Sales Process | A Sales Guy

Account Governance — Account Vision

This is part two of an 8 part series on account governance.

At the center of account governance is the account vision. Unlike hunting and territory management, the success or failure of an account manager is dependent on their ability to grow their account. In some respects account management is similar to running a small business. Success expands well beyond the transactional nature of the sale. The account has to be developed, not just sold to. Selling to an established account as a sales strategy is short sighted. It results in loosely coupled opportunities, and a reactionary environment where a competitor can quickly take hold. Developing an account requires a deliberate and clinical approach that includes planning, measuring, cadence, strategy, vision and more.

At the heart of account governance is the vision for the account. The account vision acts as the compass for your entire strategy and plan. It’s what you are striving for. It is what you want to develop the account into.

To build a good account vision start by taking a good solid look at the account. Where are they today? Where do you and your company fit into their overall business strategy? What is the competition doing? How does your company compete currently? What is your current percentage of wallet share? How strategic is your product to their overall business? How many touch-points are there between the two companies? How easy is it to do business together? How often does the account call you for information? Are you seen as a partner or as a vendor? Ask as many questions as possible. Assess the account in terms of where you are today. After you’ve compiled all the information ask; where could the account go? What could you develop the account into; that would keep the competition out for years, that would increase sales, that would grow wallet share, that would make it easier to do business together, that would make this account a productive, reliable generator of revenue for your company? Picture it, it’s your vision.

The account vision is what you want to develop the account into.

The vision is less about today and more about tomorrow. It’s a desired end state.

A good vision is easy to explain. A good vision takes into consideration your customers needs as much as your companies. To do 100 million dollars a year out of XYZ account is not a vision. A vision to be XYZ’s first choice for all enterprise communication decisions and to be embedded into XYZ’s 5 year IT strategy, is a stronger vision.

If your sales role is to manage an account, build a vision. Paint a picture of where you want to take the account. Write it down. Take multiple shots at it. Get your customers feedback. If they don’t like it, you’ll never make it. Once you have it, put it in a prominent place. During every account review make sure it is repeated and clear to everyone. Everything you do from here should support getting you to your vision.

May 25, 2010 | Filed under: Sales Process,The Chase | View Comments |

Account Governance — Part 1

I’m going to do a series this week. It will be my first. I’m looking forward to it.

I’ve chosen to do it on account governance, the underlying process to account management. I haven’t blogged much on account management. It’s a prominent part of the selling world, that I think doesn’t get enough airtime. So this week this blog will be dedicated to account management.

Not everyone has a territory with 100′s of potential customers. Not everyone makes cold calls. Some sales people have only 1, 2, or just 3 accounts in which they have to make their living. These sales people, traditionally known as farmers make their living off of the same account year after year. They need to understand the politics. They need to understand the personalities, the buyers and the detractors. They need to work with their customer, with joint goals, commitments and efforts. They need a comprehensive process to make it happen. Managing a single account is very different than prospecting a territory, and hunting for new business.

In my opinion, the only way to effectively manage an account is through a robust governance plan.

Each day this week I will address a specific component of the governance plan. I will also share some of the documents, and processes I use in my organizations to execute on our account governance.

In the simplest terms, account governance is the holistic approach to managing an account in order to maximize the relationship, revenue, and the customers business objectives.

Account governance consists of;

-The account vision, the long-term view outlying where you want to take the account and why
-The relationships and how you manage them
-The account plans, detailed steps and strategies outlining how you will execute on the account
-The cadence, the regularly structured meetings and events used to track efforts
-Account strategy, the angle and approach you are taking to drive success
-Reporting, creating the metrics necessary to track progress
-Selling tools, the underlying tools you use to more efficiently sell

The most critical component of account governance is the ability to integrate all of the components seamlessly.

Tomorrow, I will start with the Account Vision. Everything comes out of that. Like anything else. If you don’t know where you are going, you’ll never get there.

