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Casual Articles - Sales Prospecting and a Targeted Selection Process
I’m sure you’ll find this interesting. While recently wrapping up a CEO search for a leading consumer catalog and web company, nearly all the candidates who made our client’s short list had the same personality. Interesting, yes! But not peculiar.The finalist candidates—four men and a woman—a talented mix of seasoned dm execs from across the country, were representing career backgrounds in a variety of product categories and company size.In fact, after 12 years of assessment testing hundreds of men and women—senior-level direct marketing candidates for positions as CEO, President—for leadership roles in Finance, Marketing, Merchandising, IT, Operations, I’ve noticed the same thing. Over 75% of these individuals have the same personality a
Bottom line, you’ll be leaving time and money on the table if you choose this Target strategy. We’ll revisit the Conversation-to-appointment KPI in a minute.
At the other end of the Target spectrum is the ‘Top-down’ strategy for securing a new Targeted business appointment. Let’s say that same telecommunications rep chose this approach in prospecting for new business. The first step in this process is ‘Homework’; some due
Salespeople differ from customer service people and other knowledge workers in a number of critical ways.Someone who has a sales personality is similar to athletes, to artists, to performers of all kinds. They prepare, and then they deliver.They recuperate, they prepare, and they deliver again.When they’re “on,” they have to turn it completely on, and hold nothing back.Sellers, like basketball star Kobe Bryant, are also streaky.The other night Kobe scored 84 points, coming in second behind all-time NBA great, Wilt Chamberlain. If you remember back to the beginning of the season, Kobe was cold, and he under-performed.Any Laker fan would say, so what, he’s hot now, and it’s all that matters!Absolutely!A
But here’s what’s important to understand. Your Targeted Selection Process is a separate component of your sales strategy. It stands by itself. But it is directly allied with your other Sales performance indicators. The degree of success you’ll have in the business of sales is proportional to raising and maintaining these success indicators to a level more proficient than the industry norm. And the direction you decide to travel is strategic to the outcome. I call it the ‘Playing Field’. Because that’s where it all starts… it’s where the game begins.
Here’s what I mean. There are basically (2) strategies in picking your ‘Playing Field’; a ‘Bottom-up’ approach or a ‘Top-down’ approach. The following is an example of a Bottom-up approach. A Telecommunications rep initiates a telephone call into a company and asks the question “Who handles your telecommunications needs?” Guess where they are sent? If you said ‘office manager’ you guessed right. If you said ‘Head Janitor’ you weren’t far off.
Is there anything ‘wrong’ with that? Not really; it’s legal and a lot of folks out there do it. But let’s think through this option as a ‘Business person’ would. Let’s study it as it relates to our sales process and individual Key Performance Indicators (KPI); Conversation-to-appointment ratio, 1st appointment to Proposal ratio, Closing ratio, sales cycle and average revenue per sale. Because these success indicators are gateways that directly affect the outcome of a sales process.
Do your KPI’s go up or down with a bottom-up approach? Historically, a bottom-up approach promotes a:
1. 1st appointment to Proposal ratio to decrease 2. Closing ratio to decrease 3. Sales cycle to increase 4. Average revenue per sale to decrease
Bottom line, you’ll be leaving time and money on the table if you choose this Target strategy. We’ll revisit the Conversation-to-appointment KPI in a minute.
At the other end of the Target spectrum is the ‘Top-down’ strategy for securing a new Targeted business appointment. Let’s say that same telecommunications rep chose this approach in prospecting for new business. The first step in this process is ‘Homework’; some due
The headlines recently have focused on how the replacement of President George W. Bush’s chief of staff may serve to salvage the President’s second term. His new chief of staff has set an agenda, made announcements and started lopping off heads, so to speak, in a very public way. This is not too different from what has happened at corporations during turnarounds. Whether looking at financial institutions, industrial companies, airlines, consumer goods companies or telecommunications giants, the visible dynamics are they same. But are they effective? Why are the characteristics of an effective turnaround process?Identify the problem. Whether it is the White House or Burger King, measures of success should already be in place. If not, the extan
But here’s what’s important to understand. Your Targeted Selection Process is a separate component of your sales strategy. It stands by itself. But it is directly allied with your other Sales performance indicators. The degree of success you’ll have in the business of sales is proportional to raising and maintaining these success indicators to a level more proficient than the industry norm. And the direction you decide to travel is strategic to the outcome. I call it the ‘Playing Field’. Because that’s where it all starts… it’s where the game begins.
