Develop A Long-Term Relationship with Your Customers

Satisfied customers provide long-term, profitable buying relationships. By using the information available to you from an effective marketing database, you can:

1. Solve your customers' problems. Purchase histories, transactions and relevant statistics allow you to offer more than a product. You offer your customers a solution to their problems.

2. Communicate with your customers personally by name. Database marketing allows you to be more knowledgeable about your customers' buying frequency, dollar value of their business, and other factors that influence immediate and future sales.

3. Add value to your customers' purchases. Expand sales through additional services such as training programs, related products and services and automatic updates.

4. Develop, enhance and expand your relationship. When customers trust and depend on you, they look to you for help in solving their problems. They look forward to doing business with you and want you to service more and more of their needs.

Good Luck & Good Selling!
Russ

Creating A Database Attitude

Successful operation of a marketing database requires a change to a marketing culture. A marketing culture demands:

• A marketing approach rather than a systems approach. Marketing is customer-centered and all systems need to be created and managed to support customers. Ask, "How will this add value to my customers: experience and use? The technical nature of database management cannot supersede the need for marketing and customer support.

• A willingness to invest. Marketing databases require systems composed of hardware, software and experts to operate them. Loyalty programs require strategy and time to succeed. All are vital investments that are required before a database marketing program will succeed.

• Accountability and a return on investment.

Marketing promotions need to be considered as investments that require a return on investment. Reports and calculations need to be made for all decisions, and the decisions need to be accountable to show a required return on investment.

Good Luck & Good Selling!

Russ

Customer Service and Your Bottom Line

Over the long haul, there is no question that providing outstanding customer service benefits a business significantly. It strengthens the relationships with customers, provides a solid foundation for additional account penetration and keeps customer attrition to a minimum. All of this benefits the bottom line. And outstanding customer services help avoid the additional work associated with mistakes, problems and inappropriate treatment of customers. Focus heavily on your customer service levels and instill a real discipline about how customers are served. Over time your bottom line will reflect the enhanced emphasis.

Good Luck & Good Selling!
Russ

Improve Efficiency With Processes

Inefficient processes can have a profound impact on your bottom line. Bad processes lead to more hours than necessary being worked which translates into more overtime or more people. And bad processes can have a detrimental impact on customer service. Look at your processes and isolate those that seem to be the most inefficient. In a simple and straightforward manner, flow chart each step in the process and critique each of those steps in terms of whether it is necessary and/or whether it is being carried out in the most efficient manner possible. If it is not necessary, eliminate it.

Good luck & Good Selling!
Russ

CyberSelling Book Reviewers Wanted

You may have noticed the new item on the menu bar on the left of this blog. It simply says "CyberSelling Book Reviewers Wanted". What is this, you may ask. Well, quite simply, it's your opportunity to help me write my new book called, "CyberSelling - Using CRM Technology to Help You Sell." To learn more about this new book, click HERE or send me an email (russ@PeakSalesConsulting.com) asking for your free, Members-only login account.

As a free Member, you'll be able to read each and every chapter as they are written, provide your comments, and reply to other members' postings. In doing so, you will get free, advanced reviewing of my new book and be able to provide your comments and opinions, thereby helping me to make sure it addresses my readers' best interests.

It's free and easy. I will even email all Members whenever a new chapter is posted. I hope you take advantage of this special offer. Thanks.

Good Luck & Good Selling!
Russ

Don't Be Afraid To Charge Higher Prices

Some businesses are afraid to charge prices that reflect the value of the product or service offered. They feel that charging a lower price attracts buyers they might not otherwise attract. In some cases that is true. However, if a product or service is reasonably priced, customers generally won't balk at paying a price based on perceived value. Only when there is a disparity between perceived value and the price is there reluctance or refusal to buy based on price. Ask yourself how your product or service stacks up against your competitors’ product/service. Is it of higher quality? Are you adding value to the process in some way that might warrant a higher price? In short, don't be afraid to price your products and/or services at levels that reflect their quality and value.

Good Luck & Good Selling!
Russ

Spend Money On Training, But Only The Right Training

Training is an important element in sales development and filling skill gaps. There has been an increasing emphasis on training, but many companies spend money on training that has little or no chance of making a difference. Evaluate what skills are critical to each sales individual and position in your organization. Put a training plan in place that addresses critical skills against skill gaps of sales reps. But before committing to specific training programs make sure you evaluate the effectiveness of the programs. Among the most effective types of training are individual and team mentoring programs designed to provide hands-on training tailored to the specific skill gaps of the individuals involved. Additionally, the trainer must have personal experience in sales and sales management to be effective and believable. Don't settle for just book-smart instructors. Understanding what are needed and fitting programs to those needs is very important.

If you'’d like to determine the ROI of your sales training program, click HERE for our free Sales Training ROI Calculator.

