Break Into a New Industry  

Are you ready to open the doors to a new industry? Here are some strategies for getting up to speed and winning sales.

Thinking about introducing yourself, your product and your company to an industry you have not previously pursued? Perhaps you have a new service to sell, or maybe you've found new applications for your existing product. You may even be ready to branch out of your current customer base.

Whatever your reason, getting started in a new industry will require massive organic research and activity. By organic, I mean it becomes a part of you--breaking into the new industry becomes your focus 24/7. To accomplish your goal successfully, try these tips:

1. Start calling. Call your entire network of friends and business associates, and ask who they know that might have some insight into that industry. Get as many referrals as you can collect. At this stage, you're searching for information. You want to find people who can share their wisdom and experience about the particular industry you're exploring.

2. Study the products and services of the industry. If you're dealing with products, find out how they're marketed and packaged. Go to retailers, or look at catalogs. If it's a service, use it yourself, or talk to someone who has. Study the way other companies do business in the industry.

3. Go to trade shows. Nowhere else can you find the same concentration of people in the know, all at the same place at the same time. At a trade show, you can talk to people in distribution, marketing, sales and manufacturing. Take a notebook along, and ask questions that will help you understand their businesses and the industry as a whole. It's an exhausting process, but well worth the effort. After the last trade show I attended, my feet were killing me, but I came away loaded with literature, a pad full of priceless information and a significant number of new contacts. It's an invaluable day-long lesson you can't get anywhere else.

4. Research online. Use a search engine like Google to help you find articles and information about the industry. You'll find many sites offering extensive information; some even have visual presentations as well.

5. Read, read, read. Gather every magazine and industry publication you can buy or subscribe to, and read about what's new and what's changing in the industry. Learn about the movers and the shakers, where they are and what they're doing. Make yourself familiar with as many aspects of the industry as possible so that when you do meet people, you'll know the jargon and speak their language.

6. Contact those at the top. Don't be shy about contacting the bigwigs. When you're reading industry publications, cut out articles that recognize individuals for their achievements. Laminate each article, and send it to the subject with a note of congratulations. Follow the note up with a phone call. While there's no guarantee you'll get an appointment, it will definitely raise the odds. In the meantime, see as many people as you can, even if they're not the biggest players in the industry. They can still provide valuable information and may even be able to refer you to more qualified people.

In the end, you get the greatest education from actually doing the deal. That's when you're forced to learn about the intricacies of an industry. But until you get to that point, your best bet is to practice the six steps above.

Chris Wilkinson.                              

Certified Business Behaviour & Attitudes Analyst.               

Business Coach.

Tel: (905) 275-2907 (Mississauga).

E-mail: buspilot@bell.net

How to Determine New Employees' Annual Bonuses.

When to Give an Annual Bonus to a New Employee

Chances are, you have recently been tasked with the job of determining (or at least helping to determine) what your employees’ end-of-year bonuses should be. With your long-term employees, you've have had some historical practices, as well as a, hopefully, comprehensive performance review to rely on to help you. But what do you do with employees who haven’t been with the company for a full year, including those who may have joined very recently? While there are no hard and fast rules, here are some approaches for you to ponder.

Luck of the draw. Some companies have a firm policy that says that employees who haven’t been with the company for at least a full year (or some other arbitrary cut-off date) are not eligible for an end-of-year bonus. It is the luck of the draw, so to speak, when an employee starts with the company. This is certainly a valid business choice, and may seem desirable these days when budgets are tight. But, it may come at a cost, especially if you have some outstanding new employees who are not recognized at a time when everyone else is.

Categories. You may decide to split up your new employees into categories. For example, employees who have been with you for under three months may receive a small lump sum bonus, say $100. Employees who have been with you for three to six months may receive a slightly larger lump sum bonus. Employees with you for six to nine months may receive a sum slightly larger still. And employees who have been with you for nine to 12 months may be eligible for the full bonus under the same parameters as all your longer-term employees.


Prorate. When you prorate, you use the same parameters you would use for your long-term employees, but adjust the bonus based on the number of months the employee has been with you. For instance, if an employee who has been with the company for over a year would be eligible for a five percent bonus, then a new employee in the same position who has been with the company for six months would be eligible for a 2.5 percent bonus (half the year=half the bonus).

Of course, you have to keep in mind that you may have hired someone within the past year who clearly isn’t performing well, in which case it is recommended that you refer to rule number one in compensation: don’t reward a poor performer! 

