Sales fundamentals
Saturday, March 21, 2009 0:40
Look mom no hands!
New salespeople are always fretting over sales. They bother their more experienced counterparts with endless barrage of questions. How did you close your previous sale? What is the biggest ever deal that you have signed? How much money you made on your best month ever? All familiar questions for bloggers too, am I right?
FUNDAMENTALS
Industries and professions have different fundamentals - those things that are directly responsible for generating results either good or bad. In my line of sales, 60% of my time is spend with customers. Of the remaining 40% half I spend managing my accounts and half getting new leads.
My fundamentals are there with my clients. I have to dig out the pain that they are trying to cure with my product. I do this by directly asking what is their problem and then I try to solve it right there and then. Successful demonstration for a working solution is usually rewarded with a sale. To sign this seemingly easy deal I might have spent total of one week or more of my working time. New salesperson will only see the easy result and goes on to tell friends about piles of money there is to be made in industrial sales. Familiar situation for blogger too, am I right?
THE PROCESS
My focus can be neither planning nor doing my home work in order to get ready for the meeting with a prospect or a client. However without these activities I won’t generate enough sales over long-term. It is the understanding of this whole process that rakes in the sales. I cannot keep my eyes solely at target, I must also mind where I step (I’m not a hunter, I have no idea where this came from). Focus on those fundamentals and eventually you’ll do just fine.
Melody says:
March 21st, 2009 at 2:53 am
I used to see this a lot when I worked for an investment firm (not in sales) It seems like all the account execs cared about were your first few questions and not perfecting their approach for optimal success. And you’re right, I’m so tired of bloggers seemingly having the 1,2,3 steps and your rich approach as though it doesn’t happen with time and experimentation..and most of them haven’t even made that much!
sheesh..lol
-Mel
Melody’s last blog post..One code with SEO benefits
Jake Stone says:
March 21st, 2009 at 10:20 pm
Hello Melody and thank you for your comment. It is always nice to notice that somebody reads more than just the title.
Maybe we have to forgive some of the investment firm’s account executives haste as this industry is relatively straight-forward. Sure I don’t know what kind of investment firm it was, but nowadays many commission based investment product agents call themselves investment firms. Those are equals of telemarketing companies, wading through leads and trying to qualify them as fast as possible, when the promising prospect comes along the battle starts.
But yes, you are right that most of the sales is simply going after the money and taking shortcuts whenever possible. That keeps wheels turning, but there won’t be any shifting to higher gears.
Come to think of it, big part of sales is just about building trust. In a case of private banking company where I worked, we just pushed the reliability of our company and actual investment policies were on the back seat. It was only if prospect was especially interested about our investment strategies or tactics for her money that we put some time to figuring out how to invest money. Now look at the state of the world…
I checked your blog, good job. You seem to be quite an artist, I recommend that you show it even more visibly than you are currently doing. You should also put your photo to the homepage because you have nothing to hide, quite opposite. Your post about Investment therapy climb in Google was fascinating.
Melody says:
March 24th, 2009 at 12:21 pm
Thanks, Jake I certainly appreciate it–and I’ll take your advice, I’ve been wrestling about what to do with my site lately anyway..
I used to work for and with a hedge fund–and seeing the account executives from a marketing trainee’s (in the beginning) standpoint was incredibly frustrating. It was partly due to the fact of the kind of people that were hired (wanted the money of course but didn’t want to work for it). This annoyance had actually led me into my “former” company–because I felt like no one truly gave a damn about the prospects. They just wanted to imitate the characters of related movies and “(ABC) Always Be Closing.” Yeah, make money–of course, but establish trust and reliability in a time when people need it the most.
These same selfish people are the ones that sold Bernie Madoff’s so called “product”–(whatever it was supposed to be, who truly knows), to dozens of families and hardworking individuals..
Being in the financial industry just made me want to be as honest as possible, and as helpful as possible. It’s a dog eat dog world, and now those dogs are biting their tails after they’ve chewed up all our homes..lol
Looking forward to more interesting conversations
Melody’s last blog post..One code with SEO benefits
Jake Stone says:
March 24th, 2009 at 10:43 pm
Just do what you are already doing, but some more melody in it.
Big part of the problem is the compensation plan in financial industry. In general, people are paid so outrageous sums that small monetary incentives from producing new customers just won’t translate into significant extra compensation. In this situation, why anyone with personal preference to money would serve customers or prospects well?
Alternatively some companies have turned this approach upside down, salespeople are paid almost half of the customer’s lifetime value as a one-off payment. However, base salary is very low, this gravitates sales into flamboyant promises just to get the sale. This is also poor way to promote good customer service.
My best experience about private banking and wealth management comes from Taipei Citibank. There my family has a personal adviser to take care of investments. This person had the nerve to suggest shifting money from stocks to interest papers and promised to call when she has something solid to offer.
She saved a chunk of money and it didn’t turn into any direct income for her in a form of e.g. commission. That was impressive. Most people would have given that tired (memorized) advice about stock markets outperforming other investments in the long term and the need of just riding the turbulent out. During the turbulent and after it, salespeople are just selling like there would be no tomorrow.
Now dear Melody, what should we do about it or anything else for that matter? Any ideas?
Melody says:
March 25th, 2009 at 6:08 am
I love…”but some more melody in it”– you know me so well
What should we do….hmmmm…such a simple question, but is there truly a simple answer?
I do think that analytical thinking is needed in more salespeople.
If we were all handling our own investments we wouldn’t settle on something that isn’t financially healthy or promising so why should the salespeople who handle our money?
I think there would be a lot less negligence at least if salespeople cared for other people’s investments as though it was there own. For in reality, showing that kind of loyalty will only lead to more concrete referrals.
What are your ideas?
Melody’s last blog post..Twitter: Reciprocated Follows
Jake Stone says:
March 26th, 2009 at 11:58 pm
I really must take few hours to powder my nose and take a photo of this handsome devil people call Jake. Your photo immediately injects extra dose of personality into your comments.
Simple questions get simple answers. Actually any question will have a simple answer, because that’s how people transfer information.
Unfortunately I have noticed that those who truly care for their clients are not able to generate enough sales, they entangle themselves into the process and micro-manage and worry every detail. That sort of caring will grind you down, it is just so much easier to do our jobs.
My ideas, well I have a habit that I always carry xylitol chewing gum so that I can take good care of my teeth - rest will follow.
Melody says:
March 28th, 2009 at 10:58 am
Yes, staring there at your avatar–I have been wondering who this handsome devil people call Jake is that I’m talking to..:P
Melody’s last blog post..New Twitter Background