I hope you enjoy. If you have anything to add or have thoughts you’d like to share, jump in on the comments. My hope is this series sparks some good conversation and we all learn a little more about account management.

It should be fun.

May 24, 2010 | Filed under: Sales Process,The Chase | View Comments |

Fixing The Sales Team

Sales teams need to be fixed; they stop performing, the market changes, the company launches new products, the team becomes complacent, the organization grows too fast and becomes beauracratic. There are a number of reasons why sales organizations need to be fixed.

If the sales team is broken, there are two places to look to fix it, the environment or the people. How to determine where the problem lies traditionally escapes sales leaders. Sales management culture almost always makes it a people problem.

The three areas were sales organizations break are the systems and processes, the people, and the activities the team focuses on.

If you want to fix your team assess what is hapening in these areas.

Systems and processes is a situation problem, not a people problem. People are people problems and the activities the people focus on could be either.

To get it right evaluate all three.

Does the CRM System make it easy to manage an account? Are good training and educational systems in place? Does the sales process enable sales? Are the systems the problem?

Are the right people in place? Do they have the skills necessary for the job? Is there a talent gap? Is the sales team hunters when it needs to be farmers? Does the team have the right people on it?

Is the team doing what it’s supposed to? Is it making enough cold calls? Is it spending more time doing admin work than selling. Is the team partnering or playing lone wolf? Is the team engaging in the right activities?

To fix a sales team the right levers have to be pulled. Evaluate each of the areas independently. Sometimes it’s a people problem,sometimes it’s a behavior problem, sometimes it’s a situation problem. Sales leaders need to know which it is. Not knowing makes it a people problem.

March 5, 2010 | Filed under: Business Performance,Sales Leadership,Sales Process | View Comments |

Paint by Numbers

Sales can’t be commoditized. Sales isn’t paint by the number. There isn’t a one size fits all.

Sales is a giant “if then” statement.

Every sales is a series of questions. Each question taking you down a different road, until you come to the end; with a sale or with out a sale.

Every customer has different needs. Every customer has a different environment. Every customer has different objectives.

Creating one size fits all in anything leaves out the unique, those with special circumstances. In sales; everything is special circumstances. Sales lives in this space, thriving on the uniqueness.

Sales is not a paint by numbers profession. It’s “if then.”

“If this, then this” tells you what to do in a particular, specific situation and that is exactly what your customer is looking for.

February 2, 2010 | Filed under: Business Performance,Sales Leadership,Sales Process | View Comments |

I Fricking Love The Sales Process

I’m sure many of you have figured out, I’m not your typical process guy. I’m not a big fan of process, but, there are a few places where process works. The sales cycle is one of them.

David Brock thew out this sales process post last week, But We Have A Sales Process . . . It’s a good post on why a Sales Process is necesssary. I agree with much of it. His post went and got Anthony Iannariono all fired up. In response, Anthony posted this: Sales Process Problems: Turn by Turn Guidance is Unavailable. I agree with much of what he says too. They are both good posts.

After all this Sales Process talk, I had to jump in. I love fricking sales processes. This is where I agree with David. They work. BUT, I don’t measure activity and this is where I agree with Anthony. Measuring activity does nothing but constrict the sales team.

I measure results.

Every sales cycle has a series of customer events or triggers that almost always happen before the deal closes. In almost all cases they happen in a linear fashion, ie one happens before the next one happens. These events are customer driven not vendor driven. They are based on how the customer buys. They could be the combination of signing of an NDA, the approval of budget, a pilot, the creation of a evaluation team, a solution assessment and contract signing (a six stage sales process). It could simply be a face to face meeting, a trial and approval from the CEO (a three stage sales process). What it is doesn’t matter. Knowing what it is matters.

