Services Sales Rep Development

Once the foundation has been established, some very productive - in terms of increased sales - development activities can begin. In this phase, the focus is on coordinating and aligning processes so that they are more efficient and more effective - with information and activities feeding each other to produce outcomes that are greater than the sum of their individual parts. Key elements of this solution set are:

• Negotiating and documenting evaluation steps

• Documenting the value of your offering

• Qualifying on sales cycle milestones

• Objection prevention

• Targeted proof

• Sales team management

• Account progress reporting

Comprehensive (vertical and horizontal) discovery:

Discovery was part of defining and documenting the solution requirements in the Establishment phase. The addition here is to make certain it is comprehensive - that all aspects of the problem have been explored. To be comprehensive requires identifying everyone affected by the problem and discussing with them the impact. That means the rep, or other designee, needs to move moving both vertically and horizontally through the prospect organization. This movement often gets many reps out of their comfort zone - as they have to have business conversations with different functions, rather than product conversations with like-minded individuals. It is also necessary, at this stage, to identify who will be involved in the decision-making pocess and what their role will be.

We separate out the problem exploration component to emphasize the importance of a full and comprehensive diagnosis of the problem, which far too often gets short shrift. Like the solution requirements, the outcome of the discovery process should be documented and confirmed by the prospect - with the likely omission of sensitive information on influence, politics, etc. In many instances, the amount of data gathered at this stage is both large and complex. To help organize the information, we have developed a means of summarizing the data for each individual and mapping out the relationships throughout the organization. Contact us if you would like to discuss this very useful tool.

Negotiate and document evaluation steps:

This is one of the most powerful tactics any sales rep can employ. We call it an evaluation plan, although it can go by many names. At a strategically key point in the sales cycle, the rep works with the prospect to develop a sequence of events they both agree to that will be used to evaluate the potential purchase. It is no slick sales trick or over-hyped closing technique. Instead, it is an upfront means to methodically lead up to the point where the prospect can make an informed decision about whether to buy from you. It is in essence a project plan for the sales cycle.

The evaluation plan includes all of the tasks (e.g., technical requirements, approvals, etc.) that need to be completed in order to make a purchase decision, and logically sequences them to mirror the buying cycle. Space does not allow a comprehensive review of and rationale for the specific components. The number of steps and length of the plan should be consistent with the complexity and urgency of the purchase decision. If it is a lengthy and complex sales cycle, then the plan should be documented. In one call or short sales cycles, it could be an oral agreement. The benefits of using an evaluation plan are probably too numerous to count. They include:

1. Managing expectations, keeping focus, and reducing the likeliehood that something will be omitted - which could delay or prevent the sale.

2. Guiding the prospect through a decision-making process, rather than using high pressure sales tactics.

3. Clearly letting the rep know when they can legitimately ask for the business.

4. Being a powerful qualification tool beacause it requires committment and action from the prospect - and as each step is successfully completed, the probability that it will result in a sale increases.

5. Providing visibility into opportunities, which helps improve resource allocation and forecasting accuracy.

Document value of your solution or offering:

The first and most important point to note about value is that it has to be from the PERSPECTIVE OF THE PROSPECT! Apologies for the shouting, but this is too important for there to be any doubt or to be misconstrued. Face the cold hard facts; as a sales rep, your opinion or estimate of the value does not matter. It is imperative that the prospect "own" the value. Therefore they have to explicitly state or confirm the value of your offering. In a lengthy or large sale, confirmation should always be in writing. In a short sale cycle or small ticket sale, it can be an oral confirmation.

Value is, in part, based on the benefits that will be gained. So you have to learn, from the prospect, what those benefits will be. In a B2B sale and some B2C sales (e.g., purchasing a major home appliance), those benefits should be quantified. There are some sales, mostly B2C, where the benefits may not be able to be quantified; but they can, and should, still be expressed by the prospect (e.g., "My wife will love this, and be so surprised" or "This pan will be so great for sauteeing"). Whether a tangible or intangible benefit, it needs to come from the prospect and confirmed - in writing, if possible.

But value is not just benefits. A value calculation has to also factor in the costs; and that needs to be a full calculation of all the costs. A full cost calcultion should include both immediate and future costs paid to you, and any additional expenditures going to other vendors. It is all part of the total cost to the buyer.