Be Consistent.Keep in mind that whichever option you choose should be used across the board – if you decide to go one route with one employee and another route with another, you may open yourself up to liability. Above all, your bonus practices should stay in alignment with the company’s compensation strategy, as well as the overall business strategy. And finally, at the end of the day, make sure you stick to the budget. If you can’t stay within your allotted budget, you run the risk of your CFO cutting the bonus program altogether.

Chris Wilkinson.                              

Certified Business Behaviour & Attitudes Analyst.               

Business Coach.

Tel: (905) 275-2907 (Mississauga).

E-mail: buspilot@bell.net

 7 Sure-Fire Ways to Build Your Referral Business...

Growing a business is tough work. The sales function is a time consuming task with a constant need to fill your "sales funnel" with fresh, qualified prospects on a regular basis. Finding the best qualified leads from your business does not come from a cold contact situation but from building a strong referral business. Discover the the benefits plus 7 tactics to drive the referral marketing for your business.

Referral Marketing Benefits....

The business of referrals makes sense for most companies for the following reasons:

·  Referral marketing reduces your sales expenses and sales cycle. With less time calling cold prospects, your small business can focus on customers and their circle of influence.

·  Referrals can build your level of satisfied customers. The cycle self-perpetuates with more satisfied customers referring others to your company.

·  Referrals increase your sales revenue. According to world-renowned sales trainer, Tom Hopkins, in "Sales Prospecting for Dummies"; your closing ratio for non-qualified leads is 10 percent versus a 60 percent close ratio with referred leads.

If the prospect of building the referral end of your business is so enticing, why do so few businesses do it? Because they use the wrong approach in building referrals and have limited success. To ensure your business is on track to building referrals, follow these 7 tips:

7 Sure-Fire Ways to Build Your Referral Business

1. Set A Target: In business, measure the results to improve performance. Set a clear goal with a time line. Example, 10% increase in referral business over the next 10 weeks.

2. Timing: Conventional sales wisdom claims the best time to ask for the referral is immediately after the close. This tactic is far too aggressive. Give your clients time to experience your service or product before asking for a referral. Ask for the referral at close only if your client is already delighted with your business.

3. Top 20: Not all customers are referral candidates. Find the top 20% that are ecstatic about your business and ask them for referrals. Make sure their network is the type of client you want.

4. Give and You'll Receive: Give your clients extra service and follow-up support before asking for referrals. When you give willingly to your customers, they will return the favor.

5. Type of Customer: Inform your referring clients of the type of customers you can help. Provide a clear picture of the customer demographics will help your referral marketing.

6. Rewards Program: Provide special rewards to your referring customers on a regular basis. If a customer provides you with 5 sales, offer them something special, e.g. discounts.

7. Thank-You: Lisa A. Maini, President of my Marketing Manager, recommends businesses need to establish trust to build referrals. Lisa says, "Create a basic thank you letter that can be personalized and sent to each referral you receive. Treat your referral sources with the utmost of care and you will not only build a foundation of trust but keep hot prospects coming to your door."

These tips are simple but when executed on a regular basis they can drive your referral business and build sales revenue. Start today and watch your referrals grow.

Chris Wilkinson.                              

Certified Business Behaviour & Attitudes Analyst.               

Business Coach.

Tel: (905) 275-2907 (Mississauga

Develop, Implement and Reinforce a Pay-for-Performance Culture......

The importance of having the best people in key areas is critical to the success of your business. It's no secret the key to retaining the best and brightest talent is recognizing and compensating top performers. According to Giga Information Group, retention can be improved by meritocratic management–or pay-for-performance - by up to 27%.

Establishing an employee pay-for-performance culture is considered the #1 tool for achieving financial results by leading executives. Today's HR technologies now give managers easy access to all the information they need to reward individuals for actual performance–360 degree feedback, goal alignment metrics, review data and performance notes taken throughout the year. This allows managers to make consistent, quantifiable and fair decisions, and avoid compensating the wrong people. Other positive benefits include the ability to:

·                                 Track employee progress against pre-agreed performance goals.

·                                 Identify who is delivering against expectations, and contributing the most.

·                                 Improve ongoing employee job satisfaction, productivity and retention by recognizing and rewarding exceptional effort.

Avoid ‘salary bracket creep’ overcompensating by seeing  exactly where compensation and performance are not aligned.

Chris Wilkinson.                              

