Were You Following Pessimistic Forecasters?

Oops! Were You Following Pessimistic Forecasters?

 
          I worry about managers limiting their potential when they rely solely upon alleged ‘forecasters’ when setting their targets.
          In the U.S., for example, forecaster Barclays originally predicted a 4% decline in radio revenues for 2010. They have had to repeatedly revise their forecast for radio upwards. They are now forecasting radio will grow by 7.4%!
          How many stations have limited their growth or just barely achieved pessimistic targets based upon Barclays’ or other forecasters’ original gloomy forecast?
          Is your business plan a self-fulfilling prophecy?
          One of the stations I work with consistently just barely reaches target every month. I can’t help but wonder, “Would they still have ‘just barely hit target’ had we set the targets higher?” Or, “Do they quit selling when they reach their goal?”
          Henry Ford said it best when he said, “Whether you think you can, or think you can’t, you are right!”
          Targets are unquestionably important motivators and can be self-fulfilling prophecies. When you plan for 2011, we recommend not sticking your head in the sand or simply going along with industry prognosticators.
          Don’t simply look at things as they are, or predicted to be. Look at what could be and what you can do to get there.
          When we work with stations in their planning cycle, we have two underlying principals we apply to targeting. 
          First; targets must be realistic. By ‘realistic’ we mean from your point of view and your staff’s point of view…get their input. ‘Realistic’ is a perceptual term, but whether you perceive targets are achievable or unachievable, will dictate your level of commitment to them.
          Secondly; targets must be challenging. There is no satisfaction or sense of achievement in hitting ‘safe’ targets. Push the envelope with extraordinary initiatives and you are destined to hit extraordinary targets. 
          One final thought on targets. Don’t measure ‘success’ by your share of alleged radio budgets. Build a plan that helps you capture a larger share of overall marketing budgets….your station will grow and overall radio budgets will grow as a result of your efforts.    
          Jack Welsh once said, “Our problem is not that we set our aim too high and miss. Our problem is we set our aim too low and we hit our target.”

What They Learn in Buyer’s School

      What They Learn in Buyer’s School

 
          In my younger days I once facilitated a marketing and sales course for OIPMA, the Ontario Institute of the Purchasing Management Association….now there’s a mouthful.
          Anyway, when they first approached me I asked, “Are you sure you guys want a sales training course?”
          Their answer impressed me. These professional buyers wanted to learn what sellers were learning so they could counteract their sales tactics. So while we’re going to seller’s school, never forget your buyer has probably gone to buyer’s school. 
          Old-fashioned cold calling without a valid business reason for the contact or high pressure closing tactics won’t work with these savvy buyers and business owners.
          During the breaks in these training sessions, I casually inquired what they had been taught at ‘buyer’s school’ prior to my sessions. Here are some of the highlights;
  • Be skeptical of sales people who push for quick decisions on major purchases. Take your time and do your research.
  • Ask for references and follow up on those references. Also try to get the names of unhappy customers you can contact.
  • Don’t try to be an expert in everything you buy. Bring someone from inside, or outside, of your organization who is an expert in a particular product or service to advise you and ask pertinent questions.
  • First price is seldom best price. Always ask for value added, lower prices, credit terms and other concessions.
  • Never see a sales person who ‘drops in’. Always make an appointment and be prepared to focus on the presentation.
  • Get every promise in writing.
  • Always ask about after–sale service and warranties.
  • Try to get three quotes, and don’t always choose the cheapest. Trust, service, delivery, expertise and reputation should be considered in addition to price.
  • Have your conditions and criteria prepared for the meeting and don’t let a sales person bully you into changing your parameters.
  • Have your “no” prepared and rehearsed to end cheesy attempts by the salesperson to sell you. Telling a salesperson your budget is gone or you have decided to choose another vendor are fast ways to get them out of your office.
 
          Just as smart buyers try to learn how we sell, you need to learn how each buyer buys.  Do you have a sales process to understand each buyer’s style and to overcome each of the tactics highlighted here?  Try round-tabling your salespeople’s thoughts on each of these tactics in your next sales meeting.

Passionate about your Clients

Are You Passionate About Your Clients’ Successes?

