Archive for December, 2010
Wednesday, December 29th, 2010
2011 is fast approaching and many sales organizations have already strategized their sales goals and objectives for the New Year. Some organizations may be finalizing their 2011 projections as we speak. No matter where your company is in the forecasting process it is critical to have established and clearly defined sales goals. Sales is all about being focused on generating the right activity that will effectively fill your funnel, and therefore net the results your organization requires.
In addition to defined goals there are several other criteria that foster success in sales:
- Sell with questions not answers – Potential customers for your product or service really don’t care what you have to say. Your sales pitch or sales script is really the last thing they want to hear. What potential customers really want are their questions answered. Their questions are indicative of what is really important to them. When you understand what is important to them, you create or uncover their personal buying motive. Spend more time asking questions about what they want or need. Use your product or service knowledge to answer their questions concisely while moving directly into the next question. Remember that it is really about them … not about your knowledge. Help a potential customer make a buying decision through the questions you have asked rather than trying to sell by guessing at which features and benefits you think may be important to them.
- People buy based on emotions – Another powerful reason to sell with questions is because it helps you uncover personal buying motives. Buying motives are typically emotional as rarely do people make buying decisions based on logic. Someone could decide to buy a car but they purchase a Volvo specifically for the safety of their family. Safety is an emotional reason. Most men and women resist the need to go to a new barber or hair stylist. Getting your hair trimmed or styled is a very practical exercise. However for many people the resistance to change is based on the fact that, “no one can do my hair exactly the way Joanne does it.” That response represents a personal and emotional attachment.
- Build relationships not orders – Success in sales is about relationships. Orders are nice but the benefit is short term at best. Creating relationships built around a management philosophy of creating loyal customers means you get to take orders from that customer for life because they keep coming back. And, they keep coming back because of the relationship they have with you and your company. If you promote the sales philosophy of taking orders you are promoting the idea of shopping around, looking for the better price, or the biggest discount. Promoting loyalty mean your customer all ready knows the service or product is great and they truly appreciate the way they are treated and served as a customers. A strong relationship is critical to the long-term success of sales organization.
- Think – Sales is a profession that can never be mastered. There is always something to learn, a new technique to be mastered, and a more thorough way to understand the emotional buying motives of your potential client. Therefore you must always be thinking, learning, and honing your skills. If you truly believe that you have mastered your sales profession then I am here to tell you, you are your biggest obstacle to your sales success. Personal growth and development as a sales professional is key to generating the income you desire.
- Spend your time wisely – Time is money, so allocate your time as if your were actually allocating real dollar bills. Money truly is what you are throwing away every time you don’t manage your time wisely.
2011 is going to be a great year because it is time we take control of our success and economic destiny. Success in sales is exciting but requires dedication and work. How can you take some of the tips above and apply them to your success in sales? Start today—2011 is right around the corner.
Tammy A.S. Kohl is President of Resource Associates Corporation. For over 30 years, RAC has specialized in helping businesses accelerate results through sales development and sales coaching. For information go to www.resourceassociatescorp.com or contact RAC directly at 800.799.6227.
Tags: 2011, Customer Loyalty, obstacle, RAC, Resource Associates Corporation, Sales, sales goals, Success, Time
Posted in Goal Planning, Sales | No Comments »
Wednesday, December 22nd, 2010
Customer loyalty is fast becoming a key strategic initiative for most businesses because loyal customers stay with your organization, and will continue to buy your products or services. Revenue and profitability are important business indicators, but too often they reflect decisions an organization made yesterday; whereas growing a loyal customer base is a key predictor of future success. When an organization is focusing both on profitability and loyal customers, they have the best chance of creating a sustainable business.
A key factor that many organizations miss is the fact that they cannot have loyal customers if they do not have loyal employees. Employee loyalty can be defined as employees being committed to the success of the organization and believing that working for the organization is their best option. It is not about employee tenure. It is about wanting to contribute to the success of the organization.
Finding good employees can be challenging and time consuming. However, once you find the right fit and nurture the employee relationship, it can be quite costly to see that relationship go by the wayside. Depending on what research you read the cost to replace a hourly employee can be anywhere from 35% to 50% of their salary, and for a professional staff person, the replacement cost can go as high as 125%.
How can your organization foster employee loyalty?
- Share your vision and strategic plan.
Communicating what the organization stands for, where the organization is going, and how that impacts all stakeholders, particularly the employees, is key. Employees want and need to know what they are a part of and how their contribution will make a positive impact on the success of the organization. Give them a reason to be there!
- Encourage ideas and feedback.
Create an organizational culture that is open to new ideas and fresh perspectives. Your employees are on the front lines and they can tell you what is working and what might work better. In a recent client engagement where we were working with a cross functional team, a woman who had the least to do with the process made one simple suggestion that ended up saving the organization hundreds of thousands of dollars. Loyal employees make positive contributions!
- Walk your talk.
