What is your sales process?

We all know that sales revenue affects the bottom line. Every income statement begins with sales revenue on the top line. If sales are strong, expense ratios fall and profits increase, right? Driving sales revenue is critical. I think we can all agree on this, can’t we?

So how do we drive sales revenue? The answer is a combination of things. We need to offer a solution to our customer’s problem. We need to ensure quality, consistency, and affordability as we deliver our solution. But that’s not enough. Someone needs to sell our solution to the customer. Without the sale, nothing else matters. The problem is that many companies lack a defined sales process. In a highly competitive recession, not having a defined sales process is a serious oversight.

As you read this, I’d like to challenge you to see how long it takes you to find your company’s documented sales process. If you’re in a sales role and it takes you longer than 5 minutes, that’s a problem. If your company’s sales process is not defined and written down, that’s an even bigger problem. In 2009, companies that can sell will win. Those that can’t will lose. It’s that simple. Having a clearly defined and documented sales process is not an option; it is a prerequisite for success.

So then the question becomes: “What’s the optimal sales process for us?” We should not assume that our current sales process is optimal. On the contrary, we should look at is as being highly suspect. We should seek to improve it. We should make sure that it’s consistent with our overall business strategy and fits our organizational culture. Furthermore, we should be able to measure the successfulness of each step in the process. All of these things matter.

In my experience, companies shy away from having a defined sales process for one reason: they don’t have a culture of accountability. A defined sales process that includes accountabilities for specific people is scary. Sometimes the owner is the sales person and doesn’t want to feel exposed. Whatever the reason, a culture of accountability is necessary to have an effective sales process. If there’s a lack of accountability in your company, don’t waste your time with creating processes. It will be an exercise in futility as nobody will follow them.

If you’re looking for a great selling system, I have a recommendation for you. For the past year, I’ve been learning the Sandler Selling System® and have found it to be an amazing experience. I highly recommend finding a local Sandler trainer and getting involved. It will be a life changing experience®.

A selling system or process is only one piece to the puzzle, but it’s an important one. The ball is in your court now. What are you going to do about it?

Phil

Solving Problems

Businesses will only survive if they are good at solving problems, not only for themselves but for their customers. Healthy businesses certainly are capable of solving internal problems. However, the healthiest businesses solve their customers’ problems. In fact, the more problems they can solve for their customers, the more valuable they will be. This will drive customer satisfaction and retention.

Solving internal problems is a management issue. It requires a skillful management team and effective management systems. It also requires a culture that strives to do so. Identifying internal problems and fixing them is no easy task.

Solving customer problems is a marketing issue. This is the core of marketing; to identify a problem and solve it. In this sense, a problem could also be called a need or a want. Regardless, the solution creates an opportunity. That’s the point.

So how do we discover, or uncover, a customer’s problem? The simplest way is to ask them. Take the out to lunch and have a conversation with them. Invite them to a lunch group discussion with other customers. Send them a survey. I prefer the face to face situation over the survey but an engineer or statistician would most likely prefer a survey with very large response pool. Its up to you and your team of marketers.

Sometimes customers don’t understand or see a problem where one exists. If you had to walk a mile with a water pitcher on your head to bring water from a well back to your house for drinking, would that be a problem? If this happened yesterday, you would most likely say that you had a problem and needed a solution. But, if this happened 4000 years ago, would you be trying to come up with a solution or would you just accept it for what it is? I’m guessing you’d just accept it and be worrying about some other problem.

Before the iPod was introduced, nobody was walking around complaining about their pathetic mp3 players and CD players. But, the simplicity, functionality, and design of the iPod blew away the competition. The problem was unstated because it was unknown. But it was very real. The problem was not uncovered until a better solution was found. The comparison of the old technology with the new created the problem. Nobody wanted to use the old technology any longer. The problem was that they didn’t have the new technology. Obviously, the problem wasn’t a problem until the iPod was rolled out.

What are your customer’s problems? Ask them. You might be surprised at what you’ll learn. On the other hand, don’t be surprised if they don’t outline their idea of the next iPod or running water. That is our job.

