It’s the
Relationship, Baby
All things equal – people want to do business
with people they like.
All things not being equal – people will still
do business with people they like.
(Jeffrey Gitomer
www.gitomer.com
- again)
This is the most important point in professional
selling.
It isn’t about product.
It isn’t about features and benefits.
It isn’t about sales techniques. It isn’t even about talking.
It is about building relationships with people.
This isn’t a trick or a technique.
It means real relationships.
Relationships earn you time with prospects and
customers. It gets you listened too.
It means your prospects are more likely to
believe what you tell them and try what you
offer. It makes customers stay longer.
You will never take business away from a
relationship using features and benefits.
Applying Human Relations to Sales
#1. Invest the time
Many prospects will want to get down to
business.
You may be eager to present the product.
Often you’ll be told you have limited times….2
minutes.
Whatever time you have, invest some of it in the
relationship.
That time will pay dividends.
When you uncover an area of interest, that 2
minutes turns into five.
#2. Establish peer to peer rapport.
Of course you will be respectful. Of course
you will be professional.
But also be warm and human and personable.
Use your voice. Make sure your tone is warm and
personable.
Not nervous. Not submissive. Not fake.
Conversational and human – like when you talk to
your friends.
#3 Look for commonality.
Read the office. Look at photos, diplomas,
and memorabilia.
Notice golf logos on shirts.
What can you find out about family or hobbies or
other interests?
#4. Simply ask a question about what you see.
– Relax. Don’t pressure yourself to talk
product.
– Be attentive. Be interested.
– Let the conversation move to the customer.
Listen.
– How long can you keep the conversation flowing
by developing or discovering topics?
– Trust that the topic will turn to you.
– When it does, have a business opportunity.
Deliver it with enthusiasm.
#5. Laugh
It is a unique human trait. It is the best
of who we are.
Share a laugh with your prospect and the walls
come tumbling down.
Show genuine enthusiasm. Be the kind of person
they’ll want to spend time with in their office.
#6. Do all of this before you begin to sell.
Let them talk. Share a personal moment.
They’ll listen with greater courtesy when
you
talk.
Five Reasons People Like You
• Your genuine interest in other people.
• Your smile – it attracts people
• Be a good listener Encourage others to talk
about themselves
• Talk in terms of the other person’s interest
• Make people feel important – all people… and
do it sincerely
Your relationship is the most powerful tool you
have against discounting.
Relationship selling is selling for the long
term.
Want to better understand HOW to build
relationships.
Download the MP3 on Human Relations and Selling.
It is in the library.
If you manage sales people, Human Relations and
Selling
is available as a PowerPoint with exercises.
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Understanding
the Bag
The manufacturer expects you to see the full bag
– all products.
You’d like to earn commissions from the full
bag.
To maximize your opportunity, you must first
determine the ‘path’ through the line.
What product is first? What follows? How does
the line logically build?
The Rule: Start with the innovation. Move toward
the commodities
Innovation makes you an important vendor.
Commodities don’t.
Customer will change vendors for innovation.
Once they’ve changed, you can leverage in your
commodities.
Make sure the company identifies these
innovation leaders and explains them fully.
Also, to be a valued rep, make sure you know
which products are most profitable to the
company. Are they more profitable for you, too?
Next, where is the volume? Where is the highest
commission?
What products relate to each other, allowing you
to build a story.
Are there other lines you carry that you can tie
together into a stronger sales story?
Spend time with the line developing the sales
path.
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Prospecting and Building the Network
Networking works. Cold calling, not so much.
Take that cold calling time and invest it in
networking.
Better yet, maintain your daily cold calling,
but add evening and morning hours to network.
Then use that network to improve your cold
calling.
So what is networking? What does it really mean?
Networking is simply people that know you.
Folks that respect you and the work you do.
So it is credibility. It is familiarity. It is a
means of introduction. It is also commonality.
It works because it quickly overcomes one of
your biggest obstacles; the fact you are a
stranger. Today’s Network does what the ol’
boy’s Men’s Club use to do a century ago.
It makes you part of something and vouches for
your reputation.
Networking continues to change.
Traditional networks still function. The
Rotary, Masons and other fraternal orders still
function as a network.
Chambers of Commerce and Visitor Centers still
host worthwhile functions to meet people. Media
and Sports organizations have networking events
like the "40 Under 40" and such.
