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One simple way to generate RECORD SALES in 2023

January 26th, 2023

There is a very simple, but rarely utilized method that, if implemented is guaranteed to have major positive impact on the sales and profit growth of any private business.

Before reading further, consider this question…:

Is your sales manager (or sales management function) effectively growing, leading, and directing a consistent, productive, high-performance sales team?  If so, congratulations!  You are part of a extremely small minority. 

If not, I have good news, and bad news.

The bad news is that you are recurrently missing out on many tens (or hundreds) of thousands of profit every quarter, and things will likely worsen if you have migrated to more of a remote selling model. 

The good news is that most of your competitors also lack effective sales management.  In other words, you are competing with pervasive mediocrity.    Many studies show that the vast majority of companies conduct “sales management” reactively (versus proactively).   For most SMB private companies, sales management is perceived as a necessary evil, or even worse, as an unnecessary pain-in-the-ass.   Consequently, management of sales is often conducted more as an afterthought than as a vital embedded organizational habit.   Group and individual sales meetings take place inconsistently, if at all.  Sales Management activities are conducted as a fly-by.  They only occur “when we have the time…” (aka:  rarely or never). 

For decades, companies that do employ effective sales management have consistently outperformed their competitors, but during times of rapid change and economic turmoil, a solid sales management process will have an even greater effect.  A good SM process can help you quickly capture market share, grow your bottom line, and strengthen your company — a unique and tremendous opportunity.

Here are a few facts…: 

Many private businesses do not have a dedicated manager of sales (or anyone who owns the sales management responsibility).

A huge percentage of private businesses do not manage sales at all.

In many instances the “sales management function” is conducted part-time (and quite poorly) by one of the company principals, who has little or no idea what they are doing.

The most Effective Sales Managers spend a minimum of 75% of their time coaching, developing, motivating, recruiting, and holding reps accountable.  These are the Critical Activities.

Most “sales managers” perform none of the Critical Activities.  Instead, they spend time reviewing accounts, generating reports, going on ride-alongs, and rescuing.

Less than 10% of salespeople have the skills and strengths to perform effectively working from home, including basic consultative-selling proficiencies.   This deficiency dramatically increases the importance of consistent coaching.

Remote sales teams require a much greater level of sales management engagement and direction to succeed.  Again, an increased level of proper coaching here is required.

Do any of these facts hit close to home? 

If so, you know you can do much better, but may also feel like getting a handle on things can appear daunting or overwhelming.  Not to worry — there is a massive silver lining and more good news. 

1.      There are simple, time tested processes available to quickly upgrade your sales management effectiveness and team performance. 

2.      Upgrading does not require a lot of time or money.  It simply requires using time differently (and more productively), making a few different commitments, and adopting a few new processes and habits. 

3.      Today’s volatile economic and rapidly changing business environment has created a unique opportunity for you to capture massive market share and unrealized profit, for both the near and long term. 

4.      Embedding an Effective Sales Management Process into the fabric of your organization is the gift that keeps on giving. 

Few, if any, companies will maintain status quo over the next 18 months.  There will only be winners and losers.   Effective Sales Management will be a major differentiator and vital component of companies that end up in the Winner’s Circle. 

Copyright © Joe Zente 2023. All Rights Reserved.

Why your Sales Forecasts Suck, and what you can do today to fix them

December 5th, 2022

For good reason, business owners get extremely frustrated when their salespeople forecast sales that never close.

NO one wins when a sale that has been projected to close in the next quarter or two results in a goose egg.  In addition to a salesperson missing their quota or missing out on commission, projected sales that don’t convert can cause all sorts of damage to an organization.  The larger or more complex the “opportunity”, the greater the damage.

Why do most organizations tolerate this nonsense?  Let’s take a closer look at this issue and conduct a reality check…:

Approximately 80% of opportunities projected by salespeople in CRMs as “Hot Prospects” do NOT result in a sale.

Approximately two thirds of these “hot” prospects that do not convert are not lost to a competitor.   They are lost to status quo.   In many cases, the prospect never intended to make any decisions or changes.

