Sales management is one of the toughest jobs around—particularly that of the first line sales manager.  Fundamentally, our job is to maximize the performance of our sales teams–both tactically and strategically.  I read a post, How the VP of Sales can Inspire their Sales Team with 4 Simple Habits.  It got me reflecting on how managers maximize their impact, and where managers should spend their time, not just the Vice President of Sales, but all levels of sales management.

The post offers some interesting suggestions, frankly a number of them I disagree with very strongly.  Let’s start with the areas in which we are in real alignment.

The biggest impact a sales manager at any level can have is by being out with their people in front of customers.  Yet too often, exactly the opposite thing happens–managers spend too much of their time internally focused.  They are chained to their desks, conducting internal meetings, conducting internal reviews, spending time reporting on what’s going on.  Some of this is necessary-we need to communicate to the rest of the organization, we need to get resources and support for our people, we need to get help for our customers.  But too often, managers are consumed with this.  They stop visiting customers, they stop visiting their people.

Being chained to the desk, being focused on reporting, staying internally focused on internal politics do not produce revenue or improve the capabilities of sales people.

Without a doubt, the number 1 and the number 1 priorities of sales managers are Customers and Your People!  If the majority of your time isn’t spent in the field working with your people and visiting your customers, you are prioritizing things incorrectly.  Nothing trumps spending your time here–period.  A number of years ago, I was EVP of Sales for a large organization.   I was scheduled to do a presentation at our Board of Directors.  It was an “important” presentation.  As the day approached, a critical customer situation arose.  It was clear that my involvement was needed and, unfortunately, the only time available with the customer conflicted with my ability to present to the Board.  The decision was easy for me–I conveyed my apologies to my boss, the CEO, and to the Board Members, saying Customers and this situation were more important.  Fortunately, my boss and the board applauded that decision–and we did get the order.

So managers need to prioritize time with customers and with their people.  We need to unchain ourselves from our desks and spend the majority of our time in the field.  Take a moment right now and look at your calendar for the past 30 days.  If you haven’t spent a minimum of 50 percent of your time in the field with your people and with customers, you’re not maximizing your impact.

Now once we’ve committed to spend our time in the field, where do we have the most impact?  This is where I think the article is dead wrong.  It suggests that managers spend the bulk of their time with A players and calling on their customers.  I don’t want to ignore the A players, but this is not where the problems are, this is not where managers have the most impact—both in driving performance of sales people and in contributing to closing business.  By definition, the A players really don’t need your help, so it’s irresponsible to focus the bulk of our time with them, unless all you want is “feel good” meetings.

Where we as managers have the greatest impact and leverage is with our B and even C players.  Maximizing the performance of that huge middle range of our people—the B players has the highest return on a manager’s time.  Working with them, we have so much more impact, so much greater room for helping them improve.  Likewise, the impact we have working with them, on their deals, helping strengthen their competitive positioning and moving the deal through the customer’s buying cycle.  (For a different perspective the value of focusing on your B players, look at what the authors of Challenger Selling have to say.)

It may be more fun hanging out with A players and their customers, but that’s not our job as sales managers.  Our job is to maximize the performance of our organization.  We have to invest our time where it has greatest impact, and frankly where we’re needed.  By  definition, it won’t be with our top performers.

This doesn’t say we ignore our C players either.  Our job is to maximize performance, this includes dealing with performance problems.  Coaching our C players–either getting them to be B’s or A’s, moving them into roles where they can be B’s or A’s (and that may be out of the company) is our responsibility as managers.

Whatever level of manager you are, spend your time where you have the greatest impact–it’s always with customers and sales people.  Once you get out to the field, don’t hide out–head straight for the people and customers where you can bring the greatest value and impact, and where you are most needed.  Don’t ignore your A players or your great customers, but they don’t really need you as much.  It’s your B and C players that need you and your attention.  It’s the tough customers where you can help both your people and the customers the most.

Serve your people, serve your customers, the rest takes care of itself.

Related posts:

1. Sales Is Changing, Are You Maximizing Your Impact?
2. Performance Management And Accountability
3. Performance Management Friday — Sales/Management Alignment

“What are you talking about Dave?  Qualifying is the job of sales, why are you talking about customers qualifying opportunities?”  It’s absolutely correct, one of the most critical success factors in sales is qualification.  Sales people need to viciously disqualify opportunities that aren’t in their sweet spot.  It may be a real deal, but it’s not your deal–so don’t waste time on it.

