Critical Skills For Sales Leaders - The 6 Key Elements of Wrapping Up the Sales

If you asked the majority of salespeople what "Wrapping Up the Sale" means, they will in most cases say it means to "close the sale". "Wrapping up the Sale" starts at the beginning of the sales cycle - most sales are lost at "Hello!"

Reaching an agreement or "clinching the deal", tying up all the loose ends, and getting to a yes decision is a critical selling capability in the sales process. As a salesperson, even getting a "No" decision is preferable to holding onto a "China egg" (an egg that will never hatch!). However, there is more to "Wrapping Up the Sale" than meets the eye.

The 6 Key Elements of Wrapping up the Sale

Assuming you have laid a firm foundation to the sale by qualifying your prospect, effectively discovering and helping the customer to self-discover their needs, and clearly demonstrating how your product/service meets the needs of all parties concerned with the decision, then there are 6 key elements involved in "Wrapping Up the Sale". These include:

1. Resolving concerns

2. Negotiating

3. Reaching an agreement

4. Implementation Plan

5. Follow up

6. Repeat business & referral strategy

Resolving Concerns

Prospects and customers present concerns and objections when they don't understand or agree with the claims you are making about your products and services. Many salespeople disengage from selling at this point and concede the victory to the prospect. Top salespeople, on the other hand, consider concerns and objections raised by the customer merely as a roadblock and an opportunity to question the prospect further and gather more data about their issue, with a view to further educating them on how they can help to solve their problem or dilemma.

Some concerns and objections may simply be intended to disarm you. However, if you panic in response to a concern that is a sincere obstacle, you may lose the prospect's confidence. The key is to:

First, concentrate on identifying the foundation of the prospect's or customer's concern. Is it a fear of buying something new? A pricing issue? A lack of technical knowledge? A lack of credibility or capability?

Second, because many customer concerns and objections are either covert or unspoken, or based on unclear requirements, further probing can reveal what you need to learn to satisfy their needs and wants. Objections are simply data requests - neither good, nor bad!

Third, when you allow the prospect to express the negative and unfavourable aspects of your offer, it brings the issues out into the open and allows you the opportunity understand the customer's uncertainty and provide the pertinent information to resolve it.

To help resolve issues, a great strategy is to include the customer in the solution process, as they're likely to prefer a solution in which they were involved. When you stop trying to overcome objections and instead work and partner with your prospect as a consultant or coach, you will be far more effective (and less fearful).

Negotiating

How you handle your selling negotiations will determine two key things:

Whether you bring home the sale and
At what margin you bring home the sale

Many salespeople mistakenly believe that negotiating is something you do at or near the end of the sale. Being an effective sales negotiator begins with your first contact with your customer or prospect. Your prospect is evaluating you; your company and the value of your product/service, right from the moment you make first make contact. Your goal is to be able to clearly demonstrate the value your solution will provide and negotiate a profitable agreement with the customer. There are a number of factors from your customer's perspective that have an influence on the outcome of your sales negotiation:

What is the extent of your customer's problem or pain?
How much do they want your solution?
How do they perceive the value of your expertise?
How specialised or unique is your solution?
How urgent is their need?
How much would they be willing to pay to solve their problem?
How much do they perceive your solution as merely a commodity with you as just another vendor?
How large is their risk quotient?
How much do they like you and/or your company?
What is their timing need?
How much do they need to WIN?
Can they approve the sale?

When you consider the above points, you see that your role as a negotiator proceeds all the way through the sales process. Your role is to constantly probe and seek out information that may be invaluable later should issues like price, terms, quality, delivery, etc. have to be negotiated. Don't wait until you're in the last round to begin negotiating! Remember that as a sales negotiator it is very important for both you and the customer to come away feeling positive about the experience. At the end of the day, the chances are very good that you will want, or need, to do business together in the future.

Reaching an Agreement

Assuming you have laid the groundwork correctly by uncovering and answering the prospect's needs and concerns during the diagnosis and capability presentation phase of the sales process, then "closing the sale" becomes a mere formality as opposed to an overworked and stressful affair for both buyer and seller. If you are struggling to close sales, you will need to examine your current methods for discovering your customer's needs and requirements and the way you demonstrate the value of your product or service.

Before you attempt to "close" the sale ask yourself "Do I know..."

The problems the customer wishes to solve
The objectives/goals the customer wishes to achieve
Company issues that will be impacted by the decision
Personal issues that will be impacted by the decision
Financial issues - What funding is available to solve these issues? What or who else is being considered?
Time frames
Buying influences - Who makes and impacts on the decision?
Decision Criteria - How are decisions made? What are the Next Steps? and
Have I clearly demonstrated my and my company's capability to meet the needs and specifications of the customer?