In nearly all of these zero-result situations, the salesperson neglected to unearth much or all of the most relevant information, including (but not limited to) the decision maker’s true intentions, motivations, priorities, and buying criteria.   In many cases, they don’t even know who the decision maker really is…

According to most studies, less than 15% of salespeople generate more than 80% of new revenue.  The other reps (which make up the majority) battle over the remainder of the sales. When they do stumble upon a “win”, the purchase order is typically acquired at a much lower margin than the average sale generated by the Effective Fifteen.

The Mediocre Majority have very Happy Ears.  In the rare instances when a buyer begins to share a bit about what they are really thinking, a weak salesperson will listen through a filter of optimism, incorrect assumptions, and unrealistic hope (instead of probing further to reveal more important information).  The picture they consequently see (or want to believe) rarely resembles the picture that the buyer perceives (aka:  the TRUE picture).  So, before we know it, we have another forecast opportunity sitting in our CRM that has a snowball’s chance in hell of converting into real business.

Fortunately, all of this insanity is easily avoidable, and there is a ton that any business owner can do to improve their forecast reliability and sales team effectiveness.  There are time-tested, highly reliable, foundational best practices and processes to ensure that sales projections made by salespeople represent real opportunities.   This is GREAT news for any owner willing to implement them.

Here are just a few of the most important steps you can take today to ensure that you can dramatically improve and rely upon sales projections…:

Assess your salespeople:   The statistics described above indicate that it is likely that only one-fifth of your sales reps are operating with any level of effectiveness.  The skills, strengths, weaknesses, and key attributes required to forecast properly (and sell productively) can be easily and quickly identified.   You wouldn’t send an ineffective pilot out to fly a plane, so why would you send an ineffective sales rep out to try to sell?

Adopt a rigorous, transparent Sales Process:   Most companies, and even fewer salespeople, follow a sales process.  An effective sales process has many benefits, one of which is to gather critical information.  A Qualifier Checklist may be embedded into any process and can aid tremendously in Forecast Accuracy.  The process would force this checklist to be completed long before an opportunity could be forecast as a “Hot Prospect”.  If you have a salesperson that is incapable or unwilling to follow your sales process, it is highly unlikely they will return an ROI to your company.

Adjust your Team’s Mindset:   You cannot lose what you never had.   Since you, your products, and your services are great, but are NOT for everyone, it is important to understand that every buyer interaction should be managed exclusively to determine if there is enough mutual value to continue investing time.  A losing mindset creates feelings of rejection and deflation, making it tough for a rep to get back in the saddle.  The most successful salespeople understand that   there is no such thing as “losing a sale”.  Every sales interview can only result in WINNING or LEARNING, both of which are highly productive and inspirational.   The best salespeople spend the majority of their time listening, understanding, facilitating discovery and learning.  They gather critical intelligence, so are therefore able to forecast sales with much greater precision and accuracy than the unproductive, talkative, Mediocre Majority.

This Effective Mindset is not only based in TRUTH (versus hope), it is also much more energetic and motivational for any salesperson that embraces it.

Clearly Define each step in your Sales Process, then map each step to your Sales Pipeline:   Doing so will make your entire team far more effective, providing you with vital information about the productivity of each sales rep and your entire sales machine.  A correctly constructed Pipeline will also provide you with tons of forward-looking visibility and leading indicators about future sales; critical information required to make informed decisions regarding investments in personnel, infrastructure, inventory, and more.

Adopt a simple, transparent, consistent Sales Management Process:   Sales Management may be the single biggest ingredient contributing to the success (or failure) of a private company. Unfortunately, many SMB owners think about sales management as an afterthought or conduct it “if we have time”.  They deploy sales management reactively versus proactively.  Big mistake.  IF you have implemented the steps I’ve described above, Sales Management can be a simple,

enjoyable exercise – an process that does not require much time, but one that will pay HUGE dividends.

Although perfection in the world of sales is unattainable, continuous improvement and growth are not.  Following these simple steps will not only massively improve the reliability of your sales forecasts, but will also dramatically improve your revenue and profit results.

Wishing you record growth and prosperity in 2023!

Copyright © Joe Zente 2022. All Rights Reserved. 

The ONE thing you need to fix on your Sales Team. Now.

