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“BUSINESS INSIGHTS”
An Occasional Newsletter
to our Clients, Readers, and Friends
We have witnessed a technological revolution in the tools we use in selling and we are now seeing a revolution in the role of the sales representative. It is easier to replace a piece of equipment than to replace a sales or customer service representative.
The Bureau of Labor
Statistics estimates that over the next 10 years there will be a 15 percent
decline in workers age 35 to 54 and a 9 percent decline in workers age 25 to
34, concurrent with a 25 percent increase in demand for workers in those age
groups. Today I see companies having a hard time finding qualified young
people to fill their sales and customer service positions, but that's
nothing compared to the struggles they'll likely be facing in the next few
years.
So, what do we do with?
Management often believes
corrective action requires incentives. In truth, incentives do not create
more knowledgeable, effective, productive salespeople. There is no quick fix
or an all-purpose remedy for every member of a sales force. That's
especially true in the case of less experienced reps that need the time,
skills and information to develop new accounts.
Selling has changed
fundamentally. The attributes, roles, objectives and activities of
salespeople also must change. These days, it's not enough to be liked by a
customer or prospect. It's necessary to be both liked and valued.
Like it or not, it's all
about the customer. It's not about your company's products or services. It's
about the ability to help a customer achieve their business objectives. Here
are some of the most important and least appreciated qualities of today's
successful sales representatives:
Today,
it's necessary for a salesperson to understand the difference between profit
and cash flow, the carrying and opportunity costs of excess inventory, and
the ability to communicate effectively within the customer’s organization
and within your company.
The
sales representative should leave each sales call with more information than
he or she had at the beginning of the call. It's equally important that at
least one piece of helpful, relevant information be shared with the buyer on
every sales call. This creates perceived value.
As companies continue to reduce the number of qualified vendors, supplier selection decisions increasingly occur at higher levels within the company. A salesperson might never meet all the decision makers face-to-face.
Think
about your current customers. What would a salesperson have to do to sell
each of them if they weren't already an account? Are they receiving that?
Failure to adopt this mindset runs the risk of buyers feeling neglected and
looking for a more suitable vendor.
Not all business is
profitable. The successful representative needs to know how to find
qualified prospects, but he also needs to know whom not to call on.
As I
look at newly hired sales
and
customer service representatives in many industries, I see a growing
problem of incomplete education. The new generation is not as well equipped
with effective
communication skills,
math skills, business skills, and knowledge of the sciences as
previous generations entering the selling profession. Now more than ever, we
need to educate and provide the support needed for them to succeed if we are
to retain employees that will grow in their professions and grow our
businesses.
There is a popular saying
that states: If you always do what you’ve always done, you’ll always be
what you’ve always been. Today's challenges can't be satisfied with
yesterday's mindset.
About Ken Wilson: Ken is the president of the
Wilson Marketing Group,
Inc., a firm specializing in
business-to-business and industrial marketing.
Ken has over 32 years of practical
consulting experience in business-to-business marketing and management. He
has also been a member of the adjunct faculty at the Graduate School of
Business at the University of St. Thomas for over two decades, teaching
graduate level courses in strategy, marketing and product management and he
has lectured on planning and strategy at the University of Minnesota,
Carlson School of Management, Ken would
be happy to answer your
questions by e-mail at ken@wmg-mn.com or by phone at 763.476.2216.
Copyright ©2011 by Ken Wilson
All rights reserved.
Over 25 years experience providing strategy and marketing consulting to manufacturers and business-to-business clients.
Proven experience you can trust.