Knowing benefits and costs, the value calculation simply becomes: Benefits - Costs = Value. In some settings a formal return on investment calculation - in which more complex issues like the cost of money or opportunity costs - may be warranted; but in the vast majority of settings, the straightforward value calculation will suffice. Considering the cost of doing nothing - meaning the cost of doing business as they are today - also helps make a more compelling case for the prospect to take action. This is sometimes called the cost of delay.

Qualify on completion of milestones:

With evaluation steps documented, opportunities can be qualified on actions. Specifically, the completion of the key steps - termed milestones. Each completed milestone is a powerful indicator of the prospect's committment to both making a purchase and and of your standing in relation to the competition. As mentioned previously, the steps in the evaluation plan are strategically crafted and sequenced. Having some tasks early on that require resources from the prospect makes the plan even more powerful as a qualification mechanism.

As more steps are completed, the likliehood of a win increases. That enables the use of account-specific behavioral information to create sales forecasts. No longer will the organization be dependent on the opinions of sales reps to make revenue projections and business plans. Our customers see a dramatic increase in their forecasting accuracy from this data. We have gathered data from our customers on win rates that can be used initially. Once you have your own historical data, it can be used to calculate probabilities - which will increase forecasting accuracy even further. 

Objection prevention:

In the literature and training on sales, a lot of time is spent discussing how to overcome objections from the prospect. Some of it is useful. Much of it is a lot of hype that often does more harm than good. Learning how to effectively deal with objections is important and is something we teach. But, we emphasize a different approach to the whole issue - preventing objections so you never have to overcome them.

The research clearly shows that prospect objections are most often, to an overwhelming degree, the result of rep behavior. Understanding what behavior produces objections and learning how to act differently is far more effective than resolving mistakes once they have ocurred. And not surprisingly, objection prevention has many other benefits. Contact us to learn more about the source of objections and how to prevent them.

Proof targeted to key players and their specific concerns:

Because a comprehensive discovery was conducted, the rep knows the specific concerns of each key player. When it comes to providing proof, the rep can now target what is offered to each individual. Targeting proof has numerous benefits to both sellers and buyers:

1. Proof is more effective in adressing concerns

2. Providing proof takes up less of both the rep and prospect's time

3. Vendor resources are used more efficiently, lowering the cost of sales

4. The rep is seen in a positive light: attentive, responsive, professional, etc.

Sales team management:

The evauation plan and the related documenation serve as a powerful management tool in leading the the sales team. An established timeline for events enables sales reps to more effectively schedule resources. By having all the key account information documented, team members can prepare for their specific contributions and better understand what is expected of them. The outcome of those contributions are also more definitive, improving account reviews and providing valuable feedback for improving team performance.

Account progress reporting:

Account reporting can now detail the completion or status of specific milestones from the evaluation plan. This is a great advance from the mere activity reporting that was previously provided. Reporting on the status of specific milestones brings greater visibility into the progress being made in the account, more effectively guides account planning, and highlights both individual and organizational areas in need of further development.

Once processes are aligned, they can be optimized through further refinements and expansion. And expansion - of individuals, processes, and data - is the new key element in the optimization solution set. Individuals contribute above and beyond what is considered their core function. Processes support and fuel each other like never before. And, data drives decisions and actions processes to an unprecedented degree. The Optimization phase consists of:

• Mutual qualification

• Customer Success Factors and tracking defined

• Negotiation trade-offs based on organizational strategy

• Peer mentoring, coaching, training, and education

Mutual qualification with the prospect:

In the previous solution set, opportunities were qualified on the completion of specific milestones. In Opimizaion, that is elevated with a straightforward technique - ask the prospect to tell you that they think you are the best fit and explain why that is. Of course, you don't want to give the prospect too many opportunities to say 'no.' Strategically, this should only be done upon completion of a small number of very select milestones.

Tactically, the rep can take a sraightforward approach or what might be considered reverse logic. A straightforward approach would be something like, "Now that you have seen how your staff would use our automated payment processing system, do you think it will reduce time and increase productivity and do you still want to go forward?" The "reverse logic" approach would be to say something like "I am not convinced that we are the best fit for your needs, what do you think?" In either case, the prospect is qualifying themself and arguing for why they should buy from you.

