Dave Stelzl's Blog

Chasing Sales People…Away.

Dave Stelzl's Blog — Thu, 09 Feb 2012 20:20:56 +0000

Good Sales People Won’t Stand On Unemployment Lines

Talking with my son the other day (he’s sixteen right now), I was telling him, “Regardless of what you do in life, learn how to sell”. Unemployment numbers are high in the US, yet all of my clients are looking for sales people! So there are jobs, but not jobs for just anyone….there is always a job for an excellent sales person.

Here’s the problem…

If you have great sales people, make sure they are happy! Here’s a trend I run across frequently, and today is no exception. I was talking with a top sales person for a large high-tech company this morning (one everyone who know the name of). His sales last year were great – many of the reps I see on a daily basis would give a lot for the accounts this guy calls on, and would be living well if they closed the business he closed last year. But 2011 is over, and 2012 is on us – so as you might have guessed, his quota is higher.

Raising quota is normal, so neither one of us are surprised. The problem is, his management feels like they should double his quota, not because it’s low (and in fact it is far from low), but because he did well. He shared with me, that the remaining money to be collected on just one of his Q4 deals would have bought a small house in 2011, but with the new comp structure, he can buy a half-decent used car with his Q1 collections. What’s happening here?

A sales team has big hitters, those with potential, and a handful (which might be big or small) of non-performers. Sales managers have a hard time letting people go, so instead of promoting large commissions for big winners, they tend to spread the wealth by propping up low performers. By propping up, I mean setting ridiculously low quotas for one rep, while imposing astronomic quotas on their high-performance colleague. Helping one person to make enough to live on even if they produce almost nothing, while controlling another’s income because if “just seems to high”.

Why This Never Makes Sense

When this happens, and it happens all the time, the bad performers stay, while the superstars look for new jobs. For some reason, many sales managers are making choices to have a large sales team of mediocre performers, rather than a smaller team of big hitters. Big hitters will always outsell the mediocre team – while costing the company far less to maintain – why would they do this. I believe it’s fear. It’s hard to fire people, especially when they are great people (great to spend time with on social occasions), with a forecast that always seems to sound good. Everything is at 50% and is supposed to close next month…but every month, that same list rolls over to the next month.

The Goal Should be…

The goal of the sale team is to sell. When managers choose to meddle with comp plans rather than replacing low performance sales people, they are making a trade. It seems easier to change the comp plan, rather than sending someone out on the street in a bad economy. But the trade off is this…sales managers can either fire the low performers, or the good people will leave. You can’t have it both ways – you just can’t afford to keep everyone happy.

Event Marketing Webinar Follow Up

Dave Stelzl's Blog — Tue, 07 Feb 2012 21:01:39 +0000

This afternoon I had the opportunity to present Event Marketing tips to a large group on Webex. This is such an important topic, it needs more time. For those who missed it, and perhaps a refresher for those who attended:

1. Getting the right people is both the most important part, and the most difficult part. But, contrary to what most sales people believe, it is not impossible, and not even as hard as you might think. It just takes some strategy and time. While most people don’t really like call scripts, a well rehearsed script can do wonders. Some have accused me of making this into a robot sounding message, but far from it…you would never accuse Russel Crow or Brad Pitt of reading from a script, but they do it all the time. It’s just that they have practiced to the point of sounding natural. The fact is, if they just did their own thing, the movies they are in would fail. They use a script, but add their own personality to it. Once practiced, this is not hard to do.

2. Mistakes are common. I reviewed several serious mistakes even the most sophisticated companies make. Why do they make them? Simply because no one is really studying and optimizing this process. One simple mistake is not gaining commitment there in the meeting. A follow up program that starts an hour after the event will take a 75% response down to a 5% response and you’ll never really know what happened. You don’t want this to be salesy – but that doesn’t mean you don’t sell anything. I heard one woman refer to this as the Invisible Close. By educating attendees, and providing a place for them to get more of what you are talking about, you help them get what they need. This can be done professionally without sounding like an encyclopedia sales person. Much more of this is addressed in my audio series – Important topics from Vendor to Adviser…in fact there are 5 hours of critical concepts in this series.

3. Conversion is key. If you aren’t focused on conversion rate, there is no reason to do this event. There are customer appreciation dinners, but you don’t really need to spend this kind of time and money on IT level customers…there are a handful of customers that deserve this type of treatment, but not many. Instead, measure your conversion, and work on building the percentages. Focus on getting the right people, and test your messaging, repeating the same kind of program over and over. Make minor changes – and there are millions of secrets I have discovered, including reducing attrition, getting higher level audiences, using better topics, etc, that draw the right people and increase the rate of conversion. This is a science, not a hope…don’t be fooled into doing the event for as little as possible. Make a wise investment and get a strong return. That is good business.

