The High Costs of Hiring Mediocre B2B Sales People

There is an increasing pool of research-from respected organizations like Gallup and the Harvard Business Review, and also many newer research firms- demonstrating that the costs of a bad hire in B2B sales, more than any other functional group, are enormous.

Most B2B companies tend to grossly underestimate the negative consequences a bad sales hire can bring to their company.

Some of the costs to consider include:

B2B Sales Direct costs

 

  • Lost revenue (lost and delayed business)
  • Extra training and management required
  • Costs of turnover (firing and replacing – from both time and direct hiring costs)

 

B2B Sales Indirect costs

 

  • Long-term impact on market share and brand – lost customers and brand loyalty
  • Impact on morale – leading to lower overall performance of other team members and higher turnover- and ultimately the loss of your best salespeople.

 

An Example of the Costs

Let’s look at an example for a company where the sales quota of the best salespeople is $1.5 million, and sub-par performers are delivering half of that ($750,000).

The annual impact of having a poor performer on the team can be estimated at $1,360,000 (including lost revenue, lost clients, and extra management costs). The costs of delaying action, to remove this individual, are $2.6 million over 2 years!

You must remember that B2B salespeople represent your company to your clients. Therefore, the impact of brand and market-share erosion over time, of a sub-par salesperson, can have grave consequences for your company.

Other Insights

CSO Insights, a sales research firm, puts out statistics it gathers every year from surveys it does with over 2500 companies.

They found that only 58.2% of B2B sales reps made quota in 2013 out of the 2500+ companies surveyed. That means that 42.8% of sales reps missed their quota.

That is a very alarming statistic.

A Typical Observation

CSO Insights had this conversation with a sales rep from one of their interview companies.

Sales rep: “Yeah, that program is great. Really powerful! In fact, the only time it doesn’t work is when I don’t use it”.

CSO Insights: “That’s quite an endorsement. How often would you say you use the principles you learned in the program?”

Sales rep: “Uh, maybe half the time.”

Now please think about that for a moment. If it works every time the rep uses it, why wouldn’t the rep use it all the time? Does he/she simply not need a win every time? Very unlikely!

It’s usually because the sales rep hasn’t had ongoing coaching to ingrain the sales training methodology into their daily routine.

Does Training & Coaching Pay Off?

Training gives a one-time boost in sales behaviour and results, but people quickly slip back into their old familiar behaviour without coaching reinforcement, and increases in sales are negligible.

However, with coaching after training, although there is a slight dip right after training, the sales people who received coaching keep getting better and better results.

Through all of my 40+ years of coaching, I have found that coaching costs very little compared to the increased results that have occurred. In many cases, coaching fees were less than 1% of the overall increase in revenues.

So, if you truly want to grow your business, you need to have your sales people trained and coached by professionals. And in most cases, this means hiring outside professional B2B sales coaches. You will see a very worthwhile ROI.

Conclusions

Competing at the top level is very exacting and can be very trying mentally. Anyone who has ever played golf knows that for sure.

But in order to succeed at any level, people need coaching. This is true for executives, business owners, and especially for sales and marketing people.

You use coaching for two main reasons.

1. To help you learn new skills, and to perfect or change old ones,

2. To give you feedback on how you are performing those skills, and to correct mistakes.

Feedback needs to be timely, accurate, consistent, relevant, and individualized. The other four factors are fairly self-explanatory, but let’s have a look at what is needed to be accurate, and why it is important to be accurate.

In order to be accurate, you need to have some kind of measurement system in place to give you metrics about how someone is performing all the way through the sales cycle.

You need to measure things like;

1. Is she following up on leads? (I hope you have a good lead generation system)

2. Is he using the sales and marketing methodology that you have implemented? ( I hope you have one)

3. Does she qualify prospects well, so she’s not chasing people that aren’t going to buy right now?

4. Is he demonstrating your system properly, or does he do it too early or too late in the sales cycle?

5. Does she follow a correct proposal writing script that your company has implemented?

6. Does he follow-up properly with all prospects?

7. And all the way through the sales cycle.

You need to measure everything right through the sales cycle, until you either lose or win the business.

