NZ Sales Manager Issue 46

NZ’s e-mag for sales leaders

DECEMBER 8TH 2010 / IssuE 46

The Dangers of Picking Low Hanging Fruit

Selling the Silly Season

The Fear of Public Speaking

in

Silence is Golden

http://www.nzsalesmanager.co.nz

DECEMBER 8TH / IssuE 46

THIs WEEK's MusT READ

sEllINg IN THE sIlly sEAsoN

7 tips for surviving the silly season.

THE fEAR of puBlIC spEAKINg

Three causes and what to do about it

TWo MINuTE Top-up

THE DANgERs of pICKINg loW

HANgINg fRuIT

Lessons learned from the

orchards of business

sAlEs TRAININg DIRECToRy

REsouRCE CoRNER

KEy ACCouNT MANAgEMENT:

Tools AND TECHNIquEs foR

ACHIEvINg pRofITABlE KEy

supplIER. 4TH EDITIoN

quICK fIx

It’s not what you sell,

it’s how you sell.

THE ClosE

8

6

8

12

15

16

17

18

6

12

CONTENTS

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CONTENTS

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NZsM / DECEMBER 8TH 2010 / 4

ABOuT /

short and sharp, New Zealand

sales Manager is a free e-magazine

delivering thought provoking and

enlightening articles, and industry

news and information to forward-

thinking sales managers, business

owners and sales professionals.

EDITOR / Paul Newsom

ART DIRECTOR / Jodi Olsson

GROuP EDITOR / Trudi Caffell

CONTENT ENQuIRIEs /

Phone Paul on 04 586 4733 or email

[email protected]

ADVERTIsING ENQuIRIEs /

Phone Alastair on 09 522 7257 or

email [email protected]

ADDREss / NZ sales Manager,

C/- Espire Media, PO Box 137162,

Parnell,

Auckland 1151, New Zealand

WEBsITE / www.nzsalesmanager.co.nz

As the curtains begin to draw on what has again been a

tough year for many industries, there is no doubt that

the top sales people up and down the country have

shone, and those that should never have been sales people

have moved on to other careers.

sales lacks recognition as a profession, yet it is vital to the success of any business. An exciting new event will remedy this lack of recognition next year. We can look forward to the NZ sales Awards and summit in April 2011. Look out for information about the awards and event early in the New Year.

We have reported this year on the development of the new NZQA recognised qualifications in sales. The ITO responsible for these, The Retail Institute, have recently received feedback from NZQA on the Level 3 and Level 4 unit standards that will be used to form the qualifications. The feedback has been very good, and The Retail Institute are on track to have the unit standards registered on the National Qualifications Framework in 2011.

The introduction of the qualifications will be a significant development for the sales profession, and I encourage you to keep up to date with developments next year. Thanks for all your comments, encouragement and feedback during the year. Please continue to let us know what you want to see in the magazine.

We’ll be back on 2nd February, so from us all at NZsM, we wish you a safe and Merry Christmas and a Happy New Year.

Happy selling!

Paul

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From the Editor

5 / DECEMBER 8TH 2010 / NZsM

MID STRENGTHFULL FLAVOURFULL LIFE

NZsM / DECEMBER 8TH 2010 / 6NZsM / DECEMBER 8TH 2010 / 6

T H I s W E E K ’ s M u s T R E A D

paul Newsom is the editor of NZ sales Manager and helps sales professionals and sales managers to compete and win in complex sales. you can visit paul’s website at www.salespartners.co.nz

7 tips for surviving the summer slowdown

By Paul Newsom

Selling in the Silly Season

The silly season is upon us. It is the time of year when customers stop making

decisions and hold off placing orders: either because it is the busiest time of

year (for example, the lead up to Christmas for retailers and summer for the

tourism industry) and it is all hands to the pump, or the holiday mode takes over and

tired buyers and business owners say ‘it is not worth starting anything new until next

year when everyone is back and refreshed’, or they say ‘the budget is spent for the

year, so we will wait until next year.’