The real action in networking is online.
LinkedIn and Facebook are two of the most
powerful forces in networking today.
Facebook has 20 million users that login 100
million times a day.
It is easier to connect with anyone anywhere in
the world than it has ever been before.
How are you connected?
Can you be found on LinkedIn?
Are you expanding your network, allowing others
to link?
Do you have a professional Facebook page? Can
people learn about your professional activities
there?
If not, you’re not in one of the most important,
competitive aspects of the game.
It isn’t difficult. Sign in and sign up. You can
do it in minutes.
Why would you not participate in the newest,
fastest emerging sales networking technology
there is? Quit making excuses.
How to Use It
You’ve identified several prospects.
You know the management team from their web
site.
Look for them on LinkedIn. Who else can you
identify?
Do you have any natural links to them? LinkedIn
will tell you.
Read the profiles. What commonality can you
find?
The networks may help you find a gentler,
natural introduction.
If not, the background may make your cold
calling more insightful and effective.
The Rule: Use your network first.
Researching a Target Prospect
I promise you, preparation is both flattering
and impressive to prospects.
Which is sad – it suggests too few sales people
are doing it well.
See, we know what to do; we’re just not doing
it.
Sources of Information (this works for
competitors too!)
- The internet – duh!
- Their literature. Most organizations
have brochures – read them!
- Their employees (especially marketing and
sales)
- Their competition
- Their customers
- People you know that know them
- Their vendors
- Online forums and chat reviews
What do you need to know about a prospect’s
business to engage?
The more you know, the more ways you can engage.
Each one will be impressive. It’s fun to do.
Besides, you’ll find it difficult to talk about
anything but your product if you don’t do the
research. And that’s boring.
The days of opening with “Tell me a little bit
about your business” went out with the two
martini lunch. Actually I heard a sales
associate say that line recently. I
cringed. It made me want a martini. He obviously had not
prepared and appeared to have no commitment to
the customer. The prospect felt the same way I
did.
Do the homework.
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Selling the
Appointment
Selling is face-to-face. It is
the most powerful selling we can do.
To sell face to face, you’ve got to master
selling an appointment.
Why should the person see you? They aren’t
looking for your product.
So you’d better decide why they may want to see
you. Their ‘Real Need’?
- More sales.
- More profit
- More customers
- Greater productivity
- Reliable supply chain
- Dedicated employees
- Higher morale
- Better image
- More time
- More free time
- Fewer hassles
- Recognition
- Appreciation
- Adventure, or at least new experiences
First, remember that your phone call is an
interruption.
Plan to be brief.
- Yes, you’ve got to introduce yourself. But it
doesn’t matter. They don’t care.
Name and company, quickly so you can get to your
point.
- Yes, a networking referral is important. It
adds credibility.
But it doesn’t add value to your distraction.
Make it brief – get to the point.
Then engage them…spark….provide value….be
interesting….be prepared and informed.
Understand how your product or service will be
used and by whom to do what. Know the fit. Know
the value. Be prepared to prove it.
But couch it in terms of their Real Need:
Productivity. Profit. Growth.
Practice developing accurate statements about
profitability.
Use statements about Productivity.
Prospects want friendly, helpful answers for
their business productivity and profit.
Help them understand what they will learn by
meeting with you.
Lead with questions or statements that lead to
them wanting to know more.
You must determine why they would want to know
more.
To do this, you have to know something about
them. Before you call, do your homework.
Focus on the Appointment. It is the only goal.
Don’t try to sell the product. Don’t even detail
the product.
In anticipation of a successful meeting, ask
yourself, “Is he looking forward to this
meeting, or does he feel badgered?” If you
haven’t earned the meeting, you may be wasting
your time.
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Pre-Call Planning
For each call you make, teach yourself the
discipline of Pre-Call Planning.
It is a way to make sure you visualize,
anticipate and plan for the call.
The Pre-Call Plan means having a specific goal
to accomplish on the call, knowing who you’ll
see and making sure you have the appropriate
materials. It doesn’t have to be in writing….but
these are the things you should consider.
Remember – someone is taking YOUR money from
this account.
They aren’t going to give that money up very
easily.
You’re going to have to do SOMETHING to make
things different.