Here’s what I mean. There are basically (2) strategies in picking your ‘Playing Field’; a ‘Bottom-up’ approach or a ‘Top-down’ approach. The following is an example of a Bottom-up approach. A Telecommunications rep initiates a telephone call into a company and asks the question “Who handles your telecommunications needs?” Guess where they are sent? If you said ‘office manager’ you guessed right. If you said ‘Head Janitor’ you weren’t far off.
Is there anything ‘wrong’ with that? Not really; it’s legal and a lot of folks out there do it. But let’s think through this option as a ‘Business person’ would. Let’s study it as it relates to our sales process and individual Key Performance Indicators (KPI); Conversation-to-appointment ratio, 1st appointment to Proposal ratio, Closing ratio, sales cycle and average revenue per sale. Because these success indicators are gateways that directly affect the outcome of a sales process.
Do your KPI’s go up or down with a bottom-up approach? Historically, a bottom-up approach promotes a:
1. 1st appointment to Proposal ratio to decrease 2. Closing ratio to decrease 3. Sales cycle to increase 4. Average revenue per sale to decrease
Bottom line, you’ll be leaving time and money on the table if you choose this Target strategy. We’ll revisit the Conversation-to-appointment KPI in a minute.
At the other end of the Target spectrum is the ‘Top-down’ strategy for securing a new Targeted business appointment. Let’s say that same telecommunications rep chose this approach in prospecting for new business. The first step in this process is ‘Homework’; some due
The global trade market demonstrated signs of stability after the police authorities intercepted the bombing threats on airplanes traveling between America and the United Kingdom. American investors, which supports Asian commerce, disregarded concerns after global trade analysts stated that the impact of the recent crisis will not last long. However, security measures are still being applied on both local and foreign flights on airlines based on the US.The said bomb scare, which was planned to destabilize the global trade, barely affected the Financial Times Stock Exchange Authority (FTSE) in Britain with the British Airways stocks mirroring the wealth of FTSE 100 index. The airline company will soon resume their flights back and forth London Hea
Here’s what I mean. There are basically (2) strategies in picking your ‘Playing Field’; a ‘Bottom-up’ approach or a ‘Top-down’ approach. The following is an example of a Bottom-up approach. A Telecommunications rep initiates a telephone call into a company and asks the question “Who handles your telecommunications needs?” Guess where they are sent? If you said ‘office manager’ you guessed right. If you said ‘Head Janitor’ you weren’t far off.
Is there anything ‘wrong’ with that? Not really; it’s legal and a lot of folks out there do it. But let’s think through this option as a ‘Business person’ would. Let’s study it as it relates to our sales process and individual Key Performance Indicators (KPI); Conversation-to-appointment ratio, 1st appointment to Proposal ratio, Closing ratio, sales cycle and average revenue per sale. Because these success indicators are gateways that directly affect the outcome of a sales process.
Do your KPI’s go up or down with a bottom-up approach? Historically, a bottom-up approach promotes a:
1. 1st appointment to Proposal ratio to decrease 2. Closing ratio to decrease 3. Sales cycle to increase 4. Average revenue per sale to decrease
Bottom line, you’ll be leaving time and money on the table if you choose this Target strategy. We’ll revisit the Conversation-to-appointment KPI in a minute.