But I think sales people need to go further–I think sales people need to hold the customer accountable for qualifying the opportunity—is it real for them?

If we’re doing our jobs as sales people, we’re identifying lots of opportunities to improve their business, to help them grow.  Customers may want to do a lot of things.  They may be interested in engaging us on to discuss solutions.  But wanting to do something is different than having the ability to do something.  Customers need to qualify themselves—sales people need to help them.  Do they really have the ability to drive the change.

There lots of things that could cause a customer to disqualify themselves.  It may be something they want to do, but they have higher priorities.  Their organizations may not have the ability to do it–they need to focus on their readiness first.  It may be critical to them and their function, but it’s not important enough to the organization overall–they may have other priorities or strategic initiatives that take precedence.  They may not have the risk profile necessary to successfully manage the change.  The reasons can go on.

As sales people we can’t answer these issues for the customer and qualify them.  They have to challenge themselves on these issues.  Customers may not know how to do this, they may not even know they must do this.  After all, they may not buy these solutions that frequently, so while they may have the desire to change, the interest in doing something; they may not have the ability to do it.

It’s important to guide the customer through these discussions.  We don’t want to waste our time in  pursuing something that won’t happen–regardless of how compelling our case is.  We don’t want the customer’s expectations to be raised inappropriately–then dashed because they discover they can’t go forward.

Qualification is not just something sales people do.  It’s a shared responsibility, customers have to qualify the opportunity–their ability to do something (more than their willingness), and their desire to work with us in assessing the opportunity.

Are you helping your customer do the right job of qualification?

Related posts:

1. Customers Don’t Know What They Don’t Know
2. Our Customers Need To Do A Better Job Of Buying!
3. Those Damn Customers Just Get In The Way Of Doing Business!

I’ve written quite a bit about Challenger Selling and it’s many related concepts–it is after all a different articulation of the solution, customer focused, consultative, value based, provocative selling approaches we all know.  Every once in a while, I think–wouldn’t it be novel to look at things from the customer’s perspective?  What might Challenger Buying look like?

There are a couple of perspectives we might think about.  One is Challenger Buying has existed for a very long time–we, as sales professionals are waking up to the fact and addressing it.  The other is how difficult it is to do Challenger Buying–from a customer perspective.  I’ll talk about both in separate articles.

I’ll start with the second–we can’t underestimate the difficulty of doing Challenger Buying.  The premises of any kind of solution selling, including Challenger, is that we are bringing the customer new ideas.  We are challenging them to think about their businesses differently.  We are helping them to discover new opportunities.  There is no doubt, we create the greatest value for our customers when we are engaging them in this manner.  Customers don’t need us pitching our products, spewing all sorts of data about features, benefits, and so forth.

But Challenger Buying is, to say the least, very challenging for the customer—more so than it is for the sales person to do Challenger Selling.  At it’s core, it’s about risk, change, readiness, and priorities. 

As sales people, I think we often lose sight of what we are doing to the customer.  We’re doing the best that we can to help them discover ways of improving their business.  We get our customers excited about the opportunities, we show them how our solutions can help capitalize on the opportunities.

But then, from a customer point of view, reality starts to set in.  How do we (the customer) make this happen?  What are the risks?  How do we manage those risks–can we manage them?  What are the consequences of failure—or even a slight miss?  What does this mean to our organization?  What does it take for us to do this?  Are we ready and prepared?  How do we manage the change?  How does if fit into our priorities–often it may mean a complete shift in priorities.

The challenge of Challenger Buying became very clear in a conversation I had with a top executive recently.  He was struggling and called me for some advice.  It seemed that a sales team had done an awesome job in helping him see new opportunities for his business.  He shared with me how exciting the concept was, how clearly he could see the impact on the future of his company, and how he could see the value of the solution the sales team was presenting.  He said the business case was obvious and compelling.

I asked him, “So what’s bothering you?”

He responded, “I worry about our ability to make it happen.  There is so much more than just the solution the sales team presented.  We have to make it happen.”  He went on to talk about the risks of failure–he could see ways to manage those and accept those.  He was worried about the change and how to prioritize this initiative with the other priorities they faced.  He clearly understood he’d have to shift the priorities, but there was a very high risk in the short term (about 9 months) revenue impact.  These impacts were in other parts of his business–not related to the challenging idea, but in shifting his priorities the ripple through the organization had impacts far beyond the idea itself.

