In our previous white
paper, we began a discussion on the motivators that improve
business-to-business sales team results. One of our key points
was that “motivation” and “motivators” are catchall concepts
that oversimplify this key element of sales force management.
In reality, there are a number of factors that affect the performance
of bank sales teams: intrinsic attributes and skills (including
intrinsic motivators), extrinsic motivators, and support structures.
Here’s a copy of the chart we discussed.
| Intrinsic
Attributes and Motivators |
Support
Structures |
Extrinsic
Motivators |
| Critical
Thinking Skills |
Clear
Direction |
Challenging
Goals |
| Language
Skills |
Ongoing
Guidance |
Visible
Accountability |
| Social
Skills |
Immediate
Feedback |
Monetary
Incentives |
| Aptitude
for Technology |
Recognition
of Performance |
|
| Personal
Discipline |
Peer
Influence |
|
|
Passion
and Interest |
|
|
| Sense
of Urgency |
|
|
We said that the key
to long-term, sustainable revenue growth in banking is with
the average-performing members of the sales team. (About 70-80%
of sales team members in banks perform at an average level,
which we would define as achieving between 80% and 120% of sales
goals.) The sales people in the average-performing group have
a higher need for extrinsic motivation and support — a more
complete system of tools, training, and motivators. This system
is the responsibility of the sales management team in a bank.
The sales people in the average-performing group have a higher
need for support structures and extrinsic motivators.
In most banks, Executive
Management has the final say on the primary extrinsic motivators
— goals, incentive compensation, etc. Sales Managers control
the support structures that give average-performing
sales people the “how-tos” needed to be successful in exceeding
their goals and maximizing their incentive compensation. In
our last white paper we talked about one of these support structures,
on-going guidance . In this issue we’ll look
more closely at eight habits that we see in average-performing
sales people and the support structures that Sales Managers
can put in place to remedy these sales behaviors. Make no mistake
about it: These habits are very correctable — with effective
sales management and persistence.
Eight
Habits of Average-Performing Sales People
In the discussion
that follows we have captured (in italics) the behavior
that is holding back the average-performing sales person. We
then briefly examine the habit and suggest several sales management
initiatives that you can take to improve performance.
Habit
One
“To meet my goals
I go after the easiest targets. In this competitive market,
I’ll take whatever I can get.”
Instead, Avoid
the Easy Targets.
•
Not all customers and prospects are equal.
- In many banks,
10% of the business relationships generate 90% of the profit.
- The “price-shoppers”
and “structure shoppers” are always looking for a better deal.
•
The easy targets “walk in the door.”
- All the good
customers are already taken. If you want more good customers
you have to get them through proactive business development
efforts.
•
Watch for transactions that are presented as relationships
.
- “I need a
low-price on this loan to get in the door. After I’m in, I’ll
get the whole relationship.” Price shoppers frequently suggest
that loss leaders are the way to get their relationship. It
seldom works out that way.
Sales
Management Initiatives
Where is the highest
probability of getting the business that matches your
credit quality and profitability objectives?
- Clearly define
your business objectives. For example, your specific goals
for top-line revenue growth, appropriate margins and credit
quality give clear direction to the calling officers.
- Study your
market. Focus the sales team on the businesses that best match
your business objectives:
- Segment
your customers — Key and High Potential Customers
- Profile
your prospects — Key and Working Prospects
- Determine
the “right” Centers of Influence (COIs) — Current and
Prospective COIs
Habit
Two
“Flexibility in
price and structure is the key. For me to be successful the
bank needs to be more flexible.”
Instead, ask each
salesperson: What’s the Value Proposition you use in
selling?
Here are the three most
common value propositions used by commercial bankers:
- Low-cost/loose-structure
provider. “Tell me what you have at your current bank,
I’ll beat it.”
- Customer Service.
“We’ll be accessible and responsive 24/7. You’ll be like
my only client.”
- Advisor. “We’ll
understand your business better than anyone else, anticipate
your needs before anyone else, and help you navigate through
increasing complex solutions . . .”
Sales Management
Initiatives
- Selling is
a form of social influence. Effective sales people influence
the thinking of customers, prospects, and COIs. A value proposition
is the method of social influence that a salesperson uses
(consciously or unconsciously).
- Define, articulate,
and train your team members to focus on a value proposition
that best matches your long-term business objectives. Make
that value proposition the default. It may not always match
the values of a given customer or prospect, but it creates
a sharper focus of who you are at a company level and a sales
team level. As an example: “We are Advisors. The Advisor
identifies, defines, and proposes solutions to a business
owner’s needs before they become a request.”
Habit
Three
“I work hard at
differentiating my products from those of my competitors.”
Instead, Think
Like a Business Owner.
- Selling at a
product level can result in transactions rather than a full
relationship.
- High-performing
salespeople think like the business owner. They understand
the owner and his business and anticipate needs. They write
RFP's, they don’t respond to them.
- High performers
educate. They provide ideas and recommendations. They are
seen as a resource.
- They sell
at the right level. Decision makers and influencers have different
value systems. Do owners or presidents think the same way
as CFOs or controllers?
Sales Management
Initiatives
Selling at a “product
level” almost always results in pricing, structure, and fee
concessions. For average performers, this is the primary method
of differentiating the bank and a competitor.