As you can see, in order for your company to meet its revenue targets in any year, you need to be implementing coaching in your business.

This coaching should also include the executives of your company, so everyone is on the same page.

It becomes pretty obvious that training with coaching pays off.

Are your sales reps, marketers and executives getting the training and coaching they need to understand sales and marketing better, and to able to reach quotas?

You already know that the B2B sales cycle can be anywhere from 2 months to 2 years. What if you could cut that time in half? Discover how you can do just that and at the same time stop chasing non-productive leads.

My name is Ian Dainty and I want to help you succeed. Visit my web site at http://maximizebusinessmarketing.com/ and tell me what you want to know about selling.

You can also contact me at ian@maximizebusinessmarketing.com at any time for any questions you have about selling and marketing. I look forward to working with you to help increase your income.

Article Source: https://EzineArticles.com/expert/Ian_Dainty/59266

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Selling Is Not Just Mere Selling: Optimism and Enthusiasm in Sales

Thinking about sales can sometimes be scary and even intimidating especially when one thinks about competition. Nevertheless, how the company is able to bring in sales and do it successfully is one of the most rewarding feelings that both employers and employees share. Hence, thinking about sales is not just about attitude and strategy alone. Indeed, companies who are able to amass huge sales will agree that optimism along with enthusiasm is one of the main ingredients for successful sales.

Optimism and Its Benefits

Psychologists describe optimism as the basic characteristic that builds positive thinking. It is a psychological resource which unlocks a person’s capacity to succeed in his or her endeavor based on their ability to think that they can achieve it. Additionally, numerous studies have shown that optimism is a desirable characteristic which leads to lesser incidences of postpartum depression, stress and better life satisfaction.

In many cultures, optimism is considered as a desirable trait since it enables people to think positively regardless of the situation. Optimism serves as a catalyst in which people are discouraged from feeling hopeless and apathetic but instead strive for greater hope and action. In the same manner, optimism in the world of sales means that people are able to share their enthusiasm with their customers, knowing that what they have to offer benefits their buyers. This is simply not the bravado of selling but believing that the company’s products bring real results and satisfaction.

Optimism in Sales

When it comes to sales, optimism is taken to mean that sales people have compelling reasons and motivations to offer their products. This motivation is not solely seen in the dollars they can make but also the service given to customers. A sales person can have the most wonderful qualities but without optimism and enthusiasm, they are not able to get customer’s sentiments and trust. A sales coach can also train sales people to sell with intention and integrity.

Successful sales are also brought by people who are pro-active. These people do the necessary actions to make things happen rather than seat and wait for something. Being pro-active and optimistic means people are able to have positive outlooks even in the midst of rejections and down sales. People can benefit from having positive attitude by undergoing sales coaching.

Lastly, optimism in work means that people are able to balance their work life, family and leisure. Sales are important but it should not dominate a person’s life. Hence, putting sales with intent through sales coaching means that selling is done with sincere enthusiasm and bringing valued service.

For more details, please search sales coach and sales coaching in Google.

Article Source: https://EzineArticles.com/expert/Leola_S_Highsmith/1254360

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The Myth of Leadership Development

Developing leaders is a major strategic action for most large organizations and a multi-million dollar industry for training firms, consultants and universities. But if we have got the meaning of leadership badly wrong, much of this investment could be wasted. There are at least 3 problems with contemporary leadership theory:

1. Leaders are portrayed as occupying positions of authority over others which means that you can’t show leadership until you are in charge of people.

2. The idea that leadership is a learnable skill set fosters the impression that you can’t be a leader without training.

3. By associating leadership with emotional intelligence, what Daniel Goleman himself said is another word for maturity, the impression is created that you cannot lead until you grow up.

The bottom line is that leadership, as currently conceived, is an exclusive club for management level employees, something that those at the front line can only aspire to once they develop the relevant skills and maturity. This is a colossal waste of talent.