I asked, “What’s the sales team doing to help you find answers to this?” 

He said, “They can’t do much.  The things risks, shifts in priorities, and change management involves things far outside their ability to contribute.”

This example is pretty dramatic, it involved a fairly substantive shift in the company strategy.  Most Challenger Sales may not be that dramatic, but we have to understand Challenger Buying!  We aren’t doing our job and we won’t be successful unless we help our customer in their buying (funny how it always comes back to helping the customer buy).  We have to help them understand the risks, change, readiness, and prioritization issues.  We have to help the customer solve and manage these.

Challenger Buying is tough–if we are going to be successful with Challenger Selling, we need to shift our focus to Challenger Buying.

Related posts:

1. Sending Your Sales People Out Naked, The Problem With “Challenger Selling”
2. Buying Isn’t Important, It’s The Results Of Buying That Are Important!
3. Buying Has Nothing To Do With The Product We Sell!

I started my career selling mainframe computers for IBM.  When I joined IBM, they were just coming off several years of an advertising campaign that presented a rather stark proposition, “What If…”  That was it, nothing else.

For some reason that campaign had fallen out of favor with all the marketing and advertising types and was displaced by something that was frankly not memorable.

But from a sales point of view, the campaign was inspirational–it still is.

Today, so many of the great customer conversations begin with “What if….” or “Have you ever thought of…” or “Have you considered…..”

Engaging the customer in thinking, in considering new ideas, in helping them see new opportunities, in exploring is the start of all great sales opportunities.  It starts new conversations, it starts new thinking, it creates new engagement.  It drives change.  It creates opportunity for our customers and for us.

We talk a lot about engaging customers in new conversations, some of them are provocative, some of them are challenging, too many seem to be about “telling.”  There is tremendous merit in these approaches, but sometimes I wonder if we make these conversations more complicated than they need be.

We’re trying to engage our customers.  We are trying to help our customer discover opportunities to grow and improve–how they can leverage our capabilities to accelerate their ability to do so.  It’s a collaborative process.

Somehow, it seems more of our conversations should start with, “What if….”

No related posts.

I read a fascinating Op Ed piece by Tom Friedman in the New York Times, Average Is Over.  It’s a fascinating piece.  As I reflected on the piece it struck me how important this concept is to professional selling.

Friedman makes the point, “”…everyone needs to find their extra–their unique value contribution that makes them stand out…”   Friedman is not writing about organizations, he’s writing about individuals, each  of us.   It’s a profound concept, understanding it is like discovering the secret decoder ring for sales success.

In a buyer’s world, where too many products are undifferentiated, where the differences between the companies that stand behind the products are relatively small, where quality is similar, where everything balances out–and on average they are the same, there are two things that stand out as real differentiators:  price and what each of us contributes as sales professionals.  And in competitive situations, where pricing is roughly the same, the difference between winning and losing is each of us.

It’s no longer sufficient to be “average.”  Each of us has to find a way to stand out and differentiate what we do.  It might be our knowledge of what the customer is trying to do, it might be the confidence we instill about the new solution, it might  be the trust we have earned in working with them.

Just good enough is no longer a winning strategy (a number of years ago, I worked with an industry leading company that had that as their strategy–and they were remarkably successful.  We have to set ourselves apart, we have to create the value and differentiate ourselves.  As Friedman points out, it is ultimately what each of us contributes that makes a real difference.

It’s a tremendously powerful concept for sales people, partly because it’s a simple concept, partly because it puts success or failure squarely in our hands.  We can control and manage the difference we make with our customers.  We can control and manage the value we create to set ourselves apart.  Competing and winning becomes much more clear–we are in control because it is the differentiation that each of us create that separate us from the average.  It can actually be quite easy–particularly if everyone else is striving to be average.  In essence, we become the value proposition–or we can be one of the crowd, average.

Sales people–and the people they engage in working with a customer are the ultimate differentiators.  How we and our team work with the customer is what separates us from the rest–the average.

Do you know what separates you and distinguishes you from everyone else?  Are you demonstrating that in every interaction with your customers?

Do you know what distinctive value you create–for your customers, for the people you work with?  Do they understand that value?

Are you constantly looking to  set yourself apart?

Average is over.  Average is not a winning sales strategy.

No related posts.