When Scheduling
Call the right person
Who benefits from your product (not just
professional buyers seeking price)
Buyers can buy and become the decision maker –
until they say no.
Understand their motivation for your product
Develop an agenda and set priorities
Get them out of their environment if
possible
With whom do you schedule?
Receptionist? Buyer? User?
Department head or Administrator? Reach as
far up the ladder as you can to be effective.
Sales Call Planning
Who are you seeing?
What is the goal of the call?
What do you want to sell? Why this product? What
are they using?
Can you articulate your business reason for
being there?
Wait, make that their business reason for having
you!
Do you have the necessary materials?
Who else might you see?
Gatekeeper
Influencers
Sales floor
Management
Prior to Arriving
Talk to support staff. Know about any
problems. Clear them up.
Pull CRM Reports
Review customer or prospect profile sheet for
associate names, additional prospects, current product usage and
sales call history.
Think about the conversation and visualize
switching the business
Take in what you need – samples, studies, sales
tools, testimonials, etc.
In one of his blogs, Scott Crawford (http://crawfordinsights.blogspot.com
) made the statement “The workday starts the
night before.”
It is all about preparation.
You should finish every workday anticipating and
detailing your plans for tomorrow.
Not making plans – it is too late for that.
Not doing your research – it is too late for
that.
This is a leisurely review and preparation for
your actions.
Making sure you know the facts you’ve gathered,
and figured out how to apply them.
Knowing everyone you plan to talk too….what they
can tell you….and how you can help them. This is
the time to discover an uncrossed t or an
un-dotted i.
You’ve crafted how you’ll fulfill the "Real
Needs".
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The
Professional Buyer
Putting Emotion Back in Buying
Buyers are responsible for budgets and price.
In some industries, they only negotiate price.
They don’t even review the product.
Their recognition comes from prudent buying.
Without some sort of desire, some emotion, some
way to differentiate – sales is very difficult.
Because in sales, the decision is emotionally driven,
and then justified logically.
Don’t allow the customer’s buying process to
remove emotion from the decision.
That emotion is one of your defenses against
discounting.
Investing in the relationship with your
professional buyers is an important as any other
sale. The relationship is another defense
against discounting.
Next, clearly identify (first to yourself) your
personal value proposition.
Then articulate the value proposition for the
product and the company.
Practice communicating it in a manner that will
engage the decision maker.
Support that value statement with proof sources
– stories, examples, testimonials to help the
customer decide both emotionally and logically
to buy from you.
It is all about relationship.
It is all about perceived value. It is all about finding that emotional
connection.
30-40% of customers will always buy price.
Or 30-40% of the time, the purchase decision
will be made on price (even the hardest price
buyer will sometimes connect emotionally).
That means that 60-70% of buyers will buy value
if you present it.
Have you defined your differentiated values?
Scroll up to "Selling the Appointment" and
review "The Real Need".
Use these motivators to help your prospect see
how your product and service will change things.
Explain what will improve. Tie the product
outcome to the buyer. Look for the emotional
connection.
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Questions
are How We Sell
Why? Because people would rather teach you, than
have you teach them.
You know your competition. You know their
problems.
Design questions to lead your prospects to those
critical issues.
Don’t make it twenty questions. Be
conversational. Let them tell you what they’d
like to buy.
You’re looking for information that will tie
your product to solving their issues or
advancing their goals. If you know your
competitor’s shortcomings, you don’t have to ask
if they are affected. You know they are. Find
out how it has manifested internally or
with THEIR customers.
The Rules
Always be conversational and curious.
Always be genuinely interested.
Always shut up and listen to the answer.
Always know where you are talking the
discussion.
Don’t be disrespectful of the competition or the
decisions that have been made.
Just solve the problem.
Remember, if you want longer answers, avoid
yes/no questions.
Another technique is to ask multiple questions,
run together. That will generate longer
explanations.
Competitor has Delivery Problems
“What happens if you run short of inventory
on these?”
“How does it affect your planning if a delivery
is late?”
Competitor has Quality Control Problems
“Does that require you to add your own
quality control? How does that work?”
“Wow. Is the company standing behind that? It
must be a hassle for you.”
Design Problems
“Have your customers ever had a problem with
_______________?”
“How do your customers feel about
______________?”
Competitive product with too narrow utility
“Do your customers ever need to
_________________?”
“What happens if someone wants to
______________?”
Want to promote Price Segmentation?
