Archive for the ‘Sales’ category

Cold Calling Step 1: Defining the Target Market and What It Values

July 8, 2010

Ted Williams, one of the greatest baseball hitters of all times, once said that the secret to good hitting was getting a good pitch to hit.

He could just have easily been talking about successful cold calling.

The first step in effective cold calling is segmenting the marketplace. Just as you need to know your strike zone in baseball so that you can swing at good pitches, you also need to know which prospects would need the benefits that your product brings. These prospects may be in a particular industry or they may cross over into multiple industries, but regardless, if you have targeted effectively you will connect with your prospect at a much higher frequency.

You’ll notice that I did not state that this conversation is about what your product does. For the most part, your product’s capabilities are irrelevant, except as it relates to the delivery of the benefits that matter to the prospect.

This is a very important distinction and the core component of effective cold calling, and, for that matter, effective sales. All too often, salespeople focus on features. Leading with the benefits allows the prospects to have context about the features and to measure your offering in the context of the value that they will gain.

Put another way, by focusing on value and benefit, you make the discussion about the customer and not about your company or product.

The challenge, of course, is about identifying those benefits. There are many ways that you can gain this wisdom.

The first is to read about the target segment and discover any industry wide problems, opportunities or trends. Does your product address any of these and, if so, how? What other benefits does it bring? Does it support a corporate strategy or goal?

For large sales opportunities or where you are targeting a particular company, reading the target company’s public filing will give you insight into things like turnover, attrition, and risks that are being managed. Press releases and newspaper articles also deliver insight as to triggering events that create a corporate need.

The key element of this first step is simply recognizing that it is only about the prospect and never about you and your product. It is the first key to “batting with a high average.”

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A Cold Calling Sales Method

July 6, 2010

Over the past few months, I have taken on the responsibility of sales through a cold calling project. To be candid, I have never been a fan of cold calling. My personal belief is that you grow sales from the inside out, that is, you leverage existing relationships to create warm leads that result in new sales.

Still, when introducing a new product, and with a limited marketing budget, how does one create market penetration and develop new sales through cold calling?

Of course, it helps – a lot – to have a good product to sell. However, having been involved in new business development for almost twenty-five years, I thought this to be a worthwhile project.  In fact, after all of these years developing sales, I thought it interesting to see if a method could indeed be developed for cold calling.

And, as I am indeed writing this blog post, it is safe for you to assume that I do believe there is a method, which I intend to explore during the next few posts.

Specifically, the method has these steps:

(1) Define the target market and what it values

(2) Understand the product, including its capabilities and usefulness to the business

(3) Apply the usefulness capabilities toward creating a proposed script

(4) Redefine the capabilities into bulleted business benefits

(5) Identify the target business’ professional who would appreciate the business benefits

(6) Transform the script into a specific one minute presentation for voice mail emphasizing the benefits and the validation of the benefits

(7) Build the supporting materials (e-mail, demonstration scripts, supporting e-mail documentation)

(8) Begin the cold calling campaign

(9) Track results and determine an appropriate follow up frequency

(10)  Refine the script and supporting follow up materials

Over the next few weeks, it is my intention to post about each of these steps and share with you this method.

Just to intrigue you, though, suffice it to say that of the targeted market, this method has been successful in generating more than a 33% response rate.

Stay tuned…

Determining the Candidate’s Leadership Profile

June 17, 2010

One of the challenges in the interview process was the need to capture information in a meaningful way.  The plan was to interview five candidates in one day and the risk of blurring responses, characteristics and attributes was fairly high. Effective data capture was therefore important.

The tool that was built had a section for evaluating each of the core attributes highlighted in the prior post. It was to be completed after the interview and it simply asked if the candidate had the particular attribute and allowed for any additional comments or insights.

The rest of the document – and clearly the most important section – was devoted to a series of questions designed to create a conversation that would enable the candidate to share his or her views on leadership.

Here are some examples of these questions:

A. Getting to know you questions:

(1) I’m about to buy a brand named <candidate>. Describe what I just bought.

(2) What was the best job you ever had? Why?

B. Execution:

(1) How do you assure / implement accountability among your staff?

(2) What do you reward and how do you reward it?

(3) How do you convince people to change behaviors?

(4) How do you evaluate staff?

(5) Why should someone be fired?

C. Ability:

(1) What characteristics of your present job do you like?

(2) What are some of the things you don’t like?

(3) How would you change your job if you had the power to do so?

(4) Describe your perfect job?

(5) Describe your perfect boss?

(6) Give me 5 adjectives that generally describe the people who work for you.

D. Leadership:

(1) What are 3 core tenets of your management philosophy that you would never compromise?

(2) Fast forward a year —  how is our company, the one that just hired you, different?

(3) How do you hire people (i.e. what is the hiring process / what do you look for)?