Generalised statements yes, but the problem we have in New Zealand is that the

symptoms of the silly season are seen for far too long – from October through

to February. While Kiwis may like to go for most of the year

without taking a break then take all of January off,

this has to be a contributor to the productivity

issues of New Zealand.

Contrast this with Northern Hemisphere

countries. Industrial breaks for Christmas and New Year, and the summer holidays,

are generally a couple of weeks. There is certainly no lag of several months.

The ‘silly season’ will be presenting some sales people with a challenge. Having

9 months of activity during the year can make it tough to hit the target. Monthly

sales targets can drive the wrong behaviours particularly at this time of year. Indeed,


desperate sales people using questionable tactics while trying

to hit unrealistic targets is another symptom of the silly season.

so how can we feed the pipeline and keep sales

progressing during the silly season? Here are 7 things

you can do over the next couple of months:

Check your own mindset and belief

If you are thinking that no-one will buy from you over the

next two months, then that is what will probably happen.

Your activity will reflect this thought, and guess what – no-

one will buy from you.

Know your customers and your markets

some customers and markets will be actively buying now,

and some won’t. You must know which is which. When is

the end of the financial year and when do budget rounds

start and finish for your prospects? Those that have

budgets that end in December may have money to spend

before the end of the year.

summer season business will be in high consumption

right now. Focus on service and delivery and maximize

the opportunities of the season. Businesses that are out

of season will be preparing for the next season. They

may not be placing orders over the next two months, but

they will be planning and making decisions. Your activity

should be focused on building trusting relationships by

delivering value, rather than trying to force a sale over

the next month.

Fish in the ponds where the fish are most likely to be

feeding. Only by doing your homework will you know

where these ponds are, and what kind of bait to use.

start on small things

Find small things that will get projects started. There may be

some preparation work or auditing that is best done while

the customers business is relatively quiet. Maybe a small

scale pilot or trial on one machine, or with one department

will be best done at this time of year.

Look for opportunities where you can complement and

enhance the existing solution, rather than replace it. This may

be with one part of your solution. starting small will reduce

the risk of change for the customer at this time of year, allow

you to prove your capability and establish trust, and will

open the door for bigger opportunities in the future.

Help your customers with their planning

understand your customers goals and objectives for

next year, and help them with the planning. Rather than

focusing on when they are going to place an order, focus

the conversation on when they want to see results and

the impact/benefits of your product or solution in their

business. If it takes two months from placement of order

to implement the solution, then waiting until Feb next

year to begin will mean an April installation and 1/3 of

the year will have gone before the solution is in place

and providing value. An order placed now with some

flexible and mutually agreeable commercial terms may be

advantageous to you and the customer.

Maximise the sales opportunity

If there are fewer opportunities around at this time of

year, you need to make the most of them. Maximising the

sales opportunity should apply at any time of the year,

however if you know your customers and your customers

customers, you will be aware of what opportunities may

exist to maximise the sale. Asking high quality questions

will enable you to uncover these additional opportunities

that may not at first be apparent.

For a simple seasonal example, don’t just sell the bbq,

what are the opportunities for the cooking tools, cleaners,

gas cylinder, outdoor furniture…

Be Different

Be different with Christmas greetings and functions for

your customers. Don’t just go through the motions and

look like every other company and sales person out

there. You are making contact with your clients, so as

well as saying ‘thank you’ for recent business, use it as an

opportunity to progress sales and generate new leads.

What can you do to make a difference and provide some

value? Corporate Christmas cards just do not cut it! If you

send cards, enclose something in the card which gives the

customer reason to contact you in the New Year.

Work on yourself

If you have quiet time, use it for your own planning,

preparation and personal development. Most people

spend more time planning their holiday than they do

planning their life and goals. Invest some time on what

you want to achieve in 2011, how you will do this, and

who you need to ‘be’ to achieve this, and your success in

2011 may mean the holiday next summer will really need

some planning!


olivia Mitchell is an internationally-renowned presentation trainer and blogger. To find out more visit www.speakingaboutpresenting.com olivia provides presentation training in New Zealand through Effective speaking.

