Posts Tagged ‘Salespeople’

Why You Need To Be A Master Of Your Incentive Compensation Plan

Friday, November 13th, 2009

sales person holding moneyLet’s talk about motivations. As I mentioned in an earlier post, everyone has different motivations. Some are motivated by money, some are motivated by success, some are motivated by personal satisfaction, etc. You can’t trust Mary to have the same motivations you did when you were in her shoes, as a salesperson.

But if there’s one thing in common among all salespersons, it’s being motivated by more than one thing, and one motivator that tops most lists is the incentive compensation plan.

As a sales manager, how well do you know your incentive compensation plan? Do you have total mastery of it? I hope you do. Otherwise you’re missing out on one of the most effective motivators of salespeople to help them reach peak performance.

I’ll give an example. A salesperson needs to do two things right in order to be successful.

1. Perform daily selling activities
2. Master every aspect of his or her product and use that knowledge to their advantage

Same is true for the sales manager. You are here to manage your salespeople, and to do that you must also be in control of what motivates them: the incentive compensation plan. You need to be a master of these two aspects to bring out the full potential of your salespeople, just as a salesperson has to master both points if he or she wants to be able to make a good sale on a consistent basis.

The incentive compensation plan can mean different things. For Mary, it signifies the freedom to do what she wants. For John, it means being able to pay the bills and make ends meet. For Tom, it allows him to support his family. So it only makes sense that the incentive compensation plan is a huge motivator of salespeople. As a top-performing sales manager, are you going to let this go?

Let me clarify this much: you are not a top-performing sales manager until you have total mastery of your incentive compensation plan and are using it to motivate your team to sales success.

Do YOU have total mastery of your incentive compensation plan? How do you use it to your advantage? Let me know by leaving a comment after this post.

More Than Knowing All The Answers – The Art Of Asking Good Questions

Thursday, October 29th, 2009

1Some years ago, in 1999, I was reading a novel called Fight Club when I came across this interesting line. I remember it went like this: “When people think you’re dying, they really, really listen to you, instead of just waiting for their turn to speak.”

It struck me as an interesting concept, especially when applied to sales. Is this the reason why some salespeople are having such a hard time? Because all they do is talk and talk and talk and, without knowing it, refuse to listen to what their clients have to say? Should sales reps be asking intelligent questions rather than knowing all the answers?

In this lesson, we’ll discuss the secret art of asking questions as a way to build customer trust. But the real good news is no one needs to be dying for you to be able to do it.

1. The Internet is a friend

As a modern day sales person, here’s one thing you should know: the Internet has changed the landscape with which sales representatives do business.

Back then sales reps spent a considerable amount of time asking questions about basic client information during a sales call. It makes sense. You can’t expect to establish a solid relationship without understanding the customer’s business context and a few basic details about them, and this is where the Internet comes in. Nowadays salespeople could use the Internet to find or gather basic information about their customers. At the same time customers expect salespeople to add more value to their services, too, and you simply can’t do that if you’re off gathering “basic background information” all the time.

Sales calls are always under a time limit. Don’t squander your “time budget” with the customer when the Internet is there to help you with data gathering.

2. Put weight into your questions

According to the books, there are different types of questions available at the sales rep disposal, each type being designed to elicit a different response and have a different effect on the customer. It all sounds too scientific, and it is.

Knowing the various theories and reasoning behind different types of questions is useful. But take note this is only one part of the story. When it comes down to the actual job, no amount of textbook knowledge could replace the value of asking good questions, questions with substance. This is what separates top performers from average salespeople. Top salesmen and women “know what they are talking about”.

The trick is to emphasize what they call “business substance” in your questions. If a question doesn’t contribute to your goals as a salesperson, don’t speak it. Ask questions that push your business relations forward. Otherwise you’re simply doing a good job of asking questions about the wrong things.

3. The one-size-fits-all misconception

Here’s another thing that defines a seasoned sales rep from an amateur one – the senior sales rep doesn’t see people as generic customers.

There’s no such thing as a “generic customer.” Everyone is different. People are born unique. Simply put, you won’t get anywhere if you’re planning to ask the same questions over and over again without paying attention first to your clients’ needs.

The probing model and the different types of questions is nothing more than a guide for college students. In the real world, they serve very little purpose except to remind you how vastly different the playing field becomes once you’re wearing the tie and shoes of a professional salesperson.

The secret is to identify the needs of your client, and then ask questions that target those needs and push your business relations to new grounds. I know this is a lesson about asking questions, but a good salesperson listens first and asks questions later. 

It’s a tough time for companies trying to find something to hold on to in today’s market, and the same is true for sale representatives. The challenge is to stay strong and adamant during these hard times, and mastering the art of asking significant questions goes a long way into helping the company and its group of salespeople overcome that challenge.

Some folks are born to do it. Some people have to work before they become proficient at asking good questions. It doesn’t matter. What matters is you have the heart to learn how to do it, and do it like a pro to cope with today’s sales environment.

Post a comment and tell me your insights about how important to learn the art of asking good questions.

How to Motivate Your Sales Team in 3 Easy Steps Using “The Masterful Praising”

Friday, October 2nd, 2009

approving sales manager

So you really want to learn how to motivate your sales reps?
Here’s the “secret sauce” that 99% of average sales managers NEVER use and if they do, they screw it up
So here the right way to so it – use the “Masterful Praising”. Here’s how you do it. Right after they do something “praise-worthy” take this three step approach: 

  1. Look them in the eye or if on the phone stop and emphasize your words clearly and distinctly, telling them exactly what they did correctly in specific terms.
  2. Pause for effect. Praise intermittently, not always on every little thing. Keep it a bit of a mystery as to when you will praise.In doing this the salesperson will never know exactly when the praise will come, so they always will be wondering when the next praise will come. This is then the motivator. Salespeople will work twice as hard once they get a few praisings under their belt.
  3. Be specific. Be specific in your praise – don’t just say “nice job” or “good work”. In fact if you do it that way, then don’t even bother!Instead, say “Hey Tim that was great work being so persistent to finally secure the appointment for us to propose to the Simpson account. I know it took a lot of effort on your part. I appreciate it”.People will continuously repeat activities that they reinforced by.Reinforce the ones you want repeated, they will be clamoring for you to deliver them praise.It’s the human nature. Use the laws of human nature to get your salespeople to be doing more of the things you want them to do.

There is an important corollary to this which is especially effective for use in getting new or struggling salespeople to do the right things, even if they don’t get them exactly right.

If a salesperson shows progress on a task but cannot fully complete it due to lack of knowledge or skill, the average sales manager withholds praise and approval until they get it exactly correct.

The truly great sales manager praises every correct step along the way and praises even more when it is done to completion. If you truly want to get your salespeople to perform without you, then here is the key!

The most important idea here is that especially when someone is just starting; catch them in the act of doing something correct. At first approximately correct, and gradually move them to exactly correct.