Phil

What About the Retirees?

I heard a retiree of General Motors interviewed this morning on the radio. He said, and I quote, “if they cut off our benefits and health care, we’re dead.”

Now, why would this man be saying these things? After all, GM’s CEO held a press conference last night, during which time he was asked about the prospect of cutting retiree benefits. His answer was that GM is no longer responsible for retiree benefits, as of 1/1/2010. The responsibility shifts to a UAW controlled fund. Apparently, this answer didn’t satisfy the man on the radio this morning.

Now let’s think about this. If the U.S. automakers are bankrupt, how is the UAW going to continue to pay for the thousands of retiree’s pensions and health care benefits?

In other words, the CEO’s answer was simply his way of saying “it’s not my problem any longer.”

During the same interview, the CEO stated that bankruptcy was a possibility; however, it was a measure of last resort.

Can anyone else see where this is going? Obviously, the man on the radio can!

So, after decades and decades of overpaying autoworkers, paying out overly generous pensions and benefits to retirees (do you remember when GM was called “Generous Motors”? I sure do), the game is finally up. The line worker who made 3 times what the average U.S. worker made, who lived in luxury, who planned to travel the world on their generous pension and bennies, is finally faced with the reality that the rest of the world faces: that we all need to take responsibility for ourselves; that we should not rely on future generations to support us.

Is anyone else bothered that this current generation seems to care more about themselves than their grandchildren? Am I the only one who gets it?

I grew up in a small business. Every man for himself. Guess what? My father has plently of cash for his retirement. So did my grandfather. So does my uncle. So does my other uncle. They made it. They saved it. They invested it. They prepared for their retirement.

I’m so sick of the bailouts and handouts that are just buring my children and grandchildren in debt. Where is the sense of personal responsibility? Where is the self-control? Where is the sense of doing the right thing for the future of the country? Why does this generation have to seek its own comfort first? I just don’t get it.

So what about the retirees? Will they all die, like the man on the radio warns. No, they will not. But, perhaps for the first time in their adult lives, they will have to take responsibility for themselves.

Phil

Humility

Great leaders are humble. In other words, they are not full of themselves. They are selfless, putting the needs of others before their own. They give credit to others. They don’t seek the praise of others. They not only pay lip service to this, but they live it.

They see their own weaknesses and insecurities. They surround themselves with people who fill in these areas, who make them stronger. They are not threatened by these people, however. They strive for teamwork and unity.

Unfortunately, humility is not an attribute that is held in esteem in our culture. Humility is equated to weakness. This could not be further from the truth. After all, humility requires strength and control. It requires perspective and purpose. It requires understanding and confidence.

I have worked for many people who were the opposite of humble. Quite simply put, they were obnoxious and full of themselves. They turned off everyone they came in contact with but they had no clue. They left a wake of destruction behind themselves. Their subordinates knew their places and paid lip service to their “great leadership” in their presence.

How about you? How humble are you? Is your perception matched by the perception of those who we know and trust? Have you asked these people? I recommend that you do, especially if you aspire to be a great leader!

Phil

Spring Training

Light snow covers the ground as I sip my coffee and look out the window. As some of you know, my home is in Farmington Hills, a suburb of Detroit. We’ve had another cold, snowy winter and we’re sick of it. But, there is some news this morning that is sure to take our minds off the current winter scene outside.

Spring training begins today. Our beloved Tigers are in Lakeland, FL to begin preparing for another baseball season!

Last season was a disappointment for us, of course. Too much hype and too few results. These guys need to get back to the old philosophy of “under-promise and over-deliver,” not the other way around.

The Tigers have the talent but there was a missing ingredient last year. If they can find it, they’ll be a contender.

In 6 weeks, the team will open the 2009 campaign in Toronto. The home opener is April 10 against Texas.

The ground hog (mole, rat, gopher, or whatever it is) tells us there are 6 more weeks of winter, so I supposed that will give the Comerica Park ground crew a day or so to prepare the field.

