Interpersonal Business

Vol. XX

Dear Manager,

In a conversation with one of my associates a few years ago, she referenced a recent set of circumstances relating to her development of a new customer. With a new account lead in hand, she began the process of following it up. After her third effort to reach this client, she was successful in scheduling an appointment. The directions she was given seemed a bit odd; of particular concern was the customer’s suggestion to “… just follow the corn signs along the highway” to her place of business. After over an hour of driving, she saw the farmhouse surrounded by a pumpkin patch that was, without question, her destination.

With a roll of the eyes, and a personal admonition for not better qualifying this lead, she headed up the stairs to introduce herself. The woman who greeted her was a delightful individual, sincerely appreciative of a sales professional’s time. While her purchasing objectives looked to be modest, the associate realized that this was the client’s first step in fulfilling a life-long dream.

As you may have guessed, after a few hours of sharing industry basics and product knowledge, the associate returned to her car with little financial reward for her efforts. On the drive back (past the corn signs), she remembered her first difficult steps into the business world. She began to wonder what path her career might have taken had it not been for the help and support she received from others along the way.

She realized it had been a long time since she had allowed herself to do what one could easily assume to be a wasted and ineffective use of time. It was one of those times in life (we’ve all been there) when we are hit squarely in the face with our own reality. All good sales professionals are single-minded, driven, and accomplishment/reward oriented. On occasion, all good sales professionals are set back on their heels, in essence to achieve a much higher priority! It is so common in life for all of us to forget. This salesperson was pleased to remember, and to give back.

As managers, all of us have been in the position, either on the phone or in person, of being asked for a gift of our time. With all the demands on our day- to-day schedule, it can become increasingly difficult to take a few moments for meeting this very definite need. It always seems to come at the least opportune time.

FINDING THE “RIGHT” TIME

Let’s be honest with ourselves. Have we stepped up to our responsibility to exceed or even pay back the efforts of those who, over time, have greatly impacted our own success? All of us can remember those individuals who had the time, and made a critical difference in our lives. In most cases, their efforts are not fully realized until years after the fact, when we can then see their greatest qualities in our own efforts. Now is the time to consistently share a few moments of time with those outside the needs of our own objectives. This is who we are; this is why we are here.

It is generally around the approach the New Year that we all have a sense of accomplishment and renewal. There is a much greater awareness and appreciation towards those within our “circle of influence.” For me, it is a time to realize that perhaps I have not shown enough appreciation. Have I been effective in carrying the feelings of the season with me on an annual basis as well as I could have? I guess from a business and personal perspective, it is a time of self-accounting. How does the ledger look in the plus and minus columns?

As a Sales Professional, have 99% of your conversations with your manufacturers become related to immediate problem solving and meeting today’s objectives? In retrospect, how many of these issues, and your reactions to them, now seem much less important? How many of these issues can you even remember? How often do you take the time to call your manufacturers for the sole purpose of letting your appreciation be heard, and to acknowledge your understanding of the value of this relationship to you individually? Take the time to call and share a bit of your understanding of their needs. The commonly untapped resource of your field-level knowledge has a responsibility to be shared. The time is now.

As a Manufacturer, have you taken full advantage of the opportunity to acknowledge and reward the efforts of those individuals and organizations that are consistently dedicated to enhancing your products in the marketplace? Is it much more common to make the difficult calls of reprimand than it is to simply call in appreciation for a job well done? Have you established a call cycle to those organizations that have met your monthly, quarterly or even annual mutual objectives? Are you committed to the relentless search for a real understanding of your sales team, and how to consistently meet their needs through your own objectives? In all honesty, this is an ever changing and evolving commitment to success.

I think we could agree these are all well-founded objectives. They become increasingly difficult to implement in the fast-paced, catch-the-tiger’s-tail world in which we live. We have all watched another business executive at an airport: the walk, the intensity in their face, and the tone in their voice. Have you wondered what “forces” may have brought about this posture? Would others find these qualities in our demeanor?

IS IT POSSIBLE TO REMIND OURSELVES TO TAKE LIFE JUST A BIT SLOWER, TO TAKE OURSELVES, EACH OTHER AND OUR PROFESSIONS JUST A BIT LESS SERIOUSLY?

