evolve

Differentiating in the Sales Process: The Key to Boosting Bottom Line

By soshaughnessey

The roles of salespeople, sales managers, and small business CEOs are ever-evolving. A common problem faced is increasing revenue and productivity in sales processes. This goal is common for all, from individual salespeople striving to provide for their families to CEOs seeking to boost their company’s bottom line. The key to achieving this lies in understanding the dynamic nature of the sales environment and leveraging it effectively.

A significant part of the sales process revolves around the buyer’s perception of a product or service as a commodity. This misclassification is usually caused by insufficient differentiation in the early stages of the sales process. Differentiation is crucial in any sales process, regardless of the industry or scenario. Creating enough differentiation can be the difference between closing a deal at a discounted rate or the desired price.

Salespeople are experts in their field, whether selling a unique product specific to their company or a common commodity. They typically have a deeper understanding of what they are selling than their prospects have about what they are buying. This expertise should be leveraged to guide prospects through the buying process, adding value to the relationship and making the salesperson indispensable. This approach can reduce the emphasis on price and increase the potential for higher earnings.

Every business has unique values that differentiate it from its competitors. These unique values could be anything from their mission, vision, and values to their market commitment and guarantee. This is commonly called a Unique Value Proposition (UVP) or a Unique Sales Proposition (USP). While a UVP and a USP are similar, there is a slight difference in that the former is typically created by the Marketing department (or sometimes with the help of a business adviser such as an EOS implementer. The latter is directly targeted at salespeople and what a salesperson should say to their prospects and customers. Salespeople should understand what makes them different and communicate this effectively to their prospects. The ability to create separation and differentiate oneself is why people pay for a product or service.

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Unstick Your Sales: The Importance of Understanding the Buyer’s Journey

By soshaughnessey

It’s no secret that the dynamics between the buyer and the salesperson play a pivotal role in sealing the deal. The conversation often revolves around real sales issues, selling situations, and sales leadership.

Let’s delve into a scenario. You’re selling to a beer industry manufacturer, and their first question is about your price. This immediate focus on cost might make you think this may not be a good prospect. However, it’s crucial to remember that you can’t be disrespectful or dismissive. As salespeople, it’s our job to work with what we have.

In this situation, the salesperson has to conduct a discovery call and engage a subject matter expert to understand the prospect’s business process, adaptation, and conversion. Unfortunately, the interaction turned into a commodity exchange, with the buyer solely interested in the number of users and the price per user.

This scenario illustrates a common challenge in sales: the sales and buying processes often need to align. How your Customer Relationship Management (CRM) system is set up may not necessarily mirror how the buyer decides. Therefore, figuring out how to sell more effectively based on the buyer’s journey is crucial. Understanding the buyer is discussed in great detail in my book Eliminate Your Competition, which is available wherever you buy books.

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Overcoming Ghosting and Other Modern Sales Challenges: A Proactive Approach

By soshaughnessey

Many salespeople, sales managers, and company CEOs grapple with the unique problem of adapting their sales strategies to ever-changing market dynamics. This problem stems from an old-fashioned practice in which sales leaders tend to offer the same advice that made them successful when they were nascent salespeople. However, to remain competitive and productive, realizing that this traditional advice may no longer hold relevance in today’s sales world is crucial.

Let’s consider a sales leader who made his mark when the internet was still in its infancy, and email and mobile phones were not part of the sales process. If this sales leader continues to advise their team based on those past experiences, they will likely be setting them up for failure. Today, the sales world is no longer about physical gatekeepers but about navigating spam filters and phone blockers. The sales environment has evolved, and it’s time sales strategies do, too.

A typical issue salespeople face today is being ‘ghosted’ by potential clients. Ghosting, a relatively modern term, refers to the situation where the person you’re trying to reach is not returning your calls or emails. It’s a frustrating experience, but it also indicates a salesperson’s failure to be proactive and do the right things earlier in the sales cycle. Modern salespeople need to think ahead, plan better, and ensure they set up the next meeting before leaving the current one. This proactive approach can help prevent ghosting, keep the sales conversation going, and indicate progress.

