May 31st, 2010
I was recently asked for my opinion about the role a CFO plays–good or bad–as it relates to the sales organization. At times, I have witnessed short-sighted CFO’s take on such a significant role within a company, it sometimes facilitated the downward fall of the company itself.
My view on the role a CFO can play is very straightforward. The sales organization is responsible for generating the revenue. The financial organization is responsible for managing the money. If the sales organization isn’t generating revenue, changes need to be made within the sales organization. If the financial organization isn’t managing the money properly, changes need to be made within the financial organization.
I’ll say this: The “bottom line” is that there would be no need for a CFO, and a CFO wouldn’t have a job if the sales organization wasn’t “bringing home the bacon” by way of generating new sales revenue. If you think about it objectively, the sales organization drives the other business units and is the hub that connects the spokes to the wheel.
In my experience, the problem with many of the CFO’s I have worked with throughout my career is threefold:
1. They view the sales organization as an expense not an investment.
2. They jump over dollars to count pennies.
3. They are short-term thinkers with limited vision.
I’ve only worked with one credible CFO in my career who truly understood the importance and necessity of the sales organization as the sparkplug of the company, and he was good because he understood and valued the sales organization as a whole. Moreover, he understood you can’t cut your way (long-term) to profitability. He also “got it” and understood the concept that without top-end revenue growth, a company is doomed to fail.
The sales organization should be viewed as an investment not an expense. CFO’s who understand this concept are much more valuable in the marketplace. Unfortunately, they are in the minority in today’s market.
The Sales Advisory Board
Tags: Add new tag, CFO, Sales Leadership, Sales Organization
Posted in General, Leadership, Sales Management | Comments Off
April 18th, 2010
I know! I know!
You probably think I’ve lost my marbles, but I am happy to report I am in full command thank you very much!
When I suggest it is okay to come in second place, I’m not talking about losing a sale to your competitor. Second place is not normally a good thing when you are in sales, but when you are talking to a potential client, it is a good thing to come in second place.
Here’s what I mean…
• Don’t interrupt the prospect when they are speaking.
• If your prospect interrupts you while you are talking… let them.
• If you and your prospect begin speaking at the same time, stop what you are saying, and invite them to continue.
At the end of the day, it’s okay to come in “second place” to your prospect. Listening is more important than talking. Seek first to understnad before being understood.
The Sales Advisory Board
Tags: Add new tag, appointments, consultative selling, face to face meetings, first calls, sales strategy
Posted in Sales, Sales Management | Comments Off
March 31st, 2010
Many salespeople think it is best to leave a potential objection buried or ignored. The feeling being that if they ignore it, it will go away. But upon closer examination, if you do that, it will eventually come back to haunt you.
Like any injury or infection left untreated, it will only get worse. Your job as a salesperson is to surface the objection, clean it—bandage it if necessary and move forward in the sales process with the ultimate objective of closing the sale.
Unanswered objections will often lead to lost sales or the need to lower the price to keep the sale.
So…how do you go about dealing with objections?
It’s simple! Focus on objection prevention versus objection handling. Be proactive in terms of shedding light on a potential objection as oppossed to being reactive in terms of how you handle the objection brought forward by the customer.
The key is to listen very carefully to what the customer is telling you. Sure, you need to hear the words they are saying, but it is even more important to hear what they are not saying. Customers talk to us in all sorts of ways. Their body language, facial expressions and tone of voice often provide more information than their words. Watch for the sometimes subtle (and not so subtle) changes in a customer’s demeanor. Ask relative questions that will uncover or expose the issue or concern. If you see that your customer stops making eye contact with you or starts fidgeting or looking at their watch, it is time to slow down and find out the source of their discomfort. Even a slight change can signify a serious underlying objection on the part of the customer.
The biggest objections to deal with are price, time and fear.
Remember to focus on objection prevention and not objection handling to increase new sales opportunities.
The Sales Advisory Board
Posted in Sales, Sales Management | Comments Off