The Fear of Public Speaking

The potential client you’ve been chasing for months

wants you to make a pitch presentation to clinch

the sale. The thought makes your mouth go dry and

your stomach go queasy. You’re suffering from that most

common of fears – the fear of public speaking.

In this article, I’ll explore three distinct causes of fear of

public speaking and specific strategies you can use to

reduce your fear.

These three different causes of speaking anxiety relate

to three different areas of the brain – the Old Brain (it’s

called this in neuro’pop’ books but is more correctly called

the Hindbrain), Mid Brain and the New Brain (again more

correctly called the Forebrain).

My descriptions are a simplification of the science – in

particular, the parts of the brain all interact with each

other, so it’s not strictly correct to say that just one part

of the brain causes nervousness. But I think it’s a useful

model which may help you understand your fear of public

speaking and work out the best way to reduce it.

Three causes and what to do about it By Olivia Mitchell


If you can readily identify a previous experience which

is causing you to be nervous now, the most important

thing to do is rationally evaluate how bad it was. If you

continue to tell yourself that it was a terrible, awful

experience it will continue to create nervousness for

you into the future.

so rationally evaluate how awful it was. What were the

consequences of it? Here’s an exercise you can do now to

put these experiences in perspective.

Think of that nerve-wracking presentation experience. 1.

How awful was it on a scale of 0 to 100%? 2.

Imagine, your little finger has just been cut off in an 3.

accident!

How awful is that on a scale of 0 to 100%? 4.

And now how awful is that nerve-wracking experience 5.

compared to losing your little finger.

Most people revise the awfulness of their nerve-wracking

experience from somewhere near 100% to somewhere

near 0%. They would prefer to relive that nerve-wracking

presentation experience rather than lose their little finger.

The loss of the finger helps them to put it in perspective.

(If you’re happy to lose your little finger, imagine losing

your hand, or the finger or hand of a loved one – at some

point you’ll gain some perspective).

The rational reality is that most of the things that happen to us

in presentations are not that bad. They’re nothing compared

to the other things that can happen to us in life – like

relationship break-ups, loss of a loved one, and serious health

issues. The most serious consequences of a presentation

going badly are losing a large sale, an election or other

contest, or your job (though I’ve never heard of someone

losing their job because of one bad presentation). These

consequences are disappointing – but not catastrophic.

"If you can readily identify a previous experience which is causing you to be nervous now, the most important thing to do is rationally evaluate how bad it was."

1. old Brain nervousness

Your old brain is the part of your brain that is constantly

scanning the environment looking for threats. survival is

what matters to the old brain.

Many people suffer from ‘Old Brain’ nervousness. In

prehistoric times, being part of a group was essential to

our survival, so one of the threats to our survival was being

kicked out of the group. What might get you kicked out?

Maybe standing out in some way, saying something offensive

or stupid, or not performing up to expectations.

Fast forward to now. You’re standing in front of a group

ready to open your mouth and your old brain goes

(metaphorically): Oh-oh. This is a threatening situation. If

you say something stupid, YOu MIGHT DIE!

It’s no longer true that you might die, but your Old Brain

doesn’t know that. Your Old Brain activates your survival

system: fight, flight or freeze. When it comes to public

speaking the most common reactions are flight or freeze:

Flight - You avoid public speaking if at all possible. If you

do have to speak, you speak as fast as possible so that

you get through it as quickly as possible.

Freeze – You feel stiff and artificial as you speak, your

mind goes blank.

Here’s what you can do about this type of nervousness:

Accept nervousnessi.

This type of nervousness may happen every time

you speak. Accept that nervousness may be

your ever-present companion. If you fight your

nervousness by saying to yourself ‘I shouldn’t be

nervous’ you’ll make it worse.

get used to itii.

