For a long time now, we've talked about how important it is to sell the benefits of a product rather than the features. While this is good advice, sales trainer Mark Hunter takes it up a notch and explains why you need to have the customer talking benefits - rather than you!
As much as salespeople like to talk about the "benefits" of a product or service, the truth is that something only becomes a benefit when the customer says it is.
Nothing drives me crazy faster than having a salesperson share with me how their number one objective in a sales call leading up to the close is to explain to the customer all of the wonderful benefits of what they have to offer. Excuse me but this is why people have the perception that salespeople don't know how to listen and how the typical salesperson thinks they know everything.
A quote of mine I like to use is "it's not a benefit until the customer says it's a benefit." Get it? Until the customer speaks the words from their mouth, there is no way I or any other salesperson can say that's a benefit the customer wants. The reason I'm a strong believer in this comes down to my belief that when a person says something it has a lot more meaning than if they merely nod their head at something the salesperson just said. Let's face it...they could be nodding simply because they are polite.
When the customer actually says in their own words what they're looking for, then it takes on value. Plus, once they say what they're looking for, it then gives you, the salesperson, an excellent opportunity to ask follow-up questions to get the customer to reveal more.
We are in a much better position to close the sale and do so at a profitable margin when we’ve been able to get the customer to verbalize the various benefits they want.
One more thought — yes, it is possible to close a sale after having a customer verbalize to us one good benefit; however, I believe the more benefits the customer shares, the higher the profit margin you'll be able to achieve on the sale. The customer is expressing to you several benefits, each with a different degree of value to them. As the customer shares with you multiple benefits, keep in mind that they are providing you excellent information you can use as follow up after the initial sale. In other words, you can begin working toward the next sale. After all, a good sale is one that leads to the next sale.
Mark Hunter, "The Sales Hunter", is a sales expert who speaks to thousands each year on how to increase their sales profitability. For more information, to receive a free weekly email sales tip, or to read his Sales Motivation Blog, visit www.TheSalesHunter.com
Wednesday, February 9, 2011
Tuesday, February 8, 2011
Begin 2011 by Getting the Easy Sales
I know it's actually February, and not exactly the beginning of the year any more, but I really like this article from sales expert Art Sobczak and think it's excellent advice to start implementing anytime!
Did you go through an annual review recently? They can be very profitable.
Oh, I'm talking about YOU doing an annual review of your customer and prospect database, and then doing reviews with your customers and prospects.
That's right. The first place to mine for gold is in the treasure you now possess.
Most people begin a new year with grand plans to increase their new business. Yet many of those same people don't pick up the easy stuff first, skimming the cream that already residing in their computer.
Here's how.
1. CALL YOUR BEST CUSTOMERS
Of course, you know everything important that's happened recently in the world of each of your best customers, right? And you have your thumb on exactly what their plans are for 2011 and beyond, right? And they're going to continue buying from you at the same level, right?
Of course you know this because they are very, very important to you, accounting for most of your income. They are helping to finance that new car, house, boat, or whatever else you have your eye on.
You are ingrained in these accounts because you also know that your smartest, hungriest competitors are having strategic sales meetings right now putting bulls eyes on those accounts, targeting them to steal away from you, so that THEY can get lots of business from them.
What's that you say? Maybe all of those things are NOT true? Maybe you should pay more attention to them? Yes, of course you should. Quickly.
Today. Target the 20% of your customers that now give you over 80% of your business. Call and do an annual review with them. But DO NOT say you just want to call and make sure everything is OK with them. Be proactive. Tell them that your goal is to help them have their best year ever.
Find out about
-Major changes.
-News.
-Bought or sold divisions, assets.
-Added or dropped product lines.
-Major initiatives.
-Changes planned for 2011.
-Personnel changes for them? Promotions. Changes in the department(s) that you affect.
Know the answers to these questions, and you'll increase your value to them, consequently providing a payoff for you.
2. CALL YOUR SMALL CUSTOMERS
Mine your database and pull out the customers who bought from you once, or those who just buy one or two items or limited single services from you.
