Sales Ops Solutions » Technology

The Lost Art of Lost Metrics: Turning Past Losses into Future Wins

Michael Hanna — Tue, 23 Mar 2010 02:09:43 +0000

Unless you expect a 100% win rate, a lost deal is not a bad thing. In fact, if you are capturing the right information about your lost deals, then you can turn past losses into future wins! You can identify exactly where to focus your sales training, competitive strategies and positioning. Many sales organizations track the reasons why their deals were lost, but this only paints part of the picture. Let us examine one highly valuable lost metric that is often overlooked…

Based on the manager’s response in the comic strip above, it may seem that while the sales rep lost his deal, the manager lost his mind! The manager, however, is asking exactly the right question: “Where did you leave it last?” In other words, “Where was your deal before you lost it?” It is important to capture in which stage of the sales cycle a deal was lost. I call this the “Lost Stage”, the stage where deals disappear.

The Lost Stage, coupled with the Lost Reason, together provide a more complete understanding of your sales challenges. Consider the following two scenarios:

Scenario 1:
70% of deals lost in a given year were lost due to price. The company doesn’t know where in the sales cycle they were lost, only that they were lost because of price. To address the problem, the VP of Sales invests in negotiation training for the sales team and increases the threshold for allowable discounts from 10% to 20%.

Scenario 2:
70% of deals lost in a given year were lost due to price, 90% of which were lost during discovery. Now the VP of Sales understands that reps are disclosing cost even before the pain is quantified and the solution is understood by the prospect. He therefore directs his training efforts to the front half of the sales cycle.

In the first scenario above, the VP of Sales would have invested significant resources on negotiation training, but to no avail. Decreasing allowable discount thresholds was likely to also decreased the value of deals won. This would have yielded the opposite result from what was intended because of the false assumption that the problem was in the latter parts of the sales cycle. Worst of all, they would never have known it!

Knowing why deals were lost without understanding when they were lost can sometimes be misleading. Capturing both the Lost Reason and the Lost Stage provides a more complete and accurate picture. This leads to wiser, more informed decisions, which ultimately leads to improved sales effectiveness.

Capturing the Lost Stage metric can help turn past losses into future wins!

How to Inspire End User Adoption

Michael Hanna — Mon, 21 Dec 2009 13:02:05 +0000

If your organization struggles with end user adoption for new processes and technologies then this post will help. The practical insights provided below have been proven to work whether deploying a new CRM system or a new process within existing technology.

The seeds of end user adoption are planted long before implementation. The secret is to create a sense of ownership and positive anticipation leading up to deployment.

Consider the foundational meaning of the word “adoption”. When a parent “adopts” a child, they take one that belonged to another and makes them their own. By this definition, true adoption goes beyond meeting the minimum requirements to a sense of personal responsibility and expected value.

To create a sense of ownership, create a committee (whether formal or informal) that is to actively participate in shaping the process or technology being deployed. This team should have at least one representative from each role being effected. Guide them to provide input at pre-established milestones.

Be sure to listen carefully and value their input. Give them a sense of ownership. Only the true owner of a project can offer a sense of ownership to selected others. If you do this well, they will advocate the new process to their peers well before implementation. You will have actually effected the culture, which will not be easily changed.

Now, what if we still have an issue with adoption; what if 100% of your sales team members are not passionate evangelists of your process (imagine that!)?

This is where the stick comes in. The stick is to be used only when the carrot doesn’t work. Willful adoption is always more effective than forced adoption.

The following guidelines will help you to continuously increase adoption:

1. Establish metrics to measure adoption AND the expected results of adoption.
2. Use the metrics you established.
3. Acknowledge those who are adopting well and highlight their positive results to their peers.
4. Point out those who are not adopting well.
5. Managers, hold your team members accountable. Manage beyond metrics. Interact with each member.
6. Executives, hold your managers accountable to holding their team members accountable.

How do you drive adoption? You don’t. You inspire adoption!

“Weighted BANT”: A Simple Lead Qualification Methodology

Michael Hanna — Mon, 07 Dec 2009 01:47:54 +0000

If you have any experience in Lead Generation, then you are familiar with “BANT”. Budget, Authority, Need and Time frame are commonly used criteria for qualifying leads. If all four criteria are confirmed, then the lead is considered “qualified” and it enters the sales pipeline.

The Common Challenge:
Here’s the challenge that many companies will admit: “If I hold to all four criteria, then I will not qualify enough leads. But if I remove any one criterion, then I will qualify too many leads. Either way, I can’t win!” Yes, you can win. There is another way…

The Simple Solution:

The following lead qualification methodology is easy to deploy and can be quickly configured in most SFA or CRM systems. I call it the “Weighted BANT” methodology:

Apply a weighting to each of the BANT criteria (0, 1, 2, 3 or 4) and define each weighting. Below is a sample set of definitions for Authority:

0 = Has no authority and has no access to the decision maker(s).
1 = Has no authority, but has direct access to the decision maker(s).
2 = Has influence and has access to the decision maker(s).
3 = Is one of several decision makers.
4 = Has complete authority as the sole decision maker.

Define a similar scale for Budget, Authority, Need and Time frame.

Now qualify your leads based on the sum of all four scores. For example:

0-4 = Unqualified (don’t waste your time).
5-8 = Slightly Qualified (nurture it).
9-12 = Qualified (follow-up).
13-16 = Highly Qualified (follow-up immediately).

