How to Leverage 80/20 for Sales Success

You’ve all heard of the 80/20 rule.  Also called Pareto’s Rule.  It’s one of the simplest, hardest principles to consistently apply. But boy does it pay off!

Take a quick test.  Look at your reps’ weekly or monthly to do list.  How many times do they fail to completely finish it?  How does that make them feel?  Are they finishing the goals that will make the biggest impact on their quotas and their lives?

Do your salespeople a favor and help them apply 80/20. Here are some ideas.

One – work on selling deeper into their existing customers before letting them pick ‘x’ new customer targets.

Often I see salespeople that aren’t getting more share of their existing customer business.  They either don’t target getting more share or they assume that the customer that buys from another company wouldn’t consider buying more from them. But these are great ‘Stage 0’ conversations to proactively engage with the customer.  It might sound as simple as this:

“I’d enjoy the opportunity to learn more about your total business needs and how we might better serve you. Can we get together to discuss?”   

Two – consider firing some of their existing customers.

Who would walk away from existing business?  I have a client that does this through its ‘product line simplification’ process.  It’s in their DNA to do this.  They spot low volume, low margin products that hurt the bottom line. Not only do these products return low margin but they also gobble up production time that could be spent producing and selling higher margin products.

Three – practice saying ‘no’.

This might be the hardest for many salespeople.  They love the hunt right?  But getting better at saying no to business that will cost more to service and with customers that offer little potential for growth and volume is often good business practice.

What happens when your salespeople exercise any of these strategies is they are forced to double down on existing customers and those with truly attractive potential for longer term growth and volumes.

Good Selling,

Mark Sellers

Author, The Funnel Principle and soon to be released sales coaching book Blindspots: The Hidden Killer of Sales Coaching

Creator of The BuyCycle Funnel

Think of Rebounding When Coaching Salespeople to Prospect

How do you help salespeople prospect when they struggle to do so?

As a sales manager you may have that rep (or more) who struggles to add new early stage opportunities to their sales funnel.  Sometimes it’s a ‘farmer’ type who you’re trying to get to ‘hunt’ more.

During our clients’ Funnel Audits each month we inevitably discuss how to prospect to build healthier sales funnels.  It takes only a few cycles of Funnel Audits for us to know if a rep is generally more or generally less naturally inclined, and therefore competent, to prospect.

I realize this topic is a monster of possibilities but here I offer some of the simple ways we help our clients with this vital function.

A Qualifier

Many of my clients are SMBs that don’t have staff or know-how for running email marketing campaigns or lead nurture programs. Therefore much of the job of lead gen falls to salespeople.  You see why this can be a problem.

Here are ways we tackle this challenge.

Identify The Main Issue

I try to dumb down the prospecting challenge by asking the rep and manager these two questions:

Is your challenge more about getting access to the stakeholders in companies you have identified to call on, or

Is your challenge more about finding companies to call on? 

When the challenge is getting access we focus on these tasks:

1 – Are you targeting the right stakeholders?

2 – Is your message compelling enough to get their attention?

3 – Are you being persistent enough?

 

When the challenge is finding more companies to call on we focus on this:

1 – Are you sure you’re getting as much share of current customers’ business as you could be?

2 – Are there divisions or business units or lines of business within current customers that you could be referred to?

3 – Do you have a vetted target account list of potential companies?

4  – Are you being persistent enough?

 

See what’s similar? Again, I realize there’s more complexity to this challenge, but we have to start somewhere.  Often I find in my coaching that salespeople lack the persistence element.

Finding more companies sometimes means the rep needs to have ‘shorter term memory’.  They’ll say they don’t call on ‘x’ because ‘x’ turned them down the last time they pitched some business, or ‘x’ has been buying from competitor ‘y’ forever.  This may be true but it’s also defeatist.  Sales managers have to encourage reps to get back up to the plate again, take another shot, and keep trying, albeit with different creative approaches.

I think prospecting is a bit like rebounding in basketball.  Several years ago I taught my son’s 4thgrade team how to box out.  But in the games the boys who grabbed the rebounds were typically the ones who wanted the ball more, not necessarily the ones that boxed out well.  College announcers comment all the time that the team that wins the battle of the boards are usually the teams that looked like they wanted it more.