Dispersed Leadership and Employee Engagement

A different vision of leadership portrays it as something all employees can do. Certainly, the claim “not everyone can be a leader” is most definitely true when the focus is on what it takes to be a senior executive or even a front line manager. However, when leadership is defined simply as promoting a better way, then all employees who take a stand on any job-related issue, even in a very local, small scale manner, can show leadership to their colleagues and upward to their bosses. Because being a leader is glamorous, all employees can feel more engaged and motivated if they can see themselves as leaders even if they don’t manage anyone. So-called informal leadership means something different – informally taking charge of a group. Simply promoting new directions has nothing to do with being in charge, formally or otherwise, of a group of people.

Examples of Leadership Re-defined

” When Martin Luther King Jr. influenced the U.S. Supreme Court to rule segregation on buses unconstitutional, he had no managerial authority over that organization.

” When the Sony employee who influenced top management to adopt his proposal for PlayStation, they did not report to him.

” A new customer service employee might set an example of a better way of serving customers without being in charge of anyone.

” Whenever you influence your boss to think differently you have had a leadership impact on that person.

None of these examples entails managing the people on whom the leadership impact was felt. The leader sells the tickets for the journey and we need to upgrade our concept of management to take

care of driving the bus to the destination. Of course, further injections of leadership might be required enroute to resell the merits of the journey, but the bulk of the work in getting there requires good management skills. Management needs to be reconfigured as a nurturing, empowering and facilitative function, not just a mechanically controlling one.

Executive Development

What really gets developed in so-called leadership development programs are rounded executives. The truth is that leadership, conceived as challenging the status quo and promoting new directions, is based on youthful rebelliousness, something that is not a learnable skill set. When front line employees with no subordinates stand up for their ideas, they are showing leadership to the broader organization. So-called leadership development programs actually turn employees who are already leaders into managers. This is no bad thing. Organizations need good managers.

This view stands the conventional picture on its head: it is the front line knowledge workers who are the real leaders in organizations, not their managers. Of course, executives can also show leadership, whenever they too promote a better way.

The Benefits of Redefining Leadership

The main benefit is making it clear that all employees can be leaders and that, to do so, you don’t need all the skills associated with being in charge of people. You just need a good idea and the courage to defend it. Further potential benefits include better motivation and engagement of all employees, more innovation and front line ownership, better talent retention and less pressure on senior executives to show all the leadership a complex organization needs.

Why Make the Shift?

Leadership is based on power, traditionally the power of personality to dominate a group. This may still work in politics and public sector organizations but in businesses that compete through rapid innovation, the important power is the ability to generate new products and processes. In a war of ideas, leadership should mean the ability to successfully promote new ideas. So, the reason for making the shift in how leadership is defined is simply that the world is changing from one of stable, physical work to one of dymanic mental work.

See http://www.leadersdirect.com for more information on this and related topics. Mitch McCrimmon’s latest book, Burn! 7 Leadership Myths in Ashes was published in 2006. He is a business psychologist with over 30 years experience of leadership assessment and executive coaching.

Article Source: https://EzineArticles.com/expert/Mitch_McCrimmon/79532

 

Sales Coaching – 5 Reasons You Can’t Close

When you struggle to close the sale you think closing is the problem. But when you struggle to close the sale closing is a symptom of the problem not the problem itself. When you try to fix a symptom as though it were the problem the problem remains because you’re trying to put a band-aid on a wound that isn’t ready to heal.

Here are 5 reasons you may be struggling to close the sale:

  1. You lack confidence in yourself and/or your supporting products.
  2. You fear rejection and avoid it by avoiding asking for the sale.
  3. You didn’t help the buyer to uncover a motivating reason for buying and buying now.
  4. You didn’t understand the clients most important wants and needs and went down the wrong path offering a solution for problems that aren’t all that important to the prospect.
  5. You didn’t do a good job of connecting with and starting a relationship with the prospect so asking for the close feels awkward, and isn’t likely to result in a “yes” decision.

 

When you struggle with closing you think you just need a perfect pitch, or the right closing lines and the problem will go away; but that simply isn’t the case. You can have a “perfect” pitch and “perfect” closing statements, and still blow the sale. Why, because a pitch and closing statements treat the symptom not the underlying real problem.

