by Art Waskey | Dec 5, 2022 | Art of Sales Weekly, Featured
Changing Sales Dynamics
In the book, Thriving on Chaos, Tom Peters states: “If you’re not confused, you’re not paying attention”. As a result of digitalization, sales dynamics are changing at an accelerated pace. Furthermore, this has caused a lot of confusion. To put the chaos in order, I find that taking the time to plan a solution to the problem is the best approach. As Collin Powell said, “There is no secret to success. It is the result of preparation, hard work, and learning from failure.” Let’s look at how to build a successful sales team for the digital age.
More Proactive Inside Sales
Alternatively, prior to the pandemic, the distributor sales strategy was based on the complementary pairing of outside salespersons with inside customer service teams. Each group had contrasting skill sets. Additionally, the outside team was the face of the company that brought in the customers, while the inside group took care of the details. They worked together to satisfy customer needs.
With the introduction of digital capabilities like ERPs, CRMs, eCommerce, and AI-driven customer analytics, the dynamics of selling have been radically altered. The digitizing of customer data has enabled businesses to become increasingly effective in identifying and meeting customer demand.
However, today’s inside sales team has new resources that enable it to take on more complex roles. With customer analytics and AI-generated insights on their desktops, they can be more proactive and less reactive.
Reframing the Outside Sales Team
Moreover, With the changing role of an inside sales team, the outside sales team’s value proposition role shifts. Although, it becomes less transactional and more like that of a counselor/partner/profit producer. According to McKinsey & Company, companies that personalized sales and marketing were 60% more likely to grow market share in 2021. Additionally, 72% of B2B buyers said they would actively look for a new supplier if their current one doesn’t offer a consistent customer experience across all channels. The sales relationship’s basis in trust remains critical. However, the client must believe the field rep is working in the customer’s best interest.
The Objective
The objective of a successful digital sales team is to remove any stress caused by these developments. Lastly, an effective digitally integrated sales program includes the elements covered above. It can eliminate much of the confusion that can be caused by a lack of understanding. Put your carefully constructed digital sales strategy plan in place today.
by Art Waskey | Nov 21, 2022 | Art of Sales Weekly, Featured
In Baltimore City, Maryland, my father owned two 20-foot refrigerated displays in a store that sold meat. His five children learned how to develop a strong moral character from him. As an example of hard work and good business practices, he led us by example. As we age, we still adhere to those principles despite being in our 70s. This legacy he left his five children reminded me of the 5 Generation Legacy Rule.
The Five-Generation Rule
What some call the “five-generation rule” refers to the effect of how a parent raises their child on future generations. The love they give, the values they teach, the emotional environment they offer, and the education they provide. This can all influence not only their children but the four generations to follow, either for good or evil.
Furthermore, in an article by Larry Ballard, he discusses how radically different generational outcomes can be depending on the parents’ actions. He describes how American educator A.E. Winship traced the descendants of Jonathan Edwards almost 150 years after his death. Alternatively, his findings are remarkable, especially when compared to the ancestors of another man from the same time period known as Max Jukes.
Multi-Generational Success
Jonathan Edwards a puritan preacher, in the 1700s, was one of the most respected preachers of his day. He attended Yale University at the age of thirteen and later went on to become the president of Princeton College.
Further, Edwards’ 5 Generational Legacy includes 1 U.S. vice-president, 1 dean of a law school, 1 dean of a medical school, 3 U.S. Senators, 3 governors, 3 mayors, 13 college presidents, 30 judges, 60 doctors, 65 professors, 75 Military officers, 80 public office holders, 100 lawyers, 100 clergymen, and 285 college graduates.
Multi-Generational Dysfunction
In contrast, Max Jukes’ legacy came to people’s attention when the family trees of 42 different men in the New York prison system were traced back to him. He lived in New York at about the same time as Edwards. The Jukes family originally was studied by sociologist Richard L. Dugdale in 1877.
In addition, Jukes’ 5 generations of descendants included: 7 murderers, 60 thieves, 190 prostitutes, 150 other convicts, 310 paupers, and 440 who were physically wrecked by addiction to alcohol. Of the 1,200 descendants that were studied, 300 died prematurely.
The Legacy You Leave
Lastly, Ballard concludes his discussion by asking — If someone studied your descendants four generations later, what would you want them to discover? The life you live will determine the legacy you leave. In both your personal and professional life, lead by a good example and create a path to success for 5 generations.
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by Art Waskey | Nov 14, 2022 | Art of Sales Weekly, Featured
B2B buyers are doing a lot of purchasing online these days — about $1.6 trillion annually according to projections by Digital Commerce 360. Are buyers happy with these transactions? A survey of digital buyers from 150 companies finds that 97% of online buyers experience some pain point during the eCommerce purchasing process. And 94% of B2B buyers agree their company prefers to work with suppliers that continuously evolve their digital capabilities. Be sure you are paying attention to more than just the online sales figure. What are your actual customer outcomes?
Be Customer-Centric
I have been reading a lot on the topic of online purchasing that supports the findings above. The impersonal nature of online selling and its related pain points represent an opportunity for the independent distributor who knows his customers. As the post-pandemic business model moves toward more digital commerce, the distributor must become even more customer-centric.
Customer Experience
In a recent post, business innovation expert Mark Dancer explains that distributors often say that they are becoming customer experience (CX) companies. He defines CX as how customers interact with brands, products, and services. CX business models gaze inward. They are designed to optimize the processes under which the supplier operates to serve its customers.
Customer Outcomes
Customer outcomes (CO), on the other hand, measure customer satisfaction with the purchasing process. Good customer outcomes ensure that the supply chain prospers only if customers prosper. According to Dancer, the future of distribution is the relentless pursuit of CO, not CX.