All I know is that the news of the Tigers opening their spring training camp puts a smile on my face. It is proof that what I’m looking at out my window is only temporary. Soon, it will be spring. And it cannot come soon enough!

Phil

Marketing the Spendulus Plan

The massive “spendulus” package is now working its way through committee to reconcile the Senate and House versions of the bill. Most observers expect the bill to pass, regardless of changes made in committee, resulting in the passing of the most sweeping liberal spending agenda and reorganization of priorities in the history of our country. As citizens of this country, we should be well aware of the details of this plan and the wider implications of it.

I don’t claim to be an expert, but I have been doing my best to keep one eye on this monstrosity and I have to say that I’m completely disgusted with the direction of our government. Most importantly, I cannot accept the fact that we are so selfish as to bury future generations in debt while we lavishly attempt to spend our way out of a recession.

In previous generations, our forefathers (and foremothers, I’m guessing) sacrificed for the sake of future generations. They lived with less. They worked harder. They accepted responsibility. I don’t see any of these things today. I see a fat, lazy, selfish generate, hell bent on putting themselves first, and I’m disgusted.

I see every body of government with their hands out like a bunch of schoolyard children waiting for a Popsicle on a hot day. I see every liberal cause who supported the Obama campaign positioned to have the coffers filled to the max, drooling on themselves and scrambling to figure out how they will ever be able to spend so much money. I see a massive redistribution of wealth, a governmental take-over of medical care, and the bailout out of bad ideas and bad investments.

I see elected leaders holding their noses while they vote for this bill. I see them trying to put some type of favorable spin on it. I see them dispensing fear.

I’m disgusted by it all. I hope you are as well.

Phil

Obama’s Leadership

As most of you know, I did not vote for Obama. But I support him as our elected leader. I really do. I even pray for him. I really do. He needs our support. However, he also needs to hear from us when he’s letting us down. We cannot simply sit on the sidelines when he does something we don’t agree with. After all, this is America, isn’t it?

Obama likes to talk. This, in my opinion, will get him into all sorts of trouble in the next 4 years. Saying one thing and doing the opposite is no way to lead a country. In fact, it is a hallmark of a poor leader. Unfortunately, much of Obama’s words don’t match his actions. They never really did, in fact, but facts apparently aren’t important to most Americans during a political campaign.

I long for a leader who knows who they are, who does what they say they’re going to do, who sees reality as the way it really is, and who has battle wounds to prove that they have what it takes to remain firm to their beliefs, even in the darkest hours. Obama is not this man.

Sure, he has inspired the nation. He says all the right things and he looks good saying them. But, his actions don’t match his rhetoric. He is not leading in the political process. We are as divided as ever. The economy continues to decline. And our enemies are most certainly preparing to take advantage of our inexperienced President, who likes to tell us what we want to hear and then do whatever is on his agenda.

So, what are we to do? We are to continue to support this man. We are to pray for him. And we are to be outspoken when he lets us down. This is our best strategy, in my opinion. After all, this is still America, isn’t it?

Phil

Proverbs 3:27-32

My continuing series on Proverbs:

27 Do not withhold good from those who deserve it,
when it is in your power to act.
28 Do not say to your neighbor,
“Come back later; I’ll give it tomorrow”—
when you now have it with you.
29 Do not plot harm against your neighbor,
who lives trustfully near you.
30 Do not accuse a man for no reason—
when he has done you no harm.
31 Do not envy a violent man
or choose any of his ways,
32 for the LORD detests a perverse man
but takes the upright into his confidence.
Verses 27-31 describe the modus operandi of a perverse man. He withholds good. He plots harm. He accuses falsely. He envies those who are violent. Unfortunately, this is also the modus operandi of many people, not only in the business world but everywhere. It was true thousands of years ago, when Proverbs were written, and it is true today.

The reason, of course, is that we live in a fallen world; a world full of sin and evil. Genesis 1 & 2 describes the world before the fall; a world without sin and evil. But this is not the world we live in. Genesis 3 describes the fall and the consequences of the fall. This is the world we live in.