Most sales processes focus internally and are activity based. They don’t work. Activity management doesn’t guarantee results. A sales process needs to map to the decision process of your customers. How does your customer buy? What steps do they take before they agree to buy? What support must be had? What processes must be followed? Who’s approvals must be gained? What must happen before money goes out the door? Figure out these questions and you have your sales process.

Every company has a process for buying new stuff. Go figure it out. Then build your sales process around that. Don’t make it activity based. Make it results based. Let your sales people figure out for themselves how they are going to get their prospect to “create an evaluation team” or get “the CEO’s approval.” That’s their job. Just don’t let them move past that stage in the sales cycle until they figure it out. Because, that’s your job.

December 16, 2009 | Filed under: Sales Leadership,Sales Process,The Chase,What I Think! | View Comments |

Sales is Simple, Access Either You Have it or You Don’t

As I stated in yesterdays post, sales is simple. It comprises of 3 things.

-Access
-Influence
-Delivery

Get all three of these right and you’ll be quite successful.

Access is the first one and in my opinion is the most complex and most difficult. It’s like the velvet rope at a club. Some people walk right up and are allowed in, while others have to work really hard to get in. Some people get in just by hanging around long enough and others never get past the doorman.

Getting access to your buyer, your customer is critical. The chase starts and finishes with access. No access, no sale. Access is the ability to get the attention and engagement from your buyer. Access is permission; permission to meet, permission to “interrupt” in the form of a T.V. or radio commercial, and not change the channel. Access is permission to request information, to share information and to make suggestions. Access is permission to engage.

Great sales people and marketers understand the importance of engagement and permission. Great sales people gain access through trust. They listen. They understand. Gaining access is making an effective cold call. It is offering a free service. It’s providing a free trial. It’s getting a referral from a satisfied customer. It’s an on the mark marketing campaign. It’s providing a prospect information no one else has. It’s about giving without asking. It’s about knowledge. It’s understanding it’s about your customer and not YOU!

Gaining access is a subtle and delicate art. Being good at gaining access sets everything else in motion, the better at it you are the more success you will have.

Which side of the velvet rope do you spend most of your time?

September 29, 2009 | Filed under: Sales Process,The Chase | View Comments |

How Sales is JUST Like Dating!

Sales is like dating. It’s a chase. It’s an intricate dance. Sales, like dating, takes finesse and an instinct to know when your customer is into you or not.

The first sales call is like a first date. There is excitement and fear of failure or screwing up. Extra preparation takes place. A little more time is spent on the presentation. Pre-sales meetings are held. Research is done. You put on your best power suite, shine your shoes, wear your favorite tie and get dialed in. You show up early. You put on your best performance. Sometimes, like flowers on a first date, you bring company swag. The first call in sales is just like a first date, you want it to go perfect.

When the call is over, just like a first date, you call someone, your boss, or a co-worker and tell them how it went. You’re either on cloud nine and excited or you’re bummed out second guessing everything you said and what you didn’t do. After the first call, like a first date, you know whether or not you’re going to get a second date.

If you don’t get a second date, your devastated. Your ego takes a whacking. You beat yourself up. And many times you desperately try to get a second date, telling your prospect over and over how it will be different this time and how your product really can help them out. Only if they’ll give you a second chance. Like dating, it ain’t going to happen.

If you do get a second date, and it goes well, you’re now officially dating. The dance is under way. Just like dating, each encounter brings the relationship closer, more information is shared, the tone becomes less formal, and the excitement level of an impending deal grows. Just like dating, it’s palpable. You can feel it. They like you and your solution. They want more. They’re calling you and asking you out. Its bliss. When this happens you get closer, trust is built, comfort levels grow and usually the sale is made.

Just like dating however, things can change. You have a great first date, and even a good second date, things seem to be going well, when all of a sudden they stop calling. They don’t return your calls. They keep telling you they are interested and that they like you, but you can never seem to get another date. They tell you that everything is fine. They say, it’s just they’ve been busy. But, they just don’t seem that into you and the problem is they’re not.