Are you customers small because you THINK they are? Or are they buying other things that you sell from your competitors?
Chances are, the answer is "yes" to both questions.
3. CALL YOUR LOST SALES
Scan your database and pull out the 10-20 biggest sales you really wanted, worked hard for, but did NOT win in 2010. Call them.
But, please, do NOT say, "I'm just calling to touch base."
Review your notes and develop a value-added reason for calling. Say something like,
"I came across some interesting information in Info Industry Journal, and remembered how you were concerned with the issue of external data security locking in a multi-user environment. I wanted to send that to you ..."
Of course you would then ease into a discussion of their present situation, and perhaps uncover any possible areas of dissatisfaction.
Calls to all three of these groups are really no-brainers! Think about it ... ...you've already done the heavy lifting with all of these people. You've put in the long hours, investing time and money in proposals and calls. You know their situation. And very importantly, you'll get to these people more easily than you would cold prospects. You probably know their executive assistants on a first name basis.
Try this. What will it be worth when you pick up a piece of business from one or two of them?
Art Sobczak helps sales pros use the phone to prospect, service and sell more effectively, while eliminating morale-killing rejection. To get FREE weekly emailed TelE-Sales Tips visit: www.BusinessByPhone.com
Did you go through an annual review recently? They can be very profitable.
Oh, I'm talking about YOU doing an annual review of your customer and prospect database, and then doing reviews with your customers and prospects.
That's right. The first place to mine for gold is in the treasure you now possess.
Most people begin a new year with grand plans to increase their new business. Yet many of those same people don't pick up the easy stuff first, skimming the cream that already residing in their computer.
Here's how.
1. CALL YOUR BEST CUSTOMERS
Of course, you know everything important that's happened recently in the world of each of your best customers, right? And you have your thumb on exactly what their plans are for 2011 and beyond, right? And they're going to continue buying from you at the same level, right?
Of course you know this because they are very, very important to you, accounting for most of your income. They are helping to finance that new car, house, boat, or whatever else you have your eye on.
You are ingrained in these accounts because you also know that your smartest, hungriest competitors are having strategic sales meetings right now putting bulls eyes on those accounts, targeting them to steal away from you, so that THEY can get lots of business from them.
What's that you say? Maybe all of those things are NOT true? Maybe you should pay more attention to them? Yes, of course you should. Quickly.
Today. Target the 20% of your customers that now give you over 80% of your business. Call and do an annual review with them. But DO NOT say you just want to call and make sure everything is OK with them. Be proactive. Tell them that your goal is to help them have their best year ever.
Find out about
-Major changes.
-News.
-Bought or sold divisions, assets.
-Added or dropped product lines.
-Major initiatives.
-Changes planned for 2011.
-Personnel changes for them? Promotions. Changes in the department(s) that you affect.
Know the answers to these questions, and you'll increase your value to them, consequently providing a payoff for you.
2. CALL YOUR SMALL CUSTOMERS
Mine your database and pull out the customers who bought from you once, or those who just buy one or two items or limited single services from you.
Are you customers small because you THINK they are? Or are they buying other things that you sell from your competitors?
Chances are, the answer is "yes" to both questions.
3. CALL YOUR LOST SALES
Scan your database and pull out the 10-20 biggest sales you really wanted, worked hard for, but did NOT win in 2010. Call them.
But, please, do NOT say, "I'm just calling to touch base."
Review your notes and develop a value-added reason for calling. Say something like,
"I came across some interesting information in Info Industry Journal, and remembered how you were concerned with the issue of external data security locking in a multi-user environment. I wanted to send that to you ..."
Of course you would then ease into a discussion of their present situation, and perhaps uncover any possible areas of dissatisfaction.
Calls to all three of these groups are really no-brainers! Think about it ... ...you've already done the heavy lifting with all of these people. You've put in the long hours, investing time and money in proposals and calls. You know their situation. And very importantly, you'll get to these people more easily than you would cold prospects. You probably know their executive assistants on a first name basis.
Try this. What will it be worth when you pick up a piece of business from one or two of them?
