implementation, utilization and support of the CRM solution.

CRM by its nature dictates change. You cannot automate and streamline your internal business processes without impacting the policies and procedures that are currently in place. This requires experienced people and management’s commitment to supporting the changes necessary to improve the performance of the business. The high failure rate of CRM implementations among small to mid-size businesses is a clear indication that one or both are missing from the equation. As a result, small businesses are struggling with the adoption of CRM software.

I have been engaged in more than 100 CRM implementations and there is a common denominator that separates the successful ones from those that are unsuccessful. It all comes down to the following:

Strong Inside Management

The management had a clear vision of what they needed the CRM solution to do and how they will measure its success for their business. They were also committed to providing the leadership necessary to ensure their success.

Outside Expertise

The management understood that they would require outside expertise and assistance to successfully execute their plan. They engaged my company’s on-boarding team to help implement a sales structure for managing the sales cycle; create a mix of marketing programs designed to build brand recognition and generate new business opportunities; and incorporate automated programs to improve the customer buying experience.

Mutual Commitment

The management was committed to ensuring that their staff was properly trained on how to use the software and realize the maximum value from the product.

These firms viewed the implementation of CRM as a critical next step to improving their business performance and were willing to make the financial and managerial commitment to its success. This is why they were successful. Too often this is not the case in the SMB community where companies tend to purchase a CRM solution based on its cosmetic appeal or price but are not prepared to make the commitment necessary to ensure the successful implementation and use of the software. You see this across the board regardless of the CRM solution selected.

The simple fact is that the successful implementation of any CRM solution requires a commitment to change management; a commitment to engaging outside resources to fill the experience gap; and a commitment to ensure that the staff is properly trained and supported before, during and after the implementation.

About the Author:

Larry Caretsky is president of Commence Corporation a leading provider of CRM software and best practices for improving marketing and sales execution. Caretsky has written hundreds of articles about CRM and an e-book, “Practices That Pay”. These can be viewed at commence.com/blog.

source http://www.commence.com/blog/2018/06/19/small-businesses-struggling-to-adopt-crm-software/

Best CRM Solutions of 2018 by Company Size, Mid-Year Roundup

With a myriad of CRM solutions to choose from, this article rounds up our “Top Two” picks for best CRM solutions of 2018 in each category by business size: large business, mid-size and small business. What differentiates these products from others is the following:

1. Established company track records: Each of these companies has been in business for a decade or more
2. Customer approval rating: Each has a large customer base and has earned the trust of their customers
3. Peer recognition: Each has earned accolades from industry analysts for the quality of their products and the array of value added support services they provide

Best CRM Software for Large Business in 2018

Salesforce

Best suited for larger organizations who can deal with the complexity of implementation and customization of the software.

Pros:  Robust functionality and scalability, strong integration to disparate third party products, offers an array of support services.  Large installed base. Considered a leader in the sector.

Cons:  Somewhat of a dated user interface and viewed as cumbersome and hard to use. Can get as pricey as a BMW with options.

Microsoft Dynamics CRM

Also suited for larger organizations with robust functionality requirements.

Pros:  Comprehensive functionality and scalable; also nicely integrated with an array of third party applications. Company reputation is strong. Large installed base.

Cons:  Sold through local third-party resellers which is concerning to some customers that want a direct relationship with the solution provider.

Best CRM Software for Mid-Size Business in 2018

SugarCRM

A mid-market solution with good functionality, a large customer base and quality customer support.

Pros:  Good functionality and can be implemented on-premises or in the cloud.

Cons:  Customers find the solution a bit hard to use, add-on modules can be expensive and has a minimum of 10 users. Support can get costly.

Commence CRM

A comprehensive offering targeted at small to mid-size businesses. Attractively priced and offers an array of professional services. A trusted company in business for more than two decades.

Pros:  Robust functionality that rivals more expensive solutions, easy to implement and use. Customers give high marks for customer service.

Cons:  Integration with third-party products not as strong as others.

Best CRM Software for Small Business in 2018

Zoho

A free offering with a number of add-on modules and features. Some limitations, but a good solution for the small office / home office (SOHO) environment.

Pros:  Just the basics, but does a good job supporting small business needs.  Easy to use and has an upgrade path to more functionality.