Good Luck & Good Selling!
Russ

It Usually Takes More Time Than Expected

When implementing any sort of change, new program or sales process, it is important to remember that it generally takes longer than expected to get them in place. This means that it is important to have a well thought out and clearly communicated plan of attack. And it means that anticipated bottom line benefits might not be realized until well after the initiative has started. Putting off initiatives that are designed to bolster or pump up your bottom line or sales results could mean an erosion of profits. Anticipate what needs to be done, prioritize which things need to be done first, second, etc., put a plan in place and apply resources to make it happen. Avoid letting things pile up so that too many initiatives are required in a hurry.

Good Luck & Good Selling!
Russ

Do You Really Want To Lower Your Price?

Sometimes a competitive situation will prompt a sales rep to think about lowering price and competing strictly on a price basis. But is it always necessary to lower a price to secure the business? Not always. This will depend largely on two things; 1) the depth of the relationship with the customer and, 2) any added value your product, service or organization brings to the deal. Lowering price has an immediate and direct impact on the bottom line. It should not be a routine matter to lower prices to match competition unless you are in a true commodity business, and even then there could be ways to differentiate.

Good Luck & Good Selling!
Russ

Some Customers Might Be Worth Losing

Losing a customer now and again might be in the best interest of the company. When would we want to lose a customer? In some cases, a customer requires so much attention and has negotiated such favorable pricing that the gross profit generated from that customer doesn't justify the time and energy devoted to maintaining the relationship. The resources are often needed to build your customer base and develop stronger relationships with more profitable accounts. But before "running off” a customer, do your homework. Are there other reasons to maintain a marginally profitable account such as increased buying power that brings down overall product or input costs?

Good Luck & Good Selling!
Russ

Observe A Process Today

Take the time out of your busy schedule to spend time watching and learning about one of the critical processes occurring in your company. This means getting right in the middle of it and following the process by sitting with employees involved in it and asking questions about the specific activities surrounding it. Since productivity is essential in enhancing profitability, understanding processes and how they have evolved will help identify those that have extra steps in them and/or where there are efficiency and productivity issues. In short, spend time actually doing the steps in various processes and you will learn a lot about them. Sometimes things have been added or changed without your knowledge.

Good Luck & Good Selling!
Russ

To Travel Or Not To Travel

Much of today's business travel is unnecessary. It seems that business people have gotten into a pattern of jumping on an airplane to travel to sales calls, meetings, workshops, conventions, trade shows and other events when much of that travel is unjustified or unnecessary. With the various electronic means of communicating available today, much of the activity that takes place in face-to-face settings can be handled via email, teleconference, fax, the Internet or videoconference. Before deciding to travel, ask yourself if that travel is really necessary. If not, don't go since traveling can be very expensive. It's safe to say that in many companies travel expenses can be reduced by a third or more simply by using alternative means of communicating or by foregoing unnecessary meetings or other events. However, in sales, nothing beats a face-to-face meeting to build trust and develop a relationship. Just make sure you balance these important in-person meetings with more economical alternatives.

Good Luck & Good Selling!
Russ

Don't Over Promise and Under Deliver

Through promotional campaigns, sales presentations, conversations with customers and other ways, many businesses seem to promise more than they can possibly deliver. This can come in many forms. The promise of excellent product quality often turns out to be nothing more than a promise. The promise of excellent customer service rings hollow with many customers. The promise of expedited delivery or performance of some type often falls short. It is a dangerous and unwise practice to tell customers and prospective customers that your business and its people can do something when there is little chance that it will actually happen. Pay close attention to what you and your people are "promising" your customers and prospective customers. Can you actually deliver on those promises on a consistent basis? If not, stop and rethink what you can deliver. It is far better to exceed expectations than to fall short of them.

Good Luck & Good Selling!
Russ

Don't Fall Into This Trap

It is amazing that so many businesses profess to deliver excellent customer service when, in fact, the vast majority are delivering very poor service to their customers. In fact, it appears that the level of service being delivered to customers is falling off somewhat dramatically in many businesses. There is a trap that many businesses fall into that begins with a lot of lip service being paid to customer service, but little or no real action being taken. These businesses fool themselves into thinking their customers are receiving excellent service when, in fact, they are not. In many cases, the service is shamefully poor. It is important to avoid this trap at all costs. Having a false sense of security about customer service can lead to the downfall of a business. While the business believes its customers are happy, those customers are quietly leaving and talking to others about the bad service. Does your business suffer from a false sense of well being regarding customer service?

Good Luck & Good Selling!
Russ

How Morale Affects Profits

Success in business is primarily a result of the quality of people employed. It is well known that productivity is a key factor in the level of profitability attained. Productivity is a result of a number of factors, but none more important than the morale of the employees involved. Many managers and owners fail to recognize that maintaining high levels of morale generally translates into higher levels of productivity and, therefore, higher profit levels. Morale is affected in many ways, but primarily by how the employee is managed, developed, coached and treated. Too many managers treat their employees as commodities that can be disposed of and easily replaced. Others don't take the time to foster a strong enough working relationship with their employees. And most don't set clear expectations or enforce policies consistently. In short, employee morale has a direct impact on productivity. It takes time and effort to achieve high levels of morale within an organization. How much attention does your business pay to achieving and maintaining high levels of morale?