Implementation Plan - Sell back from the date they need it

When salespeople and their managers get together and discuss where the "sale is at" within the sales cycle, they tend to focus on what the next steps are to bring the sale to a conclusion. Their focus is on the "close date". However, to the customer, what is most important is the implementation or use date. It is vitally important that you work with end users and buyers in a collaborative effort to identify and work towards their implementation date. In other words, find out when your customer needs the product or service you are selling and then work back from that date to make a case for why closing now is important.

"Salespeople sell forward - but buyers buy backward" Skip Miller

The professional salesperson:

Works with the customer's buying schedule, which begins from the implementation date.
Identifies the activities and actions the customer must accomplish prior to the implementation date.
Gains agreement from the customer on the actions they must accomplish prior to the implementation date.
Sets their selling plans, scheduling them to align with the steps in the customer's timeline, working backwards from the date of implementation.
Uses the implementation date as a means of accessing senior managers and users (to clearly understand their implementation and other core issues).
Selling to the customer's implementation date allows you to accurately set your sales milestones and forecasts. It is also a great tool for bringing your proposals to life because it will include implementation considerations when many organisations only consider implementation after the purchase

Follow Up

Much of your success in selling can be attributed to what you do after you've made the sales call or the sale. Constant and persistent follow up is the key.

We work and live at a very hectic pace and the prospect or customer who hasn't called you back might well be interested in your product/service, but they just haven't gotten back to you yet. There is a great quote from Patricia Fripp, which says, "It is not your customer's responsibility to remember you, but your responsibility to ensure they never forget you."

The frequency and amount of follow up required is very dependent on the complexity of what you sell and the lifetime value of a customer in your industry. Research demonstrates that most potential customers or prospects won't buy the first time they meet with you. On average, they have to encounter a marketing or sales message on at least 5-7 occasions before making a purchasing decision. This makes follow-up an essential ingredient in the selling process.

Mark Victor Hansen said, "Don't think it, ink it". When you rely on your memory you are very likely to forget. Imagine for a minute that your brain was like a PC. What happens if you open too many windows on your PC? Eventually the system gets clogged and clunky and in some cases will just freeze! Something as critical to your sales success as follow up, should not be left to your memory; it simply doesn't work. The best and most effective sales and business people have developed their own follow up system to ensure that nothing falls through the cracks.

Follow-up isn't just about selling; it's about developing relationships.

Efficient follow-up demonstrates that both you and your company have your acts together and really care about ensuring customer satisfaction. However, a large percentage of salespeople don't conduct sales follow-up. Afraid of what they might hear, they avoid the follow-up, often blaming their busy schedules for not getting to it.

During follow-up, it's important to ask open-ended questions and then listen. Asking open-ended questions gives you an opportunity to gather more information from the prospect to pinpoint his or her needs accurately. Ask questions that begin with; who, what, when or how many. Ask something that will engage the prospect and get them talking. Ask "How did you feel about what was included?" as opposed to "Did you get my proposal?" Or "Did it all make sense?"

Your follow-up should convey:

I am still interested in you and your current concerns and opportunities.
I have something specific and valuable to contribute that would benefit you and or your company.
I look forward to hearing from you soon.

A consistent, well-executed follow-up system that keeps past clients and customers close is the most effective method of ensuring a steady flow of referrals and repeat business. Whatever follow-up system you adopt, make sure it's easy to use or implement. All too often, when the system becomes too complicated or unwieldy it gets sidelined and placed in the "too hard" basket. A good follow-up system is essential for building a healthy pipeline. Take the onus off yourself as far as trying to remember things and build a system to do it. If your company already has an effective CRM system, use it. If not, develop your own. It is up to you as a responsible salesperson to drive the sales process; therefore, you must drive your own follow-up system.

Repeat Business and Referral Strategy

Today the best salespeople, selling to both Business-to-Business and individuals, are constantly looking to increase their focus and effort on attracting repeat and referral business. Most astute business people understand that customer loyalty is the most vital aspect of their business because their organisations will live or die from repeat business. No company can exist without customer loyalty and retention.

Customer retention is well known to be much cheaper than customer acquisition. As a result, top salespeople place a big focus on their customer retention and customer relationship management strategies. They constantly look at improving the share of business coming from their existing customer base.

Information technology helps both companies and their salespeople to achieve customer loyalty by providing tools for analysing customer data. This assists with making informed decisions, as well as managing the customer relationships from the sales process all the way through to fulfilment and ongoing follow-up support.

