Stop For red FlagS!the three critical areaS you muSt explore to qualiFy leadS

r & r – reward & recognition or random & reckleSS?

nZ’s e-mag for sales leaders

NZSALESSEPTEMBER 16Th 2009 / ISSuE 29

the ant philoSophyliFe’S leSSonS From a little critter

NZSM / SEPT 16Th 2009 / 2

SEPTEMBER 16Th / ISSuE 29

thiS week’S muSt read

Stop For red FlagS!

The three critical areas you must

explore to qualify leads.

r & r – reward &

recognition or random

& reckleSS?

What makes a great event?

nZSm calendar

the ant philoSophy

Lessons we can learn from ants.

SaleS training directory

reSource corner

a whole new mind

Daniel Pink offers a fresh look at what

it takes to excel in this new world.

quick Fix

It’s not what you sell, it’s how you sell

the cloSe

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15ABOuT /

Short and sharp, New Zealand Sales

Manager is a free e-magazine delivering

thought provoking and enlightening

articles, and industry news and

information to forward-thinking sales

managers, business owners and sales

professionals.

EDITOR / Paul Newsom

ART DIRECTOR / Jodi Olsson

GROuP EDITOR / Trudi Caffell

CONTENT ENQuIRIES /

Phone Paul on 04 586 4733 or email

pauln@nzsalesmanager.co.nz

ADVERTISING ENQuIRIES /

Phone Richard on 09 523 4112 or email

richardl@nzsalesmanager.co.nz

ADDRESS / NZ Sales Manager, C/- Espire

Media, PO Box 137162, Parnell,

Auckland 1151, New Zealand

WEBSITE / www.nzsalesmanager.co.nz

are you one oF thiS week'S winnerS? See inSide!

NZSM / SEPT 16Th 2009 / 3

You may have watched the TV

programme a couple of weeks

ago called Freefall, tracking the

story of boom to bust in the uK

through the current recession. The story followed a

broker selling discount mortgages to people at the

value of up to six times their salary – which they

could never afford once the bubble burst. The sales

person was highly successful in the terms of his

income when the going was good, but the writing

is clearly on the wall when he gets challenged by a

colleague on his values and ethics when making such

a sale to an old school friend.

I found the programme to be an accurate confirmation

of a primary cause of the current recession – self-

serving corporate companies and salespeople in the

financial sector who have worked only in their own

interests and not in the interests of their clients.

Now I know some very good people in the financial

sector so I don’t tar everyone with the same brush,

but the frank admissions of some of the leaders of the

finance companies and banks who have gone bust

around the world carry some important messages of

what it now takes to succeed in sales in the long term.

The world needed the current recession to correct itself;

indeed many of the indicators the economists use are

showing that business confidence is improving. We

have a long way to go to rebuild trust and credibility in

some sectors, and hopefully sales people around the

world will be better at selling as a result.

In this issue, Tony Hillyard waves a red flag at us about

the importance of qualifying our leads. I find Tony’s

knowledge to be second to none on this topic. I’ve

learned the hard way and have made the mistake of

pursuing worthless leads way past their use-by date on

many occasions. So whatever the complexity of your

sales, I recommend you follow Tony’s advice and at

least apply the test of the three essential questions to

your opportunities and stop wasting time.

happy Selling!

Paul

NZSM / SEPT 16Th 2009 / 4

T h I S W E E K ’ S M u S T R E A D

Tony hillyard specialises in giving sales teams around the world smart solutions to help them win more business in

difficult or very competitive markets. Visit Tony’s website at www.TheSalesAcademy.co.nz for more information..

STOP FOR RED FLAGS!

the three critical areas you must explore to qualify leads By Tony hillyard

In this turbulent, recessionary climate it is very tempting

to chase down every deal on the prospect list, even the

ones that you know in your heart you have very little

chance of winning. This can actually make matters worse by

diverting sales effort away from the better deals and reduce

your chances of winning both the marginal possibilities and

the more likely leads. With this in mind, sales opportunity

qualification becomes one of the most valuable skills for a

professional salesperson to develop.