 
          Both of my daughters followed me into advertising sales. Like me, both started in print but wisely moved into broadcast. And you might think they learned from me, but I’m proud to say they’ve succeeded largely on their own.
In fact, I continue to learn from them.
          Just last week my daughter Julie was describing one of her radio clients to me in her usual passionate fashion. When I told Julie I had never heard of that client she said “Are you kidding? They’re huge! And very successful!”
          Embarrassed by my ignorance, I decided to learn about this hugely successful advertiser.
          Then it dawned on me. The reason Julie is successful is she believes that all of her key accounts are the best at what they do!
          She digs and probes until she uncovers something positive about each account that she can believe in. That belief then manifests itself into the passionate energy necessary to create successful campaigns her station’s listeners can believe in.
          Are you as passionate about your clients’ successes as you are your own? Do you take the time to dig beyond the mundane surface to help your clients uncover their most salient attributes?
          You know enthusiasm is contagious, but does your sales process help you grow your enthusiasm for every client? Or do you simply view clients as a means to your end or as accounts receivable problems?
          Your most difficult clients can be challenging. It’s up to you whether you turn that challenge into a positive or a negative!

Take Responsibility for Sales

Take Responsibility for Sales

           When sales organizations are not achieving their targets, they often point their fingers at individual sales people. The three most common criticisms these organizations default to are;
1.) Our people don’t prospect enough; not enough cold calls.
2.) They don’t know how to handle objections.
3.) They don’t know how to close.
          Of course they do need to do more prospecting, learn to handle objections and increase the number of ‘asks’ to increase their sales.
          The two most common solutions these organizations pursue to achieve these objectives are;
1.) More training for the sales people
2.) New sales compensation plans
          Seldom do these failing organizations take responsibility and take a close look at themselves.
          In addition to the two basic solutions prescribed here, the most successful organizations we see, ask themselves these important questions;
1.) What are we doing to warm up those cold calls for our account executives?
2.) What can our organization do to prevent objections rather than asking our sales people to ‘handle’ them?
3.) What can we do to reduce the need to exert closing pressure and encourage our prospects to enthusiastically buy?
          Our SoundADvice is helping stations answer all three questions;
1.) SoundADvice creates trust and credibility for account executives with new prospects every week warming up those cold calls.
2.) SoundADvice educates advertisers on how to get a higher return on their advertising investment, minimizing objections.
3.) SoundADvice invites advertisers who are ready to buy, to make an
appointment with your account executives FIRST.
 
          Are you ready to take responsibility for your organization’s sales? 
Click here to arrange a free online demo to discover what SoundADvice can do for your organization.     

How Much Service Do Key Accounts Deserve

How Much Service Do Key Accounts Deserve?

             One of the sales managers using our SoundADvice radio e-marketing system emailed this question recently;
            John just received another cancellation this week. He is a powerful closer but his eagerness to move on to the next sale limits the service he gives his clients.  He says he is trying to ramp up as many sales as possible to earn more income and doesn’t have time to service key accounts more. What do you recommend we do to limit those cancellations?
            My Reply
            First, don’t dampen John’s enthusiasm for new business….most of the sales managers I work with wish their senior reps would prospect more!
            But you are absolutely right…it’s difficult to find new business, and therefore imperative that we retain, renew and grow that business when we find it.     
            One thing you might try is having all of your account executives place a value on their time and then ask them to ensure that their key accounts get the time they deserve.
            Have John estimate what his time is worth based upon what he wants to earn next year, and the number of hours he plans to work. If he needs to earn $100,000 and is going to work 260 days a year at eight hours a day and his commission rate is 10%, his time is worth nearly $50 an hour.
If a key account is billing $50,000, at a 10% commission rate, John is earning $5,000 on that account. At $50 an hour, that account is entitled to a minimum of two hours of John’s time every week ($50 an hour X 2 hours a week = $100 a week X 50 weeks = $5,000 earned income). 
            At two hours a week, John earns his required hourly rate PLUS with that amount of strategic service and valid business contacts, the client will GROW, rather than cancel!
Those two hours a week might not all be face to face. In my book; 101 Ways to Get Luckier (in Ad Sales), we outline 20 different service tactics your account executives can use to keep key accounts happy and growing.
            You might also remind John that 80% of his income will be derived from 20% of his accounts and that those key accounts are critical to his success.
Hope this helps.
 
Do you have a marketing, advertising or sales question? Simply email [email protected] . We’ll keep your identity confidential and answer your questions. ENS Media Inc. specializes in helping media companies and advertisers forge stronger, more mutually beneficial relationships.