What are the 3 levels of sales qualification?

CSO Insights’ latest global study of sales forecast accuracy suggests that - on a deal-by-deal basis - it is at close to an all-time low at 46.5%. To put that in context, simply tossing a coin would give more accurate results. 

Apollo B. (2013) in recent study of CEOs and Sales Leaders identify that the two primary root causes are poor sales qualification and ineffective (sometimes spectacularly incompetent) sales execution.

When we dug in and tried to understand what the top performers did differently, two key patterns emerged: they saw qualification as a process, not an event, and they qualified deals at multiple levels: account, opportunity and sponsor(s).

Is sales qualification process or an event?

In a complex, often dynamic sales environment, it’s dangerous to see qualification as a one-time event or stage. Qualification is something that happens progressively, and can and should be refined throughout the life of the project.

Top qualifiers typically revisited their qualification of projects at regular intervals, and often explicitly re-qualified every deal before allowing it to be promoted to the next phase of the pipeline. 

Weighted scoring systems, and additional stage-related questions were regarded as particularly useful - as was management insistence on formally re-evaluating projects against clear (and often progressively more stringent) criteria as the deal evolved.

It’s essential that you avoid making the system over-complex, or replacing informed judgement with mechanical processes. You should start by evaluating your recent wins and losses and looking for the handful of indicators that can be most strongly linked to success or failure.

The 3 levels of qualification

Apollo B. (2013) identify that highly effective qualifiers look at a hierarchy of related factors when determining which projects to invest in.

1. Organisation-level qualification 

• At the highest level, they judge whether the prospect organisation is a company they want to do business with, and have the potential to establish a profitable long-term multi-project relationship with. This is often the earliest level of qualification: it can pre-date the identification of a specific opportunity.
• Top qualifiers typically have a clear sense of what an “ideal customer” looks like, and these criteria are more likely to be documented and shared across the organisation, and marketing tasked with reaching out to and into targeted organisations.

2. Opportunity-level qualification

• At the next level, top qualifiers have a clear sense of what they are looking for in specific projects or opportunities - factors that determine whether the customer is likely to buy anything, whether they are likely to buy from the vendor, and whether the deal is likely to be profitable even if the sale is made.
• The specific factors will vary somewhat from one product or market to another, but in most situations some variation of the Pareto principle will apply: a relatively small number of indicators will have the highest predictive value.

3. Stakeholder-level qualification

• The third level of qualification relates to the stakeholders, sponsors and decision-makers who are involved in the project. A critical question is whether your putative sponsor or champion is a true “mobiliser” - someone who has the power to make change happen within his or her organisation.
• Top qualifiers we have spoken to regard qualification of their sponsor(s) as a critical element in determining whether to invest resources in the opportunity. There’s little value to be gained in winning the recommendation of someone who lacks the authority and influence to navigate their preference through their organisation’s internal approval process.

References 

Apollo B. (2013). Inflexion-Points: Smart Ideas for Accelerating Revenue Growth. The 3 levels of sales qualification: account, opportunity, sponsor. Retrieved May 8, 2013 from http://www.inflexion-point.com/Blog/bid/95959/The-3-levels-of-sales-qualification-account-opportunity-sponsor 

Blaž Mertelj

Managing Director & Senior Consultant

Solution Selling – Where’s the Problem?

Selling undifferentiated products is tough.  Margins are declining, competition is increasing, and the buyer has all the power. Wouldn’t it be so much nicer if you could sell highly profitable value-added solutions instead? 

Apollo (2009) in artilce Solution Selling – Where’s the Problem? try  identify common attributes that organizations are facing when trying  to transform themselves from a product-driven to a solution-led sales organisation. 

The study found that the results were far beyond expectations. These include the following (Apollo B., 2009): 

• The transition is harder than it first appears – which is why many companies find themselves state of limbo that combines the worst of both worlds, saddled with expensive “value added” strategies that create little or no true customer value, but simply add cost and complexity to the operation. Before you decide that solution selling is for you, think carefully if you are prepared to commit your organisation to the change?  