Review the 5 reasons you can’t close and identify where your struggles may be stemming from. This list isn’t comprehensive there could be other problems too that are keeping you from getting sales, but it will give you a good start. The first step to making closing a natural event is identifying the cause of the problem.

The next step is developing a plan for removing or overcoming the problem. Don’t think of your plan in terms of concepts think in terms of actions. When you know what the problem is, the actions you’ll take to overcome the problem, the only thing preventing you from closing is implementation of your plan.

Enjoy the time and financial freedom you deserve: “7 Secrets Top Producers Know that You Can Put to Use in the Next 9 Days” [http://increasesalescoach.com/]

Get a daily boost to increase your sales: the blog for Top Producers and Future Top Producers [http://increasesalescoach.com/blog]

Article Source: http://EzineArticles.com/969061

Turbo Charge Your Career With The Most Powerful Leadership Tool Of All: The Leadership Talk: Part 2

In Part One, I described the Leadership Talk and how it is a much more effective leadership tool than presentations or speeches.

I also described two fundamental premises that the Leadership Talk is based on.

In Part Two, I will show you the purpose of the Leadership Talk. You won’t be able to give a Leadership Talk effectively on a consistent basis if you misunderstand its purpose.

The Leadership Talk doesn’t drive purpose. Purpose drives the Leadership Talk. There is one and only one purpose of the Leadership Talk: that’s to motivate people to be your cause leaders in meeting the challenges you face.

This is important in understanding the difference between Leadership Talks and presentations/speeches.

You’re a leader. You have a task to complete. Do you want the people you lead to simply do the task? Or do you want those people to actually take leadership of accomplishing the task? For the difference between doing and leading in terms of accomplishment is stock car and a formula 1 racer.

Clearly, you can order them to accomplish the task; and if you’re in a position of authority, they will most likely carry out the order. But they might not do it with full commitment. Or they may resent being ordered. Or they may be inclined to do nothing unless ordered, and so after accomplishing the task, they do little else but wait for the next order.

However, their committing to take leadership involves your establishing a special relationship with them.

For instance, going back to the example I used in Part One, if one is a floor sweeper, one does the best floor sweeping, not simply by doing it but by taking leadership of floor sweeping.

Such leadership might entail: taking the initiative to order and manage supplies; evaluating the job results and raising those results to ever higher levels; having floor sweeping be an integral part of the general cleaning policy; hiring, training, developing other floor sweepers; instilling a “floor sweeping esprit”that can be manifested in training; special uniforms and insignias; behavior, etc.; setting floor sweeping strategy and goals.

Otherwise, in a “doing” mode, one simply pushes a broom.

You may say, “Listen, Brent, a job is a job is a job. This leadership thing is making too much of not much!”

Could be. But my point is that applying leadership to a task changes the expectations of the task. It even changes the task itself. Think of it, when we ourselves are challenged to lead and not simply do, our world is, I submit, changed.

Furthermore, though you may order people to do a job, you can’t order anybody to take leadership of it. It’s their choice whether they take it or not.

This is where the Leadership Talk comes in. Using it, you set up the environment in which they make that choice.

The Leadership Talk is not only the most important way to get cause leaders; it is the only way to get them on a consistent basis.

In the final part of this three part series, I’ll show you how to develop and deliver a great Leadership Talks.

2005 © The Filson Leadership Group, Inc. All rights reserved.

PERMISSION TO REPUBLISH: This article may be republished in newsletters and on web sites provided attribution is provided to the author, and it appears with the included copyright, resource box and live web site link. Email notice of intent to publish is appreciated but not required: mail to: brent@actionleadership.com

The author of 23 books, Brent Filson’s recent books are, THE LEADERSHIP TALK: THE GREATEST LEADERSHIP TOOL and 101 WAYS TO GIVE GREAT LEADERSHIP TALKS. He is founder and president of The Filson Leadership Group, Inc. – and for more than 20 years has been helping leaders of top companies worldwide get audacious results. Sign up for his free leadership e-zine and get a free white paper: “49 Ways To Turn Action Into Results,” at http://www.actionleadership.com. For more on the Leadership Talk: [http://www.theleadershiptalk.com]

Article Source: https://EzineArticles.com/expert/Brent_Filson/1911