A friend forwarded the article ‘Death of a Salesman’ and thought of the quote famous quote by Mark Twain:

“The rumours of my death have been greatly exaggerated”

The author points to the fact that the Sales profession has been expanding rapidly over the century, at the front line of capitalism and the ‘consumption’ mindset. He then points to a large perceived ‘killer’ of sales roles:

But the biggest culprit in killing off sales jobs is right in front of you: the Internet. There was a lot of talk in the dot-com era, mostly positive, about "disintermediation," or creating direct connections between consumers and suppliers. Think of all the purchases you make today online that once would have been accompanied by a salesperson: a sweater, a book, a "compact disc," a small appliance or piece of electronic equipment, shares of a stock or mutual fund, airline tickets, etc. Even in my own industry—media supported by advertising—some ad space can be booked online, as Slate writer Seth Stevenson demonstrated in a video earlier this year. The precise impact of Internet selling on sales jobs is hard to quantify, but it’s a big contributor and it’s irreversible.

I would argue that the author’s viewpoint is too limited. The reality today is that if a job can be automated, it should. Capitalism and market economics will eventually dictate that reality, as the company who automates and gains efficiency overcomes the ones that do not. As simply stated in this poster from despair.com:

Do I really need someone to help me select a CD or a book? No. I would rather use the web and social media to review opinions. Plus, the economics do not make sense.

What the author fails to understand is that this fundamental economic principle needs to be balanced off against human behaviour. It has been proven time and time again, that people are more likely to buy from people that they like or have a relationship with. Companies simply need to do the math: When the value of the sale is matched with an increased probability of volume, due to persuasion, and it makes financial sense, then the salesperson will remain in the equation. If the value of the sale is so low, or relationship does not play a part in the purchase, the salesperson will be cut out. Simple.

But it hardly means the death of sales. It just means the death of low value sales jobs:

The middle, however, is being "hollowed out," in the phrase David Autor used in an economic paper published in April, and sales is a major component of that shrinking middle. The strength of sales jobs is that they can be reasonably high-paying but typically don’t require technical training or other specialized skills. When those jobs disappear, the people who hold them will often be pushed down the wage ladder or even out of the workforce. Sixty years after Willy Loman, that is our tragedy.

It means an evolution, where the low value ‘sales people’ see their roles eliminated, not unlike many other jobs that are automated. Of interest, I have spoken to more than one sales leader who lamented about how hard it is to find qualified, high quality sales people, as many ‘salespeople’ enter the field by accident, do what comes ‘naturally’ and don’t take the profession of sales seriously. If people wish to remain in the ‘hollowed out’ middle class via sales, then they better take it seriously and focus on skills improvement. Most sales people I know have a University degree as a start. In the profession, sales books and training abound, but how many actually leverage it? The successful ones.

It also points back to something that I continue to harp on, when will our educational institutions get out of their glass towers and recognize that a business degree should include sales and leadership training? It is pathetic. Instead they stick to the antiquated notion that an Economic class is more relevant, when in fact I have never used a theory from that class in my daily business life. But I could have used practical sales and management training, even if I was too young and inexperienced to really leverage it, at least it would have provided a foundation.

Time for Universities to recognize that employers require sales, that they need to meet the market demand AND finally provide sales the respect that it deserves.

I experienced good old fashioned selling a few weeks ago from the Culligan rep, as we bought a soft water system. I was an easy sell, I knew I wanted Culligan (this would be my third purchase) and it was simply a matter of picking which one and working through the details.

The rep did a good job of walking through the steps, and as this is an industry that seems quite stable and without change, their sales model was pretty by the book. A binder, with his sales materials and good old fashioned reference letters from happy clients.

And when I received my final bill from them in the mail, it had a form asking me to reference them to another client with the offer of free bags of salt for the reference.

Good old fashioned selling, that worked.

The Entrepreneur magazine article ‘The Likability Factor’ opens with ‘For better or worse, the sales process is not much more than a popularity contests. Do you  have what it takes to win?’

They go on:

Do your potential clients like you? Do they perceive you as likable–and I mean really likable?