Art Sobczak helps sales pros use the phone to prospect, service and sell more effectively, while eliminating morale-killing rejection. To get FREE weekly emailed TelE-Sales Tips visit: www.BusinessByPhone.com
Monday, February 7, 2011
Quote of the Week
"Skill to do comes of doing." -- Ralph Waldo Emerson, Poet
You want to be a great cold caller? Someone who sends great, engaging emails? Someone who can talk to anyone? You may not realize it, but all of those things take LOTS of practice. They are all skills, something that people can work at and get better at.
So, that means you have to get started! If you don't like cold calling because you feel you're no good at it - unfortunately, you won't get any better unless you actually pick up the phone. It can be daunting and scary - so practice on your relatives and friends first. Then move on to a small new client that isn't intimidating. Keep moving your way up, and watch your confidence grow because of all your practice!
You want to be a great cold caller? Someone who sends great, engaging emails? Someone who can talk to anyone? You may not realize it, but all of those things take LOTS of practice. They are all skills, something that people can work at and get better at.
So, that means you have to get started! If you don't like cold calling because you feel you're no good at it - unfortunately, you won't get any better unless you actually pick up the phone. It can be daunting and scary - so practice on your relatives and friends first. Then move on to a small new client that isn't intimidating. Keep moving your way up, and watch your confidence grow because of all your practice!
Friday, February 4, 2011
Strategies for Branding Yourself and Increasing Your Tele-Sales Revenues for 2011 - Part 2
Yesterday we ran the first half of an excellent article from tele-sales expert Jim Domanski on branding and building your business. Today we're featuring the second half of the article. Enjoy!
1. Get Better at E-mail Communications and Selling
Today's top 'brand' of B2B tele-sales reps must communicate at two levels. FACT: you will not achieve superior sales results if you cannot effectively use the telephone to prospect or sell if you cannot effectively craft a superb e-mail. The telephone provides audio messages (via direct contact and voice mail) and e-mail provides visual messages. In today's marketplace, the two go together like peas and carrots. The trouble is most reps do not know how to compose an effective e-mail that is persuasive and interesting. They write ponderous copy with a dozen sentences. The e-mail is crammed with self-serving propaganda. The grammar is questionable at best.
Learn how to write a good e-mail that LOOKS good and the READS good. And if you don't know how to do that, drop me an e-mail and I'll send you a report or two.
2. Practice Add On Selling
Over 70% of calls to clients and prospects end up in voice mail. What this means is that you must make the absolute most of the 30% or so calls that reach a live decision maker. Add on selling (AOS) is a means to squeeze, leverage and extract every single ounce of potential from the calls that you make in a professional, value added manner.
In practical terms, that means cross selling or up selling in a manner that educates the client and makes them want to listen and learn. For you that means additional revenue, usually at a better margin and typically, that means a better, bigger commission. AOS means asking for referrals because a good referral closes at a rate of 75%. AOS means getting curious and asking questions that gather 'market intelligence' by 'picking' your clients brains to get their thoughts, feeling and suggestions.
3. Work Just a Little Bit Harder
Do you want to quickly get a good name for yourself internally or externally? Then simply work harder. The top brands - products or people- did not become the top brand by sitting on the sideline watching their competitors waltz by. Top brands worked hard to achieve the #1 spot. It doesn't have to be 14 hour days. Translated, working hard means cranking out a few more calls in a day or arriving a little bit early - even fifteen minutes or staying late every now and then, and doing some work from home. It means searching for value added articles or recipes or thank you cards to send to clients to build personal relationships. It means learning your products inside and out. Break a sweat now and then.
4. Invest in Yourself
Invest a few bucks in yourself. Buy a book. Order some DVDs. Pay for a download. Sign up for a Send Out Cards program. Attend a webinar or conference and do it on your own dime. Invest in yourself and you invest in your brand by making it better, sharper, more professional. The moment YOU take some financial risk is the moment you'll want a greater ROI. You'll push yourself. You'll work harder because of it (see above). You'll buy those thank you cards and use them. You'll follow up a little more closely.