Too many salespeople chase large, time consuming deals

that they have very little chance of winning. We do this

because in a tough sales environment it naturally makes

us feel better to go after every deal we come across - even

when we know we shouldn’t. This just ends up eating into

productive selling time.

Salespeople can also often lose deals without knowing why.

In many cases it could be that they simply failed to ask one

straightforward question that would have flushed out an objection

or a problem that could have been handled quite easily.

Using a sales opportunity qualification process will enable

you to get a good perspective on where you stand with any

sales opportunity, but it is particularly important for your

larger deals. You must address and resolve these three most

important issues before committing a lot of resource to a

sales campaign:

NZSM / SEPT 16Th 2009 / 5

1. Is it real for us?

Although there might be a genuine sales opportunity •

available - it might not be available to you or your

company for a variety of reasons.

2. Do we want to win it?What is the risk involved? •

Will it take more work and effort than it’s worth? •

Can we adequately resource the sale?•

3. Can we win it?Do we have the right solution? •

Do we have a good relationship with the customer? •

how strong is the competition?•

This qualification process will help you answer these

questions and tell you when you have what I call ‘Red Flag’

issues to resolve.

Sales opportunity qualification is a critical and unequivocal

Here are the 27 critical qualification questions you must

answer:

1. IS IT REAL FOR uS?

The Decision to ChangeDo they have a compelling reason to change?•

Is there Senior Executive support for the need to change?•

have they discounted a ‘do nothing’ option?•

The MoneyHave they explained the cost justification for this •

project?

Do they have an approved budget for this project?•

Are our costs within their budget?•

The Timeframehave we agreed a decision process timeline with them?•

Does the decision process timeline suit us?•

have they allocated enough time to evaluate our •

proposal in detail?

Can we meet their delivery and implementation •

timescales?

The Commercial Realityhave they accepted our commercial terms and •

conditions?

Are we compliant with all of their mandatory •

requirements?

Do we have our company's approval to submit a •

proposal or a quotation?

2. DO WE WANT TO WIN IT?

The Risk versus the GainIs the value of the sale enough for the effort involved?•

Will implementation be straightforward?•

Can we adequately resource the sales campaign?•

3. CAN WE WIN IT?

The SolutionAre any of our unique features and benefits in their •

decision criteria?

Do the Key Influencers favour our solution?•

have we aligned our solution to their Key Business •

Drivers and Critical Success Factors?

Are we proposing a low or reasonable risk solution?•

process. You must answer: 'Yes', 'Don't Know’ or 'No' with

complete honesty for all the questions in each section.

If you have Red Flag issues then sales activity is required.

Wherever you have answered 'No' or 'Don't Know' to a

question, you have uncovered a Red Flag issue that could

potentially stop you from winning the sale. You need to stop

and think about what sales activities and sales calls you must

undertake to get a 'Yes' response to those questions and get

yourself into a winning position.

If there are too many Red Flag issues, you may decide that

you just won’t have enough time to resolve all of them before

the sale is due to close. In those circumstances you might

need to consider negotiating for more time. Or you may feel

that it is just not worth chasing because it will involve more

effort than the sale is worth to you. If so, you will have saved

yourself a lot of wasted time that you can invest in finding a

better sales opportunity.

If there are too many Red Flag issues...you may feel that it is just not worth chasing because it will involve more effort than the sale is worth to you. If so, you will have saved yourself a lot of wasted time that you can invest in finding a better sales opportunity.

NZSM / SEPT 16Th 2009 / 6

The RelationshipDo we have a good relationship track record with •

them?

Do we have good access to the decision-makers?•

Do we have a well-placed Coach?•

Are we allowed to 'sell' to all the Key Influencers on this •

project?

The CompetitionDo we know which of the competitors are favoured by •

the customer?