• Becoming “solution-led” (or customer-centric, or any of the other related fashionable terms) can never be achieved simply by sending sales people on a course - it frequently requires profound changes to an organisation’s structure, priorities and mindset. 

• Much of the activity that are taken for granted creates no meaningful value to your prospects and customers, and will need to be eliminated. You will find that some – maybe many – of your people are unable to make the transformation. 

The potential of organisation  can be transformed in a way that can create lasting competitive advantage, if you are prepared to make the necessary commitment and if you can develop the right offerings for the right markets. But if you fail, you may end up worse off than you were before.

Organisations who have expressed their ambition to transform themselves from a product-driven to a solution-led sales organisation needs to (Apollo B., 2009): 

• Be thoughtful about whether becoming solution-led is right for your organisation;  
• Be sure that you are prepared to commit to the journey;  
• Be clear about where your real value lies. 

And remember: "If your prospect hasn’t acknowledged a problem, there can be no solution – and that the only one that is entitled to call it a solution is the customer."

References 

Apollo B. (2009). Inflexion-Points: Smart Ideas for Accelerating Revenue Growth. Solution Selling – Where’s the Problem? Retrieved April 22, 2013 from http://www.inflexion-point.com/Blog/bid/25660/Solution-Selling-Where-s-the-Problem.

Blaž Mertelj

Managing Director & Senior Consultant

Common Attributes of a Top Seller Set 3

The third set of common attributes that a top salesperson may possess are listed in the article, What Makes a Great Salesperson? Links Between Our Heritage and the Future, by Sardar and Patton (2002). 

These include the following:

• job commitment

• strategic orientation

• intellect

• mental alertness

• sociability

• authoritative

• dependability

• persistence

• courage

• ability to improvise

• inquisitiveness

• forcefulness

• tenacity

• straightforwardness

Combining some of these qualities with those that you already possess may be the perfect fit for you in your sales situation. However, having these qualities do not automatically guarantee success. 

Now that you know the attributes of a top seller and how to define a top seller, hopefully you will be on your way to being the best of the best in sales. Sales is a strenuous, challenging, and demanding occupation, and being a top salesperson is not easy. Having an idea of the attributes needed to be a top salesperson will help you achieve top seller status. 

Despite the studys and surveys presented in the previous three blogs we will try to find the answer in one of the next posts if top salespeople are born or made? Can anyone become a top seller by studying, practicing, concentrating, and focusing on his own performance? 

References

Ruth A., Wysocki A.: Top Sellers: Characteristics of a Superior Salesperson Institute of Food and Agricultural Sciences, University of Florida. http://edis.ifas.ufl.edu/sn004 [December, 2012].

Sardar, A., & Patton, M.A. What makes a great salesperson?: Links between our heritage and the future. Retrieved February 7, 2002 from the Internet. [Site cannot be linked. To access online, direct your browser to <http://130.195.95.71:8081/www/ANZMAC1999/Site/S/Sardar.pdf>. 

Blanka Cigler

Senior Consultant, Coach

 and Project Manager

Common Attributes of a Top Seller Set 2

The second set of common attributes were identified by Drs. Jeanne and Herbert Greenberg. They suggest that a salesperson needs three basic traits to be successful: empathy, ego drive, and ego strength (Greenberg and Greenberg, 1983).

Empathy is defined as the ability of the salesperson to relate to customers effectively. An example of empathy is where a salesperson making a lot of money is selling insurance to less fortunate individuals. If the salesperson understands that the customer can only afford the bare necessities, he is more likely to make the sale by not pressuring the customer into buying something the customer cannot afford. In other words, being able to understand the customer's financial situation. Empathy is the guidance mechanism that allows the salesperson to follow the prospect through evasions and objections until the prospect's real needs are targeted and the sale is closed (Greenberg and Greenberg, 1983).

Ego drive is defined as gaining personal gratification by persuading another individual to do what you want him to do. The Greenbergs believe that the ego-driven individual is only satisfied when victory (the sale) is achieved. An example of ego-drive is where a salesperson is on the road visiting prospective customers, but he keeps getting rejected. In other words, the ego-driven individual will not be happy until he has made the sale. Ego drive is the motive force launching the salesperson toward the potential customer (Greenberg and Greenberg, 1983).