You may suffer from nervousness less as you gain

more experience presenting. That’s because your

old brain has gradually realized that this public

speaking thing is possibly not that life-threatening.

so desensitize yourself – take every opportunity to

speak in front of a group.

2. Mid Brain Nervousness

Our emotions are regulated by the Mid Brain. In

conjunction with other parts of your brain, your Mid Brain

will make you nervous when you’re reminded of a previous

nerve-wracking experience.

so if you had an experience at school where you were

humiliated in front of your classmates, or suffered an

embarrassing mindblank in an important presentation, those

strong emotional memories may come back to haunt you.

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3. New Brain nervousness

The New Brain is the

conscious thinking part

of your brain. Most of us

have patterns of thinking

that contribute to our

nervousness. You can

reduce your nervousness

by exploring your patterns

of thinking. One of the

most common patterns of

thinking that contribute to

the fear of public speaking

are demands.

Here’s an example of

how they operate. A few weeks ago I was running a

training course. I knew that the CEO would be one of the

participants. I felt myself get a little nervous as we were

setting up. When he walked into the room I got hot and

my heart started racing. Why would I react in this way? I

have a demand around CEOs. It goes something like this:

CEOs are really important and I must have their

approval.

My demanding thought made me nervous. What was

the result? I messed up the instructions for a simple

exercise that we do at the beginning of every course

and that I’ve done perfectly hundreds of times before!

Here are some common demands people have about

presenting and public speaking:

I must be interesting and engaging•

I mustn’t leave anything out•

I mustn’t waffle•

I mustn’t show I’m nervous•

I’ve got to be able to answer every question•

These demands make you nervous because you can’t

guarantee that the demand will be met. To reduce their

power, rationally analyze the truth and usefulness of these

demands. For example, with my CEO demand I can see

that it’s not essential that a CEO approve of me.

I don’t demand that everybody approves of me – and it’s

irrational to demand that a CEO must approve of me. I

can also see that it’s not useful to have this demand as it

made me mess up!

Fear of public speaking can be debilitating, and can have

you avoid opportunities in your life. I hope this article has

been useful to you in thinking through how you can best

reduce your nervousness.

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The Dangers of Picking Low Hanging Fruit

lessons learned from the orchards of businessBy Jill Konrath

Jill Konrath, author of selling to Big Companies and snap selling, helps sellers crack into corporate accounts, shorten sales cycles and win big contracts. Visit Jills’ website at www.sellingtoBigCompanies.com

I remember the first time it happened. It was on a

Thursday, about 4 pm, and I was worn-out after a day

of cold calling. I hadn't uncovered even one viable

prospect. Enough was enough! Time to go back to the

office and do some paperwork.

When the phone rang, I answered it tiredly. But by the

time I hung up I was a new person. I had just talked to one

hot prospect. Her company was BuYING! Not just looking

- BuYING! They needed several new systems to handle

their growth. And they wanted to make a decision quickly.

"Can we come in for a demonstration," she asked.

T W O M I N u T E T O P u P

of


How could I refuse! They came in the following Monday

and we spent about two hours together. We discussed

their needs and I showed them several possible options.

Things seemed to go really well. In parting, they asked me

to call back early the next week.

Tuesday morning I left a message. Wednesday and Friday

too. My calls were never returned. It wasn't till a week

later that I finally got my prospect on the phone. she

thanked me for my hard work, fast service and excellent

demonstration. Then, very apologetically, she told me

they'd selected another vendor.

I asked "Why," but her answer was evasive and focused

on minor details. Of course, price was thrown in too - as it

always is when you lose.

I'm embarrassed to tell you that this happened to

me more than once. And sometimes I invested an

inordinate amount of time and effort in those so-called

"hot prospects." I coordinated elaborate meetings and

prepared detailed proposals. I even rearranged meetings

with prospective customers who weren't quite ready to

move ahead. Can you guess what happened? That's right.

I almost always lost the business.