Everything you do and say needs to embody the values and culture of employee loyalty. Recognize and respect your employees. Let them know when they are exceeding goals and objectives, and praise accordingly. If there is a challenge, then give your employee the details straight up. Give employees open and honest feedback and they will reward you with loyalty.
- Measure Your Company’s Employee Loyalty.
You cannot manage or improve what you are not measuring. Your organization cannot improve its employee loyalty factor unless you know your starting point. Do you have a system in place to capture that data? If not, create one or find one. Give your employees an opportunity to tell you what is going well and what needs to be improved. Based on the data you will be able to make strategic decisions that will continue to foster employee loyalty. Your people really are your greatest asset!
Creating a loyal customer base can be the measurable difference between you and your competitors. Enhance your ability to accomplish that strategic goal by creating and maintaining loyal employees. Your employees will always be the key!
Tammy A.S. Kohl is President of Resource Associates Corporation. For over 30 years, RAC has specialized in helping businesses assess, measure and improve their employee and customer loyalty. Learn how at www.resourceassociatescorp.com or contact RAC directly at 800.799.6227.
Tags: contribution, Customer Loyalty, employee loyalty, profitability, RAC, Resource Associates Corporation, Strategic Planning
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Wednesday, December 15th, 2010
“Economists say that the great recession, the longest and deepest since World War II, ended 18 months ago and the US economy is growing again. Growth is relative. That doesn’t mean sit and wait for things to improve. Rather retool for the economy that exists today.” – Rosalind Resnick, Entrepreneur Magazine, December 2010
As you review your company’s strategic plan and forecast for 2011, what can you do to ensure that your company will meet those objectives and goals? Ms. Resnick’s comment is absolutely on target, you can sit around and react to your environment, or you can retool your business objectives and take a proactive approach to success for 2011.
There are a number of strategic areas that may be worth focusing more time and effort on in your business as you begin to think about retooling:
- First and foremost, revisit your strategic plan. It is appropriate to focus on the 3-5 year horizon because you need to identify what you want to grow into. However, it is critical to focus on what your business needs to accomplish in the next 12 months. What are the critical success factors that your business needs to focus on in order to accomplish your forecast? Do your employees know what the 12-month plan looks like and do they know what they need to contribute in order for the plan to be successful? If you cannot answer ‘yes’ to any of these three questions, you are not ready for 2011.
- Second, identify what is really working and set a plan in motion to maximize it. Capitalize on your strengths. What product or service is your top seller, and how do you get customers to buy more of it? How do you grow your customer base for that product or service? Knowing your core business strengths allows your organization to maximize on existing opportunities where your company is already excellent.
- Third, try new and different things. After you have identified the core products and/or services of your business, look for new, out-of-the-box opportunities. Outside and uncontrollable distractions often cause us to pull the reins in and focus on what we have always done. Use these changing times to your benefit. Challenge yourself and your employees to look at every process, product line, service, and customer for new opportunities. You will be surprised what your team may find and suggest. At first blush an idea might seem outrageous, but outrageous could mean the difference between status quo and a new level of success.
The last thought to consider is leveraging your uniqueness. The business marketplace is becoming a sea of similarity. Your brand should communicate the value you bring to your customer from the eyes of the customer. Your brand is not really about what you think you do. The brand you should be leveraging is what value your customers say you bring to the table. Find out what your customers really think and start spreading that unique message.
If you did not like the results you generated in 2010, you have two choices. You can continue on your current path and hope for different results, or you can set your goals, maximize your strengths, honestly look for new opportunities, and incessantly market your brand with a voice that is meaningful to your customer. Hope is never a successful strategy, but focused action is … what will make 2011 a successful year for your company?
Tammy A.S. Kohl is President of Resource Associates Corporation. For over 30 years, RAC has specialized in helping businesses and individuals achieve high levels of excellence and success. Learn how at www.resourceassociatescorp.com or contact RAC directly at 800.799.6227.
Tags: 2011, branding, Business Success, Customer Loyalty, entrepreneur magazine, RAC, Resource Associates Corporation, strategic plan, world war II
Posted in Customer Loyalty, Strategic Planning | No Comments »
Wednesday, December 8th, 2010
When preparing future leaders to take on greater responsibility, organizations are looking for integrity and excellent communication skills.
In a recent study conducted by Robert Half Management Resources, it was concluded that beyond technical and functional expertise, the following traits were high on an organization’s list of leadership requirements. The survey included 1,400 CFO’s from a random sample of US companies with 20 or more employees. (T&D December 2010)
- Integrity – 33%
- Interpersonal/Communication Skills – 28%
- Initiative – 15%
- Ability to Motivate Others – 12%
- Business Savvy – 10%
Pay attention to any form of business news and it will quickly confirm that integrity in business is becoming a lost art. Companies want quick fixes, fast money, and magic bullets. Companies are not spending the necessary time to create and maintain cultures of integrity, values, and processes, or making the right decisions for the right reasons. Lack of corporate integrity has been the documented cause of organizational demise, severe embarrassment, and financial loss many times within the last nine years.