A customer's repeat business is earned by the salesperson that continually provides their customers with what they want. Without effective strategies or processes for consistently offering customers more of what they want, repeat business is earned less frequently. When you communicate news and offers frequently to both past and present customers via telephone, mail or email, it generally increases the frequency of repurchase and is a powerful step salespeople must take to grow their business.

Effective referral strategies

Referral marketing is a vital part of your sales strategy that you cannot afford to do without. Every salesperson knows that one of the most effective ways to grow their business is through referrals, yet most salespeople do not have a means of generating an ongoing source of referrals.

Referrals work because they come from a trusted source that has already benefited from your product/service and yet has no vested interest in your business. The recommendation is independent and unsolicited. In sales terms this means a rapid conversion rate. The sales process is rapidly accelerated because the service or product has already been tried and tested by a reputable third party.

As a salesperson asking for, and getting, referrals is a powerful and low-cost way of building or developing your career. It is a simple approach, which feeds on its own success, but has to be built on secure foundations. Most salespeople don't get enough referrals because of one obstacle - they don't ask for them! An effective referral generation program will take care of this problem by creating a system that generates a steady stream of referrals from your network.

Referral marketing is simple: if you provide excellent products or services that people need, they tell others of their experience. Those others will trust you and want to do business with you because of the recommendation of the original, satisfied customer.

As one of Australia's leading authorities and coaches in sales management, Ian Segail has been involved in the coaching, training and development of sales managers and salespeople for over two decades.

Drawing on 25 years of experience in sales, sales management and leading an HR and training team, Ian brings a strong dose of fiscal reality and practicality to his works as a Sales Performance Coach.

Engaging directly with business owners and both novice and experienced sales managers alike, across a wide variety of industries and selling disciplines, the focus of Ian's work is to transform sales results for companies by improving sales management practices.

Ian is the author of "Bulletproof Your Sales Team The 5 Keys To Turbo Boosting Your Sales Team's Results" and a number of business articles, business reports and white papers including "The fish stinks from the head!" and "Why Sales Training Doesn't Work."

Ian has an insatiable hunger for studying selling and people management and has passionately pursued answers to the question "How come some people can sell and most can't?"

Download Ian's latest white paper on how to recession proof your sales team in the next 90 days from http://www.salestutor.com.au/Content_Common/pg-Salestutor-Tools-and-Resources-Articles-and-Whitepapers.seo

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Elements Of A Successful Sales Performance Management System

The components of a successful sales performance management system include first of all having well defined revenue plans and revenue and margin objectives. Often times, this includes having bookings objectives for your individual sales people. Having well defined sales territories relating to those targets. And of course, having a strong, well documented plan, in terms of who your target markets and customers are within your territories.

In addition to having a revenue plan, other components of the sales performance management system include a job description that is expectation based where the outcomes are clearly defined are very important in terms of overall requirements for success in the job.

The next component of successful sales performance management system is actually having individual revenue margin and booking objectives for each of your people. Typically, this is done an annualize basis with your people going through a planning cycle once you've defined your overall company's revenue plans. You should put together targets, annual revenue and bookings goals for each of your salespeople that are tied to that overall revenue plan. And often times you'll be doing a measuring and monitoring of performance relative to those actual revenue goals systematically on a monthly or quarterly basis in addition to that.

The next element of a successful sales performance management system is having an annual territory plan that your salespeople are working towards. This territory plan should be developed in concert with sales management in your sales people and it should list not only your major objects but also key accounts that you're targeting, the strategies to get into those accounts, should probably have a section about both new business development as well as account maintenance or account management and also have a section related to actual channel management strategies that your sales people are going to be carrying out. This is a once page document that can be put together in a template and passed out to your sales people and used as a tool for them to conduct annual sales planning.

Again, having a plan in place allows you to use that plan as a tool for measuring and monitoring performance against that plan and having ongoing discussions with your sales people related to how they're progressing against the objectives and the overall plan that they've set at the outset of the year.

The next element of a successful sales performance management system has nothing to do with actual goals objectives or plans, but everything to do with sales management's role in working with individuals on the sales team. This is the most critical element. Sales people are only as good as they are being managed by sales management. A lot of companies expect sales people to be left at their own devices, but just like any other team, sales people need to be managed and the foundation for that, of course, is having somebody in place in your sales management function who is willing to work closely with their people.

The role of sales management in developing and using a sales performance management system is probably most principally based upon the notion of sales management working closely with sales team members on an on going basis and establishing a relationship of trust, confidence, and mentorship. And that relationship built between sales management and its team is fundamental to empowering sales people to be successful in their jobs.