Good Luck & Good Selling!
Russ

Is Networking REALLY Worthwhile?

Check out this article by Judy May of Show House Marketing. If you are interested in networking at all, then this article will be very valuable.

http://www.minutesmatter.com/newsmail/articles/networking.html

Good Luck and Good Selling!
Russ

Communicate Price Increases

Notifying customers of pending price increases is important in maintaining an open and honest relationship with them. This is especially true in non-retail businesses. Customers don't like surprises and if they receive an invoice reflecting a price increase without prior knowledge there is a feeling of a one-way relationship rather than a partnership of sorts. Customers need to know about price increases in order to budget for increased expenses or costs. Make a habit out of communicating to customers as soon as possible any upcoming price increases. This is simply one more way of developing a strong relationship with customers. Certainly many of the customers won't welcome the price increase, but they will appreciate the advanced warning.

Good Luck and Good Selling!
Russ

Sales Training ROI Calculator

Many companies need, and want, to make sure that employee learning is having an impact on business results. Unfortunately, when it comes to figuring out the return-on-investment for training, many companies hit a road-block. And sales training, aka selling skills, is one of the most difficult areas to measure.

Now you have a tool that can help you measure the Return-On-Investment for Sales Training. This simple ROI Calculator will show you when you might see a return on your training investments. And it is FREE. I developed this tool to help you determine the value of training your sales staff, or even yourself. But mind you, we are not responsible for any use or interpretations of the results. This is to be used as a guideline only.

Click HERE to access this free Sales Training ROI Calculator.

Good Luck and Good Selling!
Russ

Ten Deadly Small Business Mistakes

Here's a list of Ten Deadly Small Business Mistakes that I think you'll like to read.

Click HERE to read these mistakes.

Good Luck & Good Selling!
Russ Lombardo
919-559-2395

7 Small Business Marketing Tips

Here are 7 low-cost but highly effective marketing tips to help any small business find customers and generate sales quickly, by Bob LeDuc.

Click HERE to read these tips.

Good Luck & Good Selling!
Russ Lombardo

Bad Support From HP

Dan sent me the following story about his bad experience with HP's customer service. I think this will sound very familiar to most of you since it, unfortunately, is the kind of service that too many large companies delve out to us consumers. I'm glad to hear that Dan is actually practicing what he preaches, though, and offers the kind of support in his job that customers deserve. I'm assuming Dan did not send me this story from his HP laptop :)

Russ
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In December, 2004, I bought an HP laptop from FutureShop in Toronto, Ontario, Canada. 54 weeks later, only 2 weeks out of the manufacturer's warranty, I began to have a major problem with my laptop. I called HP's technical support line. Upon entering my model number, the automated system immediately told me that my laptop was out of warranty... READ MORE

Happy Holidays!!

May you, your family and your friends all have a very Happy Holiday Season and a Happy, Healthy and Prosperous New Year. See you all in 2006!!

Good Luck & Good Selling!

Russ Lombardo

Sales People Should Avoid "Out and Back" Trips

Sales people need to be efficient in how they cover their territories. Too often they will need to speak with a particular customer and will drive out to see them and come straight back to the office or head to another customer location on the opposite side of their territory. This is an example of a sales person who is not planning their days well. Territory coverage is an important part of selling and profitability. Most sales people are not disciplined enough to do it well. But traveling to make one call rarely makes sense. When a sales rep needs to visit a customer location, he/she should make a concerted effort to make other calls in the same trip. There should be a plan prior to leaving home or the office.

Good Luck and Good Selling!
Russ

Expect Sales Territories To Be Profitable

Profit expectations should be broken to levels that make sense. Obviously any defined profit center within an organization should have a unique budget and profit expectations established for it. But an often overlooked "profit center" is a sales territory. When a business has an outside sales force, each territory can be treated as a profit center and be run much like an operating unit. Sales people should be held accountable for making sales and gross profit targets and each territory should meet certain profit expectations. Tracking profitability and sales by territory can help in identifying problem accounts, expense abuse, promotional effectiveness, pricing problems, customer leakage and other relevant issues that can be tracked directly to a particular sales representative. Sales people have a lot to do with territory profitability and treating a territory much like any other profit center allows the business to essentially run a sales territory like a business rather than treating it like a set of customers linked by geography.

Good Luck and Good Selling!
Russ

Interact With Customers

Too many managers and owners get caught up in the day-to-day activities of the business and don't allocate time to staying in touch with customers. It is important to actively get out and visit customers to learn more about how they perceive your business and to identify problems and opportunities. Successful businesses are very tuned in to their customers and proactively make attempts to visit customers on a regular basis. It is important to take what customers tell you seriously and not discount their comments or make excuses. To what extent are you getting out of your office and finding ways to interact with customers?

