4 Solutions That Will Protect Your Business

It’s a fact, attrition is going to happen to your territory, your sales team, and your organization – always has, always will. In short attrition is inevitable. The key question is what are you doing about it?

Wikipedia refers to this KPI as customer attrition and defines it as follows…

Customer attrition, also known as customer churn, customer turnover, or customer defection, is a business term used to describe loss of clients or customers.

I have seen from an up close and very personal perspective how sales attrition wreaked havoc on my career, and later other businesses by not have a strategic plan in place. In doing so it affects everything- your quality of work, your career and your family. One day all is well, then a key customer makes a decision to leave, or you lose an RFP that you had counted on and everything changes. Sound familiar? Are you there now?

It doesn’t have to be that way. There is a solution.

Going forward let’s focus proactively on four proven principles on how your activity can trump your sales attrition every time. Will it go away? Nope, not all but by applying each of the four steps you can create significant sales synergies that will protect you and your team well into the future. But you have to begin now. There are no shortcuts!

Let’s set the stage with a real life experience. A few years back I was speaking with a member of the senior management team. He mentioned that he had gained market share with his top three customers but his top line sales were not reflecting this growth. The fact is that attrition was eating away at his base of business in small incremental ways that had gone unnoticed affecting the top line. One key cause was due to the fact that he was losing market share with many customers that were not in their top 10 tier. In short, the competitor was taking market share one bite at a time. This combined with no strategic or tactical ‘customer growth plan’ played a huge role. To make matters more exciting I learned that new business growth was not a real priority and as a result an active pipeline was not in place.

This is but one example that comes to mind. I am sure you could site several examples as well.

It doesn’t have to be that way – let’s take a look at four solutions that collectively can create solid, healthy activity that can trump attrition.

• Existing customers:

1. Retain
2. Grow (organically)

• Former customers:

3. Recover

• New customers:

4. New Business Acquisition

Let’s take a closer look at each of these solutions.

• Retain – these are defined as customers where organic growth is limited or non-existent. In short the customer is sending you the majority of their business. None the less, they must be protected, and nurtured with an active plan
• Grow - these are defined as customers that offer organic growth opportunities that can lead to huge margins for your company.
• In many cases businesses that create customer retention rates by 5% saw increases in their profits ranging from 5% up to a whopping 95% ref. Frederick Reicheld of Bain & Company
• Recover – to focus on this segment there are typically two types. Those that have chosen to leave fully by pulling all of their business, or those have left partially and have only transitioned a portion of their business to a competitor.
• New Business Acquisition – studies show that acquiring a new customer can cost 6-7 times more than retaining an existing customer. None the less new growth is the lifeblood of any business.

Each of the above solutions requires a different skill set and will take a significant level of time and commitment to set up. Dependent upon your organization they may be handled by different departments. For example ‘recover’ may be handled by a focused area of customer service. New business acquisition typically belongs to sales while customer retention is handled by marketing.

Regardless of your model, each of these are important to your survival and success.

Our goal is to offer proven solutions that will inspire you to create a road map and blue print that will encourage and strengthen your position in the market place by using Activity to Trump Attrition.

To your success,
Andy

Are you kidding me? Really?

This past week I was asked to participate in a sales appointment with one of my customer’s national reps – this guy is a true professional, has worked hard to qualify, conducted a needs analysis, his prospects need and his company’s offering are in alignment, timing is good, etc. Needless to say I was excited and honored to be a part of the action.

The sales call objective around this appointment was to convince the committee that we had a viable solution, and could scale with their future growth.

You know the whole bit: preparation, confirming the appointment (just to make sure), and then travel adventure beginning with a 6:00 a.m. flight. Everything is lining up for a perfect setting.

We arrived at their corporate office a few minutes early, and are escorted to their conference room. We hook up our lap top and are ready to begin our one hour appointment.

In walks a party of three of the five decision makers, two with iPads and notebooks in hand – so far so good.

After a normal exchange of hand shakes, and business cards we return to our seats. Instantly we can tell that this is not going to go as planned. Then bam – the ring leader (who our rep has not met up to this point) says our schedules have shifted dramatically… I am sorry but 3 minutes is all that you have. The other two looked uneasy and shocked at his opening.

My first thought was, are you kidding me? There is obviously no time to review our customized power point and whip out the full color brochures (which they asked for by the way as part of our presentation).

The rep looked at me and smiled and then looked at each of the three and then focused eye to eye on Mr. Wonderful. What happened next was classic sales professionalism in terms of ‘connecting’ and using the power of questions. His first words were ‘we understand’ your schedule shift’ with that may I ask you a few questions? Of which the response was- of course.

