Phone calls were the heartbeat of a company

Until 5 years ago when visiting a company while waiting at the reception, you could see and hear the receptionist handling the incoming calls.
When walking the corridors of the office building you could hear people having a conversation on the telephone. Especially in the sales department having lively conversations.
Phone calls were like the heartbeat of any company as one could measure the success of a company by the number of ringing telephones and the noise of people talking into their telephones.

Endless email replies

Nowadays people seem to have given up on making calls for business reasons.
Calling uninvited someone on his direct line is being perceived even more intrusive than spam emails. Calling disturbs more than just an email as the immediacy and apparent urgency of a phone call stops all operations and functioning of a person, whereas an email causes no interruption at the moment of reception.

Instead of calling businessmen is sending and replying emails:
- For internal matters or ongoing sales processes: no more lively discussions but endless exchanges and replies of email.
- For sales pitches: the door openers are often done by email or even the vendors’ website
- For new customers: they inquiry using emails too.

The sound of keyboard typing is no measure for success

Instead of ringing phones and the noise of telephone conversations, the sound of keyboard typing rules which is a lesser indication of the success of a company as sales, marketing, engineering, support and administration all type on keyboards.

Apparently the only business calls received are from:
- People we have ongoing business
- Call operators trying to have a sales pitch or set an appointment for a sales meeting.
Due to this when we receive an unattended phone call we tend to expect a sales pitch.

Could it be that most outgoing calls have become personal for planning the spare-time or for family affairs?

How much do you still call ?

The birth of sales training

Sales booth camps were successfully introduced by John Henry Patterson of NCR (National Cash Register) in order to train his sales force on the 16-page NCR handbook written by Joseph H. Crane – his brother-in-law. The goal was to memorize the 450-word primer.
By gathering the entire sales force in one booth camp and completely disconnected from the outside world their focus was on the matters and topics of the sales booth camp: the birth of sales training.
At the same time team building was achieved.

The evolution of sales booth camps

During 120 years the concept of sales booth camps has survived two world wars and tremendous changes in industry and business: industrialization, automation, mass production, global distribution, …
The format and presentation methods of sales booth camps have changed over time: salesmen no longer sleep in tents, books have been replaced by emailed pdf documents, …

The decline of sales booth camps

Until a few years ago information and communication technology was mainly limited to the premises of the company or at home as a fixed line was needed for data exchange.
As the wireless Internet has become omnipresent and almost the entire sales force is online all of the time, the question arises if sales booth camps are still effective?
Will salesmen still pay attention during sales booth camps when they have their smart phone at hand and are continuously connected with the outside world? Instead of keeping their attention to the sales training, they can be in constant contact with their prospects and customers. Getting new leads and closing deals are more interesting than the actual sales training.
The salesmen have less focus on the topics presented as they keep doing their business from their smart phone by email or make calls in order to keep their business going during breaks. They have all the necessary information available on their smart phone: the CRM system, contact lists, price lists, price quotations, order follow-up, delivery schedules.
- Deals mean commission now or soon
- Sales training is maybe commission later.

Of course management could prohibit the use of mobile internet and smart phones during the sales booth camp. On the other hand management requires the salesmen to perform and bring in sales, thus prohibiting smart phones will decrease the sales achievements. In most cases and companies the current quarterly sales is more important than future sales.

New sales training methods are required

The goals of sales booth camps are no longer achieved due to the available communication technology which attires the attention of the salesmen for business throughout the sales training.
Sales booth camps are no longer as effective as they used to be.
New sales training methods are required – probably using the Internet as salesmen could be trained when they are wasting their time like waiting at airports, during commuting and travel using their smart phones.

Merging the mediocre

The joint venture of 2 small or unsuccessful companies won’t emerge as a big or successful company.
The combination of 2 average solutions won’t create a great solution.
The combined offering of 2 partners with poor or me-too solutions will not become a top selling leading offering overnight.
The merger of 2 unmotivated under performing sales or marketing departments of one company will not create a great sales team or marketing department.
In most cases both parties involved just hope it will be better by adding functions, features and benefits while forgetting market research and testing the value proposition in the market.