Ego strength is defined as the resilience to move onto the next sales situation after being rejected. An example of ego strength is where a salesperson pursues the customer until the sale is finished. In other words, "never give up.” Ego strength is having the stamina to follow the prospect through evasions and objections until the sale is closed (Greenberg and Greenberg, 1983).

While deficiencies in empathy, ego-drive, and ego-strength can guarantee sales failure, possessing them does not automatically guarantee sales success (Greenberg and Greenberg, 1983). In addition, having the ability to deal with complex ideas and concepts, make quick analyses and judgments, negotiate systematically and persistently, and manage/organize time are also traits that can improve sales performance. 

References

Greenberg, H.M., & Greenberg, J. (1983). The personality of a top salesperson. Nations Business. Retrieved February 6, 2002 from http://www.calipercanada.com/personality.htm.

Blanka Cigler

Senior Consultant, Coach

 and Project Manager

Common Attributes of a Top Seller Set 1

In previous post Do you CARE about your customersI present Pareto’s Principle which states that twenty percent of all salespeople make eighty percent of all sales, which means eighty percent of a sales force fights over the remaining 20 percent of business. This statistic reinforces how important it is to be in the top twenty percent of sellers. These top salespeople possess personalities and abilities that best fit selling as an occupation. In addition, 55 percent of salespeople have no ability to sell, and 25 percent have sales ability but are selling the wrong product or service (Greenberg and Greenberg, 1983). 

In the following three blogs I will presents three sets of attributes that researchers have identified for top sellers. Despite the studys and surveys presented top sellers are not born. Anyone can become a top seller by studying, practicing, concentrating, and focusing on his own performance (Basis International, 2002). 

Common Attributes of a Top Seller (Set 1)

The first set of common attributes comes from a recent study by the Harvard Business School. The study found that highly successful salespeople (BASIS International, 2002): 

•  do not take “no” personally;
•  take 100 percent responsibility for results;
•  possess empathy; 
• have above average ambition, empathy, and willpower and determination; 
• are intensely goal-oriented; 
• and can easily approach strangers. 

In addition, the study found that knowing how to sell effectively is not always second nature; these attributes can be learned and incorporated into a personal development plan for reaching top seller status.

Authors Patton and Sardar (2002) define five related qualities that they feel describe a successful salesperson: 

• high energy level;
• self-confidence;
• hunger for money; 
• well-established habits of industry; 
• and the ability to see obstacles as challenges. 

They believe that top sellers possess a compulsive need to win and hold the affection of others (Sardar and Patton, 2002). Ruth and Wysocki (2012) agree with all but one of the qualities that describe the successful salesperson. They do not agree that a hunger for money is a quality that describes a successful salesperson. While a hunger for money can lead to short-term sales success, long-term sales success is best nurtured by cultivation of internal motivating factors such as the needs to succeed and to make a difference.

References

Ruth A., Wysocki A.: Top Sellers: Characteristics of a Superior Salesperson Institute of Food and Agricultural Sciences, University of Florida. http://edis.ifas.ufl.edu/sn004 [December, 2012]. 

Gitomer, J. (2001). Specific characteristics are what make top sales people tops. American City Business Journals. Retrieved February 6, 2002 from http://houston.bcentral.com/houston/stories/2001/07/02/smallb2.html.

Greenberg, H.M., & Greenberg, J. (1983). The personality of a top salesperson. Nations Business. Retrieved February 6, 2002 from http://www.calipercanada.com/personality.htm.

Sardar, A., & Patton, M.A. What makes a great salesperson?: Links between our heritage and the future. Retrieved February 7, 2002 from the Internet. [Site cannot be linked. To access online, direct your browser to <http://130.195.95.71:8081/www/ANZMAC1999/Site/S/Sardar.pdf>.


BASIS International. BASIS: Your Portal to E-Business. http://www.basis.com/advantage/magv4n2/portal.html [September 1, 2011]. 