(4) Talk to me about a great hiring success (what were the factors that made it successful)?

(5) Talk to me about a great hiring disaster. Why did it happen? What did you do about it? (this is a great question to learn about blindspots)

(6) How do you make important decisions?

(7) How do you go about learning new things?

(8) Describe the perfect company culture? How would you create this culture?

E. Ability to Grow and Learn:

(1) Most people have at east one tough integrity challenge in their professional lives – what was yours and how did you handle it?

(2) What is the greatest lesson that you learned in the past five years?

(3) What is the greatest professional challenge you’ve ever faced and why?

F. Vision:

(1) Tell me about three competitive trends for which we should be concerned.

(2) What is the single most important idea that you contributed to your present job?

The purpose of these questions is to learn what is important to the candidate and the thinking process that is utilized. What can be learned from these questions is the values of the candidate, how they are reinforced and the type of people with whom these leaders will surround themselves.

Getting these answers will your company know the type of leader it is engaging.

You can be efficient with things but you can only be effective with people

May 2, 2010

I really love my clients…they are all so eclectic and so varied. They have a unique way of thinking and my role as their guide is always interesting, stimulating and challenging.

This past week presented an unusual opportunity and I wanted to share it with you. It reminded me of one of my favorite management aphorisms — “You can be efficient with things but you can only be effective with people.”

This particular CEO is remarkably gifted. He can see both the vision of where he wishes to go and he knows the steps he must take to get there. When someone is this gifted, he or she tends to move faster than those around him. This particular leader is busy – no make that very busy. He’s always onto the next plan and how to lead the team there. Fortunately, he builds his team with equally fast thinkers and implementers so he is very effective in producing results.

But when he does demos of his products, he speeds through them. You can almost sense a palpable catching of the breath on the other side of the web ex or go to meeting demo as his audience tries to keep up. And frankly they can’t…which brings us to today’s aphorism.

Efficiency is about time, effectiveness is about getting the result that you want.

You can speed up equipment, you can accelerate a process but no matter what you try, people will ALWAYS learn at their own pace. Understanding this human element is critical to being effective whether it be in presentation, motivation, education or just plain-old discussion…and it certainly applies to every relationship that is worth building.

“You can be efficient with things but you can only be effective with people.”

Tonight May Be A Turning Point in Television History

March 7, 2010

ABC-Disney followed through with its threat tonight by pulling the New York-area WABC-TV from Cablevision after it failed to reach a re-transmission agreement with the cable giant.  Some 3 million Cablevision customers in Long Island, Westchester, Brooklyn, and parts of Connecticut and New Jersey were affected.

The two corporate giants are playing a giant game of chicken on Oscar night. If no one blinks, several million people will not be able to see the Oscars tonight.

Regardless of who wins this battle, both companies may lose more than they ever considered. Let’s talk about the unintended consequences.

If people decide they really, really, really want to watch this very popular television event, they may turn to the web and seek the tens, perhaps hundreds of sites, who will be streaming the Oscars over the web. Several million people may learn tonight that they can watch their favorite shows just as easily over the Internet — without paying for it.

If that occurs, Cablevision and ABC-Disney may have educated millions that their companies are not required to deliver home entertainment. And if that happens, the two companies may learn about unintended consequences in a way that they have never intended.

I know I’ll be tuning in to see who is the real winner on Oscar night.

Trends that You Should Worry About…

January 1, 2010

Lately, I have been “heads down” more than ever working with companies on redefining their strategies. In these conversations, I am often asked what surprises me the most. Here are a few observations.

The biggest surprise to me has been the pace at which whole industries have begun to disappear. As fast as one charts the list, another one needs to be added. The postal service, newspaper and magazine publishing, television, and retail stores are just a few.

Last week, I went into a high end department store to buy a present for a newly engaged couple. I went to the registry and met with the manager. She told me that 80% of the gifts for a couple is now purchased on line. This is good news for the retailer because it can pay less commission, as there is no sales rep involved in the purchasing transaction.

What was shocking to me was that manager told me that when an item is returned to the store, it gets applied as a negative sale to her commission. She is running harder just to stay in place. And the store is comfortable making her role obsolete.

Another recent trend that I find fascinating is the increasing need to create engines as opposed to creating businesses. Zappos is a great illustration of this process done well.

Zappos had become an Internet business legend, so to speak, for its ability to sell footwear. Its use of social media to promote and service its business is very well known.

In July, Amazon announced its intention to purchase Zappos. The deal closed in November.

Today, less than two months later, Zappos has transformed itself into a clothing site. The engine that it has designed and the practices that it has implemented are being used to allow it to enter a whole other segment of the clothing industry.

What does all this mean to you?

For starters, if you have been doing business in a traditional way, start rethinking your business model because your next competitor can come from anywhere.


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