NZSALES AUGUST | ISSUE 97
Get the ‘Yes’: Winning Funding, RFPs, and Grants
NZ’S E-MAG FOR SALES LEADERS | WWW.NZSALESMANAGER.CO.NZ
From the Editor I
came across an excellent report the other day in The Economist, titled ‘Driving the skills agenda – preparing students for the future’.
practical learning experiences for students, which includes modules on professional selling so that students can hit the ground running if they embark The report describes how skills on a sales career when leaving demanded by employers are shifting, and points to research which shows the school. In my experience, this is a first for a New Zealand majority of employers are dissatisfied school, and one that I will be with the attainment of young people entering the organisation, watching with a close interest. and a minority of 18-25-year-olds report that their education has Employers, you should be too! provided them with the skills needed for the workplace. In this issue, we report on a Westmount school initiative that is addressing this issue. Their programme provides a range of
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contents
AUGUST THIS MONTH'S MUST READ...............................................................................................................6 GET THE ‘YES’: WINNING FUNDING, RFPS, AND GRANTS
THE INSIDE SCOOP ON ‘INSIDE SALES’.......................................................................................10 LEARNING SALES SKILLS AT SCHOOL...........................................................................16
TWO MINUTE TOP-UP.......................................................................................................................20
HOW TO GET THROUGH THE WINTER SLUMP
QUICK FIX..........................................................................................................................................22 It’s not what you sell, it’s how you sell
BOOK REVIEW...................................................................................................................................23 The Miracle Morning for Salespeople by Hal Elrod & Ryan Snow
CALENDAR....................................................................................................................... 24 THE CLOSE.........................................................................................................................................25
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MUSTREAD
Get the ‘Yes’: Winning Funding, RFPs, and Grants Words by Sharon Drew Morgen
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hen we seek funding or respond to a Request for Proposal (RFP), our proposals meet the criteria requested, presenting well-positioned information to persuade the decision makers to choose us. But winners are chosen by some mysterious set of criteria not only unknown to us but often unknown to them. I began thinking about this when a friend told me she was writing a grant proposal. With my systemsthinking brain, I asked her: • How will they choose you over other worthy requests? • What personal and professional criteria will members of the funding team consider before dropping others to fund you instead? • How does political in-fighting or long-term client/colleague relationship preferences factor into the decision process? • How does your request fit in with their annual strategic plan? The commitments to their funding sources? She had no answers but resolutely believed that importance of her mission would rule the day. She has a 10% success rate, even though in many instances she knows people on the committee. That means she wastes 90% of her valuable time. Her strong appeal, great writing, and the importance of her message are lost because the criteria of those who might fund her are driven by more than merit. 06 | www.nzsalesmanager.co.nz
DECISION MAKERS DRIVER BY UNCONSCIOUS, UNSTATED CRITERIA Unfortunately, there are no ready answers to the above questions, even if they are posed. Here’s why: 1. There’s no ‘one’ person on the committee who can convey the personal and political communication patterns that are largely unstated. 2. An outsider can never understand the non-verbal, implicit, historic criteria being applied that’s most likely different in each situation. 3. The funding group itself doesn’t always have a consistent, conscious understanding of why it does what it does. 4. The questions an outsider asks to ‘understand’ are biased, gleaning biased data – not to mention that the responder most likely isn’t speaking for the entire group. Using conventional practices of submitting a well-written, compelling, and provocative grant or proposal, or making a professional presentation, is a crap shoot. But it’s possible to have more success by facilitating the decision makers through their unconscious, mysterious process and helping them recognise before they begin, the issues they will need to address to succeed.