Good Luck and Good Selling!
Russ

Treat Your Current Customers Like Gold

To retain your current customers, you need to keep in touch with them. Let these relationships lapse, and you risk losing the golden goose -- that loyal and dependable source of business and referrals that has been the key to your longtime success. The good news is, there are more ways than ever to stay close to your customers. Here are some ideas for staying in touch:

	Acknowledge your customers by sending thank you notes and special occasion cards (birthday, anniversary, holiday, etc.).
	Send informational flyers and include a discount coupon or gift certificate.
	Celebrate your business anniversary with an open house for customers.
	Mail a monthly or quarterly newsletter, chock full of practical information and useful tips. Include contact information, but avoid the heavy sell. Position yourself as the go-to solution source.
	Invite them to a networking event or trade conference that you regularly attend.
	Make each contact lead to the next. Before concluding a meeting or telephone conversation, schedule the date of your next contact.

However you choose to communicate, be authentic, patient, responsive and consistent. When you treat your customers with respect and give them more than they expect, these relationships will continue to glow like gold.

Submitted by: Cynthia Weber, American Home Mortgage

Abandon Bad Strategies

Many bad strategic decisions are made in the business world. Successful businesses know when to "cut their losses" and abandon those strategies. We find that some owners and managers stay with a bad strategic decision too long because they are, 1) stubborn, 2) arrogant or 3) don't know better. Being stubborn or letting an ego drive decisions are not acceptable reasons for staying too long with a strategic direction. Not knowing better speaks to the ability of the owner or manager to run a business or operating unit. When a strategic direction is obviously a bad choice, it is wise to move in a different direction and reallocate the resources previously applied to that strategy. Staying too long with a strategic direction will ultimately impact the bottom line and could make it difficult, if not impossible, to recover in some cases.

Happy Thanksgiving

To all my readers of Sales Guru Online, I want to wish you and yours a very Happy Thanksgiving. With all the challenges we are facing in these times; hurricanes, terrorists, what have you; this is a good time to reflect on our own good fortune and be thankful for what we have.

For those of us in the sales profession, we are equally blessed to have customers who want our products and services. As such, we need to make sure we continue to give them the support and attention they need and deserve after the sale. In return, we will have earned their continued loyalty and future business.

As we enter into this holiday season, may you have healthy, happy and profitable times.

Much Success!

Russ Lombardo
russ@peaksalesconsulting.com

Listen To Your Customers

We have found that too many businesses don't listen carefully enough to their customers. It is critical in the highly competitive environment in which most businesses operate to actively solicit input from customers. Most customers won't come forward when they have complaints or suggestions. Businesses must find effective ways to seek out that feedback. Formal surveys conducted on a regular and consistent basis is one good way to gather such feedback. While there is some expense associated with surveying, the information obtained is almost always worth far more than what is spent on the survey. Good feedback from customers allows a business to make the necessary adjustments to become more effective in serving customer needs. Also, take unsolicited customer feedback seriously. So often businesses dismiss this information as unimportant when, in fact, it should be documented and followed up on. Very often there is an underlying problem within the company that should be dealt with and to ignore the customer feedback is akin to saying that "we will continue to be ineffective in dealing with our customers."

Good Luck and Good Selling!
Russ Lombardo
919-559-2395

10 Ways to Be a Better Negotiator

In my last issue of "got sales?" eNewsletter, I wrote an article about Negotiating (www.peaksalesconsulting.com/Newsletters/Newsletter-Vol3-Issue7.htm). The link below points to an excellent compliment to that article from the folks at StartUp Nation.

www.startupnation.com/pages/articles/AT_Become-A-Better-Negotiator.asp

Enjoy!

Russ

How to Write An Effective Cold Calling Script

Many people think they can just "wing it" or they "know what they want to say." On the telephone, however, you have 10 seconds to grab and hold your prospect's attention and frequently you don't get a second chance. Ten seconds goes by very quickly. Your first impression has to be strong enough to carry you through the rest of your pitch. "Winging it" is risky and just generally doesn't work, and "knowing what you want to say" without having actually crafted your message and practiced it can easily turn into "gee, I didn't say that very well..." Read Full Article

Tap Into the Fortune Teller…In You

Here's another pearl of wisdom from my friend, Bob Ritter, on improving your sales success. Enjoy!

Russ Lombardo
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What if you could predict the future? If you could anticipate what people will do, would you leverage that knowledge for success? You can and here’s how!

As sales and marketing professionals we don’t need a fortune teller to tell us the future. With a little experience and common sense, we can anticipate it. How so … well think about it… READ MORE

Don't Get Greedy

While maintaining adequate levels of gross profit is important to a healthy bottom line, some businesses insist on charging high prices that are either not justified or too far out of line with their competition. Some businesses have the mistaken impression that their products/services are so much superior to their competitors' that they can command significantly higher prices. While in some cases a higher price can be justified, there is a definite threshold for pricing with most products/services. In fact, what some businesses consider high value products or services, many customers or prospective customers consider a commodity. In other cases where a product or service does indeed enjoy some sort of competitive advantage, the business attempts to squeeze an inordinate amount out of the customer by pricing at extremely high levels. Know your market, your customers and be objective about your products/services and price accordingly. When customers do not equate price with value received, your business is setting itself up for trouble.