By Jim Domanski of Teleconcepts Consulting. Please visit Jim's web site at www.teleconceptsconsulting.com for additional articles and resources for tele-sales professionals.
1. Get Better at E-mail Communications and Selling
Today's top 'brand' of B2B tele-sales reps must communicate at two levels. FACT: you will not achieve superior sales results if you cannot effectively use the telephone to prospect or sell if you cannot effectively craft a superb e-mail. The telephone provides audio messages (via direct contact and voice mail) and e-mail provides visual messages. In today's marketplace, the two go together like peas and carrots. The trouble is most reps do not know how to compose an effective e-mail that is persuasive and interesting. They write ponderous copy with a dozen sentences. The e-mail is crammed with self-serving propaganda. The grammar is questionable at best.
Learn how to write a good e-mail that LOOKS good and the READS good. And if you don't know how to do that, drop me an e-mail and I'll send you a report or two.
2. Practice Add On Selling
Over 70% of calls to clients and prospects end up in voice mail. What this means is that you must make the absolute most of the 30% or so calls that reach a live decision maker. Add on selling (AOS) is a means to squeeze, leverage and extract every single ounce of potential from the calls that you make in a professional, value added manner.
In practical terms, that means cross selling or up selling in a manner that educates the client and makes them want to listen and learn. For you that means additional revenue, usually at a better margin and typically, that means a better, bigger commission. AOS means asking for referrals because a good referral closes at a rate of 75%. AOS means getting curious and asking questions that gather 'market intelligence' by 'picking' your clients brains to get their thoughts, feeling and suggestions.
3. Work Just a Little Bit Harder
Do you want to quickly get a good name for yourself internally or externally? Then simply work harder. The top brands - products or people- did not become the top brand by sitting on the sideline watching their competitors waltz by. Top brands worked hard to achieve the #1 spot. It doesn't have to be 14 hour days. Translated, working hard means cranking out a few more calls in a day or arriving a little bit early - even fifteen minutes or staying late every now and then, and doing some work from home. It means searching for value added articles or recipes or thank you cards to send to clients to build personal relationships. It means learning your products inside and out. Break a sweat now and then.
4. Invest in Yourself
Invest a few bucks in yourself. Buy a book. Order some DVDs. Pay for a download. Sign up for a Send Out Cards program. Attend a webinar or conference and do it on your own dime. Invest in yourself and you invest in your brand by making it better, sharper, more professional. The moment YOU take some financial risk is the moment you'll want a greater ROI. You'll push yourself. You'll work harder because of it (see above). You'll buy those thank you cards and use them. You'll follow up a little more closely.
By Jim Domanski of Teleconcepts Consulting. Please visit Jim's web site at www.teleconceptsconsulting.com for additional articles and resources for tele-sales professionals.
Thursday, February 3, 2011
Strategies for Branding Yourself and Increasing Your Tele-Sales Revenues for 2011
Jim Domanski is a tele-sales expert, and his advice today only showcases that. Today and tomorrow we will feature Domanski's take on personal branding, and how it will help you significantly with your tele-sales.
Here's the good news for 2011:
Tele-sales as a selling application (and as a profession) is growing as field sales continues to decline. More and more B2B companies are jumping onto the tele-sales bandwagon because it is fast, less costly and because it appeals to a new generation of buyers who do not need the same level of face-to-face contact. What they need and want is instant information and the telephone (in conjunction with the internet, e-mail, webinars, tele-conferences, etc.) is poised to deliver it. So this means there is a huge opportunity for you to succeed in tele-selling.
But here's the bad news for 2011:
Because tele-sales is growing there's going to be a glut of competition in the marketplace. More of your competitors will be calling your customers and prospects. In fact, more of your non-competitors are going to be using the telephone to contact your customers and prospects. So this means you need to differentiate yourself; stand out from you competitors and non-competitors. You need to be better, smarter, and more valuable so you stick out from the clutter.
And here's the solution:
Create your own personal 'brand.' In other words, you need to distinguish yourself in the eyes of your clients. You need to be recognizable, memorable, and valuable. You want your clients to say, "I'll take that call" or "I'll return that message."