Several years ago, a story was related to me about an individual in my industry whom I had always greatly admired. Sheldon Babyatsky was the Vice President of Sales for one of our paper product manufacturers. During the holiday shipping season, Sheldon’s assistant rushed into his office, frantically announcing that a very large Christmas order for Macy’s Department Store had somehow been misplaced. It was now very late in the season, and his assistant was convinced that through this blunder they had lost the entire sale. Sheldon calmly turned to his assistant and responded, “We sell paper, not plasma. There’s nothing here that’s life and death.”

Our careers are important, and we would not have become successful if we did not approach each day with a sense of urgency to accomplish our given tasks. “Paper, not plasma.” Sheldon’s words echo through my mind on many occasions, and are worth remembering during our perceived moments of crisis. What may seem so imminently critical and all consuming is, in most cases, no longer significant in a few days. In a few months, it’s gone and forgotten. We must also remember that our success has come from the support of someone along the way who made time to spend with us. I would even guess that all of us can remember the individual or individuals by name. They must have helped to fulfill a dream.

Personal Regards,

Keenan

INTERPERSONAL© is published by INTERPERSONALBIZ.COM, Keenan Longcor, Editor, ©2008. Duplication of this publication is permitted for both personal and business use. Excerpts may only be quoted with acknowledgment of INTERPERSONAL/INTERPERSONALBIZ.ORG as the source. For re-publication rights, please contact the editor at KEENAN@INTERPERSONALBIZ.COM

Vol. XVI

Dear Manager,

As managers, we have all contemplated the amazing differences in the varied abilities of our sales staff. Be it the end of a week, month, or a given year, the variations in performance is nothing short of perplexing. The analysis can go on and on. We review the nature of each territory, the maturity of the salesperson and their account base. We struggle over the need for further training and /or support. How do we raise the level of the lesser achievers to the level of those associates who consistently carry the organization?

Twenty years ago, very early in my sales career, I learned an invaluable lesson about myself and my own ability to perform at a higher level than I had in the past. I have shared this experience with many an associate. How better to develop a thought process and share a concept than by telling a true story about oneself? Similar to sharing with my son the experience of my first kiss, how can anyone feel threatened?

At this early point in my sales career I had been servicing the states of Oregon and Idaho for two years. My industry was, by today’s standards, in its infancy. I had enjoyed a reasonable level of success, and felt I was coming into my own as a salesperson.

I had learned the thrill and exhilaration of a very successful week, and the disappointment when it was something less. I consciously developed a goal or standard for a weekly sales dollar volume I wished to achieve. While I knew my initial objective of $2500 a week in sales would be a challenge, I also knew how hard I was working. Certainly there were limits to what one person could accomplish!

I soon found myself reaching this goal on a fairly consistent basis. I also found myself becoming a bit complacent if the goal was in sight by mid-Thursday afternoon. Once again I would convince myself how hard I was working, and the obvious limitations of one individual’s ability to perform. I became satisfied with my achievements.

Then came a week when, for a number of reasons, I achieved sales in excess of $5000. In all honesty, I was startled! How was this possible? I realized how good it felt, but I can also remember feeling threatened by my previous set of standards and conclusions. Had my recent success been just a fluke? Was this new standard of performance indeed possible? I enjoyed a second and third week, each time reaching what had previously been an unattainable objective.

Not only had my sales increased dramatically, but I also realized that additional hours were not necessarily required to accomplish this new standard. Now that I knew and accepted its attainability, it was only a matter of developing the work habits to accomplish the task. When the weeks ahead produced similar success, I was fine until my first $10,000 week … I have since realized I was trapped in my own expectations.

WHAT IS THE BEST, AND HOW GOOD IS GOOD?

We have all seen a very similar scenario over and over in our management careers. How can I possibly convince someone there is more opportunity at hand if they are convinced that what they have accomplished is the best there can be?

We are all guilty of coming to conclusions in life. Our standards of what is the best are based on a current frame of reference and our own experience up until now. When one concludes their current standard for the best is in fact the best, they will never fully know what the best truly is. In essence, the best is always yet to be found. To clarify, the best can be found, yet we will never know for sure if we have experienced it.

This concept of “the best” can apply to all aspects of our life. It applies to wine, relationships, and song. It also applies to management, and the personal expectations of those associated with us. We search for it, we enjoy it, we aspire to it, we expect it and yes, at times, we even take it for granted. I have sometimes been persuaded to believe that my performance, or that of those around me, is the best that it can be. With time, it has been proven to me in every instance that this conclusion was premature.