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Two Tall Guys Talking Sales Podcast – From Zero to Sales Hero: Steve Caton’s Strategies for Small Business Growth – E95

By soshaughnessey

In this episode of Two Tall Guys Talking Sales, hosts Kevin Lawson and Sean O’Shaughnessey are joined by Steve Caton, CEO and Founder of Altezza Solutions. Steve shares his insights on how to build effective sales systems for emerging growth companies and provides a unique perspective on hiring part-time experienced salespeople. Dive into this episode to learn about the challenges and solutions in developing a robust sales strategy for small to mid-sized businesses.

Key Topics Discussed

Introduction to Steve Caton and Altezza Solutions (00:00:15)
- Steve discusses the inception of Altezza Solutions and his motivation behind starting the company.
Challenges of Hiring Salespeople for Emerging Companies (00:02:36)
- Steve talks about the common difficulties small companies face when hiring their first salesperson and offers an innovative part-time solution.
Importance of Sales Infrastructure (00:04:55)
- The hosts and Steve explore the critical components of a sales infrastructure necessary for a sales team to thrive.
Salesperson Integration and Training (00:11:44)
- Steve outlines a detailed onboarding process for new salespeople, emphasizing the first three months of integration.
Preparing for Business Exits (00:07:12)
- Discussion on how business owners can enhance their company’s valuation by building a self-sufficient sales team before planning an exit.

Key Quotes

Steve Caton: “The convincing piece wasn’t as hard as I thought it would be because it was almost like the reaction was, ‘Dang, I never even thought about that. That makes a ton of sense.’” (00:03:58)
Kevin Lawson: “Sales organizations that are evolved, mature, robust, they attract talent…let’s build the organization we all want to work for that attracts the right talent.” (00:10:15)
Sean O’Shaughnessey: “One of the challenges that I have heard from my business broker friends is that when the CEO is the salesperson…they really struggle with the selling of the company.” (00:06:53)

Summary

Don’t miss this enlightening episode with Steve Caton, where he shares invaluable advice on building a scalable sales infrastructure and the benefits of hiring part-time sales professionals. Whether you’re a business owner looking to strengthen your sales team or a sales professional seeking new strategies, this episode offers practical insights and actionable steps. Tune in next week for more in-depth discussions with Steve on creating successful sales organizations.

Mastering Sales in the Digital Age: A Case Study on Megan O’Hara

By soshaughnessey

The sales landscape constantly evolves, and the tools and techniques used to reach potential clients are continually refined and reimagined. One such innovative approach to sales and marketing is pioneered by salespeople and sales managers leveraging technology to add value to their client relationships and boost their sales figures.

Megan O’Hara, an executive solution specialist in Columbus, Ohio, is at the forefront of this movement. She has developed a unique method of reaching out to clients that adds value to their lives, increases her customer access, and builds her credibility. This method is simple yet impactful: Megan sends a weekly tech tip in a short video format every Monday.

This approach is designed to keep her name at the top of her clients’ minds. In a world where attention spans are increasingly limited and competition for customer attention is fierce, being the first person a client thinks of when they need a product or service is vital. By sending out these tech tips, Megan is providing a valuable service to her clients and ensuring that she remains at the forefront of their minds.

The success of this approach is evident in the response Megan has received from her clients. Many have contacted her after receiving her tech tips, expressing appreciation for her added value to their lives and initiating further business conversations. This is a clear testament to the power of this approach in building strong client relationships and driving sales.

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Designing Sales Compensation Plans That Drive Performance

By soshaughnessey

The success of any sales-driven organization in the business-to-business (B2B) space hinges on the sales team’s compensation plan. Over my four decades in B2B sales, I’ve observed that nothing influences the performance of sales personnel more directly than the design and implementation of their compensation plans. Compensation is not merely about rewarding sales achievements but crafting a strategy aligning individual salespeople’s goals with the company’s broader objectives.

A well-structured compensation plan acts as both a motivator and a guide. It compels sales teams not only to meet but exceed their targets, fostering an environment where continuous improvement is not just encouraged but becomes a natural byproduct of the system. For small business CEOs, understanding this dynamic is critical for sustaining and driving growth. Sales compensation is more than just a cost; it’s an investment in the company’s future.

