Monthly Archives: December 2011
Really?
Really?
I was approached by a small radio group recently that had concluded “training” would solve their high failure rate of entry level salespeople. As a consultant, training has always been part of my bag of success tricks so I listened.
One of their managers said, “Our turnover rate is killing us. Our new recruits seldom succeed because they aren’t trained properly.”
“Really?” I asked.
I asked about their hiring process, new recruit remuneration packages and their training, and while I’m pro-training, quickly discovered training wouldn’t be the miracle cure for their problem.
Basically, their recruiting process consisted of the old mirror test…… they put a mirror under the candidates nose and if it fogged up, they got the job.
But even worse, was their remuneration package. “We want self-starters,” one manager proclaimed. “We give them a 90 day guarantee and no account list. After that they eat what they kill.” And the management team concluded the reason most didn’t make it past the 90-day mark was because they lacked confidence in themselves or didn’t have the right training.
My first job was as an apprentice carpenter (don’t ask how I got into ad sales, it’s a long story). It takes four years and lots of night school to complete a carpenter’s apprenticeship. Having done ad sales and carpentry, I can tell you both take a lot of skill and learning. What makes anyone think we can be accomplished ad salespeople after 90 days with any amount of training?
And then we compound the problem by asking new recruits to sell while their knees are knocking because they need the sale to put bread on the table. We’ve all seen these ‘failed’ recruits move on to successful selling careers in other fields. It’s time we gave them a chance in media.
While training is part of the success equation, pre-qualified recruitment, a realistic investment in start-up salaries, leadership and mentoring also play dominant roles in a ‘rookie’s’ success.
Grow Your Sales
Grow Your Sales; Fire Your Retail Sales Manager!
&mmp;nbsp; In one of our revenue development workshops we begin the conversation by suggesting, “If you want to increase sales, fire your retail sales manager and your entire retail sales force.” It’s a great way to wake up all of the retail salespeople in the room.
We follow up with, “Then rehire your retail sales manager as a local sales manager and lose the word ’retail’ on your account executives business cards.”
The reality is that
Look around your market. The growth is not in local retail establishments. The largest and fastest growing sector of your economy is the service sector; services like law firms, plumbers, financial advisors, electricians etc.
Not only is the number of retail prospects in your market shrinking, more importantly, online shopping, smart phones, a global economy and big box stores, are dramatically squeezing retail profit margins, which in turn, puts the squeeze on ad budgets.
Why should we be pursuing the service sector?
· Margins are excellent! Once the dentist’s first few customers have covered their fixed costs (chair, rent, equipment and receptionist) the profit on the additional two patients you attract for them is nearly 100%! Service sector doesn’t have to buy what they sell. If a retailer sells 200 units his cost is twice as high as selling one hundred units because she has to buy everything she sells.
· Services Don’t Need Volume One roofing job for a local roofer can pay for a sizable campaign on your station and a cosmetic surgeon doesn’t need to line patients up around the block to make a huge buck.
· No Global Competition. When you have a tooth ache or a leaky faucet, you don’t go online to look for service from Hong Kong or
· Less Haggling. Retailers, by definition, buy low and sell high. Most local professionals or service providers have never seen a radio account executive, and seldom do they know what your competitor’s rates are. With higher profits per sale, rate is not as important and usually one or two new sales make them happy advertisers.
We don’t have time in your short weekly ENS on Sales to explore all of the reasons the stations we consult are capturing huge increases from service sector clients, but I think you get the point; your most lucrative growth opportunities in 2012 and beyond, are in the services and professions. So as you plan for a ‘Happy New Year’, plan to fire your retail people in favor of training a local marketing team.
One final word: You can’t sell services or professionals if you are still speaking retail. Lawyers, for example, don’t want and can’t handle ‘traffic’….they want ‘billable hours.’
Click here if you would like to arrange a no-obligation demo of our, Selling the Service Sector, workshops.
The 80/20 Rule in 2012