Just like dating, your prospects or your customers may lose interest and not want your product anymore. They aren’t going to buy what your selling. They may have been just shopping you around to make your competitor jealous. The person you’re dealing with may not have authority to buy. They’ve changed their minds. They have an alternative solution but don’t want to tell you to go away just yet, because they’re insecure. Like dating the reasons are endless. Just like dating you have to see the signs and walk away. You’ve got to stop calling. You’ve got stop begging for one more date. You’ve got to stop acting like a desperate freak stalking your prospect like they are the only one you have. You have to know when to walk away.

Just like dating YOU may not like the first date. Unfortunately this is rare. Sales people are notorious for wearing beer goggles. Rarely does a sales person not like a first date. But if they were a bit more selective with their dates they might be a bit more successful. Too many times sales people chase dates that just aren’t going anywhere. They should have seen it wasn’t a good fit right away and saved time for good dates. If it weren’t for those dang beer goggles.

Selling is just like dating. You’re going to get rejected. They’re not going to like you. You’ll be strung along. You won’t like some of your dates. You will keep going out with some of your dates knowing it’s not a good fit. But, like dating. you will find some great prospects that like you and want to work with you and they will grow into fantastic relationships.

Just like dating you need to know where you stand. It’s not worth it to waste your time with a date that’s just not that into you!

August 13, 2009 | Filed under: Sales Process,The Chase,What I Think! | View Comments |

The End of The Quarter

Today is the end of the quarter, and if you are in sales you know what that means. The end of the quarter marks the mad dash to get in as much business as possible before 12:00 midnight to ensure you make your number.

I’ve always found this to be an interesting dance and for those of you not in sales it goes a little like this; The V.P.’s look at the most recent reports to determine where they are in relationship to their revenue number or quota. They in turn look down into the organization to the directors and managers and ask, “what can you move into this quarter from next quarter?” This sets off a flurry of activity as the sales teams call in favors, offers deals, creates discounts, and sweeten the pot all to get revenue a day early. It’s an unhealthy way to do business.

The other reason I find the end of the quarter so interesting, by bringing in deals expected to close next quarter you, in essence, have gap to fill next quarter. This gap inevitably get’s filled the same way the previous did, by bringing in deals from next quarter by calling in favors, offering deals, creating discounts and sweetening the pot. Its a viscous cycle. Especially if your sales cycle is longer than 3 months.

I don’t like this dance and I don’t think it benefits the organization in the end. It becomes a viscous cycle that costs more in the long run, as sales people create scarcity and give away the farm to make their number. To avoid it companies need to be more disciplined in sales operations. Start with focusing on sales cycles and closing ratios. If a company has strong understanding of it’s average sales cycle length and the % of deals it wins, they can have a much clearer view of what to expect each quarter. This allows for much better forecasting and quota allocation. Secondly, companies need to have a greater focus on the long-term. The mad dash to bring revenue from future quarters into this quarter only creates a brutal cycle that is difficult to break and can cost the company millions. Take the hit in the 3rd quarter, don’t make deals that you don’t have to make if you close two weeks later, don’t give away extra product to close today, if you won’t have to close in 3 weeks. Rarely is it worth it.

Don’t train your customers. If this is a pattern, your customers will pick up on it and purposely wait till the end of the quarter to negotiate, knowing you will be more flexible on the terms to make your number.

Set realistic plans. This is a big one and could be a post by itself. My experience, is most companies build their plans through a process of, “how much can we grow?” with little analysis on what the market can bear, what the company resources can support, what the competition is doing etc. Few companies actually do a thorough analysis before committing their yearly numbers. This approach is like throwing darts.

The mad dash is just about over. My team and I will make our number, just barely. We didn’t sweeten any pots, we didn’t create any discounts, but we did have to call in some favors and that has a cost.