In any sales environment, whether the market is brimming with potential or tightly contested, the compensation plan must be a living document that evolves in response to market conditions, company goals, and team performance. With this adaptability, companies can avoid stagnation or regression in their market positions. As businesses strive to scale and adapt, constructing a compensation plan that genuinely drives the right behaviors becomes all the more pertinent.

To delve deeper into this vital subject, CEOs should consider the immediate impacts of their compensation strategies and their long-term implications on sales culture and employee retention. For those ready to explore the intricacies of effective sales compensation and ensure their strategies are well-suited to their specific business contexts, I am here to lend my expertise. With extensive experience tailoring compensation plans to enhance sales productivity and company profitability, I invite you to reach out for further guidance on crafting a plan that meets and exceeds your strategic goals. You can set a time to talk to me using my link above Book Appointment With Sean.

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Maximizing Sales Team Productivity: The Importance of Effective Sales Meetings

By soshaughnessey

Numerous factors can contribute to a sales team’s success or failure. Two key aspects that are often overlooked yet hold immense importance are the structure and content of sales meetings. These gatherings are not just about reporting numbers or discussing targets. They are platforms for learning, sharing, and strategizing that can significantly boost a sales team’s performance.

One of the fundamental principles of a productive sales meeting is having a clear plan. This doesn’t mean having a rigid agenda without room for spontaneity. On the contrary, it’s about having a framework that guides the discussion and ensures that the meeting stays focused on the key topics at hand.

A common mistake many sales leaders make is covering too many topics in a single meeting. In an attempt to address every issue, they often skim the surface of each topic without delving deep into any. The result is a meeting lacking depth and tangible insights or solutions. Limiting the number of key topics to one or two per meeting is advisable to avoid this. This allows for a more in-depth discussion and a better understanding of the issues at hand.

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Maximizing Productivity in Sales Meetings: Key Principles and Best Practices

By soshaughnessey

Sales meetings are the lifeblood of any sales-driven organization, providing an essential forum for communication, collaboration, and strategy development. Yet, despite their significance, many salespeople, managers, and CEOs struggle to conduct productive and efficient meetings. This issue often stems from a lack of understanding of key meeting principles and best practices, particularly in the areas of time management, content planning, and participant engagement.

The adage “time is money” holds especially true in sales. Every minute counts, and wasted time equates to lost opportunities. This is why punctuality is of the utmost importance. A meeting that starts late or runs over time is disrespectful to participants and detrimental to the team’s overall productivity.

To avoid this pitfall, sales leaders should ensure they always arrive early to meetings and start them on time, without exception. This requires careful planning and preparation, as well as a commitment to respecting the time and schedules of others. The same principle applies to the end of the meeting. Sales leaders should always strive to conclude meetings on time, which requires careful meeting agenda management and a willingness to keep discussions focused and on track.

Content planning is another crucial aspect of effective meeting management. Just as a ship needs a compass to navigate the seas, a meeting needs an agenda to guide its proceedings. A well-crafted agenda provides a clear structure for the meeting and helps to keep discussions focused and productive. It also sets clear expectations for participants and helps to ensure that all relevant topics are covered.

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The Blueprint for Sales Efficiency: Crafting a Repeatable Sales Process

By soshaughnessey

Sales teams are at the forefront of driving revenue and fostering client relationships. However, without a structured approach, the efforts can become disjointed, leading to missed opportunities and inefficiencies. This is where the importance of having a documented sales process becomes undeniable. A well-defined sales process streamlines operations and ensures consistency and effectiveness in pursuing and managing sales opportunities.

The heart of effective sales management lies in understanding and implementing a repeatable sales process. This concept moves beyond the mere act of making sales; it’s about creating a blueprint for success that every team member can follow. Not only does this process need to be understood by all, but it must also be embedded within the team’s tools, particularly the CRM (Customer Relationship Management) system. By documenting each stage of the sales process in the CRM, businesses can provide their sales teams with a roadmap to follow, ensuring that no step is missed and that each action is purposeful.

Visibility and transparency within the sales process are crucial. A structured process allows leadership to monitor progress, identify bottlenecks, and understand where each deal stands at any given moment. This level of insight is invaluable for making informed decisions and for forecasting future revenue with greater accuracy.