CASE STUDY My clients in large corporations (naively) believe they win on either price, relationship history, or quality/brand. Here’s a real story. A global consulting client received an RFP from a Fortune 50 company – the company historically used Company X as their consulting provider. My client, delighted at the chance to win new business, assembled a large team to respond to the multimilliondollar RFP. When I asked them what was stopping the Fortune 50 company from using Company X now, my client went silent. They called the Fortune 50 company and asked: Consulting Company: What’s stopping you from using Company X again this time? FORTUNE 50: Nothing. We’re going to use them again. We just needed a second bid. True story. Since we now knew we wouldn’t win the RFP, we chose a different route. We offered a cover page and a couple of pages of Facilitative Questions [a new type of question I developed that enables Responders to assemble/recognise unconscious, systemic criteria – in this case, regarding implementation, buy-in/ consensus, resistance issues that would be a natural fall-out from a project of this size]. www.nzsalesmanager.co.nz |
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We wrote a note: “We are interested in winning your business, and we’ve included an overview of the types of services we provide. However, since you will be using Company X, we’ve decided not to respond to the RFP but instead offer you a real service. We’re sending along some important questions to answer before you begin your project to ensure a successful implementation. We hope you find these valuable. And if the time comes you would like to have a conversation around how we can serve you in projects such as these, we look forward to putting our best team together to help you be successful.” I spent some time understanding the human systems that would show up during this project and formulated about 40 Facilitative Questions to help the client uncover answers to problems that would come up but were not included in the RFP, such as: How will you know when you have assembled the appropriate group of people to give you the full set of correct data before you begin, to ensure you won’t use faulty or incomplete data moving forward? What would you need to set up at the very beginning of the project to ensure continuing communication among all involved, at each stage of the project, to ensure there is no time or resource wastage due to insufficient information being circulated? By answering these questions, the client would have: 1. Knowledge of potential problem areas that didn’t show up on the RFP; 2. Knowledge that we knew how to achieve successful implementations; 3. Knowledge we were professional, focused on their success, and eager for the business. We didn’t hear back for two months. Then they called and hired my client because their chosen providers didn’t address any of the buy-in/ consensus/resistance issues we highlighted, and they realised there would be costly (in the millions) implementation problems. My client won the business with no proposal, just the two pages of Facilitative Questions that helped their prospect put their ducks in a row and avoid potential problems. 08 | www.nzsalesmanager.co.nz
How does excellence occur? 1. If you merely offer a good proposal or presentation, you will never know how funders or clients will choose you; 2. Groups who send out RFPs or offer funding only offer data points of what they think they need. They, themselves, most likely don’t know the idiosyncratic values-based, personal criteria each decision member will use when a vote is taken; 3. Groups sending out RPS or funding sources seeking clients to back don’t know all the consensus or implementation issues that will occur during the implementation. It’s possible to override these problems by helping funders/ clients recognise what they need, by teaching them how to uncover and manage the hidden issues necessary for excellence to occur with minimal disruption. To differentiate yourself, use the opportunity of seeking business (i.e. doing a presentation), funding, or responding to a proposal to show them you can help them address their systemic shifts and give them the knowledge that you are a knowledgeable partner. •
www.sharondrewmorgen.com
Sharon Drew Morgen is a decision strategist, an original thinker, and author of 9 books: one NYTimes Business Bestseller, and two Amazon Bestsellers. She has just published her newest book on how we can close the gap between what’s said and what’s heard (What? Did you really say what I think I heard? – free download at www.didihearyou.com).
The Inside Scoop on ‘Inside Sales’
Inside sales is arguably the fastest growing sector in all of the sales and marketing industry, but what does it actually mean and how can it be used to its greatest effect? Words by Stuart Edmunds
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growing number of organisations are leveraging this increasingly popular sales structure, particularly with the huge growth in investment and proliferation of tools to multiply the efforts of inside sales teams. With a growing shift from field sales to inside sales, companies are reducing costs and increasing yields rapidly, particularly when leveraging a new generation of technology tools specific to this sector. Starting salaries for inside sales reps are also typically lower and with good systems and tools in place, ramp up is significantly faster.
The comfort zone of sales (and marketing) managers who have historically managed teams of field salespeople is being shifted, along with the rapidly changing narrative of business sales generally. Management accountable for revenue are either adopting this practice or creating a roadblock towards it, but one thing is certain, reducing the cost of sales and increasing revenue exponentially through shorter lead times is a game changer.
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So what is inside sales? One way to offend those in inside sales is to question whether they are a call centre or do telemarketing. Ken Krogue, inside sales evangelist, Forbes contributor and co-founder of insidesales.com – an awardwinning cloud base sales acceleration platform for inside sales – defines inside sales as ‘remote sales’.