Do we know the strengths and weaknesses of the main •

competitors?

Do we know the sales strategies of the main •

competitors?

There are Three Parts to the Sales Opportunity Qualification Process: 1. Gaining an accurate perspective on a sales opportunity by answering all of the qualification questions with complete

honesty.

2. Developing all of the sales activities and sales calls that are still necessary to get you into a winning position for the

opportunity.

3. Early identification and elimination of the deals you can’t win and the ones you don’t want to win!

Use this qualifying large sales opportunities process to dramatically improve your chances of winning the significant sales

opportunities on your prospect list that you choose to go after – and stop chasing the ones you are unlikely to win or don’t

want to win.

© The Sales Academy Ltd. All Rights Reserved. July 2009

MID STRENGTHFULL FLAVOURFULL LIFE

NZSM / SEPT 16Th 2009 / 8

NZSM: What are the key elements of a successful seasonal

incentive programme or reward event?

DW: The structure of the programme must be well

communicated, and progress constantly measured with

results for achievement transparent to all. The targets set for

rewards should be realistic and achievable and the rewards

should be worth striving to achieve.

If the reward is travel, it should deliver an appealing

destination and the itinerary should involve elements of

surprise and luxury the participants would not normally be

able to experience if they were to book their own holiday

arrangements: e.g.; fighter pilot flights, hot air balloon or

camel safari, gala dinner in a Viennese Palace ballroom or

lunch on a private tropical island.

NZSM: What are the top three things I need to get right to

make sure my conference/product launch/elite members’

party is a success?

DW: The venue selection – size, location, quality, style – can

make or break a conference or event.

The audiovisual – lighting and sound – are intangible items,

but without them you cannot see or hear.

Diligently cover off every element of the event from car parking

to catering. You can never be too pedantic and if you’re not

experienced, employ the support of someone who is.

r & r – reward & recognition or random & reckleSS?

What makes a great event?

Studies and experience show that reward and

recognition is vital to keep your sales people motivated

and engaged. For many sales teams, incentive schemes

form a significant part of this. Some incentive schemes I have

participated in worked well for my peers and me; others

caused more dissent that incentive.

I’ve also attended my fair share of annual conferences and

reward events. The big events involving overseas travel

should be the celebration highlight of the year. I recall

some that were fantastic; others left me feeling strangely

unmotivated and, at times, bewildered.

The lead up to Christmas is one of the main times during the

year where staff are thanked and recognised, and we should

be thinking about planning it now. With this in mind, I asked

David Williams, Managing Director of hot Events, to shed

some light on what makes a great incentive or reward event.

NZSM / SEPT 16Th 2009 / 9

NZSM: Events can be polarizing – the activity appeals to

some team members and not others, leaving some on a high,

and others wishing they were some place else. how do you

plan an event that will cater to all tastes?

DW: You need to be aware of the expectations of the

participants in team events, and to also recognise there

are different personalities to be managed. Although it is

important to steer clear of the boring and done-to-death

activities, taking on an adrenaline-based activity requires

professional facilitation where all levels of fitness,

health, gender etc, are incorporated into the event and

all levels of contribution are recognised in the results.

Never assume the Big Guy isn’t genuinely afraid of

heights or water!

Optional activities can also be the solution to

accommodating different tastes when organising leisure

time or sightseeing… spa treatments or scuba diving lessons,

there’s a choice!

NZSM: Motivation-type events are great on the day, but are

often quickly forgotten. What’s the secret to getting long-term

results from this kind of event?

DW: Motivation is personal so make it relevant and keep

up the focus after the initial event. Motivational speakers

can bring you to tears with their inspirational life lessons;

however is there a component of their message that can

genuinely be incorporated into delegates’ personal lives?

This can be carried through with a focus at work and set the

scene for further team challenge programmes.