Sales people are notoriously bad at writing things down and documenting things.  I talk to thousands a year.  When I start talking about documenting something–a deal plan, an account plan, territory, call plans, even a to-do list–all of a sudden you can see the resistance in their faces. 

They sit back, fold their arms.  Most say nothing, but a few courageous one’s will say, “Dave, you don’t get it.  I’m  too busy to do this.  I don’t have time to document these things–it’s too bureaucratic–I’ve got a plan, it’s in my head!”

I’m used to this.  I respond, “OK, I get it, let’s talk about your plan for this opportunity………”  It’s always the same, they start talking, they tell me about the deal, they tell me about what they’ve done.  I start asking questions, “Where are you in the sales process, how do you know you are aligned with the customer buying process, what are the risks to the customers in this project, what is your positioning vis a vis the competitors, ….. the list goes on.”  I get more data, but as we proceed, it gets sketchier and sketchier. 

We then talk about “What are the next things you need to do, who do you need to do it with, when are you going to do it?  What’s the positioning you need to win this deal?”   They respond, they outline action plans and strategies, I take notes, writing down the next steps.  Ususally they don’t.  They say, they’re under control, they can do the deal, they don’t need to document the plan.  I smile and thank them.

At the first milestone, I call or email, “How did it go?”  You know what happens–the majority of the time, the response comes back, “I forgot to do it, I’ll get right on it.”  The second milestone, “How did it go?”  You know…..

We sit down, I pull out my notes from the last meeting and ask “We developed these strategies to position ourselves to win.  We committed to these steps and actions to execute the strategies.  Where are we in executing the plan?”  The discussion usually involves a lot of hand waving, some apologies, a re-commitment to execute the strategy, then a quick escape.  This time they write a few things down, but too often, they’re forgotten.

Sales people are right, they are busy, they’ve got a lot of things to do, different deals, different accounts, different sales callse.  Changing customer requirements, shifts in our strategies.  It’s impossible to keep it in your head.  You lose most of it–you may remember one or two things, you may have jotted down a couple of reminders, but most of the time we’re busy with activities, responding customer requests, reacting to what may have happened in the last call.  We drift further and further away from our plans and strategies.  Sales cycles get lengthened, deals go away.

It is impossible to keep it all in our heads!  We need to document our plans, we need to use the plans to guide our actions, keeping us focused, on target, moving forward purposefully in the execution of our strategies.  We need to document our plans–they provide the basis for what we do every day.  They provide the foundation of taking our daily activities and transforming them into accomplishments.

Being too busy to  document your plans–whether it’s a deal plan, prospecting, call, territory, account or other plan–is just an excuse.  It’s an excuse for being less productive, it’s an excuse for winning less, it’s an excuse for not being accountable.

Writing it down, keeps us focused, having it documented, means we don’t have to remember and we never forget.  Many of us work with teams–a documented plan keeps the team focused, well coordinated and moving forward.

• Do you take the time to maximize your productivity, impact and effectiveness?
• Are you documenting and updating all your deal/opportunity plans?
• Are you documenting and updating your prospecting plans?
• Are you documenting and updating your account and territory plans?
• Are you prioritizing all of these in your day to day activities?

Related posts:

1. Not Worth The “Paper It’s Written” On
2. Reacting!
3. Performance Management Friday — Wallet Share

I’ve been writing a lot about changing the conversation, about challenging our customers, about getting them to think differently.  A lot of readers have been sending me notes, asking for advice on how to do this.

While I agree with many of the principles outlined in Challenger Selling and Provocative Selling, I take a little different view on things.  The basic premise of many of these approaches is that we have to know our customers businesses better than they do, we have to have better ideas for their business or function than they do.

I tend to think of this as a little arrogant and misplaced.  I also tend to think this short changes our customer and us of some opportunities.

Don’t get me wrong.  To engage in these business conversations, we have to understand business—both business in general, but more specifically our customers and their businesses.  We have to analyze their businesses, we have to look at opportunities they are missing, things they can do differently, things they can improve.  It takes research, high levels of business acumen, and deep understanding of what’s going on in our customers.

Often, as I’m preparing to approach a prospect and engage them in these types of conversations, I think, “What would I do if I were running the business?  (or the function that we might focus on)  What would I change?  What new opportunities might I consider?”  I try to put myself in the customer’s place, seeing things through their eyes and develop some ideas on issues, opportunities, possible solutions.