If they don’t, none of the rest of your efforts to establish yourself as the answer to their problems will matter. When you get right down to it, life is a series of popularity contests. You may not want to admit it or believe it. In fact, you’ve probably been told it ain’t so, but ultimately, if you’re well liked, then you’re more likely to be better in sales.

And you have to be able to grab their attention …. ‘Capture your clients’ attention when you convey:’

• Confidence. Humble, quiet confidence is just plain attractive and makes others feel at ease.
• Intrigue. Lean into greetings, make eye contact and prepare short conversational bits to eliminate awkward silences
• Interest in others. Say less and ask more questions. Then show you were listening.
• Enthusiasm. Pull out your genuine enjoyment for others and always be willing to laugh at yourself.
• Respect. Be well intentioned, well mannered and share compliments generously.

Interesting article. On a personal note, I just spent a lot of money at the garden center down the road. Is their product better? No. Do they have the best price? No. I figure I was paying 20-30% more. Is the location a factor? Not really. I could reach one of 5 different garden centers within a 5km radius.

So why? Because I really like them. 3 brothers who are friendly, helpful and full of good humour. I like going there. I am guaranteed a laugh a great service.

Their likability definitely lead to sales.

I know a few internally focused micro-managers who would like this software. Just so wrong.

The internet is an amazing place. Access to information changes everything, our ability to research topics, the speed at which information (and misinformation) travel and our buying habits. In the past, a purchase of any item was based on the opinions of the salespeople we meet, opinions of friends and limited research (i.e. The library or magazines like Consumer Reports). But not anymore, information is everywhere.

This Christmas I was reminded of Malcolm Gladwell’s comments on choice in Blink:

Conventional economic wisdom, of course, says that the more choices consumers have, the more likely they are to buy, because it is easier for consumers to find the jam that perfectly fits their needs.  But Iyengar found the opposite to be true

He is referring to Sheena Iyengar’s study ‘When Choice is Demotivating:Can One Desire Too Much of a Good Thing?’. The crux of the study is that less choice lead to higher sales and greater customer satisfaction:

These three experiments which were conducted in field and laboratory settings show that people are more likely to purchase exotic jams or gourmet chocolates, and undertake optional class essay assignments, when offered a limited array of 6 choices rather than an extensive array of 24 or 30 choices. Moreover, participants actually reported greater subsequent satisfaction with their selections and wrote better essays when their original set of options had been restricted rather than expanded. Implications for future research are discussed.

In fact:

6-choice booth:  30% of visitors bought

24-choice booth:  3% of visitors bought

This was my life prior to Christmas. We had decided on snowshoes as the family gift and conducted a broad search to determine the right choice. That search induced paralysis as we found more and more information on the topic and choices, and began to become overwhelmed with information and the bigger challenge – what is the right information?

• Salespeople said different things
• Friends gave different advice
• Websites sold based on different elements, and commenters on those web sites had different opinions

It took a lot longer than expected. But our desire to purchase and a deadline (Christmas) pushed us through the challenge. But it was very complex and the Internet has not solved that issue – the crushing advance of too much choice.

In the article ‘Craigslist: In praise of primitive’, blogger Andrew McAfee talks about how simplicity works for Craigslist.

Every time I use it I’m reminded of wiki inventor Ward Cunningham’s fantastic question: "What’s the simplest thing that could possibly work?"

CL CEO Jim Buckmaster understands that this is the right question to guide his company "I hear this all the time," he says. "You guys are so primitive, you are like cavemen. Don’t you have any sense of aesthetic? But the people I hear it from are invariably working for firms that want the job of redoing the site. In all the complaints and requests we get from users, this is never one of them. Time spent on the site, the number of people who post — we’re the leader. It could be we’re doing one or two things right."

Keep it simple.

And for us, what did we end up with? Well we ended up going smaller than the salespeople recommended by a little bit, larger than our friends recommended (because they only go on packed trails) and with GV Snowshoes, a Canadian brand that has a few key features – including the 180 degree articulation (the ‘energy soft system’) on the toe which makes them very easy to walk in and the super easy buckles.

Painful? Yes. In fact, we had to get them from 2 different companies, but successful. Just too complex, and had it not been for the deadline, we may have delayed the purchase … or had it been 24 jams, I probably would have walked (smile).