Examples of this include giving personal pedometers

to everyone in the office and setting up teams distance

challenges; introducing company tri-athlete teams for

public event participation; working with a charity for

company personnel to give their time. A focus on healthy

minds, bodies and spirits works well with motivational

messages and is easily assimilated into other company

activity programmes.

NZSM: Many businesses have had a tough year, and the sales

teams have been fighting for every dollar. They probably

deserve a pat on the back more this year than in recent times

when things have been easier. If the budget has been cut this

year, how can we reward our team for half the cost, but not

dilute the outcome?

DW: It’s time to be especially creative with budgets when

rewarding the team, while not appearing stingy. This concept

is proving one of the biggest challenges for managers today,

as even if a company is still delivering good profits, they

probably don’t want to be seen as recklessly extravagant in

tough times. Don’t use these ‘tough times’ as an excuse not

to reward, as today it is even more important than ever to

acknowledge the extra efforts being made by your company

personnel. DON’T CANCEL ChRISTMAS MR SCROOGE!

NZSM: I once heard about a conference held to discuss

how to raise personal standards in an organisation that was

cancelled on day two because most participants were too

hung over to attend. Sales people need to celebrate, but

what are your tips for keeping the reigns on things when a

corporate culture of excess prevails?

DW: Celebration and inebriation is not necessarily

the same thing. For those truly considering their future

career, responsible behaviour while on conference is

highly recommended. Time and time again we see people

miss their meetings, flights and in some cases end up

with injuries as a result of going just a bit too far. This is

difficult to reign in if this type of corporate culture prevails

– but it’s not a good look in the eyes of future employers,

a client or potential customer.

NZSM / SEPT 16Th 2009 / 10

CLICKHERE

TO ENTER

Sales DevelopmentDavid ForemanAuckland

Telephone SalesZealmarkAuckland

Advanced Serious Selling Richard GeeAuckland

Telephone SellingDavid ForemanAuckland

Sales ManagementDavid ForemanAuckland

NegotiationDavid ForemanAuckland

NegotiationDavid ForemanWellington

Sales DevelopmentDavid ForemanAuckland

Key Account Management ZealmarkAucklandLeadership with ResultsRichard GeeAucklandSales SeminarTop Achievers Sales Traininghamilton

Territory Management,Richard GeeAuckland

Sales DevelopmentDavid ForemanAuckland

Telephone SellingDavid ForemanAuckland

Sales ManagementDavid ForemanAuckland

ProspectingDavid ForemanChristchurch

FRI 16 OCT

MON 12 OCT

TuES 6 OCTMON 5 OCT

WED 30 SEPT

ProspectingDavid ForemanAuckland

Sales Skills 1EMAAuckland

Sales ManagementDavid ForemanAuckland

Sales Skills 2EMAAuckland

NegotiationDavid ForemanAuckland

RSN EventTen Dynamite Steps For Goal AchievementAuckland

TuE 29 SEPTMON 28 SEPTFRI 25 SEPT

FRI 9 OCT

SuN 11 OCT

SAT 10 OCT

SuN 4 OCT

SAT 3 OCTThu 1 OCT

SuN 20 SEPT

SAT 19 SEPT

SuN 18 OCT

SAT 17 OCT

NZSMCALENDAR

MON 21 SEPT

Thu 17 SEPTWED 16 SEPT FRI 18 SEPT

Thu 24 SEPTWED 23 SEPTTuE 22 SEPT

Sales DevelopmentDavid ForemanAuckland

Sales ManagementDavid ForemanAucklandEssential Sales SkillsZealmarkAucklandSales SeminarTop Achievers Sales TrainingAuckland

NegotiationDavid ForemanAuckland

Next issue of NZSM out

SAT 26 SEPT

Thu 8 OCT

TuE 13 OCT WED 14 OCT WED 15 OCT

SuN 27 SEPT

FRI 2 OCT

WED 7 OCT

NZSM / SEPT 16Th 2009 / 12

Over the years I've been teaching kids about a

simple but powerful concept – the ant philosophy.