Certified Business Behaviour & Attitudes Analyst.               

Business Coach.

Tel: (905) 275-2907 (Mississauga).

E-mail: buspilot@bell.net

Dogs, cash cows, problem children & stars.
Examine each individual product or service group in your range and place it onto the matrix. Where are the products/services of your rivals in this matrix?

Each cell has its own name as follows.
Dogs
These are products with a low share of a low growth market. These are the canine version of 'real turkeys!'.  They do not generate cash for the company…. they tend to absorb it. Get rid of these products/services!!
Cash Cows
These are products/services with a high share of a slow growth market. Cash Cows generate more than is invested in them. So keep them in your portfolio of products for the time being.
Problem Children
These are products/services with a low share of a high growth market. They consume resources and generate little in return. They absorb most money as you attempt to increase market share.

 Stars
These are products that are in high growth markets with a relatively high share of that market. Stars tend to generate high amounts of income. Keep and build your stars.
                Look for some kind of balance within your portfolio. Try not to have any Dogs. Cash Cows, Problem Children and Stars need to be kept in a kind of equilibrium. The funds generated by your ‘Cash Cows’ are used to turn ‘Problem Children’ into ‘Stars’, which may eventually become Cash Cows. Some of the Problem Children will become Dogs, and this means that you will need a larger contribution from the successful products to compensate for the failures.
Here are some definitions of the four terms above. Which is which?
(i) Low market share and low market growth
Star? Dog? Problem children? Cash cow?

(ii) Low market share in high growth markets
Star? Dog? Problem children? Cash cow?

(iii) High growth markets with relatively high share of the market
Star? Dog? Problem children? Cash cow?

(iv) High market share, but slow market growth
Star? Dog? Problem children? Cash cow?


Can you employ this matrix in your business?

Chris Wilkinson.                              

Certified Business Behaviour & Attitudes Analyst.               

Business Coach.

Tel: (905) 275-2907 (Mississauga).

E-mail: buspilot@bell.net

   

Are you making the same sales presentation to all your customers??  (Many sales people do).

Segment your customers into 4 main buying styles and adapt accordingly.

Presentation Tips that influence the Dominant high 'D' buyer..(no nonsense, big shot type company president).

Don’t waste their time.

They won’t want lots of facts and figures; just hit the high points and get to the bottom line quickly.

You and the product must appear credible.

Can be difficult to switch from current, trusted suppliers. But, once switched will remain highly loyal as long as you provide service.

Will not want to see many testimonials, research, data, etc. May delegate this research to subordinates.

Will be impressed with an efficient, no-nonsense, business-like manner.

Will be interested in new products.

Be concise and business-like. Short, bullet type presentations are better.

Don’t waste their time with idle talk.

Get to the point quickly, solve their problems fast and make the sale and get out!!

Presentation Tips that succeed with the high  'I' Influencer types (sales people).

Spare the details; they will not want to hear them.

The buyer will often buy easily from you with only a minimum presentation. But beware! The competition can steal the buyer away from you just as easily. So give plenty of follow-up service.

The buyer will be interested in new and innovative products. They will try almost anything under the right circumstances.

The buyer will want to talk a lot,  laugh, joke & socialize, etc. Buy him lunch or a cup of coffee and you’ll have him sold.

Eliminate lots of details. Just hit the high points.

Show him new products, socialize and provide plenty of follow-up.

Presentation Tips that work best with the high 'S' supporter team player types.

Take it slow and easy; if you go too fast, you’ll lose the sale.

Provide plenty of proof and statistics.

Earn their trust and friendship by visiting about family and hobbies.

May require additional visits for reassurances before the sale is made.

Emphasize your proven products.

Earn their trust with facts and figures. Take it slow and easy.

Make repeat visits and be sure ALL questions are answered.

Presentation Tips for the fearful 'C' compliant buyer.... (engineers, accountants, technicians)

Needs lots of proof, background information and proven results before making a purchase.

Needs to take time, absorb details and digest facts before going to the next step.

Highly suspicious of new and unproven products.

Use testimonials or plenty of research information to back up your presentation.

Don’t rush, but don’t waste time with small talk.

Get right to the point with plenty of facts and figures.

Be sure all questions are answered.

Don't stand too near & avoid physical contact

Happy  & successful selling!

Chris Wilkinson.                              

Certified Business Behaviour & Attitudes Analyst.               

Business Coach.

Tel: (905) 275-2907 (Mississauga).