Prospecting struggles often come back to how bad you want it.  If you give up after a few tries of trying to see someone or break into a new account you’re doomed.  In my experience highly persistent salespeople are often rewarded by a stakeholder who finally gives in or even feels bad for not returning the call.

Good Selling,

Mark Sellers

Author, The Funnel Principle and soon to be released sales coaching book Blindspots: The Hidden Killer of Sales Coaching

Creator of The BuyCycle Funnel

Treat Success with Skepticism

Recently I attended the Global Leadership Summit (GLS) outside of Chicago and soaked in the ideas and wisdom of about a dozen speakers.  What an event!

Rasmus Ankersen is chairman of FC Midtjylland, a European football (American soccer) club in Denmark. He’s also the author of a best selling book called Entrepreneur.  He and senior leadership purchased the club several years ago and took a ‘money ball’ strategy to acquire competent but not high priced players.  The strategy is working.  He compared this strategy to that of another club that handed out big, long term contracts to the coach and players after an unexpectedly, wildly successful season.  This was an attempt to keep the mojo alive.  Unfortunately it failed miserably as that team collapsed the next year to the bottom of the league table (standings).  Ankersen says that a closer look at the data associated with the failed team’s one year success would have revealed its weaknesses and vulnerability.  Be skeptical of success.

One of my favorite stories in Henry Cloud’s excellent book Necessary Endings is the story of the remaking of Welch Allyn.  In short, a new CEO convinced the board and leadership that the strategy for the 100 year success of the company would be a recipe for failure for the next 100 years. They bought her vision, but not without intense and emotional debate, as you’d expect.  Who could be faulted for wanting to not change a thing associated with a generation of success?

For me, personally, these business stories mirror the individual journeys that we are gifted with while we’re earthly bound.  Like a contradiction, the solution is usually not obvious.  Internal maps and biases and selfish interests shield the view. It’s all the more confusing when the things that helped us climb and conquer in the first half life are now the things that hold us back from entering the second half life.

And yet within the contradiction is the hidden gem.  Cloud expertly says things almost always have to die first for other things to grow and prosper.  It’s easy to prune a dead branch of a rose bush, but do you have the wisdom and courage to prune the live branches that are the weakest and that will hold back the bush’s growth?  Great is the art of the beginning, but even greater is the art of the ending, says Henry Wadsworth Longfellow.

I ended a coaching session with some sales managers recently by addressing their frustration with some of their salespeople not embracing the new ways of selling that we’ve trained them in. Instead of letting that frustration bind them I said let it release you.  Ask yourself what this moment is trying to teach you.  Give it space and let yourself be taught by it instead of wasting the moment with haste to escape.  Instead of wondering how to get ‘Jack’ on board the program, ask why do I resist trying to understand better why Jack feels the way he does.  The short answer could be I’ve got a quota to hit and another meeting in 15 minutes and I need Jack to stop being so damned stubborn.  Asking and learning almost always gets you closer to a solution than showing and telling.

Ironically, one speaker at the GLS, a very popular guy these days, embodied the essence of treating success with skepticism.  His stories and anecdotes were oddly old and predictably lacked impact (how long have we been hearing the story of Kodak’s blindspot with digital photography?) Smart comedians don’t tell jokes about Cleveland anymore.  I’ll borrow a line from a column Peggy Noonan wrote years ago about an entirely different topic.  It’s as if this speaker has seen the movie but hasn’t read the book.

The speakers at the GLS that impacted me the most were the ones that were the most humble.  David Livermore took the top prize.  Toward the end of his talk he dropped a jaw dropping bombshell about his story that created a silence among the 10,000 attendees.  It was awesome.  It was real.  He not only read the book, he’s written it.

Years ago I was part of a company’s strategic planning efforts.  The board brought in a very competent, smart executive to forge new direction, to change the place up.  He told us ‘we can’t there from here. “ I took it to mean that the place we need to get to, we cannot arrive through the same paths nor with the same mindsets that brought us ‘here’.  Be proud of the success that has defined the past and be skeptical to think that ‘here’ will take you where we need to go.

Stay skeptical of success my friends.

 

Mark Sellers

Author The Funnel Principle

Author of forthcoming book Blindspots:  The Hidden Killer of Sales Coaching

Created the BuyCycle Funnel and Funnel Principle selling process