Customer Experience – the New United Airlines

Dave Stelzl's Blog — Fri, 03 Feb 2012 19:17:38 +0000

Coming from Charlotte, it’s rare that I fly anything other than USAirways (the only airline based here), but this week I had a chance to experience the new Continental/United airlines. Several things impressed me….and one disappointment.

First, the disappointment. Any airline that flies commuter jets on a three hour leg, really should consider changing the seats. Something about these older commuter airlines – I’m not sure who designs these seats, but there ought to be a requirement that the airline try them before buying them.

Now for the upside…United Airlines

They actually served a complementary hot meal!
More leg room, even in the cheap seats.
Having the Gold Star/Elite line (nothing new here) is better than the the USAirways line where everyone crowds into the same line regardless of their zone.
Flight attendants were helpful and friendly.
In flight entertainment – USAirways ripped all of their stuff out! (There is a charge for this, but at least it’s there)
A promise from their CEO to upgrade the seats.

I think companies under estimate the customer experience, especially those companies in the transportation business. When was the last time a train attendant made you feel welcome or treated you like they were honored to have your business. Buses, airlines, etc. This is simply a culture these companies have built – they have allowed the people working these customer facing jobs to see this as, just a job, and not an event. When you pay several hundred dollars for something that lasts a couple of hours, it should be a great experience! I should want the trip to last longer, and look forward to the next one. Why not?

Guatemala: Day 3 Returning Home

Dave Stelzl's Blog — Thu, 02 Feb 2012 21:14:21 +0000

I returned home last night from Guatemala – unfortunately it was too cloudy to get a shot of the volcanoes while taking off, but here is a hot of the city housing and a view of the GUA airport in Guatemala City. Next time I will plan to bring my SLR camera and plan time to take some real pictures. Big mistake not coming prepared to see this scenic country!

Guatemala City: Day 2

Dave Stelzl's Blog — Wed, 01 Feb 2012 15:23:24 +0000

Tuesday was full day, kicking off the morning with several sessions on selling security including, discovering new opportunities, learning to effectively use sound bites, and a review of the security briefing material I have been using at executive facing lunch and dinner meetings. Our sessions were held high in the mountains in a house my client has turned into their company conference center (Pictured on the left).

After a hearty lunch of steak and potatoes we continued working through the House & the Cloud model, discovering the secrets behind effective messaging and marketing approaches. In every country I visit, it is important to understand some of the cultural barriers in marketing and selling – for instance, in Guatemala, there really is no middle class. The barriers between the lower and upper classes make interfacing with higher level executives more difficult than some countries such as the US.

This same barrier may exist in any country when dealing with very large corporations where high-level executives refuse to see the sales person as an adviser regardless of their advisory capabilities. One way to deal with this is to find other people in the organization that are also “Asset Owners” – people with liability, but perhaps not the highest level executives. My book, The House & the Cloud describes an asset owner as someone with real or perceived liability – not necessarily the CIO or CEO. In any case, it would be rare for the IT Director to be counted in this group.

PS. I should have planned more time to sight see and take pictures. This is a beautiful country!

Guatemala City: Day 1

Dave Stelzl's Blog — Tue, 31 Jan 2012 12:33:14 +0000

I arrived yesterday after connecting in Houston. Guatemala is a lot different than I expected, with it’s mountainous terrain and volcanoes – pictured left. The weather is great in this city, which sits about a mile above sea-level. My client tells me they don’t need heat or air conditioning in their homes. It’s just perfect all year around. Last night we dined at a nearby upscale restaurant, where we discussed some of the history as well as how my client’s came to be here. I am looking forward to our sessions on Tuesday as we take their sales team through the Making Money w/ Security workshop.

PS. Don’t forget, I have a live Webex based sales training program coming up later this month. You can sign up here: (CLICK)

Two Great Opportunities

Dave Stelzl's Blog — Fri, 27 Jan 2012 18:31:36 +0000

First, I have just announced a free webinar – Unlocking the Secrets of Event Marketing…this is online and free, but I only have a limited number of seats left. Feb 7th – read more and sign up here! (CLICK)

Also, we have scheduled another online Making Money with Security Class. I recently received an email from a rep who used this material to take his career up to one of the top two sales people in his global firm. In his email he makes the statement, “This was life changing!” Don’t miss this…we are half full and early sign-up discounts end on Feb 4th. Read more and sign up here (CLICK)

Find Out and Join Them…

Dave Stelzl's Blog — Thu, 26 Jan 2012 14:43:42 +0000

In yesterday’s post I wrote about list building, as my children diligently work to increase their marketing reach – but how exactly do you grab the attention of new people?