“Wow, that’s a beautiful X….I wish I could
afford it.”
(I know. It isn’t a question. But it will open
discussion about the price point)
“Are there customers that would like a more
affordable alternative?”
“That product really established demand. Are you
seeing any interest in a more technically
advanced model? What do you think people will be
looking for next?”
Notice that these are real questions about
products and performance. They aren’t just
leading sales questions. Customers appreciate
you being engaged in the real issues of the
category. It tends to make their answers more
honest and informative. And that leads right
into your sales discussion – focused right on
their point of interest.
There is such a thing as poor questions.
They don’t lead to a sales discussion.
You don’t already know the answer.
They reflect poorly on you as a professional.
Which is a nice way of saying they make you look
stupid or lazy.
Think about your questions. It
is the
presentation.
Bad Questions
Who are you currently using?
Homework already told you this. Or were you
lazy?
Are you satisfied with….
Of course they are – get out.
How much are you currently paying for…
This brings the pitch down to price.
Can I quote you?
Why send a quote. You are right there, now!
But don’t make it about price.
Can I bid on….
All about price. What else do you have to
offer?
Tell me a little about your business.
You sound uninformed – lack of research.
Lazy again.
Are you the person who decides….
You’re asking them to lie.
If I could save you some money would you….
If they have a relationship, this won’t
work.
And you’ve just made it all about price.
What will it take to earn your business?
You’re asking them to do your work.
They can’t answer and you look like an idiot.
Okay, they could tell you to charge half your
price. Now where are you?
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Multi Level
Selling
Every one of us runs into multi-level selling
from time to time.
This is where a number of people need to be sold
to get the order.
Sometimes it is just a hierarchy, where the
buyer has no real authority.
Sometimes it is a legitimate committee of
divergent interests.
The overarching rule for multi-level selling is
never let someone else do your work.
Don’t delegate the sale. There is no one you can
pass the responsibility to that wants the sale
as much as you do. So stay with.
That means:
- Make sure your expertise is appreciated.
- Get on the buyer’s Team as the technical
expert. Let her understand your role.
- Support the buyer presenting to the team –
make her look good.
- Lead the presentation.
It starts at the beginning of the first
presentation.
Particularly if you suspect your contact is too
junior to buy.
Or if the product is too complex for a single
decision maker.
Before the presentation (afterwards is too late)
ask,
“Is there anyone else you work with that….?”
Multi-level Hierarchy
This is where the levels have to do with
authority more than differing responsibility.
It may be that the buyer presents their
recommendation to a Supervisor or Lead.
They may have to present to a Merchandise
Manager, Department Head
or perhaps a VP.
Your job is to flush out the real decision maker
before you start presenting.
That’s the time to make concessions and plans,
when interest and anticipation
are high.
Ask “How will this decision be made?”
This might bring out that she’ll tell her
supervisor.
Ask, “Then what?”
You’ll learn about the Department Head.
Plan on asking “Then what?” 3 or 4 times to get
the full story of the decision, including the
real decision maker. The buyer won’t feel
empowered to skip a level in telling you.
Finally suggest that “ So if you find this
interesting and beneficial, you and I will
present it to the VP and chat about it?
Before you present, establish this idea. You
certainly don’t want this person doing your
selling for you. You know your message won’t
translate correctly up the line. This is the
point to establish your expertise and make her
team.
Multi-Level Committee
This is a more challenging and exciting
sales situation.
You have multiple decision makers with different
interests and needs.
The committee may include;
- a buyer,
- Someone from sales (if the product is for
re-sale)
- Operations (if the product affects
manufacturing)
- An Administrator if the product affects
inventory
- Accounting for costs, shipping, terms and
inventory
- Executive Management for budgets or capital
expenditures
Interests will vary and may include:
- Margin
- Demand
- Features
- Quality
- Durability
Typically, you’ll have to sell this group one at
a time, and finally as a committee.
The sales plan is the same. Sell the first level
first.
They are driving the need and establishing the
requirements.
Ask how the decision will be made.
Identify the players, by name, department and
interest in the product.
Find out who the prime decision maker will be. It won’t be the committee.
Establish your expertise (in each area).
Ideally you’d like the contact to be
uncomfortable presenting without you.