I think everybody should study ants. They have

an amazing four-part philosophy, and here is the first part:

ants never quit. That's a good philosophy. If they're headed

somewhere and you try to stop them; they'll look for another

way. They'll climb over, they'll climb under, they'll climb

around. They keep looking for another way. What a neat

philosophy, to never quit looking for a way to get where

you're supposed to go.

Second, ants think winter all summer. That's an important

perspective. You can't be so naive as to think summer will

last forever. So ants are gathering in their winter food in the

middle of summer.

An ancient story says, "Don't build your house on the

sand in the summer." Why do we need that advice?

Because it is important to think ahead. In the summer,

you've got to think storm. You've got to think rocks as you

enjoy the sand and sun.

The third part of the ant philosophy is that ants think summer

all winter. That is so important. During the winter, ants

remind themselves, "This won't last long; we'll soon be out

of here." And the first warm day, the ants are out. If it turns

cold again, they'll dive back down, but then they come out

the first warm day. They can't wait to get out.

And here's the last part of the ant philosophy. how much

will an ant gather during the summer to prepare for the

winter? All that he possibly can. What an incredible

philosophy, the 'all-that-you-possibly-can' philosophy.

Wow, what a great philosophy to have – the ant philosophy.

Never give up, look ahead, stay positive and do all you can.

Copyright © Jim Rohn International. All rights reserved

the ant philoSophyBy Jim Rohn

T W O M I N u T E T O P u P

this article was submitted by Jim rohn, america's Foremost Business philosopher. to subscribe to the Free Jim rohn weekly e-zine go to www.jimrohn.com

NZSM / SEPT 16Th 2009 / 14

NZSM / SEPT 16Th 2009 / 15

In the tradition of Emotional Intelligence and Now, Discover

Your Strengths, Daniel Pink offers a fresh look at what

it takes to excel in this new world. The era of left-brain

dominance, and the Information Age that it engendered, is

giving way to a new world in which right brain qualities –

inventiveness, empathy and meaning – predominate. At least

that's the argument at the centre of this provocative and original

book, which uses the two sides of our brains as a metaphor for

understanding the contours of our times. A Whole New Mind

reveals the six essential aptitudes on which professional success

and personal fulfillment now depend, and includes a series of

hands-on exercises culled from experts around the world to help

readers sharpen the necessary abilities.

Editors note: This is one of my favorite business books of the past

couple of years. Thought provoking and enlightening, it is well

worth a read – it might just lead you to make some changes to

your five year plan!

a whole new mind

By Daniel Pink Published by Allen & unwin

$51.99 from

R E S O u R C E C O R N E R

quick FixYou have just crafted a great sales letter, (or more usual,

changed the name and date on your standard letter),

and are writing the last line. It goes like this…….

‘If I can be of any further assistance then please do not

hesitate to contact me.’

This has to be the most overused, unimaginative, boring

closing line to a sales letter. Everyone uses it and they all

sound like scripted sales people. It is lazy and meaningless.

The Quick Fix

Your letter must progress the sale. Rather than inviting the

customer to call you, tell the customer what you expect to

happen next.

Try this…’With your approval, the next step will be to

<schedule a meeting, measure up, choose the colour, agree

on the terms…..> I will call you next <name the day> to do

<whatever it is>.’

Your closing line now has value and meaning. It might take

some thought, but it will drive your follow up activity too!

WIN A LASER POINTER PEN FOR YOuR QuICK FIX!

If you have a favorite ‘quick fix’ that you would like to share

with our readers (without giving your winning secrets away!)

then email the editor at pauln@nzsalesmanager.co.nz

You will be in to win a high-powered laser pointer pen,

courtesy of the great guys at Brand Storming Promotions.

It's not what you sell, it's how you sell

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NZSM / SEPT 16Th 2009 / 16

Perseverance is the hard work you do after you get tired of doing the hard work you already did.

Newt Gingrich - 58th Speaker of the United States

House of Representatives

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