Technology and Sales – A Love-Hate Relationship

Here's a good article from my friend and colleague, Bob Ritter, on using technology to help make you more successful as a sales professional. Enjoy!

Russ Lombardo
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By now most sales executives accept the need for technology, even though many still love to hate it. Then there are those sales people, probably the majority, for whom technology is a love-hate relationship which swings back and forth, albeit one-sided.

But strange as it seems, I love my technology! Oh sure, there are time s when I feel frustrated because I don’t get my way. Some times my expectations are too high. But in the final analysis, I’d truly be lost without it. It’s hard to imagine life as a salesperson without it!

You ask, “What’s so special about my technology?” To begin with …READ MORE

30 Ways to Show Your Customers Are Always Right

When you're a start-up with few employees and few customers, it's easy to stay on top of what customers want and what they're getting. But as you add more customers and employees, you add links to the customer service chain. That creates the potential for growth and the potential for poor service along the way. That's why creating a customer service policy and adhering to it is so important. Here are some steps you can take to ensure that your clients receive excellent service every step of the way. Read Full Article

Marketing vs. Sales: What is the Difference?

What is the difference between marketing and sales?Let's think about this question for a moment. Without marketing you would not have prospects or leads to follow up with, but yet without a good sales technique and strategy your closing rate may depress you.

Marketing is everything that you do to reach and persuade prospects. The sales process is everything that you do to close the sale and get a signed agreement or contract. Both are necessities to the success of a business. You cannot do without either process. Read Full Article

Top 10 Things You Must Know Before Implementing CRM

Planning to implement a CRM (Customer Relationship Management) solution for your company? You better plan ahead before diving in. Check out this list of the Top 10 things you must know before implementing CRM for your business. Although they may seem quite simple, a lot of experience, as well as some common sense, has gone into these tips. As your company continues to grow and as you plan your customer relationship strategy, please keep these tips in mind. And as usual, please contact me if I can be of any assistance.

This short, 1-page tip sheet can save you a lot of time, effort, and nightmares. Click HERE to download (.PDF format).

Russ Lombardo
russ@PeakSalesConsulting.com
919-559-2395

New Microsoft Accounting Software for Startups

Microsoft has just introduced its new software aimed squarely at relieving the specific pressure points of startup entrepreneurs.

Office Small Business Accounting 2006 is fully integrated with the entire Office suite that you may already use. It brings the ease of use of household programs like Word and Excel to the prickly function of accounting; leapfrogs the competition with its contact-management capabilities; and adds integration with other Office functions at the deepest levels.

Office Small Business Accounting 2006 also provides you with a single picture of your company’s finances, your customer relationships and your employees’ growth-enhancing activities... Read Review.

The Eleven Commandments of Marketing!

The following marketing tips are from my friend and colleague, Steve Dekany, President and Founder of The Marketing Company. Enjoy!

Russ
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OK, these Eleven Commandments didn't come from the Mountain. And they're not carved on clay tablets, but on a high-tensile polyfiber instead. Yet any marketer worth his or her salt must follow these commandments in order to find the Promised Land...Read More.

Monty Python on Thinking Slowly

I just got back from the ICCM (International Call Center Managers) conference here in Las Vegas. The Keynote speaker was John Cleese. Yes, thee John Cleese of Monty Python fame.

Mr. Cleese had some very insightful and profound thoughts on creativity and thinking that I wanted to share with you right away. His speech concentrated on our ability to be creative by thinking more slowly. Research has shown that creativity is not related to intelligence. But that is counter-cultural to what we call “thinking” because we must always “look” busy. Slowing down to think and ponder is not what we are used to nor something we are comfortable with. Our natural instinct is to quickly analyze a problem and solve it analytically and logically. This is typically a result of being under pressure or stress, but it doesn’t always yield the best solution.

By taking our time and pondering a problem and thinking it over, we will often yield a more creative solution. More complex problems will actually benefit the most from slow, creative thinking. Have you ever “slept” on a problem and the next morning found a really creative and good solution? Of course you have. This is what Mr. Cleese was talking about. Now, this doesn’t require thinking harder, just more slowly. You have to give yourself time to think slowly. Both types of thinking are needed, however, depending on the type of problem. In fact, usually when we come up with a solution slowly and intuitively, we then validate it with more logical and rapid thinking. But remember, unconscious gut feelings don’t always have to have a logical explanation. Sometimes we just “feel” that this is the right answer.

So, when a customer says, “I have to think it over,” this may have some validity. Just make sure you keep them on track and don’t let them think it over forever.

Look for more information about my visit to the ICCM show in my October issue of “got sales?”. If you don’t already subscribe to my “got sales?” newsletter, you can do so now for free by clicking HERE.