At the other end of the Target spectrum is the ‘Top-down’ strategy for securing a new Targeted business appointment. Let’s say that same telecommunications rep chose this approach in prospecting for new business. The first step in this process is ‘Homework’; some due
As the species whose thinking ability supposedly separates us from the animals, we really don't spend much of our life reasoning. Most of the time our minds get stuck on cruise control. Thinking takes up too much time and requires too much energy. Imagine having to think about every decision we make. It wouldn't leave us much time to accomplish anything else, would it? Most of us have a systematic way of looking at the world. When this mode is operating, our minds are perfectly primed to automatically respond to persuasion triggers. I call these triggers the Laws of Persuasion. The Laws of Persuasion operate below our conscious thoughts. When employed properly, your prospects don't even realize you're using them. On the other hand,
Do your KPI’s go up or down with a bottom-up approach? Historically, a bottom-up approach promotes a:
1. 1st appointment to Proposal ratio to decrease 2. Closing ratio to decrease 3. Sales cycle to increase 4. Average revenue per sale to decrease
Bottom line, you’ll be leaving time and money on the table if you choose this Target strategy. We’ll revisit the Conversation-to-appointment KPI in a minute.
At the other end of the Target spectrum is the ‘Top-down’ strategy for securing a new Targeted business appointment. Let’s say that same telecommunications rep chose this approach in prospecting for new business. The first step in this process is ‘Homework’; some due
It’s more than handing out promotional polo shirts. Many companies have discovered the value of employee incentive programs. Employees and staff who feel appreciated and recognized are more loyal and more hardworking. They produce higher quality efforts and can be your best ambassadors and publicity. Your employees will recognize a half-hearted incentive program, though. In order to be effective, though, an employee incentive program must meet three criteria: It must reward real accomplishments. It must be applied consistently. It must offer tangible rewards as well as recognition. Those “tangible rewards” can often take the form of “company swag” – hats, t-shirts and polo shirts embroidered or printed with
Bottom line, you’ll be leaving time and money on the table if you choose this Target strategy. We’ll revisit the Conversation-to-appointment KPI in a minute.
At the other end of the Target spectrum is the ‘Top-down’ strategy for securing a new Targeted business appointment. Let’s say that same telecommunications rep chose this approach in prospecting for new business. The first step in this process is ‘Homework’; some due diligence prior to picking up the telephone.
Activities like:
• Gathering a list of appropriate industries • Assigning the highest appropriate level of contact to each account; by company size and industry • Researching contact name for each appropriate title and account • Researching what each business does to exist and prosper
That sounds like a bit of work. But what historically happens with a ‘Top-down’ approach in line with sales performance KPI’s?
1. 1st appointment to Proposal ratio increases 2. Closing ratio increases 3. Sales cycle decreases 4. Average revenue per sale increases
OK. We agree that’s a no-brainer. So it all comes down to the 1st and foremost sales performance indicator, your Conversation-to-appointment ratio. That’s simply how many times you conduct a conversation with a target prospect versus how many times you achieve one. And the national average on that KPI is between 4% and 18%; Top-down or Bottom up approach. So it takes 10, 12 or 20 conversations to achieve 1 or 2 appointments. And that’s a lot of work. In fact, JDH Group studies show sales individuals spend an average of 50% of their time on prospecting activities, or about 22 hours per week.
That leads a sensible person to the conclusion that one needs to focus on efficiencies in Prospecting. And to secure those ‘Competencies’ one must develop a communication ‘system’ in line with your business solutions, your ‘Top-down’ Prospect perceptions and your competitive influences. Not from a product/service angle, that’s ‘selling’ over the telephone. But a communications methodology that lends itself to ‘Business acumen’; insight into what is strategic to your target prospect’s business objectives, what pains they are facing due to recent events or what changes are on the horizon that may effect their current status quo.
Next is figuring out how to communicate to your ‘Top-down’ target the prospective benefits of your product/service in terms relevant to their financial Key Performance Indicators; line items like ROI, IRR and Payback Period. Those are success indicators that organizations rely on to measure progress toward their organizational goals. It’s their ‘Scorecard’.
So lesson number one. When you’re addressing a target level th
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