Dancer finds most leaders say they’re customer-centric, but if everything they measure is CX, how could that be true? Revenue, growth, and other Key Performance Indicators (KPIs) measure how customers perform for the company. Organizations that wish to be customer-centric —and maximize growth—must also measure how the company is performing for its customers (CO).
Be Effective
Finally, distributors need to become a flexible resource that enables ever-better business results and innovations in the customer’s business. To do so, evolve your digital capabilities. As Dancer suggests, these should yield better customer outcomes. The right ERP, CRM, and AI-driven customer analytics can provide customer-centric support. And Lastly, Partner with your customers to build more effective KPIs for customer outcomes and eliminate their online purchasing pain.
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by Art Waskey | Nov 7, 2022 | Art of Sales Weekly, Featured
My son-in-law works in the motion picture industry. The film projects he works on were staffed with people from multiple companies as well as independent contractors. Making a film requires a complex network of interconnected systems, known as a workforce ecosystem.
Digital integration
In addition, to being intermediaries in a value chain, distributors are a part of a workforce ecosystem. As part of a complex and critical supply chain, they handle detailed information. Additionally, product and service identity, pricing, inventory location, and delivery are all part of a chain. Above all, this will help the end user get their work done. Suddenly, workplace ecosystems have been changing at a high rate in recent years. Now that companies are more digitally integrated and forced to be responsive as a result of this shift. Now, to be competitive in today’s workforce ecosystem you need to operate with the latest software and digital tools and platforms.
Mining data
According to Mark Dancer, “Companies that buy products from distributors will always seek to create value for them. And the users that use them will often measure the total cost of ownership, worker productivity, and the quality of the products and services needed for the end user. What’s new is, realizing that doing this can be an extension of the supply chain. With offerings not based on vague value propositions but through the value to create and measure new, and more comprehensive data.” Furthermore, he adds, “No matter what the delivery mechanism is, supply chain companies are at the center of providing this capability.” Independent distributors should consider using their ERPs to mine data downstream of customer orders. However, ERP technology distributors can solve problems and provide the right product based on data collected from actual client interactions.
Be competitive
To conclude, local distributors are at the center of these complex supply chains, which continue to evolve. To remain competitive in the workplace ecosystem, you must create added-value product offerings and services based on the comprehensive data available through your digital technology platforms.
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by Art Waskey | Oct 24, 2022 | Art of Sales Weekly
Electric Vehicles (EVS) are coming. I have two Gen X children who are now working professionals and both drive Chevrolet Bolt EVs. In a recent article, Ford’s CEO, Jim Farley, said the pending electric vehicle price war would drive their sell price down to $25,000. The EV field already has many choices. In highly competitive markets like this what determines success? It usually comes down to added-value differentiators.
The Supercharger
Furthermore, EV front-runner, Tesla, continues to work on its strategic plan that focuses on added value to car owners. For example, Tesla’s Supercharger network is easily one of the company’s smartest ideas. Since it takes 20 to 30 minutes to supercharge, Tesla wants its clients to be entertained while waiting. The company strategically places charging stations at big-box stores near major highway interchanges so customers can walk to a restaurant and shops. In Germany, Tesla recently installed a heated pool at a Supercharger.
With major changes in-car technology and selling methods, the automotive industry must focus on added values to lure customers. Distribution sales are no different. Technology and selling methods have changed for distributors as well. Distributors need to offer added-value propositions to differentiate themselves from alternative virtual channels.
Added Value Propositions
Here are some of the areas to focus on when considering how to supercharge your added-value offerings.
- Customer service – The greatest advantage a distributor has over online verticals is customer contact. Continue to find ways to improve customer service.
- Convenience – Focus on improving store stocking and maintaining a competent staff. Assist your customers in product selection and education. Add free beverages and internet to your stores so clients are more inclined to linger. Costco’s product samples are a good example of how to attract interest in your store.
- Complexity – Find ways to bundle your products or include assembly and training. Some distributors ask their customers to bring their projects to the store so they can be reviewed for more efficient production methods.
- Digital technology – The more digitalization a distributor can deploy in its ERP the better. It enables you to demonstrate speed, accuracy, and an understanding of the customer and their needs.
Best Price Differentiator
Lastly, distributors can take a lesson from the automobile industry. As Tesla continues to demonstrate, in a competitive market added value is the best price differentiator.
by Art Waskey | Oct 17, 2022 | Art of Sales Weekly
A sales manager recently described his travel day with a rep who needed to close more business. They called on six prospective accounts and the manager expected to close on three. When I spoke to the rep, he described the manager as too direct and complained that his tactics made the rep uncomfortable. I thought the sales manager’s actions demonstrated advanced selling skills, however. To gain perspective on the best approach to a sale, let’s look at the psychodynamics of the successful salesperson.
Important characteristics
Here are the characteristics I believe are most important to closing deals.
- Self-confidence – It is critical to walk into a prospective account with the confidence that you are going to close the sale. Believe that your customer needs what you have to offer. Know your product.
- Be engaging – Whether you are talking to the receptionist, an employee you pass in the hallway, or the decision-maker, ask questions and listen. If you can get a person to speak to you for 15 minutes, they will trust you. As Zig Ziglar used to say, “People don’t care how much you know until they know how much you care.” Be engaging —let your prospect know you care.
- Knowledgeable – Have confidence that your product or service is something the customer needs. Don’t share information that isn’t requested. Keep answers brief and always ask another question.
- Trustworthy – Being trustworthy is doing what you say you are going to when promised, and in the manner, you described.
Close the deal
The sales manager described above had the confidence and knowledge to close the deal. He could engage his customer in productive discussions and gain clients’ trust. Use psychodynamics—self-confidence, engagement, knowledge, and trustworthiness —to create long-lasting, strong customer relationships and close those deals!