I don’t like the dance and don’t think it’s a good reflection of an organization. But it’s over for the next 3 months. To my fellow sales guys, enjoy the reprieve, you deserve it. Rest up my friends as the battle will resume again soon.

June 30, 2009 | Filed under: Sales Leadership,Sales Process,The Chase | View Comments |

Get Out of The Way

It’s been the most hectic, reactive, fear based selling environment I’ve ever been a part of. With customer inventories up, revenues down, capital expenditures being cut, and organizations constantly restructuring getting a handle on revenue is difficult. It’s hard for companies to know what their customers are going to buy. Consistency is the biggest victim in this crazy market. When consistency goes, management does something funny. They get in the way.

When management can’t get a clear picture on what is going to happen, when forecasts are missed, when deals unexpectedly fall out of the pipeline, when they are behind on their numbers, management becomes control freaks. We over react and begin demanding revenue and booking reports. We demand weekly, pipeline updates. We ask for pipeline and account reviews. We schedule emergency expense updates. When things get inconsistent we look to regain control and blow apart the process already in place. Ironically, this just makes things more inconsistent. Especially for the people in the trenches, because they now spend more time reporting than doing their jobs. When this happens, management is just getting in the way.

Times like this are hard. I get it. Knowing what revenues is going to be are critical. Understanding the expenses to revenue ratio is critical. But if you want to get back to consistency. If you want to accelerate sales. Don’t get in the way, stay out of the way. Give your sales team as much time to sell as possible.

Note to management; get out of the way. Sales becomes increasingly difficult in lean times. More customer facing time is required. Deals take longer. Creativity is required. More effort is needed. Customers demand more, take more time to decide, have more cumbersome decision processes and are less inclined to take risk. Selling in this environment requires far more effort than normal. Taking your sales team out of their routine, giving them more internal reporting work, and focusing them on anything but selling is making the problem worse. As managers we need to report what is going to happen. We have to have as clear a view as possible into where the business is going. Grabbing control, and spinning the team into a tizzy isn’t the way to do it.

If things get inconsistent, if new, or more information is needed then change the existing processes. Don’t add to them. Even though customers and forecasting is inconsistent it doesn’t mean you have to be. Keep the sales team in front of the customer. Give them as much extra time as you can. Implement the processes you need. Get rid of the ones that no longer give you what you need and then . . . get out of the way. Your team has selling to do.

June 1, 2009 | Filed under: Business Performance,Sales Leadership,Sales Process,The Chase | View Comments |

Don’t Let Anyone Kid You; It’s Emotional

Buying is emotional! People AND companies buy for different reasons. Don’t confuse motives, for buying, with emotions. The motives can be financial, political, and personal. Underneath these motives is an emotional connection to each. The emotional thrill of beating out the competition and getting a promotion (political), the emotional warmth of buying a second home on the beach, where the family builds great memories (personal), the emotional sense of accomplishment of an additional $25 million dollars for your division by implementing a new solution.(financial), all these emotions drive the motives.

Don Drapper, from Mad Men captures it best here. In the video Draper talks about a “deeper bond with the product” in this case nostalgia. Nostalgia is the motive, but emotion is the driver. Bonds are emotional. They are created through emotion. A product or service makes us feel a certain way. That feeling drives us to buy.

Get to the emotion. Understand what the emotional impact is and play it. Don’t confuse feeling good with emotion. Emotion is pain and pleasure. Decisions will be made to avoid emotion as much as to be emotional.

To sell with emotion you have to use vision. You need to build a vision your buyer can see as if it were real. Know what motivates your buyers. Then move them emotionally. Create excitement around decisions that will drive financial rewards, or beat the competition. Leverage fear around decisions that could lose to the competition, increase loss, or fail.

Leverage your knowledge to drive the sale. Identify the opportunities, target the motives, and then tap into the emotion.

Business is emotional, if anyone tells you different they’re full of shit.

May 28, 2009 | Filed under: Sales Process,The Chase | View Comments |