A common debate among sales professionals and leaders is the sequencing of marketing and sales strategies. While both functions are integral to the success of a business, aligning them through a structured sales process ensures that efforts are complementary rather than siloed. This alignment is critical in mapping out the buyer’s journey, allowing sales and marketing to collaborate more effectively to convert leads into customers.

Another aspect often discussed is the balance between efficiency and effectiveness within the sales process. While efficiency focuses on performing sales activities, effectiveness is about doing the right things that lead to closing deals. The ultimate goal is to transition from being busy to strategically productive, ensuring every action moves a prospect closer to becoming a customer.

Resistance to adopting a structured sales process can sometimes come from within the sales team itself. Sales professionals, especially those accustomed to a high degree of autonomy, may view these processes as restrictive. However, a documented process aims not to stifle creativity but to ensure that creativity is channeled in a way that yields consistent results. By demonstrating how a structured approach can lead to more wins, sales teams can be guided to see the value in following a defined process.

A key component of a successful sales process is its ability to adapt and evolve based on customer needs and market dynamics. Sales teams should be empowered to follow the process and contribute insights that could lead to its refinement. This dynamic approach ensures that the sales process remains relevant and effective in the face of changing market conditions.

A documented sales process is not just a set of guidelines for the sales team to follow; it’s a strategic asset that can drive consistent sales success. By defining clear stages, aligning sales and marketing efforts, and focusing on effective actions, businesses can ensure that their sales teams are equipped to achieve their goals. As the sales landscape evolves, a robust, documented process will be a key differentiator for businesses looking to scale their sales operations.

Immediate actions that you can take based on this article:

1. Conduct a Sales Process Audit

Actionable Steps:

Gather Your Team: Assemble a meeting with your sales team, including representatives from sales management, marketing, and any other relevant departments. The goal is to create a cross-functional team that can provide diverse insights into the current sales process.
Review Current Processes: Describe your current sales process in detail. Identify each step your team takes from prospecting to closing a deal. Utilize your CRM data to trace the journey of several recent sales, noting any deviations from the standard process.
Identify Gaps and Bottlenecks: Look for stages in the sales process where deals tend to slow down or fall through. Discuss these areas with your team to understand the challenges and brainstorm potential solutions. Also, identify any steps that may be redundant or not add value to your sales efforts.
Benchmark Best Practices: Research industry standards and best practices for sales processes within your sector. This can provide a fresh perspective and highlight areas for improvement that you might not have considered.
Create an Action Plan: Based on your findings, outline a plan to refine your sales process. This might involve eliminating unnecessary steps, introducing new tools or strategies for efficiency, or redefining roles within the team to better support the sales process.

2. Integrate and Train on Your CRM

Actionable Steps:

CRM Audit: Evaluate your current use of your CRM system. Ensure that it accurately reflects your sales process stages and that all team members utilize it consistently. If your CRM is not fully aligned with your process, customize it to accurately mirror each step of your sales journey.
Comprehensive Training: Organize a training session focused on maximizing the use of the CRM in accordance with your sales process. This training should cover the technical aspects of using the CRM and how it fits into your overall sales strategy. Emphasize the importance of data entry and how it supports visibility, forecasting, and, ultimately, sales success.
Role-Specific Guidelines: Develop guidelines for CRM usage for different roles within your sales team. Tailor these guidelines to show how each team member contributes to the sales process through their interactions with the CRM.
Monitor and Adjust: Establish a routine for regularly reviewing CRM data to monitor your sales process and training effectiveness. Use this data to make informed decisions about further adjustments to both the CRM setup and your sales strategies.

Implementing these action items will enhance the efficiency of your sales process and ensure that your team is aligned and equipped to drive consistent sales success. By focusing on these foundational elements, you can build a robust framework that supports strategic growth and adaptability in the dynamic sales landscape.

The Art of Sales Compensation: Balancing Motivation and Goals

By soshaughnessey

Few topics in sales stir as much discussion and attention as compensation plans. The proper compensation structure can ignite a team’s performance, attract top talent, and drive a company toward its strategic goals. Conversely, a poorly conceived plan can lead to demotivation, high turnover, and missed targets. This discussion delves into the intricacies of designing compensation plans that motivate and align with a company’s broader objectives, offering insights for salespeople, sales managers, and CEOs alike.

