5 Ways to Stop “Heat Loss” in Your Sales Process

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Last summer I was doing some research for a speech I was giving about the role of technology in the “flavor experience.” I was fascinated by the latest advancements in commercial cooktops. With the old way of cooking, you light a gas burner and place the pot or pan on the flame to heat the contents. In the new way of cooking, vessels are heated via magnetic induction. Not only can you achieve rapid increases in temperature, but there is virtually zero “heat loss” and more “thermal efficiency.”  It turns out when you use an open gas flame, 70-80% of the usable heat is lost into the environment. Only 20-30% of the heat makes it to the pot or pan.

Ever since I’ve learned this, I’ve been relating this phenomenon to “heat loss” in the context of selling. Just stop and think for a moment how much energy is wasted by the average sales team: by pursuing low value customers, by failing to keep track of every last detail, and from poor follow up. What if the same “heat loss” percentages that apply to conventional cooktops also applied to conventional sales teams? That got me thinking about the importance of identifying (and then drastically reducing) the “leaks.”

If you want a 1-to-1 return on your time, money and energy, (zero heat loss), you need to first identify the specific areas where heat loss is occurring. Here are five of the most common ways to stop value leakage in your organization and maximize the high cost of having a sales team.

1)      Stop treating all customers as if they had the same value to your organization.

Failure to embrace the 80/20 rule may be the single biggest source of heat loss for a sales organization. You must put in the time and research to identify the most attractive and responsive accounts. Focus the majority of your time and energy where it will make the biggest impact to your organization. Identifying the best prospects should never be a matter of opinion or “gut feel.” The DATA will tell you where to aim so aim precisely!

2)      Set specific goals and have a system by which to measure progress against them.

One of our firm’s strategic partners is GreatVines, a CRM provider with over 10,000 sales users. Tim Jones the Co-Founder likes to ask, “What 3 strategic initiatives must we execute to ultimately achieve our goals?” Tim goes on to say you need KPI’s that are true leading indicators (as opposed to lagging indicators). Eliminate heat loss by making sure your goals and key measurements are perfectly aligned with your business objectives.

3)      Track every last detail of ALL conversations, activities, events, and commitments- with your mobile device.

Let me be 100% clear about something. It is 2016. If you are not using a cloud-based CRM system in your organization, you are experiencing major heat loss! Maybe you are currently keeping track of details but how are you doing it? In Excel spreadsheets? In Outlook? God forbid, on a legal pad? Even if you’re diligent about it, it’s impossible to share that information across your entire organization. Meanwhile, your competitors are doing all of this seamlessly – with their cell phones and tablets. We live in a world where nothing should ever fall through the cracks. Zero heat loss. Feel free to join the rest of us at any time.

4)      Systematize collaboration across your organization.

Ask yourself this question and give yourself an honest answer: “Is teamwork elevated to an exalted status at my company or is it seen by most as a hindrance to productivity?” Do people share info & resources or hoard it? Great gobs of heat loss occur every day because companies have neither the culture nor the technology to collaborate across functional lines. I challenge you to take 1 hour of your day to research two things: a) why so many companies utilize popular collaboration apps like Slack, Base Camp, and Chatter and b) the benefits of having a cloud-based CRM system. The ultimate goal here is to pursue and retain the best customers faster and with greater ease – with zero heat loss!

5)      Don’t step over a dollar to pick up a dime.

One of my favorite sayings is “You can’t save your way to prosperity.” I see many companies paying the equivalent of $100 per hour to a top tier sales pro and then asking him or her to do $20 per hour administrative work. Much heat loss is experienced when salespeople do not have adequate tools and support to do their jobs. I’m not talking so much of admin support people as I am providing your sales team with the latest technology tools (and the training in how to use them effectively). These tools not only cut down dramatically on the amount of time spent on administrative tasks but they provide rich, actionable data to everyone in the organization. Why should a salesperson spend an hour preparing reports and updates to his manager or his marketing team when the info can easily be only a few mouse clicks away? Is CRM expensive? “Expensive” is a relative term and the only way to answer the question is to ask a another question: what is the return on capital invested?