Arrange to meet all the influencers. This will
make it easier to stay in the presentations.
Finally, make the presentation – don’t delegate
it.
Product Options
Oftentimes, you’ll have an array of product
options.
Perhaps it is price (good/better/best).
Maybe it is functions.
Attempt to identify the best options with the
primary user with responsibility for the
product. Quickly narrow the presentation as you
go up the channel, leaving fewer and fewer
choices.
It makes the presentation less complex and the
decision easier and easier.
It also show support for the primary user
initiating the contact, helping to sell the
product they identified as appropriate for their
needs. That support keeps you on the team.
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Reducing Risk
Changing vendors, making purchase decisions and
committing to product lines has risks for the
buyer.
That risk is in the way of your sale. It isn’t
like an objection, because the prospect will
never articulate it.
But it is there.
Your job is to understand the dynamic.
Anticipate it. And address it, though it is never
spoken.
What are the risks?
Here are some examples to think about.
– Will the product work as intended?
– Will this rep fit it correctly?
– Will I end up with complaints?
– Will this change frustrate my staff?
– Is the product easier to use or will it
require more staff attention?
– Will this rep be attentive to customer
complaints?
– Will this sell?
– Is this product and company respected in the
industry?
– Do I look foolish leaving my current vendor?
– What other products am I buying from my
current rep?
– How will my current rep react when I change?
– Am I paying too much?
Just remember that changing vendors can be
disruptive to a company and a source of anxiety
for your prospect. You can make it easier by
building their confidence in the decision and
enhancing your relationship with you.
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Discounting
Discounting is a fact of life in business and
becoming more so.
Corporate ethos wants to focus on price.
Whatever it is, pay less.
Buying groups try to create industry wide buying
power to decrease price.
Some buyers treat all products like commodities,
focusing only on price.
They are evaluated on savings, not on product
performance.
Worse, many sales people haven’t learned to sell
value and rely only on price.
The Discount Result
Consider that you aren’t really discounting
price.
You are discounting profit.
The cost of goods doesn’t change. Overhead isn’t
short-changed.
The entire amount of the discount, comes
straight out of the profit percentage.
Do you know the profit percentage of your
company? You should.
Because that is the figure you discount.
Remember, profit is investment. It is future jobs, bonuses and new products.
That’s what you are sacrificing with every
discount.
Don’t for a minute think otherwise.
The Discount Defense
You have three defenses against
discounting.
1) The value you have established in the
prospect’s mind for the product. It fulfills their need and they want it.
2) The emotional connection you’ve established
between the prospect and the product. They want
it.
3) The relationship you have with the buyer.
They like you. They don’t want to hammer you.
Strategies to Combat Discounting
#1. Recognize the profitability of your line.
Manufacturers are often seen as bottomless
pockets. It is their fault.
They always seem ready to discount, offer tier
pricing, provide promotional support, fund
initiatives and so on. Customers don’t really
know where the ‘bottom’ is. So they keep looking
for more.
The hard reality is that customers typically
make more margin on a product than the
manufacturer. If your line is for resale, be
clear on the profitability of the product to the
prospect. Will they make a better margin on it
than you? Tell them. That certainly weakens
their position for discounting. Help them
understand the price is fair.
#2. Re-frame the discount
We easily throw around percentages. Try
converting it to dollars. Sometimes the amount
appears insignificant…a ‘couple of bucks’. That
may allow you to brush the request away as
‘close enough.’ The reverse may be true too. The
dollars may be significant, allowing you to balk
at the amount.
#3. Focus on Value Provided
The product is the focus. Negotiating price
is a responsibility. It is a major clash at the
end of the sales dialogue. But then it is gone.
The more you emphasize value, not features and
benefits, but value to the customer, the more
discount resistant you’ll be at the end.
If the customer has visualized the product, how
it will be used and function and the benefits
they’ll reap in terms of profit or productivity,
the less time you’ll spend haggling price.
If you find discounting is taking a greater
amount of your sales cycle, review your value
statements and revisit how you tie that value to
your customer’s life.
Discounting is a short term responsibility. Help
them focus on results after the sale.
#4. Sell the User
Buyers negotiate. It is a key part of their
position. So who else benefits from your
product? Who has the day-to-day responsibility
for it? Bring additional pressure on the buyer
to get the sale done by focusing on their need
and your (once again) value. (Review ‘Real Need’
above)
#5. Sell Top Executives
The higher you go up a corporate hierarchy,
the less price matters.