Cons:  Some limitations; not enough customizability and support services are limited (primarily e-mail only).

Hubspot

Basic low cost offering for small businesses with a focus on contact management and marketing.

Pros:  Low cost, easy to use and offers marketing automation. Free version available.

Cons:  Limited functionality and customization, no growth path outside of what the product currently offers.

source http://www.commence.com/blog/2018/06/11/best-crm-solutions-of-2018-by-company-size-mid-year-roundup/

Small Businesses Should Not View CRM as a Commodity

Most small business executives view CRM software as a commodity product and it is easy to understand why. Today, there are several hundred solution providers that cater to the small business community.  They all offer the same basic functionality for managing accounts and contacts, activities, notes, e-mail and in some cases a sales forecast.  In fact, the market has become so competitive that it has created what is often referred to as a “race to the bottom” whereby every time a new competitor enters the market they believe that the best way to attain new customers is by being the lowest cost.

Well this has worked, at least for the consumer, because there are many solution providers that now offer a version of their product for free. Some offer it free for 2 or 3 users, some 5 users and some even more.  While small businesses may be enjoying this, I am not sure they appreciate the impact this has had on the sector and what it means for their business.  CRM solution providers have realized that providing software for free or for a few dollars a month is not a sustainable business.

Some have gone under or merged with larger organizations while others have changed their business model to remove the human cost associated with acquiring a new customer.  Free trials have now taken the place of personal demonstrations. There is no contract to sign anymore, instead you enter your credit card over the internet and pay month to month.  Customization is very limited and product training is offered via free videos.  Perhaps the biggest change is that customer service (whether you require some advice and counsel or just need your questions answered) is by e-mail only and may take 24-48 hours to get a reply.

While this doesn’t sound all that bad let’s not forget that we are talking about Customer Relationship Management which requires human intervention to be successful.  Industry analysts have reported that the failure rate of CRM implementations among the small business community has reached a whopping 73 percent.  This is clearly the result of the lack of human intervention that ensures the proper implementation, use and support of CRM software.  So, who is the winner in this environment?   Certainly not the consumer and not the CRM vendor either.

Every business large or small wants to improve how they market, sell, and provide service to their customers. But small businesses struggle in these areas because top level sales, marketing, and customer service personnel are hard to find and too expensive to hire. As such, small businesses need to depend on the skill set of the CRM solution provider to deliver this expertise coupled with their software so that they can realize the maximum value from the product. If the solution provider is unable to provide this value-added service, then all you are buying is a low-cost or free piece of software that in most cases will fail to get implemented and properly used.  But it doesn’t have to be that way.

While the majority of CRM solution providers that cater to the small business community are unable to provide sales, marketing and customer service expertise there are a few companies that offer very good affordable solutions coupled with this level of service.  One of these companies is Commence Corporation, manufacturers of Commence CRM. Commence offers comprehensive functionality supported by a team of sales, marketing, and customer service professionals with more than 15 years of experience in these areas. It’s what differentiates Commence and ensures that the CRM system gets properly implemented, your staff gets trained by professional trainers, and that you realize the maximum value from the CRM solution.  Learn more about Commence CRM at www.commence.com.

source http://www.commence.com/blog/2018/05/21/small-businesses-should-not-view-crm-as-commodity/

Discipline is Key to Successful CRM Installations

CRM software is getting a bad rap and it’s not justified.  Some feel that the products available are over-engineered and too hard to use.  Others think they are too expensive and some believe CRM is just not for them. It is true that CRM installations are failing at an alarming rate, but there are also many companies that are realizing substantial value from their CRM software.  The key differentiator between success and failure is discipline. Some companies understand that they are going to have to invest time and resources to ensure the successful implementation and use of the software. Others seem to view CRM as a commodity product, like an appliance that you simply plug in the wall; these are the companies that have struggled with CRM.

The successful implementation and use of CRM software requires a firm commitment from management. They assign someone of authority who can take charge of the implementation. They appreciate that internal policies and procedures may have to be modified to address their business objectives. They proactively work with the solution provider to ensure that the new procedures are properly implemented, and that the staff is properly trained.  Depending on the level of functionality they wish to implement and how many departments are impacted, this can be a larger commitment than most companies anticipate.