E-mail: buspilot@bell.net

How to Respond to an employee Request for a Raise......

It’s that time of year again: the annual salary budget has been set, performance evaluations are done, and suddenly managers are hiding behind closed doors, anxiously dreading “the talk.” The annual compensation conversation doesn’t need to be a daunting, mysterious process, either for managers or the staff they supervise.

Employees will ask for a raise. They will. In fact, it’s their job to ask for a raise. It’s also their responsibility to come to the conversation prepared with a clear and well-thought-out rationale for why they believe they deserve one. With a little preparation, managers can head into the annual compensation meeting feeling competent, knowledgeable, and unafraid of the inevitable ask.

Three Steps to a Smooth Compensation Conversation

1. Prepare, Prepare, Prepare

Once managers accept that the employee will ask for a raise, it’s easier to prepare for the conversation. 

Know the market: What’s going on in your market in general? Examine companies with a similar industry, size, and location. Are companies giving 3 percent raises? Or, are they still in the hazy minimal raise days? Have reliable market data for each position on your team. Your HR or compensation professionals should be able to provide you with this information. 

Know the organization: How is your organization performing as a whole? What has your organization decided around raises this year? Has the budget been determined? What are the business priorities for your organization and what are you trying to reward? Performance? Tenure? Certain roles or hot jobs? 

Know the team: Money is a finite resource. If your raise budget is 3 percent and you decide to give one employee 5 percent, someone else is getting 1 percent. Knowing the ins and outs of your team will help you determine who should be getting above average raises and who should be getting below. Be able to articulate, at least for yourself, why each person is getting above or below and make sure you have a concrete rationale. 

Know the employee: How long has the employee been with the company? Does their performance meet or exceed expectations? Do they perform a job that has high intrinsic value to the company? 

2. Listen Actively, Communicate Assertively, and Own Your Decisions 

When you sit down for the meeting, try to pick a time and place that minimizes distractions and interruptions. Make sure that the employee feels like you have heard them, and, of equal importance, you will want the employee to hear you. 

Listen Actively: Most employees who deserve a raise have put time and effort into preparing their rationale for why they believe they do. Hear them out. They may be asking for the moon, but if they can clearly and concisely show you their contributions and accomplishments, listen. You may find out more about them in this section than you did during the performance evaluation meeting! Many times, in their anxiety to get through the salary negotiations, managers forget the simple step of listening to their employees, and you can’t expect them to listen to you if you don’t model that behavior first. 

Communicate Assertively: When it’s your turn to talk, be clear about what you can and can’t do. Don’t promise them the full enchilada if what you can give them is a piece of cheese. These days, many managers are people-pleasers, eager to get their employees what they want. Yet, it’s important to be firm, direct, and honest about what’s possible. If it is within your organizational culture, share the market data both overall and for the position. Consider sharing the organization’s budget for overall increases. If appropriate, explain the process for determining salary adjustments to them. 

Own Your Decisions: As a manager, you are often one of the largest influencers of an employee’s pay, whether you’re making the decision yourself or passing along information about performance or skill-level to others. Even if you’d like to do more or less for a staff member, but the powers that be feel otherwise, you help determine the salary for your employees. However the exact salary adjustment amount is determined, back it up and communicate it to the employee as though it were your own. It will help the employee accept the decision, and may gain you management points with the higher-ups. 

3. Follow Up

Whatever you talk about in your compensation conversation, be sure to follow up. If questions were raised, get the answers. If concerns about the process were communicated, pass those along to HR or your compensation folks. And perhaps, most importantly, whatever you agree to pay the employee, make sure it shows up on their pay check. 

Whether you’re a manager who has a lot of flexibility or one who is given salary increase amounts for each employee, you can expect that your employees will be looking to you for answers. Won’t it feel better when you have them? 

Chris Wilkinson.

Certified Business Behaviour & Attitudes Analyst.

Business Coach.

Tel: (905) 275-2907 (Mississauga).

E-mail: buspilot@bell.net

Get (profitable) old customers back…….

If people have bought from you before, they may buy from you again. You need to find out why they stopped buying from you and apply that knowledge to regain their custom.

Find out what changed

Identify why customers stopped buying from you. Consider whether your product or service is:

·                 no longer necessary

·                 too expensive

·                 unsatisfactory

·                 being beaten by a competitive offer

Rebuild contact with your customers

Research suggests the reason many customers stop buying is because they don't feel that they have sufficient contact with their suppliers. 