- A high performer
thinks like the business owner. She has a clear view of the
history of the business , an understanding
of where the business owner wants to be 3 to 5 years
down the road , and a solid grasp of day-to-day
business operations , not just the financing or depository
needs.
- Make these
areas a focus of pre-call/post-call discussions, credit discussions,
and sales team meetings.
Habit
Four
“Since all business
owners are credit driven, I use credit as a lead product in
pro-active sales situations.”
Instead, Focus
on Relationship Banking. Most commercial bankers
use credit as a lead product. High performers differentiate
their message by focusing on the prospect’s or client’s next
need, not on what they’re comfortable selling.
- Look for the
“best way in the door,” the need that will begin a relationship
(not necessarily a loan).
- Stay focused
on the five-year view and business operations; that will point
to where the next opportunities are.
Sales Management
Initiatives
- A mature
business uses more than 10 different financial services, not
just loans. Ensure that your sales team is conversationally
competent in a range of products and solutions.
Begin with a simple account planning process that discusses
more than just loan products.
- Include deposits
and fee-based services on your pipeline report.
- Change the
questions you ask in pre-call/post-call discussions. Ask about
long-term needs as well as immediate needs; ask about more
than just credit needs.
Habit
Five
“Getting deals
through my pipeline is the most important thing that I do.”
Instead, Maintain
a Balance between Closing and Lead-Generation Activities.
- All salespeople
have comfort zones. For most average performers it’s not
lead generation; in fact, going after leads is often
an avoided task: “I’ll do it when I
find some time.”
- The extrinsic
motivators in most banks point toward getting business closed.
- But lead generation
is required to refill the pipeline. Inconsistent lead generation
causes significant swings in the pipeline.
Sales Management
Initiatives
- Make lead
generation a constant focus.
- Build a weekly
pipeline target for loans and deposits to create expectations
for lead generation.
- When the weekly
pipeline report shows that a salesperson is below the pipeline
target, shift his focus toward lead generation.
- Talk about leads
in every sales meeting; ask each sales team member each week
what lead generation initiatives they have in place for the
coming week.
- It all starts
with appointments. Ask each team member to set aside 90 minutes
each week to make appointments with customers, prospects,
and COIs. Then hold them accountable.
Habit
Six
“It’s all about
the deal. Getting the right structure and right price is my
job.”
Instead, Differentiate
between Sales Strategy and Credit Strategy.
- Credit is a
solution to a need. How the solution is positioned, discussed,
and matched to both short-term and long-term needs is selling.
- A high-performing
salesperson does two things:
- Ensures
that what a decision maker “says” is his need “really
is” his need.
- Shows
how the approved loan really is a match for the determined
need.
- Determine
the sales strategy before you begin the term sheet, not after
it languishes: To whom am I selling? What are their jobs?
What are their needs/interests/values? How do I change my
sales approach to meet their differing value systems?
Sales Management
Initiatives
- When a sales
team member says he got a package, ask instantly, “What is
your sales strategy?” Listen for a sales strategy that may
actually be a credit strategy and if so, coach to an appropriate
sales strategy.
- A rule in selling
is never sell to a competitor’s strength. If your competitor
is more flexible in price and structure, selling loan against
loan is a mistake. If your strength is a broader array of
products, point the salesperson toward an integrated solution
that focuses on your strength.
Habit
Seven
“Prospecting doesn’t
pay. The payback is too far down the road. I have to make my
goals today.”
Instead, Think
Now and Think One-Year Ahead.
- Sales goals
never go down. Next year’s goals will be higher. If you’re
having trouble making your goals today, it will be even harder
next year.
- Work your customer
base to make short-term goals; your COIs to make your medium-term
goals; and your prospects so you have new customers to sell
the heck out of next year.
- Distribute
sales time for short-term, mid-term and long-term success.
Give people clear direction about the level and mix of calling
needed to make business objectives.
- x%
on customers (short-term goals)
- x%
on COIs (mid-term goals)
-
x% on prospects (long-term goals)
Sales Management
Initiatives
- Determine
in your own mind the appropriate calling activity and call
balance levels (e.g. 20 calls a month: 60% on customers, 20%
on COIs and 20% on prospects) for each team member.
- Ask each team
member to self-select face-to-face call targets and call balance
targets. Meet one-on-one with each of your reports to reach
agreement on the targets. (Note: The mix should be reviewed
on a quarterly basis.)
- Ask each
team member to send you a copy of next week’s calendar every
Friday afternoon and monitor call levels and call balance
proactively.
Habit
Eight
“I’m a relationship
manager. I am involved with every element of my client’s relationship
with the bank.”
Instead, Manage
Your Market, not Just Relationships.
- A salesperson
is a market manager, managing growth in all sources of business
from customers, prospects and COIs.
- The sales
force’s objective is to grow wallet share and
market share.
- Face-to-face
is the best way to sell. . . get out from behind that desk.
- Behind every
great sales person is a great administrative support person.
Sales Management Initiatives
- Make sure
you have the right support team in place. Are your sales people
tied down with customer service tasks that could be done by
others?
- Remove infrastructure
obstacles that are holding your bankers back.
Conclusion
Helping average performers get to the
next level is one of the most important things a Sales Manager
does. Getting them to replace sales habits that are inconsistent
with today’s best practices requires a high degree of structure,
discipline and persistence. But there are tremendous returns
awaiting those Sales Managers who stay focused on providing
the right combination of support structures
to their sales teams.