However, in the midst of sin and evil, we can choose to live upright, as mentioned in verse 32. We do not have to succumb to the pressures of the world to conform to their ways. We can be different. But, we can’t do it on our own. Our strength is not sufficient to carry us. We can only do it with the power of God the Father, Jesus the Savior, and the Holy Spirit. The trinity (three in one), indwelling us, give us the strength and power.

If you don’t have this strength and power, I’d love to hear from you. If you’re feeling a little tug at your heart right now, send me an email or call me. We can chat. Your life depends on it.

Phil

The Hiring Funnel

I recently helped a client with recruiting a key person for their organization. It was an amazing experience and resulted in the hiring of someone who could not be better suited for the position. At the end of the process, my client and I could not stop smiling and high-fiving each other for a job well done. What was our secret? What did we do right?

To begin with, we did not have a candidate in mind. Many times, there is a candidate that is well known and simply needs to be won over. This was not the case. We were starting with nothing. We thoughtfully created a profile of the perfect person so that we’d recognize them when we saw them. This profile included required skills, years of experience, and some intangibles that we felt were critical.

We then developed a timeline. We decided on dates for advertising, interviewing, and the offer. We even selected a start date for our new person. This was before we ran the first ad. Then we began to execute.

We reviewed over 300 resumes. Of this amount, we found less than 20 that met the minimum qualifications (not a good ratio!). We then screened these candidates on the phone and disqualified several. From this group, we interviewed 13 candidates. All 13 were qualified and capable. More importantly, we were looking for the right fit. Of the 13, we selected 3 for a second interview. One person stood out from the rest- head and shoulders above the rest. This person begins today.

This process was time-consuming, grueling, and resulted in severe brain mush by the end of it, on my part, at least. However, it was very rewarding and resulted in an awesome new hire. This funnel process is nothing new, but many firms simply don’t take the time to go through it. I can tell you that it is well worth the effort, especially if you’re hiring for a critical position like we were.

Many business leaders have a saying: “people first.” In other words, hire the best people and you’ll be successful. I couldn’t agree more and think we did.

Phil

Impressed by Great Service

I’m always blown away when I receive great customer service, because it is so rare today. Believe it or not, I recently had an incredible experience at a car dealership. Unfortunately, it was not at a dealership for an American car company. Actually, I don’t recall that I’ve ever had a good experience at a GM, Ford, or Chrysler dealership, but that’s not the point of this blog post.

First of all, I have to tell you that I didn’t have an appointment. I just showed up out of the blue. As I approached the service bay doors, the doors opened automatically and I rolled into the service area. A smiling service rep invited me into his office. Within minutes, my car was being moved and I was enjoying my selection of fresh bagels, coffee, juice, bottled water, etc. I chose coffee, of course, and positioned myself in a comfortable leather chair, booted up my laptop, and connected to the wireless network. I had been offered a ride in their courtesy shuttle but I preferred to wait, as I had some work to do on-line and I’d be more productive staying put.

My car had suffered a broken stabilizer bar. I must have hit a pot hole and snapped the bar. They identified the part at another dealership across town and it was being driven over. I was happy to wait. When the part showed up, the part in the box was the wrong part! But, the service rep apologized and quickly arranged for a rental car.

By the end of the day, I was back in my car. The repair was done at no cost. While they had my car, they upgraded some type of software to improve performance. They vacuumed the carpet and washed the exterior. It looked brand new.

The next day, I received an email from the service manager. His email explained that their goal is to impress their guests with exceptional customer service. He asked me to call him immediately if any aspect of my visit was not exceptional. I was impressed. Jaguar has been recognized by J.D. Power as the #1 auto company for customer satisfaction in each of the last three years. Now I know why.

What I don’t understand is why every business can’t treat their customers like this. It’s so simple, yet so elusive. Maybe it’s just as well. If we were always being pampered, we’d get used to it and it wouldn’t be so special when it happens. On the other hand, I think I would enjoy it.

Phil