I read a great quote the other day, “Experience is not the best teacher. Other people’s experience is the best teacher”. It was a lesson that was reinforced by many mentors, take the time to read and it will help you be successful.

The other day I was asked for my top 5 sales books. For the record, in no particular order, I would consider these the books my ‘Must read – minimum’ list:

1. SPIN Selling:  The art of asking questions. As so many wise people have said, we have two ears and one mouth. They should be used in proportion.

2. Major Account Selling:  Based on the analysis of thousands of sales people (and written by the author of SPIN Selling), it walks through the buying cycle – not the sales cycle. It gives great insight into the major account selling and how to win customers. It is mandatory reading for anyone selling into medium or enterprise business.

3. Swim with the Sharks:  I am a big fan of Harvey and the MacKay 66 is core to Sales 101.

http://video.google.com/googleplayer.swf?docId=-459207206177296309&hl=en

4. Mr. Shmooze:  The art of relationship selling. Whether you are in sales, customer service or for your personal life – there are lessons in there. In the end, life is all about relationships and people who build great, trusting, quality relationships have a better life. Simple.

5. How to Sell Anything to Anybody:  Is this really applicable? Have the teachings of Joe Girard, the ‘World’s Greatest Salesman’ gotten outdated? Does he still sell 6,000 cars a year? I don’t know. But it is worth a read. This is one of my first every sales books and will remain fond. I remember one little tidbit which I find interesting, Joe is all about relationships. Sense a theme?

A few others that are not selling centric, which I would recommend to someone if they were willing to invest in themselves and go beyond 5 books:

1. Getting Things Done:  I can honestly say that this has changed my business life and allowed me to reduce stress. I empty my mental RAM into a system that I trust and have less things ‘popping into my head’. Without this system, email and tasks would overwhelm me.

2. Think and Grow Rich:  Even all these years later, the wisdom of Napoleon Hill remain relevant. In the end, success is about visualization, seeing the end goal.

3. How to Win Friends and Influence People:  Relationships in business are everything. In the last 20 years, I have gotten two jobs from recruiters – and both did not end well. Every other job was through my network. Enough said, and remember ‘Little people have big friends’. Treat everyone with respect, from the janitor to the President, you cannot lose.

There are many other great books, but if someone were to request a starting point, this would be it. I personally look at these as a competitive advantage, because most professionals don’t invest in themselves …..

I will admit, I grade salespeople’s performance all the time. This weekend was no different. I was seeking a new cage for my boys’ rats. I know, rats? They are the most social of rodents, have a convenient 2 year lifecycle and eliminate a lot less than my 93lbs Lab did. So yes, rats. They are actually quite cute.

So I called around to find a Prevue cage (which involved months of painful evaluating). I called Pet Paradise and the conversation went like this:

Me: ‘Hi, I understand that you carry Prevue products. I am looking for the Prevue corner ferret cage. You probably do not have it in stock, so I was wondering if I could order one in?’

Her: ‘Sure. Let me take down your details. What is your name?’ (I would guess her in her 40’s or 50’s).

Me: ‘Michael’

Her: ‘May I call you Mike?’ (Odd question .. I just told her my name).

Me: ‘No. Michael’

Her: ‘Ok then. How can I help you hun?’

I had to laugh.

As many people know, one of my top 5 sales books is Mr. Schmooze. It is relevant to you whether you are in sales, distribution or someone who is internally facing because in the end it is not about ‘the schmooze’, it is about how to be interested in people … how to build relationships by not being focused on yourself.

That being said, I was in a restaurant on the weekend and read this on the wall and had to laugh …. ‘Trust me Mort …’

ABC: Always Be Closing, or something like that …..

Via Modern Family, the only funny new sitcom I have seen this year.

I enjoyed the article by Ben Stein on his ‘how to lose a deal’ list. Out of Ben’s top 22, my favourites:

3. You learn from talking far more than you learn from listening. Talk all you want, but don’t bother to pay attention to anything your customer says. He’s just a bore.

5. Don’t sweat the details or the small stuff, like year-to-year increases in rent or other charges. You’re way too important to worry about trivia, and let your customers know it.

18. Never do any research or any footwork about a client. You’re a cool, Ferris Bueller type of guy. You can always wing it. (This one personally drives me crazy. The MacKay 66!)