7 Personal Branding Strategies
Strategy #1: Become a Business Resource
To be a strong brand, it is not enough to simply be a source of information (source of brochures, promotional literature, products, prices, offers, services etc.), you've got to be a "resource." A resource is someone who supplies prospects and clients with 'extras' that go beyond pitching a product or service. A resource provides unsolicited Special Reports and White Papers to add value. Resources scan industry magazines and rip out articles that they share with clients. They provide links to web sites that can help the client work better, smarter and faster. They send independent newsletters and data that their competitors would never think of doing.
Becoming a resource means you have to do more homework and become the industry expert; the product guru; or the 'go-to' guy when clients have a question. Resources do more. Extra. They create value.
2. Build Stronger Personal Relationships
All things being equal, people will buy from people they know, like and trust. In fact, all things being relatively unequal, people will still buy from people they know, like and trust. How well do you know your clients? How well do they know you? What have you done to create likability and trust?
You see, that's the difference between a transaction and a relationship. Customers can transact business with any company/sales rep that is relatively decent and competent. But they would prefer to do business with people who not only add the value (See Strategy #1) but who are interesting, likeable and 'worthy' of the business.
Even in B2B situations, there is still an element of emotion in the buying process.
To brand yourself, you need to tap into this emotional stream. It is planned and purposeful. That means sending thank you cards every now then. It means remembering a birthday or that their son plays hockey or their daughter plays volleyball. It means sending a Memphis Dry Rub recipe to an avid BBQer; it means sending an article from Golf Digest on chipping; it means finding memorable quotes; it might mean sending a cartoon; it could mean gentle teasing about Notre Dame losing to Michigan.
Building a relationship could mean sending homemade cookies, chocolates, or candy. Maybe donuts. Anything that solidifies the personal side of the selling equation.
3. Plan and Prepare More
Look, with the glut of competitors calling the same target markets, your call NEEDS to be well planned and prepared if you expect your clients to listen and perceive value. What this means is having a well-defined primary objective supported by secondary objectives. Once you know your objectives, you can define your step-by-step approach to the call itself. Think of the questions you should ask, the points you should make, and the objections you might encounter. Figure out how to leverage your relationship. Create a pre-text for calling. Craft your opening statement so it conveys a benefit to your customer or prospect. Rehearse if you need to.
Well planned call is a welcomed call. It wastes no one's time. It's clean, crisp and professional.
By Jim Domanski of Teleconcepts Consulting. Please visit Jim's web site at www.teleconceptsconsulting.com for additional articles and resources for tele-sales professionals.
Here's the good news for 2011:
Tele-sales as a selling application (and as a profession) is growing as field sales continues to decline. More and more B2B companies are jumping onto the tele-sales bandwagon because it is fast, less costly and because it appeals to a new generation of buyers who do not need the same level of face-to-face contact. What they need and want is instant information and the telephone (in conjunction with the internet, e-mail, webinars, tele-conferences, etc.) is poised to deliver it. So this means there is a huge opportunity for you to succeed in tele-selling.
But here's the bad news for 2011:
Because tele-sales is growing there's going to be a glut of competition in the marketplace. More of your competitors will be calling your customers and prospects. In fact, more of your non-competitors are going to be using the telephone to contact your customers and prospects. So this means you need to differentiate yourself; stand out from you competitors and non-competitors. You need to be better, smarter, and more valuable so you stick out from the clutter.
And here's the solution:
Create your own personal 'brand.' In other words, you need to distinguish yourself in the eyes of your clients. You need to be recognizable, memorable, and valuable. You want your clients to say, "I'll take that call" or "I'll return that message."
7 Personal Branding Strategies
Strategy #1: Become a Business Resource
To be a strong brand, it is not enough to simply be a source of information (source of brochures, promotional literature, products, prices, offers, services etc.), you've got to be a "resource." A resource is someone who supplies prospects and clients with 'extras' that go beyond pitching a product or service. A resource provides unsolicited Special Reports and White Papers to add value. Resources scan industry magazines and rip out articles that they share with clients. They provide links to web sites that can help the client work better, smarter and faster. They send independent newsletters and data that their competitors would never think of doing.