It has also been referred to as virtual sales, professional sales done remotely or sales in the cloud. In this context, the common denominator is almost all of the sales cycle is done remotely. The type of sale also deviates significantly in value and complexity from what one might traditionally associate with a telemarketing or an outbound call centre scenario. These environments more typically target a lower value, simpler offering that might be typically ‘closed’ in a single outbound transaction session. Inside sales in our definition and context is much more akin to a higher value, more complex offering that requires the development of credibility, relationship, discovery and solution-fit over multiple interactions (remotely) with multiple stakeholders and influencers on the sale. A recent study found that within the past three years, inside sales jobs in the US grew at a fifteen times higher rate (7.5% versus 0.5% annually) over outside sales jobs, to the tune of 800,000 new jobs. Sales organisations are hungry for insight into the attraction the role of a properly equipped inside sales representative might bring. www.nzsalesmanager.co.nz
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Reducing the cost of sales and increasing revenue exponentially through shorter lead times is a game changer It is important to note that inside sales professionals are not merely sales reps. The inside sales executive is the one who has initial contact with a potential client and articulates how their company’s services will benefit that prospect’s business. To be effective in this, they have to believe in the company and its services and positively represent the brand. It takes even more effort and skill to realise this connection remotely when the inside sales executive can’t rely on an inperson or face-to-face meeting to develop that human rapport connection. Inside sales is about building long-term relationships that lead to the provision of offerings to fulfil a customer need, done remotely. 012 |
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Before this can happen, let’s look at how inside sales works. Inside sales can be broken down into two vectors: inbound leads and outbound leads. Inbound leads mean there is initial interest that has been generated through some other sales or marketing activity and the inside sales team will be able to rapidly garner a massive amount of background information to best prepare for the next engagement with the prospect. Outbound leads mean you reach out to a specific audience, targeting relevant, potential clients who you think you want to work with based on a suite of qualifying criteria. Using a vast and increasing array of tools, inside sales can investigate personal, company, industry, historical and other research data to best prepare for the next prospect engagement, whether that is an email or a phone call.
Inside sales is about building long-term relationships that lead to the provision of offerings to fulfil a customer need, done remotely.
There are other benefits in having an inside sales team including cost savings and time efficiencies that make it the method of choice for more companies. Additionally business is going green by cutting the carbon footprint from unnecessary travel, aside from the obvious cost savings associated with doing more or all of the sales cycle remotely. Buyers are increasingly asking for a remote web demonstration rather than a face-to-face sales call to save time, where the offering fits this environment.
Add to that the lifestyle enhancements of a sales force that does not have to be on the road all the time and you have some even more compelling reasons behind this trend. Obviously there are still many complex sales solutions that will never be fully engaged, demonstrated or the sale ‘closed’ remotely. In these situations inside sales and its associated tools might be involved in the prospecting, engagement or any other part of the overall sales cycle, to complement the field sales part of the cycle. Technology is the inside sales person’s best friend. Everything from conferencing tools, CRM and other sales acceleration systems are now required. Studies show that even a modest investment in sales tools result in a disproportionate sales performance gain. www.nzsalesmanager.co.nz
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Inside sales will soon cease to be a trend and will become normal practice The greatest increases in productivity have come with mobility technology, hosted CRM, social media, immediate response, local presence, and telephony tools integrated together. Funding and investment for technology in the sales acceleration space to help these inside sales teams is at similar levels to where investment was for the nascent CRM industry in the ‘90s. Inside sales will soon cease to be a trend and will become normal practice, because sales is no longer about cold calling or trying to push a product or service, it is about relationship building. Leveraging the tools available gives the competent inside sales team an unfair advantage over their competitors and relationships can be built more rapidly at a greater level of insight and maintained, all at less cost than before. A recent agreement formalises representation from the New Zealand Institute of Sales to chair the New Zealand chapter of the only association in the world dedicated to the inside sales profession. This local relationship with the AA-ISP (aa-isp.org) brings opportunity for local companies to learn more about inside sales practices locally and internationally, and representation from a local context into the industry. What steps are you taking and tools are you using to multiply your sales team’s efforts? •
www.instituteofsales.co.nz
Stuart Edmunds is the founder of the New Zealand Institute of Sales, dedicated to elevating the sales profession in New Zealand by supporting professional development, peer networking and industry awards among members who support, work-in and lead sales organisations. 014 |
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Introducing Alex or as we like to call her
Australia’s next top
‘Frock-Star’
Before discovering the entourage Alex had tried and failed for over 3 years to get her online dress rental business off the ground. Since discovering our community Alex has frocked her way to becoming the go-to-gal for the style needs of everyday divas, fashionistas, and TV stars alike. With the help of our world class advisors and the support of our community to spur her on, Alex has gone from spruiking her own edgy threads to working with some of Australia’s leading labels including Josh Goot, White Suede & Nicola Finetti. Her growing Instagram following @herwardrobeaus is just the start of where this fast moving fashion sensation will go.