The best way to make an immediate connection is to have something of value to offer. In the case of my children, they are offering a way to avoid having to think too hard about what to do for the holidays (in this case, what to give a loved one for Valentine’s Day). Having a handy picture of the treats they sell makes this possible. Originally my daughter wanted to just list the items, but a picture is worth a thousand words, and the emotional impact of seeing delicious chocolate does wonders for the person considering a purchase. They must to be able to picture what they are paying for – in fact you want them to be able to picture the experience of handing this gift to their loved one, and receiving praise for having done something really special.

Connecting with a businessperson is no different. Everyone is looking to succeed in what they are already doing; they are not thinking about helping you make your number. Do you see the difference? I think more sales people are out there expecting people to drop what they are doing in order to take a look at some new products or services. This isn’t the way busy people operate. They all have jobs; busy jobs; demanding jobs. No one has time to stop and take a look, and no one really cares about helping you make your number, at least at this point in the relationship. So what do you have that helps them? Find out what they are doing and then join them in helping achieve it.

I was talking with a client the other day about partnering with a certain manufacturer. We were discussing the value of some of these relationships, and comparing them to the lack of value in other reseller relationships. I mentioned another client of mine who has no full time sales people. “How do they do it?”, he asked. They are getting leads from their primary vendor partner. “How?” he pressed. “They have become the go-to provider in this city,” I answered. We then went on to talk through some of his partners. His technical group has made most of the decisions, purely on features, as to what they sell, but this is not the only qualification. Vendor partners need to be just that, partners. In order for that to happen, you must find out what they are doing and join them. Find out what their numbers are, where they are making their money, and where they are missing. Then help them figure out how to solve this problem. Join them by putting together a joint plan to fill in the missing piece. An immediate connection is made when this happens.

Do the same with businesses that you aim to call on.

If you work on the vendor side (for instance, as a channel manager), the same would be true in recruiting strong partners. Find out what they working to build, and if you can somehow get involved to help them build their vision, you just might become the product they lead with. Connecting with people is a simple process of finding out what they are doing, and joining them to help them achieve their goals. When it fits within your vision, it works, when it doesn’t, the partnership or relationship just doesn’t make sense.

Building the List

Dave Stelzl's Blog — Wed, 25 Jan 2012 19:36:38 +0000

Two of my children have started a business selling holiday baked goods (note: these are their pies!) Valentines Day is right around the corner, so it’s a good time to be marketing chocolate and cookies, or anything family members might gravitate toward, to express appreciation to each other. But how do my children build their call list? The food is great (see picture), but getting the word out is difficult. “It’s a process of list building,” I tell them. “If you spend all of your time in the kitchen, experimenting with truffles and flavors, you’ll never sell anything”. But, no matter what I say, their tendency is to spend their time on the part they love, sometimes letting the business die a slow death.

Building the list takes time. In fact, you can’t really wait until the list is built, because it never is. It’s a process that takes a lifetime. Every contact should be a consideration, and every contact is, or knows someone who is. With this in mind, we have developed cards with pictures of the treats they prepare, with simple directions to access their “Buy Now” website. And every time they enter a store where they know someone, or meet a new prospect, they should be asking for referrals, handing out extra cards, and collecting more names. It must become their passion to collect and maintain these names, treating each one with respect and gratefulness.

This is the process every sales person must go through as they look to spread their value and identify new prospects. Event marketing depends on it, in fact, any marketing today depends on it, simply because people don’t want to hear from someone they don’t know. In 2012, your business depends on great marketing – events, webinars, campaigns, and referrals…

PS. Don’t miss my upcoming webinar (FREE) – Unlocking the Secrets of Event Marketing (Sign up Here)

Compressor Aftermath

Dave Stelzl's Blog — Tue, 24 Jan 2012 16:04:47 +0000

Two posts ago I was writing about some customer service issues I had with Sears. This topic deserves one more post to bring to it to closure! While out on my planning trip this past week, my son brought this compressor to a friend’s house. It turns out that a capacitor used to start the motor had a cracked housing. My friend was able to repair the housing without purchasing any additional parts, and I am back in business for 0$. That’s right, my 230 something dollar quote from sears was fixed by a friend without replacing to motor, and without replacing the capacitor (if you read the post, you recall that Sears simply left me a message saying “My motor had to be replaced for $235).

The problem here is simple; the technician is programmed to replace parts regardless of whether they actually need replacing, and when a part is no longer made with their brand on it, they are not programmed to advise…We are all in business to make money, but when a fix can be made with a $2 part from Radio Shak (or simply repaired with glue, etc.) the value the consultant brings is in their advice not to spend more money. Customer loyalty depends on the customer feeling like they can really trust the person advising, and when the advice is easily challenged and the fee reduced by orders of magnitude, somehow the customer is left feeling less than confident in the service they are receiving.

Whatever position you are in, study and equip yourself to give the best answers, even if it reduces the size of your initial sale. In the long run, it will pay off. What are the chances of me recommending you head to the Sears Services Center (as the customer sat. form reads 0 – 10…hmmm).