Unlikely creation of greatness

More is required to turn two turkeys into an eagle as the value proposition of the product or the combined service has to be outstanding. All to often when two mediocre value propositions are combined, the combined offering is still mediocre.

How could two turkeys offer a better price/value, price/quality or exceed competition by just combining their existing products or services?
In order to achieve greatness their innovation needs to exceed, which each of the parties involved haven’t achieved on their own. So how could they ever achieve this when already the merger will consume time (discussions, culture differences) and capacities (people, money and goods). Creation of greatness is unlikely to happen any time soon.

Market research for suiting solution

Instead of hoping to excel after a merger or combination of products or services, start market research with analyzing the market for what are their needs, requirements and then innovate, develop a suiting solution.

The idea behind OEM is that:
- A producer or developer of a solution can reach an unreachable sales geography or market
- A vendor can quickly supply the market with a new product or complete his offering

In reality things are a bit different.
For the vendor:
If there is really a need or demand then developing the solution would be a better option as:
- The supplier can get acquired by a larger competitor who will stop the contract immediately.
- The supplier can move into the geography after the vendor has established enough customers to prove there is a market.
- By putting the own logo on the product the liability shifts

For the producer:
Relying on a third party to sell your products under OEM:
- How to be sure sufficient marketing and sales effort are being done by them?
- Can it be the OEM is just to complete the offering but not to sell it actually?
- The buyer can easily change suppliers
- In case of acquisition the OEM contracts can be a hurdle for the acquirer

Setting-up or growing your business as an OEM is not an easy business.

Did you ever sold OEM products ?
Encountered any problems

Business cards and dumb CRM data entry

In business, Sales and Marketing we gather many business cards but we do little with them once received. In the best case after a trade show we send them an email. However in most cases the business card doesn’t become an asset for your company.

Still most companies require you to enter these business cards into the CRM system in order not to lose these contacts acquired on behalf of the company at its’ expenses.
However we all find entering contacts into a CRM a waste of time. We in sales or marketing have something better to do than data entry.
Moreover keeping our contacts to ourselves is a form of job protection.
The more management urges us to enter business cards and contacts into the CRM, the less we will do it. This is probably a natural reaction and protection for survival.
What’s the benefit of entering the email address of a potential customer as he will be spammed during the next email marketing campaign?
We prefer to communicate with him solely when appropriate.

Organizing business card contacts by email

In order to keep track of contacts, the better salesmen send an email to each of them as soon as possible after receiving the business card. This allows them staying in contact with them by sending an appropriate message.
On a next occasion they are able to retrieve the contact by using the search function of their email client.

Organizing automatically with DropBox email

This method can be taken one step further using a drop-box email address of an external system.

Some web service CRM solutions provide a drop-box email address that you use in the ‘BCC:’ when sending an email to your new contact. Automatically the CRM will create a new record for the company and insert the contact linked to the company.
Even the email will get filed in the company folder of the CRM for easy retrieval and knowing the contact history.

The benefits:
- Being organized without effort
- No waste of time for creating the company
- No waste of time for entering the contact detail
- Just sending an email to keep contact
- Contacts are stored by company
- The email details are saved by company
- Easy retrieval of contacts and emails by company

Lacking:
- Only the email details are captured
- Still requiring you to complete the contact information: the address, contact name, title and telephone number.

The biggest benefit is that you organize easily your contacts without the need for dumb data entry.
The salesman loses his protection, but in the end both the salesman and the company will benefit from this simple DropBox system by getting organized without the requirement entering contact data in a CRM.

Do you take the effort to organize your business cards ?

The good intention meetings

On trade shows, conventions we have all kinds of positive meetings with possible partners and solution providers about reselling and integration.
Although the meetings are positive and we end the meetings with big or good plans and intentions, and even with actions, three or four months later almost nothing has been realized.
- We have send an email that got replied appropriately.
- We might even have signed an NDA.
However the result in the end in zero in most cases.

Not so good businessmen on trade shows or conferences

- Why do we make all these promises on trade shows and conferences ?
- Why do we waste so much time during these meetings ?
- Why are we seemingly living in a different world far from reality on a conference ?
- Why can’t we be honest a tell already during the meeting there is no interest ?
- Why do we fool ourselves each time ?
- Why do we think the other party will make all the efforts and bring in the sales ?

