A Recession-Proof Sales Pipeline

After every big party, there is often a hangover.  At least twice each year, many Salespeople, Sales Managers and Business Owners find themselves on the headache side of vacations.  In September, they return from a summer of sun and fun, only to learn that their pipeline from June isn’t going to cut it.  They must start filling it from scratch.  In January, they return from the holidays, only to learn that their November pipeline was deficient and the filling process must begin again. 

This pattern is so common that it has become boring.  During good economic times, managing this pipeline roller coaster can be costly.  During tough economic times, managing this way can spell disaster.

Why do we let this happen?  What about urgency?  Lack of urgency prior to vacation is why the opportunities are still in the pipeline instead of closed, and the elapsed time since then may have been enough for your prospects to forget about their compelling reasons for wanting your help in the first place.  We know this phenomenon as The Law of Diminishing Pain.

What can you do about a measly and inconsistent pipeline?  First and foremost, RAISE YOUR EXPECTATIONS and COMMIT to fixing things for the near term and long haul.   Get on the phone now, call former and current clients and learn what they’re struggling with today.  While you’re at it, get some referrals or introductions.  Plan your next 3 prospecting events, set dates in stone for the next few months and take immediate proactive action to fill the top of your funnel.  Finally, commit to refuse to accept mediocrity and to upgrading your sales organization for good.

Today’s activities are your leading indicator for tomorrow’s results.  Take control of your destiny by developing a right-sized pipeline.  What is a right sized pipeline?  It is a funnel that is the correct size and shape to withstand any external or economic force.   It requires contact definition.  Here is a guide: 

Suspects (obtained an initial appointment)
Prospects (have need, pain, compelling reason to buy, you are differentiated)
Qualified  (you meet their criteria and they meet yours)
Closable (indicated they will buy)

As an example, John Q. Salespro calculates that 3 closed sales per month are required to achieve his goals.  If John closes 60% of his closable opportunities a right sized pipeline would have 5 at the closable stage.  If half of his prospects don’t make it to closable, he might need 7 qualified and 10 prospects.  If half of his suspects don’t convert to prospects, 20 suspects are required.  So John needs a minimum of 42 opportunities in his pipeline at all times (even during vacation)

Now it’s your turn. Using the criteria above, complete the 3rd and 4th columns.

Is your actual much better than your desired?  If so, congratulations.  You are prepared to start 2009 with a bang.

Is your actual as good as desired?  If so, congratulations. You’ll probably outpace your competitors.

Are you short of where you need to be, or do you need help figuring out how to create a right sized pipeline?    Email me and I’ll try to help you get you where you need to be.

© Copyright 2008 Joe Zente

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As sobering economic news continues to permeate people’s airwaves and 401Ks, I receive dozens of calls from business owners about the increasing number of stalls they are hearing from their sales prospects and salespeople. 

Forecasts continue to be pushed out and people are wondering how to get clients to “pull the trigger” on pending projects.  Many are having a tough time closing business in the face of “wait and see” attitudes.

As a business owner, this economic climate makes it even more imperative to manage attitudes and paradigms (both your own and those of your salespeople).  In the face of various delays, spending “freezes”, discount requests, cancelled appointments, and other forms of increased resistance, it is essential to keep mindsets within the Circle of Influence and outside of the Circle of Concern.

As people get whipped up inside their Circle of Concern, it will not take long for your weaker players to believe all the “bad news”.  In the face of externals forces and chatter, they become demoralized and expect to fail.  You cannot allow this to happen.  Make every discussion you have with your salespeople positive.  Discuss only those things that they can control.  Also, find something to celebrate inside each situation.  Can the economy be better?  Sure.  However, business is still being conducted.   Even companies who are proclaiming project delays or spending freezes are still making purchases.  Whether inside a company, an industry, a country or an entire global economy, there is a Bull Market inside every Bear Market.  The job of a great leader and salesperson is to find it and seize the opportunity.

Some of the things your salespeople are listening to are situations that cannot be controlled or addressed, but most of the things they hear absolutely can be.  Superior salespeople already know this.  Encourage all your salespeople to listen more actively.   How much of what they are hearing are simply first-line excuses or pre-programmed objections, something prospects hope salespeople will buy into so they can get leverage?  What percentage of your prospects are simply bluffing?  How many of those objections, stalls and put-offs can be overcome with better strategies, better sales management and a more effective sales process?   How many of your salespeople are REALLY equipped to sell in an economy as difficult as this one?

It is easy to tell your salespeople what you need them to do and then fall into the trap of  hoping for the best.  Unfortunately, hope is not a strategy.  The fact is the great majority of salespeople simply not capable of doing more than they’ve done before in the face of tougher competition and resistance, without some fairly dramatic change.   So what needs to be changed?  You can learn by assessing your sales force.  There are great tools available to diagnose things and let you know exactly what needs to be done to fix it.