November 1st, 2022

According to a recent survey of Executive Decision Makers by Forrester Research, 89% of sales meetings were considered to add no value to the Buyer. A complete failure…

In other words, nearly 9 out of 10 sales interviews do not only lack value, but they also diminish a company’s reputation by wasting the buyer’s time, actually INCREASING the chance of losing a sale!

You may be thinking…:

“How are MY salespeople, or my personal sales interactions, perceived by Decision Makers?”

“How can such a large percentage of salespeople consistently fail?”

and most importantly…:

“What can I do today to make sure MY salespeople add value during sales interviews?”  

Some of the more obvious and tactical reasons salespeople fail include trust-destroying behaviors like talking too much, not asking enough questions, not listening, the lack of a sales process, Happy Ears, and Premature Satisfaction™.  Each of these shortcomings must be eliminated in order to have effective buyer conversations. However, the most overlooked (and most essential) ingredient required to conduct a high-value, productive sales interview is a Salesperson’s Mindset & Beliefs. 

The conversation a salesperson has with his/herself is far more important than the conversation they are about to have with a Buyer. 

The data tells us that if you have 10 salespeople on your Team, 9 of them are likely to be turning off Decision Makers. It is also likely that these reps are making most, if not all, of the tactical mistakes I listed above.

Some of your salespeople may know it is important to ask more questions, talk less, and listen more, but they still do not do it.  They may know better, but they do not do better. This is because their words and behaviors live in conflict with their Self-Talk and their Mindset.  It ALL Starts here. Their Beliefs control their Behaviors, including how they listen, what they hear, what they miss, what they say, and their RESULTS.

Most salespeople are doomed before they even begin.  Buyers can sense intent. Even if you have the most incredible product or service in the market, most prospects will not buy from a person they don’t trust.

One cannot act Trustworthy. One can only BE Trustworthy. Prospects do not care what you know until they know that you care. If a sales rep believes that the goal of a conversation is to “Get the Order”, or to “Send a Proposal”, these Beliefs and Goals will pre-dispose them to acting, speaking and (not) listening in a way that will be counterproductive. Here is a list of more of the most common destructive beliefs that ineffective salespeople consistently tell themselves, making it difficult or impossible to facilitate effective sales interviews…:

  •  “It is more important to Educate the Prospect, than to Learn and Understand.”
  •  “It is more important to be Liked than to be Trusted.”
  •  “I really need this order.”
  •  “People who think things over will ultimately buy from me.”
  • “That sounds good” is a ‘buying signal.”
  •  “A great way to prove I am credible is by giving great presentations and demonstrating my expertise.”
  •  “I should always be Closing.”
  •  “Most of my prospects are being honest with me.”
  •  “If a prospect asks a good question, it is critical that I provide a comprehensive answer.”
  •  “If they need what I sell, they will ultimately buy from me.”

Every one of these beliefs will diminish a salesperson’s trustworthiness, reducing their selling effectiveness.

The Goal of every conversation should be simple.  In order to become a member of the Top 10%, a salesperson’s singular goal must be to remain in the conversation to facilitate mutual discovery only as long as it makes sense to do so for both the Buyer and Seller.  A salesperson should be stingy with their time, and generous with their questioning, understanding and empathy.

If a sales rep commits to any other objective (e.g: “getting the order” or “sending a proposal”), the buyer will sense their self-orientation. They may not throw you out of the office or hang up on you, but they will no longer trust you.   The conversation is essentially over.

All committed salespeople and sales teams can benefit greatly from training, coaching, and continuous improvement, and I would certainly encourage you to do it, but no aspect of training will have a bigger impact on growth and higher ROI than working on a salesperson’s mindset.

Copyright © Joe Zente 2022. All Rights Reserved. 

The Sport of Business, Volume Two (PRACTICE)

August 25th, 2022

Last month, I initiated a blog series designed to help entrepreneurs by drawing the many similarities between success in business and success in sports.  This first article described the most foundational attributes possessed by virtually every elite athlete and entrepreneur—desire, commitment, proactivity, humility, practice, and discipline. 

In today’s article, I’d like to elaborate upon critical components of the Practice Routines that separate virtually every superior athletic and business performer from the mediocre masses.  Not only do the best of the best participate in practice, they unconditionally commit to practicing, correctly.  They make their practice a habit, a habit that they love.  Superior Performers (SPs) understand that their level of success is directly proportional to active participation in correct practice, so they indelibly embed every session into their calendars.  Practice sessions are non-movable and non-negotiable, and consume their full attention and focus.  SPs do not allow distractions or excuses to prevent them from faithfully executing their practice routines.  They are more likely to miss brushing their teeth, than to miss practice. 