The “Weighted BANT” methodology provides enough flexibility to customize for your sales organization and enough simplicity to deploy and train quickly and easily.

If you choose to adopt this methodology, please share your results with me.

Enjoy!

Character Over Talent: “What talent can build over a lifetime, bad character can destroy in a moment.” – Roger Gushway

Michael Hanna — Sat, 14 Nov 2009 01:00:53 +0000

Three years ago I heard Roger Gushway speak these words: “What talent can build over a lifetime, bad character can destroy in a moment.” Immediately I thought of various people who had reached great heights of success after a lifetime of hard work, only to see it all tragically destroyed because of one pivotal moment’s decision. I had to ask myself, “Am I prone to the same tragedy? When I achieve my desired success, will I have the character to sustain it?”

As we aspire to achieve our goals in business and beyond, let us maximize every opportunity to build character. Character is not acquired through learning or reading. There is no “Character 101″ course or “Character for Dummies” book. Character is established through a series of daily decisions where the rubber meets the road.

When we choose not to compromise our morals, even if it results in loss, character is built. When we insist on the betterment of someone else in stead of ourselves, character is built. When our patience is tested in the fires of daily life, character is built. When all odds are against us but we do not quit, character is built. And as our character is built, so is our legacy.

Character does not have a time and a place. It is always relevant, always appropriate.

In the business world, when I evaluate a vendor, a partner, an employee or a customer, I always look for character first. I’ll take character over talent any day.

Influencing the Influence of Others

Michael Hanna — Thu, 05 Nov 2009 13:48:57 +0000

Influential sales reps can have a great impact on sales teams, whether good or bad. The wise manager will know how to identify and leverage that influence to his or her advantage.

Turn the Negative into Positive Influence:

When an outspoken sales rep is spreading complaints, the effects can be devastating on the sales culture and over-all morale. Managers who try to suppress this rep may get the opposite effect from what they had intended. Have you ever tried to suppress a ball in a swimming pool? The further down in the water you try to keep it, the greater the resistance you get in return and the bigger a splash it makes.

Instead of trying to stop the complaining rep, engage them, listen to them (whether they are right or wrong) and try to win them over. Ask their input in advance when certain changes are on the horizon. Instill in them a sense that you trust them and view them as a leader. This will give you the right to expect them to use their influence prudently. You now have a relationship where you can leverage their influence instead of fighting against it. You will have transformed negative influence into positive.

Maximize the Positive Influence that Already Exists:

If a rep has a positive influence on your team (for example they advocate positive change and prove it quickly in practice) then don’t just leave them alone, maximize their influence on purpose. Involve them early to help shape important changes (such as new technology and processes that will affect daily life). This influence can be a powerful force in uniting the team towards a common goal.

As a manager, it is in your best interest to identify and guide existing influence. Note that not all outspoken people are influential. Focus on those with real influence.

Effectively channeling existing influence is one of the unquantifiable yet powerful ways to increase sales performance. This ability often separates the good sales leaders from the great. Your indirect influence through others is greater than your direct influence through yourself alone.

Does Automation Automatically Mean Efficiency? (Sam vs. Jen)

Michael Hanna — Mon, 19 Oct 2009 16:57:22 +0000

Moderator:
When you hear “automation” as a sales person do you think of efficiency or of losing control over your sales process?

Jen:
I love automation if it means I can keep my boss happy and do less. I hate automation when it tries to do the thinking for me. Given that sales is primarily an art, I welcome anything that will free up my time to sell; that is to deal with people. I must admit that when management speaks of “automation” I wince, because it usually means they are introducing a new tool that actually requires me to do more. They want me to spend more time learning a new system – which means less time selling – and expect that as a result my sales will increase because something is being “automated” for me. When I hear “automation”, I think of losing control over my sales process. I’m a professional. Tell me what to do and let me handle the how.

Sam:
I actually have to agree with Jen on this one. Save me time, but don’t try to think for me! Now, given that sales is primarily a science, there are components that are repeatable and therefore can be automated. I’d love a system to automatically log my calls for me, so I don’t have to. But I don’t want it to draw presumptive conclusions from those calls. For example, fewer calls in a day may not be a bad thing if they are longer calls with meaningful conversations. I welcome automation, but sometimes I think the wrong things are trying to be automated. When I hear “automation” I hope for efficiency, and sometimes I get it…sometimes.

Readers, what do you think? Does automation automatically mean efficiency? Post your comments.

Is Sales an Art or a Science? (Sam vs. Jen)

Michael Hanna — Tue, 06 Oct 2009 23:50:57 +0000

Meet Sam

Sam is a firm believer that sales is a science. Any sales person who takes their profession seriously will establish a very structured and planned methodology. Sam has mastered the process of establishing a target list, carefully scripting conversation tracks, setting pipeline targets and tracking progress through the sales cycle. He always knows where he stands and can adjust quickly when required. “Make your proven sales process repeatable”, says Sam “and your successful results will be predictable.”

Meet Jen

Jen is a firm believer that sales is an art. No two deals are the same; there are too many variables. Timing, economic landscape, personal drivers, budgetary constraints and unexpected circumstances are just some of the moving factors that cannot be predicted and therefore cannot be boxed into a “one size fits all” process. Every conversation will take on its own life and every sales cycle is unique. “Sales is governed by relationships, and relationships are not predictable”, says Jen “therefore sales cannot conform to a repeatable process and definitely cannot be captured in a CRM system!”

Join the Debate

Do you agree with Sam or Jen? Please explain.