Do not allow yourself to accept that a current situation cannot be improved upon should the need or opportunity arise. This does not mean that your current environment is not good, or that it shouldn’t be appreciated, protected, and held in very high regard. Is there always the opportunity for improvement? Absolutely!

A few years ago, I decided to create a new territory that had been, for various reasons, a neglected portion of an existing territory. Because of the geography of this region, and its limited population, it received very little attention. It had become a distraction for the current representative; it was logistically and financially outside the territory’s area of emphasis.

In the interviewing process, I approached the new territory very objectively, referring to it as a part time situation. I hired a new associate and was pleased with their initial progress. For a couple of reasons, personal in nature, two very capable representatives came and left their position in this region within the first year. I began to second-guess the territory’s dynamics and my initial decision, wondering how this region was going to support a capable sales associate.

Because of the transitions, the potential of the territory had been diminished further than when I had begun the process. I’m sure we have all been there. With some reluctance, I proceeded in hiring a third individual for this region. Once again I was pleased with the selection and, in fact, had followed a hunch and hired an individual without any previous sales experience.

BOOM! I struck gold. Their impact was immediate and nothing short of startling. Within thirty days their sales doubled my most realistic expectations. Within sixty days this associate contacted me suggesting this territory was more suited for two associates, and that she had an acquaintance with sales experience that wished to apply!

This is a recent and true story. Management often sees accomplishments in sales and performance that cannot be explained. At both ends of the scale it’s as if on occasion all of the standards that have been set no longer apply. These dynamics are very real. Learn from them, and maintain high standards for yourself and all those you are associated with.

Management relies on realistic and reasonable objectives. In this case I had allowed myself to lower mine. The “human element” is fundamental to defining all expectations. Unfortunately, this element is a process rather than a science. There are no sure things relating to human expectations, only experience and confidence that your judgment will bring you as close as possible to reality.

Share this, or a similar personal story, with your sales staff. If you have an individual who has reached a plateau, set up a specific challenge and incentive for a defined period of time. Share very specific circumstances and achievements in similar regions. Regardless of the conversation, this individual will first need to believe it can be accomplished. Once they have attained this new objective, only then will they fully develop expectations for themselves.

Personal Regards,
Keenan

INTERPERSONAL© is published by INTERPERSONALBIZ.COM, Keenan Longcor, Editor, ©2008. Duplication of this publication is permitted for both personal and business use. Excerpts may only be quoted with acknowledgment of INTERPERSONAL/INTERPERSONALBIZ.ORG as the source. For re-publication rights, please contact the editor at KEENAN@INTERPERSONALBIZ.COM

• They are very well organized, and have developed a high level of strong>consistency in servicing customers on a 6 to 8 week cycle.

• Finally, these individuals have been able to tighten their schedule enough to allow for just one more appointment each day on a consistent basis.

YOU WOULD ALSO FIND THAT THESE INDIVIDUALS IN VARIED TERRITORIES EARN 25% TO 50% MORE INCOME.

My initial goal is for you to develop the “thought process” that will allow you to write 20 orders per week. A full-time sales associate should expect to average at least 4 orders per day. TWENTY ORDERS PER WEEK should be a major and consistent focus. Initially, this may seem difficult, but analyze it as it relates to a typical day.

To adequately fill your schedule, begin by setting 2 to 4 appointments each day. Never leave without scheduling your next appointment 4 to 10 weeks in advance. Always be prepared with a “hook” or objective for the customer’s need to schedule their next appointment. This could be a reference to a new product introduction, an upcoming season, a need for inventory and best seller reorder, or simply to introduce a new manufacturer.

Suggest that it is in your customer’s best interest to see you on a much more frequent basis. This will minimize best seller outages, and promote better cash flow with smaller but more consistent orders.

How can your customers deny you more frequent and smaller orders?

You will find their orders to be similar in size and their annual sales will soar. In all cases, you have to develop the sense of urgency to schedule that next appointment.

If only 2 of your appointments result in an everyday and seasonal order, or orders with 2 separate manufacturers, you have achieved your initial goal of 4 orders per day. With the quality of manufacturers we represent, all of us should be able to schedule 2 appointments and average 2 orders with each appointment.