We are having a patio put into our backyard this week. Being new to the area, I don’t like doing these kind of things. You never know if you are getting a good price, if the contractor is a quality contractor or if you will be happy. So most people quickly turn to references. In our case, a neighbour three down from our home had a great patio in place, so we introduced ourselves and he referred us to his contractor.

Now, it has been demonstrated over and over that our propensity to buy from this contractor goes up with the referral and a relationship. After all, people are 2X as likely to buy from someone they know and like. But what struck me through this process was how important the referral was to both parties. They were getting the business, but we were counting on it to deliver a good experience and result. The process went something like this:

• I called the owner of the company, introduced myself and explained that I had been referred to him by my neighbour.
• He sent over a landscape designer to look at the backyard within 24 hours, delivering a design super fast.
• It then went a bit off the rails.We didn’t hear anything for a week, so we took action:
• We called in and were forwarded to a salesperson.
• The salesperson provided an over the phone quote (he didn’t really know us, looked at the design but did not inquire about who was helping us (the owner)). He provided a quote and said they might be able to get to us in October (maybe).
• Learning my lesson on quotes, and as the rep didn’t actually come to the house, I called in four other contractors to estimate.
• Two of the four showed up. We received our quotes and through the process I learned a lot about what was to be done, specifically that the original contractor did a special finish and one of the contractors talked about the great work they did. He had worked with them before.
• I called the President back (took 3 calls to get him to return the call), and I refreshed his memory – noting my neighbour’s reference. It turns out that he does a lot of business with my neighbour, and he kicked into high great after I said that I had additional quotes, his price was high, we had not heard from his salesperson but I still wanted his team to do the work.

A week later they are in the backyard, putting in the patio at a price point that is 23% lower than the original quote (we didn’t even haggle – he just changed the quote). Now we wait ….

In this case, both the buyer and the seller valued the relationship. Interesting to reflect on.

Being new in role, I think I have turned down 20 golf invites already this year. Too much to do in the early days of the plan. But I have been passing on my customer – executive golfing best practice to people – morning golf.

The norm for golfing is to start at 1 pm. I encourage sales people to think differently, to think about their customer’s personal life. A 1pm golf game has a number of implications:

• It often gets interrupted as afternoons are always busy.
• If it is a Friday afternoon, enjoy the traffic. I guarantee they won’t.
• It impacts family life as it often goes beyond business hours.

However, if you have a morning round (I love a 7AM tee time), you get the following benefits:

• In a Canadian summer, you avoid the 32 degree heat in the afternoon.
• It is never as busy (I hate being on a ‘corporate’ course where you get dragged into the 6 hour round)
• You leave time for lunch and people can still connect with the office and catch up.
• You don’t impact your client’s evening and their family.

Morning golf, all around better proposition. Richard Abraham has a great article on thinking about a customers’ family life when looking to all forms of business entertainment:

Taking a client to a nice restaurant during these stressful times really means something. It was always a nice way to show appreciation and to nurture our client relationships, but it has taken on extra significance during these challenging times. Now here is the kicker.

To the extent you can make it happen, try to include not only the client, but his or her spouse and your spouse or significant other for a great dinner. While we see the stress on our clients at work, it is multiplied on the home front, and a great night out can be an unbelievably powerful highlight and tonic for everyone involved.

I have worked for a few managers (note, I say managers – not leaders) who disagreed with the above, much to my chagrin. I still remember one hockey game many years ago where a few managers were distraught with decision to focus on families, not the individual. Executives get invited to events all the time, and it cuts into their evening. I decided to break the mould, I had the box for the evening and it was the playoffs. Instead of inviting 10 executives, I gave each executive 2 tickets – one for themselves, one for a family member. Some brought their spouse, some brought one of their children. It was a huge hit because they looked like a hero at home. Take the time to think about your client’s family life, they will appreciate it.

I was at an offsite meeting the other day and it had an odd door to the meeting room. The handle looked like a pocket door but you had to pull to open it, not slide. Through the morning people would walk up and keep trying to slide the door, eliciting laughter each time.

It reminded me of a story from my sales rep days. There was a door in the office that you had to pull open. Many, many times I would walk through the door with a consultant friend and almost every time I would try to push it open, then stop and pull.