Lest you think I'm not too smart, it didn't take me too

long to figure out something was wrong. My proposals,

presentations and demos were fundamentally sound, so

it had to be something else. But what … When I talked to

the more seasoned sellers, I was cautioned on wasting my

time with 'low-hanging fruit" - in other words, companies

who are ripe to buy.

They told me that many of these prospects already

have made their decision, but are checking the market

for two reasons:

To prove to higher-ups they did a thorough 1.

investigation, or

To leverage competitive offers to reduce their 2.

preferred vendor's pricing.

Yikes! That explained a lot of things. Naively, I had

assumed that I had a fair shot at every deal.

Learning how to ferret out those opportunities where it

was worthwhile to pursue low-hanging fruit was hard. I

had to be much more straightforward than I was used to

being and ask questions that made me uncomfortable.

But by doing this, I saved myself lots of hard work. And, I

had more time to spend on prospects where I could win.

It's not only individuals who are seduced by low-hanging

fruit. sometimes whole companies are sucked into these

'get-rich-quick' schemes.

several years ago one of my clients introduced a new

product targeted at a highly profitable niche owned by

their competitor. They were late to this market and, in

essence, their product was a higher-priced copycat with

enhanced capabilities.

In the months preceding the launch, sales reps continually

fed marketing stories about all the money being left on

the table because the new product wasn't ready. They told

marketing about all the prospects who called wanting to

know when their new system would be available. Everyone

was drooling. so many buyers, so little time.

Their entire launch plan focused on the low-hanging

fruit. sales reps, armed with proposal templates and

PowerPoint presentations highlighting competitive

strengths, were chartered to go after companies on their

"Hot Prospects List."

Hard as I tried, I couldn't convince them of the folly of this

decision. The seduction was complete.

so what happened? In the six months immediately after

the launch, very few systems were sold. Their only orders

came from existing customers where reps had strong,

long-term relationships with key decision makers. Within

two years the company quietly exited this market niche

because it was too costly to penetrate.

The lure of low-hanging fruit never completely goes away.

The chance to make easy money is just too seductive.

I still have to caution myself when I encounter these

opportunities. The worst thing about them is the wasted

time that could have spent with prospects where my

chances of winning were much higher.


lessons learned

In most cases, you can't get into a sales process late 1.

and expect to win. If your competitor already has

a strong relationship with the customer, they're in

the driver's seat. They've likely already established

decision criteria that only their company can meet.

Be willing to ask tough questions. If your new 2.

prospect is ready to buy, make sure you ask them:

Who else are you looking at? •

Has your company done business with these •

companies before?

Why would you consider switching?•

If your prospects express strong dissatisfaction with a

competitor, you might have a real opportunity. But if

they're just looking around, be wary of investing too

much of your time and company's resources trying to

get the business.

Your best prospects will be those companies where 3.

you already have an established relationship OR

where you get in early, before customers are making

a decision. In the latter case, by uncovering and

developing account needs, you'll build the strong

relationship you need to win the order when they're

ready to make a change.

Your best prospects will be those companies where you already have

an established relationship OR where you get in early, before customers

are making a decision. In the latter case, by uncovering and developing

account needs, you'll build the strong relationship you need to win the order

when they're ready to make a change

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Q u I C K F I X

sIlENCE Is golDEN.

sales people can have a tendency to over communicate.

They fill the conversation gaps with excess drivel. saying

too much can dilute the main point you are trying to

communicate and confuse the listener.

Mark Twain is quoted as saying, ‘The right word may be

effective but no word was ever as effective as a rightly

timed pause’.

You don’t have to keep talking while the listener is

thinking. shut up for a moment, and let the silence

convey the message.

It's not what you sell, it's how you sell

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Key Account Management: Tools and Techniques for Achieving profitable Key supplier. 4th Edition

Personalised booklet calendars for your business.250 New Zealand Scenic Booklet Calendars

Normally $6.00 each

Special Price $3. 20 each + GSTIncludes your company details printed in black ink.

To order phone: Tony 09 625 3373your details here

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“An investment in knowledge pays the best

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Documents

NZ Sales Manager Issue 46