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Learning Sales Skills at School
Westmount School conducted research and found that students who come out of the mainstream curriculum are not adequately prepared for the many diverse roles in business. They have developed a model for change, which includes the opportunity for students to learn, with practical experience, essential selling skills so that they can hit the ground running when they enter the workforce.
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on Bowen, a Regional Principal with Westmount Education, says, “we developed a model for learning that included the opportunity for students to grow themselves – the ‘Learning to Learn framework’. We then established a number of study options additional to NCEA subjects that we believed would equip our students with the ability to go straight into professional or well-paid positions upon leaving school. The resulting Careers Advantage Programme (CAP) was then made available for the first time this year to students in Year 12 and Year 13 at Westmount Schools.” CAP provides a selection of professional courses that can be completed alongside senior school studies. The capability of each student is analysed professionally to ensure that they can effectively complete the course. Students are given the opportunity to apply for courses that reach beyond the school curriculum. Those with a specific career pathway may choose a tertiary course suitable for their development. Others may choose a more
general course related to an area of work interest or personal development such as time-management or the development of other general skills suitable for work/employment/further study. One of the courses is a sales skills course. To develop the course, Westmount conducted research with a number of training institutes within NZ including sales training organisations and found that few had a course that really matched the needs of school students pre-employment. Rick Silby of the CAP Reporting Team says “many sales courses assume that the participant already has a certain level of skill set, and such courses are developed to build on these skills. The majority of students however have no knowledge of the business environment and must be taught these skills from the start. Finding a course that starts with these essential skills and then builds on that foundation was not available from any of the options that we initially explored. The Marketing Company was one of the sales training organisations that we approached, and they offered to work with us to develop a course suited to the needs of students that are wanting to pursue a career in sales. We discussed what we were looking for with them and along with their input they compiled a couple of options which we refined. It was from this that the sales course for students was born.” The course is a mixture of online and face to face training. It provides the students with knowledge in a range of sales related subjects as well as personal development areas. The students learn about setting SMART goals, personality types and having the right mindset. The student’s progress through the various stages of developing and making a sale which includes topics like; making the most of cold calling, preparing for meetings, getting referrals, features versus benefits, negotiation, the process of closing the sale, and then managing clients after the sale has been made. www.nzsalesmanager.co.nz |
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If sales are not their final chosen career, they will still be equipped with a skill set that provides greater development opportunities in the workplace” Along with this theory the students have monthly video conference meetings with a sales trainer to introduce each module and teach the key skills and they have access to a coach that they can call on at any point for help/advice. Each student is assigned to a business where they can go on sales calls with salesmen or undertake work experience alongside a sales manager or salesman. Ambrose Blowfield of The Marketing Company says, “By understanding the fundamental key elements of having the right positive mental attitude and being able to determine the impact of communication with different personality types, the students can take the variety of learned skills and use them in areas even outside of sales. If sales are not their final chosen 018 |
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Stirling Smith
career, they will still be equipped with a skill set that provides greater development opportunities in the workplace.” Silby adds, “The majority of the students are about 60% of the way through the course and most of them are aiming to have it completed by the time final exams for NCEA come up at the end of the year. Progress so far has been excellent and exciting.” A total of 282 students are participating in CAP. Year 13 Westmount student Stirling Smith is taking the 12 Week Intensive Sales Accelerator program. He says, “it is an exciting and hugely advancing course. While the workload is not too much, it certainly lives up to the intensity promised. I also take Business Studies as one of my six school choice subjects, and taking this sales course has hugely increased my chances for excellence within this subject due to the knowledge that I have picked up. After watching each of the modules, I feel freshly invigorated and want to get out there and put my energies into it. The role plays really help me to see just how it should be done.” Bowen concludes with advice for other schools or teachers who see the need for students to be leaving school ready to hit the ground running. “Talk widely, communicate openly. Don’t try to perfect a model before you roll it out. Develop a product that can be trialled, and refine it as you go.” •
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TWOMINUTETOPUP
How to Get Through the Winter Slump Words by Hayden Burgess
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inter is pretty tough; it can be cold and bleak. Unfortunately, for a lot of businesses, winter correlates with a slump in trade. Often we accept this as part in parcel of being a business owner and as a result fail to plan for this time of year. A wise person once said the best thing about not planning is that failure comes as a complete surprise and is not preceded by periods of worry and depression (or something like that). But it doesn't have to be this way! By planning ahead and getting our sales funnel in order we can stay on top of things so we are prepared for winter and, with that, ready for the prosperous spring and summer that follows.