Here goes…

1. Would you mind sharing with me what is your biggest challenge relative to XXXXX?
2. What are your requirements and expectations for our type of product offering?
3. How do you choose a supplier?

The first question and response took just under 2 minutes. In responding Mr. Wonderful seemed relaxed as did his counterparts. Now question number two – the same reaction, but the response pushed well over four minutes. Everyone in the room is totally engaged. Then came question number three.

All in all we concluded 45 minutes later. Mr. Wonderful was happy, felt comfortable, and has given the green light for his team to move forward.

Bottom line: This was a test, a test that meant moving forward or disqualification. The key influencer was not interested in a pitch or product knowledge. Instead he wanted a company/solution that he felt fully understood his challenges. He did not want to be sold but was interested in buying from a group that understood his business objectives.

Next time you only have three minutes, give these a shot!

To your success,
Andy

Sometime you have to stand your ground

Putting in the time, qualifying heavily and connecting with the true buying authority is key in any buying selling exchange. These steps were in place on the front en of the buying cycle.

Time for a face of face meeting.

On a recent road trip with one of my customers national reps we flew out late one afternoon for a morning meeting in Pittsburg. I’ll spare you the details but the meeting went well. We connected well and positioned our offering as a resource through basic questions. At the conclusion of our meeting, we agreed on following up with some key information and a date to determine next steps. Time to grab a coffee and head to the airport. I followed up with a discussion summary, received a thank you for coming, and thought we are gaining the long awaited traction.

Fast forward two weeks.

I followed up on the date and time as agreed, addressed the information that was requested and received then the decision maker responds with the generic/vanilla your offering is a commodity – ‘thank you for calling’. Wow my first thought was what happened since our previous meeting?

It’s now or never to test the real commitment to moving forward. Here goes – my next questions were:

1. Which portion of our offering do you feel best suits your needs?
2. If we decide to move forward what type of follow up strategy do you prefer? (note the ‘we’ as in my customer)?

Dead silence. Then a change in demeanor and a sincere response to both and a promise to place an opening order.

Two hours later an order was placed. The office was in a state of celebration.

Lesson learned. The timing was perfect, yet a consultative approach made the difference in moving forward.

Stay the course in the midst of your buying cycle. If you have a sincere prospect with a solid offering you can penetrate a long standing incumbent and accelerate growth for you and your organization. Be ready you may have to stand your ground.

To your success,
Andy

Does this sound familiar?

One of my customer’s senior rep. has been working to gain serious traction with a national player. Great chemistry, lunch at a recent trade show, several email exchanges – even common ground in terms of sports and the age of their children.

Bam! A rush order out of the blue appears, in fact a small order with high demands and short turn around time. The group rises to the occasion fulfills the order based on the buyers criteria hoping this equates to capitalizing on a competitors mistake or lack of preparation.

The rep reaches the now customer to thank him and to begin the cultivation process only to hear – great job in helping us with our fire drill. Translation – he is a back up supplier only to be used in rush cases. You have been there as have I. Some may view this as a proving ground while in reality under the existing circumstances it is a dead end.

What really happened? Simple. The incumbent ran out of product and a quick fix was in order.

Lets look at this from a positive and creative perspective on what you can do instead of what was not done.

5 Tested solutions:

1. Qualify- research on the front end to make sure their business, and objectives are in alignment with your offering and solution.
2. Identify- research to discover the right decision maker.
3. Leverage- your existing relationships to refer you to the right person.
4. Connect- with the decision makers to discover their requirements and expectations in choosing a new supplier.
5. Cultivate- with a planned follow up strategy that clearly communicates new ideas and how your service can create a solution for them.

Best to you in using these to create a healthy prospecting experience, a healthy pipeline and new business opportunities.

To your success,
Andy

You are working hard, and have done so from day one. You have exceeded well beyond your expectations when your adventure in sales began. You have developed an experience curve that is respected and valued by both your customers and organization. You are viewed as a ‘game changer’.

But perhaps in recent months you have noticed that the zip isn’t there. Your passion has waned. Overall your ‘game changer’ results and influence are not up to par. You ask, “Is it the economy?  My offering? My organization?”

Truth is, each of these could be contributing factors, but before you halt your analysis – have you considered that a portion of what you are experiencing may be you? Is it possible that you are just on ‘autopilot’ and your experience curve is actually working against you?

For sometime now, your experience and instincts alone have served you well (and they will in the future). But if you have discovered that the reason behind your performance shift is that you are operating on autopilot, then today is different. To regain the performance levels of which you are capable, hitting ‘refresh’ and abandoning autopilot is a must!