The examples start with the avalanche of accounting scandals in 2001 and 2002, which included the Enron debacle and companies such as Tyco, Arthur Anderson, and Kmart. Forbes magazine created a Corporate Scandal Sheet listing just accounting imbroglios like the companies listed above. The list was published on August 26, 2002 and sadly is quite long. In the last couple of years, we have seen similar challenges in the financial and mortgage world with AIG, Goldman Sachs, Freddie, and Fannie.
Corporate integrity is not a choice, nor should it be implemented for shear convenience. Integrity is the concept of consistency of actions, values, methods, measures, principles, expectations, and outcomes. In ethics, integrity is regarded as the quality of having a sense of honesty and truthfulness.
Fast Company conducted a study with the objective being to gather perceptions about specific characteristics of leaders. 95% of respondents said “yes” or “absolutely” when asked. Do the ethics of the CEO play a meaningful role in the way business gets done? Respondents go on to say “Good ethics is also good business. It builds the brand, draws customers, and saves money in the long run.” (Fast Track Leadership Survey August 2005)
Organizations must take the time to define their core values. Clearly defined core values create a sense of unity and help the company steer all of their resources in a focused and meaningful direction. It is the spirit that drives the company regardless of its industry or size and helps the organization make appropriate decisions in tough times. Core values provide answers to tough questions and act as a guiding light in situations of conflict. Leaders with integrity must have an unwavering commitment to the organization’s core values and they must be willing to defend them.
There are no quick fixes, or magic bullets. Money needs to be earned. Show your external and internal customers, as well as all of your stakeholders, that your organization stands for something and that is has self-imposed rules that guide all decisions. Leading with integrity sends a powerful message to employees. Your leadership by example is critical to creating an environment and culture of integrity throughout the entire organization. Integrity really does matter!
Tammy A.S. Kohl is President of Resource Associates Corporation. For over 30 years, RAC has specialized in helping businesses achieve sustainable results through leadership development and executive coaching. For information on creating a leadership succession plan visit www.resourceassociatescorp.com or contact RAC directly at 800.799.6227.
Tags: Communications, Fast Company, Forbes, integrity, interpersonal, Kmart, RAC, Resource Associates Corporation
Posted in Communications | 1 Comment »
Thursday, December 2nd, 2010
Unfortunately, many people go through life without ever identifying what they want, where they want to go, or who they want to become. They wonder why they feel frustrated, never achieving anything significant. What they should realize is that the difficulty is in finding something you’ve never visualized, or returning from somewhere you’ve never been. People who have no goals, have no direction, and are almost always very busy, but rarely achieve what they want to achieve.
Now is the perfect time of the year to stop and evaluate what you have accomplished, and what accomplishments 2011 will bring. People who experience high levels of achievement and success have clearly defined personal and professional goals with specific action steps and benchmarks. As goals are achieved, confidence and knowledge heightens and expands; therefore, even higher goals become realistic. While there is no guarantee that you will achieve your goals within the given time frames, establishing them helps to ensure you will. The more passionate you are about achieving your goals, the less you will worry about possible problems, details, and day-to-day challenges. Having clearly defined goals allows you to have a sense of control over your action, your life, and your organization.
Developing personal goals that you are committed to as well as a solid plan for your organization will help to minimize setbacks. However, there will always be setbacks so expect them. Look forward to them and use them as springboards to higher levels of success. In adversity, there is opportunity. Successful people are those who have learned to face adversity with anticipation because they know that they are the greatest opportunities for learning. If you want to succeed, you must develop a positive attitude about failure. You only fail when you stop trying. In fact, failure can be your most important learning opportunity. Those that succeed are those who do the things that failures don’t like to do. Failure provides you with a chance to grow, learn, and to become better.
Creating focused and purposeful goals takes time and careful thought. It is not an exercise to be done quickly or taken lightly. It is only when you seriously evaluate what you want to accomplish, do, and become that you begin to see the future you want. Once the vision is in place it becomes much easier to create a goal and actionable plan. Start by asking yourself some seemingly easy, but often tough questions about your future.
- In 2011, what do you want to achieve for your business and for you personally?
- Where do you envision yourself personally in 1, 2, and 5 years?
- What qualities and skills do you need to develop in order to achieve your goals?
- What do you want your career or your business to provide you?
- Where do you see yourself in the next 20 years?
We are embarking on a new year full of opportunities and potential accomplishments, and they are not far beyond your reach. Define what you want and where you want to go. Develop specific goals to make that vision of your future a reality, and then create the specific action steps that will become your road map for success in 2011. There may be bumps in the road, wrong turns, or total course corrections but stayed focused. Your success is not a matter of chance!
Tammy A.S. Kohl is President of Resource Associates Corporation. For over 30 years, RAC has specialized in business and management consulting, strategic planning, leadership development, executive coaching, and youth leadership. For more information visit http://www.resourceassociatescorp.com/ or contact RAC directly at 800.799.6227.
Tags: 2011, achieve, action steps, business, career, goals, personal goals, planning, RAC, Resource Associates Corporation, Success
Posted in Goal Planning | No Comments »
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