The role of sales management is to track sales activity and measure and monitor performance and to coach sales people to success. Tracking activity can be done very easily when your company has a successful CRM implementation. We use salesforce.com to develop customized dashboards that give management a quick snapshot of each of their sales people's activity in terms of amount of prospecting, amount of actual account qualification and actually being able to measure and track the activity of the sales people as it relates to moving deals through the actual sales process towards close.

Measuring and monitoring performance isn't just about really tracking activity but in a deeper sense, getting behind the activity to understand what it is that's working and what's not working with each sales person's territory. A good example of that is working with accounts. Is the sales person doing a good job of mapping out an actual customer prospect, in terms of people, decision makers, influencers and decision making processa and then working hard in order to touch all the bases to develop and advance the sale with all of the different constituents inside a specific account. This is where sales management needs to work deeply to measure and monitor sales performance and this is not a trivial task. It requires active engagement from sales management in order to do this.

Another foundation of good sales management, of course, is coaching your people to success. There is all sorts of schools of thoughts out there about how to best work with people but in this day and age, which is one of empowerment, people want to feel like they're involved in the decision making processes of their job. They want to feel like their opinion is heard by management. So a more enlightened approach to coaching your people today in today's management environment is really working with sales people to help them to understand and reach their own conclusions about how they can improve their sales performance.

Coaching requires active engagement which requires in turn, time spent seriously involved in a sales person's day to day, week to week routine activities. There's a number of different ways to do this, of course. The most effective way is spending one on one time with your sales people in the field actually visiting accounts, strategizing them, talking about and preparing for sales calls, going on those sales calls and then debriefing after those sales calls to talk about what happened, what was learned and how could the sales call have been improved. Most sales people learn by doing, and so the active coaching is the art of getting out with your people into the field and then actually working with them to help them to understand how they can enhance their sales performance and their sales technique.

Another element, in addition to regular sales visits, is frequent phone contact with your sales people just to check in with them to find out how things are going, and frequent informal discussions with sales people to just show them that you care and also giving them feedback on problems and challenges that they are facing on specific accounts as they raise those issues to you. Knowing which accounts your sales people are working on is the foundation for asking them questions on a regular basis about how things are going on those accounts and showing your sales people that you are actually engaged with them in an active relationship and are interested in helping them to find ways to win. When your sales people win, your company wins.

Yet another element is holding regular sales meetings. Some companies only do this on a very infrequent basis and the sales meeting should be a primary component of your sales performance management system. By formalizing sales meetings and holding them on a regular basis, you're showing your sales team that you're creating an environment of accountability and information exchange. Sales meetings can be used for a number of purposes including information gathering, finding out how your sales team members are performing.

Providing training for your sales people which is very important. Providing ongoing sales training is a way to make sure that your sales people are always sharpening their saw and that you're giving them the latest tools in order to improve their sales performance. So typically, we work on sales technique training as well as product training and customer and market training as well. Other things to do in sales meetings include providing recognition incentives and rewards, taking time in your sales meetings to praise and celebrate the successes of your people is a great way of showing them that you really do care about their performance and you're willing to celebrate those success and give them recognition and rewards as appropriate for the successes that they have. So holding sales meetings is an important part of making sure that you have a motivated, high performance sales team that's working together and is accountable for its activities.

The more that sales people understand that they are accountable for producing themselves and are held accountable through these different vehicles that we've talked about the better your sales performance is going to be from your people. So building and deploying a successful sales performance management system is something that a company cannot live without and needs to be taken very seriously.

Of course the best sales performance system is only as good as the people who are running it and when it comes right down to it, running a high performance sales team is all about good leadership. What is good leadership? That's not the subject that I want to cover here but I certainly do want to say this: Leadership is about passion, about vision, about connectedness, about motivating people, about finding out what it is that unlocks the door to people's special performance and help8ing them to realize, open that door and go there. So in some way, building a successful sales performance management system is a key to accelerating your company's sales and as your organization continues to grow, it becomes more important in order to achieve high performance scalability and repeatability in your processes.

Cube Management helps companies accelerate their sales, by providing the Sales & Marketing talent they need to grow their business. Cube is a leading recruiting and consulting partner to mid-market and emerging growth companies in the technology, manufacturing, healthcare and business service sectors. We work across the spectrum of Sales, Marketing and Business Development, providing holistic solutions that drive revenue and profit success. Cube Management combines Strategy, Process and People, to produce great results. Download the Cube Management Recruiting Guide and the Cube Management Inside Sales Guide.

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