Set your objective to develop 80 customers who on the average will purchase 2 manufacturers from you. (Some accounts will purchase 3 or 4, others will purchase only 1.) Then, set a goal to see each of these customers on an average 8-week cycle. (Some you will see at 4 weeks, others at 10 weeks.)

THESE 80 CUSTOMERS AVERAGING 2 MANUFACTURERS ON AN 8-WEEK CYCLE WILL REPRESENT 960 ORDERS PER YEAR, OR 20 ORDERS PER WEEK.

It’s an interesting formula that works! It does not take into consideration new account development, additional seasonal orders and accounts that order on a more periodic basis, which will only increase your daily average above 4 orders. Begin by setting an initial objective of 3 orders each day with an eye toward that 4th order. If you are currently averaging 4 per day, is there an opportunity to achieve a 5th order?

This process has already been proven successful within our organization. The key element is not to rely on only two appointments each day to attain your goal. The objective is to consistently have 3 and 4 appointments on a daily basis.

It is accepted that manufacturers of everything from fork lifts to chewing gum all expect growth in a given year. These fundamentals, taken to heart, will provide you with the annual growth anticipated by this organization.

Now is the time to incorporate the elements of this program into your daily routine. This should not require additional hours beyond those of a territory serviced by a full-time sales associate. Please take this challenge to heart. It should be your highest goal. Define your target and expect it to happen.

Using a concept such as this will reinforce your objectives as a manager. Fairness and consistency are critical to any program’s success. Bring visibility to your objectives. Use them in your conversations and future correspondence. Take advantage of the fact that your sales force is focused on a single thought process. Finally, be sure to acknowledge and reward those who achieve their goal.

Personal Regards,

Keenan

INTERPERSONAL© is published by INTERPERSONALBIZ.COM, Keenan Longcor, Editor, ©2008. Duplication of this publication is permitted for both personal and business use. Excerpts may only be quoted with acknowledgment of INTERPERSONAL/INTERPERSONALBIZ.ORG as the source. For re-publication rights, please contact the editor at KEENAN@INTERPERSONALBIZ.COM

Dear Manager,
Over the past five years we have seen a very clear and obvious shift in the marketplace for most consumer products. Customers we once relied upon for growth and expansion may no longer exist, let alone be expanding. The question now becomes are we willing to accept the market for what it is and adjust our strategies to pursue product placement in channels we have not considered in the past? Or, are we convinced the former market will adjust itself, bringing back the good fortune of days gone by? At the very least, we must transition our products and marketing to meet the needs of these various markets, or accept all consequences.

In recent years, I have seen manufacturers begin to address new markets by developing a much higher priority for field management to expand into what I will define as Key Accounts. For various reasons, there has been a reluctance for the field sales personnel to implement this strategy.

What is a Key Account?

• Any potential customer within your industry that has the capacity to make a major impact with your product or service in the marketplace. In consumer products multi-store chains including Drug, Department Store, Grocery and any other groups of stores that currently handle your products, or have the ability to do so.
• Single locations with regional or national distribution. This would include: large free standing independent retailers, mail order, catalog, distributors, shopping networks, major fund-raising organizations and the like. Think in terms of selling pencils to a local office supply versus the local school district.
• One of the best Key Account descriptions relates to the “special needs” of this type of account. This reflects on the type of very specific approach, maintenance, and immediate information this account relies on.

Why are these accounts not being fully developed?

• There is certainly a level of intimidation relating to this type of appointment and type of account. This is not the type of presentation that many of us make on a daily basis. For this reason, many of us fail to gain the confidence or the understanding to effectively meet their needs.
• The instant gratification that we take for granted with our independent accounts seldom applies in the development of Key Accounts. Rarely will we patiently accept an independent account that requires six to ten calls for a single placement or the development of a single purchase order.
• From the perspective of time, it can be very difficult to invest in areas that can be highly demanding yet, at times, hold limited rewards. It initially seems hard to justify these efforts, feeling that it comes at the expense of seeing our “regular” accounts. A relentless approach is required to establish these accounts. Are we willing and prepared to make the commitment?
• Many of us continue to fear the potential effect this type of customer will have on our independent business. As the marketplace has defined, we must accept and adapt to many of the dramatic changes, or have a very clear vision of exactly who and what we are trying to protect.

