Keys to Building High-Performing Sales Teams

Globalization, mergers, acquisitions, downsizing and bankruptcies have collectively turned our economy and traditional business models upside down. However, despite the churn, despite all of the complexities and changes that we have seen to our business ecosystem, there still exists one simple, basic business truth; "nothing happens until somebody sells something".

The sales organization is the most important resource for any business, and your sales people are still the vital life-line to the customer. For any company that wants to achieve accelerated business growth and profits, building a high-performing sales team is absolutely crucial to that success.

In my opinion, there are several keys to building high-performing teams, whether in sales or any other functional area of the business.

• Develop a clear, concise mission statement for the sales organization, and evangelize it.
• Raise the bar on expectations, but make sure the goals are realistic, specific and measurable.
• Empower your team and drive accountability closer to the customer; focus on outcomes and results versus activities and tasks.
• Follow the "golden rule" principles when dealing with people and performance; the carrot works better than the stick.
• Remain open to new ideas; foster a culture that encourages innovation, risk-taking, trust, and respect.
• Link compensation, recognition and rewards programs directly to the business goals; celebrate wins, both large and small.
  
• Communicate (more is better) and stay engaged with the customer and your team; don't be a "drive by" manager.
  
• Stay focused, and keep your sales people focused by minimizing "white noise" and other distractions.

"If you don't know where you are going, any road will get you there", and this is particularly true in a sales environment. So, be clear about the organization's mission, your expectations and keep your sales people involved in all aspects of the sales and business planning to ensure clarity and "buy-in" at all levels.

If your goal is to become a leader within your industry, and in the eyes of your customers, then recognize that it is about more than just making the numbers. It's also about building the competencies and skills of your sales people so they can consistently deliver value to the customer. Make sure your sales people understand this, too, and reinforce the commitment to their professional growth through coaching, mentoring and development.

Finally, "Don't Sweat the Small Stuff". Get comfortable with the 10% that does not go as well as planned. It will make the 90% that does go well that much more enjoyable for everyone.


COPYRIGHT © 2010 John Carroll

Growing Your Business With Partners

Building strong alliances and partnerships with both industry and local partners should be a high priority for any business that wants to rapidly expand its customer base, its products and services portfolio, and dramatically improve sales and profits. There are numerous benefits to selling with and through partners. Here are some of the more significant benefits:

• Receive generous commissions on products and services sales
• Gain access to leading products, services and business building tools
• Receive training and support from branded products and services companies
• Obtain free sales and marketing tools to help you identify new revenue sources
• Strengthen your brand through business relationships with high profile partners
• Expand your market reach without major investments in advertising and marketing
• Extend your value proposition by offering a broader array of products and services

For small business owners, identifying potential partners and cultivating those key relationships should be an integral part of your ongoing networking and business development activities. Formalize these discussions through one-on-one meetings with local business owners who have similar goals, and are open to partnering.

Another great way to start to identify potential partners that are a good match for your particular business situation is to evaluate your current customer-supplier relationships. Who are you doing business with today, and who is doing business with you? See if any synergy exists, and if so, start a dialogue.

Strategic partnerships, if properly developed, represent an indirect sales channel for your business, and provide you with access to potentially lucrative new markets, emerging products and services, and future profits. Listed below are some of the most common partnership designations to help you determine the "best fit" for your business.

• Affiliate. Most common form of partnership within the online business community (i.e. click through sales). The majority of affiliate partnerships require a formal agreement, and pay generous commissions up to 40%+.
  
• Referral. Many referral partnerships are informal or local "hand shake" agreements. One-time cash bonuses or commissions are paid on new sales at a lower rate that an affiliate partnership, and sales tend to be sporadic or event driven.
  
• Reseller. A reseller or VAR relationship is typical within the technology, software and services areas. Reseller agreements can be multi-tiered and offer commission rates up to 45%+ depending on the revenue commitment level.
  
• Joint Venture. JVs are generally complex "one-off" business relationships that enable two or more parties to share markets, intellectual property, assets, domain knowledge and profits, depending on the terms of the agreement.
• Affinity. Affinity partnerships are typically informal, local business relationships tied to a specific program or event. Potential affinity partners can include the local Chamber of Commerce, business or trade associations, clubs, networking groups, etc.
  

The goal of partnering should be to forge "win-win" business relationships that benefit both parties equally as a result of the agreement. For any small business, particularly one just starting up, it's important to strike a balance between the diverse partnership opportunities available to you, and your direct selling activities. Effective partnerships will enable you to profitably grow your business, while offering more options and value to customers.


COPYRIGHT © 2010 John Carroll

Make Marketing Your Business a Top Priority

Where does improving the results from your advertising, sales and marketing rank on your company's "bucket list"? If it is not one of your top priorities for 2009 and beyond, then you are putting the business at risk!