Thanks and take care.
Russ Lombardo

Efficiency and Profits

Every business is made up of a number of different processes. How efficient each process is can have a big bearing on overall profitability. Inefficient processes require more time, people and attention than necessary. Processes that are refined and efficient minimize the resources that have to be applied to them. Look at each of your processes and evaluate them in terms of where there might be additional steps or unnecessary steps. Clean them up and redefine them. The impact on your bottom line can be dramatic if done correctly.

Must-Read Books For Sales Managers

Have you ever walked into a big bookstore intending to choose one or two new business books? It’s not as easy as it sounds. With new titles published every day, you literally have hundreds of books to choose from and probably only a vague idea of where to start. To help you head straight for the best, Selling Power talked with Chris Murray, who, as editor in chief of Soundview Executive Book Summaries, evaluates more than 1,000 business books a year and selects the 30 best books to summarize for his customers (http://www.summary.com/). Asked to pare down his list of best books even further, Murray recommends these six books, all published in the last two years, as must-reads for sales managers...Read More

Back to Sales Basics

Think salespeople—even those who have been in sales for a while—have at least the basics down cold? Think again. On average, fewer than 20 percent of salespeople demonstrate basic skills, such as the ability to draft sales plans, prospect, or make cold calls, says Kendra Lee, president of KLA Group, a sales consultancy based in Denver, and author of a book about sales skills called Selling Against the Goal: How Corporate Sales Professionals Generate the Leads They Need. Lee's research shows that only one in 10 sellers "has business generation down pat," she says. ...Read Full Article

If you need to get some sales training for yourself or your sales team, give us a call (919-559-2395) or send me an email (russ@peaksalesconsulting.com) to see how we can help. Or click HERE for more information.

When to Say "No" and Having Patience

In this month's got sales? eNewsletter, I wrote an article about how saying "No" can save your business money and why you should not discount (http://www.peaksalesconsulting.com/Newsletters/Newsletter-Vol3-Issue5.htm). I want to tell a story about how that strategy worked for me recently and how patience also paid off big time.

In an initial conversation I had with a prospect, they felt my service fees were too high. Mind you, I explained the value I offered in detail, but they just felt that they did not want to spend that kind of money. In my usual style and practice, I did not offer a discount to try to get the deal since that would undermine the value I was offering and would set a dangerous precedence. Furthermore, since this particular deal involved CRM technology, they believed that they, along with their IT consultant, could implement and customize the software themselves, not to mention train themselves on how to use it.

Roll forward 4 months. I get a call from the CEO asking for my help. They failed dismally in their attempts to implement the CRM product they purchased (which was NOT from me, but through some hence forgotten mail-order discount place). They spent months trying to resolve problems caused by a poor installation and trying to figure out how to customize it (which, by the way, isn't all that difficult). More importantly, they could not relate their business processes and work flow to how the technology worked, which is a typical challenge when trying to achieve a successful CRM implementation (Want more info on this? Download FREE papers HERE). So, without even raising the question of my fees, we scheduled consulting time for me to solve their problems for the same amount I originally quoted. Oh yes, I got paid in full and in advance.

The results were so positive that, before I left at the end of the project, the client retained me for a 3-month coaching program that costs more than the original project I just did which they originally thought was too high. When they witnessed what I could do for them, how I helped their business, and the value I provided them, he closed himself. I simply had to explain the options I offered for followup support and coaching and it was done, and paid in advance.

This is an excellent example of how a customer can achieve enormous value if they spend their money wisely on the right solution (in this case, Me!). It is so true that you get what you pay for. It is also a good example of exercising patience. I did not fold when they originally thought my fees were high. I stayed firm and did not discount and was willing to walk away. I remained patient and eventually they called for my help, albeit in desperation but they called.

In sales, you need courage to stand firm and you must have patience. Do you? I'd like to see your comments to this post, or send me a private email to russ@peaksalesconsulting.com. Good luck and good selling!

Russ Lombardo
russ@peaksalesconsulting.com
919-559-2395

New Postings Automatically Emailed to You

Now you can get new postings from Sales Guru Online automatically emailed to you, for free. All you have to do is enter your email address in the field at the top of the left-hand border (where it says, "Subscribe Me"). Then, whenever there is a new posting, it will automatically be emailed to you. This saves you time so you don't have to keep coming to this site. And, if you have a web enabled cell phone, you can get Sales Guru Online postings while you are mobile. Why not give it a try?

Russ Lombardo
russ@PeakSalesConsulting.com

Find Out What Employees Are Afraid Of

Fear keeps many workers from reaching their full level of commitment and productivity

You've tried the motivational speakers who came to deliver another touching story--it had the lasting impact equivalent to the patience of a kindergartner. You've exhausted the skills trainers and delivered a plethora of tools to enhance employee productivity. Still, you sense there is more to the problem than meets the eye. You don't get the sense that your salespeople are selling at their maximum potential. You're not convinced that your service people are truly trying to meet--let alone exceed--customer expectations. A hunch tells you that your employees could do more, if only they had the desire. Although you have provided them with great incentive programs, you're convinced deep down that they are not fully committed. ...READ MORE

Stay in Your Power Zone

My colleague and friend, Cynthia Weber, has submitted another useful and insightful article. Enjoy!
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There’s no feeling quite like being in the zone. A basketball player can hardly miss the basket from a certain spot on the floor. In baseball, a batter digs in at the plate where the incoming pitch looks as big as a grapefruit. In business, you seem to close every deal that crosses your desk. You’re on fire! Then just like that, you cool off. What happened?