I hope this post has caused you to think more deeply about ways to identify “heat loss” in your sales organization. Identifying them and taking steps to reduce them is a very cost effective way to do more with less. There’s an old Vaudeville joke about a guy who goes to the doctor complaining about a sharp pain in his eye every time he drinks coffee. The doctor replies, “Take the spoon out of the cup.” Start looking for the spoons in your organization.

4 Signs Your Company’s Sales Culture is Stuck in the 80’s

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Let me say right off the bat I have no problem with the 80’s. I was in my 20’s all through that decade and I look back fondly on the era. Perhaps you do, too. But, if your (or your company’s) sales approach, tools, and processes are still the same as when Madonna ruled the airwaves and you carried a Walk Man everywhere, I suggest take a good long look at the calendar. It’s been 30 years for crying out loud. What worked then won’t work now. So, here’s a quick test to see if YOUR sales culture is stuck in the 80’s.

1)    You focus on products and product knowledge

There’s no question every salesperson should have a solid working knowledge of all the products in their portfolio. But if your company’s sales training places a heavy emphasis on product knowledge (along with the accompanying belief this will improve sales), you’re seriously delusional.

There are two problems at work here. The first is that many buyers see the things they buy as commodities, meaning completely interchangeable. This is why there’s so much pressure on price. If all products are the same, the only differentiation is price.

The second problem is buyers don’t need sellers to tell them about their products’ attributes. In 1985, they did.  But, thanks to Al Gore, any savvy buyer in 2016 can (and does) conduct his own research – right from his desk. The idea that buyers need a live person to fly to their city, rent a car and hotel and then appear at their desk in person just so they can talk about their products is insane. What an incredible waste of time and resources!

2)    You use phrases like “push” and “pitch.”

Whenever I hear the word “push” in the context of sales and marketing, I reflexively expectorate in my own mouth. Are you kidding me? High achievement in sales has nothing to do with exerting force or being aggressive and everything to do with building relationships and adding value. If I have to explain this to you, I know what to buy you for your birthday: a calendar. The year is 2016. And for heaven’s sake, read Daniel Pink. Read Seth Godin. Read Malcolm Gladwell. You’ve missed a lot of great books in the last 30 years. I suggest you get busy. And unless you’re presenting a major business deal to a group of angel investors or you’re a guest on Shark Tank, you’ve got no business using the word “pitch.”

3)    You measure number of sales calls made

Whatever you measure, you’ll get more of.  Which would you rather have: more sales calls or more sales? Beware of the lame assumption there’s somehow a correlation between activity and achievement.  Nonsense. Fiction. Healthy, profitable sales are the byproduct of a much larger relationship. Why not measure the number of engaged customers you have? We’re talking about people who repeatedly use your products on a regular basis. Do you know how many of your customers have been with you for 2 years or 5 years or more? Do you know the lifetime value of each customer? Do you know what it costs to acquire a new customer? Now, these are great things to measure. Stop measuring sales calls. When the horse stops breathing, it’s time to dismount.

4)    Lots of time spent preparing presentations

Whenever I rail on about the futility of presentations, I always receive wide-eyed responses of indignation- but only among those that are “stuck in the 80’s.” The fact of the matter is most salespeople just don’t know any better. No one has ever taught them differently. I like what Jeff Thull says in his brilliant book, Mastering the Complex Sale. Jeff says that most presentations are a waste of time because they’re plagued with three fundamental problems: content, timing, and audience. They present too much, too soon and to the wrong people. It’s amazing how much time some salespeople spend preparing presentations. Just like I mentioned above about the focus on products and product knowledge, there’s this mistaken assumption that success in sales is about giving people information. It might have worked in the 80’s but it’s virtually pointless in 2016. That time would be better spent discovering needs and designing solutions collaboratively with the client. The “modern” way of selling is not about peddling information. It’s about engagement and adding true business value.

If you’re bothered by anything I’ve said here, it’s not entirely your fault. Well, most of it is your fault because you haven’t taken the steps necessary to improve and hone your skills in order to keep up with the times. But, it’s not entirely your fault. Most companies who employ sales teams not only perpetuate the outdated sales methods of the past but reinforce them. The good news is it’s never too late to “upgrade” your skills. I’ll leave you with this one final thought: “If you can’t change the company you work for, change the company you work for.”