It’s a great exercise, it gives you the opportunity to start to develop some premises around shaping the conversation.  Now here’s where it starts getting interesting.  First, customers tend to like these conversations–as long as you’ve gotten them at the right moment.  No one is having conversation like this with them.  No one is bringing them new ideas.  They’re hungry for ideas.

Here’s where I have a departure from many others writing about this topic.  Many say, you have to know your customer’s business better than they do, you have to have better answers than they do.  It strikes me a both a little arrogant and unrealistic.  If we truly knew better than they, then we should be looking to run the company, not sell to it.  But the real issue is we always view their businesses from the outside.  As much research as we do, as great as our ideas, we never have a perspective from the inside.

The real conversation starts at the intersection of these points of view–our outside perspective, experiences and idea–unhindered by “legacy experience,” and that of the customer who is, after all most knowledgeable about the internal dynamic of their companies.  It’s this combinatation where the real magic can happen.  It’s the combination of the best thinking from the inside and the outside that enables us to help the customer achieve more than they could ever imagine.

There’s an interesting dynamic that happens–the conversation no longer is challenging–it’s collaborative.  It’s the customer and us worling together to determine a solution that neither of us could have come up with separately.

It sounds kind of idealized, but I see these happening all the time.  I have them weekly with my clients–some of the highest performing executives in their functions in the world.  I see great sales people having these conversations about problems they can help their customers solve.  Clever sales people are working with customers to create solutions–leveraging the customer’s ideas and capabilities along with their solutions.  I’m working with a small company in the health services sector.  They support some of the back office functions in hospitals.  They are engaging their customers in some different conversations about their function.  Completely changing what how they deliver services and the services their customers acquire.  Another client, a company that sells commoditized electronic components is having conversations with some of the largest mobile telephone manufacturers in the world.  They aren’t talking about electronic components, but re-looking at the way mobile phones are designed and manufactured.  Another client in the bulk chemicals industry engages their customers in conversations about the future of detergent, or foods, or other things.  Still another, a provider of enterprise software is talking to their customers about a different way of running their companies.

These conversations are happening everyday, they aren’t idealized conversations, but they are sales people who want to talk about more than their products, and their customers who want to explore different ideas to grow.

I’ve written before about sales people as solution creators—but in reality solution creation is really the result of a collaboration between the customer and great sales people.

These conversations can be remarkable.  Whether it is looking at running a function more effectively, whether it is about something people have viewed as commodities, but changing the perspective of the customer.  We can have great ideas and great solutions.  We can challenge our customers and present things they should be doing. 

But the real magic is not having the customer buy our ideas, but engaging the customer in a discussion and collaborating to develop even better solutions and approaches.  To do something neither of us could have done individually.

Perhaps the real conversations need not be challenging conversations, but collaborative conversations.

Related posts:

1. What Conversations Are You Starting?
2. Challenging Idea
3. Sending Your Sales People Out Naked, The Problem With “Challenger Selling”

It’s difficult to imagine what we sell might be unimportant.  It’s important to us, it’s how we make our living.  It’s important to our company, it’s why the company exists, it’s why we design and build products and solutions 

Our solutions are important to our customers—at least some of them–perhaps a certain department, a functional area, certain teams within our customers.  It used to be, at least for larger companies, that if we could come up with a business case that was compelling enough, our customers could “find the money.”  They’d take the proposal–by that time, it was theirs–something they were wanted to do, up to management and argue for the money to buy.  Most of the time they’d get it, if it met the financial and business case hurdles, they’d get the funding.  In many cases, as we qualified customers, we either looked for budget already allocated or their willingness to get the money if the business case was sufficient.

But that’s no linger happening.  Regardless how strong the case, how convinced the customer might be, they aren’t getting the money.

We try to solve that problem by calling higher–going to the “C-Level,” engaging them, pleading our case, showing the business case, talking about the compelling results and value we produce.  The C-Level executives may nod their heads in agreement, say it’s impressive, thank us for our work and helping them address issues in their business, recognize the value we have created, smile, shake our hands, and do nothing.

See things have changed.  Regardless how compelling our value proposition, how great the business case, how much the functional or departmental executives may argue for our solution; executives aren’t finding the money.  More than ever before, executives are investing only in things that directly impact their strategic priorities — and it’s only their top strategic priorities.

All companies have long lists of things they’d like to do.  Great business cases for improvements, new processes, new approaches, areas to grow and expand, new products to develop.  But investments are only being made in the top 2-3 priorities.  If your project doesn’t fall into one of these priorities, you aren’t going to get the order.  You may have made the sale–the customer has chosen you as the solution they would like to implement, but you are not going to get the order unless you are in the top 2-3 priorities.