Customer Success Factors and tracking defined:

Customer Success Factors (CSFs) are specifc items that the rep and prospect agree will be tracked to monitor the outcome of the use of your product or service. CSFs are tied to the business objectives of the prospect. Potential CSFs are usually generated during discovery phase and often show up as components of the ROI calculation. But, CSFs are not the same as the ROI, and typically should not be monetary because too many other factors enter in. Some examples of CSFs are: time, volume, error rate, productivity, etc. In addition to the CSFs themselves, tracking and reporting methods also need to be established. Periodic reviews should be agreed to in which the CSFs are reviewed with the buying committee and/or other stakeholders.

The primary purpose of CSFs is to demonstrate to both the customer and vendor the positive outcomes from the purchase; but they also serve many other purposes. CSFs can note areas that are not achieving the expected levels of success, which can then be opportunities for up-selling and cross-seeling additional products and services. The metrics can be used to create powerful case studies and whitepapers, which can be used in marketing campaigns and as proof to other prospects. Many customers are proud of what the outcomes they have achieved and are willing to share that with their peers. If so, they can be enlisted to participate in educatonal seminars, webinars, etc. And they will often have much greater credibility with their peers than the vendor ever will

Negotiation trade-offs are focused on the overall benefit of the organization:

This will not be a review of negotiaitng tactics, Instead, the emphasis is on the strategic component of determing trade-offs - what you will give up and what you will ask for - based on the larger goals of the organization. 

During final negotiaitions, the reality is that the rep is typically concerned with one thing - What is is going to take to make the sale. The consequence is that the rep may discount as much as possible, give away additional products, offer free services, or any other incentive to get the business. But some monetary concessions have a greater true cost to the vendor than others, and many have a greater value to the buyer than the true cost. Strategically, the organization should prioritze what they are willing to give up and convey that to reps; and tactically, reps should have uncovered much earlier in the sales cycle which concessions have greater value to the buyer.

Most incidious of all, reps usually make concessions without asking for anything in return. Most of us know that to be bad negotiaitng practices; but under the stress of actual negotiations, it frequently happens nonetheless. It is somewhat understandable - even if not acceptable - for reps, because they tend to be focused on the short-term goal of making quota. Giving concessions without getting anything in return, may get the sale for the rep; but it does not give the vendor organization any return for that concession. Unfortunately, far too often the vendor organization as a whole - being obsessed with meeting quarterly targets - shares that view. That support is most evident in sales rep compensation plans that reward only revenue and ignore profit margins. Your sales rep compensation plan and what it actually rewards is a discussion for another time. But in negotiaitions at least get something in return for concessions. And align what you ask for in return with your strategic goals - preferably by getting something that will produce future sales.

Research consistently shows that satisfied customers are one of the most powerful marketing tools. Customers help you generate more revenue in a number of ways: introducing you to colleagues; through public endorsements; by leading educational seminars; collaborating on whitepapers, etc. They can also help close opportunties by serving as proof of capabilities by: serving as a refernce; writing case studies, etc. The ways you can use a customer is limited only by how you market your offerings.

Peer mentoring, coaching, training, and education:

The final component to optimizing sales rep performance is to get them involved with the development of their peers and the larger revenue organization. In this way they can share their expertise and insights, shorting the learning curve for others and providing continuity by contributing to the organizational knowledgebase. In addition, research clearly shows that articulating your experience and describing your behavior helps to crytallize and solidify what you have learned. Of course, sales reps are not trained learning and development professionals, and they may not have a comprehensive understanding of your sales enablement efforts. To be most effective, reps should be assisted with any of these activities and supervised by appropriate staff.

Noting the caveat on assistance, there are a variety of learning and development activities that a rep can engage in. Reps may directly mentor and coach their peers. They can participate in the development of training programs by creating or reviewing content, providing input into meaningful and practical exercises and activities, provide input into certification content, etc. Reps can also participate in the delivery of programs by leading sessions, facilitaing exercises, and recording training videos. An often neglected activity is to have reps educate other members of the revenue on specific topics (e.g., what interests key players) or the general challenges of working in the field. The choice of which activities a rep should engage in should be a mutual decision between the individual and relevant members of the revenue organization, balancing the interests and skills of the rep with the stategic needs of the organization.