Becoming a resource means you have to do more homework and become the industry expert; the product guru; or the 'go-to' guy when clients have a question. Resources do more. Extra. They create value.
2. Build Stronger Personal Relationships
All things being equal, people will buy from people they know, like and trust. In fact, all things being relatively unequal, people will still buy from people they know, like and trust. How well do you know your clients? How well do they know you? What have you done to create likability and trust?
You see, that's the difference between a transaction and a relationship. Customers can transact business with any company/sales rep that is relatively decent and competent. But they would prefer to do business with people who not only add the value (See Strategy #1) but who are interesting, likeable and 'worthy' of the business.
Even in B2B situations, there is still an element of emotion in the buying process.
To brand yourself, you need to tap into this emotional stream. It is planned and purposeful. That means sending thank you cards every now then. It means remembering a birthday or that their son plays hockey or their daughter plays volleyball. It means sending a Memphis Dry Rub recipe to an avid BBQer; it means sending an article from Golf Digest on chipping; it means finding memorable quotes; it might mean sending a cartoon; it could mean gentle teasing about Notre Dame losing to Michigan.
Building a relationship could mean sending homemade cookies, chocolates, or candy. Maybe donuts. Anything that solidifies the personal side of the selling equation.
3. Plan and Prepare More
Look, with the glut of competitors calling the same target markets, your call NEEDS to be well planned and prepared if you expect your clients to listen and perceive value. What this means is having a well-defined primary objective supported by secondary objectives. Once you know your objectives, you can define your step-by-step approach to the call itself. Think of the questions you should ask, the points you should make, and the objections you might encounter. Figure out how to leverage your relationship. Create a pre-text for calling. Craft your opening statement so it conveys a benefit to your customer or prospect. Rehearse if you need to.
Well planned call is a welcomed call. It wastes no one's time. It's clean, crisp and professional.
By Jim Domanski of Teleconcepts Consulting. Please visit Jim's web site at www.teleconceptsconsulting.com for additional articles and resources for tele-sales professionals.
Wednesday, February 2, 2011
Acknowledge Your Accomplishments Along The Way
Motivational speaker Josh Hinds' newsletter never fails to perk me up and get me motivated again. This article is no exception!
Are you patting yourself on the back enough? Chances are if you're moving too hastily towards your intended goals you're not taking ample time to enjoy your accomplishments. And doing so has so many benefits that it's something we should definitely develop the habit of doing more of. But make no mistake, the decision to do so begins with you.
First off taking our due credit for a job well done helps to crystallize in our minds that we're making progress. This in and of itself is reason enough to "stop and smell the roses", as the saying goes. Not to mention that acknowledging how far we've come so far helps to recharge our internal batteries, which gives us the get up and go we'll need to make things happen in our lives!
Simply put, take pleasure in your efforts! Doing so helps to remind us that what we're doing is worth the effort. Here's hoping you're well on your way to your own definition of personal success.
Incidentally, if you haven't gotten clear on what "success" means to you, take a little time to define it. It's hard to hit a target when you don't really know what it is.
Josh Hinds is a speaker, trainer, and author on topics such as networking and personal branding. Check out his popular newsletter at www.GetMotivation.com.
Are you patting yourself on the back enough? Chances are if you're moving too hastily towards your intended goals you're not taking ample time to enjoy your accomplishments. And doing so has so many benefits that it's something we should definitely develop the habit of doing more of. But make no mistake, the decision to do so begins with you.
First off taking our due credit for a job well done helps to crystallize in our minds that we're making progress. This in and of itself is reason enough to "stop and smell the roses", as the saying goes. Not to mention that acknowledging how far we've come so far helps to recharge our internal batteries, which gives us the get up and go we'll need to make things happen in our lives!
Simply put, take pleasure in your efforts! Doing so helps to remind us that what we're doing is worth the effort. Here's hoping you're well on your way to your own definition of personal success.
Incidentally, if you haven't gotten clear on what "success" means to you, take a little time to define it. It's hard to hit a target when you don't really know what it is.