Executives know this. That’s why they hire
buyers and keep them between you.
Executives buy productivity. They invest in
profitability.
They have the big picture. They understand that
a few dollars discount on the price is
irrelevant compared to the value added. They
will be more concerned about speed,
implementation, support and function than a few
percentage points discount.
Their eye is on the horizon.
Sales Take-Aways
- Lead with
product quality and reputation
- Focus on
value. Tie productivity and/or profit to the
product and prospect.
- Reduce the
‘Risks’
- Strengthen
your relationship
- Never lead
with discounting
- Don’t
encourage bids or tease with off price
possibilities.
- Don’t talk
discounts until you are confident you know
-
Their current product satisfaction
-
Their current volume
-
The price they currently pay
-
Exactly what they want to buy (and what else
they can buy
from you)
- Don’t
discount unique products.
- Tie
the
discount to additional products or increased
volume so you and the company benefit.
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Facing Failure
First, failure is an event, not a person. And
particularly not you.
Ask what has ‘failed’?
Perhaps you’re failing to meet quota.
Maybe you’ve failed to make new contacts.
Maybe you’ve failed to prepare.
These can all be easily fixed.
You already know the answers;
Attitude. Habits. Work Ethic.
Secondly, you can't lose until the game is over
and the game isn't over until you quit.
Failure only occurs when you decide to quit.
So you haven’t failed.
You’re in a Slump…..
The Rules
- Don’t panic
- Don’t press too hard
- Don’t get down on yourself
- Don’t get mad
- Above all, don’t quit.
How to Analyze
a Slump
The first step is to sit back and think about
your situation. Analyze what you are doing (or
not doing). Get back to basics to develop a new
work plan with a new commitment.
Are you missing your numbers? By how much? What
will it take to correct it?
Are you
confident?
Do you believe in the quality of your
product and the integrity of the company?
Do you believe you are the best at what you
do?
Have you maintained your work standards?
What time are you going to work? How
late are you working?
Are you still making ‘one last call’?
Are you giving in to excuses?
The bad economy – high prices – lousy
territory?
Are you playing to win?
Sufficient calls and prospecting.
Meeting with decision makers
Doing your homework
Crafting effective benefit statements
Management Issues
Has there been a management turnover?
Excessive or unreasonable firings?
Do you feel your job is threatened?
Outside Influences and Bad Luck
Customer personnel changes
Back orders or production problems
Bad weather
Weak product launches.
Canceled orders
Are outside pressures distracting you?
Money or family problems?
Personal habits out of control?
Drink, Drugs, Food or Late Nights?
Depression
You know what to do. You just don’t do
it.
Correcting the
Slump
When you are in a
slump, you begin pressing for sales. It is not
becoming (or effective). It probably delays more
sales than it attracts.
Let’s get back to basics.
Remember the Rule: Provide Value First.
See ‘Real Need’ above.
Look at your prospects and think how you might
be able to help them. Start there.
Actions to Change Your Fortunes
Part A. Recharge
- Take a day
off. Refresh yourself.
- Have some
fun. Remember, there is a life out there.
- Distract
yourself with your hobbies and interests.
Clear your mind.
- Spend some
free time with your family. Reconnect.
- Get some
exercise. Reinvigorate.
- Motivate
yourself with music or books or anything
that inspires you.
- Rearrange
your office. Clean the clutter. Get it ready
for work in a new environment.
Part B.
Refocus
- Define what
is underperforming. What do we need to fix?
Is it leads, appointment, closes?
Do we need more folks to talk to? More
presentations? Better closes?
- Get new
information. Do better homework. Talk to
Product Managers.
- Spend time
with our Key Accounts. Let them reinvigorate
your confidence.
- Return to
the customer’s perspective. Think about the
contribution you and the product make.
- Change your
presentation. Make it fresh.
- Recommit to
your work ethic.
- Co-Travel
with your manager or even with a junior rep.
- Tap your
network for referrals, including your key
accounts. Cultivate new associations
Part C. Relax
and Relate
Put some fun and
interest back into your sales game.
Help your customers succeed. Smile. Laugh. Get
active.
Let your prospects see that you are enjoying
being a part of their business.