Below are 5 proven principles to regain your ‘Game Changer’ level of performance whether you are a sales professional or sales leader. I would encourage you to take action before someone or your circumstances takes action for you:

1. Hit the streets with a new rep calling on existing customers – early and often.
2. Get involved with their on-boarding process. Avoid leaving them alone to sink or swim. Once they figure it out, in their mind they will no longer need you.
3. Become a player coach by creating and nurturing 2-3 prospects through the buying process.
4. Share your activity and accomplishments with your team as you advance through the buying cycle. This builds trust as you lead from the front and advances their learning curve.
5. Once you land a new piece of business (and you will, you always have) transition it to a deserving rep.

Do these things and you will be  a renewed ‘game changer’ with an increased level of influence.

To your success,
Andy

This morning in leading a sales development exercise one of the participants shared that she is experiencing a rather long buying cycle with one of her key prospects and that her solution is now gaining more traction.

After a few minutes another rep stated that the definition of traction seemed to be different from one rep to the other.

As the group discussion continued it seemed to make sense to take a deep dive and let the creative juices of the group flow – game on! At the end of our session we divided our thoughts into two separate groups – what prevents traction from occurring, and what does it look like in action.

First and foremost we defined traction as it relates to our craft- professional selling.

Traction – the steps in gaining sincere interest with your offering and compressing the buying cycle to reach a solution that achieves and maintains profitability for your customer.

What prevents traction from happening? (The following were just a few)

• Calling on the wrong person
• Bad timing
• Failure to articulate value on the front end
• Falling short in gaining trust

Now for the fun part! What does traction look like in action?

• You have buy in – i.e. the top person wants it to happen
• The buying cycle is compressed – with measurable progress
• You become a part of their culture
• A spark that provides great hope and encouragement

What started out as a normal exercise this morning, finished with a group that understands and sees the benefit of gaining traction from each of the prospects and customers alike!

Now that I am on the plane headed home I get to offer my definition:

Traction is the thrill that keeps all of us hanging in there and coming back for more as we work our craft.

To your success,

Andy

The first half of January is in our rear view mirror, and we have the remaining half to go.

In your world, all may be in great order and your year is off to a great start. Or you may be in a position where you have inherited a sales goal that is well above your 2011 trajectory, in which case time is not on your side.

In either case, I would be willing to bet that new business acquisition could increase your sales trajectory well above your own expectations.

The reason I know is that I have been there many times. In fact, over the past few days I have spoken with several reps across multiple industries that are either experiencing the thrill of a new year, or are on the verge of deep concern as they chase their ‘new number’.

First of all, relax. Second, place your number in a folder and focus on building trust and creating value – in doing that your number will take care of itself. There is a proven concept that you know about, but I would like to offer a friendly reminder (we all need reminding from time to time). Remember the practice of asking for a referral from a satisfied customer? You have developed and invested months and years in these relationships – leverage them in a way that benefits them and you as well.

Below are three key benefits in leveraging your relationships to create solid referrals that will create huge upside for you:

1. A solid referral to an interested prospect will shorten the buying cycle.
2. You will enter the new relationship in a stronger position because you now have reduced the time to build credibility.
3. Once the process begins you will be given access to others in your prospect’s organization that would have taken months or years to discover.

There may be instances where your customer places a call to your prospect and they are willing to meet via phone or face to face but the timing is off or the political landscape does not work to your advantage. That is part of sales. None the less, you can use this as an opportunity to ask their advice in suggesting one of their peers that may benefit from your service or product offering.

These are but three of the many benefits that are available to you in leveraging your relationships in creating solid referrals. Give them a shot – you will be glad that you did.

To your success,
Andy

It has been said that the people we learn from the most are not the ones who teach us what we did not know before, but the ones who help us apply our skill set and experiences that we have quietly honed, give it expression and speak it clearly and boldly to benefit others. This is our desire at Directional Achievement and purpose in our blog series and service offering.

Over the past several years you have been faced with challenges unique to prior years in your profession. As a sales or organizational leader, you have been required to operate with limited staff and limited resources. As a sale professional, the landscape has changed and you have been forced to adapt to these changes with your customers and prospects while facing sales growth demands.

A friend of mine stated recently that to connect and inspire my customers in today’s market “I had to return to the basics in today’s world, not 15 years ago”.

For many of your customers today it is about short-term survival. They are looking for you to provide more value, lead them with your knowledge, and develop a genuine connection. The majority are not looking beyond Q2.

In terms of new business acquisition, to advance in the buying cycle they are looking to see how you can hit the ground running and that, once in, can provide solutions quickly and efficiently.