Tamara Ćetković

Consultant, Coach & Project Manager

The Difference between Tellers and Sellers

What is the difference between a teller and a seller? A good source for determining the difference is The Top Ten Ways to Know You are a Teller or a Seller by Terri Levine (2000). 

Terry Levine, a business coach for sales and marketing professionals, has been the number one salesperson in two different national organizations and bases his teller or seller list on personal experiences. Although many people in sales title themselves “sellers”, in reality they are just “tellers”. 

All too often we fall back into the teller mode. To be a successful as a salesperson or a top performer in the sales industry, you need to be an effective seller not an effective teller. Figure 2 distinguishes tellers from sellers (Levine, 2000). Which one are you?

References 
Levine, T. (2000). The top 10 ways to know if you are a teller or a seller. Coachville Coach Training Resource Center. Retrieved from http://www.topten.org/public/AF/AF102.html.

Blanka Cigler
Senior Consultant, Coach
 and Project Manager

Do you CARE about your customers?

In the era of modern communications, it’s become easy to lose track of the most effective sales tools. Too often, the sales process has become one of faceless and nameless entities submitting bids via telephone, e-mail or fax. Or the process has been diluted so significantly that only one sales call is made, although statistics show that more than 75 percent of all sales are made after the fifth call.

Is it any wonder that Pareto’s Principle states that twenty percent of all salespeople make eighty percent of all sales, which means eighty percent of a sales force fights over the remaining 20 percent of business? This doesn’t mean that the top 20 percent are incredibly different; they just tend to do the little things better and win the close ones.

In today’s competitive market it’s more important than ever before to understand the sales process. Have you ever been told that prospects only want to know: What is the price? How long is the warranty? How long have you been in business?

Under these conditions, it’s even more important to understand the process. Have you ever lost a contract to a competitor who is higher in price? Have you ever purchased an item that was not the lowest priced? Why did you make the decision? Did you feel that the salesperson understood you? Did you gain a higher level of confidence in the company you chose over the company you did not? There it is — the sales process at work.

How can you improve your sales effectiveness?

Listen. Pay attention and keep up with the conversation going on. Do you finish their sentence in your head or out loud? Do you have a response before they are done speaking? It sounds obvious, but if you’ve ever been told you could sell ice to Eskimos, you need to be a better listener.

Listening is a difficult task as well as very effective sales weapon. Silence makes people uncomfortable and someone is going to fill the void. The professional should know better and resist the urge to chase a question with an easier question. For example: “Mr. Prospect, how much have you put aside for this project?” Silence. “Mr. Prospect, if you’re not sure, how about a ballpark figure?” Each time you feel uneasy about the silence, take a deep breath and slowly count to five. You’ll be surprised by what you learn.

C.A.R.E. (Communicate, Articulate, Respect and Excite), about your client:

• Communicate with them and try to understand what makes them tick. Are they new and feeling overwhelmed with responsibility? What is the history of the decision-making process? Who are you competing with and how was that decision reached? Every sales opportunity is an opportunity to make a friend and learn about your competitors firsthand.
• Articulate the most important benefits your prospects will gain by doing business with you. You should have a list of the 10 key benefits customers receive when purchasing your product or service. After talking with your prospects, you should be in a position to articulate how your benefits will suit their needs.
• Respect their time, and make them respect your time. Determine the ground rules. At the appropriate time, ask your prospects how long they have set aside for this meeting. Then stay within that time frame and end the meeting on schedule. This dependability will help you set future appointments. Schedule the follow-up appointment before leaving.
• Excite them. If you don’t believe your product or service is the absolute best choice, why should they believe it? You need to excite your prospects about your solution to their problem. Excite them about the product’s or service’s benefits, the ways it will make their life easier and how it will create more time for them.

In this new era of technology, it’s more important than ever to personalize the sales process. Differentiate yourself and your company. You’ll increase your sales through stepping around the impersonal methods of communication that are all too prevalent in today’s business world. 

This article is extracted from: Ken Lundin: Sales Techniques, Sales Consulting. PaintPRO. [URL: http://www.paintpro.net/Articles/PP501/PP501_SalesSilence.cfm], 11.04.2013.

Blaž Mertelj

Managing Director & Senior Consultant