Compensation in sales is not just about rewarding past successes; it’s a strategic tool that shapes future behavior. The fundamental premise is straightforward: sales professionals are motivated by earnings potential. Yet, applying this premise within compensation plans can be complex, nuanced, and sometimes contentious. It’s essential to balance base salary and variable compensation, ensuring sales representatives are adequately supported and incentivized to pursue new business aggressively.

The debate between 100% commission versus a guaranteed salary represents the spectrum of risk and reward in sales compensation. On one end, a 100% commission plan offers unlimited earning potential but lacks security, potentially leading to a high-stress culture and a short-term focus. It also makes it much more difficult to recruit younger sales superstars who may not have the financial security to afford a 100% commission compensation plan. Conversely, a guaranteed salary provides stability but might dampen the urgency and hunger that drive sales excellence. The consensus among seasoned sales leaders points to a balanced approach, often epitomized by a 50/50 split between base salary and variable compensation. This structure aims to provide a safety net while ensuring sales efforts directly impact earnings.

Understanding the market potential within a sales representative’s territory is critical when setting quotas and compensation. For larger teams, the ability to average performance across the group can help smooth out individual variances. However, in smaller teams or founder-led sales organizations, each member’s contribution is magnified, demanding a more nuanced approach to quota setting. Regardless of team size, aligning individual quotas with company objectives requires a blend of data analysis, market insight, and an appreciation for each territory’s unique challenges and opportunities.

Beyond the structure of compensation plans, the timing and criteria for payouts are pivotal. Monthly payouts can incentivize immediate results and help maintain momentum, whereas quarterly payouts may lead to strategic deal timing but can also introduce cash flow challenges for sales professionals. Moreover, compensation plans should evolve in tandem with a company’s strategic goals, ensuring that sales efforts are aligned with the organization’s overarching priorities.

Crafting effective sales compensation plans is both an art and a science. It demands a deep understanding of human motivation, a clear vision of company objectives, and a commitment to fairness and transparency. By carefully designing compensation structures that reward performance, foster team collaboration, and support long-term strategic goals, companies can create a sales culture that not only meets targets but exceeds them, driving growth and success in the competitive world of B2B sales.

Immediate Action Item 1: Evaluate and Adjust Your Compensation Structure

Assessment of Current Plans: Begin by thoroughly assessing your current sales compensation plan. This involves evaluating how well the existing structure supports your company’s strategic goals and motivates your sales team. Are your sales representatives meeting their targets? Do they feel motivated and supported? These questions can uncover valuable insights into the effectiveness of your compensation plan.

Balanced Compensation Review: Reflect on the balance between your organization’s base salary and variable compensation. Does it align with the 50/50 split recommended by seasoned sales leaders? If not, consider adjusting this balance to provide both security and incentive to your sales team. This balance is crucial for motivating your team while ensuring they are adequately supported.

Action Steps:

Survey your sales team to gather feedback on the current compensation plan.
Analyze sales performance data to identify patterns or areas for improvement.
Consult with HR or compensation specialists to explore potential adjustments.
Implement a pilot program for a new compensation structure in a small team or region to measure its impact before a company-wide rollout.

Immediate Action Item 2: Align Compensation with Strategic Goals and Territory Potential

Quota Setting and Territory Analysis: It’s essential to align individual quotas with the sales territory’s potential and the overarching company objectives. This alignment ensures that sales efforts are directed towards strategic goals, optimizing both individual and team performance.

Compensation Plan Evolution: Regularly review and update your compensation plans to align with your company’s strategic goals. This might mean adjusting the payout criteria, the balance between base and variable compensation, or the targets set for sales representatives.

Action Steps:

Conduct a territory analysis to ensure realistic quotas align with market potential.
Set up a quarterly review process for the compensation plan to ensure it remains aligned with company objectives and market conditions.
Engage sales managers in discussions about territory potential and strategic goals to ensure their input is considered in compensation planning.
Communicate changes in compensation plans clearly and effectively to the entire sales team, ensuring they understand how these changes benefit both them and the company.

Implementing these action items can lead to a more motivated sales team, better alignment with strategic goals, and improved sales performance. Remember, the key to successful sales compensation is not just in the design but in the ongoing evaluation and adjustment to meet the evolving needs of both your sales team and your company.