What do we do?

It’s a tough question–there are some sales strategies we might look at, there are some business strategies executives in your company might consider.

The biggest problem in confronting this issue is our individual and corporate egos.  It’s hard to imagine not being important because what we do is so important to us.  It clouds our vision and our ability to recognize and address the problem.  But however important we think we are to our customers, our opinions don’t count!  Being important to the customer is the only thing that counts.   So we have to get our egos out of the way to recognize and address the problem.

What next?

Well a good start–probably the only start is finding out what’s important to our customers.  It’s not understanding their problems, but it’s understanding their strategic priorities.  What are the top two or three things they are struggling with?  What are the top two or three initiatives their executive are concerned with?  Until we know those, we have no hope of being important to our customers.

Once we understand those strategic initiatives–focus on the top 2-3.  How do we position what we sell to fall under one of those strategic initiatives?  It doesn’t mean we have to solve the whole problem–we just have to be able to take a bite out of it.  We have to be able to demonstrate that what we do helps them address one or more of their top 2-3 strategic initiatives.

Recently, I spoke to a very clever sales person.  She recognized that her solutions weren’t really important to her customer–that is, they were very important in a part of the organization, but at an executive level, where the investment decisions were being made, her solutions weren’t on their radar screens.  However, she learned that customer satisfaction was a top priority.  The customer was being pummelled in the markets with customer satisfaction issues.  Their competition was attacking them, customers were fleeing.  Customer satisfaction was the most critical issue the top executives were dealing with.  She and the department head–the person who really wanted to buy her solution developed a new strategy. 

They looked at how the solution would impact customer satisfaction.  It wasn’t something they normally focused on–primarily their solutions focused on internal operational efficiency, but she knew that wouldn’t sell.  The question they confronted was “How do we link what we are doing in this department to improving customer satisfaction?”  They were able to develop a case where they could show the solution contributed to the focus on customer satisfaction.  It didn’t make a big dent in the customer satisfaction issues the executives were facing, but it took a bite out of that problem.  That’s all they needed to get approval to go forward.

Do you know what your customers’ strategic initiatives are?  Do you know how you help your customer with those initiatives?  Until you can answer this, you are wasting your time and your customers’ time.

This needs to be part of the qualification criteria–not just yours, but the buyers you work with at the customer.  What you sell is important to someone at the customer.  They want to talk to you, they want you to help them solve their problems, they want you to help them think about their parts of the business differently.  They are eager for you to create value.  But if what you and they are doing doesn’t fit within the strategic priorities of the enterprise, if you can’t find a way to show the solution addresses one of more of the top 2-3 priorities, you are setting yourself and your customers up for failure.

It’s important for you and the customer to qualify the importance of what you are doing.  It’s a tough, but critical discussion.  Customers may not want to have it–their egos are involved as well.  It’s hard for them to understand their function may not be at the top of the hit parade of their executives.  But if we don’t have those discussions and mutually develop a strategy go be a part of what’s important, we’re wasting time.

But what if, however clever you may be, you just can’t find a way to be important?  You still have to sell, what do you do?  I’ll address that in an upcoming post.

(By the way, if you are struggling with these issues, call us up.  We’ve been working with lot of organizations on strategies to overcome this.  We’d be glad to explore these with you.)

Related posts:

1. Buying Isn’t Important, It’s The Results Of Buying That Are Important!
2. How Important Are “Techniques” To Sales?
3. How Important Are Partnerships To Your Sales Strategies?

There has been an important revolution in marketing thinking over the past years.  The move from thinking about campaigns to rich content programs and nurturing is important.  It recognizes something important, that customers want to learn, they want to be educated.  These programs enable us to develop “relationships” with customers and nurture them up to the point of their deciding they need to take action and start a buying process.

In our nurturing programs, we design them to have the customer take different actions through the program that help us gauge their level of interest, their urgency, and their readiness to buy.

This is important and needs to be the cornerstone of our marketing programs.  But there is a problem with this–it requires a customer to have an interest–to want to learn–to want to consider a change, to be thinking about their needs.  Not necessarily to do something today, but to be thinking, “perhaps we need to change at some point in the future, I should start learning and looking around now.”  In essence, nurturing works best when the customer raises their hand.