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HERE ARE SOME IDEAS FOR GETTING AHEAD OF THE WINTER SLUMP.
4. Review your current clients. They say it now costs ten times as much to bring on a new 1. Always be prospecting client as it does to maintain We say prospecting is a 24/7 activity; always be looking for your next client. This may be as simple as noting down business an existing client. So for every dollar you spend on retention names when driving through your local industrial area, reading of existing clients you will need the local paper and sharing your suspect list with colleagues. to spend $10 to gain a new Take note of what is going on in the business community; who client. Now is a good time to else can you add value to? review your current clients who 2. Target specific businesses haven’t bought off you in the Many of us attend networking and referral groups, but more often last six months. Consider how than not attendees stand up each week with the same spiel: “Hi I'm so you can add more value to their and so from so and so business, we specialise in this and that if you business. You may have a range know anyone who is interested, please get them to give me a call”. of products; your client is buying The problem with this is it’s a rare occasion when someone actually products A and D from you but who is providing B and C? Your says to a colleague: “Hey I'm looking for something, do you know anyone who does that?” It's an even rarer occasion that this occurs clients already know and trust you; it is your responsibility as when you are actually looking for the referral. So instead, at your a provider to make sure you are next event, target referrals and businesses you would love to work fulfilling all their requirements. with and ask for them by name. See what happens. 3. Use winter as a time to reskill your sales team Sometimes no matter how much we prepare; there will still be quiet spells. Use this time to upskill your sales team; look at their KPIs, their weekly sales activities and their sales funnel. When you are a growing business, you must constantly review your salespeople; their sales process may be working for them but is it working to grow your business?
I hope these ideas help. If you implement just one it could be the influencing factor that makes the rest of this winter and the next more profitable and less stressful. •
www.salesimpactgroup.co.nz
Hayden Burgess is a sales trainer with Sales Impact Group in Hawkes Bay
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QUICKFIX
This Goes With That
M
any sales opportunities can be lost by not knowing which products within your range are partners. It can be easy to accept that what the customer has ordered is all that they need. Some retail stores are good at offering partner products, and provide many easy examples: the polish that goes with the shoes, the brushes that go with the paint, the tie that goes with the shirt. Knowing your partner products, to be able to ask questions about additional needs, is a sure way to increase your sales. •
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RESOURCECORNER
The Miracle Morning for Salespeople: The fastest way to take yourself and your sales to the next level
T
here are countless books written for salespeople about various sales techniques; prospecting, generating leads, building rapport, handling objections, closing the sale, collecting referrals, and providing excellent customer service. The list goes on and on. This is not one of those books. Most salespeople use these techniques daily, yet the majority still fail to achieve the results they want. So, what is the difference between "average" performers and the top 1% in your company or industry? Which strategies, mindsets, rituals, practices and systems do the top 1% maintain daily that got them to the top and continues to keep them there? The more you study the world’s top salespeople, in any industry, the more you realise that their success is a result of who they are more than merely what they do. Thus, logic would have it that if you want to take your SALES to the next level, you must first figure out how to
take your SELF to the next level (because it only happens in that order). That's exactly what this book will help you do, and faster than you ever realised is possible. •
Available from amazon.com
By Hal Elrod & Ryan Snow
EVENTSCALENDAR
024 |
DATE
NAME
PLACE
25 August
Sales Performer
Palmerston North David Forman
25 August
Sales Basics
Napier
Geewiz
27 August
Sales Management
Auckland
Top Achievers
1 September
Sales Seminar
Auckland
Top Achievers Sales Training
4 September
The Science of Social Selling
Auckland
NZ Institute of Sales
9 September
Persuasive Selling Boot Camp
Auckland
The Marketing Company
15 September
Sales Performer
Auckland
David Forman
15 September
Cold Calling and Prospecting
Auckland
Top Achievers Sales Training
16 September
Key Account Management
Auckland
NZIM
16 September
Sales Management
Auckland
Geewiz
18 September
The Science of Social Selling
Christchurch
NZ Institute of Sales
22 September
Sales Performer
Palmerston North
David Forman
22 September
Sales Basics
Wellington
Geewiz
29-30 September
Essential Marketing Boot Camp
Auckland
The Marketing Company
www.nzsalesmanager.co.nz
COMPANY
THECLOSE
“If you don’t have a competitive advantage – don’t compete.” - Jack Welch
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