The first words I hear from business owners these days are "I don't have any money to invest in marketing the business right now". And my standard response has become ... well, should we start talking about an exit strategy then? The bottom-line is this, if you are not investing in advertising, sales and marketing to grow your business, the business will not be successful.

If you are one of those business owners who is peering out the window hoping Jack will come sliding down the bean stalk with those magic beans to turn everything around for you, well guess what ... it's over. Just turn out the lights, lock the door and put the For Sale sign in the window, because Jack's not coming! Or, you could try another approach, and chart a new direction for the business that could lead to future success and profits.

In Sales 101 you learn to "change the ground rules" when you are in a loss position. The same holds true for the business as a whole. Jack Welch was a master at changing things up when he was Chairman and CEO of General Electric. Mr. Welch and his leadership team constantly sought out ways to improve the operational performance of GE's varied business units. Often times making major organizational changes when GE's performance was at a high point, in order to continue to produce record sales and profits each year.

Eric Lipar, president of LGI Homes in Houston is another great example of how to successfully market your business. LGI Homes is one of the few home builders in the U.S. that has grown its sales and revenues every year since 2002, despite the economy's fluctuations. When the home building industry started taking a nose dive in 2007, Mr. Lipar and his team charted a new course for the company, and doubled their marketing budget in order to stay ahead of the competition. The result ... record home sales the past two years, despite the worst economy in decades!

If your business is struggling to make a 2nd half turnaround in this economy, here are some ideas you should consider to help get things headed in the right direction:

• Host a brainstorming session. Get your team together with some outside experts to come up with creative ideas and an action plan to "jump start" the business.
• Revisit your books. Take a look back at your past successes and failures. Find a way to build on what has worked in the past, and try to limit the missteps.
• Toss out those activities, ad campaigns, promotions, etc. that are broken or have exceeded their "shelf life". Focus your time, energy and resources on the new and improved.
• Experiment on all fronts - change up your headlines, ads and marketing messages to see what sticks and what doesn't with your customers.
• Make marketing the business your top (and only) priority for the next 90 days, and see what changes occur.
• Measure and track the results and shift resources and budget dollars into the areas that deliver the greatest return to the business.
  

The next time you consider cutting your advertising, sales and marketing budget when things get tough, stop yourself, and do the opposite. Put more emphasis (and dollars) into marketing the business, and make it your top priority. It will help reinvigorate your team, and keep the business on the fast track to future growth and success.


COPYRIGHT © 2010 John Carroll

Become a Leader in Your Market Niche - Part 2

In "Become a Leader in Your Market Niche - Part 1", I covered some of the basics of how to get started in positioning your company as a leader in your industry. Now it's time to fill in the blanks. At this point, you have completed a competitive analysis, a customer assessment, compiled your list of JVs and partners, and received expert advice on how to integrate social media marketing into your overall business plans. So, what's next?

Identify your leadership target(s). What do you want to be known for, or a leader in? And what are your recognized strengths that can be leveraged as a competitive advantage? Are you perceived as an innovator or technology leader? Do you offer superior products or services? Is your company recognized for quality or operational excellence - i.e. Six Sigma, ISO 9002? Do customers rank your company's service and support ahead of the competition? Does your company receive high praise from its employees as a great place to work, or from the community at-large for its charitable donations and volunteer work? Select your leadership target(s) carefully, and make sure they are in alignment with how the market perceives your business today. Note: you can be a leader in more than one area, but make sure you don't spread your resources too thin trying to get there.

Rewrite your USP. Now it's time to start to put some "meat on the bones". After you have determined your leadership target, your Unique Selling Proposition(USP) needs to be rewritten to reflect the changes. Your new USP should communicate the competitive advantages that distinguish your business from the competition and helps your company to stand out in a crowded marketplace as a category leader. Make sure to test and retest your new USP with employees, customers, partners, and trusted advisers so you get it right. Over time, your revised USP should become part of the DNA of your business, and be reflected in your entire PR, advertising, marketing and selling efforts. It's all about packaging why your business is different, unique to the outside world in a manner that will motivate customers to buy from you as the perceived leader in your market niche.

Update your marketing. Once your revised USP is in place, it's time to update your web site, brochures, and all other marketing collateral to reflect the company's new focus and marketing messages. All components of your company's marketing including web site, advertising, press releases, brochures, presentations, training materials, etc. should highlight those key messages you want to build upon that distinguish your business as an industry leader. Get lots of help in this area from a branding and creative services expert to ensure that the updated "look and feel" and message content is consistent throughout, and gets effectively communicated to the outside world through the various media you determine are appropriate for your business. Your ability to market your business differently than the competition is one of the keys to elevating your brand and raising the profile of your business as a market leader.

