Sales Blog with Sales Tips

This is one sales tips post where I don’t feel comfortable writing, “I’ve observed hundreds of sales managers who…” The reason? I was profoundly guilty of what I’m writing about today when I was a budding sales manager.

My sin? Showing instead of coaching.

Let me explain.

The Sin
There are essentially two ways to train people. They can be continually shown how to do something, or they can fumble through it themselves (with the help of a good coach) until they “get it.”

We all know which one works. Fumbling.

And for clarity, “coaching” occurs when an expert in a sport observes his or her players and provides feedback for improvement. Coaching applies to all professions, not just sports.

Some sales managers, especially new ones, can’t resist perpetually showing new – and even experienced – sales professionals how to sell their company’s widgets and services.

This style of training doesn’t work.

Examples

• The sales manager who “takes over” every sales call when working with a salesperson.
• Anything that falls the slightest bit outside of standard procedures must be reviewed with the sales manager.
• Any deal that is average in size or larger is completely managed by… you know who.

Why Do Some Sales Managers Do This?

• It’s easier.
• In the short term, they’ll probably help the sales representative sell more.
• If they get involved, there won’t be any problems, at least in their mind.
• The sales cycle may be shorter.
• The salesperson will be shown the “right” way.
• Helping new reps in the selling process takes some of the pressure off new recruits.
• Performance pressure from the sales manager’s boss can be a factor.

If we strip out the white noise, the real reason some sales managers don’t coach is because they’re unsure of their ability to manage their sales team.

A sales manager’s unwillingness to allow sales professionals to fumble, pick up the ball and run again kills the growth potential of his or her sales team and of the sales manager as well.

Sales Tips Blog Close
We all know we have to do what we’re trying to learn in order to master it. Repeat it enough times, and we’ll burn it into our subconscious minds. Athletes call it “muscle memory.” The military calls it “boot camp.”

Watching every training video on golf will never enable me to golf like Phil Mickelson. Having Lee Westwood personally give me golf lessons is worthless if all I do is watch him swing the club.

No, I’m going to have to pick up the club and swing in front of the pro. Lee Westwood will only begin to help me when he selects one or two of my major problem areas and begins coaching me.

I struggled as a young sales manager in this area. Fortunately, my VP of Sales recognized this as a management development opportunity for me. Guess who started silently tagging along and observing me in action with my sales team?

He coached me through my blind spot.

Stop showing. Start coaching.

©2010 Scott R. Sheaffer

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If sales is nothing else, it is a game of comparison.

“How am I doing against my budget?”
“How do I compare against my peers?”
“How do my company’s procedures and capabilities compare to my competitors?”

In today’s sales tips post, I’m focusing on common practices within inside sales departments. Inside sales departments are critical to the overall revenue of a company and the success of its outside sales force.

I combed through a 2010 Bridge Group report on inside sales and selected what I feel are the most interesting findings. The data was collected from inside sales departments at 115 North American technology companies.

These are presented in no particular order and include my notes and comments.

The Findings
The study found the average inside sales department has the following attributes:

1. Primary function of the department is outbound calling (i.e. new business development). This was identified by 89% of respondents.

2. Level of sales experience for newly recruited salespersons: 3.1 years. This number is trending up each year.

3. Time for a new hire to reach full productivity: 4.5 months.

4. Tenure of an inside sales representative: 2.9 years (34.5% annual turnover rate). Companies know the lifetime value of their customers, but have they stopped to think about the lifetime value of an inside sales representative?

5. Percent of total compensation at risk (i. e. commission, incentive compensation): 44%.

6. Percentage of representatives who achieve their quota: 50%. This number has decreased steadily since 2007.

7. Number of calls per day per representative: 39. Less than five per hour. This suggests there is ample time for inside sales representatives to research prospects at most companies. My long-term sales tips readers will know that I think this is a good thing.

8. Number of emails per inside salesperson per day: 24. This number seems low to me. Could this be an indication that social media is beginning to have a significant impact on how we communicate?

9. Twenty-seven percent of prospecting calls are a result of a lead generated by marketing.

10. Number of contacts required to move a qualified prospect to a customer: 9.3. This number is higher than most other studies I’ve seen. It’s probably indicative of our current challenging economic environment.

11. Close ratio for all new business development activity (i.e. “in the pipeline”): 23%. This number is pleasantly high and reflects a quality-versus-quantity mindset (see number seven above).

12. The average direct sales manager is responsible for eight inside sales professionals.

13. Percent of total company revenue generated by the inside sales group: 42%.

14. Sixty-three percent of the inside sales group’s revenue comes from new business. This is not surprising in light of number one above.

15. Sales cycle in days: 108. This number seems to fluctuate only moderately among all industries and sales channels.

Your Mileage Will Vary
These are averages. How they apply to your company will depend on your industry, target markets, etc.

These numbers remind us that in order to benchmark our company, we must first measure and track the numbers that make a difference.

©2010 Scott R. Sheaffer

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The picture you’re looking at in this sales tips post is a McDonald’s Happy Meal. But this particular example is far from your normal Happy Meal.

This unusual Happy Meal can serve as a metaphor of a sales professional. It shows us that what we perceive to be true about ourselves can be vastly different from the reality.

This Remarkable Happy Meal
I was listening to someone speak today on health issues and she used this unique Happy Meal as part of her presentation. She was kind enough to let me take a picture of it.

This Happy Meal is over one year old. It has never been sealed or refrigerated in any way. In fact, this tasty treat has traveled quite extensively and has been handled by many people. What do they put in those things to keep them so “fresh?”

Appearances Are Deceiving
Not surprisingly, this Happy Meal isn’t so happy anymore. It’s nothing more than a disgustingly stale hamburger and a box of dehydrated french fries. This is Howie Mandel’s worst nightmare.

Yet it almost looks as if it just came off a McDonald’s counter.

I see sales professionals every day who remind me of this Happy Meal. From all appearances, they look good. They wear nice clothes. They have good verbal skills. They get along with everyone.

But underneath their veneers are stagnant and tired salespersons.

Sales Tips To Avoid Being A One-Year-Old Happy Meal
Look in the mirror – no, not a real mirror, a mental mirror. Ask yourself these questions:

• Do I still have a passion for selling like I did when I first started, or am I just taking orders?
• Outside of knowing who my direct competitors are, what have I done to keep current on their tactics and strategies?
• Have I set my own sales goals (e.g. quarterly, annual, five-year) beyond what is handed to me by my sales manager?
• Do my customers still see me as someone with a “fire in the belly” or just another weary salesperson?
• What have I done lately to ensure that I’m aware of the latest thinking on sales methodologies?
• Do I continue to have a high level of interest in learning about the products and services I’m selling?

Conclusion
If you’ve been selling for a number of years, you probably see yourself in some of the questions above. I know I’ve been guilty of getting rusty.

Honestly assess yourself and your career goals and take action to fill the gaps.

You can become a stale hamburger, and not even know it.

©2010 Scott R. Sheaffer

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