Try to have some form of regular contact - eg monthly or quarterly phone calls, formal or informal visits to customers, mailshots or email newsletters - so that customers don't feel they are being ignored and look elsewhere.

 If you have lost a customer for this reason, your first step is to rebuild contact and prove that you understand and are focused on their needs - eg a letter expressing regret that they have stopped buying from you and making them a time-limited offer.

It's worth trying a few times, but don't persist if you aren't getting any response. Many businesses have a limit to the amount of times they contact lapsed customers - usually five or seven times.

Make an offer to tempt them back

When you know why the customer is no longer buying from you, consider ways to make your business more appealing.

For example, if your price was viewed as too high, consider a time-limited discount to encourage them to start buying again, eg 20 per cent off for three months.

If your service was unsatisfactory, ask what you could do to make it meet your customer's expectations and assess if it is possible and profitable for you to adapt your service for the former customer.

Be realistic

While you may be able to tempt many customers back, remember that you don't want them at all costs. You want to build a long-term profitable relationship. It's not usually a good idea to make long-term offers that don't contribute any profit just to get a specific customer back, unless there are compelling strategic reasons to do so.

All these actions should be built into your marketing plan. The faster you contact a lapsed customer, the greater the chance they will come back to you

 Chris Wilkinson.                              

Certified Business Behaviour & Attitudes Analyst.               

Business Coach.

Tel: (905) 275-2907 (Mississauga).

E-mail: buspilot@bell.net

10 Sales Kickoff Meeting Ideas for 2012

We're nearing that time when we need to finalize 2012  sales budgets, new compensation plans and something most sales managers don't take enough time in developing: their 2012 sales kickoff meeting.  

Already, many larger organizations are booking their sales conferences for the first quarter. That's where they will invite their sales teams, vendors, resellers and partners to hear their plans to make 2012 the best year ever. Keynote speakers, breakout sessions, new marketing plans and product demonstrations will all be coordinated to boost enthusiasm and excitement in what the new year will bring. 

However, just because larger organizations are planning their formal conferences, it doesn't mean as a sales leader you shouldn't be planning an event for your sales organization.

A yearly sales kickoff meeting can be organized as an off-site or overnight two-day program, or as a simple half-day event. You should schedule them no later than mid-February. However, the basics of any sales kickoff event should include the following planning ideas.

1. Announce a theme for the new year. This should be a positive statement of your major objectives and something that can be reinforced throughout the year. "Be Brilliant on the Basics" or Nike's "Just Do It!" are two examples. 
2. Include time for sales training on sales skills. You might hand out a sales training book as a gift to each salesperson. This will be your first-quarter "must-read" book. You can use the book for extended sales training during your meetings. Also roll out your first quarter sales training plans.
   
3. Announce a first-quarter sales contest.
   
4. Announce a 2012 year-long sales contest, with a big prize for exceeding quota. Examples include a trip to a resort, a cruise or a trip to an island. Remember, these kinds of incentive programs are not expenses but paid out of incremental revenues/profits. The rollout should include written rules and pictures of the location.
   
5. Describe and show your marketing plans for the first six months. This will show the salespeople how your organization is planning to support the sales team.
   
6. Schedule the president of your company to give a short message on his/her philosophy on sales and the culture of your organization.
   
7. You may or may not announce your new compensation plan at this event; it all depends upon the degree of change you are making. With minor changes, it's a great time, while major changes schedule a separate meeting. Hint: Do not roll out the new compensation plan as the last topic of the meeting. Schedule it early in the afternoon, if your event is a full-day meeting.
   
8. Make sure you make the meeting fun!  As the sales leader, work on activities that create the right culture and teamwork. Create a game that everyone participates in during the event.
   
9. Make sure each salesperson presents their business plans for the year. Based upon the number of salespeople this can be done by breakouts into regions, smaller groups or as a single group. These business plans include not only forecasts but personal commitments to activity levels and professional growth.
   
10. Bring in an outside speaker. This could include a customer telling of their satisfaction with your firm, a sales trainer or a motivational message that propels your team to excellence.

This is your time to bring a coordinated program that sets the tone for the new year. Make sure you take the time to do it right. What additional ideas do you have?

Chris Wilkinson.                              

Certified Business Behaviour & Attitudes Analyst.               

Business Coach.

Tel: (905) 275-2907 (Mississauga).

E-mail: buspilot@bell.net