Network and be visible. Network, network, network. Don't just show up at networking events, but take an active role in the group leadership, committees and community outreach programs. I recommend that small business owners become active members in 2 or 3 networking groups, in addition to their local Chamber of Commerce. Seek out opportunities to chair key committees, attend ribbon cutting ceremonies, present at trade shows and affinity group functions - i.e. Rotary Club, Lion's Club or host Lunch & Learn and After Hours events to further increase your company's visibility as a leader in the local business community. Being recognized as an industry spokesperson or "thought leader" is another great way to build your personal brand, and enhance the perception of your company as a market leader.

Volunteer and be charitable. Be generous with your time, talents and resources. Find ways to help others in your community and around the world that are less fortunate than you, and are in need of your help. Don't ask for anything in return, just do it, and get everybody involved. Giving of yourself is reward in itself, and a true reflection of your character and leadership qualities.

Being good at something is within every company's reach, but being a market leader requires extra effort, dedication, resilience and commitment. It also requires the help and guidance of others, because none of us can do it alone. So, if you have made a commitment to become a leader in your market niche, seek out those "success-driven" employees, customers, partners and trusted advisers who can help you get there, and enlist their support. You'll be able to reach your goals faster, and enjoy the journey more.


COPYRIGHT © 2010 John Carroll

Become a Leader in Your Market Niche - Part 1

"If you're not the lead dog on the sled, the scenery never changes." And the same thing is true in business, isn't it? Unfortunately, there can only be one market share leader in any given business segment, but there are other ways to become a leader in your market niche. So, where do you start if you're not a leader today?

Know the competition. Learn all you can about their products and services, who they are selling to, and how they price, advertise, promote and market their offers. Michael Porter, a Harvard Business School professor and the author of Competitive Advantage, stated that "A firm differentiates itself from its competitors if it can be unique at something that is valuable to buyers." Once you have completed a thorough competitive analysis you can then identify areas of differentiation, and begin to communicate your competitive advantages to the outside world in a way that is compelling and entices prospects to buy from you.

Know your customers. Why are your customers buying from you, and what do they like and dislike about your business? If you don't know, ask them and while you're at it, find out what additional products, services, and support requirements they may have so you can begin work on this list before your customers look elsewhere. Knowing your customers buying preferences and how they like to be sold to will help you advertise and promote your business in a manner consistent with the needs of your marketplace. This more targeted approach will also help you get the maximum return out of your advertising and marketing dollars, and raise your profile as an emerging leader in your market niche.

Joint ventures and partners. Establishing JVs and partnerships will help you accelerate the growth your business, extend your products and services portfolio, and expand your market reach. From a time-to-market perspective, it represents a low-cost way to help you enter new geographic markets, launch new products and services, and enhance your value proposition to both current and new customers. For small business owners in particular, selling with and through partners is an absolute business imperative. Aligning your company with the right mix of JVs and partners can help dramatically improve business results and the market perception of your company as an industry leader.

Branding and social media marketing. Technology and innovation has made it possible for "everything to be connected to everything." However, most companies are just scratching the surface when it comes to figuring out how to integrate Twitter, Facebook, YouTube, LinkedIn, etc. into their branding and marketing plans. Social media marketing enables your personal brand and your business brand to be interconnected in a manner that helps each to build upon the other. Any company with aspirations of becoming a market leader should get expert advice on how to effectively integrate social media marketing into their next generation branding and business plans.

Building a strong brand and a successful business is all about knowing the competition and your customers at a much deeper level, developing long-term, enduring JVs and partnerships, and finding new innovative ways to "get the word out" and market your business more effectively. So, if you're tired of the scenery and want to be a leader in your market niche, then start to make the changes necessary to get you there!


COPYRIGHT © 2010 John Carroll

Where Have All The Sales Leaders Gone?

Has sales leadership become a lost art? I hear all the talk today about how marketing has replaced selling, and that consumers are now much more educated and informed as a result of the Internet. But have consumers become more educated and informed out of necessity because so many companies they do business with have poorly trained sales staffs?

I know I am biased on this subject. I was blessed to have received nine months (yes you read that correctly) of intense sales training at AT&T's National Sales School, and received a world class training experience. At that time, there were a number of companies who had similar outstanding sales training programs including IBM, Xerox and Proctor & Gamble to mention a few. And all of these companies were also recognized as the market leaders in their respective industries. Is there a direct correlation here?

Today, unfortunately, sales training or training in general seems to be an afterthought for many companies. Companies who have abandoned their sales training programs assume new sales hires come fully trained with a Rolodex of prospects, and are ready to hit the ground running. So, here's a great question for you, if more and more companies adopt a similar philosophy toward training, where do all these new sales hires go to receive the sales training they need in this modern era to be effective?

If we transfer the responsibility for training and development solely onto the employee's shoulders, aren't we doing a disservice to both the employee and our companies? Sales leaders are made not born, and it's time for us to recommit to training, developing and mentoring our high performing sales leaders of the future. To continue to do otherwise, is to put American business and the economy at further risk.


COPYRIGHT © 2010 John Carroll