© Copyright 2009 Joe Zente

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Most Americans share a concern over where the economy is headed.   However, operating from a perspective of CONCERN will not place a business into a position of power.  Conversely, operating from a perspective of INFLUENCE can turn an uncertain economy into extremely opportunistic times.  While many spend time worrying, those CEOs and sales executives who plan and choose wisely stand to prosper greatly.  If sales at your company seem to be stalling, what should you do to pump up revenues?  One choice is to hunker down, succumb to economic forces and hope for the best.  Another approach is to ask and address some empowering questions…

• Should I dig deep into our pipeline to see what is forthcoming?
• Is my forecast real?
• Are there hidden opportunities with my existing clients?
• Should I provide some additional incentives?
• Am I effectively holding my team accountable for activities and results?
• Am I tolerating under-achievers?   If so, what actions can I take today?
• Should I hire new people to bring new life and to the organization?
• Should I perform more coaching and training?
• Should I go out and close opportunities myself?
•  Should I go on calls with my salespeople to help close?
•  Should I create a tactical plan to create urgency?
•  What can I do to improve motivation?
•  Is my sales manager doing an effective job of coaching and developing?
•  Is my sales manager effectively holding the team accountable?
•  Are expectations clear?
•  Are rewards and consequences clear?
•  Should I offer customer incentives or run promotions on slow moving items?
•  Should I evaluate the sales force to learn for sure why things aren’t better?

In a slowing economy, it is vital to carefully manage the bottom line, but it is silly to ignore your top line.  There are some things you can’t control, there are many things you CAN control.  Focus your organizational energy in areas that you do have influence, instead of worrying about areas that you have none. 

What will you do next???

© Copyright 2009 Joe Zente

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SALES PERFORMANCE CHECKLIST

This is third in the series of several articles outlining how to grow your sales in the face of a turbulent economy. 

A World Class Sales Organization requires effective Sales Management to drive the performance of everyone in the sales force.  There are different components of sales performance management that must be looked at holistically. They include:

1.    Align the objectives, initiatives, size, structure, and quotas of the sales force and the goals, opportunities, and quotas of the salespeople.
2.    Measure sales force and salesperson performance against the sales force objectives and the salesperson goals and quotas.
3.    Reward salespeople for performance by linking the achievement of goals and quotas, demonstration of competencies and cultural values, etc., to compensation.
4.    Report sales force and salesperson performance to help people understand what they need to do to improve.
5.   Analyze execution of sales strategy to determine needed modifications to the strategy, tactics, personnel, budgets, and other aspects of managing the sales force.

Absent the context for measurement in the form of objectives and goals, absent the link between measurement and pay, and absent frequent, timely feedback on performance against the measures, sales leadership has no way to effectively and efficiently drive the right selling behaviors.

If you are interested in further detail or have any questions at all about how to Upgrade Your Sales today, please feel free to contact us at 512-331-1822

More to come…

© Copyright 2009 Joe Zente

RECRUITING AND HIRING CHECKLIST:

This is the second in the series of several articles outlining how to grow your sales in the face of a turbulent economy. 

An uncertain economy provides huge opportunity to Strengthen Sales for the savvy entrepreneur.  Superstar salespeople are never abundant, but as organizations change strategy trying to adapt to external pressures, some forget to take care of their biggest result producers, leaving their Sales Superstars vulnerable and willing to seek stronger companies.  Here is a Top Ten List to Upgrade Sales by attracting the best of the best Salespeople.

• Your patience - you must wait for the right candidate.  Accept only over-achievers. Not hiring is always better than acquiring average, mediocre salespeople.

• The frequency of your reposts - the life of an internet posting is 3 days. You must repost at least weekly.  It is vital to start with a he candidate pool.

• The target cities for your positions - if you’re looking for someone in the Southeast, post it for Tampa this week, Atlanta next week, Miami the following week, etc.

• The headline for your ad - It must have ’sales’ in the title but beyond that, change it each time you repost it so that it doesn’t look like candidates are seeing the same opportunity each week.

• The industry classification for your opportunity - select “sales” one week and your actual industry the next.

• Utilize additional job sites. If you are using Monster (and using it effectively), try SalesLadder, Careerbuilder, Craigslist, LinkedIn, and a well-used local job site.

• Get referrals from your salespeople, vendors, customers and friends - but make sure these candidates go through the same process as those who apply online.

• Consider a recruiter to locate candidates - but make them go through the same process, too.

• Make sure your ad describes the candidate’s necessary experiences and not the job, opportunity and company.

• Make sure there is nothing in your ad that can disinterest a candidate.

More to come…

© Copyright 2009 Joe Zente