Is it for ego or status ?
Or just to be busy at trade shows and conventions ?

In most cases we are not good businessmen during trade shows and conventions as we invest time and effort into meetings about projects that probably never will be realized.

How many worthless meetings have you been into on trade shows and conferences ?

As sales you need to put yourself in the shoes of your potential customer in order to understand his thinking and reasoning.

Business need – problem

A prospect has a problem to be solved or a need to be fulfilled.
A problem doesn’t need to be a technical problem but can also be the problem of a lower cost or the need of obtaining a higher service level.

As salesman your first risk is to access the problem or need by very accurately taken into account all possible parameters, influencing facts and people.
Then you need to present the suiting solution at the right moment.

Business and personal risk

Any buying decision involves risk for both the company as well as the decision maker and even the influencer.
A bad decision can lead to an operating loss for the company and in a severe case can lead to career change for the decision taker.

What level of risk is the potential customer or decision taker willing to take ?
He needs to do a risk assessment of the supplier, the product or solution and the salesman.
Any indication of increased risk compared to your competitors can mean you are not getting the deal. This can originate from simple events like not answering the telephone quickly, handing over less nice documentation to presenting a not matching solution at first.
Also the decision of his peers will influence his subjective measurement of risk.

Balancing risk with trust

On the other hand what level of trust can your company as a supplier or vendor offer and how trustworthy are you and your sales engineer?

The decision maker needs to balance the company and his personal risk with the trust framework consisting of:
- your trustworthiness
- the trust the vendor brings
- the trust in the solution
- the trust in the decisions of his peers
How he does this balancing is often subjective and personal.

This balancing of risk and trust is why selling in B2B is a complex sale as many factors will influence the purchase decision.

How trustworthy are you and your company ?

1. Size of the market:
The size of the market is clearly a differentiator as in B2C the number of potential customers is ranging from hundred thousands to millions, whereas in B2B a company can survive on just a few customers to a few hundred customers.

2. Dollar value:
In B2C the dollar value of the customer is in most cases significantly lower than in B2B.

3. Sales process:
B2B has a complex sales process supported by several employees, whereas in B2C the salesman can be replaced by an online ordering system.

4. Cost of sales:
In B2B the cost of a sale is much higher than in B2C.

5. Sale value:
The value of a sale in B2B is much higher than in B2C

6. Churn:
In B2C the churn is high compared to the relatively low number of customers that change supplier in B2B.

7. Repeat and standing orders:
In B2C nearly every sale includes a decision.
In B2B repeat and standing orders are common but the first purchase order can take ages.

8. Decision makers:
In B2C the decision maker is in most cases limited to one person – exceptionally 2 or 3 members of a family get involved, whereas in B2B you will hardly find a sole decision maker.

9. Statistic approaches:
Thanks to the large numbers in B2C generic patterns or trends can be defined using statistical approaches. In B2B the customers are numbered and no statistics can be applied.

10. Data quality:
In B2C most people don’t change their status often (married or divorced) or locations (house).
In B2B people do change job (rather often) as they get promoted or change company.
Thus the information from business cards or data bases can become obsolete quickly.

11. Lead generation:
Lead generation and nurturing is typically for B2B, whereas in B2C marketing campaigns are for direct sale.

12. Contracts:
In B2C people just buy and hardly negotiate.
In B2B nearly every sale requires signing of a contract or at least a purchase order after a long pricing negotiation.

13. Social media marketing:
Social media marketing is probably feasible for most B2C products and services as the number of people is high and many can feel engaged.
In B2B social media marketing is likely to be no effective at all.

14. Website
In both market the website plays an important role. Still the approach will be different.
In B2C techniques for presenting relevant content on the website will be used for instant influence and buying stimulus, whereas in B2B it is important to identify the visitor by company and to have lead intelligence systems in place to send relevant personalized content by email for nurturing.

Both B2C and B2B markets require different approaches for marketing and sales: other tools and methods. Letting sales methods and marketing systems cross over from B2C to B2B or vice-versa is likely not to be successful.

A checklist for your business in order to get a better view of your approach to potential customers:

1. Increase revenues
Will your service increase revenues?
- Increase in revenue is what CxO’s interest the most
If possible sell on revenue increase.