How do we develop this type of relationship?
I believe the biggest challenge is to first accept the obvious differences in selling this type of customer. Trying to fit the “Key Account” approach to business into our current sense of “Independent” reality will only promote frustration and disappointment.

These types of customers have a tendency to work with a much more limited number of factory representatives. Surprisingly, while relationships drive all aspects of sales, these relationships become increasingly important with the size and potential of the customer. Confidence and trust are essential; the stakes are simply too high!

Consider the buyer for a large organization whose first priority is to bring success to the organization and security to his or her position. The buyer’s options are to play it safe with the known potential of current vendors, or step outside with his or her neck on the line with a vendor who has yet to perform. There are clear benefits in either scenario, and all qualified buyers will proceed with an acceptable balance of the two. Simply remember, almost all of the down-side risk is with the new vendor.

This is the thought process we must understand and accept if we are ever going to overcome it. As a Key Account buyer, would you be willing to risk your job on taking a major new direction when its success is determined by not only the unknown potential of the product, but in the ability of your (new) sales contact to perform their responsibilities to your specifications? And you wonder why it can be so difficult to get that first appointment!

How do we begin to sell these customers?
Now that you have a greater understanding of their reality and what you are up against, with each step you must accept the need to overcome these obstacles by exceeding expectations. Begin by developing a target list of customers who either currently need or should need your products. When possible, visit more than one of their facilities to gain as broad of an understanding as possible relating to their operation. Often there will be an opportunity to speak with personnel who can share vital information relating to the priorities of the organization. Befriend those you can, asking for their assistance in developing your plan to proceed.

Commit to making ten or more calls on this buyer in the hopes of establishing a relationship. Often, an assistant to the buyer can be of great assistance in developing this contact. Remember, at this point you may only represent risk to the buyer. Your tenacious attitude will often demonstrate to them how genuinely sincere and serious you are. Buyers will routinely not return first calls, allowing the less serious to drop away. Send catalogs, drop off samples, do whatever it takes to get their attention. Eventually they will see you, it is their job.

How to prepare for this meeting
By now you will have a specific list of ideas and products for your presentation. Be realistic about the scope and potential of your initial presentation. Give them the ability to test you and your performance with limited risk. Your initial objective is a foot hold, not a full body take down!

Contact your factories, asking about similar relationships and success stories that may be effective in your presentation. Develop a full understanding of their competitive departments. In most instances, you will find that your buyer will have a very broad understanding of their business, yet because of their vast responsibilities, will have minimal ongoing knowledge of the specifics of the entire operation. Become an authority on their operation and its relationship to your product. Consider the value of strength in numbers. A qualified and “titled” factory representative can enhance your efforts.

Prepare both a formal and informal presentation. The formal presentation will reflect your knowledge of both their operation and your industry in a very professional manner. It will reflect on the ideas and proposals established from your knowledge of their business, and of similar operations that either you or your company have established. While this approach is effectively a shot in the dark, it will certainly establish you as a professional.

To get out of the dark, you must also prepare for an informal presentation. You can do so by asking questions and formulating, during your meeting, the answers to as many as possible. I tend to call this developing my lobby prepack. If your buyer suggests a current interest in a specific product or direction, immediately develop a program or prepack around it. Pay very close attention to their current priorities and dive head long into what would be perceived as an established program that, by coincidence, is tailor made to meet their needs. It’s amazing! From my experience, this is the most fun and creative aspect of sales.

Finally, address your understanding of the perceived risk in doing business with an unknown individual and product. Suggest examples of how you have assisted others in the past and how you will absolutely stand behind the commitments you have made in your presentation. While this may sound a bit overstated, causing the buyer to smile and downplay his concerns, you have just effectively lowered your single greatest hurdle to a mutually beneficial relationship.

As managers, we cannot be all things to all people in the marketplace. There is certainly the opportunity, however, to step outside our comfort zones to test, challenge and expand upon our current markets. While our best judgment will need to be used, our greatest opportunities should never be misunderstood.

Personal Regards,
Keenan

INTERPERSONAL© is published by INTERPERSONALBIZ.COM, Keenan Longcor, Editor, ©2008. Duplication of this publication is permitted for both personal and business use. Excerpts may only be quoted with acknowledgment of INTERPERSONAL and/or INTERPERSONALBIZ.ORG as the source. For re-publication rights, please contact the editor at KEENAN@INTERPERSONALBIZ.COM