But what happens when the customer should be raising their hand, but isn’t?  What about the case where the customer is so busy just surviving day to day?  What about the customer that isn’t looking to learn, that isn’t thinking about the future, who isn’t thinking about how they might improve their business?

They may never be a part of our nurturing programs because they don’t recognize the need to be nurtured.  They may be part of our programs, but they aren’t taking the actions they should be taking—but aren’t.

Pull is an important part of developing the customer need, knowledge and enabling us to enter a buying cycle when decide they need to buy.  But I think push is still critical.  But it’s push in a very different sense.  It’s helping the customer recognize that they need to change.  It’s helping them understand they are missing an opportunity.  It’s helping them understand that them see new ways of running their business or function.

Sales people must bring ideas to their cusotmers!  Sales people must provoke and challenge their customers.  Sales people must create the reasons for customers to raise their hands, to say–I need to do something now–entering into a buying process.  Alternatively, to say–that’s something I need to start looking into.  I might want to do something later.

I get concerned as I start to see the sales pendulum swinging to “pull” oriented sales strategies.  I think exclusively relying on pull–which I see many organizations seriously considering is irresponsible.  It’s not because we “aren’t” driving our sales growth as aggressively as possible–though that is irresponsible.  But it’s really irresponsible because we see that our customers are missing opportunities to grow and improve and we aren’t taking action to help them understand this.  It’s irresponsible because our customers often look to their sales people for ideas–to understand things that are happening in their markets, best practices for their functions, how to be more efficient.

We have to help our customers understand new opportunities–if we are truly customer focused, value based, trusted advisors, we need to get them to raise their hands.  Our nurturing programs may not do this.

Creating great value for the customer, developing meaningful relationships requires a careful balance of push and pull.  They can’t exist by themselves–we can’t have push only strategies, nor can we have pull only strategies.  We have to purposefully execute both.

Related posts:

1. The Importance Of Push And Pull In Sales
2. Who Owns The Customer?
3. Moving From Customer Acquisiton To Customer Engagement

Over the past few months, I’ve been involved in a lot of discussions on sales compensation.  Last quarter, the conversations focused on commission and bonus plans people were looking to put in place for this year.  Last week and this week, I’m involved in a lot of discussions about people being disappointed in the bonuses they received or didn’t receive for last year, how to manage the issues and so forth.

We talk about pay for performance all the time.  Everyone likes pay for performance when there are great years.  When we’ve blown out the numbers or overachieved our goals, people are excited about pay for performance.  But when we have had a tough year.  When business is down or we haven’t met our goals—despite how hard we worked and how much we tried—we don’t like pay for performance.  I can’t count the discussions I’ve had about, “my people think they should be paid for their hard work and effort.”

I have to admit I’m a little hard nosed about this topic.  We can’t have it both ways, it’s just an insane argument.  When we perform well we should be compensated for it.  When we perform poorly, we should be compensated for that performance—not our effort.  If our performance has been down from the previous year, our compensation should be less than the previous year.  We’ve produced fewer results.

I suppose it’s human nature to focus on ourselves and our compensation.  It’s natural to always want to see progression and increases.  But failing to produce results impacts more than our compensation.  It ripples through the entire company, it impacts shareholder perception, suppliers and others. 

If the sales organization as a whole doesn’t produce results, people lose jobs.  Even though we have worked very hard, even though we have put in long hours, we haven’t produced the results.  We can’t pay the bills in the organization, we can fund new projects and programs through good intentions and hard work.

Accountability is tough.  There are upsides and downsides.  We can’t choose to be happy with the upside only and not have to bear the consequences of the downside.  Accountability is blind to that.

I’m tough on this.  People say, they should be better compensated.  My answer is very simple, you can be better compensated.  It is totally in your control.  Meet or overachieve your goals.  Your compensation will increase when that happens.

Perhaps my view was shaped many years ago when I was having a similar discussion about my compensation with my manager at the time.  I thought I deserved an increase because of my dedication and efforts.  His response was succinct and clear:  “Your increase will become effective when you become effective.”

Are you being effective?  Are you achieving your goals and producing results?  If you aren’t you have no basis for any discussion on your compensation.  Sales is a job in which we are compensated for our performance, so it’s our responsibility to perform.

Related posts:

1. Performance Management And Accountability
2. Compensation Drives Sales Behavior? Is Compensation The Only Tool For Managing Sales Performance?
3. Pay For Performance?