Josh Hinds is a speaker, trainer, and author on topics such as networking and personal branding. Check out his popular newsletter at www.GetMotivation.com.
Tuesday, February 1, 2011
Spending Time With Clients
Every month sales trainer Dave Kahle receives a variety of questions from his readers. He recently answered a question regarding how much time should be spent outside the office, and I thought his answer was informative and a good reminder to salespeople. Here's the question:
You've said on several occasions that the most important part of my job is interacting with the customers. How important is it to spend time with the customers out of the office, and what percentage of time should I spend doing it?
So many of these answers begin with the phrase "it depends." This is another one of them. The amount of time and money you spend entertaining customers, or spending time with them outside of the office, depends on the value of the account. The larger the annual dollar potential, the more time you should seek to spend with the customer on a personal level.
For example, if you sell water softeners to homeowners at $1,000 each, you probably should not ever invest in entertaining. On the other hand, if you sell those same water softeners to retailers, and one particular retailer could buy 2,000 of them in the course of the year, you should seek to deepen the relationship with that customer.
So, the answer begins with you analyzing the dollar potential of each of your accounts, and then making the determination as to which accounts, if any, are worth your extra investment of time and money. After you've compiled a "hit list" of people with whom you'd like to spend some additional time, create an annual budget. This can vary from a couple hundred dollars for lunches over the course of a year, to something entirely different. I recall a friend of mine who was a manufacturer's rep in the automotive industry, with General Motors as his only account. In the by-gone-days of lavish entertainment, he had an annual entertainment budget of $80,000.
After you have compiled your "hit list" and developed a budget, you then need to determine what that customer could do. Some accounts have policies against having lunch with vendors, for example. Others don't. Don't create an awkward situation by inviting your customer to do something that the company's policy discourages.
Ideally, I'd like to see you have breakfast or lunch every day with a customer. That's a good use of time for both of you. Try to schedule events – concerts or sporting events are always good, and invite your hit list. Be careful about outright gifts. You don't want to be seen as "bribing" anyone. Instead, orchestrate time together so that you nurture and expand the relationship.
Dave Kahle is the President of the DaCo Corporation, specializing in helping business-to-business companies increase sales and develop their people. Learn more at www.davekahle.com
You've said on several occasions that the most important part of my job is interacting with the customers. How important is it to spend time with the customers out of the office, and what percentage of time should I spend doing it?
So many of these answers begin with the phrase "it depends." This is another one of them. The amount of time and money you spend entertaining customers, or spending time with them outside of the office, depends on the value of the account. The larger the annual dollar potential, the more time you should seek to spend with the customer on a personal level.
For example, if you sell water softeners to homeowners at $1,000 each, you probably should not ever invest in entertaining. On the other hand, if you sell those same water softeners to retailers, and one particular retailer could buy 2,000 of them in the course of the year, you should seek to deepen the relationship with that customer.
So, the answer begins with you analyzing the dollar potential of each of your accounts, and then making the determination as to which accounts, if any, are worth your extra investment of time and money. After you've compiled a "hit list" of people with whom you'd like to spend some additional time, create an annual budget. This can vary from a couple hundred dollars for lunches over the course of a year, to something entirely different. I recall a friend of mine who was a manufacturer's rep in the automotive industry, with General Motors as his only account. In the by-gone-days of lavish entertainment, he had an annual entertainment budget of $80,000.
After you have compiled your "hit list" and developed a budget, you then need to determine what that customer could do. Some accounts have policies against having lunch with vendors, for example. Others don't. Don't create an awkward situation by inviting your customer to do something that the company's policy discourages.
Ideally, I'd like to see you have breakfast or lunch every day with a customer. That's a good use of time for both of you. Try to schedule events – concerts or sporting events are always good, and invite your hit list. Be careful about outright gifts. You don't want to be seen as "bribing" anyone. Instead, orchestrate time together so that you nurture and expand the relationship.
Dave Kahle is the President of the DaCo Corporation, specializing in helping business-to-business companies increase sales and develop their people. Learn more at www.davekahle.com
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