In basketball, the defense pressured the shooter to a less comfortable spot on the court. In baseball, the pitcher backed the batter off the plate with high, tight fastballs. In business, a few unproductive habits crept into your daily routine, knocking you off your game. Most likely, these bad habits were imperceptible at first. Perhaps, you stopped returning phone calls promptly or let a marketing opportunity slip away. Maybe you were less disciplined about limiting distractions during your peak work time.

It happens to everyone. In sports, its called a slump. Players fight their way through it by going back to the basics, taking extra practice and viewing videotape. In business, you need to conduct a self-audit. Ask yourself what works best when youre at the top of your game. Ask what processes and systems are still producing big returns? Be rigorous in your assessment. When you’re selective, you’re effective. Get back to what you do best, and you’ll be back in the zone!

Cynthia Weber
Senior Loan Officer
American Home Mortgage
(702) 217-1472
www.americanhm.com/Cynthia.weber

Blog Readership Skyrockets

A new study from online research firm comScore Networks reveals that 50 million U.S. Internet users visited Blog sites in the first quarter of this year, up 45 percent from the first quarter of 2004. That represents about 30 percent of all U.S. Internet users, or a sixth of the total U.S. population.

The study is based on data from comScore’s opt-in research panel, which tracks the online activity of 1.5 million U.S. Internet users and reflects the behavior of consumers who visited the 400 top Weblog properties and Blog-hosting services during the first three months of 2005. Given their popularity, the study suggests that Blogs can now be thought of as part of the mainstream media.
“The fact that we found 30 percent of the online population to have visited Blogs clearly underscores the commercial importance of consumer-generated and driven media,” said Dan Hess, senior vice president of comScore Networks.

Try Not To Leave Money On The Table

When setting prices or developing proposals, some businesses set prices that are too low. The rationale is that a very low price will land the business. But in most cases, price is not the leading reason people buy. When setting prices or writing a proposal, set prices that will ensure a reasonable gross profit for your company, but at the same time gives you a reasonable chance of landing the business. Try to avoid deep price cutting unless absolutely necessary. In many cases, prices are lowered far below the price the customer would have paid. This results in nothing more than "leaving money on the table".

Start With Customer and Work Backwards

Since resources are usually limited, it is sometimes difficult to decide what to spend money on first. A simple rule of thumb might help when alternatives are difficult to choose between. When deciding how to allocate resources, begin at the customer and work backwards. In other words, view each alternative in terms of its ability to enhance the customer's experience with your company. Does spending money on one alternative enhance customer service in some way? Does it sell more products? Will it strengthen relationships with customers? Rank alternatives from most likely to positively enhance the customer's experience with the company to least. If you are looking for a second criterion for selecting alternatives ways to spend money, evaluate the alternatives based on how they could impact employee productivity.

Enhance Your Listening Skills

Arguably, the most important skill in business is listening. Some of us are better listeners than others, but we all must work on our listening skills if we are going to maximize our success in the business world. ...Read More

Compete on Added Value

Too many companies believe they can only compete on the basis of price. This leads to price-cutting and unacceptable gross profit levels. Unless your company is selling a true commodity product or service, it is not always necessary to cut price to compete. If your company understands how to deliver outstanding customer service, it is already far ahead of most businesses. And over time many customers will become somewhat loyal based on that fact. This loyalty can allow some separation between your prices and that of your competition. And there are other ways of adding value to a sale. Use your ability to differentiate your product/service as a means of competing. This will mean that sales people will have to work harder and smarter. They won't be able to simply cut prices to get the deal. They will have to sell value and benefits. Making unnecessary price concessions is one of the leading ways that businesses drop gross profit to levels that simply aren't acceptable.

What Customers Really Want

With today's cutthroat competition from big business, trying to compete on price can be a quick road to ruin for a startup company. But here's a little secret you should know: contrary to common perception, customers will not go almost anywhere just to save a buck.

A dramatic new survey of over 100,000 small business and retail customers nationwide says that superior customer service will trump a lower price.

Learn how to give customers what they want. Click HERE for the full article.

Selling Power Sales Leadership Conference

Master the 4 toughest challenges facing sales leaders today!

Join Selling Power magazine publisher Gerhard Gschwandtner, 150 sales leaders, and leading industry experts at the Sales Leadership Conference on October 26, 2005 in Washington DC. This one-day, action-packed event will give you a blueprint of practical sales management solutions you can transform into higher sales and profits.

Request your spot at this invite-only event now! Click here to get your invite.