Finally, on pushing, stopping and then pulling for the hundredth time, he laughed and commented ‘You truly are in sales, you only know how to push’.

It made me laugh and then stop and think. Is there such a thing as a push or pull personality?

Which are you?

I recently read an article on MSN about personal negotiation titled ‘Haggle anywhere .. Even in big box stores’ on how you can negotiate in places that you never thought possible. Personally, I negotiate in one shape or form all day long as part of my job, so in personal life I just want it done. In other words, if you are a decent sales rep, I am a pretty easy sell. Plus, my dad used to do this and when I was a kid it made me uncomfortable. So I don’t do it often.

In the article they basically said that you can negotiate in all big box stores (although I doubt that this applies to Costco). The opening line being ‘What is your recession price?’.

"The thing people don’t understand about the retail industry, especially brick-and-mortar stores, is that prices aren’t fixed," said Albert Ko, a co-founder of bargain-hunting site CheapCheapCheap.com. "With the economy, it’s all about the numbers and getting goods sold. . . . They’re willing to listen and work with you."

Interesting. By accident I did this two weeks ago. We are almost moved into a house (ending three months on the road for me) and I needed an LCD mounting kit. I went to Home Depot and saw one for $169 but it looked flimsy. So I walked next door to Future Shop. It was dead in there, so they were clearly up for a sale. The one I wanted was $369. I simply looked at him and said ‘I understand this is better quality, but I was over at Home Depot and they have one for less than half the price. It isn’t twice as good’. He said wait a minute and came back to tell me that I could have it for $300.

I saved $100 without even negotiating.

The same goes for contractors. I am not sure if there is a recession out there. As we are moving into a new house, it sure seems like they are not very interested in returning our calls or earning our business. We had a contractor in and we told him we were in a hurry so he gave us a price to paint the house. When I heard it, after sitting down and slowing my heart rate, I suggested to Narda that we should get a few more quotes. I called 8 painters and left messages, getting 3 return calls. Shocking that only 3 returned the call, business must be good. We then went on and got 2 quotes and sure enough, the first guy was way high thinking that we would not benchmark the price. In the end, we will do it for less than half the original quote.

So while I hate doing it, seems like a fair deal only comes from a little haggling.

I have blogged about the philosophy ‘Perception is reality’ before, a powerful statement that can be applied to all aspects of life as we work to understand each other. Recently I churned through the book Overcoming Your Strengths by Lois Frankel and she makes a few very interesting points with regards to communication, first impressions and the evolving workplace dress codes.

pg. 84   Dr. Allan Weiner, president of Communication Development Associates has conducted research that suggests in day-to-day communication the impression we make on others is based largely on how we work and sound. The following chart reveals that, in fact, 90% of that impression is based on factors related to other than what we actually say.

pg. 83:  Perhaps the seminal defining moment of the importance of image was the Kennedy/Nixon debate of 1960. Although most of us can’t remember the content of the debate, we do remember the physical appearance of the candidates as they sat on the platform. Despite the fact that Kennedy was in poor health, he looked youthful, tan, poised and relaxed. Although only four years Kennedy’s senior, Nixon (who refused to wear television makeup) looked wan and tired. In terms of outcome, polls of television views conducted after the debate gave Kennedy the edge, while polls of radio listeners reported Nixon the victor.

It is something worth reflecting on and takes me back to one of my first sales lessons when I was still in University. I learned my very first sales lessons at a high end men’s wear store that had the highest dollars per square foot in the province in a small blue collar city. I learned it from a man who exuded confidence, paid attention to detail and had tons of local customers. He said ‘You can tell a lot about a man by his shoes’.

I often wonder what message the young intern in the office is trying to convey when they show up in jeans and a sweatshirt? Or what message the gentlemen in the 3 piece suit and tie is trying to convey when he does not see customers and everyone else is dressed business casual?

Personally, attention to these details is a way of life in business. It was reinforced at my second job, where I sold fax machines. I was working from home and went into the office wearing jeans and a t-shirt as I was going to work at the photocopier making fliers for a campaign I was executing in my territory (In the old days … we made our own sales brochures). The sales VP walked by the room and stopped. He was not happy. He walked over and said one simple thing:

‘You are a sales professional. You are the face of our business to the customer. The staff in the office have perceptions of the sales leaders and look at them as our face to the customer. Don’t ever let me or anyone in the office ever see you dressed like that again’

He turned and left. It never happened again.