Here are 3 Creative Tips to help you optimize your sales in 2012

1. New ideas – Get to the benefit quickly and distinguish you and your offering up front.
2. New techniques – Sales principles do not change application but techniques do when trying to connect and convey value.
3. New knowledge – Knowledge provides direction and establishes a clear cut path and commitment.

Your customers and prospects are special people. Inspire them with your creativity and move beyond your competition that is operating with a Rolodex in an iPad World.

To your success!

Andy

We are five days into the New Year and I see a bright year ahead for us. I say this because I am one of you! I am on the streets carrying the flag, working to deliver value, differentiating my offering and satisfying my customers just like you are – we are on this sales journey together.

Today, January 5th is a great day, my third grandchild was born and I experienced earlier today refreshing yet sustainable changes happening with several representatives that are part of my client base. These changes came from finding, implementing, and paying forward 3 Power Questions & notes that I found in a forgotten journal.

These are….

1. What do you want?
2. What are you doing about it?
3. What do you need to abandon that is not working?

Before we go any further, please let me explain.

In 2008 I was on a return flight to Orlando and happened to be sitting next to a gentleman that was interesting to say the least. During the course of our flight we began our chat in typical fashion and in a few minutes time I knew this guy had real substance based on real life experiences. My business was growing, and while his discussion was thought provoking, I took a page of notes thinking that these would be needed for a ‘later time’, or a ‘rainy day’ as it were. After all I was doing well – little did I know (ever felt this way).

The flight landed, we shook hands promising to connect, and the notes were tucked away in a journal that later found it’s place on a shelf in my study – forgotten.

Fast forward to June 2011.

Circumstances had changed somewhat since 2008. I had experienced business challenges that I had never dreamed possible. Early one Saturday morning I was looking through my library and happened upon several sales books that I had forgotten about, plus the forgotten journal. I picked up the journal and the Delta ticket stub was still in place, taking me to the page with a title at the top [3 Power Questions].

I first read through the questions and a sense of clarity hit me like a bolt of lightening. I read them a second time and had an entirely new perspective. Beginning that Saturday morning June 11th my sales journey took on a refreshing perspective and is going strong today as we head into a new year. In reading and applying these 3 Power Questions & notes they can do the same for you. The first step is to be willing to make some new choices; the second is to take them one at a time. You will be glad that you did – I promise!

I would like to wish you all the best to you in 2012. If you will contact me, I will gladly provide for you the rest of the notes portion of my 2008 discussion which is the most thought provoking and career changing part of all.

By the way, if you are the gentleman that shared this treasure trove with me, please contact me immediately. I along with 40 plus sales professionals, are deeply indebted to you and your insight.

Create your sales legacy,

Andy

You must have a strong ending to assure a strong beginning!

In writing each blog article, my focus is on you and my goal is to create as much relevant value as possible. That said I hope that you will indulge me for the next few sentences.

Today was a special day. While waiting in the crowded Crown Room in Atlanta I headed back for another cup of their finest java. There he was, right there in front of me. My first mentor. After a few words to break the ice I was relieved that he remembered me from our earlier years of working together. This person is the best leader that a sales professional could ask for. Today at 71 he is going strong- not because he needs to, but that he chooses to. This guy is a warrior! (I would love to peek at his financials.)

I returned to my seat and he and three of his associates joined me. Once the pleasantries and digital photos on our iPhones were exchanged he shifted into full mentor form. His first question although casually presented was “How is your year going to finish?” Tagged to that was “What are your goals for 2012?” My face turned red, but not from not being prepared, instead it was due knowing that what he was asking was true.

How about you?

An eventful year is slowly coming to a close and you hear a lot about ‘finishing strong’ and rightfully so. Unfortunately, many people back off and miss the potential awaiting them even up to the last day of the year.

As our discussion continued my mentor kindly reminded me of a statement that still holds true:

“You can not have a strong beginning without a proper ending”.

In short, creating a strong finish will create a strong beginning.

As you close out 2011 and prepare for 2012 please allow me to pass along a world-class reminder:

3 Steps to assure a strong ending which leads to a strong beginning

1. Make everyday count. Avoid the trap of following the pack and ending the year prematurely.
2. Contact those tough to reach prospects. Your competition is at the mall. Set up an appointment for early in 2012.
3. For those that choose not to grant an appointment identify a topic that is a trigger event to pick up with after first of the year.

Today was a special day and I hope it was for you as well. It was great to be reminded that ‘you can not have a strong beginning without a proper ending’. I hope that you take the time and have a strong ending for 2011, which will create for you a strong beginning and a successful start for 2012.

To your success,
Andy