2. Cost cutting
Is your service cutting expenses for the target audience?
- Cost cutting is second to increase in revenue.
If not on revenue then sell on cost cutting.

3. Differentiator
Is your service or product filling a compelling need not well addressed by competitors?
- With a differentiator you have an interesting message and no need to sell on price.
If you have a differentiator, even a minimal one, you need to explain and sell it.

4. Market leading
Is your service or product market leading or lagging?
- Leading creates interest whereas lagging requires discounts.
If your are a leading the market you need to stay ahead as changing over to a laggard will not be appreciated.

5. Target audience
Are you targeting the right audience in a company?
- Knowing who benefits the most of your solution or who has the budget to pay for your solution helps you to find your audience.
If you know the target audience focus on them and don’t waste time with others.

6. Recurring revenue
Is your service recurring revenue or one time only?
- With recurring revenue you build up a portfolio of contracts that secures your future
If you don’t have recurring revenue then try to sell a minor part as recurring – like maintenance.

7. Sales cycle length
What is the length of your sales cycle?
- The shorter the sales cycle the easier to loose your customer to a competitor for the next deal
- The longer your sales cycle the harder it is when you miss a deal at the end.
If you have a short sales cycle you have to have many deals in your sales funnel.
If you have a long sales cycle only a few deals will be in your sales funnel.

8. Selling on Fear
Is fear the driving force for selling your service or products?
- Comparing the calculated or estimated expense of the risk with the cost of your service or product
If people can’t calculated the cost involved with the risk then you need to calculate it for them.

9. Selling on Compliance
Are regulations or compliance the reasons for your business?
- Regulations and compliance are not a business need.
If you can bring added value for the company besides compliance then you can charge more than the minimum price of your competitors.

10. Benefits or features
Are you selling on tangible or intangible benefits or functions and features?
- Functions and features are accountable, benefits are less accountable.
If you sell on functions and features be aware that the nerds and the influencers of the company will know competitors with even more functions and features.

11. Sales pitch
Can you have your sales pitch in 140 characters or 30 seconds?
- Short sales pitches are likely easier understood as people keep attention.
If your sales pitch is longer than most people their attention span you will have a hard time selling.

12. CxO versus Mid-management
Can mid-management decide to purchase your service or product?
- Limiting decisions to mid-management has all it’s advantages – not only shorter sales cycles.
If CxO’s need to get involved due to the high budget your sales cycle becomes more complex, longer and prone to other non-business influences and intangible benefits.

Whatever business-to-business you are in you will encounter most of these challenges, opportunities and hurdles.

What’s your business in B2B?

Sales people should focus on the revenue. They shouldn’t focus on the bottom line. Focusing on the top line is already enough of a challenge which is really hard to achieve.

The salesman who focuses on the top and bottom line is called a CEO. If you are in sales you are not the CEO: so stick to your business.

Salesmen sell to customers for getting money in return of products or services.
The CEO needs to sell to investors for getting or staying funded.

The CEO sells to VC’s, investors, bankers and shareholders to keep the invested money or to get more money invested in the company for executing the future plans of the company.
It is a different kind of selling all together as it is much broader than just the products or the services of a company. The CEO has to take the entire economy into account.

Just like salesmen are supported by pre-sales and sales engineers, the CEO is supported by his CFO for the details of the numbers. The CEO needs to sell a vision and a strategy in order to explain how to move forward with the company.

Problems can emerge when the CEO starts selling to potential customers as it is likely he will start using his vision and strategy for selling products or services. That might be very interesting but is unlikely to match the current needs, demands and interests of the prospects.
Only in case the customer requires having the vision and the strategy of the CEO explained then the CEO can do his pitch. Such a requirement is, besides a few exceptions, only with existing customers.

It even can get worse: when during the meeting with the potential customer, the CEO feels he is not closing the deal and wants to score. His only option to win the deal is to give a big discount and he has the power to do so.
This is exactly what the salesman didn’t want to happen: selling on price – resulting in a lower commission.

In most cases it is better to keep the CEO away from prospects and customers due to his different pitch to a different audience.

What’s your experience with your CEO selling to customers ?