Airlines Screwing Me Again

Ok, ok. I know everyone’s had some bad experience with at least one airline in his or her life. But I need to vent since this is what I do for a living. When I see a company provide good sales or customer service, I like to talk about it and use it as an example. Likewise, when I see bad sales or service, I like to whine like a baby with diaper rash. So here goes my latest tirade.

A couple weeks ago, I was scheduled to fly back home to Las Vegas from Reno (a 55-minute flight) after 4 days with a new client, the State of Nevada (Yes! The entire State is now my client). I arrived at the airport well in advance only to find that my 8:30pm flight was delayed about 90 minutes due to weather. About an hour into this delay, we learned that they canceled the flight completely, and there were no more flights out of Reno that night, according to them.

Click HERE to read the full article....

Making the Most of Your Time

Here's an interesting article from a colleague of mine about making the most of your time. In these days of quick results and limited time, I hope you find some of these tips to be useful. Regards, Russ
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Reclaim more of your most precious resource: Time. Outline your phone calls to minimize chit-chat; skip writing emails when a quick call will do; set personal time limits for conversations; and have an assistant sort your lower-priority communications. To stifle personal procrastination, tackle difficult tasks when you have the most energy and adopt a “just do it” philosophy. Focus on results rather than activities. Avoid wasting the first hour of each day browsing email or hobnobbing with coworkers.

Keep a daily “action diary” and manage your work. Take 20 to 30 minutes each Monday to plan the week, and finish each day by taking 10 minutes to map the next day’s to-dos. Implement the touch-once rule: If a new action item will take just a few minutes to accomplish, do it right away versus adding it to a mounting stack of tasks. Instead of multitasking, practice spotlighting by intensely focusing on singular tasks that move a project toward completion. To better manage the flow of documents, use TRAF (Toss it; Refer it (pass it along to someone else); Act on it personally; or File it).

Above all, always ask yourself “What’s the best use of my time right now?” As Ben Franklin said, “Lost time is never found again.”

Cynthia Weber
Senior Loan Officer
American Home Mortgage
(702) 217-1472
www.americanhm.com/Cynthia.weber

My New Book on Technology-Based Selling

After finishing my previous books, CRM For The Common Man and Smart Marketing, I am ready for my third. This one will be on how to use technology (specifically a Contact Manager or CRM product) to help you sell. The "you" here is targeted at the individual Sales Rep and Sales Manager, although I will probably cross over into discussions about departmental and team selling approaches, as well.

The book will cover many areas of selling and will include the sales skills and sales processes I have developed and teach in my sales training and coaching sessions. However, for each area or skill, I will discuss and demonstrate how your contact manager (or CRM product) can aid you in performing the task associated with each skill set. For instance, as you move from Cold Calling to Closing, and then to the follow-on Customer Retention activities, you will learn the sales skills needed to successfully accomplish each step, as well as how CRM can be used to help you move through each phase of the sales process.

I will also be using a popular CRM product as an example with screen shots included to demonstrate each step and point.

Consider that this book will include sections on using your contact manager/CRM to do the following:

• Track prospects, clients, vendors, etc.
• Run marketing campaigns
• Improve communications with your clients
• Manage documents (letters, emails, templates, etc.)
• Schedule your activities (versus using a wall calendar or Daytimer)
• Follow up on activities (no more dropped balls or missed promises)
• Literature distribution (brochures, contracts, corporate presentation, etc.)
• Forecast and Pipeline management
• Report on your activities (pending and completed)
• Share customer information in a team selling environment
• Improve your image as a professional, organized sales pro who always follows up
• Improve your time management and organization skills
• Improve customer retention with automatic and continued follow-up
• and more

These are just my initial thoughts on what I plan to cover. At this point, I would welcome anyone's inputs on:

1. Is this an important topic to you as a sales professional or manager?
2. What else would you like to see included?
3. What might you not want to see included?
4. Comments on any of the above topics?

So let's hear your comments please! This is your chance to help create a valuable sales tool and get some useful information out of this project for yourself, as well. Thanks.

Russ Lombardo

Selling to the right person

We always keep hearing the statement that if you "believe" in what you sell then you can sell almost anything, or you will be successful in sales as long as you believe in what you are selling. While that's true to a certain extent, I believe in a different version of this.

I believe that it's more important to sell what you believe in to the right person.

You see, while it is important to believe in your product, you still have to make sure that the person you are selling it to actually cares. Therefore, you have to make sure they are qualified and will have an interest to begin with. Otherwise, it doesn't matter how much you believe in your product, they just won't buy from you.

So make sure you have a passion for what you are selling, but before you start telling other people about it, make sure they are qualified candidates. If you don't believe in your product, you will almost be guaranteed to lose the sale. But believing in your product won't guarantee you will win the sale either. You have to believe in your product AND sell it to the right person.

Now, how to qualify them is yet another discussion that I'll have to discuss in another posting.

Russ Lombardo
PEAK Sales Consulting
919-559-2395
russ@peaksalesconsulting.com