SPs place an enormous value on practice and rarely feel like they can get enough of it.  Stories of superior athletes who were always the first to show up for practice, and the last to leave are legion.  SPs are always seeking ways to practice more and to maximize the efficiency and effectiveness of each one of their sessions.   Conversely, mediocre performers are often satisfied to simply show up (or not), check the box, and “get it over with…”.   Rather than focusing, learning, committing to new behaviors, and executing, weaker performers will often arrive late, leave early, allow interruptions such as phone calls or texts, and insert other distractions.

In order to maximize the effectiveness of their sessions, Winners (and those committed to becoming Winners) will always insist upon a core set essential ingredients to ensure that the time they invest in practice will yield maximum return, results, and rewards.  These include…: 

Excellent Trainers who will share the best-of-the-best processes, techniques, methodologies and mindsets.

Superior Coaches will help the SP assess their performance, identify strengths & weaknesses, develop new insights, and make necessary adjustments.  A great coach will also help the SP continually set new, loftier goals, push to stretch higher and higher, and hold the SP accountable for reaching these new stretch goals. 

A Powerful Community of Peers who understand that we are all better, stronger, and smarter together, than any single one of us.

A Small Elite Group of Practice Partners – Every great performer will seek out and surround themself with a carefully selected, highly committed group of like-minded peers.  These select group consists of individuals who all live in a similar movie and are willing to share their knowledge, wisdom, best practices, and more.   Each member of this group are willing to invest the time and energy to understand each other’s stories, context, vision, and goals.  SPs understand that they don’t know what they don’t know, and that an elite group of committed SP peers can not only serve to help each other develop new insights and inject accountability, but will also call BS or dispense tough love when necessary if they notice that one of the group members is “dogging it” or “just going through the motions”.    

For all Superior Performers, this group may well be the single most important ingredient to insuring continuous growth and improved performance.  

The good news about all of this is that ANYONE can do it.  You may not have the physical attributes necessary to dunk a basketball or hit a 600-foot home run, but everyone can dramatically improve their (business or athletic) results and blow away their competition by modelling the behaviors of superior athletes and entrepreneurs.

Self-discipline is simply doing the easy things that most are not willing to do.

If you don’t follow a similar practice routine, I’d encourage you to start today.  You will be glad you did. 

Copyright © Joe Zente 2022. All Rights Reserved. 

The Sport of Business (Volume One)

July 21st, 2022

I’ve been a lover of sports my entire life.  I enjoy the challenge, the competition, the goal setting, the camaraderie, and much, much more.  I especially love team sports. 

I’m certainly not the first person to draw parallels between sports and business, but I talk about the subject often, and several business owners have encouraged me to write about it.   They felt that my thoughts could help entrepreneurs lead more successful companies.  To date, I haven’t obliged.

As I was watching the Major League Baseball All Star Game last night, I decided to cave in and get some thoughts down in writing.   Unfortunately, there are way too many thoughts for a blog article, so I’m going to take this in small bites…:

To provide some perspective, my earliest memories in life involved playing baseball.   I was a 3- sport athlete in high school, played two varsity sports in college, and continued playing baseball at a high level until I was in my 40s.   I would still be playing if my eyesight would allow it (hardballs move with velocity).  I’ve also coached my 3 boys and thousands of kids and celebrated as dozens of them moved on to achieve great things playing in college and the major leagues.  Whatever path they ultimately chose, I have no doubt that all of them learned valuable life lessons from participating that can serve them well in their careers.

On the business front, I directed teams and divisions in several Fortune 500 companies early in my career, founded, grew, and sold 5 private companies, and have spent the last 25 years helping successful entrepreneurs and CEOs implement processes and practices and build and scale into their teams to create high-value, built-to-sell companies.

I only share this background to answer the “why should I listen to this guy?” question — my whole life has included deep dives into sports, coaching, and business.  