As a sales executive I can tell in just a few minutes if the company I am talking with is going to be successful with our software.  I get those that are just ‘shopping’ for whichever vendor offers the most features at the lowest cost, or the small company that is simply looking for an automated Rolodex for their business. A free or low-cost CRM system will most likely address their needs quite well.

The ones I get most excited about ask me to review their requirements and provide some details as to how we have addressed similar requirements for companies like theirs. This is often groups of 10 to 100 employees that are trying to automate their internal business processes. They often ask for an implementation plan, who will be managing it from my firm, and what procedures we have in place to ensure the project stays on schedule.  They also want to know about training and how we will ensure that their future requirements will be met after the implementation is complete. This is clearly the profile of a company that is serious about using CRM software. They want to improve how they market, sell and provide service to their customers and they appreciate the level of commitment they need to make to ensure a successful implementation.  For these companies they know it’s a combination of product and value-added services that will result in a successful implementation and will make a substantial impact on the performance of their business.

source http://www.commence.com/blog/2018/05/18/discipline-is-key-to-successful-crm-installations/

Salesforce Functionality at a Small Business Price

Companies looking for a CRM solution for their business immediately think of Salesforce.com. Then they learn what everyone else has – it’s too expensive and too hard to use and they are right, but perhaps for the wrong reason.  Salesforce is a good product and a good company, but that does not mean their solution is right for every business.  No company can be all things to all people and Salesforce is no exception.  The company’s product addresses complex issues for enterprise level corporations and as such, incorporates a level of complexity that is simply not necessary for many small to mid-size businesses. That does not mean the product is too expensive or too hard to use. It just means that it is not the right solution for you.

The good news is there are a myriad of CRM solutions available, from basic out-of-the-box systems to ones designed for specific vertical industries like legal, banking or real estate.  While few CRM solutions can match the scope of functionality and scalability of Salesforce, there are some very good products targeted at the middle market that offer comprehensive functionality, customizability and affordability that many companies are looking for.  One of these products is Commence CRM, manufactured by Commence Corporation. Commence has been in the CRM sector for two decades and has a very good track record for the quality of their products and the customer service the company provides.

Commence CRM offers a robust suite of applications that rival Salesforce at a fraction of the cost. The product includes account and contact management, lead and sales management, marketing, a help desk with customer ticketing, analytical reporting, e-mail integration, mobile, an internet service portal and an integrated project management application.  Commence also offers a higher level of customizability than competitive products and offers an array of value added services for sales optimization and marketing.  The product is best suited for businesses with 10 to 100 users that need the functionality Commence CRM can provide, but not the cost and complexity of Salesforce.  Pricing ranges from $29 to $65 per user per month.

source http://www.commence.com/blog/2018/05/15/salesforce-functionality-at-small-business-price/

It Takes More Than Compensation to Unleash a Sales Force

By Dave Kahle

I’m often asked to help a company refine their sales force compensation plans.  As a consulting company, that’s work that we regularly do.  I believe in having a well-designed, effectively managed compensation plan as a fundamental part of any productive sales system.

But, it’s a mistake to think that the compensation plan is the entire solution.  It’s only a part.

The reason that a company will call us to help with the compensation plan is often a deeper issue.  Their sales are flat, or even declining.  They are casting about to find a solution to their lack of sales effectiveness, and have arrived at compensation as the culprit.

It may very well be contributing to the general malaise.  But it’s rarely the only issue.  Let’s consider some other factors commonly contributing to dismal sales numbers.

TRAINING!

Sales is a sophisticated profession where the skill set of the highest performers is significantly greater than that of the mediocre.  And the unfortunate, ugly truth is that most B2B sales people don’t know how to do their jobs well.  They have never been instructed in the best practices of the best sales people.  They have struggled to learn on their own, on the job, through trial and error.  Some of them have arrived at routines that have been successful for them, but most have not.

You can change the compensation plan all you want, but if you don’t instruct the sales people in how to do the thing that you are paying them to do, your results will be considerably less than spectacular.

Here’s an example.  Let’s say that you want to gain new customers.  So, you change your compensation plan to pay a premium for new customers.  That’s good, and some sales people will, as a result, put more effort to acquiring new customers.

