by Bill Poole | Feb 19, 2019 | Sales
In the office technology industry I serve, we talk about Machines-in-Field (MIF). Every 3-5 years the leases on these machines expire or the machine wears out. Sales reps “flip the MIF” when they upgrade customers to new equipment.
MIF-flipping plays a critical role. After all, we need to maintain our customer base. However, we also work in a mature market. That means that average selling prices are dropping faster than cost of goods. Each year the delta between sales price and cost gets squeezed a little tighter.
What does that mean?
Companies and sales reps that have historically depended on MIF-flipping will suffer a slow and painful decline.
Some businesses are counteracting the revenue decline by purchasing more MIF to flip. The top line revenue of these businesses look good, but ultimately, these businesses will also feel the pain. (more…)
by Bill Poole | Feb 6, 2019 | Sales
“All the storytelling we do requires frequency. You’ll try something new, issue a statement, explore a new market… and when it doesn’t work right away, the instinct is to walk away and try something else. But frequency teaches us that there is a very real dip–a gap between when we get bored and people (our clients, prospects, and employees) get the message.”
– Seth Godin, This Is Marketing
As business owners and sales professionals, we tend to give up too soon. (more…)
by Bill Poole | Jan 29, 2019 | Sales
Every (smart) business and sales professional wants to sell more to their current clients.
In my favorite marketing book, Getting Everything You Can From All You’ve Got, Jay Abraham shares the geometric principle of business growth. He says there are only three ways to grow a business.
- Get more customers
- Sell more things to current customers
- Increase the frequency of purchase
The problem is that most businesses only focus on #1. When it comes to #2 and #3, cross selling to current clients usually gets lip service, a page buried on the website, and maybe a specialist. Unfortunately, that’s where the gold lies.
If you only do #1, focusing all your effort on new logos, your business will grow linearly. From a sales perspective, 15% growth requires 15% more new customers. It’s important work and hard work, but 15% growth won’t get anyone too excited — especially if you had to discount products to convince new customers to buy into your business.
The profitable and dramatic growth happens inside your current customer base by cross-selling additional products and services. This is especially true in mature industries where profit margins on the core offering are dropping. In this scenario, the question we should be asking is, “How can I sell more things to current clients where I have a trusted relationship?” (more…)
by Bill Poole | Jan 22, 2019 | Marketing, Sales
Both sales professionals and companies have brands. In our world of overwhelming options and distractions, a brand becomes shorthand to communicate things like:
- You’re in the right place
- You can trust me
In his book, This Is Marketing, Seth Godin says that as consumers, “We scan instead of study.”
We area all busy. We are bombarded with messages. So, our mind filters things out and quickly categorizes them. When we see a person or a company our mind immediately asks, “What does this remind me of?” (more…)
by Bill Poole | Jan 15, 2019 | Sales
How consistent is your sales team at bringing in net-new business? Without a consistent stream of opportunities entering the top of the funnel, the end-of-month results will be disappointing. Instead of net-new, the revenue will be primarily be from flipping the MIF.
A process is a series of steps for a repeated outcome. Processes bring predictability, efficiency, and consistency to net-new business.
Every business has processes:
- Service processes like service call entry and ticket management ensure happy customers.
- Financial processes like order fulfillment and collections ensure a controlled financial environment.
- HR processes like on-boarding and benefits administration ensure compliance and happy employees.
While businesses have all kinds of critical processes, when it comes to generating net-new sales, it’s often hard to find documented processes in place.
Without processes in place, business becomes chaos. (more…)
by Bill Poole | Dec 20, 2018 | Sales
As the manager of a sales team what is the biggest thing you can do to drive success? The answer may be to build a culture of success. Why? You can only be physically present with the members of your team for a small amount of time. The culture you create is always present.
Create a great culture is like a farmer nurturing the soil for a successful crop. Without proper cultivation, fertilizer, and watering, plants will struggle to grow. Create good soil and plants will thrive.
“Culture isn’t just one aspect of the game, it is the game.”
– Louis V. Gerstner, Jr., Former CEO of IBM
Here are a few thoughts on enhancing your sales culture: (more…)