I’m not suggesting here that all superior business owners have the strength, speed, size, coordination, or other physical attributes necessary to be a professional athlete, or that all great athletes possess the skills and attributes required to quickly become superior CEOs.  However, I can say that the principles, processes, beliefs, mindset, and habits that make a successful athlete are nearly identical to those of a world-class entrepreneur.

So here goes.  Over the next few months, I’ll share a few attributes and insights that I believe are the ESSENTIAL ingredients to achieve the absolute highest levels, in either sports or business.  So here goes…: 

 1.      Desire:   No great athletes simply show up and consistently dominate.   They love what they do, and they practice, practice, practice.   The most successful entrepreneurs love what they do in the service of people who love what they do.  This passion drives them to learn to love practice.  When you witness a superstar on TV gracefully performing a feat that seems nearly impossible, you can be sure that they can do it because they have practiced the same routines thousands of times, over and over until they own it.  All athletes (and owners) that achieve great things practice consistently, incessantly, and habitually.  

 2.   Commitment:   Superior results require unconditional commitment.  Great owners (and athletes) understand that there will be hurdles.   Sometimes the journey even hurts (mentally, emotionally, or physically).   Great owners, athletes, and teams understand what it takes.  They therefore commit to leaving their Comfort Zone.   They understand that achieving the highest heights means breaking through all sorts of obstacles, curve balls, and uncertainties. It’s a minefield out there.  Compelled by their desire and commitment, superstars train themselves to become very comfortable with being uncomfortable.   

 3.   Planning for Proactivity:   Success in business or sport rarely occurs by accident.   It requires a Plan.  Mediocre performers show up on the field of play (or business) and react to the events of the day.  Conversely, superstars have a plan.  The best understand that they can do anything, but they cannot do everything, and they never allow distractions to take them out of their practice routines and processes.  They commit to non-negotiable activities that are indelibly embedded into their calendars.  This focus upon important over urgent allows individuals and teams to grow faster because they learn faster, and moves them profitably forward week after week, month after month.   After a year or two, they most often have left their competitors in the dust.

4.     Humility:   All superior athletes and business leaders understand that they don’t know what they don’t know.  They understand that even if they are at the very top of their game or “in the zone”, there is always someone right behind seeking to gain advantage.  John Wooden, one of the most successful college basketball coaches of all time said: “Whatever you do in life, surround yourself with smart people who’ll argue with you!”

 Even the best of the best understand that they do not have all the answers (not even close).  They therefore adopt a Practice that includes…:

a.      Skills Development (they learn by doing–Correct practice, practice, practice)

b.      Coaching (for insights, perspectives, accountability, and more)

c.       Collaboration (aka:  Structured Peer Learning)

d.      Curriculum (books, videos, post-mortems, game films, the right tools…)

e.      Community (massive synergies, opportunities, and learning)

Superior performers proactively control their Time and MAKE SURE that they develop the habit of working on all 5 of these components each and every month 

5.    Discipline and Mental Toughness:   Good news here.   Success in business (or in sports) is mostly about doing easy things.   Self-discipline is almost entirely about doing easy things but doing them consistently.   Interestingly, most athletes and entrepreneurs don’t do these easy things (bad news for them, good news for you)!   Most don’t learn what these key components are, and many of those who do learn, don’t commit to maintaining the mental toughness, discipline, and patience required to follow the routines necessary to blow away their competition.    If you do, you will. I’m sure you know about the wealth, job-creation, and many other rewards that success in business can bring.

I can guarantee you every one of the players in last night’s MLB All Star Game follow and implement each and every one of the ingredients I’ve listed in this article.   The All-star players came in all shapes and sizes from a very diverse assortment of countries.  Many came from very poor families, but their discipline and consistency has rewarded them handsomely.  The average annual salary of the 4 dozen players at last night’s game exceeded 20 million dollars, and many of them have long term contracts and a net worth exceeding $200 million.

I’m sure you know about the wealth, job-creation, and many other rewards that success in business can bring.

There are many more parallels between successful athletic teams and business teams I can share, but we’ll hold those for another day.   If you start with the ones I’ve listed, you’ll have a huge advantage.

If you’d like to share your own, please comment or email me.  I’d love to hear from you. 

Hope this helps and cheers to your future success! 

Joe

Copyright © Joe Zente 2022. All Rights Reserved. 

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