But, that doesn’t mean that any of them know how to do this well.  While some will be attracted to the income, the lack of comfort associated with how to do it will be a far greater force, holding them back.

If you pay them a premium to create new customers, and then train them specifically in how to do that, you’ll find that your change in sales force compensation will make a dramatic improvement in their behavior.

The same can be said for any specific behavior that you want to encourage through a revised sales force compensation plan.  It won’t do you much good to emphasize key account penetration, key product line sales, etc., unless you take the time to show them how to do what you want them to do.

MANAGEMENT PRACTICES

The practices and routines followed by sales management can have a great impact on the performance of the sales person.  For example, if you change your compensation plan to emphasize acquiring new accounts, and your sales manager never measures the number of new accounts acquired, never measures the various steps in that process, never asks the sales person about it, nor holds him accountable in any way, your change in sales force compensation will be ineffective.

Sales managers need to measure the progress on every performance indicator encouraged by the compensation plan.  They need to have regular meetings with each sales person in which the topic of conversation is dictated by the sales manager, and focuses on specific progress on each performance indicator, and specific plans to achieve greater numbers. This process, by the way, is one of the key processes we teach in our Kahle Way ® Sales Management System.

STRUCTURE

In much of my other writing, I discuss the concept of “sales structure”.  Briefly, the structure is the set of written and unspoken policies, procedures, and expectations that surround the job of the sales person.  I like to characterize it as everything left in the sales department after you remove all the people.  It is larger and more specific than “culture” because it is often codified and institutionalized.  Some examples of elements of the structure include:

Sales compensation plan

Job descriptions

Territory definitions

CRM, or lack thereof

Call reports, planning itineraries, or lack thereof

Pricing guidelines

Sales process definitions

This is just a small sampling of the list that makes up the “rules” – the way things are done in your company.

The key rule here is that the structure must support the behaviors that you are reinforcing in the compensation plan. For example, if you emphasize the acquisition of new accounts, but several of your sales people have mature territories with few prospects left, the structure stands in the way of the compensation plan.

Most components of sales structure are vestiges of days gone by.  They were created, typically, in response to a crisis some time ago, and became codified.  Most companies aren’t even aware of many elements of their structure, because they have been so embedded into the routines of the company that they don’t even notice them anymore.

It’s not unusual to find elements of the sales structure that present obstacles to the attainment of the compensation behaviors. Not only are they not supportive, they stand in the way.

When you change your sales force compensation plan, look at every single behavior that you want to encourage, and ask yourself, “Is there anything in the way we do sales in this company that presents an obstacle to the sales person performing on this issue?”  Be open-minded.  You may even ask for some outside input.  Remember, many of the elements of your structure are so deeply embedded into your routines that no one even notices them.

When you identify structural elements that are obstacles to sales success, work to eliminate them.

PEOPLE

It is an unfortunate truth that many sales people, maybe as high as 40 percent of your sales force, should not be in their jobs.  While they may have all the product knowledge in the world, they just are not suited to deal effectively with the challenges of the job of the sales person:

constant rejection
the need to create positive relationships with everyone
the responsibility to effectively manage their time
the need to continually learn more about every customer.

Sales is a profession that is growing more sophisticated and challenging by the day.  Many of today’s sales people, who were adequate in terms of their aptitude and attitudes in the past, are not up to the rigorous demands of the job today.

You can have the greatest compensation plan in the world, but if your people are just not capable of performing, the plan will be a waste of time.

While I applaud every company’s efforts to revise their compensation plans, at the same time I have learned that compensation is only one part of the picture.  If you really want to revise your sales efforts, you need to attend to the other issues discussed above, as well.

About the Author:

Dave Kahle is one of the world’s leading sales authorities. He’s written ten books, presented in 47 states and ten countries, and has helped enrich tens of thousands of sales people and transform hundreds of sales organizations. Check out our Sales Resource Center for 455 sales training programs for every salesperson at every level. To connect to the Sales Resource Center use this link: 
http://www.thesalesresourcecenter.com

source http://www.commence.com/blog/2018/05/09/it-takes-more-than-compensation-to-unleash-sales-force/