PS: Dr. Frankel wrote an interesting article on the topic for Fast Company here. A few thought provoking ideas.

I had the opportunity to view a very interesting statistic this morning with regard to customer satisfaction:

• 83% of the teams with customer satisfaction over the worldwide average were forecasting to make or beat budget.
• 72% of the teams with lower than average customer satisfaction were forecasting to miss budget.

I have never seen it laid out so clearly. As Tom Peters stated in his manefesto ‘IT’S RELATIONSHIPS, STUPID—DEEP AND FROM MULTIPLE FUNCTIONS’

Everyone sends email. We are all over loaded. Be mundane, send a thank-you email. But if you want to be in the top percentile and someone that people remember, you will send a hand written thank-you note.

It is the little things that matter.

In the book Never Hire a Bad Salesperson Again they identify drive as the number 1 predictor of sales success:

‘Drive – the Lance Armstrong type of Drive – is the most important factor for sales success. In a 1998 analysis of more than 45,000 salespeople, psychology professor Andrew Vinchur and his colleagues found need for achievement a critical component of Drive, to be more predictive of sales success than any other trait’

‘These 3 traits – need for achievement, competitiveness and optimism – are all necessary elements of drive’

Another element of drive is passion. Do you believe in what you do? Do you love what you do? Do you believe that your customer will be better off when you walk out that door – deal in hand?

When I was younger I was lured away from Dell Computer by an IT company that paid very well. It was not uncommon to see people earning $1M a year. The culture? Poison. Screw the customer, get the deal at all costs, underhand dealings and a classic 1950’s – pick the worst – sales culture. I hated every minute of it and left after 4 months. I was not passionate about what I was selling and I did not feel good about how they did things.

For me, if the passion is gone, I am gone. Watch this video – it is a great demonstration of passion. Love what you do – believe in what you do – play hard or go home.

You can read the inspiring story of Paul Pots here. Mobile phone sales guy to famous opera star. Inspiring.

Many think sales is an easy profession. The comments of ‘anyone can sell’ or ‘all you guys do is golf’ have been heard around the world thousands upon thousands of times.

One of the first sales professions to swell when times are good is the real estate market. People decide ‘I can do that’, take their test and thanks to an employment program which is usually 100% commission (meaning low risk to no perceived risk to the real estate company), they become an agent.

A friend of ours is an agent (called estate agents in the UK) and we were discussing the impact that the decline is having on her business: never better, she doubled her income last year. Why?

Simple. As this article points out, all of the part-time – I think I will give sales a go – agents are dropping out at a fast and furious pace. As times get tough and they are required to actually apply skill to win business, they realize that they are not up to the task and customers (people selling their houses) are realizing that it is getting tougher to sell the house (As an aside, she mentioned that $600K+ homes are not moving at all). Which means that customers are turning to the agents with a good reputation, who market effectively, who have been referenced by friends to them, to sell the house.

I have known a few very successful real estate agents earning $300K++ a year. It is a 7X24 grueling pace, relies on great reference selling and professionalism.

Real estate sales are anything but easy – especially in the years ahead. Buckle up. The economists say here comes the recession ….

In a recent discussion with a colleague about relationship building in sales, he shared a great story. He was on a train to see a client and was reading a book on snooker. His colleague (A technical sales person) noticed and asked ‘You like snooker?’. He replied with a resounding no. ‘Then why are you reading that book’ was the perplexed follow-up question. ‘Because my client loves snooker’

He went on to relate how the sales meeting, with a customer who had always been cold toward him went, they spent the first 20 minutes talking about the snooker championship on the weekend and he spent the time learning more about the game and why his client was passionate about the sport.

It seems so obvious, but so many salespeople just don’t understand how to build relationships that are meaningful.

As an aside, I told that with my new UK team and found out afterward that as I was walking through the story half the people were saying ‘who is snooker?’. It would appear that the UK pronounce it ‘snooooooker’, not ‘snooker’. Separated by a common language.